Presentations — Silicon Valley Clean Energy Board of Directors, October 11, 2023

1 • Subtitle
New SV Clean Energy
PowerPoint Template
Third Prepay
Transaction
Amrit Singh
Board of Directors
October 11, 2023
Item 3

PRESENTATION
2 Main Areas of Discussion
Purpose
Action:

1. Authorize the CEO to Execute
Agreements with Firms Providing
Services to Enable SVCE to
Execute its Third Prepay

2. Approve the Parameters of the
Transaction

1. Review of Prepay Goal and Structure

2. Leverage the First and Second Prepay
Structure

3. Fees for Consultants and Counsel

4. Board-authorized parameters for
execution of the deal

5. Fiscal Impact

6. Next Steps

7. Appendix • Review of First 2 Prepays • Overview of Prepay Structure and Background Information
Item 3

PRESENTATION
3 Review of Prepay Goal and Structure
Substantial savings with minimal risks
Goal
• Reduce the cost of power
purchases by leveraging SVCE’s
ability to fund low-cost tax-exempt debt
• Gain competitive advantage
relative to Investor Owned
Utilities (IOUs)
How
• Benefit from the spread between taxable and tax-exempt interest rates
• Use of financially engineered prepay structure*
• Bonds not guaranteed by SVCE or California Community Financing Authority (CCCFA).
• Bonds secured by the contractual rights and transaction cashflows • Seasoned team of professionals helps guide, negotiate, and structure the transactions.
*Refer to the appendix for a more detailed overview of the prepay structure Minimal Risks
• Fees (except rating agency) are contingent on the execution of the deal and paid from the bond proceeds • Bonds issued are non-recourse to SVCE
Item 3

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
4 Leverage the Existing Prepay Structure
Slides in the appendix provide:
• Timeline of the first Prepay
transaction
• Details of the SVCE’s Two
Prepays transaction and cost
breakdown
• Overview of the Prepay
Structure
Recommend the Board Authorize Agreements to Initiate Third Prepay Transaction • Replicate the existing Prepay transaction structure
• Benefit from over two years of effort to establish the structure
• Successfully executed two prepays using this structure • Combined savings of two completed transactions are about $6.5 million annually
• Other CCAs have taken or plan to take advantage of market opportunities to execute Prepays
• Since the execution of our first Prepay in partnership with EBCE:
• MCE, CPA, and Pioneer have executed Prepays
• EBCE has executed 3 Prepays, and CPA has executed 2
• 3CE is pursuing its first Prepay transaction
• Par Value of CCCFA transactions is just over $7 Billion Item 3

PRESENTATION
5 Transaction Execution Parameters
• Expect principal bond amounts to be in
the range of $900 Million to $1.5 Billion
• Actual realized discount will depend on
the spread between taxable and tax-exempt rates (net of transaction costs) • Savings could be $5 million or more a
year during the initial term of the bonds
• 30-year bonds will reset after the initial
period, expected to be 5-10 years, and
discount on future reset periods will
depend on the prevailing market
conditions.
• The repricing agreement will set a
minimum discount threshold for future
bond reset periods, expected to be at
energy savings of about 4%.

Prepay Transactional Agreements Contingent on Board-Authorized Parameters • Execution Contingent on:
• Aggregate principal amount of bonds will not
exceed $1.5 billion
• Bonds issued by the California Community
Financing Authority (CCCFA) are not guaranteed
obligations of SVCE
• Overall energy savings to SVCE shall be at least
8 percent during the initial term of the bonds
• The commodity swap counterparty fee is not to
exceed $0.50 MWh.

Item 3

PRESENTATION
6 Approval of Morgan Stanley as the Prepay Supplier
Morgan Stanley was the Prepay Supplier for SVCE’s First 2 Prepay Transactions Morgan Stanley Fee Structure (same as that of First Two Prepays):
• Bond underwriting fee of $5/bond plus underwriter expenses not to exceed $0.50/bond. • E.g., For issuance of $1 billion in bonds, with a face value of $1000 a bond, the underwriting fee would be $5 million. • Energy Service Revenue of $1.10 per MWh
• If floating rate debt is issued, a 2 to 6 basis point charge on an interest rate swap • Minimal risk to SVCE.
• All costs (underwriting, consultants, and attorneys) are paid from the bond proceeds. • The Board-designated savings target will be net of all costs.

Item 3

PRESENTATION
7 3rd Party Agreements to Initiate Prepay
At ~35% Discounted Fee for Third Prepay
Except for Moody’s all payments are contingent on the execution of the transaction.

