Staff Report Item 14
Staff Report Item 14
TO: East Bay Community Energy Board of Supervisors
FROM: Nick Chaset, CEO
SUBJECT: Draft EBCE Budget Fiscal Year 2022-2023 (Informational Item) DATE: May 18, 2022
________________________________________________________________________ Recommendation
Receive and review the draft budget for fiscal year 2022-2023.
Background and Discussion
EBCE’s fiscal year is from July 1 through June 30. Staff is presenting a proposed draft budget for fiscal year 2022-2023.
This budget presents changes to EBCE’s value proposition by recommending an increase from 1% to 3% discount relative to PG&E rates for EBCE’s Bright Choice product and decreasing the premium of the Renewable 100 product from $0.01 to $0.0075.
This budget also presents a large net position surplus as a base-case scenario. Staff is recommending a method to manage this surplus to increase EBCE’s value to the community through four processes:
1. Significant contributions to working capital and reserves to ensure agency solvency in the event of possible risk contingencies
2. Increase value proposition customer discount and establish on-bill credits as levels of net position surplus are realized through the year
3. Increase renewable procurement with short and long-term investments
4. Meaningful increases to Local Development programs and donation of a local public health grant to treat a common ailment of fossil fuel combustion—asthma.
This presented budget is based on feedback from a draft version presented at the Finance, Administrative, and Procurement Committee on April 15, 2022. The budget outlines staff’s best expected estimates for costs and revenues anticipated for the next fiscal year based on load, market prices, and PCIA charges.
Staff Report Item 14
Summary of Draft EBCE Budget FY 2022-2023
FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 895,427,000 508,636,000 551,368,000
Uncollectables (17,908,000) (8,939,000) (10,045,000)
Other Operations Revenue (6,229,000) 0 7,448,000
Total Operating Revenue 871,290,000 499,697,000 548,771,000
EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 565,675,000 442,337,000 463,253,000
Energy Operating Services 11,262,000 12,240,000 11,478,000 Total Energy Operating Expenses 576,937,000 454,577,000 474,731,000 Overhead Operating Expenses
Personnel 15,712,000 10,171,000 8,204,000
Marketing & Communications 2,876,000 1,686,000 1,294,000 Legal, Policy, & Regulatory Affairs 1,988,000 1,592,000 1,173,000 Other Professional Services 2,292,000 850,000 901,000
General & Administrative 3,884,000 2,961,000 2,465,000
Depreciation 180,000 60,000 59,000
Total Overhead Operating Expenses 26,932,000 17,320,000 14,096,000 Total Operating Expenses 603,869,000 471,897,000 488,827,000
NON-OPERATING ACTIVITY
Total Non-Operating Revenue 277,000 1,692,000 2,649,000
NON-OPERATING EXPENSES
Borrowing Interest 1,440,000 898,000 907,000
Local Development Funding 20,600,000 8,475,000 8,475,000 Grant 15,000,000 0 0
Capital Expenditures 7,000,000 5,500,000 8,519,000
Total Non-Operating Expenses 44,040,000 14,873,000 17,901,000 NET NON-OPERATING ACTIVITY (43,763,000) (13,181,000) (15,252,000) TOTAL REVENUES 871,567,000 501,389,000 551,420,000
TOTAL EXPENSES 647,909,000 486,770,000 506,728,000
NET INCREASE(DECREASE) IN POSITION 223,658,000 14,619,000 44,692,000
RESERVE BALANCE
Beginning Reserve Balance TBD 90,218,000 90,218,000
# Operating Target (50%) 323,955,000 243,385,000 253,364,000 Staff Report Item 14
Fiscal Impact
This establishes the forecast of EBCE’s fiscal position for the next 12 months with a positive net position.
