Item 3PRESENTATION

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Doubling Down onDecarbonization ProgramsBoard of DirectorsNovember 10, 2021

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Objectives- seeking Board input

Feedback ondirection- specificsstill to be fleshed out Discuss SVCE program approach/focus

Reactions to “double down” program ideas

SILICON VALLEYCLEAN ENERGY 2

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Where are we in the process?Timeline

Today

Input from Boardon direction

Staff finalizeprogram details,launch, report back

Input ondirection fromstakeholders, EC

Board approval on“double down”programs withadditional details

SILICON VALLEYCLEAN ENERGY 3

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Item 3PRESENTATION0 Key takeaways on doubling down

Target barriers thatSVCE (and memberagencies) are bestpositioned to tackle

Program areas to prioritize:Multifamily tenant EV accessNatural gas phase-out

Focus on programs that further create thefoundation to enable new policy for big impacts

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Item 3PRESENTATION

Programs are an emphasis in the 2021-22strategic focus areas

Support localagency work andleverage close tiesto staff

1. Additional staffing2. Bring PPAs into operations mode3. Procurement and integration4. Financial stability5. Operations and cyber risk management6. Grow organization to expand efforts on

climate change and decarb

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Item 3PRESENTATION

We will need to bend a lot of different carboncurves

2018 Energy- and transportation-related emissions (incl. fugitive emissions)(Total = 3.74 MMT C02e)Mix of shared and

unique challengesacross sources

RemainderAll cooking4%4%AUtilities gas usage

4%Commercial gaswater heating _ Passenger vehicles

(sedans,smallerSUVs/pickups)

32%

5%

SVCE’s sector-specific JointAction Plansidentify topbarriers

Commercial trucks5%

Commercial gas spaceheating

5%

Industrial gas usage 47%

DA + PG&E electricity. Res gas water heating10%7%

Res gas space heating Off-road transportationS '

-' 9%

6Fugitive emissions account for ”32% of total natural gas emissions

Item 3PRESENTATION0 Major leaps in adoption are needed-

residential EV exampleOn the order of$10B to buy EVs;$1B to install EVI Pi jO fOf jO, jO, fOf|0=0| |Q=Q| |0=0| |0=0| |Q=0| |Q=0| |0=0|

b o b d b d b d b d b d b d(total cost)32,000 EVs today......and 440,000 conversions to go

Single-Family EVs: 8%Some customersface biggerbarriers

Multi-Family EVs:3%

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Adoption rate, target 2030

Water Heating

21,000 per year

Space Conditioning

17,000 per year

Stovetops 11,000 per year

Dryers 5,000 per year

Panel Upgrades

13,000 per year

Item 3PRESENTATION0 Major leaps in adoption are needed-

residential heat pump water heater exampleSVCE programvery successful,compared tohistoricaldeployment

SVCE HPWH program install rate:100 per year

To replace all gas water heaters by 2030: 21,000 per year

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Similar scalingneeded for otherbuildingtechnologies

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Item 3PRESENTATIONCD SVCE Program Approach

To succeed, policy/mandates need a support structure

Incentives, rebates and[ o 0 °| financing lower customer

bills and upfront costs

Communication andmarketing increaseawareness

INDUCTIONCOOKING

HEAT PUMPHEATING AND

COOLING HEAT PUMPWATER HEATER

SOLAR + BATTERYSTORAGEAvailable and

competitive productsenable uptake

ELECTRICDRYER EV

*CHARGING

INTELLIGENTEfficient permittingprocesses reduce timeand costs

CONTROL

Trained & availableworkforce with inclusive,high-quality jobs

Pilot demonstrationsprove viability andbenefits

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Item 3PRESENTATION

SVCE will “double down” on key programswith more resources and staff focus

Lay thefoundation forrapid, smartadoption ofpolicy

Based on learnings from programs so far

Additional programs budget may beavailable

Key barriers and approaches alreadyidentified

Focus on SVCE and city roles

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Item 3PRESENTATION0 Proposed programs to expand

Focus efforts on two key areas, across a suite of programs

Multifamily EV Natural GasPhase-OutAccessSVCE Programs

Multifamily EV Charging Assistanceand Grants/Incentives

Whole-Building ElectrificationGrants/Incentives

Reach Codes 2.0 and pilot policy

Permitting Simplification

Accessible Financing

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Item 3PRESENTATION(y Next steps

Timeline

Today

Input from Boardon direction

Staff finalizeprogram details,launch, report back

Input ondirection fromstakeholders, EC

Board approval onprograms withadditional details(budget/staff impact,program outlines,de-prioritization)

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Item 3PRESENTATION

Discussion

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Item 3PRESENTATION

AT*T*

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Item 3PRESENTATIONCD Putting “double down” in context

What about programs not listed as priorities?

Double effort on:Multifamily EV charging assistance and grants/incentives

Whole-building electrification grants/incentives

Reach codes 2.0 and pilot policy

Permitting simplification

Accessible financing

Continue the rest of programs atplanned levels:

Municipal resilience grants

Online contractor training

CALeVIP EV charger incentives

eHub

Virtual power plant programs

and others...De-prioritize:Limit # of small innovation pilots

Fleet electrification grants

HPWH-only incentive program

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