1 • Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Participation in CPUC
Hourly Flex Pricing Pilot
SVCE Board of Directors Meeting
November 13, 2024
Item 3
PRESENTATION
2 Purpose of Presentation
Purpose: ask that the Board approve SVCE’s participation in upcoming hourly pricing pilot
Key Info:
• Hourly Flex Pricing (HFP) pilot is CPUC-designed and PG&E-administered 3- year pilot
• Participation will benefit customers, help SVCE and regulators learn more about hourly rate implementation, and supports Load Management Standard (LMS) compliance
• Approval lets staff roll out HFP pilot, take any contracting/implementation actions needed
• If SVCE does not participate, then SVCE customers interested in enrolling in the CPUC pilot would need to opt-out of SVCE to participate Item 3
PRESENTATION
3 SVCE & California regulators (CPUC and CEC) increasingly focused on shifting usage out of costly & dirty hours of the day • CEC introduced Load Management
Standards to push widespread
demand flexibility
• Interest in stronger and more
granular signals than Time of Use
• Push usage into cleanest hours
• This push supports SVCE and
customer interests in lowering costs,
cleaner grid
CAISO hourly average net
load
Item 3
PRESENTATION
Hour
4 HFP Pilot Relationship to SVCE LMS Plan
Reminder: in
March 2024,
SVCE Board
adopted SVCE’s
first Load
Management
Standards
Compliance Plan
• Load Management Standards (LMS)
regulations require load serving
entities to file a plan to the CEC
• SVCE’s plan explored rates and
programs to meet LMS goals and
described SVCE’s intent to participate
in HFP pilot
• Approval of HFP participation
helps SVCE execute on contents
of plan and therefore meet LMS
obligations
Item 3
PRESENTATION
5 Customers Eligible for HFP Pilots
HFP pilots each focus on shifting usage for certain customer segments.
They all share the same CPUC-directed hourly pricing incentive structure.
Applicable Classes Eligible Rates
Agricultural
AG-A1,
AG-A2,
AG-B, and AG-C
Commercial and Residential
E-ELEC, EV2-A
B-6,
B-10,
B-19, and B-20
Residential and Commercial Bi-DirectionalEV2-A, E-ELEC, B-6, B-10, B-19, and B-20 Business EV BEV-1 and BEV-2
Item 3
PRESENTATION
Sa
6 Pilot Adds to SVCE’s Growing Portfolio of
Demand Flexibility Efforts
Demand flexibility
helps SVCE better
match its
demand to
supply.
Key to unlocking
cleaner and
cheaper future
grid.
SVCE’s Electric
Homes Rate (E-ELEC)
SVCE’s GridShift
Program
SVCE’s Lights On
Silicon Valley
Program
Request for
Proposals for
Comprehensive
Demand Flex
Solar and battery to
shift out of peak daily
Additional differentiation
on TOU periods
Managed app; now
piloting hourly price
signal
Out now – looking for
customer demand
flexibility services
Item 3
PRESENTATION
12 a.m. OFF-PEAK PEAK 9 p.m. 12 a.m.
PARTIAL-PEAK
ss SSS
VALLEY
ENERGY
GridShift:
EV Charging
Cheaper, Greener. Smarter
O
PfNINS H A
CLEAN ENERGY V ClfanIMW
FOO PRO*O%AL%
ro«
Demand rtoaiMHv ter
7 How is the Pilot Structured?
Customers still get their normal monthly bill, savings earned are trued up annually
The pilot is not a new rate that will be charged to customers. It is an hourly incentive mechanism separate from regular bill a customer pays.
Hourly price is applied to change in load from customer’s previous year baseline.
Customer receives an informational-only performance report every month.
How can customers save? Reduce load from baseline during high hourly price hours (peak) and increase load from baseline during low hourly price hours (off-peak) After 12 months, performance reports are trued up & net savings are credited. Bill protection: net total recorded charges & credits will never result in more than regular bill.
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PRESENTATION
8 Pilot Fiscal Impacts
Depends on scale of uptake and response to prices
Impacts to SVCE -
• SVCE covers the cost of customer savings
(i.e., annual true-up credits)
• No substantial budget impact – cost-neutral from a power supply perspective because customer savings are offset by
power supply savings
• SVCE also eligible to receive CPUC-funded
incentive based on amount of SVCE load
enrolled
Impacts to SVCE Customers -
• Opportunity for performance incentive in
the form of an annual credit, if customer
shifts load
• Customer savings expected to be $2MM
but could range between $200k and $8MM
depending on the level of customer opt-in
rates, market prices, and changes in
usage
• Bill protection, so no risk
• Can access CPUC-funded incentives: e.g.,
equipment costs
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PRESENTATION
9 Significant Learnings and Value Expected
from Participation
• Test effectiveness of hourly price signals
• How big is the impact?
