17. City of San José (San José Clean Energy) as Project Participant. Paragraph 14 shall not apply with respect to the City of San José as a Project Participant, if the City of San José, as administrator of San José Clean Energy (“SJCE”) is a Project Participant, but the following shall apply:
a) Designated Fund. The City of San José is a municipal corporation and is precluded under the California State Constitution and applicable law from entering into obligations that financially bind future governing bodies without an appropriation for such obligation, and, therefore, nothing in the Agreement shall constitute an obligation of future legislative bodies of the City to appropriate funds for purposes of the Agreement; provided, however, that the City of San José has created and set aside a designated fund (being the San Jose Energy Operating Fund established pursuant to City of San Jose Municipal Code, Title 4, Part 63, Section 4.80.4050 et. seq.) (“Designated Fund”) for payment of its obligations under this BLPTA. Subject to the requirements and limitations of applicable law and taking into account other available money specifically authorized by the San José City Council and allocated and appropriated to the SJCE’s obligations, SJCE agrees to establish rates and charges that are sufficient to maintain revenues in the Designated Fund necessary to pay its obligations under this BLPTA. b) Limited Obligations. SJCE’s payment obligations under this BLPTA are special limited obligations of the SJCE payable solely from the Designated Fund and are not a charge upon the revenues or general fund of the City of San José or upon any non- San José Clean Energy moneys or other property of the Community Energy Department or the City of San José.
APPROVAL DRAFT
678
Exhibit L - 11
c) Nondiscrimination/Non-Preference. In performing its obligations under this BLPTA, Seller shall not, and shall not cause or allow its subcontractors to, discriminate against or grant preferential treatment to any person on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity or national origin. This prohibition applies to recruiting, hiring, demotion, layoff, termination, compensation, fringe benefits, advancement, training, apprenticeship and other terms, conditions, or privileges of employment, subcontracting and purchasing. Seller will inform all subcontractors of these obligations. This prohibition is subject to the following conditions: (i) the prohibition is not intended to preclude Seller from providing a reasonable accommodation to a person with a disability; (ii) the City’s Compliance Officer may require Seller to file, and cause any Seller’s subcontractor to file, reports demonstrating compliance with this section. Any such reports shall be filed in the form and at such times as the City’s Compliance Officer designates. They shall contain such information, data and/or records as the City’s Compliance Officer determines is needed to show compliance with this provision.
d) Conflict of Interest. Seller represents that it is familiar with the local and state conflict of interest laws and agrees to comply with those laws in performing this BLPTA.
Seller certifies that, as of the Effective Date, it was unaware of any facts constituting a conflict of interest or creating an appearance of a conflict of interest. Seller shall avoid all conflicts of interest or appearances of conflicts of interest in performing this BLPTA. Seller has the obligation of determining if the manner in which it performs any part of this BLPTA results in a conflict of interest or an appearance of a conflict of interest and shall immediately notify SJCE in writing if it becomes aware of any facts giving rise to a conflict of interest or the appearance of a conflict of interest. Seller’s violation of this subsection (ii) is a material breach. e) Environmentally Preferable Procurement Policy. Seller shall perform its obligations under this BLPTA in conformance with San José City Council Policy 1-19, entitled “Prohibition of City Funding for Purchase of Single serving Bottled Water,” and San José City Council Policy 4-6, entitled “Environmentally Preferable Procurement Policy,” as those policies may be amended from time to time. The Parties acknowledge and agree that in no event shall a breach of this Section 13.1(g) be a material breach of this BLPTA or otherwise give rise to an Event of Default or entitle SJCE to terminate this BLPTA. f) Gifts Prohibited. Seller represents that it is familiar with Chapter 12.08 of the San José Municipal Code, which generally prohibits a City of San José officer or designated employee from accepting any gift. Seller shall not offer any City of San José officer or designated employee any gift prohibited by Chapter 12.08. Seller’s violation of this subsection (iv) is a material breach.
g) Disqualification of Former Employees. Seller represents that it is familiar with Chapter 12.10 of the San José Municipal Code, which generally prohibits a former City of San José officer and former designated employee from providing services to the City of San José connected with his/her former duties or official responsibilities. Seller shall not use either directly or indirectly any officer, employee or agent to perform any services if doing so would violate Chapter 12.10.
APPROVAL DRAFT
679
Exhibit L - 12
h) Effect on Payment Obligations. The Parties agree that, although breach of an obligation set forth in Sections 17(d) through 17(g) may result in Seller incurring liability for such breach, any such liability will be independent of Project Participant’s liability hereunder, and no breach of or default by Seller under Sections 17(c) through 17(h) will relieve Project Participant of its liability for its Liability Share of all Guaranteed Amounts, nor may any such breach or default, or claim of breach or default, be permitted or asserted as a defense to or offset against payment of any amounts owed by Project Participant to Seller hereunder.
IN WITNESS WHEREOF, the Parties have caused this BLPTA to be duly executed and delivered by their duly authorized representatives on the date first above written. [PROJECT PARTICIPANT]:
By:______________________________
Printed Name:__________________
Title:____________________________
CALIFORNIA COMMUNITY POWER, a
California joint powers authority:
By:______________________________
Printed Name:__________________
Title:____________________________
[SELLER]:
By:______________________________
Printed Name:__________________
Title:____________________________
APPROVAL DRAFT
680
Exhibit M - 1
EXHIBIT M
FORM OF REPLACEMENT RA NOTICE
This Replacement RA Notice (this “Notice”) is delivered by [SELLER ENTITY] (“Seller”) to California Community Power, a California joint powers authority (“Buyer”) in accordance with the terms of that certain Renewable Power Purchase Agreement dated __________ (“Agreement”) by and between Seller and Buyer. All capitalized terms used in this Notice but not otherwise defined herein shall have the respective meanings assigned to such terms in the Agreement.
Pursuant to Section 3.8(b) of the Agreement, Seller hereby provides the below Replacement RA product information:
Unit Information:
1 Name
Location
CAISO Resource ID
Unit SCID
Prorated Percentage of Unit Factor
Resource Type
Dispatchable (yes or no)
Point of Interconnection with CAISO Controlled
Grid (substation or transmission line)
Path 26 (North or South)
LCR Area (if any)
Flexible Capacity (MW) (if any)
Flexible Capacity category
Slice of Day category (if applicable)
Deliverability restrictions, if any, as described in
most recent CAISO deliverability assessment
Run Hour Restrictions
Delivery Period
Month Unit CAISO NQC (MW) Unit CAISO EFC (MW) Unit Contract Quantity (MW) January
February
March
April
May
June
July
August
September
October
November
December
1 To be repeated for each unit if more than one.
APPROVAL DRAFT
681
Exhibit M - 2
[SELLER ENTITY]
By:
Printed Name:
Title:
APPROVAL DRAFT
682
Exhibit N - 1
EXHIBIT N
NOTICES
Fish Lake Geothermal LLC, a Nevada
Limited Liability Company
(“Seller”)
California Community Power, a California
joint powers authority (“Buyer”)
All Notices:
Street: 3451 N. Triumph Blvd., Suite 201
City: Lehi, UT 84043
Attn: Brady Olson
Phone: 385-352-8858
Email: [email protected]
All Notices:
Street: 70 Garden Court, Suite 300
City: Monterey, CA 93940
Attn: Tim Haines
Phone: 916-207-4078
Email: [email protected]
Scheduling:
Attn: TBD
Phone: TBD
Email: TBD
Scheduling:
Attn: TBD
Phone: TBD
Email: TBD
Confirmations:
Attn: TBD
Phone: TBD
Email: TBD
Confirmations:
Attn: TBD
Phone: TBD
Email: TBD
Invoices:
Attn: Accounting
Phone: 385-352-8858
E-mail: [email protected]
Invoices:
Attn: TBD
Phone: TBD
E-mail: TBD
Payments:
Attn: Accounting
Phone: 385-352-8858
E-mail: [email protected]
Payments:
Attn: TBD
Phone: TBD
E-mail: TBD
Wire Transfer:
BNK:
ABA:
ACCT:
Wire Transfer:
BNK: TBD
ABA: TBD
ACCT: TBD
Reference Numbers:
Duns:
Federal Tax ID Number: 85-4266767
Reference Numbers:
Duns:
APPROVAL DRAFT
Federal Tax ID Number:
683
Exhibit O - 1
EXHIBIT O
OPERATIONAL CHARACTERISTICS
Each calendar month of the Delivery Term, Seller shall maintain minimum Adjusted Energy Production (“AEP”) during the hours of 4-9 p.m. PPT (HE17-HE21) in a quantity no less the following:
Month of Delivery Term Minimum AEP during HE17-
HE21 (in MWh)
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
APPROVAL DRAFT
684
Exhibit P - 1
EXHIBIT P
METERING DIAGRAM
APPROVAL DRAFT
685
Exhibit Q - 1
EXHIBIT Q
FORM OF CONSENT TO COLLATERAL ASSIGNMENT
This Consent to Collateral Assignment (this “Consent”) is entered into among (i) California Community Power, a California joint powers authority (“CCP”), (ii) [Name of Seller], a [Legal Status of Seller] (the “Project Company”), and (iii) [Name of Collateral Agent], a [Legal Status of Collateral Agent], as Collateral Agent for the secured parties under the Financing Documents referred to below (such secured parties together with their successors permitted under this Consent in such capacity, the “Secured Parties”, and, such agent, together with its successors in such capacity, the “Collateral Agent”). CCP, Project Company and Collateral Agent are hereinafter sometimes referred to individually as a “Party” and jointly as the “Parties”. Capitalized terms used but not otherwise defined in this Consent shall have the meanings ascribed to them in the PPA (as defined below).
RECITALS
The Parties enter into this Consent with reference to the following facts:
A. Project Company and CCP have entered into that certain Renewable Power Purchase Agreement, dated as of [Date] [List all amendments as contemplated by Section 3.4] (“PPA”), pursuant to which Project Company will develop, construct, commission, test and operate the geothermal energy facility (the “Project”) and sell the Product to CCP, and CCP will purchase the Product from Project Company;
B. As collateral for Project Company’s obligations under the PPA, Project Company has agreed to provide to CCP certain collateral, which may include Performance Security and Development Security and other collateral described in the PPA (collectively, the “PPA Collateral”);
C. Project Company has entered into that certain [Insert description of financing arrangements with Lender], dated as of [Date], among Project Company, the Lenders party thereto and the Collateral Agent (the “Financing Agreement”), pursuant to which, among other things, the Lenders have extended commitments to make loans to Project Company; D. As collateral security for Project Company’s obligations under the Financing Agreement and related agreements (collectively, the “Financing Documents”), Project Company has, among other things, assigned all of its right, title and interest in, to and under the PPA and Project Company’s owners have pledged their ownership interest in Project Company (collectively, the “Assigned Interest”) to the Collateral Agent pursuant to the Financing Documents; and
E. It is a requirement under the Financing Agreement and the PPA that CCP and the other Parties hereto shall have executed and delivered this Consent.
APPROVAL DRAFT
686
Exhibit Q - 2
AGREEMENT
In consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the Parties hereto hereby agree as follows:
SECTION 1. CONSENT TO ASSIGNMENT, ETC.
1.1 Consent and Agreement.
CCP hereby acknowledges:
(a) Notice of and consents to the assignment as collateral security to Collateral Agent, for the benefit of the Secured Parties, of the Assigned Interest; and (b) The right (but not the obligation) of Collateral Agent in the exercise of its rights and remedies under the Financing Documents, to make all demands, give all notices, take all actions and exercise all rights of Project Company permitted under the PPA (subject to CCP’s rights and defenses under the PPA and the terms of this Consent) and accepts any such exercise; provided, insofar as the Collateral Agent exercises any such rights under the PPA or makes any claims with respect to payments or other obligations under the PPA, the terms and conditions of the PPA applicable to such exercise of rights or claims shall apply to Collateral Agent to the same extent as to Project Company.
1.2 Project Company’s Acknowledgement.
Each of Project Company and Collateral Agent hereby acknowledges and agrees that CCP is authorized to act in accordance with Collateral Agent’s instructions, and that CCP shall bear no liability to Project Company or Collateral Agent in connection therewith, including any liability for failing to act in accordance with Project Company’s instructions.
1.3 Right to Cure.
If Project Company defaults in the performance of any of its obligations under the PPA, or upon the occurrence or non-occurrence of any event or condition under the PPA which would immediately or with the passage of any applicable grace period or the giving of notice, or both, enable CCP to terminate or suspend its performance under the PPA (a “PPA Default”), CCP will not terminate or suspend its performance under the PPA until it first gives written notice of such PPA Default to Collateral Agent and affords Collateral Agent the right to cure such PPA Default within the applicable cure period under the PPA, which cure period shall run concurrently with that afforded Project Company under the PPA. In addition, if Collateral Agent gives CCP written notice prior to the expiration of the applicable cure period under the PPA of Collateral Agent’s intention to cure such PPA Default (which notice shall include a reasonable description of the time during which it anticipates to cure such PPA Default) and is diligently proceeding to cure such PPA Default, notwithstanding the applicable cure period under the PPA, Collateral Agent shall have a period of sixty (60) days (or, if such PPA Default is for failure by the Project Company to pay an amount to CCP which is due and payable under the PPA other than to provide PPA Collateral, thirty (30) days, or, if such PPA Default is for failure by Project Company to provide
APPROVAL DRAFT
687
Exhibit Q - 3
PPA Collateral, ten (10) Business Days) from the later to occur of (i) Collateral Agent’s receipt of the notice of such PPA Default from CCP and (ii) the expiration of the cure periods available to the Project Company in the PPA to cure such PPA Default; provided, that (a) if possession of the Project is necessary to cure any such non-monetary PPA Default and Collateral Agent has commenced foreclosure proceedings within sixty (60) days from the later to occur of (i) Collateral Agent’s receipt of the notice of the PPA Default and (ii) the expiration of the cure periods available to the Project Company in the PPA and is diligently pursuing such foreclosure proceedings, Collateral Agent will be allowed a reasonable time, not to exceed one hundred eighty (180) days from the later to occur of (i) Collateral Agent’s receipt of the notice of the PPA Default and (ii) the expiration of the cure periods available to the Project Company in the PPA, to complete such proceedings and cure such PPA Default, and (b) if Collateral Agent is prohibited from curing any such PPA Default by any process, stay or injunction issued by any Governmental Authority or pursuant to any bankruptcy or insolvency proceeding or other similar proceeding involving Project Company, then the time periods specified herein for curing a PPA Default shall be extended for the period of such prohibition, so long as Collateral Agent has diligently pursued removal of such process, stay or injunction. Collateral Agent shall provide CCP with reports concerning the status of efforts to cure a PPA Default upon CCP’s reasonable request.
