Agenda packet — Silicon Valley Clean Energy Board of Directors, June 12, 2024 (part 1 of 2)

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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).

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Teleconference Meeting
Webinar:
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Webinar ID: 922 7128 7052
Members of the public may also attend this meeting in person, or 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 Board of Directors. The public will also have an opportunity to provide comments during the meeting. Members of the public participating remotely and 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 SILICON VALLEY <3/ CLEAN ENERGY

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The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Board 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
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 Board 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)
1a) Approve Minutes of the May 8, 2024, Board of Directors Meeting 1b) Receive April 2024 Treasurer Report
1c) Authorize Payments Totaling $3,054,971 for the California Community Choice Association and $1,270,327 for California Community Power Membership Costs
1d) Authorize the Chief Executive Officer to Execute a Third Amendment to the Peninsula Clean Energy Cost Share Agreement to Extend the Term Through December 31, 2026 and Increase SVCE’s Amount to $1,090,000 for Technical Support for the Reach Code Program 1e) Authorize the Chief Executive Officer to Negotiate and Execute a Memorandum of Agreement for an EPA Climate Pollution Reduction Grant
SILICON VALLEY <3/ CLEAN ENERGY

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Tina Walia, Chair
City of Saratoga
George Tyson, Vice Chair
Town of Los Altos Hills
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
Pat Showalter
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
1f) Authorize the Chief Executive Officer to Amend Agreement with Power MC LLC to Increase the Not to Exceed Amount by $121,613 to $545,797 for Business Process Optimization Project Consulting Services 1g) Approve July 2024 Rates Update in Alignment with SVCE’s 4% Budgeted Discount Rate for All Retail Rates
1h) Executive Committee Report
1i) Finance and Administration Committee Report
1j) California Community Power Report
1k) Additional Committee Reports
Regular Calendar
2) CEO Report (Informational)
3) Consider Staff’s Recommendation to Modify 2025 Clean Power Supply Offering for GreenStart (Action)
4) Results of Stress Test Analyses (Discussion)
5) FY 24-25 Budget Framework (Discussion)
6) Intro to 2025 Strategic Plan and Strategic Focus Areas (Discussion) 7) Local Agency Action Planning (Informational)
Board Member Announcements and Direction on Future Agenda Items Adjourn
SILICON VALLEY <3/ CLEAN ENERGY
Revised: February 7, 2024
1 SVCE

GLOSSARY OF TERMS
BTM – Behind the Meter – Customer-sited resources which connect to the distribution system on the customer’s side of the utility’s meter. See also “DER”.

C&I – Commercial and Industrial – Business customers
CAISO – California Independent System Operator – a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.

CALCCA – California Community Choice Association – Association made up of Community Choice Aggregation (CCA) groups which represents the interests of California’s community choice electricity providers.

CARB – California Air Resources Board – The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.

CARE – California Alternate Rates for Energy Program – A monthly discount of 20% or more on gas and electricity. Participants qualify through income guidelines or if enrolled in certain public assistance programs.

CEC – California Energy Commission
CCCFA – California Community Choice Financing Authority – The California Community Choice Financing Authority (CCCFA) was established in 2021 with the goal to reduce the cost of power purchases for member community choice aggregators (CCAs) through pre-payment structures. The founding members of CCCFA include Central Coast Community Energy, East Bay Community Energy, Marin Clean Energy, and Silicon Valley Clean Energy. CCCFA is a Joint Powers Authority which can help member CCAs save up to 10% or more on power purchase agreements, helping reduce costs for ratepayers and increase available funding for local programs.

CC Power – California Community Power – California Community Power is a Joint Powers Agency comprised of nine CCAs. CC Power allows its member CCAs to combine their buying power to procure new, cost-effective clean energy and reliability resources to continue advancing local and state climate goals.

CP – Compliance Period – Time period to become RPS compliant, set by the CPUC (California Public Utilities Commission)
DA – Direct Access – An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).

Demand – The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW), or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.

DR – Demand Response – An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
/T\ SILICON VALLEY <3/ CLEAN ENERGY
Silicon Valley Clean Energy Revised: February 7, 2024
2 DER – Distributed Energy Resource – A small-scale unit of power generation that operates locally and is connected to a larger power grid at the distribution level.

Distribution – The delivery of electricity to the retail customer’s home or business through low voltage distribution lines.
eHub – SVCE’s online customer resource center with the latest information on electric vehicles, home electrification, and solar and battery storage.

ERRA – Energy Resource Recovery Account – ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.

ESP – Energy Service Provider – An energy entity that provides service to a retail or end-use customer.

FERC – Federal Energy Regulatory Commission – Independent federal agency that regulates the interstate transmission of electricity, natural gas and oil. The CAISO is subject to FERC jurisdiction.

GHG – Greenhouse gas – water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.

GWh – Gigawatt-hour – The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.

IOU – Investor-Owned Utility – A private electricity and natural gas provider.

IRA – Inflation Reduction Act
IRP – Integrated Resource Plan – A plan which outlines an electric utility’s resource needs in order to meet expected electricity demand long-term.
kW – Kilowatt – Measure of power where power (watts) = voltage (volts) x amperage (amps) and 1 kW = 1000 watts
kWh – Kilowatt-hour – This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.

LCR – Local (RA) Capacity Requirements – The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.

LCFS – Low Carbon Fuel Standard – A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.

Load – An end use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires. See Demand.

LSE – Load-serving Entity – Entities that have been granted authority by state, local law or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.

Silicon Valley Clean Energy Revised: February 7, 2024
3 MMT – Million Metric Tonnes – Common unit of measurement in regulatory and policy space for California’s GHG emissions.

MAWG – Member Agency Working Group, a group of PIOs from SVCE’s member communities that gather monthly MW – Megawatt – measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.

MWh – Megawatt-hour – measure of energy
NEM – Net Energy Metering – A program in which solar customers receive credit for excess electricity generated by solar panels. The main differences between NEM and FIT programs are the type of rate (flat vs. dependent on time-of-day generation), number of meters required (two vs. one), and flexibility (long-term contract vs. non-binding program enrollment).

PCC1 – RPS Portfolio Content Category 1 – Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as “in-state” renewables PCC2 – RPS Portfolio Content Category 2 – Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.

PCC3 – RPS Portfolio Content Category 3 – Unbundled RECPSPS – Public Safety Power Shutoff – An event in which the IOUs purposely turn off segments of the grid due to high risk of ignition and wildfires.

PCIA or “exit fee” – Power Charge Indifference Adjustment (PCIA) is an “exit fee” based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.

Power Content Label (PCL) – A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).

PPA – Power Purchase Agreement – A contract used to purchase the energy, capacity and attributes from a renewable resource project.

Prepay – payment in advance by a municipal utility for a number of years of contracted energy, and this prepayment with tax-exempt debt
RA – Resource Adequacy – Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities—both independently owned utilities and electric service providers—to demonstrate in both monthly and annual filings that they have purchased capacity commitments to contribute their share of system reliability. Today LSEs must procure no less than 115% of the peak hour load. In 2023 and 2024, this will increase to 116% and 117% respectively. Beginning in 2025 a new RA program will be implemented requiring LSEs show capacity to meet their hourly reliability needs, the “PRM” adder is still undetermined.

RE – Renewable Energy – Energy from a source that is not depleted when used, such as wind or solar power.

REC – Renewable Energy Certificate – A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.

RPS – Renewable Portfolio Standard – Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.

Silicon Valley Clean Energy Revised: February 7, 2024
4 SB 100 – California Senate Bill 100 established a landmark policy requiring renewable energy and zero-carbon resources supply 100 percent of electric retail sales to end-use customers by 2045.

SMUD – Sacramento Municipality Utility District
SCE – Southern California Edison
SDG&E – San Diego Gas & Electric
TOB – Tariff On-bill – Tariff On-Bill Financing is a model in which utilities use a tariff to enable customers to pay back the cost of a solar panel without credit or income level conditions.

TOU – Time-of-Use Rates – The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24 hour period (on-peak, midpeak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.

Unbundled RECs – Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.

VPP – Virtual Power Plant – A cloud-based energy supply made up of a collection of an aggregation of distributed energy resources (DERs), such as smart EV chargers, smart thermostats, building energy management systems, battery storage systems, solar PV and smart inverters.
24/7 – Goal of supplying consumer energy demand with 100% carbon-free energy at all hours of the day

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Silicon Valley Clean Energy Authority
Board of Directors Meeting
Wednesday, May 8, 2024
7:00 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA

DRAFT MEETING MINUTES
Call to Order:

Chair Walia called the meeting to order at 7:01 p.m.

Roll Call

Present:

Tina Walia (Chair), Saratoga
George Tyson (Vice Chair), Los Altos Hills
Elliot Scozzola, Campbell
Sheila Mohan, Cupertino
Sally Meadows, Los Altos
Maria Ristow, Los Gatos
Bryan Mekechuk, Monte Sereno
Yvonne Martinez Beltran, Morgan Hill
Pat Showalter, Mountain View
Larry Klein, Sunnyvale

Absent:

Zach Hilton, Gilroy
Evelyn Chua, Milpitas
Otto Lee, Santa Clara County
Public Comment on Matters Not Listed on the Agenda
No speakers.

Consent Calendar
There were no questions or comments from the Board; there were no requests from the public to speak on any matter on the Consent Calendar.
1a) Approve Minutes of the April 10, 2024, Board of Directors Meeting 1b) Receive March 2024 Treasurer Report
1c) Receive FY24 Q2 Decarbonization Strategy and Programs Quarterly Report 1d) Authorize the Chief Executive Officer to Execute an Agreement with Rock Rabbit, Inc. to Pilot a Customer Incentive and Contractor Management Tool with a Not to Exceed Limit of $190,000 for an 18-month Term
Item 1a Draft Minutes: 5/8/24 SVCE BOD Meeting
SILICON VALLEY \3/ CLEAN ENERGY

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1e) Authorize the Chief Executive Officer to Execute a Long Form Resource Adequacy Agreement and any Ancillary Agreements for Resource Adequacy Capacity from High Desert Power Project, LLC
1f) Authorize the Chief Executive Officer to Execute an Agreement with Strategic Energy Innovations to Host Three Climate Corps Fellows with a Not to Exceed Limit of $216,750 for the 2024-2025 Fellowship Cycle
1g) Authorize the Chief Executive Officer to Execute Engagement Letter with Hall Energy Law PC for Legal Services Related to Energy and Capacity Transaction Needs and Long-term Power Purchase Agreements
1h) Executive Committee Report
1i) 2024 Legislative Responses to Industry Transition Ad Hoc Committee Report 1j) California Community Power Report
1k) Additional Committee Reports
MOTION: Director Klein moved and Director Mekechuk seconded the motion to approve the Consent Calendar, Items 1a through 1k.

The motion carried unanimously with Directors Chua, Hilton and Lee absent.

Regular Calendar
2) CEO Report (Discussion)
CEO Monica Padilla reported the following:
1) Highlights from the CEO Report, including the new format; 2) Congratulations to Sophia Zhang on her promotion from Power Supply Climate Corp Fellow to Associate Power Analyst;
3) Announcement of Director of Energy Services and Community Relations, Adam Selvin, would be leaving SVCE;
4) Acknowledgement of SVCE’s Community Impact Award, which was received at the CalCCA Annual Conference;
5) An update on an EPA grant submission, noting a Memorandum of Agreement would be brought to the June Board of Directors meeting for approval;
6) An update on the Income Graduated Fixed Charge from Bena Chang, Director of Government and Legislative Affairs, and Citlalli Sandoval, Senior Regulatory Advisor.

Staff responded to board member questions on the Income Graduated Fixed Charge regarding the 2026 start date; who would be responsible for monitoring who fits into the income-based CARE and FERA programs; and outreach to CARE and FERA customers.

CEO Padilla ended her report by highlighting the look-ahead document in the CEO report.

Chair Walia thanked SVCE staff for their work during Earth Month, noted SVCE was well represented at the CalCCA Annual conference, and commended SVCE’s impact in the community.

Chair Walia opened Public Comment.

No speakers.

Chair Walia closed Public Comment.
3) Adopt Resolution Approving the Hanford Hybrid Plant Emissions Mitigation Guidelines (Action)
Senior Regulatory Advisor Sandoval presented the item requesting the Board of Directors approve the Hanford Hybrid Plant Emissions Mitigation Guidelines via adoption of Resolution 2024-09. The Item 1a Draft Minutes: 5/8/24 SVCE BOD Meeting

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presentation included background information on the request, which stemmed from the adoption of Resolution No. 2023-06 in April 2023 approving a 12-year power purchase agreement with Middle River Power for energy and reliability products from its Hanford Hybrid Natural Gas Power Plant and Battery Energy Storage System. The proposed guidelines included the following key elements:
• Establish the Hanford Hybrid Plant Emissions Mitigation Fund (“Hanford Fund”) • Specify that the Hanford Fund will be used to fund existing local programs to help reduce emissions from greenhouse gases through electrification activities in disadvantaged or low-income communities in Kings County • Recommend a one-time funding allocation of $750,000 to $1.8 million– for the entire duration of the Hanford contract (12 years)
• This represents 0.6% - 1.5% of SVCE’s total Programs Budget Allocation • Specify that the Hanford Fund will be used to pay for activities led by organizations working in Kings County
• Require the collection of feedback be used to determine best course of action for utilizing Hanford Hybrid Plant Emissions Mitigation funds as well as the final funding amount • Require SVCE staff to evaluate the effectiveness of fund disbursements and report on progress to the Board in the Board Information Packet on an annual basis following the first disbursement and until the entire Hanford Fund has been disbursed, if necessary • All funds in the Hanford Fund must be disbursed by June 1, 2036 Staff responded to questions regarding the proposed guidelines, the Hanford Hybrid Plant, similar initiatives from other CCAs, reaching a variety of community members and a suggestion to electrify public spaces, how many of the local people in Kings County work at the Hanford Hybrid Plant, and if the money disbursement would be split equally from year to year.

Chair Walia opened Public Comment.

Bruce Karney, Mountain View resident, shared results from the Mountain View Environmental Sustainability Task Force from 2017/2018, which identified what a city could do to reduce greenhouse gas emissions. Mr. Karney noted he would share the list of projects with the Board of Directors and staff.

Chair Walia closed Public Comment.

MOTION: Director Martinez Beltran moved and Director Scozzola seconded the motion to adopt Resolution 2024-09 approving the Hanford Hybrid Plant Emissions Mitigation Guidelines, which provides for the following:
• Specifies the types of programs and projects that will be funded to help to mitigate the emissions associated with energy produced by the Hanford Hybrid Natural Gas Power Plant and Battery Energy Storage System during the 12-year term of the power purchase agreement;
• Establishes a fund of no less than $750,000 and no more than $1.8 million; • Authorizes the Chief Executive Officer to disburse the funds; and • Requires staff to report back to the SVCE Board of Directors on the effectiveness of the fund one year after the first disbursement and on an annual basis thereafter, if necessary.

The motion carried unanimously with Directors Chua, Hilton and Lee absent. 4) Authorize the Chief Executive Officer to Execute an Agreement with CLEAResult for the SVCE Commercial and Industrial Decarbonization Program with a Not to Exceed Limit of $2,489,087 through December 31, 2027 (Action)
Joey Lande, Energy Services Principal, and Justin Zagunis, Director of Decarbonization Programs and Policy, presented the request to the Board of Directors to authorize the CEO to execute an agreement for the SVCE Commercial and Industrial (C&I) Decarbonization Program with CLEAResult. The presentation included the following:
• Outline of the key elements of the program;
• SVCE C&I Decarbonization budget;
• Target market (large customers, annual usage >10 million kWh and 250,000 therms); Item 1a Draft Minutes: 5/8/24 SVCE BOD Meeting

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• A recap of the SVCE portfolio of programs;
• Engaging commercial and industrial customers;
• Building on Strategic Energy Management (SEM);
• Emissions avoidance;
• Trust building with customers; and
• Timeline and next steps.

Staff responded to board member questions regarding program evaluation, external funding, group cohort format, customer education on new facilities, decarbonization without strictly electrification, CLEAResult’s role in the program, estimated staff time on the program, information on the recognition system, an outline of the finances requested, impact of GHG reductions in comparison to program cost, Chair Walia opened Public Comment.

No speakers.

Chair Walia closed Public Comment.

MOTION: Director Mekechuk moved and Director Showalter seconded the motion to authorize the Chief Executive Officer to execute an agreement with CLEAResult for the SVCE Commercial and Industrial (C&I) Decarbonization Program, from the date of contract execution through December 31, 2027 and for an amount not to exceed $2,489,087.

The motion carried unanimously with Directors Chua, Hilton and Lee absent.

Board Member Announcements and Future Agenda Items
Director Klein congratulated SVCE for the CalCCA Community Impact award, and thanked SVCE for their attendance at the City of Sunnyvale Earth Day event.

Director Mohan complimented SVCE for the portable EV charging station, and shared she attended an induction cooking session with Chef Martin Yan.

Chair Walia announced the City of Saratoga’s Cooper-Garrod Vineyards were honored for their commitment to going green.

Public Comment on Closed Session
No speakers.

Closed Session
The Board of Directors convened to Closed Session at 8:46 p.m.

CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(California Government Code Section 54956.9(d)(1))
Name of case: Central Coast Community Energy, a California joint powers authority; Silicon Valley Clean Energy Authority, a California joint powers authority v. Big Beau Solar, LLC, et al, Santa Clara County Superior Court Case No. 22CV398156
The Board of Directors returned from Closed Session at 9:16 p.m.

Report from Closed Session
Chair Walia announced there was nothing to report from Closed Session.

Adjourn
Chair Walia adjourned the meeting at 9:18 p.m.

ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1a Draft Minutes: 5/8/24 SVCE BOD Meeting
1 TREASURER REPORT
Fiscal Year to Date
As of April 30, 2024
(Preliminary & Unaudited)
Issue Date: June 12, 2024
Table of Contents
Page
Summary 2-3
Statement of Net Position 4
Statement of Revenues, Expenses & Changes in Net Position 5 Statement of Cash Flows 6-7
Actuals to Budget Report 8-11
Monthly Change in Net Position 12
Investments Report 13
Customer Accounts and Aging Report 14
Certificate of Compliance 15
SVCE Managed Account & Security Transactions 16-21
Item 1b April 2024 Treasurer Report
SILICON VALLEY <3/ CLEAN ENERGY
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Balance Sheet Highlights:
> SVCE operations resulted in a change in net position of $16.6 million for the month of April and $99 million for fiscal-year-to-date (FYTD).* > Total Net Position increased further to $423.6 million. > SVCE is investing ~97% of available funds generating FYTD interest/dividend income of over $11.8 million. *Does not yet recognize unspent program dollars
**For reconciliation purposes, budget numbers include actual program expenses and depreciation, excludes GASP 87 expenses.

SVCE Yield-bearing Accounts:

Combined Ending Balance* 401.5 M
Total Interest/Div. Earned FYTD 11.8 M
Average Return On Investments** 5.3%
* Includes River Bank accounts - Money Market, Collateral and ICS; CAMP; PFM Portfolio ** Average annualized Yield for the current month

SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights* ($ in millions)
April 30, 2024
330.2 M
423.6 M
0 M
80 M
160 M
240 M
320 M
400 M
480 M
0 M
5 M
10 M
15 M
20 M
25 M
30 M
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Net Position Change in Net Position Change in Net Position*
Net Position (Right Y-Axes) Mid-Year Budget (Left Y-Axis)** Actual (Left Y-Axes) 243
273 289 293 307 323 337
0 50
100
150
200
250
300
350
400
450
500
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Days Cash on Hand (DCOH)
DCOH* Maximum Reserves Target Reserves Minimum Reserves $ 11,788.5 K
$ 1,312.2 K
$ 2,670.2 K
$ 1,928.0 K
$ 2,151.1 K
$ 908.1 K
$ 1,644.9 K
$ 1,174.1 K
$ 0 K
$ 1,500 K
$ 3,000 K
$ 4,500 K
$ 6,000 K
$ 7,500 K
$ 9,000 K
$ 10,500 K
$ 12,000 K
$ 0 K
$ 500 K
$ 1,000 K
$ 1,500 K
$ 2,000 K
$ 2,500 K
$ 3,000 K
$ 3,500 K
$ 4,000 K
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Investment Income*
Actual Cumulative Budget Actual
River City Bank
Accounts
5%
California Asset Management
Program (CAMP)
68%
PFM Asset Management
Investment Portfolio
27%
SVCE Accounts
*Includes investment income from SVCE Yield-bearing accounts plus interest on cash collateral *Adjusted to reflect the Mid-Year Budget (approved in March 2024) revisions Item 1b April 2024 Treasurer Report
Ill lllllll
min1 111 1 1
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Summary of Actual Results vs. Adjusted Budget (includes allocated but unspent program dollars):
> FYTD operating margin of $107.3 million or 37.3% is above the Mid-Year budget expectations of 33.6% operating margin for the fiscal year to date. > FYTD Power Supply costs are -4.6% below Mid-Year budget. > Retail GWh sales for the month of April and FYTD landed 3% and 0.8 % above Mid-Year budget respectively.

Variance Explanation:
$ in millions Actual MY Budget % Dif Actual MY Budget % Dif Main Drivers:

Revenue 36.9 M 37.4 M -1.4% 287.7 M 285.1 M 0.9%
Power Supply Cost 18.4 M 20.0 M -7.9% 180.5 M 189.1 M -4.6% Operating Margin 18.5 M 17.4 M 6.0% 107.3 M 95.9 M 11.8% Operating Expenses (ex Power) 2.4 M 2.8 M -15.2% 15.0 M 18.3 M -17.8% Other Non-Op. Expen. (Income) -1.2 M -1.1 M 11.7% 42.9 M 47.9 M -10.5% Net Increase in Available Fund
Balance 17.3 M 15.7 M 10.2% 49.4 M 29.8 M 65.8%
Customer Load Statistics:

Total Accounts 279,315
Opt-Out Accounts (Month) 73
Opt-Out Accounts (FYTD) 433
Opt-Up Accounts (Month) (27)
Opt-Up Accounts (FYTD) (100)
Program Funds:

General Program Fund
CRCR Fund*
Electrification Discount Fund
Building Fund
* Customer Relief and Community Resilience Fund
** The financial results in this report are preliminary and subject to change pending closing of the books for the fiscal year. Any potential changes are not expected to be significant. $ 9,446,460 $ 9,279,282 $ - $ 167,178
Customer load Fiscal YTD was 0.8% above Mid-Year Budget.

Beginning Balance End Balance YTD Contributions YTD Expenditures Lower YTD costs due to decline in energy prices.

SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights** ($ in millions)
April 30, 2024
April Fiscal YTD
January - April - customer demand/revenues slightly above SVCEs mid-year forecast, while lower power supply cost and other operating expenses combined with higher interest income elevated the net position.
$ - $ 20,000,000 $ 20,000,000 $ -
October - December - mainly reflects lower operating expenses and higher investment income as revenue and power supply cost were actualized during the Mid-Year budgeting.
$ 56,617,120 $ 83,916,938 $ 31,062,000 $ 3,762,182
$ 5,483,032 $ 8,683,740 $ 4,300,000 $ 1,789,542
Staffing vacancies, underrunning professional services, and lower marketing expenses Reflects higher Interest Income
Reflects budgetary transfers to program and other funds 933 K
2,424 K
1,344 K
4,636 K
8,466 K
205 K
1,594 K
0 M
1 M
2 M
3 M
4 M
5 M
6 M
7 M
8 M
9 M
Oct Nov Dec Jan Feb Mar Apr
Net Increase in Available Fund Balance
Comparing Actuals to Mid-Year Budget
250,762
250,737
250,862
251,097
251,320
251,754
251,849
27,474
27,464
27,450
27,426
27,404
27,471
27,466
92%
93%
94%
95%
96%
97%
98%
-
50,000
100,000
150,000
200,000
250,000
300,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Customer Accounts and Participation Rate
Res Accounts Com Accounts Customer Participation (Right Y-Axes) -12%
-9%
-6%
-3%
0%
3%
6%
9%
12%
-

50.0 100.0
150.0
200.0
250.0
300.0
350.0
400.0
Retail Sales - Actual vs Budget (GWh)
Retail Sales Actual (GWh)
Retail Sales Budget (GWh)
Load deviation from the Budget (Right Y-Axes)
Power Supply

90.0%
Personnel

3.5%
Contract
Services

3.8%
G & A

2.5%
Depreciation

0.2%
YTD Operating Expenses
Item 1b April 2024 Treasurer Report
1 1 1 1
4 Current Assets
Cash & Cash Equivalents $ 302,806,608
Accounts Receivable, net of allowance 35,600,368
Investments 31,510,426
Accrued Revenue 24,916,973
Other Receivables 2,986,362
Prepaid Expenses 1,333,533
Deposits 3,008,971
Restricted cash 166,023
Total Current Assets 402,329,264
Noncurrent assets
Capital assets, net of depreciation 433,476
Investments 81,297,442
Lease asset, net of amortization 561,750
Deposits 45,130
Total Noncurrent Assets 82,337,798
Total Assets 484,667,062
Current Liabilities
Accounts Payable 1,519,123
Accrued Cost of Electricity 30,128,097
Other accrued liabilities 2,187,472
User Taxes and Energy Surcharges due to other gov'ts 1,206,615 Supplier securit deposits 375,000
Lease liability 523,827
Total Current Liabilities 35,940,134
Noncurrent Liabilities
Supplier security deposits 25,053,125
Lease liability 94,331
Total noncurrent liabilities 25,147,456
Total Liabilities 61,087,590
Net investment in capital assets 377,068
Restricted for security collateral 166,023
Unrestricted (deficit) 423,036,381
Total Net Position $ 423,579,472

NET POSITION

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF NET POSITION
As of April 30, 2024
ASSETS

LIABILITIES
Item 1b April 2024 Treasurer Report
5 OPERATING REVENUES
Electricity Sales, Net $286,389,535
GreenPrime electricity premium 1,258,629
Liquidated damages 75,000
Other income 23,665
TOTAL OPERATING REVENUES 287,746,829

OPERATING EXPENSES
Cost of Electricity 180,486,957
Contract services 7,558,201
Staff compensation and benefits 7,091,720
Other operating expenses 4,921,786
Depreciation 371,543
TOTAL OPERATING EXPENSES 200,430,207
OPERATING INCOME(LOSS) 87,316,622

NONOPERATING REVENUES (EXPENSES)
Interest Income 11,788,527
Financing costs (61,492)
TOTAL NONOPERATING REVENUES (EXPENSES) 11,727,035
CHANGE IN NET POSITION 99,043,657
Net Position at beginning of period 324,535,815
Net Position at end of period $423,579,472

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES
October 1, 2023 through April 30, 2024

AND CHANGES IN NET POSITION
Item 1b April 2024 Treasurer Report
6 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 312,371,034
Receipts of security deposits 32,260,840
Other operating receipts 12,665
Payments to suppliers for electricity (234,412,686)
Payments of security deposits (720,000)
Payments for other goods and services (13,779,317)
Payments for staff compensation and benefits (6,959,375) Tax and surcharge payments to other governments (5,438,880) Net cash provided (used) by operating activities 83,334,281

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Finance costs paid (61,492)
Net cash provided (used) by financing activities (61,492)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (302,645)
Acquisition of capital assets (92,492)
Net cash provided (used) by capital and related
financing activities (395,137)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (61,276,024)
Proceeds from investment sales 39,532,700
Investment income received 11,143,798
Net cash provided (used) by investing activities (10,599,526) Net change in cash and cash equivalents 72,278,126
Cash and cash equivalents at beginning of year 230,694,505 Cash and cash equivalents at end of period $ 302,972,631 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 302,806,608
Restricted cash 166,023
Cash and cash equivalents $ 302,972,631

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF CASH FLOWS
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
7 Operating Income (loss) $ 87,316,622
Adjustments to reconcile operating income to net cash
provided (used) by operating activities
Depreciation expense 371,543
(Increase) decrease in accounts receivable 14,289,025
(Increase) decrease in other receivables 2,141,118
(Increase) decrease in accrued revenue 5,515,149
(Increase) decrease in prepaid expenses 19,644
(Increase) decrease in current deposits 22,593,508
Increase (decrease) in accounts payable (1,353,533)
Increase (decrease) in accrued cost of electricity (48,681,441) Increase (decrease) in accrued liabilities 910,950
Increase (decrease) in energy settlements payable 205,006 Increase (decrease) in taxes and surcharges due to other governments (520,185) Increase (decrease) in supplier security deposits 526,875 Net cash provided (used) by operating activities $ 83,334,281

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES

SILICON VALLEY CLEAN ENERGY AUTHORITY
STATEMENT OF CASH FLOWS (Continued)
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
8 FYTD FYTD FY 2023-24 FY 2023-24 `
OPERATING REVENUES Actual Mid-Year Budget $ % Mid-Year Budget Remaining Budget Energy Sales $286,389,535 $284,032,308 $2,357,227 0.8% $550,852,000 $264,462,465 Green Prime Premium 1,258,629 997,093 $261,536 26.2% 1,962,000 703,371 Other Income 98,665 29,167 69,498 238.3% 50,000 (48,665) TOTAL OPERATING REVENUES 287,746,829 285,058,568 2,688,261 0.9% 552,864,000 265,117,171

ENERGY EXPENSES
Power Supply 180,486,957 189,140,241 (8,653,284) -5% 365,617,000 185,130,043 Operating Margin 107,259,872 95,918,327 11,341,545 12% 187,247,000 79,987,128

OPERATING EXPENSES
Data Management 1,828,455 1,990,625 (162,170) -8% 3,413,000 1,584,545 PG&E Fees 695,487 857,500 (162,013) -19% 1,470,000 774,513 Salaries & Benefits 7,091,720 8,170,035 (1,078,315) -13% 14,818,000 7,726,280 Professional Services 2,909,879 4,789,444 (1,879,565) -39% 8,210,000 5,300,121 Marketing & Promotions 555,697 728,875 (173,178) -24% 1,250,000 694,303 Notifications 122,521 183,750 (61,229) -33% 315,000 192,479 Lease 310,017 321,563 (11,546) -4% 551,000 240,983
General & Administrative 1,499,102 1,219,916 279,186 23% 2,091,000 591,898 TOTAL OPERATING EXPENSES 15,012,878 18,261,708 (3,248,830) -18% 32,118,000 17,105,122 OPERATING INCOME/(LOSS) 92,246,994 77,656,619 14,590,375 19% 155,129,000 62,882,006

NON-OPERATING REVENUES
Investment Income 11,788,527 7,505,905 4,282,622 57% 12,867,000 1,078,473 TOTAL NON-OPERATING REVENUES 11,788,527 7,505,905 4,282,622 57% 12,867,000 1,078,473

NON-OPERATING EXPENSES
Financing 51,910 1,750 50,160 2866% 3,000 (48,910)

CAPITAL EXPENDITURES, TRANSFERS,
& OTHER
Capital Outlay 107,404 29,167 78,237 268% 50,000 (57,404) Transfer to Programs Fund 28,874,000 28,874,000 - 0% 28,874,000 - Nuclear Allocation 2,188,000 2,188,000 - 0% 2,188,000 - Transfer to Building Fund 20,000,000 20,000,000 - 20,000,000 - Transfer to CRCR Fund 4,300,000 4,300,000 - 0% 4,300,000 - Transfer from Electrification Discount Fund (167,178) - (167,178) n/a - 167,178 Transfer from CRCR Fund - customer bill relief (690,250) - (690,250) n/a - 690,250 TOTAL OTHER USES 54,611,976 55,391,167 (779,191) -1% 55,412,000 800,024

NET INCREASE(DECREASE) IN AVAILABLE
FUND BALANCE $49,371,635 $29,769,607 $19,602,028 66% $112,581,000 Variance

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
9 ACTUAL/

MY BUDGET MID-YEAR
REVENUE & OTHER SOURCES: MY BUDGET ACTUAL REMAINING BUDGET Transfers in - General Programs $ 28,874,000 $ 28,874,000 $ - 100.0% Transfers in - Nuclear Allocation $ 2,188,000 $ 2,188,000 $ - 100.0% Total $ 31,062,000 $ 31,062,000 $ -
EXPENDITURES & OTHER USES:

Program expenditures* 27,099,994 3,762,182 23,337,812 13.9% Net increase (decrease) in fund balance $ 3,962,006 $27,299,818 Fund balance at beginning of period 56,617,120
Fund balance at end of period $83,916,938

ACTUAL/

MY BUDGET MID-YEAR
REVENUE & OTHER SOURCES: MY BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund $ 4,300,000 $ 4,300,000 $ - 100.0% EXPENDITURES & OTHER USES:

Customer bill relief credit 4,300,000 690,250 3,609,750 16.1% Other program expenditures 3,535,082 1,099,292 2,435,790 31.1% Total Program expenditures 7,835,082 1,789,542 6,045,540 Net increase (decrease) in fund balance $ (3,535,082) 3,200,708 Fund balance at beginning of period 5,483,032
Fund balance at end of period $8,683,740

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2023 through April 30, 2024

CUSTOMER RELIEF & COMMUNITY RESILIENCY FUND

GENERAL PROGRAM FUND
BUDGETARY COMPARISON SCHEDULE*
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
10 ACTUAL/

MY BUDGET MID-YEAR
REVENUE & OTHER SOURCES: MY BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund * $ - $ - $ - n/a
EXPENDITURES & OTHER USES:

