REPORT TO COUNCIL
SUBJECT
Title
Action on Silicon Valley Power’s Public Benefit Programs for Fiscal Years 2023-2024 through 2027-2028
Report
COUNCIL PILLAR
Sustainability
BACKGROUND
Public Utilities Code section 385 requires local publicly owned electric utilities, like the City of Santa Clara, to adopt a public benefits charge to promote energy efficiency and energy conservation, new investment in renewable energy resources and technologies, and energy efficiency services, education, weatherization, and rate discounts for low-income electricity customers. The City Council also adopted the Public Benefits Program Policy Statement which contains a list of programs to assist Santa Clara residents and businesses with energy efficiency and energy conservation and other programs. On May 29, 2018, the Council approved an extension of the current programs through June 30, 2023, subject to budget appropriations.
Among other programs, Silicon Valley Power (SVP) maintains a robust suite of energy efficiency programs that contribute to the state’s goal of doubling statewide energy efficiency savings as codified in Senate Bill350. Energy efficiency programs are intended to offer maximum benefit to the community while meeting all statutory and regulatory requirements. The requirements include the following:
• Public Utilities Code section 385 requires that the utilities collect and spend a percentage of their base retail electric revenues on qualified Public Benefits Programs which are partially listed above. The customary amount collected by public utilities in California is a minimum of 2.85 percent of annual base retail electric revenues. The funds must be spent on programs in four categories including energy efficiency, research and development, renewable energy resource development, and low-income assistance.
• Public Utilities Code section 386 requires each local publicly owned utility to ensure that low-income families have access to affordable electricity, and the level of assistance reflects the level of need. Furthermore, local publicly owned utilities shall ensure that low-income families have access to low-cost, no-cost energy efficiency measures that reduce energy consumption.
• Public Utilities Code section 9615 requires each publicly owned utility to address unmet resource needs through energy efficiency and demand response prior to procuring new sources of power.
• Public Utilities Code section 9505 requires each local publicly owned utility to annually report investments and achievements in energy efficiency and demand reduction programs. Furthermore, utilities must identify all potentially achievable cost-effective electricity efficiency saving and report savings targets to the California Energy Commission (CEC).
• Public Resources Code section 25305.2 requires the CEC to report to the state legislature a comparison of the annual energy savings targets versus the actual energy efficiency savings and demand reduction for each local publicly-owned utility.
• Public Resources Code section 25310 (c)(1) requires the CEC to set goals that will double statewide energy efficiency savings in California by 2030 and will require specific targets for SVP.
DISCUSSION
On an annual basis, SVP reviews its programs to ensure they meet the needs of its customers and the community while remaining in compliance with the above requirements. New technologies are evaluated, and programs are developed to incentivize commercially available energy efficient equipment. Program participation is evaluated, and underserved customer segments are identified. As needed, equity incentives are added to programs to ensure access to energy efficient technologies for limited income households. Grant programs are also developed to assist underserved business customer segments with energy efficiency projects. Educational and outreach programs are expanded to increase awareness of energy efficiency and building electrification technologies and benefits, renewable energy, and potential utility careers.
SVP’s programs also benefit customers by paying a portion of upgrade costs to help them become more energy efficient, demonstrating new energy technologies, developing new renewable resources, and providing bill payment assistance.
In addition to the ongoing programs, the Public Benefits Program Proposal for FY 2023-2024 through 2027- 2028 includes development of the following new programs:
• Commercial Solar and/or Solar Plus Battery Storage Performance Incentive Program
• Municipal Energy Efficiency Project On-Bill Financing Program
• Scholarship Program for Income-Qualified Residents
• Income Qualified Used Electric Vehicle (EV) Rebate
Programs ending include the following:
• Residential Electric Dryer Rebate Program, which will end due to low energy savings.
• VFD Air Compressor Rebate, which will end because this is now required by Code and can no longer be incentivized.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 in that the proposed program proposal is a funding activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
FISCAL IMPACT
Expenditures for the Public Benefits Programs are required by state law to equal 2.85% of utility sales. Sufficient funds have been included in the FY 2023/24 Proposed Operating Budget in the Public Benefits Program in the Electric Operating Grant Trust Fund.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve the City of Santa Clara, Silicon Valley Power’s, Public Benefit Programs Proposal for Fiscal Years 2023-2024 through 2027-2028; and
2. Delegate authority to the City Manager, or designees, to make changes to the approved proposal, including adding or modifying programs, as necessary to meet PUC requirements and/or ensure program effectiveness during the above-fiscal year periods.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Public Benefits Program Proposal for FY 2023-2024 through 2027- 2028