1 9
re ne w a ble r es o urces. I n 2 0 3 5 A V C E ’s 30 M M T P C P p ortf oli o w o ul d c o nsist of 6 0. 1 % eli gi ble re ne w a ble ge n erati o n, w hic h e xcee ds t he 6 0 % r e q uire me nt.
E n a ble E ac h Electric al C or p or ati o n t o F ulfill Its O bli g ati o n t o Serve C ust o mers at J ust a n d Re as o n a ble R ates
As detaile d i n Sect i o n III.e., bel o w, A V C E is c o m mitte d t o ser vi n g its c ust o mers at reas o na ble rates. I n a d diti o n t o setti n g rates t hat ar e c o m petiti ve wit h S C E , A V C E w or ks t o mi ni mize rate v olatilit y b y c o nstr ucti n g a bala nce d a n d c o nser v ati vel y he d ge d p o wer s u p pl y p ortf oli o, b uil di n g pr u de nt fi na nci al reser ves, a n d mi ni mizi n g rate c h a n ges t o o nce p er year , w he ne ver p ossi ble.
Mi ni mizi n g Bill I m p act
A V C E ’s 30 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( D) g oal of mi ni mizi n g t he i m pact of pla n ne d pr oc ur e me nt o n rate p a yers’ bills. A V C E ’s 3 0 M M T P C P p ortf oli o c o nsists pri maril y of re ne w a ble r es o urces t hat ge n erall y s u p p ort a least-c ost, best-fit pr oc ure me nt str ate g y. A V C E ’s pla n ne d use of lar ge h y dr o res o ur ces is e x pecte d t o mi ni mize c osts ass ociate d wit h l o weri n g G H G e missi o ns beca use t he c ost pre mi u ms ass ociate d wit h lar ge h y dr o e ner g y is less t ha n t h ose ass ociate d wit h R P S q ualif yi n g re ne w a ble e n er g y.
A V C E pri oritizes c ost c o m petiti ve ness, relia bilit y, use of re n e wa ble e ner g y a n d l ocal ec o n o mic de vel o p me nt a m o n gst its pri mar y c o ncer ns. A V C E a ntici pates t hat bill i m pacts will be mi ni mize d d uri n g its pla n ne d p ortf oli o tra nsiti o n t hr o u g h t he p urs uit of a di versifie d res o urce mi x t hat see ks t o mi ni mize e x p os ur e(s) t hat c o ul d ot her wise occ ur b y o ver e m p hasizi n g res o ur ces l ocate d wit hi n s pecific g e o gra p hic areas, rel yi n g o n a li mite d s u bset of tec h n ol o g y t y pes a n d/ or p urc hasi n g fr o m a li mite d p o ol of s u p pliers/ de vel o pers, a m o n gst ot her c o nsi derati o ns. A V C E is als o a war e of t he ris ks ass ociate d wit h certai n re n e wa ble - o nl y g e ner ati n g c o nfi g urati o ns t hat li mit t he b u yer’s a bilit y t o re s ha p e deli veri es t o ti mes of t he da y w h e n ne g ati ve prices a n d, p ossi bl y, c urtail me nts are less li kel y t o occ ur. Wit h t his c o ncer n i n mi n d, A V C E has car ef ull y c o nsi dere d a n d i nc or p or ate d e ner g y st or a ge o p p ort u nities wit hi n its res o urce mi x, w hic h s h o ul d pr o m ote gri d relia bilit y d uri n g Calif or nia’s tra nsiti o n t o a n i n creasi n gl y cl ea n/re ne wa bl e e ner g y mi x w hile re d uci n g t he p ote ntial f or u nf or esee n c osts ( d ue t o ne gati ve prici n g) a n d/ or re d u ce d re ne w a ble e n er g y deli veries relate d t o c urtail me nt. F or e x a m ple, c o u pli n g n e w- b uil d s olar wit h batter y st ora ge i n creases t he ca pacit y val ue of s u c h pr ojects a n d pr o vi des li mite d dis patc ha bilit y f or t he s olar g e ner ati o n, r e d uci n g ris ks relat e d t o c urtail me nt a n d ne gati ve prici n g. F urt her, A V C E ’s 30 M M T P C P re d uces e x p os ure t o v olatile nat ural gas pri ces as w ell as bill i m pacts t hat ma y res ult fr o m peri o dic s pi kes i n f ossil f uel prices.
E ns uri n g Syste m a n d L oc al Reli a bility
A V C E’s 3 0 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( E) g oal of e ns uri n g s yste m a n d l ocal relia bilit y. T he 3 0 M M T P C P meets s yste m res o urce a de q u ac y re q uire me nts as d etaile d i n Secti o n III.f. Wit h t h e a d o pti o n of t he Ce ntral Pr oc ure m e nt E ntit y str uct ure, A V C E n o l o n ger has l ocal res o ur ce a de q uac y r e q uire m e nts si nce t he C P E has ta ke n o ver t he pr o c ure me nt of l ocal res o ur ce a de q uac y ca pacit y wit hi n A V C E’s ser vice ar ea, p urs ua nt t o D. 2 0- 0 6- 0 0 2. A V C E’s p ortf oli o ass u mes C A M all ocati o ns a n d C A M res o urces, w hic h i nc or p orat e C P E s yste m a n d fle xi ble ca p acit y all ocati o ns, c o nsiste nt wit h
2 0
w hat is descri be d i n t he m ost rece ntl y iss ue d C P E pr oc ure m e nt all ocati o ns. At t his p oi nt, u ncertai nties a n d i nitial i m ple me ntati o n iss ues wit h t he C P E ma ke it diffic ult f or A V C E t o esti mate h o w t he C P E str uct ure will c ha n g e A V C E’s R A nee ds o ver ti me.
As it has d o ne i n t he past, a n d as s h o w n i n m ost state pla n ni n g st u dies, A V C E a ntici pates t hat it will meet a p orti o n of its relia bilit y nee ds t hr o u g h ca pacit y - o nl y c o ntracts wit h nat ural gas pla nts.
A V C E has c o ntracte d wit h de ma n d res p o nse res o urces t o f u lfill s o me of its R A nee ds a n d is e x pl ori n g ot her o p p ort u nities f or de ma n d r es p o nse. A V C E is h o pef ul t hat ne w tec h n ol o gies will be de vel o pe d t h at will pr o vi de clea n er r es o urces wit h t he relia bilit y c haracteristics of Calif or nia’s e xisti n g nat ural gas fleet , a n d it will c o nti n ue t o i n vesti gate s uc h res o urces as a p pr o priate. T his n ote d, o ne of A V C E’s pri mar y c o ncer ns is s u p p orti n g o n g oi n g gri d relia bilit y, w hic h c o m pels t he C C A pr o gra m, i n t he near ter m, t o i ncl u de nat ural gas r es o urces a m o n gst its res o urce a de q u ac y p urc h ases u ntil s uc h ti me t hat clea n, r elia ble ca pacit y b ec o mes m ore rea dil y a vaila ble.
E ns ure t h at at le ast 6 5 % of R P S Pr oc ure me nt is Fr o m L o n g- Ter m C o ntr acts C o nsiste nt wit h Secti o n 4 5 4. 5 2(a)( 1)( F), A V C E is on pace t o meet t he re q uire me nt t hat 6 5 % of its R P S pr oc ure me nt m ust c o me fr o m c o ntr acts of 1 0 years (l o n g-t er m or m ore f or eac h c o m plia nce peri o d. F or t he c urr e nt c o m plia nce peri o d, A V C E has pr oc ure d 9 0 % fr o m l o n g- term c o ntracts. A d diti o nall y, t he maj orit y of t he res o ur ces s h o w n i n A V C E’s 3 0 M M T P C P are e x pecte d t o b e ac q uir e d t hr o u g h l o n g-ter m c o ntr acts. A V C E will c o nti n ue t o pr oc ure re ne wa bles t hr o u g h s h ort-ter m c o ntr acts w he n o p p ort u nities prese nt t he msel ves f or c ost-efficie nt pr oc ure m e nt a n d w he n d oi n g s o w o ul d re d uce a n y re mai ni n g de pe n d e nc y o n s yste m p o wer.
Stre n gt he n t he diversity, s ust ai n a bility, a n d resilie nce of b ulk tr a ns missi o n a n d distri b uti o n syste ms, a n d l oc al c o m m u nities
A V C E ’s 3 0 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics t hat stre n gt he n t he di versit y, s us tai na bilit y a n d resilie nce of t h e b ul k tra ns missi o n a n d distri b uti o n s yste ms, as well as l ocal c o m m u nities, meeti n g Secti o n 4 5 4. 5 2(a)( 1)( G). A V C E ’s 3 0 M M T P C P relies o n pr oc ure m e nt fr o m a v ariet y of res o urce t y pes as w ell as si g nifica nt st ora ge res o urces i nc or p orate d i n h y bri d s olar a n d st ora g e c o nfi g ur ati o n. A V C E belie ves t hat t he c o m ple me ntar y nat ure of t he s olar a n d st ora ge i n h y bri d r es o urces ma kes better u se of t he e xisti n g tra ns missi o n s yste m. A V C E car ef ull y e val uates t he l o n g t er m ge nerati o n l oa d- matc hi n g a n d c o n gesti o n ris ks of ne w r es o urces a n d w ei g hs its o pti o ns i n t he c o nte xt of its e xisti n g s u p pl y a n d net de ma n d o n a n h o url y basis f or t he f ull d urati o n of a n y c o ntract peri o d.
As descri be d b el o w, A V C E is acti vel y p urs ui n g t he pr oc ur e me nt of or h as rece ntl y p ur c hase d ca pacit y t o meet t he s u b - cate g or y re q uire m e nts of D. 2 1- 0 6- 0 3 5, w hic h i ncl u des l o n g- d urati o n st ora ge, clea n fir m res o urces li ke ge ot h er mal, a n d res o urces t o re place t he Dia bl o Ca n y o n P o wer Pla nt. A d diti o nall y, A V C E has rece ntl y pr oc ur e d d e ma n d res p o ns e ca p acit y res o urces, pr o vi di n g a d diti o nal s yste m di versit y.
De m a n d - Si de E n er gy M a n a ge me nt
A V C E ’s 30 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( G) g oal of e n ha n ci n g de ma n d-si de e ner g y m a na ge m e nt. A V C E c o nti n ues
2 1
t o e x pl ore a n d p urs u e de ma n d-si de ma na g e me nt pr o gra ms s uc h as d e ma n d res p o nse, e n er g y efficie n c y, a n d b e hi n d t he meter e n er g y st or a ge s ol uti o ns. As part of A V C E ’s pr oc ur e me nt t o war d D. 2 1- 0 6- 0 3 5, as disc usse d i n m ore detail i n Secti o n I V.a.ii., A V C E has c o ntracte d f or de ma n d res p o ns e res o ur ces t o meet a p orti o n of its re q uire me nts.
Mi ni mizi n g L oc alize d Air P oll ut a nts wit h Em p h asis o n Dis a dv a nt a ge d C o m m u nities ( “ D A Cs ”)
A V C E ’s 3 0 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)(l) g oal of mi ni mizi n g l ocalize d air p oll uta nts a n d ot her G H G e missi o ns wit h earl y pri orit y o n disa d va nta ge d c o m m u nities. A V C E ’s 3 0 M M T P C P relies pri maril y o n re ne w able ge n erati o n a n d h y dr oelectri c ge nerati o n, a n d t his p ortf oli o is e x pecte d t o e x hi bit relati vel y l o w G H Gs a n d l ocalize d air p oll uti o n e missi o ns. A V C E ’s 3 0 M M T P C P mi ni mizes A V C E ’s relia n ce o n u ns pecifie d s yste m p o wer, i nstea d o pti n g f or re n e wa ble a n d h y droelectric ge nerati o n pr o c ure m e nt/ de vel o p me nt w he n e ver f easi ble. Res ults fr o m t he C S P t o ol i n dicate t he f oll o wi n g l ocalize d air p oll uta nts ass ociate d wit h A V C E ’s 3 0 M M T P C P i n 2 0 3 5:
N O x: 7 t o n nes/ year
P M 2. 5: 3 t o n nes/ year
S O 2: 1 t o n nes / year
T hese e missi o ns are e x pecte d t o res ult fr o m t he pl a n ne d use of s yste m e ner g y a n d bi o mass e ner g y i n t he 3 0 M M T P C P , as well as e missi o ns fr o m C o m bi ne d Heat a n d P o wer (“ C H P”) res o urces a n d s yste m e n er g y assi g ne d t o t he A V C E p ortf oli o b y t he C S P t o ol. I n e v al uati n g ne w use of bi o mass res o ur ces, A V C E will pri oritize t h ose l ocate d o utsi de of D A Cs t o t he greatest practical e xte nt.
iii. 2 5 M M T P referre d C o nf or mi n g P ortf oli o As de m o nstrate d i n Attac h me nt A t o A V C E ’s I R P, A V C E ’s 2 5 M M T Preferre d C o nf or mi n g P ortf oli o c o nsists of a c o m bi nati o n of:
Utilit y Scale S olar
I n State Wi n d
O ut Of State Wi n d
S h ort- D urati o n St ora ge
L o n g- D urati o n St ora ge
S mall a n d Lar ge H y dr o g e nerati o n
Bi o m ass
Nat ural Gas/ Bas el oa d/ Ot her (ca pacit y o nl y)
As state d a b o ve, i n acc or da nce wit h Secti o n 4 5 4. 5 1( b)( 3), A V C E ’s g o ver ni n g b oar d has deter mi ne d t hat t he r es o urce mi x i n its 2 0 M M T P C P ac hie ves “ec o n o mic, relia bilit y, e n vir o n me ntal, sec urit y, a n d ot her be n efits a n d perf or ma nce c h aracteristics t hat are c o nsiste nt wit h t he g oals set f ort h i n [ Secti o n] 4 5 4. 5 1(a)( 1)].” T hese be n efits a n d c h aracteristics ar e disc usse d as f oll o ws.
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G H G Re d u cti o n G o als
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acter istics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( A) g oal of meeti n g t he C o m missi o n’s 2 5 M M T G H G re d ucti o n be nc h m ar k ( 3 8 M M T G H G b y 2 0 3 0).2 4 T he 2 0 3 5 e missi o ns fr o m A V C E ’s 2 5 M M T P C P are e q ui vale nt t o A V C E ’s l oa d- pr o p orti o nal s hare of t h e 2 5 M M T b y 2 0 3 5 e missi o ns tar get. A V C E ’s pr o p orti o nal s hare of t he 2 5 M M T G H G tar get is 0. 0 2 4 9 M M T i n 2 0 3 0 a n d 0. 0 2 0 0 M M T i n 2 0 3 5. Acc or di n g t o t he C o m missi o n’s e missi o ns calc ulat or, A V C E ’s 2 5 M M T P C P w o ul d acc o u nt f or 0. 0 2 4 7 M M T i n 2 0 3 0 a n d 0. 0 1 9 9 M M T i n 2 0 3 5 e missi o ns, w hic h is less t ha n t he G H G Be nc h mar ks f or A V C E .
Re ne w a ble E ner g y
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics t hat are c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( B) g oal of e ns uri n g t hat p ortf oli os are c o m pris e d of at least 6 0 % eli gi ble re ne w a ble res o ur ces. I n 2 0 3 0 A V C E ’s 2 5 M M T P C P w o ul d c o nsist of 6 1 % eli gi ble re ne w a ble ge n erati o n, w hic h mea ni n gf ull y e xcee ds t he 6 0% tar get.
E n a ble E ac h Electric al C or p or ati o n t o F ulfill Its O bli g ati o n t o Serve C ust o mers at J ust a n d Re as o n a ble R ates
As detaile d i n Secti o n III.e., bel o w, A V C E is c o m mitte d t o ser vi n g its c ust o mers at reas o na ble rates. I n a d diti o n t o setti n g rates t hat ar e c o m petiti ve wit h S C E, A V C E w or ks t o mi ni mize rate v olatilit y b y c o nstr ucti n g a bala nce d a n d c o nser v ati vel y he d ge d p o wer s u p pl y p ortf oli o, b uil di n g pr u de nt fi na nci al reser ves, a n d mi ni mizi n g rate c h a n ges t o o nce p er year, w he ne ver p ossi ble.
Mi ni mizi n g Bill I m p act
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( D) g oal of mi ni mizi n g t he i m pact of pla n ne d pr oc ur e me nt o n rate p a yers’ bills. A V C E ’s p ortf oli o c o nsists pri maril y of re ne wa ble res o urces t h at are well s uite d t o a least c ost, best-fit pr oc ur e me nt strate g y. A V C E ’s pla n n e d use of lar g e h y dr o res o urces is e x pecte d t o mi ni mize c osts ass ociate d wit h l o weri n g G H G e missi o ns beca use t he c ost pre mi u ms ass ociate d wit h lar ge h y dr o e n er g y is less t ha n t h ose ass ociat e d wit h R P S q ualif yi n g re ne wa bl e e ner g y.
