Board of Directors Meeting
March 26, 2026
Presentation: BESS Standards
2 BATTERY
ENERGY
STORAGE
SYSTEM
SAFETY
Operating Battery Storage Safely
• Equipment includes sensors and alarms
• Emergency response plan before construction
• Specific training/resources to fire departments before construction • Designed to applicable codes and standards
• In today’s industry we are fortunate to have tools that exist to manage the associated risks responsibly
9540A – Standard Test Method for Evaluating Thermal Runaway Fire Propagation in Battery Energy Storage Systems
o This is tested at the cell, module, and unit level to evaluate thermal propagation from one area to another.
NFPA 855 – Standard for the Installation of Stationary Energy Storage Systems o This is how the site is designed to fire code, involving proper setbacks to further prevent propagation, and to give plenty of safety setbacks
NFPA 69– Standard on Explosion Prevention Systems
o This is how Sungrow utilizes hydrogen sensors in conjunction with active ventilation to purge any buildup of hydrogen and prevent any risk of explosion. Typically designed in conjunction with site controller Uninterrupted Power Supply and small generator, so the active purge is not reliant on grid power.
NFPA 72– National Fire Alarm and Signaling Code
o This is how the site is designed with the fire alarm system, with a fire alarm control panel outside of the gate so first responders have information to work with. It also is related to the separate power system mentioned in NFPA 69.
Safety Standards:
STORAGE DEPLOYMENT AND FAILURE STATISTICS
BESS Incident Lessons Learned
• Battery fires can occur from thermal abuse during charging or discharging, mechanical failures, or environmental influences like water intrusion. However, between 2018 and 2024, the BESS failure rate (incidents per gigawatt installed) fell by 97% largely due to current rigorous codes and improvements in manufacturing.
• In the instance of an incident occurring that results in a fire, the industry best practices advise to monitor adjacent exposures and to let the involved unit consume itself safely. This approach addresses concerns with stranded energy and additionally, the heat from the fire safely consumes many toxics produced.
BESS Incident Lessons Learned (cont.)
• Current code direction is to not include suppression systems within the containers and that water should be used only to cool adjacent exposures. The fire safety emphasis is on early gas or smoke detection with integrated exhaust system activation.
• All fire alarm devices are monitored at a UL Central Station 24/7 per NFPA 72. The monitoring station would then contact fire dispatch on any detector activation.
BESS Incident Lessons Learned (cont.)
• Arriving first-in emergency responders would look for site contact information at the entrance and make direct contact with a site representative prior to taking any action.
• Site representatives can provide valuable diagnostic information on the involved enclosure and adjacent enclosures’ battery status. • Sites have the ability to remotely disconnect the BESS site from the grid to ensure optimum life safety.
BESS Incident Lessons Learned (cont.)
• A multi-agency command post can be established once the site representative arrives and makes a face to face with emergency response personnel.
• The Large-Scale Fire Test that is required by code for the battery technology demonstrates that a fire located in the unit under test will not propagate to adjacent enclosures. This creates a finite fire area of involvement and gives first responders valuable insight on how best to manage the incident.
Federal EPA BESS Fact Sheet
• Set an isolation zone for large commercial BESS that is at least 330 feet, depending on the site.
• Position responders upwind and uphill.
• Current guidance is to focus the response on preventing the spread of fire. Direct fire crews to let the fire burn itself out and to use water to prevent the spread of fire to neighboring batteries or other structures
Battery Energy Storage Systems: Main Considerations for Safe Installation and Incident Response
International Association of Fire Chiefs:
Recommended FD Response to Battery Energy Storage Systems • Defensive Firefighting, Water spray is the preferred agent for response to lithium-ion battery fires (Lithium-ion is not water reactive).
• If a fire has not developed and only smoke is visible, take a defensive stance toward the system and be prepared to apply water spray
• If a fire develops, take a defensive stance toward the burning unit and apply water spray to neighboring battery enclosures and exposures
• Maintaining a safe distance from the unit involved (large commercial systems, at least 300’).
• Response crews should allow the battery to burn out. Water should be applied to adjacent battery enclosures and exposures (building).