Attachments
A. Presentation of the Draft EBCE Budget FY 2022-2023
Draft Budget Review for
Fiscal Year 2022-2023
MAY 18, 2022
PRESENTED BY:
NICK CHASET, CEO
Attachment Staff Report Item 14A
2 Executive Summary
• In the face of rising energy costs, EBCE is able to continue to serve our local community and customers with cost competitive & cleaner energy while providing local jobs and equitable programs.
• Rates are up and PCIA is down, driven by a historic increase in market energy prices starting in 2021 and forecasted to persist in 2022-2023.
• With EBCE rates indexed to PG&E rates, we are forecasting significant headroom to operate and a strong financial surplus, helping to offset calendar 2021, which operated at a loss. • Draft budget includes the following:
o Significant contributions to working capital and reserves o Improvements to the Value Proposition (increased discount and bill credits) o Increased renewables procurement (short-term and new long-term investments) o Meaningful increase to local development budget and local public health grant o Expand on staff expertise, build more depth, and scale operations further o Investment in EBCE's new headquarters in a downtown Oakland DAC Attachment Staff Report Item 14A
3 Summary Draft Budget for Fiscal Year 2021-2022
Notes:
YTD* reflects actuals through March 31, 2022
Net Position through FY March 31, 2022: ($22.8MM)
FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Total Operating Revenue 871,290,000 499,697,000 548,771,000
EXPENSES & OTHER USES
Total Energy Operating Expenses 576,937,000 454,577,000 474,731,000 Total Overhead Operating Expenses 26,932,000 17,320,000 14,096,000 Total Operating Expenses 603,869,000 471,897,000 488,827,000
NET OPERATING POSITION
NON-OPERATING ACTIVITY
Total Non-Operating Revenue 277,000 1,692,000 2,649,000 Total Non-Operating Expenses 44,040,000 14,873,000 17,901,000 NET NON-OPERATING ACTIVITY (43,763,000) (13,181,000) (15,252,000) TOTAL REVENUES 871,567,000 501,389,000 551,420,000
TOTAL EXPENSES 647,909,000 486,770,000 506,728,000
NET INCREASE(DECREASE) IN POSITION 223,658,000 14,619,000 44,692,000
RESERVE BALANCE
Beginning Reserve Balance TBD 90,218,000 90,218,000
# Operating Target (50%) 323,955,000 243,385,000 253,364,000 Attachment Staff Report Item 14A
4 Draft Budget Base Case Assumptions
Revenues
• Increase to customer value proposition by
o Bright Choice from 1% to 3% discount to PG&E
o R100 from $0.01 to $0.0075 above PG&E
o Estimated revenue reduction of $18.6MM
• $50 bill credit applied to all CARE & FERA customers in Q1/Q2 of FY 22-
23, totaling an estimated $6.25MM in one time bill
savings
• Assumes current rates and PCIA are unchanged
through 2022
• Rates and PCIA for 2023 are non-stressed, or as
forecasted, energy rates
• 2.0% uncollectable rate
• No recognition of GASB 62 revenue ($15,814,000)
• Non-operating revenue assumes 0.25% interest
earned on treasury backed cash balance accounts
Energy Costs
• Costs are derived from a blend of contracted and
open positions for all energy, attributes, and RA
o Open prices are non-stressed, or as forecasted
• Renewable Energy has additional 5% above recent
board approved calendar 2022 and 2023 Bright
Choice targets.
