SAN OSE ~/_
CLEAN ENERGY
A Program of the City of San José
PROGRAMS
ROADMAP
INTRODUCTION 1
CCA PROGRAM
LANDSCAPE
PROGRAM STRATEGIC 03
ALIGNMENT
PROGRAM
AREAS
PROGRAM SELECTION 05
FRAMEWORK
APPROACH & 06
PRIORITIZATION
PROGRAM 07
DESCRIPTIONS
SAN JOSE 0 8
BACKGROUND
A MESSAGE
FROM OUR DIRECTOR
San José Clean Energy was created in 2017 with the goal of bringing Like the rest of the Bay Area, income inequality is rising steadily, more renewable power options at competitive prices to San José. By and many of our communities are disproportionately burdened taking control of our power supply, we're making progress towards by environmental pollution. As San José does more to ensure meeting our Climate Smart San José greenhouse gas reduction that low-income residents and disadvantaged communities goals while pursuing local priorities like equity and affordability. In have greater access to the benefits of our tech-centered addition to a cleaner power mix, our community benefits from local economy, SJCE's programs are designed to increase equity and and transparent decision-making. Local advocates and leaders were access to the benefits of renewable energy and electrification. imperative to our establishment, and the people who live, work, and play in San José continue to guide our organization's mission. We look forward to witnessing the impacts of SJCE programs, such as more equitable access to clean air, affordable electric The Capital of Silicon Valley is home to over 1 million people and has vehicles, and resilient home energy systems. Increasing the been shaped by a rich history of immigration and innovation. From benefits of local clean energy will create stronger ties with our Downtown to Alum Rock, the Rose Garden to Evergreen, and Willow community and foster positive change that can transcend Glen to Santa Teresa, diversity permeates every aspect of life in San generations.
José. Ethnic and cultural diversity strengthen the fabric of our city. - Lori Mitchell, Director of San José Clean Energy PAGE 1 POK!
BOX ORACE
INTRODUCTION
San José Clean Energy (SJCE) is the City of San Jose's new The focus of this document is to outline a roadmap and electricity supplier, providing residents and businesses with vision of the types of customer programs SJCE will renewable power options at competitive rates since February evaluate and choose. The Programs Roadmap aims to be a 2019. Operated by the City of San Jose's Community Energy publicly facing document that will eventually be presented Department, SJCE is governed by the San José City Council. to and approved by San José City Council.
SJCE is a part of a proven model of locally controlled electricity providers, known as Community Choice Aggregators (CCA). Included in this roadmap are:
SJCE, along with the 10 CCAs in Northern California, pride themselves on not only providing cleaner and more affordable • References to other CCA program strategies electricity, but also in their ability to reinvest operational • Intended alignment with City climate action plans surpluses into the community through customer programs. • Recommended program areas of focus • Recommended process for selecting programs
• Programs under consideration and their prioritization ... PAGE 2
ROADMAP INPUT THUS FAR
The graphic below depicts the key Programs Roadmap input received thus far and input expected in the future.
In the Clean Energy Community Advisory Commission and Transportation and Environment Committee reviews, two topics were agreed upon: 1) Program Guiding Principles (page 12) and 2) Program Areas (page 9). In addition to these reviews, SJCE has conducted numerous forms of community outreach including multi-language focus groups, online surveys, community presentations, and commercial and industrial customer interviews. The RMI/WRI-led workshop helped fine tune remaining key topics to update the October 2020 Transportation and Environment Committee and subse- quent City Council presentations of the Programs Roadmap. (Planned)
2019 January 2020 March 2020 July 2020 October 2020 February 2021 Multi-language Clean Energy City of San José City of San José Focus Groups, Community Transportation RMI/WRI Transportation San José
Surveys, Advisory and Roadmap and
City Council
Community Commission Environment Workshop Environment
Presentations Committee Committee
PAGE 3
02 CCA PROGRAM
LANDSCAPE
Butte C
CCA PROGRAMS BUTTE
COUNTY
LAKE
COUNTY
All nine counties in the San Francisco Bay Area now have Winters operating CCAs; therefore, there are numerous CCA programs Sonoma Clean Power
for SJCE to learn from and benchmark against. In general, EAST BAY
SAN JOAQUIN COMMUNITY
COUNTY ENERGY
California CCAs have focused on programs that reduce
Pleasanton Tracy
greenhouse gas emissions (GHGs), increase electrical load Newark through increased electrification, and/or reduce energy CLEAN ENERGY procurement costs. Most programs have focused on vehicle SILICON VALLEY
CLEAN ENERGY
electrification due to the large percentage of GHG emissions • Monterey Bay Community Power FRESNO
Del Rey Oaks
from the transportation sector and electrical load growth COUNTY opportunities. The second priority of CCA programs in our region has been focused on home and building electrification to accelerate the transition from natural gas to electrical •SAN LUIS OBISPO COUNTY
appliances and equipment. Finally, Bay Area CCAs are Morro Bay C increasingly focused on distributed energy resources (DERs) and resiliency.
