Presentation — WestLight Energy Executive Committee, July 14, 2025

Peninsula Clean Energy
Executive Committee
Meeting
July 14, 2025
This meeting will begin shortly. Thank you!
Agenda
Call to Order / Roll Call
Public Comment (for items not on the Agenda)
• Please note, send any chats to Administrative Assistant, Brianna Arroyo Action to set the Agenda and Approve Consent Item 1
• Consent - Public Comment
Regular Agenda
Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Federal Policy
Change Impacts
HB.1 and July 7 EO
Executive Committee Update
July 14, 2025
Presentation to Peninsula Clean Energy

THORN RUN PARTNERS

PRESENTATION
One Big Beautiful Bill Act
Rundown of the changes made to the IRA tax credits in the OBBBA.

PRESENTATION
45Y & 48E Clean Electricity Production and Investment Credits 45X Advanced Manufacturing Credit
25C Energy Efficient Home Improvement Credit
25D Residential Clean Energy Credit
30D Clean Vehicle Credit
25E Previously Owned Clean Vehicle Credit
Transferability
Elective Pay
Same
Changed
Terminated
45Y & 48E CLEAN ELECTRICITY CREDITS

PRESENTATION
Prior law: Effective 2025 onward with no fixed end date.

Terminates for wind and solar by 2028, but projects that begin construction within 12 months are carved out from the 2027 “placed in service” deadline.

Phased out for nuclear, geothermal, battery storage, and hydropower: 75% in 2034, 50% in 2035, 0% in 2036.

New FEOC restrictions.
45X ADVANCED MANUFACTURING

PRESENTATION
Prior law: Available until 2032.

Phases out under the current schedule: 75% in 2030; 50% in 2031, 25% in 2032, 0% in 2032.

Phases out for producing critical minerals, with 75% in 2031, 50% in 2032, 25% in 2033, 0% in 2034.

Phases out early for wind components after 2027.

Establishes a new metallurgical coal production tax credit at 2.5% that can be claimed through 2029.

New FEOC restrictions.

FOREIGN ENTITIES OF CONCERN
Overview of key definitions and rules related to foreign restrictions.

PRESENTATION
Prohibited Foreign Entity (PFE)
Definitions
Specified Foreign Entity (SFE)
• Threats to U.S. national security
• Foreign-Controlled Entities
(FCEs): includes foreign
governments, nationals, entities
organized or based in covered
nations, and those with >50%
control
• Public companies deemed FCEs
if controlled by SFEs or
reporting FCEs
Foreign-Influenced Entity (FIE)
• SFE appoints board/executive,
owns ≥25%, or holds significant
debt
• "Effective control" via
contractual authority
• Carveout: Bona fide transactions
without notice of SFE rights
Material Assistance Cost Ratio
Applies to 45Y, 48E, 45X
Defined as:
(Total Cost – Cost from PFE
components) ÷ Total Cost
Excludes pre-June 16, 2025
contracts if:
• Project in service by 1/1/28
(wind/solar) or 1/1/30
(others)
• Construction began before
8/1/25
Safe harbor tables due by DOE
by 12/31/26
Licensing Agreements
• Projects ineligible if taxpayer
signs IP or licensing deal with a
PFE post-enactment — even if
no direct control exists

FOREIGN ENTITIES OF CONCERN
Timeline of implementation of the new FEOC restrictions.

PRESENTATION
SFE
• 45Y/48E & 45X
2026
FIE
• 45Y/48E &
45X:
2026
Material
Assistance
• 45Y/48E:
Facilities that
start
construction
after 2026
• 45X:
2026
Licensing
Agreement
• 45Y/48E &
45X:
Arrangements
entered into
or modified
after
enactment
Transferability Bill prohibits transfers to SFEs

IMPLEMENTATION

PRESENTATION
Executive Order Highlights
Treasury is ordered to strictly enforce new phase-outs
and issue guidance within 45 days.

Treasury will likely revise IRS safe harbor guidance
regarding “beginning of construction.”
Interior must review and remove any preferences for
wind and solar on public lands.

Emphasis is placed on eliminating subsidies for green
energy tied to "foreign adversaries" (e.g., China).

President Trump issued an executive order to aggressively implement the phase out of 45Y & 48E, targeting wind and solar projects.
• What changes could Treasury
make to the guidance legally?
• Theatrics to appease House
Freedom Caucus members?
• Potential litigation that could
stall projects?
• Second reconciliation package
in play?