Recommended Fire Department Response to Energy Storage Systems (ESS) Part 1
PAST INCIDENTS DEMONSTRATE THAT FIRES
ARE CONTAINED WITHIN THE FACILITY AND AIR
QUALITY IN NEIGHBORING AREAS REMAINS AT
SAFE LEVELS.
Laboratory testing of emissions from Li-ion cells in thermal runaway shows that emissions are similar to those found in typical structure fires and plastics fires.
During an ESS battery fire, only trace amounts of chemicals are detected in sampling around the event, and overall air quality remains at safe levels.
During several different battery failures including a fire at a Tesla Megapack at Moss Landing in California, Gateway facility in San Deigo and the events in NY, air-quality testing showed no hazards to human health.
There has not been a real-world battery event that showed hazardous levels of emissions. All fires create emissions that should not be breathed, including house fires and commercial buildings.
PAST INCIDENTS DEMONSTRATE THAT FIRES
ARE CONTAINED WITHIN THE FACILITY AND THAT
WATER QUALITY IN NEIGHBORING AREAS
REMAINS AT SAFE LEVELS.
While fires at energy storage facilities are extremely rare, environmental data collected by government agencies, firefighters, and hazardous substance experts post incident, consistently shows no harmful contaminants in runoff water and no emissions exceeding nationally recognized safety thresholds, even within 50 feet of active incidents.
The County of Monterey Health Department’s Environmental Health Bureau examined water samples from fives areas around Moss Landing post incident in January 2025 and found that, “Tests for manganese, cooper, aluminum, and nickel showed levels below regulatory maximum contaminant levels and Public Health Goals, aligning with historical data for each location.”
PAST INCIDENTS DEMONSTRATE THAT FIRES ARE
CONTAINED WITHIN THE FACILITY AND THAT WATER
QUALITY IN NEIGHBORING AREAS REMAINS AT SAFE
LEVELS.
Reported findings from the recent Escondido fire in Southern California are as follows:
1) The presence of trace amounts of zinc, copper, and barium is typical in urban environments, however, the levels detected in the samples do not indicate a significant environmental or health hazard.
2) The absence of toxic metals such as lead, cadmium, and mercury further support that this water is unlikely to contribute to significant contamination of the environment. 3) Laboratory personnel at the Hale Avenue Resource Recovery Facility laboratory were consulted regarding the results of the runoff water analysis and confirmed that there were no concerns with this water entering the environment, especially when considering public health standards for drinking water.
PROJECT COMMITMENTS TO LOCAL
AUTHORITIES:
DESIGN, EMERGENCY RESPONSE, AND
TRAINING
Provide training to staff and Fire Departments.
Commissioning, Operation and annual
review/updates by trained personnel.
Provide access to subject matter experts and code
consultants
NFPA 72 compliant system with First Responders
for ERP communication
Designed to applicable codes and
standards and operating procedures
to prevent fire or explosion
Emergency Response Plan
developed prior to construction
Sites monitored 24/7 thru a Remote
Operation Center
QUESTIONS
Item 5: CEO Operational and
Administrative Report
19 CEA Enrollment Stats
20 Member City Eligible
Accounts
Clean Impact –
50% Renewable
Clean Impact Plus
- 75% Carbon
Free
Green Impact –
100% Renewable
Participation
Rate
Carlsbad 55342 181 49400 658 91%
Del Mar 3030 9 2758 71 94%
Escondido 57346 166 53458 70 94%
Oceanside 74802 229 69355 103 93%
San Marcos 38120 126 35284 74 93%
Solana Beach 7843 16 7001 149 91%
Vista 39615 92 36995 336 94%
TOTAL 276098 819 254251 1461 93%
CEA serves a total of 256,531 customer accounts across its seven member agencies Metrics as of March. 16, 2026.