The agreement with Moody’s will be executed later when there’s more certainty on the likelihood of a transaction.
* For the first Prepay, SVCE worked with Orrick, Herrington & Sutcliffe as the bond and tax counsel at a higher cost of $425,000. • Expected Cost of 3rd Party
Agreements is $852,200
• Authorize the CEO to execute up
to 1% of the bond proceeds
Account for other ancillary
services, including green bond
verification, bond trustee and
counsel fees, an investment
advisor fee, other miscellaneous
costs such as printing, and Morgan
Stanley underwriting-related fees
described in the earlier slide.

Item 3

PRESENTATION
Firms Role First Prepay Second Prepay
Proposed for
Third Prepay
PFM Financial
Advisors LLC /
PFM Swap
Advisors
Municipal Advisor: Advises prepay
buyer innegotiations,requiredby
the Municipal Securities Rulemaking
Board(MSRB), and on commodity
and interest rate swaps.
$250,000 $175,000 $155,000
Chapman &
Cutler
Disclosureand Issuer’s Counsel:

Provides legal counsel and prepares
official statement and prospectus
$310,000 $200,000 $175,000
Ballard Spahr* Bond and Tax Counsel: Represent
bondholders and providetax opinion
on the transaction
N/A* $300,000 $250,000
Moody’s Investor
Service Inc
Rating Agency: Provides the credit
ratingfor the bonds
$315,000 $232,500 $272,500
Total $1,300,000 $907,500 $852,500
S'
8 Prepay Load Coverage
Can easily cover 50-60% of load; after that we will need to further optimize the portfolio.

On average:
• Prepay 1 covers about 11% of the
Load
• Prepay 2 covers about 12% of the
Load
• Prepay 3, if executed at $900 Million
Par, would cover 12% of Load
• Prepay 3, if executed at $1.5 Billion
Par, would cover 20% of the Load
• Total average load coverage is expected to
be around 35% to 45% of Load

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
202220232024202520262027202820292030203120322033203420352036203720382039204020412042204320442045204620472048204920502051205220532054 Prepay Load Coverage
2021B + 2023B + 2023x ($1.5bn Par)
2021B Load Coverage 2023B Load Coverage 2023x - $1.5bn Par Coverage Item 3

PRESENTATION
9 Fiscal Impact
• Actual savings depend on market conditions - the spread between taxable and tax-exempt debt rate
• Illustrative:
• If we get savings of 8 to 10% for a 50 MW around-the-clock transaction at current commodity prices, this could amount to $5 million savings per year
• Minimal Risk to SVCE
• Fees (except rating agency) are contingent on the execution of the deal and paid from the bond proceeds
• Bonds issued are non-recourse to SVCE
Cumulative Savings from 3
Prepays Could be $12
million a Year or More
(based on initial bond reset
periods)
Can Fund ~3% Customer
Discount relative to PG&E
Rates
1st - $1.9
MM
2nd - $4.7
MM
3rd - ~$5
MM or More
Item 3

PRESENTATION
10 Next Steps
• Seek California Community Choice Financing Authority
(CCCFA) Board Approval at its October 26th, 2023,
Meeting
• Target bond issuance for November 2023. Timing will
depend on market conditions.

Item 3

PRESENTATION
11 Board Approval
• Adopt resolution 2023-17 authorizing the CEO to approve or execute the following contracts for services these firms will provide to enable SVCE to execute its third Prepay transaction. The combined fees for services provided by the firms identified below shall not exceed 1% of the bond proceeds amount, including other ancillary services such as green bond verification, bond trustee and counsel fees, an investment advisor fee, and other miscellaneous costs such as printing.

1. PFM Financial Advisors LLC & PFM Swap Advisors - $155,000

2. Chapman & Cutler (Disclosure/Issuer’s Counsel) - $175,000

3. Ballard Spahr (Bond and Tax Counsel) - $250,000

4. Moody’s Investor Service Inc (Credit Rating) - $272,500 • Approve engagement with Morgan Stanley as the Prepay Supplier with the following fee structure:
• Bond underwriting fee of $5/bond
• Underwriter expenses not to exceed $0.50/bond.
• Adopt resolution 2023-18 authorizing the CEO to execute Power Supply Contract with California Community Choice Financing Authority (CCCFA) and execute or approve the related supporting agreements to enable SVCE to enter an approximately 30-year energy prepayment transaction subject to the following parameters:

1. The Bonds, issued by CCCFA, will not be guaranteed obligations of SVCE but will be limited obligations of CCCFA payable solely from the revenues and other amounts pledged under the Indenture as the Trust Estate, including amounts owed by SVCE under the Power Supply Contract.

