Executive Committee Meeting
April 10, 2023
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items
o Public Comment
• Regular Agenda
• Committee Members Reports
• Adjourn
Chair Report
Item 2
CEO Report
Item 3
Peninsula Clean Energy
Welcome!
• Gwen Rose, Director of Marketing and Community Relations, started March 20 • Catherine Hansen, Human Relations Manager, started March 29 5 Peninsula Clean Energy
Open Positions
Currently posted:
oChief Executive Officer
oPower Resources Analyst / Specialist
6 Peninsula Clean Energy
CalCCA Annual Conference
• “Powered by Community”
• May 17-19 in San Diego, CA
o May 19 elected officials luncheon
• Board Members are encouraged to attend; please let Nelly know of your interest in attending
7 Strategic Plan, Policies #9
and #10 Proposed Edits
Peninsula Clean Energy
Agenda
• Background: DEAI Scope of Work
• Proposed edits to Strategic Plan
• Proposed edits to Policy #9
• Proposed edits to Policy #10
9 Peninsula Clean Energy
DEAI Scope of Work
1. Review Relevant DEAI Legislation and Regulatory
Requirements (complete)
2. Conduct DEAI organizational needs assessment (complete)
3. Create organizational DEAI Policy (complete)
4. Update relevant organizational policies (in progress)
5. DEAI Action Plan: departmental goals and metrics to
operationalize DEAI (in progress)
10 Peninsula Clean Energy
Proposed Edits to Strategic Plan
11 Proposing edits to Organizational Excellence pillar:
• Current: Ensure organizational excellence by adhering to sustainable business practices and fostering a workplace culture of innovation, diversity, transparency, and integrity.
• Proposed Change: Ensure organizational excellence by adhering to sustainable business practices and fostering a workplace culture of innovation, diversity, equity, accessibility, inclusion, transparency, and integrity.
Peninsula Clean Energy
Proposed Edits to Policy #9
• Policy originally approved November 17, 2016
• Current title: Ethical Vendor Standards
• Proposed new title: Ethical Procurement Standards
• Focus of policy had broadened to include staff’s procurement conduct • Borrowed from San Mateo County Code of Ethical Conduct:
Procurement Ethics
12 Peninsula Clean Energy
Proposed Edits to Policy #9 Continued
• Proposed revised policy has the addition of the following sections:
o Sustainability and Social Responsibility
o Transparency
o Confidentiality
o Impartiality
o Professionalism
o Compliance
o Accountability
13 Peninsula Clean Energy
Proposed Edits to Policy #10
• Policy originally approved December 15, 2016, updated October 25, 2018
• Updated formatting for easier policy navigation
• Reformatting of and additions to Policy Statement under Section 1 • Revisions to Section 2b: Supply Chain:
o Revised Item 4: request info on diverse business ownership o Revised Item 6: encourage reporting on inclusivity in business staff o Added Item 7, Supply Chain Code of Conduct
14 Peninsula Clean Energy
Attachment A: Supply Chain Code of Conduct
• Derived from principles of UN, International Labour Organization (ILO), solar and business social responsibility organizations
• Sections:
o Freely Chosen Employment
o Young Workers
o Working Hours
o Wages and Benefits
o Humane Treatment
o Non-Discrimination/Non-Harassment
o Freedom of Association
o Restricted Jurisdictions
15 Peninsula Clean Energy
Proposed Edits to Policy #10 Cont.
• Addition of the City of Los Banos/Merced County/Central Valley:
o In Section 2c: Inclusive Business Practices
o When defining ”local” in Section 3b: Sustainable Workforce Objectives • Modification of “shall use” to “shall use best efforts to use” in second to last sentence of Section 3d
• Modification of apprenticeship requirement from 20% to 25% in Section 3d
16 Peninsula Clean Energy
Proposed Edits to Policy #10 Cont.