Program expenditures * 600,000 167,178 432,822 27.9%
Net increase (decrease) in fund balance $ (600,000) (167,178) Fund balance at beginning of period 9,446,460
Fund balance at end of period $9,279,282

ACTUAL/

MY BUDGET MID-YEAR
REVENUE & OTHER SOURCES: MY BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund * $ 20,000,000.00 $ 20,000,000.00 $ - 100.0% EXPENDITURES & OTHER USES:

Program expenditures * - - -
Net increase (decrease) in fund balance $ 20,000,000 20,000,000 Fund balance at beginning of period -
Fund balance at end of period $20,000,000

BUILDING FUND

BUDGETARY COMPARISON SCHEDULE
October 1, 2023 through April 30, 2024

ELECTRIFICATION DISCOUNT FUND

BUDGETARY COMPARISON SCHEDULE
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
11 Net Increase (decrease) in available fund balance
per budgetary comparison schedule $ 49,371,635
Adjustments needed to reconcile to the changes
in net position in the Statement of Revenues,
Expenses and Changes in Net Position
Subtract depreciation expense (371,543)
Subract program expense not in operating budget (4,861,474) Add back GASB 87 expenses not in operating budget 293,063 Add back transfer to Program fund 54,504,572
Add back capital asset acquisition 107,404
Change in Net Position 99,043,657

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGET RECONCILIATION TO STATEMENT OF

REVENUES, EXPENSES AND CHANGES IN NET POSITION
October 1, 2023 through April 30, 2024

OPERATING FUND
Item 1b April 2024 Treasurer Report
12 October November December January February March April May June July August September YTD

OPERATING REVENUES
Electricity sales, net $ 37,692,603 $ 39,705,552 $ 41,967,181 $ 47,091,508 $ 43,545,848 $ 39,786,031 $ 36,600,812 $286,389,535 Green electricity premium 136,391 $ 117,438 $ 130,927 $ 144,552 $ 123,168 $ 345,167 $ 260,986 1,258,629 Liquidated damages - $ 75,000 $ - $ - $ - $ - $ - 75,000 Other Income 2,500 $ 4,974 $ 5,850 $ 5,050 $ 2,316 $ 2,500 $ 475 23,665 Total operating revenues 37,831,494 39,902,964 42,103,958 47,241,110 43,671,332 40,133,698 36,862,273 - - - - - 287,746,829

OPERATING EXPENSES
Cost of electricity 31,160,273 $ 27,896,672 $ 20,303,980 $ 32,910,813 $ 24,261,713 $ 25,544,019 $ 18,409,487 180,486,957 Staff compensation and benefits 910,013 $ 913,400 $ 1,028,282 $ 1,060,468 $ 1,036,242 $ 1,062,728 $ 1,080,587 7,091,720 Data manager 253,895 $ 253,378 $ 253,607 $ 266,090 $ 266,560 $ 267,462 $ 267,463 1,828,455 Service fees - PG&E 98,425 $ 98,101 $ 104,757 $ 98,337 $ 98,296 $ 98,780 $ 98,791 695,487 Consultants and other professional fees 541,215 $ 504,693 $ 660,992 $ 742,608 $ 791,882 $ 871,701 $ 921,168 5,034,259 Other operating expenses 420,848 $ 324,106 $ 862,366 $ 1,239,599 $ 611,097 $ 817,661 $ 646,109 4,921,786 Depreciation 49,996 $ 56,455 $ 54,023 $ 52,427 $ 52,426 $ 52,839 $ 53,377 371,543 Total operating expenses 33,434,665 30,046,805 23,268,007 36,370,342 27,118,216 28,715,190 21,476,982 - - - - - 200,430,207 Operating income (loss) 4,396,829 9,856,159 18,835,951 10,870,768 16,553,116 11,418,508 15,385,291 - - - - - 87,316,622

NONOPERATING REVENUES (EXPENSES)
Grant income - $ - $ - $ - $ - $ - $ - -
Interest income 1,312,249 $ 2,670,244 $ 1,927,958 $ 2,151,056 $ 908,057 $ 1,644,880 $ 1,174,083 11,788,527 Financing costs (6,183) $ (10,369) $ (8,950) $ (9,232) $ (9,082) $ (8,625) $ (9,051) (61,492) Total nonoperating revenues (expenses) 1,306,066 2,659,875 1,919,008 2,141,824 898,975 1,636,255 1,165,032 - - - - - 11,727,035 CHANGE IN NET POSITION $ 5,702,895 $ 12,516,034 $ 20,754,959 $ 13,012,592 $ 17,452,091 $ 13,054,763 $ 16,550,323 $ - $ - $ - $ - $ - $ 99,043,657

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
October 1, 2023 through April 30, 2024
Item 1b April 2024 Treasurer Report
13 Ending Balance of SVCE Accounts: Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts $ 22,348,341 $ 32,458,101 $ 46,012,498 $ 22,314,142 $ 21,721,762 $ 26,843,555 $ 20,470,195 $ - $ - $ - $ - $ - California Asset Management Program (CAMP) $ 196,558,074 $ 184,428,757 $ 199,405,498 $ 232,403,050 $ 244,368,016 $ 261,500,705 $ 283,674,580 $ - $ - $ - $ - $ - PFM Asset Management Investment Portfolio $ 111,782,205 $ 112,312,183 $ 113,008,833 $ 113,738,828 $ 114,457,217 $ 114,334,972 $ 113,948,378 $ - $ - $ - $ - $ - Total Ending Balance $ 330,688,620 $ 329,199,041 $ 358,426,829 $ 368,456,021 $ 380,546,996 $ 402,679,232 $ 418,093,153 $ - $ - $ - $ - $ - Return On Investments:

Annual % Yield Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts 3.47% 3.58% 3.73% 3.90% 3.91% 4.05% 4.18% California Asset Management Program (CAMP) 5.56% 5.58% 5.55% 5.54% 5.50% 5.48% 5.44% PFM Asset Management Investment Portfolio 5.41% 5.42% 5.40% 5.31% 5.28% 5.24% 5.23% Average Return On Investments: 5.37% 5.33% 5.27% 5.37% 5.34% 5.32% 5.32% Interest Earned Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts $ 9,534 $ 9,534 $ 11,867 $ 17,766 $ 6,667 $ 11,034 $ 12,990 $ - $ - $ - $ - $ - California Asset Management Program (CAMP) $ 830,321 $ 870,683 $ 976,741 $ 997,552 $ 964,966 $ 1,132,689 $ 1,173,875 $ - $ - $ - $ - $ - PFM Asset Management Investment Portfolio * $ 1,112,927 $ 529,978 $ 696,650 $ 729,995 $ 718,389 $ (122,245) $ (386,594) $ - $ - $ - $ - $ - Total Interest and Investment Gains $ 1,952,782 $ 1,410,195 $ 1,685,258 $ 1,745,313 $ 1,690,022 $ 1,021,478 $ 800,270 * Includes change in current market value, unsettled trades and accrued interest CAMP Portfolio Statistics
As of April 30, 2024
Beginning of the Month Market Value $ 261,500,705
Ending of The Month Market Value $ 283,674,580
Yield at Market 5.44% Weighted Average Maturity (days) 35 PFM Portfolio Statistics
As of April 30, 2024
Portfolio Par Value $ 114,186,075
Portfolio Market Value (icl. Accrued Interest) $ 113,948,378 Yield at Cost 5.23%
Yield at Market 5.31%
Benchmark Yield* 5.09%
Portfolio Effective Duration (years) 1.32 Weighted Average Maturity (days) 639 *ICE BofA 0-3 Year U.S. Treasury Index
SVCE Investment Policy:
https://svcleanenergy.org/wp-content/uploads/2018/10/FP-08_Investments-Policy-F.pdf

SILICON VALLEY CLEAN ENERGY AUTHORITY

INVESTMENTS SUMMARY
October 1, 2023 through April 30, 2024

13.70% 14.23%

33.64%

29.75%

1.63%

7.05%

0.00%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years Maturity Distribution
U.S. Treasury
Bond / Note
32%
Commercial
Paper
11%
CAMP Pool
0%
Federal Agency
Commercial
7%
Supra-National
Agency
1%
Corp. & Bank
Notes
20%
Certificate of
Deposit
12%
Asset-Backed
Security
17%
SVCE PFM Portfolio Investments
Repurchase
Agreements,

40.5%
Certificates of
Deposit, 22.9%
Commercial
Paper, 33.8%
Money Market
Funds, 0.1%
Corporate
Notes, 2.8%
Camp Pool Composition (based on market value)
Item 1b April 2024 Treasurer Report
14 October November December January February March April May June July August Sept YTD Retail Sales Actual (GWh) 312.6 302.5 327.8 334.1 310.1 317.0 300.6 2,205 Retail Sales Budget (GWh) 312.6 302.5 327.8 335.5 301.7 315.1 291.9 307.2 334.6 359.8 378.7 353.2 2,187 Load deviation from the Budget (Right Y-Axes) 0.0% 0.0% 0.0% -0.4% 2.8% 0.6% 3.0% 0.8% Customer Participation Rate Res 96.3% 96.3% 96.2% 96.2% 96.2% 96.2% 96.1% Customer Participation Rate Com 96.8% 96.7% 96.6% 96.6% 96.6% 96.6% 96.6% Total Accounts 278,236 278,201 278,312 278,523 278,724 279,225 279,315 279,315 Opt-Out Accounts 56 29 51 73 102 49 73 433
Opt-Up Accounts -18 -6 -5 -25 -11 -8 -27 -100

0.07 25.25
SVCE Arrearager Total for customers 31+ days late and 120+ days late Age Summary (as of 5/1/2024) Date Amount
<30 days $32,388,182 High 11/29/2021 $7.99M
<60 days $1,229,327 Low 4/17/2020 $2.54M
<90 days $745,282 Current 7/31/2023 $5.9 M
<120 days $560,273
Older $3,315,930
April 2024 FYTD
Accounts Receivable Days
25 Days
$38,238,993

SILICON VALLEY CLEAN ENERGY AUTHORITY

RETAIL SALES, CUSTOMER ACCOUNTS AND AGING REPORT
Bad Debt % (Actual)

0.32%

TOTAL DUE
Bad Debt % (Budget)

0.75%
• Green arrow indicates
receipt of $1.3M in Federal
CAPP funds.
• An additional $717K in
CAPP funding provided in
Winter 2023.
• Growth at red arrow
indicates short-term PG&E
billing-hold issue in Fall
2022 that was quickly
resolved.
'17-'18 '18-'19 '19-'20 '20-'21 21-'22 22-'23 23-'24
Total (L Axes) $308,552 $417,275 $415,187 $639,455 $885,995 $1,484,752 $924,741 % Revenue 0.12% 0.14% 0.14% 0.25% 0.23% 0.33% 0.32%
Av./Month (R Axes) $25,713 $34,773 $34,599 $53,288 $73,833 $123,729 $132,106 $-
$30,000
$60,000
$90,000
$120,000
$150,000
$180,000
$210,000
$240,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
SVCE Write-offs By Fiscal Year
0 M
2 M
4 M
6 M
8 M
10 M
12 M
14 M
16 M
>120 Days 31+ Days
Item 1b April 2024 Treasurer Report
15 Item 1b April 2024 Treasurer Report
Silicon Valley Clean Energy April 30, 2024
Certificate of Compliance
Acknowledged : PFM Asset Management LLC
During the reporting period for the month ended April 30, 2024 the account(s) managed by PFM Asset Management ("PFMAM") were in compliance with the applicable investment policy and guidelines as furnished to PFMAM.

Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Asset and Investment Management ("AIM") 16 Item 1b April 2024 Treasurer Report
Managed Account Security Transactions & Interest For the Month Ending April 30, 2024 Silicon Valley Clean Energy - SVCE Investment Portfolio - 4025-002 - (12517950) BUY
Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method 03/25/24 04/02/24 BMW US CAPITAL LLC CORPORATE 05565ECG8 NOTES
DTD 04/02/2024 5.050% 04/02/2026
04/01/24 04/04/24 ADOBE INC CORPORATE NOTES
DTD 04/04/2024 4.850% 04/04/2027
00724PAE9
04/03/24 04/04/24 BNP PARIBAS NY BRANCH CERT DEPOS
DTD 04/04/2024 5.380% 04/03/2025
05593D5R0
04/03/24 04/04/24 US TREASURY NOTES
DTD 03/15/2023 4.625% 03/15/2026
91282CGR6
04/03/24 04/04/24 US TREASURY NOTES
DTD 07/15/2023 4.500% 07/15/2026
91282CHM6
04/04/24 04/10/24 GMCAR 2024-2 A2A
DTD 04/10/2024 5.330% 03/16/2027
379931AB4
04/16/24 04/23/24 AMXCA 2024-1 A
DTD 04/23/2024 5.230% 04/16/2029
02582JKH2
04/18/24 04/22/24 CANADIAN IMP BK COMM NY CERT
DEPOS
DTD 04/22/2024 5.550% 04/17/2025
13606K2K1
04/18/24 04/25/24 CHAOT 2024-2A A2
DTD 04/25/2024 5.660% 05/26/2027
16144CAB2
04/23/24 04/30/24 TAOT 2024-B A2A
DTD 04/30/2024 5.410% 03/15/2027
89237NAB3
04/23/24 04/30/24 CITIBANK NA CORP NOTES (CALLABLE)
DTD 04/30/2024 5.438% 04/30/2026
17325FBF4
04/24/24 04/25/24 CITIGROUP GLOBAL MARKETS COMM
PAPER
DTD 04/24/2024 0.000% 01/17/2025
17327ANH6
350,000.00 (349,849.50) 0.00 (349,849.50)
350,000.00 (349,825.00) 0.00 (349,825.00)
2,250,000.00 (2,250,000.00) 0.00 (2,250,000.00)
1,500,000.00 (1,497,187.50) (3,770.38) (1,500,957.88)
1,000,000.00 (996,914.06) (9,890.11) (1,006,804.17)
265,000.00 (264,982.48) 0.00 (264,982.48)
715,000.00 (714,853.43) 0.00 (714,853.43)
1,500,000.00 (1,500,000.00) 0.00 (1,500,000.00)
740,000.00 (739,973.29) 0.00 (739,973.29)
615,000.00 (614,955.78) 0.00 (614,955.78)
290,000.00 (290,000.00) 0.00 (290,000.00)
1,700,000.00 (1,632,797.58) 0.00 (1,632,797.58)
Transaction Type Sub-Total 11,275,000.00 (11,201,338.62) (13,660.49) (11,214,999.11)

INTEREST
DTD 09/01/2019 2.282% 07/01/2026
04/01/24 04/25/24 FHMS K039 A2
DTD 09/01/2014 3.303% 07/01/2024
3137BDCW4 971,548.16 0.00 2,674.19 2,674.19
04/01/24 04/25/24 FHMS K736 A2 3137FNWX4 750,000.00 0.00 1,426.25 1,426.25 PFM Asset Management LLC Account 4025-002 Paqe 28
17 Item 1b April 2024 Treasurer Report
Managed Account Security Transactions & Interest For the Month Ending April 30, 2024 Silicon Valley Clean Energy - SVCE Investment Portfolio - 4025-002 - (12517950) Transaction Type
Security Description CUSIP Par
Principal
Proceeds
Accrued
Interest Total
Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Trade Settle Method

INTEREST
04/01/24 04/25/24 FNA 2015-M11 A2
DTD 07/30/2015 2.943% 04/01/2025
3136APSZ6 651,036.34 0.00 1,596.93 1,596.93
04/01/24 04/25/24 FHMS K733 A2
DTD 11/09/2018 3.750% 08/01/2025
3137FJXO7 539,055.85 0.00 1,684.55 1,684.55
04/01/24 04/25/24 FHMS K054 A2
DTD 04/20/2016 2.745% 01/01/2026
3137BNGT5 1.100.000.00 0.00 2,516.25 2,516.25
04/01/24 04/25/24 FHMS K058 Al
DTD 11/09/2016 2.340% 07/01/2026
3137BSP64 455.416.56 0.00 888.06 888.06
04/01/24 04/25/24 FHMS K059 A2
DTD 11/29/2016 3.120% 09/01/2026
3137BSRE5 700.000.00 0.00 1,820.00 1,820.00
04/01/24 04/25/24 FHMS K065 Al
DTD 07/24/2017 2.864% 10/01/2026
3137F1G36 719.487.55 0.00 1.717.18 1,717.18
04/01/24 04/25/24 FHMS K729 A2
DTD 01/01/2020 2.525% 10/01/2026
3137FOXJ7 1.050.000.00 0.00 2.209.37 2,209.37
04/01/24 04/25/24 FHMS K057 A2
DTD 09/28/2016 2.570% 07/01/2026
3137BROJ7 1,175,000.00 0.00 2,516.46 2,516.46
04/03/24 04/03/24 AMERICAN HONDA FINANCE

CORPORATE NOTES
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DTD 07/19/2023 5.460% 05/15/2028
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PFM Asset Management LLC Account 4025-002 Page 29
18 Item 1b April 2024 Treasurer Report
t A \ 3
J
VUK For the Month Ending April 30, 2024 d Managed Account Security Transactions & Interest Silicon Valley Clean Energy - SVCE Investment Portfolio - 4025-002 - (12517950) Transaction Type
Trade Settle Security Description
Principal
CUSIP Par Proceeds
Accrued
Interest Total
Realized G/L Realized G/L Sale
Cost Amort Cost Method
|

INTEREST
DTD 11/21/2023 5.740% 06/15/2028
04/15/24 04/15/24 TAOT 2023-D A3
DTD 11/14/2023 5.540% 08/15/2028
89239FAD4 240,000.00 0.00 1,108.00 1,108.00
04/15/24 04/15/24 HAROT 2024-1 A2
DTD 02/21/2024 5.360% 09/15/2026
437918AB1 1,100,000.00 0.00 4,913.33 4,913.33
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DTD 02/21/2024 5.390% 01/15/2027
50117BAB6 830,000.00 0.00 3,728.08 3,728.08
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DTD 11/09/2022 5.390% 06/15/2027
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DTD 04/28/2022 3.490% 02/16/2027
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DTD 03/01/2024 4.940% 02/15/2029
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19 Item 1b April 2024 Treasurer Report
Managed Account Security Transactions & Interest For the Month Ending April 30, 2024 Silicon Valley Clean Energy - SVCE Investment Portfolio - 4025-002 - (12517950) Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method

INTEREST
04/16/24 04/16/24 GMCAR 2023-4 A3
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(CALLABLE)
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DTD 11/10/2023 5.880% 11/23/2026
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04/24/24 04/24/24 BANK OF NY MELLON (CALLABLE) CORP
NOTES
DTD 04/24/2020 1.600% 04/24/2025
06406RAN7 850,000.00 0.00 6,800.00 6,800.00
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16144BAB4 210,000.00 0.00 895.07 895.07
DTD 07/24/2017 2.864% 10/01/2026
Transaction Type Sub-Total 27,470,923.31 0.00 139,728.91 139,728.91

PAYDOWNS
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DTD 11/09/2016 2.340% 07/01/2026
13,159.15 13,159.15 0.00 13,159.15 674.41 0.00
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246.23 246.23 0.00 246.23 8.10 0.00
04/01/24 04/25/24 FNA 2015-M11 A2 3136APSZ6
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04/01/24 04/25/24 FHMSK065A1 3137F1G36 21,129.99 21,129.99 0.00 21,129.99 912.06 0.00 PFM Asset Management LLC Account 4025-002 Page 31
20 Item 1b April 2024 Treasurer Report
Managed Account Security Transactions & Interest For the Month Ending April 30, 2024 Silicon Valley Clean Energy - SVCE Investment Portfolio - 4025-002 - (12517950) Transaction Type
Security Description CUSIP Par
Principal
Proceeds
Accrued
Interest Total
Realized G/L
Cost
Realized G/L
Amort Cost
Sale
Trade Settle Method

PAYDOWNS
04/15/24 04/15/24 CARMX 2022-2 A3 14317HAC5 37,319.47 37,319.47 0.00 37,319.47 969.43 0.00 DTD 04/28/2022 3.490% 02/16/2027
04/15/24 04/15/24 COPAR 2023-2 A2A 14044EAB4 57,684.89 57,684.89 0.00 57,684.89 5.09 0.00 DTD 10/11/2023 5.910% 10/15/2026
04/22/24 04/22/24 PFAST 2023-2A A2A 732916AB7 109,049.49 109,049.49 0.00 109,049.49 3.35 0.00 DTD 11/10/2023 5.880% 11/23/2026
Transaction Type Sub-Total 317,636.66 317,636.66 0.00 317,636.66 3,871.41 0.00 SEL
04/03/24 04/04/24 BNP PARIBAS NY BRANCH COMM PAPER 09659BDV9 2,250,000.00 2,241,640.63 0.00 2,241,640.63 75,237.50 312.50 FIFO DTD 08/03/2023 0.000% 04/29/2024
04/18/24 04/22/24 US TREASURY NOTES 91282CFX4 875,000.00 870,659.18 15,491.80 886,150.98 5,024.41 416.80 FIFO DTD 11/30/2022 4.500% 11/30/2024
04/18/24 04/22/24 US TREASURY NOTES 91282CFX4 475,000.00 472,643.55 8,409.84 481,053.39 2,449.21 (37.20) HFO DTD 11/30/2022 4.500% 11/30/2024
04/19/24 04/22/24 US TREASURY NOTES 91282CGL9 725,000.00 712,482.42 5,337.91 717,820.33 1,840.82 (1,829.26) HFO DTD 02/15/2023 4.000% 02/15/2026
04/25/24 04/25/24 US TREASURY NOTES 91282CFX4 1,375,000.00 1,368,125.00 24,851.43 1,392,976.43 7,841.80 500.24 HFO DTD 11/30/2022 4.500% 11/30/2024
04/26/24 04/29/24 US TREASURY NOTES 91282CFX4 850,000.00 845,783.20 15,780.74 861,563.94 4,880.86 259.17 HFO DTD 11/30/2022 4.500% 11/30/2024
04/30/24 04/30/24 US TREASURY NOTES 91282CFX4 35,000.00 34,830.47 654.10 35,484.57 205.08 13.92 HFO DTD 11/30/2022 4.500% 11/30/2024
Transaction Type Sub-Total 6,585,000.00 6,546,164.45 70,525.82 6,616,690.27 97,479.68 (363.83) Managed Account Sub-Total (4,337,537.51) 196,594.24 (4,140,943.27) 101,351.09 (363.83) Total Security Transactions ($4,337,537.51) $196,594.24 ($4,140,943.27) $101,351.09 ($363.83) PFM Asset Management LLC Account 4025-002 Page 32

Page 1 of 4 ends

Staff Report – Item 1c
Item 1c: Authorize Payments Totaling $3,054,971 for the California Community Choice Association and $1,270,327 for California Community Power Membership Costs From: Monica Padilla, CEO
Prepared by: Zak Liske, Deputy Director of Power Resources Michael Callahan, General Counsel
Date: 6/12/2024

RECOMMENDATION
Staff recommends the Board of Directors authorize payments in the amount of:
(1) $460,000 to the California Community Choice Association (“CalCCA”) for fiscal year (FY) ending 2025 and approve and ratify all such payments made for previous fiscal years, totaling $3,044,971, inclusive of the $460,000 for FY 2025;
(2) $712,149 to California Community Power (“CC Power”) for FY ending 2025 and approve and ratify all such payments made for previous fiscal years, totaling $1,270,327, inclusive of the $712,149 for FY 2025; and
(3) $10,000 to CalCCA for a special assessment for shared legal services; totalling $3,054,971, inclusive of the CalCCA payments in item #1 above.

EXECUTIVE COMMITTEE RECOMMENDATION
This item was discussed at the Executive Committee on May 24, 2024 and the committee recommended the Board adopt staff recommendation parts 1 and 2.

After the Executive Committee meeting, staff added recommendation part 3 to secure an evolving opportunity for shared legal services with the CCAs related to the legal framework for CCA ratemaking.

BACKGROUND
To advance its mission to reduce dependence on fossil fuels by providing carbon-free, affordable and reliable electricity and innovative programs for the community, SVCE has joined two membership organizations: (1) CalCCA in January 2017; and (2) CC Power in January 2021. CalCCA is the Community Choice Aggregator (“CCA”) trade association in California. It facilitates cooperation among CCAs and advocates on behalf of CCAs before legislatures and regulatory bodies. CC Power is a Joint Powers Authority established for joint procurement of electricity resources by CCAs. SVCE has four active projects that were jointly procured through CC Power, primarily to meet requirements with the California Public Utilities Commission’s Mid-Term Reliability Procurement Order.

The SVCE Board of Directors authorized SVCE’s membership in both organizations.1 The memberships the Board approved require members to pay their share of costs.2 CalCCA generally has fixed membership costs that apply 1 See i.e. SVCE Board of Directors, Agenda Item 6 (Authorize CEO to Approve Membership of CalCCA), October 12, 2016; SVCE Board of Directors, Agenda Item 5 (Approve Participation in California Community Joint Powers Authority), December 9, 2020.
2 See i.e. Article VI (Membership Dues), CalCCA Bylaws; Section 3.03 (Cost Allocations), CC Power Joint Powers Authority Agreement.

Item 1c
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1c Agenda Date: 6/12/2024

Page 2 of 4 ends

equally to all members. CC Power membership costs include a general and administrative component that applies equally to all members and a project-specific component for members participating in various projects.

When SVCE first joined the two agencies, staff received authorization from the SVCE Board of Directors for sufficient budgets to cover SVCE’s portion of the operating and membership costs for CalCCA and CC Power.

When the Board approved participation in CC Power projects, staff also received funding authorization specific to the projects. While Board-adopted operating budgets have accounted for the agencies’ membership costs, staff have not sought specific Board authority to make payments for on-going annual membership costs. Such expenses have been in excess of the CEO’s purchasing authority of $100,000 per fiscal year. Staff will seek specific authority for those membership costs on a going-forward basis.

ANALYSIS & DISCUSSION
The staff recommendation includes approving payments for CalCCA and CC Power for membership costs. These costs are described below for each organization.

CalCCA Budget
CalCCA’s membership costs consist primarily of staff, consultant fees, and administrative costs. CalCCA’s operates on a July through June fiscal year basis. The FY 2025 budget is largely consistent with the FY 2024 budget. The FY 2024 budget increased relative to previous years with the addition of staff to engage on distribution grid and distributed energy resource issues. The budget payments for each fiscal year dating to SVCE’s first year as a member are provided below. CalCCA requires equal quarterly payments with the next one at $115,000 due in July 2024 for FY 2025.

Table 1: CalCCA Budget Payments by FY Ending
Fiscal Year* Budget Payments
2025 $460,000
2024 $436,841
2023 $415,177
2022 $401,492
2021 $348,961
2020 $330,000
2019 $327,500
2018 $325,000
*Based on CalCCA’s fiscal year, which is July 1 – June 30 Going forward, CalCCA’s budget is expected to increase as the agency continues to add staff to support added complexity around regulatory and legislative efforts.

CC Power Budget
CC Power’s membership costs consist primarily of staff, consultant fees, and administrative costs. These costs fall into two broad categories: (1) general and administrative costs; and (2) project participation costs. Support of these projects requires costs associated with general administration, legal and technical support.

To date, the SVCE Board has authorized participation in CC Power projects, including:
(1) Tumbleweed Long Duration Energy Storage Project approved by the Board at the February 9, 2022 meeting;
(2) Goal Line Long Duration Storage Project approved by the Board at the March 9, 2022 meeting; (3) Ormat Nevada Inc. Portfolio of Geothermal Projects approved by the Board at the June 8, 2022 meeting; and
(4) Open Mountain Energy LLC., Fish Lake Geothermal Project approved by the Board at the June 8, 2022 meeting.

Item 1c
Agenda Item: 1c Agenda Date: 6/12/2024

Page 3 of 4 ends

The FY 2025 budget is proposed to increase significantly by $413,695 associated with expanding CC Power’s analytical capabilities to evaluate new opportunities that may be of interest to members as well as funding for various strategic initiatives at different project stages. SVCE will have an opportunity to receive a significant portion of this increase as a refund if SVCE subsequently chooses not to participate in the new opportunities.

The projected budget payments for each fiscal year dating to SVCE’s first year as a member are provided below.

Table 2: CC Power Budget Payments by FY Ending
Fiscal Year* Budget Payments General and
Administrative
Project Participation
2025 $712,149 $136,464 $575,685
2024 $298,454 $84,338 $210,053
2023 $107,048 $51,026 $56,022
2022 $96,578 $25,338 $71,241
2021 $56,098 $47,173 $8,925
*Based on CC Power’s fiscal years, which is July 1 – June 30 Going forward, CC Power’s budget is expected to remain consistent with FY 2025 which assumes CC Power is able to implement its strategic directives.

CalCCA Special Assessment
Staff recommendation part 3 was identified after the Executive Committee meeting. This recommendation for authorization to pay CalCCA $10,000 in a special assessment would be incremental to the budget amounts in recommendation parts 1 and 2 above.

CCAs have a common legal framework that governs their ratemaking. CCAs individually are planning to undertake legal services related to this legal framework. Staff has identified that centralizing these services under CalCCA creates an opportunity to significantly reduce the costs of the legal services by avoiding redundant parallel services offered to each CCA individually.

CalCCA is planning to bring this proposal to their Board of Directors on June 13, 2024 as a special assessment, which is in excess of the annual CalCCA budget. CalCCA special assessments are brought from time to time when unanticipated opportunities to collaborate arise.

ALTERNATIVES
The Board may elect not to approve the FY 2025 budget for one or both agencies. However, the full extent of the impact from the Board electing to not ratify past budget payments for one or both agencies is unclear. To preserve SVCE’s membership in both organizations and the benefits conferred thereunder, staff recommends against this alternative.

Not funding CalCCA membership may require that SVCE withdraw from CalCCA and SVCE would have to add additional staff and/or consultants to provide the legislative and regulatory work currently performed by CalCCA staff. This alternative is not recommended due to impacts on current operations.

Not funding CC Power membership may require SVCE to withdraw from CC Power. SVCE needs to approve funding for CC Power to remain in the four projects noted above. These resources are needed for compliance under the California Public Utilities Commission’s procurement orders. SVCE could also seek to fund only that portion of the CC Power budget which corresponds to general administration and direct costs associated with Item 1c
Agenda Item: 1c Agenda Date: 6/12/2024

Page 4 of 4 ends

the four projects the Board has approved. However, this would require the CC Power board to allow elective funding level as an option, which it has not thus far.

Not funding the CalCCA special assessment will require SVCE to secure legal services independently and directly incur all the costs. As a result, SVCE will expend more resources and receive potentially inconsistent guidance from the other CCAs.

STRATEGIC IMPACT
Participation at CalCCA supports the FY 2024 Strategic Plan, Goal 9: Advocate for policies that protect CCA customer investments and further decarbonization, grid reliability, affordability, and social equity with federal and state elected officials and regulators.

Participation at CC Power supports the FY 2024 Strategic Plan, Goal 7: Acquire clean and reliable electricity in a cost effective, equitable and sustainable manner.

FISCAL IMPACT
The sum of all payments recommended for approval is $4,325,298, including $3,054,971 for CalCCA and $1,270,327 for CC Power. The fiscal impact of approving the FY 2025 budget payments for CalCCA and CC Power will be $1,172,149. These payments will happen between July 1, 2024 and June 30, 2025. SVCE’s FY 2024 Board approved operating budget is sufficient to cover the payments through September 30, 2024. SVCE’s proposed operating budget for FY 2025, will include sufficient funds to cover remaining expenses for both agencies. The payments for prior fiscal years total $3,143,149. However, authorizing and ratifying the prior budget payments will have no fiscal impact because those payments have been made and were within SVCE’s overall approved budgets in prior fiscal years.

The fiscal impact of the CalCCA special assessment will impose, at most, an additional $10,000 in fiscal impacts.

However, the actual impact may be lower or potentially negated based on the final scope of work and whether CalCCA can fund it through their regular budget. CalCCA is still making this determination.

Item 1c

Page 1 of 2 ends

Staff Report – Item 1d
Item 1d:

From:

Prepared by:

Date:

RECOMMENDATION
Staff recommends the SVCE Board of Directors approve the amended reimbursement agreement between Peninsula Clean Energy (PCE) and Silicon Valley Clean Energy (SVCE) to extend the term through December 31, 2026 and increase SVCE’s not to exceed amount by $350,000 to $1,090,000.

BACKGROUND
On December 12, 2018, the SVCE Board approved an agreement entitled “Reimbursement Agreement Between the Silicon Valley Clean Energy Authority and the Peninsula Clean Energy Authority for Professional Services Cost Reimbursement,” (“Reimbursement Agreement”), whereby SVCE and PCE agreed to issue a Request for Proposals and to jointly select and share the costs of a Building and EV Reach Code Consultant.

These services were sought to support the adoption of local reach codes by SVCE’s member agencies through the development of model code language and analysis, tailored technical assistance to member agencies, and support for code implementation. TRC Engineers Inc was selected to conduct the work. SVCE’s budget for the 2019 cycle of reach code work was set to not exceed $400k, including this cost share agreement.

On March 11, 2020, the SVCE Board approved an increase in budget to $600k for the 2022 cycle of reach code work and an amendment to the reimbursement agreement with PCE to extend the availability of technical support from TRC Engineers Inc. A second amendment was approved on September 13, 2023, increasing the amount to $740,000 and extending the term to July 31, 2024, to reflect expenses associated with the widespread adoption of reach codes by SVCE’s member agencies and ongoing questions around the City of Berkeley’s court case.

