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Local Government Commission



An Energy Newsletter for Local Governments

Energy Efficiency Incentives Proposed Decision Issued

The PUC has issued an energy efficiency Decision that presents a new regulatory framework for achieving and exceeding the state's energy efficiency goals. This action extends California's commitment to efficiency as the highest priority energy resource in advancing policies to reduce greenhouse gas emissions.

The decision establishes a new system of incentives and penalties to drive investor-owned utilities above and beyond California's 2006-2008 energy savings goals. The new "risk/reward incentive mechanism" provides an estimated return to consumers of over 100 percent on consumer investment in energy efficiency.

Meeting the Commission's energy efficiency goals for just the current period alone (2006-2008) will reduce global warming pollution by an estimated 3.4 million tons of carbon dioxide in 2008, equivalent to taking about 650,000 cars off the road.

The CPUC and the investor owned utilities are working hard now to get everything in place so that the programs in the next round of funding (2009-2011) will start in January 2009.

Part of this process is to develop a long-range statewide strategic plan to continue to move the state towards higher energy efficiency goals. Three big, bold strategies included in the decision are:

  • All new residential construction shall be zero net energy use by 2020
  • All new commercial construction shall be zero net energy use by 2030
  • The HVAC industry will be reshaped to assure optimal performance of HVAC equipment.

Read the decision (

Get on the service list for future announcements on this proceeding, including workshop dates and locations (

This is one of many topics where the Local Government Sustainable Energy Coalition could be representing local governments before the CPUC.

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