• What is the role/value of automation?
• Test effectiveness of hourly incentive baseline approach with no punitive element
• See if customer and SVCE energy savings materialize
• Ensure customers interested in pilot stay with SVCE
• If SVCE does not participate, then customers interested in enrolling in the pilot would need to opt-out of SVCE to participate
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PRESENTATION
10 Actions Needed to Move Forward
SVCE will need to:
• Enter into agreement with PG&E
• Submit an Advice Letter to the CPUC
Implementation details are being finalized, but SVCE may also need to:
• Adjust method for annual performance reconciliation
• Enter into implementation agreements with other
vendors
SVCE has option to:
• Stop new customer enrollment at any time and can
adjust, if needed
Approval by Board will delegate to staff the ability to take next steps, continue to work with PG&E on launch and annual performance reconciliation PG&E soft launch
between October
and November; full
outreach in January
2025
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PRESENTATION
11 Concluding Thoughts + Request
Request: approve SVCE’s
participation in the HFP pilot
for eligible agricultural,
residential, and commercial
customers as aligned with
PG&E’s offers and with
delegation to staff to effect
implementation.
HFP Pilot participation key for LMS compliance and SVCE’s exploration of real-time pricing
Nov
2024
Nov
2024
Aug 2026
2025-
2027
BOD Approval
SVCE submits participation letter to CPUC
SVCE continues to assess pilot impacts and
demand flexibility options beyond pilot
CPUC pilot mid-term evaluation
Item 3
PRESENTATION
12 Appendix
Item 3
PRESENTATION
13 Time
Dependent
Rates
TOU Rates,
Hourly
Rates, Sub-hourly Rates
Marginal
cost-based
rate (RTP)
Promoting Demand Flexibility Through
Hourly Pricing aka Real Time Pricing
• Time-dependent rate = a rate that can vary
depending on the time of day to encourage off-peak
electricity use and reductions in peak electricity use
• Time-of-use (TOU) rate = a rate with predefined
prices that vary according to the time of day, the
season and/or the day type (weekday, weekend)
• Marginal cost-based rates (RTP) = a rate that
accounts for the marginal energy cost, the marginal
capacity cost (generation, transmission, and
distribution), and any other appropriate time and
location dependent marginal costs, including the
locational marginal cost of associated greenhouse
emissions, on a time interval of no more than one
hour. Also called dynamic rate/price or hourly
rate/price
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PRESENTATION
14 Existing Demand Flexibility
Programs/Rates
SVCE’s Lights On
Silicon Valley
Program
Helps customers install solar and battery
systems that in addition to providing
resiliency benefits are used to form an
aggregation of batteries that can be
controlled to benefit the grid reducing
demand during system peak periods.
SVCE’s Electric
Homes Rate (E-ELEC)
Increases the cost of energy that’s used
during peak periods by 10% relative to
PG&E’s generation charges, while providing a
30% discount to all energy that’s used
during off-peak periods.
SVCE’s GridShift
Program
Provides an app that helps customers
optimize their EV charging so that they’re
using electricity at the ideal time given
pricing and grid conditions. The program is
being expanded to pilot hourly signals.
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PRESENTATION
15 Baseline Load & Customer Savings Formula
The Baseline calculation methodology is designed to reduce customer’s monthly bill variability
Baseline Calculation
Step 1: Calculate the Scaling Factor
Avg delivered kWh in current month billing period ÷ Avg delivered kWh in same month of prior year = Scaling Factor
Step 2: Calculate 24-hour average delivered load of same month of prior year; weekdays & weekends are averaged separately.
