• Subtitle
New SV Clean Energy
PowerPoint Template
Item 3
PRESENTATION
Power Purchase
Agreement Project
Selection Policy
April 9, 2025
SILICON VALLEY
CLEAN ENERGY
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Item 3
PRESENTATION
Current Practice and Power Purchase
Agreement (PRA) Project Selection Policy
Current labor provisions -require prevailing wage, which can be satisfied upon execution of a Project Labor
Agreement.
PPA Project Selection Policy guides evaluation of PPA
proposals through a list of preferences.
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Item 3
PRESENTATION
Proposed PPA Project Selection Policy
Key elements
Maximize regulatory and market value for best fit and
value while balancing risk mitigation and reliability goals.
Workforce Standards
Environmental Stewardship
Technology Diversification
Location
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Item 3
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Communications with Stakeholders
Stakeholder groups included:
Working Partnerships USA
South Bay Labor Council
IBEW 332
Santa Clara and San Benito Building Trades Council
CCA Workforce and Environmental JusticeAlliance
SF Electrical Construction Industry
Center for Sustainable Neighborhoods
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Item 3
PRESENTATION
Changes as result of stakeholder feedback
Partial list
Workforce Standards: Project Labor Agreements as highest preference
Environmental Stewardship: Preference for projects on
previously disturbed/urban land
Community Engagement: Developers that engage the community CC Power: Will use policy to determine whether to participate in CC Power projects
Reporting:Added annual supplier diversity reporting
Board Direction: GHG emissions evaluation
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Additional changes to the proposed Policy.
Local Hire: Research appropriate target goal
Executive Committee Direction
Workforce Pipeline Programs Hire: Research appropriate target goal
Apprentices:Add to medium priority preference
6 Item 3
PRESENTATION
Q) Recommended Action
Staff requests the Board of Directors adopt the Power
PurchaseAgreement Project Selection Policy.
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Selecting Organizations &
Local Programs for the
Hanford Mitigation Fund
Pamela Leonard, Deputy Director of Marketing &
Communications
Juliette Pascual, Community Outreach Specialist
April 9, 2025
Item 4
PRESENTATION
2 Overview
• Review Hanford Mitigation Fund goals and guidelines
• Overview of local organizations and priorities
• Discuss recommended projects to fund
• Next steps
Item 4
PRESENTATION
Proposal
Delegate Authority to the CEO to Execute Contracts to Disburse up to $1,500,000 from the Hanford Hybrid Plant Emissions Mitigation Fund as follows:
1. Kings Community Action Organization up to $300,000 for weatherization measures; and
2. Self-Help Enterprises up to $1,200,000 for electrification initiatives.
Item 4
PRESENTATION
4 Background
The Board approved
Resolution 2024-09 in
May 2024
establishing the
Hanford Mitigation
Fund Guidelines.
• Establishing guidelines and the fund were part of the 12- year power purchase agreement for energy and reliability products from the Hanford Hybrid Natural Gas Power
Plant and Battery Energy Storage System.
• Funds to be used for programs and/or projects to help mitigate emissions associated with energy produced by
the project.
• SVCE is proactive about ensuring its portfolio
management activities leave a net positive impact on
communities.
Item 4
PRESENTATION
5 About the Hanford Hybrid Plant
• The Hanford Hybrid Plant is a hybrid natural gas peaker power plant and battery energy storage system that SVCE contracted with to ensure that SVCE can meet its Resource Adequacy (RA) program obligations.
Item 4
PRESENTATION
Emissions Reduction
Battery
Storage
131.4 MWs/131.4 MWhs
Will shift energy to when
it is needed once per day
Colocated: Will economically
displace peaker energy
with grid charged energy
Peaking
Gas Unit Reliability
99.4 MWs
Primarily run for
grid reliability
Quicker startup - can
• generate within
10 minutes of being idle
6 More on the Hanford Hybrid Plant’s Location
• Hanford is located Kings County,
which is in the San Joaquin Valley
• Kings County population in 2020
was 152,486
• Median household income in 2023
was $66,428
• Majority of county has designated
disadvantaged communities as
defined by the 2022 version of
CalEPA’s CalEnviroScreen 4.0
Source for population and income data: U.S. Census Bureau and CalEnviroScreen 4.0
Item 4
PRESENTATION
7 Approved Hanford Fund Guidelines
Abbreviated
1 Establish the Hanford Hybrid Plant Emissions Mitigation Fund (“Hanford Fund”). 2 The Hanford Fund goal is to fund programs for low-income and disadvantaged communities to help reduce emissions from greenhouse gases through electrification activities in Kings County. 3 Staff shall seek approval for a one-time funding allocation of $750,000 to $1.8 million– for the entire duration of the Hanford contract (12 years).
