Agenda packet — Ava Community Energy Board of Directors, June 21, 2023

Board of Directors Meeting
Wednesday, June 21, 2023
6:00 pm
In Person
The Lake Merritt Room
Cal State East Bay - the Oakland Center
In the Transpacific Centre
1000 Broadway, Suite 109
Oakland, CA 94607
Or from the following locations:
• Wells Fargo Building - 2140 Shattuck Avenue, Floor 6, Berkeley, CA 94704 • City of Dublin City Hall, 100 Civic Plaza, Dublin, CA 94568 • Sheraton Fairplex Hotel and Conference Center 601 W. McKinley Ave. Pomona, CA 91768
• 1755 Harvest Landing Lane, Tracy, CA 95376
• 33349 9th Street (back office) Union City, CA 94587
• City of Pleasanton, City Council Conference Room, 200 Old Bernal Ave., Pleasanton 94566
Via Zoom:
https://ebce-org.zoom.us/j/87023071843
Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free)
Webinar ID: 870 2307 1843
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906-0491 or [email protected].

If you have anything that you wish to be distributed to the Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting.

1. Welcome & Roll Call

2. Pledge of Allegiance

3. Public Comment
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This item is reserved for persons wishing to address the Board on any EBCE-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Board are customarily limited to two minutes per speaker and must complete an electronic speaker slip. The Board Chair may increase or decrease the time allotted to each speaker.

4. Closed Session
• Conference with Labor Negotiators pursuant to Government Code 54957.6. (Labor negotiators: Elisa Marquez) (Unrepresented employee)
• Conference with Legal Counsel: Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 case)

5. General Report Out of Closed Session

CONSENT AGENDA

6. Approval of Minutes from May 17, 2023 and May 22, 2023

7. Contracts Entered into (Informational Item)

8. Administrative Procurement Policy
Adopt a Resolution adopting an Amended and Restate Administrative Procurement Policy

9. Storage and Renewable Bid Optimization Software
Adopt a Resolution to negotiate and execute a SaaS agreement with Ascend Analytics

10.New CSA with Dakota Press
New CSA for printing and mailing services with Dakota Press Inc

11.Amend CSA with Celery Design
Amend CSA for design services with Celery Design

12.CAC: Stockton Seat and Six-Month Term Extension
Create interim seat for Stockton and extend Regional member terms by six months (i.e., through Dec 2023)

13.Amend CSA with MissionCTRL
Increase NTE effective June 2023

14.Legal Vendor Approval
Allow spend on specific legal vendors up to budgeted amount

REGULAR AGENDA
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15.CEO Report

16. CAC Report

17. EBCE FY 2023-24 Budget (Action Item)
Adopt a resolution approving the FY23-24 budget

18. Energy Prepay Transaction #3 (Action Item)
Adopt a resolution to be enabled with counsel and advisers for prepay transaction

19. New Brand Name Proposal (Action Item)
Present the process and proposed new name for EBCE

20. Emissions Overview (Informational Item)
Informational Overview on Emissions

21. Board Member and Staff Announcements including requests to place items on future Board agendas

22. Adjourn
The next Board of Directors meeting will be held on Wednesday, July 19, 2023 at 6:00 pm.

Draft Minutes
Board of Directors Meeting
Wednesday, May 17, 2023
6:00 pm
In Person
The Lake Merritt Room
Cal State East Bay - the Oakland Center
In the Transpacific Centre
1000 Broadway, Suite 109
Oakland, CA 94607
Or from the following locations:
• Wells Fargo Building - 2140 Shattuck Avenue, Floor 6, Berkeley, CA 94704 • City of Pleasanton, City Council Conference Room, 200 Old Bernal Ave., Pleasanton 94566
• City of Dublin City Hall, 100 Civic Plaza, Dublin, CA 94568 • 33349 9th Street (back office) Union City, CA 94587
• Tracy City Hall, 333 Civic Center Drive, Tracy, CA 95376 • 1651 Venice Circle, Stockton, CA 95206
Via Zoom:
https://ebce-org.zoom.us/j/87023071843
Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free)
Webinar ID: 870 2307 1843
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906-0491 or [email protected].

If you have anything that you wish to be distributed to the Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting.

Vice-Mayor Kimberly Warmsley was sworn in as the new EBCE Director for the City of Stockton.

Councilmember Kashef Qaadri was sworn in as the new EBCE Director for the City of Berkeley.

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Councilmember Tom Ramsey was sworn in as the new EBCE Director for the City of Piedmont.

1. Welcome & Roll Call

Present: Directors: Tiedemann (Albany), Bartlett (Berkeley), Qaadri (Dublin), Bauters (Emeryville), Roche (Hayward), Barrientos (Livermore), Jorgens (Newark), Kalb (Oakland), Ramsey (Piedmont), Gonzalez (San Leandro), Warmsley (Stockton), Bedolla (Tracy), Patino (Union City), Eldred (Community Advisory Committee), Vice-Chair Balch (Pleasanton) and Chair Marquez (Alameda County)
Excused: Directors: Cox
Director Qaadri served as the alternate for Director Hu (Dublin).

Director Ramsey served as the alternate for Director Andersen (Piedmont).

Director Warmsley served as the alternate for Director Wright (Stockton).

Presenter and Staff Attended:

Nick Chaset
Alec Ward
Michael Quiroz
Jessie Denver
Izzy Carson
Marie Fontenot
Helen Mejia
JP Ross
Brett Wiley
Karen Lee
Jason Bartlett
Howard Chang
Raïssa Ngoma
Adrian Bankhead

2. Pledge of Allegiance
Member Jorgens (Newark) led the body in reciting the Pledge of Allegiance.

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(5:02) Jessica Tovar from the East Bay Clean Power Alliance spoke on the Local Development Business Plan (LDBP) and its role as a roadmap for community benefits from East Bay Community Energy (EBCE). She traced the history of the plan, which was backed by the Alameda County Board of Supervisors with a half a million-dollar allocation in 2016, intended to ensure EBCE's revenues were invested in the community's energy needs and resilience. The LDBP addresses energy efficiency, demand and consumption reduction, electrification of transportation and buildings, Community Innovation Grant funds, local solar and wind development, and seed funding for community innovation.

Jessica Tovar highlighted the lack of Community Innovation Grants awarded since 2019 and the importance of replenishing funds for programs that invest in shared public transportation and shared solar. These investments can facilitate the inclusion of community members who have been excluded from the clean energy economy and are crucial for enhancing community energy resilience. Jessica Tovar emphasized that these are not mere one-time investments but continue to provide benefits over time.

The public comment letter summarized below was read into the record by the clerk:

The letter is provided in full as Exhibit A.
(7:49) Chance Cutrano, Chair of the Sierra Club San Francisco Bay Chapter, addressed concerns about East Bay Community Energy's (EBCE) repeated violations of the CPUC's Resource Adequacy procurement requirements, resulting in approximately $6.4 million in fines over the past four years. Given the Sierra Club's commitment to supporting Community Choice Aggregation (CCA) initiatives, including EBCE, Chance Cutrano expressed concern about these substantial fines diverting ratepayer money away from energy procurement and other EBCE programs. He requested EBCE's perspective on these issues and asked for assurance about their plans to avoid such fines in 2023 and beyond.

Mr. Cutrano confirmed the Sierra Club's ongoing support for EBCE and its mission, offering help to ensure the successful implementation of EBCE's Local Development Business Plan. (11:44) The EBCE statement summarized below was read into the record by Chair Marquez: This statement is provided in full as Exhibit B.

The statement outlined two primary factors affecting the emissions of EBCE's portfolio:
unspecified power and PCC2 RECs. The majority of emissions come from unspecified power sources, which is essentially the difference between the amount of carbon-free electricity purchased (including renewable) and total sales. The other factor is the renewable content from PCC2 RECs, which have an emissions factor equivalent to unspecified system power despite being largely generated from renewable resources like solar, wind, and hydro. These factors significantly affect EBCE due to its size, demographic, regulatory changes, declining nuclear power allocation, and low hydroelectric output due to drought. Meeting EBCE's 2030 zero emissions target requires consistent annual reductions in both emissions and unspecified power, achievable through annual increases in California-produced renewable electricity and carbon-free procurement for Bright Choice. Targets are reviewed yearly to assess potential acceleration and propose increases when feasible.
(14:13) Tom Kelly spoke in opposition to CEO Chaset's comments regarding resource adequacy (RA). He noted that CEO Chaset suggested that paying fines, instead of East Bay Community Energy
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purchasing the obligated RA, was a better financial decision for EBCE, potentially saving around $10 million. However, Tom Kelly pointed out that due to these fines, the CPUC has delayed the enrollment of the City of Stockton into EBCE until January 2025 or later.

Tom Kelly expressed dissatisfaction with EBCE's justifications for not complying with its obligations under the CPUC and urged the board to scrutinize CEO Chaset’s management decisions.

4. (18:43) Closed Session
• Conference with Labor Negotiators pursuant to Government Code 54957.6. (Labor negotiators: Elisa Marquez) (Unrepresented employee)

5. (1:29:54) General Report Out of Closed Session
There were no items to report out of closed session.

CONSENT AGENDA

6. Approval of Minutes from April 19, 2023 and April 24, 2023

7. Contracts Entered into (Informational Item)

8. RPS Long-Term Market Offer Contract
Requesting Board approval of contract award for PG&E RPS Long-Term Market Offer

9. Agreement with CLEAResult for E-bike Program
Requesting the Board to delegate authority to EBCE CEO to negotiate and execute Agreement

10.Amcor Storage Contract Approval
Requesting the Board to authorize EBCE CEO to negotiate and execute a Resource Adequacy Agreement with Amcor Storage LLC

11. Second Amendment to the CSA with Maher Accountancy
To increase the NTE to allow budget portal development

12.Third Amendment to CSA between EBCE and Acterra
Requesting the Board to delegate authority to EBCE CEO to negotiate and execute a Third Amendment to the CSA

13.Fifth Amendment to the CSA between EBCE and Stantec
Requesting the Board to delegate authority to EBCE CEO to negotiate and execute a Fifth Amendment to the CSA
The Committee discussed:
• (I:31:06) Per Consent Item 9, Member Gonzalez (San Leandro) asked for the source of the $10 million in grant funding for the E-Bike program. • (1:312:04) Member Gonzalez (San Leandro) asked which agency or board priority Consent Item 9 fulfills.

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• (1:33:35) Per Consent Item 9, Member Bauters (Emeryville) commended the staff for their exceptional work on the four-million-dollar partnership between Alameda County Transportation Commission and EBCE, specifically praising staff’s thoughtful implementation of the program, which prioritizes low-income households and uses a lottery system to equitably distribute funding.
• (1:34:35) Member Roche (Hayward) asked for information about where the e-bikes will be located and tested by members of the public. • (1:35:44) CAC Chair Eldred praised the e-bike program for its innovative and future-oriented design. CAC Chair Eldred also noted her role with the Public Library Council of the Transportation Commission, emphasizing the importance of the e-bike program in their mobility plan and emissions reduction efforts.
• (1:36:27) Member Bedolla (Tracy) requested that a correction be made to the April 24, 2023 Special Board Retreat – Local Programs minutes: The following sentence – “Member Bedolla also acknowledged the Tracy Unified School District’s' work on Resilient Critical Municipal Facilities Phase Two.” should be replaced with the following sentence: “Tracy Unified School District is electrifying their own agency buildings but not through EBCE’s program.” Member Bauters (Emeryville) motioned to approve Consent Agenda, including Member Bedolla’s amendment to the April 24, 2023 minutes. Member Gonzalez (San Leandro) seconded the item which passed 14/0.

Excused: Members Cox (Fremont) and Warmsley (Stockton)

REGULAR AGENDA

14. (1:38:25) CEO Report
CEO Chaset provided an update about several items during his report:
• At the May 3, 2023 Executive Committee Meeting, the 2023/24 Budget and EBCE’s Energy Prepayment Transaction were discussed.
• On April 24, 2023, a Special Board Retreat was held where members were given an update about Local Programs activities.
• Scott Harding has been appointed as the new Director of Origination for the Power Resources team, bringing extensive public sector utility experience. • CEO Chaset discussed brand evolution and name exploration, presenting an adjusted timeline due to the deferred start date for Stockton. The proposed new name will be presented for potential board approval in June or July, with multiple informational presentations given to ensure that all board members are ready to act.

The Board discussed:
• (1:41:52) Member Tiedemann (Albany) asked about the scope of the re-branding effort.

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15. (1:42:52) CAC Report
CAC Chair Eldred reported the following items:
• The CAC submitted a letter of support for EBCE’s Power Up the People initiative to deploy microgrids in its service territory. This letter can be found at https://cdn.sanity.io/files/pc49kbjr/production/47e79637aedcfa00c267329871d d54bcba58c5d3.pdf
• Protect access to benefits of rooftop solar and batteries for California renters sign-on letter /fact sheet and additional letters to the CAC that were not included in the Board agenda packet.
https://cdn.sanity.io/files/pc49kbjr/production/8c315c78a6c843345222c827b96 0ec363f3cf8c8.pdf
• CAC members have asked for resources around what it would take to get to 24- hour renewable power that is matched to the time that it was used. We went and found some of those resources instead of having staff do it.

