Agenda packet — WestLight Energy Board of Directors, August 22, 2024 (part 2 of 2)

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SECOND THIRD AMENDED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO

AND CREATING THE

PENINSULA CLEAN ENERGY AUTHORITY
This Joint Exercise of Powers Agreement, effective on the date determined by Section 2.1, is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Sections 6500 et seq.) of the California Government Code relating to the joint exercise of powers among the Parties set forth in Exhibit B, and establishes the Peninsula Clean Energy Authority (“Authority”), is by and between the County of San Mateo (“County”) and those counties, cities and towns within the State of California who become signatories to this Agreement, and relates to the joint exercise of powers among the signatories hereto.

RECITALS
A. The Parties share various powers under California law, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and customers within their jurisdictions.

B. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels. The California Air Resources Board is promulgating regulations to implement AB 32 which will require local governments to develop programs to reduce greenhouse gas emissions.

C. The purposes for entering into this Agreement include:
a. Reducing greenhouse gas emissions related to the use of power in San Mateo County and the State of California;
b. Providing electric power and other forms of energy to customers at a competitive cost;
c. Carrying out programs to reduce energy consumption;
d. Stimulating and sustaining the local economy by developing local jobs in renewable energy; and
e. Promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources.

D. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy efficiency programs, including but not limited to solar, wind, and biomass energy production. The purchase of renewable power and greenhouse gas-free energy sources will be the desired approach to decrease regional greenhouse gas emissions and accelerate the State’s transition to clean power resources to the extent feasible. The Agency will also add increasing levels of locally generated renewable 238

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resources as these projects are developed and customer energy needs expand.

E. The Parties desire to establish a separate public agency, known as the Peninsula Clean Energy Authority, under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs.

F. The Parties anticipate adopting an ordinance electing to implement through the Authority a common Community Choice Aggregation (CCA) program, an electric service enterprise available to cities and counties pursuant to California Public Utilities Code Sections 331.1(c) and 366.2. The first priority of the Authority will be the consideration of those actions necessary to implement the CCA Program.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:

ARTICLE 1: DEFINITIONS AND EXHIBITS

1.1 Definitions. Capitalized terms used in the Agreement shall have the meanings specified in Exhibit A, unless the context requires otherwise.

1.2 Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.

Exhibit A: Definitions
Exhibit B: List of the Parties
Exhibit C: Annual Energy Use
Exhibit D: Voting Shares
Exhibit E: Signatures

ARTICLE 2: FORMATION OF PENINSULA CLEAN ENERGY AUTHORITY

2.1 Effective Date and Term. This Agreement shall become effective and Peninsula Clean Energy Authority shall exist as a separate public agency on February 29, 2016 or when the County of San Mateo and at least two municipalities execute this Agreement, whichever occurs later. The Authority shall provide notice to the Parties of the Effective Date. The Authority shall continue to exist, and this Agreement shall be effective, until this Agreement is terminated in accordance with Section 6.4, subject to the rights of the Parties to withdraw from the Authority.

2.2 Formation. There is formed as of the Effective Date a public agency named the Peninsula Clean Energy Authority. Pursuant to Sections 6506 and 6507 of the Act, the Authority is a public agency separate from the Parties. Pursuant to Sections 6508.1 of the Act, the debts, liabilities or obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties 239

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unless the governing board of a Party agrees in writing to assume any of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority. Notwithstanding Section 7.4 of this Agreement, this Section 2.2 may not be amended unless such amendment is approved by the governing board of each Party.

2.3 Purpose. The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Party to study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. Without limiting the generality of the foregoing, the Parties intend for this Agreement to be used as a contractual mechanism by which the Parties are authorized to participate in the CCA Program, as further described in Section 4.1. The Parties intend that other agreements shall define the terms and conditions associated with the implementation of the CCA Program and any other energy programs approved by the Authority.

2.4 Powers. The Authority shall have all powers common to the Parties and such additional powers accorded to it by law. The Authority is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following powers, subject to the voting requirements set forth in Section 3.7 through 3.7.5:

2.4.1 to make and enter into contracts;

2.4.2 to employ agents and employees, including but not limited to a Chief Executive Officer;

2.4.3 to acquire, contract, manage, maintain, and operate any buildings, infrastructure, works, or improvements;

2.4.4 to acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property; however, the Authority shall not exercise the power of eminent domain within the jurisdiction of a Party over its objection without first meeting and conferring in good faith.

2.4.5 to lease any property;

2.4.6 to sue and be sued in its own name;

2.4.7 to incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code Sections 53850 et seq. and authority under the Act;

2.4.8 to form subsidiary or independent corporations or entities if necessary, to carry out energy supply and energy conservation programs at the lowest possible cost or to take advantage of legislative or regulatory changes;
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2.4.9 to issue revenue bonds and other forms of indebtedness;

2.4.10 to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;

2.4.11to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

2.4.12 to adopt Operating Rules and Regulations; and

2.4.13 to make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision of retail and regulatory support services.

2.4.14 to permit additional Parties to enter into this Agreement after the Effective Date and to permit another entity authorized to be a community choice aggregator to designate the Authority to act as the community choice aggregator on its behalf.

2.5 Limitation on Powers. As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by San Mateo County.

2.6 Compliance with Local Zoning and Building Laws and CEQA. Unless state or federal law provides otherwise, any facilities, buildings or structures located, constructed, or caused to be constructed by the Authority within the territory of the Authority shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (“CEQA”).

ARTICLE 3: GOVERNANCE AND INTERNAL ORGANIZATION

3.1 Board of Directors. The governing body of the Authority shall be a Board of Directors (“Board”).

The Board shall consist of 2 (two) directors appointed by the San Mateo County Board of Supervisors and 1 (one) director appointed by each County, City or Town that becomes a signatory to the Agreement (“Directors”). Each Director shall serve at the pleasure of the governing board of the Party who appointed such Director and may be removed as Director by such governing board at any time. If at any time a vacancy occurs on the Board, a replacement shall be appointed to fill the position of the previous Director within 90 days of the date that such position becomes vacant. Directors must be members of the Board of Supervisors or members of the governing board of the municipality that is the signatory to this Agreement. Each Party may appoint an alternate(s) to serve in the absence of its Director(s). Alternates may be either (1) members of the Board of Supervisors or members of the governing board of the municipality that is the signatory to this Agreement, or (2) staff members of the County or any such municipality.

3.1.1 Directors Emeritus.
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The Board may select up to two board directors emeritus (“Directors Emeritus”). Directors Emeritus will be selected from former directors who served on the Board with distinction and excellence.

The Board may fill any vacant emeritus position(s) by a simple majority vote of Directors. The Chair may delegate the initial review of applicants and/or nominations to a committee. Directors Emeritus will serve at the pleasure of the Board for two-year terms, subject to the discretion of the Board to shorten or end a term. There shall be no limit on the number of terms held. It is the Board’s intention that Directors Emeritus receive all written notices and information provided to the Board, be permitted to attend all Board meetings, be permitted to participate in committee meetings without need for an appointment, and be encouraged to attend other PCE events. Directors Emeritus will not be counted in determining if a quorum is present, will not be entitled to hold office, and will not be entitled to vote at any Board or committee meeting. Director Emeritus status does not entitle participation in closed sessions of the Board.

3.2 Quorum. A majority of the appointed Directors shall constitute a quorum, except that less than a quorum may adjourn from time to time in accordance with law.

3.3 Powers and Functions of the Board. The Board shall exercise general governance and oversight over the business and activities of the Authority, consistent with this Agreement and applicable law. The Board shall provide general policy guidance to the CCA Program. Board approval shall be required for any of the following actions:

3.3.1 The issuance of bonds or any other financing even if program revenues are expected to pay for such financing.

3.3.2 The hiring or termination of the Chief Executive Officer and General Counsel.

3.3.3 The appointment or removal of officers described in Section 3.9, subject to Section

3.9.3. 3.3.4 The adoption of the Annual Budget.

3.3.5 The adoption of an ordinance.

3.3.6 The approval of agreements, except as provided by Section 3.4.

3.3.7 The initiation or resolution of claims and litigation where the Authority will be the defendant, plaintiff, petitioner, respondent, cross complainant, or cross petitioner, or intervenor; provided, however, that the Chief Executive Officer or General Counsel or by delegation thereof, , on behalf of the Authority, may intervene in, become a party to, or file comments with respect to any proceeding pending at the California Public Utilities Commission, the Federal Energy Regulatory Commission, or any other administrative agency, without approval of the Board as long as such action is consistent with any adopted Board policies.

3.3.8 The setting of rates for power sold by the Authority and the setting of charges for any other category of service provided by the Authority. 242

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3.3.9 Termination of the CCA Program.

3.4 Chief Executive Officer. The Board of Directors shall appoint a Chief Executive Officer for the Authority, who shall be responsible for the day-to-day operation and management of the Authority and the CCA Program. The Chief Executive Officer, may exercise all powers of the Authority, including the power to hire, discipline, and terminate employees as well as the power to approve any agreement if the total amount payable under the agreement is equal to or less than the amount is less than $100specified in the Operating Rules and Regulations (Policy 15, “Delegation of Non-Energy Contract Authority”) ,000 in any fiscal year, except for the powers specifically set forth in Section 3.3 or those powers which by law must be exercised by the Board of Directors.

3.5 Commissions, Boards, and Committees. The Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement which shall comply with the requirements of the Ralph M. Brown Act. The Board may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees if the Board deems appropriate to appoint such commissions, boards or committees, and shall determine whether members shall be compensated or entitled to reimbursement for expenses.

3.6 Director Compensation. Directors shall serve without compensation from the Authority.

However, Directors may be compensated by their respective appointing authorities. The Board, however, may adopt by resolution a policy relating to the reimbursement by the Authority of expenses incurred by Directors.

3.7 Voting In general, as described below in Section 3.7.3, action by the Authority Board will be taken solely by a majority vote of the Directors present. However, as described below in Section

3.7.4, upon request of a Director, a weighted vote by shares will also be conducted. When such a request is made, an action must be approved by both a majority vote of Directors present and a majority of the weighted vote by shares present. No action may be approved solely by a vote by shares. The voting shares of Directors and approval requirements for actions of the Board shall be as follows:

3.7.1. Voting Shares.

Each Director shall have a voting share as determined by the following formula: (Annual Energy Use/Total Annual Energy) multiplied by 100, where:
(a) “Annual Energy Use” means, (i) with respect to the first year following the Effective Date, the annual electricity usage, expressed in kilowatt hours (“kWh”), within the Party’s respective jurisdiction and (ii) with respect to the period after the anniversary of the Effective Date, the annual electricity usage, expressed in kWh, of accounts within a Party’s respective jurisdiction that are served by the Authority; and
(b) “Total Annual Energy” means the sum of all Parties’ Annual Energy Use. The initial values for Annual Energy Use will be designated in Exhibit C, and shall be adjusted annually as soon as reasonably practicable after January 1, but no later than 243

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March 1 of each year. These adjustments shall be approved by the Board. (c) The combined voting share of all Directors representing the County of San Mateo shall be based upon the annual electricity usage within the unincorporated area of San Mateo County.

For the purposes of Weighted Voting, if a Party has more than one director, then the voting shares allocated to the entity shall be equally divided amongst its Directors.

3.7.2. Exhibit Showing Voting Shares. The initial voting shares will be set forth in Exhibit D. Exhibit D shall be revised no less than annually as necessary to account for changes in the number of Parties and changes in the Parties’ Annual Energy Use. Exhibit D and adjustments shall be approved by the Board.

3.7.3. Approval Requirements Relating to CCA Program. Except as provided in Sections

3.7.4 and 3.7.5 below, action of the Board shall require the affirmative vote of a majority of Directors present at the meeting.

3.7.4. Option for Approval by Voting Shares. Notwithstanding Section 3.7.3, any Director present at a meeting may demand that approval of any matter related to the CCA Program be determined on the basis of both voting shares and by the affirmative vote of a majority of Directors present at the meeting. If a Director makes such a demand with respect to approval of any such matter, then approval of such matter shall require the affirmative vote of a majority of Directors present at the meeting and the affirmative vote of Directors having a majority of voting shares present, as determined by Section 3.7.1 except as provided in Section 3.7.5.

3.7.5. Special Voting Requirements for Certain Matters. (a) Two-Thirds and Weighted Voting Approval Requirements Relating to Sections

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(i) A decision to exercise the power of eminent domain on behalf of the Authority to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least 75% of all Directors. (ii) The imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program shall require a vote of at least 75% of all Directors and the approval of the governing boards of the Parties who are being asked to make such contribution or pledge. (iii) Notwithstanding the foregoing, any Director present at the meeting may demand that a vote under subsections (i) or (ii) be determined on the basis of voting shares and by the affirmative vote of Directors, and if a Director makes such a demand, then approval shall require both the affirmative vote of at least 75% of Directors present and the affirmative vote of Directors having at least 75% of the voting shares present, as determined by Section 3.7.1, but at least two Parties must vote against a matter for the vote to fail. For purposes of this section, “imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program” does not include any obligations of a withdrawing or terminated party imposed under Section 6.3.

3.8 Meetings and Special Meetings of the Board. The Board shall hold at least six regular meetings per year, but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special and Emergency Meetings of the Board may be called in accordance with the provisions of California Government Code Sections 54956 and 54956.5. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law. All meetings shall be conducted in accordance with the provisions of the Ralph M. Brown Act (California Government Code Sections 54950 et seq.).

3.9 Selection of Board Officers.

3.9.1 Chair and Vice Chair. The Directors shall select, from among themselves, a Chair, who shall be the presiding officer of all Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The term of office of the Chair and Vice Chair shall continue for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chairshall be specified in the Operating Rules and Regulations (Policy 16, “Policies and Procedures for Board of Directors, Committees, and Advisory Groups”). The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if:
(a) the person serving dies, resigns, or the Party that the person represents removes the person as its representative on the Board or
(b) the Party that he or she represents withdraws from the Authority pursuant to the provisions of this Agreement.

3.9.2 Secretary. The Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of the Board and all 245

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other official records of the Authority.

3.9.3 Treasurer and Auditor. The Chief Financial Officer shall, among other duties, act as the Treasurer for the Authority. Unless otherwise exempted from such requirement, the Authority shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall act as the depository of the Authority and have custody of all the money of the Authority, from whatever source, and as such, shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The Treasurer shall report directly to the Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time.

The duties and obligations of the Treasurer are further specified in Article 5.

3.10 Administrative Services Provider. The Board may appoint one or more administrative services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. An Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs. The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program.

ARTICLE 4: IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

4.1 Preliminary Implementation of the CCA Program.

4.1.1 Enabling Ordinance. To be eligible to participate in the CCA Program, each Party must adopt an ordinance in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose of specifying that the Party intends to implement a CCA Program by and through its participation in the Authority.

4.1.2 Implementation Plan. The Authority shall cause to be prepared an Implementation Plan meeting the requirements of Public Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations as soon after the Effective Date as reasonably practicable. The Implementation Plan shall not be filed with the Public Utilities Commission until it is approved by the Board in the manner provided by Section 3.7.3.

4.1.3 Termination of CCA Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of the Authority to terminate the implementation or operation of the CCA Program at any time in accordance with any applicable requirements of state law.
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4.2 Authority Documents. The Parties acknowledge and agree that the affairs of the Authority will be implemented through various documents duly adopted by the Board through Board resolution.

The Parties agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board, subject to the Parties’ right to withdraw from the Authority as described in Article 6.

4.3 Addition of Parties. Other incorporated municipalities and counties may become Parties subject to all applicable terms of this Agreement, including but not limited to those in Article 6, upon (a) the adoption of a resolution by the governing body of such incorporated municipality or such county requesting that the incorporated municipality or county, as the case may be, become a member of the Authority, (b) the adoption, by an affirmative vote of the Board satisfying the requirements described in Section 3.7, of a resolution authorizing membership of the additional incorporated municipality or county, specifying the membership payment, if any, to be made by the additional incorporated municipality or county to reflect its pro rata share of organizational, planning and other pre-existing expenditures, and describing additional conditions, if any, associated with membership, (c) the adoption of an ordinance required by Public Utilities Code Section 366.2(c)(12) and execution of this Agreement and other necessary program agreements by the incorporated municipality or county as required by the Board, (d) payment of the membership payment, if any, and (e) satisfaction of any conditions established by the Board.

4.3.1 Continuing Participation. The Parties acknowledge that membership in the Authority may change by the addition and/or withdrawal or termination of Parties. The Parties agree to participate with such other Parties as may later be added, as described in Section 4.3. The Parties also agree that the withdrawal or termination of a Party shall not affect this Agreement or the remaining Parties’ continuing obligations under this Agreement.