2. The aggregate principal amount of the Bonds shall not exceed $1,500,000,000.

3. The energy savings to SVCE under the Power Supply Contract for the initial Reset Period, including the Annual Refund (as defined in the Power Supply Contract), shall be at least 8 percent.

4. The energy service revenue fee in the transaction shall not exceed $1.10 per MWh.

5. The commodity swap counterparty fee in the transaction shall not exceed $0.50 MWh.

6. If floating rate debt is issued, Morgan Stanley shall charge no more than six basis points on the interest rate swap spread to mid-market.

Item 3

PRESENTATION
12 Thank you! / Questions?
Item 3

PRESENTATION
13 Timeline of SVCE’s First Prepay Transaction
Oct-2020 SVCE Board Authorizes CEO to enter legal service agreements to finalize Prepayment Transaction (Orrick, Herrington & Sutcliffe and Chapman & Cutler LLP)
Nov-2020SVCE provides Prepay Status Report to Finance and Admin Committee Mar-2021SVCE provides Prepay Status Report to Finance and Admin Committee SVCE provides Prepay Status Report to Executive Committee April-2021SVCE Board Approves Participation in the California Community Choice Financing Authority Joint Powers Authority
Aug-2021The Finance and Admin Committee reviews the Prepay Transaction and votes to recommend Board approval. Board authorizes execution of the first Prepay Transaction subject to parameters including that bonds are not obligations of SVCE, size of the bonds, and minimum savings target.

Sept-2021Sept 9, 2021 bonds priced
Jan-2022 Power delivery under Prepay began
June-2019SVCE presents Prepay Structure Overview Presentation (developed by Goldman Sachs) to Finance and Admin Committee
Aug-2019 SVCE presents a brief verbal update on prepay process to Finance and Admin Committee
Sept-2019SVCE and PFM Financial Advisors provide update on the upcoming RFP process to Finance and Admin Committee
Nov-2019 SVCE provides Prepay RFP Overview to Executive Committee - PFM issues RFP to select Prepay Bank Supplier on behalf of EBCE and SVCE on Nov 12th
- RFP Proposals were due December 5th
Jan-2020 SVCE presents Prepay Structure Overview to Finance and Admin Committee Spring-2020SVCE and EBCE conduct RFP evaluations to select Prepay Bank Supplier July-2020SVCE and EBCE select Morgan Stanley as Prepay Bank Supplier Aug-2020 SVCE provides Prepay Status Report to Finance and Admin Committee Sept-2020SVCE provides Board with Prepay Overview on preparing for a Prepay Transaction
SVCE provides Prepay Status Report to Finance and Admin Committee Item 3

PRESENTATION
14 Details of the First Prepay Transaction
Aggregate Principal Bond Amount $1,234,720,000 (SVCE and EBCE combined) Total Bond Proceeds $1,475,895,642.5 (SVCE and EBCE combined) Municipal Bond Rating A1
Green Certification Designated Green Bonds by Kestrel Verifiers Initial Bond Pricing Period
• 10 years.
• After the initial period, bonds will be repriced per the negotiated repricing agreement, and a new discount will be established based on the then prevailing market conditions.

Final Bond Maturity Date • February 1, 2052.

Discount Achieved
• $4.38 per MWh, about 10% of the energy cost of SVCE’s 3-year transaction initially assigned into the Prepay.
• ~$1.9 million per year for SVCE during the initial bond pricing period of ten years.

Energy Volume Supported by Bond Proceeds
109 MW, of which SVCE’s share is 50 MW (about 11% of load) and EBCE’s share is 59 MW for approximately the first ten years of the transaction; after that, the same proportional volume split will be maintained between SVCE and EBCE.

Item 3

PRESENTATION
15 First Prepay Transaction Cost Breakdown ($000)
Bond and Tax Counsel: Orrick, Herrington & Sutcliffe 425 Credit Rating: Moody’s 315
Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP 310 Municipal Advisor: Public Financial Management 250
Investment Advisor: Public Financial Management Asset Mgmt 42 Trustee: Bank of New York (BNY) 32
Trustee Counsel: BNY Counsel 35
Printing Cost 3
Contingency/Other 10
Total COI 1,422
Morgan Stanley Underwriting 6,341
Total 7,763
Item 3

PRESENTATION
16 Details of the Second Prepay Transaction
Aggregate Principal Bond Amount $841,500,000
Total Bond Proceeds $891,418,648.1
Municipal Bond Rating A1
Green Certification Designated Green Bonds by Kestrel Verifiers Initial Bond Pricing Period
• 6.5 years.
• After the initial period, bonds will be repriced per the negotiated repricing agreement, and a new discount will be established based on the then prevailing market conditions.

