CAEATFA01-24_-_FINAL_RFP_(06-20-24).pdf

MEMBERS

FIONA MA, CPA, CHAIR

State Treasurer

MALIA M. COHEN

State Controller

JOE STEPHENSHAW

Director of Finance

DAVID HOCHSCHILD

Chair

Energy Commission

ALICE BUSCHING REYNOLDS

President

Public Utilities Commission

EXECUTIVE DIRECTOR

Claudia Quezada, EdD

901 P Street Sacramento, CA 95814 p (916) 651-8157 f (916) 589-2855 caeatfa@treasurer.ca.gov www.treasurer.ca.gov/caeatfa

CALIFORNIA ALTERNATIVE ENERGY AND ADVANCED

TRANSPORTATION FINANCING AUTHORITY

CALIFORNIA ALTERNATIVE ENERGY

AND ADVANCED TRANSPORTATION

FINANCING AUTHORITY (CAEATFA)

REQUEST FOR PROPOSALS-Secondary

CONTRACT NO. CAEATFA01-24

OBR Servicer for the California Hub for Energy Efficiency Financing (CHEEF) Programs

Notice to Prospective Proposers

June 20, 2024

You are invited to review and respond to this Request for Proposals (“RFP”) Number CAEATFA01-24. The California Alternative Energy and Advanced Transportation Financing Authority (“CAEATFA” or the “Authority”), a public instrumentality of the State of California, seeks to retain a qualified firm (OBR Servicer” or “Contractor”) to provide assistance to the Authority with the administration of the On-Bill Repayment (OBR) feature of the GoGreen Business Energy Financing (“GGB”) program, part of the California Hub for Energy Efficiency Financing (“CHEEF”) Programs. Interested firms are invited to submit proposals in response to this RFP.

Proposals for these services must comply with the instructions included in the RFP. The RFP includes the Sample Standard Agreement the selected firm will be expected to execute. The agreement that will be entered into with CAEATFA will include by reference the General Terms and Conditions and Contractor Certification Clauses which may be viewed and downloaded online at: https://www.dgs.ca.gov/OLS/Resources/Page- Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language. The General Terms and Conditions and all Exhibits that are a part of the Sample Standard Agreement are not negotiable. By submitting a proposal, your firm agrees to the terms and conditions stated in this RFP.

In the opinion of CAEATFA, this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, the contact person for this RFP is:

Chor Vue

California Alternative Energy and Advanced Transportation Financing Authority

901 P Street Sacramento, CA 95814

(916) 653-3033 caeatfa@treasurer.ca.gov

Questions regarding this RFP must be submitted in writing no later than June 27, 2024 at 12:00 p.m. (noon) PT.

Responses to the questions will subsequently be posted within several days in the California State Contract Register (CSCR) and the CAEATFA website.

Please note that no verbal information provided will be binding upon the State unless such information is issued in writing as an official addendum.

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:caeatfa@treasurer.ca.gov

Table of Contents – RFP CAEATFA01-24

A. PURPOSE AND DESCRIPTION OF SERVICES

1. Introduction

2. CAEATFA Background and Overview

3. Energy Efficiency Financing Programs Background and Overview

4. Scope of Work

5. Term of Agreement

6. Anticipated Contract Milestones

B. MINIMUM QUALIFICATIONS FOR PROPOSERS

C. PROPOSAL REQUIREMENTS AND INFORMATION

1. Key Action Dates

2. Questions and Answers

3. Content and Format of Proposals

4. Submission of Proposals

5. Evaluation Process

6. Award and Protest

7. Disposition of Proposals

8. Agreement Execution and Performance

D. PREFERENCE PROGRAMS

1. Small Business or Microbusiness Preference

2. Non-Small Business or Microbusiness Preference

3. Disabled Veteran Business Enterprise (DVBE) Incentive Program

4. Target Area Contract Preference Act (TACPA)

E. REQUIRED ATTACHMENTS

Attachment 1 – Required Attachment Checklist Attachment 2 – Proposal/Proposer Certification Sheet Attachment 3 – Resumes of Key Personnel and Experience Attachment 4 – Proposer References Attachment 5 – Cost Proposal Worksheet Attachment 6 – Payee Data Record (STD 204) Attachment 7 – Contractor Certification Clauses (CCC-04/2017) Attachment 8 – Darfur Contracting Act Certification Attachment 9 – California Civil Rights Laws Certification Attachment 10 – Generative Artificial Intelligence Disclosure and Factsheet (STD 1000) Attachment 11 – Small Business or Microbusiness Preference (only if applicable) Attachment 12 – Non-Small Business or Microbusiness Preference (only if applicable) Attachment 13 – California Disabled Veteran Business Enterprise (DVBE)

Program Participation Instructions (only if applicable) Attachment 14 – Target Area Contract Preference Act (TACPA) (only if applicable) Attachment 15 – Bidder Declaration (GSPD 05-105)

F. SAMPLE STANDARD AGREEMENT (STD 213)

Exhibit A – Scope of Work Exhibit B – Budget Detail and Payment Provisions Exhibit C – General Terms and Conditions (GTC 04/2017)

(https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language)

Exhibit D – Special Terms and Conditions Exhibit E – Additional Provisions Exhibit F – Third-Party Agreement Provisions