o 2022: Renewables 45% --> 50%; CF 63% --> 68%
o 2023: Renewables 49% --> 54%; CF 66% --> 71%
o Adds $3.3MM to costs (Each 1% is ~$667,000)
Other Costs
• Additional staffing requirements of 19 FTE
• New building use date assumed in January 2023
o $7MM capital improvement costs
• Program funding increased by 143% to $20.6MM
• $15MM for UCSF Children’s Hospital Grant
Attachment Staff Report Item 14A
5 Draft Budget Proposed Surplus Allocations
Net Position Estimated at $223.7MM
Proposed Budget Surplus Waterfall Allocation:
1) Working Capital Needs: $50MM*
2) Reserve Account Funding: $75MM*
3) 50/50% split of any excess to:**
o Incremental Long-Term Renewable Energy/Clean Energy Storage Investments: ~$50MM o One-time On-Bill Credits to Customers: ~$50MM
*Allocations to be made after the end of the fiscal period ending June 30, 2023 **Assuming a budget surplus that is materially consistent with this forecast, staff would plan for an even allocation. Formal action would be brought forth to the board in Q3 of the fiscal year (Jan-Mar 2023) to formally adopt in conjunction with a mid-year budget update. This timing would allow for staff to have good visibility into calendar 2023 rates and forecasted surplus.
Attachment Staff Report Item 14A
6 Energy Price Risk Scenarios
• In a rising energy cost environment, indexing to PG&E rates, creates more headroom for EBCE to operate.
However, in addition to customer energy costs increasing, it increases EBCE energy costs, reserve requirements, and general operating risk
• In a low energy price environment, indexing to PG&E rates, reduces headroom for EBCE to operate. Customer energy costs are going down and EBCE faces considerable competitive rate pressure. • From a budgeting perspective, a mismatch of forecast and actuals presents considerable risk:
• Scenario 1: Rate forecasts are low and actual energy prices are high o Hedges perform well but open position is costly
o Rates/PCIA will adjust favorably next year but we have a very significant working capital drain bc rates may not be sufficient to cover energy costs, creating near-term liquidity risk. • Scenario 2: Rate forecasts are high and actual energy prices go down o Hedges perform poorly but open position is at a low cost o Rates/PCIA will adjust unfavorably next year. Near term liquidity and net position are strong, but we have to reserve for future corrections due to overcollections.
Attachment Staff Report Item 14A
7 Draft Budget Energy/Rate/PCIA Scenarios
• While no forecast proves to be fully reliable, EBCE evaluates a number of short and long-term forward price curves through 3rd parties and further computationally simulates risk on multiple curves. The curves reflect a variety of renewable generation, storage adoption, climate, and policy scenarios. • The current base case draft budget is based on forward energy costs over the fiscal period averaging at $78.39 • If prices were to decrease approximately to simulated P5 levels, which average to $55.52, the forecasted net position would reduce by about $154.2MM
• If prices were to increase to simulated P95 levels, which average to $126.40, the forecasted net position would increase by about $63.1MM
• Under a highly stressed scenario, if rates and PCIA were set at the forecasted P5 scenario, but then actualize at P95 actuals, the estimated net position could go as low as much as negative $135.2MM Base P5 P95 Stress
Net Revenues 871,290,000 614,622,000 1,036,589,000 614,622,000 Energy Costs 565,675,000 463,173,000 667,830,000 667,830,000 All Other Costs 81,957,000 81,957,000 81,957,000 81,957,000 Net Position 223,658,000 69,492,000 286,802,000 (135,165,000) Attachment Staff Report Item 14A
8 Energy Prices and Risk Bands (P5-P95)
Attachment Staff Report Item 14A
9 Draft Budget Operating Revenues
• Increase to value proposition
o Bright Choice from 1% to 3% discount to PG&E
o Renewable 100 from $0.01 to $0.0075 above PG&E
o $50 bill credit to all CARE & FERA customers in July-Sept 2022, shown as Other Operations Revenue reduction
