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1 RiversideCA.gov1
RiversideCA.gov
PUBLIC BENEFITS & ENERGY EFFICIENCYCOMMUNITY WORKING GROUP OUTCOME AND PROPOSED SPENDING PLANCity CouncilJune 16, 2026Public Utilities RiversideCA.gov2
LEGISLATIVE CHANGES & ADDITIONS OVER TIME
1996Public benefits charge and Programming Required AB 1890 PUC 385 2000Added requirements for low-income assistanceSB 1939 PUC 385 2005Requires utilities to first procure energy efficiency & demand reduction and requires annual reportingSB 1037 PUC 9615 2006Requires POUs, every 3 years, to identify all potentially cost-effective achievable Energy Efficiency savings and establish targetsAB 2021 PUC 9505 & 9615 2012Aligned the Energy Efficiency target setting with state planning timelines – every 4 yearsAB 2027 PUC 9505 2015Statewide Energy Efficiency targets to be set to achieve a doubling of EE savings & POU’s targets required to be consistent with this goalSB 350 PRC 25310, PUC 9505 2001Requires POUs to consider increasing assistance levels, streamline enrollment, and establish participation goalsSB 2x-2 PUC 386AB = Assembly Bill | SB = Senate Bill | PUC = Public Utilities Code | PRC = Public Resources Code 1 2
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2 RiversideCA.gov3
Goals1. Provide cost-beneficial energy efficiency services to customers2. Offer customers meaningful information on the costs and benefits of energy efficiency measures3. Reduce market barriers to investments in energy efficient products and services4. Create a sustainable and competitive energy efficiency services marketPUBLIC BENEFIT FUND SOURCE OF AUTHORITYPublic Benefits funds were established in 1996 by Assembly Bill 1890 (AB 1890) Created a Non-bypassable Customer Charge to provide for customer programs1. Minimum charge of 2.85%2. Residential and commercial customers 3. Average residential customer pays ~ $3.00 per month4. Average commercial customer pays ~ $10.00 per month5. RPU collects approximately $10 million annually RiversideCA.gov4
Limited Use of the Funding1. Cost-effective demand side management to promote energy efficiency and energy conservation 2. New investment in renewable energy resources and technologies 3. Research, development, and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets 4. Services provided for low-income electricity customers, including, but not limited to, energy efficiency services, education, weatherization, and rate discountsPUBLIC BENEFIT FUND ALLOWED SPENDING CATEGORIES 3 4
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FUND EXPENDITURE BY PROGRAM TYPE (LAST 10 YEARS)Demand-Side Management,Energy Efficiency & Conservation Programs $34,599,677 61%Low-Income Assistance Programs (SHARE, ESAP, Reliability Refund, COVID)$16,801,975 30%New Renewable Energy (Solar)$3,802,885 7%Research, Demonstration and Development $1,200,889 2% RiversideCA.gov6
PUBLIC BENEFIT FUND REVENUES AND EXPENDITURES$0$2$4$6$8$10$12$14FY 97-98FY 98-99FY 99-00FY 00-01FY 01-02FY 02-03FY 03-04FY 04-05FY 05-06FY 06-07FY 07-08FY 08-09FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19FY 19-20FY 20-21FY 21-22FY 22-23FY 23-24 MillionsTotal Expenditures Public Benefit Charge Funds Collected & Other RevenueOver the last 5 yearsprogramming was less than revenuePublic Benefit use-limited funds remain in reserve fund$34 Million is available in the reserve for programming**Note: Was $32 million in early 2025 5 6
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4 RiversideCA.gov7
1. January 13, 2025: The RPU Board provided with an update on the Public Benefits Charge (PBC) reserve funds and programsa. Identified that $32 million in the PBC reserve was available for fundingb. Requested staff to return with a Spending Plan2. April 22, 2025: Mayor Lock Dawson requested RPU staff to:a. Establish a task force of knowledgeable community members to recommend the best way to spend the PBC reserve funds to RPU customersb. Directed findings to be presented to the RPU Board and City Council by the end of 20253. June 2025: Knowledgeable community members were identified and invited to attend the first meeting of the Public Benefits and Energy Efficiency Community Working Group (Working Group)BACKGROUND RiversideCA.gov8
WORKING GROUP MEMBERSCity CouncilMayor Patricia Lock DawsonRiverside Board of Public UtilitiesVice RPU Board Chair Dr. Brian SianaRiverside Board of Public UtilitiesRPU Board Member Tom EvansUCRDr. Matt BarthChamber of CommerceNick AdcockInland Valleys Assn of RealtorsMark DowlingCalifornia Apartment AssociationVictor CaoHabitat for HumanityDavid HahnFair Housing Council of RiversideRose MayesResidentTom DonahueCommunity Access CenterFaustino AlvarezIndustry Expert – Heat pumpsChris TrujilloCompelle mediaChristopher KernCompelle mediaMichael Berger 7 8