Attachment 1 to Exhibit F – Information Security Requirement http://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-http://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-

California Alternative Energy and Advanced Transportation Financing Authority Request for Proposals No. CAEATFA01-24

A. PURPOSE AND DESCRIPTION OF SERVICES

1. Introduction

The California Alternative Energy and Advanced Transportation Financing Authority (“CAEATFA” or the “Authority”) seeks proposals from which to select a qualified firm (“OBR Servicer” or “Contractor”) to provide assistance to the Authority with the administration of the GoGreen Business Energy Financing Program (“GGB Program” or “Program”), authorized by the California Public Utilities Commission (“CPUC”), which is currently offering financing to the public. In particular, the Program is offering a feature, On-Bill Repayment (“OBR”), which requires the OBR Servicer to transfer payments from utility billing systems to participating private finance companies. This feature requires daily transmission of data through defined protocols and transfer of funds collected through four different utility billing systems to be remitted to multiple finance companies. Other forms of on-bill financing or on-bill repayment have been adopted throughout the country, but all have been between a single utility and a single financing entity. This is the first such offering to connect multiple billing systems and multiple financing entities.

The selection of the OBR Servicer will be based not only on the reasonableness of the proposed fees, but also on assurances that the selected firm will provide competent and responsive service to CAEATFA in all subject areas described in the Scope of Work (Section A.4.) and will meet or exceed the Minimum Qualifications for Proposers (Section B). The ideal proposer possesses knowledge of, and experience with, most or all of the following: account administration; data management and protection of personally identifiable information; working in a regulated environment; reporting; and development and maintenance of financial product servicing data files to enable On-Bill Repayment.

Demonstration of relevant experience should focus on similar services. The firm must be free from actual conflicts of interest not only at the time of selection, but throughout the term of the OBR Servicer Contract (“Contract” or “Agreement”). The firm must be immediately available to provide the services that will be set forth in the Contract.

This RFP solicits responses from firms qualified to provide services to support CAEATFA’s GGB Program that operates within the territories of the California investor-owned utilities: Pacific Gas and Electric Company (“PG&E”), San Diego Gas & Electric Company (“SDG&E”), Southern California Edison Company (“SCE”), and Southern California Gas Company (“SCG”) (each an “IOU,” and collectively, the “IOUs”). Broadly, these services fall into a few major areas:

• On-Bill Repayment servicing:

o Receive customer financing data from GGB’s online platform, as well as through direct communications from the Program and participating finance companies and exchange such data with the IOUs for placement on the customer’s utility bill.

o Receive customer payment data and funds from IOUs and distribute to participating finance companies by establishing the accounts and processes to ensure a secure cash-flow. Notify participating finance companies and IOUs, as appropriate and manage the transfer of funds.

o Troubleshoot data exchanges with the IOUs to ensure regular data transmissions.

o Provide reporting to CAEATFA, participating finance companies, and others.

o The requirements of these services are further detailed in the Scope of Work section.

All proposals submitted to perform these services must explain the experience and qualifications of the firm which demonstrate the firm’s ability to provide these services. Failure to provide all of the requested information, or deviation from the required format, may result in disqualification. CAEATFA reserves the right to reject any or all proposals.

Attached as Section F hereto is a proposed sample Contract for the services to be provided pursuant to this RFP. It includes the STD 213 Standard Agreement and other standard contract provisions to which the selected Contractor will be bound.

2. CAEATFA Background and Overview

CAEATFA works collaboratively with public and private partners to provide innovative and effective financing solutions for California’s industries, including access to low-cost financing through private activity tax-exempt bonds and loans, and other forms of financial assistance. CAEATFA assists in reducing the state’s greenhouse gas emissions by increasing the development and deployment of renewable energy sources, energy efficiency, and advanced transportation and manufacturing technologies to reduce air pollution, conserve energy, and promote economic development and jobs.

CAEATFA is housed within the office of the State Treasurer.

CAEATFA’s Board consists of five members: the State Treasurer, who serves as Chair of the Authority; the State Controller; the Director of the Department of Finance; the Chair of the California Energy Commission (“CEC”); and the President of the California Public Utilities Commission (“CPUC”). CAEATFA’s enabling legislation is contained in the California Alternative Energy and Advanced Transportation Financing Authority Act, Division 16 (commencing with Section 26000) of the California Public Resources Code.

CAEATFA assumed the role of the administrator of the California Hub for Energy Efficiency Financing (CHEEF) in 2013. CAEATFA serves as a facilitator among multiple stakeholders, including among others, the CPUC, the IOUs, lenders, and energy efficiency retrofit contractors. Its responsibilities include the management of the credit enhancement, flow of funds and data for the Programs, and provision of an over-arching structure through which those stakeholders can participate in a standardized “open market” that facilitates financing of energy efficiency projects in California.

CAEATFA promulgates regulations for the Programs through the public rulemaking process, and develops standard program documentation for use by FCs, contractors and project developers, and borrowers. The CPUC further directed the IOUs to contract with CAEATFA to establish procedures, terms and conditions for the primary CHEEF functions of fund management, financial product data and borrower data management, and on-bill repayment (OBR) mechanisms.

