Agenda packet — Central Coast Community Energy (3CE) Operations Board, August 14, 2024 (part 1 of 3)

Operations Board of Directors
August 14, 2024
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, Fifth Floor Redwood Room
Santa Cruz, CA 95060
City of Paso Robles
City Hall
1000 Spring Street, Second Floor
Paso Robles, CA 93446
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, Fourth Floor
Santa Barbara, CA 93101
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
https://us02web.zoom.us/j/83507087702
Or join by phone:
+1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 835 0708 7702 when prompted. Please note there is no Participant Code, you will press # again after the recording prompts you.

You will be placed in the meeting as an attendee. To make a public comment:
 If joined by computer, please press the button to raise your hand  If joined by phone, please push *9 on your keypad
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/ DISCLOSURE OF CAMPAIGN CONTRIBUTIONS: Pursuant to Government Code section 84308, members of the Board are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the Board member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the decision on the agenda item since January 1, 2023.

Members of the Board who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a Board member during the proceeding or for 12 months after a final decision is rendered in that proceeding, are required to disclose that fact for the official record of the subject proceeding. Disclosures must include the amount of the campaign contribution and identify the recipient Board member and may be made either in writing to the Clerk of the Board prior to the subject hearing or by verbal disclosure at the time of the hearing.

Welcome & Roll Call
Pledge of Allegiance
Corrections or Additions
The Clerk will announce agenda corrections or proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Section 54954.2 of the California Government Code.

Public Comment on Items on the Consent Calendar and Items Not listed on the Agenda The public may address the Board on the Consent Calendar and any matter within the jurisdiction of the Board but not on the agenda.

CONSENT CALENDAR

1. Approve minutes from the May 8, 2024, meeting of the Operations Board of Directors

2. Approve minutes from the June 12, 2024, special meeting of the Operations Board

3. Receive update on FY 2023-24 Energy Programs

4. Receive Regulatory Update

5. Receive a financial report for the period October 1, 2023, through May 31, 2024

6. Approve and authorize the CEO to execute Amendment No. 4 to the Aiqueous, LLC Amended and Restated Standard Services Agreement to provide a customer relationship management platform to support Energy Programs, and to renew and extend the expiration date
for an additional seven (7) months, for a revised term of January 2, 2020 through April 29, 2025, and to increase the Agreement’s amount by an additional $80,570 for a total not-to-exceed amount of $775,805

7. Approve and authorize the CEO to execute Amendment No. 4 to the Cohen Ventures, Inc., DBA Energy Solutions Standard Services Agreement to extend the term for an additional six (6) months, for a revised term of March 11, 2022 through January 31, 2025,
to administer equity rates for the Electrify Your Home program, and to increase the Agreement’s amount by an additional $565,000 for a total not-to-exceed amount of $3,825,000. Approve and authorize the CEO to execute up to two (2) amendments to revise standard terms, with no change to the total contract amount, subject to approval by the General Counsel.

8. Approve and authorize the CEO to execute Amendment No. 3 to the Frontier Energy Inc. Standard Services Agreement to support 3CE Energy Programs, extend the expiration date for an additional twelve (12) months for a revised term of
May 11, 2022, through September 30, 2026, and to increase the Agreement by an additional $251,896 for a total not to exceed amount of $641,274

9. Approve a Real Property Lease Agreement template, containing standard risk and indemnification terms, for the provision of leasing office space to tenants of 3CE properties. Authorize updates and modifications to the template subject to General Counsel
approval

REGULAR AGENDA

10. CEO Report
a. Staffing Update
b. Power Charge Indifference Adjustment

11. Authorize CEO to execute CPUC approved Bioenergy Market Adjusting Tariff (BioMAT) Program, Pro-Forma Agreements, and eligible Power Purchase Agreements (PPAs) with terms of 10 to 20 years and associated forms

12. Recommend that the Policy Board consider and adopt the Ad Hoc Committee’s recommendations regarding improvements to governance related matters, including board composition, engagement, and communication Board member comments and reports
Adjournment
Operations Board of Directors
May 8, 2024
10:30am
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 Paso Robles
City Hall
1000 Spring Street,
Second floor
Paso Robles, CA
93446
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, Suite 108
Santa Barbara, CA 93101

MINUTES
The meeting was called to order at 10:30 AM with 15 members attending in 5 locations and a quorum established.

Directors Present:
3CE Headquarters: De La Rosa, Espinosa, Hunter, Morgansen, Pia, Reynolds County of Santa Cruz: Huffaker, Palacios, Chair Goldstein City of San Luis Obispo: Campbell, Downing, Hill
City of Santa Maria: Posada, Wolfe
County of Santa Barbara: Vice Chair Miyasato
Directors Absent: Guertin, Lewis, Ramirez, Reynolds

CONSENT CALENDAR
MOTION: Moved by Director Vice Chair Miyasato, seconded by Director Wolfe to approve the Consent Calendar.

ACTION: The Motion Carried with a roll call vote: 15/0/4 AYES: Campbell, De La Rosa, Downing, Espinosa, Hill, Huffaker, Hunter, Morgansen, Palacios, Pia, Posada, Reynolds, Wolfe, Vice Chair Miyasato, Chair Goldstein NOES: None
ABSENT: Guertin, Lewis, Mendez, Ramirez
The Chair opened the public comment period for the consent calendar and items not listed on the agenda.

No public comments received.

The Chair closed public comment period.

1. Approved Minutes from the April 10, 2024 meeting of the Operations Board of Directors

2. FY 2023-24 Energy Programs Update

3. Regulatory Update

4. Financial report for the period of October 1, 2023, through March 31, 2024

5. Approved Second Restated Legal Services Agreement with Meyers Nave, P.C., for specialized legal services, retroactive to October 1, 2023 and continuing through the end of the engagement and adding $900,000 for a revised total not-to-exceed amount of $1,109,748.00
The Chair opened public comment period.

No public comments received.

The Chair closed public comment period.

REGULAR AGENDA

6. Community Advisory Council
The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

7. CEO Report
a. Staffing Update
b. 2024 Request for Offers for Clean Energy and Storage c. 3CE Owned and Operated EV Charging
d. CalCCA Conference highlights affordability issues and emerging technology e. Enrollment of Atascadero and the County of San Luis Obispo The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

8. Supports 3CE's proposed behind-the-meter residential battery rebate program and recommending Policy Board's support
The Chair opened the public comment period.

The following individual(s) addressed the Board.
 Seth Capron
The Chair closed public comment period.

MOTION: Moved by Director Hunter, seconded by Director Pia to approve with the direction to staff to implement a prioritization plan and return in six months to present an evaluation to the Board.

ACTION: The Motion Carried with a roll call vote: 15/0/4 AYES: Campbell, De La Rosa, Downing, Espinosa, Hill, Huffaker, Hunter, Morgansen, Palacios, Pia, Posada, Ramirez,
NOES: None
ABSENT: Guertin, Lewis, Mendez, Ramirez

9. Approved amendment No. 1 to the Standard Services Agreement with Optony, Inc. to add three (3) additional years for a term ending September 30, 2027 and $2,052,675.00 for a total not-to-exceed amount of $2,502,675.00 to expand Member Agency fleet electrification services
The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

MOTION: Moved by Vice Chair Miyasato, seconded by Director Huffaker to approve ACTION: The Motion Carried with a roll call vote: 14/0/5 AYES: Campbell, Downing, Espinosa, Hill, Huffaker, Hunter, Morgansen, Palacios, Pia, Posada, Reynolds, Wolfe, Vice Chair Miyasato, Chair Goldstein
NOES: None
ABSENT: De La Rosa (left at 11:20am), Guertin, Lewis, Mendez, Ramirez

10. Approved an agreement with Sacramento Municipal Utility District (SMUD) in an amount not to exceed $916,041.00 with an initial delivery term of three (3) years; and (2) execute an agreement with Salesforce in an amount not-to-exceed $183,192.45 with an initial delivery term of three (3) years; and (4) and authorize the CEO to execute both agreements The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

MOTION: Moved by Director Palacios, seconded by Director Hunter to approve ACTION: The Motion Carried with a roll call vote: 14/0/5 AYES: Campbell, Downing, Espinosa, Hill, Huffaker, Hunter, Morgansen, Palacios, Pia, Posada, Reynolds, Wolfe, Vice Chair Miyasato, Chair Goldstein
NOES: None
ABSENT: De La Rosa, Guertin, Lewis, Mendez, Ramirez

11. Report on the efforts for Setting Rates Beginning Fiscal Year 2024-25 The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

12. FY 2023-24 Mid-Year Budget Forecast
The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required
Board member reports and comments
Adjourned at 11:52 A.M.

Operations Board of Directors
Special Meeting
June 12, 2024
3:30PM
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 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, Suite 108
Santa Barbara, CA 93101

MINUTES
The meeting was called to order at 3:30PM with 10 members attending in 5 locations and a quorum established.

Directors Present:
3CE Headquarters: Guertin, Mendez (arrived at 3:45PM), Morgansen County of Santa Cruz: Huffaker, Palacios, Vides, Chair Goldstein City of San Luis Obispo: Hill
City of Santa Maria: Posada, Wolfe
County of Santa Barbara: Vice Chair Miyasato
Directors Absent: Campbell, De La Rosa, Downing, Espinosa, Hunter, Lewis, Ramirez, Reynolds

CLOSED SESSION

2. Closed Session under Government Code 54950 relating to the following item Conference with Legal Counsel Re Potential Litigation - Significant Exposure to Litigation & Initiation Litigation – Government Code Section 54956.9(d)(2)&(4) Angiola East LLC, parent company SB Energy.

The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

Recessed into closed session at 3:41PM
Reconvened at 4:06PM

REGULAR AGENDA

1. Authorized the CEO to execute an amended and restated Power Purchase Agreement with Angiola East LLC, in a form substantially similar to the attached, and any necessary ancillary documents for a total not to exceed amount of $59,000,000
MOTION: Moved by Director Mendez, seconded by Huffaker to approve ACTION: The Motion Carried with a roll call vote: 12/0/7 AYES: Guertin, Hill, Huffaker, Mendez, Morgansen, Palacios, Posada, Vides, Wolfe, Vice Chair Miyasato, Chair Goldstein
NOES: None
ABSENT: Campbell, De La Rosa, Downing, Espinosa, Hunter, Lewis, Ramirez, Reynolds Adjourned at 4:13PM
Staff Report Item 3
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs SUBJECT: Receive Update on FY 2023-24 Energy Programs
DATE: August 14, 2024
RECOMMENDATION:

This memorandum provides an update for the Operations Board on FY 2023-24 Energy Programs.

BACKGROUND:
3CE’s Energy Programs have been administered since 2019 to incentivize customers to engage in electrification initiatives and reduce greenhouse gas emissions. The Energy Programs portfolio has undergone several iterations to improve community-wide accessibility and equity in priority communities. Currently, 3CE offers 11 programs and concierge services to support residential and commercial electrification efforts in the transportation, building, and agricultural sectors. 3CE also offers programs exclusively for Member Agencies which include Plan Your Fleet, Electrify Your Fleet, and Reach Codes.

DISCUSSION/ANALYSIS:

As part of 3CE’s commitment to customers, 3CE staff continually evaluate the Energy Programs’ portfolio’s performance by tracking several key indicators. Attached to this report are detailed status updates on 3CE’s Community Energy Programs (Attachment 1) and Member Agency Energy Programs (Attachment 2). These status updates share a variety of program performance metrics including equipment incentivized, housing units electrified, dollars spent, and performance on equity (e.g., dollars going towards income qualified residents).

Below are several highlights of the Energy Programs status updates for FY 2023-24:
 The Residential Battery Rebate Program was launched on July 16, 2024. The program has an annual budget of $2M for 400 participants. If fully subscribed, this new energy storage could potentially result in load shifting of approximately 2.6 MW.  Given the success of the Plan Your Fleet (PYF) Member Agency program, evidenced by its full subscription of FY 2023-24 funds, the program has been expanded to provide additional fleet electrification services. With the new scope and budget, PYF has increased its enrollment in FY 2023-24 from five to nine participating Member Agencies.  Eligibility for the Agricultural Electrification Program was expanded to allow 3CE customers up to two rebates per fiscal year. 3CE expects increased electrification in the agricultural community because of this additional support.
 The E-Bus Program was expanded to allow rebates for up to five e-Buses. The first E-Bus can be funded up to 50%, not to exceed $200,000. The second through fifth E-Buses can be funded up to $50,000 each. Cumulatively, an organization can receive funding for up to five E-Buses for a total of $400,000 per fiscal year. The increased rebate allowance is better aligned with fleet purchases by educational facilities, agriculture transport agencies, and public and transit authorities in 3CE territory.

FISCAL IMPACT:

There is no fiscal impact associated with this report and update.

CONCLUSION:
3CE’s Energy Programs support local economies by providing the community with funding and services to accelerate regional electrification. Enhanced incentives for underserved community members reduce GHG emissions throughout the 3CE service area.

ATTACHMENT(S):

1. Update on 3CE Community Energy Programs

2. Update on 3CE Member Agency Services
FY 2023-24 3CE Member Agency Programs
This report supports the Energy Programs Staff Report for August 2024 and provides an update on FY 2023-24 Member Agency program implementation activities.

Reach Code Program
3CE’s Reach Code program for Member Agencies provides no-cost technical assistance to help local cities and counties adopt and implement reach codes, including stakeholder outreach support. Services include 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 reach codes. In FY 2023-24, 3CE budgeted $100,000 for the Reach Code program.

Since launching the Reach Code program on October 1, 2023, 3CE has engaged four Member Agencies:

Member Agency Reach Code Type
City of San Luis Obispo New Construction (complete) and Existing Buildings (underway) City of Santa Cruz Existing Buildings (complete)
City of Goleta Electric Vehicle Charging Infrastructure (underway) County of Monterey Electric Vehicle Charging Infrastructure (underway) Electrify Your Fleet Program
3CE’s Electrify Your Fleet (EYF) program incentivizes Member Agencies to purchase or lease electric fleet vehicles. Applications will be accepted until program funds are fully reserved or spent. A 3CE Member Agency applicant is eligible to reserve or be awarded up to $150,000 in EYF incentives in the program year. In FY 2023-24, 3CE budgeted $2.1 million for EYF.

Since launching the program on October 1, 2023, 3CE has incentivized 23 Battery Electric Vehicles totaling $428,000.

