Materials from this meeting can be found on SVCE’s website: SVCE Executive Committee Meeting, November 22, 2024
The next meeting of the Executive Committee will be in January based on member availability; materials will be posted no later than 72 hours in advance of the meeting.
Item 1h
Staff Report – Item 1i
Item 1i: Receive Closing Report of the 2024 Legislative Ad Hoc Committee of the Board From: Monica Padilla, CEO
Prepared by: Bena Chang, Director of Government and Legislative Affairs Date: 12/11/2024
RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) receive the closing report of the 2024 Legislative Ad Hoc Committee of the Board (“Ad Hoc Committee”).
BACKGROUND
The Ad Hoc Committee was convened at the November 2023 SVCE Board of Directors Meeting and expires at the end of 2024. The Closing Report contains documentation of the Ad Hoc Committee’s operations and activities during its tenure and is the required final product of the Ad Hoc Committee upon its expiration.
ANALYSIS & DISCUSSION
The Closing Report provides documentation of the Ad Hoc Committee’s activities as well as an update on each of the six policy areas defined as the scope of the Ad Hoc Committee upon its formation.
STRATEGIC PLAN
The activities of the Ad Hoc Committee, including presentation of this Closing Report, supports Goal 1 of the Strategic Plan to “advance policies which support SVCE’s mission to reduce dependence on fossil fuels.”
ALTERNATIVE
If the Board wishes to see any changes to the Closing Report, SVCE can update the Closing Report and place it on the agenda for a future Board of Directors meeting.
FISCAL IMPACT
None.
ATTACHMENTS
1. Closing Report of the Ad Hoc Committee
2. 2024 Legislative Bill Tracker
Item 1i
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Attachment 1
Closing Report of the
2024 Legislative Ad Hoc Committee of the Board
I. Committee Operations
Formation
Formation of the Legislative Ad Hoc Committee of the Board to Address Legislative Responses to Industry Transition (“Ad Hoc Committee”) was authorized by the SVCE Board of Directors at its November 2023 meeting with the following legislative platform policies:
• Affordability and Rates
• Climate Mitigation/Fuel Switching
• Clean, Reliable Grid
• Competitive Equity/Do No Harm
• Health Impact/Safety
• Equity
Members of the Ad Hoc Committee were selected at the February 2024 Board of Directors Meeting.
Membership consisted of: Chair Yvonne Martínez Beltrán, Vice Chair Elliot Scozzola, Director Larry Klein, Director Zach Hilton, Director Bryan Mekechuk, and Alternate Director Chuck Page.
Committee Activities
The Ad Hoc Committee held its inaugural meeting on April 4, 2024. At the meeting, the Committee elected Director Yvonne Martínez Beltrán as Chair and Director Elliot Scozzola as Vice Chair. The committee discussed the state budget and legislation around affordability, demand flexibility, and building electrification.
The Ad Hoc Committee held its second meeting on August 6, 2024. The committee received an update on the Inflation Reduction Act and federal grants, the state budget, the Climate Bond (Proposition 4), and discussed legislation around affordability, building electrification, and regionalization.
The Ad Hoc Committee held its final meeting on October 24, 2024, and received a recap on the 2024 legislative session and a forecast of the 2025 legislative session. The Committee provided input on the draft 2025 Legislative Policy Platform.
II. Legislative Platform Policies
The Ad Hoc Committee provides the following updates to the Board on each of the Legislative Platform policies:
Affordability and Rates
• CalCCA, the California trade association for Community Choice Aggregators including SVCE, supported a number of bills related to affordability including SB 1006 (Padilla) on a grid-enhancing technologies strategic plan, AB 2779 (Petrie-Norris) which requires a CAISO report on grid-enhancing technologies, SB 1130 (Bradford) which allows households of less than 3 people to qualify for the Family Electric Rate Assistance Program (FERA) low-income bill assistance program, and AB 2672 (Petrie-Norris) which allows residents of Project Homekey sites to enroll in the California Alternate Rates for Energy (CARE) low-income bill assistance program. These bills were signed by the Governor. In addition, CalCCA supported AB 2329 (Muratsuchi) which would have created a Climate Equity Trust Fund to use state and federal funding to pay for programs currently funded on the electricity bill. This bill died during the legislative process.
Climate Mitigation/Fuel Switching
• SVCE supported four bills this session on building electrification. SB 1221 (Min) will start a neighborhood decarbonization pilot at the California Public Utilities Commission (CPUC) and SB 382 (Becker) which requires disclosures at the point of building sale of upcoming regulations like the Bay Area Air Quality Management District’s rules on electric water heaters and furnaces. Both bills were signed by the Governor. SVCE also supported AB 2513 (Pellerin) Item 1i
Attachment 1
SILICON VALLEY \3/ CLEAN ENERGY
which requires health warning labels on new gas stoves, and SB 1095 (Becker) which prohibits mobile home parks and homeowner associations from instituting barriers to electrification. AB 2514 (Pellerin) was vetoed by the Governor, and SB 1095 (Becker) died in the legislative process.
• CalCCA supported SB 59 (Skinner), which directs the California Energy Commission (CEC) to study and potentially mandate bidirectional capability for electric vehicles.
Clean, Reliable Grid
• SVCE supported AB 2368 (Petrie-Norris), a bill that would direct the CPUC to consider mitigation measures for Resource Adequacy penalties and conduct short, mid, and long-term planning and modeling on Resource Adequacy needs.
Competitive Equity/Do No Harm
• CalCCA worked on advocacy around AB 3264 (Petrie-Norris), a bill that includes reporting on energy efficiency and demand-side management programs.
Health Impact/Safety
• SVCE engaged in legislation that would remove barriers to building decarbonization and improve health as noted in the climate mitigation section above.
Equity
• SVCE worked on affordability-related legislation, including those specifically targeted at low-income customers, as mentioned in the affordability and rates section above.
Item 1i
Attachment 1
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2024 SVCE Legislative Tracker
Bill Bill Author Bill Summary SVCE or
CalCCA
Position
Policy
Platform
Bill Status
AB 2513 Pellerin Would require all gas stoves and ranges that are manufactured after January 1, 2025 to
contain a warning label about the health
impacts of indoor air pollution.
Support Climate
Change
Mitigation
Fuel
Vetoed
SB 1095 Becker Prevents HOAs and mobile home parks from implementing provisions that inhibit
switching from gas to electric appliances.
Support Climate
Change
Mitigation
Fuel
Died
SB 1221 Min Directs CPUC to create zonal
decarbonization pilots.
Support Climate
Change
Mitigation
Fuel
Signed
SB 382 Becker Requires electrification disclosures at time of building sale.
Support Climate
Change
Mitigation
Fuel
Signed
AB 2891 Friedman Requires the CEC before July 1, 2026 to adopt technical requirements and load
management standards to allow a LSE to
reduce or modify its demand forecast
through its load management rulemaking.
Watch Died
SB 1305 Stern Requires IOUs to procure Virtual Power
Plant resources to meet Resource Adequacy
obligations starting in 2028.
Worked on
through
CalCCA
Competitive
Equity Do No
Harm
Died
AB 2037 Pappan Allows a county sealer to test and certify EV charging stations. If the sealer determines a
EVSE is inaccurate, they must notify the
owner/operator of the station, and may
choose to close the station. During the
closure, people can park at the station for
free.
Watch Signed
AB 2559 Petrie-Norris Would require Go Biz to create a website to collect information and report delays and
denials on the permitting of EV chargers.
Would require Go Biz to hire a permit
streamlining specialist to help jurisdictions.
Watch Died
Building Decarbonization
Zero Emission Vehicles
Demand Flexibility
Item 1i
Attachment 2
1 SVCE Legislative Bill Tracker
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—
—
—
—
—
—
AB 2427 McCarthy Requires local governments to adopt
permitting checklist, fees, and specific
locations for curbside EVSEs.
Watch Signed
SB 59 Skinner Directs CEC to evaluate requiring
bidirectional charging for vehicles.
CalCCA
Support
Climate
Change
Mitigation
Fuel
Signed
Income Graduated Fixed Charge
AB 1999 Irwin Would repeal the Income Graduated Fixed
Charge program by going to the pre-AB 205
language that allows the CPUC to authorize
fixed charges not to exceed $5 for CARE
customers and $10 for non-CARE customers.
Watch Died
SB 1292 Bradford Requires the CPUC before July 2027 to issue a report to the legislature on the IOUs'
implementation of income graduated fixed
charge. Would prevent the CPUC from
authorizing any fixed charge other than
income graduated fixed charge until after
the report is submitted.
Watch Died
Low-income Programs
SB 1130 Bradford Would expand the eligibility of FERA to households with less than 3 people, and
require IOUs to report annually on their
efforts to enroll customers into FERA.
CalCCA
Support
Affordability
and Rates
Signed
Reports and Transparency
AB 2462 Calderon Would add to the IOUs' existing reports to the CPUC on programs, how the current
rate trends impact households and how
electrifying more end-uses may reduce the
total cost of energy for households.
Watch Signed
AB 3264 Petrie-Norris Requires reporting on energy efficiency and demand-side management programs, ways
to reduce transmission costs, and total
annual energy costs for residential
households.
Watch Signed
AB 1912 Pacheco Requires California Council on Science and Technology to conduct analysis on whether
legislation that impact IOUs will increase
electricity rates, the safety/reliability of the
system, and the costs of any mandated
programs. This analysis would be paid for by
the 3 large IOUs through shareholder
revenue.
Watch Died
Limits on IOU Expenditures
Affordability Related Bills
Item 1i
Attachment 2
2 SVCE Legislative Bill Tracker
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—
—
—
—
—
SB 938 Min Prohibits IOUs from using ratepayer funding
on political activities, lobbying, or
advertising. This includes advocacy at the
CPUC unless the IOU was specifically called
to testify on an issue.
Watch Died
Reduce Costs on Bills
AB 2329 Muratsuchi Creates a Climate Equity Fund that would use alternate state and federal sources to
pay for programs currently funded on
electricity bills.
CalCCA
Support
Affordability
and Rates
Died
AB 2619 Connolly Requires the CPUC to develop a new Net Billing Tariff for rooftop solar customers
that meet the state's rooftop solar targets in
its SB 100 Clean Energy Joint Action Report.
All customers who install rooftop solar
before January 1, 2027 would be subject to
previous NEM 2.0.
Watch Died
SB 1374 Becker Would restore the provision for virtual net energy metering (VNEM) and net energy
metering aggregation (NEMA) customers to
get credit for self-consumption. Would re-establish this credit to be equal to what it is for single-family homes.
Watch Vetoed
SB 1006 Padilla Requires IOUs every 4 years to prepare a grid-enhancing technologies strategic plan
to cost-effectively increase transmission
capacity.
CalCCA
Support
Affordability
and Rates
Signed
AB 2409 Pappan Creates a public dashboard at OPR for
projects over $100M to detail where
projects are in the permitting process.
Watch Died
AB 3246 Garcia Would create streamlined permitting for
reconductoring transmission projects.
CalCCA
Support
Affordability
and Rates
Died
SB 1165 Padilla Allows IOUs to seek CEQA certification from the CEC for transmission lines.
CalCCA
Support
Affordability
and Rates
Died
AB 2368 Petrie-Norris Requires CPUC to use 1-in-10 loss-of-load-expectation standard and consider measures to reduce costs in Resource
Adequacy Program.
Support Clean Reliable
Grid
Signed
Transmission Interconnection Bills
Brown Act Bills
Net Billing Tariff/Rooftop Solar Bills
Reliability Bills
Item 1i
Attachment 2
3 SVCE Legislative Bill Tracker
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—
—
—
—
—
—
AB 817 Pacheco Would give non-decision-making Board
Commissions and Committees the ability to
use pandemic-era teleconferencing rules.
CalCCA
Support
Position
Competitive
Equity Do No
Harm
Died
Item 1i
Attachment 2
4 SVCE Legislative Bill Tracker
Staff Report – Item 1j
With the CEO Transition Ad Hoc Subcommittee (Committee) set to expire in Mid-December, the Committee (Rob Rennie, George Tyson, and Tina Walia) met on 11/8/24 and came up with the following thoughts:
• We decided that a formal policy regarding Director’s communications with and response to staff was beyond what is needed, and we encourage the CEO to communicate any issues with individual Directors directly.
• Regarding Director’s attendance at Board meetings, we wish to remind Directors to communicate their expected absence, change in plans (e.g. in person vs. remote), and preparation of their Alternates as substitutes as early as possible.
• Regarding Director’s role on subcommittees, we find it highly advisable that Directors wishing to serve as Chairs should expect to attend a high percentage of planned meetings in person. Those attending subcommittees as members should also be aware that, since Alternates are not permitted, meeting quorum requires a high degree of communication and response. • More broadly, we see the value of staff scheduling recurring meetings early in the year and also for Directors providing to staff information on their vacation or other travel plans as soon as these are established (or even prior, if extensive).
• We also discussed the possibility of providing a stipend for meeting attendance, as is done in some other agencies to serve as an inducement for attendance. No decision was reached on a recommendation, and we recognize that this would require a change in the JPA.
Item 1j
SILICON VALLEY
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Item 1j: Receive Closing Report from the CEO Transition Ad Hoc Committee From: Silicon Valley Clean Energy Board of Directors
Prepared by: George Tyson, SVCE Board Vice Chair
Date: 12/11/2024
Staff Report – Item 1k
Item 1k: Receive Finance and Administration Committee Report To: Silicon Valley Clean Energy Board of Directors
Prepared by: Murali Srinivasan, Finance and Administration Committee Vice Chair Date: 12/11/2024
The Finance and Administration Committee met November 25, 2024 with three committee members present and heard the following: 1) a request to recommend that the Board approve the Fiscal Year 2024-25 budget update, 2) a discussion item regarding establishing an affordable clean community fund, 3) a discussion item regarding creating a rate stabilization fund using GASB 62, and 4) a request for the Finance and Administration Committee’s support to recommend SVCE policy updates as part of staff’s policy streamlining project.
Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy, presented a discussion item on establishing a fund in the event target reserve levels are met. Staff outlined the proposed Affordable Clean Community Fund, for the following strategic priority areas: 1) Customer Discounts, 2) Scalable Support for Pollution-Free Appliances, and 3) Local and Emerging Power Supply Technology. The Committee discussed and supported staff’s proposal. Staff will present the proposed fund at the December board meeting.
Amrit Singh, CFO and Director of Administrative Services, presented an update on the Fiscal Year 2024-25 budget, providing a recap of the adopted budget assumptions and highlights of the updated budget. Some of these highlights included: a review of SVCE’s forecasted revenues, which are higher by about $85 million using the California Public Utilities Commission’s (CPUC) updated market price benchmark (MPB) ; reserve projections, with the net contribution to reserves increasing from $14 million to $96.7 million and slightly exceeding the target days of cash on hand of 350 but remaining below the maximum target of 500; and continued uncertainty due to several delays in PG&E’s ERRA update process. The Committee voted unanimously to recommend that the Board of Directors approve the updates to the operating budget, which will be presented to the Board of Directors at the December board meeting.
Michael Callahan, General Counsel, reviewed SVCE’s Policy Streamlining Project and requested the Finance and Administration Committee recommended that the Board of Directors adopt staff’s proposed revisions to Human Resources, IT, Finance, and other General and Administrative policies. The Finance and Administration Committee discussed policy controls and voted unanimously to recommend that the Board of Directors adopt staff’s changes. The Board of Directors will consider the approval of these changes at the upcoming December meeting.
CFO and Director of Administrative Services Singh presented a discussion item on creating a rate stabilization fund using the GASB 62 accounting rule which included: 1) Revenue Deferment to Future Period, 2) Impacts to the Net Position in Financial Statements, and 3) consideration of fund creation in Fiscal Year 2024-25. The Committee provided feedback and were supportive of the creation of the fund. Staff proposed engaging with Maher Accountancy to draft a potential board resolution or policy in preparation for the Committee’s review in February 2025 and future submission for Board approval.
Materials from this meeting can be found at the following link: SVCE Finance and Administration Committee Meeting 11/25/24
Item 1k
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Agenda Item: 1k Agenda Date: 12/11/2024
The next Finance and Administration Committee meeting is anticipated for February 2025 and will be determined by Finance and Administration Committee member availability; materials will be posted 72 hours before the meeting.
Item 1k
Staff Report – Item 1l
Item 1l: Receive California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 12/11/2024
Per direction from the SVCE Board on December 9, 2020 for the CEO to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power held a regular board meeting on Wednesday, November 20, 2024.
Attached is a November summary report from General Manager Alex Morris; materials from the November board meeting can be found here on the CC Power website: CC Power Meeting, 11/20/24 The next meeting of the board will be December 18, 2024 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/ ATTACHMENTS:
1. CA Community Power Board Meeting Summary from General Manager Alex Morris, November 20, 2024 Item 1l
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Item 1l
Attachment 1
California Community Power
901 H St, Ste 120 PMB 157, Sacramento, CA 95814 | cacommunitypower.org TO: CC Power Board of Directors and Alternates DATE:12/5/24 FROM: Alex Morris- General Manager
SUBJECT: Report onCC Power Regular Board of Directors Meeting - November 20, 2024 The CC Power Board of Directors held its October Board Meeting on November 20, 2024, via Zoom.
Details on the Board packet, presentation materials, and public comment letters can be found under the Meetings tab at the CC Power website: Meetings and Agendas - ca community power Highlights of the meeting included the following:
• Matters subsequent to posting the Agenda. None.
• Public Comment. None.
• Consent Agenda - The Board approved the following items:
o Minutes of the Regular Board Meeting held on October 16, 2024. • Closed Session. The Board conferred with Labor Negotiators regarding a contract extension and performance bonusfor the General Manager of California Community Power. • Regular Agenda Items:
o Report on Closed Session. Chairman Geof Syphers relayed the Board’s discussion and intent to extend the General Manager for three years with modificationsto the current contract, and to finalize the 2024 Performance Review and related performance bonus amount.
o Resolution 24-11-01 Approval of General Manager Employment Agreement.
The Board unanimously adopted a resolution to modify and use the General Manager Employee Agreement and authorized the Board Chair to execute the Agreement with General Manager Morris in accordance with orally described terms, amounting to a three-year contract extension starting in 2025. o General Manager Report - the Board heard updates on numerous ongoing or upcoming work-items. First, the Board was briefed on exploratory efforts regarding new target power projects and on plans to execute exclusivity agreements, as well as on a first of its kind West Coast offshore wind project and a potential Resource Adequacy Power Pool that might aid CCAs with cost-savings. The GM also briefed the Board on plans to kick-off work-planning effortsto inform the 2025-2026 budget. This effort followsfrom the October Fall Forum offsite’s discussion of roles and capabilities that the Board wants CC Power to offer or build towardsin service to members and in line with the 2022 Strategic Plan. This discussion showed that A Joint Powers Agency whose members are:
Central Coast Community Energy | CleanPowerSF | East Bay Community Energy | MCE | Peninsula Clean Energy | Redwood Coast Energy Authority | San Jose Clean Energy | Silicon Valley Clean Energy | Sonoma Clean Power | Valley Clean Energy
Item 1l
Attachment 1
the 2024-2025 existing work-plans generally target member’s needs and direction, yet that discussion of some strategies in the work-plan, including the potential use of Master Service Agreement contracts as a tool for scale and benefit to members, e.g. cost-savings, could be refined and may not be of interest to all members. Lastly, the Board was briefed on the findings of an inquiry into CC Power’s readiness to welcome new CCA members. Based on written input from members, the exercise highlighted how memberssupport the consideration of new members (in the future), but that near-term focus on effective and successful power project contract administration, organizational capability building, and achievement of other near-term goals are the top priorities of Board members. This finding in turn highlights that the GM may postpone consideration of new member candidates as part of achieving near-term priorities.
o Resolutions 24-10-01 - Approval of California Community Power Policies - Backstop Project Allocation Policy.The Board unanimously adopted this Resolution, which establishes a default project allocation model which could be used to help projects move forward when oversubscribed and which balancesthe interests of both larger and smaller project participants. • Public Comments on Closed-SessionItems: none
2
Staff Report – Item 1m
Item 1m: Receive California Community Choice Financing Authority Report To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 12/11/2024
The Silicon Valley Clean Energy (SVCE) Board of Directors (Board) approved participation in the California Community Choice Financing Authority (CCCFA) Joint Powers Authority on April 14, 2021. CCCFA was established with the goal to reduce the cost of power purchases for member community choice aggregators (CCAs) through pre-payment structures. SVCE is a founding member and as such serves on its board of directors. CCCFA has to date issued nearly $10 billion in prepayment bonds on behalf of CCAs, saving participating community choice ratepayers roughly $60 million annually or nearly $2 billion over the life of prepaid energy contracts.
This report serves as a recap of highlights from 2024:
• 10 meetings held in 2024;
• Added five new Associate Member agencies: San Diego Community Power, San Jose Clean Energy, Sonoma Clean Power, Valley Clean Energy, and Peninsula Clean Energy, bringing the total number of associate members to seven;
• Authorized the issuance of one or more series of Clean Energy Project Revenue bonds in an aggregate principal amount not to exceed $1,500,000,000 to finance the acquisition of a long-term supply of electricity for San Diego Community Power;
• Authorized the issuance of up to three Clean Energy Project Revenue Bonds to finance the acquisition of a long-term supply of electricity for Clean Power Alliance; • Authorized the issuance of one or more series of Clean Energy Project Revenue bonds in an aggregate principal amount not to exceed $1,500,000,000 to finance the acquisition of a long-term supply of electricity for Peninsula Clean Energy Authority;
• Authorized the issuance of one or more series of Clean Energy Project Revenue bonds in an aggregate principal amount not to exceed $1,250,000,000 to finance the acquisition of a long-term supply of electricity for the City of San Jose;
• Authorized the issuance of one or more series of Clean Energy Project Revenue bonds in an aggregate principal amount not to exceed $1,500,000,000 to finance the acquisition of a long-term supply of electricity for Sonoma Clean Power Authority;
• Recipient of Climate Bond Award for Largest US Green Municipal Issuer of 2023 The next meeting of the CCCFA board will be January 23, 2025 at 1:00 p.m.; meeting materials can be found on the CCCFA website: https://www.cccfa.org/board-meetings.html Item 1m
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Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Monica Padilla, CEO
Date: 12/11/2024
REPORT
Staff Updates
New Hires
Marlena Lopez joined SVCE December 2, 2024 as the new Human Resources/Administrative Assistant. Marlena has a background covering a variety of HR and office administration functions and will be lending her skills to our ongoing effort to create a welcoming and efficient office environment for staff and SVCE customers.
Promotions
I’m happy to announce the following promotions:
• Zoe Elizabeth has been promoted to Director of Decarbonization Policy and Community Strategies. Zoe has been with SVCE since 2019 and has been serving as the Deputy Director of Decarbonization Programs and Policy.
• Peter Mustacich has been promoted to Resource Planner as he joins the RPPL team under Zoe. • Joey Lande is moving from Energy Services Principal to Energy Services Manager, continuing to lead C&I decarb, demand flex and taking ownership of our customer lens on dynamic rate design. • Peyton Parks is also moving from Energy Services Principal to Energy Services Manager and will continue leading account services, billing and operations functions.
SVCE Organizational Realignment Update
As mentioned in October 2024, Phase 1 of an organizational realignment was underway. Specifically, to better meet our mission and serve our customers, Decarbonization Programs and Policy (DPP) and Energy Services and Community Relations (ESCR) merged into one department. The department’s new name is Customer Success, which will be led by Justin Zagunis. Justin’s title is now Director of Customer Success. Additionally, the data governance and analytics function has moved under Scott Wrigglesworth, Director of Risk Management and Analytics within the Finance and Administration Department.
As SVCE continues to evolve, the work of policy, planning, and government relations has grown in scope and importance to meeting our mission. This is especially true as uncertainty looms over the incoming federal administration’s recognition of climate change and promotion of policies to adapt and/or combat climate change. Local and community driven efforts, such as ours, will become more important to demonstrate leadership in decarbonization. Currently at SVCE, policy, planning and advocacy work is spread across multiple teams. In Phase 2 of realignment, we are bringing these functions together under the existing Regulatory, Policy, Planning and Legislative Department. With this change comes the promotion of Zoe Elizabeth to Director of Decarbonization Policy and Community Strategies where she’ll lead, along with her existing team, local and regional community decarbonization policy efforts, long term community decarbonization planning initiatives, and Item 2
AMENDED
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Agenda Item: 2 Agenda Date: 12/11/2024
Board and key community stakeholder communications and relations. This transition went into effect December 2 nd, 2024.
The leaders of the respective teams have been busy working on new workplans and defining roles and responsibilities. Our new SVCE’s organizational chart is included in Attachment 6. Staff continues to evaluate human resource needs with the expectation of requesting additional positions as part of the fiscal year 2024-25 Mid-Year Budget in March 2025.
Personnel Officer Update
Recruitment efforts continue for a Senior Financial Analyst to backfill for a promotion, as well as an Energy Services Specialist that may be filled at the journey or senior level.
Job descriptions and applications can be found on SVCE’s website: Current Job Openings 2025 Benefit Updates
During annual open enrollment rate bids, SVCE brokers were able to obtain some significant rate improvements while modernizing employer covered life insurance, short term and long-term disability plans for 2025. Those savings will be passed on by updating current benefits allocation to change from $1500 employer contribution for medical/dental/vision to $1500 employer contribution for medical with vision/dental covered by employer. Overall budget dollars allocated for the 2024-2025 budget remain the same.
Clean Energy Update
Staff continues its procurement efforts to source clean energy for calendar year 2025 and beyond. Staff executed a purchase of carbon-free nuclear energy for 2025-2027 consistent with the authority delegated to me at the November 2024 Board meeting. Given current load and renewable resources projections, staff expects to be above 91% clean for 2025.meet the 100% clean target for 2025-2027. Longer term clean procurement efforts continue, resulting from the fall 2024 request for offers.
SVCE’s clean position for 2024 is now expected to be 78% which is a drop from last month given lower than expected generation from several of our renewable power purchase agreements.
Attachment 1 provides an update of SVCE’s clean energy efforts through long-term power purchase agreements.
Customer Success Department Updates
New Program Launches
This fall, the programs and marketing teams have been very busy launching several new, key programs to help increase electrification education and adoption.
Full-Service Home Upgrades
SVCE is proud to announce the soft launch of the new Full-Service Home Upgrade program. This program makes it easier for single-family residents to complete whole-home upgrades with fixed pricing and the support of trusted partner contractors. From no-cost energy assessments to professional installation and rebate application assistance, this comprehensive electrification service ensures homeowners are supported every step of the way.
Plus, income-qualified residents may be eligible for no-cost upgrades.
Residents can learn more and schedule a complimentary home assessment at svcleanenergy.org/full-service.
Emergency Water Heater Replacement Available Now
Broken or failing water heater? This new SVCE service for single-family homes guarantees same-day service and hot water restored within 48 hours. Plus, income-qualified residents may receive no-cost upgrades. Call (408) 260-5255 or learn more at svcleanenergy.org/emergency-water-heater. . eHub 2.0 is Live!
The new and improved SVCE eHub is officially live! The upgraded digital customer resource center now provides personalized electrification support for both residential and non-residential customers. From tailored incentive tools to updated resources for businesses and contractors, eHub goes beyond education by guiding customers from learning to action, personalizing their experience to help them explore options and claim rebates more easily.
Visit eHub to enjoy the new experience: ehub.svcleanenergy.org.
Item 2
AMENDED
Agenda Item: 2 Agenda Date: 12/11/2024
Please see Attachment 2 for the Decarbonization Programs quarterly report, and Attachment 3 for a recap of our community engagement and marketing efforts this past month, including upcoming events where the SVCE Dream Home will be in the community.
Regulatory & Legislative Update
The final decision for the 2025 Energy Resource Recovery Account case at the CPUC is expected to be adopted in December. This is the case that approves of PG&E's 2025 generation rates and the Power Charge Indifference Adjustment rate, commonly referred to as the PCIA, for implementation on January 1, 2025. The latest forecasts indicate that the PCIA rate is expected to drop 33% for SVCE's vintage and that PG&E's average generation rate will likely increase by a small percentage. However, until we get PG&E's final filing in late December, implementing the CPUC's final decision we cannot definitively share the exact percentage rates will change.