4.3.2 Termination by Additional Parties. In addition to any financial obligations under Article 6, and in the events that the Board does not require a membership payment to reflect the additional party’s pro rata share of organizational planning and other pre-existing expenditures as allowed by Section

4.3(b) and the additional party withdraws its membership in the Authority within the first five years of becoming a party, the party shall be obligated to reimburse the Authority for all the costs related to the cost of launch, including but not limited to the costs of updating the Implementation Plan and mailings to party’s accounts.

ARTICLE 5: FINANCIAL PROVISIONS

5.1 Fiscal Year. The Authority’s fiscal year shall be 12 months commencing July 1 or the date selected by the Agency and ending June 30. The fiscal year may be changed by Board resolution.

5.2 Depository.

5.2.1 All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity. 247

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5.2.2 All funds of the Authority shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of the Authority shall be open to inspection by the Parties at all reasonable times. The Board shall contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of the Authority, which shall be conducted in accordance with the requirements of Section 6505 of the Act.

5.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Rules and Regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.

5.3 Budget and Recovery of Costs.

5.3.1 Budget. The initial annual budget shall be approved by the Board. Staff shall report to the Board quarterly budget results and any significant budget variances. The Board may revise the budget as needed to address any significant changes and/or unexpected expenses incurred. The Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of the Authority shall be approved by the Board in accordance with the Operating Rules and Regulations.

5.3.2 Funding of Initial Costs. The County of San Mateo has funded certain activities necessary to implement the CCA Program. If the CCA Program becomes operational, these Initial Costs paid by the County of San Mateo shall be included in the customer charges for electric services as provided by Section 5.3.3 to the extent permitted by law, and the County of San Mateo shall be reimbursed from the payment of such charges by customers of the Authority. Prior to such reimbursement, the County of San Mateo shall provide such documentation of costs paid as the Board may request. The Authority may establish a reasonable time period over which such costs are recovered. In the event that the CCA Program does not become operational, the County of San Mateo shall not be entitled to any reimbursement of the Initial Costs it has paid from the Authority or any Party.

5.3.3 CCA Program Costs. The Parties desire that all costs incurred by the Authority that are directly or indirectly attributable to the provision of electric, conservation, efficiency, incentives, financing, or other services provided under the CCA Program, including but not limited to the establishment and maintenance of various reserves and performance funds and administrative, accounting, legal, consulting, and other similar costs, shall be recovered through charges to CCA customers receiving such electric services, or from revenues from grants or other third-party sources.

ARTICLE 6: WITHDRAWAL AND TERMINATION

6.1 Withdrawal.
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6.1.1 Right to Withdraw. A Party may withdraw its participation in the CCA Program, effective as of the beginning of the Authority’s fiscal year, by giving no less than 612 months advance written notice of its election to do so, which notice shall be given to the Authority and each Party. Withdrawal of a Party shall require an affirmative vote of the Party’s governing board.

6.1.2 Right to Withdraw After Amendment. Notwithstanding Section 6.1.1, a Party may withdraw its membership in the Authority following an amendment to this Agreement adopted by the Board which the Party’s Director(s) voted against provided such notice is given in writing within thirty (30) days following the date of the vote. Withdrawal of a Party shall require an affirmative vote of the Party’s governing board and shall not be subject to the six month advance notice provided in Section 6.1.1. In the event of such withdrawal, the Party shall be subject to the provisions of Section 6.3.

6.1.3 The Right to Withdraw Prior to Program Launch. After receiving bids from power suppliers, the Authority must provide to the Parties the report from the electrical utility consultant retained by the Authority that compares the total estimated electrical rates that the Authority will be charging to customers as well as the estimated greenhouse gas emissions rate and the amount of estimated renewable energy used with that of the incumbent utility. If the report provides that the Authority is unable to provide total electrical rates, as part of its baseline offering, to the customers that are equal to or lower than the incumbent utility or to provide power in a manner that has a lower greenhouse gas emissions rate or uses more renewable energy than the incumbent utility, a Party may immediately withdraw its membership in the Authority without any financial obligation, as long as the Party provides written notice of its intent to withdraw to the Authority Board no more than fifteen days after receiving the report.

6.1.4 Continuing Financial Obligation; Further Assurances. Except as provided by Section

6.1.3, a Party that withdraws its participation in the CCA Program may be subject to certain continuing financial obligations, as described in Section 6.3. Each withdrawing Party and the Authority shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from participation in the CCA Program.

6.2 Involuntary Termination of a Party. Participation of a Party in the CCA program may be terminated for material non-compliance with provisions of this Agreement or any other agreement relating to the Party’s participation in the CCA Program upon a vote of Board members as provided in Section 3.7.5. Prior to any vote to terminate participation with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or other agreement that the Party has allegedly violated. The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its participation in the CCA Program terminated may be subject to certain continuing liabilities, as described in Section 6.3. 249

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6.3 Continuing Financial Obligations; Refund. Except as provided by Section 6.1.3, upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or other financial obligations arising from the Party membership or participation in the CCA Program through the date of its withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any financial obligations arising after the date of the Party’s withdrawal or involuntary termination. Claims, demands, damages, or other financial obligations for which a withdrawing or terminated Party may remain liable include, but are not limited to, losses from the resale of power contracted for by the Authority to serve the Party’s load. With respect to such financial obligations, upon notice by a Party that it wishes to withdraw from the CCA Program, the Authority shall notify the Party of the minimum waiting period under which the Party would have no costs for withdrawal if the Party agrees to stay in the CCA Program for such period. The waiting period will be set to the minimum duration such that there are no costs transferred to remaining ratepayers. If the Party elects to withdraw before the end of the minimum waiting period, the charge for exiting shall be set at a dollar amount that would offset actual costs to the remaining ratepayers, and may not include punitive charges that exceed actual costs. In addition, such Party shall also be responsible for any costs or obligations associated with the Party’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Party. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority and approved by a vote of the Board of Directors, to cover the Party’s financial obligations for the costs described above. Any amount of the Party’s funds held on deposit with the Authority above that which is required to pay any financial obligations shall be returned to the Party. The liability of any Party under this section 6.3 is subject and subordinate to the provisions of Section 2.2, and nothing in this section 6.3 shall reduce, impair, or eliminate any immunity from liability provided by Section 2.2.

6.4 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its participation in the CCA Program, as described in Section 6.1.

6.5 Disposition of Property upon Termination of Authority. Upon termination of this Agreement, any surplus money or assets in possession of the Authority for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Parties in proportion to the contributions made by each.

ARTICLE 7: MISCELLANEOUS PROVISIONS

7.1 Dispute Resolution. The Parties and the Authority shall make reasonable efforts to informally settle all disputes arising out of or in connection with this Agreement. Should such informal efforts to settle a dispute, after reasonable efforts, fail, the dispute shall be mediated in accordance with policies and procedures established by the Board.

7.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, 250

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or employee will be responsible for any act or omission by another Director, officer, or employee.

The Authority shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code Sections 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, the Authority, or its Directors, officers, or employees.

7.3 Indemnification of Parties. The Authority shall acquire such insurance coverage as is necessary to protect the interests of the Authority, the Parties, and the public. The Authority shall defend, indemnify, and hold harmless the Parties and each of their respective Board or Council members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the Authority under this Agreement.

7.4 Amendment of this Agreement. This Agreement may not be amended except by a written amendment approved by a vote of Board members as provided in Section 3.7.5. The Authority shall provide written notice to all Parties of amendments to this Agreement, including the effective date of such amendments, at least 30 days prior to the date upon which the Board votes on such amendments.

7.5 Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section

7.5 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties. This Section 7.5 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party’s contributions to the Authority, or the disposition of proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.

7.6 Severability. If one or more clauses, sentences, paragraphs or provisions of this Agreement shall be held to be unlawful, invalid or unenforceable, it is hereby agreed by the Parties, that the remainder of the Agreement shall not be affected thereby. Such clauses, sentences, paragraphs or provision shall be deemed reformed so as to be lawful, valid and enforced to the maximum extent possible.

7.7 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, to effectuate the purposes and intent of this Agreement.

7.8 Execution by Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages. 251

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7.9 Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given if served in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service.

252
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibit A
Definitions
“Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
“Administrative Services Agreement” means an agreement or agreements entered into after the Effective Date by the Authority with an entity that will perform tasks necessary for planning, implementing, operating and administering the CCA Program or any other energy programs adopted by the Authority.
“Agreement” means this Joint Powers Agreement.
“Annual Energy Use” has the meaning given in Section 3.7.1. “Authority” means the Peninsula Clean Energy Authority. “Authority Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions, and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies. “Board” means the Board of Directors of the Authority.
“CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCA Program” means the Authority’s program relating to CCA that is principally described in Sections 2.3, 2.4, and 4.1.
“Director” means a member of the Board of Directors representing a Party. “Effective Date” means February 29, 2016 or when the County of San Mateo and at least two municipalities execute this Agreement, whichever occurs later, as further described in Section

“Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
“Parties” means, collectively, any municipality or county that executes this Agreement. “Party” means a signatory to this Agreement.
“Total Annual Energy” has the meaning given in Section 3.7.1. 254
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibit B
List of Parties
Parties:

Atherton
Belmont
Brisbane
Burlingame
Colma
County of San Mateo
Daly City
East Palo Alto
Foster City
Half Moon Bay
Hillsborough
Los Banos
Menlo Park
Millbrae
Pacifica
Portola Valley
Redwood City
San Bruno
San Carlos
San Mateo
South San Francisco
Woodside
255
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibits C and D
Annual Energy Use and Voting Shares

ANNUAL ENERGY USE WITHIN PCE

JURISDICTIONS AND VOTING SHARES
Twelve Months Ended November [date]

Party Total kWh Voting
Share

SAN MATEO
COUNTY

Total 100
256

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THIRD AMENDED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO

AND CREATING THE

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resources as these projects are developed and customer energy needs expand.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:

ARTICLE 1: DEFINITIONS AND EXHIBITS

1.1 Definitions. Capitalized terms used in the Agreement shall have the meanings specified in Exhibit A, unless the context requires otherwise.

1.2 Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.

Exhibit A: Definitions
Exhibit B: List of the Parties
Exhibit C: Annual Energy Use
Exhibit D: Voting Shares
Exhibit E: Signatures

ARTICLE 2: FORMATION OF PENINSULA CLEAN ENERGY AUTHORITY

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2.4.1 to make and enter into contracts;

2.4.2 to employ agents and employees, including but not limited to a Chief Executive Officer;

2.4.3 to acquire, contract, manage, maintain, and operate any buildings, infrastructure, works, or improvements;

2.4.5 to lease any property;

2.4.6 to sue and be sued in its own name;

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2.4.9 to issue revenue bonds and other forms of indebtedness;

2.4.10 to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;

2.4.11to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

2.4.12 to adopt Operating Rules and Regulations; and

2.5 Limitation on Powers. As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by San Mateo County.

ARTICLE 3: GOVERNANCE AND INTERNAL ORGANIZATION

3.1 Board of Directors. The governing body of the Authority shall be a Board of Directors (“Board”).

3.1.1 .
260

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3.2 Quorum. A majority of the appointed Directors shall constitute a quorum, except that less than a quorum may adjourn from time to time in accordance with law.

3.3.1 The issuance of bonds or any other financing even if program revenues are expected to pay for such financing.

3.3.2 The hiring or termination of the Chief Executive Officer and General Counsel.

3.3.3 The appointment or removal of officers described in Section 3.9, subject to Section

3.9.3. 3.3.4 The adoption of the Annual Budget.

3.3.5 The adoption of an ordinance.

3.3.6 The approval of agreements, except as provided by Section 3.4.

3.3.7 The initiation or resolution of claims and litigation where the Authority will be the defendant, plaintiff, petitioner, respondent, cross complainant, or cross petitioner, or intervenor; provided, however, that the Chief Executive Officer or General Counsel or by delegation thereof, on behalf of the Authority, may intervene in, become a party to, or file comments with respect to any proceeding pending at the California Public Utilities Commission, the Federal Energy Regulatory Commission, or any other administrative agency, without approval of the Board as long as such action is consistent with any adopted Board policies.

3.3.8 The setting of rates for power sold by the Authority and the setting of charges for any other category of service provided by the Authority.

3.3.9 Termination of the CCA Program.

3.4 Chief Executive Officer. The Board of Directors shall appoint a Chief Executive Officer for the Authority, who shall be responsible for the day-to-day operation and management of the Authority and the CCA Program. The Chief Executive Officer may exercise all powers of the Authority, including the power to hire, discipline, and terminate employees as well as the power to approve any agreement if the total amount payable under the agreement is equal to or less than the amount specified in the Operating Rules and Regulations (Policy 15, “Delegation of Non-Energy Contract Authority”) except for the powers specifically set forth in Section 3.3 or those powers which by law must be exercised by the Board of Directors.

3.5 Commissions, Boards, and Committees. The Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board in carrying 261

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out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement which shall comply with the requirements of the Ralph M. Brown Act. The Board may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees if the Board deems appropriate to appoint such commissions, boards or committees, and shall determine whether members shall be compensated or entitled to reimbursement for expenses.

3.6 Director Compensation. Directors shall serve without compensation from the Authority.

3.7 Voting In general, as described below in Section 3.7.3, action by the Authority Board will be taken solely by a majority vote of the Directors present. However, as described below in Section

3.7.1. Voting Shares.

For the purposes of Weighted Voting, if a Party has more than one director, then the voting shares allocated to the entity shall be equally divided amongst its Directors.

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3.7.3. Approval Requirements Relating to CCA Program. Except as provided in Sections

3.7.4 and 3.7.5 below, action of the Board shall require the affirmative vote of a majority of Directors present at the meeting.

3.7.5. Special Voting Requirements for Certain Matters. (a) Two-Thirds and Weighted Voting Approval Requirements Relating to Sections

6.2 and 7.4. Action of the Board on the matters set forth in Section 6.2 (involuntary termination of a Party), or Section 7.4 (amendment of this Agreement) shall require the affirmative vote of at least two-thirds of Directors present; provided, however, that (i) notwithstanding the foregoing, any Director present at the meeting may demand that the vote be determined on the basis of both voting shares and by the affirmative vote of Directors, and if a Director makes such a demand, then approval shall require the affirmative vote of both at least two-thirds of Directors present and the affirmative vote of Directors having at least two-thirds of the voting shares present, as determined by Section 3.7.1; (ii) but, at least two Parties must vote against a matter for the vote to fail; and (iii) for votes to involuntarily terminate a Party under Section 6.2, the Director(s) for the Party subject to involuntary termination may not vote, and the number of Directors constituting two-thirds of all Directors, and the weighted vote of each Party shall be recalculated as if the Party subject to possible termination were not a Party.
(b) Seventy Five Percent Special Voting Requirements for Eminent Domain and Contributions or Pledge of Assets.
(i) A decision to exercise the power of eminent domain on behalf of the Authority to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least 75% of all Directors. (ii) The imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program shall require a vote of at least 75% of all Directors and the approval of the governing boards of the Parties who are being asked to make such contribution or pledge. (iii) Notwithstanding the foregoing, any Director present at the meeting may demand that a vote under subsections (i) or (ii) be determined on the basis of voting shares and by the affirmative vote of Directors, and if a Director makes such a demand, then approval shall require both the affirmative vote of at least 75% of 263

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Directors present and the affirmative vote of Directors having at least 75% of the voting shares present, as determined by Section 3.7.1, but at least two Parties must vote against a matter for the vote to fail. For purposes of this section, “imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program” does not include any obligations of a withdrawing or terminated party imposed under Section 6.3.

3.9 Selection of Board Officers.

3.9.1 Chair and Vice Chair. The Directors shall select, from among themselves, a Chair, who shall be the presiding officer of all Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The term of office of the Chair and Vice Chair shall be specified in the Operating Rules and Regulations (Policy 16, “Policies and Procedures for Board of Directors, Committees, and Advisory Groups”). The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if:
(a) the person serving dies, resigns, or the Party that the person represents removes the person as its representative on the Board or
(b) the Party that he or she represents withdraws from the Authority pursuant to the provisions of this Agreement.

3.9.2 Secretary. The Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of the Board and all other official records of the Authority.

The duties and obligations of the Treasurer are further specified in Article 5.

3.10 Administrative Services Provider. The Board may appoint one or more administrative 264

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services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. An Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs. The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program.

ARTICLE 4: IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

4.1 Preliminary Implementation of the CCA Program.

4.2 Authority Documents. The Parties acknowledge and agree that the affairs of the Authority will be implemented through various documents duly adopted by the Board through Board resolution.