PCE and SVCE seek to extend this cost share agreement a third time, through December 31, 2026, to continue providing ongoing support for the most recent electrification reach codes, to expand model code support responding to the City of Berkeley court decision, and to provide support during the 2025 Triennial Building Code cycle. PCE considered the related amendment to their agreement with TRC on May 23rd, which was approved.

ANALYSIS & DISCUSSION
Recognizing the significant emissions that emanate from buildings, SVCE has invested significantly in plans and programs to address building decarbonization. While incentivizing existing building equipment retrofits and conversions is a vital strategy, ensuring that the codes and rules imposed by member agencies in the development process are optimized for eliminating emissions is a practical and sensible approach.

Item 1d
SILICON VALLEY \3/ CLEAN ENERGY
Authorize the Chief Executive Officer to Execute a Third Amendment to the Peninsula Clean Energy Cost Share Agreement to Extend the Term Through December 31, 2026 and Increase SVCE’s Amount to $1,090,000 for Technical Support for the Reach Code Program
Monica Padilla, CEO
Justin Zagunis, Director of Decarbonization Programs and Policy Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy 6/12/2024
Agenda Item: 1d Agenda Date: 6/12/2024

Page 2 of 2 ends

Thirteen of SVCE’s member agencies adopted an electrification reach code in 2022. With the passage of BAAQMD’s zero-NOx appliance standards, the Ninth Circuit’s ruling against Berkeley’s municipal gas ban, and another triennial building code cycle starting next year, staff feels it is prudent to continue to provide these resources and services to member agencies.

PCE has decided to extend the agreement with TRC because: 1) TRC has performed very well for us and others statewide and has established relationships with agency staff; 2) TRC is far and away the most experienced firm working in this space and we are unaware of a higher quality provider in the state; 3) Switching mid-year while dealing with the fallout of the Berkeley decision will create a risk for our constituents; and 4) TRC's hourly rates are low relative to some other competitors. We do not believe other consultants will offer lower prices.

STRATEGIC PLAN
The proposal supports SVCE’s Strategic Plan Goal 14, coordinate development of decarbonization and resilience strategy, lead design of local policy, and design and deploy programs.

ALTERNATIVE
If the Board does not approve this amendment, then the services from TRC Engineers Inc would no longer be available to member agencies. There would be a loss in continuity given that TRC Engineers Inc has been providing support across two reach code cycles and working with member agencies for years, in addition to a loss of alignment with agencies in San Mateo County. Staff would need to consider securing a new technical services provider or ceasing to provide the same level of technical support.

FISCAL IMPACT
Approval of the amended agreement with PCE will have a minor fiscal impact. The first year of the Third Amendment will be funded through the remaining budget that has already been approved by the Board for reach code work. Funding for the second year will be recommended for incorporation in the Programs Budget for Fiscal Year 24/25.

ATTACHMENTS

1. Third Amendment to Reimbursement Agreement Between the Silicon Valley Clean Energy Authority and the Peninsula Clean Energy Authority for Professional Services Cost Reimbursement

2. Second Amendment to Reimbursement Agreement

3. First Amendment to Reimbursement Agreement

4. Agreement Between the Silicon Valley Clean Energy Authority and the Peninsula Clean Energy Authority for Professional Cost Reimbursement
Item 1d

THIRD AMENDMENT TO REIMBURSEMENT AGREEMENT BETWEEN THE

SILICON VALLEY CLEAN ENERGY AUTHORITY AND THE PENINSULA CLEAN

ENERGY AUTHORITY FOR PROFESSIONAL SERVICES COST REIMBURSEMENT THIS THIRD AMENDMENT TO REIMBURSEMENT AGREEMENT (“Third Amendment”) is made and entered into as of _______ (“Effective Date”) by and between the Silicon Valley Clean Energy Authority (“SVCE”) and the Peninsula Clean Energy Authority (“PCE”) for the reimbursement of costs incurred by PCE in connection with the performance of professional services for the development, review, adoption, and implementation of reach ordinances as more fully described below. SVCE and PCE are individually referred to herein as “Party” and collectively referred to as “the Parties.”

RECITALS
A. SVCE and PCE are joint powers authorities organized for the purpose of conducting community choice aggregation programs and other energy-related climate change programs.

B. Staff at SVCE and PCE worked together to develop a scope of work for consultant services to research and prepare model reach codes related to building electrification and electric vehicle (“EV”) infrastructure, and to work with SVCE and PCE and their member agencies in the adoption of such codes by member agencies.

C. SVCE and PCE entered into an agreement entitled “Reimbursement Agreement Between the Silicon Valley Clean Energy Authority and the Peninsula Clean Energy Authority for Professional Services Cost Reimbursement,” dated December 15, 2018 (“Reimbursement Agreement”), whereby SVCE and PCE agreed to issue a Request for Proposals and to jointly select and share the costs of a Building and EV Reach Code Consultant to undertake the scope of services described in the Request for Proposals,.

D. PCE entered into an agreement with the consultant selected to be the Building and EV Reach Code Consultant, TRC Engineers Inc., on January 25, 2019 (“Original TRC Contract”).

E. SVCE and PCE both desire to continue using TRC Engineers, Inc. to provide reach code assistance to member agencies through the end of December 2026; to continue offering technical support to stakeholders such as developers, designers, agencies, and contractors; and to engage in Regional, State, and Federal Building Code development.

F. The PCE Board of Directors authorized the PCE Chief Executive Officer to extend and amend the Original TRC Agreement in March, 2020, March, 2021, and March, 2022 to reflect the supporting consulting services needed as identified by PCE and SVCE staff.

The PCE Board and TRC further amended the agreement in May, 2024. The TRC Contract Amendment describes the expanded scope of services and revised budget in Exhibit B thereto.

G. SVCE and PCE have twice previously amended the original “Reimbursement Agreement Between the Silicon Valley Clean Energy Authority and the Peninsula Clean Energy Authority for Professional Services Cost Reimbursement” to account for and accommodate changes in the services provided by TRC. The First Amendment was effective April 7, 2020, and the Second Amendment was effective on September 13, 2023.

The First and Second Amendments are Attached as “Exhibit A” hereto.

Item 1d
Attachment 1
H. SVCE and PCE desire to further amend the Reimbursement Agreement to increase the cost by $350,000 to a Not to Exceed amount of $1,090,000 to account for the extension of TRC’s services to December 31, 2026.

NOW, THEREFORE, SVCE and PCE mutually agree to the following:

1. Recitals. The Recitals stated above are true and correct and are incorporated by this reference into this First Amendment.

2. Increase Costs Subject to Reimbursement. The Parties hereby agree that the terms of this Reimbursement Agreement shall increase to a Not to Exceed amount of $1,090,000.

3. Reimbursement Agreement in Effect. All terms and conditions of the Reimbursement Agreement not specifically modified by this Third Amendment shall remain in full force and effect.

4. Counterparts. This Third Amendment may be executed in counterpart originals, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the Parties have executed this Third Amendment on the date first written above.

Silicon Valley Clean Energy Authority Peninsula Clean Energy Authority By: By:

Date _______________________________ Date __________________________ Item 1d
Attachment 1

SECOND AMENDMENT TO REIMBURSEMENT AGREEMENT BETWEEN THE

SILICON VALLEY CLEAN ENERGY AUTHORITY AND THE PENINSULA CLEAN

ENERGY AUTHORITY FOR PROFESSIONAL SERVICES COST REIMBURSEMENT THIS SECOND AMENDMENT TO REIMBURSEMENT AGREEMENT (“Second Amendment”) is made and entered into as of September 13, 2023 (“Effective Date”) by and between the Silicon Valley Clean Energy Authority (“SVCE”) and the Peninsula Clean Energy Authority (“PCE”) for the reimbursement of costs incurred by PCE in connection with the performance of professional services for the development, review, adoption and implementation of reach ordinances as more fully described below. SVCE and PCE are individually referred to herein as “Party” and collectively referred to as “the Parties.”

RECITALS
A. SVCE and PCE are joint powers authorities organized for the purpose of conducting community choice aggregation programs and other energy-related climate change programs.

D. PCE entered into an agreement with the consultant selected to be the Building and EV Reach Code Consultant, TRC Engineers Inc., on January 25, 2019 (“Original TRC Contract”).

E. SVCE and PCE both desire to continue using TRC Engineers, Inc. to provide reach code assistance to member agencies through the end of December 2021, and to expand the scope of services to offer additional technical support to stakeholders such as developers, designers, and contractors.

F. On January 23, 2020, the PCE Board of Directors authorized the PCE Chief Executive Officer to extend the Original TRC Agreement, and PCE and TRC Engineers, Inc. executed an amendment to the agreement on April 7 , 2020 (“Amended TRC Contract”).

The First Amended TRC Contract describes the expanded scope of services and revised budget in Exhibits A and B thereto.

G. On March 11, 2020, the SVCE Board of Directors approved the allocation of an additional $200,000 to SVCE’s Reach Code Initiative.

DocuSign Envelope ID: DBC0B85E-001D-4F85-B1A5-7C3C1A56D95E Item 1d
Attachment 2
H. On April 8, 2020, SVCE and PCE amended the Reimbursement Agreement to include an expanded scope of services to provide technical assistance for developers and contractor training.

I. SVCE and PCE desire to further amend the Reimbursement Agreement to add the not to exceed (NTE) amount of $740,000. Expenses through June 30, 2023 for SVCE have been $519,867.50.

NOW, THEREFORE, SVCE and PCE mutually agree to the following:

1. Recitals. The Recitals stated above are true and correct and are incorporated by this reference into this First Amendment.

2. Increase Costs Subject to Reimbursement. The Parties hereby agree that the terms of the Reimbursement Agreement shall increase the Costs to a NTE $740,000.

3. Reimbursement Agreement in Effect. All terms and conditions of the Reimbursement Agreement not specifically modified by this Second Amendment shall remain in full force and effect.

4. Counterparts. This Second Amendment may be executed in counterpart originals, each of which is deemed to be an original for all purposes.

IN WHITNES WHEREOF, the Parties have executed this First Amendment on the date first written above.

Silicon Valley Clean Energy Authority Peninsula Clean Energy Authority By: _____________________________ By: __________________________ Title: ____________________________ Title: _________________________ Date: ____________________________ Date: _________________________ DocuSign Envelope ID: DBC0B85E-001D-4F85-B1A5-7C3C1A56D95E 10/10/2023
COO & Director of Power Resources Chief Executive Officer 10/10/2023
Item 1d
Attachment 2
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FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT BETWEEN THE

SILICON VALLEY CLEAN ENERGY AUTHORITY AND THE PENINSULA CLEAN

ENERGY AUTHORITY FOR PROFESSIONAL SERVICES COST REIMBURSEMENT THIS FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT (“First Amendment”) is made and entered into as of _____________, 2020 (“Effective Date”) by and between the Silicon Valley Clean Energy Authority (“SVCE”) and the Peninsula Clean Energy Authority (“PCE”) for the reimbursement of costs incurred by PCE in connection with the performance of professional services for the development, review, adoption and implementation of reach ordinances as more fully described below. SVCE and PCE are individually referred to herein as “Party” and collectively referred to as “the Parties.”

RECITALS
A. SVCE and PCE are joint powers authorities organized for the purpose of conducting community choice aggregation programs and other energy-related climate change programs.

D. PCE entered into an agreement with the consultant selected to be the Building and EV Reach Code Consultant, TRC Engineers Inc., on January 25, 2019 (“Original TRC Contract”).

The First Amended TRC Contract describes the expanded scope of services and revised budget in Exhibits A and B thereto.

G. On March 11, 2020, the SVCE Board of Directors approved the allocation of an additional $200,000 to SVCE’s Reach Code Initiative.

April 7
April 7
DocuSign Envelope ID: ABB77637-D710-4DD3-A6ED-FD80718CC2F9 Item 1d
Attachment 3
H. SVCE and PCE desire to amend the Reimbursement Agreement to include the expanded scope of services for TRC Engineers, Inc.

NOW, THEREFORE, SVCE and PCE mutually agree to the following:

1. Recitals. The Recitals stated above are true and correct and are incorporated by this reference into this First Amendment.

2. Scope of Services Subject to Reimbursement. The Parties hereby agree that the terms of the Reimbursement Agreement, including but not limited to Section C(2) “Responsibilities of PCE” and Section C(3) “Responsibilities of SVC”, shall apply to and govern payments and reimbursements required pursuant to the expanded scope of services set forth in Exhibit A of the First Amended TRC Contract. Wherever the term “Contract” is used in the Reimbursement Agreement, it shall be deemed to include both the Original TRC Contract and the First Amended TRC Contract, including all revised attachments.

3. Reimbursement Agreement in Effect. All terms and conditions of the Reimbursement Agreement not specifically modified by this First Amendment shall remain in full force and effect.

4. Counterparts. This First Amendment may be executed in counterpart originals, each of which is deemed to be an original for all purposes.

IN WHITNES WHEREOF, the Parties have executed this First Amendment on the date first written above.

Silicon Valley Clean Energy Authority
By: ___________________________
Peninsula Clean Energy Authority
By: ___________________________
DocuSign Envelope ID: ABB77637-D710-4DD3-A6ED-FD80718CC2F9 Item 1d
Attachment 3
x DocuSigned by:
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1 REIMBURSEMENT AGREEMENT BETWEEN

THE SILICON VALLEY CLEAN ENERGY AUTHORITY

AND THE PENINSULA CLEAN ENERGY AUTHORITY

FOR PROFESSIONAL SERVICES COST REIMBURSEMENT
This REIMBURSEMENT AGREEMENT (“Agreement”) is made and entered into on December ___, 2018, by and between the Silicon Valley Clean Energy Authority (“SVCE”) and the Peninsula Clean Energy Authority (“PCE”) for the reimbursement of costs incurred by PCE in connection with the performance of professional services for the development, review, adoption and implementation of reach ordinances as more fully described below. SVCE and PCE are individually referred to herein as “Party” and collectively referred to as “the Parties.”

RECITALS
A. SVCE and PCE are joint powers authorities organized for the purpose of conducting community choice aggregation programs and other energy-related climate change programs.

B. Staff at SVCE and PCE have worked together to develop a scope of work for consultant services to be obtained from a Request for Proposals process that will be administered by PCE. The scope of services provides for the selected qualified consultant to research and prepare model reach codes related to building electrification and electric vehicle (“EV”) infrastructure and to work with SVCE and PCE and their member agencies in the adoption of such codes by the member agencies. A more detailed description of the consultant’s scope of services is set forth in the “2018 Request for Proposals for Building and EV Reach Code Consultant” attached hereto as Exhibit A and hereinafter referred to as the “Reach Codes RFP.” C. SVCE and PCE have agreed to share the costs of the selected Building and EV Reach Code consultant whose services will benefit both Parties as provided in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, SVCE and PCE mutually agree to the following:

1. Recitals. The Recitals stated above are true and correct and are incorporated by this reference into this Agreement.

2. Responsibilities of PCE. PCE shall be responsible for the following:
a. PCE shall issue and administer the Reach Codes RFP.
b. PCE shall jointly select with SVCE the consultant to perform the scope of services described in the Reach Codes RFP.
c. PCE shall enter into a written professional services contract (“Contract”) with the consultant jointly selected by SVCE and PCE upon the completion of the Reach 15 DocuSign Envelope ID: 1A0E6AA7-6096-4F34-B5E3-5FC74026252D Item 1d Attachment 4
2 Codes RFP process. The terms of the Contract shall be mutually agreed upon by SVCE and PCE.
d. PCE shall make timely payments to the selected consultant under the terms of the Contract and administer and manage the Contract.
e. PCE shall directly supervise the professional services provided by the selected consultant for the EV reach code work and for any services provided by the consultant that exclusively benefit PCE or its member agencies. f. PCE shall work cooperatively with SVCE in the development, review, adoption, and implementation of the model reach codes provided by the selected consultant pursuant to the Contract.

3. Responsibilities of SVCE. SVCE shall be responsible for the following:
a. SVCE shall assist PCE in reviewing and evaluating the proposals received by PCE in response to the Reach Code RFP.
b. SVCE shall jointly select with PCE the consultant to perform the scope of services described in the Reach Codes RFP.
c. SVCE shall reimburse PCE for 50% of the payments made by PCE to the selected consultant pursuant to the Contract for services benefiting both Parties. SVCE shall reimburse PCE for 100% of the payments made by PCE to the selected consultant pursuant to the Contract for services exclusively benefiting SVCE or its member agencies. SVCE will not reimburse PCE for any payments made by PCE for services exclusively benefiting PCE or its member agencies. Prior to the execution of the Contract, SVCE and PCE shall prepare a written list of the selected consultant’s services that benefit both Parties and the services that exclusively benefit one Party or the other. All amounts owed by SVCE to PCE shall be paid within 30 days after SVCE receives the selected consultant’s detailed invoice paid by PCE.
d. SVCE shall directly supervise the professional services provided by the selected consultant for the building electrification reach code work and for any services provided by the consultant that exclusively benefit SVCE or its member agencies. e. SVCE shall work cooperatively with PCE in the development, review, adoption and implementation of the model reach codes provided by the selected consultant pursuant to the Contract.

4. Term and Termination. The term of this Agreement shall commence on the date first written above and terminate on the date that SVCE makes its final payment under the provisions of this Agreement. Either party may terminate this Agreement without cause upon 30 days written notice. Either Party also may terminate this Agreement by written notice of a default by the other Party (“Defaulting Party”) of a material term of this Agreement, provided that the terminating Party has given written notice of default to the Defaulting Party and has given the Defaulting Party a DocuSign Envelope ID: 1A0E6AA7-6096-4F34-B5E3-5FC74026252D Item 1d
Attachment 4
3 reasonable period of time to cure the default, which in no case shall be less than 15 days. Upon termination of this Agreement, SVCE shall reimburse PCE for any unpaid consultant fees incurred prior to the date of termination that PCE is obligated to pay under the Contract.

5. Hold Harmless and Indemnification. The indemnification obligations of the Parties shall be as follows:
a. PCE shall defend, hold harmless and indemnify SVCE, and its directors, officers, agents and employees from any and all claims for injuries or damage to persons and/or property which arise out of the terms and conditions of this Agreement and which result from the negligent acts or omissions or other wrongful conduct of PCE, its directors, officers, agents and/or employees.
b. SVCE shall defend, save harmless, and indemnify the PCE, and its directors, officers, agents and employees from any and all claims for injuries or damage to persons and/or property which arise out of the terms and conditions of this Agreement and which result from the negligent acts or omissions or other wrongful conduct of SVCE, its directors, officers, agents and/or employees.
c. In the event of concurrent negligence of PCE, its directors, officers, agents and/or employees, and SVCE, its directors, officers, agents and/or employees, then the liability for any and all claims for injuries or damage to persons and/or property which arise out of terms and conditions of this Agreement shall be apportioned according to the California theory of comparative negligence.
d. This provision shall survive expiration or termination of this Agreement.

6. Amendment and Waiver. No change or modification of this Agreement shall be valid unless the same is in writing and signed by both Parties, and no verbal understanding or agreement not incorporated herein shall be binding on either Party hereto.

7. Governing Law. This Agreement shall be construed and governed by the laws of the State of California, and any suit or action initiated by either Party shall be brought in the Superior Court for the County of San Mateo, California, or the United States District Court for the Northern District of California.

8. Time of Essence. Time is of the essence for every provision hereof in which time is a factor.

9. Benefit of Parties. The terms of this Agreement shall be binding and inure to the benefit of the Parties hereto and their successors and assigns. Neither Party shall assign this Agreement or any portion thereof to a third party without the prior written consent of the other Party.

Any such assignment without prior written consent by one Party shall give the other Party the right to automatically and immediately terminate this Agreement without penalty or advance notice.

10. Entire Agreement of the Parties. This Agreement supersedes any and all agreements, either oral or written, between the Parties with respect to the subject matter of this Agreement and contains all of the representations, covenants, and agreements between the Parties with respect to DocuSign Envelope ID: 1A0E6AA7-6096-4F34-B5E3-5FC74026252D Item 1d
Attachment 4
4 the subject matter of this Agreement. Each Party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not contained in this Agreement.

11. Independent Counsel. Each Party has had the opportunity to consult with its own attorney with respect to this Agreement, and in the event that any language contained herein is construed to be vague or ambiguous, this Agreement shall not be strictly construed against any Party.

12. Notice. Notice given under or regarding this Agreement shall be deemed given upon delivery into the United States Mail if delivery is by postage paid certified mail (return receipt requested), or reputable overnight commercial delivery service. Notice shall be sent to the respective Party at the address indicated below or to any other address as a Party may designate from time to time by a notice given in accordance with this paragraph.

If to SVCE: Aimee Bailey, PhD
Director of Decarbonization & Grid Innovation
Silicon Valley Clean Energy
333 W. El Camino Road #290
Sunnyvale, California 94087
If to PCE: Rafael Reyes
Director of Energy Programs
Peninsula Clean Energy
2075 Woodside Road
Redwood City, California 94061

13. Invalid Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

14. Headings and Captions. The headings and captions used in this Agreement are for convenience only and shall in no way define, limit, or describe the scope or intent of the Agreement or any part thereof.

15. Counterparts. This Agreement may be executed in counterpart originals, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the Parties have executed this Agreement below on the date first written above.

Silicon Valley Clean Energy Authority
By: ___________________________
Peninsula Clean Energy Authority
By: ___________________________
DocuSign Envelope ID: 1A0E6AA7-6096-4F34-B5E3-5FC74026252D Item 1d Attachment 4
5CA64B9AC4C24C3...

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6 EXHIBIT A
2018 Request for Proposals for Building and EV Reach Code Consultant DocuSign Envelope ID: 1A0E6AA7-6096-4F34-B5E3-5FC74026252D Item 1d Attachment 4
2018 Request for Proposals for
Building and EV Reach Code Consultant
Peninsula Clean Energy is San Mateo County’s locally-controlled electricity provider. We are reducing greenhouse gas emissions and offering customer choice at competitive rates.

Offers due Thursday, January 3rd at 5:00 pm Pacific Time 1 Contents
2 RFP Overview ............................................................................................................. 1 3 Peninsula Clean Energy Overview............................................................................. 1 4 RFP Schedule ............................................................................................................. 2 5 Proposal Submittal...................................................................................................... 3 6 Review and Selection Process ................................................................................... 3 7 Agreement Terms ....................................................................................................... 3 8 Inclusion of Non-Participating Agencies..................................................................... 4 9 PCE Legal Obligations................................................................................................ 4 10 Scope of Work.......................................................................................................... 4 Item 1d
Attachment 4
0 PENINSULA

CLEAN ENERGY
PCE 2018 Request for Proposals
2 RFP Overview
Peninsula Clean Energy (PCE) programs include advancing the adoption of electric vehicles and transitioning building fossil fuel uses to low-carbon electricity. With this request for proposals (RFP), PCE requests information about the experience and qualifications your company may have relating to the development of model building “reach” codes to address electric vehicle infrastructure and building electrification needs as described in this RFP scope of work.

This RFP is being executed in collaboration with Silicon Valley Clean Energy (SVCE) as a prospective joint project. SVCE’s participation is subject to SVCE Board of Directors’ review and approval1.

This RFP
• Provides general background on PCE
• Describes the service sought by PCE (scope of work)
• Provides an opportunity for Proposers to describe their qualifications and assets, and to explain how they could contribute to the program By participating in PCE’s RFP process, a Proposer acknowledges that it has read, understands, and agrees to the terms and conditions set forth in these RFP Instructions.

PCE reserves the right to reject any offer that does not comply with the requirements identified herein. Furthermore, PCE may, in its sole discretion and without notice, modify, suspend, or terminate the RFP without liability to any organization or individual.

The RFP does not constitute an offer to buy or create an obligation for PCE to enter into an agreement with any party, and PCE shall not be bound by the terms of any offer until PCE has entered into a fully executed agreement.
3 Peninsula Clean Energy Overview
Peninsula Clean Energy (PCE), a community choice energy (CCE) program, is San Mateo County’s official electricity provider. PCE is a joint powers agency, formed in February, 2016, consisting of the County of San Mateo and all twenty of its cities. PCE provides cleaner and greener electricity, and at lower rates, than the incumbent investor-owned utility (IOU), Pacific Gas & Electric Company (PG&E). PCE plans for and secures commitments from a diverse portfolio of energy-generating resources to reliably serve the electric energy requirements of its customers over the near-, mid-, and long-term planning horizons. For more information on PCE, please go to www.peninsulacleanenergy.com.

PCE’s Strategic Goals:
1 SVCE staff anticipates taking the request to their Board at the meeting on December 12, 2018.

Item 1d
Attachment 4
PCE 2018 Request for Proposals

1. Design a diverse power portfolio that is greenhouse gas free. a. 100% GHG free by 2021
b. sourced by 100% CA RPS eligible renewable energy by 2025 c. create a minimum of 20 MWs of new local power by 2025

2. Continually strive to offer ECOPlus at rates that are at parity or lower than PG&E rates.

3. Stimulate development of new renewable energy projects and clean-tech innovation in San Mateo County and California through PCE’s procurement activities.

4. Demonstrate quantifiable economic benefits to the County/region and place a priority on local hiring and workforce development practices and environmental justice.

5. Implement programs to further reduce greenhouse gas emissions by investing in programs such as local clean power production, electric vehicles, energy efficiency, and demand response, and partnering effectively with local business, schools, and nonprofit organizations.

6. Maximize and maintain customer participation in PCE.

7. Provide a superior customer experience

8. Build a financially sustainable organization.

9. Foster a work environment that espouses sustainable business practices and cultivates a culture of innovation, diversity, transparency, integrity, and commitment to the organization’s mission and the communities it serves. 4 RFP Schedule
Date Event
Monday, November 26, 2018 PCE launches RFP: publishes RFP Instructions.

Friday, December 7, 2018 Deadline for Proposers to submit questions (see below)
Friday, December 14, 2018 PCE provides responses to questions on PCE’s website.

Thursday, January 3, 2019,
5:00 pm PT
Deadline for Proposers to submit proposals
Thursday, January 10, 2019
and Friday, January 11, 2019
Possible in-person interviews of top proposers
Wednesday, January 16, 2019,
5:00 pm PT
Anticipated date PCE will notify awardee
Thursday, January 24, 2019 Anticipated date for Board execution of contract Questions:
• Question & Answer: Proposers may submit questions concerning the RFP at [email protected]. All questions and answers will be shared with all Proposers and will be posted on PCE’s website.

Item 1d
Attachment 4
PCE 2018 Request for Proposals
• Proposal Review: PCE may request clarifications by email or phone January 3, 2019, through January 7, 2019. Prompt responses will be requested. • Proposer Interviews: PCE may conduct in-person interviews of the top proposers on January 10 and January 11, 2019.
5 Proposal Submittal
Proposals must be received on or before the above deadline and submittal must be by email to [email protected] with the subject “Proposal - <Organization> - Reach Codes Consultant”.

Only electronic submittals will be accepted.

Proposals must include:

1. Organization qualifications (4 pg. max)

2. Considerations and approach for development of model codes (4 pg. max)

3. Stakeholder engagement process (3 pg. max)

4. Schedule (table or chart, 1 pg. max)

5. Cost proposal (2 pg. max, include rate schedule)

6. Confirmation of acceptance of contract terms or explanation of proposed contract modifications (see Agreement Terms)

7. Project staff credentials (no limit)
6 Review and Selection Process
PCE staff will evaluate the proposals provided based on the following criteria:

1. Completeness of Proposal

2. Qualifications of the firm and staff

3. Proposed approach to implement project

4. Past experience

5. Cost structure

6. Exceptions to PCE’s contract template
7 Agreement Terms
Awardees will be required to enter into a contract using PCE’s standard contract terms.

Modification of the contract terms may be proposed by the Proposer for consideration by PCE but are not guaranteed to be accepted. Rejection of the final terms from PCE is grounds for disqualification.

PCE’s standard contract terms are available for review here:

Item 1d
Attachment 4
PCE 2018 Request for Proposals
https://tinyurl.com/pcecontractemplate
8 Inclusion of Non-Participating Agencies
PCE is asking all responding vendors to indicate their willingness to extend the terms of resulting contracts, inclusive of price, to other interested California-based municipalities, municipally-owned utilities and community choice energy programs. While this clause in no way commits these agencies to contract with PCE’s awarded consultant, nor does it guarantee any additional orders will result, it does allow other agencies, at their discretion, to make use of PCE’s competitive process (provided said process satisfies their own procurement guidelines) and purchase directly from the awarded contractor.

All purchases made by other agencies shall be understood to be transactions between that agency and the awarded vendor; PCE shall not be responsible for any such purchases.
9 PCE Legal Obligations
PCE is not obligated to respond to any offer submitted as part of the RFP. All parties acknowledge that PCE is a public agency subject to the requirements of the California Public Records Act, Cal. Gov. Code section 6250 et seq. PCE acknowledges that another party may submit information to PCE that the other party considers confidential, proprietary, or trade secret information pursuant the Uniform Trade Secrets Act (Cal.

Civ. Code section 3426 et seq.), or otherwise protected from disclosure pursuant to an exemption to the California Public Records Act (Government Code sections 6254 and 6255) (“Confidential Information”). Any such other party acknowledges that PCE may submit to the other party Confidential Information. Upon request or demand of any third person or entity not a party to this RFP ("Requestor") for production, inspection and/or copying of information designated as Confidential Information by a party disclosing such information (“Disclosing Party”), the party receiving such information (“Receiving Party”), as soon as practical but within three (3) business days of receipt of the request, shall notify the Disclosing Party that such request has been made, by telephone call, letter sent via email and/or by US Mail to the address or email address listed on the cover page of the RFP. The Disclosing Party shall be solely responsible for taking whatever legal steps are necessary to protect information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the Receiving Party. If the Disclosing Party takes no such action, after receiving the foregoing notice from the Receiving Party, the Receiving Party shall be permitted to comply with the Requestor's demand and is not required to defend against it. 10 Scope of Work
See following page.

Item 1d
Attachment 4
Scope of Work
1 Program Overview
Peninsula Clean Energy’s and Silicon Valley Clean Energy’s (SVCE) missions are to reduce greenhouse gas (GHG) emissions in San Mateo County and Santa Clara County (in the cities that SVCE covers), respectively. Emissions from transportation and building natural gas use comprise the largest sources of GHGs within the territories. This program aims to develop and advance Building Electrification and Electric Vehicle (EV) Infrastructure “reach” codes with member municipalities to update local building codes for new residential and commercial construction and major remodels. These codes are to be developed in alignment with and build on the 2019 California statewide building code updates. Codes for new buildings and major modifications are the most cost-effective points at which to install Electric Vehicle charging infrastructure and electric appliances (such as heat pump water heaters) compared to retrofitting existing buildings.
2 Consultant Responsibilities

2.1 Research Existing State and Local Codes
Consultant will research relevant state and local building codes to be developed related to building electrification and EV infrastructure. These codes may serve as models or foundations for the local model reach codes. This research must include both mandate- and incentive-based codes. The key features will be summarized in format easy to review for stakeholders.

2.2 Lead Development of Model Reach Codes
Consultant will work with PCE, the San Mateo County Office of Sustainability (OOS), and SVCE to provide key education to, and take input from, municipalities and other identified stakeholders to draft model reach codes to achieve program objectives. OOS and SVCE will provide facilitation support for their respective territories. The model reach code options must extend and be compliant with California’s 2019 Building Code and are expected to leverage the cost-effectiveness analysis results from the 2019 Statewide Codes & Standards Program, as needed.

Stakeholders to include in the reach code development process will be jointly determined but are anticipated to include elected officials, municipal staff, developers, electric vehicle experts, building electrification experts, Pacific Gas & Electric, building trades, and other members of the community. The facilitated processes for EV infrastructure and for building electrification may be handled separately as deemed appropriate.

The process will include a minimum of one revision and one charette per reach code focus area (i.e. EV and building electrification) and per service territory (PCE and SVCE). It is also anticipated that the final product may include two to four versions of each model reach code with varying levels of stringency. For example, this may include prescriptive or performance-based options for building electrification. The process and schedule will be refined in consultation with the Consultant.

2.3 Identify Tools and Processes for Adoption and Implementation This task includes identifying tools and process improvements to consider for 2.5 and 2.6. This may include but is not limited to:

Item 1d
Attachment 4
PCE 2018 Request for Proposals
a. Adoption tools: This includes template staff reports, findings for local governments to use when submitting Building codes to the California Building Standards Commission for acceptance, and/or other tools needed to move forward with the code adoption process at the local government and State level.
b. Implementation tools: This includes building department training, permit and inspection processes streamlining (including documenting all process efficiencies and benefits enabled by a suite of proposed streamlined permitting processes), educating builder community, and/or other tools needed to move forward with the code implementation process.

Any recommendations and deliverables will be developed with and vetted by the interested municipalities, development community, and other key stakeholders.

2.4 Develop EV Cost-Benefit Analysis
For the EV model codes, Consultant will also carry out an analysis including all costs and benefits – monetary and non-monetary (e.g. emissions impacts) – of the measures included. This will include the incremental construction costs resulting from the reach code (“first costs”). The EV cost-benefit analysis will be developed in a manner consistent with State and industry standards.