In addition, CAEATFA enters into contracts for services necessary to implement the Programs, including the OBR services as contemplated by this RFP. The OBR Servicer will transfer payments as well as receive and distribute data between utilities and finance companies.

3. Energy Efficiency Financing Programs Background and Overview

The GoGreen Business Energy Financing (“GGB”) Program is part of a group of Pilot Programs first authorized by the California Public Utilities Commission in Decision D.13-09-044 (September 2013), as later modified by D.15-06-008, D.15-12-002, and D.17-03-026. The financing Pilot Programs were established to “test new and innovative strategies…to help leverage ratepayer and private financing to assist in achieving our aggressive energy efficiency goals, as later articulated by Senate Bill 350 (DeLéon, 2015) which calls for a doubling of energy efficiency in buildings by 2030.”1 These pilot programs focus on attracting and leveraging private capital, given that we cannot meet the State’s energy efficiency goals using traditional approaches of IOU rebates and incentives, or on ratepayer or taxpayer dollars alone.

GGB went live in 2019, with the On-Bill Repayment component becoming available across the various IOUs in 2022 and 2023. In 2023 the CPUC authorized further expansion of installations financed by the Program to include other forms of clean energy beyond energy efficiency. In conjunction with the other Pilot Programs, GGB creates a centralized and standardized platform to develop an open-market infrastructure to encourage additional private capital investment for energy efficiency retrofits, while lowering financing costs and expanding access to capital for California businesses. GGB uses two mechanisms to help promote uptake of energy efficiency upgrades. One is a Credit Enhancement (“CE”) in the form of a loan loss reserve; this is not part of this RFP. The second mechanism is On-Bill Repayment (“OBR”) which allows the repayment of the customer’s

1 D. 17-03-026, page 2 private financing agreement through their bill with one of the four IOUs. OBR is intended to “test whether payment on the utility bill increases debt service performance across market sectors.”

A collaborative effort between CAEATFA, the CPUC and the IOUs, the Pilot Programs may provide over $30 million in credit enhancements; $10 million in marketing, education, and training; OBR functionality and a centralized data portal. These funds are split between GGB and CAEATFA’s single-family residential program. In the future, funding sources may change, eligible projects may be expanded to include additional measures, and the programs may be expanded to include project sites throughout California, not just within IOU territories.

The GoGreen Business Energy Financing Program includes a CE for participating finance companies (referred to in this document as “FCs”) serving small businesses. Small businesses are defined as those with either 1) fewer than 100 employees; 2) annual revenues less than $16 million;

or 3) meeting the SBA’s size requirements for a small business. The GoGreen Business pilot currently has eight enrolled FCs, and enrolled its first financing in July 2019 under a limited launch. Also in 2019 the existing Master Servicer launched a web-based user interface to assist in collecting data from participating contractors and FCs. The GoGreen Business Program supports loans, leases, service agreements and savings-based payment agreements. As of Q1 of 2024, the Program has four finance companies participating in On-Bill Repayment, one IOU with active OBR projects being repaid through their bill, and three IOUs which are testing OBR with plans to offer this in the near future.

On-Bill Repayment (“OBR”) Functionality is being offered to incentivize customers to install clean energy upgrades through the GoGreen Business program. Customers appreciate the convenience of repaying their financing agreement through a line item on their utility bill and appreciate the ability to treat energy upgrades as an operating expense. Lenders also appreciate OBR as it provides a billing service for collection of payments ,and it allows a form of enforcement with the possibility of disconnection. OBR is opening new opportunities for program growth and uptake from customers by offering additional value propositions of convenience and flexibility along with the program’s credit enhanced financing.

Operational Reserve Fund: The operational reserve fund (“ORF”) is designed to cover unintended delays in remittances of customer payments to lenders that participate in the on-bill repayment pilots, resulting from a variety of circumstances. The ORF is designed to mitigate risk to lenders in receiving delayed customer payments due to interruptions in the normal remittance process that were no fault of the lender. ORF usage is designed to be used on a temporary basis and is to be reimbursed when the delay to the remittance process is cured.

The Energy Efficiency Financing Programs Implementation

As noted above, GGB encompasses multiple market sectors with different approaches to each.

Broadly, however, GGB uses two tools to incent lenders to participate in the program: the Credit Enhancement and servicing assistance through OBR, through which customers repay financing charges via the utility bill.

While this RFP includes common terms such as “borrower,” “lender,” “loans,” “leases,” and “financings,” the GGB Program supports multiple types of financing products, including: loans, leases, equipment finance agreements, retail installment contracts, and energy service agreements. The GoGreen Business Program has also partnered with and continues to recruit various types of financing providers, including: banks, credit unions, community development financial institutions, lease companies, and energy service companies.

To view the GoGreen Business program regulations, please see Sections 10092.5-10092.8 of the California Code of Regulations for details about program requirements and project submission, and Section 10092.15 for regulations detailing OBR. Also at CAEATFA’s website:

(https://www.treasurer.ca.gov/caeatfa/cheef/sblp/regulations/current.pdf) https://www.treasurer.ca.gov/caeatfa/cheef/sblp/regulations/current.pdf

Further program information provided to consumers and program users can be found at gogreenfinancing.com.

