February 2013

Greetings! 

This newsletter provides an update on issues before State energy and environmental regulators - the California Public Utilities Commission (CPUC), the California Energy Commission (CEC), and the California Air Resources Board - that the Board of the Local Government Sustainable Energy Coalition (LGSEC) has determined are of key interest to the group.

In This Issue
Great January Meeting, LGSEC Policy Subcommittees
CPUC Hosts Workshops on Range of Issues
CEC Adopts 2012 Integrated Energy Policy Report
ARB Takes Cap and Trade on the Road
Legislature Debates Prop 39, Rousts Regulatory Agencies
Coferences in Nashville, Turin
Upcoming Events
Many  regulatory meetings and workshops -- see below

LGSEC Quarterly Meeting: April 12, Sacramento
LGSEC Updates

January Quarterly Meeting

The LGSEC's quarterly meeting in San Diego on January 11 was, as always, informative and well-attended. Our guest speaker was Commissioner Andrew McAllister from the California Energy Commission (an active LGSEC member until his appointment last year to the CEC!).  Commissioner McAllister's priorities coming in to office include:

  • Energy efficiency - Title 24, Title 20, AB 758 (comprehensive energy upgrade program for existing buildings).   
  • Natural gas
  • 2013 Integrated Energy Policy Report (IEPR)
  • Generation facility siting cases

 He is particularly interested in how the CEC can leverage the authority provided in AB 758 in two areas. The first is data on energy usage, which the CEC is as challenged to obtain as local governments; this is a longstanding LGSEC priority. The second area of interest for Commissioner McAllister is how to better and more effectively engage the contractor community with energy efficiency.

 

The meeting also featured a discussion on opportunities for local governments with revenues from the Cap and Trade auctions and Proposition 39.  Subsequent to the meeting, the LGSEC developed a white paper that recommends the State direct funds from these sources to Regional Energy Networks, both existing and new ones that will be formed, to expand the scope and reach, complement existing resources, and fill technical gaps in existing programs that support local governments.  You can find the paper on the LGSEC web site (if it is not up yet, it will be shortly).

 

Subcommittees Begin to Roll

The LGSEC is organizing our work into policy subcommittees, an idea brought forward at our annual retreat in August.  We have four subcommittees that allow members to be more deeply engaged in the LGSEC's work, developing policy positions and advising on best strategies for success.  The subcommittees and their chairs (selected from our Board members) include:

  • Energy Efficiency/Renewable Energy Networks (Chairs: Wendy Sommer, Demetra McBride)
  • Renewables (Chair: Susan Munves)
  • Climate Change/Greenhouse Gas and Cap and Trade (Chair: Tim Anderson)
  • Fundraising/Business Development (Chair: Mike Foster)

The minutes from the meetings will be posted on the Members Only section of the LGSEC web site, and also circulated directly to members. 

California Public Utilities Commission
 ENERGY EFFICIENCY

 

Statewide Energy Efficiency Marketing

The CPUC is focused on how to best structure the statewide energy efficiency marketing program.  These issues are being considered in Application 12-08-007, et al.  Phase 1 of the case is focused on the Flex Alert program.  A decision on the utilities' proposed budgets and activities for Flex Alert is anticipated by April 2013. 

 

The second phase of the proceeding is looking at the broader energy efficiency marketing program for 2013-2014.  In November, the CPUC directed the utilities to contract with the California Center for Sustainable Energy (a LGSEC member) to develop a marketing plan.  The CPUC will hold a two-day workshop on February 25 and 26 in San Francisco.  The first day will focus on the Energy Upgrade California brand and web site assessment; the second day will focus on the marketing plan developed by CCSE, which will be circulated by February 18.  A phone link will also be available.  The CPUC expects to issue a decision on the statewide marketing effort by June.