Member Agency Equipment Type Quantity Total Incentive
CITY OF SAN LUIS OBISPO Battery Electric Vehicle (BEV) 2 $10,000.00 CITY OF SANTA MARIA Battery Electric Vehicle (BEV) 12 $114,000.00 COUNTY OF SANTA CRUZ Battery Electric Vehicle (BEV) 6 $42,000.00 CITY OF CAPITOLA Battery Electric Vehicle (BEV) 1 $250,000.00 CITY OF CARMEL-BY-THE-SEA Battery Electric Vehicle (BEV) 2 $12,000.00
Total 23 $428,000.00
Charge Your Fleet Program
3CE’s Charge Your Fleet (CYF) program provides rebates for the purchase and installation of Level 2 or Level 3 (DC Fast Chargers) EV chargers. Member Agencies are eligible for up to $150,000 in CYF each year. 3CE’s 2023-24 CYF budget totals $1.2 million.

Since the launching of the program on October 1, 3CE has incentivized 24 EV chargers totaling $208,698.

Member Agency Equipment Type Quantity Total Incentive
CITY OF CARPINTERIA Level 2 10 $48,698.25
CITY OF SANTA CRUZ Level 2 4 $20,000.00
CITY OF SANTA MARIA Level 2 8 $40,000.00
CITY OF WATSONVILLE Level 3 2 $100,000.00
Total 24 $208,698.25
Plan Your Fleet Program
3CE’s Plan Your Fleet (PYF) program provides no-cost planning, design, and engineering consulting to Member Agencies to accelerate fleet electrification and EV charging infrastructure development across the Central Coast. 3CE’s FY 203-24 budget for PYF is $486,375.

This fiscal year to date, nine jurisdictions are participating in the program to receive fleet replacement plans, charging infrastructure designs, or both. Jurisdictions include:
 City of Carpinteria
 City of Greenfield,
 County of Monterey
 City of Monterey,
 County of Santa Barbara
 City of Marina,
 City of Santa Maria,
 City of Watsonville
 City of Carmel.

To best support 3CE’s Member Agency transportation electrification expansion plans, the Operations Board approved and authorized the CEO to execute an amended agreement with the Plan Your Fleet provider, Optony, Inc. on May 8th, 2024. This agreement serves to provide Member Agency fleet electrification services for a total not-to-exceed amount of $2,502,675 and a term ending on September 30, 2027, with the FY 2023-24 not-to-exceed budget augmented to $486,375. As a result of the Plan Your Fleet expansion, participation has increased from five to nine Member Agencies so far this FY and is expected to increase to 10 Member Agencies by the end of FY 2023-24.

Member Agency Building and Transportation Electrification Working Groups 3CE is facilitating working groups made up of Member Agency staff focused on building and transportation electrification to promote existing programs and identify needs, barriers, and scalable solutions for regional electrification. The next working group event is planned for November 2024.

FY 2023-24 3CE Community Energy Programs
This report supports the Energy Programs Staff Report for August 2024 and provides an update on participation in Central Coast Community Energy’s (3CE’s) Community Energy Programs for the fiscal year to date.

Electrify Your Ride Program
3CE’s Electrify Your Ride (EYR) program incentivizes residential and commercial electrification through rebates for the purchase or lease of an electric vehicle (EV), for purchase of EV Chargers, and for electrical upgrades necessary to install chargers. In 2024, the program was expanded to also include rebates for Direct-Current Fast Chargers (DCFC). In addition, EYR provides technical assistance for EV infrastructure buildout at publicly accessible commercial sites and at multifamily residential properties.

The FY 2023-24 budget for EYR totals $4 million.

Incentives are available on a first come, first served basis until funding is fully awarded. To promote greater adoption of transportation electrification in disadvantaged and low-income communities, higher incentive amounts are available for income-qualified customers and multifamily-unit buildings.

In FY 2023-24, 3CE has approved 1,613 applications and has distributed over $2.5 million in incentives to date. The following figures summarize program performance based on applications received in FY 2023- 24:

Figure 1 (above): Electrify Your Ride funds distributed by County in FY 2023-24.

Figure 2 (above): Electrify Your Ride Program Funds distributed by measure type in FY 2023-24.

Figure 3 (above): Breakdown of funds distributed to income-qualified applicants.

Tier 1 = 201 - 400% FPL; Tier 2 = <200% FPL; N/A = Non-Income Qualified applicants Electric Bus Program
3CE’s Electric Bus program provides public schools/school districts, farmworker transit organizations, and public transit agencies enrolled in 3CE service the opportunity to receive funding for the purchase of an all-electric bus. In FY 2023-24, the budget for the Electric Bus program is $2 million.

Applications are accepted until funds are fully distributed. Applicants are encouraged to apply for rebates following the purchase and delivery of an electric bus. Notices of Qualification (NOQ) may be requested to provide applicants with assurances of their eligibility status. Program recipients may elect for funds to be distributed directly from 3CE to the bus manufacturer upon receipt of the final invoice.

Applicants are encouraged to stack/leverage other incentive funds and no matching fund restrictions apply.

On July 12th, 2024, 3CE staff expanded the Electric Bus program funding guidelines to allow applicants purchasing more than one electric bus to receive a rebate of $50,000.00 USD per bus purchased in addition to the base rebate of 50% of the project cost, up to $200,000.00 USD. With this change, the maximum rebate for a fleet electrification project is $400,000.00 USD applied toward the purchase of five (5) all-electric buses. All incentives are distributed following equipment purchase and delivery, and restrictions regarding the number of fleet electrification efforts incentivized per fiscal year may apply.

To date, 3CE has received two applications for electric buses in Monterey County, including a rebate application from a local public transit agency. One electric bus rebate application each has also been received from within the counties of Santa Cruz, Santa Barbara, and San Luis Obispo. Payments for an electric school bus charger in Los Olivos and two electric bus rebates for Orcutt Union School District and the City of Santa Cruz have also been made, totaling $366,761.24 USD.

Electrify Your Home Program
The Electrify Your Home (EYH) program provides incentives to contractors enrolled in the TECH Clean California (TECH) program for installation of all-electric heat pump water heating and HVAC systems in existing single and multi-family buildings. EYH reduces purchase costs to 3CE customers, incentivizing making the switch to all-electric heat pump technology. The FY 2023-24 budget for EYH is $1.1 million.

Contractors enrolled in TECH are provided access to no-cost education and training on electrification design and specifications, heat pump installation, building science, and sales and marketing for electric heat pumps. There are currently seventy-five (75) licensed contractors enrolled in the TECH program that work in 3CE’s service area.

In FY 2023-24 the EYH program has completed one hundred twenty-eight (128) Heat Pump HVAC and fifty-four (54) Heat Pump Water Heater projects totaling $432,500 dollars in distributed incentives. This fiscal year, projects have been completed in Monterey, San Luis Obispo, Santa Barbara, and Santa Cruz Counties.

New Construction Electrification Program
The New Construction Electrification Program (NCEP) provides affordable and farmworker housing developers and homeowners building Accessory Dwelling Units (ADUs) with incentives to build all-electric housing. 3CE also offers incentives to people who lost their homes because of a declared natural disaster, such as the 2022-2023 winter storms, to rebuild all-electric homes. Beginning in January 2024, NCEP expanded to include market-rate single and multifamily housing. Also, this year, to streamline the application process, 3CE began encouraging eligible applicants to submit funding requests post-project completion.

Qualifying housing projects must be built to all-electric standards for all energy utility needs, including water heating, space heating, and cooking appliances. The FY 2023-24 budget for NCEP is $1.1 million.

In FY 2023-24, 3CE has distributed $571,500 to support the construction of two hundred twenty-eight (228) all-electric, affordable, multifamily housing units across Santa Cruz, San Luis Obispo, and Monterey counties. Additionally, 3CE has provided $264,750 for one hundred four (104) market-rate, all-electric projects including ADU, Fire Rebuild, and single-family homes. In FY 2023-24 to date, 3CE has distributed $836,250 through NCEP.

Agricultural Electrification Program
3CE’s Agricultural (Ag) Electrification program provides rebates to ag customers for replacing fossil fuel powered equipment with electric powered alternatives including farm tools, irrigation pumps, vehicles, and more. Enhanced incentives are available for small businesses and for businesses replacing equipment damaged or destroyed by a declared natural disaster. The program also provides technical assistance for EV infrastructure buildout at agricultural customer sites. The FY 2023-24 budget for Ag Electrification is $1.8 million.

Rebates for equipment with higher estimated GHG emissions avoidance and those benefiting small to medium sized agricultural businesses are supported with greater incentive levels. 3CE covers up to 50% of the cost for farm equipment, providing up to $15,000 USD for smaller “Tier 1” equipment and up to $75,000 USD for larger “Tier 2” equipment. Program funds are offered as a post-purchase rebate.

Since the start of the current fiscal year, 3CE has distributed incentives for sixteen (16) projects, totaling $384,437.74 USD. Completed projects by county are described in Table 1 below.

County Tier 1
Applications
Tier 2
Applications
Small business
designation %
TOTAL
Monterey County 3 4 57% 7
Santa Cruz County 4 1 60% 5
San Benito County 1 0 0% 1
SLO County 0 0 0% 0
Santa Barbara County 0 3 33% 3
Total: 8 8 30% 16
Table 1: Agricultural Electrification projects awarded in FY 2023-24.

Residential Battery Rebate Program
With support from the Community Advisory Council, the Operations Board, and the Policy Board of Directors, 3CE staff launched the Residential Battery Rebate program on July 16, 2024, to incentivize residential use of behind-the-meter battery storage systems. Rebates are provided for eligible purchase of batteries, qualifying installation hardware, and installation labor directly related to the battery system's installation. 3CE estimates the program will issue four hundred (400) rebates per fiscal year, which equates to approximately 2.6 megawatts (MW) of new energy storage, and an annual expenditure of $2M.

The program offers a $300 per kilowatt hour (kWh) base rebate for customers. A $500 per kilowatt hour (kWh) rebate is for Net Energy Metering (NEM) 1.0 and NEM 2.0 tariff customers who elect to transition to Net Billing Tariff (NBT) early. Additionally, the program offers a $500 per kilowatt hour (kWh) rebate for customers who are enrolled in the Medical Baseline program and are reliant on electricity to power medical devices. To promote adoption in disadvantaged and low-income communities, the program also offers a $500 per kilowatt hour (kWh) rebate for customers enrolled in the CARE, or FERA payment assistance programs.

Staff Report Item 4
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Kali Mitchell-Silbaugh, Policy Advisor
Jerri Strickland, Manager of Energy Policy
SUBJECT: Receive Regulatory Update
DATE: August 14, 2024
RECOMMENDATION:

This recommends the Operations Board receive the attached Regulatory Update.

DISCUSSION/ANALYSIS:

Please find attached 3CE’s Regulatory Update, providing the latest information on the following:
 Resource Adequacy (RA)
 Provider of Last Resort (POLR) and Emergency Transition Planning  Demand Flexibility
 Integrated Resource Planning (IRP)
 Bioenergy Market Adjustment Tariff (BioMAT)
 Renewables Portfolio Standard (RPS)
 Interconnections
 Diablo Canyon Power Plant Extension
 Load Management Standards (LMS) and Real-Time Pricing  Power Source Disclosure (PSD) and Power Content Label (PCL)  Energy Resources Recovery Account (ERRA) Compliance
 Energy Resources Recovery Account (ERRA) Forecast
 SCE General Rate Case
CONCLUSION:

This is an informational item only.

ATTACHMENT(S):

Regulatory Update
Regulatory Update
August 14, 2024
2 Table of Contents
REGULATORY UPDATE .........................................................................................................................................................3 Resource Adequacy (RA) –..............................................................................................................................................3 Provider of Last Resort (POLR) and Emergency Transition Planning – ......................................................4 Demand Flexibility –..........................................................................................................................................................4 Integrated Resource Planning (IRP) –........................................................................................................................5 Bioenergy Market Adjustment Tariff (BioMAT) –.................................................................................................6 Renewables Portfolio Standard (RPS) -.....................................................................................................................6 Interconnections –..............................................................................................................................................................7 Diablo Canyon Power Plant Extension – ...................................................................................................................7 Load Management Standards (LMS) and Real-Time Pricing –.........................................................................8 Power Source Disclosure (PSD) and Power Content Label (PCL) –..............................................................8 Energy Resources Recovery Account (ERRA) Compliance –............................................................................9 Energy Resources Recovery Account (ERRA) Forecast –................................................................................ 10 SCE General Rate Case –................................................................................................................................................ 10 3 REGULATORY UPDATE
Resource Adequacy (RA) – R.23-10-011
Issue
The Resource Adequacy (RA) program is the California Public Utilities Commission’s (CPUC) main grid reliability planning program. All load serving entities (LSEs) under the CPUC’s jurisdiction, including CCAs, must demonstrate purchase of a specified amount of eligible RA generation capacity each month and year to comply with RA program requirements. Increasing demand for and a decreasing supply of eligible RA capacity over the past five years have resulted in sharply increased prices and unprecedented difficulty procuring sufficient RA to achieve compliance. Over the past year the CPUC has also sought to tie RA compliance to other, unrelated functions such as CCA expansion into new communities.

Status
On June 6, 3CE staff submitted comments on the CPUC’s Proposed Decision (PD) to modify the RA program and implement the new slice-of-day (SOD) framework, which sets monthly procurement obligations based on the highest demand for every hour of the day. The PD maintained that SOD will be enforced for the 2025 RA compliance year despite ample party concerns around continued uncertainties with the program. 3CE’s comments argued that the PD erred in failing to address and adopt CalCCA’s proposal to allow LSEs to trade hourly load obligations to meet compliance requirements, stating that it is an essential function to support compliance, prevent costly procurement, and ensure successful implementation of SOD. On June 20, the CPUC issued a final Decision with revisions that acknowledge 3CE’s comments and state that it may consider hourly transactability in the future after SOD is implemented.

Phase 2 of the RA proceeding will consider modifications to the Central Procurement Entity (CPE) framework and the Planning Reserve Margin (PRM) requirements for 2026-2027. To inform party proposals, the CPUC issued a Report summarizing and evaluating CPE procurement results under the current framework. 3CE staff helped shape CalCCA’s proposal, submitted on June 14, that the CPUC adjust the timeline to provide LSEs with their CPE allocations at least one year prior to their year-ahead RA filings to improve procurement certainty.

Next Steps
The CPUC will hold workshops on July 25 and 26 to review party proposals and the results of its annual Loss of Load Expectation (LOLE) study, which assesses grid reliability and sets RA requirements for the coming year. 3CE staff will attend and continue advocating for RA program improvements including refinements to the CPE framework. A PD on Phase 2 is scheduled for November 2024. 4 Provider of Last Resort (POLR) and Emergency Transition Planning – R.21-03-011 Issue
The Provider of Last Resort (POLR) is the backstop entity that provides electric service to customers of a load serving entity if that LSE fails suddenly. This role has historically been held by the investor-owned utilities (IOUs, namely Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric), but this proceeding will establish a process to allow CCAs and other non-IOU LSEs to become POLR in their service areas. This proceeding is also considering rules designed to prevent LSE failures that have various implications for 3CE finances and operations. This includes changes to the fund CCAs must post as insurance called the Financial Security Requirement (FSR).