A V C E pri oritizes c ost c o m petiti ve n ess, relia bilit y, use of re n e wa ble e ner g y a n d l ocal ec o n o mic de vel o p me nt a m o n gst its pri mar y c o ncer ns. A V C E a ntici pates t hat bill i m pacts will be mi ni mize d d uri n g its pla n ne d p ortf oli o tra nsiti o n t hr o u g h t he p urs uit of a di versifie d res o urce mi x t hat see ks t o mi ni mize e x p os ur e(s) t hat c o ul d ot her wise occ ur b y o ver e m p hasizi n g res o ur ces l ocate d wit hi n s pecific g e o gra p hic areas, rel yi n g o n a li mite d s u bset of tec h n ol o g y t y pes a n d/ or p urc hasi n g fr o m a li mite d p o ol of s u p pliers/ de vel o pers, a m o n gst ot her c o nsi derati o ns. A V C E is als o a war e of t he ris ks ass ociate d wit h certai n re n e wa ble - o nl y g e ner ati n g c o nfi g urati o ns t hat li mit t he b u yer’s a bilit y t o re s ha p e deli veri es t o ti mes of t he da y w h e n ne g ati ve prices a n d, p ossi bl y, c urtail me nts are less li kel y t o occ ur. Wi t h t his c o ncer n i n mi n d, A V C E has car ef ull y c o nsi dere d a n d i nc or p or ate d e ner g y st or a ge o p p ort u nities wit hi n its res o urce mi x, w hic h s h o ul d pr o m ote gri d relia bilit y d uri n g Calif or nia’s tra nsiti o n t o a n i ncreasi n gl y cl ea n/re ne wa bl e e ner g y mi x w hile re d uci n g t he p ote ntial f or u nf or esee n c osts ( d ue t o ne gati ve prici n g) a n d/ or re d u ce d 2 4 See D. 2 2 - 0 2- 0 0 4 at 1 0 5.
2 3
re ne w a ble e n er g y deli veries relate d t o c urtail me nt. F or e x a m ple, c o u pli n g n e w- b uil d s olar wit h batter y st ora ge i n creases t he ca pacit y val ue of s u c h pr ojects a n d pr o vi des li mite d dis patc ha bilit y f or t he s olar g e ner ati o n, r e d uci n g ris ks relat e d t o c urtail me nt a n d ne gati ve prici n g. F urt her, A V C E ’s 2 5 M M T P C P re d uces e x p os ure t o v olatile nat ural gas pri ces a n d bill i m pacts t hat ma y res ult fr o m peri o dic s pi k es i n f ossil f uel prices.
E ns uri n g Syste m a n d L oc al Reli a bility
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( E) g oal of e ns uri n g s yste m a n d l ocal relia bilit y. T he 2 5 M M T P C P meets s yste m res o urce a de q u ac y re q uire me nts as d etaile d i n Secti o n III.f. Wit h t h e a d o pti o n of t he Ce ntral Pr oc ure m e nt E ntit y str uct ure, A V C E n o l o n ger has l ocal res o ur ce a de q uac y r e q uire m e nts si nce t he C P E has ta ke n o ver t he pr o c ure me nt of l ocal res o ur ce a de q uac y ca pacit y wit hi n A V C E ’s ser vice ar ea, p urs ua nt t o D. 2 0- 0 6- 0 0 2. A V C E ’s p ortf oli o ass u mes C A M all ocati o ns a n d C A M res o urces, w hic h i nc or p orat e C P E s yste m a n d fle xi ble ca p acit y all ocati o ns, c o nsiste nt wit h w hat is descri be d i n t he m ost rece ntl y iss ue d C P E pr oc ure m e nt all ocati o ns. At t his p oi nt, u ncertai nties a n d i nitial i m ple me ntati o n iss ues wit h t he C P E ma ke it diffic ult f or A V C E t o esti mate h o w t he C P E str uct ure will c ha n g e A V C E ’s R A nee ds.
As it has d o ne i n t he past, a n d as s h o w n i n m ost state pla n ni n g st u dies, A V C E a ntici pates t hat it will meet a p orti o n of its relia bilit y nee ds t hr o u g h ca pacit y - o nl y c o ntracts wit h nat ural gas pla nts.
A V C E has c o ntracte d wit h de ma n d res p o nse res o urces t o f ulfill s o me of its R A nee ds a n d is e x pl ori n g ot her o p p ort u nities f or de ma n d r es p o nse. A V C E is h o pef ul t hat ne w tec h n ol o gies will be de vel o pe d t h at will pr o vi de clea n er r es o urces wit h t he relia bilit y c haracteristics of Calif or nia’s e xisti n g nat ural gas fleet, a n d it will c o nti n ue t o i n vesti gate s uc h res o urces as a p pr o priate. T his n ote d, o ne of A V C E’s pri mar y c o ncer ns is s u p p orti n g o n g oi n g gri d relia bilit y, w hic h c o m pels t he C C A pr o gra m, i n t he near ter m, t o i ncl u de nat ural gas r es o urces a m o n gst its res o urce a de q u ac y p urc h ases u ntil s uc h ti me t hat clea n, r elia ble ca pacit y b ec o mes m ore rea dil y a vaila ble.
E ns ure t h at at le ast 6 5 % of R P S Pr oc ure me nt is Fr o m L o n g- Ter m C o ntr acts C o nsiste nt wit h Secti o n 4 5 4. 5 2(a)( 1) ( F), A V C E is o n pace t o meet t he re q uire me nt t hat 6 5 % of its R P S pr oc ure me nt m ust c o me fr o m c o ntr acts of 1 0 years (l o n g- t er m or m ore f or eac h c o m plia nce peri o d. F or t he c urr e nt c o m plia nce peri o d, A V C E has pr oc ure d 9 0 % fr o m l o n g-ter m c o ntracts. A d diti o nall y, t he maj orit y of t he res o ur ces s h o w n i n A V C E’s 2 5 M M T P C P are e x pecte d t o b e ac q uir e d t hr o u g h l o n g- ter m c o ntr acts. A V C E will c o nti n ue t o pr oc ure re ne wa bles t hr o u g h s h ort-ter m c o ntr acts w he n o p p ort u nities prese nt t he msel ves f or c ost-efficie nt pr oc ure m e nt a n d w he n d oi n g s o w o ul d re d uce a n y re mai ni n g de pe n d e nc y o n s yste m p o wer.
Stre n gt he n t he diversity, s ust ai n a bility, a n d resili e nce of b ulk tr a ns missi o n a n d distri b uti o n syste ms, a n d l oc al c o m m u nities
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics t hat stre n gt he n t he di versit y, s ustai na bilit y a n d resilie nce of t h e b ul k tra ns missi o n a n d distri b uti o n s yste ms, as well as l ocal c o m m u nities, meeti n g Secti o n 4 5 4. 5 2(a)( 1) ( G). A V C E ’s 2 5 M M T P C P relies o n pr oc ure m e nt fr o m a v ariet y of res o urce t y pes as w ell as si g nifica nt st ora ge res o urces , i nc or p orate d i n h y bri d s olar a n d st ora g e c o nfi g ur ati o n. A V C E belie ves t hat t he c o m ple me ntar y
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nat ure of t he s olar a n d st ora ge i n h y bri d r es o urces ma kes better use of t he e xisti n g tra ns missi o n s yste m. A V C E car ef ull y e val uates t he l o n g t er m ge nerati o n l oa d- matc hi n g a n d c o n gesti o n ris ks of ne w r es o urces a n d w ei g hs its o pti o ns i n t he c o nte xt of its e xisti n g s u p pl y a n d net de ma n d o n a n h o url y basis f or t he f ull d urati o n of a n y c o ntract peri o d.
As descri be d b el o w, A V C E is acti vel y p urs ui n g t he pr oc ur e me nt of ca pacit y t o meet t he s u b cate g or y re q uire m e nts of D. 2 1- 0 6- 0 3 5, w hic h i ncl u des l o n g- d urati o n st ora g e, clea n fir m res o urces li ke ge ot her m al, a n d res o urces t o re place t he Dia bl o Ca n y o n P o wer Pla nt.
A d diti o nall y, A V C E has rece ntl y pr o c ure d d e ma n d res p o nse ca pacit y r es o urces, pr o vi di n g a d diti o nal s yste m di versit y.
De m a n d - Si de E n er gy M a n a ge me nt
A V C E ’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)( H) g oal of e n ha n ci n g de ma n d-si de e ner g y m a na ge m e nt. A V C E c o nti n ues t o e x pl ore a n d p urs u e de ma n d-si de ma na g e me nt pr o gra ms s uc h as d e ma n d res p o nse, e n er g y efficie n c y, a n d b e hi n d t he meter e n er g y st or a ge s ol uti o ns. As part of A V C E ’s pr oc ur e me nt t o war d D. 2 1- 0 6- 0 3 5, as disc usse d i n m ore detail i n Secti o n I V.a.ii., A V C E has c o ntracte d f or de ma n d res p o ns e res o ur ces t o meet a p orti o n of its re q uire me nts.
Mi ni mizi n g L oc alize d Air P oll ut a nts wit h E m p h asis o n D A Cs A V C E’s 2 5 M M T P C P ac hie ves r es ults a n d perf or ma nce c har acteristics c o nsiste nt wit h t he Secti o n 4 5 4. 5 2(a)( 1)(l) g oal of mi ni mizi n g l ocalize d air p oll uta nts a n d ot her G H G e missi o ns wit h earl y pri orit y o n disa d va nta ge d c o m m u nities. A V C E’s 2 5 M M T P C P relies pri maril y o n re ne w a ble ge n erati o n a n d h y dr oelectri c ge nerati o n, a n d t his p ortf oli o is e x pecte d t o e x hi bit relati vel y l o w G H Gs a n d l ocalize d air p oll uti o n e missi o ns. A V C E’s 2 5 M M T P C P mi ni mizes A V C E’s relia n ce o n u ns pecifie d s yste m p o wer, i nstea d o pti n g f or re n e wa ble a n d h y dr oelectric ge nerati o n pr o c ure m e nt/ de vel o p me nt w he n e ver f easi ble. Res ults fr o m t he C S P t o ol i n dicate t he f oll o wi n g l ocalize d air p oll uta nts ass ociate d wit h A V C E’s 2 5 M M T P C P i n 2 0 3 5:
N O x: 6 t o n nes/ year
P M 2. 5: 2 t o n nes / year
S O 2: 1 t o n nes/ year
T hese e missi o ns are e x pecte d t o res ult fr o m t he pl a n ne d use of s yste m e ner g y a n d bi o mass e ner g y i n t he 2 5 M M T P C P, as well as e missi o ns fr o m C o m bi ne d Heat a n d P o wer (“ C H P”) res o urces a n d s yste m e n er g y assi g ne d t o t he A V C E p ortf oli o b y t he C S P t o ol. I n e v al uati n g ne w use of bi o mass res o ur ces , A V C E will pri oritize t h ose l ocate d o utsi de of D A Cs t o t he greatest practical e xte nt.
c. G H G E missi o ns Res ults
A V C E use d its l oa d- base d pr o p orti o nal s hare of t he 3 0 a n d 2 5 M M T G H G B e nc h m ark t o deter mi ne t he e missi o ns c o m plia nce f or its 3 0 M M T P C P a n d its 2 5 M M T P C P. A V C E ’s assi g ne d l oa d pr o p orti o nal s hare of t h e 3 0 M M T be nc h mar k i n 2 0 3 0 is 0. 0 3 3 1 M M T a n d i n 2 0 3 5 is 0. 0 2 5 2 M M T . Base d o n t he 3 0 M M T versi o n of t he C S P calc ulat or, A V C E ’s 3 0 M M T P C P
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pr o gra m, w hic h gi ves resi de ntial c ust o mers wit h q ualifie d me dical de vi ces or c o n diti o ns a hi g her usa ge base at t he l o west r ate a vaila ble o n t h eir rat e sc he d ule.
A V C E c ust o mers o n C A R E a n d F E RA ca n als o q ual if y f or t he Arreara g e Ma na ge me nt Pla n (“ A M P”), w hi c h ma y f or gi ve 1/ 1 2t h of a c u st o mer’s o verall de bt f or eac h m o nt h a pa y me nt is ma de o n ti me.
Fi nall y, A V C E has a L o w -I nc o me H o me E ner g y Assista nce Pr o gra m ( “ LI H E A P”) , w hic h pr o vi des i nc o me- q ualifi e d h o use h ol ds wit h fi na ncial assista nce wit h t he g o al of meeti n g i m me diate heati n g or c o oli n g nee ds. LI H E A P assista nce ma y i ncl u de o n e ti me fi na ncial assista nce f or disc o n necti n g n otices or p ote ntiall y life-t hreate ni n g sit uati o ns li ke t he re place me nt of a c o m b usti ble a p plica ble a n d ot her e n er g y s u p p ort pr o gra ms. e. C ost a n d Rate A nal ysis
A V C E ’s 3 0 M M T a n d 2 5 M M T P C Ps are reas o n a ble fr o m a c ost pers pecti ve. I n s electi n g res o urces f or its p ortf oli os, A V C E car ef ull y c o nsi dere d t he c ost i m plicati o ns of s pecific res o ur ce selecti o ns a n d pr oc ure me nt ti mi n g. T his a nal ysis was i nf or me d b y A V C E ’s pr oc ure me nt e x perie n ce a n d t h e sta n d ar d ass u m pti o ns a n d res ults of t he C o m missi o n’s R E S O L V E/ S E R V M m o deli n g.
A V C E stri ves t o kee p c ust o mer c osts as l o w as p ossi ble. T his is reflecte d b ot h i n t he res o urces pr oc ure d a n d i n t he ti mi n g of t h ose pr oc ur e me nts. A V C E e m pl o ys ris k- ma n a ge me nt t hat c o nsi ders ris k ass oci ate d wit h u n der- pr o c ure me nt, as well as ris ks of p ote nt i al o ver pr o c ur e me nt w hic h c o ul d occ ur fr o m u nf oresee n c ha n g es i n l oa d g oi n g f or war d. Ris k ma na ge me nt als o i n v ol ves assessi n g t he c urre ntl y a vaila ble t ec h n ol o gies, e x pecte d t ec h n ol o gi cal de vel o p me nts, a n d p ote ntial f or r a dicall y differe nt tec h n ol o gies i n t he f ut ure. T he assess m e nt of p ote ntial res o urces is n ot strictl y o n price iss ues b ut i ncl u des i nf or mati o n o n h o w well t he res o urces m atc h t he s pecific n ee ds of A V C E’s c ust o mers’ l oa d. F or e xa m ple, s olar res o ur ces are ofte n t h e least e x pe nsi ve o n a si m ple c ost per M W h basis, b ut ot her res o urces w hic h ma y c ost m ore o n a si m ple M W h basis ma y pr o vi de a d diti o nal be nefits i n ter ms of R A ca pacit y, better matc hi n g A V C E’s l oa d pr ofile, or ser vi n g t he nee ds of t h e A p ple V alle y c o m m u nit y.
I n g e ner al, A V C E s o u g ht t o bala nce t he n ee d t o pr oc ure r es o urces wit h e n o u g h lea d ti me t o meet A V C E ’s L S E s pecifi c pr oc ure me nt s h ortf alls a n d t he C o m missi o n i de ntifie d o verall s yste m ne w res o urce nee ds wit h t he c ost-sa vi n g be nefits of w aiti n g t o pr oc ure re n e wa bl e a n d st ora g e res o urces wit h d o w n war d sl o pi n g c ost pr ojecti o ns. A V C E als o rec o g ni zes t hat f ut ure res o urce c osts are hi g hl y u ncertai n, a n d tec h n ol o gical a d va nce me nt ca n ha p pe n u n e x pecte dl y; A V C E ’s pr oc ure m e nt c ycle is desi g ne d t o ta ke a d v a nta ge of tec h n ol o gical a n d c ost i m pr o ve me nts b y i ncre me ntall y a d di n g ne w res o ur ce c o m mit me nts o ver ti me.
A V C E ’s P C Ps als o ta ke a d va nta ge of t he f act t hat, c o m pare d t o t he I O Us, C C As si g nifica ntl y s h orter ge nerati o n pr oject de vel o p me nt ti meli nes, i n part d ue t o t he fact t hat C C As d o n ot re q uire C o m missi o n a p pr o val of s uc h pr ojects. T hes e s h orter ti meli nes res ult i n si g nifica nt direct sa vi n gs a n d gi ve A V C E m ore fle xi bilit y t o ti me its pr oc ure me nt acti vities i n a wa y t hat ta kes a d va nta g e
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of falli n g re ne wa ble g e nerati o n prices or ot h er c ost-eff ecti ve pr o c ure m e nt o p p ort u nities t hat ma y arise o ver ti me.
A V C E c o nti n u o usl y m o nit ors t he e ner g y mar kets a n d reass es ses c urre nt m ar ket prices, e x pecte d f ut ure prices, tec h n ol o gical pr o gress, a n d its e x p ecte d nee ds. W h e n o p p ort u nities arise A V C E will ta ke a d va nta g e of t h e m.
A V C E ’s a nal ysis of t he price diff ere n ce b et wee n t he t w o P C Ps is base d o n t he 2 5 M M T p ortf oli o’s a d diti o nal 2 9 G W h of h y dr o res o ur ces. Usi n g o ur c urr e nt esti mate of $ 5 per M W h a d der f or t he G H G -fr ee e ner g y pr o vi de d b y h y dr o res o urces a n d es calati n g t his at 3 % f or 1 3 years u ntil 2 0 3 5 we esti mate t he 2 0 3 5 pre mi u m f or G H G-free at a p pr o xi matel y $ 7. 3 4 w hic h pr o vi des f or a n a d diti o nal c ost of t he 2 5 M M T P C P of $ 2 1 2, 8 6 0. Usi n g t he f orecaste d r etail l oa d of 2 7 7 G W h i n 2 0 3 5 t he i m pact o n rates of t he 2 5 M M T P C P w o ul d be a p pr o xi matel y . 0 7 7 ce nts per k W h.
f. S yste m Relia bilit y A nal ysis
B ot h A V C E ’s 30 M M T P C P a n d its 2 5 M M T P C P are e x pecte d t o be relia ble a n d will c o ntri b ute A V C E ’s fair s h are t o s yste m relia bilit y nee ds.
A V C E 3 0 M M T P C P
T he eff ecti ve ca pacit y of A V C E ’s 30 M M T P C P is pr o vi de d i n t he f oll o wi n g “ S yste m Relia bilit y Pr o gress Trac ki n g Ta ble” fr o m t he 3 0 M M T Res o urce D ata Te m plate das h b oar d ( n ote t hat t he r o w c o ntai ni n g pea k de ma n d is c o nfi de ntial a n d has bee n e x cl u de d fr o m t his ta ble).