16. (1:45:41) Draft FY 2023-24 Budget (Informational Item) Review the draft budget for the next fiscal year
The Board discussed:
• (2:20:54) Member Barrientos (Livermore) asked for clarification about where microgrids can be placed.
• (2:25:00) CAC Chair Eldred made several comments in response to the budget presentation:
o The CAC expressed strong interest in seeing a $15 million grant and asked for greater transparency around the process.
o The CAC expressed support for the pre-apprenticeship training programs o The CAC expressed support for the $50 bill credit but also suggested that there might be more tangible and visible benefits if these credits were treated as a lump sum.
o The CAC showed great appreciation for the 3-year Community Grants program and expressed interest in a smaller Community Innovation Grants to help constituent groups develop new ideas and projects. o The CAC requested metrics on the uptake of EV charging stations, particularly when considering equity. This request was rooted in feedback from historically hard-to-reach communities who expressed concerns that the EV charging stations might lead to gentrification. The CAC supports the program but wants to measure the actual uptake of electric vehicles in these communities to inform future funding decisions. o The CAC also expressed their appreciation for the Resilience and Virtual Power Plant (VPP) projects.
• (2:28:40) Member Roche (Hayward) expressed Hayward's interest in eliminating the premium on Renewable 100, aligning it with PG&E's rates. Member Roche also advocated for educating pediatricians about indoor air pollution mitigation.

Member Roche acknowledged potential budget constraints but emphasized that East Bay Community Energy
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preventive education could be more cost-effective than dealing with asthma care post-exposure.
• (2:30:27) Member Bauters (Emeryville) expressed strong support for employing formally incarcerated individuals through the Electrification Workforce Training Program, emphasizing its potential for public safety and socioeconomic development.
• (2:32:29) Member Kalb (Oakland) spoke in approval of the Electrification Workforce Training Program electrification workforce area but stated that $1.5 million may not be enough to have a significant impact. Member Kalb suggested consideration of increasing budget increments in the second or third year. • Member Kalb proposed that the placement of resilience hubs should not be confined solely to government-owned buildings, and that faith-based locations and some NGO buildings should be considered as well.
• Regarding the budget, Member Kalb commented on the proposed increase in the Bright Choice discount from 3% to 5%. He stated that a smaller increase to

3.5% could save almost $10 million, which could be allocated to local development, heavy-duty fleet electrification or workforce training. • (2:37:53) Member Qaadri (Dublin) noted the 60% increase in staffing as compared to an 8% increase in the operating revenue, and asked if a more scaled approach to staff onboarding might be considered. • (2:43:14) Member Bartlett (Berkeley) echoed support for Member Kalb’s comments about workforce training projects.
• (2:44:09) Member Tiedemann (Albany) spoke in favor of seeking out an alternative use of the one-time bill credit, stating that those funds could be used more effectively to support programs.
• (2:45:09) Member Gonzalez (San Leandro) requested that staff provide the assumptions that it is making about PGE’s proposed rates in its models. • (2:49:36) Chair Marquez spoke in approval of budget and requested that staff provide a one- or two-page executive summary of EBCE’s history, total customer count and cities that EBCE provides service. Chair Marquez also spoke in approval of Member Bauters comments with respect to working with trades to partner with the re-entry population, and Member Roche’s comments about preventative work related to the reduction in indoor air pollution. (2:51:54) Jessica Tovar spoke in support of increased funding for community resilience, specifically highlighting the $2 million allocated for the Resilience Hubs microgrids program. Jessica Tovar suggested that such resilience should extend to various community centers, including schools, churches, affordable and senior housing, transitional housing, and shelters. Tovar advocated for the annual replenishment of Community Grants, specifically Community Innovation Grants, and pointed out that there have been no such grants since 2019. Jessica Tovar urged for increased investment in equity and for inclusion of individuals who have historically been left out of the clean energy economy and encouraged the Board to utilize its power to serve its communities better.

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17. (2:54:35) Legislative Update (Action Item)
Update on recommended bill positions and EBCE’s bill tracker The Board discussed:
• (2:56:53) Member Kalb (Oakland) requested that staff return to the practice of providing the full list of bills that the policy team is tracking in the legislative update.
• (2:59:00) CAC Chair Eldred stated that over 177 organizations oppose AB 538, and that some of those letters are included in the CAC Chair Report in the 5/17/23 agenda packet. Chair Eldred noted that AB 538 has been moved to a two-year bill today, but that means that it can come back as early as January.

Member Bauters (Emeryville) motioned to approve staff recommendations with the understanding that AB 538 will be reviewed by the CAC before it comes back to the Board. Member Gonzalez (San Leandro) seconded the item which passed 15/0.

Excused: Member Cox (Fremont)

18. (3:03:41) Load Management Standards Interim Compliance Plan (Action Item) Requesting Board approval of an interim compliance plan for the California Energy Commission’s Load Management Standards
The Board discussed:
• (3:06:05) Member Gonzalez (San Leandro) asked if there is a way to make sure that load management standards are revisited at the appropriate time.

Member Tiedemann (Albany) motioned to approve the staff recommendation, stipulating that load management standards are reviewed on an annual basis.

Member Bauters (Emeryville) seconded the item which passed 15/0.

Excused: Member Cox (Fremont)

19. Emissions Overview (Informational Item)
Informational Overview on Emissions
(3:07:59) Chair Marquez tabled the Emissions Overview item to the June 21, 2023 Board of Directors meetings.

20. Board Member and Staff Announcements including requests to place items on future Board agendas
• (3:08:56) Assistant Board Clerk Raïssa Ngoma requested that Board members complete polls to facilitate scheduling for Financial, Administrative and Procurement (FAP) and Marketing, Regulatory and Legislative subcommittee meetings.

21. Adjournment to Wednesday, June 21, 2023 at 6:00 pm.

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___________________________________
Elisa Marquez, Chair
Attest:
___________________________________
Adrian Bankhead, Clerk of the Board
1999 Harrison Street, Suite 800 Oakland, CA 94612 | 1-833-699-EBCE (3223) | ebce.org Supervisor Elisa Márquez
Alameda County
Mayor Aaron Tiedemann
Albany
Vice Mayor Ben Bartlett
Berkeley
Councilmember Sherry Hu
Dublin
Mayor John Bauters
Emeryville
Councilmember Teresa Cox
Fremont
Councilmember Julie Roche
Hayward
Councilmember Ben
Barrientos
Livermore
Councilmember Matthew
Jorgens
Newark
Councilmember Dan Kalb
Oakland
Vice Mayor Betsy Andersen
Piedmont
Vice Mayor Jack Balch
Pleasanton
Mayor Juan Gonzalez
San Leandro
Councilmember Dan Wright
Stockton
Councilmember Matt
Bedolla
Tracy
Councilmember Jaime
Patino
Union City
Anne Oliva Eldred
Community Advisory
Committee (non-voting)
May 16, 2023
Mr. Chance Cutrano
Sierra Club of San Francisco Bay
2530 San Pablo Ave, Suite 1
Berkeley, CA 94702
Dear Mr. Cutrano,
Thank you for Sierra Club of San Francisco Bay’s inquiry dated May 10, 2023. In your letter, you asked about CPUC Resolution E-5258 and the penalties EBCE incurred for under-procurement in the California Public Utilities Commission (CPUC) Resource Adequacy (RA) program.

Before turning to the penalties described in Resolution E-5258, some background on the RA program may be helpful. RA is a form of capacity, as opposed to energy. Paying for RA means, in essence, paying for a generator to be available to generate rather than to actually generate. The RA program requires jurisdictional load serving entities like EBCE (LSEs) to procure CPUC-determined amounts of RA-qualified generation capacity. The CPUC determines these amounts annually. The CPUC will assess penalties to LSEs unable to procure their requirement of RA (whether due to market scarcity, illiquidity, or resources being economically withheld).

There are “backstop” RA procurement mechanisms that kick in when an LSE is “short” on RA, thereby ensuring a reliable grid. The grid operator can obtain additional capacity via its FERC-approved authority to obtain resources for reliability purposes. The availability of resources for CPM designation serves to demonstrate that resources had been withheld from the bilateral RA market for artificial purposes. The “CPM” price is set by regulation rather than the market.

It can be well below the market price.
2021 and 2022 saw significant tightening in the RA market. Consequently, there were times when EBCE could not buy all the RA it needed. Counter-intuitive as it may seem, though incurring these penalties actually saved EBCE customers money. The cost of penalties plus backup through the CAISO were less expensive than the alternative of buying RA at prevailing market prices.

EBCE wishes to clarify for Sierra Club of San Francisco Bay that RA penalties were in lieu of procurement of RA and therefore the costs of the penalties were equal to or less than the price EBCE would have paid for RA, and as a result the payment of penalties did not have the effect of raising EBCE’s procurement costs, nor did they have a negative impact on customer rates and funding for EBCE’s customer programs.

EBCE appreciates Sierra Club of San Francisco Bay’s continued support as we DocuSign Envelope ID: FC16D182-681B-4D13-9AC4-8F1969AE8C3F Exhibit A
1999 Harrison Street, Suite 800 Oakland, CA 94612 | 1-833-699-EBCE (3223) | ebce.org accelerate the transition to clean and renewable energy in a manner that is sustainable for our diverse customers.

Sincerely,
Marie Fontenot
Vice President, Power Resources
DocuSign Envelope ID: FC16D182-681B-4D13-9AC4-8F1969AE8C3F Exhibit A
EBCE Power Content and Forward-Looking Trajectory
 There are two primary factors influencing the plan wide emissions for EBCE:
o The largest source of emissions in EBCE’s porƞolio is power content from emiƫng generaƟon sources, and for Bright Choice this is unspecified power. Unspecified electricity is not purchased for Bright Choice for content purposes but is reflecƟve of the balance of carbon free electricity purchases (which includes renewable) and total sales. o The second factor influencing the plan wide emissions is renewable content from PCC2 RECs. This is due to a change in the CA power content reporƟng and emissions counƟng methodology that adds an emissions factor equivalent to unspecified system power, despite these resources being by and large solar, wind, and hydro.  These two factors (unspecified power and PCC2 RECs) have a pronounced impact on EBCE relaƟve to our unique size and demographic and largely due to:
o EBCE’s decision to decline the nuclear porƟon of the carbon free allocaƟon resulƟng in a greater porƟon of annual procurement coming from unspecified power and PCC2 RECs than would be necessary had the nuclear allocaƟon been accepted o Regulatory changes to power content reporƟng methodology, specifically AB 1110 making imported renewables from outside of California no-longer emissions free; and o historically low hydroelectric output due to drought
MeeƟng EBCE’s approved 2030 zero emissions electricity target translates to necessary annual reducƟons in both plan wide emissions and unspecified power. This is accomplished through year over year increases in California generated renewable electricity and carbon free procurement for Bright Choice. EBCE’s targets are then further reviewed on an annual basis to evaluate the potenƟal to accelerate exisƟng targets and will propose increases to approved targets whenever possible.

Exhibit B
Draft Minutes
Board of Directors Special Board Retreat –
Marketing and Account Services
Monday, May 22, 2023
12:00 pm
In person:

The Montclair Room
Cal State East Bay - the Oakland Center
In the Transpacific Centre
1000 Broadway, Suite 109
Oakland, CA 94607
Or from the following locations:
• Wells Fargo Building - 2140 Shattuck Avenue, Floor 6, Berkeley, CA 94704 • 100 Civic Plaza, Dublin, CA 94568
• San Leandro City Hall 2nd floor (835 E 14th St, San Leandro, CA 94577) • Tracy City Hall, 333 Civic Center Drive, Tracy, CA 95376 • 33349 9th Street (back office) Union City, CA 94587
• 450 Hay St, Fayetteville, NC 28301
• Balch Enterprises, Inc. 30960 Huntwood Avenue Hayward, CA 94544 Via Zoom:
https://us02web.zoom.us/j/87023071843
Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free)
Webinar ID: 870 2307 1843
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906-0491 or [email protected].

If you have anything that you wish to be distributed to the Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting.

1. Welcome & Roll Call

Present: Members: Qaadri (Dublin), Kaur (Emeryville), Cox (Fremont), Roche (Hayward), Barrientos (Livermore), Gonzalez (San Leandro), Wright (Stockton), Bedolla East Bay Community Energy
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(Tracy), Patino (Union City), Eldred (Community Advisory Committee) and Vice-Chair Balch
Excused: Members: Bartlett (Berkeley), Jorgens (Newark), Kalb (Oakland), Anderson (Piedmont), Chair Marquez (Alameda County)
Member Qaadri served as the alternate for Member Hu (Dublin).

Member Kaur served as the alternate for Member Bauters (Emeryville).

2. Pledge of Allegiance

3. Public Comment
This item is reserved for persons wishing to address the Board on any EBCE-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Board are customarily limited to two minutes per speaker and must complete an electronic speaker slip. The Board Chair may increase or decrease the time allotted to each speaker. (2:25) Claire Schoen expressed appreciation for EBCE and its Renewable100 plan, but voiced concern about EBCE’s lack of visibility in her community in Berkeley. Despite her friends and neighbors being progressive and climate-conscious, she pointed out that many are unaware of EBCE and mistakenly believe they are still receiving electricity from PG&E. This, she attributed to factors like PG&E's handling of billing, the tendency for many to pay their bills electronically without scrutinizing details, and EBCE's infrequent flyer communication, which often gets dismissed as junk mail. Consequently, few in her community have opted for the Renewable100 plan. Clair Schoen suggested that improved marketing, such as a direct mailer with a clear message about EBCE being their electricity provider, could raise awareness and stimulate interest in the program.