 

CPUC Considers Energy Usage Data Center

In January, the CPUC held a two-day workshop on a proposal coming from President Peevey's office to establish a statewide energy usage data center that could serve as a central clearinghouse for moving data from utilities to others who would need it for various purposes.    Several LGSEC members participated in the workshops. They emphasized what the LGSEC stated in our comments on the proposal: local governments have an immediate need for energy usage data for a variety of reasons. While a data center may ultimately be useful, determining whether and how to establish it could take years.

 

The CPUC has indicated to us informally that it is going to release a ruling soon that will announce an interim process for data access as Phase 3 of the Smart Grid Rulemaking (R.08-12-009).  This is encouraging, as that is what we have been asking for.  The CPUC will also open a new Rulemaking that will look at other outstanding issues, including the possibility of an energy data center.  The LGSEC Energy Efficiency Subcommittee will take an active role in forming our position on these issues.

 

Workshops and Studies

 

Low Income Water Use: The Water Subcommittee of the Low Income Oversight Board will hold a meeting on Wednesday, February 20, 2013 from 10:00am - 12:00pm in at the CPUC in San Francisco. 

 

Energy Upgrade CaliforniaThe Regional Energy Networks (RENs) and Investor-Owned Utilities (IOUs) invite all interested parties to save the date to attend an Energy Upgrade California Stakeholder Workshop on Friday, February 22, 2013, in The Gallery at Energy Efficiency Funding Group, Inc. (EEFG) located at 657 Mission Street, Suite 200, in San Francisco.  The meeting will begin at 9:30 a.m. and conclude at noon.  The focus of the meeting is to discuss and receive stakeholder feedback about the IOUs' Basic Path and RENs' FlexPath program design enhancements. If you have any questions, please contact James Tuleya at 415-973-7735.

 

Low Income Energy EfficiencyOn March 5th, 2013, 10:00 - 2:00, the CPUC, the utilities, and a contractor will be holding a workshop to present and garner input on the draft research plan for the ESA Program Multifamily Segment Study. Once developed, the Draft Research Plan, presentation materials, and agenda will be posted at the CPUC Evaluation Project Public Review Site located at http://www.energydataweb.com/cpuc/home.aspx.

At that time, a message will be circulated to these service lists announcing the posting of the documents, directions on how to post comments on the plan, and a due date for these comments.

 

Water/Energy WorkshopsOn March 20 and 21, the CPUC will hold workshops on the water/energy nexus, as directed last year in the energy efficiency guidance decision (D.12-05-015).  On the March 20, the workshop will address demand-side programs offered by the utilities related to water.  This will focus mainly on energy efficiency programs, but may also include Demand Response and distributed generation. On March 21, the workshop will focus on a discussion of the Energy Division Staff Proposal for a comprehensive Water/Energy Cost Effectiveness Framework (forthcoming).  It is quite likely that the LGSEC will participate in this workshop, pending discussion by the energy efficiency subcommittee.  If you will be attending, please let us know. The CPUC will release a detailed agenda later in February.  

 

RENEWABLES

 

Revised Incentives for California Solar Initiative

On January 14, 2013, the CPUC issued a Proposed Decision that would modify the California Solar Initiative (CSI)-Thermal Program to provide incentives to process heat applications, solar cooling technologies, space heating technologies and systems that combine multiple applications (R.12-11-003). In addition, this decision modifies the way rebates are paid to certain systems under the program by creating a performance-based incentive system that will pay rebates based on actual metered energy delivered to the facility.  Comments have been coming in recently, and a decision could be on the CPUC agenda later this month.

 

Long Term Resource Adequacy

On February 26, 2013, the California Independent System Operator (CAISO) and the CPUC are co-hosting a Long-Term Resource Adequacy Summit on February 26, 2013 at the Mission Bay Conference Center in San Francisco, California. The summit is intended to educate key decision-makers and stakeholders about the current status of the California energy market construct for long-term resource adequacy and to identify alternatives to the existing framework, based on experience from energy markets in other regions.  The final agenda is available on the ISO website here.  The briefing book, intended to serve as a reference companion for en banc participants, is available here. Due to space limitations, people wishing to attend are asked to register here by close of business February 19. 

