• Subtitle
New SV Clean Energy
PowerPoint Template
Clean Pathways
Discussion
SVCE Board of Directors
October 8, 2025
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
What we will
discuss today
2 1. Clean Power Procurement
2. Challenges Facing SVCE
3. Future Reporting
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PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Section I:
Clean Power
Procurement
3 Item 3
PRESENTATION
The SVCE Board adopted Renewable Portfolio Standard
(RPS) and overall carbon-free position as follows:
1. Maintain 100% clean annually through 2030 with at
least 65% RPS
2. 75% RPS target for retail sales/ 100% clean target for 2030 to 2034
3. 100% RPS for retail sales and 100% clean target for
2035 to 2045
4. Allow a 10% margin of error in the event targets cannot be met. If expected margin of error exceeds 10% staff
will return to the Board for additional guidance.
5. Define clean energy resources to include RPS-eligible resources and carbon-free large hydroelectricity and
nuclear energy.
6. Include line losses as applicable
Recap
Nov 13, 2024
BOD Meeting
Item 4: Adopt
SVCE’s Long-term Clean
Targets
4 Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
SVCE’s Mission
Statement
Reduce dependence
on fossil fuels by
providing carbon
free, affordable and
reliable electricity
and innovative
programs for the
SVCE community
5 Affordable
Reliable Clean
Item 3
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
California’s
Clean Energy
Goals
SVCE’s procurement
targets are primarily
driven by regulatory
requirements and
Board goals
6 • 60% Renewable Energy by 2030
• 100% Carbon Free by 2045 SB100 • Interim targets of X% by 2035 and X% by 2040 • 65% of Renewable Energy must be from Long- SB350 Term Contracts (10+ years) • Mid-Term Reliability Procurement Order
• Established by the CPUC to focus on securing
sufficient online resources to meet expected
demand in the coming few years
MTR
• 100% Clean – annually, with line losses
• 75% Renewable by 2030
• 100% Renewable by 2035 (adopted late 2024)
SVCE
BOD
Item 3
PRESENTATION
M'SSILICON VALLEY <3/ CLEAN ENERGY
Long Term Power
Purchase Agreements • $3.8B+ in commitments • 24 PPAs signed • 21 new build projects • 970 MW of Renewable Power • 1,640 MWh of Battery Storage • 10 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
• Hanford BESS – August 2025
7 Item 3
PRESENTATION
/WSSILICON VALLEY
Vi/ CLEAN ENERGY
GEOTHERMAL
BATTERY STORAGE
8 SVCE has made excellent progress thus far in meeting
renewable goals: 75% in 2030 & 100% in 2035
Carbon-free
and short-term RPS
resources will
help meet
100% clean
targets
Load
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PRESENTATION
SVCE RPS Resources vs Load
6,000,000
4,000,000
.c
£
2,000,000
Resources
Contracts Under Negotiation
CPE
VAMO
Small Hydro
Wind
Solar
Geothermal
Total Load
-- Agency RPS Target
— SB100 Target
co r- oo
CM CM CM
o o o
CM CM CM
O> O t-CM CO CO
O O O
CM CM CM
CM CO
CO CO CO
o o o
CM CM CM
ID CD b-CO CO CO
O O O
CM CM CM
CDOO^-CMCO-M-lD
oooooooo
CMCMCMCMCMCMCMCM
9 SVCE is on track to meet SB100 and agency goals for
clean and RPS in the near term
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PRESENTATION
Clean Volumes (MWhs)
108%
3M 76%
1 V
2025 2026 2027 2028 2029 2030
Compliance Year
•
RPS Volumes GHG Free Volumes•SVCE RPS Position •SVCE Clean Position •SB100 Target•SVCE Clean Target 78%
74':
120%
100%
80%
60%
40%
20%
0%
Percent of Retail Load
Section II:
Challenges
Facing SVCE
10 Item 3
PRESENTATION
Headwinds
come from
many fronts
11 Clean,
Reliable,
Affordable
Portfolio
CPUC & CEC
•Procurement
requirement
uncertainty
•Load growth
uncertainty
Market
•Supply Chain
•Financial Viability
•"A deal isn't always
a deal"
Federal
Government
•Tariffs
•Permitting
•PTC/ITC elimination Local
Government
•Battery storage
moratoriums
•Permitting/zoning
