Decarb Strategy & Programs Roadmap - svcleanenergy.org · 1. Adopt the revised Strategic Plan to...

Decarb Strategy & Programs RoadmapDecember 12, 2018

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Staff Proposal 1. Adopt the revised Strategic Plan to include the proposed 2025 and 2030 greenhouse gas

emissions reduction targets (Attachment 2)

2. Adopt the SVCE Decarbonization Strategy & Programs Roadmap and program briefs (Attachments 3 and 4)

3. Approve the following budget requests and contracts for the first tranche of programs, totaling $6,025,000 over two-year period

Program FY19-FY20 Budget Request Agreements & MOUs

C&I Clean Power Offerings $150k in FY2019

Reach Codes $400k in FY2019 Cost-sharing agreement with

Peninsula Clean Energy for third-

party support (Attachment 5)

All-Electric Showcase Grants $1.5M over two-year period

FutureFit Heat Pump Water Heater $325k over two-year period

EV Infrastructure Strategy & Plan $200k in FY2019

EV Fast Charge Depots $700k over two-year period

Innovation Partnerships (combined with Innovation

Onramp budget request)

MOUs with Prospect Silicon Valley

and Joint Venture Silicon Valley

(Attachments 8 and 9)

Innovation Onramp $1.2M over two-year period Two standardized partnership

agreements (Attachments 6 and 7)

Virtual Power Plant $1.1M over two-year period

Customer Resource Center $350k over two-year period

GHG emissions inventory update $100k in FY2019

Total $6,025,000

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1. How did we get here?

2. What needs to happen for SVCE to achieve deep decarbonization?

3. Proposed Decarb Strategy and Programs Roadmap

Outline

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Outline

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Programs Development Process

• Initial work on programs started in 2017

• Months-long stakeholder engagement process

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SVCE’s Decarb Strategy & Programs Roadmap

Member Agency Working Group

(MAWG)

Customer Program Advisory Group

(CPAG)

C&I Customers

SVCE Board & Staff

Stakeholder Workshop

Participants

Key Groups Providing Input

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Meanwhile…

• Recent policy & regulatory decisions increasing competitive pressure on CCAs

• Unfavorable PCIA outcome

• SB 237 expansion of direct access in California

• Add’l uncertainty impacts planning & operations

• PG&E rate projections

• Future expansions of DA, retail choice in CA

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• SVCE must demonstrate its relevancethrough well-designed, effective programs

• Put money and effort into activities that matter, support the mission

• Must choose activities with surgical precision, to maximize impact of finite resources

• Alternative is inaction – inconsistent with mission

How do we move forward?

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• Programs will demonstrate SVCE’s relevance by showcasing our unique strengths:

• Decarbonization mission

• Alignment & coordination with municipalities

• Motivation to innovate and ability to be nimble

• Transparency & accountability

• Reinvestment in community

• SVCE’s activities will serve as example for broader CCA community

Expected Outcomes

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• Key theme of programs roadmap is leverage of SVCE’s unique position and limited resources

• Achieve leverage through:

What you’ll see in this proposal…

Partnerships Innovation Data

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Outline

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0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

An

nu

al C

O2

e [

MT]

Year

High Confidence

Medium Confidence

Transportation [Non-commercial]Transportation [Offroad]

Transportation [Commercial]

Non-Residential NG

Residential NG

SVCE

PG&E

Direct Access

Current GHG Goal

GHG: Business-as-Usual

GHG Emissions Trajectory

SVCE’s 2021 Target: 30% below 2015 levels

(2.82 MMT CO2e)

Business As Usual+/- scenario analysis

BAU ForecastHistorical

CA 2050 Goal (80% below 1990)

Note: Emissions from SVCE electricity are included but too small to be visible in chart

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0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

An

nu

al C

O2

e [

MT]

Year



Non-Residential NG

Residential NG

SVCE

PG&E

Direct Access

Current GHG Goal

GHG: Business-as-Usual

GHG: With Programs

CA: 2050 Goal



(2.82 MMT CO2e)

ForecastHistorical

With Program Portfolio+/- scenario analysis

CA 2050 Goal (80% below 1990)


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0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

An

nu

al C

O2

e [

MT]

Year



Non-Residential NG

Residential NG

SVCE

PG&E

Direct Access

Current GHG Goal

Proposed GHG Goal



(2.82 MMT CO2e)

Proposed 2030 Target: 50% below 2015 levels

(2.01 MMT CO2e)

Proposed 2025 Target: 40% below 2015 levels

(2.42 MMT CO2e)

ForecastHistorical

CA 2050 Goal (80% below 1990)


