July 17, Mr. Edward Randolph Energy Division Director California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102

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1 Brittney Lee Regulatory Case Manager San Diego Gas & Electric Company (858) July 17, 2018 Mr. Edward Randolph Energy Division Director California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA Re: Approval of Energy Efficiency Procurement Review Groups to Support Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), Southern California Edison Company (SCE), Southern California Gas Company (SCG) and Statewide Solicitations Dear Mr. Randolph, On behalf of Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas), SDG&E requests approval for the following Energy Efficiency Procurement Review Groups as presented below. On January 11, 2018 the California Public Utilities Commission (Commission) issued Decision (D.) , which authorized the use of Energy Efficiency Procurement Review Group(s) (EE PRGs) to support the EE third party solicitation process and required the IOUs to submit recommendations for EE PRG membership to the Director of the Commission s Energy Division for approval. D Ordering Paragraph (OP) 3 states: Background 3. Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison Company, and Southern California Gas Company shall each convene at least one procurement review group for energy efficiency third party solicitations, made up of members of non-financially-interested parties, including Commission staff and the Office of Ratepayer Advocates, with membership approved by the Director of the Commission s Energy Division. On February 20, 2018, SDG&E, on behalf of PG&E, SDG&E, SCE, and SoCalGas, issued a notification to the Service Lists for A et. al., inviting interested and qualified consumer representatives and non-market participants who do not have a financial interest in the outcome of the Energy Efficiency Program Solicitations to express their interest in serving on the

2 EE PRGs. The IOUs indicated their intention for each IOU to administer a local PRG for nonstatewide solicitations and the creation of a single Statewide PRG for statewide solicitations. In addition, the IOUs provided the following supporting documents: the EE PRG Charter, EE PRG Questionnaire, Conflict of Interest Statement, and Non-Disclosure Agreement. The EE PRG Charter describes the scope and roles and responsibilities of the EE PRG. The Charter will be reviewed and updated once the EE PRG commences working with the utilities and the Independent Evaluator (See Attachment); The EE PRG Questionnaire requested information from interested parties such as their experience with energy efficiency market sectors, familiarity with reviewing and evaluating energy efficiency, and whether they are a non-financially interested party; The Conflict of Interest Statement ensures interested parties do not have conflicts of interest and commits interested parties to notifying the IOUs of any potential conflicts as they arise; and The Non-Disclosure Agreement governs the interested parties access to and use of protected materials. Interested parties indicated their interest in serving on the EE PRGs by returning their completed EE PRG Questionnaires to the IOUs by March 12, Each utility reviewed the EE PRG Questionnaires, then notified the interested parties whether they would be recommended to the Commission to serve on their EE PRG. Selected parties indicated their final agreement to participate by providing their signed Conflict of Interest Statements and Non-Disclosure Agreements. Brief Description of EE PRG Applicant s The Energy Division and Office of Ratepayer Advocates (ORA) will have representation on all EE PRGs. In addition, the California Energy Commission (CEC) staff has agreed to participate in the Statewide EE PRG. The following table identifies the applicants and organizations the IOUs recommend for inclusion in the EE PRGs: Table 1: Summary of Recommended EE PRG Applicants Applicant / BlueGreen Alliance (BGA) Brief Description BGA unites America s largest labor unions and its most influential environmental organizations to solve today s environmental challenges in ways that create and maintain quality General Experience/Sectors of Interest Experience cuts across the Residential, Commercial, Industrial and Public sectors with a focus on energy efficiency workforce standards and job access for disadvantaged workers. 2

3 Applicant / Charles Goldman (Individual) IBEW Local 11 IBEW Local 332 IBEW 569 Natural Resources Defense Council (NRDC) Brief Description jobs and build a stronger, fairer economy. Charles Goldman is an individual consultant and energy efficiency expert. Charles worked as a Staff Scientist at the Lawrence Berkeley National Laboratory (LBNL) for over three decades. IBEW Local Union 11 represents 12,000 Electricians, Communications and Systems Installers, Transportation Systems Journeyman, Civil Service Electricians, Apprentices, Construction Wireman and Construction Electricians in Los Angeles. Electrical Workers Wiring Union, Local 332 is a union of construction employees that represents electricians in Silicon Valley. Electrical Workers Union, Local 569 is a union of over 3,200 construction employees that represents electricians in San Diego and Imperial Counties. is a union of electrical workers in Alameda County. NRDC is an environmental nonprofit with 3 million members and online activists whose mission is to safeguard the earth its people, its plants and animals, and the natural systems on which all life depends. General Experience/Sectors of Interest Extensive experience reviewing and evaluating competitive solicitations for DSM resources, program administrators (e.g. Vermont, Hawaii, Wisconsin, New Jersey), selection of EM&V contractors, and RFPs to select ESCOs/performance contractors. Various EE equipment installations and maintenance (energy efficient electrical devices, systems, and networks) in all market sectors. Nearly 19 years of experience in Commercial, Industrial, and Public Electrical installations. IBEW 569 has over 90 years of electrical service in all market sectors, and has been involved in the national, state and local development of building codes and standards. Various EE equipment installations (lighting, motors and other electric equipment and systems) in all market sectors. NRDC has staff that can advise on the sectors, but it is not the primary expertise of the organization nor our main focus. The primary objective of NRDC s participation is to ensure the RFP, criteria, and review are aligned with one another and the requirements of the CPUC decisions and California law. In addition, 3

