Valley Clean Energy Board Meeting – May 12, 2022
via video/teleconference
Item 12 – Update from Beth Vaughan of CalCCA 1
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Valley Clean Energy Authority
Board Meeting
May 12, 2022
Beth Vaughan
Executive Director
CalCCA Membership & Growth
3 California CCA: By the Numbers
4 2022 and 2023 CCA Launches and Expansions
5 CCA New or
Expansion?
Cities/Counties Start of Service
Clean Energy Alliance Expansion Escondido, San Marcos April 2023 Orange County Power
Authority
Expansion Unincorporated Orange County Sometime in 2023 San Diego Community
Power
Expansion National City, unincorporated San Diego County April 2023 CCA Formation Cities/Counties Start of Service
San Diego Community
Power
New phase Cities of San Diego, Chula Vista, La Mesa, Encinitas, Imperial Beach. January Phase 3 – small commercial and residential.
Central Coast
Community Energy (3CE)
Expansion City of Buellton January
Pioneer Community
Energy
Expansion City of Placerville and County of El Dorado January Santa Barbara Clean
Energy
New phase City of Santa Barbara March, non-Res
Orange County Power
Authority
New Cities of Buena Park, Fullerton, Huntington Beach, Irvine, and Lake Forest
April Phase 1 – commercial and municipal; October Phase 2 - residential
MCE Expansion City of Fairfield April (all accounts)
Peninsula Clean Energy Expansion City of Los Banos April Energy for Palmdale’s
Independent Choice
(EPIC)
New
(CalChoice)
City of Palmdale October (Res & Muni)
2022
2023
California CCA Departing Load by IOU
6 Source: 2021 IEPR Forecast. California Energy Demand 2021-2035 Baseline Forecast - Mid Demand Case 7 Regulatory & Legislative
Advocacy
Policy Team
Regulatory
Engagement
Key 2022 Proceedings:
• Reliability & Resource Adequacy (CPUC): The RA Proceeding includes issues of RA compliance, multi-year RA procurement, central RA procurement, and other key CCA issues (RA import rules, revised accounting methods, shift to post-peak accounting, etc.). Highly contentious long-term RA structural reform.
• CAISO Stakeholder Initiatives: RA Enhancements, DER participation in wholesale markets, Hybrid Resources, Day Ahead Market Enhancements • Provider of Last Resort (CPUC): Implementation of SB 520, will impact CCAs financial security requirement, de-registration, re-entry fees. Financial implications for CCAs regarding POLR and default provider costs. • Integrated Resource Planning (CPUC): IRP now serves as the central coordinating venue for statewide long-term energy planning, including new procurement.
• Disconnections (CPUC): Adoption of Arrearage Management Plan and recovery of debt forgiven in the AMP by all LSES through the Public Purpose Program Charge. 40-month Percentage of Income Payment Plan (PIPP) pilot program (CCAs are authorized to participate). • Affordability (CPUC): Adoption of metrics and methodologies for assessing the relative affordability of utility service.
CalCCA’s Regulatory Committee:
• Tracks and analyzes proceedings
impacting CCA across CPUC, CEC,
CAISO, CARB
• Recommends Board action
• Develops policy positions, files
comments, and advocates for positive
regulatory outcomes
• Educates policymakers and regulatory
staff on CCA activities and CCA issues
• Works with regulatory stakeholders to
build coalitions supportive of CCA-positive outcomes
9 Changes in the
CCA Community
10 Enhanced
Implementation Planning,
Transparency, &
Financial Reporting
Framework
https://cal-cca.org/key-cca-documents/
Other efforts are underway to increase requirements for implementation planning and sharing financial and other best practices
• Provider of Last Resort (POLR) Proceeding
• CalCCA Best Practices Guide
Legislative
Engagement
Key 2022 Legislation:
• CalCCA has taken a position on 15 bills in this legislative session. • Senate Bill 1158 (Becker) and Senate Bill 881 (Min): Both bills are focused on enforcement of Integrated Resource Plans. Becker clean energy 24x7 bill designed to measure progress toward achieving 2030 GHG targets (softer compliance obligation). Min bill would allow the CPUC to issue fines for LSEs that do not meet GHG procurement targets in their IRPs. • SB 1020 (Laird): Develops interim targets for renewable and carbon free retail sales requirements, accelerates targets for state facilities (2030), and establishes a new authority and fund to reduce customer bills while still maintaining climate change mitigation efforts.
• Arrearages 2.0: Coalition of CalCCA, IOUs and POUs advocating for $1.9 billion in the budget using unspent federal COVID relief funds for utility arrearages.
In 2021 budget, CCAs obtained $55 million in Customer Arrearages relief (45% of total surveyed arrearages).
