Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
George Tyson, Chair
Town of Los Altos Hills
Tina Walia, Vice Chair
City of Saratoga
Elliot Scozzola
City of Campbell
Sheila Mohan
City of Cupertino
Zach Hilton
City of Gilroy
Sally Meadows
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Bryan Mekechuk
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Silicon Valley Clean Energy
Executive Committee Meeting
Friday, May 26, 2023
10:00 am
Silicon Valley Clean Energy Office
333 W. El Camino Real, Suite 330
Sunnyvale, CA
400 Fairview Avenue #172
Incline Village, NV
Teleconference Meeting Information:
https://svcleanenergy-org.zoom.us/j/87617416440
Telephone (Audio only):
US: +1 669 219 2599
Webinar ID: 876 1741 6440
Members of the public may observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting via email up to three hours before the meeting begins to Board Clerk Andrea Pizano at [email protected] and will be distributed to the Executive Committee. The public will also have an opportunity to provide comments during the meeting. Members of the public using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.
The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.
AGENDA
Call to Order
Roll Call
SILICON VALLEY \3/ CLEAN ENERGY
Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
George Tyson, Chair
Town of Los Altos Hills
Tina Walia, Vice Chair
City of Saratoga
Elliot Scozzola
City of Campbell
Sheila Mohan
City of Cupertino
Zach Hilton
City of Gilroy
Sally Meadows
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Bryan Mekechuk
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
Consent Calendar (Action)
1) Approve Minutes of the April 28, 2023, Executive Committee Meeting Regular Calendar
2) CEO Update (Discussion)
3) Workforce Development Strategy Update (Discussion)
4) Intro to 2024 Strategic Plan (Discussion)
5) FY 2023-24 Budget Framework (Discussion)
6) Programs Snapshot: FutureFit Homes Program (Presentation – Information Only)
Committee/Staff Remarks
Adjourn
SILICON VALLEY \3/ CLEAN ENERGY
Silicon Valley Clean Energy
Executive Committee Meeting
Friday, April 28, 2023
10:00 a.m.
Silicon Valley Clean Energy Office
333 W El Camino Real, Suite 330
Sunnyvale, CA
228 Moosehead Dr.
Aptos, CA 95003
Morgan Hill City Hall
17575 Peak Ave.
Morgan Hill, CA 95037
DRAFT MEETING MINUTES
Call to Order
Chair Walia called the meeting to order at 10:07 a.m.
Roll Call
Present:
Chair Tina Walia, City of Saratoga
Vice Chair Bryan Mekechuk, City of Monte Sereno
Director Rob Rennie, Town of Los Gatos (participated remotely) Director Yvonne Martinez Beltran, City of Morgan Hill (participated remotely)
Absent:
Director George Tyson, Town of Los Altos Hills
Public Comment on Matters Not Listed on the Agenda
No speakers.
Consent Calendar
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
MOTION: Vice Chair Mekechuk moved and Chair Walia seconded the motion to approve the Consent Calendar.
The motion carried by verbal roll call vote with Director Tyson absent.
Item 1 1 Draft Minutes: 4/28/23 Executive Committee Meeting SILICON VALLEY <3/ CLEAN ENERGY
1) Approve Minutes of the March 24, 2023, Executive Committee Meeting Regular Calendar
2) CEO Update (Discussion)
CEO Girish Balachandran introduced the following items:
• Information on the Income Graduated Fixed Charge, noting SVCE’s plans to make comments with CalCCA to not have the generation portion of SVCE’s rate be subject to the income graduated charge, and
• Information on the Ninth Circuit Court of Appeals ruling against the City of Berkeley’s gas ban ordinance.
Staff responded to committee member questions regarding the two items; CEO Balachandran noted staff would keep board members updated on any new information received.
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
3) Update on Budget Trailer Bill and AB 1373 (Discussion) Bena Chang, Senior Government Affairs Manager, presented an update on the Budget Trailer Bill and AB 1373 which included key provisions, SVCE actions, and next steps.
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
Senior Government Affairs Manager Chang responded to comments from the committee regarding what suggestions would be provided to the Board of Directors, which Senior Government Affairs Manager Chang summarized briefly.
