1 • Subtitle
New SV Clean Energy
PowerPoint Template
2023 Policy Platform and
Legislative Ad Hoc
Committee
Bena Chang, Senior Manager of Government Affairs
December 14, 2022
Item 3
PRESENTATION
2 Objectives
Requesting SVCE Board approval of:
1. SVCE’s 2023 Policy Platform; and
2. Creation of the Ad Hoc Committee of the Board to Address Legislative Response to Industry Transition (“Leg Ad Hoc Committee”) Item 3
PRESENTATION
3 2023 Policy Platform
Item 3
PRESENTATION
4 2022 Legislative Year in Review + Forecast
Historic funding year – significant policy challenges remain 2022 Review
- Historic passage of IRA and state budget with $53.9 billion on climate and energy. - State - focus on reliability – new Strategic Reliability Reserve and Diablo Canyon extension
2023 Forecast
- Implement the state’s ambitious clean energy goals – focus on interconnection and transmission challenges and reliability.
- State Budget – Legislative Analyst Office projects $25 billion shortfall - State – huge first-year legislator class, new Speaker - Federal – Republicans take over House
Item 3
PRESENTATION
5 2023 Draft Legislative Policy Platform
Principles and policy document to guide legislative positions in 2023. • Re-launch process: internal and external stakeholder conversations. • Policy Platform changes from last year include:
• Higher-level description of policies paired with example policy proposals. • Re-organized policies into broader headings.
• Incorporated Ad Hoc Committee feedback on interconnection delays, distribution equipment failures, and workforce training.
Item 3
PRESENTATION
6 2023 Draft Legislative Policy Platform
Top Policy Areas
1. Clean, Reliable Grid: Support investments and barrier removal for transmission and renewable projects. Support reliable electric system, including smart build out of distribution grid, addressing interconnection barriers and equipment failures.
2. Climate Change Mitigation/Fuel Switching: Support funding and programs to decarbonize electric, building, and transportation sectors.
Remove barriers to fuel switching and decarbonization. Support clean energy workforce development efforts.
3. Competitive Equity/Do No Harm: Supports CCA model of local government governance. System needs should give flexibility to allow local authority and discretion to meet goals.
Item 3
PRESENTATION
7 2023 Draft Legislative Policy Platform
Additional Policy Areas
• Health Impact/Safety: Support policies that increase safety of electric infrastructure and health of the community.
• Equity: Support policies that consider equitable treatment of low-income and historically underserved communities.
• Affordability and Rates: Support rates that are competitive and enable high-value services.
Item 3
PRESENTATION
8 2023 Legislative Ad Hoc
Committee
Item 3
PRESENTATION
9 Leg Ad Hoc Committee
Purpose:
• Respond to industry transitions
• Increase engagement between SVCE Board
and staff on legislative issues
Request Board approval to establish Legislative Ad Hoc Committee.
Item 3
PRESENTATION
10 Recommendations
1. Approve SVCE’s 2023 Policy Platform; and
2. Create the 2023 Legislative Ad Hoc Committee
Item 3
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 4
PRESENTATION
Item 4
PRESENTATION
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PRESENTATION
Discount
assumptions in
2023 Budget,
as approved in
Sept2022
2% discount for all customers in Jan 2023
up from 1% in 2022
Additional N10% discount for CARE/FERA
customers
Provides 35-40% net customer discount
In lieu of additional 1% discount to all customers
Overall discount to be revisited in Nov/Dec,
and possibly increased, based on latest PG&E
rate projections for 2023, and SVCE outlook
3 Net Contribution to Reserve
Projections
• Budgeted: $115 million
• Updated: $139 million
o latest PG&E Gen Rate and
PCIA rates will result in
higher revenues, which more
than offset higher Power
Supply costs for energy and
resource adequacy (RA)
Available for Add’l Expenditure
• Using stress test methodology discussed at
budget time . . .
o ensure if stress test scenario 2* were to
occur, over a two-year period, reserves do
not fall below 120 days of cash on hand
• Analysis shows the additional amount available
for spending of approximately $30 million**
* Price collapse results in high PCIA/low PG&E generation rates requiring a significant draw on reserves for SVCE to maintain a 1 percent customer discount
** Two summer months of power supply costs are accounted for in reserves for the potential new Provider of Last Resort (POLR) posting requirements (~$95 million).