The Legislature reconvened on December 2, 2024, for the start of the 2025-2026 legislative session. In their opening speeches, the leaders of the State Assembly and Senate both talked about affordability and the need to reduce the cost of living, including lowering energy costs. The Governor also called a Special Session to consider legislation to fund legal efforts that respond to the incoming federal administration.
Attachment 4 provides highlights of key regulatory and legislative activities.
Look Ahead Update
Staff continues to plan for Board and committee meetings through the end of the year. To provide the Board with a preview of what’s ahead for the Board from January through March 2025, please refer to Attachment 5.
ATTACHMENTS
1. Clean Power Update, December 2024
2. Decarbonization Programs Quarterly Report, FY 24 Q4
3. Energy Services & Community Relations Update, December 2024
4. Regulatory and Legislative Update, December 2024
5. Agenda Look Ahead, January – March 2025
6. Updated Organizational Chart
Item 2
AMENDED
Agenda Item: 2 Agenda Date: 12/11/2024
Exhibit 1 - CEO Agreements Executed Under Delegated Authority The following agreements have been executed by the CEO, consistent with the authority delegated by the Board:
1) City of Mountain View, Amendment: Decarbonization Grant Program Agreement, extends term to 12/31/2025
2) ClearResult Consulting, Amendment: Electrical Vehicle Technical Assistance, extends term to 6/30/2025 3) City of Sunnyvale, Amendment: Decarbonization Grant Program Agreement, extends term to 8/31/2026 4) MRW, Amendment: IRP Development Services, extends term to 12/31/2025 5) Beth Sussman Consulting, Agreement, Leadership Development Support, Training and Coaching, not to exceed $90,000, 1/1/2025-12/31/2025
6) Tenaska Power Services, Agreement: Scheduling Services, $12,000 per month, 12/14/2024-12/31/2025 7) Municipal Resource Group, Amendment: CAISO Technical Support and Integration of Electric Resource Services, extends term to 6/30/2025
8) City of Mountain View, Amendment: Decarbonization Grant Program Agreement, extends term to 12/31/2025
9) Clarement Behavioral Services, Agreement: EAP Services, not to exceed $15,900, 2/1/2025-12/31/2027 Item 2
AMENDED
Exhibit 2 - CEO Power Supply Agreements Executed Under Delegated Authority Counterparty Name Execution/Effective
Date
Transaction
Type Product Start Date End Date Notional Value
Clean Power Alliance 11/19/2024 Purchase Carbon-Free Energy 1/1/2025 12/31/2027 Delivery Dependent Shell Energy North America 11/15/2024 Sale Resource Adequacy 1/1/2025 3/31/2025 $360,000 NRG Energy Marketing 11/22/2024 Sale Resource Adequacy 2/1/2025 4/30/2025 $89,999 These agreements are included in the Board packet as Appendix A.
Item 2
AMENDED
0 SILICON VALLEY
CLEAN ENERGY
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 1
Clean Power Update, December 2024
SILICON VALLEY
CLEAN ENERGY
SVCE Board Meeting
December 11, 2024
CEO Report
Clean Power Update
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Item 2
Attachment 1
Clean Power Update, December 2024
CD Clean Long-term Power Agreements
*
SACRAMENTO GEOTHERMAL
BATTERY STORAGE
SOLAR STORAGE
SOLAR POWER
SArT^.^'\ 5
FRANCISCO* i WIND GENERATION
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- LONG DURATION STORAGE
\ •SAN JOSE
$3.7B+ in commitments
21 PPAs signed
18 new build projects
896 MW of Renewable Power
1,845 MWh of Battery Storage
9 Projects now delivering to SVCE:
COSO geothermal - January 2022
Slate Solar + Storage - January 2022
Casa Diablo geothermal-July 2022
Mountain View wind - July 2022
Rabbitbrush Solar + Storage -October 2022
Terra-Gen Wind - January 2023
Yellow Pine Solar + Storage - July 2023
Victory Pass Solar + Storage -March 2024
Baldy Mesa Storage (RA-only) -June 2024
Seller Project Name Technology Generation MW
Storage
MW Storage MWh
Approximate % of Annual
load in 2030
Term
(years)
Lifetime Not to
Exceed Authority
(MM$)
SVCE Board
Approval Status
1 MN8 Slate Solar + Storage 93 46.5 186 6.2% 17 $198 Oct-18 Online 2 Ormat Casa Diablo Geothermal 7 1.4% 10 $43 Feb-20 Online 3 Atlantica Coso Geothermal 43.8 6.1% 15 $331 Mar-20 Online 4 Leeward Rabbitbrush Solar + Storage 40 8 20 2.9% 15 $64 Apr-20 Online 5 NextEra Yellow Pine Solar + Storage 50 26 104 3.8% 20 $128 May-20 Online 6 Avantus Aratina Solar + Storage 80 50 200 6.3% 20 $368 Jun-20 Pre-construction 7 174 Power
Global Atlas Solar 50 3.6% 10 $32 Jan-21 Pre-construction 8 SB Energy Angela Solar + Storage 20 10 40 1.4% 15 $35 Mar-21 Pre-construction 9 AES Mountain View Wind 33.3 3.1% 20 $128 Apr-21 Online 10 Origis San Luis West Solar + Storage 62.5 15.625 62.5 3.9% 15 $132 Apr-21 Pre-construction 11 Clearway Victory Pass Solar + Storage 100 25 100 7.6% 15 $173 May-21 Online 12 Terra-Gen Cameron Crest Wind 77.7 4.6% 15 $150 May-21 Online 13 Rev Renewables Tumbleweed
Long Duration
Storage 15.9375 127.5 15 $100 Feb-22 Construction
14 Onward Goal Line
Long Duration
Storage 14.2 113.6 15 $100 Mar-22 Pre-construction
15 Ormat Geothermal Portfolio Geothermal 16.75 4.2% 20 $256 Jun-22 Pre-construction 16 OME Fish Lake Geothermal 1.82 0.4% 20 $30 Jun-22 Pre-construction 17 AES Baldy Mesa (RA-only) Storage 0 75 300 10 $81 Sep-22 Online 18 MRP Hanford Thermal + BESS 99.4 131.4 131.4 12 $280 Apr-23 Construction 19 NextEra Grace Solar 120 0 8.3% 15 $286 Aug-23 Pre-construction 20 NextEra Yellow Pine III Storage 0 115 460 15 $420 Aug-23 Pre-construction 21 Pattern SunZia Wind 100 0 0 7.6% 15 $361 Nov-23 Construction Item 2
Attachment 1
Clean Power Update, December 2024
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Item 2
Attachment 1
Clean Power Update, December 2024
Clean Energy Resources Online Progress
as of Dec, 2024
2024 -H2
1 • Hanford BESS on Peaker: Construction mode
2025 - H1
2025 -H2
Goal Line Long Duration Storage: Pre-construction
Aratina Solar + Storage: Pre-construction - delayed
San Luis West Solar + Storage: Pre-construction - delayed Atlas Solar: Pre-construction - delayed
Yellow Pine III Storage: Pre-construction
2026 - H1 Tumbleweed Long Duration Storage: Construction mode Fish Lake Geothermal: Pre-construction
2026 -H2+
•Ormat Geothermal Portfolio: Pre-construction
SunZia Wind: Construction mode
•Angela Solar + Storage: Pre-construction - delayed
Grace Solar: Pre-construction
% of Retail Sales
CY 2024 Expected Long-Term RPS
Item 2
Attachment 1
Clean Power Update, December 2024
Item 2
Attachment 1
Clean Power Update, December 2024
Clean
Volumes
(MWhs)
CD Projected Clean Position for 2024/2025
Calendar Year
•
RPS Volumes »CA RPS Standard % »SVCE RPS % »SVCE Clean % 100%
80%
60%
40%
20%
0%
6 Percentage
(%)
Item 2
Attachment 1
Clean Power Update, December 2024
305
L2 ports
installed
through
CALeVIP
DECARBONIZATION PROGRAMS
FY24 Q4 Milestones
Quarterly Report
153
L1/L2 ports
installed through
EV Charging
Incentives
1,350
completed
electrification
projects through
Home Rebates
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report SILICON VALLEY <3/ CLEAN ENERGY
Name Budget Potential Impact
Cumulative Impact To-Date
Last Quarter (Update) Next Quarter (Target)
Multifamily
Retrofits (TE and
BE)
$12.5M
300 to 1,000 MF AH
units electrified
2 multifamily sites enrolled
Completed initial intake for 2
sites
Develop Electrification
Plans for 2 sites, continue
pursuit of new sites
EV Charging
Incentives
$11.4M
80 MUDs with EVI
(720 ports)
4,000 L1/L2
chargers at
affordable housing
18 MUD active
reservations (153 ports)
13 sites completed
(149 L1/L2)
Processed 6 new MUD claims
for 77 additional EV ports
Expand enrollment, adjust
incentive levels and raise
maximum incentive per site
Home Rebates $10.05M
2,800 homes
fully/partially
electrified
1,350 homes fully/partially
electrified
Cumulative results: 604
HPWH, 885 HVAC, 48
Induction, 424 prewiring.
New application portal
delayed
Hit 1,700 claims. Launch
new rebate and claims
processes
Electrification
Rate Discount
$9.5M
5,000 customers
enrolled
3,000 enrolled
Significant enrollment
growth. NEM analysis
completed. Synthesized
learnings to-date
Finalize proposals for E-ELEC design revision.
Create timeline for board
presentation.
Community
Energy
Resilience
$5.15M
13 agencies complete
projects
4 completed agency
projects
Los Altos Hills completed
battery project
Monitor and reimburse
agencies as projects move
to completion
C&I
Decarbonization
Program
$5M
8,000 metric tons of
CO2e removed
through carbon saving
measures
38 customer leads, 3
Participation Agreements
in legal review
Outline program at SVCE
“Watts for Lunch”
Secure 4-9 signed
Participation Agreements,
complete site assessments
Decarbonization
Demonstration
Grants
$3.2M
8 local public facing
electric projects
1 project complete
Worked with several
agencies to execute grant
extensions to accommodate
project delays
Support grantee
community engagement
efforts and grant
extensions
Permit
Modernization
$3.2M
13 member agencies
improve electrification
permitting
Data gathered and
planning underway
Action plans are all
distributed and resources will
flow out in Q1 of 25
Resources actively
deployed in at least ten
agencies
CALeVIP 1.0 $2.5M
85 DCFC installed
1,100 L2 installed
10 DCFC installed
305 L2 installed
Continued processing
incentive payments as
installations were completed
Continue making payments
to DCFC and L2 projects as
they are completed
PROGRAMS PORTFOLIO
Active Programs
See Glossary for program descriptions. Title links to program homepage (if available).
Quarterly Report
View our active rebates here. 1
FY24 Q4
©
SILICONVALLEY
CLEAN ENERGY
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report Name Budget Potential Impact Cumulative Impact To-Date Last Quarter (Update) Next Quarter (Target) Customer
Resource Center
(eHub)
$2.1M
1.5M email opens
350K unique web
visits
811K email opens
390K web visits,
735 total claimed rebates
(375 yard equipment)
Sent emails promoting:
Yard Care Promotion
Solar + Battery Assistant
Summer Promotion
Summer Sweepstakes
Launch eHub 2.0 in
November which is a
substantial product release
Fast Charger
Incentives
$1.875M
10 DCFC installations
near MUD hotspots
10 of 10 ports are live now (4
sites)
All sites now energized.
Awaiting 1 final claim for 2
ports.
Finalize remaining claim; fold
nearby resident outreach
into EV rebate launch.
Existing Building
Policy
Experiment
$1.9M
Spur action on
building
electrification and
reduce building gas
combustion
Needs assessment for all 13
agencies
Work impacted due to
repercussions from Berkeley
decision. Rather than try to
advance policies that aren't
gaining traction, focused on
BAAQMD readiness
Develop preliminary list of
policy options for agencies
to consider in 2025
Contractor
Training
$1.7M
300 contractors
trained
500 graduate
incentives
277 contractors completed
training. 147 approved
graduate incentive claims
Q3 has historically been a
down period for training
enrollments and that
seasonal trend continued
Q4 is typically busier for
enrollments. Send mailers
directly to contractors who
participated in FutureFit
Homes. Mailers will have a
QR code to direct
contractors to the training
webpage
Programs
Marketing Fund
$1M
4,500 new program
participants
Nearly 1,200 program
participants (Go Electric
Advisor, Gridshift, Business
Rebates, Home Rebates,
Contractor Training, EVI
programs)
Rebates campaign beat
engagement goals with
6.26M impressions on
Google/Meta and a $0.26
cost per landing page visit.
Over 100 visitors used GEA
Launch a large Go Electric
campaign to help launch the
new eHub Incentives Finder
and two other programs
GridShift EV
Charging and
Rebates
$973K
Bill/emissions savings
and load shifting
capacity
1,492 EVs enrolled
55 charger rebates
Prepared for ChargeWise
(hourly price signal) pilot
launch in mid-October
Launch ChargeWise pilot and
recruit pilot participants
Go Electric
Advisor
$892K
3,600 customers use
hotline, 1,200 use
tech assistance, 350
use electrification
plans
540 customers use service
Steady participation after
rise in Q3. Ensuring advisors
are trained on upcoming
single-family programs
Increase marketing
campaigns and aim for 300
new contacts
Business
Rebates
$750K
20-30 SMBs
electrified
5 SMBs fully/partially
electrified
Met with 4 out of 13 city
Economic Development
staff. Attended 5 Chamber
events. Awarded 1 rebate
claim. Issued RFP for CBO to
support outreach
Award 2 to 4 new claims,
move forward with a CBO
partner, present at 3 to 5
chamber events, finalize
scheduling for Rebates and
Incentives workshop.
PROGRAMS PORTFOLIO
Active Programs
View our active rebates here.
2 FY24 Q4
©
SILICONVALLEY
CLEAN ENERGY
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report Name Budget Potential Impact Cumulative Impact To- Date Last Quarter (Update) Next Quarter (Target) EV Charging
Planning $725K
60 assessments,
36 projects done,
250 ports installed
72 applications
(45 completed) Prepared 3 site solutions; enrolled 5 new properties Expand enrollment; determine plans for 2025 EM&V $640K
Evaluate 80% of SVCE
programs within 1 year of
launch
9 reports completed, 2 in
progress
TO14 (Reach Codes)
completed. TO6 and TO15
draft reports under review. Active TOs extended
through 12/31/24. Complete TO6 (EVI) and TO15 (FFH). Set up TOs for Member Agency Grants and Rock Rabbit. Scope 4 new Task Orders. Reach Codes 2.0 $600K Require all new buildings to be emissions-free 13 agencies adopt electrification ordinances Campbell and Cupertino advanced their reach code Respond to requests from agencies and look ahead for future code opportunities SV Building
Electrification
Stronger
Together
$600K
Educate stakeholders
about building
electrification
35 new stakeholders
engaged to date
Contractor RFP released
on September 30
Release community
partnership grant and
conduct information session
Decarbonization
Engagement
Grants
$442K
5 communities engage
residents on climate action
topics
1 project complete Los Altos Hills completed educational kiosk project Monitor and reimburse agencies as projects move to completion Natural Gas
Phaseout
Feasibility
$300K
Complete 2 whitepapers
to inform local, regional,
and statewide policies
1 whitepaper (funding
requirements) completed
Delivered one paper on
how to fund
decarbonization in SVCE
territory. Made progress
on technical solutions
analysis paper
Develop phase 2 Scope of
work, complete technical
solutions analysis paper
Fleet
Electrification $300K
Complete fleet
electrification and charger
installation planning for 10
fleets
10 fleets in progress
Several agencies have
progressed, but finalizing
plans require PG&E to
finish their planning work. One agency close to
completion
Finalize two agency
engineered plans and
progress on two additional
plans
SV
Transportation
Electrification
Clearinghouse
$150K Create cohort to enable
equitable electrification. Merged into other programs Original goals matured into initiatives. Program merged with other programs Original goals matured into initiatives. Program merged with other programs Lights On Silicon
Valley
Power
Supply
Budget
750 SFH and 5 MF projects 657 enrolled SFH at outset of delivery period Capacity from behind-the- meter solar and storage
projects was delivered to
SVCE
Continued delivery and
adjustments to dispatch as
needed
PROGRAMS PORTFOLIO
Active Programs
View our active rebates here. 3
FY24 Q4
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report Name Budget Potential Impact Last Quarter (Update) Next Quarter (Target) Full-Service Home
Upgrades
$14M
600 single-family homes
electrified; 700 emergency water
heater replacements
Continued program design with PCE Launch program by November 2024 Resiliency,
Engagement, and
Decarbonization
(RED) Grants
$10M
Fund resiliency, engagement, and
decarbonization projects for
Member Agencies, schools,
community groups, and non-profits
Finalized program design for Member
Agency non-competitive grants and
competitive grants
Launch grants and distribute
applications to member agencies
Tariffed On Bill
(TOB) Financing
$5.2M
200 customers finance
electrification
Board contract approval. Ongoing
pilot design & coordination with other
single-family programs
Continued pilot design in preparation
for Q2 FY25 launch, including final
contract adjustments as necessary
Innovation Onramp $2.4M
1-2 pilot projects per year that
advance electrification programs
and strategies
Rock Rabbit launch delayed due to
SVCE back-end systems alignment
Launch grant solicitation for EVI and
select awardees, Launch of Rock
Rabbit app
Neighborhood
Electrification
$1.5M
Test model to electrify buildings
within a community. Electrify 15
homes and set plans for 24 homes
Conducted focus group with
residents. Feedback may inform RFP
to be released next quarter
Release RFP for vendor and host at
least one electrification event.
EV Rebates $1.5M
600 EV purchase incentives for
income qualified customers
Finalized program development and
prepared for program launch.
Recruited dealerships and community
engagement plans
Launch point-of-sale and Post-Purchase EV Rebate program. Run 3-4 EV education community events
Workforce
Development
Partnerships
$1.3M
Increase capacity to coordinate
and train skilled workforce for
residential electrification jobs
Began program design and
engagement with key partners
Complete Program Design and Launch
1 initiative
Demand Flexibility
and Virtual Power
Plant programs
$1M
Connectivity to flexible, customer-sided loads to enable bill savings, avoided generation and capacity
costs, reliability and carbon
benefits
Connected Uplight to Morgan Hill’s
meter data (manual uploads via FTP).
Ran 31 events, including 12 Level 2
events. No grid emergencies
Call 10 events (fewer during cooler
months). Evaluate M&V data from
Uplight to assess load shed per $
invested, feed into ongoing demand
flex RFP
E-Bike Rebates $500K 450 e-bikes Began initial program design Stakeholder outreach, finalize program
design
Portable Heat
Pumps
$500K 100 portable heat pumps
Reassessed priority level of program,
technology available
Deprioritized for now to focus on
higher impact programs. Revisit end of
2025
PROGRAMS PORTFOLIO
Planning
View our active rebates here. 4
FY24 Q4
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report 10/2
12/2
2/23
4/23
6/23
8/23
10/23
12/23
2/24
4/24
6/24
8/24
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
Rebates claimed:
Current Level of $ Funds Reserved (in 000s)
0 10 20 30 40 50
Commercial business
Government
Multifamily
School/Nonprofit
Incentive program for L1 and L2 EV charging
infrastructure at multifamily properties
0 200 400 600 800 1000
HPWH
HP HVAC
Panel Upgrades
Pre-wiring
Meter Removals
Funds Reserved:
Funds Claimed:
Goal:
Home Rebates
Provide incentives to residents for heat pump
water heaters (HPWH), heat pump HVAC systems,
service panel upgrades, induction cooktops, and
pre-wiring to replace gas appliances.
EV Charging Planning
Assistance in site assessment, preliminary
design, and applying to rebates for charging at
multifamily housing and small and medium
workplace properties.
EV Charging Incentives
Number of Claims
PROGRAMS HIGHLIGHTS FY24 Q4
5 $1.63M
$3.85M
$548K
35 Sites, 150 ports
Rebates reserved:
= 5 Installed EVSE Ports
Cumulative $ Funds Claimed to Date (in 000s)
Cumulative Applications
Completed Assessments
$572k
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report SILICON VALLEY <3/ CLEAN ENERGY
CALeVIP
Level 2 DCFC
0.000
1.000
2.000
3.000
4.000
5.000
6.000
1/23/25/2
7/29/2
1 /2
1/23
3/23
5/23
7/23
9/23
1 /23
1/24
3/24
5/24
7/24
9/24
0 100
200
300
400
500
Reserved
Provide incentives for electric vehicle (EV) chargers
as part of a regional program.
= 25 Level 2 Installations
300 Participants Complete
the Course (Phase 2)
Goal:
Funding: $1.5M
Completions
Contractor Training
Provide financial relief to contractors by
expanding their knowledge of electrification
technologies.
1K Level 2 + 85 DC Fast
Chargers
Goal:
Funding: $11.58M
= 10 Participants Complete Course
Funds Issued = 5 DCFC Installations
416
Remaining Funds
Registrations
277
$3.34M
$700K
$1.44M
$457K
$84K
6 PROGRAMS HIGHLIGHTS FY24 Q4
$1.96M
$84K
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report **********
**
**********
**********
qhqwqwquqw
*
Qf
©CLEANENERGY
1/23/25/2
7/29/2
1 /2
1/23
3/23
5/23
7/23
9/23
4/24
10/24
0 500
1000
1500
2000
9/23
10/23
1 /23
12/23
1/24
2/24
3/24
4/24
5/24
6/24
7/24
8/24
9/24
0 100,000
200,000
300,000
400,000
GridShift EV Charging
Managed EV charging app that optimizes charging
to reduce associated costs and emissions.
Charger Rebates Issued: 55
Number of Enrolled EVs
1,492
Rebate Goal: $30K
Goal:
120 EV Chargers
added to fleet
eHub Report
Online customer resource center to enable
engagement, education and action related to clean
electricity, EVs and home electrification.
= 1 email campaign completed
390,053
33,122
Unique Visits Return Visits
FY 22-23
7 PROGRAMS HIGHLIGHTS FY24 Q4
Website Visit Goal:
Reach 350K Unique Visitors
Conduct 6 email campaigns
Email Goal:
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report
A A A A A A A A
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/A\ SILICON VALLEY <3/ CLEAN ENERGY
Built Environment
Community Energy Resilience: Resources (grants) and tools for member agencies to increase individual and collective capacity to adapt to future power outages. Electric Showcase Awards 2.0: Award program to recognize residential, commercial, and non-profits who are early adopters of existing building electrification. Decarbonization Demonstration Grants: Grants to encourage member agencies and other key groups an opportunity to electrify their facilities. Focus on projects with public visibility for education/awareness purposes. Decarbonization Engagement Grants: Grants for member agencies and other key groups to work on smaller electrification engagement initiatives to engage their communities. Electrification Rate Discount: Custom rate to promote building electrification. Existing Building Policy Experimentation: Assess and support potential policy levers that member agencies can explore to mitigate emissions from existing buildings. Feasibility Assessment of Natural Gas Phase Out by 2045: Feasibility study to identify technical, legal, and economic barriers and opportunities for phasing out natural gas service by 2045 in SVCE's service territory. Contractor Training: Training and financial incentive program for contractors to expand their knowledge and installation of electrification technologies. Go Electric Advisor: Comprehensive one-on-one phone or web assistance to SVCE customers to assist them in applying for electrification incentives, technical assistance, or developing a whole-home electrification plan. Home Rebates: Incentives for various building electrification technologies for single- and small multi-family residential customers. Includes major appliances as well as eventual gas meter removal. Business Rebates: Incentives for projects at a handful of small and medium business properties. Multifamily Retrofits (BE Direct Install): Comprehensive building electrification retrofits with a direct installer for multifamily affordable housing sites. Permit Modernization: Benchmark and streamline member agency permitting and inspection processes to identify barriers and opportunities to electrification. Reach Codes 2.0: Provide model building energy codes supportive of all-electric design and EV infrastructure to member agencies along with consultant support. 8 GLOSSARY FY24 Q4
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report ^X SILICON VA
CLEAN ENERGY
CALeVIP: Incentives for L2 and DCFC publicly-accessible EV chargers funded by California Energy Commission and SVCE as part of a regional collaboration. EV Charging Incentives: Incentive program for L1 and L2 EV charging at hard-to-reach multifamily properties. Fleet Electrification Program: Competitive application for SVCE’s fleet electrification planning support and funding for site upgrades targeting a broad set of fleet types. EV Charging Planning: Technical assistance for preliminary site design and pertinent rebates for charging at multifamily housing and small and medium workplace properties. Multifamily Retrofits (TE Direct Install): Comprehensive transportation electrification retrofits with a direct installer for multifamily affordable housing sites. Fast Charger Incentives: Competitive grant application for DCFC installations in “priority zones” that support designated multifamily housing clusters. SVTEC: Regular regional stakeholder meetings focused on information sharing, solving critical issues, and attracting external funding to the SVCE community in support of EV infrastructure deployment.
GLOSSARY
Lights On Silicon Valley: Provide incentives for enrolling solar and battery systems in the SVCE grid services program. Medical Battery Program: Pilot program to deploy ~50 portable batteries to qualified customers who rely on power for medical equipment.
Customer Resource Center (eHub): Online customer resource center and marketplace to enable engagement, education, and action related to clean electricity, EVs, and home electrification.
Mobility
Power Supply
Education & Outreach
Built Environment
SVBEST: Regular regional stakeholder convenings to coordinate program alignment across building decarbonization workstreams. Tariffed On Bill (TOB) Financing: Equitable financing pilot program for electrification for low- moderate income residents focusing cost recovery through on-bill charges that are lower than bill savings.
GridShift EV Charging: Managed EV charging phone app that optimizes charging to reduce associated costs and emissions. Includes incentives for reducing grid peak demand.
Grid Integration
9 FY24 Q4
Item 2
Attachment 2
FY24 Q4 Decarbonization Strategy and Programs Quarterly Report ^X SILICON VA
CLEAN ENERGY
1 Energy Services &
Community Relations
December 2024 Updates
Item 2
Attachment 3
ESCR Update, December 2024
2 1. Outreach Events & Sponsorships
Date Sponsorship/Event Location
12/1/2024 Los Altos Festival of Lights Parade
6 p.m.
SVCE Ford Lighting powering the KMTV Livestream news van Downtown Los Altos
12/11/2024 SVCE Holiday Mixer
4:30 – 7 p.m.
SVCE-hosted event
Cupertino Community Hall
10350 Torre Ave
Cupertino, CA 95014
Item 2
Attachment 3
ESCR Update, December 2024
3 Participation Rate
Overall Participation
Rate
Residential 96.13%
96.17%
Commercial 96.53%
2. Customer Participation
Item 2
Attachment 3
ESCR Update, December 2024
SILICON VALLEY
CLEAN ENERGY
4 The December MAWG was held on December 5, 2024.
The meeting agenda included:
• 2024 SVCE Retrospective on Community Programs, Reach Code Policy and Permitting, and BAAQMD • Discussion on Electric Vehicle Infrastructure Challenges • 2025 MAWG Planning for In-Person and Virtual Meetings
3. Member Agency Working Group
December Update
Item 2
Attachment 3
ESCR Update, December 2024
5 Overview of the new eHub
eHub, our online customer resource center, has
helped many customers explore the benefits of
all-electric living. With this latest upgrade, eHub
now goes beyond education by guiding customers
from learning to action, personalizing their
experience to help them explore options and
claim rebates more easily.
What’s New:
• Incentives Finder – A robust tool that lets
customers quickly identify rebates and
incentives specific to their needs.
• Home Upgrades Webpage – Provides
information on three upgrade pathways and
step-by-step guidance for home electrification.
• Improved UX – A polished, one-stop
experience that connects educational
resources with offers and services.
4. New and Improved eHub
ehub.svcleanenergy.org
Item 2
Attachment 3
ESCR Update, December 2024
Incentives Finder
Appliance Marketplace
Find the best products for you and your family
Steps to a Home Upgrade
Three pathways to an electric home
6 5. Full-Service Home Upgrades Programs
Launch
New programs to help customers go electric
Full-Service Home Upgrades (soft launch)
Provides full-service support for whole-home
electrification, including assessment, installation,
and rebate applications. Income-qualified
customers receive no-cost installations.
www.svcleanenergy.org/full-service
Emergency Water Heater Replacement
Guarantees same-day service and hot water
restored within 48 hours for broken and failing
water heaters. Income-qualified customers
receive no-cost installations.
svcleanenergy.org/emergency-water-heater
Item 2
Attachment 3
ESCR Update, December 2024
7 As with all SVCE programs, marketing is done through a combo of tactics to reach target audiences.
These include emails, mailers, ads, events and getting info out through member agencies and community partners. Some recent highlights include an EV showcase and workshop in Gilroy.
