Executive Committee Meeting
August 14, 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 1
CEO Report
Item 2
Peninsula Clean Energy
Open Positions
Currently posted:
oChief Operating Officer
oChief Financial Officer/Director of Finance
and Administration
o Los Banos Community Relations Associate
Manager/Manager
oEnergy Programs Analyst or Senior Analyst
oRegulatory Specialist/Analyst
5 Peninsula Clean Energy
Surplus Funds Committee Update
6 • Committee met on August 9th and made good progress
• Organized potential allocations around 4 funding categories
1. Increase reserves/days cash on hand
2. Increase customer savings through additional rate discount or rebate
3. Additional funding for customer programs (resi/commerical/municipal)
4. Funding for PCE sponsored local power projects
o Also discussed potential for schools support
Next steps
o Meeting #3 right after Labor Day
o Consolidate committee ideas and continue discussions
Peninsula Clean Energy
Board Survey - Feedback
7 Energy Programs Overview
Executive Committee
Aug. 14, 2023
Peninsula Clean Energy
Strategic Objectives
Organizational Priority: Contribute to our region reaching its goal to be 100% greenhouse gas-free by 2035
Community Energy Programs: Implement robust energy programs that reduce greenhouse gas emissions, align energy supply and demand, and provide benefits across the community.
A. Decarbonization Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings
B. Distributed Energy Resources: Support decarbonization and local power development C. Community Benefits: Deliver tangible benefits throughout our diverse communities D. Innovation and Scale: Leverage leadership, innovation and regulatory action for scaled impact 9 Peninsula Clean Energy
2035 Analysis: PCE GHG Reduction Scope
• Primary Scope
o Transportation
o private passenger, local gov & small commercial fleets, o ride-hailing, alternative mobility
o Buildings
o residential (single family & small multifamily),
o Office (incl. local gov.), small commercial
• Not in scope, or limited* (others lead)
o Transportation: heavy-duty vehicles, off-road
o Buildings: industrial, large commercial*, large multifamily* o Non-energy: land-use, compost, stationary sources, landfills o Out of territory: SF airport
o Embedded carbon, climate adaptation, sequestration/restoration 10 Peninsula Clean Energy
How We Effect Change
Foster
Innovation
Energy,
Tech,
Methods,
Data
Shape
Policy
Reach
Codes,
CALGreen,
CPUC, etc.
Influence
Individual
Decisions
Incentives,
Technical
Assistance,
Persuasion
11 Peninsula Clean Energy
Programs Portfolio
12 *
* Low-income program + Includes low-income benefits
*
+
+
Peninsula Clean Energy
Achievements to-date #1
1. Appliances & Zero Percent Loans: over 1,000 installs o Good early market adoption, est. ~5% of annual installs o Loans very popular with contractors & customers, >$2M reserved since Oct. o 12,000 MT CO2 over 10 years
2. Electric Vehicle Charging: 500 ports to-date
o Innovation in “right-sized” charging, $4,400 ave per port (compared to PG&E $18k) o 2/3rds in multifamily, highest need segment
o 3,600 charge ports in pipeline
3. Solar on Public Facilities
o Round 1: 12 sites, 1.7 MW solar, CYQ1 2024, $17M lifetime savings o Round 2: ~30-40 sites, 5-6+ MW, RFP forthcoming
13 Peninsula Clean Energy
Achievements #2 – Underserved Communities
1. EV Rebates: 346 vehicles
o $3.6 million in savings over 10 years
o 18,000 MT CO2 over 10 years
2. Home Upgrade: 190 homes
o Home repairs plus electrification
o Target: ~300 homes
3. E-bikes for All: 650+ bikes
o “Getting exercise and saves on gas!”