Final Bond Maturity Date • July 1, 2053.

Discount Achieved
• $9.77 per MWh, about 10% of the price established for energy deliveries under the power supply contract.
• ~$4.7 million per year during the initial bond pricing period of

6.5 years.

Energy Volume Supported by Bond Proceeds
~55 MW (about 12% of load; a slight escalation in the latter half of the transaction)
Item 3

PRESENTATION
17 Cost of Issuance (COI) $ in 000’s
Bond and Tax Counsel: Ballard Spahr 300
Credit Rating: Moody’s 232.5
Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP 200 Municipal Advisor: PFM Financial Advisors LLC 175
Investment Advisor: PFMAM (US Bank) 35
Trustee: BNY Mellon Corporate Trust 30.9
Trustee Counsel: Ballard Spahr 30
Printing Cost: ImageMaster 3.3
Green Bond Second Party Opinion: Kestrel 22
Contingency/Other 16.8
Total COI 1,045.5
Morgan Stanley Underwriting 4,359.2
Total 5,404.7
Second Prepay Transaction Cost Breakdown ($000)
Item 3

PRESENTATION
18 Overview of Prepay Structure
Term: 30-year with bonds repricing every 5-10 years
depending on the optimal spread between taxable
and tax-exempt interest rates.

Process:

1. SVCE partially assigns, using Limited Assignment
Agreement, energy contract to Morgan Stanley
(MS), Prepay Supplier. MS agrees to pay contract
price to energy supplier.

2. CCAs created CCCFA, a separate legal entity that
can issue tax-exempt debt.

3. CCCFA issues non-recourse tax-exempt bonds.
• Bonds not guaranteed by SVCE or CCCFA.
• Bonds secured by the contractual rights and transaction cashflows; Bonds carry MS credit ratings.

4. CCCFA pays bond proceeds, net of transaction
fees, to MS as prepayment for energy and
related products that MS will provide over the
30-year term. Executes Prepaid Agreement.

5. SVCE and CCCFA execute Power Supply
Agreement, where SVCE pays CCCFA contract
price less discount for energy delivered by
CCCFA.

6. CCCFA uses payments from SVCE to pay interest
and principal payments to bondholders.

Item 3

PRESENTATION
Prepayment $$$
MWhs+ RECs
Morgan Stanley
(Bank
Supplier)
o
CCCFA
MWhs + RECs
Contract Price
Less Discount
Contract
Price
MWhs+ RECs
Energy
Supply/PPA
Counterparty
Debt
Service
Non-Recourse
Tax-Exempt
Bonds
SVCE
Energy Supply/PPA
to be "Partially
Assigned"
19 Review of Prepay Background Info.

Goal: Reduce the cost of power purchases
• Savings achieved by leveraging SVCE/CCCFA’s ability to fund low-cost tax-exempt interest rates • Used since the 1990s for natural gas transactions
• Codified in the US Tax law
• Part of the National Energy Policy Act of 2005
• Seasoned professionals will help guide, negotiate, and structure the transactions. Fees for professionals are contingent on the completion of the deal and paid from the deal proceeds.

Item 3

PRESENTATION
20 History and Tax Law Behind Municipal Prepaid
Energy Transactions
• Municipal electric and gas utilities (and tax-exempt entities such as CCAs) in the US can prepay for a supply of electricity or natural gas from a taxable (corporate) entity and fund that prepayment with tax-exempt municipal bonds:
o Must sell that commodity to their retail end-users that reside within their traditional service area.
• Prepayment transactions are legal and Codified in US Tax Law: Since first prepayments of natural gas were done in the early 1990’s, the IRS issued rules allowing tax-exempt prepayments and Congress enacted legislation specifically allowing the transactions (National Energy Policy Act of 2005; Section 1327).