6. EV Rebates - Marketing Highlights
Social media post
In-person workshop in Gilroy
Flyer
Item 2
Attachment 3
ESCR Update, December 2024
SILICON VALLEY <3/ CLEAN ENERGY Apply at svce.info/ev-rebate Income-qualified customers can
now get $2,000 off an electric vehicle!
NEW EV REBATE
NEW EV REBATE
Nig 7 REBATE
Acterra
o
CLEAN ENERGY
Electric Vehicle
Financial Incentives
Lunch &Learn
SATURDAY, 11/9/24 GILROY HIGH SCHOOL
11:00 AM - 1:00 PM CAFETERIA
Enjoy a delicious free meal while learning about
510,000 in federal & local EV incentives available!
Spots are limited! Save your spot today,
svce.info/evlunch
FREE LUNCH - REGISTER!
SILICON VALLEY
CLEAN ENERGY
Get $2,000 Off Your
Electric Vehicle!
EV rebate for income-qualified customers
What You Get
$2,000 rebate from Silicon Valley
Clean Energy for purchasing or
leasing a new or pre-owned electric
vehicle (EV) or plug-in hybrid EV.
1:1 customer support to help you find
over $10,000 in federal and regional
EV incentives.
Note: Some incentives require application and
approval betore purchase
How It Works
You can receive your Silicon Valley Clean Energy EV Rebate in one of two ways:
a
Receive your rebate immediately at the time of
purchase
1. Purchase or lease your EV at a participating
dealership The dealership will verify your eligibility
for the EV rebate onsite and handle all paperwork
2. Receive your rebate as a point-of-sale discount on
your purchase
| Apply for the rebate afterward
1. Purchase or lease your EV from any licensed dealer
or online retailer' on or after Oct 1, 2024.
Z Complete a reimbursement form within120 days
of the purchase or lease date.If approved, you
will receive your rebate by check in the mail within
approximately 4 weeks.
'Private vehicle sales are NOT eligible (e g. Craigslist. eBay. Facebook Maiketptace. etc.).
Who’s Eligible
To be eligible for the Silicon Valley Clean
Energy EV Rebate, you must meet ALL
criteria below:
• Be a Silicon Valley CleanEnergy customer.
• Purchase the vehicle for personal use
only, not for resale.
• Register your EV with the DMV with the
address associated with your PG&E
account
• Meet income qualifying criteria. See
website for more details
Drive Electric and Save!
lower maintenance costs,
discounts for charging and electric
rates, and high gas prices can
make it cheaper to driva an EV
than a gas vehicle.
Learn more and talk to a
Go Electric Advisor today! ^'^^^(833)243-4235 ® svcleanenergy.org/ev-rebate 8 7. Contractor event
Contractor event hosted in North and South County
Event Overview:
We successfully held our first contractor training events, engaging 41 contractors through intimate lunch-and-learn sessions. Notably, around 80% of attendees had not
previously participated in our training or utilized home or business rebates. We provided education and resources
about SVCE programs that can help contractors with their business.
Attendance Details:
Mountain View Event: 39 registered, 24 attended (61.5%
attendance; goal: 35)
Morgan Hill Event: 23 registered, 17 attended (73.9%
attendance; goal: 25)
Mountain View Event
Morgan Hill Event
Item 2
Attachment 3
ESCR Update, December 2024
9 8. Press Releases & Media
Press Releases
• Go Electric With the New and Improved eHub, an Online Customer Resource Center, Press Release, 10-15-24 Media Mentions
• Sunnyvale Electric Vehicle Expo, Patch.com, 10-30-24
• First large-scale solar energy and storage system to be built on Peninsula, Palo Alto Online, 11-12-24 • West Valley cities want to ban gas appliances amid legal ruling, San Jose Spotlight, 11-19-24 • Belle Haven townhouses become first fully electrified multifamily buildings in San Mateo County, The Almanac, 11-19-24
• Silicon Valley Clean Energy relaunches customer service eHub, The Mercury News, 11-24-24 Item 2
Attachment 3
ESCR Update, December 2024
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
December 11, 2024
SILICON VALLEY
CLEAN ENERGY
SVCE Legislative and
Regulatory Update
Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
CD Policy Updates
Regulatory Update:
1. Timely Energization
2. 2025 ERRA Forecast
Legislative Update
1. Bill status for priority bills
2. 2024 Legislative Calendar
2 Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
Regulatory
Update
for
Adoption of Electric Revenue
Requirements and Rates
Associated with its 2025 Energy
Resource Recovery Account
Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
Key Regulatory Activities
Activity Purpose Status
Timely Energization (R.24-
01-018)
To establish energization
timelines.
PG&E has filed its Advice Letter detailing how it will modify and improve customer engagement and communication for customers that are energizing projects. PG&E was required to file this Advice Letter in the first decision ordering improvements to the energization timelines that was issued in this proceeding (Decision 24-09-020). PG&E expects the initial deployment of its customer resource website to be live by Q2 2025. The website will enable:
1. Process transparency and simplicity so customers can easily understand the energization process
2. Provide timely project status updates to help the project stay on track
3. Proactively inform customers about unexpected project delays to expedite resolution.
PG&E's 2025 ERRA
Forecast (A.24-05-009)
Application of PG&E On November 25th the Commission issued its Proposed Decision ("PD") in the 2025 ERRA case, which is expected to be adopted in December. PG&E's 2025 rates will be finalized towards the end of December 2024 when PG&E submits its Annual Electric True-Up. Key take-aways:
1. PG&E had proposed that the Commission cap the forward-looking 2025 market price benchmark ("MPB") for resource adequacy ("RA"), which the Commission denied in the PD.
The RA MPB impacts SVCE's Power Charge Indifference Adjustment.
2. However, the Commission left open the possibility that the methodology for developing the MPB may be refined, through a new proceeding or reopening of another proceeding. This may impact the final MPBs for 2025.
Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
Legislative
Update
5 Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
0 SVCE and CaICCA Bill Positions
Bill Summary CaICCA or SVCE
Position
Status
SB 1095 (Becker) Prohibits mobile home parks and
homeowner associations from
instituting barriers to electric
appliances.
SVCE
Support/CaICCA
Support
Died
AB 2513 (Pellerin) Requires health warning labels
on gas stoves.
SVCE Support Vetoed
SB 1221 (Min) Creates a neighborhood zonal
decarbonization pilot at the
CPUC.
SVCE Support Signed
SB 382 (Becker) Building electrification
disclosures.
SVCE Support Signed
AB 2368 (Petrie-Norris) Reliability planning SVCE Support Signed 6 Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
0 SVCE and CaICCA Bill Positions
Bill Summary CaICCA or SVCE
Position
Status
SB 1130 (Bradford) Allows households with less than 3
people to enroll in the FERA low-income bill assistance program.
CaICCA Support Signed
AB 817 (Pacheco) Would allow Board Committees that are
purely advisory to use pandemic-era
teleconferencing rules.
CaICCA Support Died
AB 2779 (Petrie-Norris) Requires CAISO to report on any use of grid enhancing technologies to the
CPUC and legislature.
CaICCA Support Signed
SB 1165 (Padilla) Allows transmission projects to go
through the permitting process at the
CEC instead of the CPUC.
CaICCA Support Died
7 •
•
•
•
•
•
•
•
•
•
•
•
•
Item 2
Attachment 4
SVCE Leg and Reg Update, December 2024
1 Key 2024 State Legislative Milestones
January 3—Legislature Reconvenes
January 12—Last day for policy committees to hoar fiscal bills from their house lastyear January 19—Last day to submit bill requests to Legislative Counsel; lastday for committees to hoar and report to the floorbills introduced lastyear
January 31—Last day for each house to pass bills introduced lastyear February 16—Last day for bills to bo introduced
April 26—Last day for policy committees to vote on fiscal bills May 17—Last day for fiscal committees to hoar bills introduced in that house May 24—Last day for each house to pass bills introduced in that house Juno 15—Budgetbill must pass by midnight
July 3—Last day for policy committees to vote on bills
August 16—Last day for fiscal committees to vote on bills August 31—Last day for each house to pass bills
September 30—Last day for Governor to sign bills
8 •
•
•
•
•
•
•
•
•
•
•
•
•
Item 2
Attachment 5
Agenda Look Ahead: Jan - March 2025
January February March
8th: BOD Meeting
Chair and Vice Chair Appointment - Action
Executive Committee Membership
Selection -Action
Community Grant Funding Update - Info
12th: BOD Meeting
2025 SVCE Committee Selections - Action
FY 25 Programs Budget and Impact
Summary -Information
Update to Exhibits C and D of SVCE JPA -
Action
Regionalization - Discussion
FY 2025 Q1 Strategic Plan Update -
Information
Affordability -Discussion
12th: BOD Meeting
Mid-year Budget-Action
Receive Audited Financial Statements
Action
PPA Project Selection Criteria -Action
Approve Amendments to Energy Risk
Management Policy -Action
*Please note the items on this schedule may change
depending on priorities
1 Item 2
Attachment 6
AMENDED
Executive Team, Finance & Administration Department
and Power Resources and Operations Department
Monica Padilla
CEO
f X Gia Hole
Director of Human
Resources
Marlena Lopez
HR Admin Assistant
Melody Vega
Project Coordinator
Scott Wrigglesworth
Director of Risk Management and
Analytics
Karen Chang Manager of Finance
Nik Zanotto
Senior Manager of
IT and Admistratrve
Services
Aidas Baublys
Senior Financial
Analyst
Alex Krause
Senior Quantitative
Analyst
Rebecca Fang Manager of Data
and Analytics
Lisa Lai
Administrative
Analyst
Brett Sirianni
Senior Information
Technology Analyst
A A Nalini Pillay
Deputy Board Clerk/
Administrative
Assistant
Sanjay Natu
Internal Operations
Program Manager
Zakary Liske
Deputy Director of
Power Resources
Bob Tang
Power Supply
Program Manager
Simon Steiner Wholesale Energy
Market Planner
BrittaBradshaw
Power Resource Manager
Kathy Chai
Power Settlements
Planner
Demarie Weber
Regulatory &
Compliance Manager
Thomas Messier
Power Settlements
and Compliance
Analyst
Sophia Zhang
Associate Power
Analyst
Colton Heath
Trading Planner
Colleen McCamy
Associate Data
Scientist
Sangeetha Kumar
Data Engineer
1 Item 2
Attachment 6
Customer Success Department and
AMENDED
Regulatory, Policy, Planning and Legislative
Department
MonicaPadilla
CEO
Joey Lande Manager Energy
Services
Nupur Hiremath Manager of
Decarbonization
Programs and
Policy
Justin Zagunis
Director of
Customer Success
Maren Wenzel
Director of Regulatory, Policy
and Planning
Bena Chang
Director of Government and
Legislative Affairs
Zoe Elizabeth
Director of Decarbonization
Policy & Community
Strategies
Doug Bernard
Decarbonization Management
Analyst
Pamela Leonard
Deputy Director of Marketing and
Communications
Beth Trenchard
Communications
Consultant
Peyton Parks ManagerEnergy
Services
Peter Mustacich
Technical Manager
of Decarbonization
Planning and
Strategy
Anthony Eulo
Senior Manager of
Public Sector
Services
Eric Rodriguez
Decarbonization and
Community
Strategies Lead
Jessica Cornejo
Senior Community
Strategies Specialist
Jessamyn Allen
Programs Lead
Leanna Huynh
Programs Lead
Hannah Gustafson
Programs Lead
Oswaldo Martinez
Senior Programs
Specialist
« Juliette Pascual
Community
I Outreach Specialist
MichaelaPippin
Communications Manager
Emily Muniz
Communications
I Specialists
Shawn
Orgel-Olson
Programs Marketing Manager
/aA Kaley Dodson
Senior Energy
Services Specialist OKailaKiefer
Climate Corp Fellow
Ashlie Pak
Fellow
Staff Report – Item 3
Item 3: Approve Fiscal Year 2024-2025 Budget Update and 2025 Customer Rate Setting From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Date: 12/11/2024
RECOMMENDATION
Adopt Resolution 2024-16:
1. Authorizing the Chief Executive Officer (CEO) to implement SVCE generation rate changes to maintain a four percent (4%) discount to PG&E’s applicable generation rates when PG&E’s updated rates are implemented, expected to be January 1, 2025, or after, allocation of sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within three weeks of PG&E’s release of the new 2025 rates.
2. Updating the fiscal year 2024-2025 (FY 2025) operating budget that projects depositing $96.75 million into the reserves, considering updated revenues, power supply expenses, investment-earning forecasts, and the following additional allocations:
a) $0.96 million towards bill credits for California Alternate Rates for Energy1 (CARE) and Family Electric Rate Assistance2 (FERA) customers,
b) $1.7 million to the Programs Fund
EXECUTIVE COMMITTEE AND FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATIONS At the November 22nd, 2024 Executive Committee meeting and the November 25th, 2024 Finance and Administration Committee meeting, staff presented the updated budget projection, which maintains the current 4% overall customer discount rate and includes additional dollars towards low-income customers' bill credits and the programs fund to account for updated rate projections and revenues. Both committees discussed the staff’s recommendations and voted unanimously to recommend that the Board adopt the proposed budget update. The committees discussed the concerns of high electricity bills for low-income customers. Staff discussed that customer affordability is one of the key strategic priorities for SVCE, and staff is working towards assessing affordability more comprehensively, including for customers that may not qualify for the heavily discounted CARE/FERA rates.
1 For households up to 200% of federal poverty guidelines ($31,200 for households of 4), the CARE program offers a ~30-35% discount (not including additional SVCE discount and bill credits) on customers' electric bills and a 20% discount on their natural gas bills. For example, the income limit for households of 4 is $62,400. 2 For households up to 250% of federal poverty guidelines, the FERA program offers an ~18% discount (not including additional SVCE discount and bill credits) on customers' electricity bills if the household income slightly exceeds the CARE allowances. For example, the income limit for households of 4 is $78,000.
Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 12/11/2024
BACKGROUND
When the Board adopted the FY 2025 budget at the September 2024 meeting, staff explained that because of the uncertainty on the California Public Utilities Commission (CPUC)’s fall update of market price benchmarks (MPB) for Resource Adequacy (RA) and Renewable Portfolio Standards (RPS), staff used conservative assumptions in estimating revenues. Higher MPBs decrease the Power Charge Indifference Adjustment3 (PCIA). Staff also explained that PG&E recommended that the CPUC cap the RA MPBs at last year’s levels.
Staff used the prior year’s RA and RPS MPBs to develop the budget. The adopted budget showed a contribution to reserves of $14 million. Staff tried to forecast MPBs for RA and RPS and, based on this projection, estimated that revenues could increase by an additional $145 million if CPUC’s fall MPBs were to align with staff’s estimates.
In adopting the FY 2025 budget at the September 2024 meeting, the Board maintained the 4% customer discount rate and provided funding, equivalent to a 1% discount to all customers, for fixed bill credits for low-income customers. The Board also agreed to revisit funding for additional expenditures when there would be more certainty on PCIA and PG&E generation rates.
The recently issued CPUC MPBs reflect the higher RA and RPS prices, improving SVCE’s financial projections.
RA prices for 2024/2025 are up by 55%/179%, and RPS prices are up 72%/125%, respectively, compared to last year’s levels. Using NewGen Consultant’s model4, which incorporates PG&E Energy Resource Recovery Account (ERRA) and MPB updates, staff estimates that PG&E generation rates in January 2025 will decrease on average by 8 percent from average 2024 rates5 and PCIA, on average, to decrease from about 1.04 to 0.70 cents per kWh. Relative to the adopted budget, on average, SVCE’s margins improve by about 31 percent, which increases revenue projections by $85 million. However, relative to SVCE’s estimated budget margins, it decreases by 16%, which reduces revenues by $60 million. The estimated budget refers to the higher revenues of $145 million that staff had projected using its estimates for RA and RPS MPBs. The biggest driver of lower revenues is because of declines in wholesale energy prices, which significantly reduced the energy MPBs. These changes are depicted in the chart below.
3 Public Utility Code Sections 366.1 and 366.2 require the CPUC to make sure that customers leaving PG&E do not burden remaining PG&E customers with costs which were incurred to serve them. To ensure customer indifference, CCAs and Direct Access, or departing load customers are required to pay a power charge indifference adjustment (PCIA).
4 The NewGen PCIA model – PCIA Forecast Explorer v5.1, which was calibrated to PG&E’s Fall ERRA Update, including PG&E’s proposed cost allocation adjustments but not including any proposed caps on market price benchmarks.
5 PG&E’s generation rate decreased in July 2024 on average by 11% from January 2024 levels.
Item 3
Agenda Item: 3 Agenda Date: 12/11/2024
ANALYSIS & DISCUSSION
Based on the updated budget, the projected net contribution to reserves is anticipated to increase from the adopted budget forecast of $14 million to $96.75 million, as illustrated in the table below.
The primary driver for the improved financials is the improvement to SVCE’s margins resulting from lower PCIA and higher PG&E generation rates than those used in creating the adopted budget. The above
SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY 2024-25
ADOPTED UPDATED
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 441,050 526,513 85,463 19.4%
Power Supply Expense 387,145 390,091 2,946 0.8%
Operating Margin 53,905 136,422 82,516 153.1%
Operating Expenses 36,433 36,433 0 0.0%
Non-Operating Revenue (Expense) 16,275 19,168 2,893 17.8% Annual Transfers and Other Expenses
Capital Outlay 1,002 1,002 0 0.0%
Program Fund 8,821 10,530 1,709 19.4%
Nuclear Allocation 3,708 3,708 0 0.0%
Customer Bill Relief 4,411 5,370 959 21.7%
Hanford Emissions Mitigation Fund 1,800 1,800 0 0.0%
BALANCE AVAILABLE FOR RESERVES 14,005 96,746 82,741 590.8% Change
* Source: Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) ** CalCCA NewGen Model analysis using market data as of 6/28/2024 and CPUC attribute benchmarks adopted for CY 2024 (Weighted for SVCE Portfolio Load) *** CalCCA NewGen Model analysis using market data as of 6/28/2024 and market RA and RPS prices (Weighted for SVCE Portfolio Load) The above margin analyses ignore minor reductions for franchise fees (0.09 ¢/kWh) Item 3
Current Blended Adopted
2024 Rate Budget
Estimated
Budget
Updated Budget
Blended Jan-Dec
2024 Rate*
PG&E Gen Rate:
16.00 4/kWh
2025 Rate** 2025 Rate*** 2025 Rate
PG&E Gen Rate:
16.69 </kWh
Agenda Item: 3 Agenda Date: 12/11/2024
projections reflect the board-adopted 4 percent customer discount and an additional 1% discount converted to dollar bill credits for low-income customers.
The forecast also updates power supply expenses. Despite decreases in energy prices, the power supply costs increase slightly due to portfolio updates, including those for additional clean resources and Power Purchase Agreement changes, as well as for higher RPS and RA costs.
Transfers to the Program Funds increase by $1.7 million to match the updated revenue forecast. The updated budget also increases low-income customers' “1%-dollar bill credit” for updated rates. The expected monthly bill credit is about $16.94.
The forecast ending reserves level for FY 25, excluding unspent program funds and funds set aside for an SVCE office purchase, is 382 days of cash on hand (DCOH), above the target threshold of 350 but below the maximum level of 500 DCOH. The 5-year reserve forecast shows reserves hovering around target levels and decreasing towards the end of the forecast period.
Financial projections showing SVCE exceeding or staying within the range of meeting its reserves targets enable SVCE to consider funding longer-term key SVCE mission-aligned strategic priorities. Staff recommends that when reserves exceed the target level, SVCE sets these funds aside to consider funding longer-term key SVCE mission-aligned strategic priorities. These strategic priorities will be presented to the Board as a separate agenda item. For FY 2024-25, the forecast amount above the reserve target level is about $40 million. Given uncertainties in preparing a budget forecast, staff proposes funding the strategic priority fund after reviewing the available financial information of the prior fiscal year’s results and accounting for the uncertainty in the budget forecast. For FY 25, staff does not yet recommend funding because of high uncertainty regarding PCIA and PG&E generation rates.
There’s additional uncertainty in the final rates the CPUC will adopt. PG&E, as it did in the May ERRA forecast, proposes capping RA MPBs at last year’s much lower levels, which could significantly increase PCIA. The CPUC’s proposed decision issued on November 25, 2024, states that PG&E’s arguments are out of scope but could be considered in another proceeding or possibly by reopening the PCIA proceeding. Despite the judge's earlier ruling that PG&E’s arguments are out of scope, PG&E continued to make its case and now argues that the high MPBs create a cost shift. They proposed three scenarios that, if adopted in any alternate proposed decisions, could reduce SVCE’s revenues from about $20 to $134 million. While staff believes it is unlikely these out-of-scope arguments will be adopted in the current proceeding, there’s still uncertainty about how Item 3
DCOH (Inc. Unspent Earmarked Funds)* ^■DCOH(ExcL Unspent Earmarked Funds)* ^^Max Reserves ^^Target Reserves
^^Min Reserves
Agenda Item: 3 Agenda Date: 12/11/2024
the CPUC will rule. CPUC may deny PG&E’s request, accept it, or implement rates that moderate rate increases to bundled customers.
The final 2024 PCIA and PG&E generation rates will not be known until late December after PG&E further updates ERRA account balances, the CPUC issues its decision, which is expected to occur at its December 15, 2024, meeting, and PG&E files its Annual Electric True-up advice letter.
Planned Timing and Approach for 2025 Rate Updates
The SVCE rate tables will be updated during the first three weeks of the month PG&E’s new rates become effective, which is expected to be January 2025. The exact timing will depend upon when PG&E’s updated rates are received and the required time window for implementing new generation rates in SVCE’s billing system.
100% Renewable Energy Option
The GreenPrime rate for 2025, SVCE’s 100% renewable energy option, will reflect the January 2025 default GreenStart rates plus the premium of $0.017 per kWh adopted by the Board at the November 2024 Board meeting.
STRATEGIC PLAN
Rate setting is directly supported by SVCE Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”
ALTERNATIVE
Staff is open to feedback and suggestions from the Board.
FISCAL IMPACT
The updated budget improves SVCE’s financial performance, reflecting an increase in the net contribution to reserves from the adopted budget level of $14 million to $96.75 million.
ATTACHMENTS
1. Resolution 2024-16, approving customer generation rates, additional funding for bill credits for CARE/FERA customers, and programs fund
2. Fiscal Year 2024-2025 Updated Operating Budget
3. Five-year Financial Forecast
Item 3
1 RESOLUTION 2024-16
SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2024-16
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON
VALLEY CLEAN ENERGY AUTHORITY APPROVING CUSTOMER
GENERATION RATES AND THE FISCAL YEAR 2024-2025
UPDATED BUDGET
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, at the June 8, 2016, Board of Directors Meeting, the Board adopted the policy that the Authority’s customer generation rates for the default service will be one percent (1%) lower than Pacific Gas & Electric’s (PG&E) generation rates in place as of January 2017; and the policy allows reexamination of the rates, provided significant deviations in market prices or other extraordinary circumstances mandate an adjustment to the rates; and
WHEREAS, on December 13, 2023, the Board of Directors adopted Resolution No. 2023-20, which approved a customer discount rate that is currently in effect of four percent (4%) to PG&E’s generation rates; and
WHEREAS, on September 11, 2024, the Board of Directors adopted Resolution No. 2024-13 approving the fiscal year 2024-2025 operating budget, maintaining the generation rate discount of 4% when new 2025 PG&E rates are implemented, expected to be in January 2025, and allocated $4.411 million in bill credits for California Alternate Rates for Energy (CARE)/ Family Electric Rate Assistance (FERA) customers; and WHEREAS, in December 2024, due to new updated 2025 PG&E Generation and Power Charge Indifference Adjustment rate projections, the Board of Directors desires to maintain the generation rate discount at 4%, effective when new PG&E rates are implemented, expected to be in January 2025, and amend the fiscal year 2024-2025 budget, as set forth in Exhibit A (the Updated Budget), to allocate an additional $0.96 million towards bill credits for CARE/FERA customers, and an additional $1.7 million to the Programs Fund; and
WHEREAS, since PG&E is expected to issue its final customer generation rates later in December 2024, the Board of Directors desires to grant the Chief Executive Officer (CEO) the authority to adjust the Authority’s current electric generation rates for its customers upon receiving PG&E’s updated rates and with a sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within the first 3 weeks of when PG&E issues its new rates; and NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve, determine, and order as follows:
Item 3
Attachment 1
2 RESOLUTION 2024-16
Section 1. Upon the release of PG&E’s 2025 customer generation rates, the CEO is hereby authorized to amend the Authority’s generation rates to establish a discount of 4% from PG&E’s applicable generation rates.
Section 2. The Authority shall adopt the Updated Budget, as set forth in Exhibit A, as the Authority’s fiscal year 2024-2025 budget.
Section 3. The Authority’s electric generation rates, as adjusted by the CEO pursuant to Section 1 above, shall become effective when PG&E’s updated rates are implemented, expected to be on January 1, 2025, or after the allocation of sufficient time window for implementing new generation rates in the Authority’s billing system, expected to be within three weeks after PG&E releases its customer generation rates, whichever is later.
The Authority’s adjusted electric generation rates shall be set forth in an updated 2025 Electric Generation Rates Schedule. The CEO shall provide a copy of the updated 2025 Electric Generation Rates Schedule to the Board of Directors at its first meeting after the 2025 SVCE electric generation rates are finalized.
