Term: RLOC: Two (2) years from current 3/1/2022 expiration (est. 3/1/2024) Term Loan: Two (2) years from current 3/1/2022 maturity (est. 3/1/2024)
Letters of Credit: Letters of Credit issued under the RLOC will have a maximum term of one year from the date of issuance, with annual auto renewal options available. If the RLOC is terminated prior to the expiration date or upon RLOC expiration, Borrower will provide cash collateral equal to 110% of the face amount for any and all outstanding SBLCs.
Interest Rate: RLOC and outstanding SBLCs: Floating at the one (1) month U.S.
Treasury Bill Yield + 2.00%, subject to a 2.00% floor (unchanged).
As of close of business on 2/3/2022, the 1-month U.S. Treasury Bill Yield was 0.03%, indicating an all-in 2.03% rate.
Term Loan: Fixed at 3.57% for the loan term (unchanged).
Bank calculates interest on an actual/360 day basis.
Repayment: RLOC: Interest-only payments due monthly, with all outstanding principal and interest due on RLOC expiration.
Letters of Credit: In the event of a Letter of Credit draw by a beneficiary, Bank will disperse funds from the RLOC, and Borrower must repay the Bank in full within 3 days.
Term Loan: 24 equal monthly principal and interest payments, fully amortized over the Term Loan term. Any remaining principal and interest will be due on maturity.
Prepayment Premium: No prepayment premium for the RLOC, SBLCs, or Term Loan.
Loan Fee: 0.50% of the total RLOC commitment, payable upon loan closing.
Documentation Fee: $5,000, payable upon loan closing, provided that Borrower approves the use of Bank’s standard form documents.
Bank reserves the right to increase the Documentation Fee or engage outside legal counsel, at Borrower’s sole cost and expense, if Borrower requires extensive negotiation of Bank’s standard loan documents, or if Bank reasonably determines that the use of custom loan documents and/or outside legal counsel is appropriate in view of the nature and complexity of the legal and documentation issues involved.
Non-Utilization Fee: 0.10% of the average unused RLOC amount per annum, payable annually upon each anniversary of the RLOC.
146
Term Sheet
Letter of Credit Fees: Borrower shall pay to Lender fees upon the issuance, amendment, or any other activity with respect to any Letter of Credit (including the transfer or cancellation of any Letter of Credit), including an issuance fee based on the face amount thereof over the applicable expiration period, a documentation fee, and any reasonable and customary out-of-pocket costs and expenses incurred by Lender in connection with such activity. Borrower acknowledges and agrees that the fees will be determined by Lender at the time of issuance or other activity with respect to each Letter of Credit based on the then-current fee schedule of Lender and its correspondent banks, which are subject to change from time to time.
Costs & Expenses: Borrower to pay all out-of-pocket costs and expenses, such as third-party search and order fees and any applicable legal fees (collectively, the “Costs & Expenses”).
Needs List: In addition to the conditions set forth in this letter, additional conditions precedent to closing will be those which are usual and customary for transactions of this nature, including but not limited to Bank’s receipt, review and satisfaction with all documents, reports, leases, financial statements, guarantor information, and other information reasonably requested by Bank. Subsequent to Bank’s receipt of this signed term sheet, Bank will prepare a needs list summarizing such items.
Additional Requirements
Financial Covenants. Financial covenants and corresponding covenant limits will be mutually agreed upon by Borrower and Lender during underwriting, upon Lender’s receipt of Borrower’s finalized income, balance sheet, and cash flow projections for the coming fiscal years.
Existing financial covenants include a minimum Change in Net Position, minimum Adjusted Tangible Unrestricted Net Position, and maximum total Liabilities / Tangible Unrestricted Net Position.
Rate Covenant (NEW). Borrower shall collect rates and charges from rate payers for energy distribution sufficient to cover all power supply costs, operating expenses, and debt service each fiscal year.
Legal Opinion (EXISTING – Section 9.1(c)(iv)). Borrower’s counsel shall provide a legal opinion on the enforceability of the credit agreement and formation of Borrower in form and substance acceptable to Bank.