T he net q ualif yi n g ca pacit y f or t he m o nt h of Se pte m ber is s h o w n f or eac h y ear i n t he f oll o wi n g ta ble:
As de m o nstrate d i n Ta bl e 1 1, A V C E ’s 3 0 M M T P C P c o ntri b utes 7 6 M W of pea k m o nt hl y N Q C i n 2 0 3 5. C o m bi ne d wit h A V C E’s all ocati o n of 3 M W of be hi n d-t he-meter P V, t his ma kes f or a n L S E t otal s u p pl y of 7 9 M W. As s h o w n i n t he ta ble a b o ve, t his N Q C meets A V C E ’s relia bilit y nee d . Of t his t otal, 1 7 M W are relat e d t o ne w r e n e wa ble a n d h y bri d res o ur ces as w ell as ne w s h ort- a n d l o n g- d ur ati o n st ora ge res o urces. A V C E ’s 3 0 M M T P C P i ncl u des pla n ne d c o ntracts wit h e xisti n g res o urces, w hic h are e x pecte d t o i ncl u de res o urces wit hi n t he e xisti n g nat ural gas ge nerat or fleet, f or a t otal of 5 5 M W of N Q C. T his bala nce d p ortf oli o of fle xi ble ca pacit y w or ks t o effecti vel y a n d relia bl y i nte grate a re ne wa bles- hea v y p ortf oli o, t h us e xcee di n g A V C E ’s s hare of a n y s yste m- wi de re ne wa ble i nte grati o n r es o urce re q uir e me nts.
A V C E 2 5 M M T P C P
T he eff ecti ve ca pacit y of V C E ’s 2 5 M M T P C P is pr o vi de d i n t he f oll o wi n g “ S yste m Relia bilit y Pr o gress Trac ki n g Ta ble” fr o m t he 2 5 M M T Res o urce D ata Te m plate das h b oar d ( n ote t hat t he r o w c o ntai ni n g pea k de ma n d is c o nfi de ntial a n d has bee n e x cl u de d fr o m t his ta ble).
T he net q ualif yi n g ca pacit y f or t he m o nt h of Se pte m ber is s h o w n f or eac h y ear i n t he f oll o wi n g ta ble:
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j. L o n g - Durati o n St ora ge Pla n ni n g
T he C o m missi o n’s P S P i ncl u de d 1, 0 0 0 M W of n e w l o n g- d urati o n st ora ge t o be o perati o nal b y 2 0 2 8. A V C E has be g u n disc ussi o ns wit h vari o us s u p pliers f or ca pacit y t o meet its D. 2 1- 0 6- 0 3 5 l o n g- d urati o n st ora ge r e q uire me nt of 1. 5 M W. T h ese disc ussi o ns are still i n t he i nitial sta ges, b ut A V C E is c o nfi de nt t hat it will be a ble t o pr oc ure l o n g d urati o n st ora g e wit h a c o m mercial o nli ne date o n or bef ore 2 0 2 8.
I n its P C Ps, A V C E has pla n ne d f or 1. 6 6 M W of l o n g- d urati o n batteries i n or der t o ac hie ve its D. 2 1- 0 6- 0 3 5 l o n g d urati o n st ora ge re q uire me nt 1 . 5 M W b y 2 0 2 6. A V C E pla ns t o pr oc ure a t otal of 8 M W l o n g- d urati o n st ora ge b y 2 0 3 5, e xcee di n g t he c urre nt r e q uir e me nt i n t he i nterest of a d di n g de pe n d a ble, cl ea n ca pacit y a n d re ne wa ble res o urce i nte gr ati o n ca pa bilit y. A V C E ’s e x perie n ce i n atte m pti n g t o pr oc ure l o n g- d urati o n st ora ge res o urces is t hat ver y fe w de vel o p ers are a bl e t o meet t he c urre nt de ma n d wit hi n ti mefra mes re q uire d b y D. 2 1- 0 6- 0 3 5, b ut A V C E belie ves t hat tec h n ol o gical a d va nce me nt a n d scale ma n ufact uri n g will e v e nt uall y pr o vi de o p p ort u nities f or great er use of l o n g- d urati o n st or a ge. As a d diti o nal tec h n ol o gies are mar k et pr o ve n a n d m or e de vel o p ers off er l o n g- d ur ati o n st ora ge, A V C E will c o nsi der f urt h er pr oc ure m e nt of t hese r es o urces. A V C E s ees t he p ossi bilit y f or s u bsta ntial be nefits fr o m l o n g d urati o n st ora ge t o t he gri d a n d f or ai di n g L S Es i n c o m plia nce wit h t he C o m missi o n’s Sli de- ofDa y ref or ms t o t he R A pr o gra m. k. Clea n Fir m P o wer Pla n ni n g
T h e C o m missi o n’s P S P i ncl u de d 1, 0 0 0 M W of “clea n fir m” p o w er b y 2 0 3 5, of w hic h A V C E ’s pr o p orti o nal s hare is 2. 0 5 M W . A V C E c urre ntl y pla ns t o pr oc ure 1. 6 M W of ne w ge ot her mal p o wer t o meet its D. 2 1- 0 6 - 0 3 5 re q uire m e nts. B y 2 0 3 5, A V C E e x pects 3 M W of ne w, clea n, fir m ge ot her mal ge n er ati o n i n its p ortf oli o. U nf ort u natel y, s u p pl y of ge ot her mal, a n d cl ea n fir m res o urces ge nerall y, is ver y li mite d i n Calif or nia, a n d t he c ost of ne w- b uil d res o urces is hi g h.
Clea n fir m e ner g y i m p orte d fr o m ot her b ala nci n g areas is c o m plicate d b y tr a ns missi o n a vaila bilit y a n d t he nee d t o o btai n e q ui vale nt Ma xi m u m I m p ort Ca pa bilit y (“ MI C”) t hr o u g h t h e C AI S O i n or d er t o utilize t he ca pacit y u n der t he res o urce a d e q uac y pr o gr a m. Des pite t hese c halle n ges t o t heir e x pa n de d use, clea n fir m r es o urces are i m p orta nt c o ntri b ut ors t o relia bilit y a n d offer o per ati o nal attri b utes t hat ca n n ot be r e plicate d b y c ur re nt-tec h n ol o g y st ora ge or ot her res o urce t y pes.
l. O ut - of-State Wi n d Pla n ni n g
T he C o m missi o n’s Preferre d S yste m Pla n calls f or o ver 4, 6 0 0 M W of ne w o ut - of-state wi n d ge nerati o n ( “ O O S Wi n d”) t o be de vel o pe d a n d o p erati o nal b y 2 0 3 5. A V C E’s pr o p orti o nal s hare of t his w o ul d be a p pr o xi matel y 8. 4 M W, a n d A V C E’s P C Ps i ncl u de 4. 3 M W of O O S Wi n d.
A V C E u n dersta n ds t hat t he tra ns missi o n pr ojects nee de d t o c o n n ect O O S Wi n d t o t he C AI S O gri d re q uire si g nifica nt lea d-ti mes; h o we ver, A V C E is c urre ntl y i n disc ussi o ns wit h O O S Wi n d de vel o pers t hat are als o b uil di n g a n d sec uri n g t he tra ns missi o n nee de d t o deli v er necess ar y wi n d e ner g y dir ectl y t o Calif or nia. T heref ore, A V C E has reflecte d O O S Wi n d i n b ot h of its p ortf oli os.
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m. Offs h ore Wi n d Pla n ni n g
T he C o m missi o n’s P S P calls f or 4, 7 0 4 M W of n e w offs h ore wi n d ge nerati o n t o be de vel o pe d a n d o perati o nal b y 2 0 3 5. A V C E’s pr o p orti o nal s h are of t his w o ul d be a p pr o xi matel y 8. 5 M W, a n d A V C E’s P C Ps i ncl u de 5. 7 M W of Offs h ore Wi n d. Si nce Calif or nia h as little e x perie nce wit h offs h ore wi n d de v el o p me nt, A V C E c o nser v ati vel y pla n ne d pr oc ur e me nt later i n t he pla n ni n g h oriz o n f or t his cate g or y, wit h a f oc us o n areas wit h e xisti n g tra ns missi o n ca pacit y i n t he Ce ntral C oast or c urr e nt pla ns t o de vel o p ca p acit y a n d i nfrastr u ct ure f or offs h or e wi n d (e. g., i n a n d ar o u n d M orr o B a y ). A d diti o nall y, t h o u g h e x pecte d t o pr o vi de b e nefits i n c o m paris o n t o e xisti n g wi n d res o urces, it is u nclear w hat e xact r es o urce a n d relia bilit y be n efits offs h ore wi n d ma y pr o vi de a n d at w h at c ost . T heref ore, A V C E h as pla n ne d c o ns er vati ve offs h ore wi n d pr oc ure m e nt i n b ot h of its p ortf oli os.
n. Tra ns missi o n Pla n ni n g
I n i de ntif yi n g r es o urce l o cati o ns f or all p ortf oli os, A V C E was g ui de d b y t he f oll o wi n g c o nsi derati o ns:
A V C E has a ge n eral pref ere nce f or res o ur ces l ocate d wit hi n its ser vice ar ea a n d t he c o m m u nit y it ser ves, b ut m ore ge nerall y, wit hi n S o ut her n Calif or nia.
A V C E pref ers pr ojects l ocate d i n ar eas t hat ca n utilize e xisti n g tra ns missi o n i nfrastr uct ur e wit h mi ni mal u p gra de/ m o dificati o n c osts.
A V C E pref ers l o w -i m pact re ne w a ble e n er g y pr oj ects t hat pr o vi de ec o n o mic be nefit t o D A Cs, s u bject t o c o m m u nit y i nterest i n siti n g pr ojects wit hi n s uc h l ocati o ns.
U nli ke t he I O Us, A V C E is n ot a tra ns missi o n a n d distri b uti o n (“ T & D”) s yste m o perat or. A V C E d oes n ot e nj o y t he be nefits of a gra n ular k n o wle d g e of S o ut her n Calif or nia E dis o n C o m pa n y’s (“ S C E”) T & D s yste m or t he C AI S O gri d, a n d A V C E is n ot i n t he best p ositi o n t o i de ntif y o pti mal res o urce l ocati o ns a n d d oes n ot ha ve t he e x pertise i n h o use t o deter mi ne t h e best l ocati o ns f or ne w res o ur ces. I n practice, A V C E relies o n pr oject de v el o pers t o c o n d uct t he researc h a n d t ec h nical st u dies necessar y f or siti n g p ote ntial ge nerati o n pr oj ects. A V C E e val uates pr oj ects off ere d b y de vel o pers b ase d o n a variet y of criteri a, i n cl u di n g tra ns missi o n a vaila bilit y, n o dal prices a n d p ote ntial f or c o n g esti o n, pr oject via bilit y, e n vir o n me ntal, w or kf or ce, a n d ot h er f act ors. As s uc h, A V C E ge n erall y utilize d t he P S P selecte d ca n di date res o urces as a g ui d e f or li kel y res o urce l ocati o ns i n its 30 M M T P C P a n d its 2 5 M M T P C P.
T hese s h o ul d be treate d as ge neral e x pect ati o ns base d o n t he af ore me nti o ne d c o nsi derati o ns, n ot defi niti ve selecti o ns – act ual pr oject l ocati o ns will be selecte d d uri n g A V C E ’s f ut ure s olicitati o n pr ocesses. A V C E beli e ves t hat t he best wa y t o kee p c osts d o w n d uri n g res o urce s olicitati o ns is t o n ot li mit t he p ote ntial l ocati o ns of t he res o ur ces. C o m petiti o n a m o n g t he res p o n ders t o r es o urce s olicitati o ns e ns ures t hat A V C E ca n a v ail itself of t he best p ossi ble res o urces, i ncl u di n g all o wi n g de vel o pers t o e x pl ore differe nt l ocati o ns a n d select w hat t he y feel is t he best l ocati o n f or t h eir res o ur ce ta ki n g i nt o acc o u nt n u mer o us f act ors, i ncl u di n g t he c osts of a n y p ote ntial tra ns missi o n u p gra des or c urtail me nt iss ues. Li ke m ost L S Es, A V C E d oes n’t ha ve t he necessar y res o urces t o e x a mi ne all p ossi ble res o urce l ocati o ns t o fi n d o pti mal o ne fr o m a tra ns missi o n pers pecti v e b ut relies o n t he de v el o pers of pr ojects d oi n g j ust t hat.
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As disc usse d i n pri or secti o ns, A V C E will re mai n fle xi ble wit h res pect t o i de ntif yi n g s pecific res o urces f or its s u p pl y p ortf oli o. If A V C E ’s e x p ecte d r es o urce l ocati o ns bec o me i nfeasi ble d ue t o vari o us c o nstrai nts, or if t he C o m missi o n’s m o deli n g eff orts ha p p e n t o i n dicate t hat certai n r es o urce l ocati o ns are n o l o n ger feasi ble/ desira ble, t he n A V C E w o ul d ulti matel y l ocate a n d c o ntract f or alter nati ve res o ur ces t hat f all i n preferre d l o cati o ns. A V C E als o re mai ns o pe n t o attracti ve pr oject o p p ort u nities , e ve n if t h ose l o cati o ns differ fr o m t he ass u m pti o ns use d i n t his pla n.
M ost of t he res o urces i n A V C E’s P C Ps are n ot e x pecte d t o re q uire tra ns missi o n u p gra des be y o n d t he sta n dar d i nter c o n necti o n pr ocess. T h os e res o ur ces i n A V C E’s P C P t hat mi g ht re q uire s u bsta ntial tra ns missi o n u p gra des or ne w tra ns missi o n li nes are ge nerall y pla n ne d f or m uc h later i n t he pla ns a n d A V C E e x pects t hat t h e de vel o pers will ha ve deter mi ne d t hat t he tra ns missi o n will be a vaila ble bef or e A V C E e nt ers i nt o agree me nts wit h t he m. T hese r es o urces i n t he A V C E P C Ps w o ul d i ncl u de t he O O S Wi n d a n d Offs h or e Wi n d. It is o b vi o us t hat b ot h offs h ore a n d o ut- of-stat e wi n d will re q uire a d diti o nal tra ns missi o n, a n d t his is a part of a n y disc ussi o n of t hese res o urces. I n a d diti o n, i n selecti n g t hese f ut ure r es o urces f or its p ortf oli os A V C E has c o nsi der e d tra ns missi o n a n d c h ose n pr ojects f or w hic h a n y tra ns missi o n c o ncer ns s h o ul d be mi ni mize d or alrea d y a d dresse d. A V C E’s c h oice of Ne w M e xic o Wi n d was ma de beca use of t he e xisti n g pla ns f or tra ns missi o n t o bri n g t hat e ner g y t o Calif or nia; A V C E’s c h oice of M orr o Ba y bas e d o n t he e xte nsi ve p ote ntial i de ntifie d f or t his res o urce area i n t he P S P.
I V. Acti o n Pla n
a. Pr o p ose d Pr oc ure me nt Acti vities a n d P ote ntial Barriers A V C E has a w ell -esta blis he d pr oc ur e me nt pr ocess t hat it uses a n d will c o nti n ue t o use t o stea dil y ac hie ve its P C P o ver t he c o mi n g years (i. e., b y 2 0 3 5 ). A V C E ’s pr oc ure me nt pr o cess i ncl u des t he f oll o wi n g ke y acti vities:
I d e ntificati o n of pla n n e d res o urces b y t y pe, desir e d o nli ne date, a n d ca pacit y.
Pla n ni n g f or pr oc ur e me nt acti vities i n c o nsi derati o n of A V C E ’s ris k ma na ge me nt p olic y; res o urce ac q uisiti o n lea d ti mes i ncl u di n g, w here a p plica ble, d e vel o p me nt ti meli nes; staff ca pacit y; a n d fi na ncial c o nsi derati o ns.
Desi g n a n d a d mi nistrati o n of res o ur ce s olicitati o ns, w hic h are ofte n c o n d u cte d wit h Cal C h oice . F or ne w res o urces, t hese t y picall y ta k e t he f or m of p eri o dic r e q uest f or offers pr ocess es, w hile f or e xisti n g res o urces, pr oc ure me nt acti vit y is m ore fre q ue nt a n d r o uti nize d.
Caref ul ne g otiati o n of c o ntract ter ms t o e ns ur e p ositi ve o utc o mes f or A V C E c ust o mers wit h a p pr o priate ris k miti gati o n.
O n g oi n g c o ntract ma n a g e me nt, i ncl u di n g w here a p plica ble, caref ul m o nit ori n g of de vel o p me nt milest o nes.
ge nerat or perf or ma nce after a r es o urce has ac hie v e d c o m merci al o perati o n date (“ C O D”).
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C o n d uct a n d partici pate i n j oi nt C C A s olicitati o n pr ocesses i n or d er t o e x p a n d pr oc ure m e nt o p p ort u nities a vaila ble t o A V C E . i. Res o urces t o meet D. 1 9 - 1 1- 0 1 6 pr oc ur e me nt re q uire me nts A V C E has met its D. 1 9 - 1 1- 0 1 6 pr oc ur e me nt re q uire me nts. F or tr a nc h es 1 a n d 2, A V C E met its re q uire me nts wit h t he f oll o wi n g res o urces: Cal pi ne S utter , Te hac ha pi Wi n d, a n d D ura n M esa.
