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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Key Considerations and Refinements to the Clean Energy Programs Plan Funded by Public Benefit Charge and Low Carbon Fuel Standard for Fiscal Years 25-26 and 26-27.
1. Resolution authorizing Glendale Water & Power (GWP) staff to implement programs consistent with the outlined refinements to the Glendale Water and Power Clean Energy Programs Plan funded by Public Benefit Charge (PBC) and Low Carbon Fuel Standard (LCFS) for Fiscal Years (FY) 25-26 and FY 26-27.
2. Resolution of Appropriation requesting $200,000 for the vehicle-to-everything (V2X) study supporting a potential pilot program.
COUNCIL ACTION
Item Type: Action
Approved for September 9, 2025 calendar
EXECUTIVE SUMMARY
This report responds to Council comments from June 4, 2025, and subsequent meetings following adoption of the Clean Energy Programs Plan. The plan was approved on June 24, 2025, and Council directed staff to return with additional review and refinements before implementing new programs. This report outlines adjustments to program elements and implementation timelines based on Council feedback.
The Clean Energy Programs Plan details GWP’s planned use of PBC and LCFS funds to deliver energy efficiency, utility assistance, load management, and electrification programs and initiatives. The plan supports Glendale’s environmental and equity goals while aligning with state legislation.
This report also provides the rationale and guiding framework for GWP’s clean energy programs portfolio. The refined portfolio remains aligned with GWP’s Integrated Demand Side Management (IDSM) strategy and is designed to conserve energy and water, improve grid reliability, provide utility assistance to income-qualified residents, and reduce greenhouse gas emissions, while supporting California’s broader objectives to decarbonize and modernize the energy system.
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RECOMMENDATION
Authorize staff to proceed with program refinements and implementation of the Clean Energy Programs Plan funded by the PBC and LCFS for FY 25-26 and 26-27 consistent with the refinements outlined, while continuing to monitor, adjust, and refine program measures, timelines, and incentives as needed to remain responsive to evolving technologies, community needs, Council feedback, and regulatory requirements.
Concurrence to move forward will allow timely implementation and ensure that the benefits of programs reach Glendale residents and businesses without delays.
Additionally, staff recommends that the City Council approve the appropriation of $200,000 in FY 25-26 to conduct a study in support of the V2X pilot program.
ANALYSIS
This section outlines specific actions undertaken in response to Council feedback and describes GWP’s approach for designing and implementing its clean energy portfolio.
1. Home Energy and Water Saving Rebates
One area of Council feedback focused on Heating, Ventilation, and Air Conditioning (HVAC) rebates and how incentives are delivered. Council expressed interest in issuing HVAC rebate checks rather than bill credits. GWP already provides checks for other programs, such as e-bike and electric vehicle (EV) charger rebates, so extending this process to HVAC systems would primarily involve process adjustment with Finance and is feasible. The Clean Energy Section currently provides more than 600 electric rebates annually through the Home Energy and Water Saving Rebates program. While transitioning all rebates to checks would increase administrative needs, limiting this change to higher-cost measures such as permitted HVAC systems, water heaters, and panel upgrades is practical and allows customers to recover their investments more quickly.
Under the approved Clean Energy Programs Plan, the Home Energy and Water Saving Rebates program would offer $1,000 per ton for new heat pump fuel-switching retrofits, up to $5,000 for a 5-ton system, plus an additional $1,000 for home electrification panel upgrades. In response to Council feedback, staff proposes adding rebates for electric- to-electric (i.e. old heat pump to new heat pump) upgrades at $500 per ton. Although incremental savings are lower for electric-to-electric conversions, this approach provides meaningful support to encourage the adoption of more efficient HVAC systems and remains consistent with overall program goals and requirements.
2. Advancing V2X and Demand Response (DR)
V2X technologies represent a rapidly evolving area of innovation with the potential to provide grid support, backup power, and enhanced grid flexibility. V2X enables EVs to communicate with and supply energy to homes, businesses, or the grid, supporting peak demand reduction, renewable energy generation, and enhanced load shaping.
While the strategic value of V2X technology is increasingly recognized, the technology is still maturing. Market availability of V2X-enabled vehicles and bidirectional charging 39c
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infrastructure is currently limited, with evolving standards, high costs, uncertainties around customer adoption, utility integration, and long term-interoperability. Premature investment risks locking into solutions that may not have the potential to scale, creating stranded assets or underperforming pilots.