4. Scope of Work

Under the general direction, in writing, of the Executive Director of CAEATFA, or their designee, the OBR Servicer agrees to provide services as described.

Given the various stages of development, the OBR Servicer must be able to accommodate any pre-existing business rules and infrastructure, as described herein, to ensure there is no break in services under the GoGreen Business Program. In addition, given the rigorous public process CAEATFA undertakes to develop and improve the Program, the OBR Servicer should expect some variances and modification to operational processes to accommodate stakeholder input and lessons learned in pilot design throughout the term of the Contract.

A. Secure Data Receipt and Transmission with CAEATFA and Program Participants

i. Receipt of data:

a) The OBR Servicer may receive data from CAEATFA and Program Participants (such as participating finance companies) related to:

1. New projects/finance agreements for enrollment in the program and repayment through OBR;

2. Periodic enrolled financing status reporting including changes in ownership, participation status in OBR, and monthly payment amounts billed through OBR.

b) The data and file characteristics may include:

1. Electronic data;

2. CSV or Excel files;

3. PDFs or image files;

4. Plain text data files with predefined file layouts;

5. Emails with instructions;

6. Notifications related to the status of submissions for participation in OBR; and

7. Electronic signatures.

ii. Transmission and making available of data:

a) The OBR Servicer will transmit or make available electronic data and files, as described to CAEATFA, (including CAEATFA’s Agents, e.g., a Trustee Bank).

b) The OBR Servicer will transmit or make available data to Program Participants related to specific projects for participation in OBR, such as documents authorized by the customer, data submitted by the Program including financing agreement and utility account information, data submitted by participating FCs including payment information, and data submitted by the utilities including remittance information.

iii. Capacity to receive and transmit data and files via secure FTP and automated interfaces:

a) Data receipt and transmission must support FCs who utilize both “low tech/manual” and automated processes. The need to develop automated interfaces or APIs with any of the parties listed above will be determined on a case-by-case basis in consultation with

CAEATFA.

c) Files must be securely encrypted at rest and while in transit.

d) The OBR Servicer may also be required to engage in coordination and testing with each parties’ system to enable data exchange.

B. Secure Data Storage and Management

The OBR Servicer may be responsible for:

i. Storing data related to:

a) Enrolled financing agreements with corresponding financing terms, customer information, project information, certifications and electronic signatures;

b) Participating FCs and approved financing terms; and

c) Utility account and payment information related to OBR.

ii. Maintaining a data platform with the capacity to:

a) Create custom data fields and relational tables unique to Program requirements;

b) Create records that include information about the customer, the utility account, the project, and financing terms;

c) Relate these records to the Program;

d) Store associated image files with records (e.g. PDFs of customer OBR Authorization forms);

e) Periodically update data (e.g. changes in OBR participation status);

f) Remove PII from files, anonymize and aggregate data in line with CAEATFA guidelines prior to transmitting it to CAEATFA or any parties at CAEATFA’s request;

g) Secure PII data in conformity with the California Information Practices Act; and

h) Comply with IOU data security requirements as specified in Exhibit F and Attachment 1 to Exhibit F in the Sample Standard Agreement (Section F).

iii. Transfer of Functionality and Data: The OBR Servicer shall ensure that its systems, policies, and procedures facilitate the transfer of all data collected under this Contract to CAEATFA or its designee at the end of the Agreement term, at no additional cost to CAEATFA.

C. Coordination

The OBR Servicer will coordinate the functions described in this RFP with the IOUs, Program Participants and with CAEATFA, as directed by CAEATFA.

D. Secure On-Bill Communication with IOUS

The OBR Servicer will communicate with the IOUs, Program Participants and with CAEATFA, as directed by CAEATFA, to perform services which include:

i. Coordination and testing of the transmission of data and funds related to customer remittances with each of the IOU’s unique processes and systems for file and data exchange, both automated and manual.

ii. The OBR Servicer’s system must support daily asynchronous transmission of datasets with all four IOUs. The OBR Servicer’s system must comply with predefined file layout specifications and sequencing protocols known as the CHEEF IOU Data Exchange Protocol (“IOU-DEP”). While the CHEEF IOU DEP provides the current agreed-upon protocol, this may change from time to time as IOU billing systems and their technologies are modified, and the programs are modified.

a) Most of the file transmissions follow a two-way request-reply pattern while some are one-way exchanges that report the occurrence of an event or serve reconciliation purposes.

b) The file characteristics of the IOU-DEP include: plain text data contents; character delimited, fixed or variable length column structures without header row; each row represents a distinct dataset; includes trailer record for error detection.

c) The files must be securely encrypted at rest and while in transit.

d) The OBR Servicer's system must be capable of supporting Secure FTP for these data exchanges.

e) At CAEATFA's direction, prior to commencing operations, the OBR Servicer may be required to demonstrate that its system meets the business and technology requirements that guided its design and customization. This demonstration may be conducted with each of the four IOUs (and potentially the FCs).

iii. Receipt of information regarding various events (e.g., confirmation of charge placed on the bill, payment of financing charges, service disconnection, customer bankruptcy, customer removal from OBR) from IOUs, appropriate processing of the information, execution of any necessary action based on the event, and notification of relevant Program Participants.

iv. Receipt of customer authorization to place charges on bill, including relevant data and releases; receipt of FC authorization and certification to place finance charges on bill; and transmission of data and releases to relevant IOU.