4. (7:07) Marketing and Account Services Update (Informational Item) Receive update on Marketing and Account Services activities.

The Board Discussed:
• (25:30) Member Qaadri (Dublin) asked how public engagement performance metrics are tracked.
• (38:21) CAC Chair Eldred asked for information about which customers have access to EBCE’s Real Time Pricing (RTP) pilot program. • (40:21 Member Qaadri (Dublin) asked about the structure of EBCE’s Arrearage Management Plan.
• (43:18) Member Gonzalez (San Leandro) asked about the dynamics of market demand that would cause a large industrial customer to leave, or return to, EBCE. • (46:03) Member Gonzalez (San Leandro) asked about the challenge of lowering rates given the Power Charge Indifference Adjustment (PCIA). • (47:15) Member Roche (Hayward) asked how individual residential customers can receive help to understand their EBCE bills.

East Bay Community Energy
Board of Directors Page | 3
• (57:54) Member Roche (Hayward) asked for further information about the public’s aversion to acronyms as brand names, and for guidance around how staff plans to provide Board members with options for potential brand names. • (1:00:40) Member Gonzalez (San Leandro) stated that with advertising and drive, brands take on a life of their own, so the board should move forward with a name. Member Gonzalez also stated that he approves of a name that can invoke positive feelings rather than an acronym.

5. Board Member and Staff Announcements including requests to place items on future Board agendas
There were no Board member or Staff Announcements.

6. Adjourn
Consent Item 7

Consent Item 7

TO: East Bay Community Energy Board of Directors

FROM: Nick Chaset, Chief Executive Officer

SUBJECT: Contracts Entered Into

DATE: June 21, 2023
________________________________________________________________________

RECOMMENDATION
Accept the CEO’s report on contracts that EBCE has entered, as required by the Administrative Procurement Policy from May 10, 2023 to June 14, 2023 C-2023-040 San Jose Clean Energy, Addendum #2 to the Cost Sharing and Reimbursement Agreement for 2023 RFO - EBCE will incur costs and San Jose will reimburse 50% of the cost of 3 vendors.

C-2023-041 City of Oakland, 1st Amendment to Charging Station License Agreement makes slight amendments to agreement include changes to "Termination", "Ratification", "Counterparts", and "Authority" sections.

C-2023-042 Cascade Energy Services, (Portland, OR) Consulting Services Agreement for energy efficiency program implementation through June 22, 2027, with compensation not to exceed $11,569,528.00.

C-2023-043 Alameda County Agricultural Fair Association, Sponsorship Agreement, $8,000 Fair Sponsorship in return for designation as Official Fair Sponsor, logo inclusion on banners and signs, print ads, internet ads, jumbotron and other electronic displays onsite, and inclusion in email, social media and radio advertising.

C-2023-044 The Energy Council/ StopWaste, Letter, adds $300,000 to existing Cooperative Agreement, EBCE will add these additional funds for incentives for adopting heat pump water heaters.

C-2023-045 Pleasanton Girls Soccer Association, Sponsorship Agreement, $13,000 sponsorship over 3 years for local soccer team, EBCE will receive signage displayed at games, social media ads, and logo placement on jerseys for 2024 and 2025 seasons.

Consent Item 7
C-2023-046 Davis Wright Tremaine, (San Francisco) Joint Representation Agreement among EBCE, Clean Power Alliance and Central Coast Community Energy, costs not to exceed $150,000 and will be shared equally for services related to CPUC.

C-2023-047 Aurora Energy Research (Oxford, UK) Services Contract for subscription services for CAISO Power & Renewables Market Service and a CAISO Flexible Energy Add-On at a cost of $40,000 per year.

C-2023-048 Keyes and Fox (San Francisco) Joint Representation Agreement provides for joint legal representation for EBCE, MCE, PCE, & SCP, before the CPUC in PG&E 2023-2027 Demand Response Program Application 22-05-002, all costs will be billed directly to each client on a pro rata basis.

C-2023-049 Bill Pickett Invitational Rodeo, Sponsorship Contract, Sponsorship Contract $3,500 Sponsorship to the rodeo event in Castro Valley July 2023.

C-2023-050 City of San Leandro, Charging Station Master Site License Agreement, for installation and use of EV Charing Stations in parking spots located at City Hall (835) E 14th Street) and the Senior Community Center (13909 E 14th Street) in San Leandro.

C-2023-051 Landscape, Addendum to CSA. authorizes a native speaker check for potential brand names at a cost of $9,000.

Consent Item 7
Consent Item 8
Consent Item 8
TO: East Bay Community Energy Board of Directors
FROM: Howard Chang, Chief Operating Officer
SUBJECT: Amend Administrative Procurement Policy
DATE: June 21, 2023
________________________________________________________________________ Recommendation
Adopt a Resolution to amend the Administrative Procurement Policy.

Background and Discussion
On February 7, 2018, the Board of Directors approved a Resolution adopting an Administrative Procurement Policy. The policy was most recently amended and restated on May 18, 2022.

Staff worked with General Counsel to make necessary and appropriate changes to the policy.

This Amendment clarifies and grants the following:

1. That the CEO or COO may authorize a contract be executed without General Counsel approval as to form, when there is no opportunity for negotiation and limited or acceptable risk.

2. Exactly what items should be considered “Office supplies”.

3. Authorizes signing authority for the Chief Information Officer (CIO) to execute contracts up to an amount of $15,000 per fiscal year when related to the activities or functions of the office of the CIO

4. Clarification in the RFP/RFO Procedures

5. UPCCAA Section – clarifies threshold amounts for Public Works Projects may change The Amendment also includes formatting changes that allow for better comprehension.

Fiscal Impact
There is no anticipated fiscal impact associated with these amendments.

Attachments
A. Resolution to Amend the Administrative Procurement Policy Consent Item 8
B. Amended and Restated Procurement Policy (with redline changes from previous version)
C. Amended and Restated Procurement Policy (Clean)
Attachment Consent Item 8A
RESOLUTION NO. R-2023-

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY TO ADOPT AN AMENDED AND RESTATED ADMINISTRATIVE PROCUREMENT POLICY 1.9
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton located in San Joaquin County, was added as a member of EBCE in December of 2022.

WHEREAS It is in the interest of EBCE to establish administrative procurement practices that facilitate efficient business operations and provide fair compensation and local workforce opportunities whenever possible within a framework of high quality, competitive service offerings;
WHEREAS On February 7, 2018, the Board approved an Administrative Procurement Policy. Recently, on March 18, 2022, the Board approved an Amended and Restated Administrative Procurement Policy 1.8; and WHEREAS it would be useful to make certain clarifications and adjustments in order to continue to facilitate efficient business operations.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board hereby adopts the Seventh Amended and Restated Administrative Procurement Policy, attached as Exhibit A and listed as Policy # 1.9, which makes clarifications regarding: when a contract can be executed without General Counsel approval as to form, definition of “office supplies”, signing authority for Chief Information Officer, RFP/RFO procedures, notes that the threshold amounts for Public Works Projects may change , as well as adjustments to formatting.

ADOPTED AND APPROVED this 21th day of June, 2023.

Attachment Consent Item 8A

Elisa Márquez , Chair
ATTEST:

Adrian Bankhead, Clerk of the Board

SEVENTH AMENDED AND RESTATED ADMINISTRATIVE PROCUREMENT POLICY Policy Number 1.98
June 21, 2023May 18, 2022
Agenda Item # 10
Resolution Number R-2023-2-14
I. PURPOSE
It is in the interest of East Bay Community Energy (“EBCE”) to establish administrative procurement practices that facilitate efficient business operations and provide fair compensation and local workforce opportunities whenever possible within a framework of high quality, competitive service offerings.

II. TYPES OF CONTRACTS

1. Contracts for Goods and Non-Professional Services. As used in this policy, “General Contractual Services” means:

1.1. Any and all supplies, articles, equipment, or personal property furnished to or used by an organizational unit of EBCE; and

1.2. Most types of services, excluding professional services as defined below, under which the contractor provides services which are required by EBCE, but not furnished by the EBCE’s own employees.

2. Contracts for Professional Services. As used in this policy, “Professional Services” means:

2.1. The services of attorneys, physicians, architects, engineers, consultants, auditors, or other individuals or organizations possessing a high degree of professional, unique specialized technical skill or expertise, not always adaptable to competitive bidding. Professional Services are not considered General Contractual Services for the purpose of these procurement procedures.

3. Power Procurement Contracts

3.1. Contracts for energy (also known as Power Purchase Agreements or PPAs) or energy related products shall be subject to the requirements and signing authorities set out in Section IX of this Policy.

4. All Contracts

4.1. When procuring goods and services utilizing federal funds (e.g. grant funds), EBCE shall comply with all federal project requirements and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. (See 2 CFR § 200) Attachment Consent Item 8B

4.2. No EBCE employee, official, or director shall split purchases into more than one purchase in order to avoid the procurement requirements in this policy. Splitting purchases does not allow for a competitive marketplace, increases administrative workflow, and may create ethical issues.

4.3. No EBCE employee, officer, or Director shall accept, directly or indirectly, any gift, rebate, money or anything else of value from any person or entity if such gift, rebate, money or anything of value is intended, or appears, to reward or be an inducement for conducting business, placing orders with, or otherwise using the employee’s position to secure an agreement with EBCE.

4.4. Prior to signing any agreement for General Contractual Services or Professional Services, the individual signing shall ensure all of the following:

4.4.1. The contract compensation has been budgeted for in the current EBCE budget;

4.4.2. That adequate funds have been appropriated by the Board;

4.4.3. That such funds are unexpended and unencumbered sufficient to pay the expense of the contract; and

4.4.4. That any agreement for General Contractual Services or Professional Services for an amount of $5,000 or more in one calendar year has been approved as to form and content by the General Counsel or his/her designee, except when the CEO, or COO, CIO, or designee. may, in his or her discretion, authorize the execution of standard form consumer agreements, where EBCE is in a similar position as other consumers in the market, related to widely marketed products and where the vendor has stated they are not open to negotiation, including, but not limited to, credit card agreements, and standard consumer license agreements for widely marketed software such as Microsoft Office or Salesforce, or other similar agreements in which EBCE is in a similar position as other consumers in the market.

4.5. EBCE shall report on all new contracts, regardless of scope or contract value, at each Board meeting, except non-disclosure agreements, personnel contracts, and Power Purchase Agreements. Unless subject to the attorney client privilege or some other legal protection, as a public agency, EBCE shall release all public records, including contracts, as required by the Public Records Act.

4.6. Agreements with existing vendors may be amended and/or extended to allow for the continuation of services for no more than a total term of five (5) years. Such amendments/extensions are subject to the applicable signing authority identified in Tables 1-4 based on the total dollar amount of the agreement.

4.7. The CEO may suspend the requirements of Section III (General Contractual Services Procurement) or Section V (Professional Services Procurement) for any agreement.

Furthermore, the COO may suspend the requirements of Section III or Section V for any agreement they would otherwise have the authority to sign. However, all agreements for which the required procurement procedures have been suspended pursuant to this Section II. 4.7 must be approved by the Chair and Vice Chair of the Board of Directors and must comply with signing authority restrictions identified in Section III, Table 2, and Section V, Table 4.

5. Promotional Items and Bulk Purchases

5.1. The purchase of office supplies, promotional items, and similarly low risk goods bought in bulk online or otherwise are subject to the relevant procurement methods identified in Section III, but Attachment Consent Item 8B
do not require a Consulting Services Agreement or other agreement.

5.1.1 For the purpose of defining “office supplies” as it relates to procurement, the meaning is understood to be “a consumable item/product used regularly in an office environment to perform departmental personnel’s daily work assignments.” Office Supplies to include but are not limited to: Pens, Pencils, Markers, Note Pads, Composition/Theme Books, Post-It-Notes, Paper (other than for copier,), Index Cards, Labels, File Folders, File Organizers, Envelopes, Staplers, Scissors, Tape, Pushpins, Binders, Binder Index Systems, Paper Clips, Rubber bands, and Desktop Toner CartridgesComputer Hardware (excluding any software or subscription services)..

6. Combined Services and Purchases.

6.1. Where an agreement combines services with the purchase of supplies as defined in Section 5 above, the expenditure related to purchase of supplies shall be calculated separately from the expenditure related to the services provided for the purpose of determining approval authority under this Policy.

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Attachment Consent Item 8B
III. GENERAL CONTRACTUAL SERVICES PROCUREMENT

1. Procurement Method

1.1. Table 1 indicates the appropriate procurement method for the purchase of General Contractual Services of certain dollar amounts.

1.2. Nothing in this section prohibits the use of a more stringent procurement method than the one indicated by Table 1. At his or her discretion, the CEO may direct that an agreement for General Contractual Services is awarded through the Formal Bidding Procedures described herein.