1.4 Substitute Owner.
Subject to Section 1.7, the Parties agree that if Collateral Agent notifies (such notice, a “Financing Document Default Notice”) CCP that an event of default has occurred and is continuing under the Financing Documents (a “Financing Document Event of Default”) then, upon a judicial foreclosure sale, non-judicial foreclosure sale, deed in lieu of foreclosure or other transfer following a Financing Document Event of Default, Collateral Agent (or its designee) shall be substituted for Project Company (the “Substitute Owner”) under the PPA, and, subject to Sections
1.7(b) and 1.7(c) below, CCP and Substitute Owner will recognize each other as counterparties under the PPA and will continue to perform their respective obligations (including those obligations accruing to CCP and the Project Company prior to the existence of the Substitute Owner) under the PPA in favor of each other in accordance with the terms thereof; provided, before CCP is required to recognize the Substitute Owner, the Substitute Owner must (i) be the Collateral Agent or a permitted assignee under the PPA or (ii) have financial qualifications and operating experience of [TBD] (a “Permitted Transferee”). For purposes of the foregoing, CCP shall be entitled to assume that any such purported exercise of rights by Collateral Agent that results in substitution of a Substitute Owner under the PPA is in accordance with the Financing Documents without independent investigation thereof but shall have the right to require that the Collateral Agent and its designee (if applicable) certify the same.
1.5 Replacement Agreements.
Subject to Section 1.7, if the PPA is terminated, rejected or otherwise invalidated as a result of any bankruptcy, insolvency, reorganization or similar proceeding affecting Project Company, its owner(s) or guarantor(s), and if Collateral Agent or its designee directly or indirectly takes possession of, or title to, the Project (including possession by a receiver or title by foreclosure or deed in lieu of foreclosure) (“Replacement Owner”), CCP shall, and Collateral Agent shall cause Replacement Owner to, enter into a new agreement with one another for the balance of the obligations under the PPA remaining to be performed having terms substantially the same as the
APPROVAL DRAFT
688
Exhibit Q - 4
terms of the PPA with respect to the remaining Term (“Replacement PPA”); provided, before CCP is required to enter into a Replacement PPA, the Replacement Owner shall satisfy the requirements of a Permitted Transferee. For purposes of the foregoing, CCP is entitled to assume that any such purported exercise of rights by Collateral Agent that results in a Replacement Owner is in accordance with the Financing Documents without independent investigation thereof but shall have the right to require that the Collateral Agent and its designee (if applicable) certify the same.
Notwithstanding the execution and delivery of a Replacement PPA, to the extent CCP is, or was otherwise prior to its termination as described in this Section 1.5, entitled under the PPA (subject to Section 1.3 hereof), CCP may suspend performance of its obligations under such Replacement PPA, unless and until all PPA Defaults of Project Company under the PPA or Replacement PPA have been cured (subject to Section 1.3 hereof).
1.6 Transfer.
Subject to Section 1.7, a Substitute Owner or a Replacement Owner may assign all of its interest in the Project and the PPA and a Replacement PPA to a natural person, corporation, trust, business trust, joint venture, joint stock company, association, company, limited liability company, partnership, Governmental Authority or other entity (a “Person”) to which the Project is transferred; provided, the proposed transferee shall be a Permitted Transferee.
1.7 Assumption of Obligations.
(a) Transferee.
Any transferee under Section 1.6 shall expressly assume in a writing all of the obligations of Project Company, Substitute Owner or Replacement Owner under the PPA or Replacement PPA, as applicable, including posting and collateral assignment of the PPA Collateral. Upon such assignment and the cure of any outstanding PPA Default except for any such defaults that are both personal to the transferor and not curable by the transferee, and payment of all other amounts due and payable to CCP in respect of the PPA or such Replacement PPA, the transferor shall be released from any further liability under the PPA or Replacement PPA, as applicable. (b) Substitute Owner.
Subject to Section 1.7(c), any Substitute Owner pursuant to Section 1.4 shall be required to perform Project Company’s obligations under the PPA, including posting and collateral assignment of the PPA Collateral; provided, the obligations of such Substitute Owner shall be no more than those of Project Company under the PPA.
(c) No Liability.
CCP acknowledges and agrees that neither Collateral Agent nor any Secured Party shall have any liability or obligation under the PPA as a result of this Consent (except to the extent Collateral Agent or a Secured Party is a Substitute Owner or Replacement Owner) nor shall Collateral Agent or any other Secured Party be obligated or required to (i) perform any of Project Company’s obligations under the PPA, except as provided in Sections 1.7(a) and 1.7(b) and to the extent Collateral Agent or a Secured Party is a Substitute Owner or Replacement Owner, or (ii) take any action to collect or enforce any claim for payment assigned under the Financing
APPROVAL DRAFT
689
Exhibit Q - 5
Documents. If Collateral Agent becomes a Substitute Owner pursuant to Section 1.4 or enters into a Replacement PPA, Collateral Agent shall not have any personal liability to CCP under the PPA or Replacement PPA and the sole recourse of CCP in seeking enforcement of such obligations against Collateral Agent shall be to the aggregate interest of the Secured Parties in the Project; provided, such limited recourse shall not limit CCP’s right to seek equitable or injunctive relief against Collateral Agent, or CCP’s rights with respect to any offset rights expressly allowed under the PPA, a Replacement PPA or the PPA Collateral.
1.8 Delivery of Notices.
CCP shall deliver to Collateral Agent, concurrently with the delivery thereof to Project Company, a copy of each notice, request or demand given by CCP to Project Company pursuant to the PPA relating to (a) a PPA Default by Project Company under the PPA, (b) any claim regarding Force Majeure by CCP under the PPA, (c) any notice of dispute under the PPA, (d) any notice of intent to terminate or any termination notice, and (e) any matter that would require the consent of Collateral Agent pursuant to Section 1.11 or any other provision of this Consent. Collateral Agent acknowledges that delivery of such notice, request and demand shall satisfy CCP’s obligation to give Collateral Agent a notice of PPA Default under Section 1.3. Collateral Agent shall deliver to CCP, concurrently with delivery thereof to Project Company, a copy of each notice, request or demand given by Collateral Agent to Project Company pursuant to the Financing Documents relating to any indebtedness of Project Company being declared immediately due and payable under the Financing Documents.
1.9 Confirmations.
CCP will, as and when reasonably requested by Collateral Agent from time to time, confirm in writing matters relating to the PPA (including the performance of same by Project Company); provided, such confirmation may be limited to matters of which CCP is aware as of the time the confirmation is given and such confirmations shall be without prejudice to any rights of CCP under the PPA as between CCP and Project Company.
1.10 Exclusivity of Dealings.
Except as provided in Sections 1.3, 1.4, 1.5, 1.8, 1.9, 1.11 and 2.1, unless and until CCP receives a Financing Document Default Notice, CCP shall deal exclusively with Project Company in connection with the performance of CCP’s obligations under the PPA. From and after such time as CCP receives a Financing Document Default Notice and until a Substitute Owner is substituted for Project Company pursuant to Section 1.4, a Replacement PPA is entered into or the PPA is transferred to a Person to whom the Project is transferred pursuant to Section 1.6, CCP shall, until Collateral Agent confirms to CCP in writing that all obligations under the Financing Documents are no longer outstanding, deal exclusively with Collateral Agent in connection with the performance of CCP’s obligations under the PPA, and CCP may irrevocably rely on instructions provided by Collateral Agent in accordance therewith to the exclusion of those provided by any other Person.
APPROVAL DRAFT
690
Exhibit Q - 6
1.11 No Amendments.
To the extent permitted by Laws, CCP agrees that it will not, without the Project Company obtaining prior written consent of Collateral Agent (not to be unreasonably withheld, delayed or conditioned) (a) enter into any material supplement, restatement, novation, extension, amendment or modification of the PPA (b) terminate or suspend its performance under the PPA (except in accordance with Section 1.3) or (c) consent to or accept any termination or cancellation of the PPA by Project Company.
SECTION 2. PAYMENTS UNDER THE PPA
2.1 Payments.
Unless and until CCP receives written notice to the contrary from Collateral Agent, CCP will make all payments to be made by it to Project Company under or by reason of the PPA directly to Project Company at the following account: [___________] or, to such other Person or at such other address or account as Collateral Agent may from time to time specify in writing to CCP. CCP, Project Company, and Collateral Agent acknowledge that CCP will be deemed to be in compliance with the payment terms of the PPA to the extent that CCP makes payments in accordance with Collateral Agent’s instructions.
2.2 No Offset, Etc.
All payments required to be made by CCP under the PPA shall be made without any offset, recoupment, abatement, withholding, reduction or defense whatsoever, other than that expressly allowed by the terms of the PPA.
SECTION 3. REPRESENTATIONS AND WARRANTIES OF CCP
CCP makes the following representations and warranties as of the date hereof in favor of Collateral Agent:
3.1 Organization.
CCP is a joint powers authority and community choice aggregator duly organized and validly existing under the laws of the State of California, and the rules, regulations and orders of the California Public Utilities Commission, and is qualified to conduct business in each jurisdiction of the Joint Powers Agreement members. CCP has all requisite power and authority, corporate and otherwise, to enter into and to perform its obligations hereunder and under the PPA, and to carry out the terms hereof and thereof and the transactions contemplated hereby and thereby.
3.2 Authorization.
The execution, delivery and performance by CCP of this Consent and the PPA have been duly authorized by all necessary corporate or other action on the part of CCP and do not require any approval or consent of any holder (or any trustee for any holder) of any indebtedness or other obligation of CCP which, if not obtained, will prevent CCP from performing its obligations
APPROVAL DRAFT
691
Exhibit Q - 7
hereunder or under the PPA except approvals or consents which have previously been obtained and which are in full force and effect.
3.3 Execution and Delivery; Binding Agreements.
Each of this Consent and the PPA is in full force and effect, have been duly executed and delivered on behalf of CCP by the appropriate officers of CCP, and constitutes the legal, valid and binding obligation of CCP, enforceable against CCP in accordance with its terms, except as the enforceability thereof may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws of general application affecting the enforcement of creditors’ rights generally and (b) general equitable principles (whether considered in a proceeding in equity or at law).
3.4 No Default or Amendment.
Except as set forth in Schedule A attached hereto: (a) neither CCP nor, to CCP’s actual knowledge, Project Company, is in default of any of its obligations under the PPA; (b) CCP and, to CCP’s actual knowledge, Project Company, has complied with all conditions precedent to the effectiveness of its obligations under the PPA; (c) to CCP’s actual knowledge, no event or condition exists which would either immediately or with the passage of any applicable grace period or giving of notice, or both, enable either CCP or Project Company to terminate or suspend its obligations under the PPA; and (d) the PPA has not been amended, modified or supplemented in any manner except as set forth herein and in the recitals hereto.
3.5 No Previous Assignments.
CCP has no notice of, and has not consented to, any previous assignment by Project Company of all or any part of its rights under the PPA.
SECTION 4. REPRESENTATIONS AND WARRANTIES OF PROJECT COMPANY Project Company makes the following representations and warranties as of the date hereof in favor of the Collateral Agent and CCP:
4.1 Organization.
Project Company is a [Legal Status of Seller] duly organized and validly existing under the laws of the state of its organization, and is duly qualified, authorized to do business and in good standing in every jurisdiction in which it owns or leases real property or in which the nature of its business requires it to be so qualified, except where the failure to so qualify would not have a material adverse effect on its financial condition, its ability to own its properties or its ability to transact its business. Project Company has all requisite power and authority, corporate and otherwise, to enter into and to perform its obligations hereunder and under the PPA, and to carry out the terms hereof and thereof and the transactions contemplated hereby and thereby.
4.2 Authorization.
The execution, delivery and performance of this Consent by Project Company, and Project Company’s assignment of its right, title and interest in, to and under the PPA to the Collateral
APPROVAL DRAFT
692
Exhibit Q - 8
Agent pursuant to the Financing Documents, have been duly authorized by all necessary corporate or other action on the part of Project Company.
4.3 Execution and Delivery; Binding Agreement.
This Consent is in full force and effect, has been duly executed and delivered on behalf of Project Company by the appropriate officers of Project Company, and constitutes the legal, valid and binding obligation of Project Company, enforceable against Project Company in accordance with its terms, except as the enforceability thereof may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws of general application affecting the enforcement of creditors’ rights generally and (b) general equitable principles (whether considered in a proceeding in equity or at law).
4.4 No Default or Amendment.
Except as set forth in Schedule B attached hereto: (a) neither Project Company nor, to Project Company’s actual knowledge, CCP, is in default of any of its obligations thereunder; (b) Project Company and, to Project Company’s actual knowledge, CCP, has complied with all conditions precedent to the effectiveness of its obligations under the PPA; (c) to Project Company’s actual knowledge, no event or condition exists which would either immediately or with the passage of any applicable grace period or giving of notice, or both, enable either CCP or Project Company to terminate or suspend its obligations under the PPA; and (d) the PPA has not been amended, modified or supplemented in any manner except as set forth herein and in the recitals hereto.
4.5 No Previous Assignments.
Project Company has not previously assigned all or any part of its rights under the PPA.
SECTION 5. REPRESENTATIONS AND WARRANTIES OF COLLATERAL AGENT Collateral Agent makes the following representations and warranties as of the date hereof in favor of CCP and Project Company:
5.1 Authorization.
The execution, delivery and performance of this Consent by Collateral Agent have been duly authorized by all necessary corporate or other action on the part of Collateral Agent.
5.2 Execution and Delivery; Binding Agreement.
This Consent is in full force and effect, has been duly executed and delivered on behalf of Collateral Agent by the appropriate officers of Collateral Agent, and constitutes the legal, valid and binding obligation of Collateral Agent as Collateral Agent for the Secured Parties, enforceable against Collateral Agent in accordance with its terms, except as the enforceability thereof may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws of general application affecting the enforcement of creditors’ rights generally and (b) general equitable principles (whether considered in a proceeding in equity or at law).