Municipalities will be encouraged to utilize the Statewide Codes & Standards program cost-benefit analysis for evaluating the efficacy of the Building Electrification model codes. The Consultant may be requested to provide additional enhanced analysis to supplement the Statewide cost-benefit analysis. If so, this will be treated as technical assistance under item 2.5.

2.5 Provide Technical Assistance to Municipalities for Adoption For each territory (PCE and SVCE), the Consultant will provide technical assistance to interested municipalities for the adoption process, including developing the tools mutually agreed to in 2.3, and which may include presentations or answering technical questions at Commissions and Councils. PCE and SVCE have a total of thirty-four jurisdictions (21 and 13, respectively). The Consultant should assume that all municipalities will participate, however, only a subset of municipalities may participate in the reach code development and adoption process.

2.6 Provide Technical Assistance to Municipalities for Code Implementation For each territory (PCE and SVCE), the Consultant will provide technical assistance to municipalities for the implementation process, including developing the tools mutually agreed to in 2.3, and which may include staff training sessions as requested.
3 Timing
All work must be completed with sufficient time for municipalities to execute ordinances in 2019 that will go into effect on January 1st, 2020.
4 Budgeting
The budget should include fixed costs for tasks 2.1 through 2.4. Tasks 2.5 and 2.6 should be provided as a variable cost (e.g. on a costs per-municipality basis).

Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024
AMENDMENT NO. 4 TO AGREEMENT BETWEEN PENINSULA CLEAN ENERGY AND TRC Engineers, Inc.________
THIS AMENDMENT TO THE AGREEMENT, entered into this March 16, 2022, by and between PENINUSLA CLEAN ENERGY AUTHORITY, a California joint powers authority, hereinafter called "PCE," and TRC Engineers, Inc., hereinafter called "Contractor"; W I T N E S S E T H:

WHEREAS, the parties entered into an Agreement on January 25, 2019, for the purpose of Contractor’s delivery of Reach Code adoption assistance to San Mateo County and its municipalities (“Agreement”); and
WHEREAS, PCE has determined that additional technical assistance for local governments, developers, and contractors is required for successful adoption and implementation of Reach Codes in new construction; and
WHEREAS, PCE has determined that development of local policies to advance building electrification and electric vehicle readiness is instrumental to achieving its decarbonization goals; WHEREAS, the parties wish to amend the Agreement to increase the maximum amount by $750,000 to an amount not to exceed $2,350,000 for the purpose of providing additional policy development support and replicable tools for existing building decarbonization as described in the amended scope of work.

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES AS FOLLOWS:

1. The contract schedule is extended, and paragraph 3 “Term” shall be amended as follows: The Agreement shall begin on January 25, 2019 and terminate on December 31, 2026. The parties understand that all contract tasks shall be completed by that date.

2. The text of “Exhibit A” shall be revised to replace Section 5 and add Sections 2.5.4, 9, 10, and 11 as described in this amendment Attachment A

3. The text of “Exhibit B” shall be deleted and replaced in their entirety with the updated Attachment B as attached to this amendment.

4. Except as expressly amended herein, all other provisions of the Agreement shall remain in full force and effect.

5. This Amendment No. 4 shall take effect upon the date of execution by both parties.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as set forth below.

Peninsula Clean Energy Authority
By: _______________________
Shawn Marshall, CEO
Dated: __________
By: _______________________
Name: ____________________
Title:______________________
Dated: __________
Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024
Attachment A
Ongoing tasks specified in tasks 1 through 4 and 6 through 8 of the contract remain required unless completed or otherwise directed by PCE.

2.5.4 Community Outreach
Consultant will coordinate with countywide initiatives and cohorts of jurisdictions to provide informational meetings and technical assistance, including the San Mateo County Regionally Integrated Climate Action Planning Suite (RICAPS) group.

Deliverables:

1. Presentation delivered to municipalities

2. CEC submission cover letter template

3. CEC submission packets

4. List of cities and assistance provided

5. Model Code Updates

5.1 Updates to 2022 & 2025 Model Codes
Consultant will work with PCE and Silicon Valley Clean Energy (SVCE) to refine Model Reach Codes as needed. Model Reach Codes for the 2022 & 2025 cycle have already been developed and should be substantially final before the initiation of the contract.

Model code options will include:

1. New Construction Energy Performance Approach

2. New Construction Air Quality Approach

3. New Construction CalGreen EV Infrastructure Reach Code

4. Existing Building Electrification and EV Infrastructure Reach Code Deliverables:

1. Refine and maintain up to date the model codes as needed based on stakeholder input with approval from PCE.

9. Coordination on Regional, Statewide, and National Building Codes

9.1 Review and summarize applicable agencies and legislative bodies Review applicable agencies relevant to statewide and national decarbonization code development, including, but not limited to efforts by Bay Area Air Quality Management District, California Energy Commission, California Air Resources Board, California Building Standards Commission, Housing and Community Development, International Code Council, ASHRAE, National Fire Protection Agency, and the National Electrical Code.

Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024
Summarize approach to meetings and decision-making, upcoming code cycles, relevant committees, and most time-efficient way to engage

9.2 Engage with agencies to help inform upcoming decision-making Attend meetings and workshops, review reports, serve on national advisory committees, and summarize the state of code development. Work with PCE/SVCE to determine best course of action related to coordination with and guidance for specific agencies.

Based on determinations of the team, provide feedback and guidance to agencies on behalf of PCE/SVCE in order to inform policy in alignment with methods established within our local government reach code efforts.

Deliverables

1. Application to specific boards and/or stakeholder working groups

2. Quarterly summary of policy updates and meetings

3. Guidance to agencies as directed by PCE/SVCE in the form of letters, public comment, or direct coordination with agency staff.

10. Building electrification modeling to inform policymaking Develop a workplan for 2025 Single Family New Construction and Existing Buildings simulation and utility rate modeling in coordination with Peninsula Clean Energy and SVCE. The workplan will outline simulation software (CBECC, EnergyPlus, or other), prototype characteristics, electrification measure packages, calibration needs, and sensitivity analyses. Consultant will perform utility rate modeling in MS Excel including forecasts and future escalation.

Deliverables

1. A brief workplan outlining simulation setup and objectives.

2. Slide deck summarizing methodology and findings for use in public meetings.

3. Building energy files and associated (e.g., hourly) data.

Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024

11. Schedule
Task Due Date(s)
1 Administration Ongoing

2.5 Provide Technical Assistance to Municipalities for
Adoption
Ongoing, completed by July 2026

2.6 Provide Technical Assistance to Municipalities for Code Implementation
Ongoing, completed by July 2026
3 Additional Program Tasks Ongoing
5 Model Code updates Ongoing, completed by July 2026
6 Update Tools and Processes for Adoption and
Implementation
Ongoing, completed by July 2026

9.1 Review and summarize applicable agencies and legislative bodies
August 2024

9.2 Application to specific boards and/or stakeholder working groups
December 2024

9.2 Quarterly summary of policy updates and meetings Ongoing

9.2 Guidance to agencies as directed by PCE/SVCE in the form of letters, public comment, or direct coordination with agency staff.

Ongoing
10 Building electrification modeling December 2024
The schedule is subject to revision as mutually determined by PCE and TRC.

Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024
Attachment B
In consideration of the services provided by Contractor described in Exhibit A and subject to the terms of the Agreement, PCE shall pay Contractor based on the following fee schedule and terms:

1. Time and materials up to $126,000 cost for administration, model code development and cost-effectiveness analysis (Task 1, Task 2.1 through 2.4, inclusive).

2. Time and materials up to $174,000 adoption and implementation support (Task 2.5 and 2.6).

These costs are not to exceed $10,000 per municipality unless approved by PCE.

3. The contract fee amount added by the March 20, 2020 amendment shall not exceed $450,000 for all the tasks as described below:

Task 2.5 and 2.6 $60,000
Task 3.1 $343,500
Task 3.2 $46,500
Total $450,000
The individual task amount as described above may be reassigned with prior PCE approval.

4. The contract fee amount added by the March 16, 2021 amendment No. 2 shall not exceed $100,000 for all the tasks as described in Attachment A Section 4.

5. The contract fee amount added by the March 2022 amendment shall not exceed $750,000 for all the tasks as described below:

Task # Task Budget
1 Administration $100,000

2.5 & 2.6 Technical Assistance for Municipalities
for Reach Code Adoption and for Code
Implementation
$175,000

3.1.2 Developer Technical Assistance $240,000

5.1 Model Code Updates $20,000
6 Implementation Tools $30,000
7 Characterization & Costs Study $150,000
8 Permitting Support $35,000
Total $750,000
The individual task amount as described above may be reassigned with prior PCE approval.

Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024

6. The contract fee amount added by the May 2024 amendment shall not exceed $750,000 for all the tasks as described below:

Task # Task 2024 added
budget
1 Administration $120,000

2.5 & 2.6 Technical Assistance for Municipalities for
Reach Code Adoption and for Code
Implementation
$250,000

3.1.2 Developer Technical Assistance $140,000

5.1 Model Code Updates $75,000
6 Implementation Tools $30,000
9 Coordination on Regional, Statewide, and
National Building Codes
$85,000
10 Building electrification modeling $50,000
Total $750,000
The individual task amount as described above may be reassigned with prior PCE approval.

7. Billings will utilize the rate schedules below as fully loaded rates. Non-labor expenses are not to exceed $13,500.

8. Invoices may be submitted no more than monthly, with hours identified by staff, rate and sub-task (ex: 2.1, 2.2, etc.). Invoices for tasks 2.5 and 2.6 must also be sub-totaled by municipality served.

TRC Rate Schedule
Title Hourly Rate Staff
Vice President $300 Cathy Chappell, Abhijeet Pande
Senior Director $264 Lisa Perry, Gwelen Paliaga
Engineering Director $242 Colman Snaith
Associate Director $220 Michael Mutmansky, Nicholas Dunfee, Michael Maroney, Farhad Farahmand, Dove Feng
Senior Project Manager $209 Rupam Singla, Ritesh Nayyar, Calder Silcox, Justin DeBlois
Project Manager $193 Pratap Jadhav, Mayra Vega
Associate Project
Manager II
$176 Avani Goyal, Taylor Taylor
Associate Project
Manager
$143 Tim Mensalvas, Yi Yi Chu
Research Associate $132 Yolanda Beesemyer, Rohan Gupta, Cory Griffin, Antonea Frasier, Kelsey Pruyne
Sub-Contractor Rate Schedule
TRC has assembled a list of potential sub-contractors to engage. TRC will engage with subcontractors for the top four areas of expertise and contract, with at least one per area of Item 1d
Attachment 4
Peninsula Clean Energy Contract Amendment 05/24/2024
expertise, within 15 days of PCE contract execution. TRC will provide resumes/CVs of each experts to PCE and SVCE for review prior to executing subcontracts, and execute subcontracts within 60 days of PCE contract execution. Additional sub-contractors may be enrolled with PCE approval.

Rates are not to exceed: $300 per hour without express written approval by the client. # Expertise Organization Staff Status Hourly Rate Resumes 1 Affordable
Housing Expert(s)
Redwood Energy
Sean Armstrong
Dylan Anderson
Jessica Lee
Romel Robinson
Confirmed
$225
$139
$120
$93
Yes
Association for
Energy
Affordability
Nick Young, Andy
Brooks, Nick Dirr, John
Neal, Sheetal Chitnis,
Jack Aitchison
Confirmed
$274.56,
$202.81,
$202.81
$170.71,
$159.27
Yes
2 Central Water
Heating Expert(s) Ecotope
Shawn Oram,
Colin Grist,
Kristine Adamich,
Katie Glore
TBD
$220, $180,
$170,
$165
Yes
3 Food Service
Equipment/
Commercial
Kitchens
Frontier Energy
David Zabrowski,
Richard Young, Todd
Bell, Denis Livchck
Confirmed
$300,
$300,
$189,
$189
Yes
4 Commercial All-electric Design
Expert
Western Allied
Mechanical
Todd Gottshall,
Laurens Vaneveld Confirmed $150 Yes
Smith Group Stet Sanborn Confirmed $300 Yes
Meyer+ Paul McGrath, Susie
See, Adam Kyle TBD $280,$250 Yes
CRB
Jeff Wegner
Jasmine Leja
Kiko Rejuso
Confirmed
$300
$150
$150
Yes
5 Single family
Design Expert IDeAs Consulting David Kaneda Confirmed $300 Yes 6 Project Capital ARUP Orion Fulton TBD TBD TBD
Item 1d
Attachment 4

Page 1 of 2 ends

Staff Report – Item 1e
Item 1e: Authorize the Chief Executive Officer to Negotiate and Execute a Memorandum of Agreement for an EPA Climate Pollution Reduction Grant
From: Monica Padilla, CEO
Prepared by: Justin Zagunis, Director of Decarbonization Programs and Policy Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy Date: 6/12/2024

RECOMMENDATION
Staff recommends the SVCE Board of Directors (Board) authorize the Chief Executive Officer to negotiate and execute a Memorandum of Agreement (MOA) as the lead agency for the purposes of securing grant funds from the United States Environmental Protection Agency (EPA) Climate Pollution Reduction Grants (CPRG) program and to incorporate any revisions to the MOA required by the EPA as part of their grant review and award process.

BACKGROUND
As reported to the Board in May 2024, SVCE submitted a $50M grant to the EPA in April to serve as the lead agency at the request of five local cities (Cupertino, Morgan Hill, Mountain View, San Jose, and Sunnyvale) pursuing municipal building resiliency and decarbonization. These agencies developed a joint proposal for this grant and requested SVCE serve as the lead agency.

As lead agency, SVCE will administer the financial oversight of the grant, ensure reporting, and other grant obligations are being met by the other grant coalition partners. The other members of the grant team have their own obligations as outlined in the MOA and grant application narrative. These include doing all necessary things to complete the projects each participating city identified for the grant. It also includes vendors that are handling various aspects of analysis, reporting, and outreach.

The EPA requires that all of the grant coalition partners, including SVCE, execute an MOA for this grant. The purpose of this Board item is to request the Board’s approval to execute the MOA.

SVCE will need to formally accept the grant if it is awarded and will return to the Board at that time with a request to receive the grant and enter into an agreement with the EPA to administer it.

ANALYSIS & DISCUSSION
While SVCE did not seek out this opportunity, it has been pursued because the goal of the grant, creating more resilient and decarbonized municipal buildings, would enhance SVCE’s service and aligns with SVCE’s mission. This grant supports SVCE’s mission by improving the reliability of the electrical service provided to SVCE customers and offsetting fossil gas use with electricity which presents the opportunity to benefit from greater economies of scale afforded by larger demand for electricity in SVCE’s service area. These benefits will be accomplished through supporting the installation of clean energy resources and devices for SVCE municipal customers.

Item 1e
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1e Agenda Date: 6/12/2024

Page 2 of 2 ends

In addition, the grant provides SVCE with an opportunity to collaborate and further serve its member agencies and partner with our neighbors in San Jose. SVCE acknowledges the primary role and tremendous contributions of the coalition partners, particularly the City of San Jose, in developing the grant application, The MOA, as presented, is based on other MOAs that numerous agencies in Santa Clara County have negotiated and executed in the past. SVCE’s focus has been on documenting the role that SVCE and the other coalition partners will all play during grant implementation. The document is subject to minor further alterations until executed as every agency’s attorney has to approve the exact same document.

If awarded, the grant itself will fund:
• Electric upgrades to the Quinlan Community Center in Cupertino • Electric upgrades and microgrid expansion at the Centennial Recreation Center in Morgan Hill • Microgrid and decarbonization infrastructure improvements at two school sites in Mountain View • Microgrid installation at six facilities in San Jose plus the retrofitting of 100 water heaters and the installation of 60 EV chargers at City facilities
• All-electric rebuild of two Sunnyvale facilities (fire station and wastewater treatment facility Regardless of this particular grant’s success, the work associated with participating in the grant application preparations, meeting with the staff involved, and negotiating this MOA has laid a foundation for future collaborative efforts.

STRATEGIC PLAN
The proposal supports SVCE’s Strategic Plan Goal 14, coordinate development of decarbonization and resilience strategy, lead design of local policy, and design and deploy programs.

ALTERNATIVE
If the Board does not authorize the CEO to negotiate further and execute the MOA, then the five municipal agencies participating in the grant application would lose the opportunity to benefit from the CPRG program.

This would be both a direct financial loss to the agencies and would have a detrimental impact to SVCE’s relationship with the agencies.

FISCAL IMPACT
There are no direct fiscal impacts at this time associated with approving the MOA. If the EPA awards the grant, SVCE will subsequently bring an SVCE-EPA agreement to the Board and outline the fiscal impacts of accepting the grant. However, staff anticipates the impacts will be limited as the grant is intended to cover SVCE's costs as lead agency.

ATTACHMENT

1. Draft Memorandum of Agreement for EPA Climate Pollution Reduction Grant Item 1e
1 MEMORANDUM OF AGREEMENT AMONG COALITION PARTNERS FOR

PUBLIC FACILITY RESILIENCY IMPLEMENTATION PROJECT

ADMINISTRATION AND IMPLEMENTATION
This Memorandum of Agreement (“MOA”) is entered into by and between Silicon Valley Clean Energy, a joint powers authority registered in the state of California; City of Cupertino, a municipal corporation of the state of California; City of Morgan Hill, a municipal corporation of the state of California; City of Mountain View, a municipal corporation of the state of California; City of San José, a municipal corporation of the state of California; City of Sunnyvale, a municipal corporation of the state of California; Prospect Silicon Valley, a nonprofit corporation registered in the state of California; and SPUR – San Francisco Bay Area Planning & Urban Research Association, a nonprofit corporation registered in the state of California; collectively “Parties” or “Coalition Partners” or individually as a "Party” or “Coalition Partner."

RECITALS
A. The impacts of climate change have contributed to a warming climate and power outages, which call for improvements at public facilities to make them more resilient and energy-independent; B. Silicon Valley Clean Energy (“SVCE”) provides clean electricity service, and has an interest in supporting reliable and resilient electricity service and reducing the costs to provide this service through achieving greater economies of scale by displacing fossil gas consumption with greater use of clean electricity and through the efficient use of energy among public facilities in its service area; C. The Parties have worked collaboratively to identify and plan for the installation of improvements in public buildings in the jurisdictions of Cupertino, Morgan Hill, Mountain View, San José, and Sunnyvale to enhance resiliency and reduce greenhouse gas (“GHG”) emissions; D. The 2022 Inflation Reduction Act (“IRA”) established the Climate Pollution Reduction Grants (“CPRG”) program which provides funds for implementation grants administered by the United States Environmental Protection Agency (“EPA”);
E. The Parties jointly prepared a CPRG application (“Grant Application”) for submission to the EPA entitled the Public Facility Resiliency Implementation Project (“PFRIP”) to obtain implementation grant funding (“Grant”) to design, construct, and evaluate the identified public building improvements;
F. SVCE submitted said Grant Application on behalf of the Parties to the EPA on April 1, 2024, with SVCE acting as “Lead Coalition Partner”;
G. On March 26, 2024, the City of San José adopted Resolution No. RES2024-83 to become a Coalition Partner.

H. On March 26, 2024, the City of Mountain View adopted Resolution No. 18878 authorizing the City Manager or their designee to execute a Memorandum of Agreement with partnering agencies.

I. On June 4, 2024, the City of Cupertino adopted Resolution No. XXX to become a Coalition Partner.

J. On June 18, 2024, the City Council of the City of Sunnyvale approved Sunnyvale’s participation as a Coalition Partner by approving this Memorandum of Agreement. .

Item 1e
Attachment 1
DRAFT
2 K. On June 19, 2024, the City of Morgan Hill adopted Resolution No. XXX to become a Coalition Partner.

L. The Parties desire to execute this MOA to govern the use of Grant funds to implement the PFRIP and to set out the obligations of the Parties for the life of the Grant term; and M. This MOA establishes policies, responsibilities, and obligations of the Parties.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

SECTION 1. PURPOSE OF THE MOA
The purpose of this MOA is to establish:
• The obligations and responsibilities of each Party for the management and operation of the PFRIP.
• Agreed upon roles, responsibilities, and commitments made by each Party to ensure PFRIP success is aligned with overall PFRIP goals, objectives, and target outputs. • An operating model for the Parties.
• How the collaboration and partnerships associated with the Parties will benefit the PFRIP. • The resources each Party will contribute to the PFRIP.

SECTION 2. EFFECTIVE DATE AND TERM
This MOA shall be effective on June 30, 2024, and shall remain effective until all obligations associated with the awarded Grant have been fulfilled, subject to the termination provisions below.

For information purposes only, the anticipated performance period for the Grant is expected to begin October 1, 2024 and end December 31, 2029; however, the exact period may vary. This MOA shall terminate early in the event that Grant funds are not awarded or in the event that Grant funds are rescinded and all of the Parties’ obligations associated with the rescinded Grant funds have been fulfilled. In the event that the Grant is funded in an amount less than the requested $49,999,997, the Parties shall immediately meet and confer regarding the feasibility of the PFRIP and possible modifications to the project list for the PFRIP. The Parties shall document any proposed changes to the PFRIP in writing. If the Parties do not agree to accept the Grant funds and perform the PFRIP with a reduced award, SVCE shall not execute the Grant agreement associated with the Grant award and this MOA will terminate upon the expiration of the period during which the Grant agreement must be signed to accept awarded funds.

SECTION 3. RESPONSIBILITIES OF THE PARTIES
For purposes of the Grant, SVCE, as the lead applicant and Lead Coalition Partner, shall report to the EPA, oversee the full scope of work, and oversee the proper financial management of the Grant. All Parties commit to perform the obligations as described in the PFRIP workplan, attached as Exhibit A of this MOA and incorporated herein by this reference (“PFRIP Workplan”), and to expend Grant funds as described in the PFRIP budget, attached as Exhibit B of this MOA and incorporated herein by this reference (“PFRIP Budget”). The Grant narrative submitted to the EPA is included as Exhibit C, and is included to provide further context for the obligations agreed to in Exhibit A. All Parties other than SVCE are Grant subrecipients and shall be accountable to and support SVCE, lead applicant, for proper Item 1e
Attachment 1
DRAFT
3 use of Grant funding and successful PFRIP implementation. Parties shall not terminate or reduce their obligations under this MOA unless all Parties agree in writing and, to the extent it is required, the EPA supports the modification. No Party shall unreasonably withhold agreement to termination or reduction of obligations, and all parties shall reasonably cooperate in seeking EPA approval for such modifications.

SECTION 4. COSTS
The Parties anticipate that the Grant funds will be sufficient to complete the PFRIP completely and in conformance with the PFRIP Workplan and agree to take all reasonable and necessary steps to complete the PFRIP within the PFRIP Budget. However, in the event that Grant funds are not adequate to complete PFRIP, the Parties will immediately meet and confer to discuss how to address budget shortfalls. Each Party agrees to work in good faith to resolve budget shortfalls with the goal of completing the proposed or modified projects identified in the Work Plan through methods that may include seeking additional funding from their respective agencies, reducing project scopes, or similar modifications to bring a project within budget. However, the Parties acknowledge that the resolution of budget shortfalls may require additional commitments that are unknown and may require additional approval from their Boards or City Councils and that the outcome of such approvals cannot be guaranteed. The Parties agree that any resolution to such budget shortfalls shall not be contrary to, nor cause a breach or violation of the obligations and responsibilities contained in the Grant agreement executed between the EPA and SVCE, nor be contrary to any EPA requirements associated with the Grant. The Parties agree to cooperate in good faith as provided in Sections 3 and 4 of this MOA to seek EPA approval to modify or remove projects if Grant funds are inadequate to complete a PFRIP project.

SECTION 5. RECORDS AND ACCOUNTS AND THEIR RETENTION
SVCE, as well as all other Parties, will keep complete and accurate financial, payroll, and procurement records related to the PFRIP. Upon reasonable notice to another Party, any Party to this MOA may inspect the financial records of another Party related to the PFRIP. Financial records, supporting documents, statistical records, and all other records pertinent to the PFRIP must be retained by all Parties for a period of seven years from the date of termination or expiration of this MOA. If there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the retention period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the retention, whichever occurs later. The Parties to this MOA are subject to the California Public Records Act and shall cooperate with each other in regard to any request for records.

SECTION 6. FURTHER ASSURANCES

6.1 Additional Documents: Each Party will adopt, execute, and make any and all further assurances, documents, instruments, and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the Party’s performance of their obligations under this MOA.

6.2: Compliance with Law. Each Party shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way Item 1e
Attachment 1
DRAFT
4 affect the performance under this MOA. Each Party shall at all times observe and comply with all such ordinances, laws and regulations. Each Party shall be fully responsible for complying with all California public works and public bidding requirements including but not limited to payment of prevailing wage. To the extent required by California law, each Party shall ensure that prevailing wages are paid, that the project budget for labor reflects these prevailing wage requirements, and that the project complies with all other requirements of prevailing wage law. Each Party is responsible for any environmental review necessitated by its project. The other Parties shall not be liable at law or in equity occasioned by failure of another Party to comply with this section.

6.3: Compliance with Terms of EPA Grant Agreement: If Grant is awarded, SVCE shall provide each Party with a copy of the final EPA Grant Agreement. Each Party affirms that it will review the EPA Grant Agreement and agrees to comply with all applicable terms therein and to cooperate and assist SVCE with compliance.

SECTION 7. REPRESENTATIONS AND WARRANTIES
Each Party represents and warrants to all other Parties as follows:

7.1 Authority: Each Party has the full legal right, power, and authority under the laws of the State of California to enter into this MOA and to carry out all of its obligations herein.

7.2 Due Execution: Each Party’s representatives who sign this MOA are duly authorized to sign and bind their respective agency.

7.3 Valid, Binding, and Enforceable Obligations: This MOA has been authorized and executed by each Party and constitutes the legal, valid, and binding agreement of the Parties, and is enforceable according to its terms.

SECTION 8. REMEDIES NOT EXCLUSIVE
Any failure by any Party to perform the responsibilities outlined herein, including all Exhibits attached hereto, shall be deemed a breach of this MOA. In the event of any dispute regarding the proper interpretation of this MOA, the Parties shall first immediately meet and confer to attempt to resolve the dispute. If the dispute remains unresolved, the Parties may agree to mediation or other non-binding resolution processes or may pursue any other remedies available in law or equity. Notwithstanding any other available remedies, Parties must return any Grant disbursements to SVCE that were not utilized consistent with the terms of this MOA or the EPA Grant Agreement. SVCE retains the right to withhold Grant disbursements from any Party whose performance is inconsistent with the terms of this MOA or the EPA Grant Agreement.

SECTION 9. INDEMNIFICATION
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the Item 1e
Attachment 1
DRAFT
5 other Parties, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage, penalty, or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of breach of this MOA or the negligent acts or omissions or willful misconduct of the indemnifying Party, its officers, employees, or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such Party under this MOA. No Party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the breach of this MOA, negligent acts or omissions or willful misconduct or intentional acts of any other Party hereto, its officers, board members, employees, or agents, under or in connection with or arising out of any work authority or jurisdiction delegated to such other Party under this MOA. The obligations set forth in this paragraph will survive the termination and expiration of this MOA.

SECTION 10. SEVERABILITY
The provisions of this MOA shall be severable, and if any clause, sentence, paragraph, provision, or other part shall be adjudged by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this MOA will be valid and binding on the Parties.

SECTION 11. AMENDMENTS
This MOA may only be amended by a written agreement signed by all of the Parties.

SECTION 12. COUNTERPARTS
This MOA may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

SECTION 13. USE OF ELECTRONIC SIGNATURES
Unless otherwise prohibited by law, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by SVCE. For the purposes of this MOA, the approved methods of signing shall be via DocuSign or original ink signature signed in counterpart and scanned over to SVCE via electronic mail.

SECTION 14. INTERPRETATION, PRIOR AGREEMENTS AND AMENDMENTS.

This MOA, including all Exhibits attached hereto, represents the entire understanding of the Parties as to those matters contained herein. In the event that the terms specified in any of the Exhibits attached hereto conflict with any of the terms specified in the body of this MOA, the terms specified in the body of this MOA shall control. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This MOA may be modified only by a written amendment duly executed by the Parties to this MOA.

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6 SECTION 15. NO LEGAL RELATIONSHIP
By entering into this MOA, the Parties are neither forming, nor do they intend to form a partnership, agency, or any other legal entity relationship. No Party is authorized to bind or to act as the agent or legal representative of the other Party for any purpose, and neither Party is granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of any other Party.

SECTION 16. GOVERNING LAW AND VENUE
This MOA has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. In the event that a suit shall be brought by any Party to this MOA, the Parties agree that the venue shall be exclusively vested in the state courts of the County of Santa Clara or, where otherwise appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California.

SECTION 17. NOTICES
Any notices provided under this MOA must be in writing and may be given either by mail or e-mail to the following addresses:

SVCE
Monica Padilla: [email protected]
Anthony Eulo: [email protected]
and
SVCE
333 W. El Camino Real, Suite 330
Sunnyvale CA 94087
Attention: Chief Executive Officer
City of Cupertino
XXX
City of Morgan Hill
Chris Ghione: [email protected]
Tanya Carothers: [email protected]
Barbara Voss: [email protected]
City of Mountain View
XXX
City of San Jose
Carol Boland Whattam
City of San Jose
200 E Santa Clara St., 5th Floor,
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7 San Jose, CA 95113
City of Sunnyvale
XXX
Prospect Silicon Valley
XXX
SPUR
XXX
IN WITNESS OF, the Parties have executed the MOA as of the last date set forth below:
___________________________
Silicon Valley Clean Energy
Date:
_______________________
Approval as to form, Silicon Valley Clean Energy Counsel Date:
___________________________
City of Cupertino
Date:
_______________________
Approval as to form, Cupertino City Attorney
Date:
___________________________
City of Morgan Hill
Date:
_______________________
Approval as to form, Morgan Hill City Attorney
Date:
___________________________
City of Mountain View
Date:
_______________________
Approval as to form, Mountain View City Attorney
Date:

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8 _______________________
City of San José, Director of the Office of the City Manager, Sarah Zarate Date:
_______________________
Approval as to form, San José City Attorney, Arlene Silva Date:
___________________________
City of Sunnyvale
Date:
_______________________
Approval as to form, Sunnyvale City Attorney
Date:
___________________________
Prospect Silicon Valley Chief Executive Officer
Date:
___________________________
SPUR Executive Director
Date:
_______________________
Chief Financial Officer
Date:

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1 EXHIBIT A

PFRIP WORKPLAN
SECTION 1: OVERALL PROJECT SUMMARY AND APPROACH
The Public Facility Resiliency Implementation Project (‘PFRIP’) will be a regional funding source and implementation project for design and construction of publicly owned and operated fuel-switching, electric vehicle (‘EV’) charging, and solar/battery storage projects in Santa Clara County, California. As a Coalition led by Silicon Valley Clean Energy (‘SVCE’), the Cities of San José, Sunnyvale, Morgan Hill, Mountain View, and Cupertino, in collaboration with SPUR and Prospect Silicon Valley (‘ProspectSV’), will implement greenhouse gas (GHG) reduction measures at 62 critical and community-serving facilities all meeting EPA-defined disadvantaged criteria and $49,999,997 worth of electrification projects and supporting performance assessments and community engagement activities.

SECTION 2: RESPONSIBILITIES OF SILICON VALLEY CLEAN ENERGY (“SVCE”) • Act as the Lead Coalition Partner
• Submit a Memorandum of Agreement (“MOA”) signed by all Coalition Partners by July 1, 2024, to EPA
• Establish the Public Facility Resiliency Fund (Fund)
• Ensure timely distribution of the Fund (see Section 3) to the Coalition Partners for use in PFRIP Semi-annual reports including submitting reimbursement receipts to the EPA every six months following award acceptance, on March 31 and September 30, or the closest prior business day, annually. The Project Plans for GHG Performance and Building Design Performance and each’s respective Quality Assurance Performance Plan (QAPP), and the Low Income Benefit Report and Community Engagement Plan, will be submitted by September 30, 2025. The Final Project Report and reimbursement receipts will be submitted by September 30, 2029.

SECTION 3: RESPONSIBILITIES OF ALL COALITION PARTNERS
• City Coalition Partners are responsible for leading the design, construction, inspection, and maintenance of their GHG reduction measures; take an active role in planning and implementing the project equity analysis, performance evaluation, community engagement, and workforce development activities; and fulfilling all reporting requirements, for activities that take place in its jurisdiction.
• City Coalition Partners shall contract for design and construction as needed, within its jurisdiction
• Cooperate and submit all necessary and requested information to SVCE in a complete and timely manner, for SVCE to submit any reports or documentation required by the Grant Agreement.
• Coalition will meet monthly to plan upcoming activities, review recent progress, share news, challenges, lessons learned, and best practices, and coordinate activities. All final report information and receipts will be provided to SVCE by Coalition Partners no later than two weeks prior to a relevant reporting deadline to ensure timely report submittal to the EPA.

Semi-annual reports will be provided on March 31 and September 30, or the closest prior business day, throughout the Grant term until the Final Report due date of September 30, 2029.