• Assumes current rates and PCIA are unchanged through 2022 • Rates and PCIA for 2023 are non-stressed, or as expected, energy rates • 2.0% uncollectable rate
• No recognition of GASB 62 revenue ($15,814,000)
• Current Year Other Operations Revenue is CAPP payments FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 895,427,000 508,636,000 551,368,000
Uncollectables (17,908,000) (8,939,000) (10,045,000)
Other Operations Revenue (6,229,000) 0 7,448,000
Total Operating Revenue 871,290,000 499,697,000 548,771,000 Attachment Staff Report Item 14A
10 COMPARISON OF CCA RATES OVER TIME
CCA 2020 2021 2022
2022
w/new value
proposition
EBCE -1.00% -1.00% -1.00% -3.00%
MCE Clean Energy 2.94% 18.30% -12.69%
CleanPowerSF -1.00% 2.25% 0.00%
San Jose Clean Energy -1.00% -0.25% 0.00%
Clean Power Alliance 3.99% 18.41% 22.59%
CCA 2020 2021 2022
2022
w/new value
proposition
EBCE 8.51% 9.13% 6.79% 4.85%
MCE Clean Energy 10.96% 27.06% -5.90%
CleanPowerSF 7.51% 11.38% 6.79%
San Jose Clean Energy 7.51% 8.69% 8.00%
Clean Power Alliance 23.98% 28.68% 22.52%
Base Product comparison to IOU for prominent
residential rate
100% Renewable Energy Product comparison to IOU for
prominent residential rate
Attachment Staff Report Item 14A
11 Value Proposition Changes
• The proposed changes to the value proposition are intended to:
o Establish a discount rate that is sustainable through future market cycles, which is essential in establishing a clear and consistent value proposition to our customers o Prioritize CARE/FERA customer with pre-emptive bill credits ($6.25MM immediate savings) o Cautious fiscal management by ensure a budget surplus before issuing a more expansive customer-wide bill credit
Change in Value Proposition Relative to PG&E
Bright Choice Discount Customer Savings (MM) Renewable 100 Premium Customer Savings (MM) Total Savings (MM) 1% $7.10 $0.0075 $4.40 $11.50
2% $14.20 $0.0050 $8.80 $23.00
3% $21.30 $0.0025 $13.20 $34.50
4% $28.40 $0.0000 $17.60 $46.00
Attachment Staff Report Item 14A
12 Draft Budget Energy Expenses
Energy Costs
• Costs are derived from a blend of contracted and open positions for all energy, attributes, and RA
o Open prices are non-stressed, or as forecasted
o FY 22/23 are 30% higher than FY 21/22 on
average
• Renewable Energy has additional 5% above recent
board approved calendar 2022 and 2023 Bright Choice
targets.
o 2022: Renewables 45% --> 50%; CF 63% --> 68%
o 2023: Renewables 49% --> 54%; CF 66% --> 71%
o Adds $3.2MM to costs (Each 1% is ~$620,000)
• Note: We are in a period of historically high energy
pricing and significant uncertainty/volatility
o Forecasted market energy costs in 2022 and
2023 are approximately double the historical 12-
year average
FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Energy Operating Expenses
Cost of Energy 565,675,000 442,337,000 463,253,000
Data Management/Customer Service 7,847,000 8,645,000 8,002,000 PG&E Service Fees (Billing/Metering) 2,719,000 2,752,000 2,712,000 CAISO Scheduling Coordinator 696,000 843,000 764,000
Energy Operating Services 11,262,000 12,240,000 11,478,000 Total Energy Operating Expenses 576,937,000 454,577,000 474,731,000 Attachment Staff Report Item 14A
13 Draft Budget Overhead Expenses
• Personnel costs will be discussed more in-depth on the next slide • Increase in Marketing costs is Local Development marketing activity needs • Increase in Legal, Policy , & Regulatory affairs is due to a couple of factors o Possible membership expansion (Stockton)
o Additional volume of consulting/vendor agreements and power contracts • Larger staffing demand, from Personnel costs, increases in Professional Services with HR/recruiting and additional project support
• Increase to G&A is primarily driven by expected increase operating expenses related to the new building
• Depreciation increases due to new building use expected in January, 2023 FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Overhead Operating Expenses
Personnel 15,712,000 10,171,000 8,204,000