APPROVAL DRAFT
693
Exhibit Q - 9
SECTION 6. MISCELLANEOUS
6.1 Notices.
All notices and other communications hereunder shall be in writing, shall be deemed given upon receipt thereof by the Party or Parties to whom such notice is addressed, shall refer on their face to the PPA (although failure to so refer shall not render any such notice or communication ineffective), shall be sent by first class mail, by personal delivery or by a nationally recognized courier service, and shall be directed (a) if to CCP or Project Company, in accordance with [Notice Section of the PPA] of the PPA, (b) if to Collateral Agent, to [Collateral Agent Name], [Collateral Agent Address], Attn: [Collateral Agent Contact Information], Telephone: [___], Fax: [___], and (c) to such other address or addressee as any such Party may designate by notice given pursuant hereto.
6.2 Governing Law; Submission to Jurisdiction.
(a) THIS CONSENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND
THIS CONSENT AND ALL MATTERS ARISING OUT OF THIS CONSENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, THE LAW OF
THE STATE OF CALIFORNIA WITHOUT REGARD TO ANY CONFLICTS OF LAWS
PROVISIONS THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION.
(b) All disputes, claims or controversies arising out of, relating to, concerning or pertaining to the terms of this Consent shall be governed by the dispute resolution provisions of the PPA. Subject to the foregoing, any legal action or proceeding with respect to this Consent and any action for enforcement of any judgment in respect thereof may be brought in the courts of the State of California or of the United States of America for the Central District of California, and, by execution and delivery of this Consent, each Party hereby accepts for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts and appellate courts from any appeal thereof. Each Party further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to its notice address provided pursuant to Section 6.1 hereof. Each Party hereby irrevocably waives any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Consent brought in the courts referred to above and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. Nothing herein shall affect the right of any Party to serve process in any other manner permitted by law.
6.3 Headings Descriptive.
The headings of the several sections and subsections of this Consent are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Consent.
APPROVAL DRAFT
694
Exhibit Q - 10
6.4 Severability.
In case any provision in or obligation under this Consent shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
6.5 Amendment, Waiver.
Neither this Consent nor any of the terms hereof may be (a) terminated, amended, supplemented or modified, except by an instrument in writing signed by CCP, Project Company and Collateral Agent or (b) waived, except by an instrument in writing signed by the waiving Party.
6.6 Termination.
Each Party’s obligations hereunder are absolute and unconditional, and no Party has any right, and shall have no right, to terminate this Consent or to be released, relieved or discharged from any obligation or liability hereunder until CCP has been notified by Collateral Agent that all of the obligations under the Financing Documents shall have been satisfied in full (other than contingent indemnification obligations) or, with respect to the PPA or any Replacement PPA, its obligations under such PPA or Replacement PPA have been fully performed.
6.7 Successors and Assigns.
This Consent shall be binding upon each Party and its successors and assigns permitted under and in accordance with this Consent, and shall inure to the benefit of the other Parties and their respective successors and assigns permitted under and in accordance with this Consent. Each reference to a Person herein shall include such Person’s successors and assigns permitted under and in accordance with this Consent.
6.8 Further Assurances.
CCP hereby agrees to execute and deliver all such instruments and take all such action as may be necessary to effectuate fully the purposes of this Consent.
6.9 Waiver of Trial by Jury.
TO THE EXTENT PERMITTED BY APPLICABLE LAWS, THE PARTIES HEREBY
IRREVOCABLY WAIVE ALL RIGHT OF TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS CONSENT OR ANY MATTER ARISING HEREUNDER. EACH PARTY FURTHER
WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
APPROVAL DRAFT
695
Exhibit Q - 11
6.10 Entire Agreement.
This Consent and any agreement, document or instrument attached hereto or referred to herein integrate all the terms and conditions mentioned herein or incidental hereto and supersede all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between the terms, conditions and provisions of this Consent and any such agreement, document or instrument, the terms, conditions and provisions of this Consent shall prevail.
6.11 Effective Date.
This Consent shall be deemed effective as of the date upon which the last Party executes this Consent.
6.12 Counterparts; Electronic Signatures.
This Consent may be executed in one or more counterparts, each of which will be deemed to be an original of this Consent and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Consent and of signature pages by facsimile transmission, Portable Document Format (i.e., PDF), or by other electronic means shall constitute effective execution and delivery of this Consent as to the Parties and may be used in lieu of the original Consent for all purposes.
[Remainder of Page Left Intentionally Blank.]
APPROVAL DRAFT
696
Exhibit Q - 12
IN WITNESS WHEREOF, the Parties hereto have caused this Consent to be duly executed and delivered by their duly authorized officers on the dates indicated below their respective signatures. [NAME OF PROJECT COMPANY],
[Legal Status of Project Company].
CALIFORNIA COMMUNITY POWER,
a California joint powers authority.
By:
___________________________________
[Name]
[Title]
Date: ___________________________
By:
___________________________________
[Name]
[Title]
Date: ___________________________
[NAME OF COLLATERAL AGENT],
[Legal Status of Collateral Agent].
By:
________________________________
[Name]
[Title]
Date: ___________________________
APPROVAL DRAFT
697
Exhibit Q - 13
SCHEDULE A
[Describe any disclosures relevant to representations and warranties made in Section 3.4]
APPROVAL DRAFT
698
Exhibit R - 1
EXHIBIT R
[RESERVED]
APPROVAL DRAFT
699
Exhibit S - 1
EXHIBIT S
PROJECT PARTICIPANTS AND LIABILITY SHARES
Project Participant Liability Share
Central Coast
Community Energy
18.6%
CleanPowerSF 14.5%
Peninsula Clean
Energy
17.8%
Redwood Coast Energy
Authority
2.8%
City of San José, as
administrator of San
José Clean Energy
17.4%
Silicon Valley Clean
Energy
14.0%
Sonoma Clean Power
Authority
11.7%
Valley Clean Energy 3.2%
APPROVAL DRAFT
700
1 PENINSULA CLEAN ENERGY AUTHORITY
Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: KJ Janowski, Director of Marketing and Community Relations SUBJECT: Summary of Findings from Annual Awareness/Perception Research BACKGROUND:
Peninsula Clean Energy fielded a research study in May 2022 and final results were received in July 2022. The impetus for the research was to gain insights that will improve both the development of community programs and the messaging that calls residents to action.
The specific objectives of the research were to assess awareness and perception of San Mateo County and Los Banos residents regarding:
• Peninsula Clean Energy brand, including variances between San Mateo County and Los Banos residents
• Establish benchmark metrics for residents of Los Banos • Benefits, obstacles to adoption, and purchase interest in electric vehicles (EVs) This memo provides a summary of key findings and implications.
DISCUSSION:
Approach
The research study was designed and conducted by Hiner & Partners, Inc. A letter invitation from the County of San Mateo Office of Sustainability (OOS) was mailed to a random sample of 27,000 San Mateo County residents. A similar letter invitation from the City of Los Banos was mailed to a random sample of 14,092 Los Banos customers. This sample included customers and non-customers of Peninsula Clean Energy. The letter, printed in English and Spanish, invited recipients to respond to a self-administered online survey offered in English and Spanish. (Only 6 respondents chose to take the survey in Spanish, 3 in San Mateo County and 3 in Los Banos.) Letter recipients were offered an incentive for two winners of $500 and 20 prizes of $100 each. The response rate to the invitation was 7.2% (7.3% response in San Mateo County and 7.1% in Los Banos). Participants were offered the opportunity to complete the 701
2 survey over the phone and 2 of them chose to do so. The online survey took an average of 24 minutes to complete. Surveys were completed between May 6 and May 30, 2022.
The final sample was normalized to better reflect the population characteristics of the two geographies (San Mateo County and Los Banos). Non-customers were sampled down to reflect their proportion in the general population. Weights were applied to reflect census demographics for each geography’s ethnicity proportions and the sample was randomly reduced to achieve the known proportion of EVs in San Mateo County (11%) and in Los Banos (3%) based on California Department of Motor Vehicles registration data. This resulted in a final, normalized sample size of 2,264. The margin of error for the (unweighted) San Mateo sample of 1,972 at the 95% confidence level is +/- 2.2% and for the (unweighted) Los Banos sample of 1,004 at the 95% confidence level is +/- 3.1%. Up arrows in green and down arrows in red indicate statistically significant differences between data points.
Throughout this report, the sample size for each chart is indicated by “N=.” For example, N=500 would indicate that 500 respondents answered a particular question. Where samples for each geography are noted, they are in the format of “San Mateo County sample / Los Banos sample.” San Mateo County Participant Profile
The normalized participant profiles generally align with Census data for San Mateo County.
Survey Sample – San Mateo County
Self Identified Race 2020 2021 2022 Census**
White 37% 37% 37% 39%
Asian / Pacific Islander 30% 29% 29% 31%
Hispanic 24% 25% 25% 24%
Other 9% 9% 8% 6%
Age 2020 2021 2022 Census*
18 – 34 19% 17% 15%
83.4%
35 – 44 19% 26% 20%
45 – 54 21% 19% 20%
55 – 64 21% 17% 20%
65+ 19% 21% 24% 16.6%
702
3 Income 2020 2021 2022 Income Census*
Less than $50K 13% 13% 9%
Below
$128,091 $50K to less than $100K 20% 19% 18% 50%
$100K to less than $150K 17% 15% 28%
$150K to less than $250K 20% 21% 26% Above
$128,091
50%
$250K+ 18% 17% 22%
* Source: US Census Bureau
A substantial number of apartment and condo dwellers responded to the survey.
Survey Sample – San Mateo County
Dwelling Type 2020 2021 2022
Detached Single Family Home 54% 57% 61%
Unit in a Larger Building
(Duplex, Apt, Condo) 41% 40% 34%
Accessory Dwelling
(Granny flat, in-law unit) 1% 1% 1%
Other 2% 1% 2%
Los Banos Participant Profile
The normalized participant profile generally aligns with the Census data for Los Banos.
Survey Sample – Los
Banos
Self Identified Race 2022 Census**
White 18% 20%
Asian / Pacific Islander 2% 3%
Hispanic 70% 71%
Other 9% 6%
703
4 Age 2022 Census*
18 – 34 19%
89.7%
35 – 44 26%
45 – 54 36%
55 – 64 18%
65+ 17% 10.3%
Home Ownership 2022 Census*
Owner 67% 57.3%
Renter 31% 42.7%
Home Ownership 2022 Census*
Owner 67% 57.3%
Renter 31% 42.7%
* Source: US Census Bureau
The vast majority of Los Banos participants were dwellers in single family homes, reflecting the preponderance of dwelling types in that jurisdiction.
Dwelling Type
2022
Los Banos
Detached Single Family Home 84%
Unit in a Larger Building
(Duplex, Apt, Condo) 7%
Accessory Dwelling
(Granny flat, in-law unit) 1%
Other 2%
Brand Awareness and Perception
41% of San Mateo County respondents were aware that Peninsula Clean Energy is an energy provider from whom they can purchase electricity for their home. This “total awareness” (aided plus unaided) represented a statistically significant increase from the 31% captured in the 2021 survey. Unaided awareness (Peninsula Clean Energy listed by respondent, without prompting, as an energy provider) was 14%, a slight but statistically insignificant increase from the 2021 survey.
704
5 Of the San Mateo County respondents who are aware of Peninsula Clean Energy, 54% had a favorable perception (and 38% were not sure). This compares favorably to the 49% favorability rating for PG&E among those who are aware of PG&E. Respondents who are 55 and older, White, homeowners living in single family dwellings are more likely than other groups to be aware of Peninsula Clean Energy and to have a more favorable view. 14% of Los Banos respondents were aware that Peninsula Clean Energy is an energy provider from whom they can purchase electricity for their home. Unaided awareness was measured at 6%, which compares favorably to the unaided awareness in San Mateo County in 2017, which was measured at 3% at that point in time.
Of the Los Banos respondents who are aware of Peninsula Clean Energy, 30% had a favorable perception (and 57% were not sure). Los Banos residents have a more favorable perception of PG&E (66% favorable) than is the case for San Mateo County residents. This is likely a reflection of a lack of familiarity.
The messages Peninsula Clean Energy intends to convey to residents are registering among those who are aware of the agency. The graphs below compare the ratings of San Mateo County residents with those of Los Banos residents. Performance in San Mateo County has remained consistent with the previous two annual surveys. Note that the arrows indicate significant differences between San Mateo County and Los Banos at the 95% confidence level.
Perceptions of Los Banos residents align with those of San Mateo County residents except regarding the “non-profit agency” and “charges lower rates than PG&E.” The latter perception reflects our emphasis on this message in our Los Banos enrollment communications.
Question: For each statement, please indicate if you think it is true or false about Peninsula Clean Energy.
Base: Aware of Peninsula Clean Energy, N = 535 / 121
705
6 Note that a substantial portion of respondents are “not sure” about these attributes.
Persuasion Monitor™
The concept of Persuasion Monitor deconstructs the stages of persuasion to look at where improvements are needed. These are a type of “funnel metrics” in which each subsequent stage of the funnel is dependent on the preceding stage. So, customers typically become aware before they are familiar and usually register favorability after familiarity, etc.
Looking at the differences between each stage of these metrics helps identify where our messaging and marketing is on track and can indicate where improvements could be made. So, for example, a large cliff dropping off from awareness to familiarity would indicate that our messages are not resonating with the residents. Similarly, a large dropoff between familiar and favorable, would indicate that customers may not trust or believe the claims we are making or are judging us unfavorably. Peninsula Clean Energy’s persuasion metrics do not exhibit such dramatic declines from stage to stage. This would indicate that our messaging is on track but that our reach is not broad enough or frequent enough to generate the awareness that we are seeking (strategic target of 60% by 2025).
Persuasion monitor questions 1-6 covering awareness, rankings of familiarity, favorability, consideration and whether currently using. Base: Total Sample (N = 1326 / 938)
Arrows indicate statistically significant difference between San Mateo County and Los Banos at the 95% confidence level.
706
7 Resident Priorities
When asked about the top three advantages of importance for an electricity provider, nearly half of San Mateo County respondents and 60% of Los Banos respondents choose “lower electric rates” as the top priority. In San Mateo County, the rank order of priorities is quite similar to previous years with one exception. The importance of “programs that promote electric vehicles” was chosen as 1, 2 or 3 in importance by 24% of respondents compared to 14% and 17% in 2020 and 2021, respectively. A substantial portion of respondents from both geographies rate “offers solar + storage solutions to provide electricity during power shutoffs” in the top 3 important priorities.