Debt Service Reserve Account (EXISTING – Section 7.1 and 10.3). Borrower shall ensure that the DSRA remains pledged and assigned to Lender as collateral, with a balance of not less than $1,100,000 at all times.
Deposit Account (EXISTING – Section 10.4). Borrower must maintain all of its deposit accounts exclusively with Bank, with automatic monthly loan payments deducted from the account. Failure to adhere to this requirement will result in a 2.00% increase to the Interest Rate so long as this covenant is not satisfied.
147
Term Sheet
Yolo County Debt Subordination. The $5,000,000 line of credit provided by Yolo County to Valley Clean Energy must be subordinated (in form and substance satisfactory to Lender) to Lender’s RLOC and Term Loan at all times.
No Additional Indebtedness (EXISTING – Section 10.19). Besides the Credit, the aforementioned Yolo County indebtedness, and obligations arising in the ordinary course of business which are not delinquent, Borrower shall not incur additional indebtedness in excess of $500,000.00 without the prior written consent of Bank.
30 Day Out of Debt (NEW). Borrower to maintain a zero balance on the RLOC for a period of at least thirty (30) consecutive days during each 12 month period of the Term. Insurance Coverage (EXISTING). Borrower will be required to maintain the following insurance, naming River City Bank as additional insured:
o Business property insurance for all inventory and equipment, in the minimum amount of the replacement value
o General liability insurance, in the minimum amount of $1,000,000 Ongoing Reporting. During the Term, Borrower will be required to provide:
o Borrower CPA Audited financial statements, inclusive of a balance sheet, year-to-date income statement, aged list of accounts receivables and accounts payable, annually. o Borrower company-prepared financial statements, inclusive of a balance sheet, year-to-date income statement, aged list of accounts receivables and accounts payable, monthly. o (NEW) - Borrower pro forma financial model for the coming fiscal year, inclusive of a balance sheet and income statement, and cash flow, due annually upon Lender’s request.
Bank reserves the right to terminate this proposal at any time and this proposal may not be transferred or assigned without prior written consent of Bank.
Please be advised that this letter does not constitute a binding commitment or impose any obligation on Bank, but only reflects proposed terms of a transaction which may become acceptable to the parties.
Notwithstanding any other language of agreement that may appear elsewhere in this nonbinding letter of intent, it is expressly understood and agreed that this letter does not and shall not constitute a binding agreement between the parties in any manner, except with respect to: Costs & Expenses. The undertakings and obligations of Bank with respect to the loan will be subject to, among other things: (i) credit analysis and approval in accordance with Bank’s underwriting standards; (ii) the preparation, execution and delivery of mutually acceptable loan documentation containing such terms and conditions as are customary for similar credit facilities; (iii) the accuracy of all representations made and information furnished by Borrower to Bank, and (iv) the absence of any information or other matter being disclosed after the date hereof that is inconsistent in a material and adverse manner with any information or other material disclosed to Bank.
Thank you for considering River City Bank for your financing needs. If you would like us to move forward on the basis proposed, please sign below, and submit this signed term sheet to Bank.
Sincerely,
Stephen Fleming Rosa Cucicea
President & CEO SVP & Clean Energy Division Manager
148
Term Sheet
ACKNOWLEDGED AND ACCEPTED BY
Borrower hereby acknowledges and agrees to the presented loan structure, including to any proposed joint borrowing and/or guaranteeing structure.