o >20% report ebike is primary mode of transport
14 Peninsula Clean Energy
Innovation Pilots
1. EV Managed Charging
o Support grid: shift charging out of evening peak
o Major opportunity: 7 kWh/EV, current: 40,000, future: 600,000+ o Through the vehicles: telematics based
2. Electrification Guidelines @100A & 120V HPWH
o Advanced design guidelines (electrification without panel upgrades) o Lower install costs
3. Advanced home system pilot (Harvest Thermal)
o Major innovation, combined space & water heating, “grid aware” o 4 of 4 installs completed, data collection in progress o Average install cost $22-23,000
o 70-90% reduction in home emissions
15 Peninsula Clean Energy
Where we need to go
Customer-first
• Personal & custom
Data-driven
• Targeted insights
Scalable
• Online marketplaces & tools
16 New Development
2035 Decarbonization Plans
17 Peninsula Clean Energy
2035 Analysis: Recommendations
1. Flexible Incentives
o All measures, incl. prewiring and panels
o Broader building segments
o Integrated load shaping & solar+storage
options
2. High touch support
o Advanced “right-sizing” design
o One-stop shop, hotline assist, turnkey option
o Procurement aggregation to lower costs
o Greater contractor support
3. Links to Finance
o Specific linkages by customer segment
18 Peninsula Clean Energy
Vision Building Electrification v2
19 Scale to Whole Home Increase Homes Impacted per Year One-Stop Shop Services Live Technical Assistance Turnkey Services Peninsula Clean Energy
Residential Electrification – “BE v2”
20 Rebates
One-Stop Website Turnkey install option Finance Options Contractor
network
Info &
education
Why, how,
rebates, etc.
Appliance
marketplace
Energy
calculator
Retail
Partners
Load
Shaping
PV +
Storage
Bulk buy
Workforce
development
Pilot tech
PCE financing
Third-party
financing
Appliance
install
Emergency
loaner
Whole home
pre-wiring Bulk buy
Dev supply
chain
Brick &
mortar
presence
CPUC
FLEXmarket PCE rebates BayREN
rebates
IRA
rebates
CEC
rebates
Concierge
Program
navigation
Project
planning
Technical
guidance
“I want to choose”
(DIY or self-managed)
“Just get it done” &
“It’s an emergency”
"I cannot afford this"
(low income)
Peninsula Clean Energy
Call Center • Current Calpine Call Center is very limited o Only supports account inquiries and change o Every program has its own communication silo • To be proposed: In-house call center o Answer all inbound 800-line customer calls o Answer info@ and programs@ email • Robust customer service o Account status and billing (incl. NEM) o General advice on rate schedules, how to change o Program navigation, eligibility, incentive amounts o Incentive stacking information o Rebate status o Program recommendations (addl. svcs) o Referral to concierge and turnkey services 21 Peninsula Clean Energy
2023 2024 2025 2026
Building Electrification v2: Timeline
22 RFP Process Turnkey install and concierge program (including Home Upgrade v2) Jan
Inflation Reduction Act Incentives
State incentives
In-house Call Center
Develop one-stop
shop website v1
One-stop shop
website v2
One-stop shop
website v3
Peninsula Clean Energy
Additional Plans for 2024 (in approved budget)
• Solar and storage on public buildings: implement 2nd round • EV managed charging: from pilot to general program
• Residential solar and storage: replace existing program • Local government electrification: new program
23 Programs Budget
24 Peninsula Clean Energy
Approved Budget & 5-Year Forecast
25 *FLEXmarket revenues not shown
FY24 Budget FY25 FY26 FY27 FY28 5 Year Budget
Building Codes 276,000 250,000 250,000 250,000 250,000 1,276,000 Buildings 5,750,000 12,500,000 13,500,000 17,500,000 20,000,000 69,250,000 Transportation 6,030,000 7,960,000 10,251,000 10,323,600 10,403,460 44,968,060 Distributed Resources 500,000 1,060,000 1,360,000 1,860,000 1,860,000 6,640,000 Pilots & Grants 95,000 395,000 395,000 395,000 395,000 1,675,000 Totals $12,651,000 $22,165,000 $25,756,000 $ 30,328,600 $ 32,908,460 $123,809,060 Capital Programs (net)
On-Bill Finance 2,820,000 2,050,000 1,480,000 910,000 340,000 Public Solar 7,200,000 36,575,000 (18,423,000) (3,420,000) (3,415,000) Peninsula Clean Energy