4) Recommendation to Authorize a Request for Extension to Comply with Load Management Standards (Action)
Adam Selvin, Director of Energy Services and Community Relations and Citlalli Sandoval, Senior Regulatory Advisor, presented the item with a request of the Executive Committee to support a recommendation that the SVCE Board of Directors authorize a request for extension to comply with load management standards (LMS).
Staff noted the item was an administrative discussion and typically would not be brought to the Board for approval, however CalCCA recommended requesting Board approval to seek an extension for LMS deliverables.
Staff responded to a question regarding how charges are shown; the committee discussed including the item on the Consent Calendar for the May Board of Directors meeting.
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
Item 1 2 Draft Minutes: 4/28/23 Executive Committee Meeting
SILICON VALLEY
CLEAN ENERGY
Item 1 3 Draft Minutes: 4/28/23 Executive Committee Meeting
SILICON VALLEY
CLEAN ENERGY
MOTION: Director Martinez Beltran moved and Director Rennie seconded the motion to recommend the SVCE Board of Directors authorize Silicon Valley Clean Energy staff to request an extension to comply with the California Energy Commission’s (CEC) Load Management Standards, to be included on the Consent Calendar for Board consideration.
The motion carried with Director Tyson absent.
5) Enterprise Risk Management Framework (Discussion)
Amrit Singh, CFO and Director of Administrative Services, provided a presentation on the Enterprise Risk Management (ERM) framework and stress testing. The presentation included a FY23-24 risk assessment timeline, a review of last year’s stress tests, the distinction between ERM and the stress test, and the various components of the ERM framework.
CFO and Director of Administrative Services Singh responded to committee member questions regarding the framework, items addressed in the risk register and stress test, a question on if other CCAs are performing similar risk management efforts, and if anything was identified that SVCE was not prepared for.
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
Committee members shared appreciation for staff on their risk management work. 6) Results of Stress Test Analyses for FY2024-FY2028 Planning Horizon (Discussion) CFO and Director of Administrative Services Singh presented results of the stress test analyses in a presentation that included information on the construction of the stress test scenario, overview of the modeled price collapse,results and implied reserve targets, and a request for feedback on how reserve targets should be set.
CFO and Director of Administrative Services Singh responded to committee member questions about the increase in provider of last resort funding (financial security requirement).
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
Committee members provided comments and feedback on the discussion topic on if the reserve target threshold should be removed and if no action should be required once the target is reached.
Comments included supporting the idea of having an action to take when a minimum or maximum reserve is met, and support for having a reserve target to help board members in decision-making that affects reserves.
CEO Balachandran noted staff is in the process of working on a financial reserves one-pager explaining why SVCE needs reserves. Director Martinez Beltran suggested education on the volatility of the business would be helpful for people to understand the purpose of SVCE’s reserve amounts. 7) Programs Snapshot: Expanding Charging Incentives to New Affordable Housing (Presentation – Information Only)
Nupur Hiremath, Manager of Decarbonization Programs and Policy, introduced the item and Hannah Gustafson, Senior Programs Specialist, who provided a presentation to the committee on expanding EV charging access for low-income multifamily residents.
Staff responded to questions regarding the definition of affordable housing, if staff was aware of Eden Housing, and if there is an opportunity to pre-wire in anticipation of charging installation for EV charging readiness.
Chair Walia opened public comment.
No speakers.
Chair Walia closed public comment.
Committee/Staff Remarks
CEO Balachandran invited committee members to attend the CalCCA Conference in San Diego in May, and a ribbon cutting event for the Casa Diablo IV project in early June.
Adjournment
Chair Walia adjourned the meeting at 12:02 p.m.
ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1 4 Draft Minutes: 4/28/23 Executive Committee Meeting
SILICON VALLEY
CLEAN ENERGY
Staff Report – Item 2
Item 2: CEO Update
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/26/2023
This item will be addressed in the form of an oral report to the Executive Committee.
Item 2
SILICON VALLEY \3/ CLEAN ENERGY
Staff Report – Item 3
Item 3: Workforce Development Strategy Update
From: Girish Balachandran, CEO
Prepared by: Bena Chang, Senior Government Affairs Manager Monica Padilla, Chief Operations Officer and Director of Power Resources Justin Zagunis, Director of Decarbonization Programs and Policy Date: 5/26/2023
RECOMMENDATION
Staff is providing an update on workforce development activities at SVCE and outlining next steps for future workforce development engagement.
