Central Coast Community Energy (3CE) Operations Board
April 12, 2023

Operations Board of Directors
April 12, 2023
10:30 A.M.

Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940

REMOTE LOCATION VIA TELECONFERENCE
Any interested parties or community members may attend, and participate in, the meeting at the following addresses where Board members may also join the meeting from:

County of Santa Cruz
701 Ocean Street, Third Floor Training Room
Santa Cruz, CA 95060
City of San Luis Obispo
City Hall
990 Palm Street, Council Chambers
San Luis Obispo, CA 93401
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454
County of Santa Barbara
County Administration Building
105 East Anapamu Street,
Board of Supervisors Conference Room
Santa Barbra, CA 93101
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
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Or join by phone:
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If you have anything that you wish to be distributed to the Board, please provide 15 copies to a member of 3CE staff or the Board Clerk, who will distribute the information to the Board members and staff.

The public may comment on the consent agenda and matters not listed on the agenda but within the Board's jurisdiction at the opening of the meeting. The Board may not take action at this meeting on any item not listed on the agenda other than to refer the matter to staff or set it for a future meeting. The public may comment on a specific item listed on this agenda when the Board considers that item.

Speakers are limited to 3 minutes each.

In addition, members of the public may request and receive copies without undue delay of any documents that are distributed to the Board, unless there is a specific exemption under the Public Records Act that prevents the disclosure of the record. (Cal. Gov’t Code Section 54957.5) In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Board in advance of a meeting and that relate to an agenda item will be made available at 3CE’s offices located at 70 Garden Court, Suite 300, Monterey, CA 93940 during normal business hours and are also available on the 3CE website located at: https://3cenergy.org/meetings-agendas/

Operations Board
AGENDA

April 12, 2023, 10:30 am
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
Welcome & Roll Call
Pledge of Allegiance
Corrections or Additions
The CAC Clerk will announce agenda corrections and proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Sections 54954.2 of the California Government Code.

Public Comment on the Consent Agenda and Matters Not Listed on the Agenda The public may provide comments on any item within the CAC's jurisdiction but not on the Agenda. The CAC may not take action at this meeting on any item not listed on the Agenda other than to refer the matter to staff or set it for a future meeting. Speakers are limited to 3 minutes each.

1. CONSENT AGENDA

1. Approve Minutes from the March 8, 2023 Meeting of the Operations Board of Directors

2. Receive FY 2021-2022 Energy Programs Portfolio Evaluation

3. Receive Energy Programs Update

4. Receive Treasurer's Report

2. REGULAR AGENDA

1. CEO Report
a. Staffing Update
b. San Luis Obispo County Votes to Seek Membership in 3CE c. Bills Addressing Interconnection Delays
d. State Budget Energy Trailer Bill
e. Investigation Of Demand Management Opportunities
f. Real-Time Pricing Pilots
g. Energy Market Update

2. Approve and Authorize CEO to Execute an Agreement with Optony, Inc. to Provide Member Agency Fleet Electrification Services for a Total Not to Exceed Amount of $450,000 and a Term ending on September 30, 2024

3. Delegate Authority to the CEO to Participate in Pacific Gas & Electric’s and Southern California Edison’s Spring 2023 PCIA Market Offer for Long-Term Renewable Energy Credit Products; and to Execute Agreements for up to the Awarded Volumes in Amounts Not-to-Exceed a total of $177,000,0000 with Terms of at Least 10 Years

3. CLOSED SESSION

1. Closed session under Government Code § 54956.9(1)(d) relating to two items of existing litigation:
i. East Bay Community Energy et al. v. California Public Utilities Commission (A167425) Central Coast Community Energy and City of San Jose et al. v. Public Utilities Commission of the State of California (H050016)
ii.

Regular Meeting ofthe Operations Board of
Directors
Wednesday, March 8, 2023
10:30 PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
County of Santa Cruz
701 Ocean Street, Third Floor Training Room
Santa Cruz, CA 95060
City of Watsonville
Watsonville Public Library
275 Main Street, Suite 100, Meeting Room,
Watsonville, CA 95076
City of San Luis Obispo
City Hall
990 Palm Street, Council Chambers
San Luis Obispo, CA 93401
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454
County of Santa Barbara
County Administration Building
105 East Anapamu Street,
Board of Supervisors Conference Room
Santa Barbra, CA 93101

MINUTES
The meeting was called to order at 10:31 AM with members attending in 5 locations and a quorum established.

Directors Present:

Monterey Headquarters: Espinosa, Guertin, Pia, Uslar
County of Santa Cruz: Vice Chair Goldstein, Huffaker, Palacios City of Watsonville: McCloud, Reynolds
City of San Luis Obispo: Chair Johnson, Ty Lewis
City of Santa Maria: Stillwell, Vidro
County of Santa Barbara: Imhof, Miyasato
Directors Absent: De La Rosa (arrived at Monterey Headquarters at 11:07am), Harvey, Jim Lewis, Wood (arrived at Monterey Headquarters at 10:57am)
Clerk announced that there were no corrections or additions to the agenda.

The Chair opened the public comment period for the consent agenda and items not on listed on the agenda.

The Chair closed public comment period.

CONSENT AGENDA
MOTION: Moved by Director Miyasato seconded by Director Pia to approve the Consent Agenda.

ACTION: The Motion Carried with a roll call vote: 14/0/6 AYES: Chair Johnson, Vice Chair Goldstein, Espinosa, Huffaker, Imhof, Ty Lewis, McCloud, Miyasato, Palacios, Pia, Reynolds, Stilwell, Uslar, Vidro
NOES: None
ABSENT: De La Rosa, Guertin, Harvey, Jim Lewis, Mendez, Wood

1. Approved Minutes from the January 11, 2023 Meeting of the Operations Board

2. Authorized the CEO to Execute the Edison Electric Institute Master Power Purchase and Sale Agreement with Citadel Energy Marketing LLC
a) Citadel EEI Collateral Annex
b) Citadel EEI Master Agreement

3. Received the Treasurer's Report

REGULAR AGENDA

4. Community Advisory Council's Report
The Chair opened the public comment period.

No Public Comments Received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

5. CEO Report (Discussion Item)
The Chair opened the public comment period.

The following individuals addressed the Board
 Beverly Deschaux
The Chair closed public comment period.

ACTION: Discussion Item; no action required

6. 2021‐2022 Annual Report Presentation
The Chair opened the public comment period.

No Public Comments Received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

CLOSED SESSION

7. Closed session under Government Code § 54956.9(1)(d) relating to one item of existing litigation:
a) CCCE v. Big Beau Solar, LLC (Santa Clara County Superior Court case no 22CV398156) Adjourned at 10:55 AM

Staff Report Item 1.2
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Receive FY 2021-2022 Energy Programs Portfolio Evaluation DATE: 4/12/2023
RECOMMENDATION:

Receive Report on the FY 2021 – 2022 Energy Programs Portfolio Evaluation.

BACKGROUND:

As part of its annual Operating Budget adoption, at its September 2021 meeting, the 3CE Policy Board of Directors approved a budget of $14 million to support the FY 21 – 22 Energy Programs Portfolio. As a best practice and as part of ongoing annual Energy Programs processes, 3CE staff evaluated and developed a report on program activities and performance for the FY 21 – 22 Energy Programs Portfolio.

DISCUSSION/ANALYSIS:

Ongoing energy program evaluation and performance measurement is important to ensuring that 3CE’s energy programs are achieving their goals and objectives while identifying areas for potential improvement within 3CE’s continuing program portfolio.

In the FY 21 - 22 Energy Programs Portfolio Evaluation, program performance was primarily evaluated based on four (4) key performance indicators (KPIs): customer participation, equity, greenhouse gas emissions reduction, and demand. The written program evaluations include a program description, program goals, program performance, staff findings, and recommendations for each program. The evaluation also provides portfolio-wide recommendations regarding program design, equity, program implementation, program outreach, and future portfolio evaluations.

To perform the evaluation, staff leveraged its program management platform (PowerPath) which tracks and reports on available information and existing program metrics and KPIs. To calculate GHG emissions impacts, staff used widely accepted methodology, inputs, and assumptions to estimate emissions reductions for applicable energy programs. In select instances, other data sources were utilized to report on performance or calculate KPIs. Examples of program metrics and/or KPIs include: number of applications received/approved, funds reserved or spent, number of projects completed, number and percent of income qualified applicants, and estimated metric tons of carbon dioxide equivalent (CO2e) reduced.

Included in the FY 21/22 Energy Programs Portfolio Evaluation are the following energy programs:

Program Name
Electrify Your Ride
Electric School Bus
Community Workforce and Innovation Grant
New Construction Electrification
Electrify Your Home
Agriculture Electrification
Reach Code
Planning, Implementation, and Innovation Grant
Medium and Heavy-Duty Electric Vehicle
Light-Duty Electric Vehicle
The ten energy programs evaluated had a total incentive budget of $10.4 million. 3CE paid or reserved incentives totaling $8.3 million. Over 40% of the incentive dollars ($3.5 million) were paid or reserved for equity projects. 3CE supported or incentivized 2,420 electrification projects with 2,815 measures.

These projects contribute to an estimated annual reduction of 3,100 metric tons of CO2e, which is equivalent to removing 670 gas powered passenger vehicles from the road or avoiding more than 8 million gas powered miles driven.

Staff will use the evaluation and report to inform future program design, implementation, budgeting, and marketing and outreach. Likewise, the evaluation process will inform how success is defined, measured, and reported going forward.

FISCAL IMPACT:

Financial impacts related to the implementation of several recommendations have already been incorporated into the FY 22 – 23 Operating Budget. There are no additional budget impacts associated with this item and its recommendation.

CONCLUSION:
3CE has completed its second annual FY 21 – 22 Energy Programs Evaluation and Report. The evaluation will inform future program design and implementation, marketing and outreach, budgeting, and evaluation and reporting.

ATTACHMENT(S):

1. FY 21 - 22 Energy Programs Portfolio Evaluation

Table of Contents
I. Executive Summary.......................................................................................................................3 II. Introduction ..................................................................................................................................3 III. Program Portfolio Overview .........................................................................................................4 IV. Evaluation Approach & Methodology...........................................................................................5 V. Portfolio Evaluation ......................................................................................................................7 Community Programs................................................................................................................... 11 Electrify Your Ride..............................................................................................................................11 Electric School Bus Program...............................................................................................................14 Community Workforce and Education Grant Program.....................................................................16 New Construction Electrification Program........................................................................................17 Electrify Your Home ...........................................................................................................................18 Agriculture Electrification Program ...................................................................................................20 Member Agency Services Programs............................................................................................. 22 Reach Code Program..........................................................................................................................22 Planning Implementation and Innovation Grant Program...............................................................23 Medium and Heavy-Duty Electric Vehicle Program..........................................................................24 Light Duty Electric Vehicle Program ..................................................................................................26 VI. Overarching Recommendations & Conclusion ...........................................................................28 Appendix A – Energy Programs Portfolio Recommendations from FY 20/21 ........................................30 Appendix B – Calculation Inputs, Conversion Factors, and Sources.......................................................37 Appendix C – Supplemental Program Budget Figures............................................................................39

I. Executive Summary
3CE’s mission is to serve our central coast community by providing reliable, affordable, clean electricity, and electrification programs to reduce greenhouse gas emissions and strengthen our local economy. 3CE is working to fulfill its mission by procuring and investing in renewable energy generation and storage resources to meet 60% of 3CE electric demand by 2025 and 100% by 2030.

Another important way 3CE is realizing its mission is by catalyzing regional climate action through energy programs strategically focused on the electrification of transportation, buildings, and agriculture.

These energy programs enable 3CE to help our customers and communities reduce greenhouse gas emissions by switching from vehicles, equipment, and appliances that burn fossil fuels to clean, all-electric versions. This work is not only critical for addressing the climate emergency, but also for driving the local economy and increasing equitable access to the significant benefits of clean energy and electrification.

To understand the impacts of 3CE’s energy programs (if they are achieving their objectives, and how they can be improved), 3CE staff has conducted an evaluation of its FY 21/22 Energy Programs portfolio. 3CE will utilize this evaluation to inform future program design, implementation, budgeting, marketing, and outreach, as well as future evaluations.
3CE Energy Programs portfolio performance was primarily evaluated based on four (4) key performance indicators: customer participation, equity, greenhouse gas emissions reduction, and customer demand.

The written program evaluations include a program description, program goals, program performance, staff findings, and recommendations.

At its September 2021 annual meeting, the 3CE Policy Board of Directors approved a total of $14 million for Energy Programs as part of the FY 21/22 Operating Budget. This included estimated expenses for incentives, professional services, staffing, marketing, and general and administrative.

This evaluation examines ten (10) programs with a total incentive budget of $10.4 million. In total, 3CE spent or reserved $8.3 million of the incentives across the ten programs. Over 40% of the incentive dollars spent were paid or reserved for projects supporting underserved customers or communities.

These projects contribute to an estimated annual reduction of 3,100 metric tons of carbon dioxide equivalent (CO2e), which is equivalent to removing 670 gas powered passenger vehicles from the road or avoiding over 5 million gas powered miles driven.

As evidenced by this report and portfolio evaluation, 3CE’s energy programs had a significant impact in FY 21/22 by enabling thousands of customers to take direct climate action through electrification projects. However, staff recognize the need to continuously improve and refine 3CE’s energy programs to provide customers with better service and more impactful incentives. This report serves as a tool to provide insight into opportunities for future improvement of energy programs for staff to consider.

II. Introduction
Central Coast Community Energy designs, administers, and implements Energy Programs through the Energy Programs Department. Programs operate on a fiscal year basis to catalyze regional climate action through electrification of various sectors including buildings, transportation, and agriculture. To understand the impacts of these programs, if they are achieving their objectives and how they can be improved, 3CE has conducted an evaluation of its FY 21/22 Energy Programs Portfolio. This report will inform future evaluations as well as future program design, implementation, budgeting, marketing, and

outreach. Likewise, the evaluation process will inform how success is defined, measured, and reported going forward.

III. Program Portfolio Overview
3CE Energy Programs primarily provide incentives to customers to catalyze fuel switching and support the purchase and installation of electrification technologies. Some programs provide other services including technical assistance and grant funding to advance community electrification awareness and workforce education and training.
3CE offers Programs in the following focus areas:
 Transportation Electrification – incentives supporting customers in the transition from fossil fuels to electricity for light, medium, and heavy-duty vehicles, including support for electric vehicle charging infrastructure.
 Building Electrification – incentives supporting customers in the transition from fossil fuels to electricity for various end uses in new and existing residential and commercial buildings including domestic hot water, space conditioning, cooking, etc.  Agriculture Electrification – incentives supporting the agricultural industry in the transition from fossil fuels to electricity for various agricultural applications including irrigation pumping, tractors, forklifts, etc.
 Member Agency – incentives supporting electrification for 3CE Member Agencies.  General Support – supporting Member Agencies and the entire service area through planning support and grants to address barriers to building and transportation electrification and bridge gaps in workforce education and training.
3CE’s FY 21/22 Energy Programs evaluated for this report include:

Table 1. Programs Evaluated for this Report, by Focus Area Program Name
Electrify Your Ride
Electric School Bus
Community Workforce and Innovation Grant
New Construction Electrification
Electrify Your Home
Agriculture Electrification
Reach Code
Planning Implementation and Innovation Grant
Medium & Heavy-Duty Electric Vehicle
Light Duty Electric Vehicle
It should be noted that the CALeVIP – South Central Coast Incentive Project (SCCIP), one of 3CE’s programs in the FY 21/22 portfolio, has been left out of this evaluation. The SCCIP, in coordination with the California Energy Commission and other regional partners, is being implemented as a multi-year program to support electric vehicle infrastructure projects that can take years to plan and build. While preliminary data provides insights into SCCIP activities, a full evaluation of this program will be conducted in the future once all program activities have been completed.

IV. Evaluation Approach & Methodology
Program performance was primarily evaluated based on four (4) key performance indicators (KPI):
customer participation, equity, budget utilization, and greenhouse gas (GHG) emissions reduction. Each program was evaluated by measure1 and calculated KPI, if applicable. Individual program evaluations include a program description, program goals, program performance, staff observations, and recommendations. Additionally, responses to past recommendations, including their implementation, are found in Appendix A.

Table 2. Evaluation Metrics and KPIs
Program Customer
Participation
# of Equity
Incentives
Delivered
Total
Incentives
Paid/Reserved
Percent of
Incentive
Budget
Paid/Reserved
Estimated
Annual GHG
Emissions
Reduced
(CO2e)
Electrify Your Ride x x x x x
Electric School Bus x x x x x
Community Workforce
and Innovation Grant x x x
New Construction
Electrification x x x x x
Electrify Your Home x x x x x
Agriculture Electrification x x x x x
Reach Code x
Planning Implementation
and Innovation Grant x x x
Medium & Heavy-Duty
Electric Vehicle x x
x x
Light Duty Electric Vehicle x x x x
As shown above, certain metrics and KPIs are not reported for some programs. This is because these programs do not include relevant and/or applicable design elements or impacts.