Bay Area CCAs program choices and strategies have provided CCA Program Strategies:
useful input toward SJCE's selection of program areas
• Sonoma Clean Power
(section 4) and programs under consideration (section 6). The • Silicon Valley Clean Energy
experience, impact, and lessons learned from Bay Area CCAs' • East Bay Community Energy programs will continuously feed into SJCE's Programs • Central Coast Community Energy Roadmap and program designs. This is the case for the • Clean Power Alliance emerging set of CCA programs focused on DERs and
resiliency.
PAGE 5
03 SJCE PROGRAM
STRATEG C
ALIGNMENT
As a department of the City of San José, maintaining
alignment between SJCE programs and Climate Smart
San José is important.
CLIMATE SMART SAN JOSE IS SJCE'S GUIDING PROGRAM STRATEGY The following figure illustrates how SJCE fits within Climate Smart San José as well as the related strategies (in yellow dashed boxes) SJCE's programs will address within the Climate Smart Plan.
A Framework For Action: Nine Strategies in Three Pillars ...
Pilar 1 Pilar 2 Pilar 3
PILLARS of
A Sustainable &
what A Vibrant City of Connected & An Economically Inclusive City Climate Smart
Focused Growth of Opportunity
residents want City
1.1 3.1 3.2
Densify our city Make homes Create local jobs
Transition to Improve our
to accommodate more efficient in our city to commercial a renewable and affordable
our future reduce vehicle building stock
energy future
neighbors to our families miles traveled
Climate
and water
strategies 2.3
1.2 2.4 3.3
Develop Make
Embrace our Create clean, integrated,
personalized commercial
Californian accessible public goods movement
climate mobility transport clean and
choices
infrastructure efficient
PAGE 7
04 PROGRAM
AREAS
PROGRAM AREAS
Building Vehicle Distributed
Electrification Electrification Energy
Resources
Energy Program-
Resiliency
Efficiency Specific Rates
SJCE will primarily focus on the above program areas, which have been chosen with the Clean Energy Community Advisory Commission. The program area recommendations are based on both other CCAs' experience as well as the program area's connections to Climate Smart San José and SJCE's program guiding principles approved by the City of San José Transportation and Environment Committee on June 3, 2019 (Section 5).
PAGE 9
PROGRAM AREA DESCRIPTIONS
• • . ••••
• Vehicle Electrification: Programs focused on accelerating the conversion of all vehicle types to an electrified version.
• Building Electrification: Programs supporting the conversion of homes and buildings from gas and electricity powered to solely electricity powered.
• Distributed Energy Resources: DER programs include any customer side of the utility meter resources such as solar, battery storage, and demand response. • Energy Efficiency: Programs that help reduce customer energy usage and costs either through equipment upgrades or building envelope improvements.
• Resiliency: Programs to provide back-up power or to sustain power in the event of a power outage or other electric service disruption. Resiliency programs often rely on distributed, customer side of the utility meter resources to sustain power. • Program-Specific Rates: Programs designed to offer special rates to select customer groups to either incentivize energy-use behavior or to support adoption of clean energy technologies.
PAGE 10
05 PROGRAM
SELECTION
FRAMEWORK
PROGRAM SELECTION FRAMEWORK
SJCE staff has developed a program selection framework, based on the program guiding principles approved by the City of San José Transportation and Environment Committee on June 3, 2019, and used it to help guide selection of the future programs discussed later in this roadmap.
Program Guiding Principles
• •
• Promote equity and affordability and
support disadvantaged communities.
• Maximize greenhouse gas reduction
opportunities.
• Align with Climate Smart San José.
• Produce customer and community
benefits.
• Maintain or improve the financial status
of SJCE.
PAGE 12
PROGRAM SELECTION PROCESS
Does the program
PROGRAM GUIDING address a majority of
PRINCIPLES CHECK the guiding principles?
PROGRAM Can the program be scored?
SCORING What does the score tell us?
EQUITY REVIEW What is the program's impact
AND ANALYSIS on equity considerations?