PASSED AND ADOPTED this 11th day of December 2024 by the following vote:
JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Mohan
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Chua
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Showalter
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein
Item 3
Attachment 1
3 RESOLUTION 2024-16
Chair
ATTEST:
Andrea Pizano, Board Secretary
Item 3
Attachment 1
Exhibit A
SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25
UPDATED
DESCRIPTION BUDGET
ENERGY REVENUES
Energy Sales 524,078
Green Prime 2,434
Other Income 0
TOTAL ENERGY REVENUES 526,513
ENERGY EXPENSES
Power Supply 390,091
OPERATING MARGIN 136,422
OPERATING EXPENSES
Data Management 3,734
PG&E Fees 1,516
Salaries and Retirement 17,388
Professional Services 9,370
Marketing & Promotions 1,617
General & Administrative 2,808
TOTAL OPERATING EXPENSES 36,433
OPERATING INCOME (LOSS) 99,988
NON-OPERATING REVENUES
Interest Income 19,238
TOTAL NON-OPERATING REVENUES 19,238
NON-OPERATING EXPENSES
Financing 70
TOTAL NON-OPERATING EXPENSES 70
TOTAL NON-OPERATING INCOME (EXPENSES) 19,168
CHANGE IN NET POSITION 119,156
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
Capital Outlay 1,002
Program Fund 10,530
Nuclear Allocation 3,708
Customer Bill Relief 5,370
Hanford Emissions Mitigation Fund 1,800
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 22,410
BALANCE AVAILABLE FOR RESERVES 96,746
Item 3
Attachment 1
Attachment 2
SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY 2024-25
ADOPTED UPDATED
DESCRIPTION BUDGET BUDGET $ %
ENERGY REVENUES
Energy Sales 438,837 524,078 85,241 19.4%
Green Prime 2,213 2,434 222 10.0%
Other Income 0 0 0 0.0%
TOTAL ENERGY REVENUES 441,050 526,513 85,463 19.4%
ENERGY EXPENSES
Power Supply 387,145 390,091 2,946 0.8%
OPERATING MARGIN 53,905 136,422 82,516 153.1%
OPERATING EXPENSES
Data Management 3,734 3,734 0 0.0%
PG&E Fees 1,516 1,516 0 0.0%
Salaries and Retirement 17,388 17,388 0 0.0%
Professional Services 9,370 9,370 0 0.0%
Marketing & Promotions 1,617 1,617 0 0.0%
General & Administrative 2,808 2,808 0 0.0%
TOTAL OPERATING EXPENSES 36,433 36,433 0 0.0%
OPERATING INCOME (LOSS) 17,472 99,988 82,516 472.3%
NON-OPERATING REVENUES
Interest Income 16,299 19,238 2,939 18.0%
TOTAL NON-OPERATING REVENUES 16,299 19,238 2,939 18.0%
NON-OPERATING EXPENSES
Financing 24 70 46 194.3%
TOTAL NON-OPERATING EXPENSES 24 70 46 194.3%
TOTAL NON-OPERATING INCOME (EXPENSES) 16,275 19,168 2,893 17.8% CHANGE IN NET POSITION 33,747 119,156 85,409 253.1%
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
Capital Outlay 1,002 1,002 0 0.0%
Program Fund 8,821 10,530 1,709 19.4%
Nuclear Allocation 3,708 3,708 0 0.0%
Customer Bill Relief 4,411 5,370 959 21.7%
Hanford Emissions Mitigation Fund 1,800 1,800 0 0.0%
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 19,742 22,410 2,668 13.5%
BALANCE AVAILABLE FOR RESERVES 14,005 96,746 82,741 590.8% Change
Item 3
Attachment 2
Attachment 3
($ in Thousands)
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Operating Revenue (Budget) (Forecast) (Forecast) (Forecast) (Forecast) Electricity Sales, Net1 $524,078 $506,622 $516,211 $492,677 $454,550 GreenPrime Electricity Premium $2,434 $2,532 $2,561 $2,373 $2,340 Total Operating Revenues $526,513 $509,154 $518,772 $495,050 $456,890 Operating Expense
Power Supply $390,091 $459,212 $479,680 $460,825 $463,833 Operating Margin $136,422 $49,942 $39,091 $34,225 $(6,943) Data Management $3,734 $3,920 $4,116 $4,322 $4,538
PG&E Service Fees $1,516 $1,592 $1,672 $1,755 $1,843
Salaries and Retirement $17,388 $18,258 $19,171 $20,129 $21,136 Professional Services $9,370 $9,838 $10,330 $10,846 $11,389 Marketing & Promotions $1,617 $1,698 $1,783 $1,872 $1,965 General and Administration $2,808 $3,844 $4,036 $4,238 $4,450 Transfers to Programs Fund $21,408 $10,183 $10,375 $9,901 $9,138 Total Operating Expenses $447,932 $508,546 $531,164 $513,890 $518,293 Operating Income $78,580 $608 $(12,392) $(18,839) $(61,402) Nonoperating Revenue
Investment Income $19,238 $18,679 $15,562 $12,558 $9,015 Total Non-Operating Revenues $19,238 $18,679 $15,562 $12,558 $9,015 Nonoperating Expense
Financing Cost $70 $70 $70 $70 $70
Capital Outlay $1,002 $50 $50 $50 $50
Total Non-Operating Expense $1,072 $120 $120 $120 $120
Non-Operating Income $18,166 $18,559 $15,442 $12,438 $8,895 Change in Net Position/Available for Reserves $96,746 $19,167 $3,050 $(6,402) $(52,507) Begin, Net Financial Position $488,695 $581,833 $582,586 $562,599 $542,047 Adjustment for Program Expenditure and Building Fund2
$(3,609) $(18,414) $(23,037) $(14,151) $(33,450)
End, Net Financial Position $581,833 $582,586 $562,599 $542,047 $456,089
Each year the Board transfers funds from the Operating Budget to the Decarbonization Programs Fund as shown in the above forecast under line item Transfers to Programs Fund. The line item Adjustment for Program Expenditure accounts for the difference between forecasted spend for programs versus the amount transferred to the fund. This adjustment is needed because program spending to date has been less than the amount transferred to the programs fund. The $20 million in building Fund is assumed to be spent in FY28-29.
Assumptions: 4% overall discount relative to comparable PG&E rates for FY 24-25 and FY 25-26. FY 24-25 includes additional bill credit to low income customers totaling $5.37 million. 1% discount for FY26-27, FY27-28 and FY28-29.
Item 3
Attachment 3
Staff Report – Item 4
Item 4: Proposal to Establish the Silicon Valley Clean Energy Community Fund From: Monica Padilla, CEO
Prepared by: Zoe Elizabeth, Director, Decarbonization Policy and Community Strategies Date: 12/11/2024
RECOMMENDATION
Staff request the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) provide input on the formation of the Silicon Valley Clean Energy Community Fund (the Fund). Specifically, staff proposes that SVCE sets aside funds, when available, for the following three priority initiatives:
1. Rate Stabilization and Bill Affordability
2. Scalable Support for Pollution Free Appliances
3. Local and Emerging Power Supply Technology.
Recommended allocations for each Fund priority are discussed below. A presentation will be provided with more details on the priorities and allocation options.
EXECUTIVE COMMITTEE AND FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATIONS Staff brought the proposal to establish the Silicon Valley Clean Energy Community Fund as a discussion item to the Executive Committee on November 22, 2024, and to the Finance and Administration Committee on November 25, 2024. Both committees commented on the importance of expanding bill affordability options.
Staff incorporated this feedback into the proposal by expanding the rate stabilization priority to include additional bill affordability measures (see below). Both committees agreed on the importance of establishing the Fund to support long-term strategic priorities to meet SVCE’s mission. Staff plans to return to the Executive Committee in quarter one of 2025 with a recommended resolution and policy that incorporates Board feedback.
BACKGROUND
The Board-adopted Reserve Policy (FP-09-Financial-Reserves-Policy-Amended-2024-09-11-Update-scrubbed.pdf), establishes minimum, maximum and target days of cash on hand (DCOH) thresholds. The purpose of these targets is to ensure adequate financial reserves are maintained to sustain operations even under certain stressed conditions. Implementation of the targets and policy have enabled a sustainable growth of reserve funds.
Based on the current five-year financial outlook, as provided for in Item 3 Approve Fiscal Year 2024-25 Budget Update and 2025 Customer Rate Setting of the December 2024 Board packet and illustrated below, SVCE will exceed the target DCOH in outer years (green line). This favorable situation provides an opportunity for the SVCE Board to direct and consider funding longer-term key SVCE mission-aligned strategic priorities.
Item 4
AMENDED
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 4 Agenda Date: 12/11/2024
ANALYSIS & DISCUSSION
How the Fund Would Work
Funds above Reserve Policy Targets will be identified as part of the budget process. For FY 24-25, based on the updated December 2024 budget estimate, $40M is available to establish the Fund. As part of the mid-year budget process, at the March 2025 Board meeting, staff will confirm estimates and provide a recommendation for funding the Fund.
Rational for the Fund
SVCE’s mission is bold: “Reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.” Meeting this mission will require long-term, sustained, and strategic investments. Without early direction from the Board any funds that exceed reserve targets would automatically roll into reserves, possibly exceeding the maximum threshold or staff would need to bring new plans and priorities to the Board each year. Planning, designing, and preparing for initiatives of this magnitude takes time. By providing strategic guidance now, the Board will enable staff to conduct this preparation and ultimately design better initiatives and increase the agency’s impact.
Priority Areas and Targets
By investing in the following three priority areas, SVCE will do its best to ensure that the energy transition is affordable and accessible for all in the short, medium, and long term.
1. Rate Stabilization and Bill Affordability – This funding would be set aside to ensure rate discounts compared to Pacific Gas and Electric (PG&E), even in difficult years where margins are lower, and to provide other affordability measures such as emergency bill relief. SVCE’s current overall discount target of five percent (5%), which includes four percent for all customers and an additional discount for CARE/FARE (spell out) customers, results in a cost to SVCE of approximately twenty-five million dollars per year or five million for each one percent discount. Staff proposes funding this initiative up to $75M.
2. Scalable Support for Pollution-Free Appliances – SVCE’s current program budget will fund ~700 heat pump water heaters (HPWHs) per year. However, in 2027 when the Bay Area Quality Management District’s zero-NOx appliance rules go into effect, staff estimates there will be ~10,000 HPWH installations per year in SVCE territory. The upfront cost of an HPWH is ~$4500 more than replacing a gas water Item 4
AMENDED
i i DCOH (Inc. Unspent Earmarked Funds)*
DCOH (Excl. Unspent Earmarked Funds)*
^^“Max Reserves
Agenda Item: 4 Agenda Date: 12/11/2024
heater with another gas water heater. Providing sufficient rebates and/or financing is important to lower this upfront cost for as many customers as possible. Staff estimates the need in SVCE territory is approximately thirty million dollars and recommends setting aside funding for at least the first three years of the new regulation. Staff proposes funding this initiative up to $90M.
3. Local and Emerging Power Supply Technology – Meeting long-term clean targets will require investing in new power supply technology that can provide 24/7 clean electricity all year and in local resources that bring added community value. This initiative would fund the above market costs for local and emerging power supply technologies. Staff proposes funding this initiative up to $100M.
Annual contributions to the Fund would be set by the Board and in total the Fund would not exceed $1265 million.
Funding Allocation
Staff has identified three potential ways to allocate the funding that exceeds the reserve threshold each year:
1. A strict waterfall that funds the Rate Stabilization and Bill Affordability initiative first. Once this initiative is funded to the full $75 million, the Scalable Support for Pollution-Free Appliances initiative would be funded up to $90 million, and then all future funds would be directed to Local and Emerging Power Supply Technology until it hits the target of $100 million.
2. A strict waterfall that funds the Scalable Support for Pollution-Free Appliances Initiative first and follows the structure described above for the other two initiatives.
3. A percentage-based allocation that would provide 40% to Rate Stabilization and Bill Affordability, 40% to Scalable Support for Pollution-Free Appliances, and 20% to Local and Emerging Power Supply Technology.
Staff recommends option three.
Next Steps
Based on the Board's input, staff will draft a policy and board resolution to bring to the Board for approval at a later date.
STRATEGIC PLAN
The proposal supports SVCE’s Strategic Focus Area 1, “Expand Affordability Efforts,” SVCE’s Strategic Focus Area 2, “Expand Clean and Reliable Grid Actions,” and SVCE’s Strategic Focus Area 4 “Prepare Region for Electrification at Scale,” and Goal 7, “Support all SVCE communities to decarbonize through local investments that reduce barriers and demonstrate sensible, scalable, and equitable solutions.”
ALTERNATIVES
Staff is open to suggestions from the Board of Directors.
FISCAL IMPACT
No fiscal impact at this time as this is a discussion item. If the Board moves forward and approves the Fund, staff will address the fiscal impact at such time.
Item 4
AMENDED
Staff Report – Item 5
Item 5: Approve 2025 Legislative Policy Platform and Formation of 2025 Legislative Ad Hoc Committee
From: Monica Padilla, CEO
Prepared by: Bena Chang, Director of Government and Legislative Affairs Date: 12/11/2024
RECOMMENDATION
Staff recommends that the SVCE Board of Directors approve:
1. A Legislative Policy Platform for 2025; and
2. Create an Ad Hoc Committee of the Board to Address Legislative Responses to Industry Transition (“Ad Hoc Committee”) for 2025 and adopt specific focus areas for the Ad Hoc Committee.
BACKGROUND
Policy Platform
In November 2023, the Board approved SVCE’s 2024 Legislative Policy Platform. The Legislative Policy Platform contains policy principles. After Board approval, staff then implement the policies through weighing in on legislation that aligns with the principles in the Policy Platform. This process allows SVCE to advocate in a timely manner on state and federal legislation.
Ad Hoc Committee of the Board to Address Legislative Responses to Industry Transition In 2018, SVCE established an Ad Hoc Committee to improve SVCE’s advocacy and outcomes by increasing engagement between staff and the Board members most interested in legislative matters. Subsequent Ad Hoc Committees were established every year to review legislative matters. In 2024, the Ad Hoc Committee met in April, August and October, and the Committee expires at the end of 2024. For 2025, the Board must direct the formation of an Ad Hoc Committee on legislative matters.
ANALYSIS & DISCUSSION
Policy Platform
The United States and California’s energy landscape continues to evolve rapidly. As a result, it is critical that SVCE actively engage legislators to ensure policies support SVCE customers and allow SVCE to meet short and long-term goals. The Policy Platform presents a framework for focusing SVCE resources on the policies and issues that most impact the agency and its member communities and customers. The 2025 Policy Platform includes guiding principles and example policies. The key principles include: 1) Affordability and Rates, 2) Climate Mitigation/Fuel Switching, 3) Clean, Reliable Grid, and 4) Competitive Equity/Do No Harm, 5) Health Impact/Safety, and 6) Equity. Details on principles can be found in the attached draft 2025 Legislative Policy Platform.
Item 5
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 5 Agenda Date: 12/11/2024
Ad Hoc Committee of the Board to Address Legislative and Regulatory Responses to Industry Transition In 2025, anticipated activities of the Committee include:
➢ General advocacy strategy development for state and federal activities. ➢ Feedback on priorities for legislation and the state budget. ➢ Advocacy on key legislation.
Staff recommends the following policy areas for 2025:
1. Affordability & Rates,
2. Climate Change Mitigation/Fuel Switching,
3. Clean, Reliable Grid,
4. Competitive Equity/Do No Harm,
5. Health Impact/Safety, and
6. Equity.
The Ad Hoc Committee consists of up to six Board members and may include SVCE Board member’s alternates. Staff encourages all Board members with an interest in legislative activities to consider joining the Ad Hoc Committee, which will be appointed in February, with the understanding that Ad Hoc Committee membership involves additional time on top of regular Board duties.
STRATEGIC PLAN
Approving the Policy Platform, renewing the Ad Hoc Committee and approving the Ad Hoc Committee Focus Areas for 2025 directly supports Goal 1 of the Strategic Plan to “advance policies which support SVCE’s mission to reduce dependence on fossil fuels.”
ALTERNATIVE
The Board could choose to reject or modify the 2025 Legislative Policy Platform.
If the Board does not establish an Ad Hoc Committee for 2025, SVCE staff will need to a) find alternative ways of including the Board in SVCE’s policy advocacy including holding discussion with the entire Board, or b) conduct SVCE’s 2025 legislative activities with less involvement of the Board. The former is likely to be more logistically complicated and does not allow for as much strategic discussion than establishing an Ad Hoc Committee and may slow down the ability of SVCE to act nimbly to respond to legislative proposals. The latter, given the high regard for local elected voices in Sacramento, is likely to make SVCE’s advocacy less effective.
FISCAL IMPACT
Approval of the 2025 Policy Platform and establishing an Ad Hoc Committee for 2025 is not expected to have any fiscal impact on SVCE.
ATTACHMENTS
1. 2025 Legislative Policy Platform
Item 5
1 2025 Silicon Valley Clean Energy Legislative Policy Platform Purpose
Active participation in the state and federal legislative processes is an important tool for ensuring that SVCE can continue to serve our customers and uphold our commitment to decarbonization. When Congress and the California legislature are in session, it is crucial that SVCE staff be able to quickly and efficiently determine SVCE’s positions on bills or amendments, communicate those positions to legislators, and advocate as appropriate. This platform is therefore designed to:
• Articulate SVCE’s legislative priorities for the 2025 legislative session and beyond;
• Allow SVCE staff to take positions on bills for SVCE without explicit Board approval as long as they are consistent with this platform; and • Guide optimal use of SVCE advocacy time and resources.
Process
SVCE will review the policy platform at the conclusion of the previous year’s legislative session. The purpose of the review will be to discuss the outcomes of that year’s legislative session, develop goals and priorities for the upcoming session for the following year, and identify any desired updates to this policy platform.
Updates to the platform will be drafted by SVCE staff and formally presented for a vote of the Board.
Policy Platform
Affordability & Rates
SVCE supports affordable rates that do not place an undue total energy burden on customers or discourage electrification, with consideration for the customer’s socio-economic status. SVCE is interested in lowering the overall customer energy bill while still recovering sufficient funds to operate the electricity system reliably. - Policy Examples:
o Advocate for protections for low-income customers to ensure reasonable rates and to increase access to decarbonization programs that may otherwise be inaccessible.
o Advocate for and pursue, as appropriate, alternative funding sources to help minimize ratepayer costs associated with the clean energy transition and look for ways to make accessing these funds easy.
Examples include supporting alternative transmission and distribution financing mechanisms and alternative sources for needs like wildfire mitigation and offshore wind port infrastructure.
Item 5
Attachment 1
2 o Advocate for policies that support the development of the least cost system including reducing time and costs of bringing distribution and transmission system improvements online, efforts to make the distribution planning process and preparations for an increase in distributed energy resources more transparent, options for wildfire mitigation that provide best cost to benefit ratios, and municipalization.
o Support rate structures that encourage electrification while balancing need to use energy efficiently.
o Advocate for transparent and affordable pricing for publicly funded EV charging.
o Advocate for continued use of clean energy prepay mechanisms to achieve cost savings for customers.
Climate Change Mitigation/Fuel Switching
SVCE supports funding, projects, and programs to decarbonize the economy, especially in the electric, building, and transportation sectors. SVCE seeks opportunities to amplify the learnings from our programs through regional, state, and federal levels both through policy and funding. SVCE supports efforts to remove barriers to fuel switching/decarbonization.
- Policy Examples:
o Advocate to maintain and increase funding opportunities to support clean energy and climate change mitigation, including the Federal Inflation Reduction Act. Support local administration/control of program dollars and for CCAs to be eligible recipients of grant funding as appropriate.
o Support efforts to transition buildings to electric, including removing the obligation to serve gas requirement, efforts to modernize permitting, optimizing utility allowance schedules, streamlining processes and timelines to energize projects, financing models, and supporting requirements to replace air conditioning with bidirectional heat pumps.
o Support efforts to encourage overall energy efficiency and energy conservation.
o Support funding for EV charging infrastructure, maintenance, and reliability. Ensure EV policies are technology neutral and advocate for affordable EV charging access.
o Advocate for increased funding for clean energy workforce training and investments.
o Support efforts to decarbonize industrial uses and processes, including reducing the use of baseload fuel cells that use methane gas.
Item 5
Attachment 1
3 o Support industry practices in evolving to develop robust supply chains for all-electric technologies to prepare for future widespread electrification.
o Increased customer access to sub-hourly smart meter data to avoid unnecessary service upsizing.
Clean, Reliable Grid
SVCE supports investments in, and removal of barriers to, building transmission to connect renewable projects that enable the transition to a cleaner grid. SVCE supports a reliable electric system, including the smart build out of the distribution grid to enable increased electrification and a large number of distributed energy resources to operate without straining the grid.
- Policy Examples:
o Support investments in transmission and distribution grid upgrades and efforts to reduce interconnection and energization barriers and distribution grid failures, including addressing permitting challenges, better communication between investor-owned utilities and local governments, and increased transparency of the distribution planning process conducted by investor-owned utilities.
o Support efforts to ease supply chain constraints and get renewable projects online faster.
o Advocate for investments and policies that increase the reliability of the electric system through the encouragement and fair treatment of carbon-free sources like nuclear, wind, and geothermal while recognizing the role of fossil fuels with the transition to renewables. o Ensure that penalties appropriately incentivize the production of renewables and clean capacity instead of inadvertently raising the price floor of electric resources in the market.
o Support efforts towards regionalization to achieve a more cost effective, diverse, clean, and reliable grid.
o Support innovative approaches to enhance grid reliability during peak events, such as behind-the-meter stationary sources (batteries), Virtual Power Plants, and vehicle-to-grid initiatives.
o Advocate at the CPUC and CAISO for power efficient electrification and the full integration of Distributed Energy Resources as options for solving grid constraints into planning processes, so that Distributed Energy Resources are fully valued to avoid grid infrastructure upgrades.
o Support policies to encourage connectivity of appliances for demand flexibility to reduce grid stress. Simplify regulations to facilitate vehicle-to-grid integration.
Item 5
Attachment 1
4 o Support efforts to increase transparency and usefulness of information provided to all customers on the content of the power resources. o Advocate for increased visibility into the distribution grid and an open access platform to provide clear information and signals about where Distribute Energy Resource buildout is optimal.
Competitive Equity/Do No Harm
SVCE supports the CCA model of local government governance, while acknowledging system-wide needs. Any system needs should have maximum flexibility to allow local authority and discretion to meet goals. - Policy Examples:
o Advocate to maintain CCA program autonomy.
o Advocate for fair and equitable Power Charge Indifference Adjustment (PCIA) fees or allocation of resources and benefits that prevent cost-shifting among customers. o Ensure that the role of a Central Procurement Entity preserves CCA’s responsibility to procure energy while finding a system that maximizes cost efficiency and reliability.
o Advocate for flexible Brown Act requirements that allow remote access for board members.
o Advocate for sound long-term integrated resource planning which moves away from procurement orders. However, if orders are necessary, advocate for goal-based procurement based on individual load serving entities’ needs, instead of prescriptive, technology-specific mandates and allocated regardless of need.
o Ensure that local governments that are first movers on reach code adoption are not penalized through incentive programs that only fund projects that go beyond local and state codes.
o Advocate for IOU restructuring to more closely align business interests and incentives with customer interests, including potential IOU exit from generation services.
o Advocate for streamlined reporting standards that minimize administrative burdens while maintaining local control and transparency for self-funded CCA programs.
Health Impact/Safety
SVCE supports policies that increase the safety of the electric infrastructure and the community.
- Policy Examples:
Item 5
Attachment 1
5 o SVCE recognizes the harmful health impacts of methane gas and gasoline and seeks to decarbonize buildings and transportation to address these impacts.
o Support efforts to increase the safety of the distribution and transmission infrastructure.
Equity
SVCE supports policies that consider equitable treatment of low-income and historically underserved communities through affordable electricity rates and priority access to decarbonization and climate mitigation programs. - Policy Examples:
o Support programs that invest in low-income and historically disadvantaged communities either through separate tracks that dedicate funding to or that give larger amounts of subsidies for these groups.
o Support tenant access to the benefits of decarbonization programs and tenant protections.
o Support efforts to repeal Proposition 209, which limits public agencies’ ability to engage in equity efforts.
o Support inclusive definitions of low-income and historically underserved communities that capture all communities and not just certain census tracts.
o Advocate for including community and health benefits in cost-effectiveness tests.
Item 5
Attachment 1
Staff Report – Item 6
Item 6: Approve SVCE’s Policy Updates as Part of the Agency Policy Streamlining Project From: Monica Padilla, CEO
Prepared by: Michael Callahan, General Counsel
Date: 12/11/2024
RECOMMENDATION
Staff requests the SVCE Board of Directors (Board) adopt the revisions to policies proposed herein, and summarized in the attachments, including the following policies slated for adoption or retirement:
Policies for Adoption Policies for Retirement
• Finance Accounting Policy
• Finance Budget Policy
• Finance Purchasing and
Spending Policy
• Finance Investment Policy
• Finance Delinquent Accounts &
Collections Policy
• Finance Capitalization Policy
• IT Information Technology
Policy
• G&A Files and Records
Management Policy
• HR Personnel and
Reimbursement
• G&A Vehicle and Charger Use
Policy
• G&A California Public Records
Act Policy
• G&A CEO Absence Policy
• G&A Hybrid Meetings Policy
• Finance Capital Projects Policy
• Finance Customer Generation
Rates
• Finance Purchasing Card Policy
• Finance Chart of Accounts
• IT Email Use Policy
• IT Asset Management Policy
• IT Internet Usage Policy
• IT Security Plan Policy
• IT Access Control Policy
• IT Password Protection Policy
• IT Malware Defense Policy
• IT Security Audit Policy
• IT Disaster Recovery Policy
• IT Threat-Risk Assessment
Policy
• IT Satisfaction Policy
• IT Data Breach Policy
• IT Workstation Security for
HIPPA Policy
• IT Clean Desk Policy
• IT Information Systems Use
Policy
• HR Smartphone Stipend Policy
• HR Recruitment Incentive
Policy
• HR Paid Time Off Cash Out
• HR Tuition Assistance Policy
• HR Cash in Lieu of Health
Benefits Policy
• HR Fitness Reimbursement
Benefit Policy
• HR Volunteer Time Off Policy
• HR Unpaid Leave Policy
• G&A Travel and Meeting
Expense Reimbursements
Policy
• G&A Vehicle Use Policy
• G&A Charging Station Policy
Upon Board-approval of the modifications to the various policies, staff will develop the corresponding standards or procedures to ensure proper implementation of the Board-approved policies.
Item 6
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 6 Agenda Date: 12/11/2024
EXECUTIVE COMMITTEE AND FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATIONS At the November 22, 2024 Executive Committee (ExCom) and November 25, 2024 Finance and Administration Committee (FAC) meetings, staff presented the policy revisions, which include adopting new and updated policies and retiring some existing policies while moving much of those retired policies into CEO-approved standards. The policies were split between the two committees, and both voted unanimously to recommend the Board adopt the policy revisions proposed by staff. The committees discussed the benefits of keeping policies updated and delegating appropriate decision making to the CEO while expressing a desire to ensure appropriate controls and oversight of SVCE activities. Staff discussed a regular cadence for keeping policies updated and options for ongoing oversight including a list of controls for each policy which are described in Table 3 of Attachment 1.
BACKGROUND
Since the agency’s inception, the Board has approved forty-eight (48) policies with varying levels of implementation details with many having extensive details. This set of policies has grown and evolved over time in response to several organizational needs without a blueprint for the right amount of policies or level of details to include at the policy level. The current state of Board-approved policies has become unmanageable, resulting in potential gaps in oversight and controls.
At the November 2023, FAC1 meeting, staff raised such concerns with the FAC and proposed an overhaul of the agency’s policies. The FAC shared the concern about reviewing policies and supported staff’s proposal to undertake a review of existing policies. Staff assessed the policies and identified several changes that allow for modernization, streamlining, and better protection of SVCE.
ANALYSIS & DISCUSSION
Currently, the large number of policies and level of detail within them both publicizes some of SVCE’s more sensitive operational information and limits the flexibility of staff to evolve guidance as laws or approaches to work change. Staff recommends general updates and changes to ensure the right level of detail in Board-approved policies while moving operational details into staff-approved standards or procedures.
Staff proposes to update SVCE’s policies to modernize, streamline, and protect sensitive information.
Modernization of Policies
Staff seeks to modernize all agency policies, ensuring they comply with changes in law and operational practices. Part of this modernization includes adopting a new structure for agency guidance that includes: (1) Board-approved policies; (2) Chief Executive Officer (CEO)-approved standards; and (3) CEO-approved procedures. This will allow the Board to maintain and set policy direction at an appropriately high level and empower the CEO to implement the policies through more detailed standards and procedures to ensure staff consistently and successfully implement the policies.
Streamlining of Policies
Staff proposes streamlining by consolidating some policies and moving a significant amount of operational-level detail into standards while keeping the most critical guidance in policies. For example, many of the Information Technology (IT) policies were moved into standards to allow for a simpler update process for changes in law and practice. However, the critical policy decisions, including staffing levels and benefits, are retained by the Board through the budgeting process. As a result of this streamlining, staff proposes to reduce the number of policies from forty-eight (48) to twenty-two (22). 1 Item 2: Recommend Approval of the Amendment to Financial Policy 7 – Purchasing Card Policy (Action), https://svcleanenergy.org/wp-content/uploads/2023-1130-Finance-and-Administration-Committee-Meeting-Packet-scrubbed.pdf.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
Protecting Sensitive Information
Staff recommends protecting sensitive information related to Information Technology (IT) or data security by maintaining them in internal CEO-approved standards and procedures. This would allow staff to avoid posting this information publicly as part of a Board meeting or packet. This information includes SVCE approaches to physical and cyber security, password creation, and procedures for business continuity.
Establishing an Update and Training Cadence
Staff proposes to implement a comprehensive approach to maintaining and training on the policies and standards. To maintain the various documents, staff determined a regular cadence to revisit and consider updates to the policies and standards. This will ensure the policies remain current both with the law and with operational practices. Staff also identified the key individuals and teams that should be trained and a cadence for training those staff for each policy and standard. These details are provided in Attachment 2 to this staff report for informational purposes.
Overview of Policy Changes
Staff proposes to update most of SVCE policies, and provides descriptions and summaries of the proposed changes. Staff compiled the changes and presents them in: (1) high-level updates described in the body of this staff report; (2) summary and detailed descriptions of the changes to each policy and associated standard in the tables in Attachment 1 to this staff report; and (3) where feasible, provided both redline and clean versions of the recommended policies in Attachment 3 to this staff report.