Item 4
PRESENTATION
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Item 4
PRESENTATION
Timeline for Setting 2023 Rates and
Discounts
Item 4
PRESENTATION
w ~ U 0 > ·,.::. (/) u <(
w ~ ~ 0
C) ·..:.
a. u <(
11/14/22:
EC
Meeting
Initial
Review
12/15/22:
Board votes on:
- Immediately adding new Electric
Home rate at current 1% discount
- Setting new overall discount
effective January 2023
o Including allocation of funds
12/1/2022:
New 'Electric
Home' rate
becomes available
for enrollment from
PG&E
for increased 'electrification rate'
discount and electrification in
future yea rs
by 12/30/22:
New PG&E
rates published
effective Jan
15\ 2023
2022 2023
By 1/15/2023:
Updated SVCE
2023 rates
become
effective in
billing system
6 Item 4
PRESENTATION
•
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Item 4
PRESENTATION
Strategic focus areas for 2023 include 'doubling down' on the electrification value proposition and leveraging SVCE's balance sheet to provide financing solutions to customers.
How can $30M best be returned to customers in a way that's mission-aligned? as in past years, we can modify (increase) our uniform discount to all customers for the coming year
or ...
we could take a hybrid approach:
1) some increase in our overall discount
2a) provide funding for a strategic 'electrification discount' 2b) expand our Multifamily Direct-Install program for low-income renters 8 Item 4
PRESENTATION
•
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Item 4
PRESENTATION
Our incentive programs help keep up-front
electrification project costs competitive with gas
replacements.
We can help keep ongoing bill costs competitive by:
Raising awareness of PG&E's new electrification-friendly rate ("Electric Home") Adding a deeper discount for residential customers
on the Electric Home rate to help achieve bill
neutrality or savings
10 $0
$50
$100
$150
$200
$250
$300
Mixed-fuel Standard Rate (ETOUC) Electric Home Rate Electric Home Rate + 10% Discount
Electric Cost
Gas Cost
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Item 4
PRESENTATION
Electrifying an existing
home often increases
monthly utility bills
compared to a mixed-fuel home
Enrolling in the "Electric
Home" rate significantly
reduces this increased
cost
An SVCE 'Electrification
Discount' helps achieve
on-bill parity or savings
Average Monthly Bill Comparison
■
Notes: "All-electric" scenarios represent electrification of major end-use appliances (space & water heating) Sources:
1. 2019-2021 SVCE residential customer usage data
2. 2019 SVCE Buildings Baseline Study for usage by end-use category
3. Database for Energy Efficient Resources (DEER) for climate zone-specific 8760 hourly end-use profiles 11 •
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Item 4
PRESENTATION
Qualifications for PG&E's new "Electric Home" rate:
Residential customer
Own at least one of the following:
Heat pump (space and/or water heating)
EV
Battery (charged by the grid)
NEM customers are not initially eligible for the new rate NEM 1.0 & 2.0 to be included in PG&E's phase 2 rate update (03 2023) SVCE to revisit NEM discount eligibility once phase 2 details are released Anticipate new rate will not incentivize adoption by NEM 1.0 & 2.0 customers 12 Item 4
PRESENTATION
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Item 4
©
PRESENTATION
An electrification discount would mostly benefit
homeowners, versus renters.
