Within the commission and across our sister agencies allowed us to have a more developed view of what it means to focus on lowincome and disadvantaged communities. I think its an iterative process for the tool. Its got value but not perfect. Commissioner that was interesting. Thank you, commissioner, for that. As our remarks were in line with yours the challenge of getting off natural gas in the building sector. For us in local government sometimes theres structural barriers in terms of regulatory definitions as well as barriers for using public good charge money. So theres historic challenges. Some sit with you and your authority and some are with the California Public utilities commission. I wonder if you can give us an insight as to how the state agencies talk to one another. Talked a lot about the importance of listening to local government. Its a triangulation sometimes and i feel stuck sometimes in that triangle. Im wondering if you can explain how the Commission Works on that and advice for local government in breaking through that triangle. In fact i was knit in the city all day and having a meeting with by counterpart at the Public Utilities commission and see where we can Work Together and not in alignment and get in alignment where were not. A lot of positive activity comes out of each of the meetings. We try to do them once a quarter or so. But they have a regulatory process that actually is quite rigid and things dont move fast. We have our own issues at the commission developing standards. We have statutory requirements of transparency and notice and comment periods and things move slowly. Patience is the number one practice and having practiced in front of both commissions in a former life i understand what a process it is in a rule making. We have the luxury of working with them behind the scenes as a sister agency. Id invite to you interact with them and the same at the Energy Commission and actually, your staff does that routinely and our staff talks with barry and the counterparts there to see what the issues are and were trying to get data from the utility to the city. So i have no doubt theyll be able to get that done. We do struggle a little bit. I think of it as a down sized a robust is they can be difficult to navigate but they produce a transparent result and thats not happening a lot in d. C. At the moment and a hold up off processes and the fact we engage with stakeholders and often agree with industry on a new regulation radical, that say function of the process. Its a trustbuilding process. It takes sticktoitiveness but im willing to help in anyway. Want to is an i really appreciate the commissions your commissions willingness to listen to local government and meet with us and work with us regularly. I feel theres more accessibility on that front and your willingness to acknowledge the importance of getting through the data barrier with the utilities. Thank you for that. Commissioner commissioner stephenson. Commissioner that was great. Thank you so much. Appreciate it. The presentation both debbies presentation and your presentation spoke to adapting to great alternative and the five things that have to happen spoke to that and when i go back twentyplus years ago the opportunity to go green and do the right thing for the environment came with a Sticker Price that was worse. It was a worse experience. And over time the private and Public Sector came together and now we get to talk about led lights and theyre priced at a reasonable rate and if electric vehicles were a horrible experience nobody would be driving them no matter how great the opportunity is here. When you look at natural gas and how people interact in their homes it goes without saying if the experience wasnt good in absence of really regulation with a lot of teeth, or a fantastic alternative no ones going to adopt it. Is there a role for the commission or are there conversations taking place between the private sector and innovation teams you talk about here in Silicon Valley and elsewhere to create the opportunities . I saw a piece of the goal was things we hadnt thought about yet. New stuff. I how is that being driven and promoted by the commission, if at all, and if not are there place for people like to us step in and do something. Its a narrative of my job at the moment trying to engage with markets to help them figure out how to do what we want them to do to meet our policy goals. Lets take heat pumps as an example. If we need to get rid of gas furnaces and move to heat pumps, theres challenges. Theres less mature. In europe and japan theyre everywhere and they do exist and off the shelf but theres market barrier in the state. City of palo alto did a project to promote heat pumps and they learned a ton. Its been difficult and theyre restarting it to learn how to make it better. Thats one example. We then have to deal with refrid refrid refridgerant refridgerantss and this is classic where there are applications and Business Model type stuff. Where and were using the thread of regulation often to say come to the table. I want to work with you and help you and fund some research. For example on health care, l. E. D. S can be transformational. I dont know how many of you have been around someone and theres machines and cords and theres no natural light. Can tune the overhead life to be a natural cycle and change the light and people have Better Outcomes and heal better and you can put amber light around the lower end along the base board to help people navigate without losing sleep. Thats an example of a Better Technology that can thrive in a marketplace if someone has the foresight it make that connection. So