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2 • Funding shall be disbursed by SVCE to Coalition Partners as follows:
o SVCE shall develop and distribute a reporting and reimbursement schedule within three months of executing the Grant Agreement that will establish deadlines for the receipt of reports and reimbursement requests and describe the reporting format and contents for the reports. These requirements will be established to comply with the Grant Agreement;
o Coalition partners submit progress reports and reimbursement requests that comply with the Grant Agreement executed with the EPA on or prior to the submittal deadline established by SVCE for the reporting period;
o SVCE shall submit all qualifying and complete reimbursement requests received to the EPA for the reporting period;
o SVCE shall distribute funding to Coalition Partners within 30 days of receiving funding from the EPA.

SECTION 4: RESPONSIBILITIES OF CITY OF CUPERTINO (“CUPERTINO”) • Do all things necessary to implement the following project (“Cupertino Project”): upgrades to the cooling, heating, and water heating components at Quinlan Community Center. The Cupertino Project will install Heat Pump HVAC and Heat Pump Water Heating. The Cupertino Project will include HPWH and HVAC retrofit requiring full construction planning, design, and bid package and is expected to include an 18-month performance period.

SECTION 5: RESPONSIBILITIES OF CITY OF MORGAN HILL (“MORGAN HILL”) • Do all things necessary to implement the following project (“Morgan Hill Project”):

Centennial Recreation Center (“CRC”) Electrification Project, which includes the following components:
• Replacement of 4 gas boilers with electric boilers
• Replacement of the pool heater with an electric heat pump • Replacement of Kitchen appliances with electric appliances • Increase in microgrid battery storage
• Required electrical upgrades to support these enhancements • Installation of an electric vehicle charging unit
Morgan Hill will seek meaningful engagement with low-income and disadvantaged communities continuously for the life of the Grant by providing outreach, engagement, input opportunities, and information about the project in both English and Spanish languages. Morgan Hill will partner with local groups including the public library, AAUW, and climate action groups to reach a wide range of residents. Additionally, Morgan Hill is proposing to install a mural completed by a local artist that will incorporate a clean energy theme. The artwork will be designed to inspire and intrigue across Morgan Hill’s diverse cultural and socioeconomic backgrounds.

SECTION 6: RESPONSIBILITIES OF CITY OF MOUNTAIN VIEW (“MOUNTAIN VIEW”) • Do all things necessary to implement the following projects (“Mountain View Project(s)”):

Resiliency and decarbonization infrastructure improvements in the form of Solar and battery installation, and heat pump HVAC installation at two sites: Mountain View Sports Pavilion at Item 1e
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3 Graham Middle School - 191.5 kW Solar & 2.5 MWh BESS & Heat Pump HVAC and Whisman Sports Center at Crittenden Middle School - - 66.7 kW Solar & 250 kWh BESS Mountain View will engage with low-income and disadvantaged communities throughout the development and implementation of the grant. Mountain View’s Sustainability and Resiliency Division and Multicultural Engagement Program (“MEP”) would partner to provide linguistically and culturally appropriate outreach to incorporate community input and provide updates throughout the grant process. Mountain View is also undergoing other planning processes that will involve community engagement around resiliency infrastructure and programming that can be leveraged for PFRIP. Over the coming year, Mountain View will develop a Community Resiliency Strategy as well as the Parks and Recreation Strategic Plan. Outreach for these projects will include surveys, partnerships with community groups, one-on-one meetings or interviews, and community meetings, many of which will offer translation or interpretation options and childcare. Mountain View will consider community feedback from these processes to inform the CPRG projects.

SECTION 7: RESPONSIBILITIES OF CITY OF SAN JOSE (SAN JOSE) • Do all things necessary to implement the following projects (“San José Project(s)”):

Microgrid construction at six critical facilities:
• Roosevelt Community Center - 200 kW Solar System & 800 kWh BESS1 & Controller • Happy Hollow– Kelley Park Campus - 200 kW Solar System, 1200 kWh BESS & Controller • Fire Stations 23, 32, and 36 – each 75 kW Solar System, 176 kWh BESS & Controller • Fire Training & Emergency Operations Center - 880kWh and 660kWh BESS & Controller The San José Project will also:
• Retrofit 100 gas water heaters at 50 facilities citywide with heat pumps, • Install 60 Level 2 EV chargers at the EOC that will be available for public use, • Develop a Project Website and social media to display PFRIP GHG emissions reductions and milestones in real-time, and
• Hold translated meetings and a celebratory Climate Art Fair to engage community members in climate action and inform them about the facility improvements.

San José’s 100 Heat Pump Water Heater Retrofits at 50 facilities: San José will contract with one its existing vendors for purchase of heat pump water heating (“HPWH”) equipment and conduct installations using existing Citywide Facilities Maintenance Staff or contractors. HPWH will be installed at a rate of 2 per month following an initial training period, sponsored through the Project Work Force Development plan (see Section 9). All projects are expected to be installed and inspected by June 30, 2029.

San José’s Roosevelt Community Center, Happy Hollow-Kelley Park Campus and Fire Station 32 has already been designed and the other two will move immediately to construction bid package procurement. The three projects are expected to have two (2) year performance periods and serve as baseline comparison models for the Design Parameters Analysis. • Four (4) events total will be planned to showcase completed projects and encourage climate action countywide, two by the San José Office of Economic and Cultural Affairs as a Climate Art Fair, and two by SPUR (see Section 10).
• San José will host a Project Website including GHG Dashboard for displaying reduced emissions as projects are completed, and 5 community presentations translated into the 1 Battery Energy Storage System (BESS)
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4 County’s three (3) widely spoken non-English languages of Spanish, Vietnamese, and Mandarin Chinese including live translation for community meetings. • The project includes a focused community engagement plan that will build upon San José’s Climate action plans and City Infrastructure Strategy that are informed by prior extensive community, technical, and stakeholder processes.
• San José partners with the Santa Clara County Office of Labor Standard Enforcement on prevailing wage and wage theft policies to ensure countywide wage equity and prevent wage theft. San José’s Office of Equality Assurance will oversee prevailing wages for the project and help monitor companies who would be contracted for project implementation to ensure that their workers are properly paid for the work they do.

SECTION 8: RESPONSIBILITIES OF CITY OF SUNNYVALE (“SUNNYVALE”) • Do all things necessary to implement the following projects (“Sunnyvale Project(s)”) All-electric rebuild of two critical facilities:

Sunnyvale Project- Fire Station 2 will install (based on initial design estimations):
• 12 electric rooftop packaged heat pump HVAC with optimizers • Up to two 80-gallon electric heat pump water heaters
• 2 built-in induction cooktops
• 4 EV chargers for all-electric fire trucks at the station • 75 kWh Solar + 176 kWh BESS
Sunnyvale Project- Water Pollution Control Plant will install:
• 114 kW Solar System
• 1 Heat Pump Water Heater
• 3 Electric Heat Pump HVAC units and 1 large HVAC heat pump • Electrical Design and Construction
Fire Station 2 project have already been designed and will be ready to move immediately to Permitting, The project is expected to have two year performance periods and serve as baseline comparison models for the Design Parameters Analysis.
• Sunnyvale plans to bolster its engagement with low-income and disadvantaged communities throughout the development and implementation period of the Grant term • Sunnyvale Sustainability team plans to partner with the EAI team to develop outreach materials in Spanish, Mandarin and Tagolog to design linguistically and culturally appropriate outreach materials for engagement throughout the Grant term.

SECTION 9: RESPONSIBILITIES OF PROSPECT SILICON VALLEY (“PROSPECTSV”) • Lead Design Parameters Performance and Workforce Development • Lead the design parameters performance evaluation and workforce development activities • Contract with an experienced engineering team from Point Energy Innovations and IDeAs Consulting to lead the Coalition in establishing a basis of design for each project to be performed under PFRIP. The approach will be as follows and include a QAPP:
o Develop a Roadmap for Community Resilience Center Features (Roadmap). These will be Design Guidelines for essential features of the community resiliency centers included in Item 1e
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5 the project, providing a consistent benchmark for building construction performance, capacity for services, and energy efficiency.
o Develop a PFRIP Standard RFP/RFQ and Mechanical Engineering and Plumbing (MEP) Bid Package: These will be guidelines, scope elements, and team qualifications provided to each City’s project team for securing standardized qualified design and construction services.
o Develop and Implement Decarbonization Retrofit and Resilience Upgrades Assessments:

Review each facility’s pre and post construction conditions, required upgrades, and available funds against the Roadmap, RFP, and Bid Package Guidance to provide project-specific performance metrics assessing build quality and final facility features and service capacity to local community members (e.g. air quality protection, water supply, power resiliency, or shelter). Results of this review would be provided in a project metrics and performance report.
• Lead Workforce Development Activities. Training Modules and Apprenticeship Program will be developed in Year 1. Trainings will be provided to city staff and 50 low income individuals, sponsored by the grant, in years 4-5, with final program evaluation submitted by September 30, 2029. All projects, performance assessments, community engagement, and reports will be completed by September 30, 2029.
• Coordinate a training series for building industry practitioners on building decarbonization and zero-carbon building systems. ProspectSV has partnered with DMG North, a representative of leading HVAC (Heating, Ventilation, and Air Conditioning) equipment manufacturers in Northern California, to establish a Northern California Training Center in the Bay Area. This center will be available for industry training and education over the duration of the Grant period and beyond. DMG North regularly hosts training sessions with Trade Professionals, Professional organizations, Unions, Vocational Schools, Colleges, and Universities. They have committed to being a resource for the industry and to help educate and train others, which will have a far-reaching impact on commercializing this in the marketplace. The training series, to be developed under PFRIP funding in Year 1, would be based on the experience of veteran workforce development professionals with a history of supporting clean technology workforce efforts across the Bay Area. The program will include classroom and webinar training and speaking engagements, but also will leverage the partnerships of professional organizations like Sustainable Purchasing Leadership Council, North American Sustainable Refrigerants Council, International Facilities Management Association, and others to reach the broadest and most relevant stakeholders across the buildings industry value chain. Special attention will be paid to the buildings design and modeling industry through a network of design leaders engaged in as program advisors. The program will be available to the Coalition Partners’ staff as in service training, and up to 50 low income residents seeking journeyman plumbing or electrician credentials, during years 2-5 of the Grant period.

SECTION 10: RESPONSIBILITIES OF SAN FRANCISCO BAY AREA PLANNING & URBAN RESEARCH ASSOCIATION (“SPUR”)
• Lead the Equity Analysis, Community Engagement and GHG Performance • Lead the Coalition Partners and contract with a consultant to conduct the GHG performance analysis. A Quality Assurance Project Plan (“QAPP”) will be developed and submitted by the end of Year 1. Electricity and utility data will be analyzed at each site for a period of at least 2 years preceding the kickoff of construction to provide site specific EUI, Natural Gas Usage, and a calculated GHG Emissions factor baseline comparison. Temporary metering will be Item 1e
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6 used to determine peak loads and energy generation or usage profiles for each installed measure following construction completion. Sites will be monitored for a period of 2 months – 2 years depending on timeline for construction completion (see 3.c below). For sites with longer performance periods, both summer and winter peak monitoring will be assessed in real time. For entirely new facilities such as San José Fire Stations 23 and 36 and Sunnyvale San José Fire Station 2, the avoided GHGs and summer/winter peaks will be modelled based on minimum two month temporary metering and profiles of like counterparts within the project’s portfolio or other similar existing facilities. As projects are assessed for real-time or modelled GHG emissions benefits, the results will be displayed using on online dashboard included in the project website
• SPUR will lead Equity Performance and Community Engagement and submit the Project Plan and Low Income Benefit Report by September 30, 2025, and the Final Evaluation by September 30, 2029. Four events total will be planned to showcase completed projects and encourage climate action countywide, two managed by SPUR. • To determine the Public Facility Resiliency Implementation Project’s GHG-emission reduction impact and community benefits, including the direct and indirect benefits to low-income and disadvantaged communities, SPUR will conduct an assessment to share outcomes and best practices associated with the Project. By the end of Year 1, SPUR will submit a Low Income Benefit Assessment and Equity Analysis Project Plan. Final assessment findings will be shared as a report and will be ready in advance of the five-year grant deadline.

The assessment will generally include:
• An overview of the participating municipalities' public facility building portfolio and why this subset of buildings was chosen for funding.
• A review of the approach of the Project’s “by-equipment” versus “by-building” approach with an explanation of the resiliency upgrades and the decarbonization retrofits and how this approach reduced the impact on operations and other conditions.
• GHG reduction and cost savings calculations
• A review of the Project’s design standards
• Workforce development impacts from the partnership with ProspectSV • Three case studies of representative buildings that underwent resiliency upgrades or decarbonization retrofits: What was the process of retrofit, what was learned, who are communities served by buildings, and what were the community benefits or disbenefits? What specific planning, zoning and permitting issues or experiences that arose during project implementation?
• Equity Analysis (see below for more details)
• Challenges and Best Practices: What can be learned from these projects to support other jurisdictions in making their public facilities more resilient through electrification transitions and other upgrades?
• To operationalize equity in its policy work, SPUR developed the Equity Framework of Analysis - Guiding Questions for Policy Projects. This equity framework was adopted to ensure SPUR’s research methodology and practices are inclusive, collaborative, and responsive to the needs of impacted people. This Framework will guide the assessment of this Project. Guiding questions include: How does this project address the pressing needs of marginalized groups? Are there data gaps? What additional data would help analyze the project to better understand its equity impacts? If so, how can SPUR obtain better data? What past investments/budget allocations Item 1e
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7 have there been to this group/geography? These are the types of questions that SPUR’s assessment of the project will consider in its equity analysis. • As leader of the PFRIP’s Community Engagement and Equity assessment, SPUR will engage the community through surveys and interviews of residents who are served by these facilities, in addition to facility staff members, heat pump and microgrid installers, and other key people engaged in the resilience upgrades and decarbonization retrofits. The findings from this assessment will be shared through a free SPUR public event and regional outreach. SPUR will also support the municipalities in implementing community engagement and public education plans, including co-hosting two public events at municipal facilities that have undergone a resiliency upgrade or decarbonization retrofit. These events are meant to highlight the upgrades made at each facility through a festive community gathering and report back on assessment findings, particularly community benefits achieved through the specific facility’s upgrade or retrofit in addition to benefits achieved across the entire project.

SECTION 11: SCHEDULE OF ACTIVITIES AND DELIVERABLES
Refer to Exhibit C for the full grant application, including a proposed schedule of activities, deliverables, and budget estimates.

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Consolidated Budget Table
Public Facilities Resiliency Implementation Project

BUDGET BY YEAR
COST-TYPE CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL Direct Costs TOTAL PERSONNEL $1,154,236 $981,111 $1,109,626 $1,067,385 $873,498 $5,185,857 TOTAL FRINGE BENEFITS $638,092 $507,853 $583,354 $571,556 $403,076 $2,703,931 TOTAL TRAVEL $200 $200 $350 $3,850 $3,900 $8,500
TOTAL EQUIPMENT $4,234,377 $7,898,698 $2,603,764 $939,304 $4,914,244 $20,590,387 TOTAL SUPPLIES $0 $500 $5,000 $0 $11,100 $16,600
TOTAL CONTRACTUAL $7,220,066 $5,195,311 $2,369,705 $2,440,199 $1,660,932 $18,886,212 TOTAL OTHER $30,000 $343,500 $14,333 $13,633 $16,284 $417,750 TOTAL DIRECT $13,276,971 $14,927,172 $6,686,133 $5,035,927 $7,883,034 $47,809,237 TOTAL INDIRECT $555,640 $431,915 $466,222 $442,749 $294,234 $ 2,190,759.80 TOTAL
FUNDING $13,832,611 $15,359,087 $7,152,355 $5,478,675 $8,177,268 $49,999,997

BUDGET BY PROJECT
Project
Number Project Name Total Cost
1 Silicon Valley Clean Energy (Grant Administration) $1,415,775 2 San Jose Portfolio Project (6 microgrids, EVSE, 100 HPHWs, 1 Website, 5 Translated Community Meetings & Social Media Postings, & Climate Art Fair) $22,365,541 3 Sunnyvale Portfolio Project (2 microgrids, HVAC Heat Pumps, HPWH, EVSE, Induction Cook Tops) $3,606,777
4 Morgan Hill Portfolio Project (Electric Boilers & Pool Heater, Heat Pump HVAC, Electric Kitchen, and EVSE) $3,599,871
5 Mountain View Portfolio Project (2 microgrids) $13,713,123 6 Cupertino Portfolio Project (Heat Pump HVAC & HPHW) $1,951,321 7 SPUR (Community Engagement, Equity, & GHG Performance Assessments) $1,556,411 8 Prospect Silicon Valley (Building Design Performance & Workforce Development) $1,791,177 Total PFRIP Total $49,999,997
45%
4%
100%
% of Total
3%
7%
7%
27%
3%
4%
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1 SECTION 1: OVERALL PROJECT SUMMARY AND APPROACH
The Public Facility Resiliency Implementation Project (PFRIP) will be a regional funding source and implementation project for design and construction of publicly owned and operated fuel-switching, electric vehicle (EV) charging, and solar/battery storage projects in Santa Clara County, CA. As a Coalition led by Silicon Valley Clean Energy (SVCE), the Cities of San José, Sunnyvale, Morgan Hill, Mountain View, and Cupertino, in collaboration with SPUR and Prospect Silicon Valley, will implement greenhouse gas (GHG) reduction measures at 62 critical and community-serving facilities all meeting EPA-defined disadvantaged criteria and $49,999,997 worth of electrification projects and supporting performance assessments and community engagement activities. SVCE will be the coalition lead and submit a Memorandum of Agreement (MOA) signed by all coalition members by July 1, 2024. The MOA will describe the roles and responsibilities of each coalition member in implementing the proposed greenhouse gas reduction measures, including related equity analysis, performance evaluation, community engagement and workforce development activities, and fulfilling all reporting requirements for the grant performance period. SVCE will establish the Public Facility Resiliency Fund (Fund) and ensure timely distribution of the Fund to the coalition’s members for use in PFRIP. Each coalition member City will be responsible for leading the design, construction, and maintenance of its GHG reduction measures; take an active role in planning and implementing the project equity analysis, performance evaluation, community engagement and workforce development activities; and fulfilling all reporting requirements, for activities that take place in its jurisdiction. SPUR will lead the equity, community engagement and GHG reduction performance analyses. Prospect Silicon Valley will lead the design parameters performance evaluation and workforce development activities.

PFRIP will benefit low income and disadvantaged communities throughout the Bay Area by electrifying and fortifying 62 critical facilities countywide such as community shelters and fire stations that serve the communities' most urgent needs during emergencies as first responders or cooling and heating centers, gathering/family reunification spaces and shelters for those without traditional homes or access to personal emergency equipment like generators. Publicly owned and operated facilities such as libraries, cultural facilities, and community or recreational centers are also equitable meeting spaces, providing daily childcare and eldercare programs or access to exercise and computer equipment to low-income individuals. When enhanced with decarbonized assets such as EV charging infrastructure and all-electric equipment and backup power, these spaces will become powerful community resiliency centers providing public charging access, and will move Bay Area cities towards national, state and local decarbonization goals1.
a. Description of GHG Reduction Measures
The Public Facility Resiliency Implementation Project (PFRIP) will implement “Decarbonization Retrofits” that change natural gas powered equipment for electric counterparts in major building systems including Heating, Ventilation, and Air Conditioning (HVAC) replacements, water heating and pumping, and kitchen appliances; and install “Resiliency Upgrades” for green backup power in the form of solar and battery, or microgrids, that may be integrated with public Electric Vehicle Supply Equipment (EVSE). These same measures are listed in the San Benito County and Santa Clara County Priority Climate Action Plan (PCAP), under Measure BE-2 on page 19, (see file 1 such as the Department of Energy’s Decarbonizing the U.S. Economy by 2050 plan, California Air Resources Control Board’s Advanced Clean Fleets Regulation and California’s Clean Energy Transition Plan, Santa Clara County’s Silicon Valley 2.0, and local climate action plans, such as Climate Smart San José, Sunnyvale’s Climate Action Playbook, Morgan Hill’s Climate Action Plan, Mountain View’s Sustainability Action Plan and Cupertino’s CAP 2.0.

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2 CA_SanBenito&SantaClaraCountiesMSAPCAP_SVCE_PFRIP) and were chosen for their transformative impact at achieving net-zero buildings, and wide recognition as the measures that lead to major greenhouse gas reductions in the multiple climate adaptation plans listed above, and many others. Each measure is listed in the Climate Pollution Reduction Implementation Grants (CPRG) Notice of Funding Opportunity, under the Electric Power, Transportation, and Building Sectors, as a recognized greenhouse gas reduction measure. Table 1 shows the locations and planned retrofits.

The GHG reduction measures will be implemented according to the project workplan, and scheduled milestones as described in Section 3 and completed before the end of the grant performance period.

Completion dates are planned to provide a final performance evaluation period for assessing the actual GHG reduction benefit of each constructed measure in each facility. Underlying assumptions associated with this work plan are that projects will be contracted and initiated in a timely fashion as described by the workplan, all equipment will be available for purchase without major assembly line delays, and all additional power supplies needed for electrical system upgrades can be provided by the relevant utility companies within 1-2 years of design completion. Indeed, these same assumptions present project risks to impacting the project timeline, so early coordination with utility and equipment companies will be employed and construction milestones have intentionally been given contingency time and budget inflation to ensure timely deliverables are met. A thorough list of project risks and assumptions will be included in the Quality Assurance Project Plan (QAPP) upon award.

Table 1: List of the proposed GHG reduction measures to be implemented. *Full Site list available in Other Attachments file Areas_SVCE_PFRIP. All projects include the necessary electrical panel and distribution upgrades to support these enhancements.
i. Detailed Descriptions of City Coalition Members’ Sub-Project GHG Reduction Measures:

San José Decarbonization and Resiliency Projects:

Through the regional grant application, the City of San José Public Works Department seeks $22,365,541 in funding for microgrid construction at six critical facilities:
• Roosevelt Community Center - 200 kW Solar System & 800 kWh BESS2 & Controller • Happy Hollow– Kelley Park Campus - 200 kW Solar System, 1200 kWh BESS & Controller 2 Battery Energy Storage System (BESS)
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Number Location Name City Decarbonization Retrofits Resiliency Upgrades Water Heating HVAC Kitchen Solar System Battery System EVSE 1 50 Sites Total* - 100 Retrofits San Jose X
2 Roosevelt Community Center San Jose X X
3 Happy Hollow Park & Zoo-Kelley Park San Jose X X
4 Fire Station #32 San Jose X X
5 Fire Station #23 San Jose X X
6 Fire Station #36 San Jose X X
7 Fire Department Training & Emergency Operations Center San Jose X X 8 Fire Station #2 & Joint Fire Academy Training Center Sunnyvale X X X X X X 9 Water Pollution Control Plant Cleanwater Center Sunnyvale X X 10 Centennial Recreation Center Morgan Hill X X X X X
11 Mountain View Sports Pavilion Mountain View X X X
12 Whisman Sports Center Mountain View X X
13 Cupertino Quinlan Community Center Cupertino X X
3 • Fire Stations 23, 32, and 36 – each 75 kW Solar System, 176 kWh BESS & Controller • Fire Training & Emergency Operations Center - 880kWh and 660kWh BESS & Controller The project will also:
• Retrofit 100 gas water heaters at 50 facilities citywide with heat pumps, • Install 60 Level 2 EV chargers at the EOC that will be available for public use, • Develop a Project Website and social media to display PFRIP GHG emissions reductions and milestones in real-time, and
• Hold translated meetings and a celebratory Climate Art Fair to engage community members in climate action and inform them about the facility improvements.

All 56 San José facilities are located within Justice-40 recognized Low Income and Disadvantaged (LIDAC) census tracks.

Roosevelt Community Center and Happy Hollow Park and Zoo are active community emergency shelters used for disasters, heating, and cooling relief. The centers are part of a network of local emergency shelters that are typically activated between 1-2 times per month, operating year-round as needed.

Roosevelt Community Center also provides daily childcare and elder care programs, and community access to meeting rooms, computers, exercise equipment, locker room, and a commercial kitchen.

Happy Hollow Park and Zoo covers a large campus including the Association of Zoos and Aquariums-certified zoo caring for rare and endangered animals, the Leininger Community Center offering community meeting rooms and commercial kitchen, and Kelley Park which contains a sanitary pump station requiring constant electrical power to prevent sewage entering nearby Coyote Creek. Fortifying these critical facilities with solar and battery backup power will provide full electrification potential to convert them to resiliency centers, ensure their use as emergency shelters during wide scale power outages or disasters, and protect natural resources including local water quality.

Fire Stations 23, 32, and 36 will be newly built critical facilities with all-electric construction. Existing buildings of Fire Stations 23 will be demolished, and rebuilt, while Fire Station 32 is a newly built as-yet unoccupied facility and Fire Station 36 will be an entirely new facility adding emergency protection to previously unprotected disadvantaged communities in South-Central San José.

The Fire Training and Emergency Operations Center (EOC) is one of two regional fire training facilities that trains firefighters stationed throughout Santa Clara County, and the central Emergency Operations Center for the 10th largest City in the United States. The EOC will be used as the countywide central emergency center during Super Bowl 2026. The site currently has a 416.6 kW solar system in place but needs two batteries to complete its microgrid design. The microgrid to be installed through the project will ensure continuous operation of the EOC during disasters, including the 60 Level 2 EV chargers that will be directly linked to the microgrid system. The EV chargers installed through the project will ensure that public EV charging is available in San José both during times of emergencies and daily, serving the disadvantaged community in which they will be built.

The project will also retrofit 100 gas water heaters at 50 community-serving facilities with heat pump models, providing significant greenhouse gas reductions to the countywide building portfolio. These community-serving facilities span the City’s disadvantaged neighborhoods and include 4 emergency shelters, 17 community and youth centers, 9 libraries, 8 fire stations, 5 cultural and recreational facilities, 6 municipal offices or corporation yards, and 1 police facility. Retrofitting water heaters in these facilities will ensure their beneficial services and improve air quality within their disadvantaged communities.

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4 Sunnyvale Decarbonization and Resiliency Projects:

The City of Sunnyvale seeks $3,459,281 in funding for an all-electric rebuild of two critical facilities: Fire Station 2 and the Sunnyvale Water Pollution Control Plant.

Fire Station 2 is one of two regional fire training facilities to offer numerous required training courses for firefighters throughout Santa Clara County and serves two LIDAC communities in Sunnyvale. The Fire Station is also one where the community and firefighters can engage in events like the annual pancake breakfast. With the number of visitors and trainees coming through the Station, electrification of this building will have far reaching impacts in the community. Fire Station 2 meets multiple 90 percentile thresholds including PM 2.5 in the air, lack of green space, proximity to hazardous waste facilities and superfund sites, and traffic proximity and volume.

The project will install (based on initial design estimations):
• 12 electric rooftop packaged heat pump HVAC with optimizers • Up to two 80-gallon electric heat pump water heaters
• 2 built-in induction cooktops
• 4 EV chargers for all-electric fire trucks at the station • 75 kWh Solar + 176 kWh BESS
The Sunnyvale Water Pollution Control Plant is one of the oldest treatment plants on the West Coast. It works around the clock to provide essential wastewater treatment for all Sunnyvale residents and businesses. The Cleanwater Center is one of the necessary upgrades planned for this aging facility.

Designed to LEED Gold standards, it will be an operational hub for the 67-person team who operates, maintains, and manages the Plant. It will also serve as the welcome center for the public, both visitors and participants in tours of the Plant made available to the public. The Cleanwater Center meets multiple 90 percentile thresholds including PM 2.5 in the air, expected agriculture loss rate, and projected wildfire risk.
• The project will install:
• 114 kW Solar System
• 1 Heat Pump Water Heater
• 3 Electric Heat Pump HVAC units and 1 large HVAC heat pump • Electrical Design and Construction
Electrifying public buildings comes with increased costs and Play 2.2 of the City’s Climate Action Playbook aims to eliminate fossil-fuel powered appliances and/or sources in public buildings upon rebuild or significant remodel. While Sunnyvale has established this goal, increasing construction costs and additional costs of electrification can be a burden. To ensure the City can continue to meet its CAP goals, grants to offset costs are required. Therefore, offsetting these costs through CPRG dollars will support the City in meeting its ambitious building decarbonization target to electrify 44% of existing buildings by 2030. Modernizing and electrifying Fire Station 2 and the Cleanwater Center will allow the City to continue to prioritize future public building decarbonization projects and foster healthy and safe working and training conditions for local firefighters and essential staff that serve Sunnyvale’s diverse population and underserved communities.

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5 Cupertino Decarbonization Project:

Through the regional grant application, the City of Cupertino Works Department seeks $1,951,321 in funding for upgrades to the cooling, heating, and water heating components at Quinlan Community Center.
• The project will install: Heat Pump HVAC and Heat Pump Water Heating Quinlan is a multi-use building providing staff office space, classrooms for recreation classes, space for the Cupertino Historical Society, and rentals. Quinlan is also used when the City needs to activate a shelter for heating, cooling, air quality, or most recently as space for displaced residents after a fire at a multi-family complex. The HVAC system at Quinlan was described in a building condition assessment study as being “in poor condition and well past its useful service life… [and is] an outdated pneumatic system that does not allow for remote monitoring or modern energy efficiency strategies.” Ventilation is not sufficient in the dance and fitness rooms, leading to doors being propped open. The 27,000 square foot facility was built in 1989 and the heating and cooling equipment is original to the building.

Morgan Hill Decarbonization and Resiliency Project:

Through the regional grant application, the City of Morgan Hill seeks $3,599,871 in funding to support the Centennial Recreation Center (CRC) Electrification Project, which includes the following components:
• Replacement of 4 gas boilers with electric boilers
• Replacement of the pool heater with an electric heat pump • Replacement of Kitchen appliances with electric appliances • Increase in microgrid battery storage
• Required electrical upgrades to support these enhancements • Installation of an electric vehicle charging unit
The proposed project will serve the entire City population including the City’s significant low-income population. The project will allow the CRC to act as a resilient heating, cooling, and gathering center for the community which will especially benefit residents who may not have heating or cooling at their own homes. Public facility electrification is a community-driven goal that was included by a community working-group in the City’s adopted CAP.

Mountain View Decarbonization and Resiliency Projects:

The City of Mountain View seeks $13,860,618 in funds for resiliency and decarbonization infrastructure improvements in the form of Solar and battery installation, and heat pump HVAC installation at two sites:
• Mountain View Sports Pavilion at Graham Middle School - 191.5 kW Solar & 2.5 MWh BESS & Heat Pump HVAC
• Whisman Sports Center at Crittenden Middle School - - 66.7 kW Solar & 250 kWh BESS These retrofits and installations will support the middle schools’ operations, energy resiliency, and critical heating and cooling during extreme weather events. The middle schools serve 877 and 590 students respectively and allow public use of the facilities. Daily indoor air quality will be improved for students, staff, and the public. Both sites are designated community shelters used during climate-related Item 1e
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6 and other emergencies, and the microgrids will ensure their intended emergency use. These projects support the City of Mountain View’s goal to provide a livable community for all, supporting sustainability and resiliency.
b. Demonstration of Funding Need
Bay Area cities are struggling to meet decarbonization goals due to the high cost of electrification equipment paired with lack of capital dollars available in many cities’ General Funds, and inability to generate revenue within capital budgets. Bay Area cities are therefore looking to the Federal Infrastructure Bill for desperately needed assistance in meeting these ambitious goals, of which the CPRG represent the most significant funding opportunity to date. Other funding opportunities were either not awarded, deemed ineligible or insufficient for meeting individual Bay Area cities’ resiliency needs. The CPRG alone offers Santa Clara County Cities an opportunity to create zonal decarbonization, a wide variety of greenhouse gas reductions and conduct portfolio-wide building electrification and resiliency that will enhance the quality of their residents' lives without further burdening California taxpayers who already pay some of the highest taxes and energy rates in the nation.

While the Santa Clara County Cities are committed to electrifying public buildings, costs for electrification improvements are beyond what is available in General Funds, and Public Works Departments are unable to generate revenue through special fees. For this reason, the San José Budget Office, for example, discourages the use of loans and is generally unable to take advantage of tax incentives without upfront funding sources. As another example of funding challenges, in 2023 the City of Cupertino lost approximately 75% of its sales tax revenue because of a state audit of a local vendor.

Resulting budget cuts have made advancing modernization projects exceedingly difficult, so outside funding must be sought. While there are tax incentives such as the Inflation Reduction Act (IRA) direct pay available for solar and battery projects, they do not cover full costs. The City of Mountain View conducted an analysis of available federal and state funding sources that revealed that there is not a comparable funding opportunity to the CPRG which would cover the funding gap needed for solar and battery on just its two locations.

Santa Clara County cities explored federal funding sources in 2023 to cover the costs of needed electrification improvements, particularly for microgrid systems, without successful project fit. The EPA’s GHG Reduction Fund Solar for All program covers residential solar only, and therefore is not an eligible funding opportunity for public facilities. Sunnyvale explored the Energy Efficiency Block Grant program for funds to support public facility electrification, however Sunnyvale’s share at under $200,000 was insufficient to offset construction and equipment costs. San José staff prepared sub-applications for both the Federal Emergency Management Agency (FEMA)’s Building Resilient Infrastructure and Communities and Hazard Mitigation Grant Program grants, which are widely considered to be the two most notable federal grants offering microgrid eligibility but were advised by California representative staff to withdraw due to inability to create a positive Benefit-Cost Analysis (BCA) analysis, and conflicting project needs. FEMA-funded equipment may be used as emergency measures only, which precludes use of microgrids for daily energy shaving and thus significantly reduces their GHG reduction benefit. FEMA’s BCA metrics consider microgrid systems to be a type of generator, thus are not optimized for microgrid applications. Finally, FEMA standards do not consider power outages due to rolling blackouts, brownouts, Planned Power Safety Shutoff (PSPS), or other non-federally declared disasters eligible events for BCA analysis or use of FEMA- funded equipment. Bay Area municipalities need to install microgrid systems as emergency power backup for a myriad of non-federally recognized emergencies Item 1e
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7 such as storm-driven outages, locally centered fires, and minor earthquakes, and mitigating effects of planned outages or rolling blackouts that have become more common in Northern California as the electric grid is strained during summer and fall heat waves. While FEMA does not recognize these events as emergencies, Bay Area residents still experience them as such and require refuge during them.