Valley Clean Energy Alliance
x
By: Mitch Sears Date
Its: Interim General Manager
149
VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2022-___
RESOLUTION OF THE BOARD OF DIRECTORS OF THE VALLEY CLEAN ENERGY ALLIANCE
AUTHORIZING THE EXTENSION AND EXPANSION OF ITS REVOLVING LINE OF CREDIT AND A
NEW TERM LOAN WITH RIVER CITY BANK
WHEREAS, Valley Clean Energy Alliance (“VCE”) was formed as a community choice aggregation agency (“CCA”) on November 16, 2016, under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Yolo, and the Cities of Davis and Woodland, to reduce greenhouse gas emissions, provide electricity, carry out programs to reduce energy consumption, develop local jobs in renewable energy, and promote energy security and rate stability in all of the member jurisdictions; WHEREAS, the City of Winters, located in Yolo County, was added as a member of VCE and a party to the VCE in December of 2019;
WHEREAS, pursuant to a Resolution adopted on May 10, 2018, the Board of Directors of VCE (the “Board”) approved the execution of a credit agreement and related documents thereto (collectively and as previously amended and extended, the “Credit Facility”) with River City Bank (“RCB”), pursuant to which RCB agreed to provide credit working capital to meet VCE’s liquidity needs and RCB also agreed to provide certain credit enhancements; WHEREAS, the Credit Facility currently has a limit of $5,000,000 available for cash advances and/or letters of credit and an additional $2,000,000 credit facility available for Letters of Credit, for a total maximum amount of $7,000,000;
WHEREAS, RCB is willing to further amend the Credit Facility to lend up to $11,000,000, with a $7,000,000 limit for cash advances, pursuant to an amendment (the “Amendment”) and related documents thereto to be prepared by RCB and to extend a term loan to VCE in an amount up to approximately $1,200,000 (the “Term Loan”), the terms of each of which are set forth in the proposed terms provided by RCB on file with the Board (collectively, the “Amendment Terms”);
WHEREAS, the good faith estimates required to be obtained and disclosed with respect to the Amendment Terms in accordance with Government Code Section 5852.1 are set forth in the report accompanying this Resolution; and
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NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Board of Directors (the “Board”) of the Valley Clean Energy Alliance (“VCE”) hereby approves the Interim General Manager and his designees as authorized representatives of VCE (each an “Authorized Representative” and collectively, the “Authorized Representatives”) in connection with the negotiation and execution of the Amendment to increase the amount of the commitment available under the Credit Facility as amended by the Amendment (the “Amended Revolving Credit Facility”), including such related amendments deemed necessary or advisable by the Authorized Representative executing the Amendment, and to execute documentation related to the proposed Term Loan (the “Term Loan Documents”), and any ancillary documents relating thereto.
Section 3. The Board hereby approves each Authorized Representative, acting singly, to execute and deliver the Amendment, the Term Loan Documents and any related ancillary documents necessary to implement the Amendment Terms and in such form and substance as may be approved by such Authorized Representative, in consultation with Special Counsel (as defined below) and General Counsel to VCE, as in the best interests of VCE, the execution thereof to be conclusive evidence of such approval.
Section 4. The Board hereby approves each Authorized Representative, acting singly, to borrow and authorize advances or the issuance of letters of credit from time to time under the Amended Revolving Credit Facility in such amounts as in their judgment should be borrowed and to provide security for the obligations of VCE under the Amended Revolving Credit Facility and the Term Loan Documents, including, without limitation, a pledge of the net revenues of VCE, and to execute and deliver any requests or other documents and agreements as such Authorized Representative may, in his or her discretion, deem reasonably necessary or proper in order to carry into effect the provisions of the Amended Revolving Credit Facility and the Term Loan Documents.
Section 5. The Board hereby affirms and ratifies the appointment of Nixon Peabody LLP to act as “Special Counsel” to VCE in connection with the negotiation and execution of the Amended Revolving Credit Facility, the Term Loan Documents and the ancillary documents.
Section 6. The Authorized Representatives, the Board Secretary, and the Board Chair and all other appropriate officials of the VCE are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution.
///
///
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Section 7. The Board hereby approves and ratifies all acts, transactions or agreements undertaken, prior to the adoption of these resolutions by any of the officers of VCE, or their designees, in its name and for its account in connection with the foregoing matters, are hereby ratified, confirmed and adopted by VCE.
Section 8. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance, held on the __ day of _____ 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Jesse Loren, VCE Chair
___________________________________
Alisa M. Lembke, VCE Board Secretary
Attachment:
1. RCB Term Sheet
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Item 17
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 17
To: Board of Directors
From: Mitch Sears, Interim General Manager
Rebecca Boyles, Director of Customer Care and Marketing Sierra Huffman, Program and Community Engagement Analyst Subject: Bill Protection in the Time-of-Use (TOU) Transition Date: March 10, 2022
______________________________________________________________________________
RECOMMENDATION
Approve and adopt Bill Protection Option 3, in which customers can call and request bill protection if they choose to remain on the Time of Use rate for a full 12 months.