Modernizing and Protecting Information Technology (IT) Policies The IT policies were largely replaced by new model policies and standards. Staff undertook a review to ensure the key provisions in SVCE’ existing policies were included in the new policies and standards. The content moved to standards is either operational-level detail or sensitive from an IT or data security perspective. Due to the complete replacement of the policies, staff does not include a set of redline changes for IT. However, Attachment 1 includes a description of the changes.
Moving Human Resources (HR) Policies into Standards
As mentioned above, the HR policies are largely moving into standards. Staff created a new HR policy that is derived from existing authority on personnel (Resolution 2021-22) and reimbursements for travel (General and Administrative Policy 1 – Travel and Reimbursements). The Board will continue to make key HR decisions including budget for staffing levels and benefits.
Finance Policies Updated to Reflect Operational Needs
In addition to adjusting the Finance policies to move operational-level details into standards, some of the policies were updated to allow for more efficient operations. This includes expanding the ability of executives to delegate authority to staff and increasing the CEO’s delegated signing authority from $100,000 to $250,000 as discussed further in the key changes section below.
General and Administrative (G&A) Policies Updated
The General and Administrative Policies includes largely clean up and consolidation of existing policies. The record retention periods document was consolidated and updated to make it easier to follow.
Key Finance-Related Policy Changes
Staff provides additional information about some key changes in the policies that involve delegation of authority from the Board to staff.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
Purchasing Policy: Delegated signing authority increased from $100,000 to $250,000 Staff recommends increasing the CEO’s signing authority from $100,000 to $250,000 to improve SVCE’s ability to enter into contracts efficiently and reduce administrative burdens for SVCE’s smaller contracts. This would result in staff being able to execute certain contracts upon completing negotiations and CEO approval without the additional process of Committees or Board meetings. This will help staff to take advantage of promotional pricing, reduce the time spent preparing and reviewing Board materials, and improve the process for executing agreements by reducing the time between completing negotiations and execution for some contracts. It will also reduce the items on the consent calendar and thus the time needed by Board members to prepare for meetings. The $250,000 limit is expected to cover approximately one-third (33%) more of SVCE’s non-energy vendor agreements than under the previous signing authority.
Staff undertook a review of signing authority and identified a range among CCAs represented in Table 1 below. Staff observed that $250,000 is in the middle of the range and consistent with SVCE’s partner CCAs, Peninsula Clean Energy and Central Coast Community Energy.
Table 1: CEO Signing Authority Among CCAs
CCA CEO Signing Authority
Marin Clean Energy $400,000
Peninsula Clean Energy $250,000
Central Coast Community Energy $250,000
Clean Power Alliance $125,000
Ava Community Energy $100,000
In proposing to amend the CEO’s signing authority, staff also recommends the CEO have the ability to delegate their signing authority while documenting such delegation in purchasing standards. This is intended to improve operational efficiency while ensuring transparency. Staff also revised the emergency funding authorization to move away from using specific dollar amounts to instead use a fixed percentage in excess of the normal delegated signing authority.
Investment Policy: Removing Fossil Fuel Investments
Staff recommends removing the ability for SVCE to invest in fossil fuel extraction, refining, and distribution.
This change is intended to align SVCE’s investments with its mission to reduce dependence on fossil fuels.
Capitalization Policy: Increasing Capitalization Limit from $1,000 to $5,000 Staff recommends increasing the limit for expenses that are required to be capitalized from a minimum of $1,000 to $5,000. This recommendation was made by SVCE’s accountants and aligned with best practices of the Government Finance Officers Association for state and local governments.
Unaffected Policies
Through this process, staff is not proposing any substantive updates to the following policies, however staff may return to the Board at a later time with recommended updates:
• G&A Code of Ethics Policy
• G&A Chair and Vice Chair Vacancy Policy
• G&A Ticket and Pass Distribution Policy
• Finance Debt Limitations Policy
• Finance Reserves Policy
• Customer Confidentiality Policy
• Non-Standard Pricing Agreement Policy
• Energy Risk Management Policy
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
STRATEGIC PLAN
The staff recommendation supports Goal 9 of the SVCE Strategic Plan to enhance systems, standards and procedures to streamline business processes and improve operational effectiveness and reliability.
FISCAL IMPACT
While the changes to the policies are not expected to have a direct fiscal impact, they are expected to result in efficiencies in operations that should streamline some staff activities and have a positive fiscal impact.
ALTERNATIVE
Staff is open to suggestions and feedback from the Board on the proposed policies.
ATTACHMENT
1. Descriptions of Changes and a Summary of Controls
2. Cadence for Updates and Training for Policies and Standards
3. Redline and Clean Versions of Policies
Item 6
Attachment 1:
Descriptions of Changes and Summary of Controls
NOTE: Policies (P) and Standards (S) are denoted below in the acronyms within each area of SVCE. For example, the IT Policies are referenced as ITP and IT Standards as ITS.
Item 6
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 6 Agenda Date: 12/11/2024
Attachment 1 Table 1: Revisions Snapshot
Human Resources
Name 2024 Status Justification for
Moving to
Standards
Revisions Snapshot
HRP-01 [Personnel &
Reimbursement]
New N/A Created from existing personnel authority granted in SVCE Resolution 2021-22 and Budget Policy and added reimbursements [Retired] HRP-01
[Smartphone Stipend
Policy]
Retired Operational-level
details
Migrated to a standard HRS-01 - Technology Stipend
[Retired] HRP-02
[Recruitment
Incentive]
Retired Sensitive information
and operational-level
details
Migrated to a standard HRS-02 Recruitment Incentive
[Retired] HRP-03
[Volunteer Time Off]
Retired Operational-level
details
Migrated to a standard HRS-03 - Volunteer Time Off
[Retired] HRP-04
[Unpaid Leave]
Retired Operational-level
details
Migrated to a standard HRS-04 - Unpaid Leave
[Retired] HRP-05
[Paid Time Off Cash
Out]
Retired Operational-level
details
Migrated to a standard - HRS-05 - Paid Time Off Cash Out [Retired] HRP-06
[Tuition Assistance]
Retired Operational-level
details
Migrated to a standard HRS-06 - Tuition Assistance
[Retired] HRP-07
[Cash in Lieu of
Health Benefits]
Retired Operational-level
details
Migrated to a standard HRS-07 - Cash in Lieu of Health Benefits Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] HRP-08
[Fitness
Reimbursement
Benefit]
Retired Operational-level
details
Migrated to a standard HRS-08 - Fitness Reimbursement Benefit HR Handbook Revised N/A Updated for corrections, changes in law, and benefits HRS-01 [Technology
Stipend]
New Operational-level
details
Expanded to include all employees and increased stipend amount and scope
HRS-02 [Recruitment
Incentive]
New Sensitive information
and operational-level
details
No substantive changes except transitioning format to standard [Do not include in HR Handbook]
HRS-03 [Volunteer
Time Off]
New Operational-level
details
No substantive changes except transitioning format to standard HRS-04 [Unpaid
Leave]
New Operational-level
details
Added CEO approval for unpaid leave longer than one week HRS-05 [Paid Time
Off Cash Out]
New Operational-level
details
Updated request of leave from form to HR information system HRS-06 [Tuition
Assistance]
New Operational-level
details
No substantive changes except transitioning format to standard HRS-07 [Cash in Lieu
of Health Benefits]
New Operational-level
details
No substantive changes except transitioning format to standard HRS-08 [Fitness
Reimbursement
Benefit]
New Operational-level
details
Updated request from form to HR information system
HRS-09 [Flexible
Work]
New Operational-level
details
Newly created standard to reflect expectations of flexible work Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
General &
Administration
Name 2024 Status Justification for
Moving to
Standards
Revisions Snapshot
[Retired] GAP01 -
Travel and Meeting
Expense
Reimbursements
Retired N/A Migrated detail to a standard GAS-3 - Travel and Meeting Expense Reimbursements
[Retired] GAP02 -
Vehicle Use Policy
Retired N/A Migrated to a new Vehicle and Charger Use policy GAP-02 and standard GAS-01
[Retired] GAP03 -
Charging Station
Policy
Retired N/A Migrated to a new Vehicle and Charger Use policy GAP-02 and standard GAS-01
GAS03 - Travel and
Meeting Expense
Reimbursements
New Operational-level
details
From the original GAP01 - Travel and Meeting Expense
Reimbursements Policy
GAP02 - Vehicle and
Charger Use Policy
New Operational-level
details
Consolidating the original GAP 02 Vehicle and GAP 03 Charging Station Use policies
GAP04 - CA Public
Records Act Policy
Revised N/A General clarifications and improvements consistent with existing law
GAP07 - CEO
Absence Policy
Revised N/A Administrative clean up
GAP09 - Hybrid
Meetings Policy
Revised N/A Administrative clean up
GAS01 - Vehicle and
Charger Use
New Operational-level
details
From the original Vehicle Use and Charging Station Policies; struck personal vehicle requirements
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
GAP10 - Files and
Records Management
Policy
Revised N/A Migrated most detail to a standard GAS-02 - Files and Records Management
GAS02 - Files and
Records Management
New Operational-level
details
From the original Files and Records Management Policy; added clarifying text and adjusted retention periods
Information
Technology
Name 2024 Status Justification for
Moving to
Standards
Revisions Snapshot
[Retired] ITP01 -
Information Systems
Use Policy
Retired Operational-level
details
Migrated to standards ITS-03 - Information Security, and ITS-04 Identity and Access Management
[Retired] ITP02 -
Email Use Policy
Retired Operational-level
details
Migrated to standards ITS-01: Data Management, ITS-04:
Identity and Access Management and FP-12: Files and Records Management
[Retired] ITP03 - IT
Asset Management
Policy
Retired Operational-level
details
Migrated to a standard ITS-02 - Asset Management
[Retired] ITP04 -
Internet Usage Policy
Retired Operational-level
details
Consolidated under ITS-01 Data Management, ITS-03 -
Information Security, and ITS-04 - Identity and Access
Management
[Retired] ITP05 - IT
Security Plan Policy
Retired Sensitive IT security
information and
operational-level
details
Consolidated under ITP-01: Information Security; ITS-02: Asset Management, ITS-03: Information Security; ITS-05: Network Management, and ITS-07: Vulnerability Management
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] ITP06 -
Access Control Policy
Retired Operational-level
details
Migrated to a standard ITS-04 Identity and Access Management and ITS-07 Vulnerability Management
[Retired] ITP07 -
Password Protection
Policy
Retired Sensitive IT security
information and
operational-level
details
Consolidated high-level summary under ITS-03 - Information Security and ITS-04 Identity and Access Management
[Retired] ITP08 -
Malware Defense
Policy
Retired Operational-level
details
Consolidated under ITS-03 Information Security, ITS-07 - Vulnerability Management, ITS-09 Incident Response, and ITS-09Att01 - Incident Response Plan [Retired] ITP09 -
Security Audit Policy
Retired Sensitive IT security
information and
operational-level
details
Transferred requirement to ITP-01 Information Technology Policy [Retired] ITP10 -
Disaster Recovery
Policy
Retired Operational-level
details
Migrated to standards ITS-03 Information Security, ITS-08 - Business Continuity Disaster Recovery
[Retired] ITP11 -
Theat-Risk
Assessment Policy
Retired Sensitive IT security
information and
operational-level
details
Consolidated under ITS-07 - Vulnerability Management and ITS-08 Business Continuity Disaster Recovery [Retired] ITP12 - IT
Satisfaction Policy
Retired N/A Not replaced to allow staff to determine most efficient means of assessing satisfaction
[Retired] ITP13 -
Data Breach Policy
Retired Sensitive IT security
information and
operational-level
details
Consolidated under ITS-03 Information Security, ITS-09 Incident Response, ITS-09A01 - Incident Response Plan
[Retired] ITP14-
Workstation Security
for HIPPA Policy
Retired Operational-level
details
Consolidated under ITS-01 Data Management, ITS-03 -
Information Security, ITS-04 Identity and Access Management, and ITS-06 - Physical Security
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] ITP15 -
Clean Desk Policy
Retired Operational-level
details
Consolidated under ITS-01 Data Management, ITS-03 -
Information Security, ITS-04 Identity and Access Management, and ITS-06 Physical Security
ITP-01 Information
Technology
New N/A Created an overarching IT policy that identifies areas to be addressed further in standards
ITS-01 [Data
Management]
New Sensitive IT security
information and
operational-level
details
New standard focused on data classification
ITS-02 [Asset
Management]
New Operational-level
details
Incorporated policy details on a standard level and streamlined the process and removed use of the IT requisition/disposal form ITS-03 [Information
Security]
New Sensitive IT security
information and
operational-level
details
Incorporated policy details on a standard level and added subsections such as security and awareness training
ITS-04 [Identity and
Access Management]
New Operational-level
details
Incorporated policy details on a standard level and added subsections such as remote access
ITS-05 [Network
Management]
New Sensitive IT security
information and
operational-level
details
Newly created standard focused on network infrastructure and controls
ITS-06 [Physical
Security]
New Sensitive IT security
information and
operational-level
details
Incorporated policy details on a standard level and added subsections such as visitor security
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-07 [Vulnerability
Management]
New Sensitive IT security
information and
operational-level
details
Incorporated policy details on a standard level and added subsections such as vulnerability scanning
ITS-08 [Business
Continuity Disaster
Recovery]
New Sensitive IT security
information and
operational-level
details
Incorporated policy details on a standard level and added Appendix A - Business Continuity Procedures by Scenario ITS-09 [Incident
Response]
New Sensitive IT security
information and
operational-level
details
Newly created standard associated with attachment to ITS-09A01 - Incident Response Plan
ITS-09A01 [Incident
Response Plan]
New Sensitive IT security
information and
operational-level
details
Minor revisions including correcting and updating notification information and supporting documents
Finance
Name 2024 Status Justification for
Moving to
Standards
Revisions Snapshot
[Retired] FP03 -
Capital Projects
Policy
Retired Operational-level
details
Migrated to a standard FS-01 - Capital Projects
[Retired] FP05 -
Customer
Generations Rates
Retired Operational-level
details
Migrated to a standard FS-03 - Customer Generation Rates [Retired] FP13 -
Chart of Accounts
Retired Operational-level
details
Migrated to a standard FS-07 - Chart of Accounts
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] FP07 -
Purchasing Card
Policy
Retired Operational-level
details
Migrated to a standard FS-06 - Purchasing Card
FP01 - Accounting
Policy
Revised N/A Clarified the F&A Committee doesn't need to be five members and other minor updates
FP02 - Budget Policy Revised N/A Clarified the capital projects and debt limit rules will be standards, moved over hire authority to personnel policy
FP06 - Purchasing
and Spending Policy
Revised N/A Increased delegated authority for CEO contracting to $250K/FY; added delegations of authority, disposal of property, and solicitation details
FS08 - Purchasing
and Spending
New Operational-level
details
Created a new standard with solicitation processes, disposal of property, and delegation details flowing from FP06 - Purchasing and Spending Policy
FP08 - Investment
Policy
Revised N/A Avoids fossil fuel investments; Migrated several sections to a standard F04 - Investments
FP10 - Delinquent
Accounts &
Collections Policy
Revised N/A Clarified SVCE does not disconnect customers, clarified approval control is CFO/Director of Finance
FP11 - Capitalization
Policy
Revised N/A Increased capitalization limit from $1K to $5K FS01 - Capital
Projects
New Operational-level
details
From the original Capital Projects Policy
FS03 - Customer
Generation Rates
New Operational-level
details
From the Customer Generation Rates policy, clarifies rates are based on Board approval/approved budget
FS04 - Investment New Operational-level
details
From the original Investment Policy with no material revisions FS06 - Purchasing
Card Standard
New Operational-level
details
CEO can set card limits, violations reported to the ROC & CEO, CEO & CFO can approve/delegate cards
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
FS07 - Chart of
Accounts
New Operational-level
details
From the original Chart of Accounts Policy with no material revisions
FS07A01 - Chart of
Accounts
Revised Operational-level
details
Placed into a table format
Attachment 1 Table 2: Detailed Revisions
Human Resources
Name Detailed Summary and Revisions
HRP-01 [Personnel &
Reimbursement]
Transition from Resolution 2012-22 to policy level and incorporated budget policy elements for over hires. Added ability to reimburse staff and Board members for expenses to attend meetings and conferences.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] HRP-01
[Smartphone Stipend
Policy]
Employees who hold positions that include the need for a smartphone may receive a stipend of $50 to compensate for business related costs incurred when using their individually-owned smartphone. SVCE will not own smartphones for the use of individual employees. Those who opt for the stipend will configure Office 365 to work with either the Outlook App or the native email app. Employees whose job duties include the frequent need for a smartphone may receive extra compensation, in the form of a monthly stipend, to cover business related costs.
Eligibility criteria requires at least one of the following: 1) considerable time outside of his/her assigned office or work area and it is important to SVCE that s/he is accessible during those times, 2) accessible outside of regularly scheduled or normal working hours where time sensitive decisions/notifications are required, and 3) job function requires wireless data and internet access.
[Retired] HRP-02
[Recruitment Incentive]
The purpose of the recruitment incentive is to entice the applicant to sign-on with the organization. The CEO is authorized to offer one-time incentives that do not exceed the greater of 10% of the salary referenced in the offer letter or $15,000 to prospective applicants. Employees who leave employment with the Agency within 12 months from the date from which the bonus is received shall reimburse the Agency in full unless terminated by the Agency.
[Retired] HRP-03
[Volunteer Time Off]
All regular full-time and part-time employees can volunteer up to 40 hours per calendar year with a 501(c)(3) nonprofit or its U.S. equivalent in accordance with SVCE’s giving and volunteering guidelines. More than one organization may be chosen. If you are not sure of the status of your chosen organization, please contact the Director of Finance and Administration for guidelines. • Employees will be paid at their normal pay rate for the volunteer hours taken. • No more than 2 days per quarter. • Minimum of 2 hours per opportunity. • VTO is refreshed at the beginning of the each calendar year and cannot be accrued or carried-over into the following year – “use it or lose it” policy. • Usage of this time does not affect PTO or Management Leave usage. [Retired] HRP-04 [Unpaid
Leave]
All full time regular employees employed by SVCE for a minimum of 90 days are eligible to apply for an unpaid personal leave of absence. Job performance, absenteeism and departmental requirements all will be taken into consideration before a request is approved. Approvals of the immediate supervisor, department director and CEO are required. Requests for unpaid personal leave may be denied or granted by SVCE for any reason or no reason and are within the sole discretion of SVCE. SVCE reserves the right to terminate employment for any reason or no reason during the leave of absence. Finance and Administration is responsible for ensuring that any employee on an approved personal leave of absence is not paid. An employee is required to return from the unpaid personal leave on the originally scheduled return date. If the employee is unable to return, he or she must request an extension of the leave in writing. If SVCE declines to extend the leave, the employee must then return to work on the originally scheduled return date or be considered to have voluntarily resigned from his or her employment.
Extensions of leave will be considered on a case-by-case basis.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] HRP-05 [Paid
Time Off Cash Out]
SVCE offers a PTO Cash-Out Option for eligible employees. At the time of the cash-out, a minimum of 40 hours MUST be retained in the PTO bank, which is based on current base pay at the time of payout. PTO Cash-Out is subject to all applicable taxes and deductions taken on earnings, and is exempt from deferred compensations (401a, 457b) deductions. There is a limit of two PTO cash-outs and not to exceed 80 hours per calendar year. An irrevocable PTO election form is required and the cash-out pay date will be made on the Friday of the following pay period.
[Retired] HRP-06 [Tuition
Assistance]
Employee may be reimbursed up to $5,000 per fiscal year (October 1-September 30) to offset the cost of coursework aligned with SVCE's core mission, the employee's current duties, or future opportunities within the agency. Employee must pay for any expense upfront and will receive reimbursement of approved and eligible expenses upon successful completion of coursework and submission of required documentation within 60 days of course completion. All coursework should be taken during non-work hours. For graded courses, an unofficial transcript with the employee's name is acceptable and must show a grade of "C" or better or "Pass." For non-graded courses, a signed certificate of completion by the institution is acceptable. [Retired] HRP-07 [Cash in
Lieu of Health Benefits]
SVCE offers the opportunity to decline health insurance through the agency and receive a monthly cash payment in-lieu of health insurance of $250. Employee participation will not impact their eligibility to participate in the Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) programs by SVCE. The employee must fill out the Election of Cash In-Lieu Form. Once an employee receives cash in-lieu of health benefits, the employee may only enroll in the agency health plan if a qualifying Section 125 event occurs (e.g., marital status change, number of dependents change, loss of coverage).
[Retired] HRP-08 [Fitness
Reimbursement Benefit]
Employees can participate in the voluntary Fitness Reimbursement Program to promote employee health and morale. Participating employees sign and return their Fitness Reimbursement Program Form to the Administrative Services Manager and understand the terms and requirements of the program. The program is not a requirement of their employment, injuries resulting from an employee's participation will not qualify for worker's compensation, and the employee's time spent in fitness activity is not compensable. SVCE will reimburse employees who meet the requirements for reimbursement twice a year, up to a maximum of $600 annually, and reimbursement will be included as an allowance on the employee's paycheck.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
HR Handbook Updates CEO information and includes up-front statements about employment contracts overriding the handbook in the event of a conflict, that nothing in the handbook should be applied to restrict rights under the Employee policies, standards and procedures are summarized in the HR Handbook. Corrected various title changes and descriptions throughout. Added religious and pregnancy accommodations. Added requirement to list salary in job postings and verify eligibility for employment. Added "one day rest in seven" for non-exempt employees. Clarified use of California overtime rules. Consolidated sections on management time off and management wellness time off. Added clarifying language to the professional conduct section. Clarifying that SVCE will report criminal conduct and may use criminal conduct as ground for discipline. Clarifying staff shall not accept gifts of $100 or in exchange for a particular business decision. Incorporated telephone services in telephone use restrictions. Added internet service to technology stipend consistent with the new standard. Added wage disclosure protection for compensation. Added HSA to list of benefits. Removed requirement to work for 90 days before being able to use paid time off (PTO). Added a description of the PTO cash out option. Added requirement to use PTO before unpaid leave. Clarifying sick leave will be reinstated for employees that depart and return to the agency within a year.
Added Caesar Chavez Day and Juneteenth to the list of holidays and clarified full-time staff are granted eight (8) hours of pay for each holiday. Clarifications related to short-term disability benefits. Redrafted rights related to Family Medical Leave Act and California Family Rights Act into a single section. Redrafted to expand upon COBRA insurance section. Introducing flexible/remote work standards. Clarifying medical leaves of absence may be approved up to 12 weeks. Adding two (2) additional bereavement leave days for a total of five (5), also added a requirement to be employed for 30 days before getting bereavement leave and for leave to be used within 3 months of the death. Clarifying that PTO does not need to be used for jury duty or serving as a witness in court and that fees and travel costs will not be reimbursed. Added provision for unpaid time off for an adult literacy program. Redrafted section on reproductive loss leave, to include loss by a spouse or domestic partner. Revised pregnancy disability leave to be gender neutral. Redrafted the paid parental leave portion. Redrafted the tuition reimbursement section. Added clarifications and purposes to the volunteer time off program. Added employee acknowledgement about receiving Health Insurance Marketplace Coverage Options.
HRS-01 [Technology
Stipend]
No longer limited to smartphone and now includes residential internet service. The technology stipend increases from $50 to $120. New policy expands eligibility to all employees since SVCE is a hybrid work environment. New policy requires smartphone registration to SVCE Mobile Asset Management (MAM) program, residential internet of at least 100 Mbps (download)/20 Mbps (upload), following security guidelines, and configuration of home router.
HRS-02 [Recruitment
Incentive]
No changes. Transition from policy to standard level.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
HRS-03 [Volunteer Time
Off]
Removes reference to SVCE's giving and volunteering guidelines.
HRS-04 [Unpaid Leave] Adds CEO approval requirement for unpaid leave longer than one week.
HRS-05 [Paid Time Off
Cash Out]
Only substantive change is the request via the HR information system instead of Irrevocable PTO Cash-Out Form.
HRS-06 [Tuition
Assistance]
Substantive changes are updating form processing from Administrative Services Manager to Human Resources.
Additionally, updated verbiage from "Tuition Assistance" to "Tuition Reimbursement." HRS-07 [Cash in Lieu of
Health Benefits]
Updated language from "Eligibility for FSA/HRA Benefits" to "Eligibility for Other Benefits" section and replaced "FSA and HRA programs offered at SVCE" with "any other SVCE offered benefits." HRS-08 [Fitness
Reimbursement Benefit]
Only substantive changes are the request via HR information system instead of the Fitness Reimbursement Form and removing the reimbursement limit of twice per year.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
HRS-09 [Flexible Work] Supervisors should work with HR to solidify and make in-office expectations clear for each role. Company retreats, in-person department meetings and cross-functional collaboration opportunities should be defined at hire or annual goal setting (launch and relaunch). Hires should be considered locally first (San Francisco Bay Area), limited to California, with exceptions to be made by the CEO as needed. Circumstances that may result in an exception include (1) where recruitment efforts have not resulted in an adequate candidate living in California; (2) the role does not require in-person interaction with customers and/or stakeholders on a regular basis, and (3) other extenuating circumstances. Employees should be able to come into the office any time as their role requires.
However, some roles may be defined (by HR and supervisor/leadership) as needing more or less local engagement. Should a role be required to have specific weekly, monthly, or quarterly in-office times, supervisors should make reasonable efforts to pre-plan those times and set expectations so that employees can arrange for time as needed. Supervisors should also set expectations for “online” time (typically M-F 8am-5pm PST) and reasonable response times.
General &
Administration
Name Detailed Summary and Revisions
[Retired] GAP01 - Travel
and Meeting Expense
Reimbursements
Moved to a standard and retired this policy.
[Retired] GAP02 - Vehicle
Use Policy
This policy was retired to remove direction for privately-owned vehicle (POV) use, focus on agency-owned vehicle (AOV) use, and include SVCE electric car charger station use. Was retired to consolidate into a new GAP-02:
Vehicle and Charger Use Policy.
[Retired] GAP03 -
Charging Station Policy
This policy was retired to consolidate into GAP 02 Vehicle and Charger Use Policy and transfer details to GAS-01 Vehicle and Charger Use Standard.
[Retired] GAP01 - Travel
and Meeting Expense
Reimbursements
Moved to a standard and retired this policy.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
GAS03 - Travel and
Meeting Expense
Reimbursements
Updated incidental expense fee or tip definition to remove taxi cab drivers and replace with transportation. The definition of meetings was updated to exclude SVCE Board or Committee meetings. In-state travel approval was updated from CEO to appropriate department head if the following conditions apply: allowable overnight stay if training/travel is greater than 100 miles from residence, aligns with role or development, employee is in good standing, funds are appropriated as part of the current operating budget, cost of training does not exceed $3,000.
If these conditions are not met, CEO approval is required for staff. For accommodations, hotel or motel language was removed and generically referenced to lodging, and fees were added to reimbursement. Reimbursement mileage calculation was added and based on the distance from the SVCE office to the conference or meeting location. If the calculation was greater than the actual distance traveled, the employee should apply the actual distance. Included a definition of coach airfare. Removed prohibition on in-flight meals. Authorized personnel to approve meals now includes relevant department heads rather than Department Director and CEO.
Reimbursement claim submission deadline moved from 30 to 60 days, with a cap of 180 days. An approval process for reimbursement was added and any exceptions must be made by the CEO.
GAP02 - Vehicle and
Charger Use Policy
Expanded original GAP 02 Vehicle to GAP 02 Vehicle and Charger Use Policy to include direction for charger use and remove direction for privately-owned vehicle (POV) use with focus on agency-owned vehicle (AOV) use. All details such as reporting of accidents, traffic violations, parking tickets, and forms were transferred to the GAS 02 Vehicle and Charger Use Standard. The updated policy objective is to maintain a standard to manage use of the AOV and the electric vehicle charging stations located at SVCE.