GHG Accounting Methodology
For this evaluation, GHG emissions reductions were estimated based on the calculations and conversion factors found in Appendix B. In accordance with best practices, all GHG emissions estimates are displayed using metric tons of carbon dioxide equivalent (CO2e) as the unit of measurement.

GHG emission reductions were not estimated for the following Energy Programs:
 Reach Code
 Community Workforce and Innovation Grant

1 A measure is a particular solution, treatment, action, or item for which a customer may receive an incentive from 3CE. The terms project and measure may be used interchangeably. However, an electric vehicle and an EV charger are separate measures that could be part of an electrification project.

 Member Agency Planning Implementation and Innovation Grant For some energy programs, funds may be reserved prior to the completion of the approved project or measure. In these instances, GHG emissions reduction estimates are provided assuming the approved project or measure will be completed in the future. This pertains to the following energy programs:
 Electric School Bus
 New Construction Electrification
 Agriculture Electrification
 Member Agency Light Duty Electric Vehicle
 Member Agency Medium & Heavy-Duty Electric Vehicle
Equity
For this report, equity is defined as the redistribution of resources and elimination of barriers to promote fair access to energy programs2. 3CE uses a variety of ways to determine equity projects or customers using the terms income qualified, small businesses, title 1 schools, and underserved communities. These terms are used in the FY 21/22 Energy Programs Portfolio and in this report, as defined below.

Income qualified is a designation used in energy programs to administer equity incentives for customers whose household income falls within a percentage (either 400-201% or 200% and below) of the federal poverty level - or, for customers who qualify under the existing rate assistance programs: California Alternate Rates for Energy Program (CARE) Rate or Family Electric Rate Assistance Program (FERA). It should be noted that the CARE and FERA programs utilize 200% or below of the federal poverty level as the eligibility guideline.

Small Businessis defined as set forth in Government Code Section 14837(d)(1) and means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are domiciled in California, and which, together with affiliates, has 100 or fewer employees, and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years, or is a manufacturer, as defined in subdivision (c), with 100 or fewer employees.

Title 1 Schools is a federal designation used in education programs to designate schools in underserved communities, which is based on the level of poverty in a school's attendance area.

Affordable housing is defined as a housing unit that is designated as affordable housing, according to the applicable Authority Having Jurisdiction. This may also include farmworker housing units.

Underserved Communities is defined in the 3CE Underserved Communities Outreach and Engagement Plan 2021/20223 as follows:
3CE considers communities to be underserved if they are under-represented in matters discussed by the agency and if their access to public investments, resources, education, and information

2 https://greenlining.org/publications/reports/2019/making-equity-real-in-mobility-pilots-toolkit/ 33CE Underserved Communities Outreach and Engagement Plan 2021/2022

about energy service is limited. As a rule, these communities face greater barriers to access because of their:
1) Geographic location
2) Cultural and language differences
3) Socioeconomic status
4) Health risks
5) Position within the digital divide
6) Exposure to environmental hazards.

This list, while not exhaustive, represents the key barriers 3CE will seek to address in designing its outreach and programs.

V. Portfolio Evaluation
The ten energy programs evaluated under this evaluation had a total incentive budget of $10.4 million. 3CE paid or reserved incentive requests totaling $8.3 million. Over 40% of the incentive dollars ($3.5 million) were paid or reserved for equity projects. 3CE supported or incentivized 2,420 electrification projects, and 2,815 measures. These projects contribute to an estimated annual reduction of 3,100 metric tons of CO2e, which is equivalent to removing 670 gas powered passenger vehicles from the road or avoiding more than 8 million gas powered miles driven.

The following tables and figures summarize the performance of the FY 21/22 Energy Programs Portfolio.

Additional data and visualizations regarding geographic incentive distribution are available in Appendix B.

Table 3. Energy Program Performance Summary Table
Program Number of
Projects
Total
Budget
Budget
Spent or
Reserved
Est. Annual
Emissions
Reductions
(metric tons CO2e)
Electrify Your Ride 2,319 $2,850,000 $2,947,568 1,964
Electric School Bus 8 $1,000,000 $1,256,259 162
Community Workforce and Innovation Grant 5 $350,000 $300,000 New Construction Electrification 6 $1,500,000 $775,000 371 Electrify Your Home 31 $1,600,000 $84,400 24
Agriculture Electrification 29 $600,000 $475,487 160
Reach Code 0 $60,000 0
Planning, Implementation, and Innovation
Grant 6 $650,000 $644,053
Medium & Heavy-Duty Electric Vehicle 5 $1,250,000 $1,250,000 284 Light Duty Electric Vehicle 11 $562,283 $562,283 152
Grand Total 2,420 $10,422,283 $8,295,050 3,117
Figure 1. Utilization of Energy Program Funds, by Program Table 4. Summary of Equity Projects, by Program
Program
Equity Design
Criteria4
# of Equity
Projects
$ for Equity
Projects
% of Program
Budget
Electrify Your Ride Low-income 708 $1,078,507 38%
Electric School Bus Title 1 School 7 $1,075,000 108%
Community Work Force and Education
Grant
Project
Equity5 N/A $300,000 86%
New Construction Electrification
Affordable
Housing 6 $775,000 52%
Electrify Your Home Low-income 0 $0 -
Agriculture Electrification
Small
Business 21 $314,593 52%
Reach Code None 0 $0 -
Planning Implementation and Innovation
Grant None N/A N/A N/A
Medium & Heavy-Duty Electric Vehicle None N/A N/A N/A
Light Duty Electric Vehicle None N/A N/A N/A
Total Multiple 747 $3,543,099 42%

4 Certain programs did not include equity specific design criteria in FY 21/22; however, these programs still may have benefited underserved customers and/or communities.
5 Projects that reach and serve underserved communities such as Tribal lands, "at-promise" youth, workers whose jobs are at risk from electrification, and/or communities that are disproportionately burdened by multiple sources of pollution per the CalEnviroScreen 4.0.

Figure 2. Energy Program Funds Paid or Reserved for Equity Projects/Customers Community Programs

Electrify Your Ride
The Electrify Your Ride Program provided rebates to residential, commercial/agricultural, and public agency customers for transportation electrification projects. This included the purchase/lease of electric vehicles (EVs), Level 2 Electric Vehicle Service Equipment (EVSE), EV Readiness (associated installation costs for EV chargers), and electric bikes (e-bikes). This program had a total incentive budget of $2,850,000. Enhanced incentives were offered to income qualified residential customers that fell under two tiers: Tier 1 – customers whose income was between 400 – 201% of the federal poverty level (FPL); and Tier 2 - customers whose income was under 200% of the FPL.

Program Goals
 Reduce GHG emissions from light-duty vehicles and increase market penetration of EVs and EVSE in 3CE’s service area.
 Administer a comprehensive and streamlined application process.  Offer a local rebate that is stackable with other incentive program offerings.  Offer enhanced rebates to low-income customers and residents in underserved and disadvantaged communities.
 Provide EV purchase or lease rebate and EVSE rebate to accelerate EV and EVSE adoption in 3CE service area, particularly for low-income customers residents in underserved communities.  Electrify commercial business and public agency vehicle fleets.  Collaborate with regional partners to facilitate customer application submittals, as well as outreach/education activities.
 Provide Level 2 EVSE rebate to mitigate range “anxiety” for EV owners or prospective EV owners.
 Provide EV Readiness rebate to address electrical and/or installation work needed to electrify and/or drive further electrification.
 Increase electrical capacity in residences served by 3CE to drive further electrification.

Program Performance
 Applications received = 3005
 Applications approved = 2,319
 Total measures approved = 2,714
o Battery Electric Vehicles = 580
o Plug In Hybrid Electric Vehicles = 22
o EV Chargers = 499
o EV Readiness = 376
o E-Bikes = 1,234
 Incentives paid = $2,947,568
 Income qualified applications approved = 708
 Income qualified incentives paid = $1,078,507
 Annual estimated GHG emissions reduction = 1,964 metric tons CO2e

Staff Observations
 30% of applications were from income qualified applicants, who received a higher incentive amount.
 Staff rejected 686 applications, or about 23% of all applications received. In most cases, the applicant was not enrolled in 3CE service and therefore was not eligible for rebates. In some cases, the customer’s project/measure for was not eligible for a rebate or the application was incomplete.
 San Benito County participation in these programs was low (2.5% of incentives paid/reserved).  Customer participation across Monterey, Santa Barbara, and San Luis Obispo Counties was fairly even with Santa Cruz County receiving the highest percentage of incentives.  Customer interest in these programs persisted after the programs closed.  COVID-19 and related supply chain issues resulted in a shortage of electric vehicles and charging equipment.
 3CE staff and the Customer Call Center dedicated significant time verifying income-qualified applications and responding to customer inquiries about rebate status. This indicated a need to improve 3CE’s communication protocol with customers and manage expectations about the application process.
 Uptake from commercial customers was low compared to residential customers.

Recommendations
Program changes implemented in FY 22/23:
 Adjusted income eligibility guidelines as federal poverty line changes.  Increased marketing and outreach efforts, particularly to underserved customers and communities.
 Improved overall communications, including website, to clarify program guidelines and eligibility.
 Coordinated with Electrification Education grant awardees supporting transportation electrification programs.
 Provided the Electrify Your Ride application, and outreach materials in Spanish.  Created 3CE Staff standard operating procedure (SOP) for Electrify Your Ride application review to increase application processing efficiency and customer satisfaction.  Created external SOP for Call Center staff to ensure that accurate information is provided to customers.
 Allowed Call Center access to 3CE’s CRM to review customer application status in real time and address customer inquiries.
 Automated emails using 3CE’s CRM to notify applicants of the status of their application on a regular basis.
 Worked with a third party to provide EVCE technical assistance to multifamily residential properties and publicly accessible commercial (including public agency) properties, with an emphasis on sites located in low-income communities (LIC) and DAC.  Expanded Frequently Asked Questions (FAQs) to address common concerns, such as incentive limits or eligibility from residents living in Mobile Home Parks.  Created separate webpages for Residential and Commercial Customers to simplify and enhance the customer experience.

Future Considerations:
 Increase engagement with regional outreach partners to increase EV adoption in low-income communities.
 Utilize a third-party vendor to provide program implementation services.

Electric School Bus Program
FY 21/22 saw the third iteration of the Electric School Bus Program to incentivize public schools and school districts to purchase all-electric school buses. 3CE allocated a $1 million total program budget and contributed up to 50% of the cost of a bus, not to exceed $200,000.

Program Goals
 Incentivize the purchase of at least five (5) school buses for public school districts in the 3CE service area.
 Increase electric bus awareness and adoption across 3CE service area.  Provide educational opportunities for students about transportation electrification by increasing EV ridership.
 Expand distributed storage and DER penetration with potential resource participation in future programs.

Program Performance
 Applications received = 9
 Applications approved = 8
 Total measures approved = 8 school buses
 Incentives reserved = $1,256,259
 Annual estimated GHG emissions reduction = 162 metric tons CO2e Staff Observations
 COVID-19 and related supply chain issues resulted in a shortage of EVs and EVCE. This likely contributed to the low program uptake and delayed project completion times.  Due to staffing shortages at school districts, there is a general lack of resources, awareness, and expertise regarding school bus electrification.
 Electric bus leasing may be a more attractive option than purchasing for some schools, as it may result in lower upfront costs over the useful lifetime of the vehicle and may include operations and maintenance services as part of the lease, further reducing overall costs.

Recommendations
Program changes implemented in FY 22/23:
 Collaborated with program stakeholders (customers, school officials, students, manufacturers, etc.) to identify ways to increase adoption of electric buses.  Engaged with local Air Resource Districts to promote the program. These agencies are often well-connected with School Districts and Agricultural Businesses.  Expanded eligible customer segments to include Ag worker transportation businesses.  Communicated directly with the bus manufacturer to streamline the process.  Promoted EV Charger and EV Readiness rebates under Electrify Your Ride to applicants that need to install EVCE prior to the bus arrival.
 Affirmed to stakeholders and potential applicants that bus leases are expenses covered by the program.

 Standardized operating procedure to include a 30-minute meeting to review application with the school district applicant and associated vendors/service providers.  Requested all bus program applicants participate in a future Vehicle to Grid Integration (VGI) program, with the option to decline or opt-out.
 Created external standard operating procedure (SOP) for Call Center staff to ensure that accurate information is provided to customers.

Future Considerations:
 Leverage other state and federal medium and heavy-duty vehicle electrification programs to offer increased incentives so projects are less reliant on customer funding.  Investigate the potential for Vehicle to Grid Integration (VGI) program design elements.  Provide more support services to customers including service planning, pre-engineering, site assessment, upgrades, etc.
 Expand eligibility to include other public mass transit buses and make available to transit agencies.

Community Workforce and Education Grant Program
The purpose of the Community Education & Workforce Grant Program (“Grant Program”) is to advance specific and measurable outcomes in Education and Awareness, and Workforce Training and Education, specifically related to building and transportation electrification. The total budget for this Grant program was $350,000.

Program Goals
 Fund a minimum of four (4) projects throughout the 3CE service area.  Increase public knowledge of the benefits of electrification and participation in 3CE energy programs.
 Facilitate workforce education and training to increase access to electrification design and implementation services throughout the 3CE service area.

Program Performance
 Applications received = 8
 Applications approved = 5
 Grant funds requested = $699,029
 Grant funds reserved = $300,000
Staff Observations
 Grant program administration and implementation is very resource intensive in terms of staff capacity.
 Specific grant project outcomes can be challenging to measure and track, particularly in terms of customer program participation and benefit, and emissions reductions.  The grant program experienced a robust response with requests being more than double the program budget.
 Most applications focused on education and outreach, particularly related to electric vehicles.  Very few workforce, education and training applications were received.  Grant timelines span beyond the FY 21/22 timeframe, creating additional complexity and administrative burden.

Recommendations
Program changes implemented in FY 22/23:
 Discontinued grant program and integrated desired program objectives in the design, implementation, and budget of other programs.

New Construction Electrification Program
3CE implemented the third iteration of the New Construction Electrification Program to incentivize affordable housing developers to construct all-electric multi-family and single-family housing projects across the 3CE service area. This program provided funding reservations on a first com-first-served basis.

The program budget was $1.5 million.

Program Goals
 Encourage eligible affordable housing developers to participate in the program.  Avoid future GHG emissions associated with fossil fuel use in buildings.  Improve indoor air quality for occupants.
 Support the markets for electric appliances and building professionals including equipment retailers/wholesalers, design professionals, and contractors/installers.  Increase funding available to developers for local affordable housing development.

Program Performance
 Applications received = 6
 Applications approved = 6
 Total measures approved =
 Incentives reserved = $775,000
 Total electric affordable housing units supported = 319  Annual estimated GHG emissions reduction = 371 metric tons CO2e Staff Observations
 The program experienced a lower level of participation from housing developers, compared to last fiscal year, possibly due to the change in eligibility requirements allowing only affordable housing to qualify.
 Building all-electric homes is likely cheaper than building with gas infrastructure, providing additional incentive for housing developers to choose all-electric design.  Affordable housing developers struggle to fund and complete projects within 3CE service area.

Recommendations
Program changes implemented in FY 22/23:
 Modified eligibility requirements to include inclusionary, or transition housing units, as well as farmworker housing, and accessory dwelling units (ADUs).  Enhanced relationships with affordable housing property developers, farmworker housing, and private homeowners building ADUs.
 Developed outreach plan to raise awareness within AG business community.

Future Considerations:
 Include incentives or enhanced incentives for construction projects utilizing low carbon building materials (I.e., embodied carbon).
 Expand program to address commercial new construction.  Allow for incentives to address disaster relief re-build projects.

Electrify Your Home
The Electrify Your Home (EYH) program aims to address decarbonization in existing residential buildings by providing incentives to contractors for the replacement of fossil fuel appliances (HVAC and domestic hot water heaters) with all-electric appliances using heat pump technology. Program incentives reduced the overall project cost to the customer and helped contractors generate more business. 3CE contracted with a third party implementor and partnered with the statewide TECH Clean California Initiative to leverage the state’s extensive program funding resources, a comprehensive application and enrollment process, as well as Workforce Education and Training opportunities to further increase education, awareness, and quality installation. The program had a $1.6 million budget.

Program Goals
 Increase electric heat pump appliance adoption within 3CE service area.  Increase contractor and customer awareness of heat pump technology and its economic/environmental benefit.
 Leverage state funding under the TECH Clean California Initiative to expand available resources to local contractors and ultimately 3CE customers.
 Provide a comprehensive and streamlined program offering to contractors to increase participation.
 Reduce GHG emissions from homes and improve indoor air quality related to fossil fuel appliances throughout 3CE’s service area.
 Increase existing home electrification opportunities for income qualified community members by offering increased incentives.
 Increase existing home electrification opportunities for homeowners requiring panel upgrades to accommodate additional all-electric appliances.