CalCCA’s Legislative Committee:
• Tracks and analyzes bills impacting CCA
• Recommends Board action
• Develops positions, negotiates
amendments, and advocates for bill
passage / defeat
• Educates legislators and legislative /
administration staff on CCA activities and
CCA issues
• Works with legislative stakeholders to
build coalitions supportive of CCA-positive outcomes
• Lobby Day, Leg Sub Committee of CCA
Elected Officials
11 Procurement
Project Delays
Reported CCA Project Delays
(as of April 2022)
• ~3 GW total of delays:
roughly 70% solar, 30%
batteries
• Includes all delays
reported by CCAs:
interconnection,
permitting, supply chain,
and DOC investigation
• Average delay length is
over 6 months (~200
days)
• Bulk of delays (~1 GW)
are in 2023
• Individual Load Serving
Entities (CCAs, IOUs,
ESPs) are at risk of non-compliance
13 Communications &
Membership
Backbone of CalCCA
15 Comms
&
Membership
CalCCA
Advocacy &
Campaigns
(SB 612)
CalCCA
InfoHub
Public
Webinars /
Internal
Green Bag
Webinars
Publications/
Info
Resources
Social Media
Member
Events and
Support
Partner
Program
CCA Customer Programs
Visit cal-cca.org for more info
Links
17 Cities/Counties Served by CCA
Clean Energy Procurement
Policy Filings
CCA Programs
Quarterly Reports
Stats
CalCCA Mailing List!
CCA Celebration:
September 2022
Annual Meeting:
May 2023
18 Upcoming Events
Questions?
Thank you!
Beth Vaughan
Executive Director
[email protected]
19 Valley Clean Energy Board Meeting – May 12, 2022
via video/teleconference
Item 13 – Legislative Update 3
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4 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
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Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Background
• VCE Legislative Platform - 2022
• Adopted Annually (Dec 2021)
• Consistent with VCE Vision/Mission/Strategic Plan
• Informs Legislative Positions and Communications
• Legislative Positions Consistent with Platform
• Bills Categorized by Priority
• Priority 1: Focused Engagement – Direct Connection to VCE Mission/Strategic Plan Goals • Priority 2: Active Engagement/Monitoring – Issues Related to VCE Mission/Strategic Plan Goals • Priority 3: Monitoring - Minimal Direct or Indirect impact on VCE Mission/Strategic Plan Goals but Warrant Monitoring as they Address Broader Energy, Utility, Climate and Sustainability Topics • Generally Align with CalCCA Positions and work Directly with CalCCA Legislative Team 5 Item 13 – Legislative Update
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Covid and the Capitol
• Some Committees requiring lead witness testimony in person. • At least one committee has eliminated phone option entirely. • Legislators back to carrying a full bill load.
• Some in-person meetings
6 Item 13 – Legislative Update
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Money Pouring In – State Budget is Flush
• Surplus anticipated to reach $68 billion
• May Revise to be released any day
• Done in June?
• What’s available for clean energy programs
7 Item 13 – Legislative Update
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Key Bills
• SB 1020 (Laird, Atkins) – Leadership Supported Bill
• 2035: 90% Carbon Free Energy | 2040: 95% Carbon Free Energy • Electricity serving the state to be 100% carbon free by 2030 • California Affordable Decarbonization Authority
• SB 881 (Min) – Integrated Resource Plans – Sen. Appropriations • AB 1814 (Grayson) – CalCCA sponsored bill – no hearing • SB 1287 (Bradford) – CCA financial security requirement – no hearing 8 Item 13 – Legislative Update
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Bills Being Tracked - Active
9 Item 13 – Legislative Update
Bill/Author/
VCE Priority
Description Status (5/12) Current Position:
VCE/CalCCA
SB 881 (Min)/1 Integrated Resource Plans Sen. Appropriations Oppose Unless Amended
SB 1020 (Laird, Atkins)/1 Clean Energy, Jobs, and Affordability Act of 2022 Sen. Appropriations Watch/Support AB 1814 (Grayson)/1 Transportation Electrification: CCAs Dead Support/Sponsor SB 1287 (Bradford)/1 CCAs/ESPs: Financial Security Requirements Dead Oppose/Oppose AB 1944 (Lee)/2 Local Government: Open and Public Meetings Asm. Floor Support/None AB 2316 (Ward)/2 Community Renewable Energy Program Asm. Appropriations Watch/Watch AB 2399 (Mayes)/2 Provider of Last Resort: Exit Retail Service Dead Watch/Watch Note: Priority 1: Focused Engagement
Priority 2: Active Engagement/Monitoring
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Bills Being Tracked - Active
1 0
Item 13 – Legislative Update
Bill/Author/
VCE Priority
Description Status (5/12) Current
Position:
VCE/CalCCA
AB 2587 (E. Garcia)/2 Procurement: Firm Renewable Energy Resources & Firm Zero-Carbon Resources
Asm. Appropriations Watch/Watch
AB 2296 (E. Garcia)/2 Transmission Planning Asm. Appropriations Watch/Watch AB 2878 (Aguiar-Curry)/2 Forest Biomass Waste Utilization Program Asm. Appropriations Watch/None SB 833 (Dodd)/2 Community Energy Resilience Act of 2022 Sen. Appropriations Support/Watch SB 839 (Dodd)/2 Demand Response Sen. Appropriations Watch/Watch SB 852(Dodd)/2 Climate Resilience Districts Sen. Appropriations Watch/None SB 1158 (Becker)/2 GHG Emission Reporting: Hourly Disclosures Sen. Appropriations Watch/Watch Valley Clean Energy Board Meeting - May 12, 2022
via video/teleconference
Item 14 – Electric Vehicle Rebate Pilot Program 11
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Public Comments
12 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 13 Item 14 – Electric Vehicle Rebate Pilot Program
VCE’s Strategic Plan (Nov 2020):
Goal 3) Prioritize VCE’s community benefits and increase customer satisfaction and retention Goal 4) Promote and deploy local decarbonization and grid innovation programs to improve grid stability, reliability, community energy resilience, and safety VCE’s 3-Year Programs Plan (June 2021):
1) Promote the electrification of transportation, residential and commercial buildings, and agricultural operations.