→
PROVIDE Evaluate,
RECOMMENDATIONS compare and select.
PAGE 13
PROGRAM SCORING
During the program scoring step of the proposed program selection process, SJCE will quantitatively evaluate a program based on the following list of metrics that align with SJCE program guiding principles.
Metric Description
Equity Options include:
1) # of participants in and % of low to middle-income
communities able to access the program
2) % of program funding
directed to disadvantaged and low-income communities
3) % change in energy burden
Emissions Impact Lifetime metric tons (MT) of carbon dioxide equivalent (CO2e) reduced GHG Cost Lifetime $ spent per metric tons (MT) of carbon dioxide equivalent Effectiveness (CO2e) reduced
Program Cost Program net present value (NPV)
Effectiveness
Community Benefits Benefits Include:
1) Reduces air pollutants
2) Saves customer money (at least 5% over lifetime)
3) Leads to Local Job Growth
4) Educates and Creates Awareness of Climate Solutions
PAGE 14
EQUITY REVIEW AND
RECOMMENDATIONS
The equity review step will incorporate the City's
work in developing an equity tool and process.
This step will serve as a checkpoint to ensure the
program is considering equity impacts.
• Desired Results
2 • Data Analysis
3 • Community Engagement
4 • Strategies for Racial Equity
• Implementation Plan
5 • Communications and Accountability
The final step will be to evaluate and compare
information collected from previous steps to
arrive at a final staff recommendation.
06 PROGRAM
APPROACH
PRIORITIZATION
NEAR TERM PROGRAMS LEVERAGING
EXTERNAL FUNDING
Prior to SJCE reaching financial operating targets, near term programs will be pursued. These are divided into programs that leverage external or matched funding as is shown below and programs that focus on education and outreach as shown in the next page. These near term programs did not go through the full program selection process, but went through the first step of the process, the program guiding principles check.
DISTRIBUTED
VEHICLE
ENERGY EFFICIENCY ENERGY
ELECTRIFICATION
RESOURCES
California
Disadvantaged Electric Vehicle
Energy Efficiency Community Green Infrastructure
Programs Tariff Project (CALeVIP)
California Public Utilities Commission (CPUC) Funded California Energy Commission (CEC) Co-Funded
PAGE 17
NEAR TERM EDUCATION AND OUTREACH PROGRAMS
DISTRIBUTED
BUILDING VEHICLE
ENERGY RESILIENCY
ELECTRIFICATION ELECTRIFICATION
RESOURCES
Heat Pump Low-Income Medically
Low-Income
Water Heater Program Vulnerable
EV Workshops
Workshops Promotion Outreach
BayREN/CPUC Education - SunShares
Local EV
Program Website, Solar +
Influencer
Promotion Events Storage
Induction
EV Website
Cooktop
Enhancement
Program
PAGE 18
FUTURE PROGRAMS TOPICS
Guided by the benchmarking of CCA programs and the input from the SJCE Programs Roadmap workshop, SJCE has developed a list of topics for future programs. The timing of future programs is based on the timing for SJCE to attain adequate operating reserve levels. This time frame is somewhat uncertain and could vary from 2-5 years depending on multiple regulatory and legislative outcomes.
PROGRAM- DISTRIBUTED
BUILDING VEHICLE
SPECIFIC ENERGY RESILIENCY
ELECTRIFICATION ELECTRIFICATION
RATES RESOURCES
Low-Income Demand Medically
Heat Pumps Discounts Used EV's Vulnerable
Response
Backup Power )
Electrical Panel Discounted Off- Fleet Energy Solar +
Upgrades Peak Electrification Storage Storage
Low-Income Charging Community
Home Retrofits Infrastructure Solar
E-Bikes
PAGE 19
OLG
SJCE will continuously invite stakeholder feedback
and additional analysis to shape, add to, or change
the list of future programs. The next section
provides detailed descriptions of all programs
under consideration that address the program
topics introduced in the previous page.
07 PROGRAM ENERGY FROM WATER, WING ANG SUN
DESCRIPTIONS
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NEAR TERM PROGRAMS
Energy Efficiency Programs Disadvantaged Community Green Tariff As a CCA, SJCE may apply to become an administrator of Funded by State greenhouse gas allowances revenues energy efficiency programs funded by Public Purpose with oversight by the CPUC, the program enables income Programs charges, with oversight from the CPUC. This qualified residential customers in Disadvantaged program follows the CPUC's 'elect to administer' Communities (DACs) who may be unable to install solar pathway, and SJCE's programs will be tailored to the on their roof to benefit from utility scale clean energy and specific needs of San José residents and businesses to receive a 20% bill discount. Participants would receive reduce energy usage and save money. This program is energy from a newly constructed solar project located in also aligned with actions related to Climate Smart a DAC area. This program is aligned with actions strategy 2.2. This program will be brought to City related to Climate Smart strategy 1.1. This program will Council for formal approval in late 2020-early 2021. be brought to City Council for formal approval in late 2020.