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pre-existing expenditures, and describing additional conditions, if any, associated with membership, (c) the adoption of an ordinance required by Public Utilities Code Section 366.2(c)(12) and execution of this Agreement and other necessary program agreements by the incorporated municipality or county as required by the Board, (d) payment of the membership payment, if any, and (e) satisfaction of any conditions established by the Board.

ARTICLE 5: FINANCIAL PROVISIONS

5.1 Fiscal Year. The Authority’s fiscal year shall be 12 months commencing July 1 or the date selected by the Agency and ending June 30. The fiscal year may be changed by Board resolution.

5.2 Depository.

5.2.1 All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity.

5.3 Budget and Recovery of Costs.
266

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5.3.1 Budget. The annual budget shall be approved by the Board. Staff shall report to the Board quarterly budget results and any significant budget variances. The Board may revise the budget as needed to address any significant changes and/or unexpected expenses incurred.

ARTICLE 6: WITHDRAWAL AND TERMINATION

6.1 Withdrawal.

6.1.1 Right to Withdraw. A Party may withdraw its participation in the CCA Program, effective as of the beginning of the Authority’s fiscal year, by giving no less than 12 months advance written notice of its election to do so, which notice shall be given to the Authority and each Party. Withdrawal of a Party shall require an affirmative vote of the Party’s governing board.

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the Authority will be charging to customers as well as the estimated greenhouse gas emissions rate and the amount of estimated renewable energy used with that of the incumbent utility. If the report provides that the Authority is unable to provide total electrical rates, as part of its baseline offering, to the customers that are equal to or lower than the incumbent utility or to provide power in a manner that has a lower greenhouse gas emissions rate or uses more renewable energy than the incumbent utility, a Party may immediately withdraw its membership in the Authority without any financial obligation, as long as the Party provides written notice of its intent to withdraw to the Authority Board no more than fifteen days after receiving the report.

6.1.4 Continuing Financial Obligation; Further Assurances. Except as provided by Section

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obligations were incurred prior to the withdrawal of the Party. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority and approved by a vote of the Board of Directors, to cover the Party’s financial obligations for the costs described above. Any amount of the Party’s funds held on deposit with the Authority above that which is required to pay any financial obligations shall be returned to the Party. The liability of any Party under this section 6.3 is subject and subordinate to the provisions of Section 2.2, and nothing in this section 6.3 shall reduce, impair, or eliminate any immunity from liability provided by Section 2.2.

ARTICLE 7: MISCELLANEOUS PROVISIONS

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of such amendments, at least 30 days prior to the date upon which the Board votes on such amendments.

7.9 Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given ifserved in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service.

Notices given (a) personally or by courier service shall be conclusively deemed received at the time of delivery and receipt and (b) by mail shall be conclusively deemed given 48 hours after the deposit thereof (excluding Saturdays, Sundays and holidays) if the sender receives the return receipt. All notices shall be addressed to the office of the clerk or secretary of the Authority or Party, as the case may be, or such other person designated in writing by the Authority or Party. Notices given to one Party shall be copied to all other Parties. Notices given to the Authority shall be copied to all Parties. 270
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibit A
Definitions
“Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
“Administrative Services Agreement” means an agreement or agreements entered into after the Effective Date by the Authority with an entity that will perform tasks necessary for planning, implementing, operating and administering the CCA Program or any other energy programs adopted by the Authority.
“Agreement” means this Joint Powers Agreement.
“Annual Energy Use” has the meaning given in Section 3.7.1. “Authority” means the Peninsula Clean Energy Authority. “Authority Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions, and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies. “Board” means the Board of Directors of the Authority.
“CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCA Program” means the Authority’s program relating to CCA that is principally described in Sections 2.3, 2.4, and 4.1.
“Director” means a member of the Board of Directors representing a Party. “Effective Date” means February 29, 2016 or when the County of San Mateo and at least two municipalities execute this Agreement, whichever occurs later, as further described in Section

2.1. “Implementation Plan” means the plan generally described in Section 4.1.2 of this Agreement that is required under Public Utilities Code Section 366.2 to be filed with the California Public Utilities Commission for the purpose of describing a proposed CCA Program. “Initial Costs” means all costs incurred by the County and/or Authority relating to the establishment and initial operation of the Authority, such as the hiring of a Chief Executive Officer and any administrative staff, and any required accounting, administrative, technical, or legal services in support of the Authority’sinitial activities or in support of the negotiation, preparation, and approval of one or more Administrative Services Agreements.
271
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibit A (cont.)
Definitions
“Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
“Parties” means, collectively, any municipality or county that executes this Agreement. “Party” means a signatory to this Agreement.
“Total Annual Energy” has the meaning given in Section 3.7.1. 272
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibit B
List of Parties
Parties:

Atherton
Belmont
Brisbane
Burlingame
Colma
County of San Mateo
Daly City
East Palo Alto
Foster City
Half Moon Bay
Hillsborough
Los Banos
Menlo Park
Millbrae
Pacifica
Portola Valley
Redwood City
San Bruno
San Carlos
San Mateo
South San Francisco
Woodside
273
Effective 2/29/16 as Amended
03/28/19 and 10/22/20
Exhibits C and D
Annual Energy Use and Voting Shares

ANNUAL ENERGY USE WITHIN PCE

JURISDICTIONS AND VOTING SHARES
Twelve Months Ended November [date]
Party Total kWh Voting
Share

SAN MATEO
COUNTY
Total 100
274
DATE: August 12, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Brianna Arroyo, Administrative Assistant
SUBJECT: Approval of the First Amendment to the Agreement with Shawn E. Marshall, Chief Executive Officer, for the term of July 1, 2023 to June 30, 2026, increasing the annual salary amount to $393,750 and awarding a bonus of $25,000 (Action)
Item No. 14

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

RECOMMENDATION
The Board’s Ad Hoc Committee, consisting of Board Chair Donna Colson, Board Vice Chair Marty Medina, Rick DeGolia, and Jeff Aalfs, recommends that the Board approve a First Amendment to the Agreement with Shawn E. Marshall, Chief Executive Officer of Peninsula Clean Energy (the Agreement). The Agreement commenced on July 1, 2023 and concludes on June 30, 2026 with the possibility of an extension. Based on the Committee’s comprehensive review of Ms. Marshall’s performance and goal progress, and, pursuant to paragraph four (4) of the Agreement, it recommends Board approval of an Amendment increasing Ms. Marshall’s annual base salary of $375,000 by five (5) percent resulting in an annual salary of $393,750. The Ad Hoc Committee further recommends adoption of a resolution awarding Ms. Marshall a discretionary bonus of $25,000 pursuant to paragraph four (4) of the Agreement.

BACKGROUND
Shawn E. Marshall was appointed as the Chief Executive Officer of Peninsula Clean Energy effective July 1, 2023. The Board’s Ad Hoc Committee, with the assistance of counsel, led and managed a comprehensive review process and evaluated her performance in a number of categories over her first year as CEO. The Ad Hoc Committee concluded that during her first year of service, Ms. Marshall either met or exceeded expectations in all performance categories. The Ad Hoc Committee also reviewed Ms. Marshall’s goals as reviewed and approved by the Committee In July 2023. The goals are in progress or completed to the Committee’s satisfaction. Based on her excellent performance and goal progression, the Ad Hoc Committee recommends that Ms. Marshall’s salary be increased by five percent (5%) pursuant to paragraph four (4) of the Agreement to an amount not to exceed $393,750 and this amount shall be retroactive to July 1, 2024. Further, the Board recommends that Ms.

Marshall receive the $25,000 discretionary annual bonus as described by paragraph four (4) 275
of the Agreement.

In conclusion and based on the above-described reviews and analysis, the Ad Hoc Committee recommends approval of the First Amendment to the Agreement inclusive of the pay increase and a resolution awarding the discretionary bonus as described herein. The Committee also thanks Shawn E. Marshall for her first year of service as Chief Executive Officer of PCEA. Ms.

Marshall’s performance will be reevaluated on or before June 30, 2025.

ATTACHMENTS:

Amendment 1 PCE CEO 2024 REVISED.pdf
276
RESOLUTION NO. _____________

PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF

CALIFORNIA
APPROVAL OF THE FIRST AMENDMENT TO THE AGREEMENT WITH SHAWN E.

MARSHALL, CHIEF EXECUTIVE OFFICER, FOR THE TERM OF JULY 1, 2023 TO JUNE 30, 2026, INCREASING THE ANNUAL SALARY AMOUNT TO $393,750 AND AWARDING A BONUS OF $25,000 (ACTION)
RESOLVED, by the Peninsula Clean Energy Authority (PCEA) of the County of San Mateo, State of California, that
WHEREAS, PCEA was formed on February 29, 2016; and
WHEREAS, Shawn E. Marshall was appointed to the position of Chief Executive Officer of PCEA on July 1, 2023; and
WHEREAS, the PCEA Board of Directors initiated an annual review of Ms. Marshall’s performance and goals and as such, an Ad Hoc Committee of PCEA’s Board of Directors consisting of Board Chair Donna Colson, Board Vice Chair Marty Medina, Rick DeGolia, and Jeff Aalfs, was formed; and
WHEREAS, the Board’s Ad Hoc Committee concluded that during her first year of service, Ms.

Marshall either met or exceeded expectations in all evaluated performance categories; and WHEREAS, the Ad Hoc Committee also reviewed Ms. Marshall’s goals as reviewed and approved by it in July 2023, and;
WHEREAS, the Ad Hoc Committee determined that Ms. Marshall’s evaluated goals are either appropriately in progress or completed to its satisfaction; and WHEREAS, based on her excellent performance and progress on critical goals, the Ad Hoc Committee recommends that Ms. Marshall’s salary be increased five (5) percent pursuant to paragraph four (4) of the Agreement to an amount not to exceed $393,750 and that this salary amount shall be retroactive to July 1, 2024;
WHEREAS, the Board further recommends that Ms. Marshall receive the $25,000 discretionary annual bonus as described by paragraph four (4) of the Agreement based on her excellent performance in the position of CEO; and
WHEREAS, this Board has been presented with a form of such amendment to the Agreement and has examined and approved as to both form and content and desires to enter into the same.
277
NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Chair of Peninsula Clean Energy be, and hereby is authorized and directed to execute the First Amendment to the Agreement Between the Peninsula Clean Energy Authority and Shawn E.

Marshall for Service as Chief Executive Officer for and on behalf of Peninsula Clean Energy, and the Clerk of the Board may attest the Chair’s signature thereto. Payment of the $25,000 discretionary annual bonus to Ms. Marshall is also hereby authorized. 278
Shawn E. Marshall Contract Amendment 1
AMENDMENT NO. 1 TO AGREEMENT BETWEEN PENINSULA CLEAN ENERGY AUTHORITY AND SHAWN E. MARSHALL FOR SERVICE AS CHIEF EXECUTIVE

OFFICER
THIS AMENDMENT TO THE AGREEMENT, entered into this 22nd day of August, 2024 by and between PENINSULA CLEAN ENERGY AUTHORITY, a California joint powers authority, hereinafter called "PCE," and Shawn E. Marshall; W I T N E S S E T H:

WHEREAS, the parties entered into an Agreement on July 1, 2023 for the purpose of Shawn E. Marshall’s appointment and service as the Chief Executive Officer (CEO) of Peninsula Clean Energy (“Agreement”); and
WHEREAS, based on Shawn E. Marshall’s positive performance review and at the discretion of the Board of Directors as provided by paragraph (4) of the Agreement, the parties wish to amend the Agreement to increase Shawn E. Marshall’s annual salary amount to $393,750, a five (5) percent increase from the previously approved CEO salary of $375,000.

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES HERETO AS FOLLOWS:

1. The text of paragraph three (3) shall be replaced in its entirety with the following:

Beginning July 1, 2024, CEO shall receive an annual salary of THREE

HUNDRED NINETY-THREE THOUSAND SEVEN HUNDRED AND FIFTY
DOLLARS ($393,750.00) in 24 bimonthly installments of $16,406.25. This salary will remain in effect until at least June 30, 2026.

2. Except as expressly amended herein, all other provisions of the Agreement shall remain in full force and effect.

3. This Amendment No. 1 shall take effect upon the date of execution by both parties.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as set forth below.

Peninsula Clean Energy Authority
279
Shawn E. Marshall Contract Amendment 1
Dated PENINSULA CLEAN ENERGY AUTHORITY
By
Donna Colson
Chair, PCEA Board of Directors
ATTEST:
_________________________________
General Counsel
Dated__________________ By ________________________
Shawn E. Marshall
280
DATE: August 12, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jana Kopyciok-Lande, Associate Director of Innovation Strategy SUBJECT: Discussion of Program Innovation and Funding Opportunities (Discussion) Item No. 15

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

RECOMMENDATION
No action recommended, discussion only.

BACKGROUND
Peninsula Clean Energy’s (PCE) mission is to reduce greenhouse gas (GHG) emissions by expanding access to sustainable and affordable energy solutions. PCE offers several programs to support the decarbonization of homes, businesses and the grid across three core technology areas: building electrification (BE), distributed energy resources (DERs) and transportation electrification (TE).

PCE has previously leveraged external funding for programs including attracting state funding for EV charging (under the California Electric Vehicle Infrastructure Project, “CALeVIP”), allowing customers to streamline layered funding (via BayREN for buildings, or Air Quality Management District for EVs), and currently serving as a conduit for additive funding (CEC grant through Menlo Park for buildings, and San Carlos funding for EV charging.) However, the large majority of PCE’s energy programs to date have been self-funded via PCE generation revenues.

Recent market changes, wildfire and outage concerns and regulatory procurement mandates have increased price pressure on PCE’s procurement of generation resources. Subsequently, rate affordability has become a major concern for customers and policymakers. Additionally, federal funding has become available for energy programs and projects. through the Inflation Reduction Act (IRA, 2022) and the Infrastructure Investment and Jobs Act (IIJA, 2021). For these reasons, PCE seeks to further diversify the revenue for its energy programs and pursue public funding opportunities. PCE’s new Innovation Strategy department focuses on the revenue diversification for PCE’s energy programs while also looking at the energy program landscape in California more holistically to identify opportunities that can drive innovation and achieve impact in meeting PCE’s mission to reduce GHG emissions. 281

DISCUSSION
Introducing Innovation Strategy for PCE’s Energy Programs California is a leader in innovative energy policy, resulting in a constant stream of new program and policy initiatives that would benefit from PCE’s engagement. PCE is well positioned to be a thought leader in the development of innovative and impactful energy programs in California due to its experience in running customer programs and the strong technical expertise and analytical capabilities of its staff. The Innovation Strategy department bridges the gap between PCE’s policy and programs teams by accessing policy-led funding opportunities and informing program implementation actions.

Historically, energy programs policy and implementation has been driven by the California Public Utilities Commission (CPUC). However, in recent years, the California Energy Commission (CEC) has taken a more prominent role. The CEC oversees energy programs funded via California’s general fund and frequently functions as the “State Energy Office” for federal formula grants. Federal formula grants are grant funding opportunities (GFO) provided by the federal government where the States are the applicants for funding with the federal agencies and then have discretion to disburse the federal funds within their State. The most relevant funding agencies for PCE at the federal level include the Environmental Protection Agency (EPA), the Department of Energy (DOE) and the Department of Transportation (DOT).

They disburse funding authorized under the IIJA and the IRA either via direct GFOs or the above-mentioned formula grants.

Decision-making Funnel for Grant Funding Opportunities
PCE is engaging with both state (CPUC and CEC) and federal entities (EPA, DOE and DOT) in its pursuit of funding diversification, focusing on the most promising and high-impact opportunities. To identify those opportunities among the wide variety of currently available GFOs, PCE applies the following decision-making logic in the review of GFOs:

1. Are CCAs eligible applicants?

2. Does the potential funding opportunity support PCE’s existing or planned energy programs?

3. Does the funding target energy programs rather than energy projects? Project funding is typically focused on a single energy project, like a microgrid at a local library. Program funding supports the creation of an entire energy program that supports several projects, such as create a microgrid program that will serve several critical facilities.

4. Is the funding amount at least $5 million for multi-year programs?

5. Is the application likely to be successful? PCE evaluates this question based on other metrics such as its relationships and networks with the funding agency.