E. Processing of On-Bill Remittances

i. Provide the necessary and appropriate security and controls to enable a secure flow of funds.

Develop processes (automated and/or manual) that govern the flow of customer remittances such that these remittances flow from IOUs into segregated accounts that restrict the flow of the accounts in a way that:

a) Allows CAEATFA to approve process or templates governing the flow of funds out of the accounts;

b) Restricts the remittances from such accounts such that only CAEATFA-approved FCs are able to receive such funds; and

c) Restricts remittances from such accounts so that the OBR Servicer will be unable to transfer funds to any account other than such CAEATFA-approved account.

ii. Receive daily files or reports from IOUs. On each business day the IOUs transmit to the OBR

Servicer a daily report showing, for OBR, all funds received by each IOU, and all funds remitted to the OBR Servicer (via remittance deposit bank), with each amount associated with the unique customer identifier described above. The OBR Servicer shall take appropriate action as described in “Daily Fund Remittance Processing” (Section 4.G.v) below and in “Operational Reserve Fund (ORF) Management” (Section 4.G.xiv) below.

iii. Perform fund management, reconciliation and notification. The OBR Servicer will perform account holding, fund management and reconciliation functions consistent with its conduit function, transferring customer financing payments between IOUs and FCs, and will deliver all associated notifications to IOUs, CAEATFA, and FCs.

a) Within one business day of an electronic fund remittance from an IOU clearing in an IOU remittance deposit account, the OBR Servicer will process and reconcile the funds and associated data and issue a deposit directive, forwarding customer fund payments to FCs along with associated data files linking each fund transfer with a specific enrolled financing.

b) The OBR Servicer will reconcile customer payments received from the IOU and provide appropriate notifications to the applicable FC.

iv. Process On-Bill Repayment Customer and First Charge Enrollment. Each time the OBR

Servicer receives a request from a FC to enroll an OBR financing in the Program, the OBR Servicer will, through the IOU-DEP process, transmit the specified customer account information to the IOU for enrollment. The OBR Servicer will receive through the IOU-DEP process a response transmission accepting or rejecting the customer's enrollment. An acceptance response will also identify the customer’s estimated bill cycle day. The OBR Servicer will report to the FC the outcome of the enrollment attempt through the Lender Communications process. The OBR Servicer will, through the IOU-DEP process, transmit the monthly OBR charge amount to the IOU prior to the next occurring bill cycle day as established by the enrollment acceptance. The OBR Servicer will report to the FC the outcome of the first monthly OBR charge transmission attempt through the Lender Communications process.

v. Perform Daily Fund Remittance Processing. Upon receiving notice of a fund remittance into a remittance deposit account for any IOU, including receipt of the associated IOU daily report file, the OBR Servicer will acknowledge receipt of the file and funds. The OBR Servicer will separate the funds into the amount due to each FC, and initiate the transfer order directing the transfer of such funds to the appropriate FC within one business day of such funds clearing in the IOU’s remittance deposit account. The OBR Servicer must also use the Lender DEP process to notify the FC of the details of each transfer of funds.

a) The OBR Servicer will transfer the available amount as appropriate and determine whether to utilize the Operational Reserve based on its analysis of information that each IOU provides in its daily report.

b) The OBR Servicer shall initiate an Operational Reserve payment and reimbursement as described in “Operational Reserve Fund (ORF) Management” (Section 4.E.xii) below and further delineated by CAEATFA’s forthcoming program regulations and procedures.

The OBR Servicer will also be responsible for the following services:

vi. On-Bill Repayment Recurring Monthly Charge. After the initial customer enrollment in OBR, the OBR Servicer must continue to transmit the monthly OBR charge amount to the appropriate IOU each month prior to the bill cycle cutoff day of each customer enrolled in the Program that includes on-bill repayment. The OBR Servicer must design and implement controls to ensure only one (1) monthly OBR charge transmission is accepted by the IOU in a rolling monthly IOU billing period for each enrolled customer. The OBR Servicer must track and store modifications to the monthly OBR charge amount as received from FC through the Lender Communications process. The OBR Servicer must track and store each customer's bill cycle day as first received from the IOU through the IOU-DEP process. The bill cycle day may be modified at any time by the IOU through the IOU-DEP process.

vii. On-Bill Repayment Charge Remittances. Each business day where there is OBR payment activity, the OBR Servicer will receive from the IOUs through the IOU-DEP process a transmission detailing transactions associated with the OBR payment activity.

viii. On-Bill Repayment Billing Delays. Each business day where the IOU is unable to bill the customer as intended, the OBR Servicer will receive from the IOUs through the IOU-DEP process a transmission identifying the impacted account(s). The OBR Servicer must track and store this data for reporting to the FC through the Lender Communications process. The OBR Servicer shall, per program regulations and procedures, take steps to initiate an Operational Reserve payment, if required, and reimbursement when appropriate, as described in “Operational Reserve Fund (ORF) Management” (Section 4.E.xii) below.

ix. On-Bill Repayment Servicing Exceptions. The IOUs will notify the OBR Servicer through the

IOU-DEP process of certain information pertaining to enrolled OBR customer's utility bill repayment status. This information is defined by the IOU- DEP and may include: past due account notices, disconnection warnings, and notice of service disconnection. The OBR Servicer must track and store this data for reporting to the FC through the Lender Communications process. The OBR Servicer's system must also interpret this data and, under specific conditions, initiate the customer removal process from the OBR program.

x. On-Bill Repayment Removal. The OBR Servicer may also receive requests from FCs or IOUs to remove the customer from the OBR program and the subsequent customer finance charges from the utility bill. The IOU will notify the OBR Servicer through the IOU-DEP process. The FC will notify the OBR Servicer through the Lender Communications process.