Staff explored recent California state funding options and incentives for covering costs of microgrid equipment implementation or planning. The recently announced GFO-23-403 - Local Government Building Decarbonization Challenge and Integrated Climate Adaptation and Resiliency Program (ICARP)’s Extreme Heat Resiliency grants do not offer significant enough funding amounts for implementing regional GHG reductions. San José staff applied to the ICARP Regional Resiliency Planning Grants program in June 2023 for a Microgrids Roadmap Planning Grant but were not awarded. The San José City Manager's Office was awarded an Adaptation Planning Grant through ICARP that will be used to create a citywide climate adaption plan that will include the implementation elements listed in this application among a variety of climate priorities.

Staff chose to include EVSE in this proposal due to previous EVSE grant incompatibility or lack of success.

Staff are exploring ICARP’s GF-23-306 grant program but due to the 100-port minimum, the EVSE projects included in this proposal do not meet that program’s minimum requirements. San José, Sunnyvale, and Morgan Hill explored the Department of Transportation (DOT) Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. The City of Morgan Hill found that CFI did not allow for installation of chargers at key local locations, including the City’s recreation center which is a local hub, due to corridor-proximity requirements; and Sunnyvale Fire Station 2 also had incompatible project fit.

The City of San José submitted applications for both CFI’s Community and Corridor implementation funding grants in June 2023 but were awarded neither.

Finally, the Cities of San José and Sunnyvale investigated both state and federal earmarks for assistance; Sunnyvale was unsuccessful, and San José’s individual infrastructure needs far outweigh the funding cap of these programs, making the listed microgrid projects in particular ineligible for earmarks. Finally, the outlook is not good for California state sponsored earmarks, and possibly grants as well with the upcoming expected State budget deficit. Tax-based revenue is the only option, aside from grants, for generating new funding and seen as last resort that should only be leveed on citizens if grant sources do not produce results. As stated above, Santa Clara County Cities are looking to the Federal Infrastructure Bill for much needed assistance to meet resiliency goals without increasing financial burdens to our low income and disadvantaged citizens.

The CPRG grant will provide much-needed funding for a portfolio of decarbonization, microgrid, and EVSE projects throughout Santa Clara County that cannot be matched by any other funding source available within the last 18 months. The funding request in this proposal would cover the gap between existing IRA and other federal/state incentives, and the full cost of the projects, for a portfolio of GHG reduction measures at 62 large public facilities achieving zonal decarbonization in Santa Clara County. c. Transformative Impact
Market transformation of emerging GHG emission reduction technology––While low-pollution equipment like heat pumps have matured technologically, they remain stuck in an “early adopter” stage in much of the US market, characterized by low market penetration compared with gas counterparts.

There’s reason to believe that, as the market matures, the cost of heat pumps will drop significantly, and market penetration of electric appliances will consequently accelerate as it becomes affordable relative Item 1e
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8 compared to gas-fired appliances.
3 A National Renewable Energy Laboratory study projects that costs for HVAC heat pumps and heat pump water heaters will decrease by 30%–40% and 50%–55%, respectively, by 2050.
4 These cost reductions will be driven by innovation spurred by research and development funding, changes in consumer choice that increase demand, and consequent increases in heat pump production. The speed and success of this market transformation will have enormous implications for California’s climate goals–gas heating equipment in homes and businesses is still responsible for roughly 10% of California’s total greenhouse gas emissions.5
In addition, in 2023, the Bay Area Air Quality Management District (BAAQMD) passed a “first in the nation” rule phasing out the sale of gas heating in the Bay Area by 2031. As a result of this strong and unequivocal signal to the market, Bay Area communities are already well-positioned to accelerate the regional market development of heat pumps. However, further heat pump market maturation is needed before the phase-out to improve affordability relative to gas appliances and market integration.

PFRIP will support the market transformation by:

1. Increasing demand for heat pumps through the replacement of 106 gas water heaters with heat pump water heaters at 54 facilities countywide. Heat pumps baseline costs remain higher than their gas counterparts. Additional investments from cities and municipalities are needed to sustain market momentum and bring heat pumps into price competitiveness with gas equipment. Investments in public facilities can accelerate the market and contribute to overall heat pump affordability relative to gas appliances in two key ways:
a. Demand signal: PFRIP represents a sustained public investment in turnkey projects with predictable timelines and appliance investments. This can send a high profile and robust demand signal to manufacturers and distributors and boost the regional supply chain for zero-pollution equipment (See Technical Appendix, page 1 for Cost Projections Figure). b. Workforce capacity: PFRIP proposes investments in workforce training for contractors.

Contractor training remains a critical bottleneck in the installation of electric equipment, and consequently the cost, complexity of retrofits, and overall market demand for heat pumps. Training contractors in building electrification will contribute to market penetration of heat pumps and represent a sustained benefit for Santa Clara County communities as these newly trained workers continue to install zero-pollution equipment well beyond the lifespan of the PFRIP.

2. Contributing to regulatory and technical lessons: Siting and installing electrical equipment in buildings often requires careful planning, navigation of incentives, and overcoming technical and regulatory hurdles. These challenges can increase the cost of zero-pollution equipment, slowing demand, and stalling market transformation. Federal investment in public facility electrification will provide city planners, elected officials, and energy providers with an up-close experience 3 Rosenow, Jan, Duncan Gibb, Thomas Nowak, and Richard Lowes. 2022. “Heating up the Global Heat Pump Market.” Nature Energy 7 (10): 901–4. doi:10.1038/s41560-022-01104-8.
4 Feinstein, Laura. 2024. “Closing the Electrification Affordability Gap.” SPUR. https://www.spur.org/publications/spur-report/2024-02- 26/closing-electrification-affordability-gap.page 15, see Technical Appendix for Figure T1, page 1 5 “Zero-Emission Space and Water Heaters - Frequently Asked Questions (FAQs).” 2023. California Air Resources Board (CARB).

May. https://ww2.arb.ca.gov/our-work/programs/building-decarbonization/zero-emission-space-and-water-heater-standards/faq.

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9 with electrification for diverse building types. This in turn will drive the development of smart policies to address regulatory and technical frictions. Some example lessons might include:
a. Panel and service upgrades: Installing new electrical equipment, like heat pumps, risks triggering electrical panel and service upgrades, which can increase upfront costs, and require utilities to invest in additional distribution infrastructure and increase electric rates for its customers. Piloting the electrification of public buildings will generate lessons in optimizing panel load for medium and large-scale buildings to avoid panel and service upgrades. These lessons can in turn inform how municipalities encourage and support building electrification across the South Bay.
b. Learning to reduce regulatory and “red-tape” barriers: Regulatory barriers exist to siting, installing, and permitting heat pumps. These barriers vary across jurisdictions. By engaging in turnkey programs, Santa Clara municipalities can identify changes to city ordinances and permitting processes that can smooth the siting and installation of electric equipment.
c. Electrification planning for localities: Building electrification planning resources, such as Switch is On, Quit Carbon, and regional and local “concierge” services, are making electrification planning easier. However, navigating local peculiarities in contractor matching, available incentives, building types, and permitting and building ordinances, remain a challenge at all scales of building electrification. PFRIP will spur the creation of new electrification planning resources that are tailored to local building stocks, legal realities, contractor services, and incentives.

3. Education: There is a need to educate distributors, contractors, cities, and residents about zero-pollution equipment, and pathways to electrification. Electrifying public buildings allows cities to lead by example and offer examples of building electrification that are highly visible for the wider community. Through contractor education, the PFRIP can prompt contractors to promote the installation of heat pumps over gas water heaters. Through public education, the PFRIP can prompt residents to switch out gas water heaters for heat pumps more quickly than the BAAQMD phase-out requires.

Santa Clara County is at the forefront of pioneering research and innovative practices aimed at significantly reducing greenhouse gas emissions. Microgrids and EVSE technology reflect similar trends for pricing, adoption and needs for market expansion as discussed above for heat pumps. For example, additional EVSE at public facilities will accommodate a rapidly transitioning personnel vehicle market. 6–
San José saw the fastest growth in EVs of any major US city. These Cities have embraced a dynamic business incubation approach that melds participatory design with a unified commitment to slashing GHG emissions, fostering a vibrant ecosystem of innovative solutions. This approach is poised to unlock novel pathways, policies, and programs with potential for replication beyond their borders.

SECTION 2: IMPACT OF GHG REDUCTION MEASURES
a. Magnitude of GHG Reductions from 2025 through 2030
6 Source: Nadia Popovich, "The Bay Area Leads the National Shift to Electric Vehicles" New York Times. https://www.nytimes.com/2024/03/12/us/bay-area-electric-vehicles.html Item 1e
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10 According to the San Benito County and Santa Clara County MSA Priority Climate Action Plan (PCAP), Santa Clara County has 630 municipally owned buildings with 53,200 square feet (sqft) of building space with a collective GHG reduction potential of at least 32,970 MT CO2for the 2025-2030 period.

Collectively buildings account for 43% of greenhouse gas emissions in Santa Clara County, with 23% of that coming from natural gas appliances.

Pilot implementation will achieve widescale decarbonization of major appliances and additional decarbonization via microgrid resiliency technology and EV charger infrastructure at 62 very large facilities in Santa Clara County. Based on the PCAP, each building has an average 2025-2030 period reduction potential of 52.33 MT CO2. However, based on a simple per square foot (sqft) estimate, PFRIP measures implemented can reduce greenhouse gas emissions by up to 0.62 MT CO2 per sqft for the 2025-2030 period. Based on the San Jose HPWH cohort of known building gross floor area (GFA), the PFRIP Coalition has potential GHG reduction of over 2,100,860.18 MT CO2. These GHG Reduction calculations are available in the GHGcalcs_Silicon Valey Clean Energy _PFRIP.xlsx, Tab entitled “PCAP Calcs”.

Staff also conducted a benchmarking analysis on a subset of available buildings’ energy data to scope the GHG reduction potential for the pilot portfolio utilizing the EPA’s ENERGY STAR Portfolio Manager (ENERGY STAR). The data exported from ENERGY STAR supports the hypothesis that the annual emissions reduction potential from these measures will be much greater than indicated in the PCAP, as emissions reductions for the San José subset of heat pump water heater replacements alone showed potential direct GHG savings of at least 1239.5 MT CO2for 2025-20307, plus indirect GHG emissions savings of 1831.55 MT CO2, or 3,245 MT CO2.
b. Magnitude of GHG Reductions from 2025 through 2050
According to the PCAP, Santa Clara County’s 630 municipally owned buildings have a collective GHG reduction potential of at least 655,774 MT CO2for the 2025-2050 period, providing an average per building reduction estimate of 1040.91 MT CO2for the period.

Pilot implementation will achieve widescale decarbonization of major HVAC and heating appliances and additional decarbonization via microgrid resiliency technology and EV charger infrastructure at 62 facilities in Santa Clara County. Based on the PCAP, measures implemented can reduce greenhouse gas emissions by up to 64,536 MT CO2for the 2025-2050 period.

According to San José ENERGY STAR analysis, the annual emissions reduction potential from these measures could be much greater than indicated in the PCAP, as emissions reductions for the San José subset of heat pump water heater replacements alone showed potential direct GHG savings of at least 30987.5 MTCO2 for 2025-2050, plus indirect GHG emissions savings of 45788.75 MTCO2 by 2050, or 76776.25 MT CO2.
c. Cost Effectiveness of GHG Reductions
According to the PCAP, the total average cost effectiveness for the period of 2025 -2030 will be at least $49,999,997/3,245 MT CO2 = $15,409.90 per MT CO2 by 2030, on average. The total cost of San José’s heat pump replacements will be $1,684,035.38 including all equipment, labor, permitting, and staff 7 Conservative assessment assumes all replacements will be completed by 2029, with only one year of operation. Per work plan, ~24 units per year will be installed, creating additional expected GHG savings for the 2025-2030 time period that will be assessed in the project performance evaluation.

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11 oversite, so the total cost effectiveness potential of these measures alone could be as efficient as $548.36 per MT CO2 by 2030 per heat pump replacement.
d. Documentation of GHG Reduction Assumptions
The PCAP emission potential benefits were calculated using IPCC recommended methods and under an EPA-approved QAPP. However, this analysis used a very conservative estimate of countywide building counts only that did not include other types of non-building facilities, such as pools, bathrooms, and pump stations, that are included in the PFRIP portfolio, and estimated emissions based on an average per building energy usage and local utility provider fuel mix specifications rather than actual usage.

Details about the accounting methods used in the PCAP can be found in the attached PCAP copy and relevant sections have been provided in the Technical Appendix, Techappx_Silicon Valley Clean Energy_PFRIP.

According to the Natural Resources Defense Council (NRDC)8, heat pump water heater conversion can reduce onsite emissions by up to 50-70%. Microgrids can provide the potential for full electrification of a building combined with power savings during times of peak grid demand, such as summer and fall 5-9 pm hours, or during times when the grid is typically gas power plant fed, such as 12-4 am.

Staff also conducted a benchmarking analysis to scope the GHG reduction potential for the pilot portfolio utilizing the EPA’s ENERGY STAR Portfolio Manager (ENERGY STAR) and real building energy usage values on a subset of available buildings’ energy data. 12 months of Electricity and gas utility data from each of the City of San José’s 50 planned heat pump retrofit sites were entered to ENERGY STAR for the calendar year of 20239to provide a 2023 annual Direct GHG Emissions (Metric Tons CO2e) and Indirect (Location-Based) GHG Emissions (Metric Tons CO2e) value for each building. Data was exported from ENERGY STAR and applied to the heat pump water emissions reductions factor of 50% for each location to achieve an expected annual emissions reduction. The export table including relevant building ENERGY STAR IDs and spreadsheet calculations are available in the Technical Appendix spreadsheet, GHGcalcs_Silicon Valley Clean Energy_PFRIP.

Cost effectiveness values were calculated using the EPA’s required cost effectiveness calculation equation applied to 1) whole cost of all PFRIP measures (including all budget categories) divided by the Sum of Quantified GHG reductions from 2025-2030 according to the PCAP and 2) whole cost of San José heat pump conversions (including all budget categories) alone divided by the Sum of Quantified GHG reductions from 2025-2030 according to the ENERGY STAR analysis. Additional details about the GHG Reduction Assumptions and methods used to calculated are available in the in the Technical Appendix.

SECTION 3: ENVIRONMENTAL RESULTS – OUTPUTS, OUTCOMES, AND PERFORMANCE MEASURES a. Expected Outputs and Outcomes
The project will assess output and outcome metrics in alignment with the PCAP, and in pursuit of the actual GHG benefit, comparing energy and GHG values pre-installation to post-installation at all existing facilities.

The following output metrics are included in the PCAP and will be quantified:
8 Electric Heat Pumps Can Slash Emissions in California Homes (nrdc.org) 9 In a few instances 2023 data was not fully available, so 2022 values were used. The appendix provides details about the calculations and includes the ENERGY STAR data output.

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12 • Number of facilities retrofitted
• Number of carbon-free appliances purchased or installed In addition, the project will assess the following outcomes:
• Average energy savings per building, both as electricity and natural gas usage • Average energy cost savings per building, both as electricity and natural gas usage • Average Energy Usage Intensity (EUI) reduction per building • Total quantity of avoided GHG emissions as calculated from real time energy use, production, an/or storage in microgrids and EVSE
• Total quantity of GHGs reduced from natural gas appliances switched to electric • Amount of reduced purchased fuel by fuel type
• Assess feasibility of quantifying CAP and HAP emissions reduction • Actual Cost effectiveness of avoided GHGs
• Assess feasibility of avoided CAP and HAP emissions
b. Performance Measures and Plan
i. GHG Reduction Performance:

Immediately following award acceptance, SPUR will lead the Coalition to select a consultant to conduct the GHG performance analysis. A QAPP will be developed and submitted by the end of Year 1. Electricity and utility data will be analyzed at each site for a period of at least 2 years preceding the kickoff of construction to provide site specific EUI, Natural Gas Usage, and a calculated GHG Emissions factor baseline comparison. Temporary metering will be used to determine peak loads and energy generation or usage profiles for each installed measure following construction completion. Sites will be monitored for a period of 2 months – 2 years depending on timeline for construction completion (see 3.c below).

For sites with longer performance periods, both summer and winter peak monitoring will be assessed in real time. For entirely new facilities such as San José Fire Stations 23 and 36 and Sunnyvale San José Fire Station 2, the avoided GHGs and summer/winter peaks will be modelled based on minimum two month temporary metering and profiles of like counterparts within the project’s portfolio or other similar existing facilities. As projects are assessed for real-time or modelled GHG emissions benefits, the results will be displayed using on online dashboard included in the project website, described in Sections 3c and

4. ii. Work Plan Performance: Design Guidelines and Evaluation The Public Facility Resiliency Fund fuels an ambitious set of facility upgrades to establish a network of community resilience centers serving disadvantaged and vulnerable communities across Santa Clara County. It is critical each location will produce a consistent set of facility features and service capacity, based on local needs. To that end, Prospect Silicon Valley, (ProspectSV) with an experienced engineering team from Point Energy Innovations and IDeAs Consulting, will lead the Coalition to establish a basis of design for each project to be performed under PFRIP. The approach will be as follows and include a QAPP:
• Develop a Roadmap for Community Resilience Center Features (Roadmap). These will be Design Guidelines for essential features of the community resiliency centers included in the project, providing a consistent benchmark for building construction performance, capacity for services, and energy efficiency.

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13 • Develop a PFRIP Standard RFP/RFQ and Mechanical Engineering and Plumbing (MEP) Bid Package: These will be guidelines, scope elements, and team qualifications provided to each City’s project team for securing standardized qualified design and construction services. • Develop and Implement Decarbonization Retrofit and Resilience Upgrades Assessments: Review each facility’s pre and post construction conditions, required upgrades, and available funds against the Roadmap, RFP, and Bid Package Guidance to provide project-specific performance metrics assessing build quality and final facility features and service capacity to local community members (e.g. air quality protection, water supply, power resiliency, or shelter). Results of this review would be provided in a project metrics and performance report. c. Authorities, Implementation Timeline, and Milestones SVCE is a Joint Powers Authority eligible to lead this grant10, and will establish the Public Facility Resiliency Fund (Fund) ensuring timely project reimbursement and distribution of the Fund to the Coalition’s members for use in the PFRIP. Each coalition member City will be responsible to lead design, construction, and inspection of its GHG reduction measures; take an active role in planning and implementing the project equity analysis, performance evaluation, community engagement and workforce development activities; and fulfill all reporting requirements, for activities that take place in its jurisdiction. SPUR will lead the Equity Analysis, Community Engagement and GHG Performance. Prospect Silicon Valley will lead Design Parameters Performance and Workforce Development. Each Coalition member City has the authority to carry out its proposed measures, and will contract for design and construction as needed, within its jurisdiction. Assistance will be required from Pacific Gas and Electric (PG&E), the local utility provider, for installing electrical panel and transmission related upgrades to accommodate increased electrical capacity at each site.

Major Workplan Milestones:
a. Administration and Reporting: Prior to grant award and acceptance, SVCE will lead development and submittal of the Coalition’s Memorandum of Agreement (MOA) by July 1, 2024. The Workplan is expected to initiate with grant award by October 1, 2024, and complete five years later by September 30, 2029. Semi-annual reports including reimbursement receipts will be submitted to the EPA every six months following award acceptance, on March 31 and September 30, or the closest prior business day, annually. The Project Plans for GHG Performance and Building Design Performance and each’s respective Quality Assurance Performance Plan (QAPP), and the Low Income Benefit Report and Community Engagement Plan, will be submitted by September 30, 2025. The Final Project Report and reimbursement receipts will be submitted by September 30, 2029. 10 Silicon Valley Clean Energy’s Joint Powers Authority Charter may be viewed in the file Attachment, Executed JPA_SVCE_PFRIP.

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SVCE Project Management & Reporting
Year 1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Quality Assurance Performance Plan Submittal, inlcuding all Performance Project Plans
Completed by Sep 30, 2025
Semi-Annual Reports Submittals 1each by Mar 31& Sep 30 1each by Mar 31& Sep 30 1each by Mar 31& Sep 30 1each by Mar 31& Sep 30 1each by Mar 31& Sep 30 Low Income Benefit Report & Community Engagement Plan
Completed by Sep 30, 2024
Final GHG & Design Parameters Performance, Equity Analysis, & Workforce Development Reports
Completed by Sep 30, 2029
Final Report Submittal Completed by Sep 30, 2029
14 b. Decarbonization Projects:
i. San José’s 100 Heat Pump Water Heater Retrofits at 50 facilities: The City of San José will contract with one its existing vendors for purchase of heat pump water heating (HPWH) equipment and conduct installations using existing Citywide Facilities Maintenance Staff. HPWH will be installed at a rate of 2 per month following an initial training period, sponsored through the Project Work Force Development plan (see Section 5). All projects are expected to be installed and inspected by June 30, 2029. ii. The City of Cupertino’s project will include HPWH and HVAC retrofit requiring full construction planning, design, and bid package and is expected to include an 18-month performance period. c. Resiliency Upgrades at Pre-Designed Facilities: San José’s Roosevelt Community Center, Happy Hollow-Kelley Park Campus and Fire Station 32, and Sunnyvale’s Fire Station 2 projects have already been designed. Fire Station 32 will be ready to move immediately to construction, Fire Station 2 to Permitting, and the other two will move immediately to construction bid package procurement. The four projects are expected to have two year performance periods and serve as baseline comparison models for the Design Parameters Analysis.

Item 1e
Attachment 1
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San Jose
50 Sites Total - 100 HPHW Retrofits
Year1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting 22 total by Sep 30 46 total by Sep 30 70 total by Sep 30 94 total by Sep 30 100 Total by June 30 Installation - HPWH
22 total by Sep 30 46 total by Sep 30 70 total by Sep 30 94 total by Sep 30 100 Total by June 30 Inspection 22 total by Sep 30 46 total by Sep 30 70 total by Sep 30 94 total by Sep 30 100 Total by June 30 Performance Period 22 total by Sep 30 46 total by Sep 30 70 total by Sep 30 100 Total by Sep 30 Cupertino
Cupertino Quinlan Community Center
Year1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X X
Bid Package Procurement & Construction - HPWH, HVAC X
Inspection X
Performance Period X X
San Jose
Roosevelt Community Center
Year1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Bid Package Procurement & Construction - Solar, BESS X
Inspection X
Performance Period X X Project Complete
San Jose
Happy Hollow Park & Zoo-Keiley Park
Yearl Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Bid Package Procurement & Construction - Solar, BESS X
Inspection X
Performance Period X X Project Complete
San Jose
Fire Station #32
Year1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 -9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Construction - Solar, BESS X
Inspection X
Performance Period X X Project Complete
Sunnyvale
Fire Station 2
Year 1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X
Bid Package Procurement & Construction - HPWH, HVAC, Solar, BESS, EVSE, Kitchen X X X
Inspection X
Performance Period X X X
15 f. Resiliency Upgrades at Existing Facilities: Most projects will take place at existing facilities. Immediately following award acceptance, Cities will conduct procurement for design services as needed; this task is rolled into the Planning, Design, & Permitting task on each milestone table below. All projects are expected to be completed no later than June 30, 2029, to allow for a minimum two month performance period - projects inspected in Year 4 will have a minimum 18 month period. e. Resiliency Upgrades at New Facilities: San José is building new Fire Stations 23 and 36 that will be all-electric construction including microgrids. Both projects will conduct land acquisition in years 1-2 that will not be grant covered and are expected to have six month performance periods including modeling analyses informed by on-site metering of at least a two month period. f. Performance Evaluations: SPUR will lead evaluation for GHG Performance and ProspectSV will lead Building Design Performance. All Project Plans with QAPPs will be submitted September 30, 2024. Final Performance Reports will be submitted by the end of the grant term, by September 30, 2029.

Item 1e
Attachment 1
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San Jose Year1 Year 2 Year 3 Year 4 Year 5
Fire Department Training & Emergency Operations Center (EOC) 10/1/2024-9/30/2025 10/1/2025-9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X
Bid Package Procurement & Construction - BESS, EVSE X
Inspection X
Performance Period X X
Sunnyvale Year1 Year 2 Year 3 Year 4 Year 5
Cleanwater Center 10/1/2024-9/30/2025 10/1/2025-9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X
Bid Package Procurement & Construction - HVAC, Solar, HPWH X X Inspection X
Performance Period X X
Morgan Hill Year1 Year 2 Year 3 Year 4 Year 5
Centennial Recreation Center 10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X X
Bid Package Procurement & Construction - HPWH, HVAC, BESS, EVSE, Kitchen X X
Inspection X
Performance Period X X
Mountain View Year1 Year 2 Year 3 Year 4 Year 5
Mountain View Sports Pavilion 10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X X X
Bid Package Procurement & Construction - HVAC, Solar, BESS X X X Inspection X
Performance Period X
Mountain View Year1 Year 2 Year 3 Year 4 Year5
Whisman Sports Center 10/1/2024-9/30/2025 10/1/2025-9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X X X
Bid Package Procurement & Construction - Solar, BESS X X X Inspection X
Performance Period X
San Jose Year 1 Year 2 Year 3 Year 4 Year 5
Fire Station #23 10/1/2024 - 9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X
Bid Package Procurement & Construction - Solar, BESS X
Inspection X
Performance Period X
San Jose Yearl Year 2 Year 3 Year 4 Year 5
Fire Station #36 10/1/2024 - 9/30/2025 1O/1/2O25-9/3O/2O26 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Planning, Design, & Permitting X
Bid Package Procurement & Construction - Solar, BESS X
Inspection X
Performance Period X
16 g. Community Engagement and Online Reporting: SPUR will lead Equity Performance and Community Engagement and submit the Project Plan and Low Income Benefit Report by September 30, 2024, and the Final Evaluation by September 30, 2029. Four events total will be planned to showcase completed projects and encourage climate action countywide, two managed by SPUR and two by the City of San José Office of Economic and Cultural Affairs as a Climate Art Fair. San José will host a Project Website including GHG Dashboard for displaying reduced emissions as projects are completed, and 5 community presentations translated into the County’s three widely spoken non-English languages of Spanish, Vietnamese, and Mandarin Chinese including live translation for community meetings. h. Workforce Development: ProspectSV will lead Workforce Development Activities. Training Modules and Apprenticeship Program will be developed in Year 1. Trainings will be provided to city staff and 50 low income individuals, sponsored by the grant, in years 4-5, with final program evaluation submitted by September 30, 2029.

All projects, performance assessments, community engagement, and reports will be completed by September 30, 2029.

SECTION 4: LOW-INCOME AND DISADVANTAGED COMMUNITIES
a. Community Benefits
All locations proposed for the PFRIP’s GHG reduction measures meet EPA-defined criteria as disadvantaged census tracks, either by directly meeting the Disadvantaged criteria, or by meeting 2 or more 90th percentile for recognized environmental or socioeconomic stressors according to the Climate and Economic Justice Screening Tool (), such as PM 2.5, traffic volume and proximity, and linguistic Item 1e
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SPUR - GHG Performance Assessment Year1 Year 2 Year 3 Year 4 Year 5 10/1/2024-9/30/2025 10/1/2025-9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Consultant Procurement Completed by Mar 31, 2025
Develop & Submit Project Plan & Quality Assurance
Performance Plan Completed by Sep 30, 2025
Develop & Conduct Baseline Facilities' Benchmarking & X Individual Technology Performance Assessments (e.g. HPHW) X X X X Microgrid Performance Assessments X X X X
Final Performance Data Analysis & Report Submittal Completed by Sep 30, 2029 Prospect Silicon Valley - Design Parameters Performance Yearl Year 2 Year 3 Year 4 Year5 10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Develop & Submit Roadmap for Resilience Centers Features, including Quality Assurance Project Plan Completed by Sep 30, 2025 Develop Specific Project Assessments X X
Develop Mechnical Electrical Plumbing (MEP) Design
Conceptual Bid Package X X X
Develop Standard RFPfor Design & Construction Services X Review and Design of Construction Documents, Assist
Construction Bid Process & Implementation X X X X X
Final Performance Evaluation & Report Submittal X Completed by Sep 30, 2029 SPUR - Community Engagement
Yearl Year 2 Year 3 Year 4 Year 5
10/1/2024 - 9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Project Plan Development & Submittal Completed by Sep 30, 2025 Interview Planning & Partnership Development X X
Initial Low Income Benefit Report Development & Submittal X Interviews & Surveys with Residents, Staff, & Others involved X X Community Engagement Events (3 total) X X
Post-Project Evaluation & Report Submittal Completed by Sep 30, 2029 San Jose - Community Engagement & Website Year 1 Year 2 Year 3 Year 4 Year 5 10/1/2024 - 9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Website Initial Development & Annual Updates X X X X X
Annual Translated Presentations X X X X X
Community Engagement Events Planning (3 total) X X
Community Engagement Events Implementation (3 total) X
Prospect Silicon Valley
Year1 Year 2 Year 3 Year 4 Year 5
10/1/2024-9/30/2025 10/1/2025 - 9/30/2026 10/1/2026 - 9/30/2027 10/1/2027 - 9/30/2028 10/1/2028 - 9/30/2029 Develop Training & Apprenticeship Program;Submit Project Plan
Completed by Sep 30, 2025
Implement Municipal training X X X X
Implement Apprenticeship Program X X X X
Annual Assessment X X X X
Final Assessment Completed by Sep 30, 2029
17 isolation. The relevant CEJST census tracks are listed under Attachment, Areas_SVCE_PFRIP. On The Cover Page displays a map of the full project service area, planned measures by category, the corresponding disadvantaged census tracks per CEJST layers, and the number of CEJST 90th percentile stressors met at each site.

Lower income individuals use Santa Clara County community centers, recreation centers, and libraries daily for child and elder care programs and to access books, computers, workout equipment, and meeting rooms. These facilities are established and trusted neighborhood focal points used year-round for community-building activities, providing resources to residents, and supporting and strengthening community relationships. In addition, fire department facilities exist primarily to assist the most vulnerable communities, either those experiencing physical threats or health issues. The facilities featured in PFRIP are activated during disasters like major storms, fires, flood events, and heat waves and are used as emergency shelters and cooling/heating centers to provide residents respite from the elements. Low-income and vulnerable communities are most likely to be impacted by hazards and disaster events like flooding, heat waves, and power outages.11 For example, in the event of a heat wave, lower-income residents most often live in older apartment buildings without air conditioning or are unable to afford AC utility costs. Lower-income residents are also more likely to live in neighborhoods with less tree cover, making their homes and neighborhoods hotter on average. 12 For example, South
Central San José has less tree cover and is hotter than other neighborhoods of the city.13 During heat waves, low-income residents benefit greatly from public cooling centers. By advancing resiliency retrofits at these facilities, many of these public facilities will soon be able to maintain critical community services using microgrid systems. PFRIP will improve community services at the facilities with a mix of decarbonization retrofits and resiliency upgrades. Community benefits may differ depending on the measure implemented, see detailed community benefits below.

Resiliency upgrades will include photo voltaic (PV), battery energy storage systems (BESS) installations, and microgrids installations, that may be integrated with public EV charging infrastructure. PFRIP’s resiliency upgrades will realize several direct benefits to the community:
• Improved access to services and increased resilience to climate hazards: Many of the facilities undergoing PV, BESS, and microgrid upgrades are activated during hazards like major storms, fires, flood events, and heat waves and are used as emergency shelters and cooling/heating centers to provide residents respite from the elements. These distributed energy resources will enhance the energy security and stability of these facilities, making them less vulnerable to power shutoffs and outages during hazards. Upgrading community centers and recreation centers will increase the capacity of facilities to serve residents continuously during times of intermittent power shutoffs and outages, offering a space for community members to access 11 US EPA, OA. 2021. “EPA Report Shows Disproportionate Impacts of Climate Change on Socially Vulnerable Populations in the United States.” News Release. September 2. https://www.epa.gov/newsreleases/epa-report-shows-disproportionate-impacts-climate-change-socially-vulnerable. 12 Zhou, Weiqi, Ganlin Huang, Steward T.A. Pickett, Jing Wang, M.L. Cadenasso, Timon McPhearson, J. Morgan Grove, and Jia Wang. 2021. “Urban Tree Canopy Has Greater Cooling Effects in Socially Vulnerable Communities in the US.” One Earth 4 (12): 1764–75. doi:10.1016/j.oneear.2021.11.010.
13 “SJSU News | Learn By Doing/ Excite Your Mind.” 2024. Accessed March 28. https://sjsunews.com/article/lack-of-trees-proves-harmful-to-sj-san-José-state-and-city-experts-say-deficit-in-canopy-coverage-causes-inequality-and-climate-issues.