Distribution of Multifamily
Units in SVCE Territory
Notes:
Most voluntary electrification is
pursued by single-family
homeowners in SEVls 1 and 2
Renters in multifamily buildings lack
opportunity to pursue electrification
This disproportionately impacts
customers in SEVls 3 and 4
1. SEVI = Socioeconomic Vulnerability Index
2. SEVI describes the relative socioeconomic characteristics of communities in terms of poverty, unemployment, educational attainment, linguistic isolation, and percent of income spent on housing 14
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Item 4
PRESENTATION
Approved $2M reaches N150-300
units (75k total in SVCE territory)
Only renters with gas heating are
eligible to participate
40% of renters (30k customers)
have electric resistance heating
and are currently ineligible
These renters predominantly live
in low-income areas
15 •
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Item 4
PRESENTATION
The problem with electric baseboards:
Expensive to use
Tenants are stuck with them
1. Rewiring America's updated analysis the EIA 2022 Winter Fuels Outlook Switching to heat pump technology:
Saves up to 65% on heating bills1
Provides A/C and improved comfort
Grants access to electrification rates
16 Item 4
PRESENTATION
,, .... ~ .
......
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•
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PRESENTATION
1) Increase SVCE's overall discount rate for 2023
2a) New 'Electrification Discount':
10+% discount on PG&E's new "Electric Home" rate
Set aside sufficient funding now, so discount can be available for at least NS years (2023-28) Potential reach of up to 50k customers
2b) Expanded Multifamily Direct-Install Program:
Funding to be flexible between 2a &
2b to adapt to future findings
Increase budget for the already-approved Multifamily Direct-Install program to help a higher number of low-income renters
Include electric heating retrofits in our program, making an additional 30k Multifamily customers eligible to benefit
18 Item 4
PRESENTATION
Discount 1) 2023 SVCE 2A) Electrification 2B)Expanded Total Scenario Gen Discount, Discount funding Multifamily D.I. Incremental Examples All Customers for NS years Program Cost in 2023 (%, incremental $) ($ / Customers) ($ / Customers) ($)
-A- - B - - C - - D - - E -
Base Case 2%, -- (FY 2023)
Alt 1 2%, -- $15M / 50k $15M / 3k $30M
Alt 2 3%, $5.5M $12.3M / 41k $12.3M / 2.5k $30M
* Alt 3 4%, $11M $9.5M / 32k $9.5M / 2k $30M
Alt4 5%, $16.5M $6.8M I 23k $6.8M I 1.4k $30M
Note: All scenarios include a N10% additional bill credit in 2023 for CARE/FERA customers, as planned in the FY23 budget 19 Item 4
PRESENTATION
Adopt Resolution 2022-39
1) Authorizing the CEO to implement SVCE generation rate changes effective January 1, 2023 or within three weeks thereafter, increasing from a 1% to a 4% discount to PG&E's new generation rates, and
2) Authorizing the CEO to allocate $19.0M to fund a) an electrification discount ($9.SM), and b) expansion of the low-income multifamily direct-install program ($9.SM).
20 Item 4
PRESENTATION
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PRESENTATION
© Stress Test Scenarios
Extreme but plausible scenarios that can deplete reserves and make SVCE uncompetitive.