Question: If a provider of electricity to your home could offer all the advantages listed below, which three would be most important to you?
Base: Total Sample, N = 1326 / 938
Arrows indicate statistically significant difference between San Mateo County and Los Banos at the 95% confidence level.
Electric Vehicle Awareness and Perceptions
In San Mateo County the persuasion monitor for electric vehicle (EV) adoption shows strong momentum, with significant increases in favorability and consideration. This mirrors the increase in the priority rating for “programs that promote EVs” noted above. Low familiarity alongside the high awareness indicates a need for more substance in communications, such as range/price/operating cost details to overcome barriers. [memo continues on next page]
707
8 EV Persuasion Monitor – San Mateo County
Questions: Before seeing this list, which of the electric vehicle types listed below had you heard of, as being available today in San Mateo county? and How familiar would you say you are with the various types of electric vehicles that are available now? and What is your opinion of electric vehicles? and Which of the following types of vehicles are currently owned/leased by members of your household, including yourself? Please check all that apply.
Base: Total Sample 2020/2021/2022 (N = 1777 / 509 / 1326) Arrows indicate statistically significant difference between 2022 and 2021 data at the 95% confidence level.
Among Los Banos respondents, the EV persuasion metrics are lower across the board but still exhibit the same dropoff from awareness to familiarity as is the case in San Mateo County.
This implies that more substance in communications is needed as well as methods to improve awareness of the benefits of EVs. (Arrows indicate a significant difference between San Mateo County and Los Banos at the 95% confidence level.)
EV Persuasion Monitor – San Mateo County vs. Los Banos
Base: Total Sample: (N = 1326 / 938)
Arrows indicate statistically significant difference between San Mateo County and Los Banos at the 95% confidence level.
708
9 Among San Mateo County respondents, high percentages agree with most factual statements about EVs at similar levels as in the 2021 survey. Awareness of the 200+ mile range is most improved.
Question: Please indicate your agreement with the following statements about plug-in electric vehicles.
Base: Total San Mateo County Sample (N = 1326)
Arrows indicate statistically significant difference between 2022 and 2021 data at the 95% confidence level.
EV Purchase Motivations and Barriers, Purchase Interest The leading factors stimulating interest in EVs is cost of operation and the price of the vehicle.
The primary barrier is affordability, followed by lack of convenient charging stations and range concerns. San Mateo County respondents show increased interest in purchasing EVs, with 57% of new vehicle purchasers indicating a high probability of purchasing an EV when they next buy a new vehicle compared with 49% in the 2021 survey.
Place to Charge an EV
Across all San Mateo County respondents, 69% claim they have a place to plug in, compared to 56% in the 2021 survey. This incidence is higher among higher income groups and those who live in a single-family dwelling. About half report that there is a public charging station convenient to their home or work, a significant increase over the 37% who reported this last year.
Implications for Marketing and Messaging
Our overall brand messaging is on track as indicated by high favorability among those who are aware, and the fact that residents attribute to the brand the attributes that Peninsula Clean Energy intends to convey. While total awareness has increased compared to the 2021 survey, there is still a long way to go to reach our target 60% awareness. This can be achieved by greater investment in broader and more frequent communication through owned, earned and paid media as well as outreach both directly to the community and through leveraging our community partner relationships.
709
10 In San Mateo County, persuasion metrics for EV adoption are strong and show momentum.
There is lower awareness and familiarity among the Los Banos residents. In both geographies, there is a need for communications that provide information about range, cost and other motivators and barriers to adoption.
710
Item No. 13
1 PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: KJ Janowski, Director of Marketing and Community Relations SUBJECT: Electrification Messaging Update on Research and Implications BACKGROUND:
At the September 25, 2021 strategic retreat, the Peninsula Clean Energy Board of Directors received a staff presentation on the topic of “2045 Decarbonization and Peninsula Clean Energy Programs.” At that meeting, the Board adopted a goal of 100% greenhouse gas free by 2035 and directed Peninsula Clean Energy staff to return with a plan for achieving that goal.
The staff presentation noted that, among the critical challenges in meeting that goal, were:
“building public awareness and motivation” and “making it easy to take action.” Following the retreat, the Peninsula Clean Energy Marketing team began developing a concept for a campaign that would inspire residents to electrify their transportation and their residences, encouraging them to consider the benefits of switching out of fossil fuels and into clean electricity for these purposes. The intention is that this messaging will overarch our customer communications and that individual programs also would be promoted within this overarching messaging.
In order to ensure that our messaging resonated with our customers, Marketing embarked on customer research to better understand the perceived benefits of electrification. This memo provides a summary of key findings and implications.
DISCUSSION:
Approach
Our market research approach consisted of two major parts: 1) in-depth, one-on-one interviews and 2) an online survey.
The purpose of the in-depth interviews was to articulate current appliance shopping criteria, translate potential building electrification messaging to consumer language, and gain reactions to an “all-electric” concept and preliminary taglines. Fifty-minute interviews were conducted over Zoom with 16 San Mateo County adult residents (11 homeowners, 5 renters) in January and February 2022. Respondents were recruited from all Peninsula Clean Energy customers but 711
Item No. 13
2 were screened to include only individuals who had “some” or “a lot” of concern about climate change. Interviewees each received $150 as an incentive to participate.
The goals of the online survey (completed by 1,081 Peninsula Clean Energy customers residing in San Mateo County) were to identify and characterize segments with distinctive appliance selection criteria, select segments for marketing targets, inform the development of messaging for targeted segments and update the status of marketplace persuasion regarding building electrification. Emailed invitations were sent in March to a sample of 27,472 customers for whom email addresses were available. Responses were incentivized with a sweepstakes offering 2 winners of $500 and 10 winners of $100. A response rate of 3.9% yielded 1081 completed surveys.
Findings
From the in-depth interviews, some themes emerged which were further tested in the online survey. Interviewees generally did not understand that combusting methane gas in the home contributes to climate change. They believed that switching from methane gas appliances to electric ones requires a high out-of-pocket cost and large effort and involves processes that are not well understood. Perceptions of electric appliances, particularly electric stoves, are outdated. Concerns about reliability of electricity were expressed by some of the interviewees.
From the interviews, a list of 32 appliance decision factors was generated which became an input to the online survey.
The online survey asked respondents to rate the appliance decision factors on an importance scale of 1 to 10 where 10 was extremely important. The factors were subsequently grouped into the following categories.
Climate Friendly
Reflect my concerns about climate change
Lower my household’s carbon footprint
Help me act to protect the environment for future generations Have no emissions that contribute to climate change
Run on a renewable energy source
Do not emit any greenhouse gases
May cost more to buy and install but are better for the environment Use no fossil fuels to operate
Health/Safety
Are safer/ no risk of explosions or leaks
Do not risk the release of unsafe emissions into my home Are healthier / protects my home’s indoor air quality
Anticipate regulatory changes that may be required in the future All-Electric, No Methane
Do not use natural gas (also known as methane gas) to operate Preserve or move my home toward being an all-electric home Pride/Unique
I would enjoy showing to my guests
I might be among the first to own/is a bit unique
Are recommended by my contractor
Costs Less
712
Item No. 13
3 Have very low installation costs
Cost less to purchase
Cost less to run for a typical year
Come with a rebate offer
Use a lower cost power source
Don’t require me to do much research to select
Modern Technology
Are technologically up to date
Can integrate with smart home systems
Look and feel modern
Protect and Add Value
May cost more to buy and install but would reduce costs in the long run Protect the value of my home
Add to the value of my home in the long run
Power Reliable
Can continue to operate during a power outage
Lessen my home’s load on the electricity grid
Leverages My Solar
Use the energy from solar panels I have now or may install Across the entire sample, one group of factors stood out – health and safety. The chart below shows the percentage of respondents rating health and safety factors a 9 or 10 on the scale of 1 to 10 in importance. (N=1081).
713
Item No. 13
4 Respondents were then sorted into segments, using a statistical technique known as “cluster analysis,” based on how they valued these different groups of decision factors. The chart below shows the segments that were identified and the estimated portion of our customers that fall into each segment. (N=1081) Each of these segments, by definition, has a slightly different ranking of decision factors. Our aim is to identify a few succinct benefits that would resonate with a significantly large portion of our customers. The primary segments depicted below in blue and marked with a red asterisk were chosen based, in part, on the understanding that they share a sufficient commonality of perceived benefits and attitudes and yet comprise nearly 60% of our total residents in San Mateo County.
The Deep Green segment is a small but important segment but the main message that persuades this group is a bit different from the messages that best address the three primary segments.
The table below shows a sample of some of the selection factors across the three and primary segments and the Deep Green segment. The percentages shown for each of the decision factors are the percentage of respondents in that segment who rated that factor as 9 or 10 on an importance scale of 1-10 (10=extremely important).
[memo continues on next page]
714
Item No. 13
5 The segments vary somewhat across environmental attitudes and perceptions as shown in the two tables below.
Question: Based on current trends, how much impact will climate change have on the everyday lifestyle of the next generation of San Mateo County residents? (N=1081) 715
Item No. 13
6 Home Value Protectors
This segment values safety and indoor air quality, operating cost, protecting the value of the home and adding value to the home in the long run and in protecting the environment for future generations.
• 75% think climate will have a substantial or extreme impact • 60% believe the actions they take in their home can have a meaningful impact • 40+% willing to pay 10% more for climate-friendly products Unempowered Pragmatists
This segment values safety and indoor air quality and operating cost. • 25% think climate will little or no impact (although 44% think it will have a substantial or extreme impact)
• Only 24% believe the actions they take in their home can have a meaningful impact
• Very few (15%) are willing to pay 10% more for climate-friendly products Light Greens
This segment values safety and indoor air quality, operating cost and protecting the environment for future generations.
• 74% think climate will have a substantial or extreme impact • 56% believe the actions they take in their home can have a meaningful impact • Half are willing to pay 10% more for climate-friendly products and one-third would replace products before end of life for the sake of the climate impact Deep Greens
This segment values, first and foremost, protecting the environment for future generations and also values safety and indoor air quality. • Nearly 90% think climate will have a substantial or extreme impact • 75% believe the actions they take in their home can have a meaningful impact • Over 80% willing to pay 10% more for climate-friendly products and two-thirds would replace products before end of life for the sake of the climate impact [memo continues on next page]
716
Item No. 13
7 There are some variations in demographics across these four segments with the most notable differences in the Deep Greens vs. the other segments.
Implications for Message Development
We have an opportunity to emphasize health and safety considerations while educating our customers about the benefits of clean electricity over methane gas. This can open the door to providing further information about the environmental impacts of methane gas. The cost of electric alternatives, particularly the operating costs, is an issue which must be addressed. This can take the form of gas-vs.-electric comparisons for specific appliances, case studies or references to the significantly better efficiency of electric appliances and equipment. Messaging challenges include a generally low level of energy literacy, perceptions that gas appliances may cost less to operate, and the unfavorable perception of certain electric appliances (primarily stoves, where there is very low familiarity with newer technologies such as induction). 717
Item No. 15
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: KJ Janowski, Director of Marketing and Community Relations & Leslie Brown, Director of Account Services
SUBJECT: Update on Marketing, Outreach Activities, and Account Services
BACKGROUND
The Marketing, Community Relations, and Account Services Teams are responsible for enhancing Peninsula Clean Energy’s brand reputation, educating and engaging customers, driving participation in programs, and ensuring customer satisfaction and retention. Tactics include community outreach, content creation and storytelling through owned (e.g. online, social media), earned (e.g. public relations), and paid media (advertising), school engagement programs, and customer care.
DISCUSSION
The following is an update of activities that are currently underway. See “Strategic Plan” section below for how these activities support Peninsula Clean Energy’s strategic plan objectives.
Heat Pump Water Heater (HPWH) Incentive Program
Marketing is supporting the program goal to install 200 heat pump water heaters in the first two years. Marketing efforts have been measured based upon visits to our HPWH incentive pages. In the last 30 days, more than 1,300 users visited the page.
Electrification Messaging and Campaign Support of Decarbonization Marketing is developing new messaging centered on encouraging electrification.
Message testing research has been completed. Topline results of this research will be presented in the July 28 board meeting. Messaging is being developed for a campaign that is planned to start this summer. The campaign will support our organizational priority 718
Item No. 15
to contribute to our community reaching a goal of 100% greenhouse gas-free for buildings and transportation by 2035.
Annual Awareness and Perception Monitoring
The results of our annual brand awareness and perception monitoring study are in. Brand awareness in our San Mateo County territory has shown an increase to 41% total awareness. Results also include brand awareness in Los Banos as well as awareness, perception and purchase interest in electric vehicles. Topline results of this research will be presented in the July 28 board meeting and summarized in a separate memo in this board packet.
Electric Vehicle (EV) Campaign
A search advertising campaign addressing barriers and benefits of electric vehicles has been underway since November 2021. Ad performance has continued to improve during this time. In June, the campaign achieved about 75,000 impressions and brought about 4,380 visits to our EV web pages. In July we transitioned to a narrower EV campaign targeted on the Used EV program and featuring our increased maximum rebate of $6,000.
Results in July so far are showing an average cost-per-click of $0.88, far lower than industry averages (which are ~$3.50 across industries and $2.30-3.20 for automotive related paid search).
Los Banos Update
Our local Los Banos representative Sandra Benetti has been very active providing additional information and answering questions as Los Banos customers began receiving service from Peninsula Clean Energy. This includes tabling twice monthly on bill pay dates at Los Banos City Hall.
We are reaching out to additional community groups to arrange presentations. Sandra is also active in local social media forums addressing questions and providing correct information.
Peninsula Clean Energy ran an ad campaign in each of the two new newspapers now serving Los Banos, Los Banos Enterprise and The Westside Express. We will be working with both news outlets on future paid and earned media opportunities.
News & Media
Full coverage of Peninsula Clean Energy in the news can be found on our News & Media webpage and in the Q2 Media Relations Report included in this month’s board documents.
ENROLLMENT UPDATE
ECO100 Statistics (since June report)
Total ECO100 accounts at end of June: 6,390
ECO100 accounts added in June: 53
ECO100 accounts dropped in June: 40
719
Item No. 15
Total ECO100 accounts at the end of May: 6,377
Enrollment Statistics
Opt-outs during the month of June were 145, 90 more than the previous month of May (55). This includes 104 opt outs in our new service territory of Los Banos during the month of June and 41 from San Mateo County during this month. In July, there have been an additional 56 opt outs from Los Banos and 17 opt outs from San Mateo County as of July 10th, 2022. Total participation rate across all of San Mateo County as of July 10th was
96.88%.