Upon receiving notice to remove a customer from OBR from a FC or IOU, the OBR Servicer will use the IOU-DEP process to instruct the IOU to remove the charge from the utility bill.

The OBR Servicer must track and store the change in customer OBR enrollment status and report to the FC through the Lender Communications process.

xi. IOU Customer Billing and Payment History. At financing origination, a FC may, at its option, request to receive a customer’s utility billing and payment history using the appropriate customer release form. When this occurs, the OBR Servicer will receive this request and transmit it to the relevant IOU. No further action on the part of the OBR Servicer shall be required.

xii. OBR Servicer Operational Reserve Fund (ORF) Management. The OBR Servicer shall review daily all IOU remittance reports received from IOUs to:

a) Identify when the ORF will be used, consistent with the program regulations and procedures, including both delayed billing and partial/returned payment scenarios.

b) Make a daily determination if the aggregate net dollar amount of full, partial, and returned payments reported to the OBR Servicer by an IOU will be sufficient to fund the FCs corresponding to the amount each customer has paid, identified in the remittance report.

c) Direct the transfer of funds from the Operational Reserve, if appropriate, to the appropriate FC if sufficient funds are not received from an IOU as determined by program regulations and procedures.

d) After Operational Reserve usage and upon subsequent receipt of funds from an IOU, the OBR Servicer will be required to transmit such funds to the ORF account, to replenish the Operational Reserve fund, as determined by program regulations and procedures.

e) Notify CAEATFA of any receipt or transfer of ORF funds.

Prior to commencing operations, the OBR Servicer may be required to adjust or customize its existing servicing and cash management systems and develop policies and procedures necessary to perform the Operational Reserve fund management functions set forth above.

To the maximum extent possible, to the extent it creates efficiency and increases program effectiveness, each process should leverage existing infrastructure and systems. At CAEATFA's direction, prior to commencing operations, the OBR Servicer may be required to demonstrate that its system meets the business and technology requirements that guided its ORF management design and customization.

F. On-Bill Repayment Communication with FCs and Storage of Data

i. The OBR Servicer’s system must support daily asynchronous transmission of datasets with all participating lenders. The OBR Servicer’s system must comply with predefined file layout specifications and sequencing protocols in a reporting format known as Lender Communications.

ii. The file transmissions are one-way exchanges (to the FC and from the FC) that report current financing summary level information for each enrolled financing, the occurrence and details of a remittance transactions, relevant event occurrences (such as confirmation of enrollment, confirmation of charges, past due notices, service disconnect), and data that needs to be timely communicated to the IOU and FC (such as customer monthly financing charge amount, modified customer monthly finance charge amount, or removal from OBR). The datasets and transmissions are tightly coupled with the IOU-DEP data exchanges.

iii. The file characteristics of Lender Communications include: plain text data contents; character delimited, variable length column structures with header row; each row represents a distinct dataset; includes trailer record for error detection.

iv. The files must be securely encrypted at rest and while in transit.

v. The OBR Servicer's system must be capable of supporting Secure FTP for these data exchanges.

vi. At CAEATFA's direction, prior to commencing operations, the OBR Servicer may be required to demonstrate that its system meets the business and technology requirements that guided its design and customization. This demonstration may be conducted with each of the FCs (and potentially the four IOUs).

vii. The OBR Servicer will coordinate the functions described in this RFP with the IOUs, FCs and with CAEATFA, as directed by CAEATFA.

G. As Needed

i. The OBR Servicer will be required to on-board an existing portfolio of financing agreements that are enrolled in the GoGreen Business Program, and customize its servicing to implement the OBR Servicer and IOU Automated Data Exchanges that have been adopted by the IOU stakeholders as described herein.

ii. The OBR Servicer will assist and work with CAEATFA staff to ensure the most effective design of its operations related to the scope of this Agreement, keeping in mind the user experience (FCs, Customers, IOUs and CAEATFA).

iii. This program is a pilot, and OBR Servicer should assume that modification to processes will be necessary from time to time during the pilot and implementation period to incorporate lessons learned. In addition, given the anticipated transition of the pilots intro longer-term programs, modifications should be anticipated on the types of customers (available throughout California and not just IOU territories) and the types of measures that may be financed.

iv. The OBR Servicer will work with CAEATFA to respond to any Public Records Act (“PRA”) requests presented.

v. The OBR Servicer is not expected to directly receive or respond to any consumer complaints but will be available to consult with and support CAEATFA as necessary.

vi. The OBR Servicer will attend meetings as needed to collaborate with CAEATFA and stakeholders, such as IOUs, and FCs, to discuss and provide guidance on integration with the broader program processes and protocols.

vii. The OBR Servicer will develop a work plan, in coordination with CAEATFA staff, to demonstrate how it intends to implement the items set forth in the Scope of Work. Given the various pilots and sequential development and modifications to incorporate lessons learned that are anticipated over time, specific work will be governed by task orders.