California Energy Commission

CEC Schedules Adoption of 2012 Integrated Energy Policy Report

 

Every two years, the CEC adopts the Integrated Energy Policy Report (IEPR). The IEPR drives State energy policy.  On February 13, the CEC will consider adopting the final 2012 IEPR.  The notice to consider adoption, and the 2012 IEPR Update are posted on the Energy Commission website.

 
Investigation Into HERS Providers

 

On February 4, 2013, the CEC announced an informational hearing on Home Energy Rating System (HERS) providers (Docket No. 12-HERS-1).  Recently, the CEC considered a complaint about the oversight that one of the HERS Providers had exercised over Raters it had certified.  The CEC determined that CalCERTS, Inc.'s process for discipline and decertification was "unrefined, informal, and seemingly improvised."  Further, the Committee noted that "the process lacks features such as published written procedures and full and complete discipline-related notices. These deficiencies - as well [as] more general matters involving Provider-Rater relations - warrant broader Commission inquiry".  

 

The new proceeding will allow stakeholders and other interested persons to participate in the process to collect the information necessary to identify potential procedures and other actions that would remedy administrative shortcomings in the HERS Program, including those that were identified in the CalCERTS Investigation.  The CEC expects to issue additional guidance sometime in February, and hold its first workshop in this matter on March 6 in Sacramento. 

Cap and Trade

Workshops on Investment Strategy

 

The California Department of Finance and Air Resources Board will be holding a three-day workshop across several locations later this month to solicit public input on the development of an investment plan for the auction proceeds from the Cap-and-Trade program to reduce greenhouse gases. The state agencies will develop and submit to the Legislature a three-year investment plan for the auction proceeds.  The investment plan will identify the State's greenhouse gas reduction goals and priority programs for investment of proceeds to support achieving the goals.  Funding will be appropriated to State agencies by the Legislature and Governor through the annual Budget Act, consistent with the plan.   The LGSEC needs help from our members in promoting at the hearings the importance of investing some of the auction proceeds in local government programs.  The workshops will have the same agenda.   

  • FRESNO Workshop: February 19, 2013, 5 PM - 8 PM
  • SACRAMENTO Workshop: February 25, 2013 (also webcast), 3 PM - 6 PM
  • LOS ANGELES Workshop: February 27, 2013, 4 PM - 7 PM 

Further information on the investment of the State portion of the auction proceeds, including the detailed notice for these workshops is available at: http://www.arb.ca.gov/cc/capandtrade/auctionproceeds/auctionproceeds.htm 

 

CARB AB 32 Report to Legislature Available

The California Air Resources Board has released a report to the Legislature on Assembly Bill 32. The report provides a detailed update on ARB's activities to achieve the goals of AB 32. 

Legislature

Proposition 39 Implementation

As most are aware, Proposition 39, passed by the voters in November, will generate an estimated $550 million/year for five years for energy efficiency, clean energy investments, and workforce developments in schools and public agencies.  Prop 39 did not provide an allocation formula for the funds.  That process is unfolding now, as the Governor, legislators, and interest groups all come forward with their ideas. 

 

The Governor in his January budget proposal would direct almost all the funds to schools using a per capita formula.  The Governor's proposal gives schools a lot of flexibility in how they use the funds, only requiring that districts show how they have budgeted for use of the funds. The Governor also would count the Prop 39 allocation against the minimum amount the State is required to provide to K-12 education under Proposition 98.  The Governor justifies this because the new tax proceeds from Prop 39 will raise the General Fund, and the Prop 98 funding formula is activated as a percentage of the General Fund.