4 Applicant / Sheet Metal Worker s Local 104 (SMW Local 104) Small Business Utility Advocates (SBUA) US Green Building Council- Los Angeles Chapter (USGBC- LA) Western States Council of Sheet Metal Workers Brief Description SMW Local 104 is a labor organization made up of sheet metal workers in 49 counties in California. SBUA is a non-profit organization whose mission is to represent, protect, and promote the interests of small business utility customers. USGBC-LA is best known for the LEED rating system and its educational programs related to Commercial Office buildings. USGBC-LA leads advocacy efforts around benchmarking, best practices in operations and maintenance, and the Sustainable Innovation Awards to engage owners and managers of commercial office properties. The Western States Council is an organization made up of Sheet Metal Workers International Association Local Unions located in the States of California, Arizona, Nevada and Hawaii. General Experience/Sectors of Interest NRDC s aim is to ensure the process is fair, transparent, and streamlined. HVAC installations in all market sectors. SBUA advocates for small customers in the Commercial sector. SBUA and its representatives have also engaged with Cross-Cutting issues in energy efficiency and other proceedings, including advocating for emerging technologies that serve small businesses as well as workforce training focused on the needs of small businesses. USGBC-LA s experience is focused on the Commercial sector. USGBC- LA has experience in evaluating RFPs through the Annual Municipal Green Building Conference & Expo, where 20 vendors are vetted each year to display their products and solutions for the Southern California Commercial market. Also, USGBC- LA has experience issuing annual RFPs for the Legacy Project, which is a built project focused on underserved communities. Training workers that install HVAC systems in all market sectors. Tables 2-5 provide an overview of each IOU s recommendations for its local PRG, while Table 6 highlights the IOUs recommendations for the Statewide PRG. 4

5 Table 2: Pacific Gas and Electric Company EE PRG Blue Green Alliance IBEW Local 11 IBEW Local 332 IBEW Local 569 Individual Consultant/Expert Natural Resources for Defense Council Sheet Metal Worker s Local 104 Small Business Utility Advocates Western States Council of Sheet Metal Workers JB Tengco Richard Reed Will Smith Lynn Minor Jason Gumataotao Charles Goldman Lara Ettenson David Dias Kathryn Kriozere James Birkelund Dion Abril Table 3: San Diego Gas & Electric Company EE PRG BlueGreen Alliance IBEW Local 11 IBEW Local 569 Natural Resources for Defense Council Sheet Metal Worker s Local 104 Small Business Utility Advocates Western States Council of Sheet Metal Workers JB Tengco Richard Reed Lynn Minor Jason Gumataotao Lara Ettenson David Dias Kathryn Kriozere James Birkelund Dion Abril Table 4: Southern California Edison Company EE PRG BlueGreen Alliance IBEW Local 11 IBEW Local 569 Individual Consultant/Expert Natural Resources for Defense Council Sheet Metal Worker s Local 104 Small Business Utility Advocates JB Tengco Richard Reed Lynn Minor Jason Gumataotao Charles Goldman Lara Ettenson David Dias Kathryn Kriozere James Birkelund 5

6 US Green Building Council- Los Angeles Chapter (USGBC-LA) Dominique Hargreaves Western States Council of Sheet Metal Workers Dion Abril Table 5: Southern California Gas Company EE PRG BlueGreen Alliance IBEW Local 569 Natural Resources for Defense Council Sheet Metal Worker s Local 104 Small Business Utility Advocates US Green Building Council- Los Angeles Chapter (USGBC-LA) Western States Council of Sheet Metal Workers JB Tengco Lynn Minor Jason Gumataotao Lara Ettenson David Dias Kathryn Kriozere James Birkelund Dominique Hargreaves Dion Abril Table 6: Statewide EE PRG BlueGreen Alliance IBEW Local 569 Individual Consultant/Expert Natural Resources for Defense Council Sheet Metal Worker s Local 104 Small Business Utility Advocates Western States Council of Sheet Metal Workers JB Tengco Lynn Minor Jason Gumataotao Charles Goldman Lara Ettenson David Dias Kathryn Kriozere James Birkelund Dion Abril 6