Step 3: Calculate the hourly Baseline
Scaling Factor X hourly delivered kWh from prior year = hourly baseline load Customer Savings Calculation
(Actual Usage X TOU) - ((Baseline Load X TOU) + (Actual Usage - Baseline load X RTP)) Item 3
PRESENTATION
16 Illustrative Example of Customer with Electric
Vehicle Home Charging
EV2A Example Profile
to Illustrate Analysis:
Hourly kWh Change x Market Price at time
TOU Rate
Relative
Shape
Hourly
Price
Relative
Shape
Item 3
PRESENTATION
Relative
Hourly
Load
(avg=l)
EV2A Example Avg 24 Hour Day
4 2
3.5 1-8
Base EV2A Usage Medium Shift EV2A Usage
Relative TOU Relative Price Shape Relative Hourly Price Shape Relative
Hourly
Price
(avg=l)
17 Savings Analysis Assumptions
Key assumptions used in tabulating possible range of savings Rate Classes Modeled:
• Electric Vehicle Home
Charging Rate
• Commercial and Industrial
Customer Rates
Adoption Scenarios
Rate Low Medium High
EV2A 0.5% 4% 8%
B20S 5% 10% 15%
B20P 1% 8% 17%
B20T 1% 8% 17%
Shifting Scenarios
Rate Low Medium High
EV2A 27.3% 54.5% 81.8%
B20S 0.1% 0.8% 4.2%
B20T 0.2% 1.6% 8.2%
B20P 0.1% 0.9% 4.3%
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PRESENTATION
18 EV and Industrial Customer Scenarios
Pilot Savings for Customers Over 32 Months* by Scenario Combination *November 2024- June 2027
EV2A Low Medium High Full
Low $4,119 $32,955 $65,909 $823,868
Medium $11,421 $91,366 $182,732 $2,284,153
High $22,373 $178,983 $357,966 $4,474,581
Per
Customer
Change
Rate Class Adoption
B20S Low Medium High Full
Low $5,371 $10,743 $16,114 $107,426
Medium $6,503 $13,006 $19,508 $130,056
High $11,532 $23,063 $34,595 $230,633
Rate Class Adoption
Per
Customer
Change
B20P Low Medium High Full
Low $2,857 $22,857 $48,572 $285,715
Medium $3,466 $27,726 $58,917 $346,571
High $6,170 $49,363 $104,897 $617,042
Rate Class Adoption
Per
Customer
Change
B20T Low Medium High Full
Low $2,129 $17,030 $36,188 $212,869
Medium $3,006 $24,048 $51,103 $300,604
High $6,905 $55,243 $117,391 $690,535
Rate Class Adoption
Per
Customer
Change
Analyzed Group
Total EV2A & B20 Low Medium High Full
Low $14,476 $83,584 $166,783 $1,429,878
Medium $24,395 $156,146 $312,260 $3,061,384
High $46,980 $306,653 $614,850 $6,012,791
Low Medium High Full
Low $194,757 $1,124,483 $2,243,781 $19,236,616
Medium $328,198 $2,100,678 $4,200,939 $41,185,786
High $632,041 $4,125,498 $8,271,769 $80,892,021
Approximate SVCE 32 Month Total
MWh
10,666,667
Per
Customer
Change
Approximate All of SVCE Adoption
Approx. All of SVCE 32 Month MWh
Rate Class Adoption
Total 32 Month MWh 792,865
Per
Customer
Change
NOTES:
1) This is the potential revenue impact with corresponding cost reduction. Effectively $0 margin impact.
2) SVCE would also receive an incentive for enrolling
customers of $20 per kW-year of customer enrollment subject to a $3,600,000 cap for all CCAs
Item 3
PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Long-term Clean Targets
SVCE Board of Directors Meeting
November 13, 2024
Item 4
PRESENTATION
2 What we will discuss today
Recommendation Overview & Current Targets
Background: September Board Discussion Recap
Potential Targets:
• Annual
• Monthly (new)
• Hourly
• CFE
• PPA Metric (new)
Other Considerations
Staff and Executive Committee Recommendations for Board Consideration
Item 4
PRESENTATION
3 Request and Purpose
SVCE staff and the Executive Committee recommend establishing new long-term Clean energy targets, as a percent of retail sales, and minimum Renewable Portfolio Standard (RPS) as follows:
1. 2030-2034: 75% RPS retail sales/ 100% Clean measured annually
2. 2035-2045: 100% RPS retail sales/100% Clean measured annually
3. Allow for 10% margin of error on targets to help manage risk. If expected short-fall exceeds 10% staff would return to the board for additional guidance.