To ensure GWP makes timely, informed, and cost-effective decisions, staff recommends conducting a scoped study to assess the technical, economic, behavioral, and operational feasibility of implementing a V2X program in Glendale. This study would focus on assessing bidirectional chargers, vehicles, and utility interface capabilities for current and future compatibility. In addition, the study will evaluate various V2X scenarios and customer segments, analyzing the distribution level effects of V2X implementation, such as load managing and shaping. Furthermore, the study will assess the cost-effectiveness of V2X solutions, recommending pilot models, incentive structures, and evaluation frameworks aligned with local needs and best practices.
Importantly, findings from this study will also inform the design of a new, cost-effective DR program, helping GWP optimize load management, evaluate potential grid impacts, and integrate V2X enabled resources into DR strategies.
To support this work, GWP will partner with a neutral academic or research institution to provide third-party analysis, case study reviews, economic modeling, and project support. This outside expertise will help ensure program design reflects best practices and aligns with Glendale’s unique customer base and load profile. Following feedback from a GWP Commissioner and Councilmember, the Clean Energy team has already initiated exploratory efforts with UCLA’s Smart Grid Energy Research Center (SMERC) to develop strategic collaboration to support research, assessment, and pilot program design for V2X technologies. This study represents a foundational step toward V2X applications and will guide development of pilot program frameworks tailored to Glendale’s grid needs and Council priorities.
Although initial funding was earmarked for FY 26-27, staff now anticipates undertaking the study in FY 25-26 to begin earlier progress on pilot program design and implementation.
DR is another evolving area that can help adjust consumer demand based on real-time energy availability, help balance supply and demand, and reduce reliance on fossil fuel-based plants. Lessons learned from previous DR initiative, which was costly (approximately $19,000 per MWh) and limited in impact, will guide the development of a new framework focused on dispatchable, measurable, and cost-effective DR strategies that provide clear grid benefits. The new DR program design framework sets a target cost of less than $200 per MWh for typical dispatches, with flexibility for up to $1,500 per MWh in rare grid emergency events. This ensures that GWP invests in DR solutions that deliver meaningful load reduction while remaining aligned with ratepayer value.
By using these cost thresholds, GWP can implement DR programs that are performance-based, grid responsive, financially sustainable, and saleable. GWP will also leverage insights from the V2X study into the DR program design.
GWP will explore different options to implement this program either through a 49c
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participation agreement with SCPPA or direct contracting with a selected institution.
3. Commercial Energy and Water Savings Rebates
GWP’s Commercial Rebates Program will offer one of the most extensive lists of measures among municipal utilities, with a focus on supporting small businesses. While GWP has flexibility to adjust measures and incentives, all rebates are designed to align with overall cost-effectiveness goals. The rebate list was carefully developed to balance energy impact with practical considerations for small businesses. For example, GWP will offer a $2,000 flat rebate for commercial dishwashers. These units can range in price from a few thousand dollars to tens of thousands, and since small businesses typically purchase smaller units, this rebate will help them recoup initial investments more effectively, promoting adoption while managing program efficiency.
GWP’s rebates and programs are dynamic and need to be periodically updated in response to industry standards, technology performance, and projected energy savings.
This ensures that program incentives remain aligned with the most current best practices, state codes, and energy savings data.
To ensure the program meets actual business needs, staff will gather ongoing feedback from participating businesses through surveys and direct engagement. Incentives and program measures will be continuously reviewed and adjusted based on real-world experience, ensuring that the rebates remain responsive, equitable, and tailored to Glendale’s commercial community.
The Clean Energy team is collaborating with the City’s Sustainability Officer and Integrated Waste Management Division to develop a Green Business Efficiency Pilot.
Early planning includes a stakeholder survey to gather input from commercial customers, ensuring new rebate offerings and program design reflect the needs of Glendale businesses and the community. This feedback will ensure that proposed rebate offerings and program design are responsive to the needs of Glendale businesses while also informing the development of the Commercial Energy and Water Saving Rebates Program.
4. Clean Energy Programs Principles and Policy Alignment The development and delivery of GWP’s energy and water efficiency programs continue to be guided by four principles: cost-effectiveness, policy alignment, equity and accessibility, and a data-driven approach. GWP applies several cost-effectiveness tests, with the Total Resource Cost (TRC) test serving as the primary measure to evaluate whether programs deliver more value than they cost. The goal is to maintain a portfolio- wide TRC ratio above 1.0. Programs are designed to comply with California’s requirement that all cost-effective efficiency measures be pursued before investing in new generation.