Ensure adequacy of
reserves and
organizational resiliency
Guide development of
strategic plan
Shape FY 22-23 budget
and reserve targets
Price uncertainty Drives
the first 4 scenarios
Stress Scenarios for CY 2023 to CY2027 (five-year horizon):
1. Significant drop in energy prices including REC
Higher PCIA and lower PG&E Gen Rate
2. Insufficient financial liquidity
Price collapse triggers credit downgrade
Collateral calls from counterparties and CAISO
Increase in POLR (Provider of Last Resort) funding (called FSR - Financial Security Requirement)
3. PPAs default, renegotiate for higher prices, and/or delay start RPS non-compliance penalty
Replacement at higher prices
4. Load loss due to direct access and distributed load
5. Threat to Public Services or Facilities
22 Improved Margins
23 •
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Item 4
PRESENTATION
Current Effective
Rate*
PG&E Gen Rate:
14.30 ¢/kWh
1% SVCE discount t
Proposed Budget
2023 Rate ***
PG&E Gen Rate:
12.79 ¢/kWh
2% SVCE Discount
* Source: PG&E June 2022 Updated Rates
Proposed
2023 Rate**
PG&E Gen Rate:
14.76 ¢/kWh
I J: :<Ccn3: :u ~ ~ '
1 0. 0 I --t:f- 1
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
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I
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** Source: PG&E 2022 October ERRA Forecast (Weighted for SVCE Portfolio Load) *** Above margin analyses ignore minor reductions for franchise fees (0.09 ¢/kWh) 23 •
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Item 4
PRESENTATION
PG&E will be launching a new E-ELEC rate on 12/1/22, referred to as "Electric Home"
Opt-in, un-tiered residential
rate
Qualification:
EV,
ESS charging, and/or
HP or HPWH
Fixed monthly charge to
lower volumetric rates (T&D)
Benefits higher usage
customers by reducing fixed
cost bill component
Code H not applicable
12AM
3PM
4PM
peak
9 PM
Partial peak
12AM
E-ELEC*
Summer Winter
--
31 25
- ,_
,_
53 29
36 27
$15 fixed char1e
EV2A
Summer Winter
12AM
24 24
3PM
4PM
56 43
9PM - -
45 41
12AM
No ro)(ed charge
E-TOU-C
Summer Winter
12AM "'=.-
42 33 37 28
4PM ,_ ,_
49 40 39 30
9PM
12AM - T2 -Tl T2 Tl
No fixed charge
12AM
12AM
Notes: 1) The E-ELEC rates above are illustrative rates (cents/kwh) oased on Marcil 202.2 Rev and Sales. All other rates are Mar 2022 actual rates. 2) E-l also has a HUC tier, which is for high usage 011er 400% of baseline. A few customer-montl\s hit HUC.
Note: Rates above reflect fully bundled rates
E-1
Summer Winter
39 31 39 31
T2 Tl T2 Tl
No fixed charge
24 •
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Item 4
PRESENTATION
© How to align with PG&E rate eligibility?
Primarily:
SFH Owners
Higher Income
Voluntary
Electrification
E-ELEC Rate
Eligibility
EV,
Battery, HP
Space and/or Heating
HPWH
y
CodeH
Eligibility
Electric
Resistance
or
Electric
Furnace
Heating
Small % of customers (mostly
renters) eligible for either
Note: Both E-ELEC and Code H are
available to Residential customers only
Primarily:
Multifamily Renters
Lower Income
Limited
Electrification
Accessibility
Acronyms:
SFH = Single Family Home
HP= Heat Pump 25
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•
•
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3 4
MF
Condo
SFH
Item 4
PRESENTATION
© Customers w/Electric Resistance Heating
PG&E already offers a small
discount to customers with
permanently installed electric
heating who request it
("Code H")
N52k SVCE customers
70% of Code H customers
live in multifamily buildings
Over 60% live in SEVls 3-4*
Primarily electric baseboard
heating (inefficient, but also
contributing to decarb)
*Despite this, CARE/FERA participation for Code H
customers remains at 10%, SVCE's overall average
SVCE Code H Account Demographics
■
■
■
SEVI Quartile
26 $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Mixed-fuel HPWH HP All-electric
E1 B E1 H ETOUC B ETOUC H EV E-ELEC
Item 4
PRESENTATION
+-'
(f)
0 u
ro
:J
C
C
<(
Annual Electricity Costs per Residential Rate
Code H saves an average of $64
annually for E1 and ETOUC
customers
■ ■
Avg Customer Load Profile
■ ■ ■ ■
E-ELEC saves an average
of $211 annually compared
to E1 and ETOUC Code B