Electric Vehicle Charging Infrastructure
Incentives
The California Electric Vehicle Infrastructure Project
(CALeVIP) program was approved by City Council in 2019
and incentivizes the installation of electric vehicle charging stations. The program will launch in December 2020 and
aims to drive emission reductions through vehicle
• ...
electrification and aligns with Department of
Transportation's Electric Mobility Roadmap and Climate
Smart strategy 2.3. PAGE 22
NEAR TERM EDUCATION AND OUTREACH PROGRAMS
Distributed Energy Resources: Vehicle Electrification: Passenger Vehicles Residential Rooftop Solar
Staff recommends education and outreach activities focused To continue momentum towards Climate Smart San José's on passenger vehicle electrification that focus on the price 1 GW Solar City objective, SJCE will engage in activities to competitiveness of EVs when compared to conventional gas vehicles due to the rebates and incentives available and to expand access and awareness of residential rooftop solar, highlight the significant benefits in the form of fuel savings with special attention and focus on low-income communities along with lower vehicle maintenance costs. that have not adopted solar systems at the pace of the rest of the city. Below are a list of activities SJCE recommends in the near term:
Below are a list of activities SJCE will explore in the near term: • Facilitate and/or host workshops on electric vehicles with a focus on low-income communities.
• Promotion of existing low-income focused programs • Identify local "influencers" in communities with low such as Disadvantaged Community Single-Family adoption rates to promote and broadcast benefits of Affordable Solar Home (DAC-SASH) and Solar on driving an electric vehicle. • Make continuous updates and improvements to
Multifamily Affordable Housing (SOMAH) to San José
residents and property owners. www.sanjosecleanenergy.org/ev, which is translated • Education of customers on rooftop solar through SJCE's into Spanish and Vietnamese, to serve as a community informational resource on EVs.
website and community events.
=D ....... • • •
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NEAR TERM EDUCATION AND OUTREACH PROGRAMS
Building Electrification - Residential Resiliency
SJCE recommends education and outreach to accelerate SJCE believes it will be important to evaluate opportunities home electrification with a focus on driving adoption of Heat to strengthen resiliency efforts in the community to prepare Pump Water Heaters (HPWH) in partnership with CCAs in the for future PG&E power shutoff events. Below are a list of region as well as State agencies like the CEC. A key barrier activities SJCE recommends in the near term:
toward greater HPWH adoption revolves around contractor and distributor awareness and training. • Partner with the Silicon Valley Independent Living Center to help promote the Disability Disaster Access
Below is a list of recommended near term programs: and Resources program that supports residents that rely on power to operate life-sustaining medical devices and • Explore partnerships with other CCAs to create are vulnerable to PG&E power shutoff events. workshops or informational kits for building
contractors on HPWHs. Partner with Bay Area SunShares to promote discounted •
• Promote and broadcast available rebates and solar + storage and energy storage systems targeted incentives through BayREN and CEC/CPUC's BUILD towards San José residents living in forecasted PG&E and TECH program. power shutoff areas.
• • • •
• Extend or build on the Environmental Services
Department electric induction cooktop program.
PAGE 24
FUTURE PROGRAMS IDEAS: BUILDING
ELECTRIFICATION & PROGRAM-SPECIFIC RATES
Heat Pump Water Heater Program Low-Income Home Upgrades Contractor or distributor incentive towards purchase of single Annual supporting fund for City of San José Housing family heat pump water heater to replace a gas water heater. Department's Critical Home Repair program to go towards electrifying water heaters or upgrading electrical panels in low-income qualified homes.
CARE Customer Discount
Increased rate discount to current CARE customers and
low-income customers that do not qualify for CARE.
. . . . • •
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FUTURE PROGRAM IDEAS: VEHICLE ELECTRIFICATION
Used EV Incentive Multi-Family Dwelling (MUD) EV Charging Infrastructure Technical Assistance
Based on Peninsula Clean Energy's program, work with a
third party to offer down payment incentive and financial Offer free technical assessment for MUD property owners on mentoring for low-income qualified residents to purchase upgrades, investments, and incentive opportunities to install a used EV. EV charging stations.