4 Conduct a stakeholder engagement process to receive feedback directly from Kings County community members about the types of emission reduction programs most beneficial to local residents. 5 Staff shall use the feedback to determine the best course of action for spending funds. 6 Funds shall be used to pay for programs to help reduce emissions from greenhouse gases through electrification activities in disadvantaged or low-income communities in Kings County. 7 One year after disbursement from the fund, staff must report on progress to the Board, and annually thereafter until funds are completely spent.
8 All funds in the Hanford Fund must be disbursed by June 1, 2036.
Item 4
PRESENTATION
Staff reached out to six organizations and met
with four.
• Interviews focused on understanding local priorities and learning about existing energy-related programs.
• Kings Community Action Organization – local community services • Self-Help Enterprises – housing-focused nonprofit serving San Joaquin Valley
• California Health Collaborative – statewide nonprofit with Kings County public health initiatives
• Central Valley Community Fund – the community foundation serving San Joaquin Valley
Item 4
PRESENTATION
9 SVCE and Local Priorities
SVCE Fund Priorities
Support low-income and
disadvantaged communities
Electrification
Reduce GHGs
Stakeholder-driven programs
Kings County Priorities*
Utilities assistance
Food insecurity
Affordable housing
Home repairs
*Data from Jan. 2025 Kings Partnership Got Needs survey Item 4
PRESENTATION
10 Staff Recommendation
Distribute Hanford Fund to two organizations:
1. Kings Community Action Organization – weatherization
2. Self-Help Enterprises – electrification initiatives
Item 4
PRESENTATION
Kings Community Action Organization
(KCAO)
• KCAO is an anti-poverty service
organization with a wide array of
different services for income-qualified customers
• Their goal is to help individuals
and families achieve self-sufficiency through their programs Item 4
PRESENTATION
KCAO
ACTION ORGA
KCAO Project Proposal
Weatherization Program
• Existing efforts to lower customer bills by providing energy efficiency education and upgrades
• In 2024, 81 households served, $5,633.27 average cost per home • Staff proposes providing KCAO with $300,000 over two years to increase reach of the weatherization program.
• Benefits: Energy efficiency leads to lower bills through reduced energy demand, and increased comfort.
Item 4
PRESENTATION
13 Self-Help Enterprises (SHE)
• Self-Help Enterprises – community development
organization serving nine counties whose mission is to
work with low-income families to build and sustain
healthy homes and communities.
• Relevant programs/experience:
• Sustainable Energy Solutions team – focuses on
affordable energy, EV adoption, and community
engagement.
• Outreach implementation partner for CPUC-funded
PG&E electrification pilot.
Item 4
PRESENTATION
0»
14 SHE Project Proposal
Community Outreach, Electrification Readiness and Electrification Hub Three proposed programs:
1. Community Energy Navigators
2. Lincoln Plaza Affordable Housing Electrification Readiness in Hanford, CA
3. Electrification Hub & Education Program at Lakeview Terrace in Corcoran, CA (Kings County)
• Proposal is for a five-year engagement.
• Benefits: SHE can learn more about outreach approaches to enable electrification adoption, particularly at low-income housing developments.
Focusing on long-term use and maintenance to reduce bills is necessary; they can use these learnings for the other counties they serve.
Item 4
PRESENTATION
15 SHE Project Details
Community Energy
Navigators (CENs)
Lincoln Plaza
Electrification Readiness
Lakeview Terrace
Electrification Hub
• Employs local people to help
enroll residents in energy
efficiency programs and
educate the broader
community on energy
incentives, EVs and use of
electric tech.
• Benefit: Learn more about
how CENs can help reach low-income customers to
participate in energy programs
and offer long-term
electrification education.
• Electrification of the
community building at an
affordable housing community
in Hanford.
• Benefit: Utilize community
building as an education
center and location for CENs
to conduct workshops and
community education.
• Planned affordable housing
development in Corcoran;
funding to be used for
electrification and smart
technologies.
• Benefit: Education center to
serve as central community
space to educate low-income
residents and the
surrounding community
about electrification through
events and workshops.
Total project + admin costs: $1,146,606 over 5 years
(includes $69,956 for contract admin)
Item 4
PRESENTATION
16 Next Steps
• Seek board approval to delegate authority for CEO to execute contracts with the two organizations.