Item 5
Completed Community Events
21 Item 5
DATE DESCRIPTION CITY
March 9, 2026 CA League of Cities Presentation San Diego March 10, 2026 Chamber of Commerce Green Business Committee Carlsbad March 10, 2026 San Diego North Economic Development Chamber San Marcos March 21, 2026 North County Climate Change Alliance Presentation Carlsbad March 25, 2026 Vista Unified STEM 2 Career Expo Vista
Upcoming Community Events
22 Item 5
DATE DESCRIPTION CITY
March 26, 2026 Meet the City Oceanside
March 27, 2026 CEA Sponsorship Night at Frontwave Arena Oceanside April 4, 2026 Earth Day Event Escondido
April 15, 2026 Green Business Expo Carlsbad
April 21, 2026 Del Mar City Council Presentation Del Mar April 23, 2026 Palomar College Earth Week San Marcos
April 24, 2026 Dr. Bronners Earth Week Extravaganza Carlsbad April 25, 2026 Earth Day/ Dia del Niño Oceanside
April 30, 2026 Graze at the Fields Carlsbad
23 Solar Plus and Battery Bonus Update
Member
City
Solar Plus Solar Plus
Connect
Battery Bonus Battery Bonus
Connect
Status Active Complete Active Complete Active Complete Active Complete Carlsbad 7 1 3 0 0 0 9 3
Del Mar 0 0 1 0 0 0 1 0
Escondido 9 4 13 0 0 0 11 3
Oceanside 6 2 6 0 0 0 12 4
San Marcos 7 1 3 0 0 0 8 0
Solana
Beach
0 0 1 0 0 0 1 0
Vista 6 1 7 0 0 0 12 3
TOTAL 35 10 34 0 0 0 54 13
Metrics as of March 6, 2026.
Item 5
Connect Programs SGIP Funding
Member City Solar Plus Connect Battery Bonus Connect
Carlsbad $85,120 $198,000
Del Mar $26,032 $19,800
Escondido $398,748 $257,400
Oceanside $180,315 $379,788
San Marcos $89,877 $198,000
Solana Beach $25,426 $39,600
Vista $164,972 $271,596
TOTAL $970,490 $1,112,196
24 Metrics as of March 6, 2026.
Item 5
PeakSmart Savers Participants
Member City PeakSmart Savers
Participants
Carlsbad 11
Del Mar 1
Escondido 6
Oceanside 16
San Marcos 2
Solana Beach 0
Vista 14
TOTAL 50
25 Metrics as of March 6, 2026.
Item 3
Recruitment Update
• Account Services & Data Specialist/Analyst
• Conditional Offer Accepted – Start Date May 19, 2026
• Energy Contracts & Compliance Specialist/Analyst
• Conditional Offer Accepted – Start Date June 1, 2026
• Programs Specialist/Analyst
• Conditional Offer Accepted – Start Date May 19, 2026
• Regulatory & Legislative Affairs Analyst
• Final Offer Letter Sent – Start Date May 19, 2026
• Senior Financial Analyst/Finance Manager
• Final Offer Letter Sent – Start Date May 19, 2026
26 Item 5
Diablo Canyon Nuclear Power Plant
27 • CalCCA organized a tour of
the Diablo Canyon Power
Plant on March 6th
• The Plant is the single largest
power station in California
• Supplies approximately 9% of
the State’s total electricity
and 17% of zero-carbon
electricity
• Was scheduled to
discontinue operations in
2025, now extended into
2030.
CEA 5-Year Anniversary
• Impact Report
• Preparing a high-level report filled with key statistics, achievements, and results over the past 5-years
• Presentation tentatively planned for the May Board meeting • In-Person Celebration
• Tentatively planned for Thursday, May 28, 2026, immediately following the Board Meeting
• To be held at Agua Hedionda Lagoon Discovery Campus in Carlsbad
• With a short program, networking, and Green Impact
Champion recognition
28 Item 5
Questions/Discussion – Item 5
29 Item 6: Consider Approving the
FY 2025/26 – 2030/31 Clean
Energy Alliance Energy Programs
Plan
30 Introduction & Purpose of the Plan
• CEA Strategic Plan third guiding principle:
• Provide Beneficial Customer Programs –
Offer a variety of programs that serve the
needs of our customers, promote
affordability and further reduce greenhouse
gas emissions.
• Develop a general framework for
implementation of programs that support
CEA’s mission and align with the
organization’s strategic goals.