GAP04 - CA Public Records
Act Policy
Added references to Government Code Sections 7922.525 and 7922.530 regarding the public's right to access public records as guaranteed by the Constitution and making the records promptly available upon payment of fees covering direct costs of duplication. Added references to exempt materials covered in Government Code Sections 7927.500 (preliminary drafts, notes or interagency memos), 7929.700 (records pertaining to litigation, personnel, medical, or anything considered an unwarranted invasion of personal privacy), 7928.300 (personal addresses or telephone numbers), 7928.705 (real estate appraisals, engineering or feasibility assessments, privileged documents including attorney-client privilege), and 7927.005 (archeological site information). Included the process of exemption claim discretion referenced in Government Code Section 7922.00 and waiving rights to invoke exemption in Government Code Section 7921.505.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
GAP07 - CEO Absence
Policy
Removed explicit call out of each Department Director and language of Board/CEO Authority limits in Energy Risk Management Policy Section 6.5 to limit administrative burden of updating this policy.
GAP09 - Hybrid Meetings
Policy
Removed stale language of hybrid meeting following termination of the Covid-19 State of Emergency and added context to the Brown Act mandating open and transparent government meetings for local agencies.
GAS01 - Vehicle and
Charger Use
Developed a new standard for AOV and on-site charging station as directed in the GAP-02 Vehicle and Charger Use Policy. Specific contacts were added for AOV driving insurance and registration. As SVCE has access to electric vehicle chargers at its primary office location, the standard defines the valid use of these charging stations by employees, visitors, and third parties. Vehicles must be actively charging when parked limited to four hours of use in the charging station stall. Charging cords must be neatly replaced and not left on the ground. Authorized personnel may disconnect the vehicle at any time and charging stations may be closed for maintenance. SVCE assumes no responsibility or liability for damage to vehicles using electrical charging stations, and the availability of a charging station should not be counted on as the primary justification for purchasing a plug-in electric vehicle.
GAP10 - Files and Records
Management Policy
Updated language on SVCE subject to the CPRA and removed the methods for filing, retaining, and disposing of business records as this information is being transferred to the new GAS-02 Files and Records Management Standard. Additionally, information on digital files, paper files, filing system, record retention and long-term storage, record destruction, record disposal, and records retention periods were removed and transferred to the new GAS-02 Files and Records Management Standard.
GAS02 - Files and Records
Management
GAS-02 Files and Records Management is a new standard that accompanies GAP-10 Files and Records Management Policy. The previously detailed sections from the GAP-10 Files and Records Management Policy were transferred to the GAS-02 Files and Records Management Standard: digital files, paper files, filing system, record retention and long-term storage, record destruction, record disposal, and records retention periods. Consolidated and revised retention periods to meet business and legal needs.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
Information Technology
Name Detailed Summary and Revisions
[Retired] ITP01 -
Information Systems Use
Policy
Outlines the acceptable use of information systems and resources at SVCE. Inappropriate use exposes SVCE to risks including malware, compromise of network systems and services, and legal issues. Transfers the following language to ITS-03 Information Security: information systems limited to SVCE business use; complying with guidelines and policies; prohibited use, which includes unauthorized installation or distribution; reporting suspicious activity or sensitive information being shared; no privacy expectations. Transfers the following language to ITS-04 Identity and Access Management: authorization needed for disclosure of SVCE proprietary information; password and user account management; no sharing of accounts or passwords; authorized staff have the ability to reset passwords if needed; safeguarding sensitive information or only sharing information with business justification and authorization.
[Retired] ITP02 - Email
Use Policy
Provides rules on appropriate email use for SVCE email addresses. Transfers the following to ITS-01: Data Management: prohibition on transferring confidential information externally via email. Transfers the following language to ITS-03 Information Security: prohibiting offensive, indecent, or obscene material from being created or distributed; prohibiting the use of SVCE resources for personal use; allows incidental use of personal email accounts on SVCE resources when accessed through a browser; prohibiting automatic forward of SVCE email to external accounts; prohibits the use of personal texting and email accounts for SVCE business; requiring staff to own and control personal devices storing SVCE emails and notify SVCE within 24 hours of losing a device; and establishes no expectation of privacy. Transfers the following language to ITS-04: Identity and Access Management: guidance for email passwords. Removed guidance on email signatures and documents being subject to retention and destruction as that is covered in FP-12: Files and Records Management. [Retired] ITP03 - IT Asset
Management Policy
Establishes policy for asset control outlining the protection of organizational resources. Transfers the following language to ITS-02 Asset Management: definition of asset category types to be tracked (computer systems; printers, copiers, fax machines, handheld devices, networking equipment, desk phones, miscellaneous hardware; IT asset planning, acquisition, inspection, distribution, installation, disposal.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] ITP04 - Internet
Usage Policy
Establishes rules on the appropriate use of network and internet access. Transfers the following language to ITS-03 Information Security: personnel must adhere to acceptable internet use as a violation could result in disciplinary action and/or legal action including termination; employees are held personally liable for damages caused by policy violations; internet access is limited to job-related activities; equipment, services, and technology for internet use are the property of SVCE and the company reserves the right to monitor internet traffic and access data sent or received through its online connections; prohibited use includes inappropriate messages or images, fraud, and introducing malicious software; authorization of sharing files. Transfers language of not sharing passwords to ITS-04 Identity and Access Management. Transfers language of not sharing confidential material to ITS-01 Data Management.
[Retired] ITP05 - IT
Security Plan Policy
Provides security requirements for the IT system and network. Transfers the following language to ITP-01:
Information Security: requires a security assessment. ITS-02: Asset Management: conduct an inventory of assets; requirement to maintain inventory of all systems. Transferred the following language to ITS-03: Information Security: requirements for training staff on IT security. Transferred the following language to ITS-07: Vulnerability Management: requiring a planning process with an assessment of IT threats and risks. Removing some general guidance and the requirement for an IT Security Plan as the substantive requirements are met within the new IT policy and standards.
[Retired] ITP06 - Access
Control Policy
Prevents unauthorized access to or use of SVCE information to ensure its security, integrity, and availability to appropriate parties. Transfers the following language to ITS-04 Identity and Access Management: password and authentication; access is granted on a need-to-know basis; securing IT equipment when unattended. Transfers language on access control logs to ITS-04 Identity and Access Management and ITS-07 Vulnerability Management. [Retired] ITP07 - Password
Protection Policy
Establishes a standard to create strong passwords. Transfers language of creating strong passwords to ITS-04 Identity and Access Management. Transfers language of reporting incidents to ITS-03 Information Security. [Retired] ITP08 - Malware
Defense Policy
Outlines prevention of data loss, corruption, or misuse of SVCE computing resources or information that may occur when malware is introduced to SVCE's IT network. Transfers the following language to ITS-03 Information Security: addressing malware through IT communication and plans. Transfers language of patch management and annual audits to ITS-07 Vulnerability Management. Transfers language on IT security plan to ITS-09 Incident Response and ITS-09A01 Incident Response Plan.
[Retired] ITP09 - Security
Audit Policy
Establishes conformance of the IT security system to legal, regulatory, and SVCE requirements. Transfers language of conducting necessary audits and assessments to ITP-01 Information Technology Policy.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] ITP10 - Disaster
Recovery Policy
Defines the baseline Disaster Recovery Plan to recover IT systems, applications, and data from any type of disaster that causes a major outage. Transfers the following language to ITS-08 Business Continuity Disaster Recovery: development and implementation of an IT disaster recovery plan; gathering IT industry information on best practices and recovery priorities; periodic backups of Agency information; auditing and testing. Transfers language of reporting suspicious activity to the IT team in ITS-03 Information Security. [Retired] ITP11 - Theat-Risk Assessment PolicyEstablishes evaluation for threats and vulnerabilities in SVCE IT systems and network. Transfers the following language to ITS-07 Vulnerability Management and ITS-08 Business Continuity Disaster Recovery: types of threats, likelihood, impact, and risk. Transfers the following language to ITS-07 Vulnerability Management: penetration testing, security assessments, and audits.
[Retired] ITP12 - IT
Satisfaction Policy
Not replaced to allow staff to determine most efficient means of assessing satisfaction [Retired] ITP13 - Data
Breach Policy
Establishes method of response to a data breach. Transfers language on a data breach containing sensitive data to ITS-03 Information Security. Transfers language of developing communication through an incident response team to ITS-09 Incident Response and ITS-09A01 Incident Response Plan. [Retired] ITP14-
Workstation Security for
HIPPA Policy
Provides guidance for workstation security. Transfers language of confidential data, authorized access, and password guidelines to ITS-03 Information Security, ITS-01 Data Management, and ITS-04 Identity and Access Management. Transfers language of physical safeguards and workstation guidelines to ITS-06 Physical Security.
Transfers language of unauthorized software and storing sensitive information to ITS-03 Information Security. [Retired] ITP15 - Clean
Desk Policy
Establishes minimum requirements for maintaining a "clean desk" - where sensitive information is secure in locked areas and out of sight. Transfers the following language to ITS-01 Data Management and ITS-03 Information Security: securing sensitive and confidential information; protecting laptops when unattended; password protection. Transfers the following language to ITS-04 Identity and Access Management: locking workstation screens; password guidelines. Transfers the following language to ITS-06 Physical Security: locking file cabinets that store sensitive information when not in use or unattended; removing restricted or sensitive documents or information immediately.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITP-01 Information
Technology
ITP-01 Information Technology is a new overarching policy that lists requirements to ensure the protection of IT resources, and that staff may maintain appropriate operational standards related to ensuring business continuity and disaster preparedness (addressed in ITS-08 Business Continuity Disaster Recovery), appropriate management of IT assets, networks, data, identify and access to systems, vulnerabilities, security, and incident response; the minimum level of access required for personnel to perform business functions (addressed in ITS-01 Data Management and ITS-04 Identity and Access Management); security systems at multiple levels, including physical (addressed in ITS-06 Physical Security), network (ITS-05 Network Management), host (addressed in ITS-09 Incident Response), and personnel security (ITS-04 Identity and Access Management); degree of information security protection (addressed in ITS-07 Vulnerability Management), tracking of information technology resources (addressed in ITS-02 Asset Management); classification of data (addressed in ITS-01 Data Management); ongoing training (addressed in ITS-03 Information Security); personal responsibility for exercising proper control over information according to the operational standards; and a requirement to conduct internal audits and assessments of the IT security management system.
ITS-01 [Data
Management]
SVCE classifies data and information systems in accordance with legal requirements, sensitivity, and business criticality to ensure that information is given the appropriate level of protection. Requires all users to protect confidential and proprietary information. Information systems and applications are classified based on the highest classification of data they store or process. Documents classified as public such as marketing materials can be freely distributed outside of the agency. Restricted data (e.g., internal policies and processes and legal documents) is any proprietary agency information requiring thorough protection accessed on a "need-to-know" basis. This is the default classification unless stated otherwise and data can only be distributed outside the agency with approval, which typically involves legal counsel. Confidential data (e.g., customer, financial, and banking data) is highly sensitive and requires the highest level or protection accessed by specific employees or departments, and records can only be shared with approval from the data owner or appropriate agency executive. Data handling is based on classification. Included information to support SVCE adherence to rules for how energy data should be aggregated to maintain customer privacy.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-02 [Asset
Management]
Identifies organizational assets and defines appropriate protection responsibilities to prevent unauthorized disclosure, modification, removal, or destruction. All hardware, software, and applications must be approved, inventoried, and purchased by SVCE. Installation of new hardware or software, or modifications to existing hardware or software, must follow approved SVCE procedures and change control processes. All inventories must be reviewed no less than annually. SVCE assets must document the maintenance and repair of assets by the manufacturer's recommended guidelines. If personnel need additional information on the acceptable use of access, they should follow up with the IT department. Upon termination of employment, contract, or agreement, all SVCE assets must be returned to SVCE. Any employee or user who handles SVCE equipment is expected to use reasonable judgment and care to protect and maintain the equipment. Assets at the end of their useful life should be given to IT for proper disposal.
ITS-03 [Information
Security]
Establishes practices using information resources to protect the confidentiality, integrity, and availability of information created, collected, and maintained. Personnel are required to promptly report harmful events or standards violations concerning SVCE assets or information to the IT team. Events include but are not limited to technology incidents, data incidents, unauthorized access incidents, and compromise of login credentials.
Personnel must comply with the acceptable use of company equipment and information resources including not perpetrating fraud or piracy. No SVCE data may be stored on mobile devices, only in the official service app. All mobile devices must maintain up-to-date versions of all software, applications, and operating systems. SVCE reserves the right to remove mobile device use privileges to maintain information security. All hardware and software must be formally approved by IT management. All SVCE assets should be secured at all times. The use of removable media (e.g., USB flash drives) for SVCE information is not permitted. Use of a safe and trusted network is required at all times. Wi-Fi in public places is not permitted without the authorized SVCE Virtual Private Network (VPN). Personnel should log off from applications or network services when they are not needed. Laptops should be secured at all times. Personnel must complete assigned security awareness trainings by given due dates.
Information created, sent, received, or stored on SVCE information resources is not private and may be accessed by authorized SVCE employees at any time.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-04 [Identity and
Access Management]
Establishes requirements to ensure access and use of SVCE information resources are managed in accordance with business requirements, information security requirements, and other SVCE standards and guidance. Access to SVCE information resources requires a legitimate business justification on a "need-to-know" basis. All SVCE information resources must document the identification of responsible owners. Access to SVCE information resources must be secured with a username/password, including multifactor authentication (MFA) if possible. All personnel must review and acknowledge the IT standards before access is granted, which includes a documented request and approval. Accounts associated with services containing confidential data must enforce password expiration. Administrative/Special access accounts must be logged and refrain from abuse of privilege only performing tasked required for the job function. Staff may reset passwords for business purposes. Passwords must be constructed using direction provided by the IT department. Remote access occurs through approved remote access methods with data encryption and MFA and must be terminated after one hour of inactivity unless approved.
ITS-05 [Network
Management]
Establish rules for maintenance, expansion, improvements, and use of the network infrastructure. The SVCE IT team or an approved contractor must install all cabling to provide a consistent network infrastructure capable of leveraging new networking developments. Technical controls and solutions must be implemented to protect the network from unauthorized access. Connections to the SVCE internal network must be authorized by IT. All connections of the network infrastructure to external third-party networks must be approved and reviewed by SVCE IT. The use of network devices is not permitted without authorization from SVCE IT management. All wireless access points or devices that provide access to the SVCE wireless network must be approved by IT management. Network equipment and distribution racks must be located in a secure room only accessible by the SVCE IT team.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-06 [Physical Security] Establishes methods to prevent unauthorized physical access or damage to the organization's information and information processing facilities. Physical offices shall meet all local building codes for construction materials and some interior zones may be identified as secure areas where physical access is further restricted (e.g., private offices and wiring closets). Secure areas shall be protected by appropriate entry controls. Where possible, access control systems shall be tied to a centralized system that provides granular access control for individual personnel.
Physical security for offices, rooms, and facilities shall be designed and applied to protect from theft, misuse, environmental threats, unauthorized access, and other threats to the confidentiality, integrity, and availability of classified data and systems. Piggy-backing, tailgating, and door propping to circumvent door access controls are prohibited. File cabinets with confidential information should be locked when not in use or unattended. Copies of documents containing confidential information should be immediately removed from printers and fax machines.
Where feasible, secure areas shall be monitored through the use of intrusion detection systems, alarms, and/or video surveillance systems. Visitors, delivery personnel, outside support technicians, and other external agents require escort and appropriate oversight. Third parties shall sign in and out of a visitor log maintained by SVCE personnel. Third-party access to secure areas shall be confirmed with appropriate SVCE personnel prior to being granted access. Delivery and loading areas and other points where unauthorized persons could enter secure areas shall be controlled. Visitors and third parties shall comply with SVCE physical security requirements. Photographic, video, audio, or other recording equipment, such as cameras with recording capabilities, are not permitted in secure areas or any other area designated a recording-free zone. Damage and potentially unauthorized access must be reported to the appropriate personnel immediately.
ITS-07 [Vulnerability
Management]
Establishes rules for the review, evaluation, application, and verification of system updates to mitigate vulnerabilities in the IT environment and associated risks. Information resource configurations must be logged to record actions. All logs must be stored in a central log management solution and maintained for at least one year.
A review of log files must be conducted regularly and must be protected from tampering or unauthorized access.
The SVCE IT team maintains responsibility for patch management implementation, operations, and procedures. All information resources must be scanned on a regular basis to identify missing updates and any associated risks.
Penetration testing of the internal network, external network, and hosted applications must be conducted at least tri-annually. Vulnerability scans must be conducted at least quarterly. Failed vulnerability scan results will be remediated based on a timeline: critical vulnerabilities remediated within 15 calendar days, high vulnerabilities remediated within 30 days, medium vulnerabilities remediated within 60 days, and low vulnerabilities remediated within 90 days of initial detection.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-08 [Business
Continuity Disaster
Recovery]
Defines a business continuity and disaster recovery (BC/DR) plan for SVCE in the event of extended service outages caused by factors beyond control (e.g., natural disasters) and to restore services to the widest extent possible in a minimum time frame. The IT team shall determine mitigation actions and will review this standard as well as backup restoration processes on an annual basis. If the SVCE office becomes unavailable, all staff shall work remotely from their home offices or an IT-designated location. Communications shall occur over IT-approved chats, email, phone, and online meeting tools. Key contacts are maintained in the Security Contact Info cloud-based IT Workspace. Responsibilities are outlined where the IT team leads the BC/DR efforts, Directors/Managers are responsible for communicating with their staff, the CEO and CFO are responsible for client communications, the ESCR team leads efforts to maintain the continuity of SVCE services for customers, and the HR Director is responsible for internal communications regarding physical health and safety. Key business processes and continuity strategies are outlined.
ITS-09 [Incident
Response]
Establishes methods of response to information security incidents. The actual Incident Response Plan is documented in ITS-09A01 Incident Response Plan and provides direction and focus on the handling of information security incidents that adversely affect SVCE information resources. The Incident Response Commander leads the Incident Management Plan with a response to information security related incidents at the organization affecting SVCE information resources. The plan articulates a process that includes preparation, identification and handling, and recovery. The plan describes required notification both internally and with third parties.
ITS-09A01 [Incident
Response Plan]
Provides direction and focus to handling information security incidents that adversely affect SVCE information resources. An incident is defined as a violation or imminent threat of violation of computer security policies, acceptable use policies, or standard security practices that jeopardize the confidentiality, integrity, or availability of information resources or operations. A security incident may involve one or more of the following: violation of an explicit or implied SVCE security policy, attempts to gain unauthorized access to a SVCE information resource, denial of service to a SVCE information resource, unauthorized use of SVCE information resources, unauthorized modification of SVCE information, and loss of SVCE confidential or protected information. Establishes a Cyber Security Incident Handling Team (IHT) consisting of legal experts, risk managers, and other department managers. Establishes a Cyber Security Incident Response Team (CSIRT) comprised of IT management and experienced personnel to move the incident to containment, investigation, and recovery. Outlines detailed Incident Response Framework consisting of six phases - preparation, identification and assessment, containment and intelligence, eradication, recovery, and lessons learned with a summary of checklist items in Appendix III.
Finance
Name Detailed Summary and Revisions
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
[Retired] FP03 - Capital
Projects Policy
CEO includes a proposed capital budget that identifies capital projects as part of the budget submission. CEO evaluates capital projects based on the benefit to the SVCEA, operations and reliability, life of an asset, total project costs, and completion schedule, risks on not funding, sources of funding, and impact to the operational budget. Operational, administrative, maintenance, and interest expenses incurred prior to actual completion of capital improvement are included in the capital budget. Once the project completes, such costs are included in the operating budget. The CEO provides the Board of Directors a semi-annual Capital Projects Report. [Retired] FP05 - Customer
Generations Rates
Customer Generation Rates will be set at 1% below PG&E's generation rates in January 2017 and remain unchanged, subject to volatility in wholesale power pricing, until January 2019. For rate setting beyond 2018, electric rates are designed to generate sufficient revenue after consideration of interest income and miscellaneous revenue to support the full cost of operations, debt service, equity funding of capital investments, funding of reserve accounts, and any other current obligations. Electric rates will ensure a two-times minimum debt service coverage ratio. A rate adequacy review shall be completed every five years at a minimum through a cost-of-service study. [Retired] FP13 - Chart of
Accounts
Moved to a standard. Assigns ledger accounts a descriptive account title and numbers to produce meaningful financial data for the Agency. Provides design of accounts and arrangement based on the sequence they appear in the financial statements. Short title description and definition of each account should be sufficient, concise, and meaningful.
[Retired] FP07 -
Purchasing Card Policy
Moved to the standard level. Allows SVCE purchasing cards to be issued and used by staff, subject to a $20k monthly limit.
FP01 - Accounting Policy Adds references to standards for delinquent accounts and capitalizing assets; attachments FP-01A (Establish Audit Committee) and FP-01B (Establish Finance and Administration Committee). Removes language requiring five members of the F&A Committee as the number may change due to transitions. Adds language of PG&E issuing bills to customers and power of disconnections to manage delinquent accounts. SVCE staff maintains standards for managing delinquent accounts but has no power for disconnections. Adds language on maintaining a chart of accounts. Changes the minimum frequency of F&A Committee meetings from quarterly to three times a year.
FP02 - Budget Policy Adds CEO's maintenance of standards related to showings for capital expenditures for budgeting purposes and limitations on debt. Adds customer generation rates being set through the Board-approved budget for the corresponding fiscal year or as designated by the Board after establishing the budget. Updates pronouns from he/she and him/her to they/them. Moved over hire authority to HR Policy 01: Personnel.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
FP06 - Purchasing and
Spending Policy
Adds language on CEO's ability to delegate their authority to approve and execute energy procurement contracts for terms less than or equal to 12 months to meet SVCE's expected energy, capacity, and hedging needs, which the CEO will timely report to the Board; contracts with a not-to-exceed maximum of $250,000 per vendor and per fiscal year; amendments that improve contract terms; in the event of an emergency, not-to-exceed maximum dollar amount of 150% of $250,000 per fiscal year or 500% of $250,000 per fiscal year with prior written consent of two Executive Committee members. Adds language for CEO to delegate their authority to approve and execute standards related to Purchasing Card issuance and use by staff. If the CEO delegates their authority, documentation must be provided in purchasing standards. Adds language on the CFO approving all ACH and wire transfers. Allows for solicitations, sole source purchasing, cooperative purchasing, and disposal of property according to standards established by the CEO.
FS08 - Purchasing and
Spending
Migrated information from FP06 - Purchasing and Spending Policy including solicitation requirements for informal and formal solicitations; sole source purchasing; cooperative purchasing; and disposal of property. Adds significant language on solicitations, such as the requirement of a formal request for proposal for services or quotes for goods over $50,000. For bids between $10,000.10 to $50,000, an informal quote process is applied and documented on the sole source justification form.
FP08 - Investment Policy Section Delegation of Authority was updated to include CEO's designee and CFO or their designee as authorized to sign investment documents. Removed Sections on Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Hedging Program, Reporting Requirements, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Maximum Maturities, Internal Controls, and Performance Standards as the majority of this information is being transferred to a standard FS-04: Investment. Added language that SVCE's portfolio will not include investment in companies in the industries or subindustries of Fossil Fuel Extraction, Refining, and Distribution. Added language on Additional Investment Standards.
FP10 - Delinquent
Accounts & Collections
Policy
Clarifies PG&E's power of disconnections to manage delinquent accounts and that SVCE does not have the power of disconnection. And clarifies that the CFO must approved accounts that are written off.
FP11 - Capitalization Policy Clarifies limit is with respect to individual assets. Updates individual asset useful life costing more than $1,000 to costing more than $5,000 to be capitalized and recorded in depreciation records. Any asset that does not meet this criteria will be expensed (e.g., small equipment).
FS01 - Capital Projects This is a new FS-01 Capital Projects Standard transitioned from the previous FP-03 Capital Projects Policy. There are no changes from the previous policy except to repurpose the policy to a standard format.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
FS03 - Customer
Generation Rates
This is a new FS-03 Customer Generation Rates Standard transitioned from the previous FP-05 Customer Generation Rates Policy. Removes language of rates being set 1% below PG&E's generation rates and replaces with rates being set by the Board-approved budget for the corresponding fiscal year. Removes references to outdated years (e.g., 2017). Replaces language of interest income with all expenses.
FS04 - Investment New FS-04 Investments Standard consists of the previous language removed from FP-08 Investment Policy:
Subjects on Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Hedging Program, Reporting Requirements, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Maximum Maturities, and Performance Standards.
FS06 - Purchasing Card
Standard
New FS-06 Purchasing Card Standard that replaces previous FP07 Purchasing Card Policy. Adds language that P-cards may be extended to other staff as designated by the CEO. Adds language to include the CEO and CFO as approvers in the issuance of P-Cards, P-Card Limit, and P-Card Delegation Forms; delegation to other staff with the approval of CEO, CFO/Director of Finance and Administration, or their delegate. Adds language on the development of purchasing card standards. Adds reference to Missing Supporting Documentation Affidavit for any transaction missing documentation. Replaces pronouns his/her with their, replaces any reference of "policy" with "standard", and replaces "personal business expense" with "personal expense" that is not prohibited.
FS07 - Chart of Accounts New FS-07 Chart of Accounts Standard replaces previous FP-13 Chart of Accounts Policy. Removes account codes from 2017 as the current list of account codes are memorialized in the FS-07A01 Chart of Accounts Standard Attachment. References FS-07A01 containing the current list of the Chart of Accounts.
FS07A01 - Chart of
Accounts
New FS-07A01 Chart of Accounts Standard Attachment replaces account definitions in the previous FP-13 Chart of Accounts Policy. Memorializes current list of Chart of Accounts by title, type, number, and notes.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
Attachment 1 Table 3: Controls
Human Resources
Name Controls
HRP-01 [Personnel &
Reimbursement]
*CEO is designated as the Personnel Officer and is authorized and directed to administer the personnel system, and may delegate powers of the Personnel Officer as appropriate. *The Personnel Officer and General Counsel will act as appointing authorities for all employees of SVCE implementing an employee handbook, personnel rules and regulations necessary for personnel administration. *Board approval needed to add a position added or adjust salary that causes the total annual budget to be exceeded in total by fiscal year-end.
HR Handbook *One source for employee-facing HR standards and policies. *Updates to any employee-facing HR Standard or Policy is summarized in the HR Handbook. *Generally provides limitations and requires various approvals by HR and Finance and Administration for the different types of leave and benefits including unpaid leave, accommodations, PTO cash out option, etc.
HRS-01 [Technology
Stipend]
*Employee registers their smartphone to SVCE Mobile Asset Management (MAM) program *Residential internet service needs to be at least 100 Mbps (download)/ 20 Mbps (upload) *Stipend is neither permanent or guaranteed. SVCE reserves the right to modify or cancel this benefit. *SVCE does not accept liability for claims, charges, or disputes between service provider(s) and the employee.
HRS-02 [Recruitment
Incentive]
*Threshold of 10% of salary or $15,000 incentive. *Employee must compensate SVCE if the employee terminates within 12 months from which the bonus is received.
HRS-03 [Volunteer Time
Off]
*Threshold of 40 hours per year of Volunteer Time Off (VTO). *VTO must be longer than 2 hours. *VTO must be no more than 2 days per quarter. *VTO does not accrue and is refreshed at the beginning of each calendar year.
HRS-04 [Unpaid Leave] *Approval of immediate supervisor, department director, and CEO is required for leave longer than one week. *F&A ensures any employee on an approved leave of absence is not paid.
HRS-05 [Paid Time Off
Cash Out]
*Minimum of 40 hours must be retained in PTO bank, and confirmation of retention of 40 hrs in PTO bank is verified. *Limit of two PTO cash-outs and not to exceed 80 hours per calendar year.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
HRS-06 [Tuition
Assistance]
*There needs to be an availability of funding based on the annual budget process. * Two weeks prior to course start, an employee submits the Tuition Assistance Reimbursement form to their supervisor and department director. *Employee provides written justification of coursework that aligns with SVCE's core mission, employee's duties, or future opportunities within the agency. *Documentation (proof of payment, registration completion, and proof of completion) must be received within 60 days of course completion *If an employee voluntarily leaves, they must repay tuition reimbursements received within 12 months preceding the employee separation date or a deduction from employee compensation is due.
HRS-07 [Cash in Lieu of
Health Benefits]
*Employee submits proof of other current health coverage. *Employee submits Election of Cash In-Lieu form declining all SVCE-offered coverage (medical, dental, and vision).