BACKGROUND and ANALYSIS
Since April of 2021, VCE’s residential customers have been transitioning from flat, tiered rates to time-of-use (TOU) rates. TOU rates are designed to better reflect the wholesale energy market and grid conditions, and encourage customers to use electricity midday/overnight, when renewable/low-carbon energy is more abundant. VCE’s residential TOU transition began with NEM customers in March 2021, and the remainder of eligible customers (about 12,500 accounts) will be transitioned in April 2022.
Since nearly 20% of VCE’s residential customers will be moved to ETOU-C, VCE staff has analyzed the fiscal and customer impacts of providing bill protection for newly transitioning TOU customers. PG&E is required to provide automatic bill protection for customers that stay on the TOU rate for 12 months. CCAs are not required to participate in the TOU transition, nor provide bill protection, but most CCAs are participating and providing some type of bill protection.
Most residential customers will be minimally affected by the change to TOU- about 51% would pay slightly more, with most bill impacts in the $1-2/month range. Although the estimated customer impacts are limited, to enable a successful transition and ease any potential customer impacts, staff is recommending that VCE provide a measured bill protection program. Note:
Low-income CARE/FERA customers in hot climate zones (including Yolo County) will not be automatically transitioned.
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Item 17
2 Bill Protection Options
Costs vary depending on the approach to bill protection. Working with SMUD, staff has estimated the cost for 4 different options:
Bill Protection Option Estimated Cost Notes
1. Standardized $25
credit
Total: $300,000-$312,500 One-time $25 bill credit for all residential TOU customers that
stay on the rate for 12 months
2. Upon request by
customer – Bill
Calculation
• $15,000 for billing engine tool
• $85 per account calculation
• $12,000-$15,000 for bill
protection credit
• Total: $78,000-81,0001
Manual calculation in which
customers call in and are eligible
for a “backwards looking” bill
protection credit after 12 months
on the rate.
3. Upon request by
customer –
Standardized $25
credit
• $15,000 - $40,0002 One-time $25 bill credit for
residential TOU customers that opt
for bill protection and stay on the
rate for 12 months.
4. Automatic for all
eligible customers
• $22,500+ for billing engine tool
• $120,000-$150,000 for bill
protection credit
• Total: $142,500-$172,5003
Tool estimate of $22,500 could
increase.
Staff recommends that VCE provide bill protection option 3, a standardized credit upon customer request. Recognizing that this approach trades a certain amount of precision in calculating bill impacts for simplicity, staff believes it provides an appropriate balance resulting in a measured approach to potential customer impacts while avoiding inefficient and burdensome program administration costs. This is the least-cost option that is also easiest to implement, and the call-in approach is similar to East Bay Community Energy’s approach in its residential TOU bill protection program. As part of TOU outreach efforts, VCE will include customer bill protection information on the website and social media if this item is approved.
This item was evaluated by the Community Advisory Committee (CAC) on February 24th, 2022, and the CAC also recommended adopting bill protection option 3.
Financial Impact
Estimate varies depending on option, from $0-$312,500. Should the Board recommend option 3, the estimated fiscal impact is a one-time $15k to $40k in CY 2023. TOU bill protection would end after the 12-month transition period – no associated costs going forward.
CONCLUSION
Staff is seeking approval on a bill protection approach from the Board of Directors. 1 Assuming that of 6,000 eligible customers, 10% request bill protection. The average credit would be $20-25. The high end of the range in total cost is unlikely as only 2-3% of customers are likely to call and request bill protection. 2 Assuming 10-20% of eligible customers call to request bill protection 3 Assuming $20-$25 credit for 6,000 eligible customers
154
Item 18
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 18
To: Community Advisory Committee
From: Rebecca Boyles, Director of Customer Care and Marketing Sierra Huffman, Program and Community Engagement Analyst Subject: Heat Pump Pilot Program
Date: March 10, 2022
______________________________________________________________________________
RECOMMENDATION
Approve Phase 1 of Valley Clean Energy’s Heat Pump Pilot Program.