Program Performance
 Applications approved = 31
 Total measures approved = 31
o Heat Pump Water Heater (Single Family Home) = 5
o Heat Pump HVAC (Single Family Home) = 26
 Incentives paid = $84,400
 Annual estimated GHG emissions reduction = 24 metric tons CO2e Staff Observations
 Shortly after launching the EYH Program in June 2022, TECH Clean California funding was exhausted for single-family incentives in PG&E territory and there was just over $1M remaining in SoCalGas territory, and that a waitlist had been instituted for multi-family incentives across the State.
 3CE re-designed the EYH Program in response to the depletion of TECH Clean California funding, delaying program implementation and requiring significant staff resources.  This program experienced slow uptake, partly due to confusing messaging stemming from TECH Clean California’s oversubscription.
 This program experienced low uptake from low-income customers.  The TECH Clean California requires contractor enrollment, which involved significantly more time and resources than anticipated for 3CE’s service area.

 Although nearly 80 contractors enrolled in the program, fewer than 15 contractors actively participated in the program.
 There was no multi-family project participation, which could have significantly contributed to higher overall program participation.
 Most customers and contractors who were successful in receiving rebates reacted positively to the program.
 HVAC systems were significantly more popular than water heater projects, contrary to 3CE’s initial predictions and assumption.

Recommendations
Program changes implemented in FY 22/23:
 Continued to improve upon program messaging to contractors and residential customers, including the creation of new printed collateral and other messaging materials.  Worked with Clean TECH CA implementer team to improve website and online resources for contractors and residents.
 Collaborated with 3C-REN to enhance support for customers in overlapping service areas.

Future Considerations:
 Increase incentives and promotion to income qualified customers to increase equity outcomes.  Consider adding additional measures and incentives that are not included in Clean TECH CA.

These include induction cooktops and Heat Pump clothes dryers.  Create dedicated measures with enhanced incentives for emerging technologies such as combination (water and space conditioning) systems.
 Consider how to include equipment supported under this program in future DER/DR programs.  Identify and develop an outreach plan for landlords to address low participation from renters.

Agriculture Electrification Program
FY 21/22 saw the third iteration of the Agricultural Electrification Program providing agricultural sector incentives to replace fossil fuel powered equipment with all electric equipment, including: irrigation pumps, tractors, and other agriculture-related equipment. This program had a $600,000 incentive budget.

Program Goals
 Reduce GHG emissions associated with agriculture sector by accelerating adoption of all electric ag equipment in 3CE service area.
 Improve air quality (reduce pollution) especially for agricultural workers.  Stimulate local economy.
 Support 3CE ag customers with transition to all electric ag equipment.

Program Performance
 Applications received = 45
 Applications approved = 29
 Total measures approved = 29
o Tractor = 9
o Utility vehicle = 8
o Forklift = 5
o Irrigation pump = 2
o Other/Miscellaneous = 5
 Incentives paid = $475,487
 Small business applications approved = 21
 Small business incentives paid = $314,593
 Annual estimated GHG emissions reduction = 160 metric tons CO2e Staff Observations
 Nearly one third of the approved projects were cancelled, likely due to supply chain, regulatory, and investor-owned utility-related factors. This pushes out timelines requiring award extensions and sometimes forcing cancellation of approved projects.  Certain project types (e.g., irrigation pumping) may result in significantly higher estimated GHG reductions.
 First-come first-serve application process allowed for more applications and fewer project cancellations than in past iterations of the program.
 Small businesses benefited greatly from this program, making up 75% of the projects supported and 66% of the funds distributed.
 The program experienced high customer interest in electric tractors, UTV/ATV equipment, and forklifts.

Recommendations
Program changes implemented in FY 22/23:
 Increased incentives levels for higher impact (greater GHG reduction) projects.  Lowered incentive levels for lower impact projects.

 Increased incentives for eligible small businesses.
 Further leveraged 3CE Communications & Outreach Department (C&O) to promote the program and collaborate with local organizations to increase participation from small and medium Ag operations.
 Provided incentives for DCFC to support Ag vehicle and equipment charging.  Contracted with a third party to provide EVSE technical assistance and education to ag customers for DC Fast Chargers.

Future Considerations:
 Expand and/or increase program offerings targeting the electrification of irrigation pumping, refrigeration, and processing equipment.

Member Agency Services Programs

Reach Code Program
The Reach Code Program provided incentives to Member Agencies to adopt local building electrification and EVSE Infrastructure ordinances that go above and beyond California’s statewide energy codes. The budget for this program was $60,000.

Program Goals
 Increase adoption and implementation of Reach Codes to significantly advance building electrification and EVSE infrastructure buildout within participating agency’s jurisdictions.  Support reduction of GHG emissions related to construction and operation of buildings, as well as GHG emission associated with transportation in the 3CE service area.

Program Performance
3CE did not receive any applications under the FY 21/22 Reach Code program.

Staff Observations
 Reach Code programs may have higher participation in calendar year 2023, which is before the next state code cycle must be adopted by all authority having jurisdictions in California.  Member Agencies/jurisdictions remain interested in reach code implementation but struggle to find staff time and resources to undertake the technical requirements and stakeholder outreach necessary to adopt reach codes.
 Member Agencies showed interest in a technical assistance program to help support Reach Code adoption.

Recommendations
Program design changes implemented in FY 22/23:
 Identified further barriers to cities and counties to adopt Reach Codes.  Partnered with third party program implementer to provide Member Agency staff with direct technical assistance and stakeholder outreach support to streamline their reach code implementation process.
 Established an interagency regional working group with the goal of sharing resources and increasing stakeholder engagement with reach codes.
 Included the availability of resources and assistance for existing building electrification Reach Codes.

Future Considerations:
 Continue to evaluate program performance and update the offering based on market and regulatory observations.
 Consider refining the library of online resources to further streamline implementation.  Advance new research questions to help drive code development.

Planning Implementation and Innovation Grant Program
The Planning Implementation and Innovation Grant Program (“PI&I Grant”) supported Member Agencies in the planning and implementation of electrification projects (Member Agency fleets, municipal properties, and community infrastructure), as well as supporting new and innovative electrification or energy technology for municipal buildings and/or fleets.

Program Goals
 Support Member Agency project planning and implementation efforts.  Foster innovation to support market transformation, demonstrate scalable and replicable solutions, and identify future 3CE energy program concepts.

Program Performance
 Applications received = 11
 Applications approved = 6
 Grant funds requested = $1,091,086
 Grant funds reserved = $644,053
Staff Observations
 Grant program administration and implementation is very resource intensive in terms of staff capacity.
 Specific grant project outcomes can be challenging to measure and track, particularly in terms of Member Agency program participation and benefit, and emissions reductions.  The grant program experienced a robust response from Member Agencies.  The projects are especially important to the local community as they create private/public partnerships and economic development with dollars spent locally.  Due to the innovative nature of some projects, timelines and approaches have required adaptation.
 Custom projects and contracting efforts required a disproportionate level of 3CE staff and applicant efforts to administer.

Recommendations
Program changes implemented in FY 22/23:
 Discontinued grant program and integrated desired program objectives in the design, implementation, and budget of other programs.

Medium and Heavy-Duty Electric Vehicle Program
The Member Agency Medium and Heavy-Duty Electric Vehicle Program (“MDHD Program”) provided 3CE Member Agencies with an opportunity to receive funding for the purchase of all-electric medium or heavy-duty vehicles (“MDHD EV”). The Program aimed to reduce GHG emissions from municipal fleet operations, as well as eliminate harmful pollution, including noise, emitted by traditional fossil fuel powered MDHD vehicles.

Program Goals
 Reduce GHG emissions from medium and heavy-duty Member Agency fleet vehicles.  Increase market penetration of MDHD EVs in 3CE’s service area.  Incentivize the purchase of at least four (4) MDHD EVs.  Increase EV awareness and adoption for municipal fleets.  Provide educational opportunities for agency staff and communities about transportation electrification by increasing EV adoption, awareness, and visibility.  Expand distributed storage and DER penetration with potential resource participation in future programs.

Program Performance
 Applications received = 5
 Applications approved = 5
 Total measures approved = 5 MDHD EVs
 Incentives requested = $1,250,000
 Incentives reserved = $1,250,000
 Annual estimated GHG emissions reduction = 366 metric tons CO2e Staff Observations
 The program experienced a robust response from Member Agencies.  The relatively large incentive amount, up to $250,000 per applicant, was appreciated due to the relatively high cost of the vehicles.
 Working closely with applicants was necessary to ensure a smooth process.  The “direct pay to vendor” option was well received by the applicants as it reduces the financial burden on applicant budgets.
 Online application was not integrated with 3CE’s Customer Relationship Management (CRM) platform, requiring staff time to manually record and process applications.

Recommendations:

Program design changes implemented in FY 22/23:
 Launched a comprehensive fleet electrification program, Electrify Your Fleet, providing incentives for EVs by weight class. This new program combined the FY 21/22 MDHD Electric Vehicle Program and the FY 21/22 Light Duty Electric Vehicle Program (see below) into one program.
 Developed an online application and integration with the CRM to ease the application process for applicants and 3CE Staff.

Future Considerations:
 Continue to analyze how best to align incentives with thresholds to trigger EV purchasing.  Consider expanding budget to provide greater percentage/more dollars to equity/DAC Member Agencies and larger per unit incentives for equity/DAC Member Agencies.  Consider developing equity/DAC designations for Member Agencies.  Consider offering and aligning load modifying program incentives with customer energy usage profiles.

Light Duty Electric Vehicle Program
The Light-Duty Electric Vehicle Program (“LDEV Program”) provided 3CE Member Agencies with incentives for the purchase/lease of light duty battery electric vehicles (EV). The program also provided 3CE Member Agencies with incentives for the purchase and construction/installation of EVSE including the EV readiness (time and materials) work required to install those chargers at Member Agency sites.

The LDEV Program provided direct rebates for completed purchases and/or reservation of funds for eligible planned projects.

Program Goals
 Reduce GHG emissions from light-duty Member Agency fleet vehicles and increase market penetration of EVs and EVSE in 3CE’s service area.
 Increase EV awareness and adoption for municipal fleets.  Provide educational opportunities for agency staff and communities about transportation electrification by increasing EV adoption, awareness, and visibility.  Expand distributed storage and DER penetration with potential resource participation in future programs.

Program Performance
 Applications received = 7
 Applications approved = 7
 Total measures approved = 69
o Electric Vehicles = 47
o EV Charger Projects = 22
 Incentives requested = $562,282
 Incentives reserved = $472,282
 Incentives paid = $90,000
 Annual estimated GHG emissions reduction = 152 metric tons CO2e Staff Observations
 The program was well-received by Member Agencies.
 The program was difficult to implement due to the lack of an online application and integration with 3CE’s CRM.
 Staff spent substantial time working with each applicant to help optimize their project and related program applications.
 Due to a long project lifecycle, most Member Agencies applied for incentives as reservations rather than rebates.

Recommendations
Program design changes implemented in FY 22/23:
 Developed an online application and integration with the CRM to ease the application process for applicants and 3CE Staff.
 Modified the program design to only provide incentives for the construction of active EV charging stations.

 Launched a comprehensive fleet electrification program called Electrify Your Fleet providing incentives for all types of EV by weight class, combining incentives available from the FY 21/22 MDHD Program and the LDEV Program.
 Separated out electric vehicle incentives from EVSE incentives into two distinct programs, Electrify Your Fleet and Charge Your Fleet.
 Provided incentives based on completed EV charging capabilities, not for “readiness”.

Future Considerations:
 Continue to analyze how best to align incentives with thresholds to trigger EV purchasing.  Consider expanding budget to provide greater percentage/more dollars to equity/DAC Member Agencies and larger per unit incentives for equity/DAC Member Agencies.  Consider developing equity/DAC designations for Member Agencies.  Consider offering and aligning load modifying program incentives with customer energy usage profiles.

VI. Overarching Recommendations & Conclusion
Recommendations
Overarching recommendations have been identified and fall into the following categories: Program Design, Equity, Program Implementation, Program Outreach, and Portfolio Evaluation. The intention of this section is to reflect on how 3CE can improve Energy Programs at the portfolio level. These recommendations relate to all programs offered by 3CE.

Program Design
 Investigate ways to leverage the growing market for Demand Response or Demand Side Management.
 Explore new program design models through piloting new and innovative programs.  Explore financing mechanisms to support customer projects.  Increase use of data to better inform program design and target customer segments, including the use of geospatial analysis.
 Explore utilization of “point of sale” or instant rebates to reduce upfront costs to customers, especially for underserved community members.

Equity
 Further leverage the Underserved Communities Report and California’s definition of disadvantaged communities (DAC) and low-income communities (LIC) to best understand issues surrounding 3CE’s underserved communities and design programs that best serve these communities.
 Conduct geospatial analysis of where program dollars are being invested in DAC and LIC, as well as income qualified customer program participation.
 Explore additional ways to support small businesses, especially small business in underserved communities.
 Provide marketing materials and program information/applications in Spanish, and/or in other languages, for all programs, where applicable.
 Increase engagement with CBOs that work in environmental justice to learn and leverage their expertise and community networks.
 Increase equity incentives and economic impacts.
 Explore programs dedicated to low-income customers and eliminate upfront customer investment.

Program Implementation
 Explore feasibility of online marketplace.
 Explore feasibility of a centralized webpage for tools and resources to help customers access electrification.
 Explore partnerships with other CCAs or entities to increase value to 3CE customers.  Assess strategies to better leverage third party vendors.  Evaluate opportunities to create rate structures that will help incentivize program participation and customer electrification.

Program Outreach
 Increase utilization of CBOs and local networks to enhance marketing and outreach regarding program offerings.
 Improve methods to solicit feedback from program participants, stakeholders, and the public.  Leverage survey results to inform program outreach strategy and tactics.  Increase use of established metrics and data analytics to evaluate effectiveness and inform customer segmentation, targeting, and messaging.
 Where appropriate, use insights and principles of Community Based Social Marketing to drive programs awareness and uptake.
 Increase and improve use of automatically generated emails when customers engage with Energy Programs.
 Leverage completed projects to promote 3CE and 3CE Energy Programs and raise awareness.

Portfolio Evaluation
 Engage a third party to complete portfolio evaluation on a triannual basis.  Investigate how electrification measures effect customer load and electricity bills, and grid impacts.
 Integrate customer feedback into the portfolio evaluation.  Expand evaluation methodology to include impacts to criteria pollutants.

Conclusion
Central Coast Community Energy’s programs exist to catalyze regional climate action. To understand the impacts of these programs, if they are achieving their objectives and how they can be improved, 3CE conducted an evaluation of its FY 21/22 Programs portfolio. This report represents 3CE’s second Programs portfolio evaluation and was conducted entirely by 3CE Energy Programs staff. As such, feedback from customers, community members, Member Agencies, and Board and Council members will inform future program design, implementation, outreach, budgeting, evaluation, and reporting.

Each of these areas will evolve over time to reflect learning and priorities.

Please direct comments and feedback to: [email protected]

Appendix A – Energy Programs Portfolio Recommendations from FY 20/21 The following section lists several categories of overarching recommendations which were made as part of 3CE’s FY 20/21 Program Portfolio Performance Evaluation. Each recommendation is re-stated in bold text, and below a response is provided which describes the status of implementation of these recommendations as well as some details regarding the recommendation.

Program Design

1. Encourage equitable participation by modifying eligibility standards, increasing per measure incentive levels, and integrating other opportunities for Underserved Communities.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: Equity focused design elements continue to be introduced and implemented in 3CE programs.

Examples include Small Business incentive for Ag Electrification and, expansion of income eligibility under EYR to include moderate-low income as well as low-income.

2. Increase incentives for project types with higher GHG reduction potential.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE continues to evaluate the GHG impact of program measures and increase incentives where appropriate as was done for “Tier 2” Ag incentives. It is the intent of Energy Programs to incentivize impactful and market ready solutions to GHG reduction across all sectors.

3. When feasible, incorporate workforce education and training elements into programs.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE partnered with TECH Clean California Initiative to provide education and training opportunities for contractors installing heat pumps.

4. When feasible, integrate design elements that support local economic development, particularly small businesses.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: In FY 21/22, 3CE began providing ag businesses that are designated as small businesses with enhanced incentives in the Ag Electrification program. Additionally, 3CE has a small and local vendor policy in place for contracting and procuring small and local businesses.

5. Consider grid integration programs or elements that leverage incentivized devices to add customer and agency value such as demand response and other behavioral (load shift) incentives.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE continues to investigate and evaluate DER and Demand Response program concepts.

Equipment eligibility under EYR require Wi-Fi connectivity for all EVSE.

6. Consider alternative methods for determining program allocations by county.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE has removed county allocations for programs.