Table 1
PROCUREMENT METHOD DOLLAR AMOUNT per

FISCAL YEAR ADDITIONAL REQUIREMENTS
Formal Bidding Procedure > $100,000 RFP/RFQ
Solicit 3 written quotes; may be
in electronic format $50,000 - $100,000
Quotes must include provider’s name,
address, phone number, professional
license number, if applicable
Solicit 3 verbal quotes $10,000 - $49,999.99
Staff shall note quotes by including
the providers’ name, address, phone
number and amount of the verbal
proposal in EBCE’s records
No solicitation necessary < $10,000 Seek the lowest price for the highest quality
Purchase Order Can Be Used <$5,000 * A contract is not required for the purchase of goods or low-risk off-site services under $5,000

2. Signing Authority

2.1. Table 2 indicates the appropriate signing authority for the purchase of General Contractual Services of certain dollar amounts.

2.2. Nothing in this section prohibits EBCE staff from seeking approval of a more senior signing authority than is permitted by this policy.

Table 2

SIGNING AUTHORITY DOLLAR AMOUNT
per FISCAL YEAR

CONTRACT TYPE
Board Approval > $100,000 All contracts
Chief Executive Officer, or
his/her designee $0 - $100,000 All contracts
General Counsel $0-$50,000
All contracts related to the activities or
functions of the Office of the General
Counsel
Chief Operating Officer $0-$25,000 All contracts related to the activities or functions of the Office of the COO
Formatted: Font: (Default) Times New Roman,
Underline
Formatted: Normal, No bullets or numbering
Formatted: Font: (Default) Times New Roman
Attachment Consent Item 8B
Chief Information
Officer $0-$15,000
All contracts related to the activities or
functions of the Office of the Chief
Information Officer
Senior Director or Vice
President $0-$10,000
All contracts whose object or purpose is
related to the activities or functions of that
Senior Director or Vice President
Director $0-$5,000
All contracts whose object or purpose is
related to the activities or functions of that
Director
IV.III. FORMAL BIDDING RFP/RFQ PROCEDURES
Except as otherwise specifically directed in writing by the CEO, agreements for the purchase of General Contractual Services for a total amount that exceeds $100,000 per fiscal year shall be procured as follows:

1. Formal Bid RFP/RFQ Invitations. Invitations to participate in the Request for Proposal/Request for Qualifications (RFP/RFQ) process shall include a general description of the supplies or services sought by EBCE, and shall specify the time, place and date for opening bidsresponses.

2. Evaluation. Bids and pProposals received through a competitive solicitation shall be subject to a set of criteria and a scoring system, reviewed and evaluated by relevant EBCE staff and an evaluation committee selected by the relevant staff, CEO, COO or General Counsel, or at the discretion of the Board, members of a designated Board subcommittee.

3. Lowest Responsible BidderSelected Respondent. “Lowest responsible bidderSelected Respondent” as used in this policy shall mean that bidder respondent who best responds in price, quality, service, fitness, or capacity to the particular requirements of EBCE. Price alone shall not be the determining factor but shall be considered along with other factors, including but not limited to the following:

3.1. EBCE seeks to support companies and contractors that reflect its values and has identified four vendor/contractor categories that shall be given special consideration during bid evaluation and selection. In competitive solicitations, these categories shall receive bonus percentages/points ranging from 2.5% - 5% for a maximum bonus total of 12.5% in a bid scoring process:

3.1.1 Businesses within Service Territory: EBCE desires to support business within its service territory. Businesses with office(s) located in EBCE’s service territory and businesses that have at least 25% of their workforce who reside in EBCE’s service territory shall receive a bonus equal to 5% or 5 points out of a 100-point scoring system in competitive solicitations.

3.1.2 Union Labor: EBCE desires to support the use of union labor where possible. EBCE shall make its best effort to work with unionized contractors and subcontractors in the provision of goods and services to EBCE. Businesses who use union labor and/or unionized contractors shall receive a bonus equal to 2.5% or 2.5 points out of a 100-point scoring system in competitive solicitations.

3.1.3 Disabled Veteran Business Enterprises: EBCE desires to support Disabled Veteran Business Enterprises (DVBEs). Businesses that are registered with the California Department of General Services as a DVBE shall receive a bonus equal to 2.5% or 2.5 points out of a 100-point scoring system in competitive solicitations.

Attachment Consent Item 8B

3.1.4 Disadvantaged Communities: EBCE desires to support businesses located in a Disadvantaged Community (DAC) as identified by the California Environmental Protection Agency’s (CalEPA) CalEnviroScreen Tool. Businesses with a primary office (i.e. where work is primarily conducted for EBCE) located in a DAC, as determined by the latest version of the Tool at the time, shall receive a bonus equal to 2.5% or 2.5 points out of a 100-point scoring system in competitive solicitations.

3.2. EBCE is committed to the highest standards of responsible behavior and integrity in all of its business relationships. EBCE will consider a company’s business practices, environmental track record, and commitment to fair employment practices and compensation in its procurement decisions.

3.3. Award of Contract. EBCE shall award the contract to purchase goods or services to the Selected Respondentlowest responsible bidder, unless such an award would be prohibited by California law.

V.IV. PROFESSIONAL SERVICES PROCUREMENT

1. Procurement Method

1.1. Table 3 indicates the appropriate procurement method for the purchase of Professional Services of certain dollar amounts.

1.2. Nothing in this section prohibits the use of a more stringent procurement method than the one indicated by Table 3. At his or her discretion, the CEO may direct that an agreement for Professional Services is awarded through the Formal Bidding Procedures described herein.

Table 3
PROCUREMENT METHOD DOLLAR AMOUNT per

FISCAL YEAR

ADDITIONAL REQUIREMENTS
Solicit 3 written quotes; may be
in electronic format $50,000 and above
Proposal must include provider’s name,
address, phone number,
professional license number, if
applicable
Solicit 3 verbal quotes $10,000 - $49,999.99
Staff shall note quotes by including the
providers’ name, address, phone
number and amount of the verbal
proposal in EBCE’s records
No solicitation is necessary $0 - $10,000 Seek the lowest price for the highest quality

2. Signing Authority

2.1. Table 4 indicates the appropriate signing authority for an agreement for Professional Services of certain dollar amounts.

2.2. Nothing in this section prohibits EBCE staff from seeking approval of a more senior signing authority than is permitted by this policy.

Attachment Consent Item 8B
Table 4

SIGNING AUTHORITY DOLLAR AMOUNT
per Fiscal Year

1. Under some circumstances, EBCE competitive solicitation requirements may be dispensed with when the goods or services are only available from one source either because the brand or trade name article, goods, or product or proprietary service is the only one which will properly meet the needs of the EBCE or the item or service is unique and available only from a sole source.

2. Sole source purchasing, whereby the procurement methods identified in Tables 1-4 are not required, is authorized when the goods or services contemplated are only able to be performed by a sole provider, such as the holder of an exclusive patent or franchise, for the purchase of unique or innovative goods or services including but not limited to computer software and technology, or for purchases of goods or services when there is a demonstrated need for compatibility with an existing item or service used by EBCE.

3. A sole source may be designated when it is apparent that a needed product or service is uniquely available from the source, or for all practical purposes, it is justifiably in the best interest of EBCE.

4. The following factors are not sufficient to justify a sole source procurement:

4.1. Personal preference for product or vendor

4.2. Cost

4.3. Vendor performance

4.4. Local service (this may be considered an award factor in competitive bidding)

4.5. Features that exceed the minimum requirements for the goods or services Formatted: Indent: Left: 0", First line: 0"
Attachment Consent Item 8B
VI. EMERGENCY PROCUREMENT

1. In the event of an emergency, the CEO may suspend the normal purchasing and procurement requirements for goods and services related to abatement of the impacts or effects of the emergency.

2. An emergency is deemed to exist in the following circumstances:

2.1. There is an unexpected occurrence requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services, including the provision of energy or power to EBCE customers; or

2.2. There is immediate need to prepare for national or local defense; or

2.3. There is a breakdown in infrastructure or an essential service which requires the immediate purchase of supplies or contractual services to protect the public heath, or safety or property; or

2.4. A local emergency or disaster has been declared.

VII. COOPERATIVE PURCHASING

1. The procurement methods identified in Table 1 -4 shall not be required when the contract for goods or services will be provided by another governmental agency.

2. EBCE may adopt another governmental agency’s agreement with a contractor (“Piggyback Agreement”) as its own without adhering to the procurement methods identified in Table 1-4 if that Piggyback Agreement is the product of the respective governmental agency’s formal competitive solicitation process, provided that that agency’s procurement is not in conflict with California law.

VIII. PUBLIC PROJECTS

1. Uniform Public Construction Cost Accounting Act. EBCE adheres to the alternative bidding procedures provided by the Uniform Public Construction Cost Accounting Act, California Public Contract Code section 22000 et seq. (UPCCAA) Public projects (as defined in Section 22002 of the California Public Contract Code) that do not exceed the dollar limits in Section 22032(b) of the Public Contract Code (as such limits currently exist or may subsequently be amended), may be let to contract by informal procedures as set forth in the UPCCAA.

2. At the time of the adoption of this Policy, the UPCCAA applied to the following types of projects:

2.1. Public projects include construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. This includes painting or repainting of any publicly owned, leased, or operated facility.

Attachment Consent Item 8B

2.2. Public projects up to $60,0001 may be performed by EBCE employees, by negotiated contract, or by purchase order pursuant to the UPCCAA.

2.3. Public projects up to $200,0002 may be contracted using informal procedures as set forth in the UPCCAA.

3. Pre-Qualified List. A list of contractors may be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission (CUCCAC).

4. Notice.

4.1. Where a public project is to be performed, a notice inviting informal bids shall be mailed, faxed, or emailed not less than ten (10) days before bids are due to all contractors for the category of work to be bid as shown on the Pre-Qualified list developed in accordance with this Section IV, and to all construction trade journals as specified by the CUCCAC in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids, provided, however; if there is no list of qualified contractors maintained by EBCE for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the CUCCAC.

4.2. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids.

5. Award of Contract. The CEO and his or her designee is authorized to award public project contracts, subject to the signing authority permitted by Table 5. Nothing in this section prohibits EBCE staff from seeking approval of a more senior signing authority than is permitted by this policy.

Table 5

SIGNING AUTHORITY DOLLAR AMOUNT
per fiscal year
Executive Committee of the Board of
Directors or Board of Directors Approval > $100,000
Chief Executive Officer, or his/her
designee
$0 - $100,000
General Counsel $0-$50,000
Chief Operating Officer $0-$25,000
Senior Director or Vice President $0-$10,000
1 Note this amount may be As may be amended revised by law from time to time. and Current dollar amount should be confirmed. See https://www.sco.ca.gov/ard_cuccac.html. 2 Note this amount may be revised by lawAs may be amended from time to time. Current dollar amount and should be confirmed. See https://www.sco.ca.gov/ard_cuccac.html
Commented [MG1]: These figures are current as of
June 2023
Attachment Consent Item 8B
Director $0-$5,000
Attachment Consent Item 8B
IX. PROCUREMENT OF POWER

1. EBCE must secure sufficient power resources and energy attributes to serve its customers, comply with State law and meet EBCE’s and its member agencies’ goals. The Board shall approve the form of all master power purchase agreements. The signing authority in Section 4 shall not apply to power and energy attribute procurement. The following EBCE staff shall be authorized to enter into power purchase agreements and other agreements to secure power and energy attributes providing such agreements are in substantially the same form as the Board-approved master power purchase agreements, and that all transactions and agreements are in strict compliance with EBCE’s Risk Management Policy:

1.1. The CEO is authorized to enter into agreements in accordance to the approved Risk Management Policy.

1.2. The COO is authorized to enter into agreements in accordance to the approved Risk Management Policy, provided that transactions shall not be over two years in duration and $10,000,000 in total compensation.

1.3. The Director of Power Resources is authorized to enter into agreements in accordance to the approved Risk Management Policy, provided that transactions shall not be over one year in duration and not be over $2,000,000 in compensation.

1.4. With dual signatures, the COO and Director of Power Resources are authorized to enter into agreements with equivalent authority as the CEO in accordance with the approved Risk Management Policy.

X. MISCELLANEOUS

1. The following signing authorities shall apply, after review and approval of the named agreements by the General Counsel, or his/her designee, except where in conflict with the Joint Powers Agreement, state, or federal law:

1.1. Non-Disclosure Agreements – Director level and above,

1.2. Banking and Treasury Administration – COO level and above, and

1.3. Release of Liability and Indemnification – Director level and above.

1.3. Formatted: Font: (Default) Times New Roman
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Attachment Consent Item 8B

SEVENTH AMENDED AND RESTATED ADMINISTRATIVE PROCUREMENT POLICY Policy Number 1.9
June 21, 2023
Agenda Item #
Resolution Number R-2023-
I. PURPOSE
It is in the interest of East Bay Community Energy (“EBCE”) to establish administrative procurement practices that facilitate efficient business operations and provide fair compensation and local workforce opportunities whenever possible within a framework of high quality, competitive service offerings.