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Long-term Perspective

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

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An

nu

al C

O2

e [

MT]

YearHigh Confidence Medium Confidence SVCE,PGE,DANatural Gas Transportation Current GHG GoalProposed GHG Goal GHG: Business-as-Usual CA 2050 GoalCA 2030 Goal

Achieving CA's 2050 GHG goal will

require an additional 61-74%reduction below forecasted 2030 level

This reduction will require an unprecedented shift away from natural gas in commercial and residential buildings and internal combustion engines

California 2030 Target: 40% below 1990 levels

California 2050 Target: 80% below 1990 levels

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GHG Emissions Goals

• SVCE’s Strategic Plan includes one GHG emissions goal:

• 30% below 2015 levels by 2021

• GHG forecasting analysis used to inform proposed goals for later years:

• 40% below 2015 levels by 2025 (proposal)

• 50% below 2015 levels by 2030 (proposal)

• Proposed goals consistent with member agency CAPs

• Staff plan to revisit goals on an annual basis with GHG emissions inventory update to re-assess feasibility

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Outline

Overarching Strategy

Power Supply

MobilityBuilt

Environment

Energy Efficiency & Grid Integration

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• Procure & maintain a sustainable, affordable and carbon-free power supply

• Electrify the built environment and mobility

• Promote energy efficiency & successful grid integration

SVCE-Specific Strategies

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• Staff propose 10 SVCE-specific strategies with 42 total implementation steps

• Implementation steps constitute the workplan, relate to proposed programs

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1. Power Supply

2. Built Environment

3. Mobility

4. Energy Efficiency & Grid Integration

5. Cross-Sector

• Education & Outreach

• Innovation

Programs Roadmap by Sector

Power Supply

MobilityBuilt

Environment


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1. Power Supply • C&I Clean Power Offerings: Develop, market and sell additional SVCE

power offerings to address large C&I customers seeking to buy clean power at the most competitive rates

• Retail Rates Assessment: Carry out comprehensive assessment of retail rates to develop multi-phase plan for improvements and developments of pilot rates

• Integrated Resource Plan: Solicit community input to develop comprehensive strategy for supply portfolio (e.g. %RPS, short- vs. long-term contracts, local resource carve-out, etc.)

• Local Renewables: Research the availability and price for local resources, and evaluate costs/benefits of procurement

Color = 2019 Priority

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2. Built Environment• Reach Codes: Hire technical consultant to support SVCE and PCE member

agencies in the development, review, adoption and implementation of reach codes supporting building electrification and EV charging infrastructure

• All-Electric Showcase Grants: Develop model requirements for all-electric buildings for architects, developers, practitioners & provide financial incentives and/or upfront design assistance for a specified number of showcase projects

• FutureFit Heat Pump Water Heater: Provide rebates to fuel-switch natural gas water heaters to heat pump electric water heaters (BAAQMD grant)

• Streamlining Community-Wide Electrification: Survey and review local city policies (codes, permitting, inspection, incentives, etc.) and develop model policies/processes


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Key Partner for Built Environment

• National coalition, early focus on California

• SVCE a member since launch in Sept 2018

• Members represent labor, architects, developers, utilities, environmental advocacy, and others

• Work supports multiple SVCE programs: Design Grants, FutureFit HPWH, Resource Center, etc.

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• EV Charging Infrastructure Strategy and Plan: Create an SVCE-wide EV readiness and infrastructure strategy considering permitting practices, ordinance/reach code integration, siting, rate design

• EV Fast Charging Pilot Depots: Work with private sector, member agencies, and regional partners to develop one or more EV fast charging pilots (e.g. for ride-hailing electrification, real-time pricing, “last mile”)

• EV Incentives for Low Income: Provide rebates for used EVs for low-income qualified customers in collaboration with Peninsula Clean Energy

• EV Charging for Multi-Unit Dwellings: Provide flexible grant offerings to address market gaps with multi-unit dwelling and small and medium business workplace charging

• Fleet Electrification: Support member cities and commercial customers in evaluating options to electrify their vehicle fleets

3. Mobility


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4. Energy Efficiency & Grid Integration• Virtual Power Plant: Procure capacity from “virtual power plants”

made up of cloud-based aggregations of customer-cited resources to support grid integration and monetize value from connected, controllable loads

• Non-SVCE Programs: Promote existing, non-SVCE led energy programs through the Customer Resource Center and other channels.