theres any number of ways to show society will be better off besides just energy and caron from the technologies and we have to do a better job to make the case for the nonenergy benefits because luckily they align with our goal in the energy front but as you say people need really good reasons to adopt technology. Energy, frankly, where the energy walks and i live and breathe this every day so im different. Were all thinking about it but your average person and shouldnt be the marketplace should be serving them. We shouldnt expect everybody to be an energy expert. We should say the Better Technology is out there and align with our policy goals. Out today, my contractor was demolishing my house and its now a slab and ill be building hopefully zero energy or zero emissions house in davis. Im trying to walk the walk and learn and thats going right to policy. And particularly contractor who have their finger on the pulse of what people are buying and people are doing and asking them to do is worth its weight in gold. Thats the reality check we need to make our policy calibrated to the reality on the ground. Long way of answers, this not easy and theres no Silver Bullet but again, were in california. There are so many creative people. Theres so much intellectual capital and entrepreneurship and green capital. If anybodys going to do it it will be us. Well go down swinging. Commissioner a question. Can you talk about the communications and how you work with the participating cities the cuttingedge cities to ensure your message and their messages are amplifying each other so information you get from research or from contractors is actually brought down to the level where people live and make shes decisions. Energy commission does do that, dont they . We have an Outreach Team and anybody in the industry build home or has questions about the Building Code we have like a call center situation. I think the channels are multiple and building departments are key counterparts. Weve focussed on making sure the building departments get noticed when theres a change in the Building Code, bringing them along trying to get their pulse on updates to the Building Code. Were in the middle of the Building Code update taking effect january 1, 2019 and about to open the formal process with language and theres workshops with participants in the market place. Getting to consumers is i would say more difficult. Thats where its not part of our natural skill set. We have 700 people so its not insignificant but we dont do marketing we site power plants and have statutory obligations on the planning side. Part of the unique feature of this action plan this existing building and 350 action plan is that its really trying to figure out how we look at the world beyond the world of the Energy Commission and beyond the world of the state to try to figure out how to stimulate markets to do a lot of this maybe without rebates. Ideally we wont have to do rebates theyll just do the right thing but your question is well conceived. How do we get average People Living their lives and have jobs and constraints on their time and resources, how do we get them to have plausible decision dont take hours and hours of research they can just make and not be traumatized by it and were not there. Commissioner everybody sees the billboards of turning off the lights and not using the washing machine when theres a crisis. I think people would love to have this information. Im conscious of the time. Im taking a lot of time as the first speaker. Automation again, we have a lot of technology. Everybody has advanced meters. Theres a lot to be said about building functionalities into the structures and were seeing evolution in the Building Space where lights adjust to daylight. The hvac is off in the office if theyre not there and it knows how to dim the windows, when the sun is coming through and its all automated and theres Energy Savings and its a more comfortable more functional building and the incremental costs were high and this will enable the adoption and we have to build a system to make it happen. We have Regulatory Authority that can push things in that direction but we have to meet the marketplace halfway. Thank you. Well now go to item 7b. The clerk a presentation on the energy watch Energy Efficiency program the speaker is kathleen brian, Senior Energy specialist. Thank you for having me. Im going to focus on our local Energy Efficiency programs the San Francisco energy watch and the bayren program. For the longest Running EnergyRunning Program is called the San Francisco energy watch since 2006. As the a local and Governmental Partnership and were under pge to do implementation of the program. The 12year partnership has allowed to us build a strong team inhouse of dedicated Energy Professionals including engineers, environmental scientists and construction folks. The funding for this program, as for other Energy Programs, is the public goods charge on your build. They provide buydown of the equipment at every stage and San Francisco energy watch is the only one serving San Francisco with what we call direct install from the beginning to end, audit to installation. We provide reduced cost installation to customers in San Francisco, commercial and multifamily. These change over the Court Reporters over the years and they changed over the years and worked on t12s and magnetic ballists and now recommend linear l. E. D. Lamps. For lighting we focus on interior around exterior l. E. D. Fixtures. Our contractors work on installing coolers and freezer and replacing motors and installing motors on the units on the heating and cooling side our work is more limited. We