In addition to the County of San Mateo, there are a total of 15 ECO100 cities. The ECO100 towns and cities as of June 10th, 2022, include: Atherton, Belmont, Brisbane, Burlingame, Colma, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Portola Valley, Redwood City, San Carlos, San Mateo, and Woodside.
The opt-up rates below include municipal accounts, which may noticeably increase the rate in smaller jurisdictions.
Table reflects data as of July 10th, 2022
In the above table, the participation rate for the City of Los Banos is at 84%. This number is artificially low due to us conducting a rolling enrollment for our NEM customers in Los Banos. Approximately 1446 Los Banos NEM customers have yet to be enrolled in Peninsula Clean Energy service. They will be enrolled monthly on their true-up month with PG&E from July through December. These accounts are included in the ”Eligible Count” column but are not currently active Peninsula Clean Energy customers, and are 720
Item No. 15
therefore not included in the “Active Count” column. The opt-out rate from Los Banos customers who received enrollment notices is currently at 3.3%.
Los Banos Enrollment Notices
The first set of Los Banos enrollment notices was mailed to customers February 14th, 2022, and the second set of enrollment notices was mailed March 8th, 2022. Four sets of enrollment notices are required to be mailed to our future customers in the City of Los Banos; two must be sent pre-enrollment (60 days before and 30 days before), and the other two must be sent post-enrollment (30 days after and 60 days after). Peninsula Clean Energy staff created separate pre-enrollment notices for standard customers, NEM customers, and DAC-GT customers in the City of Los Banos. Our standard welcome postcard will be used as the two required post-enrollment notices.
STRATEGIC PLAN
This section describes how the above Marketing and Community Care activities and enrollment statistics relate to the overall goal and objectives laid out in the strategic plan.
The table indicates which objectives and particular Key Tactics are supported by each of the Items/Projects discussed in this memo. The strategic goal for Marketing and Customer Care is: Develop a strong brand reputation that drives participation in Peninsula Clean Energy’s programs and ensures customer satisfaction and retention.
Item/Project
Objective A:
Elevate Peninsula
Clean Energy’s
brand reputation as
a trusted leader in
the community and
the industry
Objective B:
Educate and
engage
stakeholders in
order to gather
input, inspire action
and drive program
participation
Objective C:
Ensure high
customer
satisfaction and
retention
HPWH Incentive KT6: Promote
programs and
services, including
community energy
programs and
premium energy
services
Electrification
Messaging Project
KT5: Provide
inspirational,
informative content
that spurs action to
reduce emissions.
Annual Awareness
and Perception
Monitoring
KT5: Identify and
address gaps
between perception
721
Item No. 15
and desired brand
identity
EV Campaign KT6 (see above)
Building
Electrification
Awareness
Program
KT6 (see above)
E-bikes for
Everyone
KT6 (see above)
Los Banos Update KT4: Engage
community through
participation in local
events
CAC Recruitment KT4: Support the
Citizens Advisory
Committee
News and Media
Announcements
KT1: Position
leadership as
experts on CCAs
and the industry
KT2: Cultivate
relationships with
industry media and
influencers
KT3 (see above)
ECO100 and
Enrollment
Statistics
Reports on main
objective C
* “KT” refers to Key Tactic
722
Item No. 16
1 PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: KJ Janowski, Director, Director of Marketing and Community Relations Darren Goode, Media Relations Consultant
SUBJECT: Second Quarter (Q2) 2022 Media Relations Summary
BACKGROUND
Media Relations, a specialization within the Marketing discipline, focuses on enhancing Peninsula Clean Energy’s reputation and leadership position by garnering earned media attention. This is the second of a series of quarterly reports on media relations activities and coverage for 2022.
DISCUSSION
1. Spotlighting 24/7 Renewable Power
CEO Jan Pepper and other Peninsula Clean Energy senior staff have spotlighted and will be spotlighting efforts toward our sector-leading goal of providing 24/7 renewable power by 2025.
Jan joined the White House Council on Environmental Quality’s Director of Clean Energy Tanuj Deora and Princeton University energy expert Jesse Jenkins in a panel focused on 24/7 carbon-free power hosted by the World Resources Institute.
Jan spoke about 24/7 renewables on a panel at the California Clean Energy Procurement Summit. Jan virtually presented and spoke on our 24/7 renewables white paper and strategy at the SOLAR 2022 conference. Jan also spoke at Silicon Valley Leadership Group’s Energy & Sustainability Summit on June 16.
We have been selected to appear at the in-person Renewable Energy Markets 2022 gathering this September in Minneapolis. We also discussed and inquired about the 2022 California Climate and Energy Forum but ultimately decided it would not be a good fit to participate this year. We will continue to search and pursue other opportunities. 723
Item No. 16
2 2. 5-Year Anniversary Resolution Announcement
We drafted a one-page resolution honoring the five-year anniversary of Peninsula Clean Energy first delivering power to all of San Mateo County. We are working with the offices of Senator Josh Becker and Assemblymember Kevin Mullin to announce.
Representatives of Becker and Mullins gave remarks at the May Peninsula Clean Energy board meeting. We will make a bigger public announcement in July, including a photo opportunity with one or more state lawmakers, our CEO and our board of directors leadership.
3. Shawn Marshall Announcement
We announced Shawn Marshall as our first COO, with quotes from Shawn, Jan and Dave Pine in the press release. We also arranged an exclusive interview between Shawn and the San Mateo Daily Journal, who ran a subsequent positive article.
4. Rafael Spotlighted
Rafael was interviewed by Canary Media’s Jeff St. John and featured in a story on our all-electric heat and hot-water system demonstration program with Harvest Thermal.
Rafael also spoke with New Project Media about the RFP for distributed solar and solar + storage for public facilities.
5. Los Banos Outreach
The op-ed from Sandra Benetti that previously ran in the Merced Sun-Star and Los Banos Enterprise was published May 24 in the inaugural edition of the new Los Banos outlet The Westside Express. We have also updated our Los Banos media list and subscriptions and have discussed doing additional targeted outreach to those reporters about our new service there. That could include the issue of customer confusion over rising electricity bills and the additional Peninsula Clean Energy service charge on their bills, which has been the subject of increased Facebook and other social media chatter of late.
6. All-Electric Awards Announcement
We announced our 2022 All-Electric Leader award winners in a press release featuring Donna Colson and Rod Daus-Magbual and received strong social media interaction, including Assemblymember Phil Ting and other local leaders. We also received coverage in Patch.com.
7. Heber 2 Announcement
We contributed a quote from Jan in Ormat’s press release announcing our deal with them to procure geothermal power from their Heber 2 facility. The deal was mentioned in a list of the “hottest trends in corporate renewable energy” by GreenBiz, and other coverage included The Desert Review, Renewables Now and APPA.
8. Lyft Ribbon-Cutting EventWe are considering participating in an event that Lyft would spearhead in late summer or early fall allowing us to highlight our EV rider partnership with them. The event’s primary focus would be on Proposition 30, which 724
Item No. 16
3 provides funding for programs to reduce greenhouse gas emissions by increasing tax on personal income over $2 million.
9. More Media
Moody’s revises Peninsula Clean Energy’s outlook to positive, Moody’s, June 27 Belmont passes stricter electricity codes, San Mateo Daily Journal, June 23 Senator Becker climate bills pass utilities committee, Sen. Becker Twitter, June 22 Josh Becker climate bills clear Senate, San Mateo Daily Journal, May 28 Civic Center remodel contract approved, Pacifica Tribune, May 3 Supervisor candidates detail their plans for the district, Half Moon Bay Review, April 5
STRATEGIC PLAN
This section describes how Media Relations activities relate to the overall goal and objectives laid out in the strategic plan. Media Relations The strategic goal for Marketing and Customer Care is: Develop a strong brand reputation that drives participation in Peninsula Clean Energy’s programs and ensures customer satisfaction and retention. Media Relations’ efforts relate specifically to Objectives A and B in the strategic plan.
Item/Project
Objective A: Elevate Peninsula
Clean Energy’s brand
reputation as a trusted leader in
the community and the industry
Objective B: Educate and engage
stakeholders in order to gather
input, inspire action and drive
program participation
Items 1, 3, 4 KT1: Position leadership as
experts on CCAs and the
industry
Items 3, 5 KT2: Cultivate relationships
with industry media and
influencers
Items 1 thru 10 KT3: Tell the story of Peninsula
Clean Energy through diverse
channels
Items 4, 7 KT5: Provide inspirational,
informative content that spurs
action to reduce emissions
* “KT” refers to Key Tactic
725
Item No. 17
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: July 8, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority (PCE) Board of Directors FROM: Jeremy Waen, Director of Regulatory Policy
Doug Karpa, Senior Regulatory Analyst
Matthew Rutherford, Senior Regulatory Analyst
SUBJECT: Update Regarding Regulatory Policy Activities
SUMMARY
Over the last month the Regulatory Policy team continues to be busy. Jeremy has focused his time across supporting organizational needs. Doug has been particularly heavily focused on work to reform the California Public Utilities Commission’s (CPUC) Resource Adequacy construct. Matthew has continued his work in supporting PCE’s programmatic efforts through Transportation Electrification, Building Decarbonization, Resiliency, Supplier Diversity, and DAC-Green Tariff matters.
DEEPER DIVE
DAC-GT/CSGT Programs
On May 31, PG&E, SDG&E, and SCE each filed Applications for Program Review (AFRs) to propose revisions to their DAC-GT and CSGT programs (“Programs”) as required by the Commission. Generally, the issues highlighted in the IOUs’ AFRs are aligned with the concerns of the CCAs. In broad terms, the AFRs identify ways the Programs’ designs could be modified to ensure that they more successfully lead to greater development of new solar resources in state-identified Disadvantaged Communities (DACs) as well as better deliver that solar energy and bill discounts to low-income customers that live within DACs. The AFRs suggests that giving administrators of these Programs more flexibility in how they enroll customers and expanding customer eligibility to allow a wider range of pollution-burdened and underserved customers to participate.
726
Item No. 17
2 The CCAs that offer their own Programs filed a joint response to the AFRs on July 6.
The CCAs generally agreed with many of the IOU suggestions to modify the program.
However, the CCAs disagreed with a few suggestions that unprocured program capacity should remain with the IOUs and instead argued that it should be transferred to the CCAs to serve their own Programs. The CCAs also disagreed with recommendations that all Program Administrators should use the same branding to avoid customer confusion. The CCAs argued that it would be costly and administratively burdensome for the CCAs that have already launched their own Programs and marketing strategies. PCE also cited its experience transferring PG&E DAC-GT customers into PCE’s DAC-GT program when it expanded its service area to Los Banos. PCE did not receive any customer inquiries from those DAC-GT customers, pointing to the success of the outreach and marketing which facilitated a smooth transition for those affected customers to ensure that they can continue to receive their Program bill credit. The IOUs are due to submit replies to stakeholder responses on July 18.
(Public Policy Objective A, Key Tactic 1, Key Tactic 2 and Key Tactic 3) Integrated Resource Planning & Resource Adequacy
The resource adequacy proceeding is moving to a phase of development of the details of the 24-hour resource adequacy construct, including resource counting rules, compliance templates and CAISO processes. These working groups will work over the summer to develop methodologies for the 2024 test year.
The Integrated Resources Planning process has now moved forward into developing filings and new modeling for the 2022 cycle, including with new templates and requirements being released this month ahead of our filing this fall.
In a related effort, Doug and Matthew developed a comment letter jointly with several other CCAs to the California Air Resources Board (CARB) urging stricter carbon targets for the energy sector and criticizing the proposed heavy reliance on carbon sequestion, among other issues. The carbon targets of the Draft Scoping Plan are used to set the targets in the Integrated Resources Planning process, so high targets could undermine efforts to decarbonize the electricity sector. The joint letter also encouraged CARB to consider setting more aggressive targets for decarbonizing California’s transportation and building sectors while also ensuring that communities which have been historically underserved or face higher pollution and energy cost burdens to participate in these technology transitions.
(Public Policy Objective A, Key Tactic 1, and Key Tactic 2; Public Policy Objective C, Key Tactic 3)
Stakeholder Outreach
727
Item No. 17
3 Doug hosted the regular monthly call with staff from CCAs and environmental and environmental justice stakeholders on June 1, 2022, to discuss the Draft Scoping Plan for statewide decarbonization by 2045. Several significant concerns were discussed, including the exceptionally high proposed statewide greenhouse gas targets for the electricity sector for 2045 and the heavy reliance on direct air carbon dioxide capture to reduce statewide emissions.
(Public Policy Objective A, Key Tactic 2)
FISCAL IMPACT
Not applicable.
728
Item No. 18
PENINSULA CLEAN ENERGY AUTHORITY
Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Marc Hershman, Director of Government Affairs
SUBJECT: Update on Peninsula Clean Energy’s Legislative Activities SACRAMENTO SUMMARY:
July marks the lull before the final legislative push of the year. The Assembly and Senate recessed for the summer on July 1 and will not reconvene until August 1. The month of August marks the final push before the 2021-22 Legislative Session adjourns for the year on August 31.
July 1 also marked the last day for bills to be heard in policy committees and the start of the 2022-23 fiscal year.
August 12 is the last day for bills to be heard in a fiscal committee.
Before the Legislature adjourned, they sent the governor a $300 billion fiscal 2022-23 budget package. This Budget Act was signed by the governor on June 30.
However, as we saw in 2021, supplemental budget bills and additional measures providing policy guidance to the budget act – known as trailer bills - will continue to be negotiated by the Legislature and the Administration well into the final days of the 2022 session.
Of particular interest to Peninsula Clean Energy are the items in the budget that will accelerate project build out of clean energy and storage projects by providing a new streamlined permitting option at the California Energy Commission for qualifying projects.
The governor submitted a number of controversial, last-minute additions to the budget including a Strategic Electricity Reliability Reserve, which includes existing generation capacity that was scheduled to retire, new generation, and new storage projects, as well as clean backup generation projects, diesel and natural gas backup generation projects 729
Item No. 18
with emission controls and all required permits, and customer side load reduction capacity. Peninsula Clean Energy will be seeking clarification and possible modification of certain provisions in the bill through trailer bills.