CAISO
•Interconnection
timing
•Transmission
availability
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SILICON VALLEY <3/ CLEAN ENERGY
12 SVCE has seen increasing project costs
across solicitations
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PRESENTATION
SVCE’s portfolio
is heavily
dominated by
solar
13 Solar
71%
Wind
24%
Geothermal
5%
SVCE Planned Contracts Nameplate
MW % of Renewables in 2030
236 236 236 236 236 236 236 236 236 236
446
566
657
707 707 707 707 707 707 707
0 500
1000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
SVCE Planned Contracts Nameplate MW
Geothermal Wind Solar
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PRESENTATION
Curtailments of
solar has risen
dramatically in
recent years
Source 14
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PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Monthly solar and wind curtailments,California Indepenent System Operator (January 2015-December 2024)
thousand megawatthours
900
SVCE has faced
significant
pressures
bringing projects
online on time • Pandemic • Supply Chain • Tariffs • Tax Incentives • Interest Rates 15 0
300
600
2021 2022 2023 2024 2025 2026 2027 2029
Nameplate MW
Original Online Year
MW Capacity by Original Online Year
Delayed
On Time
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PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
The CAISO
Interconnection
queue is “the line”
resources get in to
connect to the grid
• CAISO studies new requests in
clusters to determine
necessary transmission
upgrades to support additional
capacity
• Cluster 14 and 15 significant
jump in requests highlighting
need for queue reform to avoid
development delays
16 Chart below depicts number of unique interconnection requests by cluster:
Source
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PRESENTATION
600
C15 Active
Projects
347 GW
/A'X SILICON VALLEY
CLEAN ENERGY
2023 Interconnection Queue
• Proposed long-term procurement framework. Overlaps the current Integrated Resource Planning (IRP), Renewable
Portfolio Standards (RPS) and Resource Adequacy (RA)
Programs.
• Successor to the current Mid-Term Reliability (MTR) procurement order
• Ongoing cycle of determining Reliability Procurement Need (RPN) and Reliability Procurement Requirement (RPR)
• Clean Energy Standard (CES) integration to ensure electric sector meets SB100 GHG reduction targets
SVCE is not
immune to
regulatory
uncertainty
CPUC’s Reliable and
Clean Power
Procurement
Program (RCPPP) &
Clean Energy
Standard (CES)
Source 17
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PRESENTATION
IRP Planning Track
Reliability
need &
resource
counting
GHG-reduction
need
Update baseline
based on
procurement
Inform Inputs &
Assumptions
Reliable & Clean Power
Procurement Program
SILICON VALLEY
Vi/ CLEAN ENERGY
Procurement
Orders*
(as needed)
Load growth
uncertainty, driven
by potential data
center demand, is
current industry hot
topic
IEPR forecast
shows 75% increase
in load between
2025 and 2040
18 2,000
4,000
6,000
8,000
SVCE Load Forecast Scenarios (GWh)
Basecase Low Load High Load
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SILICON VALLEY <3/ CLEAN ENERGY
Section III:
Future
Reporting
19 Item 3
PRESENTATION
1. How to incorporate and
inform the Board of the
expected clean position
and any expected
shortfall
2. Report on clean hourly
progress
Follow up from
Nov 13, 2024
BOD Meeting:
SVCE staff
providing the
Board an
update on
future reporting
20 Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
How to
incorporate and
inform the
Board of the
expected clean
position and
any expected
shortfall
21 • SVCE runs stochastic analysis of
the portfolio to simulate expected
performance in the future
• Currently weekly but moving to
daily
• SVCE will know well ahead of time
if on or off track
Background
• Annually Staff will provide a