Status
Since the issuance of the CPUC’s April 18 Decision, 3CE staff has actively engaged with CalCCA to shape language around financial monitoring requirements and new CCA registration guidelines. 3CE has jointly submitted two Advice Letters with guidance on these topics via CalCCA to the CPUC. 3CE’s advocacy in this process has centered on ensuring that any new requirements retain flexibility within CCA contracts, preserve CCA autonomy, and align with existing regulations.

Next Steps
A schedule for the next phase of the proceeding, which will address the process for non-IOU entities to become a Designated POLR, has not yet been issued.

Demand Flexibility – R.22-07-005
Issue
Launched in 2022, this CPUC proceeding aims to enhance demand flexibility and grid reliability in California, mitigating costs from grid stress. 3CE participates to protect its ratemaking authority, track IOU rate changes, design potential new programs, solve data sharing issues affecting rate design, and prevent cost shifts among customers. Additionally, this proceeding considers the implementation of AB 205's mandate for an income-graduated fixed charge (IGFC). The goal of the IGFC is to lower energy costs for low-income residents through a fixed monthly charge. Although this charge affects only the delivery side and not 3CE's direct operations, 3CE staff monitor developments to gauge impacts on customer experience.

Income Graduated Fixed Charge Status
On May 15, the CPUC approved a Decision implementing an IGFC to be applied as part of the IOUs’ Transmission and Distribution fees on consumer bills, excluding any generation charges. Set to take effect in the third quarter of 2025 for SCE and the first quarter of 2026 for PG&E, the charge is structured across three tiers: approximately $6 monthly for California Alternate Rates for Energy (CARE) program participants, around $12 monthly for Family Electric Rate Assistance (FERA) program participants and low-income individuals in affordable housing, and $24.15 monthly for all other customers. The CPUC designed this approach pursuant to AB 205, aiming to ensure that lower-income customers who have average utility consumption will see a reduction in their bills, even without altering their energy use. The Decision adopted a recommendation put forth in CalCCA’s comments, developed with the support of 3CE staff, directing IOUs to provide CCAs with IGFC tier data to enable enhanced and consistent customer support.

Expanded Pilot Program Status
Earlier this year, the CPUC issued a Decision expanding the AgFit pilot to all CCA customers in PG&E’s service territory and extending the pilot to December 31, 2027. AgFit offers agricultural customers assistance with water pumping automation, time-varying rates that incentivize pumping during off-peak hours, and on-bill 5 savings. PG&E submitted its Implementation Advice Letter (AL) regarding expansion of the AgFit pilots, which aligns with the anticipated standards for joint marketing, education, and outreach (ME&O) efforts. After thorough review of PG&E’s AL, 3CE submitted its own AL on May 3 stating its intent to begin outreach to enroll customers in the PG&E Ag Pilot beginning on June 1, 2024. In response to pilot implementation proposals, the CPUC requested party input on how frequently the IOUs should be able to modify time-varying rates. 3CE helped CalCCA develop comments advocating for transparent processes for updating IOU time-varying rates to ensure adequate stakeholder input and review.

Next Steps
Since filing its AgFit implementation AL, PG&E has requested and received approval to delay pilot enrollment to November 1, 2024, but will continue ongoing recruitment and ME&O efforts leading up to enrollment. Upon Commission approval of 3CE’s AL, 3CE staff will commence its own customer outreach in coordination with PG&E and will enroll customers in the Pilot as soon as possible. Staff will also continue to track IOU implementation and ME&O related to the IGFC. Track B of the proceeding will focus on expediting the adoption of demand flexibility rates and supporting the implementation of the California Energy Commission’s Load Management Standards (LMS), with a Proposed Decision anticipated for Q3 or Q4 of 2024.

Integrated Resource Planning (IRP) – R.20-05-003
Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program. LSEs must submit IRPs every two years demonstrating that planned future procurement will produce GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector-wide GHG targets and maintains grid reliability. LSEs submitted their most recent IRPs in November 2022, and previous IRP cycles have produced the three procurement mandates that apply to 3CE and other LSEs. On April 18, the CPUC issued an Amended Scoping Memo setting additional issues for the IRP proceeding, including implementation of AB 1373 which enables the CPUC to request centralized procurement by the Department of Water Resources (DWR) for certain long-lead time (LLT) resources, as well as development of a long term procurement framework entitled the Reliable and Clean Power Procurement Program (RCPPP) to replace the CPUC’s current ad hoc mandate structure.

Status
On April 26, the CPUC issued a Ruling seeking party comments on its approach to implementing AB 1373, stating its intent to determine the need for DWR centralized procurement by September 1, 2024, and requesting feedback on timelines, contract structures, and cost and benefit allocation. The Ruling identifies four types of potential LLT resources for the CPE to procure, including off-shore wind (OSW), out-of-state wind (OOSW), long duration energy storage (LDES), and geothermal options. 3CE staff worked with CalCCA to submit opening and reply comments recommending that any centralized procurement order must focus on emerging technologies, prioritize affordability, and avoid competitive impacts to LSEs. CalCCA’s comments recommend the CPUC limit its consideration to OSW as it is the most compatible LLT resource under AB 1373 requirements.

Next Steps
Staff is awaiting the issuance of a PD on the CPUC’s approach to AB 1373 implementation and a proposal on the RCPPP design. Once available, staff will evaluate these proposals to assess any impact to 3CE’s procurement processes and will remain actively engaged to advocate for improved coordination between the RA and IRP programs.
6 Bioenergy Market Adjustment Tariff (BioMAT) – R.22-10-010 Issue
BioMAT is a procurement program initiated in 2015 to encourage the development of small bioenergy projects in California. The program is unique in that it allows LSEs contracting with these projects to recover the costs from all California electricity users through the Public Purpose Programs (PPP) charge. In 2021, 3CE and other CCAs successfully lobbied legislators to reverse the exclusion of CCAs from BioMAT with the passage of AB 843.

AB 843 was the first time CCAs gained access to PPP funding, setting a valuable policy precedent. The CPUC opened a proceeding to implement AB 843 that concluded in December 2023 with a Decision setting the rules, processes, and implementation steps necessary for CCA participation in BioMAT.

Status
Pursuant to D.23-11-084, CalCCA submitted Tier 2 and Tier 3 Advice Letters (ALs) on behalf of CCAs interested in offering the program, including 3CE. On April 30, 2024, the Energy Division approved the CCAs’ Tier 2 ALs, which included pro-forma program documents and contracts with Accion, the CPUC-designated BioMAT program administrator and website developer. Following this approval, Accion completed the development of a web portal to enable CCA implementation of BioMAT. Most recently, the CPUC approved the CCA Tier 3 ALs.

These ALs are largely ministerial and indicate that because no CCA has executed a BioMAT contract yet, the CCAs currently have no cost forecast revenue requirements for 2024 and 2025.

Next Steps
Now that the Tier 2 and 3 ALs have been approved and the CCA web portal design is complete, CCAs are able to participate in the BioMAT program. 3CE staff have continued to evaluate the potential benefits of participation in the program, including its ability to support member agencies in meeting waste diversion requirements set by SB 1383. 3CE received unanimous support from its Executive Committee on June 26 and will seek approval from the Operations Board on program participation, pro-forma agreements, and delegation of authority to the CEO to approve eligible PPAs on August 14.

Renewables Portfolio Standard (RPS) - R.24-01-017
Issue
The CPUC’s Renewables Portfolio Standard (RPS) proceeding monitors compliance by retail sellers, including CCAs, within California’s RPS program which requires that 60% of all electricity retail sales be served by renewable resources by 2030 and at least 65% of the procurement a retail seller counts toward the RPS requirements be from long-term contracts. The CPUC initiated a new rulemaking to continue implementation of the RPS program, including reviewing procurement plans, providing tools for analysis and reporting, assessing compliance, and integrating new legislative mandates into the RPS program.

Status
3CE submitted comments with several other CCAs to request that the end date of the BioMAT program be included as a distinct and expedited issue in the rulemaking. The Scoping Ruling issued on May 9 declines this request in the near-term but states the CPUC may consider extending BioMAT in early 2025. Separately, staff is working with CalCCA to address delays in the receipt of Renewable Energy Credits (RECs) from the Western Renewable Energy Generation Information System (WREGIS) and ensure that regulators are aware of the potential impacts to Power Source Disclosure and RPS compliance deadlines. Due to these statewide issues, 3CE requested and was granted a 60-day extension, until September 1, for its annual Joint Rate Comparison (JRC) mailer to ensure accurate reporting of 3CE’s 2023 generation portfolio contents. The JRC compares 3CE and the respective IOU’s generation costs and power mix for customers to better understand their generation service options.

Next Steps
7 Staff will monitor the new RPS proceeding to ensure 3CE’s ongoing RPS compliance and progress towards sourcing 100% clean and renewable energy by 2030, 15 years ahead of the state goal. Staff will continue to communicate with regulators regarding REC delays and will remain informed of any corresponding changes to compliance requirements. A PD on LSE 2024 procurement plans will be issued in Q4 of 2024. 3CE customers will receive their JRC by September 1.

Interconnections – R.24-01-018
Issue
The California Energy Commission’s (CEC) 2023 Integrated Energy Policy Report (IEPR) identifies interconnection delays as a significant barrier to achieving California’s electrification and decarbonization goals.

Ongoing initiatives led by various entities are working to address this issue and streamline processes for connecting clean resources to the grid. One such effort is CAISO’s 2023 Interconnection Process Enhancements (IPE) initiative, focused on enhancing coordination of resource procurement, interconnection, and transmission planning to achieve state reliability and policy needs. In addition, the CPUC instituted a new rulemaking in January to establish reasonable timelines for customers to receive new service connections and to create reporting procedures for customers experiencing delays as part of implementing recent statutes.

CAISO Interconnection Process Enhancements Status
On June 12, the CAISO Board of Governors unanimously approved CAISO’s final IPE proposal, which significantly modifies its interconnections study process and introduces a new scoring criteria to weigh LSE interest in prospective projects. To participate in the scoring of interconnection applications, LSEs are required to opt-in and publicly post their scoring criteria prior to the interconnection application period. CAISO will revise its tariff language to implement these changes and then file the amendments for approval from FERC.

Energization Rulemaking Status
Phase 1 of the proceeding is on an expedited schedule to meet Senate Bill (SB) 410’s requirement for the CPUC to set average and maximum target energization time periods and a procedure for customers to report delays by September 30, 2024. To inform its decision, the CPUC directed the IOUs to provide data on the average timelines of current energization processes and requested stakeholder input on the CPUC’s implementation of SB 410. 3CE helped shape CalCCA’s comments recommending that the CPUC and IOUs establish a web portal for customers to communicate energization delays, track their project status, and submit related complaints.

Next Steps
Distribution planning or implementation failures can delay new customer load interconnection, affecting CCA customers. 3CE will monitor these initiatives, advocate for transparency and efficiency in interconnection and energization processes, and promote accelerated deployment and grid connection of clean energy resources. 3CE will also remain informed of CAISO’s enhancements to the interconnection process and will assess its interest in and potential approach to participating in the new interconnection scoring process.

Diablo Canyon Power Plant Extension – R.23-01-007
Issue
SB 846 required the CPUC to consider the potential expansion of operations at the Diablo Canyon Power Plant (DCPP) for an additional five years beyond its retirement dates to improve system reliability while additional renewable energy and zero-carbon resources come online. DCPP is owned and operated by PG&E and was licensed by the Nuclear Regulatory Commission (NRC) to operate until November 2, 2024 (Unit 1) and August 26, 2025 (Unit 2). In 2023, the CPUC opened a new proceeding related to the potential extension of DCPP. 8 Phase 1 of the proceeding concluded with a Decision that authorized extended operations of DCPP and allocated the costs and benefits to LSEs.

Status
On June 25, the CPUC issued a Scoping Memo to set the schedule and issues for Phase 2 of the proceeding.

Phase 2 will consider additional processes and mechanisms to review, recover, and approve potential extended operations costs at DCPP, including PG&E’s use of volumetric performance fees (VPF). SB 846 specifies that excess revenue generated by the extended operation of DCPP should be spent on public purpose priorities such as accelerating interconnection and promoting renewable energy. CalCCA will participate in this phase to ensure PG&E’s use of VPFs prioritizes critical distribution-related needs that benefit both bundled and unbundled customers.

Next Steps
3CE staff will continue to monitor the proceeding and support CalCCA’s advocacy that VPFs expenditures align with SB 846 and equally benefit all ratepayers. Party proposals on Phase 2 issues are due August 15, 2024.

Load Management Standards (LMS) and Real-Time Pricing – 23-LMS-01 Issue
The California Energy Commission’s (CEC) updated Load Management Standards (LMS) now require IOUs, municipal utilities, and CCAs with load greater than 700 GWh/year to upload time-dependent rates to the CEC’s Market Informed Demand Automation Server (MIDAS) platform, develop a LMS Compliance Plan by March 2024, and present to their governing bodies, for approval by the CEC, at least one hourly marginal cost based rate option (often referred to as a real-time rate) for their customers by 2025.

Status
3CE continues to follow its LMS Plan as adopted by the Policy Board on February 21. Accordingly, staff is participating in stakeholder working groups on the development of a statewide tool for authorized rate data access by third parties. 3CE staff is currently reviewing a Joint IOU proposal for the tool’s design with the goal of reaching consensus among all LSEs on a final proposal, due on October 1. Separately, staff developed a draft standardized list template for CCAs to use when submitting cost-effective load flexibility programs to the CEC, another LMS milestone scheduled for October 1.

Next Steps
3CE staff will finalize the list template and will use it to submit the cost-effective programs included in its LMS Plan by the October 1 deadline. 3CE will also continue to collaborate with stakeholders on development of the single statewide tool and advocate that related costs be covered by the CEC or non-ratepayer funding if possible, or that any necessary cost recovery processes are equitable and transparent.

Power Source Disclosure (PSD) and Power Content Label (PCL) – 21-OIR-01 Issue
The CEC’s Power Source Disclosure (PSD) program requires LSEs to provide annual disclosures of the energy sources and greenhouse gas (GHG) emissions associated with their electricity portfolio from the prior year.

LSEs disclose this information to their consumers along with California’s total system power mix on an annual Power Content Label (PCL). 3CE’s annual PCL reflects the GHG intensity and energy resources associated with its two energy products, 3Cchoice and 3Cprime.

