energy commission agenda - cityofberkeley.info · the commission discussed a proposal from the...

2120 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7439 TDD: 510.981.6903 Fax: 510.981.7490 E-mail: [email protected]

Berkeley Energy Commission

ENERGY COMMISSION AGENDA Wednesday, January 27, 2016 North Berkeley Senior Center

1901 Hearst Street 6:30 P.M.

1. Call to Order and Roll Call 2. Public Comments and Announcements Action Items 3. Approval of Minutes from Last Meeting Information Items 4. Report Back from Commissioner’s Meetings with their Council Members 5. Reports from Assigned Commissioners

Camacho - Community Choice Aggregation and Carbon Fee and Dividend Wang – Solar Plan Schlachter – Electric Vehicles and Point-to-Point Car Sharing James - Industrial Efficiency

6. Report on California Energy Commission Advanced Energy Communities Grant Application

7. Report on Community Choice Aggregation 8. Report from the Solar Plan Subcommittee 9. Report on Building Energy Saving Ordinance (BESO) Action Items 10. Items for Next Month’s Agenda 11. Adjournment Action may be taken on any item if moved to the Action section of the agenda at the request of a Commissioner. If Commissioners are unable to attend, please call Neal De Snoo, at the Energy Office, 981-7439, by 4:00 p.m., January 27, 2016. All agenda material may be examined in the Reference Room, of the Main Library, located at 2090 Kittredge. To request a meeting agenda in large print, Braille, or on cassette, or to request a sign language interpreter for the meeting, call 981-7439 (voice), or 981-6903 (TDD), with at least five (5) working days notice to ensure availability. Disabled access is

mailto:[email protected]

Energy Commission

at the front door. Ring bell for staff to open door. If you need other assistance, please call Neal De Snoo, at 981-7439, by 4:00 p.m., January 27, 2016.

This meeting is being held in a wheelchair accessible location. To request a disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact the Disability Services Specialist, at 981-6342 (V), or 981-6345 (TDD), at least three (3) business days before the meeting date. Please refrain from wearing scented products to this meeting. Communications to Berkeley boards, commissions, or committees are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to a City board, commission, or committee, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service, or in person, to the secretary of the relevant board, commission, or committee. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the secretary to the relevant board, commission, or committee for further information. Please refrain from wearing scented products to the meeting.

Item 3 October 28, 2015

2120 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7439 TDD: 510.981.6903 Fax: 510.981.7490 E-mail: [email protected]

Berkeley Energy Commission

ENERGY COMMISSION MINUTES Wednesday, December 2, 2015 North Berkeley Senior Center

1901 Hearst Street 6:30 P.M.

1. Call to Order and Roll Call

The meeting was called to order by Commissioner Murray at 6:32 PM. Present: Camacho, James, Murray, Schlachter, Wang Absent: Bell, Myers, Bernhardt Leave of Absence: Constantine Staff: Neal De Snoo Guests: Milt Latta and Elyce Klein from Citizens’ Climate Lobby Public: 1

2. Public Comments and Announcements

The Commission welcomed Emilio Camacho. Action Items 3. Approval of Minutes from Last Meeting

The heading on the minutes was corrected to replace Tuesday with Wednesday. The corrected minutes were approved (MSC: JJ, KW, 5-0).

4. Discussion and Possible Action on Council Referral on a Solar Plan Commissioner Wang reported that the subcommittee just met and plans to work with Optony and one or more interns.

5. Discussion and Possible Action on Recommendation for Electric Vehicle Parking Legislation The Commission made minor edits to the report and approved it for submission to Council (MSC: JJ, EC, 5-0).

Information Items 6. Reports on Zero Waste Commission (Murray), Public Works Commission (James),

Community Environmental Advisory Commission (Schlachter), Transportation Commission (Wang), Planning Commission (Bell), and City Council (DeSnoo) Commissioner James reported that the Public Works Commission is discussing undergrounding utilities. Commissioner Wang reported that the Transportation Commission is discussing the bike plan, bike sharing and the Shattuck Avenue


Minutes from December 2, 2015 Item 3 Page 2 January 27, 2016

reconfiguration. Commissioner Murray reported that the Commission on Disabilities is discussion education on traffic safety for bicyclists.

7. Omitted

8. Presentation from Citizens Climate Lobby on Carbon Fee and Dividend The Commission discussed a proposal from the Citizens’ Climate Lobby for a carbon fee and dividend program. Commissioner Camacho volunteered to be the Assigned Commissioner to prepare a recommendation for Council. Commissioner James volunteered to assist.

9. Discussion on 2016 Work Plan

Staff reviewed prior work plan items. Current items and assigned commissioners (and supporting commissioners) were designated as follows:

Community Choice Aggregation: Camacho (Murray) Solar Plan: Wang (subcommittee) Point-to-Point Carsharing: Schlachter Industrial Efficiency: James (Camacho) Electric Vehicle Charging Infrastructure: Schlachter

10. Report on State Energy Policy

No report. 11. Report on Community Choice Aggregation

Staff reported that the Mayor attended the November Alameda County Steering Committee meeting.

