Clean and Green Commission - Regular Meeting

I I call this meeting to order of 09/08/2025 sustainability committee, which is the best committee in all of the Alameda County, if not California. And our first order of business is, roll call.

Council member Goldstein?

Present.

Okay. Council member Regis absent. Chair Zermiehian?

Presente.

Thank you.

We go down the list of, staff and guests. So we start with mister Amidi. Who are you? What do you sell?

Alex Amiri, public works director. Nice to meet all of you.

Eric Pearson, environmental services manager.

Mariel Vargas, sustainability specialist.

Steve Osborne from the building division. I'm a senior vice in plant checker.

Great. And we'll start off in the back row, please.

Hey. Felise Ventura, Eva Community Energy, global development team.

I'm Kate Katie, also Eva Community Energy, and I am the senior coordinator of Public Engagement.

I'll ask for you to go for the Eden Nelson.

I'm the newest member of the Planning Commission.

Jeff Hammond, building inspector for San Francisco.

A member of the Planning Commission. And Sprinklr.

Eric Gianni, new owner of Lorette Brothers Mall.

Very good. Thank you for all being here. I'll let you next time with business is public comments. Anything that is not on the agenda, you're welcome to spend three minutes letting us know what's on your mind. Mister Vasco, did you wanna say something? Yeah. On the item. On the item. Very good. Okay. And with that, we go to approval of minutes, item 25 dash zero nine zero, approval minutes of the council standing by the committee of 05/12/2025. They have

been duly memorized, I believe. Duly memorized. So therefore, I

will move. And I will second the motion. I assume that's a general consensus and duly approved. Okay. Reports, action items. Number two, ACT 25 dash zero five three, potential reach code amendments for the 2025 building code. Mister Murray and Yes. Miguel and Steve and Eric, you're on.

Thank you. Okay. Thank you. Alright. Hi, everybody.

So today's staff is presenting some considerations and recommended approach for a new breach code to amend the 2025 California building code. And as Steve introduced himself, Steve Osborne is here from the building division to help answer any questions from the committee. So a reach code is a local amendment to the California building standards code. Most reach codes will modify either part six, which is the California Energy Code, or part 11, which is the California Green Building Standards Code, which is green. More than 60 cities and counties in California have adopted reach codes to improve energy efficiency, decrease the use of natural gas, and require EV charging infrastructure.

In Alameda County, 10 of the 14 cities have adopted some kind of reach code. HEWR's first reach code was adopted by the city council in March 2020. Our current reach code, as it applies to buildings, was adopted in November 2022. And then the EV charging requirements in our reach code were updated this year and adopted by council in June. Purpose of our reach code is to help meet the goals of the climate action plan by reducing the use of fossil fuels both in buildings and vehicles.

So the the current reach code ordinance modifies the state code to require three things. The first is all new residential buildings must be all electric. However, this is crossed out because we stopped enforcing this in January 2024 following a court decision regarding the Berkeley gas ban. The second part is that all new nonresidential buildings, applicants can choose to go all electric. But if they do include natural gas infrastructure, then the buildings must be electric ready, which means they have the wiring and electrical capacity to be converted to an all electric building in the future.

Then the third part is that all new buildings and modifications to existing buildings that result in new parking must have EV charging infrastructure above and beyond that required by the state.

Can I ask a question? Yes. Back. Nonresidential buildings must be electric ready. Anything about housing being electric ready? That can that be a requirement?

Can be. And it's actually already a requirement in the Alright. State code.

Okay. Got it. K. Thank you.

Okay. So our climate action plan calls for the adoption of a new reach code in 2025 so that it can take effect with the new state code that begins 01/01/2026. The four actions in the climate action plan that are listed here, the first address is new buildings, both residential and nonresidential, and it calls for avoiding the use of natural gas and avoiding natural gas infrastructure in all new buildings. Then the other three are all about, existing buildings and, call for prohibiting the expansion of natural gas infrastructure and requiring decarbonization or electrification of appliances when they are replaced. And the full text of the actions is not listed here, but these actions also call for feasibility studies.

Fortunately, we have the California Energy Codes and Standards Program, the statewide program that prepares cost effectiveness effectiveness studies for model ordinances. And, so they, there is a cost cost effectiveness study for single family homes at this point, but the commercial and multifamily studies, won't be up for a few more months. So the state code is updated every three years. The next one takes effect in January. So because our current reach code amends the current state code, both will expire December 31 year.

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So if there's anyone if there's anyone watching online, we are taking a a brief pause while we get our, monitor working again in the conference room. Thank you.

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we are.

Scott, Linda.

Good to meet you. Alright. Okay.

I think maybe I wasn't close enough earlier. Okay. So this slide shows, the most significant changes from the previous version of the energy code to the 2025 energy code that takes effect in January. This is for residential occupancies. For new single family homes, the updated energy code is going to require heat pumps for both space heating and water heating.

And for anyone who's not familiar with the heat pump, it's a very efficient electric appliance that basically draws heat out of the surrounding air. So heat pump water heater draws heat out of the surrounding air and exhausts cool air. Refrigerator is another type of a heat pump. As you may know, it does does the opposite and exhausts warm air. So heat pumps have been around for a long time.

So, anyway, moving on to, multifamily buildings. Any new multifamily buildings, the requirements are similar to that for single family homes, except that, for larger buildings that have central water heating systems, they can use gas. But if they do, they must also have solar thermal on the roof to preheat the water, and they have to be electric ready, meaning that they have the the capacity to be converted to electric in the future. Then this slide shows the major changes for nonresidential occupancies. For space heating, smaller buildings must have heat pumps, but larger buildings with multi zone HVAC systems can use gas.

And then for water heating, it's similar to multifamily buildings and that the the smaller buildings, must use heat pumps, but larger systems Mhmm. Can use gas. And, again, if they do, they must have solar thermal on the roof, and and they must be electric ready. For commercial kitchens, they can use gas, but must be electric ready. And, as you may have heard, the Bay Area Air District, they've been regulating furnaces and water heaters for more than thirty years to control for nitrogen oxide emissions.