• Removal of entire section/paragraph on PCE Feed-In Tariff Price Projects
• Renaming Section 3e to Peninsula Clean Energy Programs, updating rest of this section to reference energy programs
• Removal of the language “including proper assignment of work to crafts that traditionally perform the work” from Section 3e 17 Peninsula Clean Energy
Meetings with Labor, January 25th and March 6th
• Peninsula Clean Energy staff met with labor to discuss proposed edits to Section 3d of Policy #10
• Outcomes of first meeting with labor:
1. Peninsula Clean Energy staff proposed retaining the proposed edits for “shall use best efforts” language to present to EC for their guidance and consideration.
2. Conduct further research on the IRA’s apprenticeship requirements to receive full tax credits
• Met again on 3/6, Labor reiterated concerns with proposed revision 18 Peninsula Clean Energy
IRA Apprenticeship Requirements
• Described in IRS Notice 2022-61
• Different kinds of apprenticeship requirements:
1. Apprenticeship Labor Hour Requirements
2. Apprenticeship Ratio Requirements
3. Apprenticeship Participation Requirements
19 Peninsula Clean Energy
Recommendation
Recommend Approval to the Board of Directors of Diversity, Equity, Accessibility, and Inclusion (DEAI)- Related Amendments to the Strategic Plan and Policy #9 and #10
20 PCE Strategic Plan (2020-2025)
Mid-Point Update for FY and CY 2023
Executive Committee Presentation
April 10, 2023
Peninsula Clean Energy
Recap of Adjustments Since Sept 2022
22 1. Introduced new color-coded dashboard for quick progress view
2. Updated PCE's 24/7 Strategic Goal to now read: Deliver 100% renewable energy annually on a 99% time-coincident basis by 2025.
3. Added separate section for Account Services, which had previously been embedded within Marketing and Community Relations.
4. Revised targets for Energy Programs to reflect market challenges through the pandemic and a more realistic trajectory.
5. Changed language in 2035 Decarb goal to "member jurisdictions" rather than San Mateo County to be inclusive of Los Banos.
On target
Challenges exist
At risk
Peninsula Clean Energy
Our Top Strategic Priorities
23 1. Deliver 100% renewable energy annually on a 99% time-coincident basis by 2025.
a) Language updated at November 2022 Board meeting
2. Contribute to Peninsula Clean Energy member jurisdictions reaching the state’s goal to be 100% greenhouse gas free for transportation and buildings by 2035.
a) Recommended clarification on the decarb goal to accurately reflect State deadline: Contribute to Peninsula Clean Energy member jurisdictions reaching the State's 2045 goal to be 100% greenhouse gas free for transportation and buildings by 2035.
These primary organizational goals are augmented by other Strategic Plan goals that tie to the core functions and operations of Peninsula Clean Energy.
Add image
of SP cover
here
Peninsula Clean Energy
Organizational Priorities
24 Key Performance Indicators (Measured on CY)
2019 Baseline 2020 2021 2022 2025 Target
100% Renewable on 99% Time-Coincident47.0% 47.0% 49.2% 52.4% 100% 2035 Decarbonization
(MMT GHG reduced)
3,800 14,300 23,100 27,500 See Below*
On target
Challenges exist
At risk
*Peninsula Clean Energy has a 2035 decarbonization target only. Total San Mateo County emissions inventoried in 2019 were 4.1 million MT GHG of which 3.2 million MT GHG are in buildings and transportation. Decarbonization figures for each year are the estimated reductions resulting from PCE programs on a cumulative basis through that year.
Peninsula Clean Energy
Power Resources Update
25 Key Performance Indicators (Measured on CY)
2019
Baseline
2020 2021 2022
(Est.)
2023
(Est.)
2025
Target
EcoPlus Annual Renewable Content (%) 52% 51.7% 49.2% 52.4% 53.0% 100% EcoPlus Emissions Factor (lbs. / MWh) 102 13 5 9 13 16
Eco100 Annual Renewable Content (%) 100% 100% 100% 100% 100% 100% Eco100 Emissions Factor (lbs. / MWh) 0 0 0 0 0 0
New Peninsula Clean Energy Capacity
Statewide (% of load served by new
resources)
0 16% 24% 24% 33% 50%
On target
Challenges exist
At risk
Peninsula Clean Energy
Power Resources: Strategic Plan Goals/Objectives
STRATEGIC PLAN GOALS
1. Deliver 100% renewable energy annually on a 99% time-coincident basis by 2025.
2. Secure sufficient, low cost, clean sources of electricity that achieve Peninsula Clean Energy’s priorities while ensuring reliability and meeting regulatory mandates.