detailed Clean Pathways Report to
the Board on progress toward
2030 and 2035 goals
• Continue to report near-term
progress as part of monthly CEO
Report
Proposal
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PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Report on clean
hourly progress
22 • SB 1158 requires LSEs to
report hourly portfolio results
to regulators starting 2028
Background
• As part of the Clean
Pathways Report, annually
Staff will provide a report to
the Board showing hourly
supply and demand for the
prior year
Proposal
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PRESENTATION
SILICON VALLEY
CLEAN ENERGY
23 Illustrative Example Reporting
Progress Toward 2030 and 2035 Goals
SVCE will return regularly with a chart like this including modeled uncertainty Item 3
PRESENTATION
SVCE RPS Resources vs Load
6,000,000
5,000,000
4,000,000
3,000,000
S
2,000,000
1,000,000
0 Resources
Contracts Under Negotiation
CPE
IVAMO
Small Hydro
Wind
Solar
Geothermal
Total Load
-- Agency RPS Target
-
SB100 Target
24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 73% 75% 75% 72% 68% 72% 74% 87% 93% 93% 95% 96% 96% 97% 94% 93% 82% 66% 65% 65% 65% 68% 71% 72% 2 75% 77% 77% 77% 73% 72% 76% 89% 93% 93% 95% 95% 97% 97% 96% 97% 93% 70% 67% 66% 66% 69% 72% 74% 3 91% 91% 91% 91% 87% 80% 93% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 83% 74% 75% 81% 87% 90% 90% 4 92% 94% 96% 95% 92% 90% 99% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 92% 82% 83% 89% 91% 91% 92% 5 95% 95% 96% 95% 93% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 96% 87% 87% 92% 95% 95% 95% 6 90% 93% 94% 93% 90% 97% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 87% 86% 90% 90% 90% 90% 7 74% 77% 79% 78% 77% 84% 94% 99% 100% 100% 100% 100% 100% 100% 100% 99% 97% 89% 79% 79% 80% 76% 72% 74% 8 66% 69% 71% 69% 66% 76% 88% 93% 97% 98% 99% 99% 99% 98% 98% 96% 92% 79% 73% 74% 72% 66% 65% 66% 9 63% 66% 66% 65% 62% 66% 83% 92% 98% 100% 100% 99% 100% 99% 98% 95% 85% 73% 72% 72% 69% 66% 66% 66% 10 79% 81% 82% 81% 77% 74% 90% 94% 99% 100% 100% 100% 100% 100% 100% 99% 82% 70% 69% 68% 70% 72% 74% 77% 11 67% 70% 74% 73% 74% 73% 80% 94% 98% 100% 100% 100% 100% 100% 99% 92% 65% 64% 64% 64% 64% 65% 66% 68% 12 64% 65% 66% 65% 66% 67% 69% 82% 82% 89% 92% 93% 93% 93% 91% 81% 66% 63% 62% 61% 62% 62% 63% 64% Illustrative Example Reporting
Hourly Clean Progress
Average hourly clean supply by month
As part of the Board-approved PPA Selection Standard, staff must also show the impact on hourly clean position when recommending approval of new PPAs. Similar reporting will also be provided along with those recommendations.
Item 3
PRESENTATION
Recap
25 • SVCE has made significant progress
toward Board directed goals
Clean Power
Procurement
• Macroeconomic, regulatory and cost
uncertainty has put pressure on ability to
achieve mission: clean, reliable, affordable
Challenges
Facing
SVCE
• Annual Clean Pathways Report will detail
SVCE’s progress in meeting future goals
and past hourly performance
• Monthly CEO Report will highlight near-term progress
Future
Reporting
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M'SSILICON VALLEY <3/ CLEAN ENERGY
Title of the Page
Thank you
Item 3
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
State Legislative Update
Bena Chang
October 8, 2025
Item 4
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
• AB 825 (Petrie-Norris): Regional
Energy Markets
• SB 254 (Becker): Energy
Affordability Omnibus
• AB 1207 (Irwin) and SB 840
(Limon): Cap and Invest
Significant
package of
energy/climate
bills passed at
end of session
2 Item 4
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
3 AB 825 (Petrie-Norris)
Regional Energy Markets
What the bill does Impact on SVCE and customers
Allows creation of a West-wide governing body
to oversee two regional energy markets.