Current Initiatives
PCE is actively pursuing funding and program innovation opportunities in the following two technology areas:

1. Energy Efficiency (EE) and Building Electrification (BE);

2. Distributed Energy Resources (DERs).

Energy Efficiency and Building Electrification
282
PCE is currently pursuing two opportunities to scale its electrification programs and build out a complementary energy efficiency program portfolio. Under the Equitable Building Decarbonization (EBD) Program, PCE successfully won funding in early August 2024 to establish a “Rapid Start Community” in both San Mateo County and Los Banos under the EBD. With the funding, PCE will provide income qualified customers under its expanded Home Upgrade Program comprehensive whole-home electrification services, thereby stretching PCE’s self-funded portion of the program further. PCE is expecting to leverage approximately $20,000-$27,0000 in EBD funding per home to pay for two electrification measures, as well as additional EE and remediation measures. PCE will then provide additional funding to enable whole-home electrification at participating homes. PCE’s goal is to serve 200 homes in Los Banos and 500 homes in San Mateo County over the next 5 years for total potential funding of ~$16.4 million. PCE is working on the EBD Program in coordination with its implementation partners and the lead awardees, the Center for Sustainable Energy (CSE) in Los Banos and the Association for Energy Affordability (AEA) in San Mateo County.

The EBD program is funded by the CEC and is expected to leverage federal formula funding under the DOE’s Home Efficiency Rebates (HOMES) program.

To complement the program offering provided under its existing building electrification programs, PCE is planning on filing an Application for Energy Efficiency (EE) funding with the CPUC in February of 2026. This Application will significantly expand PCE’s existing EE program offering, which is currently only focused on FLEXmarket programs. Under the EE Application, PCE is considering a broad EE portfolio, encompassing programs that may expand PCE’s offerings to segments not currently supported, such as multi-family, commercial, agricultural, and industrial customers. In addition to EE measures, PCE anticipates incorporating load shaping, electrification, and integrated demand-side management (IDSM) strategies under the Application. PCE anticipates seeking to develop a programs portfolio with a budget of approximately ~$10 million per year for program years 2028 to 2032 for a total funding request of ~$40 million. In anticipation of having to file the extensive EE Application in February 2026, PCE is currently looking to hire one full-time employee to support both PCE’s existing ratepayer-funded programs (FLEXmarket and DAC-GT), as well as the new EE Application. This position is intended to be fully funded by external funds. Any additional hiring for EE programs would only occur once the EE Application is approved and the funding is guaranteed by the CPUC.

Distributed Energy Resources (DERs)
PCE is currently engaging in two initiatives to support the development of local, distributed energy resources (DERs) in its service area, both for customer-sited resources as well as grid-connected resources. Approved by the Board in June, the PCE Self-Generation Incentive Program (SGIP) Assistance Program will provide standalone storage or solar + storage projects to income qualified customers with no upfront costs. The number of customers served depends on a number of factors including signups, qualifications, and successful applications but may be 200 or more. SGIP is a statewide incentive program administered by the investor-owned utilities (IOUs) under the auspices of the CPUC. PCE will leverage rich incentives provided under the SGIP, ranging from ~$13,200 for an average standalone storage system and $25,600 for an average solar+storage system, for a total estimated program funding of $4.6 million. In addition to the SGIP incentives, PCE will provide gap funding for any project costs beyond the SGIP incentives, such as roof repair, through its zero percent loan offering.

PCE will also connect participating customers with a pre-selected developer, making the installation process as seamless for the customer as possible. PCE launched the marketing 283
and outreach campaign to customers in mid-August and expects the SGIP applications to open up around November, with installs at customers sites happening throughout calendar year 2025. Once installed, PCE intends to aggregate the resources under a virtual power plant (VPP) strategy to provide grid services to PCE. This program also will serve as groundwork for a future general market residential solar and storage program in 2025.

As a result of the review of existing community solar programs in California, the CPUC recently authorized a new community solar program, the Community Renewable Energy (CRE) Program. The CRE is funded through CPUC ratepayer funds and is expected to also leverage formula funding from the EPA’s Solar for All Program. The program’s goal is to install distribution-connected solar or solar+storage resources closer to customer loads to support the development of local DERs and alleviate the stress on the transmission grid. CCAs are authorized by the CPUC to offer the CRE Program to its customers and access public funding to reduce the costs of developing grid-connected resources in PCE’s service area. Any customer can subscribe to a CRE project but at least 51% of the project’s capacity must be subscribed by low-income customers. To ensure that CCAs’ needs are being considered in the development of the new program, PCE is leading a Joint CCA working group to develop the implementation details of the program in collaboration with the CPUC. A secondary benefit of this advocacy is to position PCE as a thought partner and innovator with the CPUC and other stakeholders. The regulatory process is expected to last through early 2025, at which point CCAs would have the option to decide if they want to offer the CRE Program to their customers.

Upcoming initiatives
Looking ahead, PCE is considering engaging in the following new program initiatives and funding opportunities to scale and innovate on its program offerings. In the Transportation Electrification (TE) realm, PCE is considering engaging in GFOs targeting public fast charging, as well as engaging in PG&E’s vehicle-to-grid (V2X) pilots. Furthermore, PCE is discussing a variety of new rate design options, such as Real-Time Pricing (RTP) pilots, to drive decarbonization and meet the goals of the CEC’s Load Management Standards (LMS). PCE is also tracking the availability of funding for a potential community microgrid under the ratepayer-funded Microgrid Incentive Program (MIP) and Community Microgrid Enablement Program (CMEP). When significant aligned opportunities are identified, information will be brought to the Board. It must also be noted that this list should not be considered exhaustive as new opportunities arise frequently and PCE priorities may change over time.

While accessing public funding sources is an important component of diversifying PCE’s revenues and growing its energy programs, public funding alone will not allow PCE to reach its ambitious decarbonization goals. Therefore, PCE will continue to build out is financing strategy to offer customers beneficial financing solutions that can drive large-scale decarbonization, especially for non-low-income customer segments.

FISCAL IMPACT
The fiscal impact of the current initiatives can be assessed as follows:

Equitable Building Decarb Program
284
Funding opportunity: ~$20,000-$27,000 per home. Potential of ~$16.4 million total.

Impact on PCE: PCE expects to roll the funding into its existing Home Upgrade Program and does not foresee a hiring need or direct costs at this time.

Energy Efficiency Application
Funding opportunity: ~$10 million per year, $40 million total for 2028 – 2032.

Impact on PCE: PCE is currently looking to hire one full-time employee to support both PCE’s existing ratepayer-funded programs (FLEXmarket and DAC-GT), as well as the new EE Application. This position would be fully funded by CPUC ratepayer funds. Any additional hiring would only occur once the EE Application is approved and the funding is guaranteed by the CPUC.

SGIP Assistance Program
Funding opportunity: ~$13,200 for an average standalone storage system and $25,600 for an average solar+storage system. Potential of $4.5 million total.

PCE Impact: Potential financing costs of $500,000 which is within the planned residential solar and storage financing of up to $3 million for FY25. No hiring planned. 285
DATE: August 12, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Gwendolyn Rose, Director of Marketing and Community Relations SUBJECT: Discussion of Peninsula Clean Energy's Brand Strategy Update (Discussion) Item No. 16

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

RECOMMENDATION
No action recommended, discussion only.

BACKGROUND
The Marketing & Community Relations Teams is responsible for enhancing Peninsula Clean Energy’s brand reputation, educating and engaging customers, driving participation in programs, and ensuring customer satisfaction and retention.

In January 2024, PCE began the process of updating the brand strategy with the goal of establishing a customer-centric approach. We conducted an in-depth audit of the brand, clarified the brand structure (essence, architecture, and fit), updated key brand messages, and are exploring what aspects of PCE’s brand identity we may want to evolve. The following discussion provides more detail on the brand strategy process and outcomes that are being integrated through a fully redesigned website, an updated social media strategy, new content and new customer experiences.

DISCUSSION
Marketing objectives in the Board-approved Strategic Plan 2020-2025 include: (1) elevating the organization’s brand reputation, and (2) educate and engage stakeholders in order to gather input, inspire action, and drive program participation. A strong brand and positive brand experience is central to enable PCE's ability to deliver messages about electrification and decarbonization. Furthermore, we want to communicate and build our brand with a much larger percentage of customers in our service territory in order to maximize our effectiveness.

Customer research conducted in Q2 2023 indicates that there are opportunities to improve brand awareness and build brand equity, i.e. strengthen the connection between the benefits and services we offer to customers. PCE's updated brand strategy focuses on bridging the gap between current customer perception and future aspirations for the brand experience in order to drive towards a more customer-centered approach. 286
In January 2024, PCE engaged ID Lab Global due to their unique set of capabilities that combines deep expertise in energy marketing, energy efficiency, and applied behavior science with private-sector marketing and branding expertise.

Brand Insights
A brand is a cognitive and emotional shorthand used by our customers to recall the relationship they have with us and to distinguish us from others they may associate with us (e.g. PG&E). In our context, it is important to recognize that the market, customers and our business has changed since the inception of our current brand; this is normal. The evolution of the brand to support PCE 2.0 is meant to put us on the foundation we need to maintain and build resonance and relevance with customers and the market. The goal is to take all the good elements of our current brand, divest of any elements that have run their course, and infuse new brand dynamics that support our vision for the future of the organization.

Over the course of the last year, we have carefully listened to the feedback from and wants of our customers, our local market and the broader industry. We then coupled those insights with where we wish to take the Agency regarding the services we offer, our energy sources and the role we play in our community:

Insight 1 - Customer-centricity is about giving the customer the feeling and proof that they come first. It is behavior-based, not policy-based.

Insight 2 - Focus on the "why": Utility communications often bias towards trying to explain complex concepts first, and then trying to inspire engagement based on the “features/functions”. With a customer-centric lens, we will:

Communicate the personal value proposition first.

Be candid and use simple language.

Embrace that we are not here to educate everyone; we are here to provide affordable clean energy that enhances the lives of everyone we touch.

Enable customers to self-select their level of desired education.

Insight 3 – Out of PG&E’s shadow: To build a broad and positive brand relationship with customers, the PCE brand must clearly separate itself from the PG&E brand. We call this “respectful separation”.

Insight 4 – PCE/customer alignment: To get beyond only reaching the “deep green” segment, we need to "translate" PCE’s vision into immediate-term personal customer benefits.

Insight 5 – Be undeniable: We will identify “the undeniables" – the brand and message attributes that can't be disputed no matter the political or personal beliefs of the recipient.

Insight 6 – Part of the community: Because PCE is a genuine not-for-profit local agency, it has an innate ability to build trust-based relationships with customers. To do this we will:

Celebrate our not-for-profit status
Demonstrate how we are part of the fabric of the community Speak like our customers – plainly. From “community reinvestment” to “supporting our friends and neighbors”.

Insight 7 – Go from strategy to action: A powerful brand stems from actions not just words.

PCE has the vision, passion and words; now we need to live it in a new way.

Brand Structure
The Marketing team worked with IDLab to define PCE’s desired brand structure. We clarified the brand promise, including emotional rewards and functional benefits for customers (brand essence), the organization and hierarchy of PCE’s parent brand to its services and offerings (brand architecture), and how to ensure that every aspect of the brand, from visual identity to 287
messaging, aligns and resonates with the target audience (brand fit). An output of this effort is a set of 6 questions that we can use to evaluate how well proposed programs, services, offerings and/or partnerships align with our brand and our customers’ wants:

1. Does it contribute to or support the message of affordability?

2. Does it provide clean energy or enhance the clean energy message?

3. Is the experience designed with the customer in mind?

4. Does it make the customer feel respected?

5. Does it make the customer feel supported in the energy choices they make?

6. Does it deliver a sense of pride/ownership to customers? Brand Messages
To develop updated brand messages, IDLab conducted 12 In-depth interviews and 300+ online surveys. The goal of the customer research was to elicit customer attitudes, favorability, reactions, and emotional responses to different Peninsula Clean Energy brand messages, generate the insights needed to craft the optimal message that will resonates with customers and motivates them to increase their engagement with PCE and identify the associations that customers have when they think of Peninsula Clean Energy.

1. Peninsula Clean Energy serves you - our community - by focusing on affordable electricity.

2. We are your not-for-profit supplier of clean electricity.

3. We source the electricity; PG&E delivers it to you.

4. Because it’s clean electricity, you can feel good about the electricity you.

Note that these messages are not market-facing copy to be used verbatim in our marketing materials. Rather, they are a hierarchical set of key points that the majority of our brand communications will use to express our value proposition and our character in terms that resonate with customers, stakeholders and our teams.

Brand Identity
During this process, we explored opportunities to update the brand identity. It was surfaced that our current name and logo present challenges to increasing brand awareness. In short, the name “Peninsula Clean Energy” itself is long and difficult to read, say, and write. It is also geographically limiting. In addition, the abbreviation “PCE” is easily confused with “PG&E”. In terms of our logo, it has a graphic element that resembles an incandescent light bulb as well as an aspect ratio and complexity that make it a poor performer visually. We recognize that a decision to change elements of the brand identity should only be done with careful consideration of the rationale, benefits, costs, and risks. Following conversations with the team, the Marketing Subcommittee, and the Community Advisory Committee, we recommend further exploration on whether to update elements of the brand identity (name, and/or logo).

FISCAL IMPACT
We have engaged ID Lab Global for the brand strategy and implementing key elements of it with a fully redesigned website, new content, an updated social media strategy, campaign services, and a marketing technology audit and roadmap, with a not-to-exceed contract amount of $604,400 through December 31, 2024. This is included in PCE's FYE 2025 marketing budget.
288

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
289
DATE: August 11, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Marc Hershman, Director of Government Affairs
SUBJECT: Update on Legislative Activities
Item No. 18

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

RECOMMENDATION
Receive this report.

BACKGROUND

SACRAMENTO SUMMARY
The Legislature returned from its summer recess on August 5 and must adjourn for the year by the end of this month. Many legislators are planning to be in Chicago for the Democratic Convention during the week of August 19, which could slow the pace of legislative activity. All indications are that legislative business may extend to the last very day of this month.

Before it adjourned on July 3, the state Legislature passed a budget that was signed by the Governor. In addition, legislation was passed in July to place a climate bond on the November 5 statewide ballot. Further details on these two actions can be found below.

Peninsula Clean Energy took an official position on several bills in the weeks before the start of the Legislature’s summer recess. Attached to this report are letters of support for AB 1359 (Papan) and AB 2666 (Boerner), as well as a letter of renewed support for AB 2847 (Addis) filed as the bill advanced from the Assembly to the Senate for consideration. Please see the attached Matrix for details of these bills and other bills which we are monitoring and on which we are engaging.

State Budget Agreement
On June 13, the Legislature passed its version of a 2024-25 budget, meeting the June 15 state Constitutional deadline. Rather than signing that budget, the Governor engaged the Legislature in negotiations. A deal was reached on June 26, one day before the June 27 Constitutional deadline by which the Governor is required to sign or veto a budget passed by the Legislature. Under the terms of that budget deal, an additional $400 million is being provided to PG&E to extend the life of the Diablo Canyon Nuclear Power Plant. This brings the 290
loan amount being extended to $1.4 billion in order to keep the plant operating to 2030. The addition $400 million in funding was the subject of difference between the Governor and the Legislature’s budget in part because there had been an expectation that money from the federal government would cover the cost of repaying the loan. To date the federal government has only awarded $1.1 billion for the project and it appears that only $741 million of that is guaranteed.

The budget delays funding from the Department of Water Resources that would be used to establish its role as the Central Procurement Entity. Initially, $32 million had been allocated for this function, but under the 2024-25 budget agreement only $500,000 was allocated last year, $9.5 million will be allocated in 2024-25 and $22 million will be allocated in 2025-26. The budget also slashed $55 million from the Strategic Reliability Reserve housed in the Department of Water Resources. This fund was developed in 2022 to expand resources capable of managing or reducing net peak demand during extreme events.

The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 will appear as Proposition 4 on the November 5 ballot. If approved by the voters, it would authorize the issuance of bonds in the amount of $10 billion to finance projects for safe drinking water, drought, flood, and water resilience ($3.8 billion), wildfire and forest resilience ($1.5 billion), coastal resilience ($1.2 billion), extreme heat mitigation ($450 million), biodiversity and nature-based climate solutions ($1.2 billion), climate-smart, sustainable, and resilient farms, ranches, and working lands ($300 million), park creation and outdoor access ($700 million), and clean air programs ($850 million). The language in the bond requires that at least 40% of the money go to projects that aid disadvantaged communities, defined as those whose median household income is less than 80% of the area average. $850 million of the bond proceeds are to be dedicated to clean energy developments, including proposed offshore wind energy projects.

Summer Focus – EE/PPP and RA
Two issues have been at the forefront of attention for Peninsula Clean Energy’s legislative staff this summer. The first concerns the Energy Efficiency/Public Purpose Program Charge (EE/PPP) and the second concerns the Resource Adequacy Market Price Benchmark.