Eac h of t hes e res o urces is c o ntracte d a n d alr ea d y o nli ne. T he D ura n M esa res o urce will pr o vi de a p orti o n of A V C E’s Tr a nc he 3 re q uire me nt ( A u g ust 2 0 2 3), a n d A V C E will satisf y its re mai ni n g Tra n c he 3 r e q uire me nt wit h a de ma n d res p o nse r es o urce, w hic h has alrea d y bee n c o ntracte d . At t his ti me, A V C E d oes n ot e x pect t here t o be a n y barriers t o meeti n g t hese re q uire me nts.
ii. Res o urces t o meet D. 2 1 - 0 6- 0 3 5 pr oc ur e me nt re q uire me nts, i ncl u di n g:
a. 1, 0 0 0 M W of fir m zer o- e mitti n g res o urce re q uir e me nts A V C E ’s re q uir e d p orti o n of fir m zer o-e mitti n g res o urces u n der D. 2 1- 0 6- 0 3 5 are 1. 5 M W . T o meet t his re q uire me nt, A V C E will be utilizi n g a ne w ge ot her m al res o ur ce l ocate d i n Or e g o n t hat is u n der c o ntract a n d i n de vel o p me nt. b. 1, 0 0 0 M W of l o n g- d urati o n st ora ge res o urce re q uire me nts A V C E ’s re q uir e d p orti o n of l o n g- d urati o n st ora ge res o urces u n der D. 2 1- 0 6- 0 3 5 are 1. 5 M W.
A V C E has n ot yet c o ntracte d wit h a res o urce t o m eet t his nee d a n d is c urre ntl y c o nsi deri n g a vaila ble o pti o ns t o fill t his re q uire me nt. At t his p oi nt, A V C E e x pects t hat batter y st ora ge will s u p pl y t his nee d, a n d A V C E is w or ki n g wit h p ote ntial c o u nter parties o n c o ntract ual ter ms t o e ns ure eli gi bilit y. A V C E h o pes t o fi nalize a c o ntract i n t he ne xt fe w m o nt hs. c. 2, 5 0 0 M W of zer o-e missi o ns ge nerati o n, ge n erati o n paire d wit h st ora ge, or de ma n d res p o ns e res o ur ce re q uir e me nts
A V C E ’s re q uir e d p orti o n of zer o-e missi o ns ge ner ati o n, ge nerati o n paire d wit h st ora ge, or de ma n d res p o ns e res o ur ces are 3 M W . A V C E will meet t hese r e q uire me nts wit h a de ma n d res p o nse c o ntr act t hat is c urre ntl y u n der ne g otiati o n a n d a pla n ne d s olar facilit y paire d wit h batter y st ora ge. W hile a s pecific pr oject f or t he l atter has n ot yet bee n i d e ntifie d, A V C E is acti vel y p urs ui n g o p p ort u nities a n d h o pes t o fi nalize a c o ntr act i n t he ne xt fe w m o nt hs. d. All ot her pr oc ur e me nt re q uire me nts
A V C E ’s o ver all D. 2 1- 0 6- 0 3 5 re q uire m e nts, e xcl u di n g t he pre vi o usl y disc usse d s u b- cate g or y re q uire me nts, are 1 0 M W. A V C E pla ns t o meet t hese nee ds wit h a v ariet y of res o ur ces i ncl u di n g: a ne w wi n d pr oject l ocate d i n N e w Me xic o t hat is alrea d y u n d er c o ntract a n d deli veri n g e ner g y; a ne w de ma n d res p o ns e res o ur ce alrea d y u n der c o ntract; t w o ne w 4- h o ur
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d urati o n batter y st ora g e c o ntracts t hat ar e u n der c o ntract a n d i n de v el o p me nt; a n d a ne w 4 - h o ur d urati o n batter y st ora g e c o ntract t hat is i n t he fi nal sta ges of ne g otiati o n. iii. Offs h ore wi n d
As me nti o ne d pre vi o usl y i n t his d oc u me nt, A V C E is pla n ni n g o n pr oc uri n g 6 M W of offs h or e wi n d, a n d p ote ntiall y a n ot her 1 0 M W of offs h ore wi n d if t he nee ds des cri b e d i n t he Hi g h Electrificati o n case materiali ze. A V C E is f oll o wi n g t he de vel o p me nt of t hese res o ur ces, b ut as t he leases f or t he offs h or e l ocati o ns ha ve n ot e v e n bee n iss ue d t hese res o ur ces re m ai n s o me w hat s pec ulati ve. A V C E will c o nti n ue t o m o nit or t he de vel o p me nt of t hese r es o urces a n d w he n t he y are offer e d t o L S Es e x pects t o partici pate i n t hat pr ocess. S h o ul d u nf ores ee n barriers arise, t here will be s ufficie nt lea d ti me f or A V C E t o a dj ust its p ortf oli os a n d c o ntract wit h ot her a p pr o priat e res o urces.
i v. O ut - of-state wi n d
A V C E’s e x pecte d pr o c ur e me nt of o ut- of- stat e wi n d res o urces is still se veral years o ut. A V C E is be gi n ni n g t o e xa mi ne p ote ntial res o urces a n d disc uss wit h de vel o pers. As e x plai ne d a b o ve, A V C E has i ncl u de d O O S wi n d res o urces i n its P C Ps. A V C E d oes n ot e x pect a n y barriers t o t he pr oc ure m e nt of t hese r es o urces b ut s h o ul d a n y arise t here r e mai ns s uffici e nt ti me f or A V C E t o a dj ust its p ortf oli o .
v. Ot her re n e wa bl e e ner g y n ot descri be d a b o v e As pre vi o usl y me nti o ne d, A V C E’s P C Ps are n ot set i n st o ne. A V C E c o nti n uall y m o nit ors t he re ne w a ble e n er g y s pace t hr o u g h R F Os a n d disc ussi o ns wit h de vel o pers, as well as m o nit ori n g vari o us ne ws r e p orts, a n d re g ulat or y pr o cee di n gs, A V C E is rea d y t o m o dif y its e x pecte d p ortf oli o if ne w res o urces or s pecific o p p ort u nities arise. A V C E stri ves t o be a ni m ble a n d a dapta ble e ner g y b u y er i n or der t o off er its c ust o mers t he l o west c ost p o w er. vi. Ot her e ner g y st ora g e n ot descri be d a b o ve A V C E e x pects t hat e x ce pt f or t he l o n g- d urati o n st ora ge r e q uire d u n der D. 2 1- 0 6- 0 3 5, t he st ora ge it will ac q uire will be part of h y bri d r es o ur ces ass ociat e d wit h s olar res o urces. A V C E re mai ns o pe n t o c o nsi deri n g ot her p ossi bilities, es peciall y if ne w st or a ge tec h n ol o gies arise t hat re d uce t h e c osts of st ora g e or sit uati o ns arise w her e st ora ge ca n hel p f ulfill ot her nee ds, s u c h as re d uci n g t he nee d f or n e w tra ns missi o n or distri b uti o n. A V C E will c o nti n ue t o m o nit or de vel o p me nts i n t he e ner g y st ora ge mar k ets a n d a dj ust its p ortf oli o if a d va nta ge o us o p p ort u nities arise.
vii. Ot her de ma n d res p o nse n ot descri be d a b o v e A V C E has alrea d y c o ntr acte d f or a m o dest a m o u nt of de ma n d res p o ns e res o urces. A V C E re mai ns o pe n t o ot her o p p ort u nities s h o ul d t he y arise, a n d c o nsiste nt wit h t he c urr e nt ma xi m u m c u m ulati ve ca pacit y (“ M C C”) b uc ket re q uir e me nts.
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viii. Ot her e ner g y efficie n c y n ot descri be d a b o v e A V C E d oes n ot c urr e ntl y ha ve a n y e ner g y effici e n c y i n vest me nt pla ns b ut ma y c o nsi der t hese pr o p osals i n t he f ut ure.
i x. Ot her distri b ute d ge nerati o n n ot descri be d a b o v e A V C E ’s Resi de ntial S olar Re bate Pr o gr a m offers a n i nce nti ve of a o ne-ti m e $ 5 0 0. 00 re b ate t o a n y resi de ntial A V C E c ust o mer w h o i nstalls a ne w s olar s yste m or e x p a n ds a n e xisti n g s olar s yste m. I n 2 0 2 2, A V C E be ga n i ncl u di n g Batter y St ora ge t o be eli gi ble f or re bates. x. Tra ns p ortati o n electrificati o n, i ncl u di n g a n y i n vest me nts a b o ve a n d be y o n d w hat is i ncl u de d i n I nte gr ate d E ner g y P olic y Re p ort (I E P R) A V C E d oes n ot c urr e ntl y ha ve a n y tr a ns p ortati o n electrificati o n i n vest me nt pla ns b ut ma y c o nsi der t hese pr o p osals i n t he f ut ure.
xi. B uil di n g electrificati o n, i ncl u di n g a n y i n vest me nts a b o ve a n d b e y o n d w hat is i ncl u de d i n I nt e grat e d E n er g y P olic y Re p ort (I E P R) A V C E d oes n ot c urr e ntl y ha ve a n y b uil di n g electrificati o n i n vest me nt pla ns b ut ma y c o nsi der t hese pr o p osals i n t he f ut ure.
xii. Ot her
A V C E c o nti n u o usl y e x pl ores ne w met h o ds of l o w eri n g electricit y de ma n d a n d i ncreasi n g clea n e ner g y s u p pl y. F or e x a m ple, A V C E is e x pl ori n g a p ote ntial micr o gri d pr oject t o de pl o y s olar a n d st ora ge s yste ms t o A V C E critical facilities. T his pr o gra m is m o dele d after a micr o gri d pr oject rece ntl y c o m plete d i n O ntari o. Ot her p ote ntial pr ojects i ncl u de aff or da ble h o usi n g micr o gri d i nstallati o ns.
b. Disa d va nta ge d C o m m u nities
A V C E is c o m mitte d t o c o nsi deri n g t he i m pacts of its res o urce pla n ni n g a n d pr oc ure m e nt acti vities o n disa d va nta g e d c o m m u nities. W hile n o s pecific o utreac h acti vities ha ve bee n c o m plete d t o date – t hat is, s oliciti n g direct i n p ut fr o m disa d va nta ge d c o m m u nities l ocate d wit hi n g A V C E ’s ser vice territ or y, or be y o n d – A V C E will c o nsi der t he staff r es o urces a n d ti me c o m mit me nts t hat w o ul d be nee d e d t o eff ecti vel y gat her f ee d bac k fr o m t hese c o nstit ue nts f or p ur p oses of e v al uati n g a n d, p ote ntiall y, a da pti n g f ut ure res o urce pl a n ni n g a n d pr oc ur e me nt decisi o ns. T he sc he d ul e f or s uc h acti vities will be de vel o pe d after e val uati n g t he staffi n g res o urces best s uite d t o partici pate i n s uc h o utr eac h a n d/ or a n y o utsi de res o urces t hat ma y b e necessar y t o cr e di bl y a n d c o m pete ntl y gat her a n d e val uate f ee d b ac k c o m pil e d t hr o u g h t his pr ocess. I n a d diti o n t o i de ntif yi n g necessar y staff res o urces a n d/ or o utsi de s u p p ort relate d t o t his pr ocess, A V C E will als o deter mi ne a s uita ble fra me w or k f or g at heri n g fee d bac k fr o m disa d va nta ge d c o m m u nities, i ncl u di n g a n assess me nt of l o gistics (f or e x a m ple, c o m pleti o n of a n i n- pers o n w or ks h o p v ers us a n ot her m et h o d of f ee d bac k gat heri n g) a n d p ote ntial
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c o m m u nicati o n re q uire m e nts ( n ota bl y, w het her m aterials a n d/ or prese nters will nee d t o acc o m m o date m ulti p le la n g ua ges, etc.). W he n s u c h fee d b ac k is gat h ere d, A V C E will deter mi ne w het her e xisti n g pla n ni n g a n d pr oc ur e me nt pr ocesses are s ufficie ntl y res p o nsi ve t o t he c o ncer ns a n d pri orities e x pr esse d b y me m bers of partici pati n g disa d va nta ge d c o m m u nities d uri n g t his o utreac h e xer cise. If e xisti n g pr ocesses satisfact oril y a d dress n ote d c o n cer ns a n d pref ere n ces, A V C E ma y lea ve its c urr e nt pla n ni n g a n d pr oc ure me nt pr ocesses as-is. If, h o we ver, t here are n ote w ort h y ga ps or o v ersi g hts t hat are hi g hli g hte d d uri n g f ut ure o utreac h eff orts, pr oce d ural a da ptati o ns will be i nc or p orate d i n t he f ut ur e. T his pr ocess will ta ke s o me ti me t o a d mi nister, a n d A V C E a ntici pates c o m pleti n g it pri or t o Calif or nia’s ne xt I nte grate d R es o urce Pla n ni n g pr ocess i n 2 0 2 4 – A V C E will, of c o urse, hi g hli g ht a n y fee d b ac k g at her e d d uri n g t he af ore m e nti o ne d o utreac h pr ocess as w ell as a n y a d a ptati o ns t o its res o urce pla n ni n g a n d pr oc ure m e nt pr ocess at t hat ti me.
F or n o w, A V C E has a d o pte d bi d selecti o n pr ot oc ols a n d e val uati ve criteri a t hat will be a p plie d w he n a d mi nisteri n g s olicitati o ns i nte n de d t o facilitate t he ac hie v e me nt of f ut ure re n e wa ble e ner g y a n d ot h er p ortf oli o nee ds. S uc h selecti o ns pr ot oc ols are o utli ne d i n A V C E ’s m ost rece nt U p date d Dr aft 2 0 2 2 Re n e wa bles P ortf oli o Pr oc ur e me nt Pla n, as rece ntl y s u b mitte d t o t he C o m missi o n o n A u g ust 1 5, 2 0 2 2. I n t his d oc u me nt, A V C E i n dicates t hat it will gat her i nf or mati o n re gar di n g t he f oll o wi n g i m p orta nt c o nsi derati o ns, a m o n gst ot hers, w he n e val uati n g a n y offers f or re ne wa ble e ner g y r es o urces t hat ma y be nee d e d t o meet Calif or nia’s R P S pr oc ure m e nt ma n date:
E n vir o n me ntal i m pacts a n d relate d miti gati o n re q uire me nts, i ncl u di n g i m pacts t o air p oll uti o n wit hi n c o m m u nities t hat ha ve bee n dis pr o p orti o natel y i m pacte d b y t he e xisti n g ge nerati n g fl eet; a n d
P ote ntial ec o n o mic be nefits create d wit hi n c o m m u nities wit h hi g h le vels of p o vert y a n d u ne m pl o y me nt.
Gat heri n g i nf or mati o n i n t hese ar eas will pr o vi de A V C E wit h val ua ble i nsi g ht w he n deter mi ni n g w het her cert ai n pr ojects ma y f urt her i m pact or alle viate i m pacts wit hi n disa d va nta ge d c o m m u nities, w hic h ofte n r eflect t he c har acteristics i de ntifie d i n t he af ore m e nti o ne d criteri a b ut will als o pr o vi de f or br oa der c o nsi der ati o n of t he T o w n’s r es o urce pla n ni n g a n d pr oc ur e me nt decisi o ns o n se nsiti ve c o m m u nities. I n a d diti o n, A V C E has i n dicate d t hat it will c o nsi der t he i ncl usi o n of e val uati ve pref ere n ce f or “re ne wa ble e ner g y pr ojects t hat pr o vi de e n vir o n me ntal a n d ec o n o mic be nefits t o c o m m u nities afflicte d wit h p o vert y or hi g h u ne m pl o y me nt, or t hat s uffer fr o m hi g h e missi o n le vels of t o xic air c o nta mi na nts, criteria air p oll uta nts, a n d gree n h o use gases,” p urs ua nt t o P u blic Utilities C o de 3 9 9. 1 3(a)( 8)( A). T o t he e xte nt t hat t he T o w n pr oc ures R P S res o urces t hr o u g h s olicitati o ns w here q u alitati ve fact ors are c o nsi d ere d, t he i m pact o n disa d va nta ge d c o m m u nities will be e val uate d i n r elati o n t o t hese bi d a n d e v al uati o n pr ot oc ols.
Necess ar y i nf or m ati o n will be gat here d b y r e q uiri n g pr os pecti ve s u p pliers t o a ns wer t he f oll o wi n g q uesti o ns: Is y o ur facilit y l ocate d i n a c o m m u nit y afflicte d wit h p o vert y or hi g h u ne m pl o y me nt or t hat s uffers fr o m hi g h e missi o n le vels? If s o, t he p artici p a nt will be e nc o ura g e d t o descri be h o w its pr o p ose d facilit y ca n pr o vi de t he f oll o wi n g be nefits t o a djace nt c o m m u nities:
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Pr ojecte d hires fr o m a d jace nt c o m m u nit y ( n u m ber a n d t y pe of j o bs).
D urati o n of w or k ( d uri n g c o nstr ucti o n a n d o per ati o n p hases ).
Pr ojecte d direct a n d i n dir ect ec o n o mic b e nefits t o t he l ocal ec o n o m y (i. e., p a yr oll, ta xes, ser vices).
E missi o ns re d ucti o n – i de ntif y e xisti n g ge nerati o n s o urces b y f u el s o urce wit hi n 6 miles of pr o p ose d f acilit y a n d i n dicate w het h er t he pr o p ose d facilit y will re place/s u p pla nt t he i de ntifie d ge ner ati o n s o urces; a n d
T o t he e xte nt t hat t he pr o p ose d ge ner ati n g facilit y is e x pecte d t o r e place/s u p pla nt a n e xisti n g ge nerati n g facilit y, t he pr os pecti ve s u p plier will be as ke d t o q ua ntif y t he ass ociate d e missi o n i m pacts of t his tra nsiti o n.
