FINANCE PILOT ROLLOUT SCHEDULE
Frank Spasaro, SoCalGas
Saul Gomez, CAEATFA
CPUC Workshop: August 16, 2013
CAEATFA BACKGROUND
Board Members:
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Bill Lockyer, State Treasurer and Chair
John Chiang, State Controller
Ana J. Matosantos, Department of Finance
Michael R. Peevey, California Public Utilities Commission
Dr. Robert B. Weisenmiller, California Energy Commission
Phone:
Email:
Website:
(916) 651-8157
caeatfa@treasurer.ca.gov
http://treasurer.ca.gov/caeatfa/
APPROACH USED TO DEVELOP PILOT ROLL-OUT SCHEDULE
We developed the schedule based on the following
approach.
 Identify the requirements laid out in the PD and in
CAEATFA policies and procedures to implement
finance pilots.
 Identify mechanisms to speed up as much as possible
the pilot roll-out, given inter-dependencies.
 Overlay the first two steps with operational
requirements for a successful pilot roll-out.
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PROPOSED DECISION REQUIREMENTS
The PD required a series of 9 Advice Letters as follows:
Draft RFPs (Master Servicer,
Technical Consultant & Lease Pilot)
Start-Up EEFE
Final EEFE
Program Plan
InterAgency Agreement
IT Budgets
On-Bill Financing
OBR Tariff
Incremental Savings Filing
 The PD also referenced filings related to a marketing plan and revisions to
the Emerging Technologies program, which may be filed through an advice
letter.
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 Budgetary Authority
 CAEATFA must obtain to serve as EEFE
 Joint Legislative Budget Committee decision expected
within 45 days of CPUC Final Decision
Agreement Type
RFP
required?
CAEATFA Board
DGS approval
approval required? required?
Interagency Agreement
with CPUC
No
Yes
No
Contracts with IOUs
No
Yes
Yes
Contracts with Master
Servicer, Trustee, etc.
Yes
Yes
Yes
Lender Service
Agreements
Process and approvals will depend on content of LSA
AGREEMENTS
CAEATFA BUDGETARY AND CONTRACTING REQUIREMENTS
 Development
 Includes public workshops and public comment opportunities
 CAEATFA Board approval
 Emergency rulemaking
 Submitted to Office Administrative Law (OAL); approval 15
days after submission
 Effective for 180 days; plus two 90 day readoptions
 Regular rulemaking
 Submitted and approved by OAL
 Must be completed prior to expiration of emergency
regulations
REGULATIONS
CAEATFA RULEMAKING PROCESS
MECHANISMS TO SPEED UP FINANCE PILOT ROLL-OUT (1)
We identified several mechanisms that will speed roll-out
of the Pilots, while considering interdependencies among
many process steps.
 Avoid process duplication
o One procurement process should take place for all
contracts required to roll out pilots. A single
procurement implies that SCG not serve as a StartUp EEFE, but instead act in a consultative role to
CAEATFA.
o CAEATFA is not allowed to assume a contract that
has been entered in to by another party.
o This mechanism assumes that CAEATFA receives all
approvals necessary to become the final EEFE.
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MECHANISMS TO SPEED UP FINANCE PILOT ROLL-OUT (2)
 Adopt a phased approach to the pilots.
 A phased roll-out enables some pilots to launch more quickly than
others, recognizing that some pilots are more complex than others.
 The phased approach enables early roll-out of pilots that do not require:
o High volume on-bill capabilities.
o A Master Servicer
 We recommended bundling the pilots in three phases:
1. Pre-Development Pilots
a. Multi-Family Pilot with no ratepayer funded credit
enhancement
b. Energy Financing Line Item Charge
2. Fast-Track Pilots
a. Single Family pilot
b. Off-utility bill lease pilot [Not approved in PD]
3. Regular Track Pilots
a. Remaining On-Bill Repayment Pilots
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MECHANISMS TO SPEED UP FINANCE PILOT ROLL-OUT (3)
Minimize and Speed Up Approval Processes
 Minimize Approvals required by allocating roles and
responsibilities in a way that leverages existing
authority. For example:
o Place marketing and outreach capacity with IOUs because
CAEATFA, by statute, cannot conduct direct public outreach
o Place contractor approvals with IOUs to leverage existing IOU
contractor relationships and management capacity.
 Speed up approvals by preparing all relevant parties
(CAEATFA board, DoF) to receive approval requests.
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MECHANISMS TO SPEED UP FINANCE PILOT ROLL-OUT (4)
Reduce number of required advice letters and/or PIPs
 Some advice letters may not be necessary or required, and
others may be able to be combined.
 Eliminating or combining advice letters will reduce time required
to approve and then release RFPs or other program elements.
 We have suggested:
Draft RFPs (Master Servicer, Technical
Consultant & Lease Pilot)
Suggest Eliminating
Start-Up EEFE
Suggest Eliminating
Final EEFE
Program Plan
Suggest Combining & Split Program Plan Bwtn Fast/Regular Track Plans
InterAgency Agreement
No Change
IT Budgets
On-Bill Financing
No Change
OBR Tariff
No Change
Incremental Savings Filing
No Change
In addition, Qualifying Measures may
be Posted Earlier than Required
10 in PD
OPERATIONAL REQUIREMENTS FOR PILOT ROLL-OUT
Operational requirements include:
 Master servicer:
o Establish all data and cash interface with financial
product originators and utilities.
o Establish data collection mechanisms pursuant to
CPUC/CAEATFA guidance.
 Develop all required IT system build-out (after selection of
Master Servicer)
 Develop financial institution qualification requirements
 Develop credit enhancement protocols
 Develop and begin marketing, education and outreach
program.
 Develop contractor qualification process.
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