It came to our attention that a potential August budget trailer bill might attempt to cut "non cost effective" energy efficiency (EE) programs funded through the Public Purpose Program Charge (PPP). These "non cost effective" programs are primarily aimed at low-income customers, who are hard-to-reach and therefore cost more money to serve. The California Public Utilities Commission had already rejected the proposal from the Public Advocates Office to cut "non cost effective" energy efficiency programs in its energy efficiency proceeding.

Energy efficiency is a key strategy in California's fight against climate change. As electricity costs increase, energy efficiency reduces demand, decreases the need for grid upgrades, and complements electrification strategies so bills remain affordable. Energy efficiency funding is approximately 1.7% of total revenue collected from ratepayers statewide.

We also learned that there was a proposal by PG&E, in its 2025 Energy Resources Recovery Account (ERRA) filing at the CPUC, to freeze the Resource Adequacy (RA) Market Price Benchmark (MPB). This MPB is used in the calculation of the Power Charge Indifference 291
Adjustment (PCIA) that CCA customers pay to the incumbent utility as an exit fee. If PG&E were successful in freezing the RA MPB, it would effectively shift their costs to CCA customers, resulting in a 27% bill increase to CCA customers. Additionally, the PCIA has a true-up function, so the savings would be temporary as the costs would have to be recovered later.

Peninsula Clean Energy and other CCAs have been engaging legislators, legislative staff and administration officials on these issues. In addition, we have been part of a large coalition that formed to support EE programs. The coalition includes the County of San Mateo. A copy of a letter sent from CCAs, including Peninsula Clean Energy, to policymakers on the EE issue is included with this report.

Federal Engagement
Both of California’s U.S. Senators, Alex Padilla and Laphonza Butler, submitted the Peninsula Clean Energy request for funding to support the low-income home upgrade program to the Senate Appropriations Committee for inclusion in the Transportation, Housing and Urban Development Appropriations. Both U.S. Senators had a lengthy list of projects that they believe merited funding. After an initial review by the Committee members and staff, the list of projects was amended and PCE's project was not included.

Peninsula Clean Energy has already begun reaching out to our federal Legislator’s offices to prepare for the 2025 round of funding. We are meeting with federal legislative staff to answer any questions that they may have and to discuss how we can better support a future funding request.
(Public Policy Objective B, Key Tactic 1)
ATTACHMENTS:

AB 2847 (Addis) - Support.PDF
AB 2666 (Boerner) - Support.PDF
AB 1359 (Papan) - Support.pdf
August 2024 Bill Matrix (1).docx
CCA_EE_letter_FINAL_2.25.24.pdf
292
293
294
295
296
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 1 Bill Summary Status PCE Position CalCCA
Position
Comments
AB 817 (Pacheco)
Brown Act
Exemption:

Advisory
Committees
This bill, until January 1, 2026, would authorize
a subsidiary body, defined as one that serves
exclusively in an advisory capacity and has no
final decision-making authority, to use similar
alternative teleconferencing provisions and
would impose requirements for notice, agenda,
and public participation, as prescribed. To use
teleconferencing pursuant to this act, the bill
would require the legislative body that
established the subsidiary body by charter,
ordinance, resolution, or other formal action to
make specific findings by majority vote before
the subsidiary body uses teleconferencing for
the first time and every 12 months thereafter.

Dead.

Failed to pass
Senate Local
Government
Committee, but
granted
reconsideration
Support Support This bill started
last year and
moved through
the Assembly in
January as a
two-year bill.

This bill’s
impact on
Peninsula Clean
Energy will be
limited to the
Community
Advisory
Committee
AB 1359 (Papan)
CEQA: Geothermal
Exploratory
Projects
This bill would repeal the requirement that the
Geologic Energy Management Division in the
Department of Conservation be the lead agency
for all geothermal exploratory projects for
purposes of California Environmental Quality
Act (CEQA). This bill would declare that it is to
take effect immediately as an urgency statute.

Awaiting vote on
the Senate Floor.

Passed Senate
Committees on
Natural Resources
& Water and
Environmental
Quality
Support None This bill was
brought to
Asm. Papan at
the request of
Sonoma Clean
Power to
facilitate
additional
geothermal
projects
AB 1550 (Bennett) Would define green hydrogen as hydrogen produced utilizing non biogas/biomass
Dead None None
297
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 2 Bill Summary Status PCE Position CalCCA
Position
Comments
Green Hydrogen
Standard
renewable electricity to electrolyze water into
hydrogen. Also defines renewable hydrogen as
hydrogen produced utilizing renewable
electricity, except for dairy biogas, to electrolyze
water into hydrogen The bill would require all
hydrogen used in transportation and energy
sectors to be green or renewable by 2045.
2-year bill that
failed to pass the
Assembly by 1/31
deadline
AB 1567 (Garcia)
Climate Bond
Proposes a $15.9 billion climate resilience bond
to fund programs responding to drought/flood,
wildfire, sea-level rise, etc. The bond proposes
$2 billion for energy resilience programs such as
zero-emission vehicle infrastructure and clean
energy transmission projects.

The Legislature
passed a $10 billion
climate bond in SB
867.

AB 1567 is 2-year
bill currently
pending in Senate
Committee on
Natural Resources
& Water
None None
AB 1834 (Garcia)
Reliability Reserve
Existing law establishes the Electricity Supply
Strategic Reliability Reserve Program and
requires the Department of Water Resources to
implement projects, purchases, and contracts
related to the procurement of electrical
resources, as provided. If DWR determines, by
June 30, 2027, that resources procured through
the program were used in a given month to
Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

None Support
298
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 3 Bill Summary Status PCE Position CalCCA
Position
Comments
meet a LSE’s or POU’s identified reliability need,
existing law requires the PUC or CEC to annually
assess a capacity payment on each LSE or POU,
respectively, that during that same month failed
to meet its system resource adequacy
requirements. Existing law requires the PUC or
the CEC to determine a capacity payment unit
cost in kilowatt per month for LSEs or POUs that
is based on the monthly cost of the resources
procured using the moneys from the program,
as provided. This bill would require the PUC and
the CEC, in determining the capacity payment
unit cost, to consider mitigating factors,
including the extent of scarcity-driven or
otherwise above-market costs of those
resources procured using moneys from the
Department of Water Resources Electricity
Supply Reliability Reserve Fund
AB 1852 (Pacheco)
Clean Power
Alliance
Current law makes certain information
presented to the joint powers agency in closed
session confidential, and authorizes a member
of the legislative body of a local agency member
to disclose certain information obtained in a
closed session to legal counsel of that member
local agency or to other members of the
legislative body of that local agency in a closed
session. Current law further authorizes the
Signed by
Governor Newsom
and chaptered into
law.

None None This bill is
sponsored by
the Clean
Power Alliance
299
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 4 Bill Summary Status PCE Position CalCCA
Position
Comments
Clean Power Alliance of Southern California to
authorize a designated alternate member of its
legislative body who is not a member of the
legislative body of a local agency member to
attend its closed sessions and to make similar
disclosures described above. Current law
repeals these provisions relating to the Clean
Power Alliance of Southern California on
January 1, 2025. This bill would extend that
repeal date to January 1, 2030.

AB 1912 (Pacheco) Would require, before holding a committee hearing on a bill that proposes a new or
modifies an existing requirement imposed on an
Investor Owned Utility (IOU) or proposes a new
or modifies an existing program that would be
paid for by IOU ratepayers, that a request be
made to the University of California, Berkeley,
to prepare a written analysis of the bill assessing
impacts to rates, other potential funding
sources, etc.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

None None
AB 1921 (Papan)
Linear Generators
This bill would expand the definition of
“renewable electrical generation facility”, for
purposes of compliance with the Renewable
Portfolio Standard (RPS), to include a facility
Awaiting vote on
the Senate Floor.

Passed Senate
Committee on
None None This bill is
sponsored by
Mainspring, a
company
300
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 5 Bill Summary Status PCE Position CalCCA
Position
Comments
that uses linear generators using RPS eligible
fuels.

Energy, Utilities, &
Communications
located in
Menlo Park
AB 1999 (Irwin)
Fixed Charges
The bill would permit the California Public
Utilities Commission (CPUC or PUC) to authorize
fixed charges that, as of January 1, 2015, do not
exceed $5 per residential customer account per
month for low-income customers enrolled in
the California Alternate Rates for Energy (CARE)
program and that do not exceed $10 per
residential customer account per month for
customers not enrolled in the CARE program.

The bill would authorize these maximum
allowable fixed charges to be adjusted by no
more than the annual percentage increase in
the Consumer Price Index for the prior calendar
year, beginning January 1, 2016.

Held on Assembly
Appropriations
Suspense File and is
now dead.

None None This bill is in
response to the
Income
Graduated
Fixed Charge
proceeding at
the CPUC as
authorized by
AB 205 (2022).

The CPUC voted
4-0 to institute
a fixed charge
of $24.15 per
month with
reduced fixed
charges for
Family Electric
Rate Assistance
(FERA) and
CARE
customers
AB 2037 (Papan) This bill would grant county sealers jurisdiction over publicly operated electric vehicle (EV)
chargers. Existing law requires county sealers to
Awaiting vote on
the Senate Floor.

None None
301
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 6 Bill Summary Status PCE Position CalCCA
Position
Comments
County Sealers: EV
Chargers
test all weighing and measuring devices used for
commercial purposes in the counties in which
they have jurisdiction. This includes privately-operated EV chargers. However, a 1977 Attorney General (AG) opinion limited the
jurisdiction of county sealers by excluding
publicly owned weighing and measuring
devices. This did not present an issue until
recently, when cities and counties began
owning and operating many commercial EV
chargers.

Passed Senate
Committee on
Judiciary.

Passed the Senate
Committee on
Business &
Professions
AB 2054 (Bauer-Kahan)
PUC
Commissioners
This bill would prohibit a member of the Energy
Commission or the CPUC from being employed
by an entity subject to regulation by the Energy
Commission or CPUC for a period of 1 year after
ceasing to be a member of the commission.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Senate
Committee on
Energy, Utilities, &
Communications
Removing
Support
None The
amendments
have weakend
the bill to the
point we are no
longer
supporting the
bill
AB 2083 (Berman)
Industrial
Decarbonization
This bill would require the CEC, by July 1, 2026,
to evaluate opportunities to increase
electrification of industrial heat processes to
meet the state’s industrial emissions reduction
goals, as provided. The bill would, as part of the
California Air Resources Board’s (CARB) next
Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Support None We decided to
support this bill
as
electrification
will be a main
strategy to
302
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 7 Bill Summary Status PCE Position CalCCA
Position
Comments
update to the scoping plan occurring on or after
January 1, 2025, require CARB to assess the
potential for the state to reduce the emissions
of greenhouse gasses from the state’s industrial
facilities’ heat application equipment and
processes, as specified.

Passed Senate
Committees on
Environmental
Quality and Energy,
Utilities, &
Communications
decarbonizing
the industrial
sector
AB 2329
(Muratsuchi)
California
Affordable
Decarbonization
Authority
Would require the PUC and CEC to jointly
authorize the establishment of the California
Affordable Decarbonization Authority as a
nonprofit public benefit corporation, to be
governed by an independent board of directors
appointed by the Governor, Speaker of the
Assembly, and Senate Committee on Rules. The
bill would require the authority to comply with
Bagley-Keene Open Meeting Act and the
California Public Records Act. The bill would
establish the Climate Equity Trust Fund as a
trust fund, separate and apart from all public
moneys or funds of the state, and would, upon
appropriation by the Legislature, require that
the moneys in the trust fund be expended by
the authority for the benefit of electricity
customers and to promote affordable electricity
rates, as specified.

Held on Assembly
Appropriations
Suspense File and is
now dead.

None Support This bill was
previously
attempted as
SB 1020 (Laird)
AB 2513 (Pellerin) This bill would prohibit a person from selling, attempting to sell, or offering to sell to a
consumer in this state a gas stove, as defined,
Awaiting vote on
the Senate Floor
Support None
303
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 8 Bill Summary Status PCE Position CalCCA
Position
Comments
Gas Stoves and
Ranges: Warning
Label
that is manufactured on or after January 1,
2025, unless the gas stove bears a label that
sets forth a specified statement relating to air
pollutants that can be released by gas stoves
and that is attached to the gas stove in a
conspicuous location.

Passed Senate
Committee on
Environmental
Quality
AB 2619 (Connolly)
Net Energy
Metering (NEM)
This bill would require the CPUC to develop a
new standard contract or tariff providing NEM
for eligible customer-generators of IOUs.

Dead.

Never heard in
Assembly
Committee on
Utilities & Energy
None None
AB 2666 (Boerner)
Public Utilities:

Rate of Return
This bill would require the PUC, following the
approval of each general rate case, to review
which costs, if any, differed from the general
rate case forecasts for each IOU or gas
corporation, and to adjust the authorized
revenue requirement in the subsequent general
rate case, as appropriate, based on the actual
past costs the corporation records. The bill
would require the Commission to establish
guidelines for electrical corporations and gas
corporations to calculate and report annually
their actual rates of return to the Commission.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Senate
Committee on
Energy, Utilities, &
Communications
Support None This bill is
opposed by the
California State
Association of
Electrical
Workers,
California State
Pipe Trades
Council, and
Coalition of
California Utility
Employees
AB 2672 (Petrie-Norris)Existing law requires the PUC to establish the CARE program. Existing law establishes the
Multifamily Housing Program administered by
Scheduled for
August 15, 2024,
Appropriations
None Support
304
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 9 Bill Summary Status PCE Position CalCCA
Position
Comments
CARE Program the Department of Housing and Community
Development which includes a disbursement
system referred to as Homekey. This bill would
require that the CARE program include public
housing authority owned or administered
Homekey housing facilities where the residents
of the facility substantially meet the CARE
program’s income eligibility requirements, as
determined by the PUC, and the account is in
the name of Homekey.

Suspense File
hearing.

AB 2779 (Petrie-Norris)
CAISO Transmission
Planning
Existing law establishes the California
Independent System Operator (CAISO) as a
nonprofit, public benefit corporation to manage
the transmission grid and related energy
markets, as provided. This bill would require the
Independent System Operator, upon approval
of each transmission plan, to report to the
Public Utilities Commission and to the relevant
policy committees of each house of the
Legislature any new use of any grid enhancing
technology that is deemed reasonable by the
Independent System Operator in that plan and
the cost or efficiency savings of the deployment
of that grid enhancing technology.

Awaiting vote on
the Senate Floor
Passed Senate
Committee on
Energy, Utilities &
Communications
None Support
AB 2815 (Petrie-Norris)Would require the Energy Commission to establish a program to provide grants for repairs
to EV charging infrastructure that has been in
Scheduled for
August 15, 2024,
Appropriations
Support None The funding for
this bill would
come from the
305
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 10 Bill Summary Status PCE Position CalCCA
Position
Comments
EV Charging Repair
Grants
operation for at least 5 years and that is in a
publicly available parking space. The bill would
authorize grant funding to be used for the cost
to repair or replace an EV charging station. The
bill would require the commission to allocate at
least 50% of grant funding to low-income
communities and disadvantaged communities.

Suspense File
hearing.

Passed Senate
Committee on
Energy, Utilities, &
Communications
Clean
Transportation
Program which
is funded by
registration
fees and smog
checks.

AB 2847 (Addis)
IOU Revenue
Requirements for
Proposed Capital
Expenditures
This bill would require an IOU’s application
requesting authorization for or recovery of
capital expenditures to include the IOU’s best
estimate of the application’s impact on annual
revenue requirement for each year that the
capital expenditures are expected to remain in
the application’s rate base and the net present
value of those impacts.

Awaiting vote on
the Senate Floor
Passed Senate
Committee on
Energy, Utilities &
Communications
Support None The bill
language
specifically
references
undergrounding
AB 2891 (Friedman)
Electrical Demand
Forecasts
This bill would require the Energy Commission,
on or before July 1, 2026, and in consultation
with the PUC, CAISO, load-serving entities, and
resource aggregators, to adopt a set of upfront
technical requirements and load automation
standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system
operation.