II. TYPES OF CONTRACTS

1. Contracts for Goods and Non-Professional Services. As used in this policy, “General Contractual Services” means:

1.1. Any and all supplies, articles, equipment, or personal property furnished to or used by an organizational unit of EBCE; and

2. Contracts for Professional Services. As used in this policy, “Professional Services” means:

3. Power Procurement Contracts

4. All Contracts

4.4. Prior to signing any agreement for General Contractual Services or Professional Services, the individual signing shall ensure all of the following:

4.4.1. The contract compensation has been budgeted for in the current EBCE budget;

4.4.2. That adequate funds have been appropriated by the Board;

4.4.3. That such funds are unexpended and unencumbered sufficient to pay the expense of the contract; and

4.4.4. That any agreement for General Contractual Services or Professional Services for an amount of $5,000 or more in one calendar year has been approved as to form and content by the General Counsel or his/her designee, except when the CEO, COO, CIO,or designee may, in his or her discretion, authorize the execution of standard form consumer agreements, where EBCE is in a similar position as other consumers in the market, related to widely marketed products and where the vendor has stated they are not open to negotiation, including, but not limited to, credit card agreements, and standard consumer license agreements for widely marketed software such as Microsoft Office, or other similar agreements.

4.7. The CEO may suspend the requirements of Section III (General Contractual Services Procurement) or Section V (Professional Services Procurement) for any agreement.

5. Promotional Items and Bulk Purchases

5.1. The purchase of office supplies, promotional items, and similarly low risk goods bought in bulk online or otherwise are subject to the relevant procurement methods identified in Section III, but do not require a Consulting Services Agreement or other agreement.

Attachment Consent Item 8C

5.1.1 For the purpose of defining “office supplies” as it relates to procurement, the meaning is understood to be “a consumable item/product used regularly in an office environment to perform departmental personnel’s daily work assignments.” Office Supplies to include but are not limited to: Pens, Pencils, Markers, Note Pads, Composition/Theme Books, Post-It-Notes, Paper (other than for copier,), Index Cards, Labels, File Folders, File Organizers, Envelopes, Staplers, Scissors, Tape, Pushpins, Binders, Binder Index Systems, Paper Clips, Rubber bands, and Computer Hardware (excluding any software or subscription services)..

6. Combined Services and Purchases.

Attachment Consent Item 8C

GENERAL CONTRACTUAL SERVICES PROCUREMENT

1. Procurement Method

1.1. Table 1 indicates the appropriate procurement method for the purchase of General Contractual Services of certain dollar amounts.

Table 1
PROCUREMENT METHOD DOLLAR AMOUNT per

2. Signing Authority

2.1. Table 2 indicates the appropriate signing authority for the purchase of General Contractual Services of certain dollar amounts.

2.2. Nothing in this section prohibits EBCE staff from seeking approval of a more senior signing authority than is permitted by this policy.

Table 2

SIGNING AUTHORITY DOLLAR AMOUNT
per FISCAL YEAR

CONTRACT TYPE
Board Approval > $100,000 All contracts
Chief Executive Officer, or
his/her designee $0 - $100,000 All contracts
General Counsel $0-$50,000
All contracts related to the activities or
functions of the Office of the General
Counsel
Chief Operating Officer $0-$25,000 All contracts related to the activities or functions of the Office of the COO
Attachment Consent Item 8C
Chief Information
Officer $0-$15,000
All contracts related to the activities or
functions of the Office of the Chief
Information Officer
Senior Director or Vice
President $0-$10,000
All contracts whose object or purpose is
related to the activities or functions of that
Senior Director or Vice President
Director $0-$5,000
All contracts whose object or purpose is
related to the activities or functions of that
Director
III. FORMAL RFP/RFQ PROCEDURES
Except as otherwise specifically directed in writing by the CEO, agreements for the purchase of General Contractual Services for a total amount that exceeds $100,000 per fiscal year shall be procured as follows:

1. Formal RFP/RFQ Invitations. Invitations to participate in the Request for Proposal/Request for Qualifications (RFP/RFQ) process shall include a general description of the supplies or services sought by EBCE, and shall specify the time, place and date for opening responses.

2. Evaluation. Proposals received through a competitive solicitation shall be subject to a set of criteria and a scoring system, reviewed and evaluated by relevant EBCE staff and an evaluation committee selected by the relevant staff, CEO, COO or General Counsel, or at the discretion of the Board, members of a designated Board subcommittee.

3. Selected Respondent. “Selected Respondent” as used in this policy shall mean that respondent who best responds in price, quality, service, fitness, or capacity to the particular requirements of EBCE. Price alone shall not be the determining factor but shall be considered along with other factors, including but not limited to the following:

Attachment Consent Item 8C

3.3. Award of Contract. EBCE shall award the contract to purchase goods or services to the Selected Respondent, unless such an award would be prohibited by California law.

IV.PROFESSIONAL SERVICES PROCUREMENT

1. Procurement Method

1.1. Table 3 indicates the appropriate procurement method for the purchase of Professional Services of certain dollar amounts.

Table 3
PROCUREMENT METHOD DOLLAR AMOUNT per

FISCAL YEAR

2. Signing Authority

2.1. Table 4 indicates the appropriate signing authority for an agreement for Professional Services of certain dollar amounts.

2.2. Nothing in this section prohibits EBCE staff from seeking approval of a more senior signing authority than is permitted by this policy.

Attachment Consent Item 8C
Table 4

SIGNING AUTHORITY DOLLAR AMOUNT
per Fiscal Year

4. The following factors are not sufficient to justify a sole source procurement:

4.1. Personal preference for product or vendor

4.2. Cost

4.3. Vendor performance

4.4. Local service (this may be considered an award factor in competitive bidding)

4.5. Features that exceed the minimum requirements for the goods or services Attachment Consent Item 8C
VI. EMERGENCY PROCUREMENT

1. In the event of an emergency, the CEO may suspend the normal purchasing and procurement requirements for goods and services related to abatement of the impacts or effects of the emergency.

2. An emergency is deemed to exist in the following circumstances:

2.2. There is immediate need to prepare for national or local defense; or

2.3. There is a breakdown in infrastructure or an essential service which requires the immediate purchase of supplies or contractual services to protect the public heath, or safety or property; or

2.4. A local emergency or disaster has been declared.

VII. COOPERATIVE PURCHASING

1. The procurement methods identified in Table 1 -4 shall not be required when the contract for goods or services will be provided by another governmental agency.

VIII. PUBLIC PROJECTS

2. At the time of the adoption of this Policy, the UPCCAA applied to the following types of projects:

Attachment Consent Item 8C

2.2. Public projects up to $60,0001 may be performed by EBCE employees, by negotiated contract, or by purchase order pursuant to the UPCCAA.

2.3. Public projects up to $200,0002 may be contracted using informal procedures as set forth in the UPCCAA.

4. Notice.

Table 5

SIGNING AUTHORITY DOLLAR AMOUNT
per fiscal year
Executive Committee of the Board of
Directors or Board of Directors Approval > $100,000
Chief Executive Officer, or his/her
designee
$0 - $100,000
General Counsel $0-$50,000
Chief Operating Officer $0-$25,000
Senior Director or Vice President $0-$10,000
1 As may be amended from time to time. Current dollar amount should be confirmed. See https://www.sco.ca.gov/ard_cuccac.html. 2 As may be amended from time to time. Current dollar amount should be confirmed. See https://www.sco.ca.gov/ard_cuccac.html
Attachment Consent Item 8C
Director $0-$5,000
Attachment Consent Item 8C
IX. PROCUREMENT OF POWER

1.1. The CEO is authorized to enter into agreements in accordance to the approved Risk Management Policy.

1.4. With dual signatures, the COO and Director of Power Resources are authorized to enter into agreements with equivalent authority as the CEO in accordance with the approved Risk Management Policy.

X. MISCELLANEOUS

1.1. Non-Disclosure Agreements – Director level and above,

1.2. Banking and Treasury Administration – COO level and above, and

1.3. Release of Liability and Indemnification – Director level and above Attachment Consent Item 8C
Consent Item 9
Consent Item 9
TO: East Bay Community Energy Board of Directors
FROM: Chris Eshleman, Director of Energy Analytics and Electric Supply SUBJECT: Storage and Renewable Bid Optimization Platform with Ascend Analytics DATE: June 21st, 2023
________________________________________________________________________ Recommendation
Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute a Software as a Service Agreement with Ascend Analytics for Storage and Renewable Bid Optimization software services for a 2-year subscription term with a year 1 annual payment not to exceed $135,300 and a year 2 annual payment not to exceed $135,300 for a total 2- year subscription term not-to-exceed $270,600, together with the option to extend the subscription term for up to one, additional 1-year term.

Background and Discussion
After a review of the specific needs for the East Bay Community Energy (EBCE) team to effectively bid and optimize solar plus storage assets, EBCE staff issued a Request for Proposals (RFP) for an off-the-shelf software solution. This solution would serve the needs of the Power Resources team.

1. Assessment, Review and Selection Process
EBCE staff initiated an RFP in May 2021 for the first energy storage project, Henrietta D. The first step was to determine what operations staff would conduct in-house and which would be managed by EBCE’s scheduling coordinator, Northern California Power Agency (NCPA). It was determined that staff would manage the setting of strategy and procurement of optimization software in-house. To accomplish the work a new software solution would be required that could bid and optimize EBCE’s growing fleet of storage and renewable assets to maximize the benefits for customers.

EBCE staff then issued a second RFP in August 2022 for the next tranche of projects coming online in 2023 and 2024. Staff decided to issue a new RFP given on-going conversations with new software providers and given issues with the provider awarded in the 2021 RFP.

For the RFP, a scoring rubric was created to objectively score all potential respondents. Staff issued the RFP via EBCE’s RFP email list and additionally posted it to EBCE’s solicitation web Consent Item 9
page. The RFP was open from August 1, 2023, and closed on August 22, 2023, and staff received a total of seven responses. In comparison, EBCE received four responses in the 2021 RFP. The scoring rubric graded and ranked responses based on experience, references, solution alignment, modeling methodology, and cost. Staff conducted interviews with five of the respondents to gain better insight into their product offering and asked questions not answered within their RFP responses. After review, the respondents were scaled down to two, Ascend Analytics and NextEra 360.

Staff conducted further scoring assessments of these two contenders, and both Ascend Analytics and NextEra 360 scored equally. Key members of the Power Resources team conducted follow-up interviews with both Ascend Analytics and NextEra 360 to get into the finer details of how their product can maximize operational potential. Following the second round of interviews, staff members participating in the evaluation voted for Ascend Analytics.

The following advantages were cited:
• Overall, the Ascend Analytics platform provides for a user-friendly experience and allows for uploading and downloading of operational data with ease. The interface is entirely web-based and allows users to access from anywhere they have internet access.
• Ascend Analytics platform allows for easy scenario analysis to determine the most appropriate bidding and scheduling strategy, each being unique to a particular solar plus storage resource.
• Ascend Analytics optimizes bids for both the solar resource and the storage resource, creating a paid bid set that manages the resource efficiently. • Ascend Analytics platform shows detailed financial breakdowns for each hour of each day for EBCE staff to dive into and see where revenue streams are generated. • Ascend Analytics platform contains all necessary information but does not contain extras for the sake of inclusion. This allows for focused presentation of information to allow EBCE staff to digest the intricacies of operations. • Cost estimates were provided as part of the RFP response from both providers on the shortlist. Ascend Analytics had a comparable cost to NextEra 360 (Ascend Analytics $135,300 vs. NextEra 360 at $107,100 for a comparable quote for an initial 1-year term), both total costs are within a range of expectations. Staff determined that the premium associated with Ascend Analytics was justified given the capabilities and advantages associated with that platform, as described in the points above.

2. Proposed Subscription Services
EBCE staff proceeded to review and finalize the quote from Ascend Analytics. Below are the key features for the package proposed:
• Forecasting – Forecast market conditions to optimize both day-ahead and real-time. • Automated Bids Submissions – Manage asset revenue through 25 automated and optimized bid submissions per day (1 Day-Ahead and 24 Real-Time) with an adaptive real-time agent continuously adjusting real-time bids.
• Plant Dispatch Optimization – optimize plant dispatch of traditional resources such as natural gas, biomass, biogas and geothermal.
• State of Charge Management – Balance battery state of charge against current and future revenue opportunities.

Consent Item 9
• Bidding Strategies – Manage multiple bidding strategies tune to asset-specific goals, risk appetite and desired revenue stack, through review of strategy performance. • Risk – Ensure risk from market commitments remains within user defined acceptability parameters.

EBCE staff will retain unlimited user licenses to cover members in Power Resources and NCPA scheduling teams.

3. Anticipated Additional Costs
EBCE staff anticipates that there will be no additional costs associated with the full implementation of the Ascend Analytics platform.

4. Fiscal Impact
EBCE’s approved budget for this fiscal year includes $135,300 for Storage and Renewable Bid Optimization software implementation; this is within the approved budget amount for the 23- 24 fiscal year. The cost of year 2 of the subscription term is not-to-exceed $135,300. The 2- year subscription term total is not-to-exceed $270,600. The cost of a 1-year extension shall not exceed $138,100.

5. Compliance with Administrative Procurement Policy
Following Section IV of the Administrative Procurement Policy, EBCE staff issued a formal RFP on August 22nd, 2022, due to initial indicative costs estimated over $100,000 per fiscal year.

The RFP was issued publicly via email and posted on our website. Each of the submitted responses was graded using the scoring rubric and the recommended counterparty was chosen as the lowest responsible bidder. Per Section III of the Administrative Procurement Policy, this board memo along with board resolution are presented to the board for consent due to dollar amount is greater than $100,000 per fiscal year.