• Staff will begin the contracting process with selected organizations, this includes developing reporting and evaluation criteria.
• Organizations will be invited to attend the Hanford Hybrid Plant ribbon cutting ceremony being held on April 17.
• Staff will provide the board with updates on an annual basis, as required by the Hanford Fund Guidelines.
Item 4
PRESENTATION
Conclusion
• The two local organizations have a strong track record of delivering programs and are trusted in Kings County communities.
• These are complementary programs – KCAO for weatherization and SHE for electrification outreach and projects in affordable housing communities. • SVCE currently offers similar efficiency programs (e.g. DIY energy savings toolkits and in home upgrade programs).
• SVCE can also benefit from the outreach learnings from SHE for SVCE income-qualified electrification programs.
• Total contracts for both organizations will not exceed the total $1.8M reserved in the Hanford Fund, reserving opportunities for future partnerships.
Item 4
PRESENTATION
18 Questions?
Item 4
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Appendix
19 Item 4
PRESENTATION
20 SHE Project Funding Breakdown
Community Energy
Navigators (CEN)
Lincoln Plaza
Electrification Readiness
Lakeview Terrace
Electrification Hub
• Budget is over 5 years
• $260,000 – two part-time CENs $156,000
for program
administration,
oversight and training
of CENs
• $22,000 – Materials
and mileage for
events
• Total: $438,000
• Project timeline is 1 year
• $15,000 – Engineering
assessment
• $210,650 – Capital
project costs
• $18,000 Project
management
• Total: $243,650
• Budget is over 5 years
• $30,000 – Project
Design
• $360,000 - Capital
project costs (electric
technologies)
• $5,000 – Educational
signage
• Total: $395,000
Total project + admin costs: $1,146,606
(includes $69,956 for contract admin, not reflected below) Item 4
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
April 09, 2025
SILICON VALLEY
CLEAN ENERGY
Informational Briefing
Regionalization
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Item 5
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Agenda
What is regionalization?
Why does this matter to
SVCE?
What is the value?
What is the problem?
What is SB540?
What are the next steps?
• This market allows for organized
transfer of power between
balancing authorities which
enables enhanced resource
sharing.
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Item 5
PRESENTATION
CD What is Regionalization?
Regionalization is not a new topic. In 2014 CAISO launched the Western Energy Imbalance Market (WEIM), a real-time only market.
WEIM has been incredibly
successful
Since the end of 2014 EIM has
saved its participants just over $5
billion by optimizing network flows
across the west.
Powerex
Avista BHE Montana
Energy
PacifiCorp BANCS
Idaho
Power
Black Hills
Energy
NV
Energy
Puget Sound
Energy
Seattle
City Light
Tacoma
Power
Avangrid
Portland
General
Electric
Bonneville
Power
Administration
Turlock
Irrigatior
District
ISO
Los Angeles/
Dept, of
Water & Power
WAPA Desert
Southwest |
-Salt River
Project
Public Service
Company of
New Mexico
Tucson-Electric
Power El Paso
Electric
Active participant
Planned WEIAA entry 2026
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Item 5
PRESENTATION
SVCE Operates as a Load Serving Entity in
CAISO marketplace
CAISO is a Balancing
Authority(BA)
Not all of California is a part
of CAISO
Not all of CAISO is in
California
CAISO is the largest BA in
the West
As a Load Serving Entity
SVCE bids its load into
CAISO
As a PPA holder SVCEs
generation is bid into
CAISOs market
SVCE cannot leave CAISO
SVCE’s future is tied with
PG&E and its
transmission and
distribution services
Since CAISO is PG&Es
host BA SVCE can not
leave
Item 5
PRESENTATION
Further Regionalization has tremendous value
Lower costs
due to More
Efficient
Dispatch of
Generating
Resources
Reduced
Curtailment
of
Renewable
Resources
Increased
Supply
Reliability
Reduced
Greenhouse
Gas
Emissions
Reduced
Gas-Fired
Generation
Operation
Economic benefit of up to $790
million annually to California
consumers
25 GW of
emergency
supply cushion
11.2% reduction
in CAGHG
31% reduction
in CA gas-fired
generation
From CaICCA’s Community Education Webinar SB540 5
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Item 5
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There remains a problem
Governance remains the pre-eminent issue
CAISOs board is appointed by the California Governor
Other Western States are reluctant to join a day-ahead market that has this Governance structure
State legislature has tried to change this structure before and it has failed
There is a new approach that piecemeals functions so that more California advocates can be supportive
6 Item 5
PRESENTATION
CD West Wide Pathways
Multi Step process where a new Regional Organization (RO) is created, and functions are moved from CAISO to the new RO.