The nitrogen oxides or NOx, are formed during the combustion process and contribute to the formation of fine particulate matter, ozone, and other air pollutants. So in March 2023, the air district adopted new rules for water heaters and furnaces that will require when when these appliances are replaced, they must be replaced with ultra low NOx emission equipment, and these rules are gonna be phased in starting 2027. So and the state of California is also considering similar rules. So some cities are adopting reach codes that help people prepare for implementation of these rules. So as I mentioned, the California code is gonna be requiring most appliances in new construction to be electric, And there's also recent state legislation that requires jurisdictions to, that we must allow for mixed fuel, meaning gas and electric infrastructure in new residential construction.

And so staff is not recommending a new reach code for new residential or new nonresidential buildings. For existing nonresidential, staff is recommending not recommending a reach code. As we've discussed a couple of times in previous meetings with the committee, staff is exploring the idea of a building performance standard. This would require annual reporting and would require building owners to make improvements over time to meet long term greenhouse gas reduction goals. And building performance standard or BPS would also apply to larger multifamily buildings.

So finally, for existing residential buildings, the California code is not as stringent in terms of electrification. So staff is recommending a new reach code for existing same family homes. So there's a lot of information here, but I'll I'll try to walk through it. There are three types of ordinances that cities and counties are adopting, that are applied to additions and alterations of existing single family homes. The first one is called the FlexPath.

It requires applicants to choose from a menu of energy efficiency measures, or electrification measures. These, the menu of options includes installation, duct sealing, air sealing, heat pump appliances, induction cooktops, and solar. The cost effectiveness of these different measures often depends on the age of the home. So the the newer the home, the less cost effective they are. And just as a reference point, Menlo Park recently adopted an ordinance like this and applied it to alterations and additions that are, of a value of a $100,000 or more.

And, we looked at our Hayward permit data from the last few years and using this threshold of a $100,000 for the value of the job, we would have about 18 projects per year that would be subject to this ordinance. And, so some of the concerns here is that that it would add complexity to both the plan check and the inspection processes, and the compliance cost is estimated to be somewhere between 5,000 to $15,000 per project. The next type of ordinance is called the air conditioner to heat pump ordinance with and this basically says that when you are replacing an existing air conditioning system or installing new air conditioning on a home, then you have to replace it with a a heat pump, which is capable of both cooling and heating. So, however, this would make the inspection process more complicated. Again, it's not as cost effective in newer homes, and so that introduces complexity.

And the compliance cost can be anywhere from 1,200 to $4,200 above the cost of a regular conventional air conditioning system. And then the third type of ordinance is electric readiness. So this would apply to homes that are undergoing some type of remodel or addition, and it requires that the home be equipped with electric ready infrastructure. So this would be the the least complex of the the three options and the least costly given that, you know, each electric circuit is estimated to add about a thousand dollars per to to the cost of the job. And so so and I'll I'll talk more about how this would work here.

But several cities have adopted the electric readiness reach code ordinance in the for the current code cycle or for the upcoming code cycle that starts in January. The only two cities that we are aware of so far have been Sunnyvale and Menlo Park that have adopted this type of ordinance. It basically requires that any new addition or alteration to the home, if it includes electrical work in the area of a gas appliance, then it has to include an electric circuit for a future electric appliance. So for example, for a kitchen remodel, if it includes a gas range and electric work electrical work and almost pretty much every any kitchen remodel is going to include some electrical, then they would have to include a 50 amp circuit for a future electric range. But on the other hand, if it's a bathroom remodel, there's typically not any gas appliances within the area of the bathroom, so there wouldn't there would not be any special requirements there.

So we've talked about this with our building official and and, and Steve Osborne here, and there are some concerns that have been brought up. And, these include, the additional cost of the cost of a project that for the electrical infrastructure that would need to be added. Given that some gas appliances can last a long time, maybe ten to fifteen years, it's possible that the current owner would not be the the the one to be to benefit from the additional electric infrastructure that's installed. Also, building staff have noted that any any kind of modification to the state code, does result in an impact on staff resources. It requires additional internal training, education to customers, and also answering questions and and, complaints just given that if our requirements are different from what a contractor might be used to in another city, it can cause some extra extra work, extra communication, and and and, yeah, it's possible that contractors could choose to to not work in Hayward if they feel that it's too complex.

So many other cities are exploring our reach codes right now in preparation for 2026. This slide shows the status of the cities that we are currently aware of and the types of ordinances that they are currently considering. Like I said, I mentioned Sunnyvale and Menlo Park are the only two we're aware of that already adopted for the upcoming code cycle. So at this point, staff is recommending that we, continue to monitor, the ordinances that other cities are adopting to to learn from them and also conduct conduct additional outreach and also prepare some additional analysis of what would be involved with implementation and the impacts on our staff. So and so we could return in November with more information, potentially with a draft ordinance, but we'll I'd like to get some feedback on that.

And with with that, we're requesting that the committee provide some comments and some direction, specifically on the electric readiness approach. And finally, I do wanna mention that, we have not done significant outreach at this point, but we did send out an email blast last week to about 2,400 contractors and developers to let them know that we're having this conversation today. And maybe that's why we have somebody from Eden Housing here today. So but, yeah, we have not yet heard from any of those folks that we reached out to.

Thank you. Any

questions? I got a lot of questions. So one of the obstacles that I hear from our developers is the inspection process. If we take a look at any options to do virtual inspections,

Consider it. Yeah. I can answer that. I mean, are

are you hearing this mainly from, are you talking about multifamily developers or larger projects or just in general in terms of getting their inspections on time?

Just in general. Yeah. Yeah.

I think there's some inspections that that lend themselves to a virtual inspection. Like, there would be simpler things like a water heater that's really repetitive, and I know there are some cities that have done that. But there's a lot of things that kinda have to be seen in person, and there has to be a little bit of a dialogue between the inspector and the contractor sort of issues. So I don't know specifically if we're working on a program for anything, new. I know they're talking a little bit about drones to get up on roofs to avoid, you know, that type of hazard in terms of, you know, spectacle going up there. But, yeah, in terms of virtual, I I haven't heard of a real salt strong discussion on that yet.

Oh, okay. Alright. And then so existing family existing single family homes that would be undergoing a modification. You're saying that there would be a dollar threshold in these rules would apply or would be based on the equipment type that they're looking to replace? The the electric readiness ordinance that we've seen would not be subject to a a minimum dollar threshold.