7. Deliberately allocate portions of program budgets to Underserved Communities.

Implemented in FY 21/22: Partially
Future implementation: Partially
Details: In FY 21/22, 3CE offered 100% of New Constructions Electrification Program (NCEP) funds for affordable housing developers to build much needed housing for income qualified residents. Most 3CE programs provide increased incentives for income qualified customers and small businesses, however funds are not earmarked specifically for underserved communities or income qualified customers (except for the NCEP Program). 3CE will evaluate and consider this approach in future program years.

8. Consider program designs where participation is not contingent on customer financial capital.

Implemented in FY 21/22: No
Future implementation: No
Details: 3CE staff will evaluate the possibility of addressing these issues in future program years.

9. When feasible, establish clear and quantifiable objectives for each program.

Implemented in FY 21/22: No
Future implementation: Yes
Details: Goals and objectives are established, when feasible, during the program design and scoping process.

Program Implementation

1. Partner with regional, state, and federal agencies and other program administrators to integrate programs and offer comprehensive programs and services to shared customers.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE partners with regional economic development agencies, Member Agencies, APCDs, CBOs, RENs, IOUs, and other local organizations to promote programs, and in some cases, leverage other sources of funding for customers to maximize a variety of “stacking” incentives.

2. Contract with 3rd party implementers for mass market programs to streamline application review and approval process, and to provide technical assistance and customer service.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE partnered with third parties to implement the Electrify Your Home Program as well as CALeVIP – SCCIP, which can be categorized as “mass market”. Additionally, 3CE has also partnered with a third party to provide education and technical assistance for EV charging projects at commercial and multifamily buildings.

3. Provide customers more regular communication regarding their application processing including incentive payment timelines.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: Using 3CE’s CRM platform, staff implemented regular email communications protocol for most customer facing programs so participants receive more frequent updates on application status and timelines.

4. Continue to improve internal processes related to budgeting, procurement, and utilization of program and project management software.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE integrated the majority of programs into the Salesforce CRM. This allows staff to process applications, communicate with customers, and report on program performance and participation more efficiently.

Program Outreach

1. Increase outreach to underserved communities and to jurisdictions with relatively low program participation.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE is actively working with community-based organizations and local media partners to raise awareness of energy programs among underserved communities and jurisdictions with low program participation in its service area. The company has sponsored and participated in several events, all with the aim of engaging residents in targeted communities and answering their questions about energy programs.

2. Collaborate with Communications & Outreach staff on the development of program-specific outreach plans.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: Energy Programs actively collaborates with the Communications and Outreach (C&O) teams to develop program-specific marketing and outreach plans. Regular strategic and tactical meetings are held between Program and C&O teams, and plans are built out using a project management platform. This process is continuously being refined.

3. Further collaborate and leverage C&O and utilization of existing marketing/outreach channels to actively engage relevant stakeholders.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: Please see response to #2 above.

4. Develop marketing materials specifically for Underserved Communities to increase their participation in energy programs.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: To effectively reach linguistically isolated communities throughout the service area, a comprehensive approach is necessary. 3CE has taken steps to serve the sizable Spanish-speaking population by producing content, such as flyers, newsletters, webpages, and advertisements, in Spanish. However, migrant indigenous community members who don't speak either Spanish or English encounter additional hurdles when accessing services. 3CE will collaborate with community leaders who represent these groups to gain insights on the most effective strategies for communicating information about energy programs.

5. Build or maintain partnerships with community-based organizations to enhance awareness of energy programs to Underserved Communities.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE built and actively maintains relationships with local CBOs through the Community Ed Grants programs. 3CE actively collaborates with CBOs to leverage communication networks and expertise, and to sponsor events.

6. Explore opportunities to solicit ongoing feedback on energy programs design, marketing, and outreach efforts from local representatives of community-based organizations, member agencies, and public agencies.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: On an on-going basis, 3CE solicits and receives feedback from Member Agencies regarding energy programs. 3CE has organized working groups focused on building electrification and transportation electrification that are attended by Member Agency representatives as well as CBO staff. 3CE could offer annual/cyclic customer surveys to refine data collection.

7. Improve the overall customer experience with regards to Energy Programs-specific webpages and online applications.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE overhauled the website to provide customers with a more intuitive and helpful, and user-friendly experience.

Portfolio Evaluation

1. Research and adopt GHG accounting methodology that best reflects the impact of electrification projects.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: 3CE continues to improve GHG accounting methodology by keeping up with industry best practices and including, where feasible, impacts from electricity usage from all electric devices/equipment.

2. Expand GHG accounting methodology to include other GHGs as well as criteria air pollutants.

Implemented in FY 21/22: Partially
Future implementation: Partially

Details: 3CE expanded the GHG accounting methodology to include all applicable and available emissions factors for gases with global warming potential. As a best practice, 3CE will report cumulative GHG emissions using metric tons of carbon dioxide equivalent. 3CE will explore use of methodology to measure criteria air pollutants.

3. Provide more insight regarding application processing time and funding status.

Implemented in FY 21/22: No
Future implementation: Yes
Details: 3CE plans to report on application processing time where possible. Currently 3CE has data to understand the application processing time for all programs integrated into the 3CE CRM platform.

4. Seek to better understand/track true cost to implement programs by receiving reports from 3rd party implementers regarding staff time and resources spent.

Implemented in FY 21/22: No
Future implementation: Yes
Details: In future evaluations 3CE may seek to utilize a third-party evaluator to measure true cost of Energy Programs.

5. Expand cost evaluation to include marketing and outreach costs associated to programs.

Implemented in FY 21/22: No
Future implementation: Yes
Details: In future portfolio evaluations, 3CE will coordinate with Communications and Outreach staff to evaluate marketing and outreach cost and impact.

6. Better understand the impact to customer electricity bills from electrification projects.

Implemented in FY 21/22: No
Future implementation: Yes
Details: 3CE will seek to better understand the impact on customer bills, either through a direct study or a research-based approach.

7. Expand economic analysis in future program evaluations.

Implemented in FY 21/22: No
Future implementation: Yes
Details: In future evaluations 3CE may seek to utilize a third-party evaluator. This third-party will provide a more in-depth evaluation across all metrics including economic analysis. 3CE will continue to better understand the cost and financial benefits of electrification.

8. Research and model energy load impacts of electrification on a by-measure basis.

Implemented in FY 21/22: No
Future implementation: No
Details: 3CE may consider more detailed energy modeling on a per measure basis in the future.

9. Continue to evaluate and define priorities and desired outcomes that drive program design.

Implemented in FY 21/22: Yes
Future implementation: Yes
Details: This remains as a core principle to 3CE program design. Each year, as we learn more from the previous years’ programs, 3CE adapts and modifies design to be more effective at attaining the goals set out by each program.

10. Consider engaging a qualified third party to conduct 3CE Programs evaluation.

Implemented in FY 21/22: No
Future implementation: Yes
Details: 3CE plans on utilizing a third-party for performance evaluation once every three fiscal years.

11. Refine and improve metrics to evaluate community impacts of program equity components.

Implemented in FY 21/22: No
Future implementation: Yes
Details: 3CE will continue to learn from stakeholders and community members to better understand how to effectively measure impact to underserved communities.

Appendix B – Calculation Inputs, Conversion Factors, and Sources Input/assumptions
Passenger Vehicle Value Unit Source #
avg fuel economy 25 MPG 1, 4
Miles driven per year 10000 Miles/yr 1, 4
metric tons CO2e per yr 4.60 metric tons/yr 1, 4
gallons gasoline per year 400 Gal/yr 1, 4
EV kWh per year 3460 kWh/yr Conversion
School Bus Value Unit Source #
avg fuel economy-School bus 6.2 MPG 2
Avg school bus route 75 Miles 2
School bus annual miles 13687.5 Miles/yr 2
gallons gasoline per year 2207.7 Gal/yr 2
EV annual added kWh 38872.5 kWh/yr Conversion
Residential NG Usage Value Unit Source #
Single Family Total 44.3 MMBTU/yr 3
Water heating 26.137 MMBTU/yr 3
Space Conditioning 14.176 MMBTU/yr 3
Cooking 2.215 MMBTU/yr 3
HPWH eq. 6.35 MMBTU/yr 3
HP HVAC eq. 3.44 MMBTU/yr 3
added kWh (whole home) 3,518.41 kWh/yr Conversion
added kWh (HPWH) 1,860.29 kWh/yr Conversion
added kWh (HP HVAC) 1,008.97 kWh/yr Conversion
Multi-Family Total 24.1 MMBTU/yr 3
Water heating 14.219 MMBTU/yr 3
Space Conditioning 7.712 MMBTU/yr 3

Residential NG Usage (cont.) Value Unit Source #
Cooking 1.205 MMBTU/yr 3
HPWH equivalent 3.45 MMBTU/yr 3
HP HVAC equivalent 1.87 MMBTU/yr 3
added kWh (whole home) 1,914.08 kWh/yr Conversion
added kWh (HPWH) 1,012.03 kWh/yr Conversion
added kWh (HP HVAC) 548.90 kWh/yr Conversion
Gas WH/HVAC efficiency 0.85 % Assumed
HP WH/HVAC COP 3.5 UEF (COP) Assumed
Emission Factors Value Unit Source #
CCCE EF 0.082300 kg/kWh 5
Gasoline 8.81 kg CO2e/gal 4
Diesel 10.66 kg CO2e/gal 4
Propane 5.72 kg CO2e/gal 4
Natural Gas 53.1148 kg CO2e/MMBTU 4
Source # Source
1 California Department of Motor Vehicles. “Annual Miles Traveled - California Open Data.” Ca.gov, 2010. https://data.ca.gov/dataset/annual-miles-traveled
2 California Air Resources Board. “Battery-Electric Truck and Bus Energy Efficiency Compared to Conventional Diesel Vehicles | California Air Resources Board.” Ww2.Arb.ca.gov, 2020. ww2.arb.ca.gov/resources/documents/battery-electric-truck-and-bus-energy-efficiency-compared-conventional-diesel 3 California Energy Commission. “2019 Residential Appliance Saturation Study.” California Energy Commission, 2019. www.energy.ca.gov/data-reports/surveys/2019-residential-appliance-saturation-study. 4 US Environmental Protection Agency. Table 1 Stationary Combustion Fuel. 2022, www.epa.gov/system/files/documents/2022-04/ghg_emission_factors_hub.pdf. 5 Central Coast Community Energy. “Integrated Resource Plan 2022.” 3cenergy.org, 2022, 3cenergy.org/wp-content/uploads/2022/06/CCCE_csp_25mmt_preferred_conforming_na_public_v1-2.xlsx.

Appendix C – Supplemental Program Budget Figures
The following charts summarize, by county and by program, incentive distribution. 6 Figure A-1
Figure A-2

6 For the purpose of these supplemental figures, total combined incentives paid/reserved was used specifically for CALeVIP CCIP.
$152,467
$675,000
$614,120
$150,000
$250,000
$209,199
$50,300
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Agriculture
Electrification
Electric School
Bus
Electrify Your
Ride
PI&I Grant Medium &
Heavy Duty
EV
New
Construction
Electrification
Light-Duty
Fleet EV
Electrify Your
Home
Monterey County
Program Incentives Paid/Reserved
$44,064
$200,000
$73,899
$137,500
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Agriculture
Electrification
Electric School
Bus
Electrify Your
Ride
PI&I Grant Medium &
Heavy Duty
EV
New
Construction
Electrification
Light-Duty
Fleet EV
Electrify Your
Home
San Benito County
Program Incentives Paid/Reserved

Figure A-3
Figure A-4
$75,154
$739,152
$70,000
$160,000
$59,899
$9,300
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Agriculture
Electrification
Electric School
Bus
Electrify Your
Ride
PI&I Grant Medium &
Heavy Duty
EV
New
Construction
Electrification
Light-Duty
Fleet EV
Electrify Your
Home
San Luis Obispo County
Program Incentives Paid/Reserved
$51,609
$181,259
$594,309
$99,053
$250,000
$150,000
$253,350
$3,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Agriculture
Electrification
Electric School
Bus
Electrify Your
Ride
PI&I Grant Medium &
Heavy Duty
EV
New
Construction
Electrification
Light-Duty
Fleet EV
Electrify Your
Home
Santa Barbara County
Program Incentives Paid/Reserved

Figure A-5
The following charts show incentive distribution for each FY 21/22 program by county:

Figure A-6
$152,193
$200,000
$926,087
$325,000
$750,000
$327,500
$39,835 $21,800
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Agriculture
Electrification
Electric
School Bus
Electrify Your
Ride
PI&I Grant Medium &
Heavy Duty
EV
New
Construction
Electrification
Light-Duty
Fleet EV
Electrify Your
Home
Santa Cruz County
Program Incentives Paid/Reserved
$152,467
$44,064
$75,154
$51,609
$152,193
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Agriculture Electrification Incentive Spent/Reserved
Program Incentives Paid/Reserved

Figure A-7
Figure A-8
$50,300
$9,300
$3,000
$21,800
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Electrify Your Home Program
Program Incentives Paid/Reserved
$675,000
$200,000 $181,259 $200,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Electric School Bus Incentive Paid/Reserved
Program Incentives Paid/Reserved

Figure A-9
Figure A-10
$614,120
$73,899
$739,152
$594,309
$926,087
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Electrify Your Ride Incentive Paid/Reserved
Program Incentives Paid/Reserved
$250,000 $250,000
$750,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Medium & Heavy Duty Electric Vehicle Program Incentive
Paid/Reserved
Program Incentives Paid/Reserved

Figure A-11
Figure A-12
$137,500
$160,000 $150,000
$327,500
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz New Construction Electrification Incentive Paid/Reserved Program Incentives Paid/Reserved
$150,000
$70,000
$99,053
$325,000
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz PI&I Grant Program Incentive Paid/Reserved

Figure A-13
Figure A-14
$209,199
$59,899
$253,350
$39,835
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Light-Duty EV Program Incentive Paid/Reserved
$2,113,053
$463,260
$1,681,922
$2,694,364 $2,745,653
$300,000
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Monterey San Benito San Luis Obispo Santa Barbara Santa Cruz Service Area Wide All Programs FY 21/22 Incentive Paid/Reserved
Program Incentives Paid/Reserved

Staff Report 1.3
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Receive Update on FY 2022-2023 Energy Programs DATE: 4/12/2023
RECOMMENDATION:

Receive an update on FY 2022-2023 Energy Programs.

BACKGROUND:

The 3CE Policy Board of Directors adopted the FY 2022-2023 Operating Budget that includes approximately $16M for the FY 2022-2023 Energy Programs Portfolio. FY 2022-2023 will be 3CE’s fifth year of administering and implementing energy programs.

DISCUSSION/ANALYSIS:

Staff is actively implementing 3CE’s FY 2022-2023 suite of Energy Programs, serving a broad range of customers to advance building electrification, transportation electrification, and agricultural electrification. Provided as attachments to this report are updates on community energy programs and Member Agency Services program implementation activities.

FISCAL IMPACT:
3CE’s Energy Programs were approved as part of the approved FY 2022-2023 Operating Budget.

CONCLUSION:
3CE’s Energy Programs support local economic stimulation by providing the community and Member Agencies with funding and services to accelerate regional electrification as well as enhanced incentives for underserved customers to reduce GHG emissions throughout the 3CE service area.

ATTACHMENTS:

1. Update on 3CE Energy Programs

2. Update on 3CE Member Agency Services

FY 22-23 3CE Community Energy Programs
Provided in this report is an update on FY 22-23 Community Energy Programs implementation activities.

Electric Bus Program
On March 1, 2023, 3CE launched the Electric Bus Program. The Electric Bus Program provides 3CE customers with incentives for the purchase or lease of all-electric school buses and agricultural worker transport buses. The Electric Bus Program is intended to reduce GHG emissions from buses, as well as eliminate harmful pollutants emitted by traditional diesel buses in close proximity to people. To date, 3CE has received one application for a school bus. This program has an incentive budget of $1.4 million.

Incentive available under the Electric Bus Program are as follows:

Applicant Type Incentive Max Incentive per Vehicle
Schools/School Districts 75% of vehicle cost $200,000
Ag Worker Transport Businesses 50% of vehicle cost $150,000 Electrify Your Home Program
On October 3, 2022, 3CE staff launched the Electrify Your Home Program (EYH) with implementation support from a consultant, Energy Solutions. This residential electrification program provides incentives “midstream” to enrolled contractors who recommend and switch out gas powered appliances in existing single and multi-family buildings with all-electric heat pump water heating and HVAC technologies.

These incentives directly reduce the upfront cost for 3CE customers who make the switch to all-electric heat pump technology. In FY 22/23, 3CE budgeted $1.6 million for EYH.

Contractors enrolled in the statewide TECH Clean California (TECH) program also have access to no-cost workforce education and training focused on electrification design and specification, heat pump installation, building science, and soft skills in sales and marketing. There are 75 licensed contractors enrolled in the TECH program that serve part of 3CE’s service area.