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5. Cross-Sector: Education & Outreach

• Customer Resource Center: Develop customer resource center to enable engagement and awareness-building, education and action related to vehicle and building electrification

• Community Engagement Grants: Partner with local organizations in under-reached customer segments to promote SVCE accomplishments and programs


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5. Cross-Sector: Innovation

• Innovation Partners: Engage with key strategic partners to participate in the local innovation ecosystem to provide a voice for SVCE customers and the decarbonization mission

• Innovation Onramp: Provide small grants to support innovation through pilot projects with external partners


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Key Partners for Innovation

• MOUs with Prospect Silicon Valley and Joint Venture Silicon Valley attached to staff report

• MOUs and partnership agreements in-preparation with other organizations

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Programs Portfolio

Power Supply

MobilityBuilt

Environment


• EV Charging Infrastructure Strategy & Plan

• EV Fast Charge Depot Pilots

• EV Incentives for Low-Income

• EV Charging for Multi-Unit Dwellings

• Reach Codes

• All-Electric Showcase Grants

• FutureFit HPWH

• Streamlining Community-wide Electrification

Cross-Sector:

• Innovation Partners

• Innovation Onramp

• Customer Resource Center

• Engagement Grants• C&I Clean Power Offerings

• Integrated Resource Plan

• Retail Rates Assessment

• Local Renewables• Virtual Power Plant

• Non-SVCE Efficiency Programs


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Resources• Funding for proposed program portfolio summarized in

following table, totaling $6,025,000 over two-year period

• Details on proposed programs including approach and timeline are included in Program Briefs (Attachment 3)




















Total $6,025,000

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Reporting & Review

• Progress reports provided to the Board on a roughly quarterly basis, in concert with ongoing review cycles, shown below

• Comprehensive policy review with stakeholder groups, the Executive Committee, and the Board on a roughly annual basis

JanuaryDecarb. Strategy & Programs Roadmap

Policy Review

AprilProgress Report for Earth Day, including Updated Emissions

Inventory

JuneProgress Report with Strategic Plan Policy

Review

SeptemberProgress Report

with Budget Cycle

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Outline

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Staff Proposal 1. Adopt the revised Strategic Plan to include the proposed 2025 and 2030 greenhouse gas

emissions reduction targets (Attachment 2)

2. Adopt the SVCE Decarbonization Strategy & Programs Roadmap and program briefs (Attachments 3 and 4)

3. Approve the following budget requests and contracts for the first tranche of programs, totaling $6,025,000 over two-year period




















Total $6,025,000

Appendix

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GHG Emissions Baseline• SVCE’s 2015 baseline emissions are 4.03 million MT CO2e, which

includes all energy-related emissions (electricity, natural gas, transportation)

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GHG Progress to Date• SVCE service territory reduced emissions by 14% from 2015 to

2017, nearly halfway to the 2021 target

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Progress to Date

GreenStart: carbon-free default electricity supply

GHG and energy asset baseline data assessment

GreenPrime: 100% renewable electricity supply option

“Peak Day Pricing” program for C&I customers

Community engagement grants in progress

BAAQMD grant for heat pump water heater retrofits

Ris

k

Impact

Risk vs. Impact of Portfolio

Positioning under development

• Innovation Onramp• Innovation Partners• DC Fast Charging Depots• DER Integration• EV Charging for MUD

• Reach Codes

• C&I Clean Power Offerings• Customer Resource Center• All-Electric Design Grants

• Retail Rates Assessment

• Integrated Resource Plan• FutureFit HPWH

• Local Renewables• City Alignment• EV Incentives for Low-Income

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Customers, Staff, Committees, Board

And more!

PG&E & Local Munis

CCE Peers

Federal, State & Regional Government & Regulatory Entities

Member Agencies

Original Equipment Manufacturers

Grassroots Organizations

National Environmental

Non-profits

Research Universities & National Labs

Cleantech Companies

Practitioners

Accelerator & Innovation Partners

Architects & BuildersLabor

Financiers

Industry Agencies

Broader Stakeholder Landscape

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SVCE Design Charrette Participants Academics, entrepreneurs,

financiers, industry thought leaders & practitioners, in addition to representatives from key advisory groups

Objectives• Share SVCE’s internal vision for decarb

and initial thoughts on a roadmap, for coaching & feedback

• Incorporate broader set of participants into the roadmap development process

• Collaboratively develop conceptual design of handful of flagship programs

Outcomes

• Charrette was a success: objectives achieved

• Results integrated into proposed decarb strategy and roadmap

Sept 18 SVCE Design Charrette Attendees

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Strategic Framework

What will we do?

Retail Products & Services

Education & Outreach

Public Policy

Market Transformation

Which priorities will guide us? Customer &

Community ValueEmissions

ImpactScalable and Transferable

Equity in Service

Core Role for SVCE

How will we do it? Innovation Data Partnerships

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