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The Community Working Group was advisory and intended to provide ideas, comments, express questions, and provide community frameworks around how RPU’s PBC reserve funds should be spent.Final decisions on the expenditures, programs, structures, and budgets will be established by the RPU Board and City Council.COMMUNITY WORKING GROUP RiversideCA.gov10
COMMUNITY WORKING GROUP MEETINGSMeeting 1July 31, 2025
•Education about PBC•History of the PBC•Overview of current programs offered by RPUMeeting 2October 7, 2025 •Additional information as requested•Began project considerations•Developed initial parameters and guidance for programsMeeting 3December 18, 2025 •Discussion around solar power generation and impacts•Program & project proposal incorporated input•Working group discussion and recommendations•Request for a 4thmeetingMeeting 4January 15, 2026 •Refined Program & project proposal•Working group discussion with final recommendations9 10 6/4/2026
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Categories of topics and parameters from the Working Group with an overarching recommendation to modify communications about the PBC funded programsMAIN THEMESNon-Energy Impacts (NEIs) Benefits of Energy Efficiency in comfort and safety
Benefits of Energy Efficiency in comfort and safety
How electricity is used
Largest energy usage and behavioral changes
Largest energy usage and behavioral changes
Investment in the City
Solar & batteries within the City
Solar & batteries within the City
Customer benefit
Keep benefits to customers & low-income support
Keep benefits to customers & low-income support
RiversideCA.gov12
FundingTimelineProgram$5,000,0005 yearsResidential Energy Storage Rebate Program1. $12,000,0006-yearsCommunity and Emergency Centers Solar PV, Battery Storage, and Energy Efficiency Rebate Program2. $5,000,0003-yearsResiliency at the Utility Operations Center and City Emergency Operations Center Solar and Battery Rebate Program3. $9,000,0005-yearsResidential Battery Energy Storage or Solar with Battery Energy Storage Pilot Program for residential to test high concentration of battery and solar and potential demand response programs (limited area)4. $2,000,0002-yearsEnergy Savings Assistance Program and Mobile Home and Multifamily Program (expansion of existing programs)5. $1,000,0004-yearsRiverside University Research Grant Program (expansion of existing programs)6. $34,000,0002-6 yearsTotalSUMMARY OF RECOMMENDATIONS11 12 6/4/2026
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Provide a $500/kWh rebate with an additional rebate amount for low-income customers for the installation of energy storage systems at residences.1. Proposed funding: $5 million2. Timeline: 5-year program with annual review3. Note: This program has been in development since mid-2025 due to its potential positive impact on the resilience of the overall distribution system and its benefit to customers. It was intended to be introduced in early 2026. RESIDENTIAL ENERGY STORAGE REBATE PROGRAM RiversideCA.gov14
Rebate program to provide funding for solar PV, battery storage and deep energy efficiency to improve the resiliency of the City’s community centers and libraries that serve the community during emergencies1. Proposed funding: $12 million2. Timeline: 6-year program with annual review3. Notesa. The Parks, Recreation and Community Services Department has confirmed support for this program and has identified the reconstruction of Nicols Park Community Center as an initial projectb. Funding incorporated WG recommendation to provide energy efficiency and other RPU educationCOMMUNITY & EMERGENCY CENTERS SOLAR AND BATTERY REBATE PROGRAM13 14 6/4/2026
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Provide a rebate program for the installation of solar and battery storage with microgrid capabilities for Utility Operations Center (UOC) and the Emergency Operations Center (EOC) operations during significant power outages and emergencies. The solar at the UOC will support the community’s energy usage when not being used as a microgrid.1. Proposed funding: $5 million2. Timeline: 3-year program with annual reviewSOLAR AND BESS AT UOC AND EOC RiversideCA.gov16