Item 1e
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18 shelter, information, and electrical power (e.g. for charging phones) when nearby homes and businesses may lack power or have experienced other hazard-related damages. Low-income residents are disproportionately vulnerable to climate hazards due to several factors, including limited resources, socioeconomic disparities, and inequitable access to infrastructure and services. During heat waves, low-income residents benefit greatly from public cooling centers because they lack access to air conditioning or cannot afford to pay utility costs. Finally, by transitioning to electric-powered heating, cooling, and appliances, communities will also decrease their carbon footprint and contribute to mitigating climate change impacts. • Lower electricity bills and net metering for solar PV means reinvestment in community services:

PV, combined with BESS, allows for buildings to supply their own electricity during much of the year, and during a large portion of the day. BESS allows buildings to continue to use energy produced by PV passed peak sunlight hours. Net metering policies allow for PV energy producers to sell excess energy back to the grid during peak sunlight hours. Together, these upgrades allow buildings to save on utility bills, sell PV energy to further reduce energy bills, and use bill savings to reinvest in building services and amenities.

Decarbonization retrofits will change natural gas-powered equipment for electric counterparts in major building systems including Heating, Ventilation, and Air Conditioning (HVAC) replacements, water heating and pumping, and kitchen appliances. PFRIP’s retrofits will realize several direct benefits to the community:
• Improved public health resulting from reductions in co-pollutants: By transitioning from fossil fuel-based appliances, like gas water heaters, to cleaner electric appliances like heat pumps, nitrous oxide, and particulate matter concentrations decrease and air quality improves, reducing respiratory issues such as asthma and allergies. Electrifying gas stoves to induction stoves eliminates carbon monoxide and other particulate matter concentrations, reducing harmful indoor air pollutants in the facilities in question. Furthermore, electrification often involves the adoption of energy-efficient technologies, leading to lower emissions from energy generation and further mitigating air pollution, which is linked to cardiovascular and respiratory diseases. • Improved access to services and amenities: Many public facilities struggle with deferred maintenance on infrastructure due to lack of funding. This can lead to disruption in access to certain services for community members. For example, community centers may provide hot showers, but if the facility’s hot water heater is old it may break often and require repairs.

Replacing older appliances with upgraded electric appliances will improve the quality of the equipment and reduce service disruptions for the community. • Energy cost savings mean reinvestment in community services: When heating water or air, heat pumps are three to four times more energy efficient than their gas counterparts. Additionally, forecasts of energy rates in California estimate that gas rates are likely to escalate faster than electric rates over time. With the addition of solar panels, batteries, and microgrids, building maintenance budgets have the potential to realize savings year-over-year, freeing up additional resources for improvements and community services.
• Workforce training opportunities: Workforce training opportunities, led by Prospect Silicon Valley, will provide contractors with the skills required to install zero-pollution equipment, such as all-electric heat pump water heaters and heat pump HVACs. This partnership will not only directly support the proposed municipal facilities retrofits but will also expand the workforce Item 1e
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DRAFT
19 needed to decarbonize the South Bay’s municipal (and residential) building stock, and accelerate the transition off of gas heating in buildings. The training program will be available to 50 low-income individuals free of charge and will include apprenticeship ride-along with City staff during installation and maintenance of proposed resiliency upgrades and decarbonization retrofits.

Continued assessment—To determine the Public Facility Resiliency Implementation Project’s GHG-emission reduction impact and community benefits, including the direct and indirect benefits to low-income and disadvantaged communities, SPUR will conduct an assessment to share outcomes and best practices associated with the Project. By the end of Year 1, SPUR will submit a Low Income Benefit Assessment and Equity Analysis Project Plan. Final assessment findings will be shared as a report and will be ready in advance of the five-year grant deadline.

This Framework will guide the assessment of this Project. Guiding questions include: How does this project address the pressing needs of marginalized groups? Are there data gaps? What additional data would help analyze the project to better understand its equity impacts? If so, how can SPUR obtain better data? What past investments/budget allocations have there been to this group/geography? These are the types of questions that SPUR’s assessment of the project will consider in its equity analysis. b. Community Engagement
SPUR
As leader of the PFRIP’s Community Engagement and Equity assessment, SPUR will engage the community through surveys and interviews of residents who are served by these facilities, in addition to facility staff members, heat pump and microgrid installers, and other key people engaged in the resilience upgrades and decarbonization retrofits. The findings from this assessment will be shared through a free SPUR public event and regional outreach. SPUR will also support the municipalities in Item 1e
Attachment 1
DRAFT
20 implementing community engagement and public education plans, including co-hosting two public events at municipal facilities that have undergone a resiliency upgrade or decarbonization retrofit. These events are meant to highlight the upgrades made at each facility through a festive community gathering and report back on assessment findings, particularly community benefits achieved through the specific facility’s upgrade or retrofit in addition to benefits achieved across the entire project.

City of San José
The project includes a focused community engagement plan that will build upon San José’s Climate action plans and City Infrastructure Strategy that are informed by prior extensive community, technical, and stakeholder processes. Improving grid resiliency through microgrids and decarbonizing buildings and commutes are specific strategies of the Pathway to Carbon Neutrality as well as the City Infrastructure Strategy, Brilliant at Basics. From 2018 to 2021, San José undertook an extensive community engagement process to co-create Electrify San José: Framework for Existing Building Electrification that lays out how to reduce greenhouse gas emissions from existing buildings in San José through building electrification, while bringing to the forefront the concerns and priorities of historically marginalized communities. Over a year and half of monthly meetings with two community-based organizations (CBOs) representing San José’s Latinx and Spanish communities, three community forums with over 40 CBOs, labor, environmental, development and housing organizations, and five public outreach meetings, participants identified three relevant overarching community needs and priorities: 1. Housing and energy costs 2. Clean and reliable energy 3. Health and air quality Many families throughout San José are not able to purchase ventilation systems to cool their homes and protect their indoor environments from air pollution. San José residents are concerned about more frequent smoky days from the wildfire season, and pollution from highways and industrial sites that disproportionately affects low-income communities. Vulnerable populations living in areas of higher air pollution are already experiencing disproportionately negative health outcomes, such as higher rates of asthma. In addition, many longtime residents who are not working in the tech industry have seen their living costs skyrocket without a proportional wage increase. San José families are already struggling to pay their utility bills. Eleven percent of San José households have a high energy burden, which means they spend above 6 percent of household income on utility bills, while 6 percent of households have a severe energy burden, meaning they spend above 10 percent of household income on utility bills. It is critical that building electrification does not exacerbate housing and energy unaffordability in San José, particularly for those who are already struggling to remain in their homes and in the city.

Guided by the findings of these previous engagement activities, the City’s Public Works Department conducted a wide ranging map assessment of City census tracks aligned with the CEJST layer to identify facilities in the most economically challenged areas for the CPRG decarbonization and resiliency measures. In addition, the proposed workplan and budget includes a community engagement plan that will ensure all citizens are given the resources to be heard by including engagement strategies targeted at Spanish, Vietnamese, and Mandarin Chinese speakers as well as low-income residents. Planned strategies for language accessibility include live communication in native languages, virtual input opportunities, and a fully translated project website. In addition to the countywide work led by SPUR, the Public Works Department will work with the San José Office of Economic and Cultural Affairs to hold a Climate Action Fair including two community engagement events within its jurisdiction.

Item 1e
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21 City of Morgan Hill
The City of Morgan Hill’s adopted Climate Action Plan (CAP) was developed with significant input from a community working group which saw the importance of public facility electrification. They specified a goal in the CAP to convert all municipal buildings to all-electric by 2035. The CPRG funds would be a significant step toward meeting this community-driven goal because it would allow the City to fully electrify one of the community’s key cultural hubs.

The City of Morgan Hill will seek meaningful engagement with low-income and disadvantaged communities continuously for the life of the grant by providing outreach, engagement, input opportunities, and information about the project in both English and Spanish languages. The City will partner with local groups including the public library, school groups, AAUW, and climate action groups to reach a wide range of residents. Additionally, the City is proposing to install a mural completed by a local artist that will incorporate a clean energy theme. The artwork will be designed to inspire and intrigue across the City’s diverse cultural and socioeconomic backgrounds.

The City of Morgan Hill has more affordable housing units per capita than any other city in northern California. The City has been planned in a way that incorporates affordable housing throughout the community and as a result the City does not have a specific census tract that is identified in the Climate and Economic Justice Screening Tool as LIDAC, although the Centennial Recreation Center is located within a census tract that meets several of the tool’s individual disadvantaged metrics. In addition to acting as a heating, cooling, and reunification center, Morgan Hill’s recreation center also offers services for the elderly, children, and youth, and provides affordable activities and workout equipment to the entire community including a significant lower income population.

City of Mountain View
The City of Mountain View, in partnership with local organizations, conducted outreach in 2023 to inform its resiliency efforts. For example, the Community Services Agency (a nonprofit organization which has partnered with the City for more than 40 years on social safety net services) and the City worked together to conduct surveys in English, Spanish, and Chinese at the Senior Center to 120 senior nutrition program participants. Survey results highlighted opportunities to increase public awareness of cooling centers (such as Mountain View Sports Pavilion and Whisman Sports Center) and augment citywide resiliency infrastructure. This raised the CPRG grant as a timely opportunity to enhance the City’s facilities with resiliency improvement.

If awarded, the City of Mountain View will engage with low-income and disadvantaged communities throughout the development and implementation of the grant. For many years, the City’s Multicultural Engagement Program (MEP) has been building relationships within the City’s culturally diverse populations and neighborhoods, including among the Hispanic/Latino, Chinese, and Russian communities. The City has a civic engagement academy that is offered in Spanish and Chinese. MEP also provides translation/interpretation services and culturally appropriate outreach. The City’s Sustainability and Resiliency Division and MEP would partner to provide linguistically and culturally appropriate outreach to incorporate community input and provide updates throughout the grant process.

The City is also undergoing other planning processes that will involve community engagement around resiliency infrastructure and programming that can be leveraged for PFRIP. Over the coming year, the City will develop a Community Resiliency Strategy as well as the Parks and Recreation Strategic Plan.

Item 1e
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22 Outreach for these projects will include surveys, partnerships with community groups, one-on-one meetings or interviews, and community meetings, many of which will offer translation or interpretation options and childcare. The City will consider community feedback from these processes to inform the CPRG projects.

City of Sunnyvale
The City of Sunnyvale adopted its Climate Action Playbook (CAP 2.0 or Playbook) in 2019 with significant input from the community through surveys, public meetings, workshops and input from a community advisory committee. The City and community emphasized the importance of public facility electrification when feasible, to ensure the City is doing its part to contribute to the community wide GHG reduction targets. Play 2.2 of the City’s Playbook specifies a target to convert municipal buildings to all-electric upon rebuild or significant remodel to assist in reducing natural gas emissions from existing buildings.

Currently, the City is updating its specific work plan for implementing the Playbook, Game Plan 2028. The most recent presentation of analysis of this work plan highlights the importance of reducing natural gas from existing buildings to achieve the City’s 2030 goal. The City conducted outreach to the community to gather input on the Draft Game Plan through workshops, online surveys available in English and Spanish, email blasts, and presentations to community groups. The current Draft outlines increasing the City’s goals for reducing natural gas use to 42% in residential and 38% in commercial by 2030. The CPRG funds would be a significant step toward meeting these ambitious goals because it would allow the City to fully electrify two critical operations centers, monitor their energy performance and serve as model buildings to justify the need for advancing building electrification of municipal facilities on a broader scale.

If awarded, the City of Sunnyvale plans to bolster its engagement with low-income and disadvantaged communities throughout the development and implementation period of the grant term. As part of the design and construction process for city facilities, the City hosts public meetings in local spaces to invite the community to provide feedback and input on the design and construction plans. In 2021, the City of Sunnyvale hired an Equity, Access and Inclusion (EAI) Manager and established an equity, access and inclusion team of staff from each City department to advance the City’s reach and engagement with its most vulnerable populations. In addition, the City adopted Council Policy 7.2.1 specifically for community engagement, which was developed after the City hosted a series of listening sessions to hear from the community. The policy ensures the community is well informed about local issues and City Programs and Services. This is part of a larger obligation called the Sunnyvale Unity Commitment which commits the city to creating a culture of belonging where all members of our diverse community feel included, heard, and respected. The City’s Sustainability team plans to partner with the EAI team to develop outreach materials in Spanish, Mandarin and Tagolog to design linguistically and culturally appropriate outreach materials for engagement throughout the grant term. Both facilities in Sunnyvale’s application are important community engagement centers, will serve as educational centers for the public and will demonstrate the City’s ability to meet climate goals and targets set for and by the community.

SECTION 5: JOB QUALITY
The City of San José partners with the Santa Clara County Office of Labor Standard Enforcement on prevailing wage and wage theft policies to ensure countywide wage equity and prevent wage theft. San José’s Office of Equality Assurance will oversee prevailing wages for the project and help monitor companies who would be contracted for project implementation to ensure that their workers are Item 1e
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DRAFT
23 properly paid for the work they do. The Office of Equality Assurance conducts active enforcement of prevailing wages on City contracts.

To expand the regional work force, team member ProspectSV would coordinate a training series for building industry practitioners on building decarbonization and zero-carbon building systems. ProspectSV has partnered with DMG North, a representative of leading HVAC (Heating, Ventilation, and Air Conditioning) equipment manufacturers in Northern California, to establish a Northern California Training Center in the Bay Area. This center will be available for industry training and education over the duration of the grant period and beyond. DMG North regularly hosts training sessions with Trade Professionals, Professional organizations, Unions, Vocational Schools, Colleges, and Universities. They have committed to being a resource for the industry and to help educate and train others, which will have a far-reaching impact on commercializing this in the marketplace. The training series, to be developed under PFRIP funding in Year 1, would be based on the experience of veteran workforce development professionals with a history of supporting clean technology workforce efforts across the Bay Area. The program will include classroom and webinar training and speaking engagements, but also will leverage the partnerships of professional organizations like Sustainable Purchasing Leadership Council, North American Sustainable Refrigerants Council, International Facilities Management Association, and others to reach the broadest and most relevant stakeholders across the buildings industry value chain. Special attention will be paid to the buildings design and modeling industry through a network of design leaders engaged in as program advisors. The program will be available to the Coalition’s staff as in service training, and up to 50 low income residents seeking journeyman plumbing or electrician credentials, during years 2-5 of the grant period.

SECTION 6: PROGRAMMATIC CAPABILITY AND PAST PERFORMANCE a. Past Performance
The Coalition led by SVCE collectively has considerable experience with receiving and managing federal and non-federal grants. The City of San José manages more than 100 federal awards for various grant types. In fiscal year 2022-2023, San José reported more than $196 Million (M) in federal grant awards and expenditures. Two key examples of grants completed within the last three years include: 1) the U.S.

Department of the Treasury’s Coronavirus Relief Fund14 which provided $178M during the Pandemic to cover community needs for food, shelter, testing, and other essentials and 2) CalOES Public Safety Power Shutoff Allocation15 which provided $500,000 for emergency response. The City of Cupertino recently received and expended $214,549 in grant funds through State of California Proposition 68 OGALS16 to build the city’s first full-sized basketball court, filling a gap in recreational variety in the Parks Master Plan. For the fiscal year ending June 30, 2023, the City of Sunnyvale reported 32 federal awards 14 Grantor: U.S. Department of the Treasury’s Coronavirus Relief Fund; Grant Assistance Number: OIG-CA-20-021), from March 1, 2020 – December 31, 2022; Total Funding: $178,295,348; How Spent: $90.1M in personnel costs of dedicated time responding to the COVID-19 emergency; $29.9M in food and necessities distribution; $27.2M in unhoused sheltering/support; $20.4M in local assistance; $4.5M testing, tracing and isolation; and $2.2M facility improvements
15 Grantor: State of California Governor's Office of Emergency Services (CalOES) Public Safety Power Shutoff Allocation; Grant Assistance Number: 085-68000); Grant Dates: July 1, 2019 – February 29,2024; How Spent: $99,360 for development of City's Power Vulnerability Plan; $122,340 in design and specifications for New Emergency Generators for Fire Station #28 and Police Sub Station; $240,900 in Radio Communications Equipment for Public Safety; and $37,400 in Radio Communications Equipment for Non-Public Safety. 16 Grantor: California Department of Parks and Recreation via Office of Grants and Local Services (OGALS); Grant Name: California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018; Grant Assistance Number: 18-43-016 and 18-43-017; Grant Amount: $214,549; Grant Term: through 12/31/2021 - 7/31/2024; How Funding Was Spent: Remove existing landscape, irrigation, storm drain, Install a full-size basketball court (court surface, backboards/nets, drainage). Remove and replace existing walking path leading to new basketball court. Total: $214,549 spent by 12/31/23.

Item 1e
Attachment 1
DRAFT
24 and $29.7M in federal grant expenditures; City of Mountain View reported 11 federal awards and $10.8M in federal grant expenditures; and the City of Morgan Hill reported 4 federal awards and $800,732 in federal grant expenditures17. SVCE administered a $1.5M grant from the CAPP18 in FY21-22 that helped California energy customers reduce past due energy account balances during the Pandemic. b. Reporting Requirements
The PFRIP Coalition members successfully complete grants compliance reporting accurately and timely.

In early 2024, the Cities of Morgan Hill, Mountain View, San José, and Sunnyvale completed their Single Audit on the Schedule of Expenditures of Federal Awards required by the Uniform Guidance with no material weaknesses or significant deficiencies regarding the review of the Schedule of Expenditures of Federal Awards, which includes all federal awards received directly from federal agencies and federal awards passed-through other governmental agencies. In 2023, Cupertino expended the OGALS funds 7 months ahead of the deadline. In 2022, the Department of Treasury’s Office of Inspector General (OIG) conducted Desk Review of the Coronavirus Relief Funds of $178.2M for the City of San José. After completing their Desk Review, Treasury OIG indicated that they had no findings, exemptions, and no questionable/unallowable costs. As proven by the OIG’s Annual Desk Review, all reporting and financing requirements were completed on time and within budget.
c. Staff Expertise
Silicon Valley Clean Energy (SVCE) has substantial experience with handling and distributing funds. SVCE regularly provides its constituents grant opportunities and financial assistance, such as the CAPP, and this expertise will apply to distributing subawards to the Coalition members as a pass-through entity. SVCE has an annual 2023 operating budget of $324.5M19 and typically keeps 300 days of cash on hand, expecting 365 this calendar year, and an “A” Credit Rating20, putting the organization in a stable and experienced position for managing and distributing the Public Facility Resiliency Fund. The PFRIP Coalition of Cities is fully positioned and ready to complete PFRIP on schedule within a 5-year grant term following acceptance of the grant award. Immediately following acceptance of award, each City can contract with one of its existing vendors for planning, design, permitting and implementation of measures. Each City’s procurement requirements for services, supplies, and equipment generally meet the Uniform Grant Guidance (UGG) (2 CFR 200) minimum requirements. The competitive procurement process, through a third-party web-based bid solicitation platform, ensures open and free competition for purchasing, and provides small business considerations and credits and provides measures to prevent conflicts of interest. The history of the procurement process is documented thoroughly to include selection of contract type, cost for the contract, solicitation of bids, responses from potential contractors, determination that the price is reasonable and any amendments to the contracts. PFRIP will follow the Best Practice Guide for Procuring Services, Supplies, and Equipment under EPA Assistance Agreements.

SECTION 7: BUDGET
a. Budget Detail
17 Federal Audit Clearing House, OMB# 3090-0330, EXP: 09/30/2026, https://app.fac.gov/dissemination/search/ 18 Grant Administrator: California Arrearage Payment Program(CAPP); No Grant Assistance Number, Total Amount: $1,545,172; grant term ended September 30,2022; https://www.csd.ca.gov/CAPP
19 Silicon Valley Clean Energy Authority; Independent Auditors Report, Financial Statements Years Ended: September 30, 2023, September 30, 2022; https://svcleanenergy.org/wp-content/uploads/Silicon-Valley-Clean-Energy-Authority-9.30.2023-Financial-Statements-FINAL.pdf 20 RatingsDirect, S&P Global Ratings, Silicon Valley Clean Energy Authority, California; Retail Electric, May 11, 2023 Item 1e
Attachment 1
DRAFT
25 The Total Cost for PFRIP is $49,999,997. Full budget details for all categories including itemized charges can be viewed in the Budget Spreadsheet Budget_SVCE_PFRIP, and Budget Appendix Budgetcalcs_SVCE_PFRIP which includes a Table of Staff Rates covering Personnel, Fringe, and Indirect Hourly Rates.
i. Personnel: Total Cost: $5,185,857 based on 45 classifications spanning SVCE and all sub-awardees developed from staff time hourly rates of actual known employees and the hours or percentage of Full Time Employee (FTE) required to complete grant objectives. ii. Fringe Benefits: Total Cost: $2,703,931 based on 45 classifications spanning SVCE and each sub-awardee, as a percentage of Personnel time of actual known employees that varies by organizational benefits but typically includes: health premiums (medical, dental, vision), flexible spending/health reimbursement accounts, workers’ compensation, life insurance, and disability leave. Fringe rates may vary upon union, benefit choices, and retirement system tier.
iii. Travel: Total Cost: $8,500 based on local, in-state, and out-of-state travel needs for implementing community engagement strategies and subsequent project performance presentations at two conferences.
iv. Equipment: Total Cost: $20,590,387 based on 62 implementation sites’ costs for installing GHG reductions measures, including but not limited to, heat pump water heaters, heat pump HVAC, and solar systems and batteries at various capacities. v. Supplies: Total Cost: $16,600 based on two sites’ electric cooking appliances and four community events’ needs.
vi. Contractual: Total Cost: $18,886,212 based on all vendor services needed to produce PFRIP outcomes, including but not limited to design, permitting, construction, GHG and Building Design performance and community engagement.
vii. Other: Total Cost: $417,750 based on stipends for qualifying low income trainees and community engagement participation, community art and celebratory events. viii. Indirect Charges: Total Cost: $2,190,759.80 based on 45 classifications spanning SVCE and each sub-awardee, as a percentage of personnel salaries that vary by organizational overhead needs or approved Negotiated Indirect Cost Rate Agreement (NICRA). b. Expenditure of Awarded Funds
To ensure that grant award is efficiently expended on time within the grant period, the PFRIP Coalition will meet monthly to plan upcoming activities and review recent progress; and through the Santa Clara County Climate Collaborative, providing opportunities to share news, challenges, lessons learned, and best practices, and coordinate activities. All final report information and receipts will be provided to SVCE by sub-awardees no later than two weeks prior to a relevant reporting deadline (see Section 3c) to ensure timely report submittal to the EPA. Semi-annual reports will be provided on March 31 and September 30, or the closest prior business day, throughout the grant term until the Final Report due date of September 30, 2029.
c. Reasonableness of Costs
All PFRIP’s Direct and Indirect costs are necessary to construct the GHG reduction measures and conduct specific grant performance and community engagement. Costs were calculated through engineering and project manager review and assessment, supported by vendor quotes to the extent possible and represent the most feasible and reasonable costs available at the time of this proposal.

Item 1e
Attachment 1
DRAFT

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Staff Report – Item 1f
Item 1f: Authorize the Chief Executive Officer to Amend Agreement with Power MC LLC to Increase the Not to Exceed Amount by $121,613 to $545,797 for Business Process Optimization Project Consulting Services
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO, and Director of Administrative Services Zakary Liske, Senior Manager of Power Operations
Date: 6/12/2024

RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy Authority Board (“Board”) authorize the Chief Executive Officer (“CEO”) to amend agreement with Power MC LLC (“Consultant”) for consulting services related to SVCE’s business process optimization (“BPO”) project to increase the not to exceed (“NTE”) amount to $545,797.

BACKGROUND
In 2021 as part of one of the five strategic focus areas, staff initiated a comprehensive assessment of SVCE’s business processes to move the operations from a startup phase to more mature processes leveraging technology. The high-level goals of BPO are to create auditable, automated, secure, and integrated business processes. Currently, a small group of staff manages multiple large transactions with monthly cashflow that can in absolute terms reach over $75 million using labor-intensive and manual processes along with reliance on core functions with outside vendors/consultants. With BPO tools, these processes will align with industry best practices of using Energy Trading and Risk Management (“ETRM”) tools to streamline, automate and gain the ability to efficiently and effectively make insightful data-driven decisions. Staff created a BPO roadmap that currently has three phases of implementation with the current phase, Phase 1, focused on deal capture and settlements system. Phase 2 will focus on portfolio and risk management integrations and Phase 3 will be defined later and could cover functions of customer relationship management, decarbonization program design and implementation, meter data and load forecasting, and financial management and modeling.

Staff developed detailed functional requirements of SVCE’s needs in a deal capture and settlements system.

Using these requirements, staff reached out to several vendors to learn about their systems and potential fit for SVCE’s needs. Using the knowledge gained from the initial assessment, staff developed a Request for Proposals (RFP) and released that to the public in early February 2022. The RFP was structured to allow firms to respond to either or both elements of deal capture and settlements systems. Ultimately, the RFP resulted in SVCE selecting Adapt2 Solutions, Inc (“Adapt2”) to provide a deal capture and settlements system. A contract was negotiated, approved by the SVCE Board in September 2022, and executed in October 2022 with the project implementation starting several weeks later.

SVCE initially began the project with an implementation team made up of internal staff representing the various departments responsible for managing SVCE’s wholesale portfolio. After several months of working on the project staff determined that the level of effort required necessitated seeking external assistance to help.

As such, SVCE entered into a consulting agreement with Consultant in May 2023 to provide support with respect to SVCE’s implementation of business process optimization software. At the time, Staff was expecting this to be Item 1f
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1f Agenda Date: 6/12/2024

Page 2 of 2 ends

a limited term engagement with an NTE just under the CEO’s spending authority. The limited engagement would allow existing project team to utilize the external resource to expedite completion of the implementation. Key aspects that the Consultant would assist on included: project management, portfolio migration and gap analysis.

At the August 2023 Board meeting, the Board approved an NTE increase from $97,290 to $424,184 and term extension through September 30, 2024.

ANALYSIS & DISCUSSION
Staff is requesting to increase the NTE of the agreement with Consultant to accommodate finalizing Adapt2 system configuration and bringing the system to go-live status in August 2024. Since engagement with Consultant started, Consultant has served as SVCE’s project manager, at various times subject matter expert, and point of contact while working with the vendor, Adapt2. Consultant has assisted with configuration and migration of much of SVCE’s historical portfolio.

SVCE, Consultant, and Adapt2 have recently identified remaining items to get system to go-live state. Those include completion of deal capture, counterparty exposure tracking, bilateral and CAISO settlements functionality, and training. Parties have also identified future items to configure that will be handled post-go-live between SVCE and Adapt2 directly.

STRATEGIC PLAN
Authorizing the CEO to amend the agreement will directly support the Strategic Plan’s Goal 8: Manage and optimize power supply resources to meet affordability, GHG reduction and reliability objectives; and Goal 22: Enable data-driven decision-making across the organization; automate, integrate, and streamline business processes to minimize operational risk and move organization toward industry best practices from its startup phase.

ALTERNATIVE
If the Board does not delegate authority to the CEO, staff will need to be deployed to work on implementation of Phase 1 as a priority. SVCE will face operational risk, due to potential lack of staff bandwidth to complete the project in a timely fashion.

FISCAL IMPACT
The recommendation results in an estimated fiscal impact of $121,613. The total fiscal impact including the current agreement with Consultant is $545,797 and is expected to be realized by the end of FY24. The FY 2023-24 Operating Budget includes sufficient funds to cover consulting expenses including amending the agreement with Consultant.

ATTACHMENTS

1. Second Amendment to Agreement with Power MC LLC

2. First Amendment to Agreement with Power MC LLC

3. Agreement with Power MC LLC
Item 1f
1/2023 Version

SECOND AMENDMENT TO AGREEMENT WITH POWER MC LLC
WHEREAS, the SILICON VALLEY CLEAN ENERGY AUTHORITY, an independent public agency (“Authority”), and POWER MC LLC (“Consultant”) entered into that certain agreement entitled BUSINESS PROCESS OPTIMIZATION effective on May 18, 2023, hereinafter referred to as “Original Agreement”; and
WHEREAS, Authority and POWER MC LLC determined it was in their mutual interest to amend certain terms of the Original Agreement effective August 9, 2023 (“First Amendment”); and
WHEREAS, Authority and POWER MC LLC have determined it is in their mutual interest to further amend certain terms of the Original Agreement;

NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. COMPENSATION TO CONSULTANT section of Original Agreement shall be amended to read as follows:

Consultant shall be compensated for services performed pursuant to this Agreement in a total amount not to exceed five hundred forty-five thousand seven hundred ninety-seven dollars and no/100 ($545,797.00) based on the rates and terms set forth in Exhibit "C," which is attached hereto and incorporated herein by this reference.

3. EXHIBIT C COMPENSATION section of Original Agreement shall be amended to read as follows:

The compensation to be paid to Consultant under this Agreement for all services described in Exhibit “A” and reimbursable expenses shall not exceed a total of five hundred forty-five thousand seven hundred ninety-seven dollars and no/100 ($545,797.00), as set forth below. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to Authority unless previously approved in writing by Authority
Original Agreement
Task Estimated Budget

1. Time and Materials (400 hours x $235/hour) $94,000

2. Out of pocket expenses (reimbursable expenses to equal no more than 3.5% of fees) $3,290
Total $97,290
Amended
Task Estimated Budget

1. Time and Materials (2244 hours x $235/hour) $527,340 Item 1f
Attachment 1
Second Amendment - Power MC LLC DRAFT
1/2023 Version

2. Out of pocket expenses (reimbursable expenses to equal no more than 3.5% of fees) $18,457
Total $545,797

4. This Amendment shall be effective on June xx, 2024.

5. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.

6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.

RECOMMENDED FOR APPROVAL
____________________________________
Kris Van Vactor, Director of Power Resources

RECOMMENDED FOR APPROVAL
__________________________________________________________ Amrit Singh, Chief Financial Officer/Director of Administrative Services Item 1f
Attachment 1
Second Amendment - Power MC LLC DRAFT
1/2023 Version

CONSULTANT NAME

POWER MC, LLC
By: __________________________
Name: ________________________
Title: _________________________
Date: __________________________

SILICON VALLEY CLEAN ENERGY

AUTHORITY
A Joint Powers Authority
By: ___________________________
Name: Monica Padilla
Title: Chief Executive Officer
Date: __________________________
APPROVED AS TO FORM:
_______________________
Name: Michael Callahan
Title: General Counsel
ATTEST:
_____________________
Authority Clerk
Item 1f
Attachment 1
Second Amendment - Power MC LLC DRAFT
1/2023 Version

FIRST AMENDMENT TO AGREEMENT WITH POWER MC LLC
WHEREAS, the SILICON VALLEY CLEAN ENERGY AUTHORITY, an independent public agency (“Authority”), and POWER MC LLC (“Consultant”) entered into that certain agreement entitled BUSINESS PROCESS OPTIMIZATION effective on May 18, 2023, hereinafter referred to as “Original Agreement”; and
WHEREAS, Authority and POWER MC LLC have determined it is in their mutual interest to amend certain terms of the Original Agreement.

NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. TERM Section of Original Agreement shall be amended to read as follows:

The term of this Agreement shall commence on May 22, 2023, and shall terminate on September 30, 2024, unless terminated earlier as set forth herein.

2. COMPENSATION TO CONSULTANT section of Original Agreement shall be amended to read as follows:

Consultant shall be compensated for services performed pursuant to this Agreement in a total amount not to exceed four hundred twenty-four thousand one hundred eighty-four dollars and no/100 ($424,184.00) based on the rates and terms set forth in Exhibit "C," which is attached hereto and incorporated herein by this reference.

3. EXHIBIT C COMPENSATION section of Original Agreement shall be amended to read as follows:

The compensation to be paid to Consultant under this Agreement for all services described in Exhibit “A” and reimbursable expenses shall not exceed a total of four hundred twenty-four thousand one hundred eighty-four dollars and no/100 ($424,184.00), as set forth below. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to Authority unless previously approved in writing by Authority
Original Agreement
Task Estimated Budget

1. Time and Materials (400 hours x $235/hour) $94,000

2. Out of pocket expenses (reimbursable expenses to equal no morethan 3.5% of fees) $3,290
Total $97,290
Amended
Task Estimated Budget

1. Time and Materials (1744 hours x $235/hour) $409,840 DocuSignEnvelopeID:08E48E74-FF24-4226-9C94-D55CB7B1C6AF Item 1f
Attachment 2
1/2023 Version

2. Out of pocket expenses (reimbursable expenses to equal no more than 3.5% of fees) $14,344
Total $424,184

4. This Amendment shall be effective on August 9, 2023.

6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.

