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Attachment a 03/19/19 04:59 PM FILED Attachment A 03/19/19 04:59 PM CAEECC‐Hosted Market Transformation Working Group Report and Recommendations to the California Public Utilities Commission March 18, 2019 1 1 / 62 Table of Contents List of Tables ........................................................................................................................................ 5 List of Figures ....................................................................................................................................... 5 Acronyms ............................................................................................................................................. 6 Section 1: Introduction & Overview ...................................................................................................... 8 Report Structure .............................................................................................................................. 9 Section 2: Market Transformation Initiative Principles, Guidelines, & Strategies ................................ 11 Introduction .................................................................................................................................. 11 Market Transformation Guidelines & Strategies ............................................................................ 12 Section 3: Market Transformation Stage‐Gate Proposal & Decision Criteria ....................................... 13 Introduction .................................................................................................................................. 13 Ideation & Intake ........................................................................................................................... 13 Phase I: Concept Development ..................................................................................................... 14 Stage 1 – Concept Scanning & Identification ..................................................................................................... 14 Stage 2 – Concept Development & Assessment ................................................................................................ 15 Review 1 ............................................................................................................................................................. 16 Phase II: Program Development ..................................................................................................... 17 Stage 3 – Strategy Development ........................................................................................................................ 17 Stage 4 – Strategy Testing .................................................................................................................................. 18 Review 2 ............................................................................................................................................................. 18 Phase III: Market Deployment ....................................................................................................... 19 Stage 5 – Market Development ......................................................................................................................... 19 Stage 6 – Long‐Term Monitoring ....................................................................................................................... 19 Review 3 ............................................................................................................................................................. 19 Stage 7 – Transition or Sunset MTI ................................................................................................. 19 Section 4: Stakeholder Roles & Responsibilities .................................................................................. 20 Definitions ..................................................................................................................................... 20 Role of the Market Transformation Administrator(s) (MTA(s)) ....................................................... 21 Concept Development Phase (Phase I) .............................................................................................................. 21 Program Development Phase (Phase II) ............................................................................................................. 21 Market Deployment Phase (Phase III) ................................................................................................................ 21 Role of the Market Transformation Advisory Board (MTAB) .......................................................... 22 Criteria and Guidance Setting (Pre‐Stage 1) ...................................................................................................... 22 Concept Development & Assessment Stage (Stage 2 of Phase I) ...................................................................... 22 Beyond Phase I ................................................................................................................................................... 22 Composition of the MTAB .................................................................................................................................. 23 Role of an Independent Review Committee (IRC) ........................................................................... 23 Section 5: Administration Options for the Market Transformation Portfolio ....................................... 24 Option 1: Administration by the Existing Program Administrators ................................................. 24 2 2 / 62 Rationale for Administration by the Existing PAs ............................................................................................... 24 Features Related to Administration by the Existing PAs .................................................................................... 26 Option 2: Administration by a Single, Independent Statewide Administrator ................................. 28 Rationale for Administration by a Single, Independent Statewide Administrator ............................................. 28 Selection of the Single, Independent Statewide Administrator ......................................................................... 31 Features Related to Administration by a Single, Independent Statewide Administrator .................................. 31 Section 6: Budget ............................................................................................................................... 32 Amounts & Caps ............................................................................................................................ 32 Budget Approval Process ............................................................................................................... 32 Integration with the Rolling Portfolio ............................................................................................. 33 Funding Split .................................................................................................................................. 33 Section 7: Market Transformation Cost‐Effectiveness (CE) Framework ............................................... 34 Scope of Recommended Modifications .......................................................................................... 34 Recommendations: Counting Codes & Standards (C&S) Savings & Costs ........................................ 34 Inclusion of C&S into the CE Methodology ........................................................................................................ 34 Estimating the MTI C&S Savings & Costs ........................................................................................................... 35 Recommendation: Timeframe of Costs & Benefits (Separate from C&S) ......................................... 36 Recommendation: Net‐to‐gross Methodology ............................................................................... 36 Recommended Options: CE Threshold ........................................................................................... 36 Option 1: 1.25 Total Resource Cost Test/Program Administrator Cost Test ..................................................... 37 Option 2: 1.5 Total Resource Cost Test/Program Administrator Cost Test ....................................................... 3 7 Section 8: Market Transformation Initiatives and Resource Acquisition Programs .............................. 39 Introduction .................................................................................................................................. 39 Overview ....................................................................................................................................... 39 Types of Overlap ............................................................................................................................ 40 Activities to Encourage Cooperation .............................................................................................. 40 Selecting MTIs to Enhance Positive and Minimize Negative Overlaps ............................................. 41 Identifying & Assessing Overlaps ................................................................................................... 41 Activities to Avoid/Reduce/Mitigate Overlap ................................................................................. 41 Resolution of Conflicts ..................................................................................................................
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