The following table summarizes program performance to date:

Approved & Paid Submitted Reserved Total Allocated
Single Family $159,600 $85,500 $77,100 $322,200
Multifamily $0 $45,000 $45,000
Total $159,600 $85,500 $122,100 $367,200
New Construction Electrification Program
On October 3, 2022, 3CE staff launched the New Construction Electrification Program (NCEP). This year’s iteration of NCEP provides affordable and farmworker housing developers, and homeowners building Accessory Dwelling Units (ADU), with incentives to build all-electric housing. Housing projects must be built to all-electric standards for all energy utility needs including but not limited to water heating, space heating, and cooking appliances. Incentives will be provided on a per-unit basis and will be provided “downstream” to developers and homeowners upon successful completion of the project. In FY 22/23, 3CE has budgeted $1.5 million for NCEP.

As of March 23, 2023, staff have received and approved three (3) multi-unit projects totaling $150,000 in funding reservations for a total of 60 affordable housing units. 3CE has also received and approved eight (8) applications for ADU projects, reserving a total of $40,000. See Figure 1 below for total program funds reserved by county in FY 22/23. For a full list of all NCEP funds reserved since FY 19/20, please see Appendix A, attached to this document.

Figure 1 (above): Shows NCEP funds distributed by County in FY 22/23.

Electrify Your Ride Program
On November 1, 2022, 3CE staff launched the third iteration of the Electrify Your Ride (EYR) Program.

Building off last year’s program, the Electrify Your Ride Program provides rebates to 3CE customers who purchase or lease an electric vehicle (EV). This program also incorporates rebates for Level 2 EV Chargers, as well as related home electrical upgrades - such as panel upgrades and wiring – to support “EV Readiness”.

Residential, commercial/agricultural, and public agency customers are welcome to apply. Higher incentive amounts are available through this program for income-qualified customers to promote greater adoption of transportation electrification in disadvantaged and low-income communities. In FY 21/22, 3CE budgeted a total of $4.63 million with $2 million allocated for EV, Level 2 EV charger, and EV Readiness incentives, as well as $2 million for Level 3/DC Fast Charger incentives.

The following figures summarize program performance based on 746 approved applications received to date:

Figure 2 (above): Shows Electrify Your Ride funds distributed by County in FY 22/23.

Figure 3 (above): Shows Electrify Your Ride Program funds distributed by Measure type in FY 22/23.

Figure 4 (above): Shows a breakdown of funds distributed to income qualified applicants. Tier 1 = 201 - 400% FPL; Tier 2 = <200% FPL; N/A = Non-Income Qualified applicants Figure 5 (above): Shows estimated annual GHG emissions reductions (MTCO2e) by County resulting from reduced vehicle emissions under the Electrify Your Ride Program in FY 22/23.

Ag Electrification Program
On December 8, 2022, staff launched the fourth iteration of the Agricultural (Ag) Electrification Program.

The Ag program provides incentives to 3CE customers for replacement of fossil fuel powered agricultural equipment with new electric equipment including irrigation pumps, farm tools, tractors, utility vehicles, and other equipment. Incentives are provided “downstream” directly to the customer after proof of purchase and/or installation of equipment.

For FY 22/23 a total of $750,000 is available for agriculture equipment incentives. Like last year, applications for projects with the greatest estimated GHG emissions reduction as well as those submitted by small to medium sized businesses will be supported by the highest incentive levels.

Starting in mid-January, and conditional upon Operations Board approval of the Frontier Energy agreement amendment, the Ag program will offer a no-cost technical assistance “concierge” service and administer additional incentives for Level 3 or Direct Current Fast Charging (DCFC) infrastructure at eligible customer sites, totaling $1,250,000. The following figure summarizes program performance in FY 22/23.

The following figures summarize program performance based on approved applications received to date:

Figure 6 (above): Shows total funds reserved or distributed by County for the FY 22/23 AG Electrification program Appendix A – NCEP Approved Housing Developments, by City Installation City Development Name
Estimated Project
Completion Date
Total Reserved
Funds
Total # of
Housing
Units
(Final) Status
Buellton Village Senior Apartments August 2024 $122,500 49 Funds Reserved Goleta Heritage Ridge December 2022 $102,500 41 Funds Reserved Goleta Hollister Lofts December 2023 $90,000 36 Funds Reserved Guadalupe Escalante Meadows June 2023 $200,000 80 Funds Reserved Hollister Riverview Estates II Completed- 2022 $60,000 24 Project Complete Hollister Santana Ranch Apartments March 2023 $139,250 56 Funds Reserved Hollister Phase 1 of Santana Ranch Apartments March 2023 $37,500 16 Funds Reserved Hollister The Apartments at Santana Ranch, Phase 2 December 2023 $137,500 55 Funds Reserved Lompoc (Unincorporated Santa
Barbara County) Brisa Encina TBD $122,500 49 Funds Reserved New Cuyama Perkins Place TBD $82,500 33 Funds Reserved
Pismo Beach Shell Beach Senior Apartments May 2024 $62,500 25 Funds Reserved Pismo Beach Pismo Terrace July 2023 $125,000 50 Funds Reserved Salinas 467, 479 E. Market Street January 2025 $156,750 84 Funds Reserved San Luis Obispo
Presidio WH SLR 80 Towns, LLC (Williams Homes)
Fig at the Orchard- Tract 3150 February 2022 $141,500 80 Funds Reserved San Luis Obispo
Presidio WH SLR 120 Lofts Efficiency Units at the
Orchard -Tract 3150 TBD $214,500 120 Funds Reserved
San Luis Obispo Tiburon Place TBD $170,000 68 Funds Reserved San Luis Obispo Broad Street TBD $100,000 40 Funds Reserved San Luis Obispo Vinifera Completed- 2022 $76,000 40 Project Complete San Luis Obispo Iron & Oak Completed- 2022 $29,750 17 Project Complete San Luis Obispo Harvest Lofts March 2023 $213,500 122 Funds Reserved San Luis Obispo Harvest Vistas June 2023 $26,250 15 Funds Reserved San Luis Obispo Avila Ranch TBD $35,000 14 Funds Reserved Santa Cruz 180 Permanent Supportive Housing Project July 2023 $240,000 121 Funds Reserved Santa Cruz Pacific Station North April 2025 $237,500 95 Funds Reserved Santa Cruz Jessie Street Apartments TBD $123,500 50 Funds Reserved Santa Cruz 1500 Capitola Road Family Housing June 2023 $142,500 57 Funds Reserved Santa Cruz Downtown Library Apartments March 2025 $240,000 105 Funds Reserved Santa Cruz Calypso September 2024 $87,500 35 Funds Reserved Santa Cruz, CA Natural Bridges Apartments January 2025 $50,000 20 Funds Reserved Santa Ynez Harry's House May 2023 $150,000 60 Funds Reserved Seaside Lower Stilwell Privatized Military Housing March 2023 $240,000 96 Funds Reserved Soledad San Vicente Rentals Completed - 2021 $20,0008 Project Complete Unincorporated Monterey
County East Garrison Apartments TBD $165,000 66 Funds Reserved Watsonville Miles Lane Family Housing December 2023 $180,000 72 Funds Reserved Watsonville Pippin Phase II Apartments July 2024 $200,000 80 Funds Reserved Watsonville 1482 Freedom Blvd November 2023 $131,750 53 Funds Reserved FY 22-23 Member Agency Services
Provided in this report is an update on FY 22-23 Member Agency Services implementation activities.

Reach Code Program
On October 3, 2022, 3CE staff launched the Reach Code Program with program implementation support from a consultant, TRC Engineers. This redesigned program offers stakeholder outreach support and provides no-cost technical assistance to help Member Agencies adopt and implement reach codes.

Support includes presenting to key stakeholders, answering technical questions, attending meetings, developing customized ordinances, reviewing staff presentations and reports, and developing implementation tools to help Member Agencies enforce their reach codes. The Reach Code Program includes recommended model codes for new construction electrification, electric vehicle charging infrastructure, and existing building electrification.

Since launch, four Member Agencies have engaged in the program: City of Watsonville, City of San Luis Obispo, the County of Monterey, and the City of San Juan Bautista. 3CE is also supporting a regional reach code working group effort including the County of Santa Barbara and the Cities of Carpinteria and Goleta and being led by 3C-REN with support from Southern California Edison.

The following table summarizes program performance based on engagement and type of reach code being pursued:

Member Agency Type of Reach Code (NC, EB, EV)
County of Monterey New Construction and Electric Vehicle City of Watsonville New Construction and Electric Vehicle City of San Luis Obispo Existing Buildings
City of San Juan Bautista City Council Study Session (3/21/23) Electrify Your Fleet Program
On December 15, 2022, 3CE staff launched the Electrify Your Fleet (EYF) program. EYF provides incentives to Member Agencies to offset the cost of the purchase/lease of light duty, medium duty, and heavy-duty battery electric vehicles. These incentives are available as a post-purchase rebate or as a pre-purchase reservation.

The following figures summarize program performance based on applications received as of March 23, 2023.

Figure 1 (above): Shows Electrify Your Fleet funds distributed by Organization in FY 22/23 Figure 2 (above): Shows Electrify Your Fleet Program funds distributed by Vehicle Class in FY 22/23.

Charge Your Fleet Program
On December 15, 2022, 3CE staff launched the Charge Your Fleet (CYF) program. CYF is the complement to EYF and provides incentives to Member Agencies to offset the cost of the purchase and construction/installation of electric vehicle charging infrastructure. Charging stations may be either public facing or “behind the fence” and include Level 2 and/or Level 3 chargers. These incentives are available as a post-purchase rebate or as a pre-purchase reservation.

As of March 23, 2023, 3CE received and approved two applications for Level 3 DCFC projects for the City of Santa Cruz with one of those being approved for payment of a $100,000 rebate (completed project) and one approved for reservation of $50,000 (payment pending project completion).

Member Agency Building and Transportation Electrification Working Groups 3CE has established and is facilitating working groups focused on building and transportation electrification to drive participation in existing programs and inform future program design; identify common needs, barriers, and scalable solutions for regional electrification; and identify and share resources between Member Agencies and 3CE.

The next Building Electrification Working Group (BEWG) meeting will be held on April 27, 2023 and will focus on federal and state funding for municipal EV charging infrastructure. The BEWG will meet quarterly in 2023.

The Transportation Electrification Working Group (TEWG) met on February 23, 2023 and received project update presentations from two Member Agencies. 3CE staff presented on the suite of FY 22-23 transportation electrification programs. The TEWG will meet quarterly in 2023.

BEWG TEWG
None February 23
April 27 May 18
July 27 August 24
October 26 November 16
FY 22/23 Member Agency Services and Initiatives Launch Schedule Member Agency Services and Initiatives Proposed Launch
Plan Your Fleet Program FY Q2
Broadband Access Initiatives FY Q2
FY 22/23 Programs To-be-Launched
Plan Your Fleet Program
The Plan Your Fleet Program (PYF) will provide no-cost technical assistance to help Member Agencies electrify their fleets. PYF will be supported by a third-party planning, design, and engineering consultant. The consultant (TBD) will deliver a broad scope of services to 3CE Member Agencies to accelerate fleet electrification and development of Member Agency electric vehicle charging infrastructure across the 3CE service area.

Broadband Access Initiative
Through the Broadband Access Initiative, 3CE will collaborate with Member Agencies, Regional Broadband Consortia, and economic agencies to support greater broadband access and deployment. 3CE will provide funding to Member Agencies for the purpose of studying, planning, or implementing broadband initiatives that will increase broadband access in 3CE’s service area, particularly in rural, underserved, and geographically isolated regions. Funding is intended to serve regional broadband needs and increase facilitate increased customer engagement.

An Ad Hoc Committee (Broadband AHC) has been formed including Community Advisory Council members Heather Allen and Wayne Norton to provide recommendations and feedback to staff. Staff and Broadband AHC members have met three times.

Staff Report Item 1.4
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Treasurer’s Report (Information Only)
DATE: 4/12/2023
RECOMMENDATION:

That the Council receive the January 31, 2023 Treasurer’s Report.

ATTACHMENT(S):

1. January 31, 2023 Treasurer’s Report

Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 10
Financial Dashboard 11
Investment Summary 12
Table of Contents

TREASURER REPORT
Fiscal Year to Date
As of January 31, 2023
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying financial statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of January 31, 2023, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
March 3, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents
Held for working capital reserves 42,700,000 $
Held for reserves 71,612,663
Held for program commitments 6,500,000
Cash and cash equivalents 120,812,663
Accounts receivable, net of allowance 39,450,924
Accrued revenue 24,401,276
Loan receivable 185,467
Other receivables 20,844,281
Prepaid expenses 1,392,976
Deposits 12,508,027
Restricted cash 294,000
Investments - held for reserves 85,158,159
Total current assets 305,047,773
Noncurrent assets
Deposits 23,182
Loan receivable 1,614,833
Capital assets, net of depreciation 241,195
Total noncurrent assets 1,879,210
Total assets 306,926,983
Current liabilities
Accrued cost of electricity 41,493,544
Accounts payable 1,184,379
Other accrued liabilities 1,165,983
User taxes and energy surcharges due to other governments 1,659,121 Security deposits - energy suppliers 6,000,030
Total current liabilities 51,503,057
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 60,634,307
Investment in capital assets 241,195
Restricted for security collateral 294,000
Unrestricted 245,757,481
Total net position 246,292,676 $

NET POSITION
As of January 31, 2023

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES
See accountants' compilation report. 2

OPERATING REVENUES
Electricity sales, net 157,932,311 $
Liquidated damages 9,963,000
Other income 45,180
Total operating revenues 167,940,491

OPERATING EXPENSES
Cost of electricity 134,098,906
Contract services 2,639,611
Staff compensation 2,088,887
Other operating expenses 2,124,170
Depreciation 33,815
Total operating expenses 140,985,389
Operating income (loss) 26,955,102

NONOPERATING REVENUES (EXPENSES)
Interest and investment income 2,071,422
Grant revenue 1,450,969
Nonoperating revenues (expenses) 3,522,391
CHANGE IN NET POSITION 30,477,493
Net position at beginning of period 215,815,183
Net position at end of period 246,292,676 $
Four Months Ended January 31, 2023

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 3

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 162,182,130 $
Receipts from liquidated damages 147,000
Receipts from suppliers 880,396
Other operating receipts 45,180
Payments to suppliers for electricity (133,026,985)
Payments for other goods and services (4,930,547)
Payments for staff compensation (2,114,966)
Payments of taxes and energy surcharges to other governments (3,271,718) Net cash provided by operating activities 19,910,490

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments received on loan receivable 199,700
Receipts from grantor 1,450,969
Net cash provided by non-capital
financing activities 1,650,669

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (55,692)
(55,692)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 2,370,327
Sales of investments 12,500,000
Purchase of investments (65,660,000)
Net cash provided (used) by investing activities (50,789,673) Net change in cash and cash equivalents (29,284,206)
Cash and cash equivalents at beginning of year 150,390,869 Cash and cash equivalents at end of period 121,106,663 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 120,812,663 $
Restricted cash 294,000
Cash and cash equivalents 121,106,663 $
Four Months Ended January 31, 2023

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
Operating income (loss) 26,955,102 $
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 33,815
Provision for uncollectible accounts 954,091
(Increase) decrease in:

Accounts receivable, net 6,702,585
Accrued revenue (6,239,329)
Other receivables (10,058,396)
Prepaid expenses (1,084,557)
Deposits (4,214,097)
Increase (decrease) in:

Accrued cost of electricity 1,418,962
Accounts payable (404,832)
Other accrued liabilities 129,959
User taxes and energy surcharges due to other governments (282,843) Security deposits - energy suppliers 6,000,030
Net cash provided by operating activities 19,910,490 $

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Four Months Ended January 31, 2023

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5
6 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule and a supplemental budgetary comparison schedule for the period ended January 31, 2023, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
March 3, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2022/23 YTD
Budget
2022/23 YTD
Actual
2022/23 YTD
Budget Variance
(Under) Over
2022/23 YTD
Actual / Budget %
2022/23 Annual
Budget
2022/23 Budget
Less Actual
2022/23 Budget
Remaining /
Budget %

REVENUES AND OTHER SOURCES
Electricity sales 160,819,000 $ 161,788,340 $ 969,340 $ 101% 436,500,000 $ 274,711,660 $ 63% Less uncollectible accounts (2,500,000) (2,405,060) 94,940 96% (7,500,000) (5,094,940) 68% Net revenue - electricity 158,319,000 159,383,280 1,064,280 101% 429,000,000 269,616,720 63% Revenue for damages 9,963,000 - 9,963,000 n/a - (9,963,000) n/a Investment and miscellaneous income - 2,116,602 2,116,602 n/a - (2,116,602) n/a Total revenues and other sources 158,319,000 171,462,882 13,143,882 108% 429,000,000 257,537,118 60% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 134,296,238 116,930,000 17,366,238 115% 377,919,000 243,622,762 64% Energy programs (incentives and grants) 5,331,000 1,509,756 (3,821,244) 28% 15,992,000 14,482,244 91% Data manager 335,343 153,000 182,343 219% 2,793,000 2,457,657 88% Utility service fees 700,000 576,207 (123,793) 82% 2,100,000 1,523,793 73% Staffing 3,078,000 2,088,887 (989,113) 68% 9,244,000 7,155,113 77% Professional services 1,584,000 782,917 (801,083) 49% 3,397,000 2,614,083 77% Legal services 655,000 508,034 (146,966) 78% 1,965,000 1,456,966 74% Marketing and customer enrollment 67,651 331,000 (263,349) 20% 994,000 926,349 93% Other general & administration 1,321,000 786,541 (534,459) 60% 3,746,000 2,959,459 79% Total current expenditures 130,083,000 140,951,574 10,868,574 108% 418,150,000 277,198,426 66% Other Uses
Capital outlay - 55,693 55,693 n/a - (55,693) n/a
Total other uses - 55,693 55,693 n/a - (55,693)
Total Expenditures and Other Uses 130,083,000 141,007,267 10,924,267 108% 418,150,000 277,142,733 66% Surplus (Deficit) 28,236,000 $ 30,455,615 $ 2,219,615 $ 10,850,000 $ (19,605,615) $ -181% Reserves at end of reporting period: Held for Working Capital 42,700,000 $ Held for Reserves - Cash and Cash Equivalents 71,612,663 Held for Reserves - Investments 85,158,159 Total 199,470,822 $

CENTRAL COAST COMMUNITY ENERGY

SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE
Four Months Ended January 31, 2023
See accountants' compilation report. 3
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 30,455,615 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (33,815)
Add back capital asset acquisitions 55,693
Change in Net Position 30,477,493 $

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Four Months Ended January 31, 2023
See accountants' compilation report. 8
Budget Item YTD Variance Comment
Electric Sales Revenue 0.6% Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.