It would really be based on the type of work. So, basically, if you were opening up a wall within three feet of a gas appliance, like a water heater or a gas clothes dryer, that this would be the primary triggers. So there

could be a lot of reasons why somebody is opening up a wall, for example, water damage. So if they're looking to do a repair for water damage, would that rule still apply? They'd have to electrify

in that area?

There are exceptions in the, in the model ordinance and repairs is is one of those exceptions. So I think the idea is that it should be applying applicable to more of that remodel type of work.

Okay. Great. And then in terms of the outreach we've done, this is pretty much just been in. Right? We've got some developers. We've got some, but it's basically just been anecdotal at this point. Right? Yes. Alright. So we have a ways to go. Those are all my questions. No. Okay.

So the on the first page, says, for this reason, staff is now recommending adoption of any new reach codes for new construction. This is because of what's happening in the state.

The partially. Yeah. Okay. There was, there was a law that was introduced earlier this year. It ended up being adopted as part of the state budget and, had some other parts of it to help accelerate the construction of housing throughout the state.

Oh, okay. The impetus was the LA area fires that happened earlier this year, but, really, it's about accelerating housing throughout the state. And so one of the requirements that came out of that is that it basically said that there should not be any new reach codes after a certain date. And but if you do adopt a reach code, then you still need to allow for gas. You cannot Okay. Completely bad gas. So

Is that the reason that it says the new rich code requirements prohibit installation of a natural gas infrastructure? Is that would that be the reason? I'm looking at page two. It says staff stopped enforcing the rich coal requirements prohibiting installation of natural gas. It's it's similar. Oh, that's It's similar. So It seems it seems negative that we can

but, basically, yeah, we had we had to stop enforcing that because of a court decision that happened in January 2024. Okay. But then and this past summer was another bill that basically says if you adopt a REACH code, it still has So

we take a step forward and one step back.

A bit.

That was okay. And then it says that heat pumps and electrification, electric readiness is not required for new new construction in most cases. So why isn't it in every case? Most cases, what what would make a particular case not eligible for not having to do it? Just most cases. What are the exceptions? Do we know? No. Just to obscure if it's state law.

Not sure which which section you're referring to.

The new residential and nonresidential buildings. The California code becomes more stringent with each cycle code. Right. With the twenty twenty five code, heat pumps, etcetera, in most cases. So so what do we know what possible exceptions there would be? No.

I think that the idea is that it's the, it's the the the major appliances that's really where we're seeing the the advancements in the code. Oh, okay. So ears, more inferences.

Look. Most of my questions arrived, and thank you for the report. Other comments? Yeah. No? Other comments? I didn't make sure, but No. Go ahead. Okay.

Hey, everybody. With Eden Housing, publisher developer. And, yes, I am here because of you also. Thank you for sending it out. Yeah. I just wanted to speak on behalf of Eden. Wanna approve steps from your recommendation to yeah. It's been the new reach code for multi gun. New construction, we're finding that the twenty twenty six yellow for your molding code does make a lot of major steps forward on sustainability, we're and really pushing new construction in the Hayward forward without requiring a leach code. All solid construction is all electric anyway we're finding.

I don't know off the top of my head of any new construction projects that aren't. So at least in the affordable space, which I can speak to, that's something we're doing anyway. I do wanna highlight that the electric vehicle, the EV ordinance that the city has, is quite a step ahead of what the state requires. I think, for the Vista, our project, that's currently in construction. I think the requirement was initially that 75% of the spots being EV ready, while 25% of the spots be EV capable, which is, again, quite a ways beyond what the California code was.

So I think we used a density bonus concession actually for that requirement. We were fighting that the cost was about 10 times over what the building code requirement was. So, again, as an affordable housing project, we do have the ability to use the density bonus concession, but I do wanna flatten the difference in the cost for staff. As for the building performance standards, BPS, that the city is exploring for existing multifamily buildings, we do have a sizable portfolio of properties in Hayward. We really support the goals of what the BPS is trying to accomplish.

Sustainability is really central for Eaton, and we find that efficiency for older buildings is really key to managing our operating costs. We wanna fly city staff explore this, but we face some challenges in other jurisdictions exploring BPS. The electrical capacity of older properties is really the biggest constraint. Often, our older properties just don't have the electrical service in place to support higher to support higher energy consuming appliances, all electric. And so oftentimes, we have to go full PG and E transformer upgrade in order to accommodate, and that's just quite cost prohibited often.

It's not something we can really accommodate in a standard financing of a rehab process. Funding itself for traditional rehabilitations is super limited for affordable housing right now. We're facing major challenges across our portfolio, across the whole Bay Area financing, and so we just wanna highlight that the additional cost of implementing this can really reduce the competitiveness for affordable housing rehabs and prevent us from making some other life safety changes. I also wanna flag that in I think San Jose has implemented a BPS, the San Jose benchmarking program, and it flagged one of our properties, which we'd acquired from another developer previously. And we actually have no way currently of funding the upgrades that they're requiring.

So I just wanna flag that in certain situations in older buildings, it can create complications. We would really urge staff that as you're exploring and implementing this, there could be incentives offered where, obviously, this isn't all at the city level. This could be through utility companies from the state. But if incentives can be found to encourage the electrification of existing properties, that can go a really long way to making this happen. It's something that the SOMA program, for example, does with solar.

If there's analogous programs that the city could, you know, have conversations with utilities in the state to implement, that could, make a major difference. So, yeah, we would be happy to support and partner with the city as you continue to explore this. And, anything we can do to assist or provide feedback on, please let us know. Thank you.

Comments, and thank you for offering help. Jeff, did you want to say something on this particular here to listen and learn. Oh, okay. Alright. Very good. Okay. Any comments or recommendations for staff?

Well, we have to do something to reduce emissions, but I I think it's gonna take partnership. But I don't I don't ever recommended the Man, I'm having a hard time talking today. Making a making a recommendation to to enforce these changes creates two problems for us. One one of them is the perception of higher cost in addition to the actual higher cost. So the perception of higher cost will drive some people just not to do the work.

And for some people, that means they're going to delay making modifications to their home that might be in their best interest. There could be safety reasons. There might be value reasons. And so you're maybe narrowing down who the law the ordinance is going to impact will be people that are selling their homes. So so there's that problem of it.