OBJECTIVES
1. Planning: Develop strategies to achieve a reliable power portfolio to meet 100% renewable on a 24 x 7 basis for 2025 and beyond
2. Procurement: Procure power resources to meet regulatory mandates and internal priorities at affordable cost
3. Operations: Manage power portfolio to ensure performance consistent with contractual requirements, regulatory compliance, and internal strategies
4. Innovation & Market Development: Provide a model of leadership for procuring energy resources for a clean energy future
26 *CA RPS eligible resources except Biomass
Peninsula Clean Energy
Power Resources: Mid-Year Highlights
• Published White Paper Part 2: Achieving 24/7 Renewable Energy by 2025 • Executed 5 PPAs:
o Nova Stand Alone Storage – 50 MW
o Whitegrass 2 Geothermal – 6 MW
o Burney Creek Small Hydro – 3 MW
o Buena Vista Wind (Extension) - 38 MW
o CalWind Wind Resource - 19 MW
• Added 3 staff (1 Director & 2 Power Resources Managers); in the process of hiring 3 more specialists
• Developing updated Energy Risk Management Policy
27 Peninsula Clean Energy
Power Resources: Challenges
• Difficulties finding quality and cost-effective renewable projects with in-service dates prior to 2026
o High demand for new projects created by CPUC's MTR procurement orders o Low supply due to lengthy interconnection process and supply chain disruption o Out-of-state projects require new transmission build-out and import capacity o Baseload renewable and long-duration storage resources are extremely limited • Elevated market prices across the board for all market products:
o Forward Energy Hedges
o Resource Adequacy (RA)
o PCC-1 Renewable Product
28 Peninsula Clean Energy
Community Energy Programs Update
29 Key Performance Indicators (Measured on CY)
2019 Baseline 2020 2021 2022 2023 YTD
As of 3/28
2025 Target
(revised)
Transportation: GHG Reductions
(MT) 2,000 8,200 14,800 18,600 21,300 83,000
(was 120,000)
Buildings: GHG Reductions (MT) 1,800 6,100 8,000 8,900 9,200 9,800 (was 12,100)
EV charging ports installed (#) 0 13 146 348 447* 3,500 (was 6,200)
Electric appliances installed (#) 0 0 219 616 883 1,800 (was 2,800)
Local Resources (MW) 0 1.47 4.26 5.54 5.54 20
Funds for Low Income 11% 47% 19% 43% 29% 20%
1. 2025 targets were updated in September 2022
2. All figures cumulative except Funds for Low Income
3. Overall County GHGs when last inventoried in 2019 were 4,100,000 MT
4. GHG measures reflect projected future average annual reductions of actions taken that year (ex:
adopted reach codes, charging installed, EVs acquired, etc.)
5. 2021 year electric appliances count updated to reflect addl. units not previously accounted for including electric panels
* EV Charging ports in pipeline: 3,200
Check on color for
local resources
Peninsula Clean Energy
Energy Programs: Strategic Plan Goals/Objectives
STRATEGIC PLAN GOALS
1. Contribute to Peninsula Clean Energy member jurisdictions reaching a goal to be 100% greenhouse gas free for transportation and buildings by 2035. [update this]
2. Implement robust energy programs that reduce GHG emissions, align energy supply and demand, and provide benefits across the community.