Cost of Energy 14.9% Variances in this category are typically due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers. Cost of energy includes scheduling coordinator fees for budget purposes only.

Staffing (32.1%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (50.6%) This category includes accounting, IT, technical and other consultants.

Legal Costs (22.4%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (79.6%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services 119.2% These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (17.7%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (40.5%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (71.7%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2022 through January 31, 2023
$3.9
‐$2.4
Act
Bud
$25.1
$41.4
$51.1
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$159.4
$158.3
$429.0
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 415 407 429 406
Budget 453 425 424 431 393 418 424 426 450 474 481 444
0 100
200
300
400
500
600

CUSTOMERS

SALES VOLUME
406 GWh

STD MARGIN
$3.9M (10%)
Δ in NET ASSETS
$4.8M

REVENUE
$42.2M
Cumulative YTD Electricity Sales
Cumulative YTD Direct Margin
(Electricity Sales less Cost of Energy)
Data Definitions:

CUSTOMERS: Count of active customers from Calpine.

REPORTED / SALES VOLUME: Best available estimate of actual meter volume.  Currently based on T+8 SQMD Report and T+48 when available.

REVENUE: Total Operating Revenue, net of uncollectible, (excludes Miscellaneous and Interest income).

NON‐OP REV: Other uses, primarily Interest Income
ELECTRICITY SALES: Sales from electricity (net of uncollectible).

STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from  FY22/23 budget
Monthly Sales Volume (GWh)
Financial Dashboard: January 2023
Margin %

CUSTOMERS
445,000
ACTIVE
January revenue of $42.2M accounts for 406
GWh in net retail consumption and includes
$1.5M in CAPP funds received. This comes in
25Gwh above budgeted volume.

Year‐to‐date electricity revenue is $159.4M
compared to a budget of $158.3M. YTD
Direct Margin (defined as Sales less Cost of
Energy) of $25.1M missed budget by
$16.3M.

The chart to the right shows volume
comparison to budgeted volume.

The charts below display cumulative
revenue and margin $ vs budget.
46%
44%
10%
37%
39%
12%
Res
Com
Ag
YTD Month
47%
44%
9%
35%
40%
13%
Res
Com
Ag
YTD Month
Revenue $42.2
C.O.E. $34.6
OpEx $2.8
Net Income $4.8 10.1%
‐7.3%
Act
Bud
Margin $
10 Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank - Money Market and other Interest Earning AccountsFunds Invested - Average Balance $ 68,793,882 $ 70,230,463 $ 70,636,473 $ 68,570,477 -$ $ - $ - $ - $ - $ - $ - $ -Gains/Losses/Interest $ 422,478 $ 85,008 $ 94,651 $ 119,286 $ 123,533 Average APY 1.48% 1.62% 2.03% 2.16%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance $ 40,162,814 $ 45,259,882 $ 55,127,902 $ 47,699,367 -$ $ - $ - $ - $ - $ - $ - $ - Gains/Losses/Interest $ 635,730 67,213.37 146,549.22 207,805 214,163 - - - - - - Average APY 2.01% 3.89% 4.52% 5.39%RBC GAM / Principal Financal Funds Invested - Average Balance $ 75,380,564 $ 75,641,706 $ 75,948,593 $ 76,212,285 -$ $ - $ - $ - $ - $ - $ - $ - Gains/Losses/Interest $ 978,064 143,733.97 261,142.30 306,886.17 266,301.86 - - - - - - Average APY 2.29% 4.14% 4.85% 4.19%Benchmark - iShares ICE Short Treasury Index 0.47% 0.47% 0.47% 0.47%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2022 through January 31, 2023
11 Staff Report Item 2.1
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report (Discussion Item)
DATE: 4/12/2023

STAFFING UPDATE
Fernanda Ocaña- Customer Accounts Manager. Fernanda brings extensive experience in community outreach work, having managed programs for the City of Salinas, and Building Healthy Communities for East Salinas. Fernanda co-founded the first-ever, youth-led non-profit to serve the needs of LGBTQ foster youth in Monterey County. Her skills in leading community meetings, awareness raising, and facilitating workshops, as well as her network of relationships having served on multiple City committees and as a board member and volunteer for local non-profits, brings an important and much-needed skill set to 3CE.

SAN LUIS OBISPO COUNTY VOTES TO SEEK MEMBERSHIP IN 3CE
The County of San Luis Obispo Board of Supervisors voted to request membership in Central Coast Community Energy at their regularly held meeting on March 21. The vote represents the third time the issue has come before the County. The supervisors expressed support for the cost savings provided by 3CE, as well as their interest in working regionally and collaboratively on energy issues with other locally elected bodies on the Central Coast. 3CE staff is working to prepare an Implementation Plan and Amendment to the JPA, so that if its Board accepts the membership request, a representative from the County could be seated in time for 3CE’s June Policy Board meeting.

BILLS ADDRESSING INTERCONNECTION DELAYS
Delays in interconnecting both new load and new electric generation facilities to the grid have emerged as the root cause of impacts preventing the provision of new load to serve new and expanding businesses, housing, and to meet the state’s reliability and decarbonization efforts.

The scale of the problem has also made interconnection delays an emerging focus of 2023 energy legislation. Responding to constituent concerns, Legislators from across the state have introduced bills attempting to address the problem, resulting in ten interconnection-focused bills. Many take similar approaches, and they can be roughly divided into three categories: (1) streamlining California Environmental Quality Act evaluations; (2) setting timelines for interconnection evaluations; and (3) improving communication between government agencies involved in interconnection. The number of bills makes it unlikely that all of them will pass, and staff are evaluating which are most likely to produce effective results. It remains too early in the session to evaluate the support and opposition on each bill, but legislators have expressed clear interest in doing something to address the issue this session.

STATE BUDGET ENERGY TRAILER BILL
The energy trailer bill associated with Governor Newsom’s proposed state budget contains language of significant concern to 3CE. Among other provisions it would: 1) increase California Public Utilities Commission (the “Commission”) authority over CCAs in the Integrated Resource Planning program and the Commission’s authority to mandate CCA procurement more broadly; 2) authorize more centralized procurement of new resources by the investor-owned utilities and the California Department of Water Resources on behalf of all Californians; and 3) impose a new financial penalty on load serving entities with deficiencies in the Resource Adequacy program. 3CE staff are following this issue closely and working with other stakeholders to improve the language.

INVESTIGATION OF DEMAND MANAGEMENT OPPORTUNITIES
As part of a 3CE demand management initiative, staff have conducted research, received vendor demos, and spoken with other CCAs regarding potential Demand Response and load shifting program concepts.

These efforts will inform staff’s development of a Request for Information to be issued in Spring 2023 and program implementation in FY 23/24.

REAL-TIME PRICING PILOTS
3CE is planning to participate in a set of PG&E pilot programs that will give qualifying customers access to real-time pricing on a two-year trial basis. The pilots, which the Commission approved the structure of in August 2022, will require PG&E to develop the price modeling and billing infrastructure necessary to support real-time pricing. Rates will be based on hourly marginal energy cost data from the California Independent System Operator’s (“CAISO”) day-ahead market alongside several other variables. The pilots are still early in development, with the main pricing model and the exact customer eligibility requirements still to be built out. Enrollment outreach would not begin until Q4 of 2023 at the earliest. 3CE’s participation in the pilots means that eligible 3CE customers will have access to a rate schedule designed by PG&E while remaining 3CE customers.

These pilots come at a time of growing interest in real-time pricing and demand flexibility by energy regulators. In addition to providing a new rate option for some of 3CE’s customers, they will allow 3CE staff to establish data access protocols with PG&E that may be necessary for eventual compliance with the California Energy Commission’s Load Management Standards which seek to have most CCAs provide real-time rates by 2025. Staff will continue to work with PG&E as the pilot rules are fleshed out this year and update the Board as needed.

ENERGY MARKET UPDATE
Last week, natural gas prices in California were the highest in the country due to below-average temperatures increasing demand, low gas storage levels, and gas transportation constraints into the state.

Electricity prices were also higher due to cooler-than-normal temperatures with import energy serving almost 30% of demand. Prices are expected to see temporary relief soon as a result of the abundant hydro generation capacity stemming from this winter's storms.

ATTACHMENT(S):

1. 2023 March Customer Enrollment and Engagement Report

2. 3CE Contracts Less Than $100k

Customer Enrollment and Engagement Report
Central Coast Community Energy
Communications and Outreach
February 2023
I. Member Agency Services Meetings:
3CE staff presented before the Cities of Pacific Grove, Scotts Valley, Seaside, and Gonzales to share accomplishments, programs, and goals as well as agency-specific data about 3CE investment in each community.

II. Enrollment/Opt-Outs:

Total Opt-Out request for February 2023: 250
Concerns about
Government-Run
Power Agency
12%
Decline to
Provide
15%
Dislike being
automatically
enrolled
23%
Have renewable
Energy Reliability
Concerns
0%
Other
10%
Rate or Cost
Concerns
35%
Service or Billing
Concerns
5%

90.42%

96.85%

87.86%

94.09%

96.31%

98.11%

94.91%

96.43%

96.70%

92.92%

96.29%

90.89%

90.45%

89.47%

95.82%

92.43%

96.40%

96.88%

92.62%

95.66%

93.26%

88.66%

97.90%

95.65%

87.49%

86.93%

95.84%

96.09%

94.68%

97.75%

95.39%

97.15%

95.31%

80.00% 82.00% 84.00% 86.00% 88.00% 90.00% 92.00% 94.00% 96.00% 98.00% 100.00%

WATSONVILLE INC

SOLVANG INC

SOLEDAD INC

SEASIDE INC

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ CO

SANTA CRUZ

SANTA BARBARA CO

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO CO

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY CO

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPINTERIA
CARMEL

CAPITOLA

BUELLTON

ARROYO GRANDE
Percentage of Eligible Enrollment as of March 1, 2023

94.00%

96.40%

93.70%

95.90%

94.70%

91.30%

94.90%

96.50%

81.00%

69.60%

97.50%

92.10%

94.20%

92.80%

96.10%

86.20%

96.60%

95.80%

93.60%

93.10%

93.20%

91.60%

99.10%

96.20%

94.80%

96.90%

85.40%

97.10%

95.95%

97.80%

67.80%

94.90%

93.40%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

WATSONVILLE

SOLVANG

SOLEDAD

SEASIDE

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ COUNTY

SANTA CRUZ

SANTA BARBARA COUNTY

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO COUNTY

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY COUNTY

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPINTERIA
CARMEL

CAPITOLA

BUELLTON

ARROYO GRANDE
Percent of eligible load served as of March 2023
III. Media Outreach
February 2023
Facebook
Followers: 1,891
Post Reach: 45,497
Post engagement: 13,349
New page followers: 2
Link Clicks: 9
Top Performing Content: 3CE booth at Santa Maria
Valley Business Expo
Facebook En Espanol
Followers: 181
Post Reach: 29
Post engagement: 172
New page followers: 0
Link Clicks: 9
Top Performing Content: Hydrostor press release in
Spanish
Instagram
Followers: 902
Reach: 1,258
Top Performing Content: McKenzie Family Farms
drone photos – Ag Electrification Program
New Followers: 29
Twitter
Followers: 1,101
Top Performing Content: March is Women’s History
Month/Recognizing 3CE’s board members
LinkedIn
Followers: 1,694
Top Performing Content: March is Women’s History Month/Recognizing 3CE’s board members Earned media:

Electrify Your Home Program
https://www.kclu.org/2023-03-03/central-coast-residents-could-save-thousands-of-dollars-when-changing-how-they-heat-their-homes Electrify Your Fleet Program
https://www.noozhawk.com/county-adopts-zero-emission-vehicle-policy-for-its-fleet/ Ag Electrification Program/Concierge Service
Central Coast electricity provider incentivizes farms to go all-electric (kcbx.org) https://cal-cca.org/central-coast-community-energy-breaks-barriers-to-ag-electrification-offers-dc-fast-charger-rebates-and-technical-assistance/ Hydrostor Storage Facility Project
https://www.independent.com/2023/02/01/santa-barbara-county-to-get-new-green-energy-technology/ https://www.publicpower.org/periodical/article/technologies-offer-increasing-array-long-duration-energy-storage-options The Ins and Outs of Compressed Air Energy Storage - Market Insights (eepower.com) PR Newswire | Sustainability Magazine
Technologies Offer Increasing Array of Long Duration Energy Storage Options – EQ Mag – The Leading Solar Magazine In India (eqmagpro.com)
SLO County and 3CE
Recent Supervisors Election 02.17.2023 - KPRL Radio 1230AM & 99.3FM

CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 2 Lucid Sound and Picture $90,000 3/15/2023 9/30/2023 Video Production Services in Support of Energy Programs Awareness 3 Yellow Bus LLC $83,250 3/27/2023 9/30/2023 Advertising, Creative and Graphics Design Services 4 NewGen Strategies and Solutions $116,000 5/25/2022 6/30/2023 Amendment No.2 to Increase Agreement by $21K for FY22-2023 for Rate Support 5 Pisenti & Brinker LLP $18,500 9/30/2022 9/30/2023 Audit Support for Years Septemeber 2022 and September 2023 6 Staff Report Item 2.2
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Approve and Authorize CEO to Execute an Agreement with Optony, Inc. to Provide Member Agency Fleet Electrification Services for a Total Not to Exceed Amount of $450,000 and a Term ending on September 30, 2024
DATE: 4/12/2023
RECOMMENDATION:

This recommends the Operations Board approve and authorize the CEO to execute an agreement with Optony, Inc. to provide technical assistance services to support 3CE Member Agency fleet electrification efforts in an amount not to exceed $450,000 and a term ending September 30, 2024.

BACKGROUND:

On September 22, 2022, the 3CE Policy Board of Directors adopted the FY 22/23 Operating Budget that includes approximately $16M for the FY 22/23 Energy Programs Portfolio of which the Member Agency Plan Your Fleet program is a part.

DISCUSSION/ANALYSIS:

Emissions from transportation represent the largest source of greenhouse gas emissions in 3CE’s service area. State and local government fleets will be required to ensure 50 percent of vehicle purchases are zero-emission beginning in 2024 and 100 percent of vehicle purchases are zero-emission by 2027.

Over the last year, 3CE staff met with Member Agency staff in one-on-one and technical working group meetings to learn about challenges preventing electrification of fleets and other operations. Through that process, 3CE identified that, like other customer segments, the lack of available staff and electrification planning expertise requires direct customer support of fleet electrification.

Through 3CE’s Plan Your Fleet (PYF) program, Optony will offer a full suite of no-cost technical assistance services to Member Agencies to accelerate fleet electrification and development of electric charging infrastructure across the 3CE service area. Optony will provide hands on technical assistance to Member Agency fleet managers and staff that have committed to replacing vehicles in their fleets with electric alternatives within the next two years. Technical assistance will be offered as a complete menu of services, including fleet replacement planning, specific project design and engineering, including basis of design and schematic design construction documents to be utilized during the installation bidding process, EV charging infrastructure recommendations, recommended charging schedules specific to vehicle duty cycles to minimize ongoing costs, and a funding plan for each project that outlines and assists each agency in obtaining rebates, grants, and other funding assistance.