There's the industry side of it where, Eric, like you pointed out, there are gonna be some contractors who are just gonna say, maybe. They're gonna say this is just too complicated. So we have to take that part into consideration. And then for our multifamily developers, especially our nonprofit multifamily development, we need to figure out a way that the impact is not going to derail housing production. So sustainability is one of those things that we're kinda caught in the middle.

On one hand, we really wanna see housing production happen. But on the other hand, it's one of those really tricky areas that could have unintended consequences. So we wanna do what we can to minimize those impacts, and I think that's gonna require a little bit more study, a little bit more conversation to find out maybe where those incentives might come from. So our energy partners, maybe if there are I don't know. I'd like to say state federal programs, but these days, I don't think that's gonna fly.

But the point being anyway that, we don't want the unintended consequences of having people delay safety improvements to their to their homes, necessary habitability improvements. For example, if the rules say they gotta if you take a wall down, then it, you know, triggers this electrical upgrade that that could be problematic. And so multiple different dents. And then there's the perception aspect of it that, you know, we already have people, landlords primarily who were complaining that the number of rules that we have here make it difficult for them to want to stay as landlords, and that's creating additional pressure on the on the housing market. So I don't have any answers for that, but I think we need more study on this and try try to get our arms around how do we proceed with something like this and not trigger all these other unintended consequences.

Not sure how to do that.

Sure. Thank you. Yeah. Yeah. Kinda sad that only two cities have adopted these things. It's just not it does doesn't seem right.

Yep. So I'm just gonna say that while it is true that 60 cities in California have implemented REACH code, there are another three fifty cities in California that don't have it. Right. And while in Alameda County, we have 10 cities that have adopted some sort of reach code Mhmm. There are some notable exceptions. Like, city of Fremont doesn't have a reach code. So part of the reason maybe is that the state code is catching up. You know? Okay. We are a little bit ahead of the state code, but the state code is catching up.

So what is recommended tonight is pretty thoughtful, but we are here to get your comments and go back and take a look and see if we can make modifications. Okay. And, you know, the concerns that you expressed, Counseling Nicole Goldstein, are very, very true. We worry about that too. You know, our contractors are not going to be willing to bid on a project in Hayward because of the reach code. So we are going to look into those and come back in November with, you know, your comments incorporated in that list. And also Vasco's comments too. That's a

good idea.

Exactly. Right. Appreciate it.

And I do like the educational outreach component to this. Electrification readiness approach is very good. The concerns that were listed up on the board are excellent. I like the flitch plan. It seems to be a good one. Next good on the next steps. And those are all my comments. Right? So, yes, keep working on it, please. Mhmm. Yes. It's a good idea. It'll be green for us. Okay. Anything else? No? No? Nope. Alright. So that is item number two.

We're gonna go to item number three, which is AVA and our two guests. AVA community energy update, local programs, and customers. Bill savings information and discussion item. Alright. 25Dash06.

If I could briefly introduce, I wanna say we're fortunate to have Katie here from the community energy and her colleague, Valise Ventura. So they'll be giving the presentation today. Thank you.

Great. Thank you, Erin. And thank you council members and staff for inviting us to come back here and give an annual AIVA update. Very happy to be here. So I'll move through a quick kind of info slides and then hand these off to my colleague, Felise, for a deeper dive in more local programs. So the next slide. That's a lot of assistance. Next one begins. Okay. Perfect.

So quick overview, AVA, of course, the local community choice power supplier for the city of Hayward. Hayward was, of course, the founding member of the agency as well as serving parts of Alameda County and San Joaquin Counties as well. We are a joint power authority, and I'm thrilled to have councilman Baroche serve on our board of directors representing Ewart. Next slide. So this is our service area.

I feel like each time I'm here, this map looks a little different as we've expanded a bit in San Joaquin County. We recently launched service stock in later this year, and we'll launch services unincorporated San Joaquin County next year. Next slide. So very good overview of just how all this this whole process works and how AVA works. So Ava is in charge of buying and generating the power on behalf of all the customers we serve.

So Ava is the default generation provider in all the communities we serve. So and he were in all other cities that serve. So our customers remain customers of PG and E still. So that number two kind of spot there, PG and E still is in charge of delivering all that all that clean power to our homes. So maintaining, operating, running lines and wires. All billing still goes through PG and E. So you'll see Eva's generation charges on your bill, on your PG and E bill as a line item. And then Eva customers, of course, benefit from the cleaner energy, lower rates, and programs that we provide. Next slide. Cool.

So these are the service options that we offer. So as a community choice provider, we're very happy to be able to provide additional choice to the customers that we serve. And part of that, of course, is by having a couple of service options. So these this power content is based on our actual twenty twenty four power content. Renewable 100 is a 100% renewable energy of wind and solar energy, and it's the default for customers in the city of Hayward.

So it's highlighted there. Customers, of course, still maintain the option to choose Bright Choice, even opt out to PG and E if they wish. But the default for new customers is for renewable 100. So next slide. And just to dive in even deeper into our power content, here it is broken down a bit more.

And I wanna particularly highlight AIVA's goal of achieving a 100% clean power by 2030. This is an ambitious goal and many years I've had in the statewide zero emissions goal. And our board of directors set this goal back in 2022, and we are on pace to reach that goal. So this mostly just applies into our BrightChoice power because our renewable 100 option is already a 100% renewable and clean. And our board of directors also sets procurement targets to help us make sure that we're achieving that goal every year with, of course, just focused on a 100% carbon free by 2030.

The next slide. And then an important way to work towards our ambitious clean energy goals while also maintaining on lower prices is through procurement of these long term power contracts or PPAs. We work with developers to build out renewable energy resources to supply our customers. So this has that extra kind of macro effect of furthering investment in renewable energy development. And most of this, of course, is taking place right here in California.

So these are some stats on all the different projects that we're contracted with. And then on our website, you can see, like, where each one of these is, what county, and things like that. And all of that, wind, solar, geothermal battery storage is being actively added to the grid. The next slide. And then community investment.

So, of course, AIVA is a local government agency. We do not have shareholder risk, so any excess revenue from electricity sales are reinvested back into our community. And we do this through on those savings, local sponsorships, and community grants, as well as local programs, which my colleague, Feliz, will give us a great overview of that. Slide. So this is just zooming in on Hayward, of course.

