FIGURE 7 KEY FOCUS AREA AND GOALS
• Maintain appropriate and sufficient data sources to support smart program design, implementation and evaluation.
4. Brand Building – Develop trusted brand reputation to help drive participation in programs and ensure support customer service and retention.
• Identify and address gaps between perception and desired brand identity. • Translate policy issues into consumer-friendly information and communication. • Become known as leadership experts on the CCA model and the industry. • Foster relationships with city planning offices, CBOs, NGOs, and Trade Associations. • Develop relationships with industry media and influencers. • Engage community through participation in local events.
5. Public Policy – Advocate for public policies that advance SDCP organizational priorities. • Proactively educate and engage policymakers to develop policies that support SDCP’s organizational priorities, including advocacy around Power Charge Indifference Adjustment (PCIA) reductions. • Sponsor and support legislation and regulation that is consistent with SDCP’s mission, vision, and goals. • Develop annual legislative plan to advance and support SDCP objectives and share plan with local Senate and Assembly members and staff.
• Develop plan to meet more proactively with and educate key decisionmakers (e.g. CEC, CPUC commissioners). • Coordination with Member Agency government affairs’ teams to align on legislative positions. • Continue to be an active participant in CalCCA and develop partnerships and coalitions to advance SDCP’s policy and legislative agenda through CalCCA efforts.
6. Customer Service – Ensure high customer retention and satisfaction. • Ensure customer satisfaction through key relationships including back-office support • and key stakeholders.
• Continually strive to offer competitive rates.
• Maintain and grow high levels of customer participation and satisfaction. • Achieve 10% of our load at the Power 100 service level by 2027. • Build a robust data ecosystem for effective procurement as well as program design, management and evaluation.
7. Organizational Excellence – Ensure excellence by adopting sustainable business practices and fostering a workplace culture of innovation, diversity, transparency and integrity. • Create an organizational culture of inclusion, mutual respect, trust, innovation, and collaboration that upholds organizational core values.
• Develop an annual staffing plan that identifies and addresses resource needs and gaps. • Provide training and professional development opportunities that build new skills and abilities. • Foster culture of innovation to yield solutions that accelerate our mission and drive toward SDCP’s vision. • Design and implement an internship program that attracts workforce from our member cities and creates opportunities for candidates new to CCAs and the industry.
Build institutional capacity of CAC to support the mission and core goals of SDCP.
Community
Engagement
Community Engagement
Community Engagement Process
The community engagement process provided SDCP a key opportunity to hear directly from community members and to build relationships with community partners. SDCP is invested in developing and maintaining relationships with community partners so that community input can continue to inform future program design and implementation. The community engagement process conducted as part of this Plan should therefore be viewed as a key step in establishing an on-going relationship with the community, rather than as a one-time process.
Figure 8: Southeast San Diego Community Members Participating in a Listening Session Community Power Plan
The SDCP Community Power Plan (CPP), adopted
by the SDCP Board on May 25, 2023, is a key
planning document that guided SDCP’s Capital
Investment Plan investments. The CPP provides
strategic direction for developing customer energy
programs over the next five years. As a not-for-profit public agency, SDCP is committed to developing a suite of customer energy programs
that respond to community needs, with a focus on
Communities of Concern.
The community engagement process for the CPP
provided SDCP a key opportunity to hear directly
from community members and to build
relationships with community partners. SDCP is
invested in developing and maintaining
relationships with community partners so that
community input can continue to inform future
program design and implementation. The
community engagement process conducted as part
of this Plan should therefore be viewed as a key
step in establishing an on-going relationship with
the community, rather than as a one-time process.
The community needs assessment was a
fundamental piece of the CPP and included
extensive community outreach. Between May and
November 2022, SDCP heard from more than 3,450
community members through listening sessions,
workshops, pop-up events in harder-to-reach communities, and a customer-wide survey. This helped SDCP understand the challenges, needs, goals, and priorities that could be addressed through customer energy programs. Throughout the community engagement process, SDCP prioritized equity and Communities of Concern. Additionally, SDCP sought to develop foundational partnerships with community-based organizations.
Table 4: Community Needs Assessment
Engagement Method Estimated Number
Engaged
Community-Based Organization Co-Hosted Listening Sessions (2 Rounds) 325
Business, Key Stakeholders, and Public Listening Workshops 45 Unincorporated San Diego County Pop-Up Events 100
Community Needs Survey 2,980
Total 3,450
Figure 9: Community Power Plan
During the community needs assessment, SDCP’s leadership— the Board of Directors, Community Advisory Committee, and staff—was also engaged to further explore the opportunities for SDCP to meet community needs through its program
offerings. All the input received throughout the community and organizational engagement was used to identify key priorities that were later incorporated into a program prioritization framework tool. The program prioritization tool and
community and organizational priorities helped in the
evaluation of potential programs recommended in this Plan and served as important context for SDCP for future program design.
Figure 12: San Ysidro community members
participating in a listening session co-hosted by
Casa Familiar
Figure 10: San Ysidro Community Members
Participating in a Listening Session
Figure 11: North Park Community Members
Participating in a Listening Session
Prioritizing Equity and Communities of Concern
SDCP is committed to making equity central to any community engagement conducted and to this Plan. To undertake meaningful equitable and inclusive engagement, SDCP prioritized partnering with, and providing compensation to, local community-based organizations that work directly with community members in Communities of Concern and can advocate for their collective needs. Specific equitable and inclusive engagement principles that were integrated into the community engagement for this Plan are noted below.
Minimizing obstacles
The team implemented engagement strategies that were responsive to people’s different needs, circumstances, and/or varying experiences interacting with public agencies to build comfort and trust. The team employed strategies and activities that minimized obstacles to participation, including the amount of time required for participation and providing virtual and in-person options. The team focused on maintaining flexibility and adaptability to incorporate lessons learned during the engagement process.
Valuing input
The team valued local and lived knowledge by gaining an understanding of the priorities and initiatives of each community when soliciting input. This included collecting perspectives regarding a community’s current goals, projects, and potential solutions.
Bridging partnerships
The team established partnerships with community-based organizations throughout SDCP’s service territory. In doing so, SDCP gained a deeper understanding of the issues, priorities, and effective engagement methods of its key stakeholders and their respective communities.
Recognizing everyday challenges
The team recognized the day-to-day challenges community members face and adapted subject matter to their needs and experiences. For instance, addressing climate change and reducing air pollution may not be top priorities for community members facing multiple types of burdens.
Additionally, the team considered that increasing electricity bills and many households behind on bills and at risk of service shutoffs would likely generate some initial distrust in SDCP.
Promoting accessibility
The team considered accessibility for the broadest range of community characteristics, including language, internet access, physical disability, time limitations, and subject matter understanding. Materials and presentations were developed for broad understanding using non-technical, simplified terms.
Incorporating language justice
The team employed a language justice approach throughout the community engagement process. Language justice recognizes the power of language and the ways that it intersects with and reflects a community’s history, culture, and identity as a key part of establishing trust and understanding.
This ensured that everyone involved in the process could speak, understand, and be understood in the language(s) in which they feel most comfortable. It also included a commitment to creating multilingual and cross-language opportunities where all communities, especially those who do not speak English as a first language, can be valued as equal participants. Language justice also supports the development of accessible and relevant communication tools and strategies that connect with the unique and varied experiences, interests, and priorities of communities.
