REPORT TO COUNCIL
SUBJECT
Title
Approve Public Benefits Program of the Electric Utility Through Fiscal Year 2023
Report
BACKGROUND
In accordance with Public Utilities Code (PUC) Section 385 covering the Public Benefits Charge (PBC), and the City of Santa Clara’s Public Benefits Program Policy Statement adopted by Council on May 12, 1998, staff has developed a variety of programs to help residents and businesses in Santa Clara. These programs have been of benefit to customers by helping them become more energy efficient through paying a portion of the costs to upgrade systems and equipment, demonstrate new energy technologies, develop new renewable resources, and pay their bills.
DISCUSSION
On June 6, 2017, Council approved a ten year forecast of energy efficiency goals and approved current programs through June 30, 2022, subject to budget appropriations. Energy efficiency goals are based on feasibility studies and are updated every four years.
Staff is proposing modifications to the current programs as follows:
• Extend the term of the project cap of $750,000 through June 30, 2019 for both the Data Center Efficiency Program and the Customer Directed Rebate program. This increase from $500,000 to $750,000 was put into place last year to encourage completion of multiple large energy efficiency projects which will assist the utility in meeting its energy efficiency goals.
• Increase the commercial lighting rebate from $0.15 per kWh to $0.25 per kWh for retrofit projects that include advanced network lighting controls. This increased incentive will assist customers in covering the costs of increased measurement and verification required to validate the energy savings.
• End the City Revolving Energy Efficiency Loan Program and close the capital budget item that funded this program. Over the course of the program, two projects were completed using the loan program and none since fiscal year 2012. Energy efficiency projects at City facilities will still be eligible for incentives through the continuing programs.
Staff requests that Council re-approve the programs, with the above modifications, through June 30, 2023, subject to budget appropriations. Staff also requests that Council grant the City Manager authority to make programmatic modifications in response to variations in equipment pricing, availability of new technology, and/or program changes as required by the State. Approving a multi-year program will allow customers to better plan implementation of projects that may span more than one fiscal year, and will allow Silicon Valley Power to print marketing materials without an expiration date, thereby reducing the requirement to reprint for each fiscal year.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Expenditures for the Public Benefits program are required by state law to equal 2.85% of utility sales, which for FY 2018-2019 will be approximately $12,105,000.
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
Approve the Public Benefit Programs as outlined in the Public Benefits Program Proposal for FY 2018-2019 through 2022-2023 based on 2.85% of annual utility sales subject to annual budget appropriations, and grant the City Manager authority to make programmatic changes as necessary during the program period.
Staff
Reviewed by: John C. Roukema, Chief Electric Utility Officer
Approved by: Deanna J, Santana, City Manager
ATTACHMENTS
1. Public Benefits Program Proposal for FY 2018-2019 through 2022-2023