Certai n of t hese c o nsi der ati o ns were i nc or p orat e d d uri n g t he a d mi nistrati o n of A V C E ’s m ost rece nt s olicitati o n f or l o n g-ter m re n e wa ble e ner g y s u p pl y; ot hers will be reflecte d i n f ut ur e s olicitati o ns. Base d o n t he s uccess of its o n g oi n g s olicitati o n pr ocess(es), t he T o w n ma y a d a pt t hese c o nsi der ati o ns o ver ti me, mai ntai ni n g a ware ness of t he i m pacts of its res o urce pla n ni n g a n d pr oc ur e me nt pr ocess o n disa d va nta ge d c o m m u nities.
T o ac hie ve ( or f all bel o w) its prescri be d e missi o n tar gets, A V C E clearl y m ust a da pt its p ortf oli o pla n ni n g tar gets t o e ns ur e t hat s ufficie nt q ua ntities of clea n e ner g y are pr o c ure d o ver ti me.
W he n ma na gi n g t hes e tra nsiti o ns, A V C E will be c o nsi derate of t he i m pacts o n disa d va nta ge d c o m m u nities b y ta ki n g t he ste ps o utli ne d a b o ve, i n cl u di n g t he c o m pleti o n of o utreac h wit hi n disa d va nta ge d c o m m u nities a n d o bser v a nce of t he af ore m e nti o ne d bi d pr ot oc ols. A V C E l o o ks f or war d t o u p dati n g t he C o m missi o n o n t he s uccess of t hese eff orts d uri n g t he Calif or nia’s I R P c ycle.
c. C o m missi o n Directi o n of Acti o ns
A V C E e nc o ur a ges t he C o m missi o n t o a d o pt d ura ble r ules a n d pr o cesses t o bri n g greater sta bilit y t o t he re g ulat or y fra me w or k wit hi n w hic h A V C E a n d ot her s u p pliers m ust pla n a n d o perate. Fr e q ue nt r ule c h a n ges disr u pt A V C E ’s a bilit y t o e xec ute l o n g ter m pla n ni n g acti vities a n d a d o pte d pla n ni n g el e me nts w hile mi ni mizi n g c ust o mer c osts. S uc h re g ulat or y c ha n ges ca n als o res ult i n dis pr o p orti o natel y hi g h c osts a n d a d mi nistrati ve b ur de ns, w hic h w o ul d pr o m pt relate d c ust o mer rate i n cr eases – certai n r e g ulat or y c ha n ges ma y n ecessitate d u plicati ve pr oc ure m e nt eff orts a n d/ or stra n de d i n vest me nts t hat are e x pect e d t o i m pact a lar ger p orti o n of A V C E ’s p ortf oli o.
F or e x a m ple, t he C o m missi o n is c urre ntl y c o nsi deri n g a pr o gra m matic a p pr oac h t o t he I R P, a Slice - of- Da y R es o urce A de q uac y Pr o gr a m, a n d r ece ntl y i m ple me nte d t he Ce ntral Pr oc ure m e nt E ntit y str uct ure. Eac h of t hese c ha n g es o n t heir o w n re pr ese nts si g nifica nt re g ulat or y u ncertai nt y, w hic h lea ds t o mar ket u ncertai nt y. T hese c ha n g es t o get her re pr ese nt a c o m ple x, w h olesale c h a n ge t o t he r e g ulat or y la n dsca pe, w hi c h L S Es ca n n ot reas o na bl y acc o u nt f or i n pla n ni n g.
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V. Less o ns Lear ne d
A V C E rec o g ni zes t he i m pr o ve me nts ma de t o t he data te m plates rel ati ve t o t he 2 0 2 0 pla n ni n g c ycle, i ncl u di n g c o ns oli d ati o n of t he ne w a n d b aseli ne te m plates a n d e n ha n ce me nts t o better ca pt ure t he f ull ra n ge of r es o urces i n L S E e xisti n g a n d pla n ne d p ortf oli os. A V C E belie ves t hat a d diti o nal i m pr o ve me nts i n t he data te m plates ca n be ma de, a n d A V C E l o o ks f or war d t o f urt her disc ussi o ns wit h E ner g y Di visi o n staff i n t his re gar d. A V C E ’s e x p erie nce c o m pleti n g t he Res o urce D ata Te m plat e a n d t he Clea n S yste m P o wer t o ols lea ds t o t he f oll o wi n g o bser vati o ns a n d s u g gesti o ns:
T he C o m missi o n s h o ul d re mai n mi n df ul t hat t he i m plie d precisi o n of b ot h relia bilit y a nal ysis a n d C S P calc ulat or are ill usi o nar y, es p eci all y f or years t o war ds t he e n d of peri o d.
T he usef ul ness of t his e x ercise f or peri o ds o v er 5 years o ut is q uesti o na ble. It is u nclear h o w m uc h a d diti o nal i nf or mati o n is gai ne d be y o n d w hat t he C o m missi o n’s o w n R E S O L V E a n d S E R V M a nal ysis pr o vi de, si nce L S Es ge nerall y c h o ose res o urces bas e d o n t he res ults of t hat a nal ysis. L S E’s pr oc ure me nt decisi o ns are d eter mi ne d b y w hat is offer e d t o t he m w he n t he y ha ve a n ee d f or res o urces. As ki n g t he m t o c o nsi der h o w t he y e x pect t o meet t h ose n ee ds i n t he f ut ure is fi ne, b ut t he p ur p ose of t he eff ort s h o ul d be e ns uri n g t hat t he L S Es ar e at least c o nsi deri n g t his, n ot re q uiri n g t he m t o cr eate a s pecific f a ntas y t hat will li kel y ne ver materi alize.
T here is c o nsi dera ble ti m e re q uir e d/s pe nt t o c o m plete necessar y te m plat es, a n d t his re mai ns a c o n cer n f or A V C E a n d ot her L S Es. W hile A V C E a p preciates eff orts i n rece nt years t o si m plif y t he I R P te m plates, t he narr ati ve t e m plate has o nl y bec o m e m ore b ur de ns o me. A d diti o nall y, A V C E re q uests t hat E ner g y Di visi o n staff c o nsi der w het her all re q ueste d d ata is necessar y/criticall y i m p orta nt t o t he I R P pr ocess, a n d if n ot, A V C E res pectf ull y r e q uests t hat a n y/all n o n-critical dat a re q uire me nts be eli mi nate d fr o m f ut ure pr ocesses. F or e x a m ple, re q uesti n g t he s u bstati o n f or p ote ntial res o urces t hat ma y be use d t o meet a d diti o nal l oa d ma n y years i n t he f ut ure see ms t o be as ki n g t he u n k n o wa ble. S uc h pr o c ure me nt is li kel y m ore te n or m ore years a w a y a n d i n t he i nter ve ni n g ti me, t he re n e wa ble e ner g y mar ket a n d p ote ntiall y t he tra ns missi o n gri d will li kel y ha ve e v ol ve d i n si g nifica nt u nf ores ee n w a ys. At t his p oi nt, m ost L S Es ca n n ot be s o s pecific i n t heir pr o c ur e me nt pla ns a n d r e q uiri n g s uc h a le vel of s p ecificit y d oes n ot a d d a n yt hi n g t o t his pr ocess. A V C E als o f o u n d t h at t he directi o ns a n d g ui d a nce pr o vi d e d b y t he C o m missi o n a n d staff f or t his I R P c ycle, w hile i m pr o ve d o ver pri or years, still lac ks clarit y a n d c o nsiste nc y i n certai n k e y res p ects. A gai n, A V C E rec o g nizes t hat t he I R P pr ocess is e v ol vi n g, b ut t here is r o o m f or i m pr o ve me nt i n pr o vi di n g cl ear a n d c o nsiste nt i nstr ucti o ns i n a ti mel y ma n ner.
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Gl o ss ar y of T er ms
Alt er n ati v e P ortf oli o: L S Es ar e p er mitt e d t o s u b mit “ Alt er n at ive P ortf oli os” d ev el o p e d fr o m sc e n ari os usi n g diff er e nt ass u m pti o ns fr o m t h os e us e d i n t h e Pr ef err e d S yst e m Pl a n wit h u p d at es. A ny d evi ati o ns fr o m t h e “ C o nf or mi n g P ortf oli o” m ust b e ex pl ai n e d a n d j ustifi e d.
A p pr o v e ( Pl a n) : t h e C P U C’s o bli g ati o n t o a p pr ov e a n LS E’s i nt e gr at e d r es o urc e pl a n d eriv es fr o m P u blic Utiliti es C o d e S ecti o n 4 5 4. 5 2( b)( 2) a n d t h e pr oc ur e m e nt pl a n ni n g pr oc ess d escri b e d i n P u blic Utiliti es C o d e S ecti o n 4 5 4. 5, i n a d diti o n t o t h e C P U C o bli g ati o n t o e ns ur e s af e a n d r eli a bl e s er vic e at j ust a n d r e as o n a bl e r at es u n d er P u blic Utiliti es C o d e S ecti o n 4 5 1.
B al a nci n g A ut h orit y Ar e a ( C AI S O): h e c oll ecti o n of g e n er ati o n, tr a ns missi o n, a n d l o a ds wit hi n t h e m e t er e d b o u n d ari es of t h e B al a nci n g A ut h ority. T h e B al a nci n g A ut h ority m ai nt ai ns l o a d r es o urc e b al a nc e wit hi n t his ar e a.
B as eli n e r es o urc es: h os e r es o urc es ass u m e d t o b e fix e d as a c a p acity ex p a nsi o n m o d el i n p ut, as o p p os e d t o C a n di d at e r es o urc es, w hic h ar e s el ect e d by t h e m o d el a n d ar e i ncr e m e nt al t o t h e B as eli n e.
B as eli n e r es o urc es ar e existi n g ( alr e a dy o nli n e) or o w n e d or c o ntr act e d t o c o m e o nli n e wit hi n t h e pl a n ni n g h oriz o n. Existi n g r es o urc es wit h a n n o u nc e d r etir e m e nts ar e excl u d e d fr o m t h e B as eli n e f o r t h e a p plic a bl e y e ars. B ei n g “c o ntr act e d” r ef ers t o a r es o urc e h ol di n g si g n e d c o ntr act/s wit h a n L S E/s f or m uc h of its e n er gy a n d c a p acity, as a p plic a bl e, f or a si g nific a nt p orti o n of its us ef ul lif e. T h e c o ntr acts r ef er t o t h os e a p pr ov e d by t h e C P U C a n d/ or t h e L S E’s g ov er ni n g b o ar d, as a p plic a bl e. T h es e crit eri a i n dic at e t h e r es o urc e is r el ativ ely c ert ai n t o c o m e o nli n e. B as eli n e r es o urc es t h at ar e n ot o nli n e at t h e ti m e of m o d eli n g m ay h av e a f ail ur e r at e a p pli e d t o t h eir n a m e pl at e c a p acity t o all o w f or t h e ris k of t h e m f aili n g t o c o m e o nli n e.
C a n di d at e r es o urc e: t h os e r es o urc es, s uc h as r e n e w a bl es, e n er gy st or a g e, n at ur al g as g e n er ati o n, a n d d e m a n d r es p o ns e, av ail a bl e f or s el ecti o n i n I R P c a p acity ex p a nsi o n m o d eli n g, i ncr e m e nt al t o t h e B as eli n e r es o urc es.
C a p acit y E x p a nsi o n M o d el: a c a p acity ex p a nsi o n m o d el is a c o m p ut er m o d el t h at si m ul at es g e n er ati o n a n d tr a ns missi o n i nv est m e nt t o m e et f or ec ast el ectric l o a d ov er m a ny y e ars, us u ally wit h t h e o bj ectiv e of mi ni mizi n g t h e t ot al c ost of o w ni n g a n d o p er ati n g t h e el ectric al syst e m. C a p acity ex p a nsi o n m o d els c a n als o b e c o nfi g ur e d t o o nly all o w s ol uti o ns t h at m e et s p ecific r e q uir e m e nts, s uc h as pr ovi di n g a mi ni m u m a m o u nt of c a p acity t o e ns ur e t h e r eli a bility of t h e syst e m or m ai nt ai ni n g gr e e n h o us e g as e missi o ns b el o w a n est a blis h e d l ev el.
C ertif y ( a C o m m u nit y C h oic e A g gr e g at or Pl a n) : P u blic Utiliti es C o d e 4 5 4. 5 2( b)( 3) r e q uir es t h e C P U C t o c ertify t h e i nt e gr at e d r es o urc e pl a ns of C C As. “ C ertify” r e q uir es a f or m al act of t h e C o m missi o n t o d et er mi n e t h at t h e C C A’s Pl a n c o m pli es wit h t h e r e q uir e m e nts of t h e st at ut e a n d t h e pr oc ess est a blis h e d vi a P u blic Utiliti es C o d e 4 5 4. 5 1( a). I n a d diti o n, t h e C o m missi o n m ust r evi e w t h e C C A Pl a ns t o d et er mi n e a ny p ot e nti al i m p acts o n p u blic utility b u n dl e d c ust o m ers u n d er P u blic Utiliti es C o d e S ecti o ns 4 5 1 a n d 4 5 4, a m o n g ot h ers.
Cl e a n S yst e m P o w er ( C S P) m et h o d ol o g y: t h e m et h o d ol o gy us e d t o esti m at e G H G, a n d crit eri a p oll ut a nt e missi o ns ass oci at e d wit h a n L S E’s P ortf oli o b as e d o n h o w t h e L S E will ex p ect t o r ely o n syst e m p o w er o n a n h o urly b asis.
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C o m m u nit y C h oic e A g gr e g at or : a g ov er n m e nt al e ntity f or m e d by a city or c o u nty t o pr oc ur e el ectricity f or its r esi d e nts, b usi n ess es, a n d m u nici p al f aciliti es.
C o nf or mi n g P ortf oli o : t h e L S E p ortf oli o t h at c o nf or ms t o I R P Pl a n ni n g St a n d ar ds, t h e 2 0 3 0 L S E s p ecific G H G E missi o ns B e nc h m ar k, us e of t h e LS E’s assi g n e d l o a d f or ec ast, us e of i n p uts a n d ass u m pti o ns m atc hi n g t h os e us e d i n d ev el o pi n g t h e R ef er e nc e S yst e m P ortf oli o, as w ell as ot h er I R P r e q uir e m e nts i ncl u di n g t h e fili n g of a c o m pl et e N arr ativ e T e m pl at e, a R es o urc e D at a T e m pl at e a n d Cl e a n S yst e m P o w er C alc ul at or .
Eff ecti v e L o a d C arr yi n g C a p acit y : a p erc e nt a g e t h at ex pr ess es h o w w ell a r es o urc e is a bl e av oi d l oss of l o a d ev e nts (c o nsi d eri n g av ail a bility a n d us e li mit ati o ns). T h e p erc e nt a g e is r el ativ e t o a r ef er e nc e r es o urc e, f or ex a m pl e a r es o urc e t h at is al w ays av ail a bl e wit h n o us e li mit ati o ns. It is c alc ul at e d vi a pr o b a bilistic r eli a bility m o d eli n g a n d yi el ds a si n gl e p erc e nt a g e v al u e f or a giv e n r es o urc e or gr o u pi n g of r es o urc es.
Eff ecti v e M e g a w atts ( M W): p erf ect c a p acity e q uiv al e nt M W, s uc h as t h e M W c alc ul at e d by a p plyi n g a n EL C C % m ulti pli er t o n a m e pl at e M W.
El ectric S er vic e Pr o vi d er : a n e ntity t h at off ers el ectric s er vic e t o a r et ail or e n d us e c ust o m er, b ut w hic h d o es n ot f all wit hi n t h e d efi niti o n of a n el ectric al c or p or ati o n u n d er P u blic Utiliti es C o d e S ecti o n 2 1 8.
Fili n g E ntit y : a n e ntity r e q uir e d by st at ut e t o fil e a n i nt e gr at e d r es o urc e pl a n wit h C P U C.
F ut ur e : a s et of ass u m pti o ns a b o ut f ut ur e c o n diti o ns, s uc h as l o a d or g as pric es.
G H G B e nc h m ar k ( or L S E s p ecific 2 0 3 0 G H G B e nc h m ar k): t h e m ass b as e d G H G e missi o n pl a n ni n g t ar g ets c alc ul at e d by st aff f or e ac h LS E b as e d o n t h e m et h o d ol o gy est a blis h e d by t h e C alif or ni a Air R es o urc es B o ar d a n d r e q uir e d f or us e i n LS E P ortf oli o d ev el o p m e nt i n I R P.
G H G Pl a n ni n g Pric e: t h e syst e m wi d e m ar gi n al G H G a b at e m e nt c ost ass oci at e d wit h ac hi evi n g a s p ecific el ectric s ect or 2 0 3 0 G H G pl a n ni n g t ar g et.
I nt e gr at e d R es o urc es Pl a n ni n g St a n d ar ds ( Pl a n ni n g St a n d ar ds): t h e s et of C P U C I R P r ul es, g ui d eli n es, f or m ul as a n d m etrics t h at LS Es m ust i ncl u d e i n t h eir LS E Pl a ns.
I nt e gr at e d R es o urc e Pl a n ni n g (I R P) pr oc ess: i nt e gr at e d r es o urc e pl a n ni n g pr oc ess; t h e r e p e ati n g cycl e t hr o u g h w hic h i nt e gr at e d r es o urc e pl a ns ar e pr e p ar e d, s u b mitt e d, a n d r evi e w e d by t h e C P U C L o n g t er m: m or e t h a n 5 y e ars u nl ess ot h er wis e s p ecifi e d.
L o a d S er vi n g E ntit y: a n el ectric al c or p or ati o n, el ectric s er vic e pr ovi d er, c o m m u nity c h oic e a g gr e g at or, or el ectric c o o p er ativ e.