Capital
Program
Areas
Capital Program Areas
Program Type Overview
Utilizing the input received during the community needs assessment, the programs from the market assessment, and the scores from the program prioritization framework, five short-term program types and eight mid-term program types are recommended as options for implementation. All recommended program types align with at least one of the following community and organizational priorities and could target at least one of the following market sectors/customer types.
Given the significant influence that timing of available funding imposes on program delivery, this five-year Plan approached programs using the following phases:
• Current-term (FY 22/23 – FY 23/24): Programs that SDCP currently offers. • Short-term (FY 24/25 – FY 25/26): Program types that can be launched quickly with available funding and/or with a manageable amount of SDCP’s revenues to address immediate needs identified in the community needs assessment.
• Mid-term (FY 26/27 – FY 27/28): Program types that will take time for external funding to be secured, internal funding to be allocated, and/or require additional time to design and deliver. These include program types that may require more significant investments from SDCP’s revenues. SDCP may choose to implement these program types sooner as funding and opportunities arise.
• Long-term (FY 28/29+): Program types that require more complex program design and development, are dependent on SDCP being more established, and/or that support emerging clean energy technologies.
The list of mid-term program types was selected due to their alignment with community and organizational goals.
Implementation of programs will largely be determined by funding considerations and other market developments.
Given that it is better to develop a small number of well-designed and impactful programs rather than trying to do everything, SDCP should be deliberate about which of the recommended program types to focus on, for which market sectors/customer types, and in which order. The below list is meant to provide flexible guidance for SDCP to deploy a transformative suite of customer energy programs over time.
Short-Term Program Types (FY 24/25 – FY 25/26)
1. Energy Awareness and Education
2. Application Assistance
3. Disadvantaged Communities Green Tariff and Community Solar Green Tariff
4. Pilot Programs
5. Grant Programs
Mid-Term Program Types (FY 26/27 – FY 27/28)
6. Building Electrification: Appliances
7. Building Electrification: Heat Pump Technology
8. Distributed Energy Resources: Energy Storage Systems
9. Distributed Energy Resources: Demand Response
10. Energy Efficiency
11. Transportation Electrification: Infrastructure
12. Transportation Electrification: Light-Duty Vehicles
13. Transportation Electrification: Medium- and Heavy-Duty Vehicles
14. Flexible Load
15. Information Technology: Upgrades
Program Type 1: Energy Awareness and Education
Table 4: Energy Awareness and Education Projects
Project Scope of Work Carryforward FY25
Customer Education
To boost understanding of energy issues and increase
participation in energy programs available to SDCP's
customers and workforce.
$350,000
-
Building Electrification
Education
To encourage replacement of natural gas equipment such as stoves and clothes dryers and to incentivize installation of electric space heating and cooling, and water heating to achieve building electrification.
-
-
SDSU Sage Project
Partnership with SDSU professor-led student cohorts to
expand outreach for key SDCP initiatives and programs while providing workforce development opportunities.
- $25,000
Community Event
Planning
SDCP aims to create a large-scale Earth Month event in
partnership regional stakeholders to provide educational opportunities, exposure for sustainability-focused nonprofits and raise SDCP's profile with customers.
- $25,000
Total $350,000 $50,000
Description
SDCP could offer energy awareness and education programs for its customers and workforce. Energy and bill education programs teach customers about how their energy bill works, how usage impacts costs, and the benefits of clean energy. Beyond energy bills and usage, education efforts can provide workers with resources and customers with unbiased information about how to participate in the clean energy transition, such as through lists of qualified and vetted contractors and equipment installers. Energy awareness and education initiatives could also include K-12 education programs.
An educated workforce will be needed to support the development, installation, and operation of many electrification technologies, especially among building electrification programs. Providing education to contractors can ensure that workers have knowledge on the latest electrification technology to support broad adoption and acceptance.
Benefits
As a significant barrier cited in the community engagement process, building awareness around energy can support behavioral changes to promote energy efficiency and lower bills—a key issue for many community members. Education can also lead to increased uptake of rate-based programs (e.g., California Alternate Rates for Energy) that benefit Communities of Concern.
Many clean energy technologies face increased barriers to adoption due to the lack of qualified contractors and equipment installers or lack of awareness by Communities of Concern. Education and awareness programs for contractors can help overcome these barriers and benefit customers.
Design Considerations
During the community engagement process, many expressed a lack of awareness around energy and the need for education, especially among Communities of Concern. Because many communities have a high level of distrust for government and utilities, partnering with trusted community-based organizations on education programs can help increase access, build trust, and deepen partnerships.
Education programs can also be paired with other program offerings to maximize awareness and participation.
SDCP should consider offering education via K-12 programs to increase awareness of the benefits of clean energy and grow awareness of SDCP as an organization. SDCP should also consider contractor training opportunities to support greater adoption of clean energy technologies, such as electric heat pumps, as contractor participation will be required to bring newer technologies to a broader market at scale. Lastly, SDCP should consider partnering with water agencies/authorities that offer water education programs to complement those programs and explain the water/energy nexus.
Funding Considerations
SDCP should consider using internal revenues for this program type to expedite implementation. SDCP should explore partnering with trusted community-based organizations that currently offer educational programs or have experience with implementing educational programs and provide funding to the organizations to administer the programs.
Program Type 2: Application Assistance
Table 5: Application Assistance Projects
Project Scope of Work Carryforward FY25
Commercial
Application
Assistance Pilot
SDCP's Commercial Application Assistance Pilot is an
initiative that aims to support commercial customers in identifying ideal energy solutions and programs that can help meet the customer's needs and goals. The pilot aims to help support customers become aware of, and apply for,
publicly available and funded energy programs, and if
needed, provide project management and grant support.
- $250,000
Total - $250,000
Description
There are many existing energy programs that SDCP customers may have access to from other local, state, and federal agencies (i.e., third-party programs). SDG&E alone offers more than 80 energy efficiency and demand response programs, though not all of them are relevant for each customer. The number of programs and the complexity of application processes can create barriers to access for many customers including under-resourced community members, small businesses, and/or organizations that serve Communities of Concern; therefore, an opportunity exists for SDCP to assist with application processes for third-party programs.
Benefits
Funds are available from a variety of third-party programs that can currently help meet community needs. Since a lack of participation in existing programs was noted in the community needs survey, SDCP can help customers access the benefits of third-party programs to boost the success of the programs and help bring additional resources for a variety of energy measures to the San Diego region.
Design Considerations
Because there are many existing programs that each have their own intricacies, SDCP should consider working with partners to select a targeted list of program types to provide application assistance for, rather than trying to support all application types. Recommendations for program types to provide application assistance for include energy efficiency, heat pump technology, transportation electrification infrastructure for income-qualified individuals and Communities of Concern, and onsite solar and energy storage for Communities of Concern. Example programs that align well with community needs could include SDG&E’s energy efficiency programs, like the Residential Energy Solutions program and Energy Savings Assistance program, the TECH Clean California program, the Self-Generation Incentive Program, and the Disadvantaged Communities– Single-Family Affordable Solar Homes program.
Application assistance can be a strategy to build partnerships with trusted community-based organizations and partners or other public agencies. While application assistance may be offered to all, outreach can be conducted in partnership with community-based organizations to target support for Communities of Concern.
Funding Considerations
SDCP should consider allocating internal resources (i.e., staff time) for application assistance to amplify the local benefits of available funding from existing programs.