4. Define clean energy resources to include RPS-eligible resources and carbon-free large hydroelectricity and nuclear energy
5. Include line losses as applicable
Additionally direct staff to return to the Board by March 2025 with recommendations for how to:
1. Incorporate and inform the Board of the expected clean position and any expected shortfall.
2. Incorporate hourly GHG reductions in assessment and approval of PPAs
3. Report on clean hourly progress
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PRESENTATION
4 Existing Near-Term Targets
Clean and RPS targets for the mid-term period, 2025
through 2029, will remain at 100% clean with an RPS target of at least five percent above minimum compliance
requirements as provided for in California’s RPS program.
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PRESENTATION
5 Key Planning and Policy Questions
What should SVCE's Clean and RPS target be for 2030, 2035, 2040, 2045? Should we set an Annual, Hourly and/or Other Clean target? How to balance long-term vs. short-term contracts?
Should SVCE have an additionality requirement (i.e., only new build)? How much should SVCE rely on hydro and nuclear (market & allocations)? How much “room” to leave for CPE and emerging technologies? What is the role of virtual power plants and distributed energy resources in meeting targets?
Should we pursue local generation?
Given overall targets, what should customer product offerings look like? Item 4
PRESENTATION
6 September Board Recap and New
Considerations
Board Meeting:
• Presented E3 findings including build, rate impact, and cost of achieving 24/7 carbon-free portfolio
• Discussed uncertainty due to market conditions, load and regulatory risk (esp. allocations from PG&E and CPE)
• Overall support for not adopting 24/7 given the risk, however desire to go beyond 100% clean on an annual basis
Post-meeting Additions:
• Staff assessed adding a monthly clean target and/or including a greenhouse gas (GHG) reducing metric in making portfolio decisions • Clarification on definition of clean to align with the state’s definition including line losses
• Inclusion of uncertainty bands
Item 4
PRESENTATION
7 Capacity Additions to Meet Various Clean
Targets
• 100% hourly matching requires 2,300 MW of new capacity by 2035 vs. 664 MW in 100% annual case • High probability of hourly matching vs. expected hourly matching increases need 15-20% • Wind resources are a significant contributor to hourly matching Existing contracts
and assumed
allocations
(~1400 MW)
New contract
requirements
Pattern filled resources are existing resources already in portfolio CFE:
88%
CFE:
98%
CFE Scores for Hourly Scenarios exceed 99%
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PRESENTATION
Installed Capacityfor Select Scenarios- 2035
Hydro Allocation >4-hr Battery 8-hr Battery + 10-hr PSH Solar aWind Geothermal 8 Cost and Risk Summary
Modelled annual procurement costs increase $300M under a 100% hourly matching scenario • Costs may be largely offset by revenues but there is significant market risk • More over-procurement = more portfolio risk
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PRESENTATION
9 Net Procurement Costs for 100%
Hourly Case
Expected Cost: 4.3 cents/kWh ($43/MWh).
Expected Offsetting revenue: 3.6 cents/kWh ($36/MWh)
Net costs 0.7 cents/kWh or $7 MWh
Analysis assumes SVCE is a price-taker and market prices are based on 2024 Preferred System Plan; assumes
market participants will not exceed SB100 requirements.
Results suggest procurement costs may largely be offset by market revenues based on model assumptions. However, These results are highly uncertain and dependent on market conditions.
Item 4
PRESENTATION
2022
cents/kWh
5.00 4.50
4.00 3.50
3.00 2.50
2.00 1.50
1.00 0.50
0.00 -0.50
Procurement Costs
(assuming noenergy or REC sales)
PotentialEnergy Revenue
2 _ Net Costs w/ Energy Revenue
(assuming 75% revenue)
Net Costs w/ Energy Revenue
-Irl (assuming 100%revenue)
Net Costs w/ Energy REC Revenue
(assuming 100% revenue)
PotentialREC Revenu
Hourly
100%
10 Previously Presented Merits of Clean
Options
Minimum
Compliance
Annual
(90 to 100%)
Hourly – 24x7 CFE
2035 Target 90% annual 90 to 100% 100% 90%+
Clean
GHG reduction
Reliable
Meets RA
Affordable
Rate Impact
Comments • Higher compliance
risk (no built-in
excess)
• Current SVCE
policy
• Short-term
challenges
• Aligns with SB100
• Hard to set
achievable target
• Risk of stranded
assets due to over
procurement
• Incents putting
resources in
“dirtier” hours
without islanding
the LSE
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PRESENTATION
11 New Option: Monthly
• What: Achieve 100% clean on a monthly basis (vs. annual) • How: Purchase monthly Short-term renewable energy credits (RECs) and/or carbon-free to fill gaps in long-term portfolio. • Why: Closer to 24x7 than annual requirement.
