1. C A L I F O R N I A E N E R G Y C O M M I S S I O N Energy Efficiency – Crossing the “Tipping Point” in 2009 Commissioner Julia Levin California Energy Commission www.energy.ca.gov December 2, 2009

2. C A L I F O R N I A E N E R G Y C O M M I S S I O N 2009 Game Changers for Energy Efficiency American Recovery and Reinvestment Act (ARRA) - Stimulating Energy Efficiency AB 758 – Energy Efficiency for Existing Buildings - How Low Can We Go ??

3. C A L I F O R N I A E N E R G Y C O M M I S S I O N Federal Stimulus Bill (ARRA) signed February, 2009

4. C A L I F O R N I A E N E R G Y C O M M I S S I O N ARRA Energy-Related Programs Total of $42 billion for Energy Programs and Projects –$11.3 billion in formula-based funding –$30.7 billion in technology–focused competitive and direct grant, loan and loan guarantee funds, tax incentives

5. C A L I F O R N I A E N E R G Y C O M M I S S I O N Energy Commission ARRA Programs $226 million - State Energy Program $49.6 million - Energy Efficiency & Conservation Block Grant Program (for small jurisdictions only) $35.6 million - State Energy Efficiency Appliance Rebate Program $3.6 million - Energy Assurance and Planning

6. C A L I F O R N I A E N E R G Y C O M M I S S I O N State Energy Program - $226 million Funds Allocated for Energy Efficiency Include: $95 million - Energy Efficiency Retrofit Programs $25 million - Revolving Loan Program to retrofit state owned buildings $20 million - Green Job Workforce $25 million - local government loans

7. C A L I F O R N I A E N E R G Y C O M M I S S I O N State Energy Program Timeline All SEP funds must be encumbered by Sept 30, 2010 and fully drawn down by April 30, 2012 Solicitations Deadlines and awards differ by program element

8. C A L I F O R N I A E N E R G Y C O M M I S S I O N Energy Efficiency Retrofit Program - $95 million Municipal Financing Programs Local Governments Finance Retrofits Repaid through Property Tax Assessments Funding Available for Specified Uses Municipal/Commercial Retrofits Funds Public and/or Private Partnerships Must Implement a Few Targeted Measures in Large Number of Buildings Required Best Practice Measures Approved by Commission Comprehensive Residential Retrofits Funds Regional Consortia – Local Governments, Utilities, Affordable Housing, Energy/Building Contracting Experts Requires Tiered Approach, Specific Program Elements, Transition to Whole-House Retrofits

9. C A L I F O R N I A E N E R G Y C O M M I S S I O N Green Workforce Development

10. C A L I F O R N I A E N E R G Y C O M M I S S I O N Green Job Funding Sources An Estimated $47 million will be awarded to regional workforce development programs: –$20 million from State Energy Program (ARRA) –$15 million from Alternative and Renewable Fuel and Vehicle Technology Program (AB 118) –$12 million from Public Interest Energy Research program for green partnership academies

11. C A L I F O R N I A E N E R G Y C O M M I S S I O N AB 758 – Energy Efficiency Retrofits Signed September 2009

12. C A L I F O R N I A E N E R G Y C O M M I S S I O N Summary of AB 758 Calls for a comprehensive program to achieve energy savings in CA’s existing building stock Complimentary portfolio of program components Meaningful assessment of each building’s energy consumption: - relative efficiency compared to other buildings - opportunities to improve Significant energy efficiency improvements

13. C A L I F O R N I A E N E R G Y C O M M I S S I O N AB 758 Program Components Building Energy Rating systems (e.g. HERS) Labeling and Disclosure Programs Audit Requirements Financing Options Public Awareness Campaign Workforce Development Requirements for Energy Efficiency Improvements Energy Code Compliance and Enforcement Program Monitoring, Evaluation & Revisions

14. C A L I F O R N I A E N E R G Y C O M M I S S I O N AB 758 Direction CEC must develop and implement program, in collaboration with CPUC and a wide range of industry stakeholders CPUC to conduct proceeding for on-bill financing & report IOU incentive program activity linked to AB 758 POUs to report incentive program focused on existing buildings

15. C A L I F O R N I A E N E R G Y C O M M I S S I O N Next Steps on AB 758: Use ARRA SEP programs to pilot workforce development, financing and retrofit concepts Pilot rating, retrofit and financing program concepts with utility partners Complete concept paper & discuss with key partners Open formal rulemaking by March 2010 Conduct workshops throughout 2010

16. C A L I F O R N I A E N E R G Y C O M M I S S I O N For More Information: ARRA and Economic Recovery: CA: www.energy.ca.gov/recovery Federal: www.energy.gov/recovery Energy Efficiency and AB 758: www.energy.ca.gov/efficiency www.leginfo.ca.gov/bilinfo.html