L o a d S er vi n g E ntit y (L S E) Pl a n : a n LS E’s i nt e gr at e d r es o urc e pl a n; t h e f ull s et of d oc u m e nts a n d i nf or m ati o n s u b mitt e d by a n L S E t o t h e C P U C as p art of t h e I R P pr oc ess.
L o a d S er vi n g E ntit y (L S E) P ortf oli o : a s et of s u p ply- a n d/ or d e m a n d si d e r es o urc es wit h c ert ai n attri b ut es t h at t o g et h er s erv e t h e L S E’s assi g n e d l o a d ov er t h e I R P pl a n ni n g h ori z o n.
L oss of L o a d E x p ect ati o n (L OL E): a m etric t h at q u a ntifi es t h e ex p ect e d fr e q u e ncy of l oss of l o a d ev e nts p er y e ar. L oss of l o a d is a ny i nst a nc e w h er e av ail a bl e g e n er ati n g c a p acity is i ns uffici e nt t o s er v e el ectric d e m a n d. If o n e or m or e i nst a nc es of l oss of l o a d occ urri n g wit hi n t h e s a m e d ay r e g ar dl ess of d ur ati o n
4 5
ar e c o u nt e d as o n e l oss of l o a d ev e nt, t h e n t h e L OL E m etric c a n b e c o m p ar e d t o a r ef er e nc e p oi nt s uc h as t h e i n d ustr y pr o b a bilistic r eli a bility st a n d ar d of “ o n e ex p ect e d d ay i n 1 0 y e ars,” i. e., a L OL E of 0. 1.
M a xi m u m I m p ort C a p a bilit y : a C alif or ni a I S O m etric t h at r e pr es e nts a q u a ntit y i n M Ws of i m p orts d et er mi n e d by t h e C AI S O t o b e si m ult a n e o usly d eliv er a bl e t o t h e a g gr e g at e of l o a d i n t h e I S O’s B al a nci n g A ut h ority ( B A A) Ar e a a n d t h us eli gi bl e f or us e i n t h e R es o urc e A d e q u ac y pr oc ess. T h e C alif or ni a I S O ass ess es a MI C M W v al u e f or e ac h i nt erti e i nt o t h e I S O’s B A A a n d all oc at e d y e arl y t o t h e L S Es. A L S E’s R A i m p ort s h o wi n gs ar e li mit e d t o its s h ar e of t h e MI C at e ac h i nt erti e.
N et Q u alif yi n g C a p acit y ( N Q C): Q u alifyi n g C a p acity r e d uc e d, as a p plic a bl e, b as e d o n: ( 1) t esti n g a n d v erific ati o n; ( 2) a p plic ati o n of p erf or m a nc e crit eri a; a n d ( 3) d eliv er a bility r estricti o ns. T h e N et Q u alifyi n g C a p acity d et er mi n ati o n s h all b e m a d e by t h e C alif or ni a IS O p urs u a nt t o t h e pr ovisi o ns of t his C alif or ni a IS O T ariff a n d t h e a p plic a bl e B usi n ess Pr actic e M a n u al.
N o n m o d el e d c osts : e m b e d d e d fix e d c osts i n t o d ay’s e n er gy syst e m ( e. g., existi n g distri b uti o n r ev e n u e r e q uir e m e nt, existi n g tr a ns missi o n r ev e n u e r e q uir e m e nt, a n d e n er gy effici e ncy pr o gr a m c ost).
N o nst a n d ar d L S E Pl a n : ty p e of i nt e gr at e d r es o urc e pl a n t h at a n LS E m ay b e eli gi bl e t o fil e if it s er v es l o a d o utsi d e t h e C AIS O b al a nci n g a ut h ority ar e a.
O pti miz ati o n : a n ex ercis e u n d ert a k e n i n t h e C P U C’s I nt e gr at e d R es o urc e Pl a n ni n g (I R P) pr oc ess usi n g a c a p acity ex p a nsi o n m o d el t o i d e ntify a l e ast c ost p ortf oli o of el ectricity r es o urc es f or m e eti n g s p ecific p olicy c o nstr ai nts, s uc h as G H G r e d ucti o n or R P S t ar g ets, w hil e m ai nt ai ni n g r eli a bility giv e n a s et of ass u m pti o ns a b o ut t h e f ut ur e. O pti miz ati o n i n I R P c o nsi d ers r es o urc es ass u m e d t o b e o nli n e ov er t h e pl a n ni n g h oriz o n ( b as eli n e r es o urc es), s o m e of w hic h t h e m o d el m ay c h o os e n ot t o r et ai n, a n d a d diti o n al r es o urc es (c a n di d at e r es o urc es) t h at t h e m o d el is a bl e t o s el ect t o m e et f ut ur e gri d n e e ds.
Pl a n n e d r es o urc e: a ny r es o urc e i ncl u d e d i n a n LS E p ortf oli o, w h et h er alr e a dy o nli n e or n ot, t h at is y et t o b e pr oc ur e d. R el ati n g t his t o c a p acity ex p a nsi o n m o d eli n g t er ms, pl a n n e d r es o urc es c a n b e b as eli n e r es o urc es ( n e e di n g c o ntr act r e n e w al, or c urr e ntly o w n e d/c o ntr act e d by a n ot h er LS E), c a n di d at e r es o urc es, or p ossi bly r es o urc es t h at w er e n ot c o nsi d er e d by t h e m o d eli n g, e. g., d u e t o t h e p ass a g e of ti m e b et w e e n t h e m o d eli n g t a ki n g pl ac e a n d LS Es d ev el o pi n g t h eir pl a ns. Pl a n n e d r es o urc es c a n b e s p ecific ( e. g., wit h a C AIS O I D) or g e n eric, wit h o nly t h e ty p e, siz e a n d s o m e g e o gr a p hic i nf or m ati o n i d e ntifi e d.
Q u alif yi n g c a p acit y : t h e m axi m u m a m o u nt of R es o urc e A d e q u acy B e n efits a g e n er ati n g f acility c o ul d pr ovi d e b ef or e a n ass ess m e nt of its n et q u alifyi n g c a p acity.
Pr ef err e d C o nf or mi n g P ortf oli o : t h e c o nf or mi n g p ortf oli o pr ef err e d by a n LS E as t h e m ost s uit a bl e t o its o w n n e e ds; s u b mitt e d t o C P U C f or r evi e w as o n e el e m e nt of t h e LS E’s ov er all I R P pl a n.
Pr ef err e d S yst e m Pl a n: T h e C o m missi o n’s i nt e gr at e d r es o urc e pl a n is c o m p os e d of b ot h t h e a g gr e g ati o n of LS E p ortf oli os (i. e., Pr ef err e d S yst e m P ortf oli o) a n d t h e s et of acti o ns n ec ess ar y t o i m pl e m e nt t h at p ortf oli o (i. e., Pr ef err e d S yst e m Acti o n Pl an).
Pr ef err e d S yst e m P ortf oli o: t h e c o m bi n e d p ortf oli os of i n divi d u al L S Es wit hi n t h e C AIS O, a g gr e g at e d, r evi e w e d a n d p ossi bly m o difi e d by C o m missi o n st aff as a pr o p os al t o t h e C o m missi o n, a n d a d o pt e d by t h e C o m missi o n as m ost r es p o nsiv e t o st at ut or y r e q uir e m e nts p er P u b. Util. C o d e 4 5 4. 5 1; p art of t h e Pr ef err e d S yst e m Pl a n.
S h ort t er m : 1 t o 3 y e ars ( u nl ess ot h er wis e s p ecifi e d).
4 6
St aff : C P U C E n er gy Divisi o n st aff ( u nl ess ot h er wis e s p ecifi e d).
St a n d ar d L S E Pl a n : ty p e of i nt e gr at e d r es o urc e pl a n t h at a n L S E is r e q uir e d t o fil e if it s er v es l o a d wit hi n t h e C AIS O b al a nci n g a ut h ority ar e a ( u nl ess t h e LS E d e m o nstr at es ex e m pti o n fr o m t h e I R P pr oc ess) .
Tr a ns missi o n Pl a n ni n g Pr oc ess ( T P P) : a n n u al pr oc ess c o n d uct e d by t h e C alif or ni a I n d e p e n d e nt S yst e m O p er at or ( C AIS O) t o i d e ntify p ot e nti al tr a ns missi o n syst e m li mit ati o ns a n d ar e as t h at n e e d r ei nf orc e m e nts ov er a 1 0 y e ar h oriz o n.
Town Council Agenda Report
Date: October 25, 2022
To: Honorable Mayor and Town Council
Subject: RATIFICATION OF A FEE WAIVER FOR NO DRUGS AMERICA
From: Douglas Robertson, Town Manager
Submitted by: David Coleman, Park and Recreation Manager Parks and Recreation
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
For good cause shown, and finding a waiver will serve a public purpose, approve the ratification waiving the Park Rental Fees of $1,026.00.
BACKGROUND
On August 14, 2001, the Town Council adopted a policy stating fees can be administratively waived for a local public agency, a utility company or service district, or a similar entity providing an essential service to the general community, whereas, non-profit requests for fee waivers must go before the Town Council for consideration.
SUMMARY
No Drugs America is requesting use of the Amphitheater at Civic Center Park on October 22, 2022 in order to provide education and discussion to the youth in the community about abstaining from drug use. They anticipate reaching out to around 200 youth and their family members. The organization will still be required to provide a Certificate of Insurance, Security Deposit, and submit a completed Facility Use Agreement for approval through the Park & Recreation Department.
FISCAL IMPACT
Although there is not an ongoing demand that is displaced with the request on this particular day, the waiving of these fees will result in the loss of potential revenue in the amount of $1,026.00.
ATTACHMENTS
A. Fee Waiver request from No Drugs America
Town Council Agenda Report
Date: October 25, 2022
To: Honorable Mayor and Town Council
Subject: TO ADJOURN THE TOWN COUNCIL MEETING SCHEDULED FOR NOVEMBER 8, 2022 TO AN ADJOURNED REGULAR MEETING TO
BE HELD ON NOVEMBER 15, 2022
From: Douglas Robertson, Town Manager
Submitted by: La Vonda M-Pearson, Town Clerk
Town Clerk’s Office
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
To approve adjourning the Town Council Meeting scheduled for Tuesday, November 8, 2022 to an adjourned regular meeting to be held on November 15, 2022.
BACKGROUND
The next regularly scheduled meeting of the Apple Valley Town Council is scheduled for Tuesday, November 8, 2022. Due to the General Municipal Election being held on this date, it is the recommendation of staff to notice this meeting in accordance with the Brown Act and to adjourn the meeting to an adjourned regular meeting to be held on November 15, 2022.
In accordance with longstanding Town practices, the meetings scheduled for November 22nd and December 27th will not occur due to their proximity to the Thanksgiving and Christmas holidays.
FISCAL IMPACT
N/A
ATTACHMENTS
None.
Town Council Agenda Report
Date: October 25, 2022
To: Honorable Mayor and Town Council
Subject: SUBSTANTIAL AMENDMENT TO THE 2021-2022 ACTION PLAN TO
ALLOCATE HOME-ARP FUNDS
From: Douglas Robertson, Town Manager
Submitted by: Silvia Urenda, Housing and Community Development Supervisor Housing
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
It is recommended that the Town Council:
A. Conduct a public hearing and upon accepting public testimony; B. Approve a Substantial Amendment to the 2021-2022 Annual Action Plan to support the Apple Valley-Victorville HOME Consortium by allocating HOME-ARP funds; and
C. Authorize the Town Manager, or designee, to execute and transmit all necessary documents, including the Substantial Amendment to the Action Plan, and any additional amendments, to assure the Town’s timely expenditure of the Consortium’s HOME-ARP funds.
BACKGROUND
The Apple Valley-Victorville Consortium has been allocated $2,913,966.00 of HOME Investment Partnerships Program-American Rescue Plan Act (HOME-ARP) funding from the US Department of Housing and Urban Development (HUD). To receive the HOMEARP allocation the Apple Valley-Victorville Consortium is required to develop a HOMEARP Allocation Plan that will become a part of the Consortium’s program year 2021-HUD Annual Action Plan via Substantial Amendment.
To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, staff of both the Town and the City of Victorville engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, and a 30-day public comment period. The public hearing is the final step in the effort to get public participation, as required by the Town’s Citizen Participation Plan.
The Allocation Plan required that a needs assessment and gap analysis must be done to evaluate the size and demographic composition of HOME-ARP qualifying populations, and unmet needs of HOME-ARP qualifying populations. In addition, the needs assessment and gap analysis identified any opportunities within its current shelter and housing inventory, and service delivery system. Staff evaluated all of the eligible activities, qualifying populations to be served, assessed the available resources and the gaps present, in making its decision on allocating the HOME- ARP funds. As a result, the consortium has considered the VictORville Wellness Center, that is slated to open in 2023, as a way to provide wrap-around services identidied in the Allocation Plan. The Wellness Center project will offer a low-barrier emergency shelter with a recuperative care facility, medical clinic, interim housing, and supportive services.
To address the needs within the community, staff recommends allocating the HOME-ARP funds toward supportive services designed to assist the homeless and those at risk of becoming homeless. As a consortium, it is the intent to provide many of the services either offered or based at the Victorville Wellness Center.
ANALYSIS
HUD’s CPD Notice 21-10 Requirements for the Use of Funds in the HOME-American Rescue Plan Program establishes the requirements for funds appropriated under section 3205 of the American Rescue Plan Act of 2021 for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services.
The American Rescue Plan Act (ARP) defines qualifying individuals or families, including Veterans, that are:
1. Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act;
2. At risk of homelessness, as defined in section 401 of the McKinney-Vento Homeless Assistance Act;
3. Fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR 5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and
4. Part of other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would:
a. Prevent a family’s homelessness;
b. Serve those with the greatest risk of housing instability.
HOME-ARP funds may be used benefit qualifying populations through:
1. Tenant-based Rental Assistance (TBRA);
2. Development and support of affordable housing;
3. Provision of supportive services;
4. Acquisition and development of non-congregate shelter;
5. Nonprofit capacity building and operating assistance; and
6. Program planning and administration.
Through the public participation process, the preparing of the needs assessment and gap analysis to evaluate the size and demographic composition of HOME-ARP qualifying populations, and unmet needs of HOME-ARP qualifying populations, Town and City staff and have proposed the following allocation:
Activity
Funding
Allocated by
Apple Valley
Funding
Allocated by
Victorville
Percent of
Allocation
Statutory
Limit
Non-congregate Shelter
Affordable Rental Housing
Tenant-based Rental Assistance
Supportive Services $816,485.00 $1,660,386.00
Nonprofit Operating Assistance 5%
Nonprofit Capacity Building 5%
Administration and Planning $144,086.00 $146,504.00 15% 15% Victorville Admin allocated to AV $146,504.00 50%
Subtotals $1,107,075.00 $1,806,891.00
Total HOME-ARP Allocation $2,913,966.00
Staff considered all the eligible activities and qualifying populations for funding. Through the Allocation Plan process the consortium assessed the available resources, opportunity gaps, and determined where the limited allocation of ARP funding would be the most beneficial for both communities. With potential allocation of supportive services towards the Wellness Center, there will be opportunity to offer a low-barrier emergency shelter services with a recuperative care facility, medical clinic, interim housing, and additional supportive services.
To address the needs within the community, the Consortium will allocate 85 percent of its HOME-ARP funds to Supportive Services designed to assist the homeless and those at risk of becoming homeless. It is the intent to have services offered or based at the City of Victorville’s Wellness Center, serving homeless and those at risk of homelessness. The remaining 15 percent will be used the administer the HOME-ARP program.
FISCAL IMPACT
The proposed allocation will have no impact on the general fund. The $1,107,075.00 for Apple Valley and total of $2,913,966.00 for the Consortium will be allocated through the approved Substantial Amendment for the 2021-2022 program year. The Substantial Amendment will not affect any existing programs allocated during that program year. The HOME-ARP program will improve the quality of life for the Town’s residents who fit into the categories of qualifying populations as defined by HUD. Town Council’s approval of the recommended action adopts the Substantial Amendment to the Action Plan and thereby allowing staff to submit the HOME-ARP Substantial Amendment to HUD for approval.