• Why Not: Emissions follows a daily pattern; limited seasonal benefits.
Seasonal patterns for LT resources creates difficult to fill (or sell) open positions. Likely expensive given resource availability.
Not recommended as
part of Clean Targets.
Item 4
PRESENTATION
450
400
350
g 300
250
£ 200
X 150
100
50 0
Monthly Matching
12 New Option: PPA GHG Metric
• What: Evaluate each long-term PPA for emissions impact on SVCE portfolio • How: Estimate SVCE emissions and system-wide reduction in gas dispatch for each project. Exact details to be determined.
• Why: Ensures SVCE’s long-term portfolio and impact on grid dispatch minimize GHG emissions without “islanding” SVCE.
• Why Not: Shifts focus away from solely economic/ risk evaluation.
Forecast emissions may be inaccurate.
CO2 Unit 2030 2035
Total MMt/yr 0.36 0.21
Average emissions intensity tCO2/MWh 0.094 0.053
CO2 Unit 2030 2035
Total MMt/yr 0.32 0.18
Average emissions
intensity tCO2/MWh 0.084 0.044
SVCE Example Results: With and without wind project:
SVCE CEO already has the authority to establish evaluation metrics and has considered GHG in previous evaluations. Recommend that we monitor and report as part of Clean Targets.
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PRESENTATION
13 Measuring Clean Hours
By including GHG-emissions in evaluation efforts, SVCE will increase value of resources which emit in “dirtier” hours, thereby improving its hourly clean outlook. • Starting in 2028 SVCE will begin reporting hourly emissions as part of SB 1158. • Hourly emissions can be calculated based on:
• Carbon Free Energy Score
• Whether SVCE’s clean portfolio met its demand in a given hour • How much of SVCE’s clean portfolio met its demand in a given hour • Staff will return to the board in March to discuss how it will report clean hours 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 73% 75% 75% 72% 68% 72% 74% 87% 93% 93% 95% 96% 96% 97% 94% 93% 82% 66% 65% 65% 65% 68% 71% 72% 2 75% 77% 77% 77% 73% 72% 76% 89% 93% 93% 95% 95% 97% 97% 96% 97% 93% 70% 67% 66% 66% 69% 72% 74% 3 91% 91% 91% 91% 87% 80% 93% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 83% 74% 75% 81% 87% 90% 90% 4 92% 94% 96% 95% 92% 90% 99% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 92% 82% 83% 89% 91% 91% 92% 5 95% 95% 96% 95% 93% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 96% 87% 87% 92% 95% 95% 95% 6 90% 93% 94% 93% 90% 97% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 87% 86% 90% 90% 90% 90% 7 74% 77% 79% 78% 77% 84% 94% 99% 100% 100% 100% 100% 100% 100% 100% 99% 97% 89% 79% 79% 80% 76% 72% 74% 8 66% 69% 71% 69% 66% 76% 88% 93% 97% 98% 99% 99% 99% 98% 98% 96% 92% 79% 73% 74% 72% 66% 65% 66% 9 63% 66% 66% 65% 62% 66% 83% 92% 98% 100% 100% 99% 100% 99% 98% 95% 85% 73% 72% 72% 69% 66% 66% 66% 10 79% 81% 82% 81% 77% 74% 90% 94% 99% 100% 100% 100% 100% 100% 100% 99% 82% 70% 69% 68% 70% 72% 74% 77% 11 67% 70% 74% 73% 74% 73% 80% 94% 98% 100% 100% 100% 100% 100% 99% 92% 65% 64% 64% 64% 64% 65% 66% 68% 12 64% 65% 66% 65% 66% 67% 69% 82% 82% 89% 92% 93% 93% 93% 91% 81% 66% 63% 62% 61% 62% 62% 63% 64% Illustrative Example Reporting
Item 4
PRESENTATION
14 Defining 100% Clean
• Eligible Resources – new and existing:
• All Renewable Portfolio Standard (RPS) eligible resources. Note “buckets” for Power Content Categories (“PCC”), may change beyond 2030. In such a case staff will return to board to seek guidance
• Carbon-free Large Hydro
• Carbon-free Nuclear
• Line Losses
• SVCE has historically bought to cover “line losses” – the energy lost over transmission and distribution lines as it is transmitted from the generation facility to the customer.