Programs Budget Outcomes (partial)
26 Units Installed
to Date
FY24-28 Total
Budget
New Units GHG Saved,
New Units (MT)
Customer
savings/yr
EVs 353 $5,600,000 1,600 8,800 $2,100,000
EV charging 470 $34,000,000 9,000 103,000 $6,000,000
eBikes 600 $1,800,000 1,800 1,400 $700,000
Appliances 2,600 $28,500,000 14,000 15,000 $3,200,000
Low-Inc Home
Upgrade
227 $36,000,000 4,000 3,000 $300,000
Public Solar in-progress Capital budget 6+ MW n/a $2,600,000 Building Codes 21 adopted $1,276,000 TBD
• 20-30% of funds targeted for low-income
• Low-income specific programs: ebikes, Home Upgrade
• Programs providing low-income support: EV charging, electric vehicle incentives Local Government Building
Electrification Program
(GovBE)
Executive Committee – August 14, 2023
27 Peninsula Clean Energy
Program
Local government building electrification projects
Request
o Recommendation to Board for program approval
o Including $5-10m Revolving Loan fund
Budget Status
o Incentives included in approved FY24 budget, est. $500k - $2m per year 28 Recommendation
Peninsula Clean Energy
1. Local Governments context
2. Need for flexible incentives
3. Funding concepts
4. Proposed program
5. Cost examples
6. Timeline
7. Request
29 Agenda
Peninsula Clean Energy
Excerpt from Millbrae 2020 Climate Action Plan
Millbrae’s new all-electric rec center
Atherton
Burlingame
30 Goals to decarbonize government buildings
Peninsula Clean Energy 31
Merced County Library, Los Banos San Carlos Youth Center San Mateo Animal Shelter Menlo Park Burgess Pool
GovPV
GovPV
Local governments struggle to fund electrification
Peninsula Clean Energy
City hall
Government offices
Police stations
Fire stations
Animal shelters
Human health and services
Forensics labs
Community pools
Recreation centers
Youth centers
Locations for weddings
911 dispatch center
Juvenile hall
Prisons
Libraries
Lifeguard stations
Baseball fields
Tennis and pickleball courts
Corps yard
Airport
Parks and Recreation
Courthouse
Registrar of voters
Daycare center
A one-size-fits-all incentive does not work for
diverse portfolios with different building
systems types and thermal demands
32 Diverse portfolios need flexible incentives
Peninsula Clean Energy
Electrification Revolving Loan Fund
33 $5-10 million
seed funding
Governments install
electrification
equipment
PCE funds
projects
Governments
repay loan
Why local governments need
access to loans:
• Budgets are limited
• Individual projects are the wrong size for
one-off traditional finance/construction
contracts, such as Power Purchase
Agreements
• California Energy Commission loan is too
restrictive
• Gas replacement programs in the capital
improvement pipeline are typically under-funded to enable electrification Peninsula Clean Energy 34
Why local governments need
access to incentives:
• Electrification does not always have a
payback
• Governments cannot take out unlimited loans
• Cities have noted a need for a mix of both
loan and incentive options
Incentive Program
Peninsula Clean Energy
Examples of GHG savings and incentive sizes
County Building Example GHG Savings (MT CO2e/yr) Maximum Incentive Size Superintendent of Schools 172 $517,952
County office building 104 $313,952
Registrar of Voters 52 $155,952
Corp Yard 52 $155,392
Craft Shop 48 $143,696
Daycare Center 47 $140,432
EPA Gov Center 45 $136,800
Human Services 42 $125,808
Medical Clinic 37 $112,096
Vocational Rehab 36 $109,648
Parks and rec 32 $97,936
Women's Correctional 24 $73,248
Probation office 17 $50,000
Central library 16 $49,696
Homeless Shelter 14 $42,224
Youth Crisis Center 13 $39,664
Law Library 13 $39,520
Courthouse 12 $36,832
Fire Station Trailer 12 $36,368
County Gov Center 11 $32,592
Corp Yard 11 $32,064
Horse Stables 9 $27,008
Animal Shelter 9 $26,080
Lathrop House 5 $15,296
Weights and Measures 4 $13,456
Parks and rec 3 $10,448
Sheriff Commuter House 3 $8,368
Probation office 2 $5,632
Parks and rec 2 $5,184
Airport Hanger 1 $3,520
Sheriff's Substation 1 $1,840 35
• Flexible incentive based on gas usage, at an
amount similar to residential incentives or
$16/therm.