ALTERNATIVES
1. Provide alternative direction to staff.
ATTACHMENTS
1. Substantial Amendment: 2021-2022 Action Plan-HOME ARP
Substantial Amendment
2021 Action Plan HOME-ARP
HOME INVESTMENT PARTNERSHIPS PROGRAM
AMERICAN RESCUE PLAN
September 2022 Page 209 of 242
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DRAFT Substantial Amendment to
2021 Annual Action Plan
HOME-ARP ALLOCATION PLAN
HOME Investment Partnerships Program
American Rescue Plan
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APPLE VALLEY TOWN COUNCIL
KARI LEON
Mayor
ART BISHOP
Mayor Pro Tem
LARRY CUSACK
Councilmember
CURT EMICK
Councilmember
SCOTT NASSIF
Councilmember
VICTORVILLE CITY COUNCIL
DEBRA JONES
Mayor
LESLIE IRVING
Mayor Pro Tem
ELIZABETH BECERRA
Councilmember
BLANCA GOMEZ
Councilmember
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APPLE VALLEY-VICTORVILLE
CONSORTIUM - i - HOME-ARP ALLOCATION PLAN
CONTENTS
Executive Summary ...................................................................................................... 1 Introduction ................................................................................................................... 1 HOME-ARP Eligible Qualifying Populations and Activities ........................................... 2 Stakeholder Consultation and Public Participation ......................................................... 4 Stakeholder Consultation – Organizations Consulted by Type and Method ................. 4 Summary of Feedback Received from Consulted Organizations ................................. 4 Public Participation .................................................................................................... 6 Efforts to Broaden Public Participation ........................................................................ 8 Public Comments and Recommendations Received ................................................... 8 Public Comments and Recommendations Not Accepted and Reasons Why ................ 8 Needs Assessment and Gap Analysis ............................................................................ 9 Housing Inventory Count ........................................................................................... 9 Size and Demographic Composition of Qualifying Populations .................................. 10 Sheltered Homeless Populations .............................................................................. 10 Unsheltered Homeless Populations .......................................................................... 10 At-risk of Homelessness........................................................................................... 10 Fleeing or Attempting to Flee Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking .................................................................................. 11 Other Populations: Currently housed and at risk of repeat homelessness ...................... 11 Other Populations: At greatest risk of housing instability – Households with incomes <30% AMI and experiencing severe housing cost burden ......................................... 12 Other Populations: At greatest risk of housing instability – Households with incomes 30-50% AMI that meet HUD’s §91.5 definition of at risk of homelessness ................. 12 Unmet Housing and Service Needs of Qualifying Populations ................................... 13 Current Resources Available to Assist Qualifying Populations ....................................... 13 Current Resources: Congregate Beds and Non-congregate Shelter Units ................ 14 Current Resources: Supportive Services .................................................................. 15 Current Resources: Tenant-based Rental Assistance ............................................... 15 Current Resources: Affordable and Permanent Supportive Rental Housing ............... 15 Current Resources: Housing V ................................................................................. 15
APPLE VALLEY-VICTORVILLE
CONSORTIUM - ii - HOME-ARP ALLOCATION PLAN
Shelter, Housing and Service Delivery System Gaps ....................................................... 15 Shelter Gap ............................................................................................................. 16 Tenant-based Rental Assistance Gap....................................................................... 16 Affordable and Permanent Supportive Rental Housing Gap ...................................... 17 Housing Voucher Gap.............................................................................................. 17 Service Delivery System Gaps ................................................................................. 17 Characteristics of Housing Associated with Increased Risk of Homelessness for Other Populations .............................................................................................................. 18 Priority Needs for Qualifying Populations .................................................................. 19 HOME-ARP Activities .................................................................................................. 21 Uses of HOME-ARP Funding.................................................................................... 21 Rationale for Uses of HOME-ARP Funding ............................................................... 21 HOME-ARP Housing Production Goals ........................................................................ 21 Preferences ................................................................................................................ 22 HOME-ARP Refinancing Guidelines ............................................................................. 22 Appendices
Citizen Participation and Consultation ................................................................ Appendix A Grantee SF-424s and Certifications ................................................................... Appendix B
APPLE VALLEY-VICTORVILLE
CONSORTIUM - iii - HOME-ARP ALLOCATION PLAN
VERSION HISTORY
No. Summary of Changes
1 Town of Apple Valley Published
Draft for Public Comment: 9/23/22 Sent to HUD for
Approval: TBD City of Victorville Published Draft for
Public Comment: 9/16/2022
Town of Apple Valley Conducted
Public Hearing:
11/8/22
Approved by HUD: TBD City of Victorville Conducted Public Hearing: 10/18/2022
Original HOME-ARP Allocation Plan.
Public Contact Information
Attn: Silvia Urenda, Housing & Community Development Specialist II 14955 Dale Evans Parkway
Apple Valley, CA 92307
760-240-7000
www.applevalley.org
APPLE VALLEY-VICTORVILLE
CONSORTIUM - 1 - HOME-ARP ALLOCATION PLAN
Executive Summary
The Apple Valley-Victorville Consortium has been allocated $2,913,966 of HOME Investments Partnerships Program-American Rescue Plan Act (HOME-ARP) funding from the US Department of Housing and Urban Development (HUD). In order to receive the HOME-ARP allocation, the Consortium must develop a HOME-ARP Allocation Plan that will become part of the Consortium’s PY2021 HUD Annual Action Plan by Substantial Amendment.
To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, the Consortium engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, a 30-day public comment period, and a public hearing.
The needs assessment and gap analysis identified the following needs and gaps within the Consortium:
In February 2022, the annual Point in Time (PIT) count revealed that 232 people were residing in emergency housing, either in shelter or transitional housing. Another 250 people were unsheltered on the streets, in tents or makeshift shelters, or in cars, vans, RVs or campers.
2014-2018 CHAS Data from HUD reported 9,810 households with incomes at or below 30% AMI are at greatest risk of housing instability in the Consortium. The greatest need for supportive services is in the areas of financial assistance, food assistance, housing search and housing counseling services, and job training and employment assistance.
The Consortium considered all of the eligible activities for this funding and the qualifying populations to be served, assessed the available resources and the gaps present, in making its decision about how the limited funds would most benefit the community. It also considered the Wellness Center, opening soon in Victorville. The project will offer a low-barrier emergency shelter with a recuperative care facility, medical clinic, interim housing and supportive services.
To address the needs within the community, the Consortium will allocate its HOME-ARP funds to Supportive Services designed to assist the homeless and those at risk of becoming homeless. It is the intent to have many of the services either offered or based at the Wellness Center, serving homeless and those at risk of homelessness.
APPLE VALLEY-VICTORVILLE
CONSORTIUM - 2 - HOME-ARP ALLOCATION PLAN
Introduction
The Apple Valley-Victorville Consortium has been allocated $2,913,966 of HOME Investment Partnerships Program-American Rescue Plan Act (HOME-ARP) funding from the US Department of Housing and Urban Development (HUD). To receive the HOME-ARP allocation the Apple Valley-Victorville Consortium must develop a HOME-ARP Allocation Plan that will become a part of the Consortium’s PY2021 HUD Annual Action Plan by substantial amendment. The HOME-ARP Allocation Plan must include the following:
1. A summary of the consultation process and the results of consultation;
2. A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reason why;
3. A description of HOME-ARP qualifying populations within the jurisdiction;
4. An assessment of unmet needs of each qualifying population;
5. An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;
6. A summary of planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
7. An estimate of the number of housing units for qualifying populations the Consortium will produce or preserve with its HOME-ARP allocation;
8. A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population;
9. HOME-ARP Refinancing Guidelines; and
10.Certifications and SF-424, SF-424B, and SF-424D Forms.
The following entities are responsible for preparing the Allocation Plan and administration of the HOME-ARP grant.
Responsible Agencies
Agency Role Name Department/Agency
Lead Agency Town of Apple Valley Housing and Community Development Department
Consortium Member City of Victorville Development Department HOME-ARP Eligible Qualifying Populations and Activities HUD’s CPD Notice 21-10 Requirements for the Use of Funds in the HOME-American Rescue Plan Program establishes the requirements for funds appropriated under section 3205 of the
APPLE VALLEY-VICTORVILLE
CONSORTIUM - 3 - HOME-ARP ALLOCATION PLAN
American Rescue Plan Act of 2021 for the HOME Investment Partnerships Program (HOME) to provide homelessness assistance and supportive services.
The American Rescue Plan Act (ARP) defines qualifying individuals or families, including Veterans, that are:
1. Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act;
2. At risk of homelessness, as defined in section 401 of the McKinney-Vento Homeless Assistance Act;
3. Fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR 5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and
4. Part of other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would:
a. Prevent a family’s homelessness;
b. Serve those with the greatest risk of housing instability.
HOME-ARP funds may be used benefit qualifying populations through:
1. Tenant-based Rental Assistance (TBRA);
2. Development and support of affordable housing;
3. Provision of supportive services;
4. Acquisition and development of non-congregate shelter;
5. Nonprofit capacity building and operating assistance; and
6. Program planning and administration.
APPLE VALLEY-VICTORVILLE
CONSORTIUM - 4 - HOME-ARP ALLOCATION PLAN
Stakeholder Consultation and Public Participation
HUD requires each HOME-ARP Participating Jurisdiction to consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations. Agencies that must, at a minimum, be consulted include the Continuum of Care serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address fair housing, civil rights, and the needs of persons with disabilities.
HUD also requires that each Participating Jurisdiction provide opportunities for the public to comment on the proposed Allocation Plan, including the amount of HOME-ARP funds that will be received and the range of activities that the Consortium may undertake.
To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, the Consortium engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, a 30-day public comment period, and a public hearing.
Stakeholder Consultation
The Apple Valley-Victorville Consortium consulted with representatives from multiple agencies, groups, and organizations involved in the development of affordable housing, addressing homelessness, and the provision of services to qualifying populations in preparing this HOME-ARP Allocation Plan.
Two virtual sessions were held June 30, 2022. Representatives from multiple agencies, groups, and organizations were invited via email to attend. Those unable to attend were invited to submit written comments via emails or schedule a phone call to share their thoughts.
The virtual consultation session included an overview of the HOME-ARP notice to inform attendees of the qualifying populations and eligible activities, an opportunity to ask clarifying questions, a request for input into needs and gaps, and priority populations and activities, and an overview of the Allocation Plan timeline and process.
A survey instrument was designed and available online and invited representatives from multiple agencies, groups, and organizations to rank the qualifying populations and eligible
APPLE VALLEY-VICTORVILLE
CONSORTIUM - 5 - HOME-ARP ALLOCATION PLAN
activities and services in order of perceived need, and the best approach for carrying out those activities for the community.
The Consortium’s virtual sessions were attended by 19 representatives of 17 agencies. The survey was completed by five representatives of five agencies and two members of the public. All HUD-required agency types were represented in either the virtual session or the online survey.
Organizations Consulted by Type and Method
Organization Consulted Type of Organization Method of
Consultation
A Core Solution Nonprofit, addresses needs of qualifying populations including homeless Virtual Session
Antelope Valley
Domestic Violence
Center
dba Valley Oasis
Nonprofit, addresses needs of qualifying
populations including domestic violence
victims
Survey
Apple Valley Adult
School
Nonprofit, addresses needs of qualifying
populations Survey
Christ of Solid Rock Nonprofit, addresses needs of qualifying populations including homeless Virtual Session
City of Victorville Public, addresses needs of qualifying populations, serves as public housing authority Virtual Session Community Health
Action Network
Nonprofit, addresses needs of qualifying
populations including homeless Virtual Session
Family Assistance
Program
Nonprofit, addresses needs of qualifying
populations including homeless
Virtual Session
Survey
Goodwill Southern
California
Nonprofit, addresses needs of qualifying
populations Virtual Session
High Desert Mutual Aid Nonprofit, addresses needs of qualifying populations including homeless Virtual Session
Inland Regional Center Nonprofit, addresses needs of qualifying populations including disabled Survey
Office of District 1
County Supervisor
Public, addresses needs of qualifying
populations Virtual Session
Project 180 Public, addresses needs of qualifying
populations Survey
Providence St. Mary's
Hospital
Nonprofit, addresses needs of qualifying
populations Virtual Session
Retired Military
Personnel Individual, volunteer Veterans' advocate Virtual Session
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Ruth & Naomi Project Nonprofit, addresses needs of qualifying populations Virtual Session
Symba Center Nonprofit, addresses needs of qualifying
populations including homeless Virtual Session
The Lords Table Nonprofit, addresses needs of qualifying populations including homeless Virtual Session
Town of Apple Valley Public, addresses needs of qualifying populations, serves as public housing authority Virtual Session Victor Valley Domestic
Violence
Nonprofit, addresses needs of qualifying
populations including victims of domestic
violence
Virtual Session
Victor Valley Family
Resource Center
Nonprofit, addresses needs of qualifying
populations including homeless Virtual Session
Women of Nobel
Character
Nonprofit, addresses needs of qualifying
populations including homeless Virtual Session
Summary of Feedback Received from Consulted Organizations Consultation revealed strong support for the following:
Tenant-based rental assistance (TBRA). There currently is no TBRA assistance available in the Consortium. Of respondents to the survey, 83% believed there was a high need for this activity.
Development and support of affordable housing. Participants in the virtual sessions discussed the need for additional affordable housing. Many expressed concerns about the challenge of identifying housing and getting into the units without vouchers or other programs of support. Currently there is one affordable housing program with project-based vouchers that is meeting their period of affordability and there is concern about the future of that project. Several participants pointed out the needs for affordable housing specifically for families, seniors, and domestic violence victims. Of respondents to the survey, 50% believed there was a high need for this activity.
Acquisition and development of non-congregate shelter. Many participants mentioned the need for shelter in general and for specific populations including families, those fleeing domestic violence and other situations, people with service animals, the elderly and single people. A new project in Victorville, the Wellness Center, is scheduled to open in early 2023 will provide additional shelter beds, both congregate and non-congregate. Of respondents to the survey, 29% believed there was a high need for this activity.
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Provision of supportive services. Many examples of supportive services were mentioned in the virtual session including general services to families, foster children including those aging out of the system, credit repair services, employment and job preparation services, and eviction relief. Survey respondents were asked to rate what they believed is the current need for various services eligible under HOME-ARP. Of respondents to the survey, 17% believed there was a high need for this activity. The activities with the most ratings for “high need” were financial assistance costs, food assistance, housing search and counseling services, job training and employment services, mental health services, outreach services, substance abuse treatment, and transportation assistance (67% each).
Rating of Current Need for Supportive Services
Supportive Services High Need Moderate
Need Low Need No Need
Financial assistance costs 67% 17% 17% 0%
Food assistance 67% 17% 17% 0%
Housing search and
counseling services 67% 33% 0% 0%
Job training and employment
services 67% 33% 0% 0%
Mental health services 67% 33% 0% 0%
Outreach services 67% 33% 0% 0%
Substance abuse treatment 67% 17% 17% 0%
Transportation assistance 67% 33% 0% 0%
Education services 60% 40% 0% 0%
Case management services 50% 33% 17% 0%
Landlord/tenant liaison
services 50% 33% 17% 0%
Legal services 50% 33% 17% 0%
Outpatient health services 50% 50% 0% 0%
Services for special
populations 50% 33% 17% 0%
Credit repair services 33% 50% 17% 0%
Mediation services 33% 50% 17% 0%
Childcare assistance 29% 57% 14% 0%
Nonprofit capacity building and operating assistance. In the survey, respondents were asked if they believed there was a need for nonprofit capacity building and operating assistance.
Of respondents to the survey, 86% responded affirmatively that there was a need in the nonprofit sector for this assistance.
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Public Participation
To provide opportunities for public participation, the Apple Valley-Victorville Consortium sent an email to all agencies and individuals on its email list notifying them of the opportunity to participate in the virtual consultation sessions held on June 30, 2022. In addition to attending the virtual consultation session, they were asked to complete an online survey regarding their views of the level of need for the eligible activities and qualifying populations as described by the CPD Notice 21-10. Those unable to attend, or who had further comments after the virtual session were invited to email them directly to Consortium staff.
A Public Notice for the public comment period and public hearing was published in the Valleywide Newspaper on September 16, 2022, and the Victorville Daily Press on September 23, 2022. The public notice was published in both English and Spanish. The Valleywide Newspaper and Victorville Daily Press the qualify as newspapers of general circulation.
Efforts to Broaden Public Participation
To broaden public participation, members of the public who are on the Consortium’s email list were also invited via email to attend the virtual consultation session held in the formulation of the Allocation Plan.
Public Comments and Recommendations Received
To be completed after the Public Comment period and the Public Hearing.
Public Comments and Recommendations Not Accepted and Reasons Why To be completed after the Public Comment period and the Public Hearing.
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Needs Assessment and Gap Analysis
The needs assessment and gap analysis must evaluate the size and demographic composition of HOME-ARP qualifying populations, and unmet needs of HOME-ARP qualifying populations. In addition, the needs assessment and gap analysis must identify any gaps within its current shelter and housing inventory, and service delivery system. This needs assessment and gap analysis focuses on the following:
1. Sheltered and unsheltered homeless populations;
2. Currently housed populations at risk of homelessness;
3. Other families requiring services or housing to prevent homelessness; and
4. Those at greatest risk of housing instability or unstable housing situations.
Housing Inventory Count
The annual Housing Inventory Count (HIC) provides useful context regarding the number and type of beds and units that are available for individuals and families experiencing on any given night. The following tables summarize beds and units available as of January 2021 in the Consortium by bed type.
Emergency housing beds include emergency shelter and transitional housing; emergency shelter generally allows for short-term or nightly stays, while transitional housing generally allows for a stay up to 24 months. Both types of emergency housing may include supportive services designed to facilitate movement to independent living.
The 2021 HIC did not include details about housing available for subpopulations.
Emergency Housing Beds Available January 2021
Family Units Family Beds Adult-Only
Beds
Child-Only
Beds
Total YearRound Beds
Emergency
Shelter 6 18 60 13 97
Transitional
Housing 15 54 33 1 103
Total
Emergency
Housing Beds
21 72 93 14 200
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The 2021 Continuum of Care Housing Inventory Count includes one transitional housing project, that had been located in Apple Valley, but has since closed its doors. Although included in the 2021 report published by HUD, we have not included in the count in the plan.
Rapid rehousing provides security and utility deposits and/or monthly rental and utility assistance for rental units that rent for less than the fair market rent. Assistance is generally provided for the shortest period of time necessary for a household to gain stable housing and can range from 3 to 24 months. Permanent supportive housing provides for an unlimited lease term; residents receive services necessary to promote continued housing stability.
Rapid Rehousing and Permanent Supportive Housing Available January 2022 Family Units Family Beds Adult-Only
Beds
Child-Only
Beds
Total YearRound Beds
Rapid
Rehousing 0 0 0 0 0
Permanent
Supportive
Housing
0 0 0 0 0
Total YearRound Beds 0 0 0 0 0
Size and Demographic Composition of Qualifying Populations Sheltered Homeless Populations
The 2022 Point-in Time (PIT) count identified 232 people experiencing sheltered homelessness in the Consortium on during the night of February 23 through the early morning of February 24, 2022. People are considered sheltered when they are residing in emergency shelter or transitional housing, but not when they are receiving rapid rehousing assistance or residing in permanent supportive housing. Among individuals experiencing sheltered homelessness:
169 (73%) were in emergency housing
o 1 in Apple Valley
o 168 in Victorville
63 (27%) were in transitional housing for homeless persons o All in Victorville
Unsheltered Homeless Populations
The 2022 Point-in Time (PIT) count identified 250 people experiencing unsheltered homelessness on February 24, 2022. A person was considered homeless and counted only
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when they fell within the HUD-based definition by residing in a place not meant for human habitation, such as a car, a park, on the sidewalk, or an abandoned building. The count did not report the numbers for each living situation.