Notably, there is $970 million in the budget for the Public Utilities Commission to provide residential solar and storage system incentives, with $670 million available for solar and storage systems for low-income households. And there is $250 million to leverage additional state financing tools dedicated to supporting the development of strategic clean energy projects, with the initial priority to support the development of new transmission to deliver to the CAISO system, clean, firm electricity from new resources located in the Salton Sea region.
In addition, there's $957.6 million for ratepayer assistance to pay past due IOU/CCA residential customer’s electricity bills. Peninsula Clean Energy had sent a letter to the governor and legislative leaders in support of this funding.
LEGISLATIVE ADVOCACY AND OUTREACH:
A bill of great interest to Peninsula Clean Energy is SB 1158 (Becker). Similar in some respects to Senator Becker’s SB 67 from 2021, SB 1158 would mandate the hourly reporting of GHG intensity of load serving entities like Peninsula Clean Energy. It would also require the LSE to report the GHG profile of its Resource Adequacy portfolios.
Peninsula Clean Energy supports SB 1158 and the bill’s goal of improving transparency of LSE progress in meeting its GHG reduction goals, noting that it reflects our organizations 24/7 goals. We have been working closely with Senator Becker to clarify and address some of the issues raised in the legislation.
Peninsula Clean Energy weighed in with support for SB 1158 when it was heard and passed in the Senate Committee on Energy, Utilities and Communications. The bill was passed by the Senate Committee on Appropriations and by the full Senate. Peninsula Clean Energy provided lead testimony at hearings before the Assembly Committee on Utilities and Energy and again when the bill was heard by the Assembly Committee on Natural Resources. SB 1158 easily passed both committees and will next be heard in the Assembly Committee on Appropriations.
Peninsula Clean Energy and CalCCA had taken an oppose position on SB 1393 (Archuleta). This bill would expand the California Energy Commission’s review of new construction reach codes and require local jurisdictions to consider the CEC’s guidance on building electrification when considering adopting ordinances that require electrification of existing buildings. The CEC would review the ordinance and determine whether the local government considered the CEC’s published guidance in the adoption of the ordinance. If the CEC determined that the local jurisdiction did not consider the 730
Item No. 18
CEC’s guidance, they would be required to consider the guidance, make modifications deemed necessary by the local government and resubmit the ordinance to the CEC.
SB 1393 was passed in the Senate Committee on Energy, Utilities and Communications and by the Committee on Appropriations.
SB 1393 has been heavily amended so that there are no longer requirements that would hamper a local jurisdiction’s ability to enact reach codes. SB 1393 has passed the state Senate and is before the Assembly where it passed in the Assembly Committee on Utilities and Energy and the Assembly Committee on Local Government.
AB 1944 (Lee, Christina Garcia) would amend the Brown Act to specify that if a member of a legislative body elects to teleconference from a location that is not public, the address of that location need not be identified in the meeting notice and agenda, or be accessible to the public, when the legislative body has elected to allow members to participate via teleconferencing. Peninsula Clean Energy has submitted a letter of support for AB 1944. This bill was heard in May and passed in the Assembly Committee on Local Government and was subsequently passed off the floor of the Assembly. It is now before the state Senate for consideration.
SB 1020 (Laird) was passed in the Senate Committee on Energy in late April. It was referred to the Senate Committee on Appropriations where it was passed off the suspense file calendar and then passed off of the floor of the Senate. In late June SB 1020 passed in the Assembly Committee on Utilities and Energy and the Assembly Committee on Natural Resources. It will next be heard before the Assembly Committee on Appropriations.
SB 1020 is being championed by the leadership of the state Senate as the Clean Energy, Jobs, and Affordability Act of 2022. Among the many provisions of the bill that address climate change issues, it would establish a new state agency regarding clean energy and provide funding, mostly from federal funds, for home infrastructure upgrades. Peninsula Clean Energy has taken a support, if amended position on SB 1020. We are seeking some clarification on some of the technical language in the bill and hoping to have the bill define certain programs to include CCAs. 731
Item No. 19
PENINSULA CLEAN ENERGY
JPA Board Correspondence
DATE: July 14, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer, Peninsula Clean Energy Rafael Reyes, Director of Energy Programs
SUBJECT: Community Programs Report
SUMMARY
The following programs are in progress, and detailed information is provided below:
1. Building and EV Reach Codes
2. Buildings Programs
2.1. Appliance Rebates
2.2. Low-Income Home Upgrades & Electrification
2.3. Building Pilots
3. Distributed Energy Programs
3.1. Local Government Solar Project Development
3.2. Power On Peninsula – Homeowner
4. Transportation Programs
4.1. “EV Ready” Charging Incentive Program
4.2. Used EV Rebate Program
4.3. EV Ride & Drives/EV Rental Rebate
4.4. E-Bikes for Everyone Rebate Program
4.5. Municipal Fleets Program
4.6. Transportation Pilots
5. 2035 Decarbonization Feasibility and Plan
DETAIL
1. Building and EV Reach Codes
Background: In 2018 the Board approved a building “reach code” initiative to support local governments in adopting enhancements to the building code for low-carbon and EV ready buildings. The initiative is a joint project with Silicon Valley Clean Energy (SVCE) 732
Item No. 19
and East Bay Community Energy (EBCE). The program includes small grants to municipalities, technical assistance, and tools, including model codes developed with significant community input. The tools and model code language are available on the project website (www.BayAreaReachCodes.org).
In addition, in January 2020 the Board approved an extension of the reach code technical assistance plus additional elements – Education and training for developers and contractors, and consumer education program on the benefits of all-electric buildings.
This technical assistance is publicly available at www.AllElectricDesign.org. In December 2020, the Board approved to extend the contract with TRC Engineers include technical assistance for developing policy for existing buildings. In February 2022 the Board extended the initiative for another two years.
Status:
• Reach Codes: The City of Belmont has approved the first reading of reach codes and scheduled the second reading in June. In total 15 agencies have adopted some form of reach code in the service territory. Peninsula Clean Energy is providing support to numerous additional agencies who plan to pass Reach Codes in 2022. Draft new and existing model codes are available. Multiple jurisdictions have requested model existing building reach codes. Stakeholder workshops were held on January 26, February 15, 16, 17, and most recently April 13 with approximately 250 attendees excluding program staff. The first drafts of the model codes were presented and initial feedback received.
• Existing Building policy development: Existing building model codes are being developed with stakeholder feedbackare posted online. During a poll at a City Staff workshop, 64% of respondents stated that they were interested in exploring an existing building reach code. In addition, SVCE and Joint Venture Silicon Valley are planning an existing building workshop/webinar likely in August September specifically for elected officials and have offered that elected officials in San Mateo County may also attend. City of San Mateo brought some existing building measuers to the Sustainability and Infrastructure Committee on July 13th. • Model Code Summary, available at www.bayareareachcodes.com: o New construction building electrification codes require all-electric and include a menu of exceptions for cities to choose from o New construction EV codes are the same as last cycle for most building types, requiring more access than the state code. Multi-family buildings are required to provide at least one level 2 charging access point for every dwelling unit. 15% must be Level 2 charging stations. 85% can be low-power Level 2 EV ready. o Existing building model codes provide a full menu of options for cities to choose from, including: end of flow requirements, time-of-replacement mandates, time of sale disclosure requirements, and a requirement to upgrade existing EV-capable circuits to EV-ready by a time-certain deadline.
Strategic Plan:
733
Item No. 19
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 3: Ensure nearly all new construction is all-electric and EV ready • Key Tactic 4: Establish preference for all-electric building design and appliance replacement among consumers and building stakeholders
2. Buildings Programs
2.1. Appliance Rebates
Background: In May 2020, the Board approved a 4-year, $6.1 million for electrifying existing buildings. This included $2.8 million for implementing an appliance rebate program. Peninsula Clean Energy successfully launched the heat pump water heater rebates on January 01, 2021 for San Mateo County residents. Peninsula Clean Energy rebates are offered in partnership with BayREN’s Home+ program. BayREN offers a rebate of $1,000 and Peninsula Clean Energy offers an additional rebate of $1,000 for methane gas to heat pump water heater (HPWH) or $500 for electric resistance to HPWH.
Peninsula Clean Energy also offers a bonus rebate for low-income customers (CARE/FERA participants) of $1,000 and $1,500 for electrical panel updates of up to 100 Amp and $750 for up to 200 Amp that might be needed to accommodate the HPWH. In addition, Peninsula Clean Energy has offered a small refrigerator recycling program since April 2019.
Status: The HPWH rebate program was launched on January 01, 2021 and as of July 14une 7, 2022 has received 25836 applications. Overall, the Peninsula Clean Energy program has accounted for approximately 34% of the HPWHs installed across the 9- county Bay Area since 2019. Currently 7 San Mateo County contractors and 25 contractors outside the county are enrolled in the program. Peninsula Clean Energy has been promoting the incentive through digital ads, email outreach and other channels.
Volume on this program is being impacted by statewide HPWH supply shortages that staff is currently investigating. The TECH program that hads been providing HPWH incentives throughout 2022 has runran out of funding in PG&E service territory as of May 12, 2022. TECH offered $1,100+ to Peninsula Clean Energy customers directly through their contractors, but those incentives will no longer be available in 2022. However, Peninsula Clean Energy and BayREN still offer incentives for customers installing HPWH for a total of $2,000. Additional incentives are available for income-qualified customers and electrical panel upgrades.
The refrigerator recycling program had low volume during the pandemic but is beginning to increase volume. Since inception in April 2019, the recycling program has recycled 36453 refrigerators and freezers resulting in 67346 MTCO2e in greenhouse gas reduction. Funds from the original contract were exhausted on May 10, 2022 but on June 2, 2022 staff executed a contract amendment to continue, and expand, the program with 734
Item No. 19
an additional budget of $200,000 over three years (June 2022 – June 2025). The contract amendment includes adding more appliance types (air conditioning units, and allowing non-working units to be eligible) and allowing for bulk pickups from apartment complexes and waste distribution centers.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 4: Establish preference for all-electric building design and appliance replacement among consumers and building stakeholders
2.2. (Low-Income) Home Upgrade Program
Background: In May 2020, the Board approved $2 million for implementing a turn-key low-income home upgrade program to offer minor home repair, energy efficiency, and electrification measures to income-qualified homeowners at no cost to them. The measures implemented in each home will vary depending on the home’s needs but will include at least one electrification measure such as installing a HPWH or replacing a gas stove with an electric induction stove. The contract with the administration and implementation firm, Richard Heath & Associates (RHA), was executed after being approved by the Board in the March 2021 meeting.
Status: The program was announced on September 28, 2021. The below table summarizes the program’s status as of May 31, 2022.
Stage/category #s as of May 31 2022
Leads 44411
Reached 28029
Pre-assessments 209172
Enrolled 15322
Ineligible 11272
Installations in progress 4536
Fully complete 2817
The following table summarizes the number of electrification measures implemented on the fully complete homes.
Measure Count
Heat pump water heater 107
Induction cooktop/range 83
Electric dryer 92
Central or mini split eat pump (HVAC) 31
Window or wall mounted heat pump (HVAC) 74
Portable heat pump (HVAC) 6
735
Item No. 19
Strategic Plan:
Goal 3 – Community Energy Programs
Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities • Key Tactic 3: Support workforce development programs in the County
2.3. Building Pilots
Background: In May 2020, The Board approved $300,000 for piloting a new innovative technology from Harvest Thermal Inc., a Bay Area-based startup, that combines residential space and water heating into a unified heat pump electric system with a single water storage tank. Through this project, this technology will be installed in 3-5 homes within the San Mateo County to assess its performance and demonstrate its effectiveness for emission reductions.
Status: The home recruitment process began in late April 2021 and the project received 290 applications. Homes were selected based on technical criteria (home characteristics, energy usage patterns, and technical feasible of the upgrade within budget). The four pilot homes are located in Daly City, South San Francisco, Redwood City, and Menlo Park. As of May 13, 2022, the Daly City, South San Francisco, and Redwood City homes have had their system installed. The Menlo Park home is still awaiting thereceived its city permit this month and installation is forthcoming.; Harvest and installation contractor have been in touch with the City’s building department regarding the request. The consulting firm TRC has been contracted to provide independent measurement and verification services for the project and have begun collecting data on the homes installed. A final report is anticipated in the summer of 2023 after a year a data has been collected and analyzed. Lastly, the Technical Advisory Committee (TAC) will havehad its second meeting on June 2, 2022, following the first meeting on September 30, 2021. The objective of the TAC is to review and provided feedback on the project. TAC members include former building officials, former contractor, city commissioner, peer CCA program managers, CPUC staff, CAC member and Board member Jeff Aalfs. A small ribbon-cutting event was held at the Daly City home on June 4th with PCE staff in attendance.
Additionally, Senator Josh Becker toured a Harvest Thermal home and Home Upgrade home on July 20th with PCE staff in attendance.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective C: Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact
736
Item No. 19
• Key Tactic 1: Identify, pilot, and develop innovative solutions for decarbonization
3. Distributed Energy Programs
Peninsula Clean Energy has Board-approved strategies for the promotion of 20 MW of new distributed energy resources in San Mateo County and is advancing distributed energy resources to provide resilience, lower decarbonization costs, provide load shaping to support our strategic goal for 24/7 renewables. The projects described below are efforts towards meeting both of these goals.
3.1. Local Government Solar Program
Background: The Local Government Solar program is aimed at aggregating local government facilities into a group procurement of solar and optionally storage systems.
Peninsula Clean Energy provides no-cost site assessments and preliminary designs as well as manages the procurement process. Participating sites have systems installed as part of power purchase agreements directly with Peninsula Clean Energy. As part of the pilot phase, in October 2020, the Board approved a Solar Site Evaluation Services contract with McCalmont Engineering for Solar site evaluation and designs for County and municipal facilities identified as candidates for solar-only or solar + storage resilience projects. In March 2022, the board approved up to $8 million in capital for system installations to be repaid over 20 years and $600,000 for technical assistance on the second round of the aggregated solar program.
Status: We have developed a portfolio of 145 sites in 123 cities for a total portfolio size of approximately 2 MW of solar. Battery storage will be explored for 4 of the 154 sites.
We have obtained city council commitments for the projects from all 12 cities. We are still hoping to include the San Bruno Aquatic Center in the aggregate procurement. ; however cCity council approval is still pending.
We have launched a Request for Proposals for solar+storage at public facilities as part of this program. The deadline for interested bidders to submit their Statements of Interest was July 15, and the deadline for proposal submissions is August 1.