5. Term of Agreement

The term of the Agreement will be for an eighteen-month period beginning August 1, 2024 through January 31, 2026 and may not exceed $274,500.00. At the sole discretion of CAEATFA, there will be an option to extend this agreement for up to eighteen months and an additional $274,500. The effective date is either the proposed award date (Section C, Item 1), or the date of approval of the Agreement by DGS, whichever is later. No work shall commence until the effective date.

Any customer accounts that require ongoing servicing after the Agreement ends will be transferred to an alternate OBR service provider as directed by CAEATFA. OBR Servicer will be required to assist and support the transfer of servicing functions and data to the alternate provider at no additional fee to the Authority.

6. Anticipated Contract Milestones

Day One = A (Approved) A + 1 week First meeting between CAEATFA and Contractor. CAEATFA will provide additional background materials on programs, and adjust timeframes for servicing functionality if necessary at CAEATFA’s direction. On-Bill Repayment (review of Data Exchange Protocol, assessment of required infrastructure and functionality).

A + 2 weeks OBR Servicer provides work plan to accomplish deliverables within timeframes to CAEATFA. OBR Servicer begins work on establishing ability to transmit data, files, and funds.

A + 3 weeks OBR Servicer has established ability to transmit data in required formats.

A + 4 weeks OBR Servicer assumes OBR file and data exchange and servicing duties.

Ongoing, As Needed Continued working meeting between OBR Servicer, CAEATFA, IOUs and

FCs to establish and maintain OBR functionality.

B. MINIMUM QUALIFICATIONS FOR PROPOSERS

In preparing your proposal, please provide your firm’s responses to the following requirements in the order listed in this RFP. Failure to meet the minimum qualifications will cause your proposal to be considered unresponsive and the proposal will be disqualified.

The firm must have, at a minimum, the following qualifications and experience:

1. Proposer and any subcontractor identified in the proposal must be qualified to do business in the State of California. Proposer must submit evidence with its proposal demonstrating compliance with this requirement (See Attachment 8).

2. Firm must ensure compliance with the National Automated Clearing House Association

(NACHA) Operating Rules.

3. Firm must have been in operation for a minimum of three (3) years providing the types of services required under the Contract, and must possess:

a. Experience operating as an OBR Servicer or with on-bill repayment with multiple utilities.

b. Proven ability to manage data securely, including annual (SSAE 18 (Standards for Attestation

Engagements No. 18, American Institute of Certified Public Accountants (AICPA)) Type II reports on the firm’s internal controls (or an equivalent independent review of data security measures acceptable to CAEATFA).

4. A written set of policies related to Quality Assurance and Controls.

5. Firm must confirm that it meets all requirements to do business with the State of California by completing all required Attachments (1-16).

C. PROPOSAL REQUIREMENTS AND INFORMATION

1. Key Action Dates

Prospective proposers are hereby advised of the following estimated schedule. Dates are subject to change due to administrative processing. Proposers must adhere to the RFP response submission due date and time.

Date Action June 20, 2024 RFP available to prospective proposers.

June 27, 2024 at 12:00 pm PT Deadline for submission of written questions. Responses to the questions will be posted within several days in the California State Contract Register (CSCR) and the CAEATFA website

July 8, 2024 at 12:00 pm PT Deadline for submission of proposals. Proposals must be received by CAEATFA at 901 P Street, Sacramento, CA 95814, or Hand Delivered to 801 Capitol Mall, 2nd Floor, Sacramento, CA 95814.

July 8, 2024 – July 9, 2024 Determination and evaluation of responsive proposals by an evaluation committee.

July 10, 2024 Notice of Intent to Award.

August 1, 2024 Anticipated commencement of agreement.

2. Questions and Answers

In the Opinion of CAEATFA, this RFP is complete and without the need of explanation. However, if you have questions, or should you require any clarifying information, please email caeatfa@treasurer.ca.gov. Questions regarding this RFP must be submitted in writing no later than June 27, 2024 at 12:00 pm PT. Responses to questions will be provided within a couple of days and will be made available in the California State Contracts Register located at https://caleprocure.ca.gov/ and the CAEATFA website.

3. Content and Format of Proposals

This RFP, the evaluation of the proposals and the award of any resultant Contract will be governed generally by the rules of this section and applicable State policy. The Bidder Instructions (https://www.dgs.ca.gov/-/media/Divisions/PD/PTCS/GSPD/Bidders-Instructions.ashx) provide general information for potential proposers describing how to provide a responsive proposal.