Program Type 3: Disadvantaged Communities Green Tariff and Community Solar Green Tariff
Table 6: Disadvantaged Communities Green Tariff and Community Solar Green Tariff Projects Project Scope of Work Carryforward FY25
CPUC Green Tariffs
To bring the benefits from local solar projects to those who may not be able to install solar on their roofs and offer a 20% bill discount to eligible residential customers in state-defined disadvantaged communities.
- $535,800
Total - $535,800
Description
The Disadvantaged Communities Green Tariff (DAC-GT) and Community Solar Green Tariff (CSGT) programs provide the benefits of solar and provide a bill discount to income-qualified residential customers in under-resourced communities who have barriers to installing or are unable to install solar on their roof. Eligible communities are determined by the California Public Utilities Commission using the CalEnviroScreen tool which identifies “disadvantaged communities” as census tracts that are disproportionately burdened by and vulnerable to multiple sources of pollution.
Benefits
The DAC-GT and CSGT programs are intended to further promote the installation of renewable energy generation among disadvantaged communities with a particular focus on low-income residents within them. The California Public Utilities Commission created both programs to include a 20% bill discount so that low-income customers can affordably access local renewable energy resources that they would not otherwise be able to access.
Design Considerations
As California Public Utilities Commission programs, many of the design elements of DAC-GT and CSGT are already established and prescribed. Customers are sometimes automatically enrolled in these programs; therefore, some participants may be unaware of the program, its benefits, or their enrollment status. Additionally, participants may be skeptical and view the combination of
benefits and bill savings as “too good to be true.” Partnering with trusted, local community-based organizations can help increase program awareness. Additionally, partnering with local organizations will be critical for the CSGT program since one of the requirements is identifying local program sponsors. SDCP should work with language justice specialists to remove jargon from program descriptions so that participants learn about the program benefits and do not unsubscribe.
Funding Considerations
The DAC-GT and CSGT programs are funded first through Greenhouse Gas Allowance Auction proceeds. If such funds are exhausted, the programs are then funded through Public Purpose Program Surcharge funds. SDCP is in the process of pursuing funding from the California Public Utilities Commission for these programs.
Program Type 4: Pilot Programs
Table 7: Pilot Programs Projects
Project Scope of Work Carryforward FY25
Customer Pilot
Programs
To test out program concepts and support implementation of high-impact projects that SDCP may be able to scale with more funding.
$2,000,000
-
C&I Incentive Program Expansion of FlexMarket Pilot Program to include Commercial and Industrial businesses out of hard-to-reach communities. - $800,000 Building and Housing
Stock Analysis
Develop resources on existing building stock to inform program design. $150,000 -
Local Development
Feasibility Study
Developing local infill planning including receiving feedback and guidance from SDCP Board, Community Advisory
Committee, and other stakeholders to confirm needs and
goals, visiting with member agencies to evaluate potential sites and opportunities, then reviewing scope and schedule of initial Local Infill Development plan with SDCP Board for the
feasibility studies.
$50,000 $25,000
Clean Energy Asset
Feasibility Study
San Diego Community Power (SDCP) is undertaking a solar and storage feasibility study. This study will assess the technical, economic, and environmental viability of integrating solar generation and/or energy storage into SDCP's service territory.
The project will involve data collection and review, technical analysis of potential solar locations and grid interconnection, economic modeling to assess costs and savings, environmental impact assessment, and development of a preliminary
implementation plan with project size, timeline, and cost estimates. The final deliverables will include reports on technical feasibility, economic analysis, environmental impact, and a preliminary implementation plan.
- $200,030
Total $2,200,000 $1,025,030
Description
Pilot programs are small-scale, short-duration projects (6-18 months) that can provide SDCP and stakeholders data on program design, technology acceptance, and other information helpful for broader program delivery.
Benefits
Pilot programs can provide a range of benefits, such as:
• Testing local acceptance of incentive projects that have successfully been implemented in other parts of the State or country.
• Filling in gaps and facilitating bringing State funding into the region. • Demonstrating the efficacy of emerging technologies and/or business models in the real-world. • Evaluating innovative incentive delivery methods and mechanisms. • Provide data on real-world, local project costs, barriers, and opportunities. • Reducing risks of large-scale broad program delivery by providing lessons learned at a smaller scale.
Design Considerations
Pilot programs can give SDCP the opportunity to flexibly invest defined amounts of internal resources to quickly learn about elements of a particular program before seeking significantly more investments for scaled programs. When developing pilot programs, SDCP should integrate opportunities to capture lessons learned throughout the process, whether that be through data capture, performance evaluation, and/or on-going stakeholder dialogue. Pilot programs can also provide the opportunity for SDCP to partner, support, and learn from community-based organizations. SDCP should work with community-based organizations, where feasible, to design and implement pilot programs.
Funding Considerations
Depending on the amount of investment required, pilot programs can be funded by internal revenues. Smaller pilot programs can function as a preliminary phase in the design of broader externally funded programs. However, due to the size of SDCP’s service area, SDCP should also consider seeking external funding to scale pilot programs to the entire service area and maximize impact.
Program Type 5: Grant Programs
Table 8: Grant Programs Projects
Project Scope of Work Carryforward FY25
Member Agency
Grants
Grant programs to support both community organizations and its member agencies. Grants focus on addressing the key priorities heard during the community engagement process and provide member agency grants to support regional
climate action goals.
$16,667
-
Community Grants
To implement innovative program ideas from community-based organizations or specific clean energy projects that help SDCP's member agencies achieve their climate action goals. $575,000 $200,000
Total $591,667 $200,000
Description
Grant programs allow SDCP to provide financial assistance to community-based organizations and member agencies to implement clean energy projects or innovative program ideas. Grant programs require applicants to submit a proposal outlining their project or initiative and how it will meet the goals and objectives of the program.
Benefits
Grant programs can provide numerous benefits for SDCP and the communities it serves, such as:
• Providing a source of funding to community-based organizations and member agencies that may not have the resources to implement innovative projects.
• Encouraging and supporting creative ideas that may not be possible through traditional funding sources. • Creating tangible trust – and relationship-building opportunities between SDCP, its member agencies, and community organizations.
• Increasing visibility of SDCP within the communities it serves. • Helping to achieve SDCP and member agency sustainability goals by aligning grant programs with initiatives such as promoting clean energy, reducing carbon emissions, and supporting local economic development.
Design Considerations
SDCP should consider creating grant programs to support both community organizations and its member agencies. SDCP could provide community grants focused on addressing the key priorities heard during the community engagement process for this Plan and provide member agency grants to support regional climate action goals. SDCP should consider partnering with trusted and proven regional organizations to streamline grant program development and implementation while easing administrative burden on staff.
Funding Considerations
SDCP should consider using internal revenues to expedite the initial launch of the programs and simplify the funding administration process with community-based organizations and/or member agencies. Future philanthropic funding may be available for grant programs, especially if SDCP is providing internal revenues as a match. SDCP should consider partnering with regional entities to expand the impact of grant programs.
Program Type 6: Building Electrification: Appliances
Table 9: Building Electrification: Appliances Projects
Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Appliance electrification programs encourage the adoption of electric appliances, such as electric induction stoves and electric clothes dryers, to achieve building electrification.
Benefits
Converting appliances from natural gas to electric helps reduce reliance on fossil fuels and provides a safer cooking environment due to the lack of an open flame. Switching to an electric induction stove or cooktop from a natural gas one can significantly improve indoor air quality because natural gas appliances release harmful pollutants. Gas stove cooking exposes millions of people in California to pollution levels that would be illegal outdoors (Environmental Health Perspectives, January 2014).