(based on preliminary
PG&E rates)
27 •
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Item 4
PRESENTATION
Path 1: Code H Discount
Provide expanded discount to electric heating customers ("Code H") Primarily multifamily residents located in SEVls 3 & 4
Mostly electric baseboard heating (ineligible for E-ELEC) * Path 2: Multifamily Direct Install (D.1.) Program Expansion Add additional funding to FFHB Multifamily D.I. program (currently $2M budgeted) Expand scope to include retrofitting inefficient electric baseboard heating Incorporate rate optimization into program (e.g., TOUC to E-ELEC w/ SVCE discount) * Path 3: D.I. Program with Strategic Partner (e.g., BlocPower, etc) Focus on low-to-moderate income multifamily retrofits
Clean heating, cooling, water heating, electric appliances, and weatherization 28 •
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1 Item 4
PRESENTATION
Multifamily Units
(75k total)
■ = gas heating
■ = electric heating
N60% of multifamily units have gas heating,
some of which could qualify for our direct-install program (based on income, etc.) N40% of multifamily units have electric heating
and would be ineligible for our direct-install
program (90% are renters, mostly low-income)
Converting inefficient electric
heating to heat pumps would:
Significantly reduce
tenants' heating costs
Provide A/C for renters
currently without cooling
Reduce grid strain by
lowering demand
Provide access to PG&E's
new electrification-friendly
rate (and SVCE's discount)
29 Item 4
PRESENTATION
E-ELEC Discount
Funding Scenarios
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
Number of
Customers
Participating (Year 5) 5-year Total Cost
17,000 $5.0M
23,000 $6.8M
32,000 $9.5M
41,300 $12.3M
50,500 $15.0M
30 •
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Item 4
PRESENTATION
EIA originally lumped heat
pumps and electric resistance
technologies together, despite
significant efficiency
differences
Rewiring America separated
the two technologies using EIA
RECS 2020 survey data
$1,700 to $1,800 was attributed
to electric resistance over the
heating season vs $596 for
heat pumps (33-35%)
1. Rewiring America's updated analysis the EIA 2022 Winter Fuels Outlook $2,000
$1,600
$1 ,200
$800
$400
$0
PROPANE
2019 2020 2021 2022
Data on costs by fuel from NEADA's September 12, 2022 release. Electric resistance and electric heat pump costs are disaggregated using data from the EIA's RECS 2020 survey (Table HC6.1) and assuming an HSPF 10 unlL 31 1
• Subtitle
New SV Clean Energy
PowerPoint Template
Update on Hybrid
Meeting Requirements
Kevin Armstrong, Deputy Director of Admin Svcs.
Bena Chang, Senior Government Affairs Manager
December 14, 2022
Item 5
PRESENTATION
2 Remote Meetings Schedule
AB361 continues to
allow remote meetings
with relaxed noticing
until February 28, 2023
• On October 17, 2022, the Governor
announced the end of the COVID State of
Emergency, effective Feb. 28, 2023.
• Starting January 1, 2023, meetings may
begin utilizing AB2449 meeting
requirements
• Starting March 1, 2023, without any action
needed, noticing requirements will revert to
traditional Brown Act rules
Item 5
PRESENTATION
3 Virtual Attendance (AB 2449)
AB2449 allows for the
continuation of relaxed
noticing requirements
for remote locations,
but adds some
significant
administrative
guardrails to limit
remote attendance:
• A quorum of Board members must be in person
at one location within the service territory
• If the quorum requirement is met:
• A member not present may request virtual
attendance for “just cause” or in “emergency
circumstances”
• The remote member must publicly disclose any individuals present who are age 18 or over
• The remote member must participate via audio and video • The remote member cannot teleconference more than 3
consecutive meetings, or more than 20% of the regular
meeting number for the year
• No location disclosure or public access is required
Item 5
PRESENTATION
4 Virtual Attendance (Brown Act)
Brown Act
Requirements apply to
members of the
legislative body, but not
staff or the public, who
are able to continue
attending remotely as
the agency allows.
