REPORT TO COUNCIL
SUBJECT
Title
Action to Add an Electric Program Manager to Manage and Support the State and City Goals to Reduce Greenhouse Gas Emissions
Report
BACKGROUND
In September 2018, SB 100 was signed into law, which sets a statewide policy target of 100% of all retail sales of electricity to come from eligible renewable energy resources and zero-carbon resources (i.e. greenhouse gas (GHG) free) by December 31, 2045. It also sets more immediate interim targets for utilities to supply renewable power and sets consequences for failing to meet those targets. Passage of SB 100 continues to raise the carbon reduction targets set by SB 350, the Clean Energy and Pollution Act, which was passed in 2015. SB 350 also raised targets for energy efficiency activities and has put renewed focus on disadvantaged communities, which includes a subsection of Santa Clara. Combined, these and other state laws, set ambitious GHG-free targets for the energy sector.
At the same time, Silicon Valley Power (SVP) has seen a rise in funding opportunities related to targeted sustainability efforts through the Public Benefits Program, the Carbon Cap and Trade Allowances, and a variety of grant programs. The Public Benefits Program (PBC) has been in place over 18 years in which, by state mandate, SVP collects 2.85% of all customers' bills to specifically support energy efficiency, renewable power activities, low-income programs, and related research and development. In the Carbon Cap and Trade Allowance (Cap and Trade) program, SVP as a load-serving entity has been allocated a declining volume of carbon allowances with the intention that proceeds from the sale of said allowances are used to reduce GHG emission of resources to serve load over time. At the same time, SVP is required to purchase GHG emission allowances that match what is produced from its generation resources. Currently these allowances are sold and/or purchased at quarterly auctions and revenues are used t...
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