BACKGROUND
SVCE’s mission is to reduce the dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the community. The California Air Resources Board’s 2022 Scoping Plan estimates that California will need 120,000 MW of new renewable resources by 2030 to meet the state’s ambitious greenhouse gas reduction targets. The transition of the grid to carbon-free and the conversion of over a million machines to clean electricity in SVCE territory needs workers from across the entire ecosystem including electrical engineers, line workers, and contractors. At the same time, the passage of the Inflation Reduction Act is injecting hundreds of billions into on-shoring renewable projects and supply chains and supercharging demand through significant rebates and tax incentives for building and transportation electrification. On renewable projects, the Inflation Reduction Act increases Investment Tax Credit and Production Tax Credits from 6% to 30% for projects that use prevailing wage and have apprenticeship programs. If the project is in a low-income community, there’s an additional 10% bonus for the Investment and Production Tax Credits. These tax credits make projects with prevailing wage and apprenticeship programs and those located in low-income communities financially much more attractive. The whole industry transition that the Inflation Reduction Act incentivizes needs a massive, skilled workforce. Investing and supporting this workforce is critical to meeting SVCE’s carbon-free mission. According to the Governor’s Office, recent laws and investments in climate change will create 4 million new jobs in California over the next two decades1. At the same time, there needs to be a transition for existing gas jobs. For instance, policies that SVCE could consider include supporting climate-friendly efforts like graywater and reclaimed water policies that allow pipefitters to use their skills as gas infrastructure jobs decrease.
SVCE is committed to listening to and reinvesting in the local community. SVCE’s programs primarily focus on getting electric technologies deployed within its service area. These programs inherently spur increased demand for clean technology installation by the workforce located in or doing work in SVCE’s local area. Some of SVCE’s programs are also subject to state requirements on prevailing wage, extending the corresponding benefits to contractors doing those installations.
1 Governor Newsom Signs Sweeping Climate Measures Press release:
https://www.gov.ca.gov/2022/09/16/governor-newsom-signs-sweeping-climate-measures-ushering-in-new-era-of-world-leading-climate-action/ Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 5/26/2023
As an agency that is formed by local government, we have a unique opportunity to understand and serve our community. SVCE met with stakeholders including Working Partnerships, Santa Clara and San Benito Building Trades Council, IBEW Local 332, the Bay Area Community College Consortium, the NOVA Workforce Development Board, a large HVAC installer, and the Association for General Contractors to share our current work and discuss potential partnership opportunities. Some of the key takeaways from the meetings include that there are many partners that are actively and successfully tackling different aspects of clean energy and decarbonization workforce development. The landscape and players are complex. On building and transportation decarbonization, one of the common challenges stakeholders brought up is that having certainty about future jobs is critical to how many apprenticeship spots there are and what kind of training programs to offer at what time. Ensuring programs and policies signals can create clear, sustained demand is critical.
Workforce Development Strategy
SVCE’s core work and expertise is not focused on workforce development. A strong workforce is vital to meeting SVCE’s clean energy and decarbonization mission. SVCE currently engages in workforce development through our Power Purchase Agreements, programs work, and through influencing and partnering with others.
SVCE has the most direct control over increasing demand for clean energy jobs from construction jobs for new solar + battery projects to electrification installations through our rebates, EV charging incentives, and multifamily EV and building electrification programs. As an example, in the power supply space, SVCE has signed 16 PPAs, which have generated more than 3,000 construction jobs and more than 150 on-going jobs.
SVCE is also part of California Community Power (CC Power), a Joint Powers Authority of nine CCAs that jointly procure resources. CC Power will be having a “Getting it Built Right” workshop this fall with panels to share best practices and discuss workforce and permitting/project challenges with labor, environment and environmental justice groups, and developers. After the workshop, CC Power will publish any recommended actions, policies, or partnerships for the CC Power Board to consider.
SVCE currently provides a suite of activities to support workforce development and high-quality jobs, including:
Power Procurement
• Project Labor Agreements: SVCE includes a Project Labor Agreement Preference in our power purchase agreement Requests for Proposals. Project Labor Agreements often include provisions including the use of prevailing wage, apprenticeship program support, and anti-strike provisions. • Prevailing Wage: SVCE requires prevailing wage on all projects, according to state law.