RECOMMENDED FOR APPROVAL
____________________________________
Monica Padilla, Director of Power Resources

RECOMMENDED FOR APPROVAL
__________________________________________________________ Amrit Singh, Chief Financial Officer/Director of Administrative Services DocuSignEnvelopeID:08E48E74-FF24-4226-9C94-D55CB7B1C6AF Item 1f
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CONSULTANT NAME

POWER MC, LLC
By: __________________________
Name: ________________________
Title: _________________________
Date: __________________________

SILICON VALLEY CLEAN ENERGY

AUTHORITY
A Joint Powers Authority
By: ___________________________
Name: Girish Balachandran
Title: Chief Executive Officer
Date: __________________________
APPROVED AS TO FORM:
_______________________
Counsel for Authority
ATTEST:
_____________________
Authority Clerk
DocuSignEnvelopeID:08E48E74-FF24-4226-9C94-D55CB7B1C6AF ManagingMember
8/18/2023
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8/18/2023
Item 1f
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1/2023 Version

AGREEMENT BETWEEN THE SILICON VALLEY CLEAN ENERGY AUTHORITY AND

POWER MC LLC
FOR

BUSINESS PROCESS OPTIMIZATION
THIS AGREEMENT (“Agreement”), is entered into this 18th day of May, 2023, by and between the SILICON VALLEY CLEAN ENERGY AUTHORITY, an independent public agency, ("Authority"), and POWER MC LLC, a California Limited Liability Company, whose address is 15056 Calle Verano, Chino Hills, CA 91709 (hereinafter referred to as "Consultant") (collectively referred to as the “Parties” and individually as a “Party”).

RECITALS:

A. Authority is an independent public agency duly organized under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) with the power to conduct its business and enter into agreements.

B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement pursuant to the terms and conditions described herein.

C. Authority and Consultant desire to enter into an agreement for business process optimization upon the terms and conditions herein.

NOW, THEREFORE, the Parties mutually agree as follows:

1. TERM
The term of this Agreement shall commence on May 22, 2023, and shall terminate on December 31, 2023, unless terminated earlier as set forth herein.

2. SERVICES TO BE PERFORMED
Consultant shall perform each and every service set forth in Exhibit "A" pursuant to the schedule of performance set forth in Exhibit "B," both of which are attached hereto and incorporated herein by this reference.

3. COMPENSATION TO CONSULTANT
Consultant shall be compensated for services performed pursuant to this Agreement in a total amount not to exceed ninety-seven thousand two hundred ninety dollars and no/100 ($97,290.00) based on the rates and terms set forth in Exhibit "C," which is attached hereto and incorporated herein by this reference.

4. TIME IS OF THE ESSENCE
Consultant and Authority agree that time is of the essence regarding the performance of this Agreement.

DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
Attachment 3
1/2023 Version

5. STANDARD OF CARE
Consultant agrees to perform all services required by this Agreement in a manner commensurate with the prevailing standards of specially trained professionals in the San Francisco Bay Area under similar circumstances and in a manner reasonably satisfactory to Authority and agrees that all services shall be performed by qualified and experienced personnel. Consultant shall be responsible to Authority for any errors or omissions in the performance of work pursuant to this Agreement. Should any errors caused by Consultant be found in such services or products, Consultant shall correct the errors at no additional charge to Authority by redoing the professional work and/or revising the work product(s) called for in the Scope of Services to eliminate the errors.

Should Consultant fail to make such correction in a reasonably timely manner, such correction may be made by Authority, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, Authority may deduct the cost of such correction from any retention amount held by Authority or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction.

6. INDEPENDENT PARTIES
Authority and Consultant intend that the relationship between them created by this Agreement is that of an independent contractor. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Consultant's services. None of the benefits provided by Authority to its employees, including but not limited to, unemployment insurance, workers’ compensation plans, vacation and sick leave are available from Authority to Consultant, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Consultant. Payments of the above items, if required, are the responsibility of Consultant. Consultant shall indemnify and hold harmless Authority and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of Authority officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant’s personnel practices. Authority shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to Authority from Consultant as a result of Consultant’s failure to promptly pay to Authority any reimbursement or indemnification arising under this section.

7. NO RECOURSE AGAINST CONSTITUENT MEMBERS OF AUTHORITY Authority is organized as a Joint Powers Authority in accordance with the Joint Powers Act of the State of California (Government Code Section 6500 et seq.) pursuant to a Joint Powers Agreement dated March 31, 2016, and is a public entity separate from its constituent members.

Authority shall solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Consultant shall have no rights and shall not make any claims, take any actions or assert any remedies against any of Authority’s constituent members in connection with this Agreement.

8. NON-DISCRIMINATION
In the performance of this Agreement, Consultant, and any subconsultant under the Consultant, shall not discriminate against any employee, subcontractor or applicant for DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
Attachment 3
1/2023 Version
employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation, military or veteran status, or other basis prohibited by law, except as provided in Government Code section 12940. Consultant shall have responsibility for compliance with this Section.

9. HOLD HARMLESS AND INDEMNIFICATION
A. General Indemnification. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify Authority and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those Authority agents serving as independent contractors in the role of Authority officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.

B. Intellectual Property Indemnification. Consultant hereby certifies that it owns, controls, or licenses and retains all right, title, and interest in and to any intellectual property it uses in relation to this Agreement, including the design, look, feel, features, source code, content, and other technology relating to any part of the services and including all related patents, inventions, trademarks, and copyrights, all applications therefor, and all trade names, service marks, know how, and trade secrets (collectively referred to as “IP Rights”), except as otherwise expressly provided by this Agreement. Consultant warrants that the services to be provided pursuant to this Agreement do not infringe, violate, trespass, or constitute the unauthorized use or misappropriation of any IP Rights of any third party. Consultant shall indemnify, defend, and hold Indemnitees, harmless from and against any Liabilities by a third party that the services to be provided pursuant to this Agreement infringe or violate any third-party’s IP Rights, provided any such right is enforceable in the United States. Such costs and expenses shall include reasonable attorneys’ fees of counsel of Authority’s choice, expert fees and all other costs and fees of litigation.

C. The acceptance of the services by Authority shall not operate as a waiver of these rights of indemnification. The hold harmless and indemnification provisions of this Section shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability.

D. Consultant’s indemnifications and obligations under this section shall survive the expiration or termination of this Agreement.

DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
Attachment 3
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10. INSURANCE
A. General Requirements. On or before the commencement of the term of this Agreement, Consultant shall furnish Authority with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with the requirements listed in Exhibit "D," which is attached hereto and incorporated herein by this reference. Such insurance and certificates, which do not limit Consultant’s indemnification obligations under this Agreement, shall also contain substantially the following statement:
"Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days’ advance written notice to the Authority by certified mail, Attention: Chief Executive Officer." Consultant shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company that is acceptable to Authority and licensed to do insurance business in the State of California.

Endorsements naming the Authority as additional insured shall be submitted with the insurance certificates.

B. Subrogation Waiver. Consultant agrees that in the event of loss due to any of the perils for which he/she has agreed to provide comprehensive general and automotive liability insurance, Consultant shall look solely to his/her/its insurance for recovery. Consultant hereby grants to Authority, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or Authority with respect to the services of Consultant herein, a waiver of any right to subrogation which any such insurer of Consultant may acquire against Authority by virtue of the payment of any loss under such insurance.

C. Failure to Secure or Maintain Insurance. If Consultant at any time during the term hereof should fail to secure or maintain the foregoing insurance, Authority shall be permitted to obtain such insurance in the Consultant's name or as an agent of the Consultant and shall be compensated by the Consultant for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid.

D. Additional Insured. Authority, its members, officers, employees and volunteers shall be named as additional insureds under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy.

E. Sufficiency of Insurance. The insurance limits required by Authority are not represented as being sufficient to protect Consultant. Consultant is advised to confer with Consultant's insurance broker to determine adequate coverage for Consultant.

F. Maximum Coverage and Limits. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements and/or limits shall be available to the additional insureds. Furthermore, the requirements for coverage and limits shall be the minimum coverage and limits specified in this Agreement, or the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is greater.

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11. CONFLICT OF INTEREST
Consultant warrants that it, its officers, employees, associates and subcontractors, presently have no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of this Agreement, and that it, its officers, employees, associates and subcontractors, will not employ any person having such an interest.

Consultant and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the Authority Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this section into any subcontract that Consultant executes in connection with the performance of this Agreement. Consultant understands that it may be required to fill out a conflict of interest form if the services provided under this Agreement require Consultant to make certain governmental decisions or serve in a staff Authority, as defined in Title 2, Division 6, Section 18700 of the California Code of Regulations.

12. PROHIBITION AGAINST TRANSFERS
Consultant shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of Authority. Any attempt to do so without such consent shall be null and void, and any assignee, sublessee, pledgee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for money by Consultant from Authority under this Agreement may be assigned to a bank, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to Authority by Consultant.

The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant, if Consultant is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Consultant, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation.

13. SUBCONTRACTOR APPROVAL
Unless prior written consent from Authority is obtained, only those persons and subcontractors whose names are attached to this Agreement shall be used in the performance of this Agreement.

In the event that Consultant employs subcontractors, such subcontractors shall be required to furnish proof of workers’ compensation insurance and shall also be required to carry general, automobile and professional liability insurance in substantial conformity to the insurance carried by Consultant. In addition, any work or services subcontracted hereunder shall be subject to each provision of this Agreement.

Consultant agrees to include within their subcontract(s) with any and all subcontractors the same requirements and provisions of this Agreement, including the indemnity and insurance DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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requirements, to the extent they apply to the scope of the subcontractor’s work. Subcontractors hired by Consultant shall agree to be bound to Consultant and Authority in the same manner and to the same extent as Consultant is bound to Authority under this Agreement. Subcontractors shall agree to include these same provisions within any sub-subcontract. Consultant shall provide a copy of the Indemnity and Insurance provisions of this Agreement to any subcontractor. Consultant shall require all subcontractors to provide valid certificates of insurance and the required endorsements prior to commencement of any work and will provide proof of compliance to Authority.

14. REPORTS
A. Each and every report, draft, work product, map, record and other document, hereinafter collectively referred to as "Report", reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection with this Agreement, shall be the exclusive property of Authority. Consultant shall not copyright any Report required by this Agreement and shall execute appropriate documents to assign to Authority the copyright to Reports created pursuant to this Agreement. Any Report, information and data acquired or required by this Agreement shall become the property of Authority, and all publication rights are reserved to Authority. Consultant may retain a copy of any Report furnished to the Authority pursuant to this Agreement.

B. All Reports prepared by Consultant may be used by Authority in execution or implementation of: (1) The original project for which Consultant was hired; (2) Completion of the original project by others; (3) Subsequent additions to the original project; and/or (4) Other Authority projects as Authority deems appropriate in its sole discretion.

C. Consultant shall, at such time and in such form as Authority may require, furnish reports concerning the status of services required under this Agreement.

D. All Reports shall also be provided in electronic format, both in the original file format (e.g., Microsoft Word) and in PDF format.

E. No Report, information or other data given to or prepared or assembled by Consultant pursuant to this Agreement that has not been publicly released shall be made available to any individual or organization by Consultant without prior approval by Authority.

F. Authority shall be the owner of and shall be entitled upon request to immediate possession of accurate reproducible copies of Reports or other pertinent data and information gathered or computed by Consultant prior to termination of this Agreement or upon completion of the work pursuant to this Agreement.

15. RECORDS
Consultant shall maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by Authority that relate to the performance of services under this Agreement, in sufficient detail to permit an evaluation of the services and costs. All such records shall be clearly identified and readily accessible. Consultant shall provide free access to such books and records to the representatives of Authority or its designees at all proper times, and gives Authority the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a minimum period of five (5) years after Consultant receives final payment from Authority for all services required under this agreement
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16. PARTY REPRESENTATIVES
The Chief Executive Officer (“Authority Representative”) shall represent the Authority in all matters pertaining to the services to be performed under this Agreement. Dean Isa (Consultant Representative”) shall represent Consultant in all matters pertaining to the services to be performed under this Agreement.

17. CONFIDENTIAL INFORMATION AND DOCUMENTS
A. Consultant covenants that all data, reports, documents, discussion, or other information (collectively “Data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed or released by Consultant without prior written authorization by Authority. Authority shall grant such authorization if applicable law requires disclosure. Consultant, its officers, employees, agents, or subcontractors shall not without written authorization from the Authority Representative or unless requested in writing by the Authority’s General Counsel, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the Authority. Response to a subpoena or court order shall not be considered “voluntary,” provided Consultant gives Authority notice of such court order or subpoena.

B. Consultant shall promptly notify Authority should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the Authority. Authority may, but has no obligation to, represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with Authority and to provide Authority with the opportunity to review any response to discovery requests provided by Consultant. However, Authority’s right to review any such response does not imply or mean the right by Authority to control, direct or rewrite the response.

C. It is understood that Authority is subject to the California Public Records Act (Gov.

Code § 7920.000 et seq.). If a request under the California Public Records Act is made to view any documents Consultant provided to Authority, Authority shall notify Consultant of the request and the date that such records will be released to the requester unless Consultant obtains a court order enjoining that disclosure. If Consultant fails to obtain a court order enjoining that disclosure, Authority will release the requested information on the date specified.

D. In the event Authority gives Consultant written notice of a “litigation hold” or request under the Public Records Act, then as to all data identified in such notice or request, Consultant shall, at no additional cost to Authority, isolate and preserve all such data pending receipt of further direction from the Authority.

E. Consultant agrees to comply with the confidentiality and data protection provisions set forth in Exhibit “E,” attached hereto and incorporated herein by this reference.

F. Consultant’s covenants under this section shall survive the expiration or termination of this Agreement.

18. NOTICES
Any notice, consent, request, demand, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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personal delivery, (b) on confirmed delivery by courier service during Consultant’s and Authority’s regular business hours, or (c) three Business Days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the Party to be notified as set forth below:

TO AUTHORITY:
333 W. El Camino Real
Suite 330
Sunnyvale CA 94087
Attention: Chief Executive Officer
TO CONSULTANT:

Dean Isa
Power MC LLC
15056 Calle Verano
Chino Hills, CA 91709

19. TERMINATION
In the event Consultant fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Consultant shall be deemed in default in the performance of this Agreement. If Consultant fails to cure the default within the time specified (which shall be determined by the Authority but shall be not less than 10 days) and according to the requirements set forth in Authority’s written notice of default, and in addition to any other remedy available to the Authority by law, the Authority Representative may terminate the Agreement by giving Consultant written notice thereof, which shall be effective immediately. The Authority Representative shall also have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) calendar days' prior written notice to Consultant as provided herein. Upon receipt of any notice of termination, Consultant shall immediately discontinue performance.

In the event of Authority’s termination of this Agreement due to no fault or failure of performance by Consultant, Authority shall pay Consultant for services satisfactorily performed up to the effective date of termination. Upon termination, Consultant shall immediately deliver to the Authority any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by Consultant or given to Consultant, in connection with this Agreement. Such materials shall become the property of Authority.

Consultant shall have no other claim against Authority by reason of such termination, including any claim for compensation.

20. COMPLIANCE WITH LAWS
Consultant shall keep itself informed of all applicable federal, state and local laws, ordinances, codes, regulations and requirements which may, in any manner, affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. Consultant shall, at all times, observe and comply with all such laws and regulations, including, but not limited to the Americans with Disabilities Act, the Stored Communications Act, 18 U.S.C. Section 2701, et seq., California Civil Code Sections 1798.80 through 1798.84, and the California Consumer Privacy Act, Civil Code Section 1798.100 et seq. Authority, and its officers and employees, shall DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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not be liable at law or in equity by reason of the failure of the Consultant to comply with this paragraph.

Consultant represents and agrees that all personnel engaged by Consultant in performing services are and shall be fully qualified and are authorized or permitted under state and local law to perform such services. Consultant represents and warrants to Authority that it has all licenses, permits, certificates, qualifications, and approvals required by law to provide the services and work required to perform services under this Agreement, including a business license. Consultant further represents and warrants that it shall keep in effect all such licenses, permits, and other approvals during the term of this Agreement.

21. CONFLICT OF LAW
This Agreement shall be interpreted under, and enforced by the laws of the State of California. The Agreement and obligations of the Parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities). Any suits brought pursuant to this Agreement shall be filed with the Superior Court of the County of Santa Clara, State of California.

22. ADVERTISEMENT
Consultant shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pertaining to the services performed under this Agreement unless prior written approval has been secured from Authority to do otherwise.

23. WAIVER
A waiver by Authority of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.

24. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by a written document signed by both Authority and Consultant.

25. AUTHORITY
The individual(s) executing this Agreement represent and warrant that they have the legal Authority and authority to do so on behalf of their respective legal entities.

26. INSERTED PROVISIONS
Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to make such insertion on application by either Party.

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27. CAPTIONS AND TERMS
The captions in this Agreement are for convenience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement.

28. AUTHORITY’S RIGHTS TO EMPLOY OTHER CONSULTANTS
Authority reserves the right to employ other consultants in connection with the subject matter of the Scope of Services.

29. EXHIBITS
The Exhibits referenced in this Agreement are attached hereto and incorporated herein by this reference as though set forth in full in the Agreement. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, or between a provision of this Agreement and a provision of Consultant’s proposal, the provisions of this Agreement shall control.

30. FORCE MAJEURE
Consultant shall not be liable for any failure to perform its obligations under this Agreement if Consultant presents acceptable evidence, in Authority’s sole judgment, that such failure was due to acts of God, embargoes, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

31. FINAL PAYMENT ACCEPTANCE CONSTITUTES RELEASE
The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of Authority from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant’s work or services. Acceptance of payment shall be any negotiation of Authority’s check or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by Authority shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by Authority for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

32. ATTORNEY FEES
In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party shall be entitled to recover all attorneys’ fees, experts’ fees, and other costs actually incurred in connection with such litigation or other proceeding, in addition to all other relief to which that Party may be entitled.

33. SEVERABILITY
If any provision in this Agreement is held by a court of competent jurisdiction to be illegal, invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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without being impaired or invalidated in any way.

34. SUCCESSORS AND ASSIGNS
The terms and conditions of this Agreement shall be binding on the successors and assigns of the Parties to this Agreement.

35. NO THIRD PARTY BENEFICIARIES INTENDED
This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

36. COUNTERPARTS; FACSIMILE/PDF/ELECTRONIC SIGNATURE
This Agreement may be executed in multiple counterparts, all of which shall be deemed an original, and all of which will constitute one and the same instrument. The Parties agree that a facsimile, PDF or electronic signature may substitute for and have the same legal effect as the original signature.

37. DRAFTING PARTY
This Agreement shall be construed without regard to the Party that drafted it. Any ambiguity shall not be interpreted against either Party and shall, instead, be resolved in accordance with other applicable rules concerning the interpretation of contracts.

IN WITNESS WHEREOF, the Parties have caused the Agreement to be executed as of the date set forth above.

RECOMMENDED FOR APPROVAL
__________________________________________________________ Amrit Singh, Chief Financial Officer/Director of Administrative Services

CONSULTANT NAME
Power MC LLC
By: ________________________
Name: ________________________
Title: _________________________
Date: __________________________

SILICON VALLEY CLEAN ENERGY

AUTHORITY
A Joint Powers Authority
By: ___________________________
Name: Girish Balachandran
Title: Chief Executive Officer
Date: __________________________
DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB 5/17/2023
ManagingMember
DeanIsa
5/19/2023
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Exhibit A
Scope of Services
PMC shall begin working on this engagement immediately following SVCE’s acceptance of this engagement letter. PMC will start gathering and reviewing all relevant project information and material related to the deal capture and settlement software solution including Adapt2’s RFP proposal and resulting contract, initial and updated project management documentation, and any other project related material made available by SVCE. PMC should be provided access to the Adapt2 test and/or market simulation software platform with a brief introduction to the currently configured screens and functionality as well as access to SVCE’s network to access and share project information and material. PMC shall meet with SVCE staff with detailed working knowledge of the current tools and business processes representing all impacted areas to gain an understanding of their current needs and future vision to better represent SVCE’s interests throughout engagement activities and communications both internally and with Adapt2. PMC will use SVCE’s list of prioritized requirements and any additional requirements uncovered during the working sessions with selected staff to identify the gaps from what Adapt2 is currently planning to deliver in the deal capture and settlements software platform. These gaps will be further evaluated to develop a plan to achieve SVCE’s expectations from the software platform. PMC will also focus available time and broad industry knowledge and experience in the areas most impacted by SVCE’s resource bandwidth constraints to keep the project progressing according to updated project timelines. In order to keep travel expenses at a minimum and to be more consistent with SVCE’s current remote working environment, PMC shall primarily work on this engagement remotely from PMC’s own facilities with occasional in person work performed at SVCE’s facilities as required. SVCE agrees that PMC shall not be required to be onsite at SVCE facilities more than fifty percent of the total hours worked on under this Engagement Letter.

DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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Exhibit B
Schedule of Performance
PMC shall deliver a plan to implement the deal capture and settlement software platform according to SVCE’s desired timeline. PMC shall work with SVCE and Adapt2 to develop and agree on a master set of requirements that better aligns Adapt2’s commitment to SVCE’s expectations. PMC shall develop new or update existing acceptance criteria to include user confirmation of the successful delivery of all agreed upon requirements. PMC shall develop tracking and reporting tools to effectively identify, manage, and communicate the project progress as well as any project issues and concerns. PMC shall develop and provide any other agreed upon material in support of SVCE during the engagement.

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Exhibit C
Compensation
Authority shall compensate Consultant for professional services in accordance with the terms and conditions of this Agreement based on the rates and compensation schedule set forth below.

Compensation shall be calculated based on the hourly rates set forth below up to the not to exceed budget amount set forth below.

The compensation to be paid to Consultant under this Agreement for all services described in Exhibit “A” and reimbursable expenses shall not exceed a total of ninety-seven thousand two hundred ninety dollars and no/100 ($97,290.00), as set forth below. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to Authority unless previously approved in writing by Authority.

Task Estimated Budget

1. Time and Materials (400 hours x $235/hour) $94,000

2. Out of pocket expenses (reimbursable expenses to equal no more than 3.5% of fees)
$3,290
Total $97,290
Rates
Personnel Hourly
Dean Isa $235.00
Invoices
Monthly Invoicing: In order to request payment, Consultant shall submit bi-weekly invoices to the Authority describing the services performed and the applicable charges (including a summary of the work performed during that period, personnel who performed the services, hours worked, task(s) for which work was performed). Authority shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth herein. Authority does not pay interest on past due amounts.

Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, photocopying, in house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Travel expenses must be authorized in advance in writing by Authority
Additional Services
Consultant shall provide additional services outside of the services identified in Exhibit A only by DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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advance written authorization from Authority Representative prior to commencement of any additional services. Consultant shall submit, at the Authority Representative’s request, a detailed written proposal including a description of the scope of additional services, schedule, and proposed maximum compensation. Any changes mutually agreed upon by the Parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.

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Exhibit D
Insurance Requirements and Proof of Insurance
Consultant shall maintain the following minimum insurance coverage:

A. COVERAGE:
(1) Workers' Compensation:

Statutory coverage as required by the State of California. (2) Liability:

Commercial general liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage.

ISO occurrence Form CG 0001 or equivalent is required.

(3) Automotive:

Comprehensive automotive liability coverage with minimum limits of $1,000,000 per accident for bodily injury and property damage. ISO Form CA 0001 or equivalent is required.
(4) Professional Liability
Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000.

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Exhibit E
Confidentiality and Data Security Requirements
Subject to the terms and conditions of the Agreement, current proprietary and confidential information of Authority regarding customers of Authority (“Authority Customers”) and/or other confidential information (collectively “Confidential Information”) may be disclosed to Consultant from time to time in connection herewith solely for the purposes set forth in the Agreement. Such disclosure is subject to the following legal continuing representations and warranties by Consultant:

1. The Confidential Information disclosed to Consultant in connection herewith may include, without limitation, the following information about Authority Customers: (a) names; (b) addresses; (c) telephone numbers and email addresses; (d) service agreement numbers and account numbers; (e) meter and other identification numbers; (f) Authority-designated account numbers; (g) electricity and gas usage (including monthly usage, monthly maximum demand, electrical or gas consumption, HP load, and other data detailing electricity or gas needs and patterns of usage); (h) billing information (including rate schedule, baseline zone, CARE participation, end use code (heat source) service voltage, medical baseline, meter cycle, bill cycle, balanced payment plan and other plans); (i) payment / deposit status; (j) number of units; and (k) other similar information specific to Authority Customers individually or in the aggregate. Confidential Information shall also include specifically any copies, drafts, revisions, analyses, summaries, extracts, memoranda, reports and other materials prepared by Consultant or its representatives that are derived from or based on Confidential Information disclosed by Authority, regardless of the form of media in which it is prepared, recorded or retained.

2. Except for electric and gas usage information provided to Consultant pursuant to this Agreement, Confidential Information does not include information that Consultant proves (a) was properly in the possession of Consultant at the time of disclosure; (b) is or becomes publicly known through no fault of Consultant, its employees or representatives; or (c) was independently developed by Consultant, its employees or representatives without access to any Confidential Information.

3. From the Effective Date, no portion of the Confidential Information may be disclosed, disseminated or appropriated by Consultant, or used for any purpose other than the purposes set forth in the Agreement.

4. Consultant shall, at all times and in perpetuity, keep the Confidential Information in the strictest confidence and shall take all reasonable measures to prevent unauthorized or improper disclosure or use of Confidential Information. Consultant shall implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the personal information from unauthorized access, destruction, use, modification, or disclosure and prohibits the use of the data for purposes not set forth in the Agreement. Specifically, Consultant shall restrict access to Confidential Information, and to materials prepared in connection therewith, to those employees or representatives of Consultant who have a “need to know” such Confidential Information in the course of their duties with respect to the Consultant program and who agree to be bound by the DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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nondisclosure and confidentiality obligations of this Agreement. Prior to disclosing any Confidential Information to its employees or representatives, Consultant shall require such employees or representatives to whom Confidential Information is to be disclosed to review this Agreement and to agree to be bound by the terms of this Agreement. Consultant shall not disclose Confidential Information or otherwise make it available, in any form or manner, to any other person or entity that is not Consultant’s employee or representative (a “Third Party”), except where that Third Party has separately entered into a nondisclosure agreement with Authority. Without limiting Consultant’s obligation of confidentiality as further described herein, Consultant shall be responsible for establishing, maintaining, and providing a written description to Authority of, a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with or are substantial similar to the security controls identified in the current version of NIST SP800-53, and that is designed to: (a) ensure the security and confidentiality of the Authority’s Data; (b) protect against any anticipated threats or hazards to the security or integrity of the Data; (c) protect against unauthorized disclosure, access to, or use of the Data; (d) ensure the proper disposal of Data; and, (e) ensure that all employees, agents, and subcontractors of Consultant, if any, comply with all of the foregoing. In no case shall the safeguards of Consultant’s data privacy and information security program used to protect Data be less stringent than the safeguards used by Consultant for its own data. If the services include handling credit card information, then the Consultant shall comply at all times with all applicable Payment Card Industry Data Security Standards (PCI-DSS). Consultant agrees and warrants that it is responsible for the security of “cardholder data” that Consultant possesses, stores, processes or transmits on behalf of the Authority, and for any impact on the security of Authority’s cardholder data environment adversely affected by any failure of Company to maintain compliance with provisions of the PCI-DSS applicable to the services. No less than annually, Consultant shall conduct a comprehensive independent third-party audit of its data privacy and information security program and provide such audit findings to Authority. The required audit shall be a SAS-70 (or successor standard) compliant audit, and Consultant shall provide the audit findings in the form of an SAS-70 Type II report.

5. Notwithstanding the above, Consultant may disclose Confidential Information to the extent required by an order, subpoena, or lawful process requiring the disclosure of such Confidential Information issued by a court or other governmental authority of competent jurisdiction, provided that Consultant notifies Authority immediately upon receipt thereof to allow Authority to seek protective treatment for such Confidential Information.

6. In the event of any act, error or omission, negligence, misconduct, or breach that permits any unauthorized access to, or that compromises or is suspected to compromise the security, confidentiality, or integrity of the Authority’s Data or the physical, technical, administrative, or organizational safeguards put in place by Consultant that relate to the protection of the security, confidentiality, or integrity of the Data, Consultant shall, as applicable: (a) notify Authority as soon as practicable but no later than twenty-four (24) hours of becoming aware of such occurrence; (b) cooperate with Authority in investigating the occurrence, including making available all relevant records, logs, files, data reporting, and other materials required to comply with applicable law or as otherwise required by Authority; (c) in the case of Confidential Information, at Authority’s sole DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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election, (i) notify the affected individuals who comprise the Confidential Information as soon as practicable but no later than is required to comply with applicable law including, but not limited to, the provisions of California Civil Code Section 1798.82, or, in the absence of any legally required notification period, within five (5) calendar days of becoming aware of the occurrence; or, (ii) reimburse Authority for any costs in notifying the affected individuals; (d) in the case of Confidential Information, provide third-party credit and identity monitoring services to each of the affected individuals who comprise the Confidential Information for the period required to comply with applicable law, or, in the absence of any legally required monitoring services, for no less than twelve (12) months following the date of notification to such individuals; (e) perform or take any other actions required to comply with applicable law as a result of the occurrence; (f) without limiting Consultant’s obligations of indemnification as further described in this Agreement, indemnify, defend, and hold harmless Authority for any and all Claims (as defined herein), including reasonable attorneys’ fees, costs, and expenses incidental thereto, which may be suffered by, accrued against, charged to, or recoverable from Authority in connection with the occurrence; (g) be responsible for recreating lost Data in the manner and on the schedule set by Authority without charge to Authority; (h) provide to Authority a detailed plan within ten (10) calendar days of the occurrence describing the measures Consultant will undertake to prevent a future occurrence and (i) upon conclusion of the occurrence, or at Authority’s request, provide to Authority a comprehensive summary of the occurrence, including reason for occurrence, details of occurrence, how occurrence was addressed and any other information required by Authority, which shall be executed by Consultant and may be relied upon by Authority as a true and accurate account of the occurrence. Notification to affected individuals, as described above, shall comply with applicable law, be written in plain language, and contain, at a minimum: name and contact information of Consultant’s representative; a description of the nature of the loss; a list of the types of data involved; the known or approximate date of the loss; how such loss may affect the affected individual; what steps Consultant has taken to protect the affected individual; what steps the affected individual can take to protect himself or herself; contact information for major credit card reporting agencies; and, information regarding the credit and identity monitoring services to be provided by Consultant. This Section shall survive the termination of this Agreement.

7. It shall be considered a material breach of this Agreement if Consultant engages in a pattern or practice of accessing, storing, using, or disclosing the Confidential Information in violation of the contractual obligations described herein. Consultant understands that if Authority finds that Consultant is engaged in a pattern or practice of accessing, storing, using, or disclosing Confidential Information in violation of this Agreement Authority shall promptly cease all disclosures of Confidential Information to Consultant. Consultant further understands that if Authority receives a customer complaint about Consultant’s misuse of data or other violation of the Disclosure Provisions, Authority shall promptly cease disclosing that customer’s information to Consultant and shall notify the California Public Utilities Commission of the complaint.

8. Consultant shall be liable for the actions of, or any disclosure or use by, its employees or representatives contrary to this Agreement; however, such liability shall not limit or DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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prevent any actions by Authority directly against such employees or representatives for improper disclosure and/or use. In no event shall Consultant or its employees or representatives take any actions related to Confidential Information that are inconsistent with holding Confidential Information in strict confidence. Consultant shall immediately notify Authority in writing if it becomes aware of the possibility of any misuse or misappropriation of the Confidential Information by Consultant or any of its employees or representatives. However, nothing in this Agreement shall obligate the Authority to monitor or enforce the Consultant’s compliance with the terms of this Agreement.

9. Consultant shall comply with the consumer protections concerning subsequent disclosure and use set forth in Attachment B to California Public Utilities Commission (CPUC) Decision No. 12-08-045.

10. In addition to any other requirements set forth in the Agreement, within ten (10) business days of receipt of Authority’s written request, and at Authority’s option, Consultant will either return to Authority all tangible Confidential Information, including but not limited to all electronic files, documentation, notes, plans, drawings, and copies thereof, or will provide Authority with written certification that all such tangible Confidential Information of Authority has been destroyed.

11. Consultant acknowledges that disclosure or misappropriation of any Confidential Information could cause irreparable harm to Authority and/or Authority Customers, the amount of which may be difficult to assess. Accordingly, Consultant hereby confirms that the Authority shall be entitled to apply to a court of competent jurisdiction or the California Public Utilities Commission for an injunction, specific performance or such other relief (without posting bond) as may be appropriate in the event of improper disclosure or misuse of its Confidential Information by Consultant or its employees or representatives. Such right shall, however, be construed to be in addition to any other remedies available to the Authority, in law or equity.

12. In addition to all other remedies, Consultant shall indemnify and hold harmless Authority, its officers, employees, or agents from and against and claims, actions, suits, liabilities, damages, losses, expenses and costs (including reasonable attorneys’ fees, costs and disbursements) attributable to actions or non-actions of Consultant and/or its employees and/or its representatives in connection with the use or disclosure of Confidential Information.

13. When Consultant fully performs the purposes set forth in the Agreement, or if at any time Consultant ceases performance or Authority requires Consultant cease performance of the purposes set forth in the Agreement, Consultant shall promptly return or destroy (with written notice to Authority itemizing the materials destroyed) all Confidential Information then in its possession at the direction of Authority. Notwithstanding the foregoing, the nondisclosure obligations of this Agreement shall survive any termination of this Agreement.

DocuSignEnvelopeID:A8429F59-4A0D-4071-BF56-AB28BB2B49DB Item 1f
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Silicon Valley Clean Energy Board of DirectorsJune 12, 2024

Silicon Valley Clean Energy Board of Directors
June 12, 2024