Agenda Report
Fullerton City Council
MEETING DATE: MARCH 21, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC LEVITT, CITY MANAGER
PREPARED BY: KIM CHAUDHRY, SENIOR ADMINISTRATIVE ANALYST SUBJECT: LETTER OF SUPPORT FOR SOUTHERN CALIFORNIA EDISON BUILDING ELECTRIFICATION APPLICATION TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION
SUMMARY
Southern California Edison (SCE) filed a Building Electrification Application with the California Public Utilities Commission (CPUC) on December 20, 2021 for approval of its 2024-27 programs. The plan would provide approximately $677 million for programs that accelerate growth of the building electrification market over a four-year period to reduce greenhouse gas emissions and improve air quality.
RECOMMENDATION
Discuss and provide direction.
CITY MANAGER REMARKS
The City Manager recommends approval of the letter of support for Southern California Edison Building Electrification. Edison will be present for a brief presentation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability.
FISCAL IMPACT
No fiscal impact associated with this item.
DISCUSSION
These programs would recover costs through distribution rates. These objectives would support California’s climate goals by helping to maximize greenhouse gas reduction from buildings and rapidly accelerate adoption of electric heat pumps in an equitable manner.
The portfolio adoption targets include installing 250,000 electric heat pumps and providing 65,000 households in SCE’s service area with electrical upgrades. The program specifically designates about one-third of incentive funds, equaling about 81,000 electric heat pumps, and at least 40% of funding for electrical upgrades for income qualified customers and environmental and social justice designated communities. The plan also provides retrofit assessments and incentives for necessary electrical infrastructure like panel and/or circuit upgrades.
This self-initiated application takes a step toward large-scale building electrification with a market transformation approach to accelerate current efforts to meet the state’s 2030 GHG reduction goals. The actions laid out in the application will have broad benefits, including reduced GHG emissions, downward pressure on rates and less energy usage due to increased efficiency of electrical equipment. Reducing emissions from the use of fossil fuels is critical to address and mitigate climate impacts outlined in SCE’s Pathway 2045 blueprint for achieving carbon neutrality. SCE estimates the need to convert 70% of space and water heating to electric by 2045 to meet California’s ambitious clean energy and carbon neutrality goals of a 40% reduction below 1990 levels by 2030 and carbon neutrality by 2045. According to SCE, other benefits of the application could include consumer bill savings, creation of jobs statewide (including many in disadvantaged communities) and a reduction on the energy system demand.
SCE proposes two programs: BE Ready Home & BE Ready Catalina and BE Business. SCE will direct the bulk of the funding (nearly 88%) to the BE Ready Home & BE Ready Catalina, which has a 200,000 heat pumps and 65,000 panel / circuit upgrades target. This program will place an emphasis on low-income customers and other environmental and social justice communities, offering no-cost or low-cost retrofit assessments and funding electric panel upgrades and heat pump water heater and HVAC heat pump replacements. SCE will direct the remaining 12% of funding toward the BE Business program targeting businesses located in environmental and social justice communities, offer technical assistance and support for installers and building owners and incentivize HVAC heat pump retrofits for normal replacement. Attachment 1 shows the full list of components of both programs.
Staff will draft a support letter (similar to Attachment 2) for the Mayor's signature and forward it to the CPUC, if City Council votes in support of SCE's Building Electrification application.
ATTACHMENTS:
Attachment 1 – SCE Application Fact Sheet
Attachment 2 – Sample Letters of Support
Southern California Edison Building Electrification Program Application March 21, 2023 - Page 2