Programs
• Funding and Support for Prevailing Wage: SVCE typically informs firms participating in qualified projects and programs when they are likely subject to state prevailing wage law. As an example, to offset the increased costs associated with paying higher wages, SVCE increased the planned program incentives by 25% for our CHIIP program and are actively working with local contractors and charging station implementers to explore elements to add to the program that will help vendors who don’t have experience with prevailing wage be able to easily participate. When SVCE contracts directly with a firm for qualified work, for example in the upcoming multifamily direct installation program, the firm is also obligated through SVCE’s contract to meet the state’s prevailing wage requirements.
• FutureFit Fundamentals Contractor Training: SVCE worked with Evergreen Community College – Workforce Institute to launch this online training program to introduce residential electrification and electric appliances to contractors. Program participants receive $500 for completing the 5-hour program and may be eligible for an installation incentive of up to $5,000 to install qualifying electric appliances in their home or place of business. To date, nearly 100 people Item 3
Agenda Item: 3 Agenda Date: 5/26/2023
have gone through the training, and we have received positive feedback. SVCE is also working on additional incentives for graduates of the FutureFit Fundamentals program: if graduates install qualifying equipment or upgrade electrical panels in an eligible customer's home via the FutureFit Home rebate program, the graduate will receive an additional direct rebate. We anticipate launching this additional incentive in summer of 2023.
Advocacy
• State Funding: SVCE has advocated for additional funding in the state budget to provide training and education for workers to attain new, clean jobs to build offshore wind, install EV chargers, and upgrade homes and schools.
• Legislation: SVCE supported AB 2204 (Boerner Horvath) to create a Deputy Secretary for Climate in the state Labor and Workforce Development Agency. The Deputy Secretary will help coordinate the state’s efforts on climate-related workforce development. The Governor signed AB 2204 into law in 2022.
Additional Activities
• Diverse Suppliers: SVCE has improved diverse supplier access to solicitations by incorporating specific Supplier Diversity and Prop 209 language in its RFO materials, updating its solicitations page to link to the SVCE Supplier Diversity page, and posting its solicitations directly on the Supplier Diversity clearinghouse, CPUC’s central supplier database. On its SVCE Supplier Diversity webpage, SVCE reiterates its commitment to diversity and inclusion, encourages diverse suppliers to consider certification, and provides various resources on how to attain certification. • Partnerships: SVCE is supporting San Jose State University’s joint application along with San Francisco State University and San Diego State University to the Department of Energy to establish an Industrial Assessment Center (IAC) Regional Center of Excellence which would cover the Western United States with a special focus on disadvantaged communities. If the Department of Energy accepts the application, SVCE would help facilitate engagement with manufacturers and connect the Center of Excellence with industry stakeholders to work on regional workforce development needs.
Chart Summarizing SVCE’s Workforce Development Activities Area Name Description Required by State SVCE already doing Programs & Power Prevailing wage SVCE requires
prevailing wage for
all Power Purchase
Agreements and
certain programs,
subject to state
law.
Yes Yes
Programs Proactive prevailing
wage support
When prevailing
wage is required,
SVCE considers
increases in
incentives/payment
to help cover
increased wage
costs. Exploring
how to best
support
administrative and
compliance costs.
SVCE affirmatively
No Yes
Item 3
Agenda Item: 3 Agenda Date: 5/26/2023
Area Name Description Required by State SVCE already doing mentions prevailing
wage in
documentation for
contractors.
Programs & Power Diverse supplier
report
SVCE has
incorporated
specific Supplier
Diversity and Prop
209 language in its
RFO materials,
updated its
solicitations page
to link to the SVCE
Supplier Diversity
page, and posted
its solicitations
directly on the
CPUC’s Supplier
Diversity
clearinghouse.
SVCE provides
resources to
contractors on how
to obtain diverse
supplier
certification.
Reporting is required
by the state.
Yes, within bounds of
Proposition 209.
Programs FutureFit
Fundamentals
Contractor
electrification
awareness training
Contractors receive
$500 for 5 hours of
online training
paired with an
incentive of up to
$5,000 for
installing approved
technologies at
their
home/business in
SVCE’s service
area.
No Yes – also working on
additional incentives
for graduates who
install qualifying
appliances at eligible
customer homes.
Power Project Labor
Agreements
SVCE includes a
Project Labor
Agreement
Preference in our
power purchase
agreement
Requests for
Proposals.