This is what the looks like by some AIM metrics. So 95% of customers in Hayward choose to remain on AIM service, which is pretty high. The vast majority, of course, are remaining on on our renewal 100 product, which is the default product for the city. And so that over $8,000,000 figure, that's all the savings that Hayward residents and businesses have actually saved since service launched in 2018. Next slide.

And this last slide that I wanted to share with you is just kinda touching on a hot topic that I know a lot of policymakers and and residents and businesses are really engaging with at the moment. And that is that nationally in California, we're seeing definitely a growing demand for electricity. So, like, large commercial users, like data centers, as well as the adoption of electrified technologies like EVs are definitely adding growing demand and are major drivers of this. So this is definitely something that the AIDA team is very much focused on. How can we kind of forecast out and make sure that we can cover that increasing load by clean energy sources?

So we're happy to be kind of coordinating with our member cities as they plan and permit these facilities, and we'll continue to engage in conversations with our member cities and partners so that we can continue to stay engaged as this infrastructure is built out. Because the more of the runway that we have prepared for these loads, the better position, of course, our agency will be to supply all of this future load with clean energy.

So

next slide. I'll hand it over to Felice and Torren.

Thanks, Kate. Next slide, please. Yeah. So, hey, Kate did a great job of kind of teeing up. We don't have shareholders, so we reinvest back in our communities in a number of ways. One of the ways that that happens is through local programs. So we invest annually to the tune of about twenty to twenty five million dollars a year on things like savings and incentive programs, resilience programs, commercial and municipal programs. And I'll go into a little bit of description on what our portfolio of programs looks like right now. And then if you have questions, I'll I can go into more depth. But we have an exciting recently launched program called AIVA Bike Electric, which provides rebates for folks to get ebikes at two different levels.

So there's a higher incentive level for low income customers and a lower incentive level for general market customers. Our target is to issue 8,000 to get 8,000 bikes on the roads and out in Alameda County as well as associated equipment vouchers for those low income customers. So we just launched this in July. We've had huge amount of response, a lot of excitement be behind this as well as some careful planning to ensure that this budget, which is $10,000,000 in total, is really well used and well adopted. So there's actually a lottery system that goes into place so that all the incentives don't just go out the door to the people who stay on it.

They might click really hard. So we have you can see here kind of the participation in Hayward is very good, especially on the redemption side. So those folks who actually got rebates and were low income customers redeemed them, we love to see that because that means that that's actually a really valuable thing that we're providing to those customers. Next program we'll talk about is called healthy communities. You can

start here. Oh, go ahead.

I'm right. I'm advancing the slides. Oh. So I I I'm sorry. I didn't keep up

with you.

I'm sorry.

I'm advancing here for myself,

and so I can Okay.

I'm sorry. I didn't I didn't know if you're okay.

That you're doing that. Yeah. Sorry. No. I'm sorry.

So, okay, this is the slide. This is

the slide.

I know

Well, that's your good one.

I like

that one. Yeah.

Numbers, and so that sort of 100% rebate redemption is what I was kind of pointing out that that we like to see as we actually folks have to take another step to actually claim that rebate. I think one more thing that I would say is that we're partnering with local bike shops to make kind of our local bike shops benefit from this program as well. We don't currently have a bike shop in Hayward who is eligible to do that, but I think we're working on that right now. So hope to update that slide very soon. Okay. Next slide. Now we're on.

Yep.

Healthy communities. You can see here a beautiful photo of a newly installed induction range, which, again, is, like, a very efficient cooking technology that is electric. And so what we are doing is actually providing white glove service to put these induction ranges into folks' homes. So we are identifying 200 low income customers across our whole service area and monitoring their air quality before the SOAP goes in and then after to look at the impact on human health from removing that combustion from their homes. So this project is a pilot.

It started in October. It will end enrollment at the September, but those installations will continue through the end of the year. So we're really trying to understand the benefits and impacts on human health. I think Eric mentioned a gas ban that took effect a number of years ago. We're really trying to come with some data to understand what is the impact on people from that kind of action.

In Hayward, there's 12 approved participants, and we're doing our last big marketing push in the next few weeks to enroll those those final folks who will get the install. Next slide, please. AvaCharge. So this is a program that you may have heard about in the past, which is the development of our direct current fast charging network. So this is basically to provide EV charging for folks who may not have easy access to EV charging at home, so in public places.

It's really exciting and great example of our work with our member agencies because you can see here, actually, our sites are city sites. So we're launching one of our sites in Hayward, Muni Lot Number 4, and we have some exciting updates on progress here. We're at 90% design. We have capacity secured. We will be submitting permits soon on that site for review there.

Overall, we're targeting between fifteen, twenty sites across our service area for for this kind of development, but it's really exciting to for us to have these partnerships with our cities to make that possible. Otherwise, I think real estate costs would be a huge challenge for us. So it's great to have this access to city sites. Next slide. Continuing on the theme of EV charging, this program targets folks who do charge at home.

So if you have an EV and you're actually able to install a charger, you live in a single family residence, we will actually enroll you in a program to help you reduce your cost from charging, reduce your carbon that you use when you're charging, as well as help the grid absorb all of that demand, which is one of the items that that Kate touched on with electrification. So we're targeting 7,500 customers enrolled by 2027. This program just launched in April publicly. So we've got a number of folks already enrolled, I think, to the tune of about 2,000. So, again, lots of great response here so far.

We have about 2,000 yep. I'm sorry. About 2,000 total enrollments and a 159 so far in Hayward. I note that it's possible to participate in this program, not just with an EV, but with an EV charger. So we brought brought eligibility, and we also have, I think, the the broadest list of equipment that you can enroll.

So PG and E, for example, has a home charging program, but they only limit they limit eligibility to only Tesla. So we have a much broader slate of participation that we're allowing. We have 18 manufacturers that have been. For critical municipal facilities, I would imagine some of you are familiar with this. I won't belabor this too deeply, but, again, I think this demonstrates the power and the partnerships between AVA and our jurisdiction to develop solar and storage projects, in particular at Hayward Courtyard and Fire Station Number 1.