Electric School Bus Incentive
Medium-Heavy Duty Fleet Electrification
Offer incentive to San José school districts towards purchase Support small business fleets through either incentives to of each electric bus. reduce the upfront costs of electrifying fleet vehicles, or technical assistance/incentives to support installation of charging infrastructure for electric fleets.
• •
PAGE 26
FUTURE PROGRAM IDEAS: VEHICLE ELECTRIFICATION
E-Bike Incentive Commercial Lawn Mower Electrification Incentives Point-of-purchase incentive toward e-bike in partnership Incentive program to campuses and small landscaping with local bicycle shops. businesses to electrify commercial sized lawn mowers.
Offer rebate per electric lawn mower.
EV Ride and Drives
Host EV Ride and Drives in downtown San José, low
income communities, and on corporate campuses to
educate, promote, and spur EV adoption.
•
PAGE 27
DONE
WAY
COOLING
FUTURE PROGRAM IDEAS: DISTRIBUTED
ENERGY RESOURCES & RESILIENCY
10U3N3
Residential Demand Response Program Energy Storage for Resiliency, Resource Adequacy
Leverage technologies such as smart thermostats or home EV charging to reduce energy consumption during peak Based on the joint program of East Bay Community events and reduce SJCE procurement and RA costs. Energy, Silicon Valley Clean Energy, and Peninsula Clean Energy, work with customer-sited battery storage aggregators to seek existing and new battery systems to provide both Medically Vulnerable Customer Backup Power capacity to satisfy resource adequacy requirements and support increased resilience in San José
Support medically and financially at-risk customers with backup power options to prepare for PG&E power shutoff
events. Program could either be a rebate on a portable
battery, a negotiated discount on a portable battery,
or facilitation support to receive SGIP incentives.
ED • ••••
PAGE 28
08 SAN JOSE
BACKGROUND
GENERAL INFORMATION
San José is Northern California's largest city.
POPULATION PROVERTY RATE MEDIAN AGE MEDIAN HOUSEHOLD INCOME
1.03M 10% 37 $113,036
NUMBER OF EMPLOYEES MEDIAN PROPERTY VALUE
544,945 $968,500
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics PAGE 30
RACE AND ETHNICITY
Asian and Hispanic or Latino communities make up around 67% of San José's population.
40%
30%
POPULATION SHARE
20%
10%
0 Asian Alone Hispanic or White Alone Two or More Black or African Native Hawaiian Some Other American Indian Latino American & Other Pacific & Alaska Native
Islander Alone
RACE AND ETHNICITY
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics PAGE 31
NON-ENGLISH SPEAKERS AND
FOREIGN-BORN POPULATION
San José has a much higher rate of foreign-born and non-English speaking population than the rest of the US.
Non-English Speakers Foreign-Born Population
MOST COMMON LANGUAGES
1. Spanish 39% 13.7%
224,144 speakers (23.2%)
2. Vietnamese 2017 FOREIGN-BORN POPULATION 2017 FOREIGN-BORN POPULATION
SAN JOSE NATIONAL AVERAGE
98,189 speakers (10.1%)
3. Chinese
68,810 speakers (7.11%)
57.6% of San José citizens are speakers of a As of 2017, 39% of San José residents non-English language, which is more than double (404,000 people) were born outside of the United the national average of 21.9%. States, which is higher than the national average of
13.7%.
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics PAGE 32
POVERTY BY RACE AND ETHNICITY
Hispanic or Latino communities have the highest percentage of low-income residents.
40%
30%
25%
20%
SHARE OF POPULATION IN POVERTY 15%
10%
5%
Hispanic/Latino White Asian Other Black Two or More Native American Pacific Islander
POVERTY BY RACE AND ETHNICITY
Source: https://datausa.io/profile/geo/san-jose-ca/#economy PAGE 33
GREENHOUSE GAS EMISSIONS
While a cleaner electric power mix has caused emissions from buildings to decrease since 2008, emissions from transportation have remained constant as San José's highest source of emissions.
San José city-wide greenhouse gas emissions by sector
8 7
6 Transportation
Millions of • Non-Residental
5 Energy
metric tons
of carbon • Residental Energy
4 dioxide
• Waste
equivalent
3 • Portable
2 • Process &
Fugitive Emissions
1 2008 2014 2017
Source: https://data.prospectsv.org/ghg-emissions/
PAGE 34