SOUTHERN CALIFORNIA GAS COMPANY - 2013

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2013 -2014 Energy Efficiency Programs Local Government Partnership Program Program Implementation Plan Implementation For each of the five Strategic Plan Support elements described, implementation will vary across the LGPs. For detailed information about implementation, please see the Individual LGP PIPS and Supplemental Filing —Local Government Partnership Strategic Plan Proposals in Compliance with D.09 -09 -047 (Advice Letter 2445 -E -A). In general, each Partnership contract will identify which strategic plan program elements will be included in the partnership program and the associated budget. The utility and partner responsibilities will be defined for each program element included in the partnership. 5 - Program Element Rationale and Expected Outcome — Element B - Strategic Plan Support a) Quantitative Baseline and Market Transformation Information Market Transformation (MT) metrics proposed in Tables 3 and 4 are preliminary. The proposed metrics are meant to initiate a collaborative effort to elaborate meaningful metrics that will provide overall indicators of how markets as a whole are evolving. MT metrics should neither be used for short-term analyses nor for specific program analyses; rather, should focus on broad market segments. Market transformation is embraced as an ideal end state resulting from the collective efforts of the energy efficiency field, but differing understandings of both the MT process and the successful end state have not yet converged. The CPUC defines the end state of MT as "Long- lasting sustainable changes in the structure or functioning of a market achieved by reducing barriers to the adoption of energy efficiency measures to the point where further publicly - funded intervention is no longer appropriate in that specific market." 16 The Strategic Plan recognizes that process of transformation is harder to define than its end state, and that new programs are needed to support the continuous transformation of markets around successive generations of new technologies 17. Market transformation programs differ from resource acquisition programs on 1) objectives, 2) geographical and 3) temporal dimensions, 4) baselines, 5) performance metrics, 6) program delivery mechanisms, 7) target populations, 8) attribution of causal relationships, and 9) market structures18. Markets are social institutions19, and transformation requires the coordinated effort of many stakeholders at the national level, directed to not immediate energy savings but rather to intermediary steps such as changing behavior, attitudes, and market supply chains 20 as well as changes to codes and standards. Resource acquisition programs rely upon the use of financial incentives, but concerns have been raised that these incentives distort true market price signals and may directly counter market transformation 16 California Public Utilities Commission Decision, D.98 -04 -063, Appendix A. "Cali forma Public Utilities Commission (2008) California Long Term Energy Efficiency Strategic Plan, p. 5. Available at http:// www.californiaenergyeft'lciency .coin /dots /EEStrategiePlan.pdf "Peloza, J., and York, D. (1999). "Market Transformation: A Guide for Program Developers." Energy Center of Wisconsin. Available at: http: / /www,cew.ot,g /eewresults /189 -I.pdf 19 Blumstein, C., Goldstone, S., & L.utzenhiser, L. (2001) "From technology transfer to market transformation'. Proceedings of the European Council for an Energy Efficient Economy Summer Study. Available at http: / /www.eceee,ot*g/conference proceedings/eceee /2001 /Panel_2/p2 7 /Paper/ 21 Scheid, F. D., Fields, A., Skumatz, L., Feldman, S., Goldberg, M., Keating, K., Peters, J. (2001) A Frameworkfor Planning and Assessing Publicly Funded Energy Efficiency. p. 6 -4. Available at www.calmac, org.