Held on Assembly
Appropriations
Suspense File and is
now dead
None None
AB 3238 (Garcia) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare,
or cause to be prepared, and certify the
Scheduled for
August 15, 2024,
Appropriations
None Support
306
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 11 Bill Summary Status PCE Position CalCCA
Position
Comments
CEQA: Electrical
Infrastructure
Projects
completion of an environmental impact report
on a project that it proposes to carry out or
approve that may have a significant effect on
the environment or to adopt a negative
declaration if it finds that the project will not
have that effect. The CEQA also requires a lead
agency to prepare a mitigated negative
declaration for a project that may have a
significant effect on the environment if revisions
in the project would avoid or mitigate that
effect and there is no substantial evidence that
the project, as revised, would have a significant
effect on the environment. The CEQA exempts
certain projects from its requirements, including
actions necessary to prevent or mitigate an
emergency. Existing law prohibits an electrical
corporation from beginning the construction of
a line, plant, or system, or extensions of those
facilities without first having to obtain from the
Public Utilities Commission a certificate that the
present or future convenience and necessity
require or will require the construction. Existing
law specifies that the certificate is not required
for the extension, expansion, upgrade, or other
modification of existing electrical transmission
facilities. This bill would, for electrical
infrastructure projects, as defined, designate
Suspense File
hearing.
307
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 12 Bill Summary Status PCE Position CalCCA
Position
Comments
the commission as the lead agency for purposes
of the CEQA, would require the commission to
prescribe procedures for the preparation of the
appropriate environmental review document
for those projects, and would specify the
manner in which the environmental review for
those projects is to be conducted. The bill would
repeal these provisions on January 1, 2035. This
bill contains other existing laws.

AB 3246 (Garcia)
Advanced
Reconductoring
This bill would require the PUC, on or before
January 1, 2026, to authorize an IOU to seek the
PUC’s approval of advanced reconductoring, as
defined, of its existing electrical transmission
facilities through the commission’s informal
advice letter process, as specified.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Senate
Committee on
Energy, Utilities, &
Communications
None Support
AB 3256 (Irwin)
Memorandum and
Balancing
Accounts: Reports
to the Legislature
This bill would require the commission to
include, as part of its annual update to the
Legislature on the status of its review of
balancing accounts, the amount of funds in, and
the expenditures from, the memorandum
accounts and balancing accounts of each public
utility as they relate to wildfire management
and emergencies. The bill would require the
Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Senate
Committee on
None None
308
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 13 Bill Summary Status PCE Position CalCCA
Position
Comments
commission to annually determine if each
memorandum account and each balancing
account has achieved its intended purpose in
the previous year.

Energy, Utilities, &
Communications
SB 59 (Skinner)
Bidirectional
Charging
Would authorize California Air Resources Board
(CARB), working with the California Energy
Commission (CEC) and the PUC, to require any
weight class of battery electric vehicle to be
bidirectional capable, as defined, if it
determines there is a sufficiently compelling
beneficial bidirectional-capable use case to the
battery electric vehicle operator and electrical
grid. The bill would require the board, in its
analysis, to consider vehicle readiness and duty
cycles required of vehicles operated by essential
service providers.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Assembly
Committee on
Utilities & Energy
None Support This is a gut and
amend bill to
revisit the issue
of bidirectional
charging that
Senator Skinner
previously
attempted in SB
233.

SB 382 (Becker)
Property
Disclosures:

Electrical Systems
This bill would, on or after January 1, 2026,
require a seller of a single-family residential
property to deliver a specified disclosure
statement to the prospective buyer regarding
the electrical systems of the property.

Pending on the
Senate Floor for a
concurrence vote.

Passed the
Assembly
None None
SB 867 (Allen)
Climate Bond
Proposes a $10 billion climate resilience bond to
fund programs responding to drought/flood,
wildfire, sea-level rise, etc. The bond proposes
$850 million for energy resilience programs
Placed on the
November 5, 2024,
ballot.

None None The final bond
proposal came
together in the
final week
309
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 14 Bill Summary Status PCE Position CalCCA
Position
Comments
such as clean energy transmission projects and
support offshore wind activities.

Passed by the
Legislature and
signed.
before summer
recess.

SB 938 (Min)
Utility
Accountability Act
Would prohibit, except as provided, an electrical
or gas corporation from recording various
expenses associated with political influence
activities or with advertising to accounts that
contain expenses that the electrical or gas
corporation recovers from ratepayers. The bill
would require an electrical or gas corporation to
provide the Public Utilities Commission with all
information deemed necessary to monitor
compliance with that prohibition. The bill also
would require an electrical or gas corporation,
for each business unit of the corporation that
performs work associated with political
influence activities or advertising, to annually
file with the commission a report containing
specified information. The bill would require the
commission to make the report publicly
available.

Dead.

Failed to pass the
Senate Committee
on Energy, Utilities
and
Communications
None None This bill is co-sponsored by
TURN and
Earthjustice.

SB 993 (Becker) This bill requires the PUC to develop a special tariff (set of electricity rates) to support the
development of green hydrogen and the
electrification of industrial heat by providing
Held on Senate
Appropriations
Suspense File and is
now dead
None None
310
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 15 Bill Summary Status PCE Position CalCCA
Position
Comments
Clean energy
development
incentive rate tariff
attractive rates at times when we have
abundant clean energy (and high rates at other
times). This tariff will offer these new
customers a great deal: pricing to help them be
cost-competitive, but only if they operate in a
way that relies on clean energy, avoids new grid
infrastructure costs, and helps us maintain a
reliable grid.

SB 1014 (Dodd)
Wildfire safety: The
California Wildfire
Mitigation Strategic
Planning Act.

Existing law establishes the Office of the State
Fire Marshal in the Department of Forestry and
Fire Protection and establishes the Deputy
Director of Community Wildfire Preparedness
and Mitigation within the office. Existing law
makes the deputy director responsible for fire
preparedness and mitigation missions of the
department, as provided. This bill would require
the deputy director, on or before January 1,
2026, and every 3 years thereafter, to prepare a
Wildfire Risk Mitigation Planning Framework
sufficient to quantitatively evaluate wildfire risk
mitigation actions, as provided. The bill would
require the framework to allow for geospatial
evaluation and comparison of wildfire risk
mitigation actions, as defined, sufficient to
direct coordinated mitigation efforts and long-term collaborative mitigation. This bill contains other related provisions.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

None Support
311
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 16 Bill Summary Status PCE Position CalCCA
Position
Comments
SB 1018 (Becker) The cheapest and cleanest way to provide renewable energy to power hydrogen
electrolyzers or to displace fossil fuels in
industry would be directly connecting those
renewables to those new clean energy loads.

This is prevented today by the ""over-the-fence
rule,"" which allows ""behind the meter"" usage
of electricity only in very limited cases (such as
when generated on the same property as
rooftop solar). That doesn't work when you
need acres of solar panels to provide enough
power for a big factory. This bill will create a
targeted new exception to the over-the-fence
rule to enable off-grid use of renewables for
these new, climate-beneficial purposes.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Assembly
Committee on
Utilities & Energy
None None
SB 1095 (Becker)
Cozy Homes
Cleanup Act
This bill updates code ambiguities to ensure
individuals can switch from gas to electric
appliances, allowing Californians to opt for
cozier and healthier zero-emission homes. To do
so, the bill: (1) Prevents HOAs from
implementing provisions which prevent the
switch from gas to electric appliances, (2)
Clarifies the authority of individuals to replace
gas with electric appliances in mobile and
manufactured homes, and (3) Provides the
Department of Housing and Community
Development authority to update its regulations
Held on Senate
Appropriations
Suspense File and is
now dead
Support Support
312
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 17 Bill Summary Status PCE Position CalCCA
Position
Comments
should further legal uncertainty inhibit
appliance replacement.

SB 1130 (Bradford)
IOU Reports on
Family Electric Rate
Assistance
Would require the PUC to review each IOU’s
report to ensure it has sufficiently enrolled
eligible households in the FERA program
commensurate with the proportion of
households the commission determines to be
eligible within the electrical corporation’s
service territory. If the commission, in its review
of a report, determines an IOU has not
sufficiently enrolled eligible households in the
FERA program, the bill would require the
commission to require the IOU to develop a
strategy and plan to sufficiently enroll eligible
households within 3 years of the adoption of
the strategy and plan.

Scheduled for
August 15, 2024,
Appropriations
Suspense File
hearing.

Passed Assembly
Committee on
Utilities & Energy
Support Support
SB 1165 (Padilla) Existing law authorizes a person proposing an eligible facility, including an electrical
transmission line carrying electricity from
certain other facilities that are located in the
state to a point of junction with any
interconnected electrical transmission system,
to file an application, on or before June 30,
2029, with the State Energy Resources
Conservation and Development Commission
(Energy Commission) to certify a site and
related facility for purposes of specified
Held on Senate
Appropriations
Suspense File and is
now dead
None Support
313
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 18 Bill Summary Status PCE Position CalCCA
Position
Comments
environmental review procedures. This bill
would expand the facilities eligible to be
certified pursuant to the provisions described
above by the Energy Commission and deemed
environmental leadership development projects
to include electrical transmission projects. The
bill would require an applicant applying for
certification of an electrical transmission project
to take certain actions, including, among other
actions, to avoid or minimize significant
environmental impacts in any disadvantaged
community. This bill contains other related
provisions and other existing laws.

SB 1305 (Stern)
Virtual Power Plant
Procurement
Mandate
This bill would require each Investor-Owned
Utility (IOU) to procure from virtual power
plants, defined as actively coordinated
aggregations of behind-the-meter distributed
energy resources that can perform certain
functions, sufficient capacity to meet specified
minimum capacity requirements by certain
dates. The bill would require capacity procured
from a virtual power plant by an IOU pursuant
to these provisions to be used to meet the
resource adequacy requirements established for
the load-serving entity.

Dead.

Senator Stern
never presented
the bill in Senate
Committee on
Energy, Utilities
and
Communications
None None
SB 1374 (Becker) When the PUC changed net energy metering for behind-the-meter solar, it retained the ability
Scheduled for
August 15, 2024,
None None
314
Status of 2024 Legislative Session Bills
As of August 9, 2024
With Peninsula Clean Energy and CalCCA Adopted Positions 19 Bill Summary Status PCE Position CalCCA
Position
Comments
Restoring Self-consumption
Benefits for On-Site
Generation
for solar customers to avoid purchasing energy
from the utility for solar power that was self-consumed (during the same time in which it was generated) while drastically lowering the value
of excess solar power that is exported to the
utility. For virtual net energy metering (VNEM)
and net energy metering aggregation (NEMA)
customers (where energy from a carport solar
system over a school parking lot could be
virtually netted against power usage by
separately metered school buildings), the PUC
eliminated any credit for self-consumption,
making it an even worse deal for these
customers. This bill would re-establish credit
for self-consumption for VNEM and NEMA for
apartment complexes and public schools,
equivalent to what is provided for single family
homes.

Appropriations
Suspense File
hearing.

Passed Assembly
Committee on
Utilities & Energy
315

July 25, 2024
The Honorable Mike McGuire
President Pro Tempore, California State Senate
1021 O Street, Suite 8518
Sacramento, CA 95814
The Honorable Robert Rivas
Speaker, California State Assembly
1021 O Street, Suite 8330
Sacramento, CA 95814
Subject: Preserving Energy Efficiency Programs that Uphold California’s Clean Energy, Grid Reliability, Affordability, and Equity Goals
Dear President Pro Tem McGuire and Speaker Rivas,
We write to express interest in your efforts to explore legislative options to reduce costs to electric ratepayers. Community choice aggregators (CCAs), governed by boards of local elected officials, are at the forefront of the state’s clean energy transition, having contracted for over 14 gigawatts (GWs) of clean energy resources. We believe that affordable electric rates and bills are critical not only to the clean energy transition, but also to California’s broader decarbonization efforts. If rates and bills are too high, customers will be less willing to switch to electric vehicles and electric appliances powered by clean energy. We therefore support a continued focus on affordability.

We urge caution however, when considering reductions to spending on energy efficiency programs.

Reducing energy efficiency programs will negatively impact our efforts to advance an equitable clean energy transition, customer affordability, and grid reliability. Energy efficiency funds collected from ratepayers represent a small portion of customer bills. Since 1996, the state’s investor-owned utilities have been required by law to collect a non-bypassable charge on ratepayers known as the public purpose program (PPP) charge. The funds are used for prudent investments in energy efficiency, in addition to rate discounts for low-income customers, renewable energy, as well as research and development.

Although it fluctuates annually, based on information from the California Public Utilities Commission (CPUC), energy efficiency funds are just over 16% of PPP costs recovered from ratepayers and 1.7% of total annual revenue collected. While prudent grid investments are also needed to meet our clean energy and reliability goals, energy efficiency costs stand in contrast to other expenses, such as distribution, transmission, and wildfire investments. For example, according to the 2023 AB 67 California Electric & Gas Utility Costs Report, distribution costs increased 30% since 2013 and now represent nearly 44% of costs collected from ratepayers. 316
Joint-CCA Letter on Energy Efficiency Funding – Page 2
Energy efficiency programs have historically been run by IOUs and most of them still are to this day.

Recognizing local governments are close to the residents they serve, state law authorized CCAs in 2003 to also provide energy efficiency programs in their service areas. In 2012, the state further authorized local governments to form regional energy networks (RENs) that can offer energy efficiency programs to benefit their communities. Our organizations administer, or are planning to administer, energy efficiency programs through these two pathways and are focused on customers who have historically not been served by energy efficiency programs or live in disadvantaged communities. This is a key aspect of our local control of energy efficiency programs. As an extension of the communities we serve, our programs are thoughtfully designed to meet local needs while simultaneously supporting progress toward statewide climate and clean energy goals.

Our programs offer, or will offer, traditional energy efficiency benefits such as installing insulation in homes, as well as more sophisticated benefits like automated HVAC and lighting controls that not only allow a customer to reduce their energy consumption but also provide tremendous grid reliability benefits. Some programs also offer measures designed to simultaneously deliver energy savings as well as health, safety, and comfort benefits. These benefits are essential for low-income and disadvantaged community residents historically underserved by energy efficiency programs and who face rising climate impacts.

Our programs directly contribute to the state’s efforts to double energy efficiency savings by 2030 as required by SB 350 (Chapter 547, Statutes of 2015) the Clean Energy & Pollution Reduction Act of 2015, and the state’s 7 GW load shift goal established by the CEC pursuant to SB 846 (Chapter 239, Statutes of 2022). The inaugural SB 100 Joint Agency Report required by SB 100 (Chapter 312, Statutes of 2018), the 100 Percent Clean Energy Act of 2018, recommended, among other things, to “continue to prioritize energy efficiency and load flexibility to minimize total implementation costs." California’s Clean Energy Transition Plan released in May 2023 also opines that energy efficiency will be critical.

We look forward to engaging in a dialogue with your offices during the remaining weeks of the legislative session to promote ratepayer affordability while also ensuring critical energy efficiency programs – especially those with an equity focus – continue to have a viable operational pathway that avoids duplication and promotes transparency.

Please contact Amy Costa ([email protected]) with any questions about our comments.

Sincerely,
Patrick Welch
Senior Legislative Manager, SDCP
Stephanie Chen
Director of Legislative Affairs, MCE
317
Joint-CCA Letter on Energy Efficiency Funding – Page 3
Alec Ward
Principal Legislative Manager, Ava
Scott Green
Scott Green
Senior Government Affairs Manager, SJCE
Marc Hershman
Director of Government Affairs, Peninsula
Clean Energy
Richard Engel
Acting Executive Director, Redwood Coast
Energy Authority
Cc: The Honorable Gavin Newsom, Governor of California
The Honorable Cottie Petrie Norris, Chair, Assembly Committee on Utilities & Energy The Honorable Steven Bradford, Chair, Senate Committee on Energy, Utilities & Communications
The Honorable Jesse Gabriel, Chair, Assembly Committee on Budget The Honorable Scott Wiener, Chair, Senate Committee on Budget & Fiscal Review The Honorable Steve Bennett, Chair, Assembly Budget Subcommittee #4 on Climate Crisis, Resources, Energy and Transportation
The Honorable Josh Becker, Chair, Senate Budget Subcommittee #2 on Resources, Environmental Protection and Energy
318
DATE: August 9, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Roy Xu, Director of Power Resources
SUBJECT: Energy Supply Procurement Quarterly Report
Item No. 19

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

BACKGROUND
In January 2020, the Board approved Policy Number 15 – Energy Supply Procurement Authority. “Energy Procurement” shall mean all contracting for energy and energy-related products for Peninsula Clean Energy, including but not limited to products related to electricity, capacity, energy efficiency, distributed energy resources, demand response, and storage.

Energy Supply Procurement Authority is exercised according to the following guidelines:

1. Short-Term Agreements:
a. Chief Executive Officer (CEO) 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. CEO 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. 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.