Assembly Bill (AB) 1890 and the California Public Utilities Code Section 385 require that municipal utilities establish a PBC equal to 2.85% of annual retail electric rate revenues to fund investments in one or more of the following areas:
Cost-effective demand side management (DSM) services to promote energy efficiency and energy conservation
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New investment in renewable energy resources and technologies Research, development and demonstration programs
Services provided for low-income electricity customers, including but not limited to, targeted energy efficiency service and rate discounts.
When allocating funding across program areas, GWP takes a coordinated and balanced approach to ensure it meets energy savings targets while also prioritizing support for income-qualified customers. Since equity and affordability are a key consideration to portfolio design, a significant portion of the PBC funding, approximately 40-50 percent over the next two years, will be dedicated to income-qualified services. This includes utility rate discounts, as well as targeted energy and water efficiency upgrades and related services to help reduce long-term utility costs for vulnerable households.
AB 2021 added to the state’s energy efficiency policies by requiring the establishment of ten-year energy efficiency targets every four years to facilitate the development and implementation of the programs and to also help identify future potential savings opportunities. GWP’s energy savings target for FY 25-26 and FY 26-27 is approximately 10 million kWh annually, representing about 1% of total retail electricity sales.
In summary, GWP’s programs are designed to achieve measurable and sustainable outcomes, by delivering a TRC ratio greater than 1, ensuring that the portfolio of programs is cost-effective in addition to achieving the 1 percent annual savings goal, and aligning with policy drivers. Finally, the portfolio is built to offer diverse programs to all customers in Glendale, empowering them to reduce consumption and actively support decarbonization efforts while ensuring affordability for income-qualified customers.
To support consistency and regulatory compliance, GWP uses the California Publicly Owned Utility (POU) electronic Technical Reference Manual (eTRM) when designing and evaluating energy efficiency and demand side programs. The eTRM is a centralized digital database of standardized energy efficiency measures, and is used by utilities, regulators, and program administrators. It contains a vetted list of technologies and practices that are pre-evaluated for their expected energy savings and demand reduction potential. By relying on eTRM-defined measures, GWP ensures that program offerings are aligned with the industry best practices, consistent with regulatory expectations and evolving state energy codes.
Figure 1 provides a screenshot of the eTRM database interface to illustrate the structure and range of available measures. While the database is extensive and multilayered, this visual highlights how technologies are categorized and how GWP can access detailed savings estimates for specific measures.
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Figure 1: eTRM Database Interface
In cases where emerging technologies are not yet defined and listed in eTRM, GWP may use custom saving calculations or pilot projects to evaluate technologies for their feasibility and grid impacts. Customer-facing program outcomes are reported annually to the California Energy Commission (CEC), as required under Senate Bill (SB) 1037, AB 2021, and Section 9505 of the Public Utilities Code.
GWP updates its programs periodically in response to the eTRM which reflects evolving technologies and industry standards. GWP uses these updates to refresh its offerings, phase out low-performing measures, and introduce new rebates and services that align with current codes and market conditions. Furthermore, even though the programs are designed using a structured approach and incentive levels are justified based on cost- effectiveness testing, GWP has some flexibility to allow individual measure and program adjustments as technologies evolve and based on community needs.
STAKEHOLDERS/OUTREACH
Staff has reviewed and addressed feedback received from the GWP Commission and City Council, while continuing interdepartmental coordination to ensure program feasibility and alignment with operational goals. Ongoing collection of customer and community input, along with external collaboration will support program refinements.
FISCAL IMPACT
Funding for the V2X study was not included in the FY 2025-26 Adopted Budget.
Therefore, the staff is requesting appropriation in the amount of $200,000 as follows:
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Requesting Appropriation
Amount From (Account String) To (Account String) Funding Source $200,000 GL 24217-2910-000 GL: 45512-2910-
GWP-4800-P0000
Public Benefits Fund
If proven feasible, future funding for this program will be included in the annual budget for each respective year.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is not subject to the California Environmental Quality Act (CEQA) review as the action requested is not a project as defined by, and for the purposes of, CEQA.
CAMPAIGN DISCLOSURE
Not applicable.
ALTERNATIVES TO STAFF RECOMMENDATION
1: Direct staff to return for further revisions before implementation. 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:
Adrine Isayan, Assistant General Manager - Finance & Risk Management Ruzan Soloyan, Clean Energy Officer - Power Management
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: CC Resolution 25-95 (without exhibit since the exhibit is attached to this Report as Exhibit 2)
Exhibit 2: Clean Energy Programs Plan funded by the PBC and LCFS.