Item 3

PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 4

PRESENTATION
Programs Study Session

SILICON VALLEY

CLEAN ENERGY
Board of Directors Meeting
October 2023
•
•
•
Item 4

PRESENTATION
CD Today’s goals
Shared understanding of key SVCE data
Visibility into some program specifics -residential buildings today Rich discussion
2 Item 4

PRESENTATION
CD Agenda

1. SVCE Emission Statistics

2. Deep Dive into Residential Buildings Graphs

3. Program Highlights

4. Bringing it Back to Policy and Scale
3 Item 4

PRESENTATION
SVCE territory emissions decreased from 4 million MT
CO2e in 2015 to 3.1 million MT CO2e in 2022
Source: SVCE 2022 GHG Inventory
Residential Buildings Natural Gas Residential
17% Buildings Electricity
Off-Road, Not Non-Residential
Non-Residential
Residential Vehicle
Gasoline
36%
Commercial
Vehicles Gasoline & Diesel
2022
Buildings Natural Gas
20%
Buildings Electricity
8%
Specified (CARB)
11%
7%
4 Item 4

PRESENTATION
Emissions come from over 1million fossil fuel machines
we need to replace
Residential Buildings Natural Gas
Residential Vehicle
Gasoline
36%
400k vehicles
Commercial
17%
625k Space/Water Heaters, Stoves, Dryers, etc.

1.1 Million Machines
78% of Emissions
Non-Residential
Buildings Natural Gas
20%
15k water heaters, furnaces,
boilers, etc.

Source: 2019 Residential Appliance Saturation Survey
Vehicles Gasoline & Diesel
7% 60k vehicles
5 Item 4

PRESENTATION
Today's discussion is on residential building natural gas consumption
Residential Buildings Natural Gas
17%
SVCE Programs and
Initiatives Influencing
Residential Buildings
$50M Budget
9 Active
10 Planning
7 Closed
Sector Emissions
500,000 MT CO2e
# of Fossil Fuel Machines
165k Space Heaters
230k Water Heaters
125k Stoves
105k Dryers, Fireplaces,
and Spa/pool pumps
Source: SVCE 2022 GHG Inventory
6 Item 4

PRESENTATION
Transforming the market, at scale
Need to build the support ecosystem to help policy succeed Incentives and lower
up-front costs
Awareness and
acceptance
Quality and available
equipment
Efficient permitting
processes
Available workforce

INDUCTION HEAT PUMP
0 10,000
20,000
30,000
40,000
50,000
60,000
1939 or earlier 1940 to 1949 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000-2009 2010-2019 Single Family
(Owned)
Single Family
(Rented)
Multifamily
(Rented)
Condo
(Owned)
Mobile Home
Housing stock is not uniform
Item 4

PRESENTATION
Number
of
Households
Housing Units by Vintage and Type
Source: 2019 American Community Survey (ACS)
ii
Mobile Home
Condo (Owned)
Multifamily
(Rented)
Single Family
(Rented)
Single Family
(Owned)
ecade of Construction
200A Service
Instantaneous Gas
Water Heaters
More
panel
likely
replacement
to need
Has A/C — 8
0 10,000
20,000
30,000
40,000
50,000
60,000
1939 or earlier 1940 to 1949 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000-2009 2010-2019 Single Family
(Owned)
Single Family
(Rented)
Multifamily
(Rented)
Condo
(Owned)
Mobile Home
61% of housing units are pre-1980
Item 4

PRESENTATION
Number
of
Households
Source: 2019 American Community Survey (ACS)
Housing Units by Vintage and Type
Mobile Home
Condo (Owned)
Multifamily
(Rented)
Single Family
(Rented)
Single Family
(Owned)
ecade of Construction
200A Service
Has A/C 9
More likely to need
panel replacement
Instantaneous Gas
Water Heaters
0 10,000
20,000
30,000
40,000
50,000
60,000
1939 or earlier 1940 to 1949 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000-2009 2010-2019 Single Family
(Owned)
Single Family
(Rented)
Multifamily
(Rented)
Condo
(Owned)
Mobile Home
Need a variety of program strategies to reach
everyone
Item 4

PRESENTATION
Number
of
Households
Source: 2019 American Community Survey (ACS)
Housing Units by Vintage and Type
Owned: 56%
Rented: 44%
Single-Family Home: 71%
Multifamily Housing: 29%
Mobile Home
Condo (Owned)
Multifamily
(Rented)
Single Family
(Rented)
Single Family
(Owned)
Decade of Construction
More likely to need
panel replacement
200A Service
Instantaneous Gas
Water Heaters
Has A/C 10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Single Family Owned Single Family Rented Multifamily Rented Multifamily Condo Mobile Homes Space Heating
Water Heating
Cooking
Item 4

PRESENTATION
Percent
Non-Electric
Households
Water heating is most consistent electrification
need - other end uses vary
Percent of Households with Electrification Needs by Home and Equipment Type Home Type
Source: SVCE Market Characterization Study (2022)
11 •
•
Item 4