HRS-08 [Fitness
Reimbursement Benefit]
*Injuries resulting from an employee’s participation in this Program will not qualify for worker’s compensation benefits. *Expense reimbursement submitted in HRIS demonstrates reimbursement meets requirements of the program along with receipts and inputs of approved health club, fitness program, equipment, or service.
HRS-09 [Flexible Work] *Employees agree to ensure that they have a workspace that lends itself to remote work in that it is 1) free from distractions that would impede success; 2) safe and free from hazards that could lead to harm or injury; 3) compliant from a cyber security perspective; and 4) aligned with the required IT requirements outlined in the technology stipend. *Employees agree to ensure their work documents and devices are secured and confidential and that passwords are protected. *Employees who are approved to live outside the SVCE service territory do so at their own choosing and will not be reimbursed for regular travel. expenses associated with required in-office time. *Working outside of the United States is not permitted.
General &
Administration
Name Controls
GAP02 - Vehicle and
Charger Use Policy
*Staff maintains standards for AOV management that include pre-driving and qualification requirements, reservation process, driving requirements, reported accidents; traffic violations, parking tickets; required documentation, and serving the AOV. *Staff maintains standards for electric vehicle charging stations located at the SVCE office, which include charging requirements and limitations, safety, and limitation of liability.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
GAP04 - CA Public Records
Act Policy
*SVCE must adhere to the California Public Records Act (CPRA) and SVCE affirms the public's right to access its public records. SVCE staff will cooperate fully with the Board Clerk in producing records in a timely manner typically within 10 calendar days starting the day after the request receipt date except in cases with unusual circumstance. *The requestor is responsible for any direct cost of producing a paper or electronic record if applicable. If a request requires compilation, extraction, or computer programming to produce the record, or requires the production of an electronic record that is otherwise produced only at regularly scheduled intervals, the requester shall bear the cost of producing the electronic copy, including the fully burdened hourly rate of staff members required to construct the record or the cost charged by an outside programmer or consultant. SVCE is not required to reconstruct electronic copies of records that are no longer maintained or available in an electronic format.
GAP07 - CEO Absence
Policy
*When the CEO is absent from work and unavailable to perform the regular functions of the role, the CEO shall designate one Department Director to service as Acting CEO during their absence. In cases where the CEO is unable to designate an Acting CEO or should an absence extend beyond 30 days, a special meeting of the Executive Committee shall be called to appoint an Acting CEO.
GAP09 - Hybrid Meetings
Policy
*At least a quorum of the members of the SVCE's Board of Directors/Committee members must participate in person at a singular physical location within the agency's jurisdiction where the public can attend.
GAS01 - Vehicle and
Charger Use
*AOV drivers must be added to the insurance plan, sign off on the AOV driver code-of-conduct, submit a new driver checklist, and be approved by the Director of ESCR or his or her designee. *The SVCE charging station stalls are limited to 4 hours of use. Authorized SVCE personnel may disconnect the vehicle at any time.
GAP10 - Files and Records
Management Policy
*SVCE is subject to the CPRA and must maintain records for public inspection. SVCE developed standards that outline methods for record maintenance to support public access and transparency.
GAS03 - Travel and
Meeting Expense
Reimbursements
*Advanced CEO approval is required for incurring expenses for out-of-state travel by SVCE employees. *All in-state travel involving overnight accommodations is approved by the appropriate department head only under specified conditions. *Travel and meeting expenditures shall not exceed approved budget appropriations and associated fiscal policies. *Reimbursement claims should be submitted no later than 60 days, and in no event later than 180 days, after the event and include an itemization of expenses, a brief explanation, and original receipts.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
GAS02 - Files and Records
Management
*Files labeled with employee names are considered confidential personnel files only accessible to those who are in direct line of supervisory authority or those responsible for payroll or human resource duties on a need-to-know basis. *Staff shall determine whether files labeled with an energy counterparty name contain confidential information before public release. *Record Retention Periods is a guide for record maintenance. Three to six months after year-end, a CEO-designated SVCE employee will proceed with record destruction for files that have exceeded their holding period.
Information Technology
Name Controls
ITP-01 Information
Technology
*All staff and designated parties that have access to SVCE IT are personally responsible for exercising the proper control over information according to operational standards and are informed of security measures through ongoing required training. *IT resources are tracked and monitored through established tools. *All operational standards will be reviewed on an annual basis.
ITS-01 [Data
Management]
*Defines classification of data types: public, restricted, and confidential where access is restricted to users on a “need-to-know” basis determined by business requirements. The data owner is responsible for identifying additional requirements for specific data or exceptions to data handling. *Data transfer to people or outside entities shall be done with a non-disclosure agreement or a data-sharing vendor agreement with approval from their manager, the IT department, and the General Counsel. *Includes specific limitations from rules related to data privacy.
ITS-02 [Asset
Management]
*Hardware, software, and application inventories must be maintained and reviewed no less than annually. *SVCE assets must be maintained and repaired based on the manufacturer’s recommended guidelines. *Employees are responsible for ensuring agency equipment is secured and properly attended to. * Assets must be returned to SVCE upon termination of employment or end of the asset’s useful life.
ITS-03 [Information
Security]
*All hardware must be formally approved by IT Management before being connected to SVCE networks. *Software must be approved and installed by SVCE IT and be properly licensed. *All mobile devices connecting to SVCE’s resources must be setup to use strong encryption and are required to use the approved tools and solutions, defined by SVCE IT. *All personnel must review and acknowledge the IT standards and complete assigned security awareness trainings by assigned due dates.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-04 [Identity and
Access Management]
*Accounts created must have an associated, and documented, request and approval. *Accounts and access rights for all Silicon Valley Clean Energy information resources must be reviewed and reconciled at least annually, and actions must be documented. *The level of access required to perform authorized tasks may be approved. *Remote access connections to SVCE networks will be made through the approved remote access methods employing data encryption and multi-factor authentication.
ITS-05 [Network
Management]
*Connections to the SVCE internal network must be authorized by IT. *Wireless access points or devices that provide access to SVCE's wireless network must be approved by IT management. *SVCE IT must approve connections of the network infrastructure to external third-party networks. *Network equipment and distribution racks must be located in a secure room only accessible by the SVCE IT team.
ITS-06 [Physical Security] *Secure areas shall be protected by appropriate entry controls to ensure that only authorized personnel are allowed access. *Physical security for offices, rooms and facilities shall be designed and applied to protect from theft, misuse, environmental threats, unauthorized access, and other threats to the confidentiality, integrity, and availability of classified data and systems. *Secure areas shall be monitored through the use of intrusion detection systems, alarms, and/or video surveillance systems where feasible. *Supporting infrastructure shall be regularly serviced and maintained in accordance with the manufacturer’s recommendations. *Third parties shall sign in and out of a visitor log and shall be escorted or monitored by SVCE personnel.
ITS-07 [Vulnerability
Management]
*SVCE-owned and/or managed Information Resources must use the Silicon Valley Clean Energy IT management-approved endpoint protection software and configuration. *Logs to record actions must be stored in a central log management solution and maintained for at least one year. A review of log files must be conducted regularly. *All files must be scanned for malware before use. *All Information Resources must be scanned regularly to identify missing updates. *Failed vulnerability scan results will be remediated based on a timeline: critical vulnerabilities remediated within 15 calendar days, high vulnerabilities remediated within 30 days, medium vulnerabilities remediated within 60 days, and low vulnerabilities remediated within 90 days of initial detection.
ITS-08 [Business
Continuity Disaster
Recovery]
*In the event of the loss or unavailability of the SVCE office, a natural disaster, or a scenario involving major disruption, the BC/DR plan shall be automatically activated. *The IT team will review the BC/DR standard on an annual basis. *Communications shall take place over IT-approved chats, email, phone, and online meeting tools.
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-09 [Incident
Response]
*In the event of an information security incident, the Incident Management Plan will provide direction to address the incident with clear steps to prepare, identify, handle, and/or recover SVCE Information Resources. *The plan includes a description of roles and responsibilities, the establishment of an Incident Response Commander, and key contacts.
ITS-09A01 [Incident
Response Plan]
*Establishes a Cyber Security Incident Handling Team (IHT) consisting of legal experts, risk managers, and other department managers. The CFO, an IHT member, seeks approval from Executive Management (i.e., the CEO, also an IHT member) to administer the Incident Response Program. *Establishes a Cyber Security Incident Response Team (CSIRT) comprised of IT management and experienced personnel to move the incident to containment, investigation, and recovery. *Outlines detailed Incident Response Framework consisting of six phases - preparation, identification and assessment, containment and intelligence, eradication, recovery, and lessons learned with a summary of checklist items in Appendix III.
Finance
Name Controls
FP01 - Accounting Policy *CPAs perform an annual financial audit and an official annual financial report shall be issued no later than six months following the fiscal year end. *Audit and Finance and Administrative Committees are formed for financial oversight. *The Board of Directors has final approval of the audit.
FP02 - Budget Policy *The Board of Directors approves and adopts the budget. In the event the Board does not adopt the budget by the end of the fiscal year, the Board may adopt a continuing appropriations resolution until such time as the budget is adopted. *Customer generation rates are set through the Board-approved budget for the corresponding fiscal year or as designated by the Board after establishing the budget.
FP06 - Purchasing and
Spending Policy
*Delegated CEO authority must be documented *Limits CEO contracting authority to $250,000/fiscal year *Maximum emergency authority requires 2 ExCom Members *CFO must approve all ACH and wire transfers *Established solicitation options and directs staff to develop standards Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
FS08 - Purchasing and
Spending
*Sets requirements to seek multiple bids to ensure low cost for SVCE. *Directs award to be made to vendor in the agency's best interest. *Larger projects (+$50k) must be awarded following an RFP/RFQ process. *Sole source purchasing must be justified without relying on personal preference, cost, vendor performance, local service, features that exceed minimum requirements, explanations of the need for the equipment or service unless it is a unique case. *Cooperative purchasing must satisfy SVCE bidding requirements *Disposal of property will be reported to the Board and may only be disposed of by specified methods.
FP08 - Investment Policy *No more than 5% of SVCE's total investment portfolio will be invested in a single security type with a single financial institution. *Various limitations on the types of investments possible to manage risk.
FP10 - Delinquent
Accounts & Collections
Policy
*Three notices are sent to customers that meet delinquent customer criteria. *Closed accounts may be written-off with approval by the CFO.
FP11 - Capitalization Policy *All assets with value above $5,000 must be capitalized. *There is a lifespan table guide for financial reporting and depreciation: 3 years for computer software, hardware, and office machinery; 5 years for automobiles; 7 years for office furniture and fixtures.
FS01 - Capital Projects *Board reviews Capital Projects Report twice a year.
FS03 - Customer
Generation Rates
*A rate adequacy review shall be completed every five years at a minimum through a cost-of-service study.
FS04 - Investment *Director of Administration and Finance shall be responsible for preparing a monthly report of transactions for the Board of Directors.
FS06 - Purchasing Card
Standard
*Each P-card shall not exceed $20,000 monthly, subject to the CEO's discretion. *CEO, CFO or Director of Finance and Administration must approve P-card issuance. *All P-cards and their limits must be approved on the P-Card Per Cardholder Limit form prior to being issued. *Delegated use of P-Cards must be requested in writing via the P-Card Delegation Form. *Outlines allowable and unauthorized P-Card use in the policy. *Any missing documentation requires written explanation and signed affidavit on the Missing Supporting Documentation Affidavit.
FS07 - Chart of Accounts *Specifying accounts in advance enables funds to be accounted for properly. *Design of accounts and arrangement is based on the sequence they appear in the financial statements.
FS07A01 - Chart of
Accounts
*Qualitative description is transferred to an easier quantitative format to improve visibility and act as a quick reference.
Item 6
Attachment 2
Cadence for Updates and Training
for Policies and Standards
NOTE: Policies (P) and Standards (S) are denoted below in the acronyms within each area of SVCE. For example, the IT Policies are referenced as ITP and IT Standards as ITS.
Item 6
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 6 Agenda Date: 12/11/2024
Attachment 2 Table 1: Cadence for Updates and Training for Policies and Standards General & Administration Cadence for
Updates
Cadence for
Training
Staff to Train
GAP01 - Vehicle and Charger Use Policy 5 Years 2 Years Uses/manages SVCE vehicles
GAP04 - CA Public Records Act Policy 5 Years 1 Year All & Board GAP07 - CEO Absence Policy 5 Years As updated CEO, HR Director, Clerk
GAP09 - Hybrid Meetings Policy 5 Years As updated CEO, Clerk & Board
GAP10 - Files and Records Management
Policy
5 Years 2 Years All Staff
GAS01 - Vehicle and Charger Use 5 Years 2 Years Uses/manages SVCE vehicles
GAS02 - Files and Records Management 5 Years 2 Years All Staff GAS03 - Travel and Meeting Expense
Reimbursements
5 Years 2 Years All
Human Resources Cadence for
Updates
Cadence for
Training
Staff to Train
HRP-01 [Personnel & Reimbursement] 5 Years As updated CEO, CFO, Director of HR
HR Handbook 1 Year As updated All Staff
HRS-01 [Technology Stipend] 5 Years As updated All Staff HRS-02 [Recruitment Incentive] 5 Years None CEO, Director of HR
HRS-03 [Volunteer Time Off] 5 Years As updated All Staff HRS-04 [Unpaid Leave] 5 Years As updated All Staff
HRS-05 [Paid Time Off Cash Out] 5 Years As updated All Staff HRS-06 [Tuition Assistance] 5 Years As updated All Staff HRS-07 [Cash in Lieu of Health Benefits] 5 Years As updated All Staff HRS-08 [Fitness Reimbursement Benefit] 5 Years As updated All Staff HRS-09 [Flexible Work] 5 Years 2 Years All Staff
Information Technology Cadence for
Updates
Cadence for
Training
Staff to Train
ITP-01 Information Technology 1 Year 2 Years All Staff
ITS-01 [Data Management] 1 Year 1 Year w/ access to
customer data
ITS-02 [Asset Management] 1 Year 2 Year All Staff
Item 6
Agenda Item: 6 Agenda Date: 12/11/2024
ITS-03 [Information Security] 1 Year 2 Years All Staff
ITS-04 [Identity and Access
Management]
1 Year 2 Year All Staff
ITS-05 [Network Management] 1 Year 2 Years All Staff
ITS-06 [Physical Security] 1 Year 2 Years All Staff
ITS-07 [Vulnerability Management] 1 Year 2 Years IT Team ITS-08 [Business Continuity Disaster
Recovery]
1 Year 1 Year Executives and
Managers
ITS-09 [Incident Response] 1 Year 2 Years Incident Response Team
Finance Cadence for
Updates
Cadence for
Training
Staff to Train
FP01 - Accounting Policy 5 Years 2 Years Finance Team
FP02 - Budget Policy 5 Years 2 Years CEO, Finance
Team
FP06 - Purchasing and Spending Policy 5 Years 2 Years Leadership Team FP08 - Investment Policy 5 Years 2 Years Finance Team
FP10 - Delinquent Accounts & Collections
Policy
5 Years 2 Years Finance Team,
ESCR
FP11 - Capitalization Policy 5 Years 2 Years Finance Team FS01 - Capital Projects 5 Years 5 Years Finance Team
FS03 - Customer Generation Rates 5 Years Onboarding CEO, Finance Team, ESCR
FS04 - Investment 5 Years 2 Years Finance Team
FS06 - Purchasing Card Standard 5 Years 2 Years All Cardholders FS07 - Chart of Accounts 5 Years 2 Years Finance Team
FS07A01 - Chart of Accounts 5 Years 2 Years Finance Team FS08 - Purchasing and Spending 5 Years 2 Years Leadership Team Item 6
Attachment 3:
Redline and Clean Versions of Policies
Item 6
SILICON VALLEY \3/ CLEAN ENERGY
FP1
Category: FINANCE
Page | 1 Adopted: 3/08/2017
Revised: 3/14/2018
ACCOUNTING POLICY
I. PURPOSE
The purpose of this policy is to document the Agency’s method of accounting, audit schedule, and standards of internal controls, standards for. delinquent accounts, and standards for capitalizing assets.
II. POLICY
1. The Agency will establish accounting practices that conform to Generally Accepted Accounting Principles (GAAP) for governmental entities.
2. An independent firm of Certified Public Accountant (CPAs) shall perform an annual financial audit and an official annual financial report shall be issued no later than 6 months following fiscal year-end.
3. Audit contracts shall be competitively bid at least every five years, or sooner as desired by the Board. Staff will present the process and the results of its screening and selection process of the external auditor to the SVCE Board of Directors.
4. Quarterly, the Agency’s Accounting Statements, including a Balance Sheet, a Profit and Loss Statement, and Statement of Cash Flows shall be submitted to the SVCE Board of Directors.
5. Internal control procedures shall be developed and routinely updated to ensure accurate financial reporting and an effective internal control structure over the assets of the Agency.
6. The SVCE Board of Directors shall establish an three-member Audit Committee to primarily oversee the audit of the Agency’s financial statements by the external auditor, as described in attachment Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
I
FP1
Category: FINANCE
Page | 2 Adopted: 3/08/2017
Revised: 3/14/2018
FP1-A. The external auditor shall report directly to the Audit Committee. A management letter, the by-product of an annual audit, shall be presented to the SVCE Board of Directors by the independent certified public accounting firm no later than 60 days from issuance of the Agency’s audited financial report. The SVCE Board of Directors shall have final approval over the audit.
7. 6.8. The SVCE Board of Directors shall establish a five-member Finance and Administration Committee to primarily provide financial oversight of the Agency, as described in attachment FP1-B.
7. A management letter, the by-product of an annual audit, shall be presented to the SVCE Board of Directors by the independent certified public accounting firm no later than 60 days from issuance of the Agency’s audited financial report. The SVCE Board of Directors shall have final approval over the audit.
9. The CFO has the authority to establish and close bank accounts as needed to manage and account for SVCE funds.
8.10. Staff shall maintain a chart of accounts.
Policy Compliance
Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
Cadence for Review
• This Policy will be reviewed at least every five (5) years.
Reference Documents
Attachments:
• FP-01A01: Establish an Audit Committee
• FP-01A02: Establish Finance and Administration Committee Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
FP1-A
Category: FINANCE
Page | 3 Adopted: 2/14/2018
ESTABLISH AUDIT COMMITTEE
I. PURPOSE
The Board of Directors appoints the Aaudit Ccommittee to, among other things:
• oversee the accounting and financial reporting process and the audit of the Agency’s financial statements by the
independent auditor; and
• monitor compliance with the SVCE’s Cconflict of iInterest Code policy
o Each member shall be free of any relationship that, in the opinion of the Board of Directors, would interfere
with his or her individual exercise of independent
judgement.
II. REPORTING
The Aaudit Ccommittee reports directly to the Board of Directors.
III. COMMITTEE MEMBERSHIP
The Aaudit Ccommittee shall consist of no fewer than three members and no greater than six members. The members of the Aaudit Ccommittee shall be appointed annually by the Board of Directors.
Eligible Members to serve on the Audit Committee shall be Board members, Alternate Board members, and Member Agency Staff.
Committee Membership shall prohibit the appointment of Alternate Audit Committee Members. No more than one eligible Audit Committee Member shall represent their respective Member Agency. The Audit Committee shall designate the chairperson.
IV. COMMITTEE AUTHORITY and RESPONSIBILITIES
The Aaudit Ccommittee shall meet as often as it determines necessary or appropriate to fulfill its responsibilities, but no fewer than twice annually – once to review the audit plan and once to review the audited financials, and related documents, and to review the audit engagement, special investigations, financial irregularities and internal control failures. The Aaudit Ccommittee will be a Brown-Acted meeting. The following are the specific functions of the Aaudit Ccommittee:
Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
FP1-A
Category: FINANCE
Page | 4 Adopted: 2/14/2018
• The Aaudit Ccommittee shall annually retain or renew the appointment of an independent auditor to conduct the audit, and upon completion, must review the results of the audit and any related management letter.
• Review with the independent auditor the scope and planning of the audit prior to its commencement.
• Upon completion of the audit, review and discuss the
following with the independent auditor:
➢ Any material risks and weaknesses in internal controls identified by the independent auditor
➢ Any restrictions placed on the independent auditor’s
scope of the activities or access to requested
information
➢ The adequacy of the Agency’s interim and annual
accounting and financial reporting process
➢ Any recommendations made by the independent auditor
• Assess the performance and independence of the independent auditor on an annual basis.
• Report to the Board of Directors of the committee’s activities, and recommend the results of audit findings for approval.
Additional Responsibilities
• Review audit plans for the upcoming year and discuss with the external audit firm and management.
• Review presentation of financial information in the annual report for consistency with the audited financial statements before the annual report is printed.
• Review with management the internal control process, and risk management and mitigation process.
• Periodically review financial-related policies.
Limitation of Audit Committee’s Role
The Aaudit Ccommittee is not responsible for planning or conducting audits. The independent auditor is responsible for planning and conducting audits. Neither is the Aaudit Ccommittee responsible for (1) preparing and fairly presenting SVCE’s financial statements in accordance with generally accepted accounting principles, (2) maintaining effective internal control over financial reporting, nor (3) ensuring SVCE is in compliance with applicable laws, regulations, and other requirements. These responsibilities are management’s, and the Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
FP1-A
Category: FINANCE
Page | 5 Adopted: 2/14/2018
independent auditor and the Aaudit Ccommittee have independent and complementary oversight responsibilities for determining that the related objectives of management’s responsibilities, as described, are achieved.
Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
I
I
FP1-B
Category: FINANCE
Page | 6 Adopted: 2/14/2018
ESTABLISH FINANCE AND ADMINISTRATION COMMITTEE
I. PURPOSE
The Board of Directors appoints the Finance and Administration Committee to primarily provide financial oversight for SVCE and recommend to the Board the approval of budgets, financial plans, reserve policies and certain financial, accounting, administrative and information technology related policies and plans. Specific t Task areas will include budgeting and financial planning, financial reporting and the creation and monitoring of internal controls and accounting ability policies and investments.
II. REPORTING
The Finance and Administration Committee reports directly to the Board of Directors.
III. COMMITTEE MEMBERSHIP
The Finance and Administration Committee shall consist of no fewer than three members and no greater than six members. The members of the Finance and Administration Committee shall be appointed annually by the Board of Directors. Eligible Members to serve on the Finance and Administration Committee shall be Board members, Alternate Board members, and Member Agency Staff.
Committee Membership shall prohibit the appointment of Alternate Finance and Administration Committee Members. No more than one eligible Committee Member shall represent their respective Member Agency. The Finance and Administration Committee shall designate thea chairperson.
IV. COMMITTEE AUTHORITY and RESPONSIBILITIES
The Finance and Administration Committee shall meet as often as it determines necessary or appropriate to fulfill its responsibilities, but no fewer than quarterlythree times per year. The Finance and Administration Committee will be a Brown-Acted meeting.
Budgeting and Financial Reporting
1. Develop an annual operating budget with staff.
Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
FP1-B
Category: FINANCE
Page | 7 Adopted: 2/14/2018
2. Set long-range financial goals along with funding strategies to achieve them.
3. Monitor adherence to the budget.
4. Develop multi-year operating budgets that integrate strategic plan objectives and initiatives.
5. Present all financial goals and proposals to the Board of Directors for approval.
6. Develop useful and readable report formats with staff.
7. Present the financial reports to the Board of Directors.
Internal Controls and Accountability Policies
1. Create, approve, and/or Uupdate (as necessary) policies that help ensure the assets of the agency are protected.
2. Ensure policies and procedures for financial transactions are documented and reviewed annually, and updated as
necessary.
3. Ensure approved financial policies and procedures are being followed.
4. Developing other policies that further serve to protect the Agency including:
a. Personnel policies
b. Long-term contracts or leases.
c. Loans or lines of credit.
d. IT security.
e. Capital purchases.
f. Insurance requirements and reviews.
g. Records retention.
Investments
1. Draft an investment policyRefer to FP-08 Investments Policy detailing the objectives of the investment portfolio and guidelines on the asset allocation of the portfolio based on predetermined level of risk tolerance.
2. Ensure provisions of the policy are followed.
3. Review the policy at least annually and update if necessary.
4. Monitor investment returns.
Item 6
Attachment 3
Accounting Policy - Redline
©
SILICONVALLEY
CLEAN ENERGY
Effective on DATE
Finance Policy 1: Accounting
I. Purpose
The purpose of this policy is to document the Agency’s method of accounting, audit schedule, standards of internal controls, standards for delinquent accounts, and standards for capitalizing assets.
II. Scope
All SVCE accounting practices.
III. Policy
• The Agency will establish accounting practices that conform to Generally Accepted Accounting Principles (GAAP) for governmental entities.
• An independent firm of Certified Public Accountant (CPAs) shall perform an annual financial audit and an official annual financial report shall be issued no later than 6 months following fiscal year-end. • Audit contracts shall be competitively bid at least every five years, or sooner as desired by the Board. Staff will present the process and the results of its screening and selection process of the external auditor to the SVCE Board of Directors.
• Quarterly, the Agency’s Accounting Statements, including a Balance Sheet, a Profit and Loss Statement, and Statement of Cash Flows shall be submitted to the SVCE Board of Directors.
• Internal control procedures shall be developed and routinely updated to ensure accurate financial reporting and an effective internal control structure over the assets of the Agency.
• The SVCE Board of Directors shall establish an Audit Committee to primarily oversee the audit of the Agency’s financial statements by the external auditor and monitor compliance of Resolution No. 2017- 03, a resolution of the Board of Directors of the Silicon Valley Clean Energy Amending the Authority’s Conflict of Interest Code, as described in attachment FP1-A. The external auditor shall report directly to the Audit Committee. A management letter, the by-SILICON VALLEY \3/ CLEAN ENERGY Item 6
Attachment 3
Accounting Policy - Clean
Effective on DATE
product of an annual audit, shall be presented to the SVCE Board of Directors by the independent certified public accounting firm no later than 60 days from issuance of the Agency’s audited financial report.
The SVCE Board of Directors shall have final approval over the audit. • The SVCE Board of Directors shall establish a Finance and Administration Committee to primarily provide financial oversight of the Agency, as described in attachment FP1-B.
• The CFO has the authority to establish and close bank accounts as needed to manage and account for SVCE funds.
• Staff shall maintain a chart of accounts.
IV. Policy Compliance
A. Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
B. Cadence for Review
• This Policy will be reviewed at least every five (5) years.
V. Reference Documents
A. Attachments:
• FP-01A01: Establish an Audit Committee
• FP-01A02: Establish Finance and Administration Committee SILICON VALLEY \3/ CLEAN ENERGY
Item 6
Attachment 3
Accounting Policy - Clean
Effective on DATE
Finance Policy 1 Attachment 1: Establish
Audit Committee
I. Purpose
The Board of Directors appoints the Audit Committee to, among other things:
• oversee the accounting and financial reporting process and the audit of the Agency’s financial statements by the independent auditor; and • monitor compliance with SVCE’s Conflict of Interest Code o Each member shall be free of any relationship that, in the opinion of the Board of Directors, would interfere with his or her individual exercise of independent judgement.
II. Reporting
The Audit Committee reports directly to the Board of Directors.
III. Committee Membership
The Audit Committee shall consist of no fewer than three members and no greater than six members. The members of the Audit Committee shall be appointed annually by the Board of Directors. Eligible Members to serve on the Audit Committee shall be Board members, Alternate Board members, and Member Agency Staff. Committee Membership shall prohibit the appointment of Alternate Audit Committee Members.
No more than one eligible Audit Committee Member shall represent their respective Member Agency. The Audit Committee shall designate the chairperson.
IV. Committee Authority and Responsibilities
The Audit Committee shall meet as often as it determines necessary or appropriate to fulfill its responsibilities, but no fewer than twice annually – once to review the audit plan and once to review the audited financials, and related documents, and to review the audit engagement, special investigations, financial irregularities and internal control failures. The SILICON VALLEY \3/ CLEAN ENERGY
Item 6
Attachment 3
Finance Policy 1 Attach 1: Establish Audit Comm
Effective on DATE
Audit Committee will be a Brown-Acted meeting. The following are the specific functions of the Audit Committee:
• The Audit Committee shall annually retain or renew the appointment of an independent auditor to conduct the audit, and upon completion, must review the results of the audit and any related management letter.