• Under traditional Brown Act rules:
• Remote locations must be noticed in advance
• Remote locations must be open and accessible to the
public
• Board members could attend from an existing
publicly-accessible location that allows for ADA
access and full public participation
• Cupertino Community Hall (BOD Mtgs)
• SVCE Offices (Committee Mtgs)
• Member Agency Facilities
• Or Board Members could notice and make publicly-accessible other locations (home, hotel, etc.) Item 5
PRESENTATION
5 Legislative Comparison Table
AB 361 (Rivas) AB 2449 (Rubio) Traditional Brown Act Rules for Teleconferencing When can you use this authority? During a declared state of emergency for COVID, which will end on February 28, 2023.
Starting January 1, 2023. Anytime
Number of times you can
participate remotely in a calendar
year
Unlimited as long as the Board adopts a
resolution making required findings.
No more than 3 consecutive months or 20% of
meetings in a calendar year. Only 2 times a year
for “just cause reasons.”
Unlimited
Quorum Requirement Remote and in-person members both count for establishing quorum.
Legislative body must have a quorum in a single
physical location within the agency’s jurisdiction.
The physical location must be accessible to the
public.
Remote and in-person members both count for
establishing quorum. Must have a quorum within the
agency’s jurisdiction but could be from multiple locations.
Disclosures None required. Must disclose anyone over the age of 18 in the room and the member of the legislative body’s
relationship to that person. The member must
disclose the reason for teleconferencing.
The location of any remote locations must be identified on the agenda.
Public access to remote locations Not required. Not required. Members of the public must have access to all remote locations and must be able to address the legislative body from the remote location. The agenda must be posted at
the remote location.
Reasons to request
teleconferencing
None needed. Must be for “just cause” or “emergency” reasons.
Just cause includes 1) childcare/caregiving, 2)
contagious illness, and 3) travel on official
government business. Emergencies include
physical or family medical emergencies that
prevents a member from attending in person.
None needed.
When do you have to notice remote
participation?
No need to provide notice of remote locations. Member must notify the legislative body at the earliest possible time, including at the start of the
meeting.
Notification needed prior to posting agenda - at minimum 72 hours in advance of the meeting.
Item 5
PRESENTATION
6 Recommendation
While AB 2449 could be utilized to enable remote attendance with relaxed noticing requirements, staff believes that the complex requirements would create an administrative burden on both staff and board members, and recommends the following:
• Utilizing Cupertino Community Hall as the primary physical meeting location for Board of Director meetings and the SVCE office as the primary physical location for Brown Act committee meetings; and • In advance of the State of Emergency ending on February 28, 2023, staff will work with member agencies to identify alternative public meeting locations to participate remotely if desired (e.g. City halls, community centers, etc.)
Item 5
PRESENTATION
7 Appendices
Remote Location Assistance
Legislative Comparison Table
Item 5
PRESENTATION
8 Remote Location Assistance
SVCE Staff will work to
ensure smooth remote
participation by all
Board members, in
coordination with on-site staff
• SVCE will cover fees associated with the
use of an off-site location, including working
with member agencies to develop
reimbursement agreements for member
agency staff time needed to open public
facilities for remote attendance
• SVCE staff will do their best to provide the
technical assistance needed for remote
meetings, but will not be able to provide on-site support at remote locations Item 5
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Information Update on 2023
SVCE Board Elections
Item 6
PRESENTATION
Item 6
PRESENTATION
Review the selection process and timeline for 2023 SVCE appointments of Chair, Vice Chair, and committees.