Status
9 The CEC is currently amending its PSD regulations in accordance with recent legislation requiring LSEs to report hourly data on their load, sources of electricity, and associated GHG emissions starting in 2028. These changes do not apply to 3CE’s 2023 PSD, submitted to the CEC on July 29, or the PCL information in the Joint Rate Comparison mailer distributed to 3CE customers this month.

Next Steps
3CE will continue to monitor the CEC’s rulemaking process to remain informed of changes to future reporting and compliance requirements. The CEC plans to vote on proposed amendments to its PSD regulations at its August 14 business meeting.

Energy Resources Recovery Account (ERRA) Compliance – A.22-02-015; A.22-04-001; A.24-02- 012
Issue
Energy Resource Recovery Account (ERRA) compliance filings are made annually by the Investor Owned Utilities (IOUs) for the approval of costs associated with Utility Owned Generation (UOG) operations and fuel procurement, Portfolio Allocation Balancing Account (PABA) entries, economic dispatch of electric resources, and contract administration. IOUs are required to demonstrate compliance with CPUC decisions and the California Public Utilities Code. All CCAs participate jointly in these proceedings through CalCCA to ensure unbundled customers are treated equitably in IOU rate-setting decisions.

PG&E Status
CalCCA planned to file its opening brief in PG&E’s 2022 ERRA Compliance case on May 20, 2024, recommending the CPUC reverse its decision to exclude CalCCA evidence from the record and argues that PG&E’s BPP should be considered in the IRP proceeding. The CPUC removed opening and reply briefs from the schedule on May 17, 2024, and ordered briefs on just the RA scoping issue due June 6, 2024, via email ruling on May 22, 2024.

CalCCA used portions of its already-drafted opening brief to comply with the CPUC’s email ruling for filing an opening brief on the RA issue on June 6, 2024, and continued to argue for addressing PG&E’s lack of compliance with making reasonable attempts to sell its excess RA in 2022.

The June 12, 2024, Scoping Ruling for PG&E’s 2023 ERRA Compliance case did not adopt CalCCA’s recommended scoping item to be able to examine PG&E’s treatment of excess RA in 2023. The Ruling kept the standard phrasing that determining whether PG&E’s RA activities complied with its BPP. While the CPUC did not use CalCCA’s recommended wording, it did not adopt PG&E’s proposal either, likely to avoid creating confusion before a decision in PG&E’s 2022 ERRA Compliance case.

SCE Status
The 2022 SCE ERRA Compliance Case highlights two unresolved issues: (1) SCE's overcharge on franchise fees to departing load customers and (2) its attempt to recover CAISO penalty costs through customer rates. In opening briefs, the Joint CCAs are advocated for a refund of the over collected franchise fees and opposed the inclusion of CAISO penalties in rates. SCE’s response argued that CalCCA has the same burden of proof as SCE to prove the franchise fees were duplicative and that the error was fixed within the tariff, so the issue is irrelevant. SCE also argues that the CAISO fees are negligible and have minimal impact. However, these responses essentially transfer the consequences of SCE's errors onto customers. In Reply Briefs, the Joint CCAs will persist in advocating for customers to receive proper restitution.

Next Steps
Upcoming Proposed Decisions (PDs) are expected on August 30 for the PG&E 2021 ERRA Compliance case and July 31 for the SCE 2022 ERRA Compliance case.
10 Energy Resources Recovery Account (ERRA) Forecast – A.23-05-012; A.23-06-001 Issue
ERRA forecast applications are filed annually by IOUs to look ahead at energy procurement-related revenue requirements, including the allocation of costs across Power Charge Indifference Adjustment (PCIA) vintages.

CCAs participate through CalCCA to ensure: (1) accuracy of forecast account balances, rates, and cost calculations; (2) proper attribution of PCIA vintage; (3) proposer attribution between bundled and unbundled customers; (4) appropriateness of IOU proposals within the context of an ERRA forecast proceeding.

Status
PG&E:

CalCCA filed a protest to PG&E’s 2025 ERRA Forecast Application on June 17, 2024, opposing PG&E’s proposal to freeze RA Market Price Benchmarks (MPBs) at 2024 levels if they increase from forecasted levels as this would shift costs to CCA customers through increased PCIA rates. On August 1, the CPUC ruled in favor of CalCCA’s protest that PG&E’s RA MPB proposal is inappropriate for an ERRA proceeding but found that it may merit consideration in a statewide rulemaking proceeding.

SCE:

SCE filed its 2024 ERRA Trigger Application on May 31, 2024, due to an overcollection in the ERRA and requested to reduce bundled generation rates by up to $724 million. SCE will wait to see how summer month energy prices turn out before implementing rate decreases and requested to reduce rates in October 2024.

CalCCA will motion for party status at the pre-hearing conference but has not yet identified significant issues to protest.

CalCCA filed a protest to SCE’s 2025 ERRA Forecast Application on June 17, 2024. While not included in SCE’s application, CalCCA’s protest will propose that the CPUC should similarly refrain from adjusting ESA costs in the ERRA Forecast proceeding, since PG&E and SDG&E both propose to adjust ESA cost recovery in theirs. CalCCA continues to examine SCE’s application.

Next Steps
Intervenor testimony is due October 8 for the Consolidated 2024 ERRA Forecast, September 3 for the PG&E 2025 ERRA Forecast, and August 9 for the SCE 2025 ERRA Forecast. 3CE staff will monitor for any new rulemaking to address MPBs and will continue working with CalCCA and other CCAs to develop effective advocacy strategies
SCE General Rate Case – A.23-05-010
Issue
In four-year cycles, IOUs submit General Rate Case (GRC) applications for authority to adjust rates and charges for electric and gas service. The revenue requirements include electric and gas distribution system costs, administrative expenses, and customer service costs. This can impact 3CE as there are service fees that are paid by the CCAs to the IOU for billing and customer account administration.

Status
CalCCA submitted opening briefs for the SCE 2025 Phase 1 GRC on July 15, 2024 focusing on these four points:
(1) SCE proposed increasing the CCA administrative fees are unreasonable, (2) SCE’s handling of Rule 17 Billing errors are incorrect and they must treat bundled and unbundled customers the same when it comes to limited back charges due to SCE error, (3) SCE's decommissioning cost benefit analysis for its Solar Photovoltaic Program (SPVP) assets should be updated before the CPUC authorizes funding for decommissioning, and (4) 11 SCE should provide additional data on Utility Owned Generation reinvestments, like the information ordered by the CPUC in PG&E's 2023 GRC Phase 1 decision.

Next Steps
The Joint Comparison Exhibit, which provides a comparison of the litigation positions of parties, is due August

5. Staff Report Item 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Receive a financial report for the period October 1, 2023, through May 31, 2024 DATE: August 14, 2024
RECOMMENDATION:

Receive a financial report for the period October 1, 2023, through May 31, 2024.

SUMMARY:

Over the course of eight months ending May 31, 2024, operating revenues amounted to $332.1 million, and operating expenses totaled $296.7 million for a net operating income of $35.4 million. Non-operating revenue of $8.0 million, driven by interest and investment returns, netted the month with a $43.4 million net position growth.

Year-to-date operating revenue is $29.9 million lower than budget, primarily due to seasonal fluctuations in revenues and expenditures. However, operating revenue is expected to align with the budget as the fiscal year progresses. Meanwhile, investment revenue exceeded the budget with a favorable variance of $4.3 million, as staff actively manages in a favorable short-term interest rate environment.

Year-to-date operating expenditures are lower than budget by $5.9 million. The cost of energy was $4.1 million higher than budget. The variance is from higher-than-expected resource adequacy (RA) capacity purchases. Non-energy operating costs were $10.0 million lower than budget due to less-than-planned costs for energy programs, contracted services, and staff vacancies.

Net position at the end of May 31, 2024, totaled $285.2 million, a $43.4 million increase from the start of the fiscal year. The increase is attributed to growth in prepaid expenses to suppliers, collateral posted with the CAISO and suppliers, and the increased long-term asset purchase (San Luis Obispo satellite office). Cash, cash equivalents, and short-term investments totaled $225.2 million, a $29.8 million decrease from the start of the fiscal year. This decrease is primarily due to the prepayment of RA purchases that occurred in April. Liquidity is expected to increase through the end of the fiscal year.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. May 31, 2024 Financial Report

FINANCIAL REPORT
Fiscal Year to Date
As of May 31, 2024
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 May 31, 2024, 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
June 26, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents - unrestricted $ 198,145,222
Accounts receivable, net of allowance 28,289,542
Accrued revenue 26,233,965
Other receivables 441,760
Loan receivable 190,718
Prepaid expenses 66,595,942
Deposits 19,485,921
Cash - restricted 294,000
Investments 27,064,780
Total current assets 366,741,850
Noncurrent assets
Deposits 23,182
Loan receivable 1,330,079
Lease asset, net of amortization 1,202,707
Land 898,658
Capital assets, net of depreciation and amortization 1,863,875 Total noncurrent assets 5,318,501
Total assets 372,060,351
Current liabilities
Accrued cost of electricity 50,236,756
Accounts payable 1,060,021
Other accrued liabilities 1,592,625
User taxes and energy surcharges due to other governments 1,745,068 Lease liability 316,830
Total current liabilities 54,951,300
Noncurrent liabilities
Security deposits - energy suppliers 30,931,454
Lease liability 952,653
Total noncurrent liabilities 31,884,107
Total liabilities 86,835,407
Net investment in capital assets 2,695,757
Restricted for security collateral 294,000
Unrestricted 282,235,187
Total net position $ 285,224,944

NET POSITION
As of May 31, 2024

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES
See accountants' compilation report.

OPERATING REVENUES
Electricity sales, net 331,980,522$
Other income 75,500
Total operating revenues 332,056,022

OPERATING EXPENSES
Cost of electricity 278,199,464
Contract services 7,606,063
Staff compensation 4,946,642
Other operating expenses 1,093,698
Program incentives 4,428,299
Depreciation and amortization 385,362
Total operating expenses 296,659,528
Operating income (loss) 35,396,494

NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 8,004,534
Interest and financing costs (47,409)
Nonoperating revenues (expenses) 7,957,125
CHANGE IN NET POSITION 43,353,619
Net position at beginning of period 241,871,325
Net position at end of period $ 285,224,944
Eight Months Ended May 31, 2024

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report.

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 341,164,718$
Other operating receipts 75,500
Receipts of deposits and collateral 16,025,183
Payments to suppliers for electricity (338,881,331)
Payments of deposits and collateral (28,342,835)
Payments for other goods and services (9,619,541)
Payments for program incentives (5,115,107)
Payments of staff compensation (4,776,680)
Payments of taxes and energy surcharges to other governments (6,088,979) Net cash provided by operating activities (35,559,072)

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interest and related expense payments (5,944)
Net cash provided by non-capital financing activities (5,944)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (239,355)
Payments to acquire capital assets (2,362,549)
Net cash provided (used) by capital and related financing activities (2,601,904)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 6,414,073
Proceeds from investment sales 110,748,461
Principal payments received of loan receivable 187,201
Purchase of investments (76,777,462)
Net cash provided (used) by investing activities 40,572,273 Net change in cash and cash equivalents 2,405,353
Cash and cash equivalents at beginning of year 196,033,869 Cash and cash equivalents at end of period $ 198,439,222 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted $ 198,145,222
Cash - restricted 294,000
Cash and cash equivalents $ 198,439,222
Eight Months Ended May 31, 2024

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report.

Operating income (loss) $ 35,396,494
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 385,362
(Increase) decrease in:

Accounts receivable, net of allowance 4,469,733
Accrued revenue (1,368,859)
Other receivables 3,632,052
Prepaid expenses (66,215,731)
Deposits (12,991,827)
Increase (decrease) in:

Accrued cost of electricity 1,314,280
Accounts payable (1,696,915)
Other accrued liabilities 850,824
User taxes and energy surcharges due to other governments (8,659) Security deposits - energy suppliers 674,174
Net cash provided by operating activities (35,559,072)$

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Eight Months Ended May 31, 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report.

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 periods ended May 31, 2024, 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.

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

Maher Accountancy
San Rafael, CA
June 26, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Actual Budget $ Variance
%
Variance Actual Budget $ Variance
%
Variance
Annual
Budget
Annual Budget
Less Actual
YTD

REVENUES AND OTHER SOURCES
Electricity sales $ 43,116,642 $ 43,146,000 $ (29,358) 0% $ 336,455,378 $ 366,877,000 $ (30,421,622) 92% $ 563,933,447 $ 227,478,069 Uncollectible accounts (572,295) (625,000) 52,705 -8% (4,474,856) (5,000,000) 525,144 89% (7,500,000) (3,025,144) Electricity sales, net 42,544,347 42,521,000 23,347 0% 331,980,522 361,877,000 (29,896,478) 92% 556,433,447 224,452,925 Investment and miscellaneous income 913,420 533,000 380,420 71% 8,080,034 4,267,000 3,813,034 189% 6,400,000 (1,680,034) Total revenues and other sources 43,457,767 43,054,000 403,767 1% 340,060,556 366,144,000 (26,083,444) 93% 562,833,447 222,772,891 EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 48,593,288 47,920,000 (673,288) -1% 278,511,720 274,415,000 4,096,720 101% 520,297,514 241,785,794 Salaries and benefits 674,644 795,000 120,356 15% 4,946,642 6,358,000 (1,411,358) 78% 9,537,076 4,590,434 Services and supplies 1,698,439 2,750,000 1,051,561 38% 13,446,467 22,000,000 (8,553,533) 61% 32,998,857 19,552,390 Total current expenditures 50,966,371 51,465,000 498,629 1% 296,904,829 302,773,000 (5,868,171) 98% 562,833,447 265,928,618 Surplus (deficit) $ (7,508,604) $ (8,411,000) $ 902,396 -11% 43,155,727 $ $ 63,371,000 $ (20,215,273) -32% $ (43,155,727) - $ Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Current Month and Eight Months Ended May 31, 2024
Current Month
Variance fav. (unfav.)
Year-To-Date
Variance fav. (unfav.)
See accountants' compilation report.

Budget Item YTD Variance Comment
Electric Sales Revenue (8.3%) 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 1.5% 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 (22.2%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (62.5%) This category includes accounting, IT, technical and other consultants.