PRESENTATION
Some residents will need more support
Socioeconomic Vulnerability Index (SEVI)
Census tract metric, regionalized into quartiles
Calculated from scores for poverty, linguistic isolation, education attainment, housing burden, unemployment
Least
Vulnerability
Most
% of accounts in SVCE territory with SEV1 1-4 scores
| Metric SEVI1 SEVI 2 SEVI 3 SEVI 4 |
% of Total Residential Accounts 23% 27% 28% 19%
% of Single-Family Accounts 28% 30% 23% 16%
% of MUD Units 12% 21% 38% 26%
% of CARE/FERA Accounts 10% 17% 30% 39%
% of Affordable Housing Units 1% 10% 35% 50%
% Owner Occupied Housing 76% 66% 55% 50%
SEVI 3 and 4 are more
likely to be...
multifamily tenants
12 •
•
Item 4

PRESENTATION
Some residents will need more support
Socioeconomic Vulnerability Index (SEVI)
Census tract metric, regionalized into quartiles
Calculated from scores for poverty, linguistic isolation, education attainment, housing burden, unemployment
Vulnerability
Least Most
| Metric SEVI1 SEVI 2 SEVI 3 SEVI 4 |
% of Total Residential Accounts 23% 27% 28% 19%
% of Single-Family Accounts 28% 30% 23% 16%
% of MUD Units 12% 21% 38% 26%
% of CARE/FERA Accounts 10% 17% 30% 39%
% of Affordable Housing Units 1% 10% 35% 50%
% Owner Occupied Housing 76% 66% 55% 50%
% of accounts in SVCE territory with SEV1 1-4 scores
SEVI 3 and 4 are more
likely to be...
multifamily tenants
lower-income
13 •
•
Item 4

PRESENTATION
Some residents will need more support
Socioeconomic Vulnerability Index (SEVI)
Census tract metric, regionalized into quartiles
Calculated from scores for poverty, linguistic isolation, education attainment, housing burden, unemployment
Vulnerability
Least Most
| Metric SEVI1 SEVI 2 SEVI 3 SEVI 4 |
% of Total Residential Accounts 23% 27% 28% 19%
% of Single-Family Accounts 28% 30% 23% 16%
% of MUD Units 12% 21% 38% 26%
% of CARE/FERA Accounts 10% 17% 30% 39%
% of Affordable Housing Units 1% 10% 35% 50%
|% Owner Occupied Housing 76% 66% 55% 50%
% of accounts in SVCE territory with SEV1 1-4 scores
SEVI 3 and 4 are more
likely to be...
multifamily tenants
lower-income
renters
14 0
50 100
150
200
250
300
350
400
HPWH ($1-2K) HP HVAC ($2.5K) Panel Upgrade ($1K) Pre-Wiring (Up to $2K)
Meter Removal ($500)
Reservations
Completions
Item 4

PRESENTATION
Program Impact: FutureFit Homes (FFH)
Active Homepage Link
Affordability
Program
Target: 750 electrification projects
Note: 460 HPWH-only
projects previously
completed from 2019-22
Status
Today:
218 projects complete
389 active reservations
On track to complete ^900 projects
Reservations and Claims, by Type
Extra $1K per rebate available for income-qualified customers 15 •
•
•
•
•
•
•
•
Item 4

PRESENTATION
FFH is trying new things to expand access to
effective electrification
Innovative Design Elements
Pre-wiring incentive to support whole-home electrification/readiness Bonus for removing gas meter to make electrification stickier and begin pruning gas system Help avoid unnecessary panel upgrades by paying for circuit pausers and splitters Support 120V HPWHs to make installs simpler
Continuing to identify new approaches to try to implement (e.g., emergency water heater loaner) Improving Access
Let customers also use other available incentives
Retroactive rebates for emergency replacements
Spanish-language version of ads and application for increased accessibility
Item 4

PRESENTATION
Samples of FFH marketing
Rebate Amount
Heat Pump Water Heaters (gas replacement) $2,000
$1,000
Heat Pump Heating & Cooling System $2,500
Pre-wiring for future electric appliances
Main panel upgrade $1,000
All-Electric bonus for removal of the gas meter
Rebates available now!
Learn more at SVCIeanEnergy.org/Home-Rebates
$500 per circuit, up to
$2,000 for 4 circuits
Heat Pump Water Heaters
(electric resistance replacement)

SILICON VALLEY

CLEAN ENERGY
_ ._ ..
_ GO FutureFit Homes Program elec™c
Ad • www.svcleanenergy.org •
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Up to $8K in rebates for heat pump systems. Additional S5K for income-qualified customers.