Marketing & Communications 2,876,000 1,686,000 1,294,000 Legal, Policy, & Regulatory Affairs 1,988,000 1,592,000 1,173,000 Other Professional Services 2,292,000 850,000 901,000
General & Administrative 3,884,000 2,961,000 2,465,000
Depreciation 180,000 60,000 59,000
Total Overhead Operating Expenses 26,932,000 17,320,000 14,096,000 Attachment Staff Report Item 14A
14 Draft Budget Overhead Expenses—Personnel
• FY 2020-21 Budget was established at 37 FTE
o No COLA was allocated that fiscal year
o Personnel transitions left vacancies
• FY 2021-22 Budget was initially approved at 43 FTE and expanded mid-year to 49 o 2.5% COLA and up to 5% merit-based/promotional compensation allotted o Currently at 45 FTE and interviewing for an additional 4 roles • FY 2022-23 Budget seeks to increase to 68 FTE to accommodate additional work requirements in all areas. Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 5 Marketing, 4 Local Programs, 3 Operations, 3 Technology, 2 Power Resources, 2 Legal FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Salaries & Wages 11,598,000 7,058,000 6,468,000
Retirement 1,544,000 993,000 879,000
Health Care/Benefits 2,292,000 1,196,000 614,000
Payroll Expenses 277,000 174,000 131,000
Total 15,711,000 9,421,000 8,092,000
Attachment Staff Report Item 14A
15 Draft Budget Overhead Expenses—Marketing &
Account Services
• Data Manager: Change orders to data management system, reduced through contract negotiations this year
• Required Mailings: Joint Rate Mailer w/ PG&E, Power Content Label, New Account Noticing
• Advertising: Active community presence activities, sponsorships, local events • Promotional Items: Give away items
• Communications: Public relations, media, newsletters, consultants, minor software needs (like for website maintenance and updates)
• $1.4MM of the $2.9MM is Local Development Marketing needs and is distributed across the categories
FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Data Manager 100,000 185,000 65,000
Required Mailings 520,000 395,000 515,000
Advertising 986,000 569,000 497,000
Promotional Items 25,000 10,000 23,000
Communications 1,233,000 455,000 386,000
Total 2,864,000 1,614,000 1,486,000
Attachment Staff Report Item 14A
16 Draft Budget Overhead Expenses—Legal, Policy, &
Regulatory Affairs
• Legal Consultants: Outside general counsel for procurement, analysis, and general operations
• Legislative Consultants: Retainer for Weideman Group legislative advocacy • Other Consultants: Economic analysis in regulatory and legislative cases and communications consultant
• Sponsorships & Memberships: Occasional sponsorships for policy related events and Bar dues
FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Legal Consultants 1,635,000 1,315,000 1,315,000
Legislative Consultants 132,000 132,000 132,000
Other Consultants 144,000 120,000 105,000
Sponsorships & Memberships 75,000 25,000 25,000
Total 1,986,000 1,592,000 1,577,000
Attachment Staff Report Item 14A
17 Draft Budget Overhead Expenses—Other Professional
Services
• Accounting: Accounting and auditing for financial compliance • Human Resources Consulting: Support for additional HR demand for increased staffing recruitment, professional development, and training • IT Consulting: Technical network assistance
• Other Consultants: Technical consulting for Power Resources and Technology & Analytics; as well as operational compliance support and other various tasks FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Accounting 265,000 250,000 258,000
Human Resources Consulting 1,000,000 100,000 33,000
IT Consulting 75,000 40,000 68,000
Consultants 953,000 460,000 444,000
Total 2,293,000 850,000 803,000
Attachment Staff Report Item 14A
18 Draft Budget Overhead Expenses—General & Administrative • Operational Expenses: Service fees, supplies, membership dues, operational services, and other relevant G&A