Induction stoves work by creating heat only within compatible cookware making them much safer due to the lack of an open flame or hot surface/burners. Induction stoves are extremely efficient and provide better temperature control than traditional electric stoves and rival gas stoves.
Electric heat pump clothes dryers require less maintenance than gas clothes dryers, which provides cost savings in repairs over their operational life. They can reduce the amount of energy used by up to 30% when compared to a traditional electric dryer. Additionally, due to their efficient design, heat pump clothes dryer do not need to be vented which reduces installation costs.
Design Considerations
The transition to electric stoves can be a big change for people who are used to cooking with natural gas stoves. SDCP should consider providing education and outreach, including demonstrations, to make residents of single-family and multi-family homes, and building owners/ landlords aware of the negative health impacts of gas stoves, the performance and safety benefits of electric induction cooking, and the compatibility of induction cookware. SDCP should also consider providing gift cards or other incentives for induction compatible cookware to help offset costs.
Many buildings will require electrical panel upgrades to accommodate electric appliances, which may require hiring electricians for installation. If panel upgrades performed by an electrician are necessary, the total cost of the project will increase. SDCP should consider offering incentives for panel upgrades alongside appliance electrification programs. For Communities of Concern and other income-qualified customers with limited access to financing, direct installation, or up-front incentives are recommended over rebates.
Funding Considerations
SDCP should consider using internal revenues to fund appliance electrification and panel upgrade incentive programs.
Providing additional incentives that can stack on top or fill in the gaps of the TECH Clean California program and the Home Electrification and Appliance Rebates that will be administered by the California Energy Commission (CEC) should also be considered.
Program Type 7: Distributed Energy Resources: Energy Storage Systems
Table 10: Distributed Energy Resources: Energy Storage Systems Projects Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Heat pump technology programs encourage the installation of electric heat pumps for space heating, cooling, and water heating in buildings.
Benefits
Conversion to heat pump technology supports buildings that are more efficient, cleaner, healthier, and safer. Heat pump technology is more efficient than its natural gas counterparts and avoids the onsite use of natural gas, which is responsible for most building emissions and can cause negative health impacts due to indoor air pollution. Unlike traditional heating systems, heat pump technology can provide space heating and cooling from the same system, which can lower costs compared to installing separate systems. Heat pump technology can benefit older homes especially because they can introduce incredibly efficient cooling capacity that has not typically existed—a critical service for many residents in a changing and warmer climate. Switching to a heat pump water heater removes an additional source of pollution especially when they are located inside the home and can efficiently heat water.
To enable the installation of heat pump technology, electrical panel upgrades may be needed for buildings that have outdated or constrained electrical panels. While panel upgrades do not have direct environmental or health benefits, outdated panels are a barrier for electrification for many projects, as their cost can significantly increase project costs that may not be covered in other incentive programs.
Design Considerations
SDCP should consider supporting electrical panel upgrades in addition to the installation of heat pump technology.
SDCP, like other CCAs, should also consider smart control requirements to enable demand response functionality since heat pump technology can be controlled to optimize when it is used to save energy and lower costs.
To support income-qualified customers and multi-family affordable housing, who may have challenges accessing up-front capital and have limited capacity to research and implement projects, SDCP should consider direct installation programs. These sectors often have limited cash flow and complex ownership structures that make it difficult to access capital through loans, which can result in maintenance backlogs that would need to occur before energy retrofits. As a result, they may not implement clean energy programs without significant financial support and technical assistance. SDCP should consider that residents of these buildings may be overburdened by rent and utility costs and may end up displaced if housing costs increase because of electrification.
Given the vulnerability of the occupants, programs should also include protections for renters. This may require SDCP to work closely with local housing departments or other agencies to ensure that Communities of Concern are supported in the transition.
One common barrier during program design is the lack of skilled labor and equipment being carried by contractors.
When older systems fail and need to be replaced, residential building owners generally cannot wait for contractors to order new equipment. Direct installation programs around efficiency and weatherization have traditionally leveraged entry-level skills, whereas the installation of heat pump technology requires more skilled labor, including electricians, heating and ventilation technicians, and plumbers. SDCP should consider providing contractor training and mid-stream incentives to enable contractors to know how to install heat pumps correctly, have heat pumps on hand, and offer competitive pricing.
Funding Considerations
A major source of State funding for heat pump technology is the TECH Clean California program. SDCP should consider leveraging this program to provide additional stackable incentives. With funding flowing from the Inflation Reduction Act through the Environmental Protection Agency’s Greenhouse Gas Reduction Fund and Environmental and Climate Justice Block Grants, SDCP should consider partnering with community-based organizations and regional agencies to apply for funding targeting the conversion to heat pump technology. SDCP should also monitor how funding from the Home Electrification and Appliance Rebates will be administered and implemented by the CEC.
Program Type 8: Distributed Energy Resources: Energy Storage Systems
Table 11: Distributed Energy Resources: Energy Storage Systems Projects Project Scope of Work Carryforward FY25
Solar Battery
Savings
Program
SDCP's new Solar Battery Savings Program is designed to support single-family homeowners in SDCP's service territory to invest in clean energy and support the grid by installing solar and battery storage in their homes or completement an existing solar system with a new battery system. The
program provides two financial incentives for participating customers; an upfront incentive to minimize the initial cost of the battery system and a performance incentive for a daily discharge of the battery (during a specified dispatch window during on-peak periods) to maximize benefits for the
customer and the grid.
- $10,600,000
Total - $6,000,000
Description
Energy storage system programs support the installation of onsite energy storage systems to be paired with renewable energy resources (e.g., onsite solar).
Benefits
While the amount of solar available on the grid has increased dramatically in California, it is not being sufficiently captured during times of high production so that it can be used to meet needs when renewable energy resources are not available. This causes an imbalance—too much energy on the grid at times and not enough at others, requiring fossil fuel-based sources of electricity to make up the difference. Increasing the amount of energy storage that is paired with renewable energy generation helps make the electric grid cleaner. Energy storage can help to increase the resilience of the grid by balancing supply and demand and can also be used for backup power during outages or emergencies. This can be especially beneficial for critical facilities, community resilience hubs, and for customers who need to always have power available for medical devices, safety, or emergency response.
Design Considerations
Multiple program pathways exist to support energy storage market development, depending on the level of resources available. For example, SDCP should work with local governments or others to implement energy storage systems at scale in critical facilities or community resilience hubs in ways that enable bulk purchasing of batteries and controls, including microgrids. SDCP should also provide technical support to customers to enable comprehensive energy retrofits, including energy storage systems.
Funding Considerations
SDCP should consider offering incentives to stack on top of other energy storage funding sources such as the Self-Generation Incentive Program (SGIP) like other CCAs have done. Additionally, SDCP should also consider creative financing to bridge the gap in SGIP processing timelines and complexities by providing an up-front incentive instead of requiring participants to wait for a rebate. Internal revenues could be prioritized for energy storage system market development programs given the potential multiple organizational and community benefits.
Program Type 9: Distributed Energy Resources: Demand Response Table 12: Distributed Energy Resources: Demand Response Projects Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Demand response programs incentivize customers to reduce their electricity use when energy demand on the grid is at its peak. These types of programs can encourage behavioral changes to shift or reduce usage or can leverage smart devices to automatically take the desired action.
Benefits
Decarbonizing buildings requires more than just reducing the amount of energy used; it requires changing the time of when energy is used to maximize the use of renewable energy and minimize peak demand when the grid requires larger fossil-fuel generation to come online. Demand response technologies enable this shift in when energy is used, helping customers control costs, and making the best use of renewable energy when it is available. Demand response technologies can also enable buildings to help build the overall resilience of the grid by helping operators shift loads during peak times, reducing the likelihood of power outages during extreme heat events.