Table 1
Product Year-Ahead Compliance
Obligation
Term Limit
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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 31
st 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
31 st 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 31
st of the
prior year
Up to 12 months

2. Medium-Term Agreements:

CEO, 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 :

CEO, in consultation with the General Counsel and the Board Chair, or Board Vice Chair in the event that the Board Chair is unavailable, has authority to execute amendments to Energy Procurement contracts that were previously approved by the Board.

DISCUSSION
This memo summarizes all Short-Term and Medium-Term Energy Supply Procurement agreements entered into by the Chief Executive Officer since the last regular Board meeting in May 2024. This summary is provided to the Board for information purposes only.

Execution Month Purpose Counterparty Term
April Purchase of GHG-Free
Energy
Avangrid Renewables,
LLC
9 Months
May
Purchase of Energy
Hedge Hetch Hetchy Power 1 Month
320
May
Purchase of GHG-Free
Energy
Tenaska Power
Services Co.
9 Months
May
Purchase of GHG-Free
Energy
Constellation Energy
Generation, LLC
9 Months
May
Purchase of GHG-Free
Energy
City of Roseville 9 Months
May
Purchase of GHG-Free
Energy
Dynasty Power Inc. 6 months
May
Purchase of GHG-Free
Energy
Constellation Energy
Generation, LLC
9 Months
May
Purchase of Resource
Adequacy
City of Vernon 1 Month
May Sale of PCC1 Energy
Shell Energy North
America (US), L.P.
6 months
May
Sale of Resource
Adequacy
City of Vernon 1 Month
June
Purchase of GHG-Free
Energy
Dynasty Power Inc. 12 months
June
Purchase of GHG-Free
Energy
Powerex Corp 6 months
June
Purchase of GHG-Free
Energy
Dynasty Power Inc. 6 months
June
Purchase of GHG-Free
Energy
Avangrid Renewables,
LLC
6 Months
June Sale of Energy Hedge
TransAlta Energy
Marketing (U.S.) Inc.
1 month
July
Sale of Resource
Adequacy
City of Banning 1 month
July
Sale of Resource
Adequacy
Valley Electric
Association, Inc
1 month
July
Sale of Resource
Adequacy
Clean Energy Alliance 1 month
August Sale of GHG-Free
Energy
Shell Energy North
America (US), L.P.
5 months
August Sale of PCC1 Energy
Orange County Power
Authority
18 months
August Sale of PCC1 Energy
Shell Energy North
America (US), L.P.
5 months

STRATEGIC PLAN
The above contracts executed in April, May, June, July and August 2024, support the Power Resources Objective 2 for Procurement: Procure power resources to meet regulatory mandates and internal priorities at affordable cost.
321
DATE: August 8, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Rafael Reyes, Senior Director of Energy Programs
SUBJECT: Community Programs Quarterly Report
Item No. 20

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

BACKGROUND
The following programs are in progress, key metrics are provided in the table here and detailed information is provided below.

Buildings
Appliance
3,294 measures rebated (+135 M/M); 610
loans issued (+62 M/M)
Home Upgrade 305 homes completed as of May 31st
GovBE
5 proposals selected for funding, $1m in
incentives and $1.6 million in loans.

Reach Codes
19 of 22 adopted. 2 cities have adopted new
“energy performance” reach codes post-Berkeley lawsuit
Distributed Resources
Residential Solar + Storage
597 installs. Enrollment in the program is
closed. Low income SGIP program under
development.

FLEXmarket
50 residential building electrification projects
being tracked,
8 commercial energy efficiency projects being
tracked
GovPV
Rnd 1: 12 sites, 1.7MW. 3 sites live. Rnd 2:

Total of 34 sites, 4 MW solar. 22 sites under
development.

Transportation
322
Ev Charging
Ports to date: 1,100 (+21 M/M). Pipeline:
3,500+
Used EV 650 EVs since 2021. (+17 M/M)
E-Bikes Total 989, 185 e-bikes in 2024.

GovEV (Fleets)
11 agencies enrolled. 30+ chargers in
progress with Menlo Park and 8 chargers in
progress with Burlingame.

Managed Charging
700+ enrolled. Future program options under
evaluation.

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). The program includes no-cost technical assistance, model codes and other tools. 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
City Progress: Most cities with reach codes from the prior cycle have re-adopted or adopted for the first time. Two cities have adopted existing building codes (San Mateo, Portola Valley).

San Bruno and Half Moon Bay are updating their EV reach codes in anticipation of state code updates.

Berkeley 9th Circuit Ruling – In April 2023, the 9th circuit court of appeals ruled against Berkeley in a case brought by the California Restaurant Association and funded by Sempra (SoCalGas.) Berkeley’s requested for an En Banc rehearing was declined this month.

The Berkeley ruling does not impact EV charging reach codes.

Alternative building electrification model codes have been created to allow cities to adopt codes that would represent a distinctly different legal approach than the Berkeley approach.

Some member agencies have paused enforcement of all-electric reach codes, while others are continuing to enforce their all-electric mandates.

Multiple San Mateo jurisdictions are considering updating their reach codes using alternative model code approaches. East Palo Alto, Brisbane, San Jose, San Luis Obispo, Santa Cruz, and Los Altos Hills have already adopted alternative codes.

For more information, please visit https://bayareareachcodes.org/

2. Buildings Programs

2.1 Appliance Rebates and Zero Percent Loans
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Background: In May 2020, the Board approved an initial 4-year plan for electrifying existing buildings. This included implementing an appliance rebate program. Peninsula Clean Energy launched the heat pump water heater (HPWH) rebates in January 2021. Additionally, in August 2021, the Board approved an On-Bill Financing program (now referred to as the Zero Percent Loan program) to be treated as a balance sheet asset and not part of the annual budget. The program offers qualified residential customers a 0% interest loan up to $10,000 to fund the cost of eligible electrification and complementary electrical and energy efficiency upgrades.

On October 17, 2022, Peninsula Clean Energy launched its Zero Percent Loan program and rolled out modifications and enhancements to the Appliance Rebates Program including increasing its HPWH rebate, launching a new heat pump heating ventilation and air conditioning (HVAC) rebate, and other updates.

Status: Additional updates were instituted in October 2023 including shortening the finance term to 5 years to establish a more sustainable “revolving fund”. Uptake remains very positive.

The summary table at the top of this memo summarizes the number of rebates and loans issued as of January 10, 2024. Development of a turnkey electrification service to provide greater customer support and complement the incentives is under development. The turnkey service will be a unified service with the low-income direct-install program. See below for details.

For more information, please visit https://pencleanenergy.com/all-electric-homes

2.2 (Low-Income) Home Upgrade Program
Background: In May 2020, the Board approved $2 million for implementing a direct-install 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 program launched on September 28, 2021. The Board approved a contract extension for $1.5 million in February 2023 which included more homes for the current service plus 4-6 whole home electrification upgrades. As of March 31, 2024, the program has served 295 homes, including 8 homes who received whole home electrification as part of a pilot within the program. This phase of the program is now oversubscribed, and new applicants are being added to a waitlist for the next phase of the program under a new program administrator.

Status: Following a competitive selection process, the Board approved the $26M contract with Franklin Energy Services on February 22, 2024 for the next phase of the program, which will include a scaling-up the number of low-income homes served with whole home electrification upgrades at no-cost to these residents, offering turnkey electrification services to non-income qualified residents at a low cost, and launching an emergency heat pump water heater replacement service. Silicon Valley Clean Energy (SVCE) also contracted with Franklin for the joint program. PCE and SVCE are currently jointly working with Franklin on program design and start up tasks. PCE soft launched the low-income no-cost electrification segment of the program in August by contacting the waitlist collected in the previous phase of the program.

The turnkey electrification services for non-income qualified residents and emergency water heater replacement service would follow, launching sometime in late the Fall. 324
For more information, please visit https://pencleanenergy.com/home-upgrade-program/

2.3 Local Government Building Electrification Program (GovBE) Background: In August 2023, the Board approved a local government building electrification program to help fund building electrification at local government facilities. The program will offer roughly $1 million per year in incentives and creates a $10 million dollar revolving loan fund. Incentives are based on therms saved at a given facility. Incentives and loan are capped at $600k per jurisdiction per year, each. The program requires a 25% cost-share from non-PCE funds, and will have a streamlined, annual application process.

Status: Five project applications have been selected for funding, totaling $1 million in incentives and $1.6 million in loan. Projects include:

A pool heating electrification project,
Portfolio-wide municipal decarbonization at a city
Portfolio-wide HVAC electrification at a city
A project installing seven HPHW across multiple facilities A project electrifying HVAC at a child development center A separate $5 million from the surplus funds were allocated for schools however, no schools submitted for funding in this round. PCE plans to re-open the application for schools in the upcoming months and is in discussions with the San Mateo County Office of Education on rollout.

For more information, please visit https://pencleanenergy.com/government-programs

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 Solar and Storage for Public Buildings
Background: The Solar and Storage for Public Buildings 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 initial site evaluation services and 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.

Intermountain Electric Company was selected in the competitive solicitation on the basis of its pricing, experience, labor practices, and other metrics. Intermountain is a local union firm with an excellent reputation. At the January, 2023 Board Meeting, the Board of Directors approved the installation contract and power purchase agreements with participating agencies in the first 325
round. 12 PPAs were signed with 10 jurisdictions for a total of 1.74 MW DC solar PV. Battery storage systems are planned for 3 of the sites but will not move forward until after the solar systems are operational due to NEM2 grandfathering rules.

Round 2 of this program is split into two portfolios: solar-only (Portfolio A) and larger solar+storage projects (Portfolio B). The Portfolio A projects are seeking interconnection under NEM 2.0, while the Portfolio B (now referred to as Round 3) projects will interconnecting under Net Billing Tariff rules. Portfolio A includes 22 sites with 12 agencies, totaling approximately 4 MW of solar. Round 3 includes 12 sites with 9 agencies, totaling approximately 10MW of solar and 6MWh of storage. The Board approved the contracts for the Round 2 in January 2024 with up to $23 million.

Status: As of August 8, 2024, 3 systems are operational (Brisbane Mission Blue Center, San Carlos Youth Center, and Millbrae Recreation Center), 2 are complete but awaiting PG&E to complete upgrades to its system it deemed necessary during the interconnection process.

One system is substantially complete (San Bruno Aquatic Center) and others are at various stages of construction and permitting.

For Round 2 (A), a total of 12 agencies with a total of 22 facilities are in advanced development. Thirteen projects have executed Power Purchase Agreements (PPAs) and construction drawings are in development. Other sites are in various stages of design and PPA approvals. McMillian Electric is currently working on construction plans for the first tranche of projects that will be ready for construction. These include four agencies for a total of nine sites. Plans will be used to apply for permits. These projects are expected to begin construction late 2024 / early 2025 and be commissioned by late 2025 / early 2026.

For Round 3 (B), staff is currently in early development with agencies and has upcoming meetings with potential vendors. Staff has also been in development of solar + storage models for which include optimized energy storage dispatch strategies.

For more information, please visit https://pencleanenergy.com/government-programs

3.2 Residential Solar + Battery Backup
Background: The Residential Solar + Battery Backup offers energy resiliency program in partnership with Sunrun. This program provided energy storage systems paired with solar power to single family customers and ongoing load shaping for PCE grid needs. Enrollment in the program closed in 2022 and PCE has been developing a successor program.

Status: The State of California renewed funding for the Self-Generation Incentive Program (SGIP) last year, allocating funds toward low-income storage and solar plus storage systems.

PCE has been developing a Low-Income Solar & Storage Program to provide behind-the-meter (BTM) storage or solar + storage systems to eligible single-family homeowners to deliver bill savings and resilience benefits. The program will leverage SGIP incentives which are expected to mostly or fully fund the installation of systems for income qualified customers, giving priority to Home Upgrade participants and homes in outage risk areas. A Request for Proposal was launched this week for a developer who can oversee the end-to-end processes involved with this program. The developer will help qualify pre-identified low-income customers, submit the rebate applications for SGIP, design and install the systems, and manage the dispatch of the battery storage device. Peninsula Clean Energy will begin 326
outreach for this program this month.

3.3 FLEXmarket
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 is also 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.

Providers of energy efficiency and building electrification equipment can apply for incentives through this program. In addition, Peninsula Clean Energy is submitting its own projects to receive CPUC funds under the program.

Staff developed the commercial version of the program and launched the market in July 2023.

Like the residential version, providers of commercial energy efficiency and building electrification equipment, as well as aggregators of these projects, can pursue incentives through the Commercial FLEXmarket.

Status: Approximately $3 million out of the allocated $4.6 million has been reserved.

Operational refinements to the program are ongoing.

For more information, please visit https://pencleanenergy.com/flexmarket

3.4 Community Solar, DAC-GT & CSGT
Background: The Disadvantaged Communities Green Tariff program (“DAC-GT”) and associated Community Solar Green Tariff (“CSGT”) are community solar programs developed by the California Public Utilities Commission (CPUC) to enable DAC residents to participate in renewable energy projects, and to promote development of renewable projects in DACs.

Participating customers will receive a 20% discount on their full electric bill (PG&E and Peninsula Clean Energy charges). Peninsula Clean Energy administers these programs on behalf of its customers.

Peninsula Clean Energy began enrolling DAC-GT customers in San Mateo County in January 2022 and customers in Los Banos in April 2022. Those customers are currently served by an interim resource procured from Marin Clean Energy pending Peninsula Clean Energy’s procurement of a new renewable resource for the program.

Per the CPUC DAC program guidelines, Peninsula Clean Energy is authorized to procure up to 3MW of solar capacity. Until a new solar resource is procured, Peninsula Clean Energy will serve customers from MCE’s interim resource. Peninsula Clean Energy executed a PPA with Marin Clean Energy for its existing Goose Lake Solar project, which meets DAC program guidelines, to provide for its DAC customers until a permanent resource is procured.

Status: The program is currently serving approximately 1,000 customers. Peninsula Clean Energy signed a PPA with Renewable America, LLC for a 3MW solar resource located in Dos Palos, CA, approximately 15 miles southeast of the City of Los Banos. In June, staff 327
expanded their contract with MCE’s interim resource Goose Lake Solar to 3.74MWdc. This will allow more customers to subscribe to the program and receive on-bill benefits.

Staff launched a Request for Proposals for 402kW of solar as part of their Community Solar Green Tariff (“CSGT”), but was not successful in identifying a resource that would meet the needs of its program.

4. Transportation Programs

4.1 Used Electric Vehicle (EV) Rebate Program
Background: Launched in March 2019, the Used EV Rebate Program provided a used EV incentive, up to $4,000, to income-qualified residents in the service territory (those making 400% of the Federal Poverty Level or less). In October 2020, the Board approved expanding the program to offer used EV incentives to all residents in the service territory, while maintaining the increased incentives for income-qualified residents. In February 2021, Peninsula Clean Energy executed a competitively bid contract with GRID Alternatives (“GRID”) to administer the expanded program. The program was reconfigured at the start of 2024 to align with the new $4,000 used EV federal Clean Vehicle Credit, allowing customers to seamlessly combine the PCE rebate and federal rebate at the point of sale, providing up to $6,000 in downpayment assistance. The PCE rebate was also limited to low and moderate income customers only at that time.

Status: 650 rebates have been provided throughout the program history, including 144 since major changes were made in January 2024. Administration is now down by PCE staff and Grid Alternatives’ role is now focused on “EV Advisor” services, helping customers navigate various rebate programs they may qualify for, in addition to PCE’s rebate, and providing general EV adoption guidance.

For more information, please visit https://pencleanenergy.com/usedev/

4.2 “EV Ready” Charging Design Assistance & Incentive Program Background: In December 2018, the Board approved the EV Ready program, consisting of EV charging infrastructure incentives and technical assistance. The California Energy Commission (CEC) invested an additional $12 million in San Mateo County for EV fast charging. The program is open and available to multi-family housing, affordable housing, workplace charging, and general public-access sites, through there is a general focus on multi-family housing, which has been a historically underserved population in state EV charging programs.

PCE offers free project design assistance, facilitated through CLEAResult. There are currently early 300 active projects receiving this assistance and, on average, projects receiving assistance more than double the overall size of their EV charging projects.

Status: The program has helped the community install over 1,000 chargers (2/3 at multi-family housing) with more than 3,500 additional chargers in progress. Recent notable projects include 90 smart outlets installed at a condominium in East Palo Alto and 18 Level 1 outlets installed at a condominium in Burlingame. The EV Ready program was an award winner at the 2024 CalCCA conference and is a statewide model with installation costs well below other similar programs. Key elements of the program are being replicated by a number of other programs. PCE staff are presenting at a number of upcoming state and national events. 328
Staff will be implementing program changes in October 2024, including a reduction in the incentive level for Level 2 chargers from $5,500 to $4,500, made possible through a recent RFQ that received lower-cost charging options, and reducing the total amount of rebates available to workplace charging projects from $90,000 per project to $60,000 to project, to further focus funding on multi-family housing.