BACKGROUND
Mid-2021, VCE began developing a Heat Pump Pilot Program within the context of a growing trend in home electrification programs available throughout the state. The shift in focus from traditional HVAC systems to heat pumps, alongside the availability of generous rebates for customers, motivated VCE to explore the most appropriate role its programs could fulfill. VCE is designing a program that complements existing rebates and incentives. Initial research and engagement identified a key unfulfilled need is providing Marketing, Education and Outreach (ME+O) to contractors, customers, and other key stakeholders such as realtors and HVAC manufacturers.
CAC Recommendation
Staff presented Phase 1 of the Heat Pump Pilot Program to the Community Advisory Committee (CAC) on February 24, 2022 and received constructive feedback. The CAC recommends that the Board approve Phase 1 of the pilot program if the program emphasizes fully electric heat pumps and dual fuel heat pumps equally.
ANALYSIS
Staff believes that focusing on ME+O for the initial phase of this pilot is the best way to provide value while learning more about the intricacies of the heat pump landscape. After the conclusion of the initial ME+O phase, staff (with the assistance of the CAC Programs Task Group, or PTG) will determine whether VCE can add value by designing and launching a complementary heat pump rebate pilot phase.
VCE’s heat pump pilot will cover a wide range of heat pump technologies, including heat pumps for space conditioning and water heating. A focus will be on encouraging the replacement of old, outdated, and inefficient heating, ventilation, and cooling (HVAC) systems with heat 155
Item 18
2 pumps, including the ability of these systems to respond to price signaling that VCE may send in the future. The program will also market the rebates that are available for home and duct insulation, as these are important factors to consider when making any HVAC improvements.
Existing State Rebate Programs
Staff found that although large rebates are available to customers for the installation of heat pumps, few contractors based in Yolo County are currently certified to provide them. VCE staff connected with the two current firms that were selected by the State to implement publicly funded energy efficiency rebate programs: (1) Franklin Energy, the implementers of the Comfortable Home Rebates (CHR) and (2) Energy Solutions, the managers of TECH Clean California (TECH), to facilitate working together to engage local contractors. This pilot may provide support to Yolo County-based contractors in becoming certified to provide rebates through both CHR and TECH. Staff may provide contractors with program application assistance, as well as provide program clarity by developing web materials, and hosting webinars/in-person meetings.
Staff is planning to engage customers by hosting webinars/in-person workshops and connecting with customers through collateral such as web materials, social media, and printed information.
Webinars/in-person workshops (similar to CoolDavis’ “Make a Plan for a Clean Energy Home” workshop in which VCE participated in Fall 2021) give customers the opportunity to connect with contractors and ask them questions, as well as cover topics on owning and operating a heat pump. Marketing collateral would explain the benefits of heat pumps such as lowering gas bills, reducing greenhouse gas emissions, and improved indoor air quality. Subjects such as duct installation, building envelope, and heat pump best practices could be addressed to minimize increases in a customer’s electricity bills associated with installation of heat pumps and boost customer satisfaction.
FINANCIAL IMPACT
Staff projects that this pilot program phase (Phase 1) could be efficiently run with a budget of $5,000. The funds would primarily go toward collateral development and printing, and potentially for consultant support to help with paperwork and application assistance.
CONCLUSION
Staff and the CAC recommend that the Board approve of Phase 1 of this pilot and return to the CAC and Board after the conclusion of Phase 1 with the program design for Phase 2. Phase 1 of the pilot will run until initial $5,000 funding is exhausted, or March 2023.
Attachment
1. VCE’s Heat Pump Pilot Program Design/Implementation Form 156
Rev. 11/5/21
Program Preliminary Design/Implementation Form
Program Concept: Heat Pump Pilot
Date: 03/10/22
Staff Resources and Support:
Assigned Program Managers: Rebecca Boyles, Sierra Huffman Programs Task Group Members: Marsha Baird, David Springer Consultant name (if applicable):
Scope:
Provide education and awareness of the available rebates through Comfortable Homes and TECH Clean California, while responding to community needs and identifying target strategies for potential rebates administered by VCE.