Design Considerations
A gap exists around support for installation of smart controls on other systems, such as heat pump technology, electric vehicle chargers, and energy storage systems. Many CCAs require or encourage the equipment they incentivize to have demand response capabilities. SDCP should require that incentivized equipment be grid interactive. By establishing technology requirements across other programs, SDCP could provide the most future-proofing and flexibility to enable customers to participate in demand response programs.
Funding Considerations
Because demand response programs have the potential to reduce the amount of energy that SDCP needs to procure or bring value to SDCP’s power services in other ways (i.e., resource adequacy), SDCP should consider funding these programs through internal revenues. SDCP should monitor the Demand Side Grid Support program development and other related demand response programs available from the California Energy Commission and California Public Utilities Commission.
Program Type 10: Energy Efficiency
Table 13: Energy Efficiency Projects
Project Scope of Work Carryforward FY25
PUC Energy Efficiency
Program
To reduce the amount of energy customers use, improve
indoor comfort, and lower energy bills. $40,609 -
Regional Energy
Network
The San Diego Regional Energy Network (SDREN) is an
initiative of SDCP, in partnership with the County of San Diego, to offer a portfolio of energy efficiency programs to residents, businesses, and public agencies throughout San Diego County. The 10 SDREN programs will be managed by
SDCP staff and all activities will be cost recoverable through CPUC funds. SDREN is currently under review by the CPUC and we expect to receive approval by the end of 2024.
- $723,450
CDFA Healthy
Refrigeration Grant
The program funds energy efficient refrigeration units in corner stores, small businesses, and food donation
programs in low-income or low-access areas in the state to stock California-grown fresh produce, nuts, dairy, meat, eggs, and minimally processed and culturally appropriate foods. The purpose of the program is to improve access to healthy foods in underserved communities, while
promoting California-grown agriculture.
$710,000 -
Total $750,609 $723,450
Description
Energy efficiency programs promote a wide range of strategies that can reduce the amount of energy buildings use.
Benefits
Energy efficiency is a critical decarbonization strategy with multiple co-benefits: reduced energy demand, reduced customer energy bills, increased indoor air quality, and increased indoor comfort. Weatherization efforts, including insulation, improved windows and doors, and cool roofs can help keep indoor environments safe and comfortable longer when power outages occur—and less energy demand means customers can install smaller renewable energy generating systems (e.g., onsite solar) which leads to lower installation costs.
Design Considerations
With SDG&E offering a multi-year energy efficiency program portfolio, SDCP should develop complimentary programs that fill gaps and avoid duplication. SDCP should consider opportunities to provide free or low-cost energy efficiency upgrades for income-qualified customers and residents in Communities of Concern to be responsive to community priorities. Energy efficiency programs for multi-family buildings can help fill a gap, as these buildings often have complex ownership structures and other barriers that make it difficult to access traditional programs; this is especially notable for affordable multi-family housing.
SDCP should consider that residents of inefficient buildings may be overburdened by rent and utility costs and may end up displaced if housing costs increase because of energy efficiency upgrades.
Given the vulnerability of the occupants and the importance of keeping people housed, energy efficiency programs should include protections for renters. This may require SDCP to work closely with local housing departments or other agencies. While challenging, these considerations can help support Communities of Concern.
Funding Considerations
SDCP submitted its application to the CPUC for the REN in January 2024. The application proposed a funding period beginning in 2024 and continuing through 2027. The budget included a four-year program portfolio for the period 2024- 2027 and to maximize the REN’s alignment with the rolling portfolio process, the REN budget request aligned with the 2024-2027 period.
Program Type 11: Transportation Electrification: Infrastructure Table 14: Transportation Electrification: Infrastructure Projects Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Transportation electrification infrastructure programs support the deployment of electric vehicle charging stations and related technologies (e.g., Vehicle-to-Grid) to enable light-, medium-, and heavy-duty transportation electrification.
Benefits
Expansion of the electric vehicle charging network is needed to support customers switching from fossil-fuel powered cars, which are associated with both carbon emissions and local air pollution. Increasing access to charging infrastructure can increase customer confidence to make the transition to electric vehicles, especially for residents of multi-family buildings and in rural areas, as noted during the community needs assessment.
Design Considerations
SDCP should focus transportation electrification infrastructure programs on locations where the private sector is not currently prioritizing development (i.e., geographical areas or market sectors). Gaps in access to electric vehicle charging infrastructure could be filled through strategies such as direct installation of equipment for multi-family buildings located in Communities of Concern. In some cases, SDCP should provide additional funding to residents to stack on top of existing funding from incentive programs for all applicants or some sectors (e.g., Communities of Concern). In light of significant funding becoming available for public charging infrastructure, SDCP should partner with member agencies to expand public access to charging infrastructure in locations underserved by public charging and/or that could serve residents of multi-family buildings. Creative approaches for deploying charging infrastructure on member agency-owned land could create benefits (e.g., lower charging costs and increased charging locations) relative to charging infrastructure on commercial properties. SDCP also should consider offering technical assistance and incentives for commercial charging infrastructure to support the transition of medium- and heavy-duty vehicles to electric.
Funding Considerations
Significant focus has been placed on transportation electrification by state and federal agencies, creating many opportunities for SDCP to seek external infrastructure incentive programs. The California Public Utilities Commission’s Locally Invested Transportation Equity funding offers a chance to test innovative program designs with a focus on community partnerships. The California Energy Commission is expected to provide additional opportunities for creative incentive design and delivery through future Vehicle-to-Grid funding and the Electric Program Investment Charge program.
SDCP should continue to collaborate with the San Diego Association of Governments and San Diego County Air Pollution Control District through the regional Accelerate to Zero Emissions Collaboration and in their effort to incentivize charging infrastructure. Lastly, SDCP can support member agencies in their efforts to seek funding such as through the Clean Mobility Options program.
Program Type 12: Transportation Electrification: Light-Duty Vehicles
Table 15: Transportation Electrification: Light-Duty Vehicles Projects Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Light-duty vehicle electrification programs support customers in the transition from fossil-fuel powered cars to electric cars. Examples of light-duty vehicles include sedans, sport utility vehicles, and pick-up trucks.
Benefits
The switch from fossil-fuel powered cars towards electric vehicles have the dual benefit of reducing carbon emissions and air pollution locally. Compared to light-duty fossil-fuel cars, light-duty electric vehicles are easier to maintain and have an overall lower lifetime cost of operation. With the right rate structures and technology, electric vehicles also present the opportunity to serve as energy storage systems and help with grid resiliency.
Design Considerations
SDCP should prioritize expanding access to electric vehicles for income-qualified customers, such as offering incentives for used electric vehicles to increase affordability. Previously leased electric vehicles can be good options for used electric vehicles if they are in good condition. SDCP should consider partnering with car dealerships to offer point-of-sale incentives on used electric vehicles. SDCP should avoid providing after-sale rebates since it requires customers to have the upfront capital and ability to wait for a rebate. It should be noted that point-of-sale incentives can be more challenging to implement and SDCP will need to do additional work to support this type of delivery mechanism.