• Each 1,000 therms of gas saved per
year translates to ~5 MT CO2e/yr
Peninsula Clean Energy
Hypothetical project cost-share
36 $32,000
$100,000
$68,000
$200,000
total project
cost
$68,000 loan paid back
to Peninsula Clean
Energy over 7 years
Half of project cost covered
by existing city capital
improvement budget
$32,000 incentive based on
greenhouse gas savings
Example community center
electrification project:
• Eight rooftop packaged gas units
replaced with heat pumps
• Heat pump water heater installed
• Total project cost of $200,000
• 11 Metric Tons CO2e saved per year
Peninsula Clean Energy 37
Revolving loan fund
• 7-year loan term
• 0-2% interest rate
• $5-10 million seed funding
• Cap of $600k per project (can be combined with
incentive)
• Requires 25% cost-share by non-PCE funds.
Proposed Program Summary
Incentive program
• $1 million/yr in current budget ($750k for FY24)
• Up to $16 per therm per year methane gas
reduction
• $600k cap per project
• Requires 25% cost-share by non-PCE funds
• Prioritize projects based on:
o Urgency (gas equipment aging out)
o Shovel-readiness
o Total therm savings
o "Showcase project" or high community visibility /
benefit
• Allow backup gas to remain in some
cases dual-fuel projects for sites with electrical
capacity issues. Require 75%+ GHG reduction.
• Inclusion in FlexMarket could allow CPUC
reimbursement
Peninsula Clean Energy
Benefits
38 1. Energy cost savings for local governments
• Government buildings typically see cost savings from electrification. • Pools will save up to $30,000 per year in energy costs • Adding on-site PV plus battery increases cost savings
2. Funding building improvements
• Funding request estimated to help 30-90 projects over 10 years • Help with deferred maintenance of systems
• Electrification at difficult buildings
3. Emissions savings
• 500-3,000 MT per year
• A municipal pool heater has similar emission to 100 homes (100+ MT/yr) • A small recreation center is similar to electrifying 4 homes (6 MT/yr) Peninsula Clean Energy
May 2023
Present to CAC
August 2023
Finalize
program,
present to Board
Q4, 2023
Open grant
process
Q4, 2023
Select FY2024
projects
Q3, 2024
Funding
available to local
governments
39 Possible Timeline
Peninsula Clean Energy
Program
Local government building electrification projects
Request
o Recommendation to Board for program approval
o Including $5-10m Revolving Loan fund
Budget Status
o Incentives included in approved FY24 budget, est. $500k - $2m per year 40 Recommendation
Net Billing Tariff (NBT)
Update
Leslie Brown
Executive Committee
August 14th, 2023
Peninsula Clean Energy
Discussion Overview
• Brief recap of NEM 2.0 sunset and NBT transition
• Major differences between NEM and NBT
• Customers impacted by NBT
• What are other CCA’s doing?
• PCE policy considerations
42 Peninsula Clean Energy
What is NBT?