IMPACTS
A look at how OBBBA is expected to impact the U.S. energy landscape.

PRESENTATION
DOE estimates that renewables accounted for almost 90% of new power generation installed in the U.S. last year.

S&P Global Commodity Insights projects that the bill will result in about 20% fewer clean-energy projects being built in the U.S. over the next 10 years.

ACP issued a report that uncertainty threatens 29% energy storage market contraction in 2026 if 48E access is reduced (including through FEOC).

Unprecedented load growth due to AI data centers and the reshoring of manufacturing.

THANK YOU

JIM DAVENPORT

KYLER PHILLIPS
[email protected]
[email protected]

PRESENTATION
Power Resources
Peninsula Clean Energy
Two Termination Timelines for ITC and PTC
Solar & Wind
• Placed in service by 12/31/27 to
qualify;
• Projects that “begin
construction” by July 4, 2026
are eligible and not subject to
the 12/31/27 cliff.
16 Other Technologies
(including Energy Storage)
• Terminates by 2036 with
phaseout starting in 2034;
• Begin construction in:
2034 - 75%
2035 - 50%
2036 – 0%
Projects must be completed within 4 years of construction start to qualify Peninsula Clean Energy
Foreign Entity of Concern (FEOC) Restrictions
• Taxpayers who are a “specified foreign entity” or a “foreign influenced entity” are not eligible for PTCs or ITCs
• Projects are not eligible if they begin construction after December 31, 2025, AND include “material assistance” from a “prohibited foreign entity” (i.e. generally Chinese, Iranian, Russian, or North Korean entities).
17 Peninsula Clean Energy
Material Assistance
The “material assistance” threshold is measured by
a “cost ratio”, which represents:

The percentage of total direct costs attributable to
manufactured products incorporated into the
project upon completion of construction that are
not from a PFE
Cost Ratio =
[Total Cost - Cost of PFE components]
/ Total Cost
18 Peninsula Clean Energy
Executive Order on July 7th
• Directing the U.S. Treasury, within the next 45 days, to:
o Issue new guidance on “beginning construction” standards (for solar & wind), to “prevent artificial acceleration/manipulation of eligibility”, and to restrict “the use of broad safe harbors unless a substantial portion of the facility has been built”
o Take actions to implement the FEOC restrictions
• Directing the Department of Interior, within next 45 days, to:
o Review and revise polices and regulations that give solar and wind facilities preferential treatment
19 Peninsula Clean Energy
Uncertainty Continues – What is considered “beginning construction”? The Expectations
• Any new guidance will limit safe harbor
opportunities;
• Any new guidance will likely be rushed, and
therefore subject to further changes;
• Potential for legal challenges (HR-1 contains
requirements around ‘beginning construction’
based on IRS guidance in effect as of
1/1/25);
• Additional layers of uncertainties will deter
projects from moving forward;
• Early movers (i.e. projects with permits to
construct, secured equipment and/or secured
funding) will be rewarded.
20 The Unknowns
• How much is “substantial portion”?
• Will buying a transformer no longer
qualify?
• Is physical work on site the only
way to qualify?
• Will the 5% expenditure safe
harbor increase to 51%?
• Will there be a grace period before
the new guidance apply?
• Will any new guidance be applied
retroactively?
Peninsula Clean Energy
Potential Impacts In General
21 • Reduction in new solar and wind buildout;
• Thermal resources will play a bigger role to fill the gap; • Battery projects will have to manage FEOC rules or lose ITC • Projects rush to procure equipment in the next year to secure ITC - pushing up equipment costs;
• Constrained construction capacity will be even tighter – higher cost to compete for construction queue;
• Decrease in clean energy investment
– likely higher project financing cost
Peninsula Clean Energy
Potential Impacts on PCE Long-Term Contracting
• Engaged projects with expected COD prior to 2030
o Safe for the most part on ITC/PTC qualification and avoiding FEOC restrictions;
o Ability to start construction in the near term (e.g. permit, funding) o Sourcing domestic equipment or avoiding Chinese equipment o Qualified under Legacy ITC rules (construction started before 2025) • Engaged projects with expected COD beyond 2030
o More at risk of not qualifying for ITC/PTC = price uncertainty • Tariff Risk is still out there
22 Peninsula Clean Energy
Potential Impacts on Future Procurement
• Energy/REC/RA Pricing:
o Storage ITC without accelerated phase-out = generally positive for RA prices o Wind/Solar accelerated ITC/PTC phase out = generally negative for REC prices o Too early to forecast price curves for each product, but generally trending upwards in the 2030's due to sunset of tax benefits and increased cost pressure on storage • Ability to meet PCE's 2030 annual 100% renewable target o Solid current portfolio
o Securing a few more renewable resources (with tax benefits) would be a plus o Assuming REC prices remain reasonable in 2030
• Expansion
o Limited scale could be feasible from a procurement standpoint but would require more caution as the industry goes through this transition in the next decade 23 Peninsula Clean Energy
Other Dynamics
• Interconnection Timeline
o Lengthy study process and extended physical work schedule hurts projects’ chances to qualify for tax credits
• Accelerated Permitting
o Removing CEQA requirements?
• State’s Renewable and Clean Energy Goals
o Vs. Affordability
• State’s Reliability Procurement Orders (with growing AI load)
o Vs. Affordability
24 GREEN
Reliability Affordability
Programs
Incentive Reductions
• Solar & Energy Storage Sytems (PV, ESS)
• Transportation/Electric Vehicles (EV)
• Building Electrification (BE)
Net Impact
• Slower adoption rates
• However, overall fundamentals remain positive in PV+ESS, EVs • Greatest impact likely in BE due to economics
Programs - Overall Impacts
Specific Changes for EV and Buildings
Category (PCE Program) Impact Timing
EVs (Used EV rebate,
GovEV)
EV rebates ending:

