PROGRAMS
ROADMAP
02 01
03 04
05 06
07 Introduction
cca Program
Landscape
Program Strategic
alignment
program
areas
program Selection
Framework
approach &
prioritization
program
Descriptions
San josE
background 08
A message
from our director
San José Clean Energy was created in 2017 with the goal of bringing more renewable power options at competitive prices to San José. By taking control of our power supply, we’re making progress towards meeting our Climate Smart San José greenhouse gas reduction goals while pursuing local priorities like equity and affordability. In addition to a cleaner power mix, our community benefits from local and transparent decision-making. Local advocates and leaders were imperative to our establishment, and the people who live, work, and play in San José continue to guide our organization’s mission.
The Capital of Silicon Valley is home to over 1 million people and has been shaped by a rich history of immigration and innovation. From Downtown to Alum Rock, the Rose Garden to Evergreen, and Willow Glen to Santa Teresa, diversity permeates every aspect of life in San José. Ethnic and cultural diversity strengthen the fabric of our city.
Like the rest of the Bay Area, income inequality is rising steadily, and many of our communities are disproportionately burdened by environmental pollution. As San José does more to ensure that low-income residents and disadvantaged communities have greater access to the benefits of our tech-centered economy, SJCE’s programs are designed to increase equity and access to the benefits of renewable energy and electrification.
We look forward to witnessing the impacts of SJCE programs, such as more equitable access to clean air, affordable electric vehicles, and resilient home energy systems. Increasing the benefits of local clean energy will create stronger ties with our community and foster positive change that can transcend generations.
- Lori Mitchell, Director of San José Clean Energy
page 1
Introduction
San José Clean Energy (SJCE) is the City of San José’s new electricity supplier, providing residents and businesses with renewable power options at competitive rates since February 2019. Operated by the City of San José’s Community Energy Department, SJCE is governed by the San José City Council.
SJCE is a part of a proven model of locally controlled electricity providers, known as Community Choice Aggregators (CCA).
SJCE, along with the 10 CCAs in Northern California, pride themselves on not only providing cleaner and more affordable electricity, but also in their ability to reinvest operational surpluses into the community through customer programs.
The focus of this document is to outline a roadmap and
vision of the types of customer programs SJCE will
evaluate and choose. The Programs Roadmap aims to be a
publicly facing document that will eventually be presented to and approved by San José City Council.
Included in this roadmap are:
• References to other CCA program strategies
• Intended alignment with City climate action plans
• Recommended program areas of focus
• Recommended process for selecting programs
• Programs under consideration and their prioritization page 2
GE 3
Roadmap Input Thus Far
Clean Energy
Community
Advisory
Commission
City of San José
Transportation
and
Environment
Committee
RMI/WRI
Roadmap
Workshop
San José
City Council
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.
January 2020 March 2020 July 2020
(Planned)
February 2021
page 3
Multi-language
Focus Groups,
Surveys,
Community
Presentations
City of San José
Transportation
and
Environment
Committee
2019 October 2020
CCA Program
02 Landscape
All nine counties in the San Francisco Bay Area now have operating CCAs; therefore, there are numerous CCA programs for SJCE to learn from and benchmark against. In general, California CCAs have focused on programs that reduce
greenhouse gas emissions (GHGs), increase electrical load through increased electrification, and/or reduce energy procurement costs. Most programs have focused on vehicle electrification due to the large percentage of GHG emissions from the transportation sector and electrical load growth 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 appliances and equipment. Finally, Bay Area CCAs are
increasingly focused on distributed energy resources (DERs) and resiliency.
Bay Area CCAs program choices and strategies have provided useful input toward SJCE’s selection of program areas
(section 4) and programs under consideration (section 6). The experience, impact, and lessons learned from Bay Area CCAs’ programs will continuously feed into SJCE’s Programs
Roadmap and program designs. This is the case for the
emerging set of CCA programs focused on DERs and
resiliency.