They will be owning and developing those and providing the energy to the city as well as the resilience benefits through a twenty five year PPA. So we're really excited to see that kicking off, and we'll just note on a personal note that that was the first project that I worked on when I came to Eva. So it was really exciting to see some of that, you know, getting over the line. Exciting things that we're looking forward to in the rest of the year will be the launch of the solar storage incentive program. You all probably heard about NEM two and NEM three and changes to compensation for solar export for residential customers and the impacts from that.

So this program is really designed to support folks in still being able to afford solar and storage, but also kind of doing that same thing that we're doing on the back end of the AIVA smart home charging program, which is helping folks lower their cost, reduce their carbon draw, as well as manage that impact on the grid. So it's a part of our virtual power plant program. One cool feature of this is that we not only have enhanced incentives for our low income customers, but we've also reserved a portion of that for resilience hubs. So those would be community owned sites that provide solar and storage in the event of emergency. So they are not a single family resident.

You can still benefit from this by being able to access the community resilience hub. Our budget for this is $15,000,000, and our target launch date is in December. Finally, this project is great. You'll probably heard about this before too. Our Habitat for Humanity sponsorship. So we underwrote the electrification infrastructure at Sequoia Grove, And it's fully electric, and not only is it fully electric, but they also have battery backup at this site, which I'm personally super excited about. This photo for a second, I got really excited when I saw it small because I thought Kate was in it, but, unfortunately,

it's not Kate.

But we had a great time recently going out and and doing some work. Ablehead established the opportunity to volunteer at the site too. So that was a great experience for us. I think that is my last day if we are I guess I'll just save that. Okay. Cool. I'm happy to take questions between the two of us. We'll just turn it off if we have questions. So

thank you. Thank you for that report. Very excited about what AIBA does in our community. When it was an optional thing, signed up for the the 100. Excited about that. And I like it that people have a choice. Mhmm. So thank you for that. The the the ebike program, I think you guys just launched that in July. Right?

Yeah. And and so you're just getting that part off the ground. I suspect that with all of the new bike lanes that we're building out all over the place, by the way, beautiful because, you know, industrial looks great. Huntwood looks great. All these different places around town where we're making it safe and appealing for people to ride their bikes, I think may add to the demand for the e bike program. So good timing on that. I'm curious though. We've talked about EVs. We talked about e bikes. We haven't talked about electric motorcycles.

And full disclosure, I'm a motorcycle guy. And so there aren't right now a lot of electric motorcycle manufacturers, but Honda apparently is announcing that they're coming out with one. Harley Davidson has they spun off their electric bikes called LiveWire, and there's a handful of others around the world that are building electric motorcycles. And you may be wondering why electric motorcycles ought to be considered in the plan besides the obvious, and that is that, gas motorcycles actually can bet more carbons per mile than cars, and they they don't have the same level of regulation to them. So even the ones that are in any event, I think there's I think there's room for some either whether it's the charging side of it or the buying side of it for electric motorcycles.

I think that's something that ought to be considered. I'm just wondering if that conversation ever comes up at Avon.

You know, we do have some staff who are quite interested in this topic as well. We have not gotten there yet. I think it's something that we're interested in, but kind of move out to EVs first. And, certainly, I think as that market segment grows, that's an area that that we'll continue continue to look at. Yeah. I think the kind of between the emissions as well as kind of the air quality effects, there's a clear case there for for us to get there on that front.

Yeah. And and I think I think the market buyer sort of willing to go that direction. There's still issues about where to get charged and what, you know, range, stuff like that. But I think people are actually excited about the opportunity to be electrified on their motorcycles. So I hope you'll continue to look at that. The OptiWatt program, I've noticed we we have a hybrid EV, and and it's a a brand, very popular brand. It's on. And so when I saw the flyer for the OptiWatt, my initial reaction was, well, this has gotta work. You know, it's on it. Right?

It doesn't. So it's not not compatible, which is okay. I mean, what I what I did instead was I I bought a a fifteen dollar timer plug. You know, 15 amp rated. So I'm, you know, doing it right, not not overloading the circuit or under under powering the car. But I'm just wondering in in your experience, is that basically doing the same thing?

I think one of the in terms of optimizing for low cost, yes. I think one of the things that we do through the program is also looking at consumption and then saying, hey. It looks like on Tuesdays, you're home during the day. Could you consider charging during a lower carbon time for the grid? So I think that there's a nuance there.

And then I think one of the other things that we are working through and plan to do is help you be ready in the event of a grid stress event. So, know, in a world where we knew that there was a high fiber threat, for example, in your region, we could send out a notification to you via the app and say, hey. Like, probably wanna track your car today to be ready for tomorrow or something like that. So I think those would be kind of some functionalities that we that would be distinct there from a timer plug. Not to say that you couldn't do that manually, but you sort of have say, I'd like to refer to a friend in the energy business when you're in that app.

Because, you know, we're thinking about all this stuff, and you have your best of your life to deal with. I think one of the challenges that we face with kind of broad compatibility is the access that we get from the manufacturers themselves. So some of the manufacturers are more on board with customers having using tools like OptiWatt, for example, and some are less so. And so that's an evolving landscape that that we're constantly trying to deal with through programs like this, and it's it's shifting.

I've been involved in the disaster response field for about fifteen years, and so I really like that. That that is one of the things that you're concerned about, making sure that people are charged up when there is a threat in their in their area. They're charged up and able to go. So that's a it's very interesting. I have to do that entirely manually. I have to wait for the watch TV app to, you know, tell me there's fire in the area or some other urgent issue and then make manage power. But knowing that OptiWatt is able to do that more automatically is is quite a good

Very well. K. Thank you. Alright. Yep. Just a couple of questions. Any good future growth for Abba?

That's okay. Yeah. I think I'll do this one. Let's see. Well, at this point in time, there's nothing on the horizon. I know that we've added so many jurisdictions over just the past few years, but there are no kind of there's no community currently in the process of joining or anything like that. So perhaps then maybe back here next year, that month will still be looking the same as this this year.

Alright. Well, we're hoping we like AVA, so we're hoping for growth.

I know. Everyone wants wants AVA. Well, and to be fair, there's a lot of other CCAs, community refrigerators all around us, so it's nice nice to feel surrounded by a bunch of CCAs too.

