Report on the LADWP Commercial Direct Install (CDI) Program and its Alignment with Sustainable Development Goals

Introduction and Program Overview

The Los Angeles Department of Water and Power (LADWP) has initiated the Commercial Direct Install (CDI) Program, a five-year, no-cost initiative designed to upgrade facilities for small, medium, and large commercial customers with energy-efficient equipment. This program is a strategic effort to reduce energy consumption and operational costs for local businesses while advancing the City of Los Angeles’s ambitious environmental targets. The CDI Program serves as a practical implementation of several United Nations Sustainable Development Goals (SDGs), particularly those focused on energy, economic growth, inequality, and sustainable cities.

Core Objectives and Contribution to Global Goals

The program’s primary objectives are directly aligned with key targets of the Sustainable Development Goals, specifically SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

1. Advance SDG 7: By promoting and installing energy-efficient technologies at no cost to businesses, the program increases the share of energy efficiency in the city’s energy mix, a core component of ensuring access to affordable, reliable, and sustainable energy for all.
2. Support SDG 13: The initiative is instrumental in achieving the City of Los Angeles’s goals to attain 100 percent carbon-free energy by 2035 and reduce citywide energy use by 15 percent by 2030. These actions represent a significant local contribution to combating climate change and its impacts.

Program Components and Infrastructure Modernization (SDG 9)

In line with SDG 9 (Industry, Innovation, and Infrastructure), the CDI program facilitates the modernization of commercial infrastructure through a comprehensive, full-service approach. The implementation partner, Willdan Group Inc., provides the following services:

• A complete assessment of a facility’s energy savings potential.
• Installation of qualifying energy-saving measures, including indoor/outdoor LED lighting, high-efficiency refrigeration motors, and automatic door closers for cooling units.
• Ongoing technical support and managed warranty service for new equipment.
• Improved system reliability and reduced electric utility bills for participating businesses.

Socio-Economic Impact and Advancement of Equity Goals (SDG 8 & SDG 10)

The CDI program integrates strong social and economic objectives, contributing to SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).

• Decent Work and Economic Growth (SDG 8): The program is projected to employ 120 full-time local union workers under a project labor agreement, which also supports apprenticeship opportunities. By helping small and medium businesses reduce overhead costs, it strengthens the local economy.
• Reduced Inequalities (SDG 10): A primary focus of the program is equity. It has established a target for 70 percent of participation to come from historically disadvantaged communities (DACs), aligning with the LA100 Equity Strategies Initiative. Furthermore, it commits to allocating 33 percent of the total contract value to small business enterprises (SBEs) and disabled veteran business enterprises (DVBEs).

Eligibility and Strategic Partnerships (SDG 17)

Eligibility for the program is extended to small and medium commercial businesses with a monthly electrical demand below 250 kilowatts (kW). The program’s execution exemplifies SDG 17 (Partnerships for the Goals), showcasing a robust public-private partnership between LADWP, the nation’s largest municipal utility, and Willdan Group Inc., a specialized consulting firm. This collaboration leverages public sector goals and private sector expertise to deliver cost-effective and sustainable energy solutions across Los Angeles, thereby fostering a more sustainable urban community in line with SDG 11 (Sustainable Cities and Communities).

Sustainable Development Goals (SDGs) Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   The article’s core focus is the Commercial Direct Install (CDI) Program, which aims to help businesses “cut energy costs and reduce usage” by upgrading facilities with “energy-efficient equipment.” This directly supports the goal of ensuring access to affordable, reliable, sustainable, and modern energy.

2. SDG 8: Decent Work and Economic Growth

   The program promotes economic growth and job creation by supporting “small to medium-size businesses,” which “drive our local economy.” It also explicitly states it is “employing 120 full-time local union workers over five years” and supports “apprenticeship opportunities,” contributing to decent work.

3. SDG 10: Reduced Inequalities

   The program has a strong equity focus, “aiming for 70 percent participation from historically disadvantaged communities (DACs).” It also commits to allocating “33 percent of the total contract value to small business enterprises (SBEs) and disabled veteran business enterprises (DVBEs),” directly addressing economic inclusion and reducing inequalities.

4. SDG 11: Sustainable Cities and Communities

   The initiative is a city-level program designed to make Los Angeles more sustainable. It “furthers the City of Los Angeles’ goals to… reduce energy use citywide by 15 percent by 2030,” which helps reduce the environmental impact of the city.

5. SDG 13: Climate Action

   By promoting energy efficiency and supporting the city’s goal to “achieve 100 percent carbon-free energy by 2035,” the program is a direct measure to combat climate change and its impacts.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article connects the program to the city’s goal of achieving “100 percent carbon-free energy by 2035.”
  • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The program’s primary function is to upgrade facilities with “energy-efficient equipment” and “energy-saving technologies” to “reduce usage.”

• SDG 8: Decent Work and Economic Growth

  • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises. The program supports “small to medium-size businesses” and allocates 33% of its contract value to “small business enterprises (SBEs).”
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The program creates “120 full-time local union workers over five years” and supports “apprenticeship opportunities.”

• SDG 10: Reduced Inequalities

  • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… disability… or other status. The program aims for “70 percent participation from historically disadvantaged communities (DACs)” and allocates funds to “disabled veteran business enterprises (DVBEs).”

• SDG 11: Sustainable Cities and Communities

  • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities. The program directly supports the city’s goal to “reduce energy use citywide by 15 percent by 2030.”

• SDG 13: Climate Action

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The program is a tangible implementation of the City of Los Angeles’ climate goals, specifically the plan to achieve “100 percent carbon-free energy by 2035.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For SDG 7 (Affordable and Clean Energy):

  • Percentage reduction in energy use citywide (Target: 15% by 2030).
  • Progress towards 100% carbon-free energy (Target: 100% by 2035).
  • Number of commercial customers who receive energy-efficient upgrades.

• For SDG 8 (Decent Work and Economic Growth):

  • Number of full-time local union jobs created (Target: 120 over five years).
  • Percentage of total contract value allocated to SBEs and DVBEs (Target: 33%).
  • Number of small and medium-sized businesses participating in the program.

• For SDG 10 (Reduced Inequalities):

  • Percentage of program participation from historically disadvantaged communities (DACs) (Target: 70%).
  • Percentage of contract value allocated to disabled veteran business enterprises (DVBEs).

• For SDG 11 (Sustainable Cities and Communities) & SDG 13 (Climate Action):

  • Citywide energy consumption data, tracking progress towards the 15% reduction goal by 2030.
  • The share of carbon-free sources in the city’s energy mix, tracking progress towards the 100% goal by 2035.

4. Table of SDGs, Targets, and Indicators

Source: ladwpnews.com