OBJECTIVES
1. Signature Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings
2. Distributed Energy Resources: Support strategic decarbonization and local power development
3. Community Benefits: Deliver tangible benefits throughout our diverse communities
4. Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact 30 Peninsula Clean Energy
Energy Programs: Mid-Year Highlights (1 of 2)
31 EV Charging Ports
In Progress
Technical Assistance: 1,500
Funds Reserved: 1,700
Install Complete: 447 (Goal: 3,500)
Electric Appliances
Completed
Additional Metrics
• Avg. 14 new PCE rebate applications/month
• Avg. L1 project costs 7.5x cheaper than PG&E installs ($2.5k) • Avg. L2 project costs 2.5x cheaper than PG&E installs ($7.5k) Peninsula Clean Energy
Energy Programs: Mid-Year Highlights (2 of 2)
Solar and Storage on Government Buildings
• Round 1
o 12 facilities in progress, 1.7 MW solar
o $17 million in lifetime savings
o Construction completion expected CYQ1 2024
• Round 2
o 120 sites assessed, ~46 sites qualify
o Interconnection applications submitted for more favorable NEM 2 rules o Projected size 6-14 MW
o Construction completion expected CYQ4 2024
32 Peninsula Clean Energy
Marketing & Community Relations Update
33 2020 Baseline 2021 2022 2023 YTD 2025 Target
Participation Rate (as of FY end)1 97% 97% 97% 97% 97%
PCE Aided Awareness 34% 31%2 39%4 Survey in May '23 60% PCE Favorability3 63% 61%2 57%4 Survey in May '23 80%
Residential & SMB Engagement1 Med/Low Med/Low Med/Low Med/Low High
1. Shared responsibility with Account Services team
2. Given sample size in 2021, this is statistically equivalent to the 2020 baseline
3. Of those who are aware of Peninsula Clean Energy
4. Statistically different from 2020 baseline
On target
Challenges exist
At risk
Peninsula Clean Energy
Marketing/Outreach: Strategic Plan Goals/Objectives
STRATEGIC PLAN GOAL
Develop a strong brand reputation that drives participation in Peninsula Clean Energy’s programs and ensures customer satisfaction and retention
OBJECTIVES
1. Brand Reputation: Elevate Peninsula Clean Energy’s brand reputation as a trusted leader in the community and the industry.
2. Engagement: Educate and engage stakeholders in order to gather input, inspire action, and drive program participation
34 Peninsula Clean Energy
Marketing/Outreach: Mid-Year Highlights
Brand Reputation
• Achieving 24/7 Renewable Energy white paper
published
• PR results: 7 articles (including Bloomberg, S&P
Global, San Mateo Daily Journal) and 3
podcasts
• Thought leadership and interest from industry
leaders and decisionmakers (Canadian Ministry,
NREL)
Engagement - Community Relations
• 14 grants awarded and 2 new CBO partners in
Daly City and Los Banos
• Partnering with SMCOE on regional grant to
raise awareness of energy-related careers to
middle and high school students
Engagement - Marketing
• Testimonial photos and videos with 4 customers
• Promotional efforts drove 7,000 online visitors to
our all-electric content and 24,700 online
visitors to buildings, EVs and appliance program
pages.