12. Report on the Building Energy Saving Ordinance

The Commission discussed the scope of the assessments and made some recommendations to staff.

Action Items

13. Items for Next Month’s Agenda Reports from Assigned Commissioners will be added to the standard agenda.

14. Adjournment The meeting adjourned at 7:50 PM (MSC: FS, JJ, 5-0).

Community Choice Energy (CCE) in the East Bay

2016/2017 Timeline & Major Milestones

Alameda County CCE Steering CommitteeJanuary 6, 2016

Item 7a January 27, 2016

Goal is to begin serving customers in early Spring 2017, which means customer notification begins in early February 2017. All major elements must be in place by January 2017.

We’ve seen a number of delays since original timeline, including the tech study, which will take longer than originally anticipated (complete in mid-May 2016)

To stay on track and meet the proposed launch date, we need to start working on parallel paths

These paths include: 1. JPA formation and administration 2. Community outreach/marketing 3. CCE program design, financing, power supply, et al

The 2016 Planning Context

1. County will begin JPA formation in Q1 and Q2 2016 with the idea of forming the JPA as a legal entity in late spring/early summer and seating the full Board in Fall of 2016.

2. Earlier formation of a JPA will position the CCE to take advantage of currently favorable energy pricing and potential renewable energy opportunities, such as Altamont wind and upcoming solar projects.

3. If the tech study results look good, the JPA infrastructure will be ready and the Agency can progress faster. If the results are unfavorable, the JPA will not likely move forward.

JPA Formation Sooner than Later

January – June 2016

Quarter Major Milestones

Q1January - March

• Tech study underway • County to draft JPA agreement and CCE ordinance• City and County briefings to solicit feedback on JPA agreement,

CCE ordinance and overall project plan through launch• Prepare and release public communications/marketing RFP

Q2April - June

• Tech study results released and finalized• Continue City briefings to solicit feedback on JPA agreement and

CCE ordinance• Hire marketing firm; begin public education/marketing • Develop short list of potential banking partners; begin bank

outreach meetings• June BOS Meeting(s): Final Study results presented with

implementation timeline, JPA agreement, CCE ordinance, request for Phase II funding, and any consulting contracts needed to continue work

July – December 2016


Q3July – Sept.

• Set deadline of September 1 for cities to join JPA• Schedule study sessions and distribute key documents to support

decision-making• Ramp up marketing/public education campaign• Draft implementation plan and RFP for energy services and other

major vendors• Continue bank/credit discussions • Prepare staffing plan and begin search for Agency CEO

Q4October -December

• October: First JPA Board Meeting (approve Imp Plan, Energy RFP)

• Late October: Submit Implementation Plan to CPUC (90 days to certify)

• Finalize credit needs; select banking partner • Negotiate energy supply and other major vendor contracts; select

energy supplier and data manager by end of 2016• Hire Agency CEO and key staff; establish office and other admin.• Continue public education campaign; launch customer call center • Utility service agreement, post bond, regulatory registrations

January – June 2017


Q1Jan-March

• January: JPA Board finalizes rates• February: first customer enrollment notices sent• Confirm remaining service vendors; continue with office and staffing • Public outreach and marketing continues

Q2April-June

• Continue enrollment/opt-out notices (March/April)• Continue with any remaining utility or regulatory requirements• Program Launch -- Initial customer enrollment: April, 2017!• Continue post launch opt-out notifications (May/June)• Begin design and implementation of ancillary programs, continue to

next enrollment phases

CCA FEASIBILITY STUDY

FOR ALAMEDA COUNTY

JANUARY 6, 2016

Mark Fulmer

MRW & Associates

Oakland, Ca l i fornia

mef@mr wassoc.com

510.834 -1999

Item 7b January 27, 2016


2

THE MRW TEAM

MRW & Associates

Experts in California wholesale power

market, Ratemaking, CCA formation,

and “PCIA” exit fees

Tierra Resource Consultants

Experts in energy efficiency

forecasting, program design,

development and implementation

EDR Group

Economic and jobs assessments,

Application of dynamic REMI model

for forecasting impacts


Use existing load analysis models

Use existing financial/rate forecasting models

Build on CCA risk assessment experience

Develop Supply, EE, DR scenario inputs

Use REMI Model to assess economic and job impacts

Good communication with Alameda County CDA

3

APPROACH


4

ANALYSIS MAP


5

TECHNICAL ANALYSIS

$0

$20

$40

$60

$80

$100

$120

2015 2016 2017 2018 2019 2020

Projected CCA Costs vs. Generation Rate

CCA Admin Costs

CCA CRS (Indifference Rate)

CCA GHG Costs

Other Procurement Costs

CCA Wholesale Procurement Costs

Average Generation Rate

$/M

Wh


6

DSM ENVIRONMENT

Efficiency & Demand Response Market Profile

What’s out there and how might the Alameda CCA fit in?