• Compliance obligations are historical on “retail sales” and therefore ignore line losses (SB100), however increasingly line losses are being considered. • Historically losses has been assumed to be 6% but new regulations have created additional volatility in its value.
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PRESENTATION
15 Long-term Portfolio Uncertainty
SVCE has uncertainties on both the supply and demand side. • Significant allocation
uncertainty
• May need room for
additional procurement
orders (not shown)
• “Laddering” strategy
requires room for short-term contracts
• Supply constraints expected
to increase until new clean
capacity comes on-line
• Setting a single target is
difficult to achieve.
Item 4
PRESENTATION
SVCE Long-term Position and Potential Allocations
Geothermal ^B Biomass ^B Solar ^B Wind
^B Large Hydro (Non-Allocated) PG&E Nuclear Allocation (High Prob.) PG&E Nuclear Allocation (Unknown) ^B PG&E Hydro Allocation (High Prob.) 388888 PG&E Hydro Allocation (Unknown) IB® CPE (Unknown) Total Load LowLoad —High Load
16 Managing Uncertainty
Staff needs flexibility in managing such uncertainty.
Year Compliance
Req.(a) per SB
100
SVCE Proposed
Target*
(b)
Amount Above
Compliance
(a – b)
Proposed
Uncertainty
Band below
Clean Target
SVCE minimum
clean position
2030 60% RPS
N/A Clean
75% RPS
100% Clean
15%
46%
10% 65% RPS
90% Clean
2035 60% RPS
90% Clean
100% RPS
100% Clean
40%
16%
10% 90% RPS
90% Clean
2040 60% RPS
95% Clean
100% RPS
100% Clean
40%
11%
10% 90% RPS
90%Clean
2045 60% RPS
100% Clean
100% RPS
100% Clean
40%
6%
6% 90% RPS
90% Clean
Renewable Portfolio Standard (RPS) & Overall Clean Target (RPS plus Carbon Free) *RPS to be measured on retail sales; Clean to be measured on gross, loss adjusted load.
Item 4
PRESENTATION
I
17 Executive Committee Feedback
October 25,2024 Executive Committee meeting:
• Unanimous supportive for staff’s recommended Clean energy annual targets and definition
• Requested more information and details around how the 10% margin would be applied and when staff would report position and progress to the Board.
• Staff suggested this would be part of the annual budget development process in September.
• Requested more definition and details around assessment of and reporting of hourly GHG emissions, including how applied to evaluation and approval of Power Purchase Agreements and when provided to the Board
Item 4
PRESENTATION
18 Request and Purpose
SVCE staff and the Executive Committee recommend establishing new long-term Clean energy targets, as a percent of retail sales, and minimum Renewable Portfolio Standard (RPS) as follows:
1. 2030-2034: 75% RPS retail sales/ 100% Clean measured annually
2. 2035-2045: 100% RPS retail sales/100% Clean measured annually
3. Allow for 10% margin of error on targets to help manage risk. If expected short-fall exceeds 10% staff would return to the board for additional guidance.
4. Define clean energy resources to include RPS-eligible resources and carbon-free large hydroelectricity and nuclear energy
5. Include line losses as applicable
Additionally direct staff to return to the Board by March 2025 with recommendations for how to:
1. Incorporate and inform the Board of the expected clean position and any expected shortfall.
2. Incorporate hourly GHG reductions in assessment and approval of PPAs
3. Report on clean hourly progress
Item 4
PRESENTATION
1 New SV Clean Energy
PowerPoint Template
• Subtitle
2024 Local Agency Action
Planning
Resources to support the transition to
pollution-free buildings and transportation.
November 13, 2024
Item 5
PRESENTATION
2 Provide the Board with a status update on agency electrification readiness planning
Objective
Item 5
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
3 SVCE is launching two complementary programs to provide our member agencies $4M in technical resources and grants to enable sensible local policies and smoother local permitting.
SVCE and Member Agency Partnership
SVCE rebates and federal tax credits can reduce the financial cost of electrification. Local codes and permitting can increase adoption at the best time and with less friction. $4M
For sensible policies
and smooth
permitting
$3M
Permit Modernization
$1M
Policy
Experimentation
Item 5
PRESENTATION
SILICON VALLEY 1
CLEAN ENERGY
4 Each agency selects from a menu of options to help
their community more easily make this transition.
There are three tiers of action.