7 Based on due diligence performed as described, the IOUs recommend that Energy Division approve the EE PRGs as suggested in this letter. Sincerely, /s/ Brittney L. Lee Regulatory Case Manager San Diego Gas & Electric Company cc: Robert Strauss Energy Division Alison LaBonte Energy Division Mona Dee Dzvova Energy Division Ryan Chan, Chris Kato Pacific Gas and Electric Company Athena Besa, Ragav Murali San Diego Gas & Electric Company Matthew Evans, Robert Brunn Southern California Edison Company Erin Brooks, Elizabeth Baires Southern California Gas Company 7

8 ATTACHMENT Energy Efficiency Procurement Review Group Charter Background California Public Utilities Commission ( Commission or CPUC ) Decision (D.) authorizes the investor-owned utilities (IOUs) to establish energy efficiency (EE) procurement review groups (PRGs) that advise the IOUs on solicitations for EE programs. 1 Considering the volume of solicitation activity anticipated in the transition to the new third-party model and as required by D , the IOUs will convene PRGs that are involved at each stage of all solicitations and will provide feedback to the IOUs. 2 The PRGs will be conducted in a similar manner to the supply-side PRGs. Although PRG membership will likely overlap among the IOUs, each IOU will maintain its own PRG. 3 To facilitate consistency to the extent possible, the IOUs coordinated to develop the following standard PRG materials (enclosed): Non-Disclosure Agreement (NDA) Conflict of Interest Form Questionnaire The purpose of this charter is to provide prospective PRG members with an overview of the PRGs objective and scope of review, eligibility and intervenor compensation requirements, and roles and responsibilities, described below. Objective The PRGs shall advise and assist the IOUs with compliance on their solicitation protocols for new thirdparty programs, as directed by the Commission. 4 Scope The PRGs will be involved at all stages of the solicitation process, including: 5 Draft Request for Abstract (RFA) review Review of RFA bids and shortlist Draft Request for Proposal (RFP) review Review of RFP bid selection criteria RFP shortlist and selected contractor review Review independent evaluator (IE) evaluations of all solicitations Eligibility All PRG members must be non-financially interested parties, as defined in D : A financially interested party is any person who engages in the purchase, sale or be [sic] marketing of energy efficiency products or services, or who is employed by a private, municipal, 1 D , Ordering Paragraph (OP) 4. 2 D , Conclusion of Law (COL) D , OP 3. 4 D , p D , p. 36.

9 state or federal entity that engages in the purchase, sale or marketing of energy efficiency products or services, or who provides consulting services regarding the purchase, sale or marketing of energy efficiency products or services, or an employee of a trade association comprised of entities that engage in the purchase, sale or marketing or (sic) energy efficiency products or services Energy efficiency services include among other things, performing energy audits and advising clients and potential customers about potential energy savings they can achieve, but does not include evaluating, measuring and verifying the installation and/or results of energy efficiency products or services, or research to develop new energy efficiency products or services. The procurement review group for energy efficiency third party solicitations, made up of members of non-financially-interested parties, including Commission staff and the Office of Ratepayer Advocates, with membership approved by the Director of the Commission s Energy Division. 6 Intervenor Compensation PRG participants will be eligible for compensation in accordance with the Commission s intervenor compensation program. 7 Parties interested in claiming intervenor compensation are encouraged to read the Commission s Intervenor Compensation Program Guide and must submit all required documents to the Commission for review. 8 Roles and Responsibilities The key parties involved in the PRG process are the IOUs, PRG members, and IEs. The primary roles and responsibilities for each of these parties as they relate to the PRG process are highlighted below: Notice: the IOUs will notice all meetings at least three business days in advance, which will include call in numbers for all participants Agenda: the IOUs will distribute an agenda and meeting materials at least 48 hours in IOUs 9 advance of each PRG meeting Facilitation: the IOUs will administer and facilitate PRG meetings Meeting Notes: the IOUs will distribute meeting notes to PRG participants within one week of the meeting conclusion or before the next scheduled meeting, whichever comes first PRG participants must commit to serving on a PRG until the end of 2019, attend meetings to the extent possible, and faithfully review meeting materials PRGs are advisory groups and do not have decision-making authority PRGs 10 PRGs will be consulted at all stages of solicitations, including but not limited to: o Reviewing each sector-or segment-specific solicitation plan; o Providing timely input into draft solicitation language and evaluation criteria; and o Providing recommendations based on review of materials IEs 11 IEs will serve as consultants to the PRGs and participate in PRG meetings IEs will observe each solicitation and prepare and submit a report including their findings and recommendations with the PRGs and the Commission (if required) at the end of the solicitation process 6 D , OP 3. 7 D , Finding of Fact (FOF) 11, COL These materials are available on the CPUC s website at 9 D , OP D , p. 35, OP D , pp , OP 5.

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