1. Clean Vehicle Credit (New): $7,500

2. Clean Vehicle Credit (Used): $4,000

3. Commercial Clean Vehicle Credit (Fleets):
$7,500 - $40,000
Ends September 30
Residential Energy Credits
(Home Upgrade)
Heat pump rebates ending:

1. Heat pump water heater tax credit: $2,000

2. Heat pump space heater tax credit: $2,000
Must be installed and
operating by December
31st.
27 Policy
• Solar projects starting construction by 7/4/26 can capture ITC so long as they prove continuity of construction
• Solar projects starting construction after 7/4/26 can capture ITC if they are placed in-serviced by 12/31/27
• Solar and storage projects starting construction after 12/31/25 face “Foreign Entity of Concern” (FEOC) restrictions
• Causing construction start could become materially more challenging with updated guidance from the Treasury Dept, expected Aug 2025 • Storage projects have ITC grandfathered through 2034, so long as they meet FEOC requirements
• Elective pay, domestic content adders, and energy community adders all survive so long as the project meets other ITC reqs • Tariffs remain an issue; domestic product sourcing is our focus HB 1 Impacts on Solar and Storage
Program Impacts
• GovPV 1 solar: all 12 in operations. Impact unlikely. • GovPV 2 solar: all 24 in construction. Impact unlikely. • GovPV battery retrofits: unlikely construction can
start by end of Dec. May be impacted by FEOC reqts.
• GovPV3: Impact expected on solar. FEOC impact on
batteries possible. Economics likely still favorable
assuming cost of capital is low.
• Residential: business model shift to customer-owned
solar. Need to reduce soft-costs and cost of capital but still expected to be viable.

PCE Branding and
Naming Update
Executive Committee Meeting
July 14, 2025
Why are we exploring changing
the name?
• Difficult to spell, say, and
remember
• Geographic limitations
• Misconceptions tied to
“clean” energy
• Perceptions about the
“peninsula” outside of SMC
• Our current name was built
for clarity—but not
necessarily connection
Challenges with the current name
How our customers
experience our name
Challenges with the current name
Name & logo limitations
Meet our partners
LEXICON BRANDING © JULY 14, 2025 35
Our process is designed to develop the right
name, not just a good name.

LEXICON BRANDING © JULY 14, 2025 36
37 The Assignment
Develop a new brand name for Peninsula Clean Energy.

This new name must create distance from current
misconceptions and confusion with PG&E, as well as
help to build strong brand equities among customers.

LEXICON BRANDING © JULY 14, 2025
LEXICON BRANDING © JULY 14, 2025 38
Our process is made up of 4 phases.