This is phase 1 of a multi-phase program, designed to lay the informational foundation for future building electrification efforts. Phase 1 will focus on marketing, outreach, and education (ME+O) for both contractors and customers. Secondary outreach will engage stakeholders such as city officials, local realtors, HVAC manufactures, county officials, mission-aligned organizations, and potential project partners.
Customer-facing ME+O will focus on getting customers up-to-date information on available rebates for replacing failing, failed, inefficient, or outdated heating, ventilation, and air conditioning (HVAC) systems with heat pumps (HP). This approach targets essential and immediate home improvements that can lead to more comprehensive electrification. A secondary focus will be on heat pumps for water heating.
Supplementary rebates will be included in ME+O efforts, especially those that support customer comfort and mitigate potential bill increases due to electrification of heating, as these are potential barriers for customers.
Contractor-facing ME+O is geared toward increasing local contractor participation in both Comfortable Homes and TECH rebate programs. The program will provide clarity on program eligibility, application processes, and required materials, as well as potentially assisting contractors with applications.
In March 2023, program success will be evaluated using the proposed goals and metrics. Program success, as well as feedback from CAC, the Board, community members, and contractors will be used to begin the design of phase 2.
Timing:
(Approximate; pending approval) Phase 1 would begin in March 2022. This first phase will continue until the budget is exhausted or the end of phase 1 in March 2023. 157
Rev. 11/5/21
Program Design Criteria Evaluation:
Criteria 1 Criteria 2 Criteria 3
Criteria Type Availability of
Funds Staff Time Strategic Plan Alignment
Reasoning
for Program
Score
Scored high.
Currently
available
rebates include
$750 -$850
from PG&E’s
Comfortable
Home Program
available which
can be stacked
with $2,250 -
$3,950 from
TECH Clean
California.
Scored high.
Program can
be initiated
by referring
applicants to
Franklin
Energy, who
manages the
Comfortable
Home
program for
PG&E and
Energy
Solutions
who
manages the
TECH Clean
California
rebates
program.
Scored medium to high on strategic plan alignment:
Reduces GHG Emissions
Dependent upon the chosen heat pump technology, there
can be near or total elimination of emissions from furnaces in homes that have central heating systems. Title 24
compliance software modeling results showed that dual fuel heat pumps can provide the same amount of emissions
reduction as full heat pump replacements when used
properly.
Customer Satisfaction
No adverse impact on comfort but may result in slightly higher heating bills for non-NEM customers. NEM customers with excess generation will have lower heating bills.
Addresses Environmental Justice
Small negative impact on low-income customers due to
higher utility costs (amount to be determined). Effects will be mitigated through education on heat pump best
practices, as well as home and duct insulation.
Regulatory & Legislative Goals Alignment
Highly aligned with state GHG reduction and electrification goals.
Strategic Partnerships
Several local contractors are participating in the rebate programs and more have expressed interest. Collaboration with Franklin Energy and Energy Solutions provides mutual benefits, as well as a marketing and outreach partnership with Cool Davis.
Program Metrics and Goals:
Metrics: Number of educational webinars held and the number of attendees. Number of VCE heat pump webpage visits and link click-throughs.
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Rev. 11/5/21
Goals: A total of 5 webinars in Phase 1, including contractor educational webinars/in-person meetings, customer educational webinars, and “ask a contractor” webinars with both customers and contractors.
Additional events may be held with program partner Cool Davis or other interested stakeholders.
Proposed Programs Budget:
Resource Source Proposed Budget $ Remaining in Program Funds Rebates Programs Budget NA
Consultants (if
required)
Programs Budget $5,000
Total $5,000
Budget Details:
A total not-to-exceed budget of $5,000 for phase 1, including webinar/meeting expenses, and (potentially) consultant support to assist with helping contractors with participation in rebate programs.
Organizational Goals Addressed:
Alignment with VCE’s Strategic Plan? Yes
• Goal 1: Maintain and grow a strong financial foundation and manage costs to achieve organizational health.
o 1.1 Objective: Maintain consistently healthy cash reserves to fund VCE’s mission, vision, and goals:
▪ Replacing furnace gas use with heat pump electric use will increase revenues, particularly from NEM customers.