Proposals must be organized in the format shown below and contain all of the information listed:

A. Table of Contents

B. Executive Summary

Summarize the highlights of the proposal and how the types of services required are addressed.

i. Conflicts of Interest. Firms must disclose any business relationships which may be construed to be potential conflicts of interest. CAEATFA may request interviews of firms for the purpose of clarifying any situations that could be construed to be a conflict of interest, and has the sole and exclusive authority to disqualify a firm if CAEATFA determines a conflict exists.

mailto:caeatfa@treasurer.ca.gov https://caleprocure.ca.gov/ http://www.dgs.ca.gov/-/media/Divisions/PD/PTCS/GSPD/Bidders-Instructions.ashx) http://www.dgs.ca.gov/-/media/Divisions/PD/PTCS/GSPD/Bidders-Instructions.ashx)

ii. Legal Actions. Describe any and all instances within the past 24 months of your firm’s or any of its principals’ involvement in any litigation, arbitration, disciplinary or other official actions arising from the firm’s business.

iii. Investment of Public Funds. Please identify any known restrictions and/or limitations your firm may have regarding the investment of public funds.

C. Firm Qualifications and Experience

CAEATFA expects to have a close working relationship with the selected firm as evidenced by the Scope of Work listed above, and requires the demonstration of a high degree of experience, training and proficiency in the conduct of the various functions performed. The firm should have a background in OBR Servicer operations, practices and requirements. In addition, CAEATFA expects that the selected firm will comply with current OBR Servicer standards and trends and will maintain appropriate expertise at the firm’s own expense.

This section is intended to provide an opportunity for the firm to demonstrate its qualifications.

Information provided will be used in the evaluation process as outlined in Section C, Item 4.

i. Qualifications of the Firm. The Contractor must demonstrate a high degree of experience, training, and proficiency in the various functions to be performed under the Scope of Work. In addition, CAEATFA expects that the Contractor will be up-to-date with the most recent best practices and trends, and must maintain appropriate expertise and technology at the firm’s own expense.

ii. Experience as Contractor. Discuss the overall experience of your firm that demonstrates its ability to successfully complete the Scope of Work (Section A, Item 4) and meet the Minimum Qualifications (Section B). Experience should include recent OBR Servicer services provided to state entities and others with similar projects.

Provide a detailed list of your firm’s OBR Servicer engagements during the last three (3) years and provide a brief description of each scope of work as an attachment. Include the locations of firm offices as well as the name, title and telephone number of a contact for the firm. Include a description of the types of financial instruments, amounts, and terms, total number of accounts serviced/underwritten, geographic service area and number of financing/loan/lease originators involved in financing/loan/lease portfolio. Discuss experience in providing services for other government programs, if any, and for other agencies or utilities with similar projects. Include a discussion of any unique strengths possessed by your firm.

Discuss all processes to be used for Quality Assurance and Quality Controls. Describe all processes and systems used for storing of confidential and/or personally identifiable information.

a) Provide information on whether your firm has been rated by a credit rating agency and, if applicable, submit the latest rating report of such agency.

b) Provide information related to your data security, privacy, and any experience working within financial institution regulatory requirements, as well as experience with both bank and non-bank (e.g., credit union) partners, backup/redundancy protocols and capabilities.

An annual SSAE18 Type II audit review of relevant operations is required.

c) Provide a listing of other state or local governments or utilities for which the firm has acted, or is currently acting as a OBR Servicer; the length of time engaged on such projects; the nature of services provided; and a contact person with address and telephone number.

d) Describe any experience your firm has with the energy or renewable/efficiency industries.

e) Identify any proposed subcontractors and the functions to be assigned to each of them.

iii. References. Submit a list of at least three references (clients) to which the firm has provided similar servicing within the past five (5) years, and contact numbers for each (Attachment 4).

D. Personnel Qualifications and Experience

Identify the personnel who will be providing the services required by the proposal, including the role of each staff member who will perform services pursuant to the Contract, his/her title, the percentage of the total firm effort under this contract that shall be provided by that individual, and years and type of experience for each person. Experience should include number of years at current firm as well as all prior service.

Experience in OBR Servicer engagements should be detailed, including OBR Servicer engagements for State governmental agencies, or service as an OBR Servicer consultant to a State agency, as well as private industry experience. Include an organization chart showing functions, positions, and titles of professionals in your firm, including any subcontractor firm(s) that your firm intends to use in performance of its duties under the Contract.

i. Key Personnel. Complete Attachment 3 regarding the key personnel (include partners and associates) who will be directly involved in providing the services required under the contemplated Contract. Provide a brief description of the background and experience of each individual, both at current firm and all prior service. Identify the role of each staff member who will serve in the Contract, his/her title, and the percentage of the total firm effort that will be provided by that individual.

ii. Resumes. Provide detailed resumes for individuals who will be directly involved in providing the services under the Agreement, including any proposed subcontractor firms and their employees.

The firm must ensure that the quality and availability of its personnel assigned to this Contract, including staff of subcontractors (if any), will be maintained over the term of the Agreement. Any changes in assigned personnel are at the discretion of the firm, provided that the qualifications and experience of any replacements are substantially the same or better than the original personnel. Contractor shall not substitute, replace or reassign Key Personnel without the prior approval of the State.

E. Approach (Maximum two pages)

Describe your approach to the Scope of Work, with reference to the critical tasks that you will carry out to accomplish the required scope—both those that are specifically called out in this RFP and others that are…