We completed site visits and solar designs for fourteen (14) facilities across 13 agencies including in Los Banos. We began seeking commitments from cities and the County to participate in an aggregate procurement process from which we would offer a 20-year Power Purchase Agreement (PPA) for the solar installation at no upfront cost. The requested commitment is that if we can offer a PPA price that will result in net electric bill savings or deliver other identified community benefits, they will move forward to installation. We have now received commitments from 12 of 13 agencies, with an aggregate portfolio size of approximately 2 MW. We are continuing to work with a potential tax benefits partner that could capture the tax benefits of the solar projects and 737
Item No. 19
share them with Peninsula Clean Energy, and by extension portfolio customers.
Peninsula Clean Energy is unable to capture those benefits directly due to its tax-exempt status. We believe developing such a relationship and contracting structure could enable Peninsula Clean Energy to obtain the most competitive pricing on equipment and installation. Our fallback, if this pathway runs into insurmountable obstacles, is to seek a master PPA for the portfolio from an entity that can share tax benefits, similar to Peninsula Clean Energy’s wholesale procurements. are ready to move to a Request for Proposals (RFP) for vendors that can procure, install, and maintain equipment.
We are in final stages of city approval with only San Bruno pending. This is expected to be completed in June. Once complete, we will move to RFP for the full portfolio of sites.
We will be soliciting bids that could fit into two procurements models. In Model 1, Peninsula Clean Energy in partnership with a tax financing partner would purchase the systems from a contractor that would procure, install, and maintain equipment. In Model 2, Peninsula Clean Energy would secure a master PPA for the full portfolio with an entity that can provide both tax equity and installation. There are pros and cons to each model.
We expect the RFP to provide the critical information necessary to inform final model selection, most crucially the relevant costs and the resulting PPA pricing that could be provided to customers.
3.2. Power On Peninsula – Homeowner
Background: Power on Peninsula – Homeowner is a solar+storage energy resiliency program run by Peninsula Clean Energy in partnership with Sunrun. and TerraVerde Energy. This program provides energy storage systems paired with solar power to single family and multifamily Peninsula Clean Energy customers. Customers who sign up for this program receive an incentive up to $5001,250. At Peninsula Clean Energy’s direction, Sunrun will dispatch the stored energy during evening hours when renewable generation on the California grid is low. This will also help Peninsula Clean Energy to reduce its peak load and thereby reduce our resource adequacy requirements.
Status: The program has commenced dispatching customer batteries in the evening to help reduce Peninsula Clean Energy’s net peak. Sunrun will continue to enroll new customers throughout 2022. The program is being impacted by supply chain issues including contractor, materials, and product supply and cost. However, program promotion has been ongoing. The incentive for enrolling in the program is now $500. Staff is working with a firm to provide labor compliance assistance and has begun developing the process for analyzing workforce data.
3.3. FLEXmarket
738
Item No. 19
Background: In November 2021 the Board approved a program plan for the establishment of an innovative “virtual power plant” using what is known as FLEXmarket.
FLEXmarket is a market-based program structure that provides incentives to program “aggregators” to implement programs for energy efficiency and load shaping. The novel elements of the structure include a “pay-for-performance” approach which only provides incentives on confirmed performance using meter data. This novel structure was innovated by MCE and also has been adopted is being implemented by East Bay Community Energy and Sonoma Clean Power. In addition, the program plan was developed for submission to the CPUC to allow Peninsula Clean Energy to run the program with fully reimbursed funding through the CPUC. Peninsula Clean Energy’s billing data services provider Calpine has entered into a strategic partnership with the firm Recurve to provide FLEXmarket services through a streamlined structure.
Status: Peninsula Clean Energy’s proposed FLEXmarket program was approved by the CPUC on May 5th. and the Board approved the contract with Calpine to implement the program in June. Staff developed and submitted a Program Implementation Plan to the California Energy Data and Reporting System on July 5. The next major step is the development of an Implementation Plan which defines the program in greater detail.
Development of the Implementation Plan is in progress in collaboration with program partner Recurve. In addition, tThe required contract between Peninsula Clean Energy and Calpine is far along and currently under review being finalized and the incentive design is in progress. It is anticipated that the program will begin recruiting implementers in the coming weeks and then move to launch.
Strategic Plan: The activities and programs described in the DER and Energy Resilience activities support the following objectives and key tactics in Peninsula Clean Energy’s strategic plan:
• Distributed Energy Resources: Support strategic decarbonization and local power • Key Tactic 1: Create minimum of 20 MW of new local renewable power sources in PCE service territory by 2025
• Key Tactic 2: Support distributed energy resources to lower costs, support reliability, and advance distributed and grid decarbonization • Key Tactic 3: Foster Resilience
4. Transportation Programs
4.1. Used EV Rebate Program
Background: Launched in March 2019, the Used EV Rebate Program (formerly referred to as “DriveForward Electric”) provides an incentive up to $4,000 for the purchase of used plug-in hybrid electric vehicles (PHEVs) and full battery electric vehicles (BEVs) to income-qualified San Mateo County residents (those making 400% of the Federal Poverty Level or less). The incentives may be combined with other state-funded income-qualified EV incentive programs. In October 2020, the Board approved expanding the program to offer used EV incentives to all San Mateo County residents, while maintaining the 739
Item No. 19
increased incentives for income-qualified residents. The program includes a $25,000 vehicle price cap and local dealership network with point-of-sale rebate. In February 2021, Peninsula Clean Energy executed a competitively bid contract with GRID Alternatives (“GRID”) to administer the expanded program. The ‘old’ program incentivized 105 rebates from March 2019 through August 2021. In August 2021, the program was officially re-launched.
Status: Since the re-launch of the program, 8775 rebates have been provided under the new program and 200+ customers are actively in the pipeline (customers must apply prior to purchase). Because vehicle supplies are extremely tight due to global supply chain issues in the market currently and pricing is high, staff has made some temporary modifications to the program to adjust to market conditions. In 2021, average used vehicle prices were 30% higher than 2020, and 40-50% higher than pre-pandemic levels. In 2021, the average used vehicle price in the U.S. was $28,000.
As a result, staff made the following changes, which took effect March 17, 2022:
Current Change
To be eligible for rebate, vehicle purchase
price (before rebates) cannot exceed
$25,000.
Increase price cap from $25,000 to
$35,000
Current incentive levels are as follows:
• All residents: $700 PHEV, $1,000
BEV
• Income-qualifying residents
• If they combine Peninsula Clean
Energy incentive with other EV
incentive programs: $1,700
PHEV, $2,000 BEV
• If they do not combine Peninsula
Clean Energy incentive with any
other EV incentive program:
$3,700 PHEV, $4,000 BEV
Increase incentive by $2,000 for income-qualifying residents.
New incentive levels would be as follows:
• All residents: $700 PHEV, $1,000
BEV
• Income-qualifying residents
• If they combine Peninsula Clean
Energy incentive with other EV
incentive programs: $2,700
PHEV, $4,000 BEV
• If they do not combine Peninsula
Clean Energy incentive with any
other EV incentive program:
$5,700 PHEV, $6,000 BEV
Staff will assess changes in September/October and determine whether to keep them or adjust them again. Lastly, these changes will not require any new budget allocation to the program and uptake in the program has been slower than expected and thus there are enough funds in the existing budget to support these changes.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption 740
Item No. 19
Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities
4.2. “EV Ready” Charging Incentive Program
Background: In December 2018 the Board approved $16 million over four years for EV charging infrastructure incentives ($12 million), technical assistance ($2 million), workforce development ($1 million), and administrative costs ($1 million). Subsequent to authorization of funding, Peninsula Clean Energy successfully applied to the California Energy Commission (CEC) for the CEC to invest an additional $12 million in San Mateo County for EV charging infrastructure. Of Peninsula Clean Energy’s $12 million in incentives, $8 million is administered through the CEC’s California Electric Vehicle Incentive Project (CALeVIP) and $4 million under a dedicated, complementary Peninsula Clean Energy incentive fund. The dedicated Peninsula Clean Energy incentives address Level 1 charging, assigned parking in multi-family dwellings, affordable housing new construction, public agency new construction, and charging for resiliency purposes.
Status: The program is being significantly impacted by supply chain issues including contractor scheduling materials, and product supply and cost. This is resulting in installation delays. Staff is engaging directly with participating contractors to understand installation delay issues and IBEW 617 to explore solutions. Staff hosted multiple program webinars in early June to recruit additional contractors. Staff haves begun engagement met with IBEW 684 (Merced County) to develop relationships with contractors to serve Los Banos projects and to provide additional support in San Mateo County. Peninsula Clean Energy’s technical assistance and outreach is ongoing. Current outreach is focused on small to medium apartments in San Mateo County (~3,000 buildings). In addition, Tthe Center for Sustainable Energy (CSE), which manages the CALeVIP component of the program for the CEC and Peninsula Clean Energy has had ongoing and serious delays in the program, greatly hampering the ability to install charging stations. Staff are assessing options to expedite charging installation.
Twenty L2 ports were installed via CALeVIP at an apartment in Belmont. Summary of program metrics is outlined in the table below:
Sites/ Applications Ports Incentive Amount
# of sites in Technical Assistance 13633 939895 -
# of site evaluations approved by
PCE delivered
94 88 199784
7 -
# of funding applications received
in Peninsula Clean Energy
incentive program
364 48765 $1,226130,500
# of funding applications
approved in Peninsula Clean
Energy incentive program
201 38291 $83240,500
741
Item No. 19
# of CALeVIP applications
approved in Year 1*
6986 1,057
1,014
$14,868,500
# of CALeVIP applications
anticipated in Year 2 & Year 3
56 752 $3,666,500
Total # of ports installed 11 254 $701,000
*Includes DCFC and L2 ports: 306298 DCFC, 75118 L2 ports Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption • Key Tactic 5: Support local government initiatives to advance decarbonization Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 3: Support workforce development programs in the County
4.3. EV Ride & Drives / EV Rental Rebate
Background: In February 2019, the Board approved continuation of the EV Ride & Drive program over three years (2019-2021) following a 2018 pilot. It provides for community and corporate events in which community members can test drive a range of EVs. The program generated 19 events and 3,033 experiences since inception in 2018. Event surveys indicate that the ride and drive was the first EV experience for 64% of participants and 87% report an improved opinion of EVs. Trailing surveys 6 months or more after events have yielded a 33% response rate and 17% of respondents indicate they acquired an EV after the event. Due to the COVID-19 pandemic, ride & drive events have been paused. As a result, staff developed a suite of virtual EV engagement pilot programs that replaced the in-person ride & drive events. Staff evaluated these pilots in January 2021 and phased out some due to low uptake and to prioritize limited funding for the most successful programs – Virtual EV Forums & EV Rental Rebate. The Virtual EV Forums in partnership with large San Mateo County employers continued through the end of FY20-
21. Four EV Forums were held. The EV Rental Rebate is all that currently remains.
Status: The EV Rental Rebate, which offers a rebate up to $200 on the rental of an EV, has issued 174 rebates as of May 31, 2022. Staff sent surveys to participants 6 months after the rental and of 34 respondents, 8 of them (8%) have purchased an EV since the rental. Most of the FY21-22 EV Ride & Drive/Engagement budget will be dedicated to the EV Rental Rebate. Staff has considered re-starting ride & drive events again this year, however the vehicle supply shortage also means dealership do not have cars available for ride & drive events and thus it is not feasible to re-start the program again at this time.
This program is being wound down due to low utilization at this time. 742
Item No. 19
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation towards majority adoption
4.4. E-Bikes for Everyone Rebate Program
Background: The Board initially approved the income-qualified E-Bikes Rebate program in July 2020 with a budget of $300,000 and approved an increase of an additional $300,000 in December 2022, bringing the total program budget to $600,000. The first phase of the program launched in May 2021 and sold out immediately and provided 276 rebates. The second phase will occur in spring 2022is currently underway and will provide approximately 320 rebates. The program is available to residents with low to moderate incomes. Silicon Valley Bicycle Coalition is under contract to Peninsula Clean Energy as an outreach and promotional partner and local bike shops are under contract to provide the rebate as a point-of-sale discount to customers. Enrolled bike shops include Summit Bicycles, Mike’s Bikes, Sports Basement, Chain Reaction, Woodside Bike Shop, and E-Bix Annex.
Status: The second round of the program will open for applications on May 16 with a lottery occurring in early June to award rebatesis currently underway. 150+ e-bikes have already been purchased. The new round utilizes more targeted outreach with community partners and a lottery method for awarding incentives rather than the first-come, first-served method used in the previous round. Staff are requesting $150,000 to provide rebates to the 150 customers on the waiting list at this Board meeting.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities
4.5. Municipal Fleet Program
Background: The Board approved the Municipal Fleet Program in November 2020. This program will run for three years with a total budget of $900,000 and is comprised of three components to help local agencies begin their fleet electrification efforts: hands-on technical assistance and resources, gap funding, and a vehicle to building resiliency 743
Item No. 19
demonstration that will assess the costs and benefits of utilizing fleet EVs as backup power resources for agencies in grid failures and other emergencies.
Status: Staff have selected a consulting team and expects the contract to be brought to this bringing the contract to thise Board shortly meeting for approval and for expects the program to become available in fall by mid-2022. A workshop will be held in the fall to promote the program and recruit local agency fleet managers.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings • Key Tactic 2: Bolster electrification of fleets and shared transportation • Key Tactic 5: Support local government initiatives to advance decarbonization Objective C: Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact
• Key Tactic 1: Identify, pilot, and develop innovative solutions for decarbonization
4.6. Transportation Pilots
Ride-Hail Electrification Pilot
Background: This pilot, approved by the Board in March 2020, is Peninsula Clean Energy’s first program for the electrification of new mobility options. The project partners with Lyft and FlexDrive, its rental-car partner, to test strategies that encourage the adoption of all-electric vehicles in ride-hailing applications with up to 100 EVs. Because ride-hail vehicles drive much higher than average miles per year, each vehicle in this electrification pilot is expected to save over 2,000 gallons of gas and 20 tons of greenhouse gas emissions per year.
Status: The 100 EV fleet has been put into service by Lyft. 133 unique drivers have already rented them, with each rental averaging over a month. 700,000+ all electric miles have been driven so far with an average of 120 miles/day per vehicle, comparable to gas counterparts. Vehicles include a customer-facing placard that informs riders about the pilot and directs them to the PCE website for more information. PCE staff are finalizing specific data transfer logistics to evaluate performance.