• Goal 3. Prioritize VCE’s community benefits and increase customer satisfaction and retention. o 3.2 Objective: Develop programs and initiatives to better support community goals, including supporting member agency achievement of energy-sector emissions reduction targets.
▪ The primary objective of a HP program is to reduce emissions resulting from combustion of natural gas for residential heating
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Rev. 11/5/21
o 3.5 Objective: Develop customer programs and initiatives that prioritize decarbonization, community resiliency and customer savings. ▪ The proposed program prioritizes decarbonization. The impact on customer savings will be determined through the pilot program, as well as supported through education and outreach
Marketing, Education and Outreach (ME+O) Strategy:
HVAC replacement and improvement opportunities, as well as their associated rebates will be marketed on VCE’s social media accounts and website, as well as cross-promotion with aligned organizations.
Additionally, there is the capability to initiate mail and/or email campaigns. Education will be achieved through website material expansion and webinars. Contractor webinars will be jointly hosted by project partners, Franklin Energy and Energy Solutions. Contractors will be engaged for assistance with the “ask a contractor” customer webinars. There is an opportunity to work with Cool Davis in ME+O on cohosting webinars and collecting customer stories to demystify heat pumps and home electrification.
Board, CAC, PTG Input:
The Programs Task Group (PTG) was influential in the design and direction of the proposed Heat Pump Pilot. A heat pump rebate program was originally suggested by the PTG, with a focus on promoting the most affordable option, a dual fuel heat pump. As more money became available with the release of TECH’s rebate program, it became apparent the greatest need was not in providing rebates, but in marketing, outreach, and education.
The CAC was introduced to the Heat Pump Pilot on January 20th, as well as the Board of Supervisors on January 27th. The pilot went to the CAC for review and approval on February 24th. The CAC recommended that the Board approve Phase 1 of the pilot program if the program emphasizes fully electric heat pumps and dual fuel heat pumps equally. The CAC’s feedback has been incorporated into the pilot program and VCE will look to educate and promote heat pump systems as a whole.
Next Steps:
1. Schedule joint contactor webinars with Franklin Energy and Energy Solutions
2. Begin engaging local contractors and stakeholders
3. Add educational materials, as well as outreach and marketing materials to VCE’s website
4. Schedule customer webinars
5. Begin engaging customers through social media and mailer campaigns
6. Full program implementation
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Rev. 11/5/21
PG&E COMFORTABLE HOME & TECH REBATES
Heat Pump Space Conditioning
HVAC (Heating, Ventilation, and Air Conditioning) systems do more than just heat or cool a space. When properly installed and working, HVAC systems draw air through filters to remove dust, dirt, and allergens; heat or cool the air; remove excess humidity from the air; and direct that conditioned air into your home. The comfort of your home depends on your HVAC.
PG&E Fuels required: electric and gas
# Per Household: 2
15 SEER AC/9.0 HSPF Heating
Comfortable Home: $750
TECH Program: $2,250
Total Rebate: $3,000
16 SEER AC/9.0 HSPF Heating
Comfortable Home: $850
TECH Program: $3,050
Total rebate: $3,900
18 SEER AC/9.7 HSPF Heating
Comfortable Home: $850
TECH Program: $3,950
Total rebate: $4,800
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Rev. 11/5/21
Heat Pump Water Heating
Heat Pump Water Heaters are FOUR TIMES more efficient that the best gas burning units and COST LESS TO RUN. These units use the exact same technology as your refrigerator and are just as reliable. If you have solar now, or will later, a Heat Pump Water Heater is the only logical choice.
PG&E Fuels required: see below
# Per Household: 2
Standard: 3.24 EF / 3.09 UEF or better
PG&E Gas switching to PG&E Electric Heat Pump Water Heater Comfortable Home: $750
TECH Program: $3,100
Total rebate: $3,850
PG&E Electric to PG&E Electric Heat Pump Water Heater
Comfortable Home: $750
TECH Program: $1,000
Total rebate: $1,750
162