San Joaquin Valley Clean Energy Partnership

1. San Joaquin Valley Clean Energy Partnership August 13, 2009 10:00 a.m. – 12:00 p.m. Live from Fresno, California Broadcast to Modesto and Bakersfield

2. AGENDA 10:00 a.m. Welcome and Expectations for Meeting 10:10 a.m. The Energy Block Grant  Guidelines 10:20a.m. The San Joaquin Valley Clean Energy Partnership 10:40 a.m. The Utility Connection 11:10a.m. Benefits of the Partnership to the Valley and Jurisdictions 11:20 a.m. Questions and Answers 11:55 a.m. Closing Remarks 12:00p.m. Adjourn

3. Energy Efficiency Block Grant  Guidelines Lisa Van de Water San Joaquin Valley Air Pollution Control District

4. EECBG Requirements • Accountability & Transparency • Prevailing wage must be paid • “Buy American” when possible • Strict reporting requirements; records available for Inspector General • Funding prohibitions: gambling establishments, aquariums, zoos, golf courses or swimming pools • Recipients must: • Have Dunn & Bradstreet (DUNS) number • Register with Central Contract Registration (CCR) • Comply with the Single Audit Act requirements, filing with State Comptroller

5. Multiple-Agency Reporting Requirements • U.S. Department of Energy • Report elements • Amount spent on activities • Project completion status • Jobs created or retained • No waivers for reporting • Reporting due 10 days after each quarter’s end • Collected on FederalReporting.gov • Most records must be retained for 3 years • U.S. Office of Management & Budget • Additional form likely • Federal Financial Report • Performance Progress Reports – Benchmarks, Program Management, Performance narrative • Possible single audit • California Energy Commission

6. CEC EECBG Funding Allocation ($49.6 million) • At least $29.8 million will be passed through to cities/counties not receiving a direct EECBG allocation from U.S. DOE • Cities with populations < 35,000 • Counties with unincorporated populations < 200,000 • Remaining $19.6 million used at discretion of California Energy Commission

7. Energy CommissionProgram Design • Allocations based on formula • $5.00 per capita • Unemployment “adder” • Minimum allocations • $25,000 for cities • $50,000 for counties • Requires cost-effective energy efficiency • Minimum 10 million source Btu’s per year for each $1000 spent • Feasibility study required to verify energy savings • Allows for energy efficiency projects or direct equipment purchases

8. Other Factors • Energy Commission encouraging collaborative partnerships among eligible applicants including: • Other public agencies • Nonprofit agencies • All funds must be used by Sept. 30, 2012 or revert back to Treasury • Projects completed & operational

9. San Joaquin Valley Clean Energy Partnership Paul Johnson San Joaquin Valley Clean Energy Organization

10. The San Joaquin Valley Clean Energy Partnership An Option for Smaller Valley Jurisdictions • Purpose • Bring needed clean energy stimulus funding in the Valley through the CEC’s EECBG • Create a platform of regionally diverse jurisdictions to pursue additional clean energy funding • Goal • Provide participating jurisdictions with information and access to a greater array of clean energy services and resources that if they applied directly to the CEC, without administrative burden. • Strategy • Regional delivery approach creates economies of scale and regional benefits. • Packaged services are tailored to needs of participating jurisdictions • Each participating jurisdiction receives services equal to the amount of their CEC EECBG allocation

11. Key Partners • Air District – Applicant and Project Administrator • SJVCEO – Lead implementing organization • Utilities – Leverage resources • Service Providers will be selected once services have been determined • Others to be added

12. Partnership Services • The Administrative Services Package • includes all of the following: • Make arrangements for feasibility studies • Prepare application for EECBG and subsequent submission • Develop RFPs and contracts • Manage project and ensure service delivery • Make timely payments to vendors • Report to CEC • Traditional Federal/state reporting • Special ARRA reporting

13. Partnership Services The Retrofit Services Package includes facility assessments (when necessary) AND retrofit services in at least one of the following sectors • Municipal and institutional • Commercial • Residential • A minimum of 50% of a jurisdiction’s allocation will be allocated to the retrofit service package.