31 Item 6
Community Engagement Overview
• Plan incorporates
community input
gathered through:
• Results from community
needs survey
• Input from community
workshops
• Perspectives from member
cities
32 Item 6
Community Needs Survey
• Partnership with True North Research on a
scientific survey conducted in April 2025.
• Targeted a random sample of residential
and commercial customers.
• Surveyed participants on customer
awareness, opinions, priorities and
behaviors related to energy issues,
initiatives and programs.
• An overview of key findings was presented
to the Board on April 24, 2025
33 Item 6
Community Workshops • Community engagement
partnership with Universidad
Popular, a trusted grassroots
organization in North County
San Diego.
• Hosted seven workshops
across CEA’s service area,
engaging participants in
English and Spanish in open
discussions focused on
energy topics.
34 Item 6
Community Workshops Cont.
35 Item 6
Community Workshops Cont.
36 • Guided Discussion Topics
• Understanding customer
priorities
• Identifying energy-related
issues and barriers
• Understanding energy usage
and decision-making
• Exploring past and future
energy improvements
• Gauging awareness of CEA
programs
Item 6
Community Workshops Cont.
37 • Key Insights
• Affordability emerged as the leading priority among participants across all cities.
• Participants identified several barriers to energy improvements, including tenancy status, high energy costs, outdated appliances, insufficient financial resources, unfamiliarity with available programs and technologies, and limited knowledge about innovation.
• Few individuals are familiar with the details of their energy bills, and even fewer actively monitor their energy consumption.
• Workshop participants consistently prioritized energy-focused initiatives, including upgrading to LED lighting, installing solar panels, and improving insulation.
• Workshop participants reported limited or no awareness of CEA prior to attending the presentation.
Item 6
Member City Insights
• Review of each member city’s Climate Action Plan.
• Survey of staff contacts at member cities to further understand city-specific priorities.
• CAC feedback throughout the process.
38 Item 6
Service Area Analysis
• Gathered insights on
customer demographics
using U.S. Census
Bureau data.
• Analyzed internal
customer data to
understand customer
profile and energy use
patterns.
39 77%
87%
77% 80%
70%
84% 81%
23%
13%
23% 20%
30%
16% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carlsbad Del Mar Escondido Oceanside San Marcos Solana
Beach
Vista
Percentage of Solar Customers by Member City
Non-Solar Customers Solar Customers
Item 6
Recommended Program Portfolio
40 Clean Energy Supply & Grid Resilience
Building Electrification & Energy Efficiency
Transportation Electrification
Local Workforce and Community Education
Program Pillars
Item 6
Business Case Analysis
41 Item 6
Pillar 1: Clean Energy Supply & Grid Resilience
42 Program Initiative Timing Description Target
Residential Behind-the-Meter Solar & Battery
Storage/Battery Storage Only
Ongoing
Provide access to rooftop solar and storage or battery-only systems.
Residential single family
Commercial Behind-the-Meter Solar & Battery
Storage/Battery Storage Only
Near-Term
Provide access to rooftop solar and storage or battery-only systems.
Commercial businesses
and critical facilities
Community Resilience Hubs Long-Term
Collaborate with member cities and school districts to equip municipal facilities with behind-the-meter solar and storage to support resiliency.
Public agencies
Demand Response Near-Term
Expand PeakSmart Savers program to commercial customers and support compliance with Load Management Standards.
Commercial customers
Load Flexibility + Virtual
Power Plant
Mid-Term
Incentives for customers to shift load and aggregate
distributed energy resources (DERs) into a Virtual Power Plant for grid support.
Residential and commercial
customers
Discounted Green Impact
Rate for Income-Qualified
Customers
Long-Term
Design a discounted rate for income-eligible customers to participate in 100% renewable energy.
Low-income customers
Item 6
Pillar 2: Building Electrification & Energy Efficiency
43 Program Initiative Timing Description Target
Electrification
Incentives
Mid-Term
Incentives for switching from gas to high-efficiency electric heat pumps, water heaters, induction cooktops, etc.
Residential income-qualified customers
Energy Efficiency Kits Near-Term
Free or low-cost kits filled with simple
equipment for self-service energy efficiency
upgrades.
