PROGRAMS
ROADMAP UPDATE
(D) 2.Transportation & Environment
Committee
March 4, 2024
Zach Struyk, Assistant Director
Kate Ziemba, Senior Environmental Program Manager
Leslie Park, Senior Power Resources Specialist
Marcos Santiago, Power Resources Specialist II
AGENDA • Background • Overview of current
programs
• Program scoring and
community input
• Near-term program
recommendations
1 BACKGROUND
2 PROGRAMS HISTORY & AREAS
Vehicle
Electrification
Building
Electrification
Distributed
Energy
Resources
Energy
Efficiency
ProgramSpecific
Rates
Resiliency
• 2019-2021: stakeholder engagement to develop programs roadmap • 2021: adoption by City Council
3 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 carbon-free
power supply, need to electrify
transportation and buildings to
achieve the goal
• SJCE programs can incentivize
electrification and efficiency
2019 Communitywide Emissions by Sector
(Climate Smart San Jose)
4 CURRENT PROGRAMS
5 Total budgets: $38.5 million over program lifetimes (next 3-10+ years) 80% externally funded
(excludes SJ Cares)
IMPACT OF CURRENT PROGRAMS
6 Electricity savings Greenhouse gas
reductions
Customer savings Installations/ customers
served
California Electric
Vehicle Infrastructure
Project (CALeVIP)
- 875 metric tons CO2 $2,191,000 26 direct current fast chargers, 140 Level 2
chargers
Solar Access - 360 metric tons CO2 $395,500 Approximately 840 participants
Home Appliance
Savings Program
238,000 kilowatt-hours 87 metric tons CO2 $199,500 65 appliances installed, 140 smart power strips, and 167
smart thermostats
Energy Efficient
Business Program
17,634,000 kilowatthours990 metric tons CO2 $6,339,000 574 businesses served Peak Rewards 8,000 kilowatt-hours 3 metric tons CO2 $10,000 9 participants, 13 enrolled SJ Cares - - $19,900,000 Approximately 70,000
participants
Total 17,880,000 kilowatthours2,315 metric tons CO2 $29,036,500 - Historical impact through 2023
NEAR-TERM PROGRAM
RECOMMENDATIONS
7 PROGRAM SCORING
• Staff developed a scoring framework to help prioritize programs • Weighted metrics (highest to lowest):
• Greenhouse gas emissions reductions
• Investment in priority communities
• Customer savings
• Peak demand reductions
• Fiscal impact for SJCE
• Qualitative considerations:
• Contribution to personal and community resiliency
• Ensuring all customer groups are served
• Availability of external funding
8 COMMUNITY INPUT
Key takeaways from multilingual community survey:
Next step: multilingual listening sessions
9 Most important energy
issues:
1. Cost of energy bills
2. Power outages
3. Climate change
Number one reason folks are
not interested in making energy
upgrades is cost.
Over half of homeowner
respondents were interested in a
program that rewards charging an
EV at different times of day.
Most renters would not consider
purchasing an EV if they could not
charge at home.
Many renters have not talked to
their landlords about energy
upgrades they are interested in.
NEAR-TERM PROGRAM RECOMMENDATIONS
10 Total cost through Fiscal Year 2024-2025: $12M
includes $5.5M of existing external funding
excludes SJ Cares
VEHICLE ELECTRIFICATION
Program Description
City of San
José Fleet
Electrification
Work with a consultant to produce a master plan guiding zeroemission vehicle procurement and the installation of accompanying chargers at City properties for fleet and public use, in partnership with the Departments of Public Works and Transportation.
Residential
super off peak
rate pilot
Create a new electrification rate plan with lower residential electricity rates from 9 a.m. to 2 p.m. to incentivize EV charging during the middle of the day.
Telematicsbased
managed
charging
Shift EV charging for 500 residential EVs from evening peak and overnight to daytime, when electricity is cleaner and cheaper.
11 BUILDING ELECTRIFICATION
ProgramDescription
Heat pump
incentive
Offer residential customers incentives to install heat pump water heaters and heat pump HVAC systems, with additional incentive adders for low-income customers.
On-bill
financing pilot
Offer zero-interest loans to residential customers who install heat pump water heaters and/or heat pump HVAC systems.
Loans will be repaid through a charge on the customers’ monthly electricity bill.
Workforce
development
Collaborate with IBEW and industry consultants to develop programs to improve workforce development. May include
scholarships for pre-apprenticeship or apprenticeship
programs or sponsoring training events.
12 DISTRIBUTED ENERGY RESOURCES PROGRAMS
13 ProgramDescription
Demand
response
expansion
Expand SJCE’s demand response efforts to include options for both residential and commercial customers, as well as to provide additional options for participation with smart thermostats, electric vehicle smart chargers, and batteries.
Solar
Access
expansion
Leverage additional energy from the West Tambo Solar
Project to serve an additional 150 residents under the Solar Access program, providing a 20% bill discount and 100%
renewable energy.
Battery
storage
incentive
Develop an incentive program for residential or commercial customers to install battery storage and allow SJCE to tap into their battery for daily load shifting and grid emergencies.
PROGRAM-SPECIFIC RATES
ProgramDescription
Emergency Bill
Relief (full
program)
In February 2024, Council approved a pilot to provide funds to 100 customers for overdue bill payment to households at immediate or potential future risk of disconnection. In FY 2024-2025 recommend expanding this to 1,000 customers.
14 PROJECTED ANNUAL IMPACT OF RECOMMENDED PROGRAMS
15 FUTURE PROGRAMS
• Low-income EV Purchase Incentive and/or Interest Rate Buydown Pilot • Low-income EV Charging Card Pilot
• Workplace Charger Program
• Low-income E-bike Rebate
• Energy Advisor Concierge Service
• Water Heater Loaner Pilot
• Automated Device Shop
• If awarded, implementation of grant funding for public EV charging stations; commercial battery storage incentives; residential building electrification, solar and storage
16 QUESTIONS?
• Recommendation: Accept this
update on SJCE’s Programs
Roadmap and recommend this
item for full Council
consideration at the April 9,
2024, City Council meeting.
• Staff
• Zach Struyk, Assistant Director
• Kate Ziemba, Senior
Environmental Program
Manager
• Leslie Park, Senior Power
Resources Specialist
• Marcos Santiago, Power
Resources Specialist II
17 EXTRA SLIDES
18 PROGRAMS ROADMAP HISTORY
Development
Council
accepts
Programs
Roadmap
Status updates
2019-2021 March 2021 Ongoing
• Stakeholder engagement:
residents, businesses, industry
experts, Clean Energy
Community Advisory
Commission, and Transportation
& Environment Committee
• Every spring to
Transportation &
Environment Committee
19 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
20 SJCE PROGRAMS ALIGNED WITH CLIMATE SMART
SJCE linked
strategies in red
21 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
• Still building towards 180 days of
operating reserves
22 ENERGY EFFICIENCY PROGRAMS
• Launched September 2022 through end of 2024
• $5.6 million budget, CPUC-funded
• Estimated 2,800 megawatt-hours annual savings
23 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
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
24 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
25 DISTRIBUTED ENERGY RESOURCES: DEMAND
RESPONSE
26 • 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)