• New solar interconnection policy for systems applying after April 14, 2023
o NEM 3.0 => Net Billing Tariff (NBT) => Solar Billing Plan • Per the CPUC the new policy changes are intended to:
• Credit excess solar generation at its grid value (vs retail) o Charge NBT customers for grid electricity based on high differential TOU tariffs and encourage solar + storage installations (encourage shifting exports to later in the day)
o Promote equitable access and benefits of solar for low-income customers o Support sustainable growth of solar in CA
43 Peninsula Clean Energy
NEM Evolution – CPUC Policy Objectives
44 NEM 1.0
1995 – 2017
• Promote
proliferation of
rooftop solar by
crediting
customers at full
retail rate
• Diversify energy
resource mix
• Tariffs favor mid-day solar
production
NEM 2.0
2017 – Apr. 14, 2023
• Given significant
participation in
NEM, align
compensation
closer to cost
through TOU
rates, and
requirements to
pay non-bypassable
charges
NBT
April 15, 2023 - present
• Reform program
to better align
compensation
for customer-sited solar with
net benefits
provided to grid
• Preserve
sustainable
growth of
behind-the-meter
renewable
generation
Peninsula Clean Energy
NEM => NBT Evolution
NEM 1.0
1996-2017
NEM 2.0
2017-Apr.14, 2023
NBT
Apr. 15, 2023 - present
Rate Schedule Any TOU rates (4-9 pm peak
rates)
TOU Electrification Rates (E-ELEC for
PG&E)
Value of solar
used concurrently
on-site
Offsets imports, so
equivalent to retail rate Unchanged Unchanged
Value of solar
exported to grid Full retail rate
Retail rate minus non-bypassable charges and
one-time interconnection fee
Avoided Cost Calculation (ACC) price per
interval – no more retail credit
Net Surplus
Compensation
(NSC) payment at
true-up
Net exports times NSC
rate Unchanged Net exports time NSC rate, minus ACC export value already granted Non-bypassable
charges
calculation basis
Net imports only Net imports within each
interval All imports (separately metered)
Billing and true-up period
Annual billing, annual true-up (both charges and
credits roll over for 12
months)
Unchanged Monthly billing and payment; annual true-up (credits roll over for 12 months) 45 Peninsula Clean Energy
Example: NBT Export Value in PG&E Territory
(no storage)
PG&E E-TOU-C rate Gen Value T&D Value Total Value
NEM 1.0 14.6 c/kWh 26.8 c/kWh 41.3 c/kWh
NEM 2.0 14.6 c/kWh 23.6 c/kWh 38.1 c/kWh
NBT 2.9 c/kWh 0.5 c/kWh 3.3 c/kWh
NBT Reduction in Value -80% -98% -92%
46 Why such a significant reduction on NBT?
Retail rates include things like peak T&D
strain costs and RA costs
Avoided Cost Calculation values are much
lower
How to retain value under NBT?
Reducing exports is critical to retain value
Smaller installs or storage
*Analysis by Justin Kudo-MCE
Peninsula Clean Energy
Example Monthly Energy Export Credit Table
47 Peninsula Clean Energy
No Immediate Changes for Most NEM Customers
• Existing NEM customers have 20 years from their original interconnection date before new policy applies
o Changes and/or upgrades to an existing solar system can trigger an early transition to new program
• Processes for transitioning customers are still being developed o PG&E is proposing to transition NEM 1.0 customers whose original interconnection agreements have expired on their next true-up following IT system updates and formal Solar Billing Plan launch (December 2023) o We estimate that there are ~250 current PCE customers (~1% of all PCE NEM customers) that are eligible for NBT transition through December 2024 48 Peninsula Clean Energy
What are other CCA’s planning?
• CPA (Clean Power Alliance) is the only CCA so far that has formally adopted an NBT policy.
o Planning to follow the ACC compensation rates for generation but will evaluate separate programmatic opportunities to provide additional incentives for battery storage
• Informally other CCA’s are likely planning to make similar decisions. o Follow the state plan for ACC compensation while looking for additional opportunities to support energy storage as well as low-income customer access
49 Peninsula Clean Energy
PCE Policy Considerations
• PCE will need to determine compensation rates for excess solar generation for NBT customers and staff is still developing our recommendation
o Alternatives to the ACC would be difficult to implement o ACC values will still apply to T&D exports regardless of CCA Generation export rates
o Deviating from the ACC for Generation exports will likely cause confusion amongst solar installers and customers
• More to come over the next couple of months as staff refines recommendations
50 Committee Members’ Reports
Item 5