Income-qualified
and/or residential
Refrigeration
Efficiency
Near-Term
Support energy-efficient refrigeration upgrades
to reduce energy costs.
Small commercial
Building
Electrification
Navigator
Mid-Term
Technical assistance for medium-sized
businesses and public agencies, including
energy assessments.
Medium commercial
Item 6
Pillar 3: Transportation Electrification
44 Program Initiative Timing Description Target
EV Charger Rebate Mid-Term
Rebates for smart Level 2 chargers
integrated with time-of-use optimization.
Residential
customers
Multi-Unit Dwelling
(MUD) Charging
Long-Term
Support turnkey solutions for multi-family
buildings lacking EV infrastructure.
Renters
EV Managed Charging
and
Virtual Power Plant
Mid-Term
Leverage advanced technology to integrate
EV’s into CEA’s VPP and incentive charging
to maximize savings and renewable energy.
EV owners
Municipal & Fleet
Electrification
Partnerships
Long-Term
Vehicle fleet advisory services and/or
incentives for member cities, school
districts and public agencies.
Public agencies
Item 6
Pillar 4: Local Workforce & Community Education
45 Program Initiative Timing Description Target
Clean Energy Equity
Fund
Long-term
Establish dedicated funding for grants
supporting income-qualified programs,
financing pilots and community-led clean
energy projects.
Low-income customers, non-profits, community partners
Workforce Training &
Pre-Apprenticeship
Programs
Long-Term
Support workforce training programs,
including efforts by the California Energy
Commission’s Equitable Building
Decarbonization grant and the San Diego
Regional Energy Network.
Educational institutions
and community partners
Community Innovation
Grants
Long-Term
Annual competitive grants to pilot new
climate solutions and education
programs.
Non-profits and member
agencies
Energy Literacy and
Education Campaign
Ongoing
Multilingual, digital outreach and
workshops to engage hard-to-reach
communities.
Non-profits and community
partners
Item 6
Recommendation
• That the Clean Energy Alliance (CEA) Board of Directors (Board) adopt Resolution No. 2026-017 approving the FY
2025/26 – 2030/31 Clean Energy Alliance Energy Programs Plan.
46 Item 6
Questions/Discussion – Item 6
47 Item 7: Public Hearing to Consider
Adoption Expanding the Super Off-Peak
Time-of-Use Period, Establishing a
Medium Commercial Class and Large
Commercial & Industrial Class and Rate
Schedules
48 2024 General Rate Case (GRC) Phase 2
• March 2nd 2026, SDG&E filed Advice Letter 4791-E which goes into effect April 1st, 2026.
• Super off-peak expansion
• Super off-peak hours extending from 10AM-2PM year-round instead of only March/April
• Estimated Fiscal Impact: ~$6.4 million in decreased revenue. • Split of Medium/Large Commercial class
• Medium Commercial class will include customers with demand between 20kW and 200kW
• Includes new rate schedules and tariffs
• Fiscal Impact: None.
• Proposed changes in PCIA rates from the January 1, 2026 PCIA update • Including a ~33% decrease for small commercial customers 49 Item 7
Current Time-of-Use Schedule
50 Item 7
• On-peak hours (4 p.m. to 9 p.m.)
are typically the most expensive
for electricity use
• Super off-peak from 10 a.m. to 2
p.m. only offered in March/April
• Time-of-use encourages
customers to shift energy load to
off-peak and super off-peak
hours (price signaling)
Super Off-Peak Expansion
51 Item 7
Proposed Schedule
Expands Super Off-Peak period
from 10 a.m. to 2 p.m. year-round.
Customer Benefits:
• Low cost, high-renewable-energy hours midday
• Ease of customer billing
between CEA and SDG&E
• Customers can shift energy
consumption habits year-round
Medium/Large Commercial Customer Class Split
52 Item 7
Previously combined into one customer class, Medium/Large Commercial & Industrial will be split based on the following qualifications:
• Medium Commercial: 20kW to less than 200kW demand
• Large Commercial & Industrial: 200kW or higher demand Customer Benefits:
• Ease of billing between CEA and SDG&E for commercial customers • No impact to tariff, rate per kWh is remaining.