No Yes
Advocacy Legislative
Advocacy
SVCE has
advocated for more
funding, state
agency
coordination, and
No Yes
Item 3
Agenda Item: 3 Agenda Date: 5/26/2023
Area Name Description Required by State SVCE already doing focus on clean
energy workforce.
Programs Trade Ally Network
Build a contractor
communication
channel
Work with PG&E’s
Trade Ally Network
and consider our
own Trade Ally
Network to build
out SVCE’s
connections with
local contractors.
Help them track
SVCE and state
funding
opportunities while
also leveraging
them as a
marketing channel
for programs to
customers.
No Under consideration
ANALYSIS & DISCUSSION
While workforce development is not a core SVCE function, we cannot meet our clean energy and decarbonization mission without a strong workforce for a variety of clean energy jobs to create the renewable, grid, and behind the meter projects (see Attachment 1). The landscape of organizations that are providing resources in this space are also complex.
Staff is exploring opportunities to influence and augment efforts from workforce development experts including universities and community colleges, unions, workforce development boards, Community Based Organizations, and trade associations. Two near-term ideas that staff is exploring include adding a local preference for our Public Purchase Agreements and programs where it makes sense and establishing a Trade Ally Network to both provide support to contractors and inform them about SVCE’s rebates and programs.
SVCE would also publicize members of the Trade Ally Network to customers. Staff plans to further refine opportunities through additional conversations with stakeholders and to develop a roadmap for future actions.
STRATEGIC PLAN
SVCE’s Board-adopted Strategic Plan identifies workforce development as a priority. As SVCE does more research and refines additional workforce development activities, we will bring to the Board additional suggestions for how to enhance our workforce development strategy and activities.
ALTERNATIVE
The Board could direct SVCE to stop certain activities or pursue different strategies for strengthening clean energy and decarbonization workforce development.
ATTACHMENTS
1. Clean Energy Workforce Needs Chart
Item 3
Item 3
Attachment 1 £o
co>
tnoo
HI
Generation y ~
Offshore Wind
Solar
Wind
Storage
Geothermal
New Technologies
Planners/Financers
Engineers
Construction
Workers
Port staff, inspection
officials
Operational Staff
Manufacturers
co
CD
CD z
Engineers/planners
Construction workers
Lineworkers
Manufacturers
Engineers/Planners
Lineworkers
Manufacturers
Solar installers
EV Charger installers
Electricians
Plumbers
City Permitting and
Inspecitions Staff
Manufacturers
Staff Report – Item 4
Item 4: Intro to 2024 Strategic Plan
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/26/2023
As in previous years, staff is in the process of an annual review to update SVCE’s Strategic Plan and Strategic Focus areas. The draft timeline for the 2024 Strategic Plan and Strategic Focus areas follows:
• May 26, 2023, Executive Committee: Intro to 2024 Strategic Plan (Discussion) • June 14, 2023, Board of Directors Meeting: SVCE Strategic Plan FY 24 Update (Discussion) • August 25, 2023, Executive Committee: Strategic Focus Areas Update (Discussion) • September 13, 2023, Board of Directors Meeting: Update on Strategic Plan and Adopt FY24 SVCE Strategic Focus Areas (Action)
• October 11, 2023, Board of Directors Meeting: Adopt FY24 SVCE Strategic Work Plan (Action – Consent)
ATTACHMENT
The presentation for this item will be posted to the SVCE website.
Item 4
SILICON VALLEY \3/ CLEAN ENERGY
Staff Report – Item 5
Item 5: FY 2023-24 Budget Framework
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/26/2023
This item will be addressed in the form of a presentation to the Executive Committee regarding the preliminary framework for the FY 2023-24 operating budget.
ATTACHMENT
The presentation for this item is posted to SVCE’s website.
Item 5
SILICON VALLEY \3/ CLEAN ENERGY
Staff Report – Item 6
Item 6: Program Snapshot: FutureFit Homes Program
From: Girish Balachandran, CEO
Prepared by: Jessamyn Allen, Senior Programs Specialist Date: 5/26/2023
This item will be addressed in the form of a presentation to the Executive Committee providing a snapshot overview of the FutureFit Homes Program.
ATTACHMENT
The presentation for this item is posted to SVCE’s website.
Item 6
SILICON VALLEY \3/ CLEAN ENERGY