For more information, please visit https://pencleanenergy.com/ev-ready/

4.3 E-Bikes for Everyone Rebate Program
Background: The Board initially approved the income-qualified E-Bikes Rebate program in July 2020 and runs in annual cycles to provide rebates to residents with low to moderate incomes. The program has provided nearly 1,000 rebates since 2021. Customers can use the rebate either at qualifying bike shops for a point-of-sale discount or through RidePanda, a local provider of e-bike leases. Several additional bike shops were added in 2024, including Kevin’s Bikes in Merced, a convenient option for Los Banos customers.

Status: This program opened in mid-June and recently closed to new applications. Over 150 e-bikes have already been purchased in the 2024 round. PCE partnered with local community groups in program promotion and many of these groups also assisted customers in application submission.

For more information, please visit https://www.pencleanenergy.com/ebikes

4.4 Public EV Fleet Program (GovEV)
Background: The Board approved the GovEV Fleet Program in November 2020. This program is comprised of three components to help local agencies begin their fleet electrification efforts: hands-on technical assistance, gap funding, and a vehicle to building resiliency demonstration that will assess the costs and benefits of utilizing fleet EVs as backup power resources for agencies in grid failures and other emergencies. In August 2022, the Board of Directors approved a contract with Optony to assist in the administration of this program and further approved an extension with Optony in March 2024.

Status: 11 cities have enrolled, including: Menlo Park, Burlingame, San Mateo, South San Francisco, Daly City, San Carlos, Foster City, Millbrae, Brisbane, San Bruno, and East Palo Alto are now receiving technical assistance. Menlo Park plans to install 30+ charging stations for fleet vehicles at the City Hall, Police Department, and Corporation Yard and Burlingame is moving forward with 8 chargers at their Corporation Yard.

Staff are developing guidance on resiliency options for EV fleets, to be published shortly.

For more information, please visit https://pencleanenergy.com/government-programs

4.5 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 329
telematics. The pilot is in Phase 2 with a larger set of vehicles. In October of 2021, the Board approved a contract up to $220,000 with the University of California, 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. In November, the Board approved a contract up to $220,000 with ev.energy as the platform provider for EV managed charging services.

Status: Staff have conducted an internal analysis and researchers from UC Davis will begin independent analysis shortly. The experiment showed that EV smart charging has major challenges in load shifting, including significant self-selection bias as customers who joined were already load shifting, and high ongoing platform costs. Staff are exploring other options, including proactive outreach to customers on rate optimization and cost savings through scheduled off-peak charging.
330
DATE: August 13, 2024
MEETING DATE: August 22, 2024
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jeremy Waen, Senior Director of Regulatory Policy SUBJECT: Regulatory Policy Team Quarterly Report
Item No. 21

PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence

DISCUSSION
California Public Utilities Commission (CPUC)
Green Access Program (GAP)
On June 7, 2024, the CPUC issued Decision (D.) 24-05-065 modifying the GAP tariffs and adopting a Community Renewable Energy (CRE) Program. The Decision consolidates the Community Solar Green Tariff (CSGT) program into the Disadvantaged Communities Green Tariff (DAC-GT) program, increasing PCE’s total capacity for the latter by 3.0125 megawatts (MW). A revised DAC-GT tariff, which factors in PCE’s expanded program capacity, will be submitted to the Board for approval by September at the earliest.

The Decision also requires that Investor-Owned Utilities (IOU) and Community Choice Aggregators (CCA) work together to develop a new methodology for calculating the cost containment cap for the DAC-GT. PCE’s Regulatory and Procurements Teams have been working with other CCAs to determine the best approach. The Joint CCAs submitted a methodology proposal to the IOUs for consideration last week.

Lastly, the Decision adopts the CRE program, which allows for co-located solar and storage.

PCE has been leading the CCAs in their engagement with the CPUC and IOUs to determine the structure of the CRE program. Parties submitted Opening Comments and Reply Comments on the CRE Program in July. The key points of discussion include CCA participation and tariffs, the financial viability of the program with current funding allocations, and developer compensation and customer incentives.

Integrated Resource Planning (IRP)
On July 19, 2024, the CPUC released the Proposed Decision (PD) Determining Need for Centralized Procurement of Long-Lead-Time Resources within the IRP proceeding (R.20-05- 003). Under this PD, the California Department of Water Resources (DWR) would act as a Central Procurement Entity (CPE), pursuant to AB 1373 (Garcia 2023), for long-lead-time 331
resources. This includes offshore wind (up to 7.5 GW), enhanced geothermal energy (up to 1 GW), 12 hour, non-lithium storage (up to 1 GW) and multi-day non-lithium storage (up to 1 GW). While the PD would establish maximum levels of centralized procurement, any actual requests for procurement will require additional review in coming years, factoring in any procurement done by Load Serving Entities (LSEs) in coming months and years for these resource types.

PCE has worked with CalCCA to advocate for a right of self-procurement, which may or may not be incorporated in this Decision or future decisions. If no mechanism for self-procurement is adopted, the distribution of benefits and costs to PCE’s customers would mirror the model of Cost Allocation Mechanism (CAM) procurement, in which benefits and costs are allocated on a peak load share basis. If a self-procurement mechanism is adopted, customers of self-procuring LSEs would likely be exempt from the charges related to the DWR centralized procurement. The DWR is expected to take most of 2025 to commence operation as the CPE, so procurement requests from the CPUC for actual procurement are not anticipated before 2026. If this timing holds, the procurement request would most likely incorporate procurement or planned procurement by LSE in their 2025 IRPs.

Going forward, PCE Staff is working with CalCCA to ensure that the scope of any CPE stays within legal bounds, does not interfere with the market, and does not impinge on CCA procurement autonomy. Lastly, the CPUC has still not released its proposed framework to replace procurement orders as the mechanism for ensuring that LSEs procure resources according to state needs after 2028.

Resource Adequacy (RA)
The CPUC issued a Decision on June 26, 2024, reforming several elements of the RA program, including adopting a 17% Planning Reserve Margin (PRM) for the 2025 year and various technical improvements for qualifying for import RA and more flexible cure periods for non-compliance.

On July 19, 2024, CPUC staff released a Loss of Load Expectation (LOLE) Study as a basis for a revised PRM for 2026. The PRM is a CPUC-imposed buffer of excess capacity that LSEs are obligated to procure under the RA program. The recent study recommends an increase in the PRM from 17% to 18.5% by 2026. PCE and CalCCA staff are digging into the underlying assumptions of this study to determine if such an increase is warranted.

Transportation Electrification (TE)
PCE continues leading a group of Joint CCAs on TE matters before the CPUC with the broad strategic aims of securing funding opportunities for CCA-administered programs, establishing stronger relationships with regulators, and demonstrating the strengths of CCA TE program philosophy to enable affordable climate progress that can be replicated on a statewide scale.

On December 14, 2023, the CPUC issued a new order launching a new rulemaking focused on Transportation Electrification Policy and Infrastructure (TEPI). The Order Instituting Rulemaking (OIR) set a broad scope for the new proceeding and closed the prior TE-focused proceeding (DRIVE OIR) indicating that the TEPI would be the primary venue for TE matters going forward. The OIR envisioned that the TEPI would address matters such as timely EV charging energization; grid planning; rate affordability, equity, and behind-the-meter (BTM) infrastructure deployment; VGI support and deployment; deployment of BTM infrastructure to 332
support statewide goals; and ongoing TE policy development.

On April 12, 2024, President Alice Reynolds, the assigned commissioner, issued a ruling that proposed pausing a major $1B, 5-year, statewide BTM infrastructure program (BTM Program) before it was to be launched in 2025. The BTM Program was authorized by a decision adopted by the CPUC in November 2022 with 30% of funding to designated for supporting for charging at multi-unit dwellings (MUDs) and 70% designated for supporting charging for medium- and heavy-duty (MDHD) fleets. It also established the Locally-Implemented Transportation Equity (LITE) Pilot program, a limited funding opportunity for TE pilots administered by CCAs and CBOs. The Commissioner Ruling proposed the program should be paused due to concerns related to rate affordability, energization delays, and other non-ratepayer funding that may be leveraged to deploy BTM infrastructure and limit dependence on ratepayer funding. A ruling issued on June 3, 2024, by the judge assigned to the docket requested stakeholder input on whether the BTM program should be paused and, if so, how such a pause could be implemented.

The Joint CCAs held an ex parte with President Reynold’s office before the June 3 rd ruling.

During that ex parte and in comments submitted to the record, the Joint CCAs’ positions have been two-fold: (1) preserve the LITE pilot funding, and (2) if the BTM Program is paused, then CPUC should implement an interim MUD-only pilot. The Joint CCAs proposed that the interim MUD pilot should follow PCE’s right-sizing philosophy to encourage low-cost L1 and L2 outlets that maximize charging access for residents while also limiting the need for service upgrades to serve the infrastructure that would contribute to existing concerns around ratepayer affordability and energization delays. Several other parties, including TURN and GRID Alternatives, filed comments in support of L1 and the Joint CCAs’ proposal.

California Independent System Operator (CAISO)
The California Independent System Operator continues to implement stakeholder processes that are likely to have critical impacts on Peninsula Clean Energy’s operations. Timely updates from these processes include:

1. Interconnection: CAISO is finishing the draft Interconnection Process Enhancements proposal and is working with CCAs to establish timelines and processes for LSEs to identify their priority projects. The proposal looks to be a significant improvement on the existing study process and should improve interconnection timelines in the medium term.

California Energy Commission
Load Management Standard (LMS)
PCE submitted its Board-approved LMS Compliance Plan to the CEC for review and approval on May 7, 2024. We anticipate formal feedback from the CEC in the coming month, which may request changes requiring review by the Board. Other than plan revisions, if any, the next deadline in the LMS Docket is October 1, 2024. PCE must submit a list of cost-effective load flexibility programs to the CEC by this date. PCE staff continues to engage externally through CalCCA and internally to determine its optimal route for compliance with this emerging requirement.
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FISCAL IMPACT
None

STRATEGIC PLAN
(Public Policy Objective A, Key Tactic 1, and Key Tactic 2; Public Policy Objective C, Key Tactic 3)
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California Community Power
901 H St, Ste 120 PMB 157, Sacramento, CA 95814 | cacommunitypower.org A Joint Powers Agency whose members are:

Central Coast Community Energy | CleanPowerSF | East Bay Community Energy | MCE | Peninsula Clean Energy | Redwood Coast Energy Authority | San José Clean Energy | Silicon Valley Clean Energy | Sonoma Clean Power | Valley Clean Energy
TO: CC Power Board of Directors and Alternates DATE: 6/19/24 FROM: Alex Morris – General Manager
SUBJECT: Report on CC Power Regular Board of Directors Meeting – June 18, 2024 The CC Power Board of Directors held its June Board Meeting on June 18, 2024, via Zoom. Details on the Board packet, presentation materials, and public comment letters can be found under the Meetings tab at the CC Power website: Meetings and Agendas – ca community power Highlights of the meeting included the following:
• Matters subsequent to posting the Agenda. None.
• Public Comment. None.
• Consent Agenda - The Board approved the following items:
o Minutes of the Regular Board Meeting held on May 15, 2024. • Regular Agenda Items:
o General Manager Report – the Board heard updates on various work and project items, including the Build-Transfer Phase 2a project, the CADEMO offshore wind demonstration site MOU, a recap of internal and board-approved operating policies for CC Power, and information on the forthcoming Member Roles and Responsibilities Agreement, which will improve data sharing. o Resolution 24-06-01 – Commending and Thanking Nick Chaset for his Service to California Community Power – this Resolution was unanimously approved as Ava CEO, Nick Chaset, was recognized at his last CC Power Board meeting. o Resolution 24-06-02 – Approval of 2024-2025 Fiscal Year Budget – the $4.5M budget and accompanying workplan were adopted. The budget reflects ongoing work on existing projects (Build-Transfer Phase 2a, Long-Duration Storage, Firm-Clean Resources) as well as work to explore or develop potential new CC Power projects, including project such as: RA Power Pool for member RA transaction efficiencies, Master-Services Agreement based cost-savings exploration for Scheduling Coordinator services, Master-Services Agreement based cost-savings exploration for metering and billing, and to repeat information-services ‘bulk-buys’ as completed in 2023-2024. Based on the budget, members pay General and Administrative (G&A) fees of $118k/member, while “project” costs vary based on each member’s project participation levels. Project costs, which are estimated in the 335
2 budget for planning purposes, range from $194k (RCEA) to $540k (SJCE). Actual project costs will differ based on member opt-ins and project ‘go no-go’ decisions expected during the fiscal year period (based on the work-plan). Invoices for G&A ($118k) will be issued. Project-based invoices will occur based on project status, account cash status based on any rollover funds from past years, etc. This budget represents growth for CC Power in line with the Board-approved Strategic Plan (2022) and was based on member-needs surveys and interviews. • Public Comments on Closed-Session Items: none
• Closed Session Items:
o The Board heard updates on CC Power’s contracts, with specific updates and status considerations on one firm-clean resources contract and one long-duration storage contract. No Board action occurred.
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COMMONLY USED ACRONYMS AND KEY TERMS
AB xx – Assembly Bill xx
ALJ – Administrative Law Judge
AMP - Arrears Management Plans
Apple Valley Choice Energy
AQM – Air Quality Management
Ava – Formally East Bay Community Energy
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)
CCCFA – California Community Choice Financing Authority CC Power – California Community Power
CEC – California Energy Commission
Clean Energy Alliance – CCA in
CPA – Clean Power Alliance
Clean Power SF
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
Customer Centricity - culture, framework and business strategy based on providing a positive customer experience and building long-term relationships DA – Direct Access
DAC-GT - Disadvantaged Communities Green Tariff
DER – Distributed Energy Resources
Desert Community Energy
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 now known as Ava Community Energy ECOplus – PCE’s default electricity product, 50% renewable and 50% carbon-free (in 2021) ECO100 – PCE’s 100% renewable energy product 337
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
EPIC – Energy for Palmdale’s independent Choice
ESP – Electric Service Provider
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
Heavy Duty Vehicle – large vehicles such as busses and long-haul trucks HPWH – Heat Pump Water Heater
HP HVAC – Heat Pump Heating, Ventilation, and Air Conditioning HR xx – House of Representatives Bill xx
IDER – Integrated Distributed Energy Resources
IGFC – Income Graduated Fixed Charge
IOU – Investor-Owned Utility (e.g. PG&E, SCE, SDG&E)
IIJA – Infrastructure Investment and Jobs Act
IRA – Inflation Reduction Act
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)
Lancaster Energy
Light Duty Vehicle - passenger vehicles such as cars and small pickup trucks 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
Mid Duty Vehicle – vehicles such as passenger vans
MW – Megawatt (Power) = 1000 kW
MWh – Megawatt-hour (Energy) = 1000 kWh 338
MTR – Mid-Term Reliability
MUD – Multi-unit Dwelling
NBCs – non-bypassable charges
NBT – Net Billing Tariff
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
OCPA – Orange County Power Authority
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) PCEA – Peninsula Clean Energy Authority
PCIA – Power Charge Indifference Adjustment
PCL – Power Content Label
Pioneer Community Energy
PLA – Project Labor Agreement
POU – Publicly Owned Utility
Pomona Choice Energy
PPA – Power Purchase Agreement
PPSA – Project Participation Share Agreement (CC Power) PRIME – Pico Rivera innovative Municipal Energy
PSPS – Public Safety Power Shutoff
PV – Photovoltaics(solar panels)
Rancho Mirage Energy Authority
RA – Resource Adequacy
RE – Renewable Energy
REC – Renewable Energy Credit/Certificate
Redwood Coast Energy Authority
RICAPS - Regionally Integrated Climate Action Planning Suite RPS – California Renewable Portfolio Standard
S xx – US Senate Bill xx
SB xx – CA Senate Bill xx
Santa Barbara Clean Energy
SBP – Solar Billing Plan
SCP – Sonoma Clean Power
SDCP – San Diego Community Power
SJCE – San Jose Clean Energy
San Jacinto Power
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
TOB – Tariff on Bill 339
TOU Rates – Time of Use Rates
Valley Clean Energy
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 WWGPI - West-Wide Governance Pathways Initiative
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WestLight Energy Board of DirectorsAugust 22, 2024

WestLight Energy Board of Directors
August 22, 2024