I like your 2030 goal. Is it doable? Is Is it going to be doable?

Yes. Our our our team has, you know, identified that target within board, and we feel confident that we're on track to reach that goal.

Okay. Alright. I I appreciate the the, good proposals on your on the staff report on the second page. Excellent proposals. I appreciate your support in Chabot College, which is where I work. So thank you very much. And I believe that's it. So thank you for the report both of you. Fantastic.

Thank you so much.

Alright. Mister chairman, can I ask a quick question? Yes. So you mentioned the data centers in Hayward. We have two of them existing. They've been around for a few years. There's another one, a 49 megawatt one that is going online in the 2026. And then there is another fourth one that is in the planning stage right now. Was actually approved by the planning commission. These at least the last two have a requirement for clean energy.

Are you in a position to be able to supply these data centers with clean energy on day one? Because this is a huge amount of help.

For sure. And I would like to give a shout out to Eric who's reached out to our our team. Our team has been in touch with city staff about these data centers in particular, which is, I think, a great a great representation of kind of partnerships that we want to level up as these types of infrastructure come online. And, yes, you know, it it goes back to really what our team's focus on with these kind of increases in load. It's just all about timing. Like, if we we have that that runway runway, then we can provide the clean power that it's needed. So, yes, our protein with with these samples, yeah, is oh, very good. We can do that.

Thank you.

Good. Very good. Thanks again. Drive home safely, please. And then and number four is, RPT25Dash067. Heat pump water direct installation program. Informational update. And we have you have ten minutes.

Have is gonna present this item for us.

Sustainability Committee. The following presentation and agenda item is a progress update on the heat pump water heater direct installation program, building on the presentation we last shared in November 2024. And before I start, I want to quickly mention that we are joined today by Erin Gianni of the Moab Bros Plumbing Inc. He's the selected contractor for the program, and here's he is here to help answer any questions once we get to that point. As a short recap, on 05/27/2021, the Russell City Energy Center experienced a mechanical failure that led to an explosion and fire.

Following the incident, the city entered into a coordination resiliency and action agreement with Calpine, which provided settlement funds. In 2023, the council allocated $328,000 from those funds specifically to install electric heat pump water heaters in low income households near the Russell City Energy Center. With those allocated funds, staff estimates that 40 water heaters would be installed with no cost to the eligible household. Eligibility includes low income households enrolled in PG and E care or fair programs and now those in city's low income discount program. Households must live West of Hisperean Boulevard and currently have a gas powered water heater.

We will also prioritize filtering water heaters as those households are likely to need replacement sooner. Additionally, city council drafted that the program should emphasize hiring local plumbers and electrician, and the RFP should include. These standards Yeah. 30. Modeled after Berkeley's just transition RFP, which staff presented to this committee in November 2024.

Since November, staff incorporated the committee's feedback and released the RFP in January, making sure to promote the RFP widely by reaching out to local plumbers, past applicant to sit city and c CA RFPs, and contractors recommended by trusted partners. We received three strong proposals, each showing alignment with our labor standard. All included employee benefits, prevailing wages, and a commitment to hiring Hayward based labor. One was a disabled veteran business enterprise, and another filed for a strong workforce development. Ultimately, BlackRock Rose Plumbing Inc.

Was selected as a program contractor. LPP has more than 35 of experience serving the big area with a customer satisfaction rating above 95%. They offer fixed pricing with water heater unit cost being between 6,100 to 6,900. They have installed over 500 heat pump water heaters including to low income households through Peninsula Clean Energy's energy home upgrade and in municipal settings through city of Palo Alto's emergency water heater replacement program. LVP is committed to equitable local access to quality jobs and residential decarbonization, demonstrated by their pledge to employ at least 25% local workforce on this program and the enthusiasm they needed on local our labor standard requests.

And council authorized to negotiate and execute the contract with LBP at the April 22 city council meeting. Hayward's equity focused labor standards gained recognition beyond the city. In July, staff presented this approach of the California Climate and Energy Collaborative Forum alongside BayREN, San Francisco, and Mardwisa. The panel highlighted how equity and labor practices can be integrated into residential decarbonization and climate resilience efforts. Because the program serves only low income households West Of Asperian, our marketing approach is highly targeted.

In June, staff previewed the program at the All American Festival, an event located in the service area. Door hangers, mailers, and flyers have been created for LVP to do door to door outreach in the program area, prioritizing the list of households in the low income discount program. This allows residents to meet a trusted representative and ask questions directly. The next step will be a broader outreach through emails and mailers to all residential addresses in the service area. All marketing materials direct households to a dedicated web page on the city's website where they can find program details and next steps.

Application process. So to apply, households simply call

a

dedicated phone line. This connects them to LVP's user friendly plunger platform, which is available in multiple languages, including Spanish and Mandarin. Applicants then complete a short questionnaire to confirm eligibility and provide basic information about their home, such as the location of their current water heater. Next, LVP conducts a virtual home assessment through video to better understand the household's hot water needs. If the home is a good fit, the resident signs an agreement to move forward.

Once the agreement is signed, installation is scheduled, and LVP manages the full installation process, including pulling permits and coordinating the required inspection. After installation, households completed customer satisfaction survey. City staff plan to follow-up to collect feedback and testimonies on their experience. Next steps. Staff will continue to work with LVP to market the program and strive to successfully complete 41 installations within twelve months.

Staff recommends that the committee receive public comments, review and comment on this report, and provide recommendations for future targeted outreach.

Very good report. Thank you very much. Any questions before we go to public comments?

No. I think we can go to public. I

don't I don't have questions either, so it's very good. I like the forty forty households. Right? Mhmm. That's excellent. Alright. Public comments? Yes, please, Jeff. Yeah. When is the turnaround time on getting your permit? Jeff. Please.

Well, my question is, what is the turnaround time for getting your permits? We expect it pretty quick. We've talked with the building department, and they have an instant permit process. And so we expect it same day. Same day over the counter. That's The reviews for each house? Online online, they do actually they provide for heat pump water heater instant permit. And so we've tested out the the portal, and it seems like it's gonna be an instant permit. So each one of these residences are exactly the same, or does each one present a different problem? No.