• New Building Expenses: Expected costs to operating within the new building, such as general maintenance, insurance requirements, and additional stocking materials • Software, Subscriptions, SaaS: Increase covers additional software needs for Power Resource and Technology operations, as well as essential subscriptions for ongoing operations • Rent & Utilities: Decrease because paying rent for only part of year, but expect some increase in utilities with new building space
• Conferences & Professional Development: Trainings, conferences, and related expenses • Board & Director Fees: Monthly stipends for board members FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
Operational Expenses 1,048,000 877,000 818,000
Software, Subscriptions, SaaS 2,099,000 1,406,000 1,297,000 Small Equipment 210,000 107,000 56,000
Rent & Utilties 330,000 471,000 521,000
Conferences & Prof. Development 130,000 40,000 29,000
Board & Director Fees 65,000 60,000 40,000
Total 3,882,000 2,961,000 2,761,000
Attachment Staff Report Item 14A
19 Draft Budget Non-Operating Activity
• Non-Operational Revenue: Interest earned on Treasury backed cash account balances (estimated at 0.25%) and BlocPower loan (5.5% on $1.0MM)
• Other Non-Operational Revenue: SaaS services provided to SVCE • Borrowing Interest Expenses: Expected costs associated with expanded credit facility • Local Development Funding: Capital transfer to Local Development Fund • Grant: Proposed grant to UCSF Benioff Oakland Children’s Hospital for EBCE Pediatric Asthma partnership
• Capital Expenditures: New building improvement costs to allow for use FY 2022-23 FY 2021-22 FY 2021-22
DRAFT BUDGET BUDGET YTD* + EST
NON-OPERATING REVENUE
Interest Income 262,000 798,000 150,000
Grants 0 894,000 2,173,000
Other Non-Operating Revenue 15,000 0 326,000
Total Non-Operating Revenue 277,000 1,692,000 2,649,000
NON-OPERATING EXPENSES
Borrowing Interest 1,440,000 898,000 907,000
Local Development Funding 20,600,000 8,475,000 8,475,000 Grant 15,000,000 0 0
Capital Expenditures 7,000,000 5,500,000 8,519,000
Total Non-Operating Expenses 44,040,000 14,873,000 17,901,000 NET NON-OPERATING ACTIVITY (43,763,000) (13,181,000) (15,252,000) Attachment Staff Report Item 14A
The Problem: Across the communities EBCE serves, a staggering 18% of children suffer from asthma – 33% above the statewide average. The highest rates (up to 21% in Ashland and Cherryland) are concentrated along the 880 and 580 corridors. In West Oakland, 1 in 2 new cases of pediatric asthma is attributable to high levels of air pollution from fossil fuel combustion in cars and trucks.
Why EBCE: Since our founding, addressing the legacy of fossil fuel pollution has been one our foundational goals. EBCE has invested tens of millions into new, local clean energy projects – from wind turbines to rooftop solar + storage to electric vehicle to mitigate pollution. And now is the right time to consider other opportunities to systematically address the effects of air pollution on our most vulnerable neighbors.
The Opportunity: Partner with UCSF Benioff Children’s Hospital Oakland (BCH Oakland) – the East Bay’s only Children’s Hospital – to invest $15M to fund the development of a world class pediatric asthma program focused on serving children across the East Bay (and beyond) Grant to Establish a World Class Pediatric Asthma
Program to Serve the East Bay
Attachment Staff Report Item 14A
Through the creation of the East Bay Community Energy Asthma Program, UCSF Benioff Children’s Hospital Oakland will secure the staff, equipment and spaces needed to reach deep into our community and provide underserved families with world-class asthma care and education.
More specifically, the program will:
• More powerfully connect BCH Oakland’s existing asthma care delivery channels – including the Pulmonology Clinic, primary care, inpatient care, emergency department and new allergy services – into a well-coordinated and easily accessible program that connects families with more preventative and timely treatment services.
• Provide patients with access to the social workers, mental health care providers and patient navigators they need to effectively manage their condition.