14. Partnership Services • The Capacity Building Services Packageincludes at least one of the following: • Strategies and assistance to establish ongoing financially self- sustaining energy functions in jurisdictions. • Strategies and assistance to establish loans and financing mechanisms for energy retrofits • Climate action plan development assistance • Staff/occupant training on energy efficient practices and opportunities • Education, outreach, and/or marketing activities

15. Partnership Services • The total value of all three packages will equal the total amount of the jurisdiction’s allocation. • Depending on needs and interest, jurisdictions will have the opportunity to identify and select some elements included in the retrofit and capacity building packages (e.g. particular retrofit measures, particular capacity building activities). • The combined package of services for each jurisdiction will meet the CEC cost effectiveness test.

16. Sample Allocations Municipal/Commercial/Institutional Efficiency $100,000 CE* % budget share weighted CE BTU savings Admin & Capacity Services 0.0 40% $40,000 Retrofit Services VAVs 1.7 20% $20,000 0.3 346,000,000 LED exit Signs 7.6 40% $40,000 3.0 3,028,000,000 *based on engineering sources Impacts Combined CE 3.4 Total annual BTU Savings 3,374,000,000 Estimated annual kWh savings 329,524 Estimated annual $ savings (based on $0.14/kWh) $46,133 Simple payback (yrs) 2.2 Example 1

17. Sample Allocations Example 2

18. Our Costs and Needs • We will seek to minimize what we charge for our administrative costs. • At this point there are several variables. Our administrative costs will range between 8% and 15 % based on the total number and size of participating jurisdictions. • The greater the number of large jurisdictions that join our partnership, the lower the administrative cost we will need to charge. • We will need a minimal level of participating jurisdictions (likely in the range of 15-20) to make this approach viable.

19. Benefits • Access needed block grant clean energy resources • Receive simplified one stop access to additional utility and Air District resources—ensuring all applicable rebates and incentives are leveraged for block grant activities • Be free of Administrative burden • Be part of regional effort to benefit the Valley and its jurisdictions • Be part of network to apply for additional ARRA and other funding opportunities • Benefit from economies of scale in vendor selection, outreach efforts and scope of services. • More rapid deployment of efficiency services, as the Partnership will have infrastructure in place for this effort.

20. Next Steps • Jurisdictions let CEC know of interest in pursuing EECBG funds by August 21st • Design process of Partnership continues into September 2009 • CEC issues final guidelines and call for applications in early September • Jurisdictions let us know of their interest in participation by September 2009 • Applications submitted on a rolling basis beginning in mid-October • Partnership anticipates submitting application by in October 2009 (based on accumulated interest) • Partnership anticipates program launch by early 2010

21. The Utility Connection Gary Hanson Pacific Gas & Electric Company

22. The Utility Connection Introductory Remarks • Power of Regional Cooperation • Leverage All Available Resources (Leave No Resource Behind) • PG&E Committed To Be Your Partner Scope of Comments • What PG&E Can Do To Help You • How Can You Get Help from PG&E

23. PG&E Programs and Services that support ARRA The Utility Connection Currently Available Programs & Services Energy Data for Municipal Buildings • Energy Audits for Municipal Buildings + • Energy Efficiency Rebates & Incentives • Third Party Audits & Rebates • Low Income Weatherization Direct Install • Local Government Partnerships (in most areas) • Small Business Direct Install • Municipal Building Direct Install (limited) • Municipal Building Rebates & Incentives • Educational & Training Workshops

24. PG&E Programs and Services that support ARRA The Utility Connection New Emerging Programs & Services • Moderate Income Weatherization • LED Street Light Direct Install • Letters of Support Other Non-ARRA Programs & Services • Solar Rebates for Businesses • Solar Rebates for Homeowners • Residential Energy Efficiency Rebates

25. PG&E Contacts for ARRA Support The Utility Connection

26. The Utility Connection Colby Morrow & Colby Wells Southern California Gas Company

27. The Utility Connection Bill DeLain Southern California Edison

28. Support for the Partnership From around the Valley •  Katie Stevens, California Partnership  for the San Joaquin Valley • Steve Samuelian, California Consulting • Jurisdiction representative • Brief discussion  of the value that this Partnership approach brings to jurisdictions and the Valley 

29. Questions and Answers. A facilitated discussion relating to the Partnership. 

30. Closing Remarks Paul Johnson and Lisa Van de Water