do variable speed drives as well as controllers for small a. C. Units you may see in hotel rooms. So how does this all work. Ill walk you through the process. One of our customers. For the first step is the free Energy Assessment and its a walkthrough and depends on the customers needs. It will at times focus on the area of the building, potentially the common areas or particular Technology Lighting in many cases. Other times the customer will look at all the Energy Systems of the building. After well provide recommendations including the estimate the incentives and paybacks and if they want to move forward they can work with somebody they know or do the work with their own staff. Next step is installation. Again, by our own energy watch vetted contractors or the customers own choice. Next, our staff goes back on site to do postinstallation evaluation and make sure quality installation was provide and ensure theyre happy with the work. Last step is payment. The customers can direct incentive to the contractor the advantage they only have to pay the copay or can receive the incentive directly. These incentives typically cover 60 to 70 projects. Theres not free projects anymore. We know affordable and accessible financing is a requirement. It currently offers onbill financing with a minimum loan amount of 5,000, 0 interest, no fees, the project has to pay back within five years and the barrier there is the minimum of 5,000 so what weve done is offered a microcredit option with a lower barrier for application and a lower minimum so theres basically no minimum and a term of 18 months. So i want to show to you something were starting to look at and thats how our activity has align with the potential across the city. You can see the work stands the city. Its not very visible to the audience. We represented that with the number of registered business. We used open data to look at open businesses by district and the text you see shows the percent of total incentives granted in each direct. If you look at districts 3 and 6 you see theyre the darkest in the color gradient and together represent 63 of the incentive we spent. So our achievements here i want to highlight how impactful the program has been and the 25 million is the most impressive to me. After 12 years word of mouth referrals are phenomenal. We have great Brand Recognition with property managers, Building Engineers and facilities managers and owners. We dont have to do a lot to keep the leads coming into us. It allowed us to push 25 million in incentives to 7900 projects and it saves nearly 52,000 metric tons of carbon emitted or the removal of 11,000 cars on the road. So i want to talk about just one of our pilot project. We have some Strategic Energy resources funding through our contract of pge. And theres comprehensive maintenance in the food and beverage sector. Through past campaigns street level and Small Businesses we identified a gap for customers with deferred maintenance. Our core program is good on working on widgetbased solutions but it struggles with the other systems badly maintained. These are challenges we face in the field, rust and ice build up. Business owners tell us they dont have the time or money to keep up with the maintenance on these systems but the preexisting conditions are a challenge because installers dont want to go in because they may be liable when someone breaks and if they were to replace the motor we wouldnt see the Energy Savings were expecting. So what were doing on the project now in its third year is testing several tools, energy monitoring, maintenance, training, equipment tuneups and buy and smartphone apps to empower these customers to actually track how their systems are performing. Heres a great example of someone who participated in the pile popt its a taste of vietnam. We trained the customer on maintenance and provided a free tu tuneup. We think the longterm relationships help the customer move on the Energy Efficiency journey. Another site here this customer was concerned something outside of Energy Efficiency. She was worried the hot halogen lamps would damage the product and helped replace the lighting with l. E. D. S and had lighting Energy Savings and airconditioning savings. Another customer thirsty bear. We worked with them to do a lighting retrofit and he came back to us in 2013 and retrofitted the entire space with lighting and refrigeration with us. [please stand by] [please stand by]. Aea implements the programme, but in San Francisco, we draw on that same team of Energy Experts to actually do inhouse implementation. Were the only government in the bay area that does so. So what does it offer . Its intended to remove every barrier to participation for these multifamily building owners. Typical barriers in this hardtoreach, hardtoserve sector include lack of capacity to act, lack of capital, and lack of financing. This project has specific tools to address each of these concerns. The programme covers a much broader range of measures than energy watch does. So its actually a calculated approach to encompass all kinds of energysaving measures including natural gas. And it focuses also on combustion safety, comfort and reliability for the residents. For a similar graphic here, the multifamily team, this actually represents both our energy watch and bay run work in the multifamily sector. Weve done a similar exercise to understand how our efforts align with the potential. This map shows all the activity and the colour gradient this time represents the number of multifamily buildings. So you see a higher percentage in district 2 and 3 in the centre of the city, and as expected there, you see th