Regional Coordination
Key Building Blocks
Traditional RTO/1SO Functions
Lately the regionalization discussion has centered around the expansion of the Energy Market via the Day-Ahead market.
CAISO initiative is called the Extended Day-Ahead Market (EDAM). 7 •
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Item 5
PRESENTATION
Pathways Legislation -SB 540 (Becker)
Multi-state stakeholder process
Would allow for many of the benefits of
regional energy markets
SB 540 allows creation of a new
governing body to oversee west-wide
regional energy markets
CAISO would retain all other traditional
activities
Supported by wide range of labor,
environmental, and business interests
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Item 5
PRESENTATION
CD Next steps
No action needed today.
SVCE will look to work through
political organizations to voice its
support of SB 540
SB 540 creates a way for CAISO
Governance of specific functions
to transition from CAISO to a
Regional Organization “RO.”
With SB540 the RO will be given
governance over the Day-Ahead
and Real-time markets
Expected timeline of activities:
Now through Sep '25: Provide education
and necessary support to ensure SB 540
passes
Sep ’25: If Passed, SB 540 goes to the
Governor's desk
Oct ’25: SB 540 signed into law
9 Item 5
PRESENTATION
Appendix
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0 The CAISO aka "The Grid"
CAISO -California Independent System
Operator Corporation is a Balancing
Authority serving 80% of California.
BA or ISO -Balancing Authority
represents a geographic area responsible
for ensuring supply meets demand at all
times.
RO -Regional Operator serves a greater
region and spans multiple states
RTO -Regional Transmission Operator
DA Market-Day Ahead Market whereby
load and resources are matched 1-2 days
in advance
EIM -Energy Imbalance Market, whereby
load and resources are matched in real¬
time
EDAM -Extended Day Ahead Market for
market participants that are not a part of
the CAISO BA
Regionalization -
involves combining
with other BAs to form a larger Market
SVCE is a CAISO customer/participant
Load serving entity, schedule our load needs on an hourly basis "demand”
Resources/Supply are also scheduled hourly
Our load and resources are "pooled" with all other CAISO participants
CAISO facilitates many functions, including transmission, reliability (capacity) and energy markets.
CAISO ensures that the load and resources are matched in "real time" 24 hours per day 7 days a week.
CAISO operates an economic dispatch model to ensure most economic resources are dispatched based on location.
CAISO is responsible for "curtailing" resources if capacity exceeds demand
CAISO responsible for ensuring reliability is available at all times. 11 New SV Clean Energy
PowerPoint Template
• Subtitle
Item 6
PRESENTATION
Item 6
PRESENTATION
Objective
Provide the Board with a status update on agency electrification readiness planning
SILICON VALLEY
CLEAN ENERGY 2
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Item 6
PRESENTATION
Despite Legal Changes, Reach Codes Drove
Electrification, while Reducing Cost
A few of the benefits in our territory 2020-2023
>11,000 HPWHs
~$34M in on-bill savings
>$71M in avoided retrofit costs
Thousands of EV Chargers
Thousands of induction cooktops
Item 6
PRESENTATION
SVCE and Member Agency Partnership
SVCE rebates and federal tax credits can reduce the financial cost of electrification. Local codes and permitting can increase adoption at the best time and with less friction.
SVCE is launching two complementary programs to provide our member agencies $4M in technical resources and grants to enable sensible local policies and smoother local permitting. ©
SILICON VALLEY
CLEAN ENERGY
Item 6
Each agency selects
PRESENTATION
from a menu of options to help their
community more easily make this transition.
There are three tiers of action.