Attachments
A. Resolution Authorizing the CEO to Negotiate and Execute a Software as a Service Agreement with Ascend Analytics
Attachment Consent Item 9A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CHIEF EXECUTIVE

OFFICER TO NEGOTIATE AND EXECUTE A SOFTWARE AS A SERVICE AGREEMENT WITH

ASCEND ANALYTICS TO PROVIDE SERVICES FOR THE USE OF A STORAGE AND RENEWABLE

BID OPTIMIZATION PLATFORM
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. Stockton, located in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022.

WHEREAS there is a need for EBCE to subscribe to and operate a Storage and Renewable Bid Optimization software platform for the Power Resources objectives; WHEREAS EBCE staff has conducted a thorough assessment of EBCE’s requirements for a Storage and Renewable Bid Optimization platform and evaluated several commercially available off-the-shelf software solutions via the issuance of a formal all-source Request for Proposals;
WHEREAS the services offered by Ascend Analytics was determined to be the best fit to meet the current and future needs of EBCE;

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors hereby authorizes the CEO to negotiate and execute a Software as a Service Agreement to subscribe to Ascend Analytics services to establish a Storage and Renewable Bid Optimization Platform for a 2-year subscription term with a year 1 annual payment not to exceed $135,300 and a year 2 annual payment not to exceed $135,300 for a total 2-year subscription term not-to-exceed $270,600, together with an option to extend the subscription term for up to one, additional 1-year term. The cost of a 1-year extension shall not exceed $138,100.

Attachment Consent Item 9A
ADOPTED AND APPROVED this 21st day of June 2023.
_____________________________________________
Elisa Marquez, Chair
ATTEST:
________________________________
Adrian Bankhead, Clerk of the Board
Consent Item 10
Consent Item 10
TO: East Bay Community Energy Board of Directors
FROM: Dan Lieberman, Director of Marketing
SUBJECT: A Resolution of the Board of Directors of the East Bay Community Energy Authority Approving a Consulting Services Agreement for Printing and Mailing Services with Dakota Press, Inc.

DATE: June 21, 2023
__________________________________________________________________ Recommendation
Approve a resolution authorizing the CEO to negotiate and execute a Consulting Services Agreement for printing and mailing services with Dakota Press Inc, with total compensation not to exceed $400,000 for a term of July 1, 2023 through June 30, 2024.

Background and Discussion
In July 2018, following a public Request for Proposal process, the Board of Directors authorized the CEO to execute a Consulting Services Agreement with FinalOption Corp. of San Jose, California, for Printing and Mailing Services. The agreement with FinalOption was extended each year since 2018 due to their exceptional service and competitive rates. EBCE’s Administrative Procurement Policy requires that “Agreements with existing vendors may be amended and/or extended to allow for the continuation of services for no more than a total term of five (5) years” and that a formal bidding procedure is required for contracts over $100,000 per year.

EBCE issued a Request for Proposal (RFP) in March 2023 for printing and mailing services, and received 10 responses. Dakota Press, Inc was selected as the top scoring proposal based on their depth of experience, competitive rates, location in San Leandro, and status as a certified Bay Area Green Business, Small Business/Woman-Owned Business, and a Union Shop. EBCE has ongoing printing and mailing needs to communicate with customers and meet state requirements for at least two annual Consent Item 10
customer notices, as well as additional printing and mailing needs related to EBCE’s pending rebrand.

Fiscal Impact
The costs of the printing and mailing tasks are included in the Marketing budget for Fiscal Year 2023-2024.

Attachments
A. Resolution of the Board of Directors of the East Bay Community Energy Authority Approving a Consulting Services Agreement for Printing and Mailing Services with Dakota Press, Inc.

Attachment Consent Item 10A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY APPROVING A CONSULTING

SERVICES AGREEMENT FOR PRINTING AND MAILING SERVICES WITH DAKOTA PRESS, INC
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton, located in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022.

WHEREAS EBCE has ongoing printing and mailing needs to communicate with customers and meet state requirements for at least two annual customer notices; WHEREAS EBCE issued a Request for Proposal (RFP) in March 2023 for printing and mailing services and received 10 responses;
WHEREAS Dakota Press, Inc was selected as the top scoring proposal based on their depth of experience, reasonable rates, location in San Leandro, and status as a certified Bay Area Green Business, Small Business/Woman-Owned Business, and a Union Shop.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors hereby authorizes the CEO to negotiate and execute a Consulting Services Agreement with Dakota Press Inc, with total compensation not to exceed $400,000 for a term of July 1, 2023 through June 30, 2024.

ADOPTED AND APPROVED this 21st day of June, 2023.

Elisa Márquez, Chair
Attachment Consent Item 10A
ATTEST:

Adrian Bankhead, Clerk of the Board
Consent Item 11
Consent Item 11
TO: East Bay Community Energy Board of Directors
FROM: Dan Lieberman, Director of Marketing
SUBJECT: Amendment to Consulting Services Agreement with Celery Design Collaborative
DATE: June 21, 2023
__________________________________________________________________ Recommendation
Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute the Fifth Amendment to EBCE’s Consulting Services Agreement with Celery Design Collaborative to add $400,000 in compensation for Fiscal Year 2023-24, to extend the term, and to update the hourly rates of compensation.

Background and Discussion
EBCE staff issued a competitive solicitation for an independent graphic and web design consultant on April 25, 2019, and selected Celery Design Collaborative (“Celery”), a small firm located in Berkeley and registered as a Small, Local, and Emerging Business (SLEB) with the County of Alameda. The Board approved a contract with Celery at the regular meeting on July 17, 2019. The First Amendment to expand the scope and budget of the agreement was approved by the Board on February 19, 2020 for the term ending on July 31, 2020. A Second Amendment was approved by the Board on July 15, 2020 to extend the term to June 30, 2021 and setting a budget of $200,000 for the remainder of the term. A Third Amendment was approved by the Board on April 21, 2021 to add $100,000 to the not-to-exceed amount for fiscal year 2020 – 2021, and to extend the term through June 30, 2022, with an amount not to exceed $300,000 for fiscal year 2021-2022, bringing the not-to-exceed amount for both fiscal years to $300,000 each. A Fourth Amendment was approved by the Board on July 20, 2022 to add $445,000 to the not-to-exceed amount for the fiscal year 2022-23.

Consent Item 11
During the coming fiscal year, the programs team will be busy developing and launching programs including a $10 million e-bike program, and EBCE will implement a re-brand initiative, significantly increasing demand on the Marketing team to develop and implement a broad range of customer engagement tactics. Therefore, staff recommends increasing the budget for these services with Celery. EBCE plans to do a competitive solicitation for design services for the next fiscal year, as well as bring more design capabilities in-house.

Fiscal Impact
There are funds in the current Marketing and Account Services budget to accommodate this additional amount. EBCE receives a discounted non-profit hourly rate from Celery.

Attachments
A. Resolution Authorizing the Chief Executive Officer to Negotiate and Execute a Fifth Amendment to the Consulting Services Agreement with Celery Design Collaborative
Attachment Consent Item 11A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CHIEF

EXECUTIVE OFFICER TO NEGOTIATE AND EXECUTE A FIFTH AMENDMENT TO THE

CONSULTING SERVICES AGREEMENT WITH CELERY DESIGN COLLABORATIVE WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton, located in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022.

WHEREAS in July 2019, through a competitive solicitation EBCE selected and entered into a Consulting Services Agreement with Celery Design Collaborative of Berkeley, California to provide Graphic and Web Design Services; and WHEREAS four amendments have been executed to extend the contract term and increase the not-to-exceed limit on the contract; and WHEREAS EBCE’s workload for graphic design and website development is forecast to be high in FY23-24 due to the launch of new programs including a $10 million e-bike program, and EBCE will implement a re-brand initiative.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The CEO is hereby authorized to negotiate and execute the Fifth Amendment to the Consulting Services Agreement between EBCE and Celery Design Collaborative, to extend the term through June 30, 2024, and to increase the compensation by $400,000, for a total amount not to exceed $1,445,000, and to update the hourly rates. The Agreement will be approved by General Counsel.

ADOPTED AND APPROVED this 21st day of June, 2023.

Attachment Consent Item 11A

Elisa Márquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Consent Item 12
Consent Item 12
TO: East Bay Community Energy Board of Directors
FROM: Alex DiGiorgio, Public Engagement Manager
SUBJECT: City of Stockton Community Advisory Committee (CAC) seat and term extension for current regional members
(Action item)
DATE: June 21, 2023
__________________________________________________________________ Recommendation
1) Approve creating an interim CAC seat to represent the City of Stockton; 2) Approve a six-month term extension for current CAC members, extending their term through December 2023
Background and Discussion
On October 21, 2020, the Board of Directors approved updates to the CAC Guide and Appointment process. These updates were made to ensure proper representation and engagement of the CAC, particularly given the inclusion of EBCE’s new communities in the cities of Newark, Pleasanton, and Tracy. The updates included the following: The addition of three seats (increasing the size of the CAC to twelve active seats to address the voting shares); configuring the apportionment of CAC seats to EBCE Service Area Regions; appointing one Alternate Member for each EBCE Service Area Region, for a total of five; and engaging the Mayors’ Conference to appoint two at-large Members.

Since then, the CAC has been composed of twelve active seats (“Members”) and five alternate seats (“Alternates”).

As reflected in the table below, the CAC seat allocations approximate the voting shares percentage of each member jurisdiction:

Consent Item 12
EBCE Service Area Region JPA Vote Share CAC Seat Allocation Alternate Seat Allocation
NORTH
Albany, Berkeley, Oakland,
Emeryville, and Piedmont
30% 3 1
EAST
Dublin, Livermore, and Pleasanton
14% 1 1
SOUTH
Fremont, Union City and Newark
27% 3 1

CENTRAL
Hayward, San Leandro, and
Alameda County Unincorporated
23% 2 1

SAN JOAQUIN COUNTY
Tracy
6% 1 1
At-Large N/A 1 N/A
At-Large N/A 1 N/A

By assigning seats to EBCE Service Area Regions, EBCE can engage the city/county Board members for outreach and appointment nominations. This regional apportionment was also intended to ensure equitable representation of all EBCE communities on the CAC.

The CAC currently has eleven members serving (i.e., nine Regional members and two At-Large members) with one Member vacancies (South region). All five Alternate seats are currently vacant.

Below is a table with the current make-up of the CAC:

EBCE Service Area Region Current CAC Representation
NORTH
Albany, Berkeley, Oakland,
Emeryville, and Piedmont
Anne Olivia Eldred (Chair)
Cynthia Landry (Member)
Lisa Hu (Member)
[Alternate vacancy]
EAST
Dublin, Livermore, and Pleasanton
Joel Liu (Member);
[Alternate vacancy]
SOUTH
Fremont, Union City, and Newark
Shiva Swaminathan (Member)
Vijay Lakshman (Member)
[Member vacancy]
[Alternate vacancy]

CENTRAL
Hayward, San Leandro, and
Alameda County Unincorporated
Ernie Pacheco (Member)
Lorraine Souza (Member)
[Alternate vacancy]
Consent Item 12

SAN JOAQUIN COUNTY
Tracy
Harman Ratia (Member)
[Alternate vacancy]
At Large Ed Hernandez (Vice Chair)
At Large Jim Lutz (Member)

All active Regional CAC members have communicated with staff to confirm their desire to remain on the Committee if a six-month term extension is approved by the Board.

Recommendation 1: Approve the addition of a new, interim CAC seat to represent the City of Stockton via Resolution at the June 21 Board of Directors meeting In March 2023, EBCE received the California Public Utility Commission’s (CPUC) certification recognizing the City of Stockton (“Stockton”) as a member of EBCE’s Joint Powers Authority (“JPA”). This came in response to EBCE’s timely filing of an updated Implementation Plan to include Stockton within EBCE’s service area. Shortly thereafter, Stockton City Council Member Dan Wright was sworn in to represent Stockton among EBCE’s Board of Directors.

Per Sec.4.9 of EBCE’s Joint Powers Agreement, the Board is entitled to establish a Community Advisory Committee (CAC) to advise Board members on a wide range of subjects. As EBCE’s service area has expanded to include new jurisdictions, the CAC’s size and structure has been adjusted by the Board to accommodate appointments by incoming Board members representing these new communities.

In anticipation of EBCE's inclusion of Stockton, and since Stockton’s JPA membership became certified by the CPUC, Stockton’s elected officials and community members have requested that a seat be created on the CAC to represent Stockton’s interests and perspective (please refer to the attached 5/19/23 email from Councilmember Wright to EBCE staff). In response, staff proposes the Board consider approving an additional, interim seat to be filled by a representative appointed by Stockton through whatever process Stockton’s staff and elected leaders deem appropriate.

The additional seat is proposed to be interim because current CAC members have previously been appointed on a regional basis (aside from the two At-Large members), rather than by individual jurisdictions. As discussed below, EBCE staff intend to consider proposing additional structural adjustments, and/or expansions of the CAC, in anticipation of future service area expansion (e.g., staff may recommend each individual EBCE jurisdiction is entitled to appointment a CAC member, instead of regional appointments). Any future adjustments to the size and/or structure of the CAC will regard the City of Stockton’s representation as a high priority and will be undertaken with the involvement of Stockton’s Board member/Alternate.