• Expand education and community outreach, including through local schools and local primary care providers, to connect patients to better care and additional management resources. • Prioritize prevention through BCH Oakland’s multi-disciplinary team, by pre-empting common triggers such as allergies and mental health challenges.
Grant to Establish a World Class Pediatric
Asthma Program to Serve the East Bay
Attachment Staff Report Item 14A
Grant to Establish a World Class Pediatric
Asthma Program to Serve the East Bay
This investment will also endow the East Bay Community Energy Distinguished Professorship in Asthma.
This endowed professorship would allow UCSF Benioff Children’s Hospitals to appoint a nationally recognized physician scientist to play a leadership role in the East Bay Community Energy Asthma Program.
Specifically, the Distinguished Professor will:
• Collaborate with leading experts from across UCSF’s pulmonology, allergy and immunology divisions to conduct research focused on improving outcomes for children with asthma across the East Bay. • Conduct research in underexplored priority areas. The exact focus will depend on the physician scientist appointed/recruited. Possible areas of investigation may include the association and interaction of asthma and sickle cell disease; and how environment, stress and genetics contribute to the higher rates and worse outcomes of Black children affected by asthma.
Next Steps: If the East Bay Community Energy Board of Directors approves the allocation of funding towards this new initiative, EBCE staff will engage with UCSF Children’s Hospital Oakland to develop a detailed proposal and associated grant agreement that will be brought back to the Board for review and approval at some point in 2022 (or 2023 at the latest).
Attachment Staff Report Item 14A
23 Draft Budget: Local Development Fund
• 2022-2023 Local Development budget set at
$20.6M
• Allocating budget for capital
intensive infrastructure development
projects
• Allocating EBCE capital to reduce cost of
ownership for building and vehicle
electrification
• Initiating programs to accelerate heavy and
light duty vehicle adoption as well as
eMobility
• Increased funding for Community Grants
• $1.4M in Program marketing in the MAS
budget
• Unspent Local Development
budget carries forward year to year
FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-2020
BEGINNING BALANCE 13,470,962 10,067,572 4,870,737 0
REVENUE & OTHER SOURCES
Transfer from Operating Fund 20,600,000 8,475,000 6,340,000 6,275,000 Grants/Credits - - 395,000 -
Total Revenues & Other Sources 20,600,000 8,475,000 6,735,000 6,275,000
EXPENSES & OTHER USES
Actual Program Expenses - 1,571,610 1,538,165 1,404,263 Expected Remaing Expenses 34,070,962 3,500,000 - -
Total Expenses & Other Uses 34,070,962 5,071,610 1,538,165 1,404,263 ENDING BALANCE - 13,470,962 10,067,572 4,870,737
Local Development Areas of Emphasis Budget Allocation
Transportation Electrification $12.75M
Building Electrification $4.7M
Energy Efficiency No Direct EBCE Cost
Community Resilience/Local RE $660k
Community Grants $2.25M (granted over 3 years)
Sponsorships/Memberships $250k
Attachment Staff Report Item 14A
Transportation Electrification
24 • Transportation is the largest source of emissions of GHG and particulate matter from Light, Medium and Heavy-duty vehicles
• EBCE is developing publicly available charging infrastructure tailored to renters and low-income communities to ensure these residents can transition to EVs (currently developing the first 3 charging hubs)
• Goods movement is particularly important with Port impacts to communities and access through the territory and into the Central Valley
• EBCE will continue assisting Cities to electrify fleets; providing fleet electrification technical assistance and offering to develop and operate charging infrastructure for Cities with "Charging as a Service" product
• With more vehicle models becoming available EBCE will develop programs to facilitate the buying process and make EVs accessible across all customer income levels • Partner with local agencies and local business to increase access to eMobility solutions • Provide capital to reduce cost of ownership through credit enhancements across multiple vehicle classes Attachment Staff Report Item 14A
Charging Infrastructure Deployment
