PROGRAMS
ROADMAP UPDATE
Transportation & Environment
Commitee
March 6, 2023
Zach Struyk, Assistant Director
Kate Ziemba, Senior Environmental Program Manager
Marcos Santiago, Power Resources Specialist II
AGENDA
• Background on Programs Roadmap development
• Status of current programs
• Near-term program recommendations
• Long-term program recommendations
1 BACKGROUND
2 PROGRAMS ROADMAP DEVELOPMENT
Development
Council
accepts
Programs
Roadmap
Status updates
2019-2021 March 2021 Ongoing
• Multilingual workshops,
interviews, surveys, and focus
groups with residents,
businesses, other CCAs, industry
experts, and City departments
• Vetting with Clean Energy
Community Advisory
Commission and Transportation
& Environment Committee
• Every spring to
Transportation &
Environment Committee
3 PROGRAM AREAS
Vehicle
Electrification
Building
Electrification
Distributed
Energy
Resources
Energy
Efficiency
ProgramSpecific
Rates
Resiliency
4 SAN JOSE’S CARBON NEUTRALITY GOAL
• City adopted carbon neutral
by 2030 goal in 2021 and
pathway to carbon
neutrality in 2022
• Beyond providing a carbonfree power supply, need to
electrify transportation and
buildings to achieve the goal
• SJCE programs can
incentivize electrification
2019 Communitywide Emissions by Sector
(Climate Smart San Jose)
5 PROGRAMS FUNDING SOURCES
• Important to leverage external funding for
programs until SJCE builds operating
reserves
• SJCE Reserves Policy: 180 days of operating
expenses
• Resiliency to cushion against volatility in
power markets, PCIA uncertainty, and
regulatory changes
• On track for 180 days of operating
reserves by end of CY 2023
6 STATUS OF CURRENT PROGRAMS
7 CURRENT PROGRAMS
8 Total budgets: $38.5 million over program lifetimes (next 3-10+ years) 80% externally funded
(excludes SJ Cares)
ANNUAL IMPACTS OF CURRENT PROGRAMS
9 Electricity savings Greenhouse gas
reductions
Customer bill
savings
Solar Access - 350 metric tons CO2 $200,000
Home Appliance
Savings Program
110,000 kilowatt-hours 8-29 metric tons
CO2*
$38,000
Energy Efficient
Business
Program
4,959,000 kilowatthours360 metric tons CO2 $1,215,000
SJ Cares - - $5,500,000
Total 5,069,000 kilowatthours718 – 740 metric
tons CO2
$6,953,000
*Depends on the number of electric appliances that will replace natural gas appliances
VEHICLE ELECTRIFICATION
CALeVIP
• Launched Dec 2020
• $14 million for Level 2 and direct current fast charging infrastructure at multifamily, workplace, and public
locations
• 35% of funding in state-defined disadvantaged and lowincome communities • 100 Level 2 and 11 DCFC installed so far
Fast charging hubs pilot
• Approved Nov 2022
• 1-3 DCFC hubs at City-owned sites in neighborhoods
lacking EV charging infrastructure
• Pay-for-performance tolling agreements with developer(s) • Test retail pricing structure to incentivize daytime charging • Estimated online date: early to mid 2024 10
DISTRIBUTED ENERGY RESOURCES:
SOLAR ACCESS
• Launched Nov 2021
• CPUC-funded
• ~840-940 CARE and FERA customers
in neighborhoods with high levels of
pollution receive 20% bill discount and
100% solar from an array in Merced
County
• CARE/FERA: annual income below
250% of federal poverty guidelines
• Fully subscribed
11 ENERGY EFFICIENCY PROGRAMS
• Launched September 2022 through end of 2024
• $5.6 million budget, CPUC-funded
• Estimated 2,800 megawatt-hours annual savings
12 San José Home Appliance Savings Program
• 50-70% discounts on refrigerators, washers,
and dryers through Airport Home Appliance
• Free smart thermostats and plugs
• Eligibility: single-family households in
disadvantaged communities or with
moderate incomes
• Progress:
• 140 smart plugs
• 115 smart thermostats
• 9 appliances
• 2023 expansion: GE and induction cooktops
• Goal: serve 1,058 households
San José Energy Efficient Business Program
• 80-90% rebate on HVAC, refrigeration, and
water heating components
• Eligibility: all businesses, targeted to small and
medium and schools
• Progress:
• 20 businesses served
• 44 businesses & school district in progress
• Goal: serve 300 businesses and 9 schools
PROGRAM SPECIFIC RATES: SJ CARES
• Generation rate discount for CARE
and FERA customers
• ~75,000 customers
• 21% of customers
• January 1, 2023: discount
increased from 5% to 10%
• ~$6 per month
13 NEAR-TERM PROGRAM
RECOMMENDATIONS
14 NEAR-TERM PROGRAM RECOMMENDATIONS
15 Calendar
years 2023
and 2024
VEHICLE ELECTRIFICATION
SJCE is focused on:
1. Managing the additional electric
demand from charging to reduce
greenhouse gas emissions and
improve resiliency
2. Helping ensure equitable EV
adoption and access to charging
infrastructure
16 California Independent System Operator Average Hourly Power Production by Resource Type – 2020
EV CHARGING IN SAN JOSE
• ~30% of new vehicles registered in San
Jose since spring 2022 have been electric
• Most residential charging occurs overnight
• SJCE aims to shift more EV charging to
the middle of the day to reduce emissions,
SJCE’s energy procurement costs, and
customer rates
• Opportunity:
• Nearly 80% of survey respondents work from
home all or part-time
• Approximately 80% of charging occurs at home
• Nearly half of respondents reported that their
workplace has chargers
17 STACKABLE INCENTIVES
18 Low-income Stackable
Incentives
Amount
Federal: Used EV tax credit Up to $4,000
Local: Clean Cars 4 All Up to $9,500
Local: PG&E $4,000
Total used Nissan Leaf* As low as $0
Low-income Stackable
Incentives
Amount
Federal: New EV tax credit Up to $7,500
State: Clean Vehicle Rebate
Program
Up to $7,500
Local: Clean Cars 4 All Up to $9,500
Total new, base model Chevy
Bolt*
$2,095
New EV
Used EV
*Before taxes, fees, and registration
$12,000
$12,000
RECOMMENDED NEAR-TERM VEHICLE
ELECTRIFICATION PROGRAMS AND PILOTS
Program Description
Telematics-based
managed
charging
Shift charging for 500 residential EVs from evening peak and overnight to daytime, when electricity is cleaner and cheaper. Shift 10-12 times per month and during grid emergencies.