Recommendation 2: Approve a six-month term extension for the CAC’s current Regional members via Resolution at the June 21 Board of Directors meeting Consent Item 12
As mentioned above, staff also propose to extend the terms of current Regional CAC members by at least six months (i.e., through December 2023). The terms of current Regional members are set to end on June 30th. EBCE staff have communicated with the current CAC Chair and every Regional Member to confirm their desire to continue serving in their current capacities through December 2023. All but one of the current Regional members have expressed their desire to continue serving on the CAC should a six-month extension be approved by the Board of Directors. That member (from the South region) is no longer active on the CAC.

As proposed, a six-month term extension would provide the following benefits:

1. Consistency and continuity during EBCE’s name change and rebrand exploration. In response to EBCE’s expanding service area and inclusion of new communities, EBCE is currently evaluating the possibility of changing EBCE’s name and updating its brand identity. The CAC has provided valuable feedback and insight throughout this process to date. To help ensure robust community input, staff recommends maintaining the same CAC representation until the rebranding exploration is complete.

2. Aligning the service terms of the CAC’s Regional members with At Large members. Unlike the CAC’s Regional members, the Committee's two At Large members are appointed by the Alameda County Mayors’ Conference. As a result, the timing of these appointments is currently misaligned by six months.

By approving a six-month term extension, all CAC members will have terms ending on the same term cycle. These terms can be staggered by future Board action along with any additional adjustments considered by the Board.

3. Providing more time to consider future adjustments to the CAC’s size and structure. By December 2023, EBCE staff anticipate having a clearer sense of what additional cities and/or counties (if any) intend to join EBCE’s JPA. This will help staff advise the Board on how best to restructure the CAC (if at all) so that it continues to effectively represent and accurately reflect the communities EBCE serves.

Fiscal Impact
The addition of one new interim seat for Stockton will increase the CAC stipend budget from $20,400 to approximately $30,000. The additional stipend will be disbursed once the new interim CAC member is sworn-in and begins serving at regular monthly meetings.

Committee Recommendation
EBCE's Executive Committee considered the staff recommendations above at their June 6, 2023, meeting as a discussion item. All current/active Regional CAC members have communicated to staff their desire to remain on the Committee if a six month term extension is approved by the Board.

Consent Item 12
Attachments
A. Resolution
B. May 19, 2023, email to EBCE staff from Stockton City Councilmember and EBCE Board Member Dan Wright requesting Stockton’s representation on the Community Advisory Committee (CAC)
Attachment Consent Item 12A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY

ENERGY AUTHORITY TO APPROVE THE ADDITION OF AN INTERIM SEAT FOR THE

CITY OF STOCKTON ON THE COMMUNITY ADVISORY COMMITTEE AND TO EXTEND

THE CURRENT TERMS OF ALL REGIONAL MEMBERS BY SIX MONTHS WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The City of Stockton, located in San Joaquin County, was added as a member of EBCE and a party to the JPA in March of 2022.

WHEREAS, the Board of Directors approved the Community Advisory Committee Guide and Appointment Process (“Guide”) on November 10, 2019, which outlines the committee seats, qualifications, and appointment process; and WHEREAS, at the October 21, 2020, meeting, the Board of Directors approved updates to the Guide language to include the new service area, assign seats based on EBCE Service Area Regions, shorten current and future member terms to two years, increase the size of the Committee Advisory Committee (“CAC”) by two (2) additional at-large seats, allocate one (1) alternate seat for each Service Area Region, and request the Mayors’ Conference fill the two (2) at-large seats; and WHEREAS, from December 15, 2020, to February 15, 2021, EBCE staff facilitated an online application process through which members of the public could apply to be considered for appointment to the CAC by the Board Members representing the jurisdictions within their respective EBCE Service Area Regions.

WHEREAS, twenty-six applications were received during the application period, with at least two applicants from every EBCE Service Area Region, and WHEREAS, the Board Members from each EBCE region reviewed the applications from their respective planning areas and recommended the applicants to be considered for appointment by the Board of Directors; and WHEREAS, two new Regional CAC Members and three Alternate Members were appointed at the April 21, 2021, Board meeting; and three new Regional CAC Members and one Alternate Member were appointed at the May 19, 2021, Board meeting; and WHEREAS, in November 2021, the Alameda County Mayors’ Conference confirmed the appointment of the CAC’s two at-large Members; and Attachment Consent Item 12A
WHEREAS, on May 19, 2023, the City of Stockton’s EBCE Board Member communicated in writing to staff their request to create an additional seat on the CAC to represent Stockton; and
WHEREAS, the current terms for the CAC’s Regional Members end June 30, 2023; and
WHEREAS, EBCE’s staff and Board of Directors are currently engaged in a CCA name and brand change exploration; and the CAC’s consultation and feedback has been helpful in that effort to date; and
WHEREAS, EBCE’s staff expects the CCA name and brand change exploration and/or implementation process to continue for at least several more months; and the loss of continuity with a change in CAC membership would undermine these efforts; and
WHEREAS, by June 2023, all current Regional CAC members confirmed their intentions of continuing to serve on the CAC if a six-month term extension were to be approved by the Board of Directors;
WHEREAS, on June 6, 2023, EBCE staff sought direction from the Executive Committee, regarding the prospect of creating an additional, interim CAC seat for Stockton; and extending the current terms for Regional CAC Members by six months (I.e., through December 31, 2023); and
WHEREAS, in anticipation of potential future expansion of EBCE’s service area and JPA membership, EBCE staff intend to provide recommendations to the Board regarding any adjustments to the CAC’s size and structure by December 2023.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors hereby authorizes the creation of an interim CAC seat for the City of Stockton; and
Section 2. The Board of Directors hereby authorizes a six-month term extension (through December 31, 2023) for the current Regional CAC members outlined below:

EBCE Service Area Region Current CAC Representation
NORTH
Albany,
Berkeley, Oakland,
Emeryville, and Piedmont
Anne Olivia Eldred (Chair)
Cynthia Landry (Member)
Lisa Hu (Member)
EAST
Dublin, Livermore, and
Pleasanton
Joel Liu (Member);
SOUTH Shiva Swaminathan (Member)
Vijay Lakshman (Member)
Attachment Consent Item 12A
Fremont, Union City, and
Newark

CENTRAL
Hayward, San Leandro,
and Alameda County
Unincorporated
Ernie Pacheco (Member)
Lorraine Souza (Member)

SAN JOAQUIN COUNTY
Tracy
Harman Ratia (Member)
ADOPTED AND APPROVED this 21st day of June, 2023.

Elisa Márquez, Chair
ATTEST:

Adrian Bankhead, Assistant Clerk of the Board
5/31/23, 3:56 PM East Bay Community Energy Mail - CAC Representative https://mail.google.com/mail/u/0/?ik=b186b7ca9f&view=pt&search=all&permthid=thread-f:1766360559111870456&simpl=msg-f:1766360559111870456&simpl=m… 1/2 Alex DiGiorgio <[email protected]>
CAC Representative
4 messages
Dan Wright <[email protected]> Fri, May 19, 2023 at 2:44 PM To: Alex DiGiorgio <[email protected]>
Cc: Adrian Bankhead <[email protected]>, Nick Chaset <[email protected]>, Eliza Garza <[email protected]>, Kevin Lincoln <[email protected]>, Kimberly Warmsley <[email protected]>
Alex,
It was great running into you at the Hydrogen event in Dublin on Wednesday. I'm excited about adding a Stockton representative to the EBCE Citizens Advisory Council. When you folks send the official request for a representative, please send it to our City Clerk, Eliza Garza ([email protected]) with a cc to Mayor Lincoln, Vice Mayor Warmsley, and me. She will be the person to organize the selection process that the Council will utilize to make the selection.

Thanks!
Dan Wright
Council Member, District 2
City of Stockton
[email protected]
(209) 937-8244
https://www.facebook.com/CouncilmemberDanWright
https://www.instagram.com/vicemayorwright/
https://twitter.com/danwrightca
Eliza Garza <[email protected]> Sat, May 20, 2023 at 3:52 PM To: Dan Wright <[email protected]>, Alex DiGiorgio <[email protected]> Cc: Adrian Bankhead <[email protected]>, Nick Chaset <[email protected]>, Kevin Lincoln <[email protected]>, Kimberly Warmsley <[email protected]> Received. I’ll be on the lookout.

Eliza
From: Dan Wright <[email protected]>
Sent: Friday, May 19, 2023 2:44:54 PM
To: Alex DiGiorgio <[email protected]>
Cc: Adrian Bankhead <[email protected]>; Nick Chaset <[email protected]>; Eliza Garza <[email protected]>; Kevin Lincoln <[email protected]>; Kimberly Warmsley <[email protected]>
Subject: CAC Representative
[Quoted text hidden]
Alex DiGiorgio <[email protected]> Mon, May 22, 2023 at 4:28 PM To: Eliza Garza <[email protected]>
Cc: Dan Wright <[email protected]>, Adrian Bankhead <[email protected]>, Nick Chaset <[email protected]>, Kevin Lincoln <[email protected]>, Kimberly Warmsley <[email protected]>
Attachment Consent Item 12B
5/31/23, 3:56 PM East Bay Community Energy Mail - CAC Representative https://mail.google.com/mail/u/0/?ik=b186b7ca9f&view=pt&search=all&permthid=thread-f:1766360559111870456&simpl=msg-f:1766360559111870456&simpl=m… 2/2 Thank you, Councilmember Wright! It was great to see you last week as well.

Re the City's CAC appointment: I'll be sure to proceed as you describe below.

Eliza, it's a pleasure to be connected with you. I'll be sure to reach out once EBCE's Board takes action and we're ready to coordinate Stockton's CAC appointment.

Many thanks again,
Alex
[Quoted text hidden]
--
Alex DiGiorgio, JD (he/him) | Public Engagement Manager East Bay Community Energy
[email protected] | 510-993-7562
Follow us on Facebook | Twitter | LinkedIn | YouTube
EBCE respects your privacy. Please see EBCE's customer confidentiality policy at ebce.org/confidentiality.

Eliza Garza <[email protected]> Mon, May 22, 2023 at 8:43 PM To: Alex DiGiorgio <[email protected]>
Cc: Dan Wright <[email protected]>, Adrian Bankhead <[email protected]>, Nick Chaset <[email protected]>, Kevin Lincoln <[email protected]>, Kimberly Warmsley <[email protected]>
Sounds good. Thank you.

Eliza
From: Alex DiGiorgio <[email protected]>
Sent: Monday, May 22, 2023 4:28:36 PM
To: Eliza Garza <[email protected]>
Cc: Dan Wright <[email protected]>; Adrian Bankhead <[email protected]>; Nick Chaset <[email protected]>; Kevin Lincoln <[email protected]>; Kimberly Warmsley <[email protected]>
Subject: Re: CAC Representative
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.
[Quoted text hidden]
Attachment Consent Item 12B
Consent Item 13
Consent Item 13
TO: East Bay Community Energy Board of Directors
FROM: Annie Henderson, Vice President Marketing & Account Services SUBJECT: Second Amendment to Consulting Services Agreement with MissionCTRL Inc.

DATE: June 21, 2023
__________________________________________________________________ Recommendation
Adopt a Resolution to authorizing the CEO to negotiate and execute a Second Amendment to the Consulting Services Agreement with MissionCTRL Inc. for public relations services to increase the not-to-exceed budget by $98,000, add the hourly rates of compensation and extend the term through June 30, 2024, with total compensation not to exceed $296,000.

Background and Discussion
EBCE entered into a Consulting Services Agreement with MissionCTRL dated August 9, 2021 to provide support for media relations, thought leadership, and other public relations for $100,000. The Agreement was amended by a First Amendment to the Consulting Services Agreement on June 24, 2022 to add additional compensation, increasing the not-to-exceed amount by $98,000 for a total amount not to exceed $198,000 and to extend the term through May 31, 2023.

As of May 2023, the actual spend with MissionCTRL for Fiscal Year 2022/2023 was $99,000, so Board authority is required to add funds for June 2023 ($5,000 fixed fee plus any hourly costs that are incurred) as the total spend for the fiscal year will exceed the executive signing authority of $100,000 in any single fiscal year.

Staff requests extending he term of the Agreement through June 30, 2024, adding hourly rates of compensation and increasing the budget by $98,000, for a total NTE of $296,000 to continue with the services provided by MissionCTRL. These services remain outsourced and the support of MissionCTRL continues to add value to the work of EBCE staff.

Consent Item 13
Fiscal Impact
This contract amount is included in the proposed budget for Fiscal Year 2023/2024.

Attachments
A. Resolution
Attachment Consent Item `13A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY

TO AUTHORIZE CEO TO NEGOTIATE AND EXECUTE A SECOND AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH MISSIONCTRL INC. FOR PUBLIC

RELATIONS SERVICES
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton, located in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022;
WHEREAS EBCE and MissionCTRL entered into that certain Consulting Services Agreement dated August 9, 2021 (C-2021-097) (“Agreement”), wherein MissionCTRL agreed to provide thought leadership services to EBCE, with a term of six months and compensation not to exceed $100,000;
WHEREAS EBCE and MissionCTRL entered into that certain First Amendment to the Consulting Services Agreement on June 24, 2022 (C-2022-064) to add additional compensation, increasing the not-to-exceed amount by $98,000 for a total amount not to exceed $198,000 and to extend the term through May 31, 2023; WHEREAS EBCE and MissionCTRL now desire to amend the Agreement to add additional compensation, increasing the not-to-exceed amount by $98,000 to cover thought leadership and public relations services for a total amount not to exceed $296,000 to extend the term through June 30, 2024 and to add an hourly rate of compensation in addition to the monthly fixed fees.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. THE CEO is hereby authorized to negotiate and execute a Second Amendment to the Agreement with MissionCTRL to increase the budget by $98,000, add an hourly rate of compensation, and extend the term through June 30, 2024, with total compensation not to exceed $296,000.