Foundational Practices Advancing Practices Leading Practices Choose 3 Foundational + Choose 3 Advancing Advancing + Choose 4 Leading Distribute info about BAAQMD, incentives, etc.
with each permit
Train on avoiding unnecessary service
upgrades
Allow plumbers to perform minor electrical
work to streamline HPWH installations per CSLB
Implement Permit Concierge Participate in meeting(s) on certified contractors network
BAAQMD ramp up (includes electrification
readiness) on remodels
Provide staff training on building electrification
technologies
Free permit pilot with outreach campaign Require disclosures about gas appliances at time of sale
Enhance pre-application support materials Insert comments in plans encouraging prewiring during other work
Implement certified contractors program
Incentive-based remodels for electrification
Adopt real-time permitting for HPWHs
Require heat pumps at time of AC install or
replacement
Item 5
PRESENTATION
5 Action Planning Progress Update
Member Agency Action Plan Status Actions Planned
Foundational Advancing Leading
Campbell Finaled 2 2 5
Cupertino Agency Reviewing TBD
Gilroy Finaled 2 2 2
Los Altos Finaled 3 3 4
Los Altos Hills Finaled 2 2 4
Los Gatos Finaled 2 3 4
Milpitas Finaled 2 4 4
Monte Sereno Finaled 1 1 5
Morgan Hill Finaled 1 3 5
Mountain View Finaled 3 5 4
Saratoga Agency Finalizing TBD
Sunnyvale Agency Finalizing TBD
County of Santa Clara Agency Reviewing TBD
Item 5
PRESENTATION
6 Member agencies are already leading the way!
1. Campbell just released a new “Electrify Your Home” webpage that simply rocks!!!
• Comprehensive
• Ties To Permitting So Customers Are Informed (with links to permitting resources) • Addresses Panel Optimization Opportunities
2. Los Altos Issues Real-Time Permits for Heat Pump Water Heaters!!! Item 5
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
7 Thank you! svcleanenergy.org
[email protected]
Item 5
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
8 Appendix
Item 5
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SILICON VALLEY <3/ CLEAN ENERGY
9 Sensible action now can make this transition easier and cheaper. For example, if every jurisdiction…
• Adopted prewiring requirements it could lead to tens of thousands of electric-ready homes by 2030.
• Required bidirectional AC at the time of replacement, it could add ~20,000 heat pumps by 2029 and save residents $ millions in redundant costs.
Note: These are meant to be illustrative examples. Assumptions in the appendix.
The Impact of Local Government Action
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SILICON VALLEY
CLEAN ENERGY
10 Sensible action now can make this transition easier and cheaper. For example, if every jurisdiction…
• Adopted prewiring requirements it could lead to tens of thousands of electric-ready homes by 2030.
• There are at least 5000 permits drawn per year in our service territory that could reasonably require pre-wiring. This could mean at least 25,000 electric-ready homes by 2030. Given the variety of ways these policies could be written, we are not stating a certain number, but rather an order of magnitude.
• Required bi-directional AC at the time of replacement, it could add ~16,000 heat pumps by 2029 and save residents $ millions in redundant costs. • According to the market saturation study that SVCE conducted, there are ~100,000 ducted AC systems in our territory and they last ~20 years. Assuming an even annual turnover, that is ~5 replacements per year and ~20,000 by 2029 if policies went into effect in 2025.
The Impact of Your Leadership - Assumptions
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SILICON VALLEY
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11 1. BAAQMD will report to the Board in December on market readiness, including costs, technology, workforce, and tenant protections.
2. SVCE is coordinating the 7 Bay Area CCAs to develop scalable solutions that support our communities.
3. South Coast Air Quality Management District passed similar phase out rules, but starting with larger water heaters and including new construction.
4. CA Air Resources Board – the current proposal would make phaseout gas water heaters statewide starting in 2027.
BAAQMD Update
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SILICON VALLEY
CLEAN ENERGY
12 Resources Available
Permit
Modernizati
on
Policy
Experimentati
on
1:1 consultation w/SVCE staff (Board member & agency
staff) X X
Tailored action plan for each jurisdiction X X
Technical, legal, and staff support resources X X
Access to national-level climate change trainings X X
Stipend for part-time, one-year fellow X X
Expanded consultant support to implement leading-edge
initiatives X X
SVCE is providing a comprehensive set of
resources to help each agency meet its goals.
Availabl
e to All
Available
to
Leadershi
p
Cohort
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