EV Managed Charging Pilot
Background: Peninsula Clean Energy aims to facilitate EV charging that avoids expensive and polluting evening hours through “managed charging” systems. This work is in the second phase of a pilot. In 2020, Peninsula Clean Energy ran a proof-of-concept pilot for EV managed charging with startup FlexCharging to test timing of EV charging through vehicle-based telematics. This was a limited pilot with approximately 10 vehicles. 744
Item No. 19
The system utilizes existing Connected Car Apps and allows Peninsula Clean Energy to manage EV charging via algorithms as a non-hardware-based approach to shift more charging to occur during off-peak hours. The pilot is moving to Phase 2 intended for a larger set of 1,000 to 2,000 vehicles. In October of 2021, the Board approved a contract up to $220,000 with the University of California, Davis’ Davis Energy Economics Program (DEEP) to develop and advise on an incentive structure experiment that will be used to inform the Peninsula Clean Energy managed charging program design. This collaboration has been ongoing.
Status: Staff released an RFP for the telematics-based platform for the Phase 2 pilot and are currently finalizing contract negotiations. The contract for the recommended winner will be brought to the Board for approval shortly. A Technical Advisory Committee, consisting of staff from CEC, CPUC, CCAs, and NGOs, is also informing the pilot and held its first meeting mid-February. The pilot is temporarily delayed to allow staff to focus on near-term priorities, though the contract is expected to be brought to the Board in the fall with a launch in early 2023.
Strategic Plan:
Goal 3 – Community Energy Programs
Community Benefits: Deliver tangible benefits throughout our diverse communities Key Tactic 1: Invest in programs that benefit underserved communities Innovation and Scale: Leverage leadership, innovation and regulatory action for scaled impact
Key Tactic 1. Identify, pilot, and develop innovative solutions for decarbonization Pilot and scale EV load shaping programs to ensure that 50% of energy for EV charging takes places in non-peak hours
5. 2035 Decarbonization Feasibility and Plan
Background: In September 2021 the Board adopted a resolution accelerating its goal of reaching carbon neutrality from 2045 to 2035 as follows “Direct Peninsula Clean Energy to adopt a goal of 100% greenhouse gas free by 2035 and direct staff to return with a plan for achieving that goal.” A Board sub-committee was established including Chair DeGolia and directors Pine, Aalfs, Nash, Parmer-Lohan to oversee the project. The schedule is as follows:
Q1: Schedule, scope, market conditions analysis
Q2: Segments, costs, and finance options
Q3: PCE investment, finance, marketing, roadmap
Sept. Retreat: Present draft analysis & plan
Q4: Confirm and align budget forecast and finalize plan 745
Item No. 19
The final deliverable is to be a slide deck for the retreat and potentially a white paper to follow. In addition, Peninsula Clean Energy’s primary scope for decarbonization was approved:
• Transportation: private passenger vehicles, local government and local commercial fleets, ride-hailing, alternative mobility
• Buildings: single-family and small multi-family residential, office, small commercial It is envisioned that Peninsula Clean Energy may engage beyond these segments on a limited basis.
Status: Development of the plan is ongoing. The first major deliverable “Market Conditions” analyzes the expected economic, technological and policy conditions anticipated from now through 2035 and includes a “business as usual” projection of decarbonization efforts which can be reasonably expected to occur without Peninsula Clean Energy intervention. This deliverable was presented to the Board sub-committee in April. The second major deliverable – “Segments and Costs” is nearly complete with a few data points still outstanding. We are beginning work on the “Financing Options” and Investment Plan components of the effort.
An Advisory Committee was formed including former CEC and CPUC commissioners, national lab directors, senior practitioners, and local government staff and met June 6th and is scheduled to meet again on July 19th. The session yielded substantive discussion including a number of key questions on rates, equity and other considerations. Advisory Committee participants were:
Jeff Aalfs Board of Directors, Peninsula Clean Energy
Diane Bailey Executive Director, Menlo Spark
Jeff Byron Former CEC Commissioner
Andrea Chow Sustainability Analyst, City of San Mateo
Pierre Del Forge Clean Buildings Director, NRDC
Cisco Devries CEO, OhmConnect
Adrienne Etherton Sustainability Manager, City of Brisbane Laura Feinstein Sustainability Policy Director, SPUR
Zach Franklin Chief Strategy Officer, GRID Alternatives Matt Golden CEO, Recurve
Ortensia Lopez Executive Director, El Concilio
Loren McDonald EV Industry Analyst, EVAdoption.com
Joshua Pierce EVP, Richard Heath and Associates
Mary Anne Piette Division Director, Lawrence Berkeley National Lab James Russell Energy Transition Director, CLEAResult
Nancy Ryan Former CPUC Commissioner
Justin Zuganis Director of Decarbonization, Silicon Valley Clean Energy Strategic Plan:
Goal 3 – Community Energy Programs
746
Item No. 19
Decarbonization Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings
Innovation and Scale: Leverage leadership, innovation and regulatory action for scaled impact
Key Tactic 1. Identify, pilot, and develop innovative solutions for decarbonization Develop strategy for supporting decarbonization by 2035 (updated 2022) 747
Item No. 20
1 PENINSULA CLEAN ENERGY
JPA Board Correspondence
DATE: July 15, 2022
BOARD MEETING DATE: July 28, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer
SUBJECT: Energy Supply Procurement Report – July 2022
BACKGROUND
This memo summarizes energy procurement agreements entered into by the Chief Executive Officer since the last regular Board meeting in June. This summary is provided to the Board for information purposes only.
DISCUSSION
Execution
Month Purpose Counterparty Term
May Purchase of Resource Adequacy City of Palo Alto 11 Months June Purchase of Resource Adequacy Shell Energy North America (US), L.P. 9 Months
June Purchase of Resource Adequacy Shell Energy North America (US), L.P. 5 Months
June Sale of Resource Adequacy Shell Energy North America (US), L.P. 5 Months
July Purchase of Resource Adequacy
California Choice Energy
Authority 1 Month
June Purchase of Energy Hedge TransAlta Energy Marketing (U.S.) Inc. 3 Months
June Purchase of Energy Hedge Calpine Energy Services, L.P. 1 Year June Purchase of Energy Hedge Morgan Stanley Capital Group Inc. 9 Months
In January 2020, the Board approved the following Policy Number 15 – Energy Supply Procurement Authority.
748
Item No. 20
2 Policy: “Energy Procurement” shall mean all contracting for energy and energy-related products for PCE, including but not limited to products related to electricity, capacity, energy efficiency, distributed energy resources, demand response, and storage. In Energy Procurement, Peninsula Clean Energy Authority will procure according to the following guidelines:
1) Short-Term Agreements:
a. Chief Executive Officer has authority to approve Energy Procurement contracts with terms of twelve (12) months or less, in addition to contracts for Resource Adequacy that meet the specifications in section (b) and in Table 1 below. b. Chief Executive Officer has authority to approve Energy Procurement contracts for Resource Adequacy that meet PCE’s three (3) year forward capacity obligations measured in MW, which are set annually by the California Public Utilities Commission and the California Independent System Operator for compliance requirements.
Table 1:
c. Chief Financial Officer has authority to approve any contract for Resource Adequacy with a term of twelve (12) months or less if the CEO is unavailable and with prior written approval from the CEO.
d. The CEO shall report all such agreements to the PCE board monthly. 2) Medium-Term Agreements: Chief Executive Officer, in consultation with the General Counsel, the Board Chair, and other members of the Board as CEO deems necessary, has the authority to approve Energy Procurement contracts with terms greater than twelve (12) months but not more than five (5) years, in addition to Resource Adequacy contracts as specified in Table 1 above. The CEO shall report all such agreements to the PCE board monthly.
3) Intermediate and Long-Term Agreements: Approval by the PCE Board is required before the CEO enters into Energy Procurement contracts with terms greater than five (5) years. 4) Amendments to Agreements: Chief Executive Officer, in consultation with the General Counsel and the Board Chair, or Board Vice Chair in the event that the Board Chair is Product Year-Ahead Compliance
Obligation
Term Limit
Local Resource
Adequacy
In years 1 & 2, must demonstrate
capacity to meet 100% of monthly
local obligation for years 1 and 2
and 50% of monthly local obligation
for year 3 by November 31st of the
prior year
Up to 36 months
System Resource
Adequacy
In year 1, must demonstrate
capacity to meet 90% of system
obligation for summer months (May
– September) by November 31st of
the prior year
Up to 12 months
Flexible Resource
Adequacy
In year 1, must demonstrate
capacity to meet 90% of monthly
flexible obligation by November 31st
of the prior year
Up to 12 months
749
Item No. 20
3 unavailable, has authority to execute amendments to Energy Procurement contracts that were previously approved by the Board.
STRATEGIC PLAN
The contracts executed in November support the Power Resources Objective A for Low Cost and Stable Power: Develop and implement power supply strategies to procure low-cost, reliable power. 750
COMMONLY USED ACRONYMS AND KEY TERMS
AB xx – Assembly Bill xx
ALJ – Administrative Law Judge
AMP- Arrears Management Plans
AQM – Air Quality Management
BAAQMD – Bay Area Air Quality Management District
BLPTA – Buyer Liability Pass Through Agreement
CAC – Citizens Advisory Committee
CAISO – California Independent System Operator
CalCCA – California Community Choice Association
CAM – Cost Allocation Mechanism
CAP – Climate Action Plan
CAPP – California Arrearage Payment Program
CARB – California Air Resources Board, or California ARB CARE- California Alternative Rates for Energy Program
CBA – California Balancing Authority
3CE- Central Coast Community Energy (Formerly Monterey Bay Community Power-MBCP) CCA – Community Choice Aggregation (aka Community Choice Programs (CCP) or CCE – Community Choice Energy (CCE)
CCP – Community Choice Programs
CEC – California Energy Commission
CPP- Critical Peak Pricing
CPSF – Clean Power San Francisco
CPUC – California Public Utility Commission (Regulator for state utilities) (Also PUC) CSD – California Department of Community Services and Development CSGT - Community Solar Green Tariff
DA – Direct Access
DAC-GT - Disadvantaged Communities Green Tariff
DER – Distributed Energy Resources
DG – Distributed Generation
DOE – Department of Energy
DR – Demand Response
DRP – Demand Response Provider
DRP/IDER – Distribution Resources Planning / Integrated Distributed Energy Resources EBCE – East Bay Community Energy
ECOplus – PCE’s default electricity product, 50% renewable and 50% carbon-free (in 2021) ECO100 – PCE’s 100% renewable energy product
EDR – Economic Development Rate
EE – Energy Efficiency
EEI – Edison Electric Institute; Standard contract to procure energy & RA EIR – Environmental Impact Report
ELCC – Effective Load Carrying Capability
ESP – Electric Service Provider
751
ESS – Energy Storage Systems
ESSA – Energy Storage Services Agreement
ERRA – Energy Resource Recovery Account
EV – Electric Vehicle
EVSE – Electric Vehicle Supply Equipment (Charging Station) FERA- Family Electric Rate Assistance Program
FERC – Federal Energy Regulatory Commission
FFS – Franchise Fee Surcharge
GHG – Greenhouse gas
GHG-Free – Greenhouse gas free
GTSR – Green Tariff Shared Renewables
GWh – Gigawatt Hours (Energy) = 1000 MWh
IDER – Integrated Distributed Energy Resources
IOU – Investor-Owned Utility (e.g. PG&E, SCE, SDG&E)
IRP – Integrated Resource Plan
IVR – Interactive Voice Response
ITC – Investment Tax Credit (it’s a solar tax credit)
JCC – Joint Cost Comparison
JPA – Joint Powers Authority
JRC – Joint Rate Comparison
JRM – Joint Rate Mailer
kW – kilowatt (Power)
kWh – Kilowatt-hour (Energy)
LDS – Long Duration Storage
LDES – Long Duration Energy Storage
LIHEAP- Low Income Home Energy Assistance Program
Load Shaping – changing when grid energy is used
LSE – Load Serving Entity
MCE – Marin Clean Energy
Methane Gas - formerly known as ‘natural gas’
Microgrid – building or community energy system
MW – Megawatt (Power) = 1000 kW
MWh – Megawatt-hour (Energy) = 1000 kWh
MUD – Multi-unit Dwelling
NBCs – non-bypassable charges
NEM – Net Energy Metering
NERC – North American Electric Reliability Corporation
NDA – Non-Disclosure Agreement
NG – Natural Gas
OBF – On-bill Financing
OBR – On-bill Repayment
OES – Office of Emergency Services
OIR – Order Instituting Rulemaking
PACE – Property Assessed Clean Energy
PCC – Portfolio Content Category (aka “buckets”) – categories for RPS compliance PCC1 – Portfolio Content Category 1 REC (also called bucket 1 REC) PCC2 – Portfolio Content Category 2 REC (also called bucket 2 REC) PCC3 – Portfolio Content Category 3 REC (also called bucket 3 REC or unbundled REC) 752
PCE – Peninsula Clean Energy Authority
PCIA – Power Charge Indifference Adjustment
PCL – Power Content Label
PLA – Project Labor Agreement
POU – Publicly Owned Utility
PPA – Power Purchase Agreement
PPSA – Project Participation Share Agreement (CC Power) PSPS – Public Safety Power Shutoff
PV – Photovoltaics (solar panels)
RA – Resource Adequacy
RE – Renewable Energy
REC – Renewable Energy Credit/Certificate
RICAPS - Regionally Integrated Climate Action Planning Suite RPS – California Renewable Portfolio Standard
SB xx – Senate Bill xx
SCP – Sonoma Clean Power
SJCE – San Jose Clean Energy
SJVAPCD - San Joaquin Valley Air Pollution Control District SMD – Share My Data, interval meter data
SQMD – Settlement Quality Meter Data
SVCE – Silicon Valley Clean Energy
TEF – Transportation Electrification Framework (CPUC Proceeding) TNCs – Transportation Network Companies (ridesharing companies) TOB – Tariff on Bill
TOU RATES – Time of Use Rates
VGI – Vehicle-Grid Integration
V2G – Vehicle-to-Grid
VPP – Virtual Power Plant
WECC – Western Energy Coordinating Council
WREGIS – Western Renewable Energy Generation Information System WSPP – Western Systems Power Pool; standard contract to procure energy and RA 753