25 Development Capital for Charging Infrastructure
• Equitable Public Fast Charging Hubs($3M)
• Funds to support EBCEs efforts to build a network of public fast chargers across the communities we serve with an emphasis on siting these chargers close to high densities of multi-family housing where home charging is often not accessible
• Medium/Heavy Duty Charging Station pilot ($1M)
• Funds to support investments in fast chargers infrastructure to support goods movement electrification with an emphasis supporting electrification of trucking and drayage • Municipal Fleet Charging as a Service Projects ($2M)
• Funds to support municipal fleet electrification through provision of Charging as a Service Fleet Technical Assistance
• Municipal Fleet TA ($250k)
• M/H Duty Fleet TA ($500k)
Attachment Staff Report Item 14A
Electric Vehicle and eMobility Innovation Fund
26 Invest in vehicle adoption and eMobility
• Lower costs and improve experience to accelerate EV adoption with emphasis on access for low and moderate income consumers ($2M)
• Funds to support one or more projects to drive consumer adoption of EVs. Ex: supporting electrification of rideshare services to direct consumer leasing/purchase of EVs • Heavy duty loan loss reserve / credit enhancement to reduce barriers to electric Drayage ownership ($2M)
• Funds to support one or more projects to directly support conversion of older diesel drayage to all electric • Partner with local transit agencies and local businesses to increase access to microMobility and eMobility solutions ($2M)
• Funds to support one or more projects to increase access to electric microMobility/eMobility The specific details of each of these initiatives are under development and will be brought to the Board as they are ready to implement
Attachment Staff Report Item 14A
Community Resilience
27 Continue to deploy Energy Resilient Public Facilities across EBCE communities
• Independent Engineer for Phase 2 Municipal Critical Facility Projects ($500k) • EBCE PPA development and negotiation for Phase 1 Procurement ($100k) • Salesforce PPA billing capability ($60k)
Phase 1 Update: EBCE is finalizing the Phase 1 portfolio of projects and will be issuing RFO for Resilience projects in June. Initiating Phase 2 enrollment with other Cities to build on Phase 1 success and deliver more resilience across the community.
Attachment Staff Report Item 14A
Energy Efficiency
28 Launch and run CPUC Funded Energy Efficiency Program • Launch Commercial pay for Performance Program Pending approval of EBCE AL • 3-year Program budget of $13.5M ($4.5M/year)
• Expected CPUC Approval July/August
• Planned program launch within 6 months of CPUC approval • Incentives paid on measured, cost-effective savings
• Higher payments during peak periods
• Program will target combined demand response and energy efficiency installations Commercial P4P Pilot learnings: Pilot program over-subscribed, incentives to be paid 12 months after project completion. Implementors awaiting additional EE funds.
Attachment Staff Report Item 14A
Building Electrification
29 Electrifying buildings is key to meeting climate action plans and improving indoor air quality.
LMI Electrification
• Year 2 of BlocPower funding commitment ($650k)
• Scaling BlocPower program upon phase 1 success ($500k) Clean Cooking with Induction
• Induction lending Program - ($200k)
• EBCE HQ Clean Cooking Demonstration Center - ($500k)
• Local point of sale partnership for residential adoption ($200k) • Commercial electrification Technical Assistance ($150k) Accelerating Building Electrification
• Municipal Electrification TA ($250k)
• Building Electrification Credit enhancement ($2M)
• BE Workforce Development ($250k)
Attachment Staff Report Item 14A
Community Grants
30 EBCE will continue working with community-based organizations and local businesses to deliver benefits across the EBCE service area
• Community Grants ($2.25M over 3 years)
Funding
Category
Transportation
Electrification
Building
Electrification
Community
Resilience
Energy
Efficiency
Program
Enrollment
Workforce
Development
Education /
Awareness
• Staff will work with BOD
and CAC to determine
funding priorities and
manage grants
Attachment Staff Report Item 14A
Thank You!
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Attachment Staff Report Item 14A