In addition, SDCP should focus on reducing other barriers to electric vehicle adoption such as by providing favorable financing options. Electric vehicle programs can be paired with support for charging infrastructure in Communities of Concern. Lastly, SDCP should consider designing programs that reduce other barriers to electric vehicle adoption by providing point-of-sale incentives or other types of up-front assistance instead of after-sale rebates. SDCP should also consider how best to fill in the gap for financing options by income-qualified customers.
Funding Considerations
Internal revenues may be required to create incentives to stack on top of available State funding for electric vehicle adoption (i.e., Clean Vehicle Rebate Project and Clean Vehicle Assistance Program) or the future regional vehicle-scrap program (i.e., Clean Cars 4 All). As with transportation electrification infrastructure programs, the regional Accelerate to Zero Emissions Collaboration initiative will be involved in all aspects of bringing funding to the region, both for SDCP to potentially access for self-administered programs and for its customers to access via third-party programs.
Program Type 13: Transportation Electrification: Medium- and Heavy-Duty Vehicles
Table 16: Transportation Electrification: Medium- and Heavy-Duty Vehicles Projects Project Scope of Work Carryforward FY25
N/A N/A - -
Total - -
Description
Medium- and heavy-duty vehicle electrification programs encourage the transition away from fossil- fuel powered commercial vehicles toward electric alternatives. Examples of medium- and heavy- duty vehicles include delivery and shuttle vans (class 2-6), diesel shipping trucks (class 7-8), school and transit buses, transport refrigeration trucks, drayage trucks, and forklifts.
Benefits
The electrification of medium- and heavy-duty vehicles reduces carbon emissions and local air pollution. Air pollution tends to be high around ports and logistics corridors, where heavy commercial vehicles regularly travel and often spend time idling. These are also places where large portions of Communities of Concern can be found, leading to disproportionate impacts on the health of these communities. Transitioning these vehicles has the added benefit of reducing noise pollution as well.
Design Considerations
SDCP should analyze which fleets of medium- and heavy-duty vehicles have the highest impact on Communities of Concern. The Port of San Diego is a clear partner given its location, business operations, and recent policy direction in the Maritime Clean Air Strategy. Working with transit agencies, school districts, and public agencies, SDCP can support the transition of fleets that serve the public to create the co-benefit of exposing more of the public to electric transportation.
SDCP should also create medium- and heavy-duty vehicle electrification programs that target businesses that operate their fleets primarily in Communities of Concern. While some medium-duty electric vehicle types are cost-competitive now, others are far more expensive and will take more support and resources to transition. In addition, because medium- and heavy-duty vehicles vary in the distance they can travel on each charge, SDCP should work with commercial customers to determine which vehicles options would work well based on their specific need, travel patterns, and markets served. SDCP also needs to consider the need for appropriate charging infrastructure to support the conversion.
Funding Considerations
SDCP should consider working with customers to implement innovative business models that lower the cost of vehicles.
It should also consider leveraging internal funding to capture new funding opportunities and maximize impact.
Program Type 14: Flexible Load
Table 17: Flexible Load
Project Scope of Work Carryforward FY25
Distributed Energy
Resources
Management
Systems Software
Platform
Central to SDCP's Flexible Load Strategy is the selection and implementation of a Distributed Energy Resource
Management System (DERMS). A DERMS is a software
platform that incorporates various data points, such as weather, market/price data, and customer preferences, to optimize the operation of distributed energy resources
(DERs) in support of various grid services. Once
operational, this system will allow SDCP to help customers reduce usage during high-cost on-peak periods, while
managing portfolio-wide power procurement and resource
adequacy costs and risk.
- $500,000
Total - $500,000
Description
The flexible load program is a strategy that can be implemented across a range of programs. The strategy will outline target end use technologies, key points of integration with existing/planned programs, a proposed software architecture to drive device dispatch and control, as well as a framework to guide dispatch and device operations.
Benefits
The strategy is being designed to optimize customer energy usage around time of use rate schedules and customer preferences, directly reducing participant bills, while decreasing major SDCP cost drivers, such as energy and resource adequacy procurement. The strategy also incorporates advanced analytics to predict peak demand periods, allowing for proactive adjustments to energy consumption that further enhance cost savings. Additionally, by promoting the adoption of renewable energy sources, it supports SDCP’s broader goals of sustainability and reduced environmental impact.
Design Considerations
Staff have completed the software requirements gathering process that will guide the procurement process for a Distributed Energy Resources Management System (DERMS) software. Staff also requested existing bids from other public agencies that ran a DERMS solicitation and are using the requirements and existing bids to guide the procurement process. If required, staff anticipate releasing a DERMS Request for Proposal for bidders in June 2024 and anticipate the DERMS software to be under contract by Q3 CY 2024.
Funding Considerations
Given the difficulty in securing external funding for the DERMS software platform, internal revenues will likely be required to ensure that the project moves forward. Since the DERMS software is integral to SDCP’s flexible load strategy, flexible funds such as one-time operating funds will likely be the recommended funding option.
Program Type 15: Information Technology: Upgrades
Table 18: Information Technology Upgrades
Project Scope of Work Carryforward FY25
Customer Relationship
Management Setup
The Customer Relationship Management project will establish a centralized system to enhance service delivery and community engagement, with a focus on energy management and customer support. This initiative, excluding confidential security work, will streamline operations across SDCP’s service area and reduce long-term costs.
- $750,000
Artificial Intelligence
Call Center
SDCP's Artificial Intelligence Call Center Project is a strategic initiative to deploy AI technology for enhancing customer service operations. The project will deliver an AI-powered contact center ensuring efficient and personalized customer interactions. This advancement will provide customers with round-the-clock support, significantly improving service responsiveness and satisfaction.
- $200,000
Enterprise Data
Platform
SDCP is set to establish a centralized data infrastructure to improve data access and analytics for staff, aiming to enhance control and reduce costs. The project encompasses capital investment, staff training, data migration, and cybersecurity enhancements. Deliverables include a functional data platform, trained personnel, and detailed progress reports. The initiative will proceed through planning and implementation phases, excluding confidential security-sensitive details.
- $850,000
Amazon Web Services
Infrastructure and
Security Layer
SDCP will develop an Amazon Web Services Infrastructure and Security Layer to ensure robust, scalable cloud services with enhanced security for customer data. This project will provide a reliable and secure foundation for all SDCP digital services, improving customer trust and service efficiency.
- $250,000
ETRM and Portfolio
Analytics
Implementation
SDCP is exploring licensing and deploying an Energy Trading Risk Management (ETRM) system to help manage its power portfolio and financial & budget processes. This system would support various activities such as recording trades, monitoring positions, assessing value, generating reports, managing risks, processing settlements, and integrating with the budget. It’s designed to manage diverse power agreements and contracts, ensuring comprehensive coverage of SDCP’s energy dealings.
- $500,000
Total - $2,550,000
Description
Information Technology programs are designed to modernize and enhance the digital infrastructure of organizations, improving efficiency, security, and the ability to adapt to new technological advancements.
Benefits
The advancement of Information Technology Upgrades significantly enhances operational efficiency and cybersecurity.
In areas with high concentrations of technological activity, outdated systems can lead to increased vulnerabilities and inefficiencies. Upgrading these systems not only fortifies the security and enhances the performance of various sectors but also promotes a more dependable and sophisticated technological framework. Moreover, the transition to modern IT infrastructure aids in minimizing electronic waste through the adoption of energy-efficient and long-lasting equipment, contributing to environmental sustainability and public health benefits.