CEC study shows potential ratepayer savings of
up to $1 billion annually.
Item 4
PRESENTATION
4 SB 254 (Becker)
Energy Affordability Omnibus Bill
What the bill does Impact on SVCE and customers
• Replenishes wildfire insurance fund
• Does not allow rate-basing of $6 billion in
wildfire costs
• More oversight on wildfire mitigation
spending
• Public transmission financing
• CEQA streamlining
• Energization timelines audits and penalties
• Upward rate pressure from $9 billion to
replenish wildfire insurance fund (after
2036).
• Downward rate pressure from other
elements of bill.
Item 4
PRESENTATION
5 Executive Order to Implement SB 254
N-34-2 focuses on report to legislature and Governor, due April 1, 2026 State Agencies report to include:
• Alternative risk socialization structures
• Insurance changes: hardening measures, limits on public entity claims
• New wildfire mitigation technologies and solutions
• New wildfire risk reduction programs: state/local event response, home fire risk reduction standards, vegetation management, community-wide wildfire hardening,
• Special assessments for infrastructure and emergency response • Improved land use planning
Item 4
PRESENTATION
6 Cap and Invest
AB 1207 (Irwin): Reauthorizes Cap and Trade program
What the bill does Impact on SVCE and customers
• Renames “Cap and Trade” to “Cap and
Invest.”
• Electricity climate credits – 4 times a year
• Starts transition from gas to electricity
climate credits.
• Provides market certainty for program
• Redirects climate credits to highest bill
months
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PRESENTATION
7 Cap and Invest
SB 840 (Limon): Cap and Trade program allocations
What the bill does Impact on SVCE and customers
Tier 1
• CalFire
• Sales tax exemption for manufacturing
• Legislative Counsel Climate Bureau
Tier 2
• $1 billion High Speed Rail
• $1 billion legislative discretionary fund
Tier 3
• $800M Affordable Housing Sustainable Communities
• $400M Transit and Intercity Rail Capital Program
• $250M AB 617 Air District Projects
• $200M Low Carbon Transit Operations
• $200M Dept. of Forestry and Fire Protection
• Funds programs member agencies
and transportation partner
agencies have used for housing
and transportation projects.
• Potential future funding for SVCE
priorities around electrifying
transportation and housing.
Item 4
PRESENTATION
1 New SV Clean Energy PowerPoint
Template
• Subtitle 2025 Local Agency Action
Planning
Resources to support the transition to
pollution -free buildings and transportation.
October 2025
Item 5
PRESENTATION
2 Provide the Board with a status update on agency electrification readiness planning
Objective
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3 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
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PRESENTATION
4 SVCE is launching two complementary programs to provide our member agencies $4M in technical resources and grants to enable sensible local policies and smoother local permitting.
SVCE and Member Agency Partnership
SVCE rebates and federal tax credits can reduce the financial cost of electrification. Local codes and permitting can increase adoption at the best time and with less friction. $4M
For sensible policies
and smooth
permitting
$3M
Permit Modernization
$1M
Policy
Experimentation
Item 5
PRESENTATION
5 Passage of AB130 limits the ability of local
jurisdictions to adopt reach codes September 2025
– December 2031.
There are some exceptions
• Only impacts residential - commercial reach codes
remain a go
• Carve out for jurisdictions where electrification
codes are linked to their general plan
requirements/goals - if general plan was adopted
before June 10, 2025.