So each we're we're assuming that the water heater is going in the same location, and it's not moving, and that the panel currently has capacity for it. So in that case, we would pull a instant permit. Anything outside of that would involve design review or Yeah. A longer a longer permit process. So it could be up to three, four months before you might be able to install that heater then?

It could be in in some situations if there was a panel upgrade required and PG and E be need be involved. There could be issue because it could be a year. Sometimes. We we definitely are creative just given the the fact of of how many different water heaters that we've installed and the different manufacturers we work with. We come up with creative solutions to try and give the customer a yes in most cases.

There are cases where we end up with harder situations. Some of those get deferred in programs like that so that we can create wins for these 40, use the money wisely. But there there there's lots of solutions where we can say yes. For instance, there's a new ecological water heater. It's a newer manufacturer. They have one of the highest rated water heaters in the the country for the green factor, and they only require 14 amps. So just the the fact that we're in tune with those kind of things, we're just trying to find solutions that are yes, especially for the low income income folks. Great.

Thank you. Very good. Good questions. Thank you. And glad that you're here so you can hear about this proposal. Thank you for working with us.

Yep. I'm excited about it.

Are you in the Bay Area? Somewhere in the Alameda County?

Yeah. I'm I'm our office our headquarters is based in San Francisco. Oh, okay. I live in Half Moon Bay, but we have at least three or four people that live in the East Bay here. Uh-huh. One that lives here in Hayward. Uh-huh. We're we're a a union K. Plumbing shop.

Good.

So hiring local is normal to us. When we operate over here, it's you your local is 342. Alright. And so, originally, when we talked with you guys, we we have another another job going on in Alameda County right now with the city of San Francisco out in at the water department out there at the pump station, Sono. And we took that opportunity to ask the union for a local resident of Hayward to help us with that project. So he's already been on our payroll for about six months and knowing that this project is gonna happen. We appreciate the unique connections. Very good. This is yours or is this Citi's? We we helped create that with Citi. Yeah.

Yeah. Very congratulations on this. It's exceptional, especially where it says no cost in green.

Yeah.

I'd I'd like to mention, I'm I'm I was really excited that the city took a a labor stance on this, whereas sometimes the idea of labor, quote unquote labor, meaning, like, union or prevailing wage cost, is immediately thought of as extra or more more cost and sometimes adds layers of difficulty. And Loretta Brothers is a good example of how we can help reduce that. There's lots of really good union contractors and labor compliant contractors, union or nonunion, that are really good. And we'd we'd like to put participate in programs like that using my software. Like, we help those kind of contractors participate, wanna participate, and take out a lot of friction.

So we're hoping to see a change in the market with that idea, but we were really excited to see that Hayward was taking a prevailing wage stance on this. And in turn, we offered to hit a goal of 40 water heaters, which is pretty aggressive with that with that budget.

So That is. So thank you. And thank you very much. Anything else for Steph? No? No. Just love the program, and

I like hearing about how it's rolling out. And it's very intriguing on the value add that you bring with the software program and your interest in making sure that our local hires are respected and, you know, brought into the conversation. So well done all the way around.

We have no action items today. I'm kinda sorry about that. You know, I'm kinda sad.

We can pretend to take a vote.

And this is going to go to our council eventually, the report?

Well, eventually. I mean, when I think maybe when, when we're done with the forty one years. Well okay. But it's yeah. Council already authorized the program.

Excellent. Alright. So that's the end of that. We're going now to item number five, which is RPT two five dash zero six eight, proposed 2025 agenda planning calendar. And we're running short on time. So

Right. I don't have a presentation for this, but just It's on here. He's steady at this. Has any comments on what we

have planned? It's a good plan from what I see. Any questions on the plan on the agenda? No. No? Thank you. No? That's very good. Good proposals.

That was great. Thank you, Aaron. And then I do have just a few announcements. Okay.

And

I have one announcement myself. Go first. No. Eric is fine. He has developed. Okay. He

does. So first off, beauty forage. So we recently completed our annual report to CalRecycle, and so we just wanna share the landfill diversion rate that recently it ticked up a bit this year to 74%. So we've kind of as you can see, we've kinda hovered around that area for the last few years. So, I mean, we we see this as positive.

It's pretty good. We got positive news.

Yep. Excellent. Yes.

Next, I just want to mention that, so back in January, we presented to the committee about the energy efficiency and conservation block grant program. We had funding to do two different projects. One was the existing building electrification road map, and the Department of Energy contracted with National Renewable Energy Lab. But, unfortunately, the federal government told them to stop their work on it, so that is not currently moving forward. However, we are fortunate to still be moving forward with the streetlight retrofit half of the grant project. So we will have more to report on that soon.

And the streetlight retrofits has been funded, so we're not at risk of losing the funding. We're just,

Right. Making the Yeah. Rolling it out. Right. We still we're gonna be purchasing and installing, you know, the the retrofitted equipment and and then get reimbursed. We've and we've got a confirmation. We double triple checked with DOE that they'll get reimbursed. Yes. Important. Yeah. Yeah. And then my third and final announcement is that we have our next conference giveaway scheduled for Saturday, October 25 at the usual place at the former SkyWest Golf Course property. So Great. And that's all I have. Very good.

Those compost giveaways have been pretty popular. Jeez. One or two of those, and I'm always surprised people showing up in your bag. Yeah.

Yeah. In the landscape. So we are in September. I am from Mexico on the September 15, Mexico and a couple other republics decided that they wanna be independent. So here's a pinata to celebrate Mexican Independence Day, and it's gonna go Spider Man Independence gonna go to the person who can tell us apologies to Alex and to Eric. They're not eligible for this. So tell us how many years sustainability committee has been in existence.

No.

Best guess, when is it? Twelve. Twelve. Okay. Any more guesses? Eight. Eight. I was gonna say seven. Seven. Any more guesses? 18. 18. Wow. Alright. No? 13. 13.

36? 13. You're very good.

25. So Maria gets it. Miss Barnett does for me.

Forty five. Forty five years. This is

my favorite my favorite committee aside from stop waste and HASPA.

Thank you.

Alright. Uh-huh. And that That's wonderful.

Actually, it does sound like very simple.

No. There's nothing.

Oh, there's nothing. It's just all the things. Meeting

says to earn at 06:21, and please drive home safely, and thank you for the goodies. Second key is.

So we're

So the green clean