Pending and newly enacted Legislation

Programs/Initiatives from PG&E, BayREN, Local

Governments, the State

What priorities are coming from the CPUC?

What providers of EE services are in the County?

Literature Review

What programs being implemented elsewhere that may be

relevant to Alameda County CCA?


7

DSM ENVIRONMENT

Get Stakeholder Perspectives

Interview/provide questionnaires to local stakeholders:

Local and county government agency representatives

Large state/federal users (e.g., UC, National Labs)

Other CCAs

EE/DR industry service providers

Develop Scenarios for Modeling

Based on model used by CPUC to estimate energy efficiency

potential

Provide dollar, kW and kWh reductions to the modeling team


8

DSM ENVIRONMENT

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Scenario 1 (low)

Scenario 2 (low mid)

Scenario 3 (mid)

Scenario 4 (high mid)

Scenario 5 (high)

GW

h

IOU goals

SB350Energy efficiency goals and potential forecast

Local initiatives

contributing


1. Minimum RPS Compliance: 33%50% qualifying renewables

2. More Aggressive: Initially 50% with lower GHG emissions

3. Ulta-Low GHG: 50%80% by year 5

How much local renewables will depend upon

costs and potential

9

SUPPLY SCENARIOS


Understand how the scenario’s locally procured investment translate into annual direct jobs by industry type, and multiplier jobs by industry type.

Understand how the scenario’s change on electricity prices (relative to business-as-usual) converts into annual job changes by industry type

Portray the pay quality of the affected jobs

It can not - on its own - know the extent of any revenue off -set to local generating units (this must come from scenario assumptions)

It does not distinguish whether a job is union or not

10

WHAT CAN THE REGIONAL ECONOMIC

FORECAST MODEL DO?


Forecast jobs (direct & multiplier) based on the proposed CCA

structure and the region’s economic conditions

Policy -driven investment apportions into a basic profile

$ installation labor

$ on manufactured components

$ with distributors & other suppliers

Profiles will vary depending on:

energy-efficiency & intended end-use

Renewable type (e.g., small DG, larger DG, utility -scale

renewables, etc.

11

JOBS ANALYSIS


If a scenario is to address implications on union jobs

(+ or -), the client-contractor team will need to refer

to recent CA CCA’s for instances of Project Labor

Agreements as well as the extent of union job

exposure amidst lost sales at local electric

generating unit.

12

SUPPLEMENTAL INFORMATION TO

INFORM THE JOBS ANALYSIS


Short-term Influences (deployment)

Program Spending

Participant Out-of-Pocket

Expenditure on Improvements (split, equipment vs labor)

Equipment manufacturing – in county, in State or out -of-state?

Longer-term Influences (over the useful life of devices )

Participants’ bill savings

Utility sector off -sets from reduced load.

Ratepayer effects (e.g. DRIPE if relevant, other)

13

SCENARIO INPUTS


Financial

How much does the CCA need to collect to cover expenses?

Can the CCA do this at rates that are “competitive” with PG&E ?

Regulatory

CCA still has some CPUC oversight: procurement, exit fees

Legislation can change everything

Community

Will the implemented plan deliver what was promised including

for local resident labor force?

14

UNDERSTANDING THE RISKS


15

BALANCING PRIORITIES

COST-EFFECTIVE

LOW-CARBON

LOCAL

SUPPLY/ECON.

DEVELOPMENT


16

SCHEDULE


17

QUESTIONS?


EXTRA SLIDES

18

.


REMI dynamic impact forecasting model that uniquely handles cost (& rate) changes that arise on non-residential customer segments…in addition to everything that a static input -output model approach can provide – HH income changes and program related spending shifts.

Direct jobs will come from the investment composition of the MRW team defined scenario(s) and sensitivities for local labor util ization

Non_direct jobs result from the REMI model’s region -specific cost responses on C/I segment competitiveness & then a traditional set of multiplier effects

Annual impact results over the BAU : Jobs, Wages, Sales, GSP, Exports (and many more) in aggregate and by industry type

19

ECONOMIC/JOBS ANALYSIS


20

REMI’S CORE LOGIC

Output

Market SharesLabor & Capital Demand

Population & Labor Supply

Wages, Prices, & Profits

Electric & other energy prices

Investment tied to new technologies


21

IMPACT ANALYSIS IN REMI

The REMI Model

Alternative Forecast

Compare Forecasts

Control Forecast

What are the

effects of the

Proposed

Action?

Baseline values

for all Policy

Variables Policy

Action


energy commission agenda - cityofberkeley.info · the commission discussed a proposal from the...

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