CCA Program Strategies:
• Sonoma Clean Power
• Silicon Valley Clean Energy
• East Bay Community Energy
• Central Coast Community Energy
• Clean Power Alliance
CCA Programs
page 5
SJCE Program
Strategic
03 As a department of the City of San José, maintaining alignment between SJCE programs and Climate Smart
San José is important.
Alignment
Pilar 2 Pilar 3
Climate Smart San JosE is SJCE’s Guiding Program Strategy Climate
and water
strategies
PILLARS of
what
residents want
A Vibrant City of Connected &
Focused Growth
Pilar 1
An Economically Inclusive City
of Opportunity
A Sustainable &
Climate Smart
City
Transition to
a renewable
energy future
Embrace our
Californian
climate
Densify our city
to accommodate
our future
neighbors
Make homes
more efficient
and affordable
to our families
Create clean,
personalized
mobility
choices
Develop
integrated,
accessible public
transport
infrastructure
Create local jobs
in our city to
reduce vehicle
miles traveled
Improve our
commercial
building stock
Make
commercial
goods movement
clean and
efficient
A Framework For Action: Nine Strategies in Three Pillars
2.42.3 2.1 2.21.1
1.2 3.23.1
3.3 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.
page 7
Program
areas
04 Building
Electrification
Energy
Efficiency
Program-
Specific Rates Resiliency
Distributed
Energy
Resources
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).
Program Areas
Vehicle
Electrification
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
Program
framework
selection
05 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.
• 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.
Program Guiding Principles
page 12
Program Selection Process
PROVIDE
RECOMMENDATIONS
EQUITY REVIEW
AND ANALYSIS
PROGRAM
SCORING
PROGRAM GUIDING
PRINCIPLES CHECK
Does the program
address a majority of
the guiding principles?
Can the program be scored?
What does the score tell us?
What is the program’s impact
on equity considerations?
Evaluate,
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
Effectiveness
Lifetime $ spent per metric tons (MT) of carbon dioxide equivalent (CO2e) reduced
Program Cost
Effectiveness
Program net present value (NPV)
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
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.
Equity Review and
Recommendations
The final step will be to evaluate and compare
information collected from previous steps to
arrive at a final staff recommendation.
• Desired Results
• Data Analysis
• Community Engagement
• Strategies for Racial Equity
• Implementation Plan
• Communications and Accountability
1 2
3 4
5 6
program
Prioritization
06 approach
Elect to Administer
Energy Efficiency
Programs
Disadvantaged
Community Green
Tariff
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.
ENERGY EFFICIENCY
DISTRIBUTED
ENERGY
RESOURCES
VEHICLE
ELECTRIFICATION
NEAR TERM PROGRAMS Leveraging
External Funding
California Public Utilities Commission (CPUC) Funded California Energy Commission (CEC) Co-Funded
page 17
California
Electric Vehicle
Infrastructure
Project (CALeVIP)
Medically
Vulnerable
Outreach
Low-Income
EV Workshops
near term Education and Outreach Programs
RESILIENCY
Local EV
Influencer
EV Website
Enhancement
Heat Pump
Water Heater
Workshops
BayREN/CPUC
Program
Promotion
Induction
Cooktop
Program
SunShares
Solar +
Storage
Low-Income
Program
Promotion
Education -
Website,
Events
BUILDING
ELECTRIFICATION
page 18
DISTRIBUTED
ENERGY
RESOURCES
VEHICLE
ELECTRIFICATION
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.
BUILDING
ELECTRIFICATION
Heat Pumps
DISTRIBUTED
ENERGY
RESOURCES
RESILIENCY
Low-Income
Discounts
PROGRAM-
SPECIFIC
RATES
VEHICLE
ELECTRIFICATION
page 19
Low-Income
Home Retrofits
Electrical Panel
Upgrades
Discounted Off-
Peak
Used EV’s
Fleet
Electrification
Charging
Infrastructure
E-Bikes
Demand
Response
Energy
Storage
Community
Solar
Medically
Vulnerable
Backup Power
Solar +
Storage
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.
program
descriptions
07 with De partment of Transport ation’
Roadmap and Climate Smart st rategy 2.3. GE 22
As a CCA, SJCE may apply to become an administrator of
energy efficiency programs funded by Public Purpose
Programs charges, with oversight from the CPUC. This
program follows the CPUC’s ‘elect to administer’
pathway, and SJCE’s programs will be tailored to the
specific needs of San José residents and businesses to
reduce energy usage and save money. This program is
also aligned with actions related to Climate Smart
strategy 2.2. This program will be brought to City
Council for formal approval in late 2020-early 2021.