Program to provide a rebate for the costs of battery energy storage system (BESS) or solar with BESS for RPU’s residential customers. Pilot program to evaluate options for demand response (DR) for areas with solar and BESS.1. Proposed funding: $9 million2. Timeline: 3-year program with annual review3. Notes:a. Staff will develop an eligible vendor list with approved pricing to protect customers from fraud and overchargingb. Customers eligible for the program will be identified and notified (about 400)BESS OR SOLAR WITH BESS FOR RESIDENTIAL CUSTOMERS DR PILOT PROGRAM15 16 6/4/2026
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Increase funding to the Energy Savings Assistance and the Mobile Home and Multifamily direct install programs to accelerate energy savings for low- and fixed-income households and customers and expand outreach and education about the programs.1. Proposed funding: $2 million2. Timeline: 2-year programADDITIONAL FUNDING FOR ESAP AND MHMF RiversideCA.gov18
Expand the Universities Energy Research Grant program to provide grant supported research for energy efficiency programs as well as support new technologies that are intended to support RPU customers. 1. Proposed funding: $1 million2. Timeline: 4-year program or until funds fully encumbered. 3. Once a grant is issued, it will take time for the researchers to complete their work and analysis. Funding may not be expended within a year of award. Staff recommend that funding for this grant be provided at $100,000 to $500,000 with the expenditure of funds completed within 2 years of award.RIVERSIDE UNIVERSITIES RESEARCH GRANT17 18 6/4/2026
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During the discussion of the PB Funds Spending Plan, RPU Board Members provided several comments:1. Noted that most of the funds will go towards solar and BESS and may be more than needed2. Funding for City facilities should include language to ensure that the recipient will maintain the equipment that is rebated3. Expand or add a program with funding from the $12M for emergency centers to provide benefits to the young and senior populations – day care centers and senior housing/centers specifically4. That funding for DR research be limited so that most of the funding goes towards solar and BESS that benefit customers directlyRPU BOARD COMMENTS RiversideCA.gov20
Reason not Moving ForwardProgram DiscussedProject can be funded by other sources, including rates. Considered a utility project instead of community project.Springs Battery Storage ProjectWhile modeled after programs offered by other POUs, it did not provide sufficient direct benefit to RPU customersDemonstration Facility ProjectAfter review by the City Attorney’s office, it was determined that it was not legal under state law or allowed under the City CharterRefund of PBC reserve funds to customersAfter discussion of the status of solar in Riverside and the impacts of solar on the distribution grid and in electricity markets, solar recommendations were modified to provide benefit to all customers and incorporate other program benefits and battery energy storage.Solar PV installations at:•Parking structures at city facilities•On warehousesArea along the Gage Canal is not sufficient in all areas to support the Solar PV systems or their ongoing maintenanceSolar PV over the Gage CanalPROGRAMS CONSIDERED BUT NOT RECOMMENDED19 20 6/4/2026
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1. Successful programs this fiscal year may reduce the available PBC reserve funds2. There may be merit in considering continuing the expanded funding for the successful programs in the next two fiscal yearsa. Mobile Home and Multifamily Direct Install Programb. Small Business Direct Install Programc. Business Outdoor Lighting Direct Install Program3. Program amounts should be considered flexible with the ability to be adjusted dependent on program need and available fundingADDITIONAL INFORMATION RiversideCA.gov22
1. Bring forward a final Spending Plan with each program’s requirements and supplemental appropriationsa. The Residential Energy Storage Rebate Program may come forward earlier because the program has been in development and was intended to be presented in early 20262. Continue community discussions about the PBC funds throughout the summer with the Energy Planning Project funded by the EECBGa. Will include a community-wide survey about the PBC funded programsb. Staff to review and potentially propose a new Daylight Solar Support ProgramNEXT STEPS21 22 6/4/2026
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That the City Council:1. Receive a presentation on the outcome of the Public Benefits Funds Community Working Group and Board recommendations; and,2. Approved the preferred spending plan for the Public Benefits Charge reserve funds.RECOMMENDATIONS23