Legal Costs (13.6%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (28.1%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services 1.5% These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (3.8%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (46.5%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (50.5%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2023 through May 31, 2024
-14.2%
-12.7%
Act
Bud
$53.5
$87.5
$36.1
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$332.0
$361.9
$556.4
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
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) 416 393 409 406 358 366 356 340
Budget 452 459 444 420 402 416 419 383 386 405 423 427
0 50
100
150
200
250
300
350
400
450
500

CUSTOMERS

SALES VOLUME
340 GWh

STD MARGIN
$6.0M (-14%)
Δ in NET ASSETS
-$7.5M
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 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 FY23/24 budget
Monthly Sales Volume (GWh)
Financial Dashboard: May 2024

CUSTOMERS
457,000
ACTIVE
May revenue of $43.5M accounts for 340
GWh in net retail consumption, 43 GWh
below budget.

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

The charts below display cumulative
revenue and margin $ vs budget.
33%
49%
18%
39%
47%
14%
Res
Com
Ag
YTD Month
Revenue $43.5
C.O.E. $48.6
OpEx $2.3
Net Income -$7.5
-$6.0
-$5.4
Act
Bud
Margin $
10 38%
45%
17%
43%
45%
12%
Res
Com
Ag
YTD Month

REVENUE
$43.5M
Margin %
YTD Electricity revenue is $332M compared
to budget of $362M. YTD Direct Margin
(defined as Electricity Sales less Cost of
Energy) of $53.5M is below budget by
$34M.

Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank/ Chase - Money Market and other Interest Earning AccountsFunds Invested - Average Balance 132,319,400$ 114,651,102$ $ 105,356,390 $ 104,396,252 $ 103,895,294 $ 136,670,988 $ 89,128,674 $ 103,094,923 Gains/Losses/Interest $ 2,904,506 $ 406,536 345,045.39 356,733.82 348,153.12 328,669.77 467,310.22 292,100.83 359,957.02 Average APY 3.69% 3.61% 4.06% 4.00% 3.80% 4.10% 3.93% 4.19%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance $ 40,000,000 $ 50,000,000 $ 40,000,000 $ 40,000,000 $ 30,000,000 $ 30,000,000 $ 20,000,000 $ - Gains/Losses/Interest $ 1,277,633 178,385.54 213,485.85 236,035.13 205,868.28 193,103.80 116,602.81 103,270.38 30,881.04 Average APY 5.35% 5.12% 7.08% 6.18% 7.72% 4.66% 6.20% #DIV/0!RBC GAM / Principal Financal/ Schwab/FidelityFunds Invested - Average Balance $ 84,038,064 $ 89,456,032 $ 104,918,181 $ 110,378,734 $ 109,851,410 $ 85,196,666 $ 102,094,893 $ 116,668,316 Gains/Losses/Interest $ 3,402,354 351,852.83 417,968.37 462,148.76 463,382.88 411,214.03 409,319.23 398,176.83 488,291.25 Average APY 5.02% 5.61% 5.29% 5.04% 4.49% 5.77% 4.68% 5.02%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2023 through May 31, 2024
Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance 17,289,755$ 8,999,894$ 1,290,796$ 338,805$ 370,292$ 28,289,542$

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of May 31, 2024
Staff Report Item 6
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Christopher Cook, Director of Energy Programs SUBJECT: Approve and authorize the CEO to execute Amendment No. 4 to the Aiqueous, LLC Amended and Restated Standard Services Agreement to provide a customer relationship management platform to support Energy Programs, and to renew and extend the expiration date for an additional seven (7) months, for a revised term of January 2, 2020 through April 29, 2025, and to increase the Agreement’s amount by an additional $80,570 for a total not-to-exceed amount of $775,805.

DATE: August 14, 2024
RECOMMENDATION:

This memorandum recommends that the Operations Board approve and authorize the CEO to execute Amendment No. 4 to the Aiqueous, LLC Amended and Restated Standard Services Agreement to provide a customer relationship management platform to support Energy Programs, and to renew and extend the expiration date for an additional seven (7) months for a revised term of January 2, 2020 through April 29, 2025, and to increase the Agreement’s amount by an additional $80,570 for a total not-to-exceed amount of $775,805.

BACKGROUND:
3CE executed an Agreement in January 2020 with Aiqueous to develop and implement PowerPath, a Customer Relationship Management (CRM) platform and energy programs management software. The original Agreement with Aiqueous contained a total not to exceed amount of $259,240 for a term of January 2, 2020 through September 30, 2021.

On September 15, 2021, the Operations Board approved an Amended and Restated Services Agreement with Aiqueous for a total not-to-exceed amount of $430,500 over a two-year term ending September 30, 2023.

On August 10, 2022, the Operations Board approved Amendment No. 1 to the Agreement with Aiqueous to add $33,750, with no time extension, for a total not-to-exceed of $464,250 in support of 3CE’s Energy Programs and Communications and Outreach efforts in FY 2022-23.

On May 10, 2023, the Operations Board approved Amendment No. 2 to the agreement with Aiqueous to add $39,000, with no time extension, for a total not-to-exceed amount of $503,250 in support of 3CE’s Energy Programs and Communications and Outreach efforts in FY 2023-24.

On September 13, 2023, the Operations Board approved Amendment No. 3 to the agreement with Aiqueous to add $191,985 for a total not-to-exceed amount of $695,235 and to extend the term of the agreement by one (1) year to September 30, 2024, in support of 3CE’s Energy Programs and Communications and Outreach efforts in FY 2023-24.

On May 8, 2024, the Operations Board approved a separate agreement to develop a new CRM system that would address critical gaps in 3CE’s ability to manage customer’s digital experience and streamline backend processing. The agreement, with Sacramento Municipal Utility District (SMUD), was made under a not to exceed amount of $916,041 with an initial delivery term of three (3) years, and operational cost savings expected in the third year. In the same meeting, the Operations Board also approved the execution of an agreement with Salesforce in an amount not-to-exceed $183,192 with an initial delivery term of three (3) years.

DISCUSSION/ANALYSIS:

The CRM system is critical to 3CE customers’ Energy Programs digital application experience and the associated backend data processing. To ensure a seamless transition from the current Aiqueous CRM to the new SMUD CRM, both systems will run in parallel during the initial launch and testing of the new system.

The proposed Amendment No. 4 to the agreement with Aiqueous will extend the term of the Agreement by seven (7) months to allow for continued and uninterrupted CRM services to support both Energy Programs and Communications and Outreach efforts into FY 2024-25. The proposed Amendment will also increase the not-to-exceed amount of the Agreement to cover necessary PowerPath licenses and Aiqueous support costs. Staff have identified a need for a total of 200 Aiqueous support hours for new and ongoing CRM configuration, program management support, and customer service support, which will be used on an as-needed basis. Licensing also includes the following:
 Accessto AIQUEOUS’ ticketing system – Jira Service Management  Resolution of system bugs that arise on POWERPATH
 Up to ten (10) total (i.e., across all licenses) non-bug support incidents per month, with a cap of up to ten (10) total hours of support per month with the ability to roll unused hours forward one month
 Integration of all new Salesforce releases, issued three (3) times per year Total PowerPath licenses and Formstack application fees are $49,070.18, and Aiqueous additional support fees will not exceed $31,500, necessitating a total contract amendment of an additional $80,570.18, for a total not to exceed amount of $775,805.

FISCAL IMPACT:

The not-to-exceed amount of the Agreement will increase by $80,570.18, which will be reflected in the FY 2024-25 Recommended Budget.

CONCLUSION:

The Board’s approval of the amended agreement with Aiqueous will ensure 3CE continues seamless CRM operations, including the processing of Energy Programs applications without interruption during 3CE’s transition to a new and improved CRM.

ATTACHMENT(S):

1. Proposed Amendment No. 4 to the Amended and Restated Standard Services Agreement 7/23/2024 1 Contract Number: EP-2024-028
AMENDMENT NO. 4

TO SERVICE AGREEMENT BETWEEN AIQUEOUS, LCC AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 4 to the Amended and Restated Service Agreement (“Agreement”) which was effective on October 3, 2023, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and AIQUEOUS, LLC (hereinafter “CONTRACTOR” or “AIQUEOUS”), a Texas limited liability company with its principal place of business located at 100 Crescent Centre Parkway Suite 450, Tucker, GA 30084. 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties”, with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into a Standard Services Agreement (the “Original Agreement”) on January 2, 2020 to provide Customer Relationship Management (“CRM”) services and support, and
WHEREAS, the Parties executed an Amended and Restated Agreement (“Agreement”) on September 30, 2021, with a total not to exceed amount of $430,500 for a term ending on September 30, 2023, and
WHEREAS, the Parties executed an Amended No. 1 to the Agreement on August 10, 2022, with an increased total not to exceed amount of $464,250, and
WHEREAS, the Parties executed an Amended No. 2 to the Agreement on May 16, 2023, with an increased total not to exceed amount of $503,250, and
WHEREAS, the Parties executed an Amended No. 3 to the Agreement on October 3, 2023, with an increased total not to exceed amount of $695,235, and
WHEREAS, 3CE requires program and CRM management services from AIQUEOUS in fiscal year 2024-2025, which will increase the total not to exceed amount by $80,570.18 for a total of $775,805.18 and extend the term of the Agreement to April 29, 2025.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Original Agreement as follows:

1. Amend section 2. Payment Provisions to read as follows:

2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-2, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to Docusign Envelope ID: 7270C589-9D99-4992-977B-37698F155B81 7/23/2024 2 Contract Number: EP-2024-028
CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $775,805.18, limited in each fiscal year as follows:

2.1.1.The NTE in FY 2021-2022 shall not exceed $238,750

2.1.2.The NTE in FY 2022-2023 shall not exceed $264,500

2.1.3.The NTE in FY 2023-2024 shall not exceed $191,985

2.1.4.The NTE in FY 2024-2025 shall not exceed $80,570.18 or such lessor amount consistent with the approved FY 2023-2024 Operating Budget.

2. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until April 29, 2025, unless sooner terminated pursuant to the terms of this Agreement.

3. Replace Exhibit B-1 with Exhibit B-2, attached and incorporated herein.

4. The Amendment No. 4 shall supersede any and all prior Amendments to the Original Agreement.

Except as provided herein, all remaining terms, conditions and provisions of the Original Agreement are unchanged and unaffected by this Amendment No. 4 and shall continue in full force and effect.

5. A copy of this Amendment No. 4 shall be attached to the Agreement.

6. This Amendment No. 4 shall be effective when signed by both parties.

SIGNATURE OF THE PARTIES:

Aiqueous, LLC Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Jon Ezrine, Chief Executive Officer Robert M. Shaw, Chief Executive Officer Date: ____________________________ Date: ____________________________ Docusign Envelope ID: 7270C589-9D99-4992-977B-37698F155B81 7/30/2024
7/23/2024 3 Contract Number: EP-2024-028
Approved as to Form
BY:__________________________________ BY:______________________________________ Mitch Bradley, Chief Revenue Officer Marina Pantchenko, Deputy General Counsel Date: ____________________________ Date: ____________________________ Approved as to Financial Terms
BY:______________________________________
Dewayne Woods, Chief Financial
Date: ____________________________
7/25/2024
Docusign Envelope ID: 7270C589-9D99-4992-977B-37698F155B81 7/23/2024 4 Contract Number: EP-2024-028
Exhibit B-2: Payment Terms
3CE shall provide payments to AIQUEOUS for the performance of all things necessary for, or incidental to, work authorized by 3CE staff, as set forth in Exhibit A: Scope of Services and in accordance with Section 2: Payment Provisions. AIQUEOUS’s compensation for services rendered shall be based on the following rates or in accordance with the following terms:

Annual Licensing
Annual licensing costs for POWERPATH and Formstack at the beginning of FY 2024-25 through April 29, 2025 will be $49,070.18. Additional licenses fees for POWERPATH, Formstack, and other necessary software may be included under this Agreement, subject to 3CE approval. Licensing costs for each additional year during the terms of this agreement may be subject to change.

Fees for FY 2024-25 associated with POWERPATH licenses and Formstack applications are detailed below:

Component Quantity Cost
POWERPATH - End User Communications &Outreach 13 $ 18,632.25 POWERPATH - End User License and Energy 6 $ 8,599.50
Admin - IT 4 $ 5,733.00
POWERPATH - Community 10 $ 1,470.00
POWERPATH Full Sandbox Communications & Outreach 1 $ 3,822.00 POWERPATH Full Sandbox Licenses and Energy 1 $ 2,058.00 POWERPATH Full Sandbox IT 1 $ 1,470.00
Formstack (1 year renewal) 1 $ 2,824.50
Annual Uplift 1 $ 4,460.93
TOTAL $ 49,070.18
Additional POWERPATH user licenses can be purchased at a cost of $195 per month, and additional POWERPATH Portal licenses can be purchased in blocks of 10 at a total cost of $200 per month.

AIQUEOUS licenses fees escalate at a rate of 5% per year.

Annual licensing includes the following:
• Accessto AIQUEOUS’ ticketing system – Jira Service Management • Resolution of system bugs that arise on POWERPATH
• Up to 10 total (i.e., across all licenses) non-bug support incidents per month, with a cap of up to 10 total hours of support per month with the ability to roll unused hours forward one month.
• All new Salesforce (three times per year) releases
Docusign Envelope ID: 7270C589-9D99-4992-977B-37698F155B81 7/23/2024 5 Contract Number: EP-2024-028
New Configurations and Annual Ongoing Support
AIQUEOUS will provide both new configurations and annual ongoing support services on an as needed basis rate of $157.50 per hour, in accordance with Exhibit A: Scope of Services. This provides up to 200 hours – billed at a Time and Materials basis up to a total of $31,500.00 in support services for FY 2024-25, based on a not to exceed amount of $80,570.18. Any work estimated exceeding 20 hours level of effort, will be assigned to Professional Services and billed appropriate rate based on resources.

Formal statement of work, schedule and payment schedule will be provided by Aiqueous.

As stated under “Annual Licensing,” above Incident management (i.e., system bugs and breaks) and up to 10 non-bug incidents (at a maximum of 10 hours per month for non-bug incidents) for POWERPATH does not count against new configurations and annual ongoing support hours and 3CE will not be invoiced for AIQUEOUS staff costs for such incidents.

Invoicing
On October 31 of each year for the term of this Agreement, AIQUEOUS will invoice costs for license fees. Additional licenses will be invoiced to 3CE upon 3CE authorization.

Notwithstanding Section 6 of this Agreement, on the last day of each month over the term of this Agreement, AIQUEOUS will invoice for authorized support hours and any other additional authorized costs under this Agreement, per Exhibit A. AIQUEOUS invoices shall indicate the number of hours worked over the specified period to support each department (Energy Program and Communications & Outreach), year to date expenditures, and remaining budget.