35 Peninsula Clean Energy
Account Services Update
36 Key Performance Indicators (Measured on FY)
2020 Baseline 2021 2022 2023 YTD 2025 Target
Participation Rate (as of FY end)1 97% 97% 97% 97% 97%
Customer Data Access &
Analytics2
Low N/A Low/Med Med/Low High
External Partner Relations Med/High High High High High Key Account Engagement3 Low Low Med/Low Med/High High
Residential & SMB Engagement1 Med/Low Med/Low Med/Low Med High
1. Shared responsibility with Marketing and Community Relations
2. Incorporated Gas usage into Data Connect and expanded users
3. New Strategic Accounts Manager joined PCE in late 2022. Engagement has picked up in Q1 of 2023
On target
Challenges exist
At risk
Check on med/low
Peninsula Clean Energy
Account Services: Strategic Plan Goal/Objectives
STRATEGIC PLAN GOAL
Ensure high customer retention and satisfaction
OBJECTIVES
1. Customer Care: Ensure High Customer Retention and Satisfaction
2. Operational Excellence: Build and Maintain Strong Partner Relations
3. Customer Data: Improve Access to Energy Data and Analytics 37 Peninsula Clean Energy
Account Services: Mid-Year Highlights
• Los Banos enrollment has been completed with final round of NEM customers transitioning in December 2022
• Gas usage data is being imported to Data Connect to provide a complete energy use profile for users
• Increased engagement with Key Accounts, executing new long term service agreements and re-enrolling targeted accounts in PCE service
38 Peninsula Clean Energy
Account Services: Recommended Amendments
Add Operational Excellence, and Customer Data objectives to Account Services as its own functional area
o Operational Excellence: Build and Maintain Strong Partner Relations o Customer Data: Improve Access to Energy Data and Analytics 39 Peninsula Clean Energy
Public Policy Update
40 Key Performance Indicators (Measured on FY)
2020 Baseline 2021 2022 2023 YTD 2025 Target
PCIA Containment Low Low Challenges On Target See Below Legislative Impact Medium Medium Challenges Challenges / On Target
See Below
Regulatory Impact High High On Target On Target See Below Coalition Building Low Medium On Target On Target See Below Fostering CCA Growth Medium Medium Challenges /
On Target
Challenges/
On Target
See Below
Regarding 2025 Targets
1) PCIA Containment: PCE staff interprets this goal as an objective to minimize PCIA-related costs applicable to PCE customers by 2025. With that said, PCIA costs applicable to PCE’s customers will remain long past 2025 and are expected to persist into the 2040s. 2) Legislative Impact: PCE staff interprets this goal as having a high level of influence with our local representatives and CalCCA’s legislative efforts, such that our efforts result in overall positive legislative outcomes in Sacramento. 3) Regulatory Impact: PCE staff interprets this goal as taking the steps necessary to enable the organizations programmatic and procurement objectives by 2025. 4) Coalition Building: PCE staff interprets this goal as having strong local, state and regional relationships to leverage our knowledge and influence towards positive outcomes.
5) Fostering CCA Growth: PCE staff recognizes that CCA growth has slowed in recent years. We believe this goal should be revisited.
Peninsula Clean Energy
Public Policy: Strategic Plan Goal/Objectives
STRATEGIC PLAN GOAL
Strongly advocate for public policies that advance Peninsula Clean Energy’s organizational priorities.
OBJECTIVES
1. Regulatory: Educate and engage policymakers to develop policies that support Peninsula Clean Energy’s organizational priorities
2. Legislative: Engage state legislators to pass legislation that advances Peninsula Clean Energy’s organizational priorities and defeat legislation that would hinder Peninsula Clean Energy’s organizational priorities and operations.
3. Growth of CCA/Expansion: Take a leadership position in supporting the growth of community energy and CCAs in California
41 Peninsula Clean Energy
Public Policy: Mid-Year Highlights
1. PCE is sponsoring our first bill in legislature
2. PCE engagement is shaping IRP/RA reform to better align with our 24/7 objective
3. Further expansion of DAC-GT program to serve more low income customers
4. Shifting oversight of regulatory compliance into regulatory policy department 42 Peninsula Clean Energy
Public Policy: Recommended Amendments
1. Amend Objective A. "Regulatory" to include an additional Key Tactic:
KT3. Ensure timely compliance with all applicable regulatory reporting obligations.
2. Amend Objective C: “Growth of Community Energy and CCAs” to include new Key Tactic KT4: Track regulatory, statutory and market conditions affecting CCA expansion to take advantage of opportunities and engage in mitigating hurdles. 43 Peninsula Clean Energy
Financial Stewardship Update
44 Key Performance Indicators (Measured on FY)
2020 Baseline 2021 2022 2023 YTD1 2025 Target
Days Cash On Hand
(Unrestricted)
238 257 201 219 231
Credit Rating (Fitch/Moody) BBB+/
Baa2
same BBB+/
Baa2 POS
BBB+/
Baa2 POS
single “A” level
Change in Net Position ($000s) $48,900 -$8,216 -$13,046 $47,0456 positive Investment Performance
(FRB/PFM)
2% -4.4%/-4.7%2 TBD TBD
Average Cost of Energy ($/MWh) $61.92 $59.04 $62.75 TBD $62.73
1. Key Performance Indicator results for FY 2022-2023 are based on un-audited mid-fiscal year performance – final results may change by fiscal year end.