Foundational Practices Advancing Practices Leading Practices Choose 3 Foundational + Choose 3 Advancing Advancing + Choose 4 Leading Distribute info about BAAQMD, incentives, etc.
with each permit
Train on avoiding unnecessary service upgrades Allow plumbers to perform minor electrical work to streamline HPWH installations per CSLB
Implement Permit Concierge Participate in meeting(s) on certified contractors network
BAAQMD ramp up (includes electrification
readiness) on remodels
Provide staff training on building electrification
technologies
Free permit pilot with outreach campaign Require disclosures about gas appliances at time of sale
Enhance pre-application support materials Insert comments in plans encouraging prewiring during other work
Implement certified contractors program
Incentive-based remodels for electrification
Adopt real-time permitting for HPWHs
Require heat pumps at time of AC install or
replacement
Member Agency Action Plan Status Actions Planned
Foundational Advancing Leading
Campbell Finaled 2 2 5
Cupertino Finaled 1 3 3
Gilroy Finaled 2 2 2
Los Altos Finaled 3 3 4
Los Altos Hills Finaled 2 2 4
Los Gatos Finaled 2 3 4
Milpitas Finaled 2 4 4
Monte Sereno Finaled 1 1 5
Morgan Hill Finaled 1 3 5
Mountain View Finaled 3 5 4
Saratoga Finaled 2 1 5
Sunnyvale Finaled 1 4 7
County of Santa Clara Finaled 3 3 6
Item 6
PRESENTATION
All 13 Jurisdictions Have a Final Action Plan
Item 6
PRESENTATION
Member agencies are leading the way!
1. Cupertino finalized energy performance reach code for new construction
2. Gilroy is implementing the permitting communication improvements
3. Santa Clara County has trainings scheduled for all planning and building staff 0 SILICON VALLEY
CLEAN ENERGY 7
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Item 6
PRESENTATION
Sensible Retrofit Policies Can Reduce Friction, Lower
Cost, and Transform the Market
Key 2025 Policy AC > HP Could Lead To:
15,000 new HPs 2026-2029
$120M saved in redundant equipment costs
>$54M in on-bill savings
Item 6
PRESENTATION
Your Efforts Matter
SVCE will continue to work with your staff to develop sensible actions and continue to pivot as circumstances evolve.
SILICON VALLEY
CLEAN ENERGY 9
Item 6
PRESENTATION
Thank you! M svcleanenergy.org
|^| [email protected]
SILICON VALLEY
CLEAN ENERGY 10
Item 6
PRESENTATION
Appendix
SILICON VALLEY
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Item 6
AB
PRESENTATION
306 (Schultz/Rivas) - State and local building codes
Imposes 6-year moratorium on state and local building codes for residential Limited exemptions for emergencies related to health and safety and hardening SVCE issued concerns letter with amendment suggestions:
1. Clarify that the state can adopt the 2025 State Building Code and local governments can adopt that code.
2. Limit the pause to only new construction; allow local governments to pursue existing building policies like ACs to heat pumps
Advocating on these amendments
SILICON VALLEY
CLEAN ENERGY 12
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Item 6
PRESENTATION
The Impact of Your Leadership - Assumptions
Sensible action now can make this transition easier and cheaper. For example, if every jurisdiction...
Adopted prewiring requirements it could lead to tens of thousands of electric-ready homes by 2030.
There are at least 5000 permits drawn per year in our service territory that could reasonably require pre-wiring. This could mean at least 25,000 electric-ready homes by 2030. Given the variety of ways these policies could be written, we are not stating a certain number, but rather an order of magnitude.
Required bi-directionalAC at the time of replacement, it could add "16,000 heat pumps by 2029 and save residents $ millions in redundant costs.
According to the market saturation study that SVCE conducted, there are "100,000 ducted AC systems in our territory and they last "20 years.Assuming an even annual turnover, that is "5 replacements per year and "20,000 by 2029 if policies went into effect in 2025.
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CLEAN ENERGY 13
Item 6
PRESENTATION
BAAQMD Update
1. BAAQMD will report to the Board in December on market readiness, including costs, technology, workforce, and tenant protections.
2. SVCE is coordinating the 7 Bay Area CCAs to develop scalable solutions that support our communities.
3. South CoastAir Quality Management District passed similar phase out rules, but starting with larger water heaters and including new construction.
4. CAAir Resources Board -the current proposal would make phaseout gas water heaters statewide starting in 2027.
SILICON VALLEY
CLEAN ENERGY 14
Item 6
PRESENTATION
SVCE is providing a comprehensive set of resources
to help each agency meet its goals.
Resources Available Permit
Modernization
Policy
Experimentation
1:1 consultation w/SVCE staff (Board member & agency
staff) X X
Available
to All
Tailored action plan for each jurisdiction
X X
Technical, legal, and staff support resources
X X
Access to national-level climate change trainings
X X
Available
to
Leadership
Stipend for part-time, one-year fellow
X X
Cohort
silico
Expanded consultant support to implement leading-edge
initiatives X X
VS7CLEAN ENERGY 15