Electric Vehicle Charging Infrastructure
Incentives
NEAR TERM programs
Disadvantaged Community Green Tariff Energy Efficiency Programs Funded by State greenhouse gas allowances revenues
with oversight by the CPUC, the program enables income
qualified residential customers in Disadvantaged
Communities (DACs) who may be unable to install solar
on their roof to benefit from utility scale clean energy and receive a 20% bill discount. Participants would receive energy from a newly constructed solar project located in a DAC area. This program is aligned with actions
related to Climate Smart strategy 1.1. This program will be brought to City Council for formal approval in late
2020.
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
Staff recommends education and outreach activities focused on passenger vehicle electrification that focus on the price competitiveness of EVs when compared to conventional gas vehicles due to the rebates and incentives available and to highlight the significant benefits in the form of fuel savings along with lower vehicle maintenance costs.
Below are a list of activities SJCE recommends in the near term:
near term education and outreach programs
To continue momentum towards Climate Smart San José’s
1 GW Solar City objective, SJCE will engage in activities to expand access and awareness of residential rooftop solar, with special attention and focus on low-income communities that have not adopted solar systems at the pace of the rest of the city.
Below are a list of activities SJCE will explore in the near term:
Distributed Energy Resources:
Residential Rooftop Solar
• Promotion of existing low-income focused programs
such as Disadvantaged Community Single-Family
Affordable Solar Home (DAC-SASH) and Solar on
Multifamily Affordable Housing (SOMAH) to San José
residents and property owners.
• Education of customers on rooftop solar through SJCE’s website and community events.
Vehicle Electrification: Passenger Vehicles
• Facilitate and/or host workshops on electric vehicles with a focus on low-income communities.
• Identify local “influencers” in communities with low
adoption rates to promote and broadcast benefits of
driving an electric vehicle.
• Make continuous updates and improvements to
www.sanjosecleanenergy.org/ev, which is translated
into Spanish and Vietnamese, to serve as a community
informational resource on EVs.
page 23
Resiliency
SJCE believes it will be important to evaluate opportunities to strengthen resiliency efforts in the community to prepare for future PG&E power shutoff events. Below are a list of activities SJCE recommends in the near term:
• Partner with the Silicon Valley Independent Living
Center to help promote the Disability Disaster Access
and Resources program that supports residents that rely on power to operate life-sustaining medical devices and are vulnerable to PG&E power shutoff events.
• Partner with Bay Area SunShares to promote discounted solar + storage and energy storage systems targeted
towards San José residents living in forecasted PG&E
power shutoff areas.
Building Electrification - Residential
SJCE recommends education and outreach to accelerate
home electrification with a focus on driving adoption of Heat Pump Water Heaters (HPWH) in partnership with CCAs in the region as well as State agencies like the CEC. A key barrier toward greater HPWH adoption revolves around contractor and distributor awareness and training.
Below is a list of recommended near term programs:
near term education and outreach programs
• Explore partnerships with other CCAs to create
workshops or informational kits for building
contractors on HPWHs.
• Promote and broadcast available rebates and
incentives through BayREN and CEC/CPUC’s BUILD
and TECH program.
• 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
Contractor or distributor incentive towards purchase of single family heat pump water heater to replace a gas water heater.
CARE Customer Discount
Increased rate discount to current CARE customers and
low-income customers that do not qualify for CARE.
Low-Income Home Upgrades
Annual supporting fund for City of San José Housing
Department’s Critical Home Repair program to go towards electrifying water heaters or upgrading electrical panels in low-income qualified homes.
page 25
Future Program Ideas: Vehicle Electrification
Used EV Incentive
Based on Peninsula Clean Energy’s program, work with a
third party to offer down payment incentive and financial mentoring for low-income qualified residents to purchase a used EV.