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PRESENTATION
6 Mountain View adopted in August; Sunnyvale did
preliminary adoption in August; four others working to
adopt before December 1; two evaluating .
Jurisdiction Two -Way AC Flex Path Code
(electrify at remodel)
Electric Readiness
Code (prewire)
Campbell TBD Ø TBD
Cupertino Ø Ø Ø
Gilroy Ø Ø Ø
Los Altos October Ø October
Los Altos Hills November Ø November
Los Gatos October Ø October
Milpitas Ø Ø Ø
Monte Sereno TBD TBD TBD
Morgan Hill Ø Ø Ø
Mountain View September Ø September
Saratoga November Ø November
Sunnyvale (Round 2) October Ø October
County of Santa Clara Ø Ø Ø
Before Oct 1
Before Dec 1
Evaluating
No Go
All agencies are
also moving
forward to
increase training
and modernize
permitting.
Item 5
PRESENTATION
7 SVCE is here to support Board members and member
agency staff.
1. Staff in communication with all 13 jurisdictions
2. Available for Board 1:1s as needed
3. Troubleshoot and discuss options given new requirements
4. Technical resources, Special Counsel resources, communications resources Item 5
PRESENTATION
8 SVCE will continue to work with your staff to develop sensible actions and continue to pivot as circumstances evolve. We are working with each member jurisdiction to walk through options and create solutions given new requirements.
2025 is Different
Item 5
PRESENTATION
9 Thank you! svcleanenergy.org
[email protected]
Item 5
PRESENTATION
10 Appendix
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11 Each agency selects from a menu of options to help their community more easily make this transition .
There are three tiers of action.
Foundational Practices Advancing Practices Leading Practices Choose 3 Foundational + Choose 3 Advancing Advancing + Choose 4 Leading Distribute info about BAAQMD, incentives, etc.
with each permit
Train on avoiding unnecessary service
upgrades
Allow plumbers to perform minor electrical work
to streamline HPWH installations per CSLB
Implement Permit Concierge Participate in meeting(s) on certified contractors network
BAAQMD ramp up (includes electrification
readiness) on remodels
Provide staff training on building electrification
technologies
Free permit pilot with outreach campaign Require disclosures about gas appliances at time of sale
Enhance pre -application support materials Insert comments in plans encouraging prewiring during other work
Implement certified contractors program
Incentive -based remodels for electrification
Adopt real -time permitting for HPWHs
Require heat pumps at time of AC install or
replacement
Item 5
PRESENTATION
12 Resources Available Permit
Modernization
Policy
Experimentation
1:1 consultation w/SVCE staff (Board member & agency
staff) X X
Tailored action plan for each jurisdiction
X X
Technical, legal, and staff support resources
X X
Access to national -level climate change trainings
X X
Stipend for part -time, one -year fellow
X X
Expanded consultant support to implement leading -edge
initiatives X X
SVCE is providing a comprehensive set of resources
to help each agency meet its goals.
Available
to All
Available
to
Leadership
Cohort
Item 5
PRESENTATION
13 Sensible action now can make this transition easier and cheaper. For example, if every jurisdiction…
• Adopted prewiring requirements it could lead to tens of thousands of electric -ready homes by 2030 .
• There are at least 5000 permits drawn per year in our service territory that could reasonably require pre -wiring. This could mean at least 25,000 electric -ready homes by 2030. Given the variety of ways these policies could be written, we are not stating a certain number, but rather an order of magnitude.
• Required bi -directional AC at the time of replacement, it could add ~16,000 heat pumps by 2029 and save residents $ millions in redundant costs. • According to the market saturation study that SVCE conducted, there are ~100,000 ducted AC systems in our territory and they last ~20 years. Assuming an even annual turnover, that is ~5 replacements per year and ~20,000 by 2029 if policies went into effect in 2025.
Note: These are meant to be illustrative examplesAssumptions in the appendix The Impact of Your Leadership - Assumptions
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