Design Considerations
Our organization is committed to creating a world-class IT and data ecosystem with the mission to harness the power of data to drive sustainable energy solutions that benefit local communities while making a global impact. By ensuring the integrity, accessibility, and security of our data, we empower decision-makers with actionable insights. Projects are selected with the idea to construct and manage robust data repositories, interactive dashboards, and comprehensive visualizations to monitor objective key results.
SDCP receives a vast amount of data from its vendors and partners including SDG&E and Calpine (our back-office provider). To best utilize this data to effectively run our operations, make data-driven decisions, and optimize the customer experience, the Information Technology: Upgrades program type develops and expands the data analytics platform that consists of a set of analytical tools built on a cloud-based platform that helps with customer management, load forecasting, rate design, program marketing, and accounting.
Funding Considerations
Given the restrictions and limitations with external funding that would potentially be imposed on key information technology projects for SDCP, internal funding likely through one-time operating funds is the recommended funding approach. In particular, projects such as the SDCP ETRM must be designed to be flexible and to be tailored to SDCP since this project will be a significant resource for SDCP’s main cost, energy. That being said, to maximize flexibility and design considerations, staff recommend funding through one-time operating transfers.
Funding
Guide
Funding Guide
There are two main ways that SDCP can fund programs—through its own internal revenues or by applying for external funding. Funding programs with internal revenues would provide the greatest amount of flexibility for SDCP to design programs in ways that specifically meet community needs; however, as a newer organization, SDCP must also balance building a strong financial foundation, meeting reserve targets and other organizational priorities. In the short-term, the amount of revenues SDCP can direct to customers in the form of programs will be limited, but that amount is expected to grow over time.
Even further, internal funding allows maximum flexibility in the planning phase with designing programs and projects whereby the agency can focus on designing based on community and agency needs rather than the requirements requested by a funding agency. The planning phase of a program or project also requires less funding when compared to implementation or design and construction.
While building reserve funds and to have maximum impact, SDCP will need to pursue external funding from sources such as state and federal agencies. External funding takes more work to apply for and administer and is less flexible than using internal revenues, but the total dollar amounts from external sources can be much higher. The main sources of external funding include the California Public Utilities Commission and California Energy Commission, as well as other state and federal agencies. The federal Infrastructure Investment and Jobs Act and the Inflation Reduction Act will also create new funding sources, likely delivered through these same state agencies.
Internal versus External Funding
When considering funding for administering programs, SDCP must evaluate using internal revenues and applying for external funding, which both have impacts that need to be thoroughly considered. Investing internal revenues into programs would be done so over other potential organizational priorities. That said, investing revenues back into the community through programs provides arguably the most equitable distribution of revenues to customers and undoubtedly provides the highest level of certainty and flexibility for SDCP to administer programs.
External funding is typically competitively bid, requiring additional resources for grant tracking and writing, and creating risk for long-term program planning due to the uncertainty of grant awards.
Additionally, many of the potentially cumbersome administrative elements of external funding (e.g., reporting, program design, and timelines) can be less burdensome when funding programs with internal revenues. This flexibility is particularly important when considering SDCP’s equity commitments because external funding sources may have requirements that can make it difficult to deliver programs effectively to customers in Communities of Concern.
Research across the CCA landscape shows a variety of different approaches when considering program funding sources.
Some CCAs aggressively spend their own revenues on programs with little use of outside funds due to the administrative burden and complexity associated with external funds, among other reasons. Others spend a relatively limited amount of revenues on programs, instead relying almost solely on external funding sources. As a young organization, SDCP should prioritize a middle ground between these two extremes and adjust the strategy as the organization matures.
In the short-term, SDCP has committed to building financial reserves of $500 million (180-day cash on hand), since one of the organization’s strategic goals is to obtain a credit rating. This attention to building a strong financial position is important to enable SDCP to effectively meet the long-term needs of the community. As reserve targets are met, the ability of SDCP to invest revenues back into communities through programs will increase.
Meeting financial reserve targets will give SDCP the ability to offer programs with larger budgets and provide financial incentives using internal revenues. Internal revenues can also support increased external funding, for example by developing pilot programs which can be expanded with external resources, or by supplementing external funding with additional funds to support full project needs. Doing so can make SDCP’s internal dollars go farther.
External Sources
SDCP can apply for funds from a variety of sources to supplement SDCP’s own investments in programs. These external sources vary in the level of funding resources they provide, the complexity of the application process for securing them, and the flexibility they offer in how funds are distributed.
New funding opportunities will become available as budget is allocated through state legislation. SDCP will monitor for funding opportunities that are a good fit to pursue, based on community and organizational priorities, and apply for them in the short-term, while understanding that funding may not become available until the mid-term. For some external funding opportunities, SDCP may be able to partner with other regional agencies and partners to share the administrative burden.
SDCP should explore the viability of capturing funding from the sources below.
Funding Guide
Funding Source Description
SDCP Revenue Bond
Section 3.2.8 of the JPA states that SDCP at the discretion of the Board may issue revenue bonds and other forms of indebtedness. Upon receipt of an investment-grade credit rating, SDCP may have the ability to issue debt, such as a revenue bond, given that SDCP can demonstrate the ability to meet potential debt payment obligations through the credit rating. Under the SDCP Debt Policy, SDCP may issue a revenue bond in the next 5 years up to ~$700 million that will be guided by planning and pilot projects and programs and that will need to be authorized by the SDCP Board.
SDCP Operating Transfers
Through the annual budget process, the SDCP Board may approve an appropriation of funds to be transferred out of the operating budget and transferred into the CIP.
These funds will remain in an SDCP continuing fund to be used across multiple fiscal years given that CIP projects generally last longer than one year.
CPUC Apply to Administer
(ATA)
SDCP could offer energy efficiency programs that do not duplicate SDG&E’s current offerings with all programs required to meet strict cost-effectiveness tests. Cost-effectiveness requirements can limit program offerings to residential customers and especially to customers in Communities of Concern. Due to the administrative burden, lack of flexibility and creativity, and strict cost-effectiveness requirements.
CPUC DAC-GT and CSGT
The Disadvantaged Communities - Green-Tariff (DAC-GT) program enables income-qualified, residential customers in DACs who may be unable to install solar on their roof to benefit from utility scale clean energy and receive a 20% bill discount. The Community Solar Green Tariff (CSGT) program enables residential customers in DACs who may be unable to install solar on their roof to benefit from a local solar project and receive a 20% bill discount. Funding originates from state Greenhouse Gas (GHG) Auction Proceeds and Public Purpose Program funds.
CPUC Elect to Administer
(ETA)
The ETA option is a more streamlined pathway to access Public Purpose Program Surcharge funds available to CCAs when compared to ATA. Unfortunately, due to the methods used to determine available funding, currently there are no available funds eligible for SDCP to receive in the short – and mid-term under this pathway CPUC Regional Energy
Network (REN)
Public Purpose Program Surcharge funds available for RENs. The San Diego region is one of the last highly populated areas in the State not included in one. REN programs fill gaps in existing energy efficiency programs by serving “harder-to-reach” customers. They are also not held to the same cost-effectiveness thresholds, allowing for more flexibility in developing programs that serve Communities of Concern.
CPUC Locally Invested
Transportation Equity (LITE)
pilots
Separate from energy efficiency funding, the CPUC expects to fund innovative transportation electrification pilot projects called Locally Invested Transportation Equity (LITE) pilots. Incentives from the LITE pilot projects are limited to low-income customers and small fleets located in disadvantaged communities as defined by CalEnviroScreen 4.0 and would allow for testing new rebate design approaches that may fill gaps in the statewide rebate program in creative ways. Up to $25 million will be available statewide with individual pilots capped at $4 million. The CPUC will seek pilot concepts by the end of 2023 with projects expected to begin in 2024.