Docusign Envelope ID: 7270C589-9D99-4992-977B-37698F155B81 Staff Report Item 7
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs Griffin Boyle, Energy Program Analyst
SUBJECT: Approve and authorize the CEO to execute Amendment No. 4 to the Cohen Ventures, Inc., DBA Energy Solutions Standard Services Agreement to extend the term for an additional six (6) months, for a revised term of March 11, 2022 through January 31, 2025, to administer equity rates for the Electrify Your Home program, and to increase the Agreement’s amount by an additional $565,000 for a total not-to-exceed amount of $3,825,000. Approve and authorize the CEO to execute up to two (2) amendments to revise standard terms, with no change to the total contract amount, subject to approval by the General Counsel.

DATE: August 14, 2024
RECOMMENDATION:

It is recommended that the Operations Board approve and authorize the CEO to execute Amendment No. 4 to the Cohen Ventures, Inc., DBA Energy Solutions (Energy Solutions) Standard Services Agreement to extend the expiration for an additional six (6) months, for a revised term of March 11, 2022 through January 31, 2025, to administer equity rates for the Electrify Your Home program, and to increase the Agreement’s amount by an additional $565,000 for a total not-to-exceed amount of $3,825,000.

It is further recommended that the Operations Board approve and authorize the CEO to execute up to two (2) amendments to revise standard terms, with no change to the total contract amount, subject to approval by the General Counsel.

BACKGROUND:
3CE executed a Services Agreement in March 2022 with Energy Solutions to support implementation of 3CE’s Electrify Your Home Program (EYH). 3CE’s EYH program combines funds with state incentive funds via the TECH Clean California initiative to collaboratively accelerate residential electrification. The original agreement with Energy Solutions contained a total not to exceed amount of $1,760,000 for a term of March 11, 2022 through September 30, 2022.

On August 15, 2022, the Operations Board approved Amendment No. 1 to the Services Agreement with Energy Solutions to renew and extend the expiration for an additional twelve (12) months to September 30, 2023, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California initiative.

On August 24, 2023, the Operations Board approved Amendment No. 2 to the agreement with Energy Solutions to extend the term by an additional twelve (12) months until September 30, 2024, with no change in the Not to Exceed Amount, and to modify the Scope of Work to include support for victims of declared natural disasters and to more effectively leverage state funds.

On November 8, 2023, the Operations Board approved Amendment No. 3 to the agreement with Energy Solutions to add $1,500,000 for a total not-to-exceed amount of $3,260,000 without changing the terms of the agreement to allow the Electrify Your Home Program to continue through FY 2023-24 in support of 3CE’s Electrify Your Home program services.

DISCUSSION/ANALYSIS:
3CE’s Electrify Your Home (EYH) program provides incentives to local contractors who replace gas-powered appliances in existing single and multi-family buildings with all-electric heat pump water heating and heat pump heating, ventilation, and air conditioning (HVAC) technologies. These incentives directly reduce the upfront cost for 3CE residential customers who transition to all-electric heat pump technology.

EYH partners with the TECH Clean California Initiative (TECH), a statewide program, to leverage funds and support contractor enrollment and application management. The partnership also covers heat pump technology and installation workforce education and training opportunities led by TECH to support local economic development.

The proposed Amendment No. 4 to the Agreement with Cohen Ventures Inc., DBA Energy Solutions will extend the term of the Agreement by six (6) months to allow for continued and uninterrupted services to support the Energy Programs team in implementing the EYH program through FY 2024-25. The proposed Amendment will also enable customers enrolled in CARE or FERA to receive the equity rate for grid-connected heat pump water heater incentives. The proposed Amendment will also increase the not-to-exceed amount of the Agreement to support the following:
 TECH has consistently exhausted its funding for various eligibility categories during the past fiscal years. The contract will allow 3CE more flexibility to cover applicants’ full rebate amount during periods when TECH state funding is not available.  TECH executes various promotional campaigns to promote electrification. The contract will enable TECH to conduct more targeted outreach and create promotional materials for contractors and distributors within 3CE’s service area to ultimately improve awareness, and technology specific skills.
 TECH administers the incentive application process. The terms and budget of the contract will permit the EYH program to run in partnership with TECH through the end of the next FY. Also in FY 2024-25, 3CE will collaborate with its Community Advisory Council to understand existing heat pump incentive offerings and conduct community listening sessions to help improve the EYH program’s scope and impact for all residential 3CE customers.

The total incentive reimbursement has increased by $500,000; Energy Solutions program implementation fees have increased by $50,000, and Energy Solutions Outreach fees are $15,000, necessitating a contract amendment of $565,000 for a total not to exceed amount of $3,825,000.

Staff recommend authorizing the CEO to execute up to two (2) amendments to the agreement to revise standard terms with no change to the total contract amount, subject to approval by the General Counsel.

FISCAL IMPACT:

The not-to-exceed amount of the Agreement will increase by $565,000, which will be included in 3CE’s FY 2024-25 Recommended Budget.

CONCLUSION:

The Board’s approval of the amended agreement with Energy Solutions will ensure 3CE continues operating the Electrify Your Home Program without interruption to accelerate residential electrification in 3CE’s service area.

ATTACHMENT(S):

1. Original Amendment with Cohen Ventures, Inc., DBA Energy Solutions

2. Amendment No. 1 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

3. Amendment No. 2 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

4. Amendment No. 3 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

5. Proposed Amendment No. 4 to the Standard Services Agreement 3/9/2022 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”), a California corporation with its principal place of business located at 449 15th Street, Suite 400, Oakland, CA . 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 Exhibits A in conformity with the terms of this Agreement. The goods and/or services are generally described as services to implement a Residential Electrification Program for CCCE customers.

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 sum of $1,760,000.00.

3. TERM OF AGREEMENT

3.1. The term of this Agreement is from the date of execution until September 30th, 2022, 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:

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 2 Contract Number: ______________

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 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. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 3 Contract Number: ______________
if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.

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.

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.

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.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 4 Contract Number: ______________

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.

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. “Confidential Information” is defined as certain confidential, secret and proprietary information, disclosed either orally or in writing or in printed, graphic or electronically recorded materials, records, data, specifications, formulas, technology, inventions, devices, products, methods, know-how, processes, financial data, specific client data and requirements, client and potential client lists, information concerning each Parties employees, agents or divisions, pricing information, and other trade secrets which have been or will be developed and owned by either of the Parties or their respective client(s).

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 5 Contract Number: ______________

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. The Parties and their respective 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. A Party receiving Confidential Information (the “Receiving Party”) shall not disclose any confidential records or other Confidential Information received from the other Party (the “Disclosing Party”) or prepared in connection with the performance of this Agreement, unless the Disclosing Party specifically permits the Receiving Party to disclose such records or information. The Receiving Party shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or Confidential Information. The Receiving Party shall not use any Confidential Information gained by the Receiving Party in the performance of this Agreement except for the sole purpose of carrying out the Receiving Party’s obligations under this Agreement.

10.3. Upon expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party any Disclosing Party records which the Receiving Party used or received from the Disclosing Party to perform services under this Agreement.

10.4. 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.

10.5. 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 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.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 6 Contract Number: ______________

10.6. CONTRACTOR shall not publish any and all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature without the prior written approval of 3CE.

11. INTELLECTUAL PROPERTY RIGHTS

11.1 “Iris Platform” is defined as the Iris online software and associated data, owned and maintained by CONTRACTOR and provided as a part of the services to 3CE under this Agreement, that functions as an incentive processing and program reporting platform for 3CE’s customers and other third parties.

11.2 Intellectual Property Rights to the Iris Platform. All right, title, and interest in and to the Iris Platform (including without limitation all intellectual property rights therein) and all modifications, improvements, extensions, customizations, scripts or other definitive works of the Iris Platform provided or developed by the CONTRACTOR, whether prior to or during the Term of this Agreement, are and shall remain at all times solely vested in the CONTRACTOR. The Iris Platform was developed in its entirety by CONTRACTOR prior to the term of this Agreement, is the sole and exclusive property of CONTRACTOR, and CONTRACTOR retains all intellectual property rights thereto, including but not limited to copyrights (including all registrations and applications therefor), trade secrets, service marks, trademarks, trade names, trade dress, trademark applications and registrations, internet domain names, and all other proprietary and intellectual property rights, including moral rights.

Use of the Iris Platform by 3CE, its customers or any third party as part of the services shall not convey any rights of ownership to the Iris Platform, express or implied, including any intellectual property rights thereto, to any such party. During the term of this Agreement, CONTRACTOR grants to 3CE a non-exclusive, non-assignable, royalty-free, worldwide limited right to access and use the Iris Platform in connection with the services. Except as expressly provided herein, Company agrees not to assign, sublicense, transfer, copy, reproduce, distribute, republish, display, post or transmit in any form or by any means, any part of the Iris Platform to any third party. 3CE agrees not to access the Iris Platform by any means other than through the interfaces that are provided by CONTRACTOR.

Notwithstanding any conflicting terms of this Agreement, the Iris Platform and any and all works, expressions, inventions, ideas, discoveries, improvements and developments made to the Iris Platform by any person during the term of this Agreement, are explicitly excluded as "work for hire" pursuant to this Agreement.

Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.

11.3 Iris Platform Terms of Use. All users of the Iris Platform shall be required to comply with the Iris Platform's standard Terms of Use, including 3CE employees who accesses the Iris Platform in connection DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 7 Contract Number: ______________
with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.

12. NON-DISCRIMINATION

12.1. 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.

13. INDEPENDENT CONTRACTOR

13.1. 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.

14. NOTICES

14.1. Notices required under this Agreement shall be delivered personally, by email, or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below. In the case of email, Notices are considered received upon the date of confirmation of receipt or read receipt:

Central Coast Community Energy CONTRACTOR
Chief Financial Officer Contract Services
70 Garden Court, Suite 300 449 15th Street, Suite 400
Monterey, Ca 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected] DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 8 Contract Number: ______________

15. MISCELLANEOUS PROVISIONS

15.1. 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.

15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.

15.3. 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.

15.4. 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.

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

15.6. 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.

15.7. 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.

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

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

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

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

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 9 Contract Number: ______________

15.12. 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.

15.13. 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.

15.14. 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.

15.15. 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.

15.16. 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.

15.17. 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.

Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022
3/9/2022 10 Contract Number: ______________
Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022
3/9/2022 11 Contract Number: ______________
Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• In Person meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
Consultant will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, our software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. Consultant will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 12 Contract Number: ______________
Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all TECH incentives. This feature will be used for statewide, pilot, and regional incentives offered by TECH, and will be essential to scale and integrate new initiatives as building electrification is more widely adopted. The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse is to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Consultant will pay process, QA/QC and pay incentives for CCCE on the clearinghouse. Payments to contractors will combine both CCCE and TECH incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.

Estimated Percentage of Time Per Task:

Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Duration
Program duration is at the discretion of CCCE, but the current proposal assumes the program will run from July 1, 2022, through July 1st, 2025, or until the budget is spent.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 13 Contract Number: ______________
Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.

Single Family Incentives
Heat Pump HVAC Measures
TECH plans to offer baseline incentives of $3,000 per unit to all Gas IOU customers in California. TECH is seeking to partner with other program administrators that want to provide incentives to support quicker adoption by supporting an enhanced incentive structure that offers up to $3,600 in additional incentives. Consultant proposes that CCCE funds $1,500 per HP HVAC installation, which will allow the TECH to provide complementary incentives for the installation of higher efficiency equipment with higher installation quality. These CCCE funded incentives will be paid by the Consultant and dispersed through the Incentive Clearinghouse with the TECH funds to provide a seamless experience to market actors.

Table 1: Unitary/Split System Heat Pump HVAC Incentives *Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
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Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

The HP HVAC measures are for gas to heat pump conversion scenarios only. In all cases, the applicant must show that the gas equipment has either been fully decommissioned or setup to run in emergency scenarios only. In addition, the HP HVAC incentives are based on heat pumps that provide full-home heating and cooling. The incentives are available in cases when the customer does not have previous cooling.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.

Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit*
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Heat Pump Water Heater Measures
The Program will offer incentives for customers converting from a gas, propane, or electric resistance water heater to HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. Like the HP HVAC measures, TECH plans to offer baseline incentives for HPWH’s but will offer an enhanced incentive structure (up to a total of $6,600) for partners that want to provide incentives for these technologies. The enhanced incentive structure will support additional incentives for replacing electric resistance water heaters and for panel upgrades needed in conjunction with HPWH installations. Consultant proposes that CCCE offer $1,500 for gas to electric conversions. These incentives will be funded by CCCE and distributed by the Consultant with the complimentary TECH incentives. This contribution of funding enables TECH to offer complimentary incentives that are more attractive for replacing electric resistance replacement, and enable electric panel upgrades, overcoming a major barrier to many installations.

Table 3: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
TECH
Incentive
per Unit*
Total
Incentive
per Unit
Natural Gas/Propane
< 55 Gallons $1,500 $1,600 $3,100
> 55 Gallons $1,500 $2,300 $3,800
Electric resistance All $0 $1,500 $1,500
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

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Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

The incentive rates for natural gas or propane to HPWH are differentiated to support upsizing HPWHs to ensure the units have capacity to run primarily in heat pump mode, while also having load available to shift out of peak demand periods.

TECH will offer panel upgrade incentives for customers sizing up to 200 amps or installing a smart load center if the smart load center increases the effective panel capacity to support the added electrical load from the HPWH.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Consultant will re-evaluate incentive levels and participation after the first year, 2022, to determine whether the incentive design should be updated to meet the needs of CCCE and TECH. The soon to be released 120-volt “plug-in” HPWHs will be eligible for the incentive amount associated with the previous water heater fuel type. Consultant may establish a future measure category specifically available for the 120-volt HPWHs once more data on unit install cost are collected.

Multi-Family Incentives
Multifamily incentives are proposed to be 50% of current TECH offering for market rate incentives and 100% of the TECH incentives for low income. These incentives reflect similar incentives offered by other Program Administrators in the state and can be layered directly with the TECH incentives. This format will ensure that there is little confusion with multifamily contractors.

Gas to Electric HPWH
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 16 Contract Number: ______________
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Gas to Electric HP HVAC Incentives
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH Layered
Incentives*
Split or Rooftop HP - individual apt. $1,000 $2,000 $2,000 PTHP, SPVHP, unitary through the
wall - individual apt.
$250 $500 $500
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$500 $1,000 $1,000
HP HVAC - multiple apts. $500 $1,000 $1,000
Split or Rooftop HP - common area $900 $1,800 $1,800
PTHP, SPVHP, unitary through the
wall - common area
$150 $300 $300
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$400 $800 $800
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 17 Contract Number: ______________
Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
Consultant will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area, 2) coordination with additional TECH activities, and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 10% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and satisfactory demonstration of completed activities 1 – 3 above. Table 6 below provides the key performance indicators and budget for the Program.