EV education
pilot
Test drive events, financial education workshops, and one-on-one assistance applying for incentives targeted to low-adoption neighborhoods, with 3-5 community-based organizations.
EV shopping tool Online multilingual website for comparing lifetime costs and emissions for EVs versus gaspowered cars and finding incentives and nearby chargers.
EV charging
infrastructure
Submit $5 million innovation pilot concept to CPUC to install EV chargers in neighborhoods with low EV adoption and infrastructure.
EV rate plans Explore adjusting commercial EV rate to encourage more daytime charging.
E-bikes Rebate program for CARE and FERA customers.
19 BUILDING ELECTRIFICATION
• Replacing natural gas uses in buildings with electric: heat pump water heaters, heat pump-HVAC, electric cooktops
& electric dryers
• More efficient, safer, healthier, less expensive to operate • Consistent with City’s Building Electrification Framework (May 2022)
• New federal and state programs to incentivize electric appliances:
1. Inflation Reduction Act tax credits
2. Federal High-Efficiency Electric Home Rebate (HEEHR) program: rebates for households <150% area median income
3. CPUC Self-Generation Incentive Program for heat pump water heaters
4. TECH California contractor incentives for heat pump HVAC 20 RECOMMENDED NEAR-TERM SJCE BUILDING
ELECTRIFICATION PROGRAMS
ProgramDescription
Educational
webpages
Build new webpages on heat pump water heaters, heat pump HVACs, and electric dryers and cooktops, including costs, incentives, permits, testimonials, and bill impacts.
Heat pump
program
Leverage $5 million in CPUC program funding for 500 heat pump water heater installations and panel upgrades. Estimated CO2 reductions: 8,200 metric tons over a 15-year heat pump lifetime
Electric cooking
health
education
Educational campaign featuring videos with scientists, chefs, and microinfluencers about electric cooking and the health impacts of natural gas.
Workforce
development
Leverage Silicon Valley Clean Energy’s online contractor training; pay up to $5,000 to San José participants to install a heat pump at their home or business.
21 DISTRIBUTED ENERGY RESOURCES: DEMAND
RESPONSE
22 • Compensating customers who reduce their
usage during events
• CAISO emergencies (demand outstrip supply)
• High power market prices
• High demand
• Types
• Behavioral: people take action to reduce usage
• Automated: wirelessly adjust equipment
(thermostats, EV chargers, smart plugs)
• Load shaping: smoothing demand peaks
(storage, HVAC, EV charging)
RECOMMENDED NEAR-TERM SJCE DISTRIBUTED
ENERGY RESOURCES PROGRAMS
23 ProgramDescription
Demand
Response
Implement demand response programs in four phases, starting with behavioral demand response for targeted commercial customers in summer 2023. Compensate customers for energy savings during energy saving events and grid emergencies while lowering SJCE energy procurement costs.
RECOMMENDED NEAR-TERM SJCE PROGRAMSPECIFIC RATES
ProgramDescription
SJ Cares
Expansion
Work with City and County public assistance agencies to explore expanding automatic enrollment in SJ Cares.
Emergency Bill
Assistance
Provide funds for overdue bill payment to households at risk of falling into homelessness.
24 RECOMMENDED NEAR-TERM SJCE RESILIENCY
PROGRAMS
ProgramDescription
Solar + storage
at critical City
facilities
Work with San José Clean Energy-funded program manager in Public Works to add microgrids to critical City facilities, potentially through a power purchase agreement or feed-in tariff.
25 LONG-TERM PROGRAM RECOMMENDATIONS
26 2025 &
beyond
QUESTIONS?
• Recommendation: Accept
report on SJCE's Programs
Roadmap update.
• Staff
• Zach Struyk, Assistant Director
• Kate Ziemba, Senior
Environmental Program
Manager
• Marcos Santiago, Power
Resources Specialist II
27 EXTRA SLIDES
28 PROGRAM GUIDING PRINCIPLES
1. Maximize greenhouse gas reduction
opportunities
2. Align with Climate Smart San José
3. Promote equity, affordability and
support disadvantaged communities
4. Produce community benefits
5. Maintain or improve the financial
stability of SJCE
29 SJCE PROGRAMS ALIGNED WITH CLIMATE SMART
SJCE linked
strategies in red
30