The program is open to all 3CE Member Agencies and electric vehicles of all types and classes are eligible, but we will focus primarily on smaller agencies with limited staff. The proposed technical assistance is in addition to, and not replacing, 3CE’s existing incentives to Member Agencies for electric vehicles and charging infrastructure through its Electrify Your Fleet and Charge Your Fleet programs.

FISCAL IMPACT:

The total amount payable by 3CE to Optony under this agreement shall not exceed (the “NTE”) the sum of $450,000 as follows:

1. The NTE in FY 22/23 shall not exceed $200,000. These costs are included in the approved FY 22/23 Operating Budget.

2. The NTE in FY 23/24 shall not exceed $250,000, or such amount consistent with the approved FY 23/24 Operating Budget.

CONCLUSION:

The Board’s approval of the agreement with Optony, Inc. will allow 3CE to better support Member Agency fleet electrification on a regional scale and support smaller Member Agencies supplement and leverage existing staff to support electrification.

ATTACHMENT(S):

1. Draft Standard Services Agreement with Optony, Inc.

2. Member Agency Plan Your Fleet Program Presentation
4/5/2023 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and OPTONY INC. (hereinafter “CONTRACTOR”), a California C-Corporation with its principal place of business located at 5201 Great America Parkway, Suite 320, Santa Clara, CA 95054. 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.” In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:

1. GENERAL DESCRIPTION

1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement. The goods and/or services are generally described as technical assistance consulting services to support 3CE Member Agency fleet transportation electrification.

2. PAYMENT PROVISIONS

2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $450,000.00 as follows:

2.1.1.The NTE in FY 2022-2023 shall not exceed $200,000.

2.1.2.The NTE in FY 2023-2024 shall not exceed $250,000, subject to FY 2023-2024 Operating Budget approval by the 3CE Board.

3. TERM OF AGREEMENT

3.1. The term of this Agreement is from the date of execution until September 30, 2024, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.

CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.

3.2. 3CE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.

4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS

4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:
4/5/2023 2 Contract Number: ______________

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information

5. PERFORMANCE STANDARDS

5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.

5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

6. PAYMENT CONDITIONS

6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.

6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR.

6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.

6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE.

7. TERMINATION

7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of 4/5/2023 3 Contract Number: ______________
such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.

7.2. 3CE may cancel and terminate this Agreement for good cause effective immediately upon written notice to CONTRACTOR. “Good cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement. If 3CE terminates this Agreement for good cause, 3CE may be relieved of the payment of any consideration to CONTRACTOR, and 3CE may proceed with the work in any manner, which 3CE deems proper. The cost to 3CE shall be deducted from any sum due the CONTRACTOR under this Agreement. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion only to the services deemed unacceptable prior to the date of termination. Contractor is not responsible for reimbursing any previously accepted services.

8. INDEMNIFICATION

8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.

8.1.1.The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE which shall not be unreasonably withheld, and response provided within 60 days.

8.1.2.Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.

8.1.3. Limitation of Liability
To the fullest extent permitted by law, the total liability, in the aggregate, of CONTRACTOR, CONTRACTOR’s officers, directors, owners, partners, employees, agents, and subconsultants, to 3CE, and anyone claiming by, through, or under 3CE for any claims, losses, costs, or damages whatsoever arising out of, resulting from or in any way related to this Project or Agreement from any cause or causes, including but not limited to negligence, professional errors and omissions, strict liability, breach of contract, or breach of warranty, shall not exceed the required limits of insurance in this Contract.
4/5/2023 4 Contract Number: ______________

9. INSURANCE REQUIREMENTS

9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.

9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross-liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.

9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.

9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.

9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.

9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement. 4/5/2023 5 Contract Number: ______________

9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.

10. RECORD AND CONFIDENTIALITY

10.1. CONTRACTOR and its officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. CONTRACTOR shall not disclose any confidential records or other confidential information received from 3CE or prepared in connection with the performance of this Agreement, unless 3CE specifically permits CONTRACTOR to disclose such records or information. CONTRACTOR shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or information. CONTRACTOR shall not use any confidential information gained by CONTRACTOR in the performance of this Agreement except for the sole purpose of carrying out CONTRACTOR’s obligations under this Agreement.

10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.

10.2. Upon expiration or termination of this Agreement, CONTRACTOR shall return to 3CE or destroy any 3CE records which CONTRACTOR used or received from 3CE to perform services under this Agreement.

10.3. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three-year period, then CONTRACTOR shall retain said records until such action is resolved.

10.4. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the 4/5/2023 6 Contract Number: ______________
examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

10.5. 3CE shall have a royalty-free, exclusive and irrevocable license to reproduce, publish, and use, and authorize others to do so, all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature uniquely and completely produced in the course of or under this Agreement. Except with the member agency for whom any materials have been produced, CONTRACTOR shall not publish any such material without the prior written approval of 3CE. Any software, tools, methodologies, intellectual property already existing shall remain property of the CONTRACTOR regardless of use under this Agreement.

10.6. Given that the deliverables created under this Agreement will be produced under the direction of and for the benefit of 3CE member agencies, materials produced as direct Works for Hire may be disclosed, shared, published by CONTRACTOR under the direction and approval of specific member agency representative.

11. NON-DISCRIMINATION

11.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.

12. INDEPENDENT CONTRACTOR

12.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE. No offer or obligation of permanent employment with 3CE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.

13. NOTICES
4/5/2023 7 Contract Number: ______________

13.1. Notices required under this Agreement shall be delivered personally or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below:

Central Coast Community Energy Optony Inc.

Chief Financial Officer Chief Executive Officer
70 Garden Court, Suite 300 5201 Great America Parkway, Suite 320 Monterey, CA 93940 Santa Clara, CA 95054

14. MISCELLANEOUS PROVISIONS

14.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.

14.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by 3CE and the CONTRACTOR.

14.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.

14.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.

14.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.

14.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.

14.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.
4/5/2023 8 Contract Number: ______________

14.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.

14.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.

14.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.

14.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.

14.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.

14.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

14.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

14.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

14.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.

14.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control. 4/5/2023 9 Contract Number: ______________
SIGNATURE OF THE PARTIES:

Vendor Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Robert M. Shaw, CEO Date: ____________________________ Date: ____________________________ Vendor Approved as to Form
BY:__________________________________ BY:______________________________________ Title:_____________________________ Brian Kimball, General Counsel Date: ____________________________ Date: ____________________________ Approved as to Financial Terms
BY:______________________________________
_____________________,
_____________________
Date: ____________________________
4/5/2023 10 Contract Number: ______________
Exhibit A: Scope of Services
In consideration of the payments set forth in Exhibit B, Contractor shall provide the following services:

Program Overview
Through Central Coast Community Energy’s (3CE) Plan Your Fleet (PYF) Program, Contractor will provide a full suite of technical assistance services to Member Agencies from overall fleet planning to infrastructure project design and engineering.

The Contractor will provide hands on technical assistance to Member Agency fleet managers and staff that have committed to replacing vehicles in their fleets with electric alternatives in the next two years.

Technical assistance will be offered as a complete menu of services, further outlined in this scope of work, including a fleet replacement plan, specific project design and engineering, including basis of design and schematic design construction documents to be utilized during the installation bidding process, EV charging infrastructure recommendations, recommended charging schedules specific to vehicle duty cycles to minimize ongoing costs, and a funding plan for each project that outlines and assists each agency in obtaining rebates, grants, and other funding assistance.

The program is open to all 3CE Member Agencies and electric vehicles of all types and classes are eligible. Agency recruitment will be led by 3CE staff. In addition to the technical assistance to be provided by the Contractor, 3CE is also providing incentives to help pay for vehicle replacements and charging infrastructure through its Electrify Your Fleet and Charge Your Fleet Member Agency Programs.

Scope of Work
The scope of work of this project is outlined in the key objectives and other sections below.

Goals

1. Enable deployment of Member Agency fleet electrification and associated EV charging infrastructure projects.

2. Prepare participating Member Agencies to plan for and comply with upcoming state public fleet electrification targets.

3. Support Member Agencies with fleet electrification best practices and case studies in support of upcoming state public fleet electrification targets.

4. Share available funding resources to the greatest extent practicable to minimize cost to the participating agencies while ensuring expedient project delivery.

5. Facilitate maximum operational cost savings to fleet managers with guidance, analysis, and trial use of charge management solutions.

Contractor Tasks
Contractor shall provide the following:
4/5/2023 11 Contract Number: ______________
1 Administrative Tasks

1. Kickoff Meeting
Participate in a kickoff meeting with 3CE to review objectives, budget, timeline, administrative processes, and contract at a mutually agreed time.

2. Monthly Progress Report and Call
Provide a short monthly progress report and associated call with the designated 3CE contract administrator. This monthly progress report may be a table with links and will describe customers engaged, project progress, challenges encountered, a description of additional funding or resources secured, and objectives for the following month. Major supplementary documentation developed in the course of work must be submitted with the Progress Report as agreed with the 3CE contract administrator. This supplementary documentation may include technical designs, vehicle and/or charging infrastructure recommendations and/or specifications, and any materials developed for Member Agency use.

3. First Year Report
Contractor shall provide a report at the close of the project’s first fiscal year that includes an executive summary, major accomplishments to date, lessons learned and recommendations for future work, overview and assessment of fleet replacement plans and EV charging project plans delivered to date, and financial summary comparing actual expenditures to the project budget. Draft reports will be submitted to 3CE for review and approval before being finalized.

The mid-year report should also include key performance indicators (may be a table), such as:
 Total fleets engaged, including a status summary
 Total fleets receiving support
 Expected number of EVs and charging infrastructure to be deployed, by fleet  Reduction in total ownership costs to fleets
 Estimated fuel and emissions savings, per fleet

4. Final Report
As part of the completion of the contract, Contractor shall provide a final report for public distribution, subject to review and approval by 3CE, that includes an executive summary, challenges encountered and lessons learned, best practices for other public agency fleets, case studies suitable for sharing with other fleets, summary of total program cost, impact and key performance indicators utilized in annual reports.

Task 1 Deliverables
 Monthly progress reports
 First Year Report
 One (1) Final Report
4/5/2023 12 Contract Number: ______________
2 Program Launch
During the Program Launch phase, Contractor will support 3CE by providing best practices and guidance on the success of the program. This will include tasks such as:
- Development of a program implementation guide including eligibility criteria - Development of an internal program workflow to manage program participant point of contract and fleet electrification general status
- A process flow for Member Agencies to handoff participants to the program after outreach - Outline of program code of conduct and communications protocols - Creation of an intake application
- Creation of data collection tools, and templates
- Other administrative tasks as they arise
Task 2 Deliverables
 Program implementation guide
 Internal program workflow graphic and/or explanation showing handoff points to subconsultants, draft and final deliverables
 Process flow for Member Agencies (graphic and/or explanation)  Intake application
 Data collection tools
3 Program Outreach Events
Contractor to provide information, best practices, lessons learned, etc. to public stakeholders, including other public agencies that are not participating in the program, to generally promote fleet electrification. This will include participation in a minimum of two webinars or events outlined below.

1. Outreach Event 1 - Recruitment. Contractor will prepare presentation materials and participate in an event that promotes the program to fleet managers and other key staff from local fleets, including an overview of fleet electrification processes, benefits and considerations of electrification, preview of project engagement steps and schedule, etc. This webinar or event is expected to take place as soon as practicable and within the first 2-4 months of the program and is intended to solicit interest in the program.

2. Outreach Event 2 - Promoting Results. Contractor will prepare presentation materials and participate in an event that promotes project results, best practices and lessons learned, benefits facilitated with fleet managers and Member Agencies, etc. to non-participating fleet managers to share information and encourage future participation in the program. This webinar is expected to take place after the first year of the program and is intended to share information and further encourage non-participating entities to begin electrification efforts. 4/5/2023 13 Contract Number: ______________
3CE will review and approve Contractors’ presentation materials prior to being shared with the public.

Task 3 Deliverables
 Two (2) Outreach Events or Webinars
4 Technical Assistance

1. Member Agency staff engagement and data collection
In coordination with 3CE staff, Contractor will facilitate outreach and engagement with local agency staff and other stakeholders to collect fleet and other relevant data and assist in project planning. This engagement will include the following:

1. Organize and schedule meetings with Member Agency staff, in coordination with 3CE, develop agendas, circulate meeting minutes, etc.

2. Facilitate a kickoff meeting with Member Agency staff and 3CE and follow up meetings, as relevant, to gather:
o Baseline information (e.g., fleet inventories, “as-builts,” current electrical infrastructure layout, panel schedules, and capacity, etc.) o Existing or proposed near-term and long-term fleet transition policies o Other information needed to scope specific projects

3. Contractor will gather information on vehicle data, including vehicle characteristics and duty cycles and facility information (e.g., electrical capacity and other relevant details).

4. Contractor will utilize templates for data collection that seek to minimize the level of effort needed on behalf of fleet managers.

5. Contractor will share data obtained from Member Agencies with 3CE.

2. Develop vehicle replacement and procurement plans
Contractor will develop vehicle replacement and procurement plans that outline a roughly 10-year, or other schedule as mutually determined by Contractor and Member Agency customer. The plans will include an analysis of the total vehicle fleet, estimated duty cycles and vehicle use, factor in any relevant public fleet emissions reductions targets set by local or state agencies (e.g. the California Air Resources Board Advanced Clean Fleet rules for public), and include the following:

1. Analysis of existing fleet vehicles and current duty cycles.

2. Identification of 1 for 1 electric vehicle alternative options for each vehicle in the fleet, noting market availability and when replacements are not yet available or practical due to conditions such as range, hauling capacity, or other use cases (e.g. pursuit-rated police vehicles).

Recommended electric vehicle replacements don’t need to be an exhaustive list. Contractor will note general availability of these vehicles on cooperative purchasing contracts (e.g. Sourcewell, Drive EV Fleets, California Department of General Services, etc.,) to streamline future vehicle procurement.
4/5/2023 14 Contract Number: ______________

3. Vehicle replacement schedule that aligns with the fleet’s typical replacement cycle, but also factors in state or local electrification timing requirements such as the California Air Resources Board Advanced Clean Fleet regulations. When practical, replacement schedules should start with “low-hanging fruit” options such as pool cars, light-duty vehicles, etc. as well as agency priority replacements, before moving to more difficult use cases over time.

4. Estimated purchase price and an approximated total cost of ownership of each vehicle replacement in comparison to the internal-combustion engine equivalent over the service life of the vehicle.

5. Energy needs assessment for the electric fleet, which includes a calculation of each vehicle replacement’s estimated annual electricity needs.

6. Recommended charging infrastructure types for each vehicle, which factors in estimated daily duty cycles (e.g., Level 2, high-power Level 2, DC fast charging of various power capacities, etc.) and vehicle charging needs. Recommendations for specific charging infrastructure models for the vehicle replacements identified, including piggybacking and cooperative contract procurement options (e.g., Sourcewell, Drive EV Fleets, etc.), if available, to streamline project timelines.

Vehicle replacement and procurement plans should note the following, when applicable:

1. Consolidation opportunities to replace multiple underutilized vehicles with a fewer number of vehicles.

2. “Right-sizing” opportunities to replace a vehicle with a smaller vehicle, if the duty cycle or use has changed.

Contractor shall make proprietary tools or software (e.g., Municipal Fleet Planning Tool) available to fleet managers for the duration of the project.

Vehicle replacement and procurement plans will be reviewed by both the participating agency and 3CE.

Contractor will correct, edit, and amend the plans prior to being finalized.

3. Produce charging infrastructure project plans
Contractor will produce complete project plans for the installation of EV charging infrastructure at one location chosen by each participating Member Agency. Project plans should seek to include other utility programs such as PG&E’s EV Fleets Program, which covers electricity upgrades and other front of the meter capacity upgrades, as relevant. Project plans should also future proof as much as practical and relevant. These plans shall include:

1. Facility assessment, including the determination of electrical infrastructure capacity to support recommended charging equipment, existing electrical service, potential connection points for EV charging infrastructure, identification of suitable locations for supporting electrical 4/5/2023 15 Contract Number: ______________
infrastructure (panels, transformers, etc.), ADA requirements as necessary, potential trenching and/or conduit run routes, identify other site-specific challenges or opportunities to the project.

2. Electrical load analyses, as needed.

3. Project cost estimate.

4. Construction engineering documents that the agency can use in a public bid to hire contractors for installation services. These documents will include:
a. Basis of Design
i. Project summary and description
ii. Engineering requirements and performance specifications iii. Identification of ADA compliant EV stalls, if required iv. Considerations for grading, if required
v. Equipment specifications and cutsheets
vi. Other documents, as required by the Member Agency, to bid these charging station installation projects or receive permits
b. Schematic Design Documents
i. Architectural site plan of the parking areas and other facilities, as relevant ii. Electrical single-line diagrams
iii. Trenching and/or conduit routes
iv. Panel schedules, if required

5. Contractor shall arrange for a site walk with local agency contact to gather information to complete this task, as necessary.