Medium-Heavy Duty Fleet Electrification
Support small business fleets through either incentives to reduce the upfront costs of electrifying fleet vehicles, or technical assistance/incentives to support installation of charging infrastructure for electric fleets.
Electric School Bus Incentive
Offer incentive to San José school districts towards purchase of each electric bus.
Multi-Family Dwelling (MUD) EV Charging
Infrastructure Technical Assistance
Offer free technical assessment for MUD property owners on upgrades, investments, and incentive opportunities to install EV charging stations.
page 26
Future Program Ideas: Vehicle Electrification
E-Bike Incentive
Point-of-purchase incentive toward e-bike in partnership with local bicycle shops.
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.
Commercial Lawn Mower Electrification Incentives
Incentive program to campuses and small landscaping
businesses to electrify commercial sized lawn mowers.
Offer rebate per electric lawn mower.
page 27
Future Program Ideas: Distributed
Energy Resources & Resiliency
Energy Storage for Resiliency,
Resource Adequacy
Based on the joint program of East Bay Community
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 capacity to satisfy resource adequacy requirements and
support increased resilience in San José. Medically Vulnerable Customer Backup Power 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.
Residential Demand Response Program
Leverage technologies such as smart thermostats or home EV charging to reduce energy consumption during peak
events and reduce SJCE procurement and RA costs.
page 28
San JosE
background
08 PAGE 30
POPULATION
NUMBER OF EMP
LOYEES
POVERTY RATE MEDIAN AGE
MEDIAN PROPERTY VALUE
MEDIAN HOUSEHOLD INCOME
general information
San José is Northern California’s largest city.
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics
POPULATION PROVERTY RATE
NUMBER OF EMPLOYEES MEDIAN PROPERTY VALUE
MEDIAN AGE MEDIAN HOUSEHOLD INCOME
0 Asian Alone Hispanic or
Latino
White Alone Black or African
American
Native Hawaiian
& Other Pacific
Islander Alone
Some Other
Races
American Indian
& Alaska Native
Alone
30%
20%
10%
POPULATION SHARE
PAGE 31
RACE AND ETHNICITY
40%
Asian and Hispanic or Latino communities make up around 67% of San José’s population.
Race and Ethnicity
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics Two or More
Races
Non-English Speakers
MOST COMMON LANGUAGES
1. Spanish
224,144 speakers (23.2%)
2. Vietnamese
98,189 speakers (10.1%)
3. Chinese
68,810 speakers (7.11%)
Foreign-Born Population
39% 13.7%
2017 FOREIGN-BORN POPULATION
SAN JOSE
2017 FOREIGN-BORN POPULATION
NATIONAL AVERAGE
PAGE 32
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.
Source: https://datausa.io/profile/geo/san-jose-ca/#demographics As of 2017, 39% of San José residents
(404,000 people) were born outside of the United
States, which is higher than the national average of
13.7%.
57.6% of San José citizens are speakers of a
non-English language, which is more than double
the national average of 21.9%.
PAGE 33
White Two or More Native AmericanOther Pacific Islander 30%
20%
10%
SHARE OF POPULATION IN POVERTY
POVERTY BY RACE AND ETHNICITY
5%
15%
25%
0 40%
Hispanic or Latino communities have the highest percentage of low-income residents.
Poverty by Race and Ethnicity
Black
Source: https://datausa.io/profile/geo/san-jose-ca/#economy AsianHispanic/Latino
2008 2014 2017
Millions of
metric tons
of carbon
dioxide
equivalent
San José city-wide greenhouse gas emissions by sector
0 Non- Residental
Energy
Residental Energy
Waste
Portable
Process &
Fugitive Emissions
Source: https://data.prospectsv.org/ghg-emissions/
PAGE 34
y sector
tation) have
or.
1 2
3 4
5 6
7 8
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.
Transportation