 

Several bills have been introduced regarding allocation of Prop 39 funds. They too in their current forms would direct the lion's share of the funds to schools.  Senator Kevin De Leon is sponsoring Senate Bill 39, and Assemblymember Nancy Skinner is sponsoring Assembly Bill 39.  Both the legislative proposals would allocate funds through a need-based grant process.  Senator De Leon held two hearings on Prop 39 in January, in San Diego and San Jose.  The Senate Energy, Utilities, and Commerce Committee, chaired by Senator Alex Padilla, is holding a hearing Tuesday, February 19. Other meetings are occurring as well.

 

As indicated above, the LGSEC has a proposal for allocating Prop 39 and Cap and Trade auction revenues to local governments.  The LGSEC is collaborating with other groups advocating for local governments in this debate. And LGSEC Regulatory Consultant Jody London, who also serves on the Oakland School Board, is circulating a proposal that would direct a small portion of the Prop 39 funds be used to establish energy management capability within K-12 school districts on a regional basis, through County Offices of Education.  Her proposal was captured in an Op Ed recently in California Current.  

 

Legislative Analyst, Senate Oversight Committee Question Regulatory Coordination

In December, the Legislative Analyst's Office issued a report on the status of regulatory oversight and coordination among the many agencies that are responsible for energy in California.  The LAO report cites program duplication, efforts potentially not aligned to legislative priorities, and difficulty of evaluating effectiveness across programs. The LAO concludes:

"We recommend that the Legislature develop a comprehensive strategy for meeting the state's energy efficiency and alternative energy objectives. Given that the state has numerous programs administered by multiple departments, we recommend that the Legislature designate a lead agency to develop such a comprehensive strategy. We find that the CEC would be in the best position to lead the development of this strategy, since it is the state's primary energy policy planning agency. In addition, CEC could develop such a strategy as part of its existing Integrated Energy Policy Report (IEPR) process."

 

Following up on the LAO report, the Senate Energy, Utilities, and Commerce Committee held a hearing on January 28 with the title "Energy Efficiency: All Negawatts are Created Equal, But Some Are More Equal Than Others."  A concern from the oversight committee heading into the hearing was that even if California realizes all the energy demand reductions available systemwide, they do not necessarily reduce demand at the time or location of peak demand.  This in turn can make it difficult to determine where new power plants are really needed. The committee appeared to be questioning whether the investment in energy efficiency is worthwhile. It also appeared critical of the CPUC, CEC, and California Independent System Operator for lack of coordination.  The agencies made a joint presentation, which some observers believe took the committee by surprise.

 

You can review the hearing documents.  And for some interesting viewing, the last part of hearing included some particularly juicy remarks from the Senators, especially comments from Senator Rod Wright (D - Compton) which start about 1:52.

Conference Opportunties
The American Council for an Energy Efficiency Economy (ACEEE) is soliciting proposals for presentations to be included in the break-out sessions at its Conference on Energy Efficiency as a Resource, to be held September 22-24 in Nashville, Tennessee. Interested people can submit a brief presentation proposal of no more than 250 words by March 29. The web site has more information on topic areas and format. 

 

The  Turin School of Local Regulation is pleased to announce the official launch of the XVI Edition of the International Summer School on regulation of local public services (Torino, 9th - 20th of September 2013).  The Summer School is addressed to undergraduate students at their last year, graduate students and officials from the Public Administration (municipalities, counties, regional bodies) and regulatory agencies.  Registration includes 2-week free accommodation at the University residence in Turin. Applications are now open; the deadline in June 14.  You can find further information and application forms at: www.turinschool.eu/iss  (Note: I don't know anything about this program, but two weeks in Italy in September sounds good!)


We hope you have enjoyed this e-newsletter. It is one of the benefits of your membership in the LGSEC.  Please send us feedback, and contact us with any questions or comments! 
Jody London
Regulatory Consultant to the LGSEC
510/459-0667

Howard Choy
LGSEC Board Chair and Director, County of Los Angeles Office of Sustainabilty