• Review with the independent auditor the scope and planning of the audit prior to its commencement.
• Upon completion of the audit, review and discuss the following with the independent auditor:
o Any material risks and weaknesses in internal controls identified by the independent auditor
o Any restrictions placed on the independent auditor’s scope of the activities or access to requested information
o The adequacy of the Agency’s interim and annual
o accounting and financial reporting process
o Any recommendations made by the independent auditor
• Assess the performance and independence of the independent auditor on an annual basis.
• Report to the Board of Directors of the committee’s activities, • and recommend the results of audit findings for approval.
A. Additional Responsibilities
• Review audit plans for the upcoming year and discuss with the external audit firm and management.
• Review presentation of financial information in the annual report for consistency with the audited financial statements before the annual report is printed.
• Review with management the internal control process, and risk management and mitigation process.
• Periodically review financial-related policies.
B. Limitation of Audit Committee’s Role
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• The Audit Committee is not responsible for planning or conducting audits. The independent auditor is responsible for planning and conducting audits. Neither is the Audit Committee responsible for (1) preparing and fairly presenting SVCE’s financial statements in accordance with generally accepted accounting principles, (2) maintaining effective internal control over financial reporting, nor (3) ensuring SVCE is in compliance with applicable laws, regulations, and other requirements. These responsibilities are management’s, and the independent auditor and the Audit Committee have independent and complementary oversight responsibilities for determining that the related objectives of management’s responsibilities, as described, are achieved.
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Finance Policy 1 Attachment 2: Establish
Finance and Administration Committee
I. Purpose
The Board of Directors appoints the Finance and Administration Committee to primarily provide financial oversight for SVCE and recommend to the Board the approval of budgets, financial plans, reserve policies and certain financial, accounting, administrative and information technology related policies and plans. Specific task areas will include budgeting and financial planning, financial reporting and the creation and monitoring of internal controls and accounting policies and investments.
II. Reporting
The Finance and Administration Committee reports directly to the Board of Directors.
III. Committee Membership
The Finance and Administration Committee shall consist of no fewer than three members and no greater than six members. The members of the Finance and Administration Committee shall be appointed annually by the Board of Directors. Eligible Members to serve on the Finance and Administration Committee shall be Board members, Alternate Board members, and Member Agency Staff. Committee Membership shall prohibit the appointment of Alternate Finance and Administration Committee Members. No more than one eligible Committee Member shall represent their respective Member Agency.
The Finance and Administration Committee shall designate a chairperson.
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IV. Committee Authority and Responsibilities
The Finance and Administration Committee shall meet as often as it determines necessary or appropriate to fulfill its responsibilities, but no fewer than three times per year. The Finance and Administration Committee will be a Brown-Acted meeting.
A. Budgeting and Financial Reporting
• Develop an annual operating budget with staff.
• Set long-range financial goals along with funding strategies to achieve them.
• Monitor adherence to the budget.
• Develop multi-year operating budgets that integrate strategic plan objectives and initiatives.
• Present all financial goals and proposals to the Board of Directors for approval.
• Develop useful and readable report formats with staff. • Present the financial reports to the Board of Directors.
B. Internal Controls and Accountability Policies
• Update (as necessary) policies that help ensure the assets of the agency are protected.
• Ensure policies for financial transactions are documented and reviewed annually, and updated as necessary.
• Ensure approved financial policies and procedures are being followed. • Developing other policies that further serve to protect the Agency including:
o Personnel policies
o Long-term contracts or leases.
o Loans or lines of credit.
o IT security.
o Capital purchases.
o Insurance requirements and reviews.
o Records retention.
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C. Investments
• Refer to FP-08 Investments Policy detailing the objectives of the investment portfolio and guidelines on the asset allocation of the portfolio based on predetermined level of risk tolerance. • Ensure provisions of the policy are followed.
• Review the policy at least annually and update if necessary. • Monitor investment returns.
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FP2
Category: FINANCE
Page | 1 Adopted: 3/8/2017
Amended: 9/8/2021
BUDGET ADOPTION,
CONTROL AND REPORTING
POLICY
I. PURPOSE
This Budget Adoption, Control and Reporting Policy (“Budget Policy”) budget policy provides clarity about budget authority for the Chief Executive Officer (CEO) of Silicon Valley Clean Energy (SVCE) and lays out budget adoption and periodic budget reporting requirements. The policy also allows for sufficient flexibility to address changes in the market price of energy consistent with SVCE’s Financial Reserves Policy.
II. POLICY
Budget Adoption
The CEO, in concurrence with the Finance and Administration Committee, shall prepare a proposea d budget and budget overview and submit it tofor the Board for the following fiscal year two months prior to the end of the fiscal year. The proposed budget Authority’s Budget shall be balanced and in alignment with the proposed Strategic Plan. The bAuthority’s Budget shall reflects all activities, including operating, and capital programs expenditures, revenues and risk. The CEO will maintain standards related to showings for capital expenditures for budgeting purposes. A balanced budget is one in which expenditures are matched by revenues and recommended changes to rReserves.
The Chief Executive OfficerCEO shall submit a recommended budget document for adoption to the Board of Directors for approval by Resolution in the month following the proposedbudget submittal.
When approved by the Board, the budget shall be considered adopted and appropriated at the level it is controlled by the CEO, discussed below.
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In the event that the Board of Directors does not adopt the Authority’s Bproposed budget by the end of the fiscal year, the Board of Directors may adopt a continuing appropriations resolution until such time as thea Authority’s Bbudget is adopted. A continuing appropriations resolution would provide that payments for services performed on behalf of the AuthorityAgency and authorization of awarded contracts would continue until such time as the Authority’s Bbudget is adopted.
Staff will prepare a five-year financial forecast as part of the budget process projecting revenues and expenditures for all operating funds and planned capital projects in alignment with the Strategic Plan.
The budget document will also contain the following, at a minimum, a schedule showing revenues, expenses, and changes to financial reserves. The first year of the five-year horizon is the budget to be considered and formally adopted by the Board by Resolution. The final four years are shown for planning purposes and may be shown at more summary levels.
The first-year proposed budget shall further show:
• Expenditures by expense type/category across the organization; • Projected revenues;
• Organization chart(s) showing all proposed budgeted positions in the organization;
• A current salary schedule for job classifications to be in effect for the proposed fiscal year (Salaries may be adjusted by the CEO in the fiscal year, with salary changes being reported to the Board).
Budget Control
After adoption, the budget shall be controlled by the CEO at the total annual expenditure level for the SVCE organization, which includes power purchases, employee costs, contract and professional services, capital improvements, debt service, and all other costs. Customer Generation Rates will be set per the Board approved budget for the correwspondingcorresponding fiscal year or as designated by the Board after establishing the budget. The total budget may be amended by the Board during the year by Resolution.
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The CEO may institute separate budget procedures internally that give him/her/ the CEO further controls at the department and/or expenditure category level if he/she/the CEO y so desiress.
Budget Reporting
A budget-to-actual status update report shall be presented to the Board on a quarterly basis.
Authority to Flexibly Staff and Over hire Budgeted Positions Under the Human Resources Policy 01: Personnel and
Reimbursementpersonnel delegation resolution, the CEO is designated as the Personnel Officer and is authorized and directed to administer the personnel system, with duties that include the following with budgetary impacts:
• Define and prepare position classifications including the establishment of minimum standards of employment and
qualifications for the various positions;
• Prepare a schedule of compensation including salary and other benefits covering all employees;
• Prepare and present to the Authority Board a budget for implementation of the personnel system including employee salary and benefit costs as part of the annual budget process.
Notwithstanding the duties defined in the resolution above, the CEO is also granted authority to take the following actions which may affect the annual budget:
• Outsource functions that are currently staffed by positions when contracting is more advantageous to the operations of the organization or is more cost effective;
• Bring in-house any functions that are currently outsourced if the result would be advantageous to the operations of the
organization or more cost effective;
• Adjust salary schedules for market flexibility during the year to attract and retain talent;
• Over-hire the number of positions shown in the annual budget as follows:
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•
o On a temporary basis to minimize the impact that pending vacancies may have on the organization by allowing for
cross training and overlap;
On a permanent basis to improve operations and organization effectiveness, provided that the CEO may not over hire on a permanent basisauthorized to hire in excess of 10% of the authorized number of positions shown in the annual budget without prior approval of the Board.
In no case shall positions be added or salaries be adjusted during the year that cause the total annual budget to be exceeded in total by fiscal year-end without prior Board approval by Resolution.
Power/Energy Purchases Contingency
The nature of the energy markets is one of rapid changes in prices and market volatility. The ability to quickly adapt to those changes is important for maintaining consistent power delivery to customers.
Therefore, the CEO is granted authority to overspend the total annual budget for energy purchases by the lesser of 10% of the annual power supply budget, or $30 million, without Board approval provided the over expenditure is due to higher energy costs or greater customer demand. Overspending for these purposes may require use of reserves and the conditions on use of reserves as stated in the Financial Reserves Policy apply, where reserves cannot be drawn down more than 10% of the year’s budgeted cost of power supply or $30 million, whichever is less, nor below the baseline Minimum Operating Reserve level without Board approval.
I. Policy Compliance
Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
Cadence for Review
• This Policy will be reviewed at least every five (5) years.
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Finance Policy 2: Budget Adoption, Control and Reporting I. Purpose
This Budget Adoption, Control and Reporting Policy (“Budget Policy”) provides clarity about budget authority for the Chief Executive Officer (CEO) of Silicon Valley Clean Energy (SVCE) and lays out budget adoption and periodic budget reporting requirements. The policy also allows for sufficient flexibility to address changes in the market price of energy consistent with SVCE’s Financial Reserves Policy.
II. Scope
All budget requirements.
III. Policy
A. Budget Adoption
• The CEO, in concurrence with the Finance and Administration Committee, shall prepare aa budget and budget overview for the Board for the following fiscal year two months prior to the end of the fiscal year. The proposed budget shall be balanced and in alignment with the proposed Strategic Plan. The budget shall reflect all activities, including operating, capital programs expenditures, revenues and risk. The CEO will maintain standards related to showings for capital expenditures for budgeting purposes. A balanced budget is one in which expenditures are matched by revenues and recommended changes to reserves.
• The CEO shall submit a recommended budget document for adoption to the Board of Directors for approval by Resolution in the month following the proposed budget submittal. When approved by the Board, the budget shall be considered adopted and appropriated at the level it is controlled by the CEO, discussed below. • In the event that the Board does not adopt the proposed budget by the end of the fiscal year, the Board of Directors may adopt a continuing appropriations resolution until such time as a budget is SILICON VALLEY \3/ CLEAN ENERGY
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adopted. A continuing appropriations resolution would provide that payments for services performed on behalf of the Agency and authorization of awarded contracts would continue until such time as the budget is adopted.
• Staff will prepare a five-year financial forecast as part of the budget process projecting revenues and expenditures for all operating funds and planned capital projects in alignment with the Strategic Plan. • The budget document will also contain the following, at minimum, a schedule showing revenues, expenses, and changes to financial reserves. The first year of the five-year horizon is the budget to be considered and formally adopted by the Board by Resolution. The final four years are shown for planning purposes and may be shown at more summary levels.
• The first-year proposed budget shall further show:
o Expenditures by expense type/category across the
organization;
o Projected revenues;
o Organization chart(s) showing all proposed budgeted positions in the organization;
o A current salary schedule for job classifications to be in effect for the proposed fiscal year (Salaries may be adjusted by the CEO in the fiscal year, with salary changes being reported to the Board).
B. Budget Control
• After adoption, the budget shall be controlled by the CEO at the total annual expenditure level for the SVCE organization, which includes power purchases, employee costs, contract and professional services, capital improvements, debt service, and all other costs.
Customer Generation Rates will be set per the Board approved budget for the corresponding fiscal year or as designated by the Board after establishing the budget. The total budget may be amended by the Board during the year by Resolution.
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• The CEO may institute separate budget procedures internally that give the CEO further controls at the department and/or expenditure category level if the CEO so desires.
C. Budget Reporting
• A budget-to-actual status update report shall be presented to the Board on a quarterly basis.
D. Authority to Flexibly Staff and Over hire Budgeted Positions • Under the Human Resources Policy 01: Personnel and
Reimbursement, the CEO is authorized to hire in excess of 10% of the number of positions shown in the annual budget without prior approval of the Board.
• In no case shall positions be added or salaries be adjusted during the year that cause the total annual budget to be exceeded in total by fiscal year-end without prior Board approval by Resolution.
E. Power/Energy Purchases Contingency
• The nature of the energy markets is one of rapid changes in prices and market volatility. The ability to quickly adapt to those changes is important for maintaining consistent power delivery to customers.
Therefore, the CEO is granted authority to overspend the total annual budget for energy purchases by the lesser of 10% of the annual power supply budget, or $30 million, without Board approval provided the over expenditure is due to higher energy costs or greater customer demand. Overspending for these purposes may require use of reserves and the conditions on use of reserves as stated in the Financial Reserves Policy apply, where reserves cannot be drawn down more than 10% of the year’s budgeted cost of power supply or $30 million, whichever is less, nor below the baseline Minimum Operating Reserve level without Board approval.
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IV. Policy Compliance
A. Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
B. Cadence for Review
• This Policy will be reviewed at least every five (5) years.
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Revised: 2/13/2019
PURCHASING AND SPENDING POLICY
Scope: The Purchasing and Spending Policy applies to all contracts, vendors and spending “Contracts” excluding energy commodity and related products such as clean energy attributes, energy for hedging, capacity and other Board-approved products as provided for in the Energy Risk Management Policy.
1. Delegation to the Chief Executive Officer
The CEO shall have all necessary and proper authority and the ability to further delegate their authority to approve and execute:
a. contracts for Energy Procurement for terms of less than or equal to 12 months, to meet SVCE’s expected energy, capacity, and hedging needs, which the CEO shall timely report to the Board;
b.a.
c.b. contracts with a not-to-exceed maximum dollar amount of less than or equal to $100250,000 per vendor for a given scope of work, per fiscal year;
d.c. amendments or addenda to existing contracts, regardless of the existing contract’s price or total amount, which improves the terms of the contract to SVCE’s benefit without increasing the contract’s non-to-exceed maximum dollar amount; and e.d. in the event of an emergency situation contracts with a not-to- exceed maximum dollar amount of; i. 150% of the maximum dollar amount in Section 1.b if this policy$150,000 in the aggregate per fiscal year; or
ii. 500% of the maximum dollar amount in Section 1.b of this policy$500,000 in the aggregate per fiscal year with the prior written consent of two (2) Executive
Committee members
In order to avert or alleviate damage to property, to protect the Item 6
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health, safety and welfare of the community and SVCE’s
employees, or to repair or restore damaged or destroyed property of SVCE.
An “emergency situation” for purposes hereof is a situation creating an imminent danger to life or property or other material financial loss that calls for immediate action with inadequate time for prior Board approval. The Chief Executive Officer shall within thirty (30) days of the emergency, deliver a report to the Board of Directors explaining the necessity for the action, a listing of expenditures made under these emergency powers and any recommended future actions.
e. The CEO shall develop and maintain Purchasing and Spending Standards related to the vendor and/or goods solicitations, sole source justifications, the use and issuance of Purchasing Cards (P-Cards), disposal of property and general spending under the delegated authority including for employee travel and training, meetings, meals, operations, equipment and workforce development, . issuance and use by staff.
f. The CEO may delegate their authority under this policy and shall document any such delegations in Purchasing Standards.
g. The Board shall adopt Energy Risk Management Policies which include additional a delegation of authority to the CEO for contracts for energy and related procurement of less than five years in term.
All energy related procurement in excess of five years or more, requires Board approval.
h. The CEO may authorize staff to make payments utilizing any payment method they deem appropriate. However, all
automated clearinghouse (ACH) payments and wire transfers must be approved by the Chief Financial Officer.
2. Changes to this policy will be reviewed by the Finance and Administration Committee before being presented to the Board.
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I. Policy Compliance
A. Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
B. Cadence for Review
• This Policy will be reviewed at least every five (5) years.
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Finance Policy 6: Purchasing and Spending
I. Purpose
The purpose of this policy is to describe delegation and parameters for spend.
II. Scope
All SVCE purchases.
III. Policy
A. Delegation to the Chief Executive Officer
• The CEO shall have all necessary and proper authority and the ability to further delegate their authority to approve and execute:
o contracts for Energy Procurement for terms of less than or equal to 12 months, to meet SVCE’s expected energy, capacity, and hedging needs, which the CEO shall timely report to the Board;
o contracts with a not-to-exceed maximum dollar amount of less than or equal to $250,000 per vendor for a given scope of work, per fiscal year;
o amendments or addenda to existing contracts, regardless of the existing contract’s price or total amount, which improves the terms of the contract to SVCE’s benefit without increasing the contract’s non-to-exceed maximum dollar amount; and o in the event of an emergency situation contracts with a not-to-exceed maximum dollar amount of; ▪ 150% of the maximum dollar amount in Section 1.b if
this policy per fiscal year; or
▪ 500% of the maximum dollar amount in Section 1.b
of this policy per fiscal year with the prior written
consent of two (2) Executive Committee members
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• In order to avert or alleviate damage to property, to protect the health, safety and welfare of the community and SVCE’s employees, or to repair or restore damaged or destroyed property of SVCE. • An “emergency situation” for purposes hereof is a situation creating an imminent danger to life or property or other material financial loss that calls for immediate action with inadequate time for prior Board approval. The Chief Executive Officer shall within thirty (30) days of the emergency, deliver a report to the Board of Directors explaining the necessity for the action, a listing of expenditures made under these emergency powers and any recommended future actions. o The CEO shall develop and maintain Purchasing and Spending Standards related to the vendor and/or goods solicitations, sole source justifications, the use and issuance of Purchasing Cards (P-Cards), disposal of property, and general spending under the delegated authority including for employee travel and training, meetings, meals, operations, equipment and
workforce development.
• The CEO may delegate their authority under this policy and shall document any such delegations in Purchasing Standards.
• The Board shall adopt Energy Risk Management Policies which include a delegation of authority to the CEO for contracts for energy and related procurement of less than five years in term. All energy related procurement in excess of five years or more, requires Board approval.
• The CEO may authorize staff to make payments utilizing any payment method they deem appropriate. However, all automated clearinghouse (ACH) payments and wire transfers must be approved by the Chief Financial Officer.
IV. Policy Compliance
A. Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
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B. Cadence for Review
• This Policy will be reviewed at least every five (5) years. • Changes to this policy will be reviewed by the Finance and Administration Committee before being presented to the Board.
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Finance Policy 08: InvestmentsINVESTMENTS POLICY
1. Policy
Silicon Valley Clean Energy (“SVCE”) shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of Safety, Liquidity and Return on investment.
2. Scope
This investment policy applies to all investment activities and financial assets of SVCE.
3. Objective
The primary objectives, in priority order, of the investment activities of SVCE shall be:
a. With respect to all investments:
i. To be in compliance with all Federal, State and local laws as well as all SVCE policies and procedures.
ii. All investments of SVCE shall be undertaken in a manner which seeks the preservation of principal.
iii. To remain sufficiently liquid to enable SVCE to meet all operating requirements which might be reasonably
anticipated.
iv. To maximize return consistent with risk limitations identified herein and prudent investment principles.
b. With respect to short-term cCash mManagement objectives:
i. To accelerate receipt of all funds due to SVCE.
ii. To accurately monitor and forecast expenditures and revenues, thus enabling SVCE to invest funds to the fullest extent possible.
iii. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout
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budgetary and economic cycles, commensurate with the
investment risk constraints and the cash flow needs.
4. Standard of Care
SVCE will manage funds in accordance with the Prudent Investor Standard pursuant to California Government Code 53600.3.1. The “prudent investor” standard shall be applied in the context of managing the overall portfolio. Persons authorized to make investment decisions on behalf of SVCE are trustees and therefore fiduciaries subject to the prudent investor standard which states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency”.
5. Delegation of Authority
The following individuals are authorized to sign investment documents and/or execute cash transfers and make investments of SVCE’s funds:
a. Chief Executive Officer, or his/hertheir designee
a.b.Chief Financial Officer, or his/hertheir designee
b. Director of Administration and Finance
SVCE may also delegate investment decision making and execution authority to an investment advisor. The advisor shall follow this Investment Policy and such other written instructions as are provided.
Investment advisor’s must be approved by the SVCE Board prior to engaging with SVCE.
6. Ethics and Conflicts of Interest
The authorized employees who are responsible for the investment of SVCE funds shall refrain from personal business activity that could conflict with the proper execution of SVCE’s investment program, or Item 6
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which could impair the ability to make impartial investment decisions.
Pursuant to SVCE’s Conflict of Interest Code, employees shall disclose any financial interests and investment holdings that could affect the performance of SVCE’s portfolio or the individual’s judgement or decisions regarding SVCE’s portfolio.
7. Authorized Financial Dealers and Institutions
The Director of Administration and Finance will maintain a list of approved financial institutions authorized to provide investment services to SVCE. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). A determination should be made to ensure that all approved broker/dealer firms, and individuals covering SVCE, are reputable and trustworthy. In addition, the broker/dealer firms should have the ability to meet all of their financial obligations in dealing with SVCE. The firms, and individuals covering SVCE, should be knowledgeable and experienced in Public Agency investing and the investment products involved. No public deposit shall be made except in a qualified public depository as established by the established state laws. All financial institutions and broker/dealers who desire to conduct investment transactions with SVCE must supply the Director of Administration and Finance with the following: audited financial statements, proof of NASD certification, trading resolution, proof of State of California registration, completed broker/dealer questionnaire, certification of having read the SVCE’s investment policy and depository contracts.
An annual review of the financial condition and registrations of qualified bidders will be conducted by the Director of Administration and Finance.
A current audited financial statement is required to be on file for each financial institution and broker/dealer in which SVCE invests.
If SVCE utilizes an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of SVCE.
8.7. Socially Responsible Investments
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SVCE’s investment portfolio shall not include investments in companies in the industries or subindustries of fFossil fFuel eExtraction, rRefining, and/or dDistribution. SVCE’s investment advisor shall provide SVCE information on their screening process.
9. Authorized and Suitable Investments
SVCE is authorized by California Government Code Section 53600 et seq. to invest in the types of securities listed below. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.
Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Administration and Finance will perform a timely review and decide whether to sell or hold the investment.
U.S. Treasury Obligations; United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
U.S. Agency Obligations; Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government- sponsored enterprises.
Municipal Obligations; Registered state warrants or treasury notes or bonds of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of California.
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
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Bonds, notes, warrants or other evidence of indebtedness of a local agency within California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
Bonds issued by SVCE, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by SVCE or by a department, board, agency, or authority of SVCE.
SVCE is prohibited from investing in any debt issued by member agencies of SVCE who are parties to the SVCE Joint Powers Agreement.
Deposits at Bank(s); FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, time certificates of deposits (“TCDs”) and other types of bank deposits in financial institutions located in California. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. To be eligible to receive SVCE’s deposits, the financial institution must have received a minimum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. Bank deposits are required to be collateralized as specified under Government Code Section 53630 et seq. The Director of Administration and Finance, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. SVCE shall have a signed agreement with any depository accepting SVCE’s funds per Government Code Section 53649. The maturity of TCDs may not exceed 5 years in maturity. There is no limit on the percentage of the portfolio that may be invested in bank deposits. However, a maximum of 50 percent of the portfolio may be invested in TCDs.
Banks eligible to receive deposits will be federally or state chartered and will conform to Government Code 53635.2.
Placement Service Deposits. Bank deposits placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States. The full amount of the principal and the interest that may be accrued during the maximum Item 6
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term of each deposit shall at all times be insured by federal deposit insurance. Placement Deposits shall meet all of the requirements of Government Code Section 53601.8. Purchases of Placement Service CDs may not exceed 50% of SVCE’s investment portfolio.
Local Agency Investment Fund (LAIF); Funds may be invested in the Local Agency Investment Fund. The LAIF was established by the California State Treasurer for the benefit of local agencies.
Commercial Paper; Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars
($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program wide credit
enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.
Eligible commercial paper shall have a maximum maturity of 270 days or less. Purchases of eligible commercial paper shall not exceed 40% of SVCE’s funds.
Medium Term Notes; Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for Item 6
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investment under this subdivision shall be rated in a rating category of “A” or better by a nationally recognized statistical rating organization (NRSRO). Purchases of medium-term notes shall not exceed 30% of SVCE’s funds.
Negotiable Certificates of Deposits; Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the California State Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposits shall not exceed 30% of the SVCE’s funds.
Mortgage Pass-Through and Asset-Backed Securities; A mortgage pass-through security, collateralized mortgage obligation, mortgaged backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate or consumer receivable backed bond. For Securities securities eligible for investment under this subdivision not issued or guaranteed by the United States, a federal agency, or a United States government-sponsored enterprise, the following limitations apply:
The security shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum
remaining maturity of five years or less.
(1) Purchase of securities authorized by this subdivision shall not exceed 20% of SVCE’s funds.
Supranational Obligations; United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated in a rating category of "AA" or better by an NRSRO and shall not exceed 30% of SVCE’s funds.
Item 6
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Joint Power Authority Pool; Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive, of Government Code 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive, of Government Code 53601.
3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
Money Market Funds; Shares of beneficial interest issued by diversified management companies that are Money Market Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. These funds must either have attained the highest rating/ranking by at least two NRSROs or have retained an investment advisor registered with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
Investments in this category will not exceed 20% of SVCE’s funds and no more than 10% may be invested in any one money market fund.
10. Hedging Program
Staff may examine and recommend to the Board an investment strategy that is consistent with this policy and which will hedge against revenue loss due to high PCIA or increased prices of natural gas commodity.
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11. Reporting Requirements
The Director of Administration and Finance shall be responsible for preparing a monthly report of transactions for the Board of Directors, as required by California Government Code 53607.
The Director of Administration and Finance may also prepare an investment report four times a year and the report shall include:
a. Type of Investment
b. Institution of Purchase
c. Date of purchase and maturity
d. Par and dollar amounts invested
e. Current market value
f. Interest rate
g. Target benchmark
h. State compliance of the portfolio in accordance with the Policy
12. Investment Pools/Mutual Funds
A thorough investigation of the pool/fund is required prior to investing, and on a regular basis. Best efforts will be made to acquire the following information:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
2. A description of interest calculations and how it is distributed, and how gains and losses are treated.
3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
5. A schedule for receiving statements and portfolio listings.
6. Are reserves, retained earnings, etc. utilized by the pool/fund?
7. A fee schedule, and when and how is it assessed.
8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
13. Collateralization
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Collateralization will be required on certificates of deposit. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value for Certificate of Deposits.
Collateral will always be held by an independent third party with whom SVCE has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
14. Safekeeping and Custody
All security transactions, entered into by SVCE shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian and evidenced by safekeeping receipts.
15.8. Diversification
SVCE will diversify its investments by security type and institution. With the exception of U.S. Treasury securities, federal agencies, and authorized pools, no more than 5% of SVCE’s total investment portfolio will be invested in a single security type or with a single financial institution
16. Maximum Maturities
To the extent possible, SVCE will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, SVCE will not directly invest in securities maturing more than 5 years from the date of purchase unless the Board of Directors has provided approval at least three months prior to the investment. For purposes of compliance with this section, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. Reserve funds may be invested in securities exceeding 5 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.
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17. Internal Controls
The Director of Administration and Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of SVCE are protected from loss, theft, fraud or misuse.
Accordingly, the Director of Administration and Finance shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.
18. Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.
SVCE shall establish an appropriate performance benchmark and compare the total return of its portfolio to the total return of the benchmark.
19.9. Additional Investment StandardsAnnual Review
Staff will develop additional standards to implement aspects of this policy. These standards shall address, but are not limited to, the following subjects:
1. Authorized Financial Dealers and Institutions
2. Authorized and Suitable Investments
3. A Hedging Program
4. Reporting Requirements
5. Investment Pools/Mutual Funds
6. Collateralization
7. Safekeeping and Custody
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Category: FINANCE
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8. Maximum Maturities
9. Performance StandardsThe Investment Policy will be reviewed annually. Any changes to the Investment Policy will be submitted to the Board of Directors for approval.
I. Policy Compliance
Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel.
Cadence for Review
• This Policy will be reviewed at least every five (5) years.
Item 6
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Investments Policy - Redline
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