2. Investment Performance results reported for each portfolio manager's holdings in FY 2021-22
On target
Challenges exist
At risk
Peninsula Clean Energy
Finance: Strategic Plan Goal/Objectives
STRATEGIC PLAN GOAL
Employ sound fiscal strategies to promote long-term organizational sustainability
OBJECTIVES
1. Fiscal Health: Strengthen and maintain Peninsula Clean Energy’s fiscal health
2. Financial Controls and Management: Implement financial controls and policies that meet or exceed best practices for leading not-for-profit organizations
3. Financial Stability: Practice strategies to ensure long-term financial sustainability 45 Peninsula Clean Energy
Finance: Mid-Year Highlights
1. FY 2022-2023 mid-year financial performance on track to produce healthy operating surplus
2. Continued conservative and prudent practice diversifying financial institution exposure
46 Peninsula Clean Energy
Organizational Excellence Update
47 Key Performance Indicators (Measured on FY)
2020 Baseline 2021 2022 2023 YTD 2025 Target
Staff Satisfaction High High On Target On Target See Below Innovation Impact High High On Target On Target See Below Technology & Systems High Med-High On Target On Target See Below Organizational Policies* High High On Target On target See Below Governance High High Challenges On Target See Below
*For external vendors and partners
Regarding 2025 Targets
1) Staff Satisfaction: PCE staff interprets this goal based on yearly surveys, assessment of employee satisfaction; evaluation of professional development and training efforts; evaluation of competitive benefits.
2) Innovation Impact: PCE staff interprets this goal as the assessment of the quality of technology, program design, and policy innovation developed by the organization and its impact towards the organization’s goals and the clean energy industry. 3) Technology & Systems: PCE staff interprets this goal as the assessment of quality and completeness of systems to support the organization’s work including for business processes, energy-related analysis, program impact evaluation and customer insights; evaluation of systems and practices that ensure data accuracy/privacy and security. 4) Organizational Policies: PCE staff interprets this goal as the assessment of progress toward implementation of key policies such as the Sustainable Workforce and Ethical Vendor Standards policies.
5) Governance: PCE staff interprets this goal as facilitating the succession process, providing high quality orientation materials, and eliciting broad support of the organization by new Board Members, Alternates, and Citizen Advisory Committee Members; incorporating DEAI policy when completed.
Peninsula Clean Energy
Org. Excellence: Strategic Plan Goal/Objectives
STRATEGIC PLAN GOAL
Ensure organizational excellence by adhering to sustainable business practices and fostering a workplace culture of innovation, diversity, transparency, and integrity
OBJECTIVES
1. Culture and People: Foster a workplace culture that attracts and develops exceptional and diverse talent and values all people
2. Innovation: Foster a culture of innovation to yield solutions that accelerate our mission
3. Data and Technology: Increase data analytics capability to enable energy-related analyses, program impact measures, and consumer insights for continuous improvement
4. External Vendor Policies: Implement vendor policies that embrace diversity and inclusion and that optimize engagement results
5. Governance: Follow best practices for governance and succession to engage and develop qualified, diverse Board Members and Citizens Advisory Committee Members 48 Peninsula Clean Energy
Organizational Excellence: Mid-Year Highlights
1. Completed adoption of PCE's first ever DEAI policy and preparation of a DEAI action plan and proposed amendments to the Strategic Plan and Policies 9 and 10.
2. New HR Manager hired and progress toward a centralized HR function for PCE.
3. Successful return to in-person Board and Committee meetings, including hybrid option for members of the public.
4. Successful completion of new Board member orientation.
5. Recruitment and on-boarding for 7 vacant/new staff positions since Sept 2022. 49 Committee Members’ Reports
Item 5