Example rate name changes:
Previous CEA Rate New CEA Medium Com. Rate New CEA Large C&I Rate
AL-TOU-S AL-TOU-M-S AL-TOU-L-S
DG-R-S DG-R-M-S DG-R-L-S
PCIA Rate Impact 4/1/2026
53 Customer Class
Carlsbad, Del Mar,
Solana Beach,
Oceanside, Vista & SDGE
Escondido, San Marcos
Residential 0% -16%
Small Commercial -33% -46%
Medium/Large Commercial 11% -17%
Agriculture -8% -21%
Lighting 0% -20%
Proposed percent change in PCIA Vintage compared to rates effective January 1, 2025. • Staff is reviewing the proposed PCIA rates and will return to the Board with the overall impact on the adopted Rate Relief Credit.
Item 7
Recommendation
• That the Clean Energy Alliance (CEA) Board of Directors (Board) adopt Resolution No. 2026-018 approving the Expansion of the Super Off-Peak Time-of Use Period; and Establish a Medium Commercial and Large Commercial & Industrial Customer Class and Rate Schedules
54 Item 7
Questions/Discussion – Item 7
55 Item 8: Regulatory Update
56 Clean Energy Alliance: Regulatory Update
Tim Lindl – Keyes & Fox LLP
March 26, 2026
Item 8
Overview
● Power Charge Indifference Adjustment (PCIA)
Rulemaking (R.25-02-005)
● Commission Staff Report on Resource Adequacy (RA)
Transactability (R.25-10-003)
● Commission Pausing the California Climate Credit
(D.26-03-013)
58 Item 8
59 PCIA Rulemaking
Track Scope Event Date
One RA MPB Methodology
Change Complete – D.25-06-049 June 27, 2025
Two Pre-2019 Banked REC
Valuation
Scoping Memo February 3, 2026
Opening/Reply Testimony March 2/23
Potential Staff Proposal By March 27
Evidentiary Hearing April 28
Briefing May-June
Decision (PD by July 31) September 3
Three Broad review of PCIA
methodology Comments on Pre-Scoping Ruling March 27
Item 8
60 Unique Feature of Renewable Energy Credits:
They Can be “Banked” for Later Use
IOU
2026
“Now I need some RECs to
serve my current bundled
customers, so I will use
those RECs I put into the
bank in 2015.”
2015
“I don’t need these RECs to
serve my bundled customers
now, so I will put them in
the bank. ”
Item 8
61 Track 2 Problem Statement
How to resolve
this lack of
indifference/cost
shift?
Customers later
leave bundled
service and
receive no
benefit when IOU
uses RECs
Bundled
customers pay for
banked RECs
prior to 2019
Item 8
62 CalCCA Proposals to Remedy Cost Shifts
When the RECs are used for bundled customer compliance:
● VALUE them at the current renewable portfolio standard market price benchmark (credit to the CEA’s PCIA obligations)
OR
● ALLOCATE the RECs to the customers that paid for them by reducing the amount of renewable energy CEA (or another LSE) would need to procure
Item 8
63 Resource Adequacy Transactability Report
● Allows CCAs and other LSEs to trade hourly RA obligations to improve affordability.
● Staff analysis acknowledges these potential benefits but concludes the benefits did not outweigh costs and risks. ● CalCCA and others pushed back in comments
● Next Step: Proposed Decision
Item 8
64 California Climate Credit (R.25-07-013)
● The California Climate Credit is the result of utility revenues from California’s cap-and-trade program.
● The 2026 credit in SDG&E’s service territory is $49.36. ● D.26-03-013 paused the April distribution of the credit while the Commission considers changes; a new credit for 2026 will still be distributed via a future Commission decision
Item 8
QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
65 Item 8
Questions/Discussion – Item 8
66 Item 9 – Closed Session
CONFERENCE WITH LEGAL COUNSEL-INITIATION OF
LITIGATION
Whether to initiate litigation pursuant to Government
Code Section 54956.9(d)(4) Number of Cases: 1
67