Invent
PHASE 1 PHASE 2 PHASE 3
Define Refine
Kickoff on April 18th 1st Presentation on
May 27th
2nd Presentation on
June 23rd
PHASE 4
Test
July / August
“Let go of tradition and embrace the
future.”
LEXICON BRANDING © JULY 14, 2025 39
“We need to be fresh, not stuffy. We
need to signal that there’s a new way
of doing things.”
LEXICON BRANDING © JULY 14, 2025 40
41 Creative framework for name development
LEXICON BRANDING © JULY 14, 2025
1 2
3 4
Reflect the organization’s “pace-setting nature.” The name should support the organization’s ambitious, energetic and fast-moving culture via sound or meaning.

Be fresh and contemporary. Signal something new. Move away from traditional naming conventions (e.g. acronyms and geographically based names).

Be uplifting. Turn skepticism into optimism. We will explore words or sounds that are more positive in nature and can support the organization’s high sense of pride towards its community and environmental efforts.

While credibility is important, this new name must be approachable. It should not be overly complex or synthetic (e.g. Xerox). It cannot sound overly corporate (e.g. PG&E). Rather than be a reason to opt-out, it should be a reason to opt-in.

LEXICON BRANDING © JULY 14, 2025 42
We employ multiple, small teams—each with a unique
briefing—to generate completely different outcomes.

Team 1 Team 2 Team 3
Our creative process is supported by an engineering layer of in-country linguists, insights in cognitive science and structural linguistics, and proprietary software. 5 Insights
LEXICON BRANDING © JULY 14, 2025 43
44 1. Less logic. More
attitude.

Windsurf came out as one of the
first agentic IDE tools. The name
says nothing about software
development.
45 2. Be unforgettable
by being unexpected.

We look for names that are
“surprisingly familiar.”
46 3. Be noteworthy. Make
an interesting statement.

Take a risk.

LEXICON BRANDING © JULY 14, 2025
Noteworthy names like Braze are
inherently uncomfortable but they
generate interest. Interest leads to
consideration.

If your team is too comfortable with
the name, chances are you don’t
yet have the right name.
47 4. Future-facing, not
current-facing.

5. The most effective names are
vessels that carry stories into the
marketplace.

LEXICON BRANDING © JULY 14, 2025 48
NG © JULY 14, 2025
49 50
First Impressions
LEXICON BRANDING © JULY 14, 2025
You only have one opportunity to make a first impression.

Our First Impressions research is designed specifically to select the exact right name for your brand.

LEXICON BRANDING © JULY 14, 2025 51
Naming Process
Selection
Naming Committee
• Coleen Mackin, Brisbane
• Michael Amabile, Los Banos
• Betsy Nash, Menlo Park
• John Dugan, San Carlos
• James Coleman, South San Francisco
• Shawn Marshall, CEO
• Shalini Swaroop, COO
• Plus, PCE's Board officers moving forward (pending Brown Act) Name selection process
Next steps & timeline
• August 2025: Naming Committee reviews research results • September 2025: Naming Committee selects a recommended new name
• Q4 2025: PCE Board votes on formally adopting the new name • Q1 2026: PCE plans for new logo development, visual brand identity, and tactical roll out
• Q2 2026: PCE rolls out new brand awareness campaign and 10- year anniversary activities
Naming Process
Questions?
Residential Finance
and Solar & Storage
Program
Executive Committee Discussion
July 14, 2025
Programs Background
How We Effect Change
Drive
Innovation
Energy,
Tech,
Methods,
Data
Shape
Policy
Reach
Codes,
CALGreen,
CPUC, etc.

Support
Individual
Decisions
Incentives,
Technical
Assistance,
Education 1. Demonstrate scalable
methods and business
models for CA to adopt
to

2. Mobilize market forces
to support
decarbonization
59 How Major Programs Meet Our Objectives
Other smaller programs: Used EV, ebikes: equity; GovBE & GovEV: GHG & mbr svcs; FLEXmarket: commercial EE Reach codes
Residential electrification
EV charging
GovPV solar & storage
Residential solar & storage
(forthcoming)
GHG reduction
Equity
Affordability
Resilience
Grid services
Existing Programs Portfolio
*
*
+
+
* Low-income program + Includes low-income benefits
Since inception: $60M
investment (incentive &
capital)
Statewide impact:
• Reach codes: set standard
for clean buildings and EV
readiness, now in state code
• Cost-effectiveness via
right-sizing ex: 80% lower
cost for apt. EV charging
• Innovation: tech,
methods, business models
DER and Capital:

