Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Carolyn Bloede, Director, Sustainability Department
Subject: Amendment to Agreement with Association of Bay Area Governments for Implementation of Bay Area Regional Energy Network Program
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to an agreement with the Association of Bay Area Governments (ABAG) for the implementation of the Bay Area Regional Energy Network Program increasing the amount by $330,000 to an amount not to exceed $1,608,957.
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BACKGROUND:
The Bay Area Regional Energy Network (BayREN) is a collaboration of nine Bay Area counties implementing energy saving programs on a regional level. BayREN is administered by the Association of Bay Area Governments (ABAG) with funding from the California utility ratepayers under the auspices of the California Public Utilities Commission. Since the first program cycle in 2013, ABAG has contracted with the County for local outreach for BayREN programs. On December 12, 2023, this Board adopted Resolution No. 080098 authorizing an agreement for the County to receive revenue of up to $1,278,957 from ABAG to fund local outreach support for BayREN programs in San Mateo County from January 1, 2024, through December 31, 2027.
In 2021, the Sustainability Department produced a report: “Heat Pump Water Heater (HPWH) Permit Requirements and Costs in San Mateo County” which found varied permit processes across San Mateo County that make the customer experience “more complicated when attempting to get an electric HPWH installed into a single-family home in a quick, safe, and hassle-free way.”
In 2022, this Board adopted the Community Climate Action Plan to outline a path forward to reduce greenhouse gas emissions generated in unincorporated San Mateo County and to achieve carbon neutrality by 2040 (Resolution No. 079264). To support the emissions reductions needed, the Sustainability Department developed a Building Decarbonization Strategy for San Mateo County. One of the initiatives in the strategy is facilitating a more seamless transition to electric technologies by simplifying the permitting process.
DISCUSSION:
In 2024, the Sustainability Department submitted a proposal to the BayREN Codes and Standards program (one of 10 program areas managed by BayREN), to implement a Heat Pump Water Heater Permitting Simplification Pilot to support 10 jurisdictions and unincorporated San Mateo County in simplifying the permitting process for heat pump water heaters (HPWH) to promote energy efficiency and remove barriers to the transition from natural gas to all-electric appliances. The intention is to make the HPWH permitting process more user-friendly, efficient, and aligned with the latest industry standards and best practices without overburdening planning and building departments. The proposal was approved.
With this amendment ABAG will increase funding to the County by $330,000 for reimbursement of project implementation costs associated with the proposed Heat Pump Water Heater Permitting Simplification Pilot. The end date of the contract will remain unchanged as December 31, 2027.
The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
EQUITY IMPACT:
This pilot aims to make permitting for HPWH more accessible for building owners and contractors across San Mateo County by simplifying the permitting experience at the building counter and exploring opportunities to have more consistent fees between jurisdictions. The pilot is not expected to increase the financial burden on applicants. All jurisdictions in San Mateo County were invited to participate in this pilot.
FISCAL IMPACT:
The amendment to the agreement will increase the agreement amount by $330,000 for a new not to exceed amount of $1,608,957. These funds will be included in the Sustainability Department’s FY 2025-26 Adopted Budget and in future budgets. There is no new Net County Cost associated with the agreement.
Attachment:
1. Summary of Proposed Contract by ABAG