6. Charging infrastructure project plans will be reviewed by both the participating Member Agency and 3CE. Contractor will correct, edit, and amend the plans prior to being finalized.

4. Funding Package Overview
For each project, Contractor shall provide a detailed Funding Package Overview (may be a table), which includes:

1. Currently available funding options for both the vehicles and charging infrastructure from relevant funding sources.

2. The Overview will include any requirements unique to the funding agency such as vehicle utilization, access, vehicle types or use cases, etc.
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3. Contractors should seek opportunities to stack funding, as relevant and allowable, to minimize costs to public agencies.

4. Contractors shall also provide all information to the agencies to minimize effort needed by the fleet managers to apply for funding.

5. The Funding Package Overview for each participating agency shall be reviewed and approved by 3CE before being finalized.

5. Charging Schedule and Optimization Plan
For each project, Contractor will provide a Charging Schedule and Optimization Plan, in the form of a brief memo, which includes:

1. Simulated 15-minute charging load profiles based on vehicle behavior, duty cycles, and total energy needs, with and without charge optimization

2. Costs and other impacts of optimized and non-optimized charging

3. Recommended charging schedules based on maximum cost benefit to fleet, including time of use and demand charge optimization

4. 3CE will review and approve Charging Schedule and Optimization Plans before being finalized.

Task 4 Deliverables
 A minimum of eight (8) Member Agency fleet electrification packages for fleets with up to 400 assets, contingent upon Member Agency participation, which each include the following elements1:
a. Report summarizing baseline data collection, fleet composition or asset lists, etc. b. Spreadsheet-based model with vehicle replacement plan scenarios, including:
i. Total cost of ownership analysis
ii. Replacement timeline
iii. Identified vehicles as replacement options
c. Spreadsheet-based model with charging needs assessment, including number and types of charging stations required for an all-electric fleet d. Memo summarizing project charging infrastructure plan for one (1) project site, including project overview, number of charging stations to be installed, determination of electrical capacity of the site to support recommended charging infrastructure, and futureproofing elements to be included
e. Basis of Design and Schematic Design construction documents for one (1) project site per fleet

1 Unless determined by 3CE that not all components are necessary for a specific project with a public fleet. For example, a public fleet that already has conducted a vehicle replacement plan, but requires the other project components specified in this contract.
4/5/2023 17 Contract Number: ______________
f. Memo summarizing relevant funding program opportunities and “to do” list of information needed to apply for relevant funding programs and important dates and deadlines
g. Charging optimization memo that includes charging cost scenarios for managed and unmanaged charging
4/5/2023 18 Contract Number: ______________
Exhibit B: Payment Terms
In consideration of the services provided by Contractor described in Exhibit A and subject to the terms of the Agreement, 3CE shall pay Contractor an amount not to exceed $450,000.00. Without impacting the total not to exceed amount, task budgets may be reallocated between tasks without a contract amendment upon written approval by 3CE. Contractor will invoice 3CE in accordance with Section 6 – Payment Conditions based on the following fee schedule and terms:

Time and Materials. Work performed on Tasks 1 – 3 of Exhibit A: Scope of Services shall be invoiced monthly, on a time and materials basis as shown in Table B1.

Table B1 Estimated
Hours Cost Estimated Hours Cost
Task 1
Administrative Tasks
FY 2022 - 2023 FY 2023 - 2024

1.1 Kickoff Meeting 24 $5,000

1.2 Monthly Progress Report and Call 32 $9,000 64 $18,000

1.3 FY 22-23 Report 48 $12,000

1.4 Final Report 80 $20,000
TASK 1 TOTAL 104 $26,000 125 $38,000
Task 2
Program Launch
FY 2022 - 2023 FY 2023 - 2024

2.1 Implementation Guide, Internal Program Workflow, Process Flow for Member Agencies 80 $20,000

2.2 Intake Application, Data Collection and Participant On-boarding Tool 96 $22,000
TASK 2 TOTAL 176 $42,000
Task 3
Program Outreach Events
FY 2022 - 2023 FY 2023 - 2024

3.1 Outreach Event 1 48 $12,000

3.2 Outreach Event 2 48 $12,000
TASK 3 TOTAL 48 $12,000 48 $12,000
Task 4
Technical Assistance
FY 2022 - 2023 FY 2023 - 2024
# of
Engagements
Maximum
Cost
# of
Engagements
Maximum
Cost

4.1 Fleet Replacement Plan 3 $36,000 5 $60,000

4.2 Charging Infrastructure Plan 3 $84,000 5 $140,000
TASK 4 TOTAL $320,000
TOTAL PROGRAM BUDGET FY 2022 - 2023 FY 2023 - 2024
Per Fiscal Year $200,000 $250,000
TOTAL PROGRAM BUDGET ALL YEARS $450,000
4/5/2023 19 Contract Number: ______________
Rates for key staff are in the table below. Rates shall remain in effect for the term of this Agreement.

Adjustments to staff rates shall require 1) written notice of the change at least 30 days prior to the date the change is to become effective and 2) prior written approval by 3CE.

Position Principal Director Senior Engineer Engineer
Analyst or
Project Manager
Hourly Rate $325 $225 $225 $185 $185
Progress Payments. Tasks 4 of Exhibit A: Scope of Services shall be billed based on the percentage of completion and corresponding percentage of the fee for each task deliverable as shown below in Table B2, the Technical Assistance Fee Schedule. In accordance with Section 6 of this Agreement, invoices may be submitted once each month as the work satisfactorily progresses, as detailed in monthly progress reports, and after acceptance by 3CE staff. The progress estimates shall be based upon materials development and/or labor expended to complete a deliverable.

Table B2
Task 4: Technical Assistance Fee Schedule per Engagement Max Cost per
Engagement
Target % of Total Budget

4.1 Fleet Replacement Plan $12,000
Task Total $12,000 30%

4.2 Charging Infrastructure Plan

4.2.1 Charging Needs Assessment $10,000

4.2.2 Charging Infrastructure Site Designs $12,000

4.2.3 Charging Schedule & Optimization
Plan
$6,000
Task Total $28,000 70%
Max Technical Assistance per Engagement $40,000 100%
4/5/2023 20 Contract Number: ______________
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

5. Disclosure to third parties for Secondary Purposes (see below)

DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).

Covered Information -- any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.

Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:

1. Provide or bill for electrical power or gas,

2. Provide for system, grid, or operational needs,

3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or
4/5/2023 21 Contract Number: ______________

4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.

Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.

Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.

Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.

2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.

4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE immediately.

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.

3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.

Review and Training

1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or sub consultants.

2. Any proposed changes to these Procedures shall be provided in writing to 3CE.

FY 22 – 23 Member Agency
Plan Your Fleet Program
Operations Board Meeting

4.12.2023
Recommendation
a) Authorize CEO to Execute an Agreement with Optony,
Inc. to provide technical assistance services to support 3CE Member Agency fleet electrification efforts in an
amount not to exceed $450,000 and a term ending
September 30, 2024.

Program Design Context
• Emissions from transportation are the largest source
of greenhouse gas emissions
• 50% of State and local government fleet vehicle
purchases must be zero emission by 2024;
• 100% of purchases must be zero emission by 2027
• Lack of staff capacity, electrification planning, and project expertise is a barrier to fleet electrification Scope of Services
Full Suite of Technical Assistance
Services:
• Fleet vehicle replacement and
procurement planning
• Charging infrastructure project
planning, design, and engineering
• Charging schedule and optimization
planning
• Funding packages: outlining available
rebates, grants, and financing
Q &
A

Staff Report Item 2.3
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Delegate Authority to the CEO to Participate in Pacific Gas & Electric’s and Southern California Edison’s Spring 2023 PCIA Market Offer for Long-Term Renewable Energy Credit Products; and to Execute Agreements for up to the Awarded Volumes in Amounts Not-to-Exceed a total of $177,000,0000 with Terms of at Least 10 Years DATE: 4/12/2023
RECOMMENDATION:

This recommends the Operations Board delegate authority to the to participate in Pacific Gas & Electric and Southern California Edison’s (“PG&E” an “SCE” respectively or “IOUs” jointly) Spring 2023 PCIA Market Offer for Long-Term Renewable Energy Credit Products (the “Solicitation”) and to execute agreements for up to the awarded volume in amounts not-to-exceed a total of $177,000,0000 with terms of at least 10 years.

This delegation is necessary because PG&E and SCE require auction participants represent that they can execute accepted portions of any awarded volumes without delay. The requested authority will only be exercised where, in the CEO’s determination, an awarded volume is necessary to meet 3CE procurement objectives and compliance obligations. Executed volumes will be reported back to the Operations Board at its earliest scheduled meeting.

BACKGROUND:

In September 2020, Central Coast Community Energy established its goal of having 100% of its retail load served by clean and renewable energy by 2030, fifteen years ahead of California’s SB 100 mandate.

California’s Renewable Portfolio Standard (“RPS”) also mandates a certain percent of energy be met via eligible renewables and that starting in 2021 at least 65 percent of the RPS be met through contracts of at least ten years in length, called long-term Renewable Energy Credits (“RECs”).

To meet its 100% Clean and Renewable goal by 2030, 3CE is aggressively pursuing new incremental generation projects, resulting in 15 long-term Power Purchase Agreements for RPS eligible resources, including nine new-build solar photovoltaic with lithium-ion storage. 3CE’s latest RFP was issued in January 2023 and staff is currently evaluating proposals.

Through a series of rulemaking proceedings, the California Public Utilities Commission (the “Commission”) had considered adjustments and alternatives to the Power Charge Indifference Adjustment (“PCIA”). D.21-05- 030 was issued on May 24, 2021, as part of Phase 2 of the PCIA proceeding and addresses portfolio optimization activities associated with RPS resources subject to PCIA cost recovery. A Voluntary Allocation and Market Offer (“VAMO”) mechanism was adopted. The Voluntary Allocation (VA) process authorized the IOUs to allocate a “slice” of an IOU’s PCIA-eligible RPS portfolio to eligible load serving entities (“LSEs”) in proportion to the LSE’s vintaged, forecasted annual load priced at a variable annual benchmark. The second phase of the process is the Market Offer. Under this process the IOUs are authorized to offer the remaining portion of their renewable portfolio not allocated during the Voluntary Allocation to market participants at a fixed price. Under VAMO, LSEs have the option to contract for a long-term allocation, short-term allocation, bid to procure a short- term or long-term portion of the PCIA portfolio, or decline all or a portion of their allocation.

DISCUSSION/ANALYSIS:

On March 7, 2023, the IOUs each issued a Long-Term Market Offer for PCIA-eligible RPS energy. These Solicitations allow load serving entities (LSEs) to offer to purchase the unallocated portion of each IOUs PCIA renewable energy portfolio. The projects being sold off by the IOUs have contract end dates out through 2043. If awarded, and if 3CE accepts the award, 3CE is required to enter a contract with a term equal to the IOUs contract end dates out through 2043, or up to a 20-year term.

The REC products offered through the IOUs’ Solicitations are critical to 3CE’s strategy for compliance with its SB 350 obligation, which requires 40% of 3CE’s retail load be met with RPS eligible resources over the next compliance period of 2021 through 2024 (“Compliance Period Four”). PPA project delays caused by supply chain constraints and inflationary pressures are impacting 3CE’s compliance strategy which relied on aggressively pursuing new incremental RPS projects. Current project delays may result in 3CE being as much as 22% short of its RPS requirements instead of the planned 31% long in Compliance Period 4. Penalties for Compliance Period 4 deficiencies are significant at $50/MWh. The IOUs Spring 2023 PCIA Long-Term Market Offer provides 3CE an opportunity to pick up additional RECs to avoid penalties while hedging against further project delays and reducing the PCIA obligation of its customers.

In February 2023, 3CE issued our own request for offers for 2023 and 2034 RECs and received zero bids, likely a reflection of the increased demand for RECs caused by industry-wide project delays. The IOUs’ Solicitation may represent the only commercially viable opportunity to secure RECs for the current compliance period as the IOUs each control a significant portion of RPS eligible RECs in the market. 3CE submitted bids in the IOUs’ Solicitations on April 11, 2023, following support received from the Risk Management Committee on March 27, 2023, to seek this requested Delegation of Authority to the CEO from the Operations Board. IOU determinations regarded awarded volumes are expected in late May 2023.

Any awards will assist with 3CE meeting its RPS compliance obligations in the short and long term.

Given the number of delays to our projects due to supply chain disruptions caused by the COVID19 global pandemic and the interconnection backlog, 3CE has a large need for these RECs, especially in the near term.

FISCAL IMPACT:

If 3CE receives awards from PG&E and SCE for all the submitted offers and the CEO exercises the delegation of authority granted herein, the fiscal impact will not exceed $177,000,000 over the term required by the IOUs, expected to be a minimum of ten years and up to 20 years.

CONCLUSION:

The Operations Board’s approval for the CEO to participate and transact on the IOUs’ Spring 2023 PCIA Market Offer for Long-Term Renewable Energy Credit Products provides an opportunity to avoid potential penalties in Compliance Period 4, while hedging against further PPA project delays, and optimizing the IOUs’ PCIA portfolio for customers’ benefit.

ATTACHMENT(S):

1. IOU RFP Presentation

ITEM 2.3
Delegate Authority to the CEO to Participate in Pacific Gas & Electric’s and Southern California Edison’s Spring 2023 PCIA Market Offer for Long-Term Renewable Energy Credit Products; and to Execute Agreements for up to the Awarded Volumes in Amounts Not-to-Exceed a total of $177,000,0000 with Terms of at Least 10 Years
PPA Delays and RPS Compliance
• PPA project delays caused by supply chain constraints and interconnection backlogs are impacting 3CE’s compliance strategy which relied on aggressively pursuing new incremental RPS projects. • Current project delays may result in 3CE being short of its LT RPS requirements, instead of exceeding it, in Compliance Period 4 (CP4).
• There is a $50/MWh penalty for any shortfalls.
• 3CE’s participation in the IOUs PCIA Market Offer for LT RPS can mitigate the shortfalls created by the delayed PPAs and hedge against further delays.

As a Percentage of Retails Sales 2021-2024
(Compliance Period
4)
State Mandated RPS Compliance Obligation
(Averaged over 4-year period)
40%
% of State Mandated RPS required to be from Long Term(LT) Contracts of 10 years or more 65% LT RPS Compliance Obligation (Row 1*Row2) 26%
3CE’s Anticipated LT RPS Position
(if all PPAs could have met their original expected online dates) 34%
3CE’s Current LT RPS Position
(based on current expected delays of PPAs)
20%
3CE RPS Strategy
• 100% Clean and Renewable by 2030 Goal exceeds statutory RPS requirements.
• Replacement RECs associated with delayed 3CE Projects impacting CP4 are negotiated with PPA counterparties.
• CP4 compliance is impacting market, making RECs scarce and driving prices toward penalty.
• 3CE ran solicitations to buy RECs in Q1 2023 and received no responses. • 3CE will continue exploring all available market options, including this IOU Market Offer option.

PG&E and SCE 2023 PCIA RPS Market
Offer
• Market
Benchmarks
• Voluntary
Prepayment
• Portfolio
Optimization
Phase 2
PCIA
Proceedings
• Voluntary
Allocation
• Market Offer
VAMO
• 10 to 20 Year
Terms
• Require
Execution
Authorization
• Awards Late
May
• NOT a must
take
IOU MO
Process
3CE Market Offer Participation Strategy
• Existing Delegation of Authority Limits:
• CEO – Single Transactions of $65M with 36 Month Terms (48 Month Maturity) • RMC – Single Transactions of $110M with 60 Month Terms (72 Months Maturity) • Operations Board – all other transactions exceeding these values. • March 27, 2023 ERM Committee supported seeking delegation for CEO to participate in and transact on appropriate awards from IOU Market Offers • April 11, 2023 3CE Submitted Bids for PCC1 RECs in IOU process • 3CE will evaluate awards and transact on only those awards that meet 3CE’s compliance needs.
• Report back to the Operations Board regarding volumes and NTE transacted.

RECOMMENDATION
• Delegate Authority to 3CE’s Chief Executive Officer (CEO) to participate in Pacific Gas and Electric’s (PG&E) and Southern California Edison’s (SCE) Spring 2023 PCIA RPS Market Offer for Long-Term Renewable Energy Credit Products and execute necessary agreements, if awarded, with PG&E and/or SCE.
• The CEO will only exercise the delegated authority should he deem it necessary to meet 3CE procurement objectives and compliance obligations, in an amount not to exceed $177,000,000, or about $8,500,000 per year over the 20- year term and will report back to the Board in a timely fashion.