Apple Valley: 26
o up from the 2020 count of 24
Victorville: 224
o down from the 2020 count of 298
At-risk of Homelessness
Households at risk of homelessness are those with incomes at or below 30% AMI that lack sufficient resources or support networks to prevent homelessness, and Have moved more than two times due to economic reasons in the past 60 days, or Are doubled up with another household due to economic hardship, or Will be evicted within 21 days, or
Live in a hotel or motel without financial assistance from a nonprofit or government entity, or
Live in an efficiency apartment and are overcrowded, or Are exiting a publicly-funded institution or system of care The CHAS 2014-2018 Data Table 10 indicates that there are approximately 5,255 renter households with incomes at or below 30% AMI that are at risk of homelessness in the Consortium.
Apple Valley: 1,740
Victorville: 3,515
Fleeing or Attempting to Flee Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking
Nationwide, domestic violence, assault, and stalking are underreported according to the U.S.
Department of Justice. Criminal Victimization, 2020, reports only 58 percent of all domestic violence events were reported to the police. The State of California Department of Justice maintains statistics on domestic violence calls to local law enforcement statewide by jurisdiction (openjustice.doj.ca.gov). In 2020, police in Apple Valley and Victorville responded to a total of 675 calls related to domestic violence. Of these calls for assistance:
390 of these domestic incidents did not involve a weapon 282 calls involved a weapon
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o 22 domestic incidents involved a firearm
o 13 domestic incidents involved a knife or cutting instruments o 46 domestic incidents involved other dangerous weapons o 201 domestic incidents involved personal weapons (i.e., feet or hands) o 87 cases involved strangulation
o 11 cases involved suffocation
It is difficult to estimate the number and type of families in need of housing assistance based on the data provided by state’s Open Justice program. In households were physical violence occurred, it is possible that at least one member, possibly more include children, will need to relocate within the next five years to escape recurring violence.
Victims of domestic violence suffer in many ways including economically which impacts access to safe and affordable permanent housing. Nationally, statewide, and in the Apple Valley-Victorville Consortia there is need for emergency shelter and affordable permanent housing.
Other Populations
Other populations, as defined by HOME-ARP, include those who:
1. Are currently housed and at risk of repeat homelessness;
2. Have incomes at or below 30% AMI and are experiencing severe housing cost burden; and
3. Otherwise meet the definition of at risk of homelessness and have incomes income of more than 30% and at or below 50%
Other Populations: At greatest risk of housing instability – Households with incomes <30% AMI and experiencing housing cost burden The 2014-2018 HUD CHAS data indicates there are 9,810 renter households with an annual income at or below 30% AMI with a cost burden that are at greatest risk of housing instability.
These renter households include:
Two-person households, one or both of whom are age 62 or older: 15 Small families with 2-4 non-elderly people: 50
Large families with 5 or more people: 55
People living alone or with non-relatives who are age 62 or older: 30 People living alone or with non-relatives, none of whom are age 62 or older: 20
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Other Populations: At greatest risk of housing instability – Households with incomes 31-50% AMI that meet HUD’s §91.5 definition of at risk of homelessness
Households in this category are those with incomes at more than 30% and at or below 50% AMI that lack sufficient resources or support networks to prevent homelessness, and Have moved more than two times due to economic reasons in the past 60 days, or Are doubled up with another household due to economic hardship, or Will be evicted within 21 days, or
Live in a hotel or motel without financial assistance from a nonprofit or government entity, or
Live in an efficiency apartment and are overcrowded, or Are exiting a publicly-funded institution or system of care HUD Comprehensive Housing Affordability Strategy (CHAS) 2014-2018 Data Table 10 provides information on households that include more than one family, household income level and overcrowding. The CHAS data indicates that there are approximately 4,265 households with incomes between 30 and 50% AMI that are at risk of homelessness in the Consortium because of at least one of the housing problems as defined by HUD. In addition, 35 are living in households with more than one family.
Unmet Housing Needs of Qualifying Populations
The greatest unmet housing need of qualifying populations is the availability of affordable rental housing. As the table below shows, only 2% of the more than 8,500 rental units in the Consortium are available to households with incomes at or below 50% AMI.
Housing Needs Inventory and Gap Analysis
Available
Units
Level of
Need
HH with at
least 1 Housing
Problem
GAP
(units-level of
need)
Total Rental Units 8,585
<=30% AMI 145 5,255 4,510 (5,110)
>30% to <=50%
AMI
50 4,690 5,255 (4,640)
Total <=50% AMI 195 9,945 9,765 (9,750)
Unmet Service Needs of Qualifying Populations
Based on consultation with service providers in the Consortium, the greatest unmet service needs of qualifying populations Included sheltered and unsheltered homeless populations, currently housed populations at risk of homelessness, other families requiring services or
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assistance to prevent homelessness, and those at greatest risk of housing instability or in unstable housing situations are:
Financial assistance costs
Food assistance
Housing search and counseling services
Job training and employment services
Mental health services
Outreach services
Substance abuse treatment
Transportation assistance
Additional unmet service needs of qualifying populations, including sheltered and unsheltered homeless populations, currently housed populations at risk of homelessness, other families requiring services or assistance to prevent homelessness, and those at greatest risk of housing instability or in unstable housing situations include the following as described in HUD CPD Notice 2021-10, as may be amended:
Education services
Case management services
Landlord/tenant liaison services
Legal services
Outpatient health services
Services for special populations
Credit repair services
Mediation services
Childcare assistance
Current Resources Available to Assist Qualifying Populations Current available resources include:
Congregate beds and non-congregate shelter units;
Supportive services;
Tenant-based rental assistance; and
Affordable and permanent supportive housing
Housing vouchers
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Current Resources: Congregate Beds and Non-congregate Shelter Units In January 2021, there were 200 congregate beds and no beds in non-congregate shelter units. Congregate beds include emergency, safe haven, and transitional housing beds and units. Non-congregate shelter includes permanent supportive housing and rapid re-housing.
Current Resources: Supportive Services
San Bernardino County’s homeless Continuum of Care (CoC) is comprised of a network of public, private, faith-based, for-profit, and non-profit service providers who utilize several federal, state, and local resources to provide services for homeless people. The region’s municipalities, including the Consortium, also provide resources for services that assist the homeless and those at risk of becoming homeless. The non-profit and faith-based community plays a key role in the current CoC system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The non-profit and faith-based community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth.
Current Resources: Tenant-based Rental Assistance
There are no Tenant-based Rental Assistance programs available in the Consortium.
Current Resources: Affordable and Permanent Supportive Rental Housing There are 13 apartment complexes within the Consortium that have been identified as being affordable rental housing units. The apartment complexes are identified by searching the Internet for “affordable housing” in each community. The properties offer at least 1,206 affordable units. Of those properties,
Four properties are project-based Housing Choice Voucher projects (estimated 361 units)
Eight properties are Low-Income Housing Tax Credit (LIHTC) projects (estimated 811 units)
Two are Section 515 Rural Rental Housing and Section 521 USDA Rental Assistance projects (34 units)
Two rent only to seniors 55 units)
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Of the four complexes renting to the general population that responded to the survey, all complexes (with a total of 405 units) had waiting lists that totaled “more than” 752 names (there may be duplicates on the four lists); all currently have waiting lists; and three had closed their lists; one list is open because the funding requires it to remain open; the lists were between two and four years old. Based on the survey and information found online, none of the 13 complexes had units available for rent.
The only complex renting to only seniors that responded to the survey reported a waiting list of 33 names (12 units) and reported that the waiting lists included names dating back three to four years. Based on the survey and information found online, neither of the complexes had units available for rent.
Current Resources: Housing Vouchers
The Housing Authority of the County of San Bernardino currently has 8,714 Housing Choice Vouchers deployed within the County. Of those, there are 922 vouchers deployed in the Consortium.
The Housing Authority also maintains a waiting list for those vouchers. It is currently using a waiting list from 2019. There are 5,840 names still on the list and the list will probably be depleted in the next six to eight months if funding continues. Applications were taken for the 2022 waiting list between June 7 and June 30, 2022. About 26,000 applications were received and are currently being processed.
The Consortium, the Town, and the City do not sponsor any Housing Choice Vouchers.
Shelter, Housing and Service Delivery System Gaps
Shelter Gap
There is an estimated need for 250 additional shelter beds based on the 2022 PIT count. The PIT count found that there were 232 persons in emergency shelter or transitional housing in the Consortium, but 250 unsheltered persons in a variety of situations, including on the street, in tents or makeshift shelters, or in cars, vans or RVs/campers.
The 2022 PIT count does not define, how many were individuals, in family units, or children.
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Tenant-based Rental Assistance Gap
There is an estimated gap of 5,970 tenant-based rental assistance vouchers for households with income at or below 50% AMI and paying more than 50% of household income for rent, including utilities.
Tenant-based Rental Assistance Gap
Renter Households with Income at or below 50% AMI paying more than 50% of income for rent, including utilities
5,970
TBRA vouchers available 0
TBRA gap 5,970
The Tenant-based Rental Assistance voucher gap was calculated using HUD CHAS data Table 7 and is equal to the number of renter households with income at or below 50% AMI and paying more than 50% of household income for rent, including utilities, less the number of households being served with TBRA assistance.
Affordable Supportive Rental Housing Gap
There is an estimated gap of 4,220 rental units affordable to renter households with income at or below 30% AMI and an estimated gap of 1,850 rental units affordable to renter households with income more than 30% and at or below 50% AMI.
Affordable Rental Unit Gap
Renter Households with Income at or below 30% AMI paying more than 50% of income for rent, including utilities
4,220
Renter Households with Income 30% to 50% AMI paying more than 50% of income for rent, including utilities
1,850
Total Affordable Rental Units Needed 6,070
The number of Affordable Rental Units was calculated using HUD CHAS Data Table 7 and is equal to the number of renter households’ income category paying more than 50% of household income for rent, including utilities.
Permanent Supportive Rental Housing Gap
Permanent supportive rental housing is a subset of the affordable rental housing gap, primarily for households with income at or below 30% AMI. In addition to affordable rent, permanent supportive housing provides an array of services necessary to help people with
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disabilities and/or experiencing chronic homelessness to retain housing stability. There is an estimated gap of 642 permanent supportive housing units in the Consortium.
Permanent Supportive Housing Gap
Population of Apple Valley and Victorville Census 2020 201,601 Per capita estimate of permanent supportive housing need .003183 Estimated need for Permanent Supportive Housing 642
Permanent Supportive Housing Available 0
Total Permanent Supportive Housing Gap 642
The number of Permanent Supportive Rental Housing Units needed was calculated by multiplying the current population of the Consortium, according to the California Census 2020, by the per capita need (.003182) in California as calculated by the Corporation for Supportive Housing, less the number of Permanent Supportive Rental Housing Units currently available.
Housing Voucher Gap
The size of the housing voucher gap in the Consortium area is unknown. The Consortium represents
9.3% of the county population (2,181,654 in 2020). The current waiting list is 5,840, and it is conceivable that there could be 540 names on the waiting list currently residing in the Consortium area. In addition, there are 26,000 applications for the new list. Using the same formula, and assuming that the applicants on the 2019 have reapplied for the new list, there could be another 1,875 applicants in the Consortium hoping to get housing assistance with a housing voucher.
Service Delivery System Gap
To identify gaps in the service delivery system, the Consortium relied on its consultation with stakeholders and experience working with the organizations working in the Consortium. The stakeholders believe that the most critical service gaps are in the areas of financial assistance costs, food assistance, housing search and counseling services, job training and employment services, mental health services outreach services, substance abuse treatment, and transportation assistance. The stakeholders also believed there was a need for assistance with general administrative costs and building capacity among the nonprofit service providers serving the Consortium’s qualifying populations.
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Characteristics of Housing Associated with Increased Risk of Homelessness for Other Populations
For other populations, severe housing cost burden, or paying more than 50% of household income for rent and utilities is the primary characteristic of housing associated with the risk of homelessness in the Consortium. The HUD CHAS Data Table 7 indicates there are 6,070 households at or below 50% AMI who are spending more than 50% of the household income on rent and utilities.
Priority Needs for Qualifying Populations
Homeless. An article on the website policyadvice.net, The State of Homelessness in the US2022, uses PBS as a source for the following statistics:
25% of homeless people have a mental illness
38% have an alcohol abuse issue
26% have a drug abuse issue
That information, and other research, indicates that there is a need for mental health services and substance abuse services for the homeless in the Consortium. Participants in the consultation process believed that homelessness was best served by the development of additional shelter beds, affordable housing, and TBRA assistance for housing. The priority needs for supportive services included housing search, mental health services, financial assistance, and case management.
At risk of homelessness. One of the indicators of risk of homelessness is housing cost burden. According to the National Alliance to End Homelessness, in their State of Homelessness: 2021 Edition, households experiencing a severe housing cost burden and households “doubling up” or sharing housing are both at a greater risk of homelessness than they were in 2007. They used numbers from 2019, before the COVID-19 pandemic and project that reduced work hours and elevated unemployment will have increased those at risk.
Participants in the consultation process believed those at risk of homelessness in the Consortium would benefit from additional affordable housing, TBRA assistance for housing, and supportive services offering housing counseling, fair housing, credit repair services, and eviction defense.
Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking. The National Resource Center on Domestic Violence reports that
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domestic violence is frequently an immediate cause or precursor to homelessness and housing instability and that more than a third of domestic violence survivors report becoming homeless immediately after separating from their partners. The national Institute of Justice reports that one homeless woman in four is homeless mainly because of her experiences with violence. That violence can include categories of domestic violence, dating violence, sexual assault, stalking or human trafficking.
Participants in the consultation process believed those dealing with fleeing unsafe relationships or living situations, would benefit from supportive services offering housing counseling, mental health services, fair housing, case management services affordable housing and TBRA assistance.
Housing instability and homelessness prevention. Housing instability encompasses a number of challenges, such as having trouble paying rent, overcrowding, moving frequently, staying with friends or family, or rent burden. Those populations affected by housing instability can include children and people who have spent time in prison. According to the US Department of Health and Human Services, those affected by housing instability may live in substandard housing subjecting them to health and safety risks, live in overcrowded units, or forced moves that may result in homelessness.
Participants in the consultation process believed that housing instability, often caused by rent burden, and preventing homelessness was best addressed with affordable rental housing, TBRA assistance, non-congregate shelter, and supportive services including job training and employment services, housing search and housing counseling services, childcare, mental health services, outreach services, and case management.
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HOME-ARP Activities
The Consortium will solicit applications from developers, service providers, and/or nonprofits to administer eligible activities and/or develop shelter and housing. A Notice of Funds Available (NOFA) will be issued. The NOFA will, at a minimum, specify eligible activities, eligible applicants, minimum and maximum funding amounts, application thresholds, and will provide instructions on how to submit a proposal. The City will not directly administer HOMEARP activities beyond program administration and planning and no developers, service providers, and/or nonprofits are responsible for program administration and planning on behalf of the City.
The Consortium has an agreement in place for the method in which the HOME funds are to be allocated between the Town of Apple Valley and the City of Victorville. Both the Town and the City have agreed to apply that same allocation formula to the available HOME-ARP funding.
Uses of HOME-ARP Funding
Activity
Funding
Allocated by
Apple Valley
Funding
Allocated by
Victorville
Percent of
Allocation
Statutory
Limit
Non-congregate Shelter
Affordable Rental Housing
Tenant-based Rental Assistance
Supportive Services $816,485 $1,660,386
Nonprofit Operating Assistance 5%
Nonprofit Capacity Building 5%
Administration and Planning $144,086 $293,009 15% 15%
Subtotals $960,571 $1,953,395
Total HOME-ARP Allocation $2,913,966
Rationale for Uses of HOME-ARP Funding
The Consortium considered all of the eligible activities for this funding and the qualifying populations to be served, assessed the available resources and the gaps present, in making its decision about how the limited funds would most benefit the community. It also considered the Wellness Center, opening soon in Victorville. The project will offer a low-barrier emergency shelter with a recuperative care facility, medical clinic, interim housing and supportive services.
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To address the needs within the community, the Consortium will allocate 85 percent of its HOME-ARP funds to Supportive Services designed to assist the homeless and those at risk of becoming homeless. It is the intent to have many of the services either offered or based at the Wellness Center, serving homeless and those at risk of homelessness. The remaining 15 percent will be used the administer the HOME-ARP program.
HOME-ARP Housing Production Goals
The Apple Valley-Victorville Consortium will not produce any housing units with the HOMEARP funds.
Preferences
The Apple Valley-Victorville Consortium will not provide preferences to any population or subpopulation.
HOME-ARP Refinancing Guidelines
The Apple Valley-Victorville Consortium does not plan to use HOME-ARP funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
Therefore, refinancing guidelines pursuant to 24 CFR 92.206(b) are not applicable to this HOME-ARP Allocation Plan.
APPENDIX A
Citizen Participation
Summary of Citizen Participation Comments
Allocation Plan Public Review and Comment Period September 16 to October 16, 2022, for the City of Victorville and September 23 to October 23, 2022.
To be completed after the Public Comment period has ended.
Public Hearing before Victorville City Council on October 18, 2022, and Apple Valley Town Council on November 8, 2022.
To be completed after the Public Hearing is held.
APPENDIX B
SF-424 Grant Application,
SF-424B Assurances,
SF-424D Assurances, and
Allocation Plan Certifications