2) Encourage and incentivize energy efficiency, demand response flexibility, and resiliency.
Active VCE Programs:
1) Energy efficiency ME+O
2) SACOG Grant– Electric vehicle charging infrastructure 3) AgFIT – Automation; dynamic prices
4) Heat Pump Pilot – home energy rebates; contractor ME+O Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Background & Context:
Nat’l, Statewide push toward transportation
electrification
• Five Million Zero Emission Vehicles on the road in CA by 2030 (E.O. B-48-18)
• All new cars and passenger trucks sold in CA must be
Zero Emission Vehicles by 2035 (E.O. N-79-20)
The number of EV registered in CA totals to 930,811
vehicles , with 425,300 being all electric – as of Jun 2021 14 Item 14 – Electric Vehicle Rebate Pilot Program
Requested Action: Review and approve Phase 1 of Valley Clean Energy’s Electric Vehicle Rebate Pilot Program
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] • The California Air Resources Board identified that nearly 35% of the State’s emissions are from the transportation sector – High need to decarbonize our transportation • US has seen EV sales nearly double from 308,000 in 2020 to 608,000 in 2021 15 Item 14 – Electric Vehicle Rebate Pilot Program
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Program Design:
Rebates and tax credits available; VCE’s pilot
designed to stack and demystify the process
Phased approach
• Phase 1: Streamlined and simplified. Providing
rebates based on proof from customer of
other (vetted) rebate program
• Phase 2: Reevaluate approach after Phase 1 to
potentially include used/leased vehicles,
Point-of-Sale (POS) rebates, etc.
16 Item 14 – Electric Vehicle Rebate Pilot Program
Total: $5,250
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Recommended Approach:
Align with Clean Vehicle Rebate Project (CVRP)
• Apply within 3 months after purchase (if under
“high earners cap”); higher rebates for income-qualified customers Staff recommends alignment with CVRP
because…
• Funding is available
• Incorporates income eligibility criteria, with
differing rebate amounts
• Includes a luxury vehicle cap
17 Item 14 – Electric Vehicle Rebate Pilot Program
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 18 Item 14 – Electric Vehicle Rebate Pilot Program
Resource Source Proposed Budget $ Remaining in
Program Funds
Rebates Programs
Budget
$80,000
Marketing,
Education &
Advertising
Programs
Budget
$10,000
Consultants (if
applicable)
Programs
Budget
$10,000**
Total $100,000 $124,000
Proposed Budget:
**Amount would be reallocated to customer rebates should staff not need additional program support Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Rebates:
Estimating to provide nearly 30 rebates to our
customers
• Assuming 25% of funds go to income
qualified applicants - $4,000 rebate
• Assuming all standard applicants purchased
BEVs - $2,500 rebate
Based on evidence from another CCA…
• Around 4-5 applications will be submitted
and processed per month
• Program funding expected to last between
7-8 months
19 Item 14 – Electric Vehicle Rebate Pilot Program
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Program Equity: Ensuring that income-qualified customers have equitable access to rebates Staff is recommending:
1. Income-qualified customer applications are given priority and processed before standard applications.
2. Income-qualified applicants fill out a VCE rebate interest form and VCE would consider these rebate funds “on hold” for a period of time, providing time for their CVRP application to be processed.
3. Allocate 25% of rebate funds in Phase 1 for income-qualified applicants. 6 months after program launch, the funds would be released for all applications.
20 Item 14 – Electric Vehicle Rebate Pilot Program
Total:
$14,250
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Next Steps:
• Develop full list of eligibility
criteria with terms and
conditions
• Expand marketing,
outreach, and education
materials
• Outline and establish
customer application
process
• Implement program
21 Item 14 – Electric Vehicle Rebate Pilot Program