Scaling Strategy
Distributed Energy Resources (DER) Framework
Grow PCE’s behind-the-meter Local Power Portfolio by 15 MW of solar and 35 MWh of storage capacity leveraging scalable and self-sustaining financing solutions
Integrate additional DERs such as solar + storage and EV readiness under PCE’s existing Home Upgrade residential electrification program.
63 Scaling: Decarb incentive & finance trajectory
Fossil fuel incumbent
64 Program Investment: Incentive + PCE Capital
Does not include GovPV3
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Program Investments: Actual & Forecast
Actual Budget Exp Actual CPUC Exp Actual Capital Outlays Forecast Budget Exp Forecasted CPUC Exp Forecast Capital Outlays Residential Finance
and Solar
• Over 250 income-qualified homeowners;
No cost via CA Self-Generation Incentive
Program (SGIP) and federal incentives
• Third-party ownership; PCE zero-percent
financing for reqd. fixes (e.g. roof)
• PCE originated participants and will
control storage for grid services
• >$1,500/year in bill savings to each
low-income customer
Existing Program: Solar and Battery Savings Program
Solar & Storage
• Lower customer bills & improve
cost-benefit of electrification
• Lower install costs (right-sizing
designs)
• Establish reliable grid services and
deliver resilience
• Leverage third-party finance for
scalability
• Develop sustainable business model
- revenues to offset gen revenue loss
Financial Services
• Reduce friction (fees, process, etc.)
• Lower cost of capital
• Support all upgrades
General Market Objectives
Residential Electrification: Prior Program
PCE Incentives
69 Customer finance (if applicable, esp. HVAC)
Customer installer
“DIY”
PCE Zero Percent Loan (up to $10k)
• Original program provided
only financial support
• Customers faced a lot of
challenges with complexity
(products, contractors,
install approach,
understanding operating
costs, etc.)
Residential Electrification: Today
PCE Turnkey Install
PCE Incentives
• Provide optionality to address
customer challenges
• Expand scope to “whole home”
• Added Personalized Support
70 Customer finance (if applicable)
Customer installer
“DIY” “Full Service”
PCE Zero Percent Loan (up to $10k)
Personalized Support
(Concierge)
New Solar & Storage Concept
PCE Turnkey Developer
(capture incentives; PPA/lease option)
PCE Finance Partner
• Provide customer options
• Finance necessary due to
total cost $30k+
• PCE Finance option
• Point of sale approval
• No/low fees
• Low rate
• Both options retain PCE
customer relationship and
grid services
• Support income qualified
through SGIP
71 Customer finance
Customer installer
Personalized
Support
“DIY” “Full Service”
Credit Enhanced
Future: Integrated Electrification, Solar & Storage
PCE Turnkey Install
PCE Incentives & Zero Percent Loan
(electrification measures)
• Provide optionality while
retaining PCE customer
relationship and grid services
72 Customer finance (if applicable)
Customer installer
“DIY” “Full Service”
PCE Finance Partner
Personalized Support
Option
Potential Role of Credit
Enhancement
Credit Enhancement: General Concept
3% 11%
Finance Fund 7%
• Improve credit terms via
rate “buy down”, loan-loss
reserve, or loan
participation
• No asset ownership
• No PCE debt
• Generate return for PCE
OR
74 Credit Enhancement in other sectors
• Affordable housing
• Community Development
• Green banks
• International Development
Loan Loss Reserves
• The CCA sets aside funds in an interest-bearing reserve account • Cover a portion of defaults in a loan program
administered by a licensed third-party
lender.
• The CCA does not originate (set terms,
underwrite) or own the loans.
• Why allowed: The reserve is not a loan or
financial service—it's a risk mitigation fund,
akin to a grant.

Specific Example
Objectives & Considerations
Objectives of Credit Enhancement
• Offer customers superior rate to accelerate market
• Generate some return to address revenue loss, sustainability Considerations
Specific mechanism may have considerations such as:
• Term for capital commitment
• Risk of loss of capital, lower returns than alternative investments • Reputational risk with private capital provider
Next Steps
Developer
• Option for turnkey install
• Provides PPA option
• Manages design & install
• Secures tax credits
Financial Services
PCE may offer
• Integrated marketing
• Increased volume
• Potential on-bill payment
• Customer intelligence
• Explore credit enhancement
Financial partner offers
• Improved rate & terms
• Point of sale approval
• Low/no fees
RFPs to Develop
Committee Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy

WestLight Energy Executive CommitteeJuly 14, 2025

WestLight Energy Executive Committee
July 14, 2025