CEC Demand Side Grid
Support Program
The Demand Side Grid Support Program is currently under development and will ultimately offer incentives to electric customers that provide load reduction and back- up power generation to support the State’s electrical grid during extreme heat events.
CEC Electric Program
Investment Charge (EPIC)
The CEC’s Electric Program Investment Charge (EPIC) program is a consistent funding opportunity to advance new and innovative clean energy solutions. The EPIC program invests $130 million annually in a variety of technology research. The CEC has awarded EPIC funding to CCAs for a variety of projects. Most notably, Sonoma Clean Power received a $5 million EPIC grant in 2018 to support its Advanced Energy Center and associated energy efficiency programs
CEC Vehicle-to-Building/Grid
Integration (V2B or V2G)
The CEC is a potential source of funding for Vehicle-to-Building/Grid Integration (V2B or V2G) pilots that will become more valuable to SDCP, both from a customer program perspective and potentially from an energy procurement perspective in the future.
CDFA Healthy Refrigeration
Grant
The California Department of Food and Agriculture (CDFA) notified SDCP that it was awarded partial funding in the amount of $710,000 to support SDCP in providing technical assistance and refrigeration units to stock healthy foods at stores throughout SDCP’s service territory.
Equitable Decarbonization
Program
The Equitable Building Decarbonization Program which envisions two incentive programs to reduce greenhouse gas emissions in homes: a direct install program and a statewide incentive program. The State has allocated $600 million in the FY 223-24 budget (subject to change) for these two residential building decarbonization programs; the role of CCAs is still solidifying as program guidelines develop.
SGC Community Resiliency
Hubs
The California Strategic Growth Council (SGC) - $25 million will be available in FY 22/23 and $75 million will be available in FY 23/24. SDCP could partner with local agencies or community-based organizations to support the development of community resilience hubs, with a focus on providing onsite solar, energy storage, and backup power that can support communities during emergencies.
EPA Greenhouse Gas
Reduction Fund
The Inflation Reduction Act (IRA) established the federal Environmental Protection Agency’s Greenhouse Gas Reduction Fund to provide competitive grants for mobilizing financing and private capital for clean energy projects. The Greenhouse Gas Reduction Fund emphasizes projects that benefit low-income and disadvantaged communities. Expected to be available in 2023, it will expend $27 billion in competitive grants and financial and technical assistance to enable communities to deploy or benefit from zero-emission technologies.
EPA Environmental and
Climate Justice Block Grants
The Environmental Protection Agency was also funded through the IRA to establish Environmental and Climate Justice Block Grants. Local governments and community-based organizations are required to partner to apply for $3 billion in funding available over the next five years. The block grants will fund various activities in line with SDCP community and organizational priorities, such as indoor air pollution reduction, greenhouse gas emissions reduction, and climate resiliency. No specific timeline for the funding has been announced for the block grants
Other Federal Funds
As stated above, the Infrastructure Investment and Jobs Act and IRA represent the largest climate investment in the history of the federal government. SDCP is eligible to pursue forms of funding not available to for-profit entities such as traditional investor-owned utilities. Several funding opportunities are clear to SDCP now, and more may arise as details continue to emerge during program development.
Table 19: SDCP Funding Guide
Budget
Resolution
Budget Resolution
RESOLUTION NO. ___
A RESOLUTION OF THE BOARD OF DIRECTORS
OF SAN DIEGO COMMUNITY POWER
ADOPTING THE FISCAL YEAR 2024-2025 OPERATING BUDGET, THE FISCAL YEAR 2024-2025 CAPITAL BUDGET, AND THE FISCAL YEAR 2025-2029 CAPITAL INVESTMENT PLAN
A. San Diego Community Power (“SDCP”) is a joint powers authority formed pursuant to the Joint Exercise of Powers Act, Cal. Gov. Code § 6500 et seq., California Public Utilities Code § 366.2, and a Joint Powers Agreement effective on October 1, 2019 and amended on December 16, 2021 (“JPA Agreement”).
B. The JPA Agreement provides that SDCP’s fiscal year (“FY”) shall be 12 months commencing each year on July 1 and ending on June 30 the following year.
C. The JPA Agreement further provides that 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 policies and procedures.
D. The SDCP Board proposes to adopt the FY 2024-25 Operating Budget and the FY 2024- 25 Capital Budget, attached hereto as Attachment A.
E. The SDCP Board further proposes to adopt the FY 2025-29 Capital Investment Plan that provides a comprehensive five-year plan for SDCP’s capital investment expenditures, attached hereto as Attachment B.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of San Diego Community Power as follows:
Section 1. The Board of Directors hereby adopts the FY 2024–25 Operating Budget.
Section 2. The Board of Directors hereby adopts the FY 2024-25 Capital Budget.
Section 3. The Board of Directors hereby adopts the FY 2025-29 Capital Investment Plan.
Section 4. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a meeting of the Board of Directors of San Diego Community Power held on June 27, 2024.
_____________________________
Chair, Board of Directors
San Diego Community Power
ATTEST:
_______________________________
Secretary, Board of Directors
San Diego Community Power
Acknowledgements
Acknowledgements
Finance Department
San Diego Community Power’s (SDCP’s) Finance department works to maintain a fiscally responsible budget in accordance with SDCP Budget Policy. The department ensures sufficient funding to meet procurement needs, sustain operational needs, and support sustained growth while delivering clean energy to the communities we serve. In addition, the team actively works to build SDCP reserves and develop policies that consider future economic conditions, provides an understandable and transparent operating budget for internal and external users, strives to keep the SDCP Board and staff informed of SDCP’s fiscal condition, and develops a budget that will ultimately prioritize people, transparency, and our communities.
Board of Directors
Councilmember Joe LaCava, Chair
Supervisor Terra Lawson-Remer, Vice Chair
Mayor Paloma Aguirre, Director
Councilmember Kellie Hinze, Director
Mayor John McCann, Director
Councilmember Colin Parent, Director
Councilmember Ditas Yamane, Director
Finance and Risk Management Committee
Mayor John McCann, Chair
Mayor Paloma Aguirre, Director
Councilmember Ditas Yamane, National City
Community Advisory Committee
Chula Vista
• Anthony Sclafani
• (Vacant)
County of San Diego
• Peter Andersen
• (Vacant)
Encinitas
• Gary L. Jahns
• Tara Hammond
Imperial Beach
• Ilian Sandoval
• Kenneth Hoyt
La Mesa
• David Harris
1 Formerly titled Managing Director Power Services
• Lauren Cazares
National City
• Aida Castañeda, Vice Chair
• Larry Emerson
San Diego
• Eddie Price, Chair
• Matthew Vasilakis
SDCP Executive Team
Karin Burns, Chief Executive Officer
Eric Washington, Chief Financial Officer/Treasurer,
Deputy Chief Executive Officer
Jack Clark, Chief Operating Officer
Veera Tyagi, General Counsel
Byron Vosburg, Chief Commercial Officer1
Finance Department
Eric Washington, Chief Financial Officer/Treasurer,
Deputy Chief Executive Officer
Tim Manglicmot, Senior Finance Manager
Christopher Stephens, Procurement Manager
Diana Gonzalez, Risk Manager
Christopher Do, Financial Analyst
Julissa Mercedes, Financial Analyst
Kevin Bateman, Financial Analyst