2 •
•
Item 6
PRESENTATION
January BOD Meeting
Chair/Vice Chair
Appointments
Executive Committee
Appointments
December 15th :
Letters of Interest requested for Chair/Vice
Chair
Notification of Executive Committee interest
requested
Selections made at annual meeting on January
11, 2023
3 Item 6
PRESENTATION
Provides input and support on operational matters;
Made up of five primary Board members;
Typically includes the Chair and Vice Chair of the Board Two members are interested in returning; currently three vacancies for 2023.
4 Item 6
PRESENTATION
February
All other Committee
Appointments
January 13th:
SVCE Committee Recap distributed to
Board members with request for
interest to be sent to Board Clerk
Selections made at February 8, 2023
Board of Directors Meeting.
5 Item 6
PRESENTATION
Dec
14th: SVCE BOD Meeting Info item
15th: Requests for Chair/Vice Chair letters and Executive Committee interest emailed
3rd: Chair/Vice Chair Interest Letters & Executive Committee notification of interest due
Jan 11th: Selections made at BOD meeting
13th: Written instruction for committee interests distributed 27th: Interests due
Feb 8th: Remaining committee assignments made at BOD meeting 6 Item 6
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 8
PRESENTATION
Item 8
PRESENTATION
1. Provide a quick status update
2. Highlight upcoming actions
rA, s1L1coN VALLEY ~ CLEAN ENERGY 2
Item 8
PRESENTATION
2022 SVCE Reach Codes
Indicates strong t Improvement in reach
Code requirements
Compared to last cycle.
Jurisdiction
Campbell
Cupertino
Gilroy
Los Altos
Los Altos Hills
Los Gatos
Milpitas
Monte Sereno
Morgan Hill
Mountain View
Santa Clara County Unincoporated
Saratoga
Sunnyvale
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Al l Electric
Al l Electric
t
Increased minimum EVCI requirements f
Mostly Electric
Mostly Electric Al l Electric
Introduced All Electric
Mostly Electric Al l Electric Al l Electric Al l Electric Mostly Electric Al l Electric
t
t
t
3 Item 8
PRESENTATION
Jurisdiction
Campbell
Cupertino
Gilroy
Los Altos
Los Altos Hills
Los Gatos
Milpitas
Monte Sereno
Morgan Hill
Mountain View
Santa Clara County Unincoporated
Saratoga
Sunnyvale
rA, s1L1coN VALLEY ~ CLEAN ENERGY
0 1
■ All Electric
■ Mostly Electric
■ Introduced All Electric
■ Increased minimum EVCI requirements
■ Introduced Increased minimum EVCI requirements
■ Expanded PV
2 3 4
Count of Policies
4 (1)
Item 8
PRESENTATION
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Introduced
Increased
minimum EVCI
Expanded PV
(2)
Mostly Electric
(4)
5 ✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
Item 8
PRESENTATION
Jurisdiction
Campbell - DONE
Cupertino - DONE
Gilroy - DONE
Los Altos - DONE
Los Altos Hills - DONE
Los Gatos - DONE
Milpitas
Monte Sereno - DONE
Morgan Hill - DONE
Mountain View
Saratoga - DONE
Sunnyvale - DONE
Council
Information
Session
10/4
9/15
N/A
9/20
N/A
9/21
N/A
First Reading
11/1
10/18
11/07
11/15
10/20
11/1
10/18
11/1
11/16
11/1
11/2
10/25
12/6
Second
Reading
11/15
11/1
11/21
11/29
11/17
11/15
Jan'23
11/15
12/7
12/13
11/16
11/1
TBD
Type of Code
All-Electric+ EVI
All-Electric+ EVI
EVI Only
Partial-Electric - Plan to revisit and upgrade in '23
Partial-Electric - Plan to revisit and upgrade in '23
All-Electric+ EVI
Proposed Migration to All-Electric+ EVI
Partial-Electric+ EVI
Existing Gas Ban+ New EVI Requirements
All-Electric+ EVI
Partial-Electric+ EVI
All-Electric+ EVI
All-Electric+ EVI
Completed 6
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Item 8
PRESENTATION
Thanks to you, the future will be healthier, safer, and more resilient.