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SILICON VALLEY <3/ CLEAN ENERGY
Consider new, clean, efficient
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Rebates up to $8,000
FutureFit Homes Program
Visit: SVCIeanEnerav.org/home-rebates
tolearn more
SVCE residents can receive rebates of up to
S8.000 for upgrading their gas appliances to
dean, effident heat pump ...See more
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Upgrade your home
appliances today!
Leam more
[j2) Uke Q Comment Share
17 0 2 4 6 8 10 12
Sunnyvale
Mountain View
Cupertino
Los Gatos
Milpitas
Campbell
Gilroy
Saratoga
Los Altos
Morgan Hill
0 20 40 60 80 100 120 140
Sunnyvale
Mountain View
Cupertino
Saratoga
Los Gatos
Los Altos
Milpitas
Campbell
Morgan Hill
Gilroy
Unincorporated Santa Clara County
Los Altos Hills
Monte Sereno
Item 4

PRESENTATION
We look at who FFH is reaching today, and
consider what else we should adjust
18 •
•
•
•
Item 4

PRESENTATION
Adding new programs will include even more
residents in electrification
Expanding our
reach to...

Non-energy savvy
Concierge coming November 2023
Target: 3,600 customers engage with hotline
Why It’s
Important
Phone line for people who want to talk about electrification Support technology questions, electrification decisions, and finding rebates Help all customers participate and decarbonize
Multifamily
Multifamily Direct Install coming Qi 2024
Target: Electrify 300-1,000 affordable MF units
Why It’s
Important
No-cost retrofits for deed-restricted affordable housing Includes electric baseboard heating replacement for some projects -reducing heating bills while electrifying other end uses
Affordability Awareness and
acceptance
Product
Availability
Workforce 20
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•
•
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•
Item 4

PRESENTATION
Adding new programs will include even more
residents in electrification
Expanding our
reach to...

Non-energy savvy
Multifamily
Low/moderate
income
Renters
Affordability Awareness and
acceptance
Product
Availability
Workforce
Concierge coming November 2023
Target: 3,600 customers engage with hotline
Why It’s
Important
Phone line for people who want to talk about electrification Support technology questions, electrification decisions, and finding rebates Help all customers participate and decarbonize
Multifamily Direct Install coming Q12024
Target: Electrify 300-1,000 affordable MF units
Why It’s
Important
No-cost retrofits for deed-restricted affordable housing Includes electric baseboard heating replacement for some projects -reducing heating bills while electrifying other end uses
21 On-Bill Financing coming Q2 2024
Target: 500-1,000 customers finance HPWH and HP HVAC systems Why It’s
Important
Help those without up-front capital still electrify
Reach renters by using bill savings to cover repayment
Can build off SVCE’s discounted E-ELEC rate
•
•
•
•
0 50
100
150
200
250
September-21 December-21 March-22 June-22 September-22 December-22 March-23 June-23 September-23 Registrations Completions
Item 4

PRESENTATION
Program Impact: FutureFit Fundamentals (FFF)
Active Homepage Link
Workforce
Program
Target:
300 contractors trained in the course
Graduates complete 500 local projects
Highlights:

Increase awareness of electric technology and uses
Recently added: graduates get $500 per appliance when
installing them for SVCE customers through FutureFit Homes Course Registrations and Completions, by Month
22 Item 4

PRESENTATION
CD Samples of FFF marketing
SILICON VALLEY 4k SAN JOSE • EVERGREEN
CLEAN ENERGY XT Community College District
SVCIeanenergy.org/futurefit-fundamentals
Contractors - Get paid $500
for 5 hours of online training
SVCIeanenergy.org/futurefit-fundamentals
Online training for the latest in all-electric building practices

SILICON VALLEY

CLEAN ENERGY
Future :it
Fundamentals
Get paid $500 for
Online Training and
up to $5,000 a year
for promoting
electric appliances’
SAN JOSE • EVERGREEN
SVCIeanenergy.org/Futurefit-Fundamentals
23 Item 4

INDUCTION HEAT PUMP
24 •
•
•
Item 4

PRESENTATION
What is the scale of the challenge?
01in
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PRESENTATION
SVCE programs are critical for testing
approaches and demonstrating what works
CMo
CO CD CD CO CD CDXcoE CD
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PRESENTATION
BAAQMD has set a rule to require HPWHs
starting in 2027
Water heater example
HPWH Installs Under
SVCE Programs
(Annual)
2019 - 2022
= 100 HPWHs/yr
2023 2024 - 2025
Annual HPWHs Needed to Replace all
Per year, from
2027-2037
27 Item 4