Table 5: Budget and Participation Estimates
Key Metric Total
Estimated HP HVAC Units 667
Estimated HPWH Units 400
Incentive Reimbursement $1,600,000
Total Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 6. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 18 Contract Number: ______________
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.

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).

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 19 Contract Number: ______________
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. 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’s Dir. of Finance and Administration (or another executive manager) immediately.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/9/2022 20 Contract Number: ______________

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration 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’s Dir. of Finance and Administration for their consideration.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No.1 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, CCCE and CONTRACTOR entered into the Agreement on March 11, 2022, to provide goods and/or services generally described as services to implement a Residential Electrification Program (“Program”) for CCCE customers; and WHEREAS, CCCE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became either fully reserved or substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, CCCE seeks to extend the term of the Agreement to September 30, 2023; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, CCCE seeks to supplement incentive funds that were offered under the TECH Clean California Initiative to allow building electrification incentives to remain unchanged for CCCE customers.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.

1. Amend the first sentence of Section 3.1 to read as follows:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.

3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.

4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.

5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.

6. This Amendment No. 1 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. Central Coast Community Energy
BY:

Title: Associate Director
BY:

Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:

Approved as to Form
BY:

Brian Kimball, General Counsel
Date:

Approved as to Financial Terms
BY:

Jaya Bajpai, Chief Financial Officer
Date:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B 8/15/2022
8/15/2022
8/15/2022
DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 3 Contract Number:

Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 4 Contract Number:
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 5 Contract Number:

Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split Baseline HP Replacement $2,500
System and
mini/multi- < 5.4 tons Ducted 1 16.0 SEER 9.5 $3,000
split 2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive.

Table 4: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
Natural Gas/Propane < 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide an added incentive to income qualified applicants installing HPWH measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 6 Contract Number:

Table 5: Income Qualified Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 6: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 7: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Low Income
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
non HPWH to HPWH - central $1,800 $2,400
upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electricalservice
upgrade* $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 7 Contract Number:

Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 8: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Low Income
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area $450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electricalservice upgrade $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information. CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 8 Contract Number:

Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.

CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.

Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $1,600,000
Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B Amendment No. 2 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 2

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No.2 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of a residential electrification program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, 3CE and CONTRACTOR seek to extend the term of the Agreement to September 30, 2024; and WHEREAS, 3CE seeks to further support victims of declared natural disasters by providing enhanced incentives through the Electrify Your Home Program; and WHEREAS, 3CE seeks to leverage State funding available through the Self Generation Incentive Program to further support customers who choose to participate in Demand Response programs.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until September 30th, 2024, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A-1 with Exhibit A-2, attached and incorporated herein.

3. Except as provided herein, all remaining terms, conditions and provisions of the EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Amendment No. 2 To Agreement Between Energy Solutions and 3CE 2 Agreement Amendment No. 1 are unchanged and unaffected by this Amendment No. 2 and shall continue in full force and effect.

4. The terms and conditions in this Amendment No. 2 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 1.

5. A copy of this Amendment No. 2 shall be attached to the Original Agreement.

6. This Amendment No. 2 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. DBA Energy Solutions
BY:_________________________________
Samuel Cohen, President
Date: ____________________________
Central Coast Community Energy
BY:___________________________________
Robert M. Shaw, Chief Executive Officer
Date: ____________________________
Approved as to Form
BY:___________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:__________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/17/2023
8/24/2023
8/24/2023
8/24/2023
8/14/2023 3 Contract Number: EP-2023-019_
Exhibit A-2: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/14/2023 4 Contract Number: EP-2023-019_
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/14/2023 5 Contract Number: EP-2023-019_
Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $2,500
1 16.0 SEER 9.5 $3,000
2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to Contractor they are located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in or after February 2023, (b) Contractor passes this information on to 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 4: Equipment Replacement Disaster Kicker - HPHVAC Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPHVAC
Damage to home resulting
from declared natural
disaster
$3,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/14/2023 6 Contract Number: EP-2023-019_
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be combined with SGIP funds. Table 5: Heat Pump Water Heater Incentives
Previous WH Fuel Type HPWH Capacity
CCCE
Incentive per
Unit
CCCE
Incentive per
Unit for
Projects that
Leverage SGIP
funding
Natural Gas/Propane
< 55 Gallons $3,300 $1,500
> 55 Gallons $3,800 $1,500
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.Table 6: Income Qualified Kicker - HPWH Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 7: Equipment Replacement Disaster Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPWH
Damage to home resulting
from declared natural
disaster
$1,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/14/2023 7 Contract Number: EP-2023-019_
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 8: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 9: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Income
Qualified
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
Upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
Non HPWH to HPWH - central $1,800 $2,400
Upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electrical service
upgrade* $2,000 $2,800
Disaster Replacement Kicker** $1,000 $1,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/14/2023 8 Contract Number: EP-2023-019_
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 10: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Income
Qualified
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area
$450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electrical service upgrade $2,000 $2,800
Disaster Replacement Kicker** $2,000 $2,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.

1. Amend the first sentence of Section 3.1 to read as follows:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.

3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.

4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.

5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.

6. This Amendment No. 1 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. Central Coast Community Energy
BY:

Title: Associate Director
BY:

Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:

Approved as to Form
BY:

Brian Kimball, General Counsel
Date:

Approved as to Financial Terms
BY:

Jaya Bajpai, Chief Financial Officer
Date:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B 8/15/2022
8/15/2022
8/15/2022
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 3 Contract Number:

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 4 Contract Number:
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

1. GENERAL DESCRIPTION

2. PAYMENT PROVISIONS

3. TERM OF AGREEMENT

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:

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 2 Contract Number: ______________

5. PERFORMANCE STANDARDS

6. PAYMENT CONDITIONS

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.

7. TERMINATION

7.2. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 3 Contract Number: ______________
if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.

8. INDEMNIFICATION

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.

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.

9. INSURANCE REQUIREMENTS

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 4 Contract Number: ______________

10. RECORD AND CONFIDENTIALITY

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 5 Contract Number: ______________

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 6 Contract Number: ______________

11. INTELLECTUAL PROPERTY RIGHTS

Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.

11.3 Iris Platform Terms of Use. All users of the Iris Platform shall be required to comply with the Iris Platform's standard Terms of Use, including 3CE employees who accesses the Iris Platform in connection DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 7 Contract Number: ______________
with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.

12. NON-DISCRIMINATION

13. INDEPENDENT CONTRACTOR

14. NOTICES

15. MISCELLANEOUS PROVISIONS

15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.

15.4. 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.

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

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

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

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

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

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 9 Contract Number: ______________

15.12. 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.

15.14. 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.

Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 10 Contract Number: ______________
Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 11 Contract Number: ______________
Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 12 Contract Number: ______________
Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.

Estimated Percentage of Time Per Task:

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 13 Contract Number: ______________
Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 14 Contract Number: ______________
Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 15 Contract Number: ______________
Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Gas to Electric HPWH
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 16 Contract Number: ______________
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 17 Contract Number: ______________
Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 18 Contract Number: ______________
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.

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)

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 19 Contract Number: ______________
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

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.

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

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 3/9/2022 20 Contract Number: ______________

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’s Dir. of Finance and Administration for their consideration.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 3

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 3 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds; and WHEREAS, in the Summer of 2023, the second release of TECH Clean California, combined with the Parties continued marketing and outreach efforts, and growing contractor participation led to rapid acceleration of Program applications, resulting in the substantial reservation of Program funds allowed under the contract; and WHEREAS, without changing the term of the Agreement, 3CE and CONTRACTOR seek to extend the Not to Exceed Amount of the Agreement by $1,500,000 for a total Not to Exceed Amount of $3,260,000 to further support building electrification and the DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 2 Electrify Your Home Program throughout Fiscal Year 2023-24.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend Section 2.1 to read as follows:
3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $3,260,000.00.

2. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:

Expense Type Total
Incentive Reimbursement $2,963,636
Administration Costs $296,634
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $246,364
Total Costs $3,260,000

3. The terms and conditions in this Amendment No. 3 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 2.

4. A copy of this Amendment No. 3 shall be attached to the Original Agreement.

5. This Amendment No. 3 shall be effective when signed by both parties. [Signatures are on following page]
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Energy Solutions Central Coast Community Energy
BY: BY:

Title:_Chief Operating Officer
Date: 10/25/2023 |_2:40 PM PDT
Robert M. Shaw, CEO
Date:

Approved as to Form
BY:

Charles McKee, General Counsel
Date:

Approved as to Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date:
10/25/2023 3 Contract Number: EP-2023-024
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 10/26/2023
10/30/2023
DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC 11/8/2023
1 EP-2024-030
AMENDMENT NO. 4
TO SERVICES AGREEMENT BETWEEN COHEN VENTURES INC. dba Energy Solutions AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 4 to the Services Agreement (“Agreement”), which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions, a California corporation (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program in a not to exceed contract amount of $1,760,000 (“Program”), a copy of the Original Agreement, is attached to this Amendment as Exhibit D; and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative. A copy of Amendment No. 1 is attached to this Amendment as Exhibit E; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds. A copy of Amendment No. 2 is attached to this Amendment as Exhibit F; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 3 to the Agreement on November, 8, 2023 to increase the Not to Exceed Amount by $1,500,000 for a total not to exceed contract amount of $3,260,000 without changing the terms of the Agreement to allow the Electrify Your Home Program to continue through Fiscal Year 2023-24. A copy of Amendment No. 3 is attached to this Amendment as Exhibit G;
WHEREAS, 3CE now requires continued Electrify Your Home program implementation and enhanced customer engagement from CONTRACTOR in fiscal years (“FY”) 2024-2025, which will increase the total not to exceed amount by $565,000.00 for a total spend of $3,825,000, and extend the term of the agreement to January 31st, 2025.

Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 2 EP-2024-030

AGREEMENT
NOW, THEREFORE, in consideration of the mutual obligations of this Amendment, the Parties agree to amend the Agreement as follows:

1. Amend section 2.1 Payment Provisions to read as follows:

2.1 CCCE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $3,825,000.

2. Amend the first sentence of Section 3.1, as follows:

The term of this Agreement is from the date of execution until January 31st, 2025, unless sooner terminated pursuant to the terms of this Agreement.

3. Replace Exhibit A-2 with Exhibit A-3, attached and incorporated herein.

4. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:

Expense Type Total
Incentive Reimbursement $3,463,636
Administration Costs $361,364
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $296,364
Outreach Events* $15,000
Total Costs $3,825,000
*Outreach Event described in Scope of Work Task 3, which are beyond those support by TECH, will require written approval from 3CE.

Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3 EP-2024-030
All provisions of the original agreement and subsequent amendments, except as modified by this Amendment No. 4, remain in full force and effect. In the event of any conflict, inconsistency, or incongruity between any provision of this Amendment and any provision of the original agreement, the provisions of this Amendment No. 4 shall govern and control.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 4 as of the date of last signature.

Cohen Ventures Inc. Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Chris Burmester, Chief Operating Officer Robert Shaw, Chief Executive Officer Date: ____________________________
Approved as to Form
BY:___________________________________
Marina Pantchenko, Deputy General Counsel
Date: ____________________________
Cohen Ventures Inc.

BY:__________________________________
Angela Rodriguez, Chief Financial Officer
Date: ____________________________ Date: ____________________________ Approved as to Financial Terms
BY:______________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/2/2024
8/2/2024
4 EP-2024-030
Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with 3CE to develop, implement, and manage the 3CE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing 3CE’s interests with third parties and participating contractors.

CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to 3CE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit 3CE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by 3CE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between 3CE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 5 EP-2024-030
Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in 3CE territory are aware of the higher incentives sponsored by 3CE. CONTRACTOR will work with contractors to create installs in 3CE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the 3CE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors who operate in 3CE’s service territory. Support includes, but is not limited to, email and phone correspondence to discuss program issues, email newsletter updates regarding program changes/updates, maintenance of contractor facing resources, and review as needed of 3CE developed contractor resources
• Organize and participate in up to 8 in-person Distributor and Manufacturer supported events to support contractor awareness and enrollment at a fixed cost of $2,500 - $4,500 per event, depending on size. Potential distributor partners include, but are not limited to: Ferguson, Slakey Brothers, Johnstone Supply, RSD and US Air Conditioning • Coordinate with 3CE’s Communication Team to Identify trade organizations supporting contractors along the Central Coast and organize and participate in-person or virtual events to inform their members about EYH
• Provide copywriting and messaging support for 3CE on direct to contractor mailers Deliverables:
• Report out of number of enrolled contractors as requested • Monthly outreach activity summary
• Post-event summary writeup that includes overview of the event, any materials created for the event, number of attendees, and any key takeaways
Tabel 1: Fixed Price Outreach Fee for events not support by TECH Event Type Cost Per Event Activities covered by Cost
Event with less than 100 projected
attendees
$2,500
• Pre-event prep time
• Travel and labor to
attend event for 1
consultant
• Material
development
Event with more than 100 projected
attendees $4,500 • Pre-event prep time
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 6 EP-2024-030
• Travel and labor to
attend event for 1
consultant and 1
coordinator
• Material
development
Total NTE $15,000
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

CONTRACTOR will process applications, conduct QA/QC, and pay incentives for 3CE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both 3CE and additional incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with 3CE incentives. • Processing and Payment of 3CE Incentive applications.

Table 2: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. In cases where both TECH and 3CE are contributing to a measure, the base 3CE amount is listed in Table A while the combined TECH Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 7 EP-2024-030
and 3CE contributions are reflected in Table B. The incentives will be available throughout 3CE service area. Should TECH’s budget become depleted in any category, 3CE incentive contributions may increase up to the totals in Table B, upon 3CE discretion and written approval. The 3CE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.

Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a non-electric HVAC to all-electric HPHVAC. Per the language in the Incentive Plan section, 3CE reserves the right to adjust the contribution up to the combined TECH and 3CE incentive listed in Table 3B.

Table 3A: Air Source Heat Pump HVAC Incentives, 3CE Base Contribution Equipment Type* Does the Customer
Have Previous AC?
What is being done with previous
furnace?
3CE Base
Contribution per
Unit
EnergySTAR Listed Air Source HP
HVAC with compressor types of
either Continuously Variable or 2-
stage
Yes Fully Decommissioned $1,500
No Fully Decommissioned $1,000
Yes Remains to be used as blower only $1,000
No Remains to be used as blower only $1,000
*Incentives available for installations providing full-home heating/cooling.

Table 3B: Air Source Heat Pump HVAC Incentives, Combined TECH and 3CE Incentive Equipment Type* Does the Customer
Have Previous AC?
What is being done with previous
furnace?
3CE and TECH
Combined
Incentive per Unit
EnergySTAR Listed Air Source HP
HVAC with compressor types of
either Continuously Variable or 2-
stage
Yes Fully Decommissioned $3,000
No Fully Decommissioned $2,000
Yes Remains to be used as blower only $2,000
No Remains to be used as blower only $2,000
*Incentives available for installations providing full-home heating/cooling.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is for customers below 150% AMI. The incentive is a flat rate of $1,000/project.