All cities are eligible to receive the $10K grant to support the staff effort.
Every building official/staff lead will also receive a certificate of appreciation.
We look forward to continuing to work with you, your staff, and your community members to upgrade to clean, modern, electric buildings and transportation! rA, s1L1coN VALLEY ~ CLEAN ENERGY 7
Item 8
PRESENTATION
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Item 8
PRESENTATION
© The 2022 State Code is Electric Preferred.
New Construction Energy Code (Part 6)
Electric heat pumps are prescribed for:
Residential HVAC
Nonresidential - most include one or both of water heating and HVAC, depending on building type
Residential
Performance credit for all-electric buildings
Required higher ventilation rate for gas stoves
Pre-wiring required for residential dwellings
Energy storage readiness
Nonresidential - Solar PV and Battery Storage required
9 Item 8
PRESENTATION
A gas range is not just a gas range. It is the tailpipe of a complex system.
Source: The Gas Index, 2020
Gas Supply Chain Leaks
PAO~::
PLANT
.. J ~ ■
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GAS TRANSMISSION
PIPELINES
DISTRIBUTION RESIDENTIAL
PIPELINES USERS
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Item 8
PRESENTATION
Any natural gas appliances installed today becomes a costly stranded assets •
Illustrative example:
Assume 3500 new housing units are built per year for the next three years with gas cooking and gas water heating. A future incentive program to replace these appliances would cost:
$5.25M for cooktops ($500 incentive)
$21M for water heaters ($2000 incentive)
Plus: Building all-electric today can be less expensive than building mixed fuel. 11 Item 8
PRESENTATION
Type
Building
Electric
Preferred
Mostly-Electric
All-Electric
Gas Ban
No Reach
How it works
Allows mixed-fuel buildings with high energy
performance. Electrification-ready panel and wiring
in mixed-fuel buildings.
Water and space heating must be electric,
exemptions for other appliances. Electrification-ready panel and wiring in mixed-fuel buildings.
All appliances must be electric, with very limited
exemptions.
No gas hookup (via municipal ordinance). Limited
exceptions.
Meet state code minimum requirements.
SVCE Members
2 - Milpitas, Monte Sereno
4 - Campbell (res), Los Altos, Los Altos
Hills (res), Saratoga
5 - County of Santa Clara, Cupertino,
Los Gatos (res), Mountain View,
Sunnyvale
1 - Morgan Hill
1 - Gilroy
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Item 8
PRESENTATION
© 2022 Model Reach Codes - New Buildings
Code Approach
All-Electric Municipal
Ordinance
CALGreen - All-Electric amendment
Benefits
Avoids CEC review and
approval
Flexible (i.e., time-certain or
existing buildings policies can
be included)
Avoids triennial cycle
Avoids CEC review and
approval
Considerations
Must exceed future code updates to
stay relevant (i.e., most effective for
all-electric with limited exceptions)
Requires triennial update or more if
intervening cycle
Model code language for both approaches can be found at BayAreaReachCodes.org 13 •
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Item 8
PRESENTATION
Our 2022 model code is all-electric to help our communities to prepare for an all-electric future.
Member jurisdictions can tailor the codes with exceptions as they deem appropriate.
The model code includes both an energy code amendment and the municipal ordinance option.
Your efforts matter. We look forward to supporting you. 14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
LOI
Conduct Outreach
Effective
Vote
Potential CEC Submittals
Define Goals
Agendize
Engage Staff
Define Approach
Write Code Language
Council Info Sessions
Item 8
PRESENTATION
Orange text
indicates a
Boardmember task
Goals and Approach Defined
Reach Codes Agendized
City Manager LOI Signed
Staff Responsibilities Defined
Proposed Code language complete
Outreach conducted
Council informed
Final code language complete
Vote complete, same meeting as
state code adoption
Documentation done 15