PRESENTATION
SVCE’s work can remove barriers and help
pave the way for this implementation
iEEEEEEEEEEEEEEEEEEEM iEEEEEEEEEEEEEEEEEEEEM iEEEEEEEEEEEEEEEEEEEEB eeee^eeeeeeeeeeeeem[eeeeeeeeeeeeeeeeeeeemSeeeeeeeeeeeeeeeeeeem[EEEEEEEEEEEEEEEEEEEMtEEEEEEEEEEEEEEEEEEEEM tEEEEEEEEEEEEEEEEEEEM jEEEEEEEEEEEEEEEEEEEM •
•
•
Item 4

PRESENTATION
SVCE's work can remove barriers and help
pave the way for this implementation
Water heater example
Annual HPWHs Needed to Replace all
Gas Water Heaters Over Next 11 Years
HPWH Installs Under
SVCE Programs
(Annual)
Market Transformation
IRA funds
Equipment price drop
Widespread financing
2019 - 2022
= 100 HPWHs/yr
2023 2024 - 2025 Per year, from
2027-2037
29 •
•
•
•
Item 4

PRESENTATION
SVCE's work can remove barriers and help
pave the way for this implementation
Water heater example
Annual HPWHs Needed to Replace all
Gas Water Heaters Over Next 11 Years
HPWH Installs Under
SVCE Programs
(Annual)
Market Transformation
IRA funds
Equipment price drop
Widespread financing
Contractor/ supplier
capacity
2019 - 2022
= 100 HPWHs/yr
2023 2024 - 2025 Per year, from
2027-2037
30 •
•
•
•
•
•
Item 4

PRESENTATION
SVCE’s work can remove barriers and help
pave the way for this implementation
CD CO CD CDXcoE CD
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cdCD
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PRESENTATION
Program Impact: 2022 Reach Codes
Active Homepage Link
Policy
2022 State code vs All-electric reach codes
50k homes with gas water heating o50k homes with heat pump water heating
$25M additional future cost to go
from gas to electric © $( incremental replacement cost
$0 savings at the $85M savings at the
time of construction time of construction
50,000 annual MT carbon 0 MT carbon pollution
pollution 1 from new water heaters
from new water heaters
32 •
•
•
Item 4

PRESENTATION
How you can keep helping to expand and
enable decarbonization
Review updates on decarb work
Quarterly Report in BOD packet
List of active programs on SVCE website
Reach out with questions, ideas, interest!
Help us get programs to your residents
Work with SVCE and your city to remove
friction (processes) and push scale (policy)

PROGRAMS PORTFOLIO
Quarterly Report
Active Programs
See Glossary for program descriptions. Title links toprogram homepage (if available).

Name
.tr ficalion Rai.

CHIIP. including
Affordable Housing
EVI Incentives
CALeVIP 1.0
Community Energy
Resilience
Budget Potential Impact Cumulative Impact
To-Oate Last Quarter (Update) Next Quarter (Target)

SILICON VALLEY
CLEAN ENERGY ABOUT US v GO ELECTRIC - REBATES & OFFERS v RATES & BILLING v Rebates and offers to help you
save money and go all-electric
As a customer of Silicon Valley Clean Energy, you have access to unique rebates and offers tailored for all our customers. Customize your search by selecting a filter to show eligible offers.

O All Rebates and
Offers
Residents
• For Homeowners
• For Renters
• For Your Car
Businesses
S9.5M 5,000 customers enrolled 850 enrolled
Created tracking for enrolled
customer and setup
processes including welcome
emails and surveys
Review Phase 1 learnings
and decide on revisions.

Host focus group to learn
about customer behavior
33 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
Program Portfolio Data
Appendix
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Single Family Owned Single Family Rented Multifamily Rented Multifamily Condo Mobile Homes Space Heating
Water Heating
Cooking
Dryer
Fireplace
Item 4

PRESENTATION
Percent
Non-Electric
Households
Electrification Needs by Home Type - Detail
Percent of Households with Electrification Needs by Home and Equipment Type Home Type
Source: SVCE Market Characterization Study (2022)
35 Item 4

PRESENTATION
Under-served Residents (Map)
SEVI Quartiles
I
| 1 (Least Vulnerable)
2 3
|4 (Most Vulnerable)
Insufficient Data
36 Item 4

PRESENTATION
Budget Allocation
Programs Fund Over Time
FY23 Snapshot
Future / Still Planning ($11M)
Planned to Go Live in Coming
~6 Months ($20M)
Live I Available Now to
Customers ($31M)
Customer-Reserved
Incentives ($11M)
Spent ($12M)
37

Silicon Valley Clean Energy Board of DirectorsOctober 11, 2023

Silicon Valley Clean Energy Board of Directors
October 11, 2023