Qualification will be determined through the use of a customer income verification tool provided by TECH Clean California.

Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8 EP-2024-030
Table 4: Air Source Heat Pump Income Qualified Kicker
Measure Qualifier
3CE
Incentive
per
project
Income Qualified Kicker Below 150% AMI $1,000
The Program will provide added incentives for the installation of HP HVAC measures when (a) a customer certifies to Contractor they are located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in or after February 2023, (b) Contractor passes this information on to 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 5: Air Source Heat Pump Disaster Rebuild Kicker
Measure Qualifier
3CE
Incentive
per
Project
Equipment Replacement
Disaster Kicker - HPHVAC
Damage to home
resulting from
declared natural
disaster
$3,000
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a non-electric water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be layered with SGIP funds. There will be two pathways for 3CE customers to receive incentives – the Grid-Connected HPWH pathway that follows the SGIP rules, and the non-Connected HPWH that does not require demand response or TOU rate enrollment.

Grid-Connected Heat Pump Water Heater Incentives
This category is for customers who meet all of the following criteria: (1) Replace a non-electric unit with a HPWH with load-shifting capabilities; (2) Enroll in an eligible time-of-use rate; (3) Program HPWH to follow the time-of-use rate; and (4) Enroll in an eligible demand response (DR) program. A complete set Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 9 EP-2024-030
of installation requirements for TECH can be found here: https://frontierenergy-tech.my.site.com/contractorsupport/s/article/Heat-Pump-Water-Heater-Install-Requirements To qualify for equity rates, customers must be on a CARE/FERA rate.

Per the language in the Incentive Plan section, 3CE reserves the right to adjust the contribution up to the combined TECH and 3CE incentive listed in Tables 6B and 7B.

Table 6A: Grid-Connected HPWH Incentives, 3CE Base Contribution Previous Water Heater
Fuel Type
Customer’s
Electricity
Provider
Equity
Customer?
Installed HPWH
Capacity
(Gallons)
3CE Base
Contribution
per Unit
Natural
Gas/Propane/Other
PG&E
No
<55 1,500
>=55 1,500
Yes
<55 1,500
>=55 1,500
SCE
No
<55 1,500
>=55 1,500
Yes
<55 1,500
>=55 1,500
Table 6B: Grid-Connected HPWH Incentives, Combined TECH and 3CE Incentive Previous Water Heater
Fuel Type
Customer’s
Electricity
Provider
Equity
Customer?
Installed HPWH
Capacity
(Gallons)
TECH + 3CE
Combined
incentive per
unit
Natural
Gas/Propane/Other
PG&E
No
<55 $4,600
>=55 $5,300
Yes
<55 $5,685
>=55 $6,385
SCE
No
<55 $4,600
>=55 $5,300
Yes
<55 $5,685
>=55 $6,385
Table 7A: Grid-Connected HPWH Electrical and Pre-Electrification Kicker, 3CE Base Contribution Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 10 EP-2024-030
Incentive
Category Qualifier Equity Customer? 3CE Base Contribution Electrical/Pre-electrification
Please refer to the following article for a detailed list of eligible costs per customer segment:
https://frontierenergy-tech.my.site.com/contractorsupport/s/article/ElectricalPanel-Upgrades Yes $0
No $0
Table 7B: Grid-Connected HPWH Electrical and Pre-Electrification Kicker, Combined TECH and 3CE Incentive
Incentive
Category Qualifier Equity Customer?
TECH +
3CE
Combined
Incentive
Electrical/Pre-electrification
Please refer to the following article for a detailed list of eligible costs per customer segment:
https://frontierenergy-tech.my.site.com/contractorsupport/s/article/ElectricalPanel-Upgrades Yes $4,000*
No $0
*Capped at 100% of reported Electrical + Pre-Electrification costs Non-Connected HPWH Incentives
This category of incentive is for customers who do not want to meet the full requirements of the "Connected HPWH" Category. This category of incentives will be fully funded by 3CE without a contribution from TECH:

Table 8: Non-Connected HPWH Incentives
Previous WH Fuel
Type HPWH Capacity
3CE
Incentive
per Unit
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 11 EP-2024-030
Natural Gas/Propane
< 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 9: Non-Connected HPWH Incentives Income Qualified Kicker Measure Qualifier
3CE
Incentive
per Unit
Income Qualified Kicker CARE/FERA
enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 10: Non-Connected HPWH Incentives Disaster Kicker - HPWH Measure Qualifier
3CE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPWH
Damage to home
resulting from
declared natural
disaster
$1,000
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 11: Panel Upgrade and Replacement Incentives
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 12 EP-2024-030
Measure Category
3CE
Incentive
per Unit
Panel upgrade $2,000*
*Customers pursuing a Grid-Connected HPWH will defer to the electrical and pre-electrification incentive structure listed in Table 6.

Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 12: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Income
Qualified
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
Upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
Non HPWH to HPWH - central $1,800 $2,400
Upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electrical service
upgrade* $2,000 $2,800
Disaster Replacement Kicker** $1,000 $1,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

Table 13: Multifamily Unit HP HVAC Incentives
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 13 EP-2024-030
Measure Market Rate Incentives
per Unit
Income
Qualified
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area
$450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electrical service upgrade $2,000 $2,800
Disaster Replacement Kicker** $2,000 $2,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

1. GENERAL DESCRIPTION

2. PAYMENT PROVISIONS

3. TERM OF AGREEMENT

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:

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 2 Contract Number: ______________

5. PERFORMANCE STANDARDS

6. PAYMENT CONDITIONS

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.

7. TERMINATION

7.2. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 3 Contract Number: ______________
if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.

8. INDEMNIFICATION

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.

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.

9. INSURANCE REQUIREMENTS

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 4 Contract Number: ______________

10. RECORD AND CONFIDENTIALITY

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 5 Contract Number: ______________

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 6 Contract Number: ______________

11. INTELLECTUAL PROPERTY RIGHTS

Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.

11.3 Iris Platform Terms of Use. All users of the Iris Platform shall be required to comply with the Iris Platform's standard Terms of Use, including 3CE employees who accesses the Iris Platform in connection DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 7 Contract Number: ______________
with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.

12. NON-DISCRIMINATION

13. INDEPENDENT CONTRACTOR

14. NOTICES

15. MISCELLANEOUS PROVISIONS

15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.

15.4. 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.

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

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

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

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

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

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 9 Contract Number: ______________

15.12. 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.

15.14. 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.

Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 10 Contract Number: ______________
Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 11 Contract Number: ______________
Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 12 Contract Number: ______________
Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.

Estimated Percentage of Time Per Task:

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 13 Contract Number: ______________
Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 14 Contract Number: ______________
Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 15 Contract Number: ______________
Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Gas to Electric HPWH
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 16 Contract Number: ______________
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 17 Contract Number: ______________
Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 18 Contract Number: ______________
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.

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)

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 19 Contract Number: ______________
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

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.

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

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 3/9/2022 20 Contract Number: ______________

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’s Dir. of Finance and Administration for their consideration.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.

1. Amend the first sentence of Section 3.1 to read as follows:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.

3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.

4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.

5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.

6. This Amendment No. 1 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. Central Coast Community Energy
BY:

Title: Associate Director
BY:

Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:

Approved as to Form
BY:

Brian Kimball, General Counsel
Date:

Approved as to Financial Terms
BY:

Jaya Bajpai, Chief Financial Officer
Date:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B 8/15/2022
8/15/2022
8/15/2022
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 3 Contract Number:

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 4 Contract Number:
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C Amendment No. 2 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 2

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until September 30th, 2024, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A-1 with Exhibit A-2, attached and incorporated herein.

3. Except as provided herein, all remaining terms, conditions and provisions of the EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C Amendment No. 2 To Agreement Between Energy Solutions and 3CE 2 Agreement Amendment No. 1 are unchanged and unaffected by this Amendment No. 2 and shall continue in full force and effect.

4. The terms and conditions in this Amendment No. 2 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 1.

5. A copy of this Amendment No. 2 shall be attached to the Original Agreement.

6. This Amendment No. 2 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. DBA Energy Solutions
BY:_________________________________
Samuel Cohen, President
Date: ____________________________
Central Coast Community Energy
BY:___________________________________
Robert M. Shaw, Chief Executive Officer
Date: ____________________________
Approved as to Form
BY:___________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:__________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/17/2023
8/24/2023
8/24/2023
8/24/2023
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 3 Contract Number: EP-2023-019_
Exhibit A-2: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 4 Contract Number: EP-2023-019_
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 5 Contract Number: EP-2023-019_
Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $2,500
1 16.0 SEER 9.5 $3,000
2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 4: Equipment Replacement Disaster Kicker - HPHVAC Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPHVAC
Damage to home resulting
from declared natural
disaster
$3,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 6 Contract Number: EP-2023-019_
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be combined with SGIP funds. Table 5: Heat Pump Water Heater Incentives
Previous WH Fuel Type HPWH Capacity
CCCE
Incentive per
Unit
CCCE
Incentive per
Unit for
Projects that
Leverage SGIP
funding
Natural Gas/Propane
< 55 Gallons $3,300 $1,500
> 55 Gallons $3,800 $1,500
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.Table 6: Income Qualified Kicker - HPWH Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 7: Equipment Replacement Disaster Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPWH
Damage to home resulting
from declared natural
disaster
$1,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 7 Contract Number: EP-2023-019_
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C 8/14/2023 8 Contract Number: EP-2023-019_
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 3

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds; and WHEREAS, in the Summer of 2023, the second release of TECH Clean California, combined with the Parties continued marketing and outreach efforts, and growing contractor participation led to rapid acceleration of Program applications, resulting in the substantial reservation of Program funds allowed under the contract; and WHEREAS, without changing the term of the Agreement, 3CE and CONTRACTOR seek to extend the Not to Exceed Amount of the Agreement by $1,500,000 for a total Not to Exceed Amount of $3,260,000 to further support building electrification and the DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 2 Electrify Your Home Program throughout Fiscal Year 2023-24.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

2. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:

Expense Type Total
Incentive Reimbursement $2,963,636
Administration Costs $296,634
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $246,364
Total Costs $3,260,000

3. The terms and conditions in this Amendment No. 3 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 2.

4. A copy of this Amendment No. 3 shall be attached to the Original Agreement.

5. This Amendment No. 3 shall be effective when signed by both parties. [Signatures are on following page]
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Energy Solutions Central Coast Community Energy
BY: BY:

Title:_Chief Operating Officer
Date: 10/25/2023 |_2:40 PM PDT
Robert M. Shaw, CEO
Date:

Approved as to Form
BY:

Charles McKee, General Counsel
Date:

Approved as to Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date:
10/25/2023 3 Contract Number: EP-2023-024
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 10/26/2023
10/30/2023
DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC 11/8/2023
Docusign Envelope ID: B749D8B8-BC25-4249-BE2D-986EAF6D6B7C Staff Report Item 8
TO: 3CE Operations Board of Directors
FROM: Robert M Shaw, Chief Executive Officer
PREPARED BY: Paige Callaghan, Energy Programs Analyst
SUBJECT: Approve and authorize the CEO to execute Amendment No. 3 to the Frontier Energy Inc.

Standard Services Agreement to support 3CE Energy Programs, extend the expiration date for an additional twelve (12) months for a revised term of May 11, 2022, through September 30, 2026, and to increase the Agreement by an additional $251,896 for a total not to exceed amount of $641,274.

DATE: August 14, 2024
RECOMMENDATION:

This memorandum recommends that the Operations Board approve and authorize the CEO to execute Amendment No. 3 to the Frontier Energy Inc. Standard Services Agreement to support 3CE Energy Programs, extend the expiration date for an additional twelve (12) months for a revised term of May 11, 2022, through September 30, 2026, and to increase the Agreement by an additional $251,896 for a total not to exceed amount of $641,274.

BACKGROUND:
3CE executed an Agreement in May of 2022 with Frontier Energy Inc. (Frontier) to support 3CE’s transportation electrification programs through the provision of technical assistance for agricultural and commercial electrification initiatives. The original Agreement with Frontier Energy contained a total not to exceed amount of $239,378 for a term of May 11, 2022, through September 30, 2023.

In January of 2023, the Operations Board approved an Amended and Restated Services Agreement (No. 1) with Frontier to add $150,000, with no time extension, for a total not to exceed amount of $389,378, in support of 3CE’s Electrify Your Ride program technical support services.

In October of 2023, the Operations Board approved an Amended and Reinstated Services Agreement (No. 2) with Frontier for a one-year term extension through September 30, 2024, with no change to the not to exceed amount, in support of 3CE’s Electrify Your Ride program technical support services.

DISCUSSION/ANALYSIS:

The lack of available and reliable electric vehicle (EV) charging infrastructure remains a key barrier to the widespread adoption of EVs throughout the Central Coast, particularly at publicly accessible areas, agricultural sites, and multifamily building properties. The proposed Amendment No.3 to the Agreement with Frontier Energy will extend the term of the agreement by two (2) years to allow for continued technical support of commercial and agricultural customers’ EV charging infrastructure projects and other customer education opportunities.

The proposed amendment No. 3 to the Agreement with Frontier Energy will expand customer educational opportunities and enhance feedback mechanisms. This includes updated EV charger installation guides with detailed information on state and federal regulations specifically tailored to agricultural customers. Below are components of the expanded customer support Frontier Energy will provide under the amended contract.
 Customer engagement events
 Customer education guides and consultation
 Technical assistance for multifamily, commercial, and agricultural customers  Facilitation services for applicants to 3CE’s Electrify Your Ride program rebates  Post-implementation support for tracking results
The focus on customer education and technical assistance work is designed to improve the overall effectiveness of 3CE’s electrification programs.

FISCAL IMPACT:

The not-to-exceed amount of the Agreement will increase by $251,896, which will be reflected in the FY 2024-25 Recommended Budget.

CONCLUSION:

The Board’s approval of the amended agreement with Frontier Energy, Inc. will continue and enhance 3CE’s technical assistance services for commercial and agricultural customers’ electrification initiatives.

ATTACHMENT(S):

1. Original Agreement with Frontier Energy Inc.

2. Amendment No. 1 to Agreement with Frontier Energy Inc.

3. Amendment No. 2 to Agreement with Frontier Energy Inc.

4. Proposed Amendment No. 3 to the Standard Services Agreement

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Central Coast Community Energy (3CE) Operations BoardAugust 14, 2024

Central Coast Community Energy (3CE) Operations Board
August 14, 2024