Attachment Consent Item `13A

ADOPTED AND APPROVED this 21st day of June, 2023.

Elisa Márquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Consent Item 14
Consent Item 14
TO: East Bay Community Energy Board of Directors
FROM: Howard Chang, Chief Operating Officer
SUBJECT: Legal Services Agreements Approval for Fiscal Year 2023-2024 DATE: June 21, 2023
__________________________________________________________________ Recommendation
Adopt a Resolution authorizing the CEO or designee to negotiate and execute contracts with select legal vendors in accordance with the legal and other departmental budgets, up to $3,897,000 in accordance with the approved budget for Fiscal Year 2023-2024.

Background and Discussion
The budget staff presented to the Board of Directors tonight includes a total of $3,897,000 for legal vendors across the Legal, Power Resources, Policy, and Local Development, Marketing & Finance budgets. Staff is seeking approval to contract with the following law firms:
• Nixon Peabody - Finance
• Braun Blaising Smith Wynne – Policy
• Law Office of David Peffer - Policy
• Davis Wright Tremaine – Power Procurement/ Local Development/Marketing • Hall Energy Law – Power Procurement
• Keyes and Fox – Policy/Compliance/Power Procurement/Local Development • Richards, Watson and Gershon – General Counsel Services • The Law Offices of Joseph F. Wiedman – Policy
• Wilson Sonsini Goodrich Rosati – Power Procurement/ Local Development • Meyers Nave – Power Resources
Consent Item 14
All firms were utilized in fiscal year 2022-2023. All firms except Meyers Nave and the Law Office of David Peffer were utilized in fiscal years 2020-2021, 2019-2020, and all except three were utilized in fiscal year 2018-2019. Staff is pleased with the prior services and is interested in maintaining strong working relationships as it seeks to extend the current Agreements with the vendors for fiscal year 2022-2023.EBCE recently initiated a new relationship with Meyers Nave for legal services related to power procurement contracts.

The budget breakdown across these functions is anticipated to be:

Outside General Counsel: $500,000
Regulatory & Policy $267,000
Power Procurement $850,000
Local Development $780,000
Marketing $50,000
General Legal, including Litigation Support $1,430,000
Fiscal Impact
Staff anticipates contract amounts with the selected legal vendors in varying amounts that may exceed $100,000. Staff is seeking approval of a Resolution that would authorize staff to negotiate and execute Agreements with the identified legal vendors for a total amount not to exceed $3,897,000, as budgeted.

It is likely that the spend for all legal vendors will be less than $3,897,000, but it would be in EBCE’s best interest to have those funds available to increase the spend of critical contracts for legal services if necessary.

Attachments
A. Resolution Authorizing the Chief Executive Officer to Negotiate and Execute Agreements with Selected Law Firms for Fiscal Year 2023-2024 Attachment Consent Item 14A
RESOLUTION NO. R-2023-xx

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CHIEF

EXECUTIVE OFFICER TO NEGOTIATE AND EXECUTE AN AGREEMENTS WITH SELECTED LEGAL VENDORS FOR FISCAL YEAR 2023-2024
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton, located in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022,
WHEREAS in June 2018, EBCE issued a broad legal services RFP to select law firms to provide legal expertise across various staff functions, including legislative and regulatory policy, power procurement, general counsel services, local development, finance, and other areas; and
WHEREAS EBCE has previously utilized the following firms to secure such legal expertise: Nixon Peabody, Braun Blaising Smith Wynne, The Law Office of David Peffer, Davis Wright Tremaine, Hall Energy Law, Keyes and Fox, Richards, Watson and Gershon, The Law Office of Joseph F. Weidman, and Wilson Sonsini Goodrich Rosati, and Meyers Nave; and
WHEREAS EBCE is pleased with the prior services by these law firms; and WHEREAS EBCE has entered into Consulting Services Agreements with the aforementioned law firms and desires to amend certain Agreements in varying amounts that may exceed $100,000 for Fiscal Year 2023-2024.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The CEO or a designee is hereby authorized to negotiate and execute Consulting Services Agreements and necessary Amendments for one-year terms with firms providing legal services. These firms may include Nixon Peabody; Braun Blaising Smith Wynne; The Law Office of David Peffer, Davis Wright Tremaine; Hall Energy Law; Keyes and Fox; Richards, Watson and Gershon; The Law Office of Joseph F.

Weidman; Wilson Sonsini Goodrich Rosati; and Meyers Nave.

Attachment Consent Item 14A
Section 2. The Consulting Services Agreements and necessary Amendments may be for varying amounts that exceed $100,000 but the total spend on legal services shall not exceed $3,897,000 through June 30, 2024.

ADOPTED AND APPROVED this 21th day of June, 2023.

Elisa Márquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
CEO Report Item 15
CEO Report Item 15
TO: East Bay Community Energy Board of Directors
FROM: Nick Chaset, Chief Executive Officer
SUBJECT: CEO Report (Informational Item)
DATE: June 21, 2023
________________________________________________________________________ Recommendation
Accept Chief Executive Officer (CEO) report on update items below.

Executive Committee Meeting
An Executive Committee meeting was held on Wednesday, June 7, 2023, at 9am. Members reviewed the 2023/24 Draft Budget and received a presentation about the EBCE Name Proposal. Members also considered the creation of an interim CAC seat to represent the City of Stockton and discussed a six-month term extension of current CAC members. The next Executive Committee meeting is scheduled for Wednesday, July 5, 2023, at 9am.

Special Board Retreat for Marketing and Account Services A Special Board Retreat for Marketing and Account Services was held on May 22, 2023, at 9am. Members received an update about the Marketing and Account Services team and activities. A Special Board Retreat for Public Policy will be held on Tuesday, June 27 at 9am.

Marketing, Regulatory and Legislative Subcommittee Meeting A Marketing, Regulatory and Legislative Subcommittee meeting was held on Friday, June 16, 2023, at noon. Members received legislative and regulatory updates and provided feedback about the new brand name proposal. The next Marketing, Regulatory and Legislative Subcommittee meeting will be held on Friday, October 13 at noon.

Staff Report Item 17
Staff Report Item 17
TO: East Bay Community Energy Board of Supervisors
FROM: Nick Chaset, CEO
SUBJECT: EBCE Budget Fiscal Year 2023-2024 (Action Item) DATE: June 21, 2023
________________________________________________________________________ Recommendation
Adopt a resolution approving the 2023-2024 fiscal year budget.

Background and Discussion
EBCE’s fiscal year is from July 1 through June 30. Staff is presenting a proposed draft budget for fiscal year 2023-2024.

This budget presents changes to EBCE’s value proposition by recommending an increase from 3% to 5% discount relative to PG&E rates for EBCE’s Bright Choice product and decreasing the premium of the Renewable 100 product from $0.0075 to $0.0025.

This budget also presents a large net position surplus as a base-case scenario. Staff is recommending a method to manage this surplus to increase EBCE’s value to the community through four processes:

1. Significant contributions to working capital and reserves to ensure agency solvency in the event of possible risk contingencies

2. Increase value proposition customer discount and establish on-bill credits as levels of net position surplus are realized through the year

3. Increase in carbon free energy procurement with short and long-term investments

4. Continued significant contribution to Local Development programs This presented budget is based on feedback from a draft version presented at the Executive Committee on May 3, 2023, the Board of Directors on May 17, 2023, and the Executive Committee on June 7, 2023 (“previous versions”). The budget outlines staff’s best expected estimates for costs and revenues anticipated for the next fiscal year based on load, market prices, and PCIA charges. Due to these updates, the numbers in this draft may differ from those presented in previous versions.

Staff Report Item 17
Summary of EBCE Budget FY 2023-2024
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATING ACTIVITY

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 953,323,000 792,009,000 873,457,000
Uncollectables (12,054,000) (15,840,000) (17,469,000)
Other Operations Revenue (6,642,000) (6,229,000) 9,658,000 Total Operating Revenue 934,627,000 769,940,000 865,646,000

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 683,883,000 523,996,000 654,987,000
Energy Operating Services 11,230,000 11,245,000 11,270,000 Total Energy Operating Expenses 695,113,000 535,241,000 666,257,000 Overhead Operating Expenses
S Personnel 21,911,000 15,711,000 13,317,000
M Marketing & Communications 5,303,000 2,824,000 2,073,000 G Legal, Policy, & Regulatory Affairs 3,459,000 2,411,000 1,603,000 B Other Professional Services 2,555,000 2,293,000 1,302,000 A General & Administrative 5,711,000 4,007,000 3,563,000 Depreciation 360,000 180,000 158,000
Total Overhead Operating Expenses 39,299,000 27,426,000 22,016,000

NON-OPERATING ACTIVITY

NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,561,000
Grants 0 0 1,100,000
Other Non-Operating Revenue 48,000 15,000 160,000
Total Non-Operating Revenue 1,728,000 276,000 2,821,000

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 587,000
Local Development Funding 22,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 717,000
Total Non-Operating Expenses 24,650,000 30,990,000 23,854,000 TOTAL EXPENSES 759,062,000 593,657,000 712,127,000
NET INCREASE(DECREASE) IN POSITION 177,293,000 176,559,000 156,340,000

RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 367,206,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Staff Report Item 17
Fiscal Impact
This establishes the forecast of EBCE’s fiscal position for the next 12 months with a positive net position.

Attachments
A. Resolution adopting the EBCE Budget FY 203-2024
B. EBCE Budget for Fiscal Year 2023-2024 Presentation
C. Overview of Public Process and Summary of Comments
D. Value Proposition Webinar Presentation
E. Public Comments Summary Report
Attachment Staff Report Item 17A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY TO APPROVE THE BUDGET FOR THE 2023-2024 FISCAL YEAR
WHEREAS, The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020.

WHEREAS, EBCE operates on a fiscal year budget cycle from July 1st through June 30th;
WHEREAS, draft versions of EBCE’s budget for fiscal year 2023-2024 were presented to the Executive subcommittee on May 3, 2023 and the Board of Directors on May 17, 2023 (the “Prior Presentations”);
WHEREAS, staff has incorporated feedback from the Prior Presentations and prepared a revised proposed budget, set forth in Exhibit A (the “Proposed Budget”);

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors hereby approves and adopts the Proposed Budget, as set forth in Exhibit A, as EBCE’s fiscal year 2023-2024 budget.

ADOPTED AND APPROVED this 21st day of June, 2023 .

Elisa Marquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Attachment Staff Report Item 17A

EXHIBIT A
EBCE FISCAL YEAR 2023-24 BUDGET
(as adopted on 6/21/2023)
EAST BAY COMMUNITY ENERGY FY 2022-23 FY 2021-22

BUDGET BUDGET

OPERATING ACTIVITY

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 Operating Revenue
Electricity Sales 792,008,000 508,636,000
Uncollectables (15,841,000) (8,939,000)
Other Operations Revenue (6,229,000) 0
Total Operating Revenue 769,938,000 499,697,000

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 523,996,000 442,337,000
Data Management/Customer Service 7,834,000 8,645,000
PG&E Service Fees (Billing/Metering) 2,715,000 2,752,000 CAISO Scheduling Coordinator 696,000 843,000
Total Energy Operating Expenses 535,241,000 454,577,000 Overhead Operating Expenses
Personnel 15,712,000 10,171,000
Marketing & Communications 2,876,000 1,686,000
Legal, Policy, & Regulatory Affairs 2,488,000 1,592,000 Other Professional Services 2,292,000 850,000
General & Administrative 3,884,000 2,961,000
Depreciation 180,000 60,000
Total Overhead Operating Expenses 27,432,000 17,320,000 Total Operating Expenses 562,673,000 471,897,000

NON-OPERATING ACTIVITY

NON-OPERATING REVENUE
Interest Income 262,000 798,000
Grants 0 894,000
Other Non-Operating Revenue 15,000 0
Total Non-Operating Revenue 277,000 1,692,000

NON-OPERATING EXPENSES
Borrowing Interest 1,440,000 898,000
Local Development Funding 22,550,000 8,475,000
Grant 0 0
Capital Expenditures 7,000,000 5,500,000
Total Non-Operating Expenses 30,990,000 14,873,000
NET NON-OPERATING ACTIVITY (30,713,000) (13,181,000)
TOTAL REVENUES 770,215,000 501,389,000
TOTAL EXPENSES 593,663,000 486,770,000
NET INCREASE(DECREASE) IN POSITION 176,552,000 14,619,000 Draft Budget for Fiscal
Year 2023-2024
JUNE 21, 2023
PRESENTED BY:

NICK CHASET, CEO
Attachment Staff Report Item 17B
2 Executive Summary – June Update
• PG&E May ERRA Forecast – filed after May Budget presentation – results in less than $3M change in EBCE’s project net position targets set in 2022 o No changes to base case value proposition (5% discount for BC and $0.0025 premium for R100)
o This additional $3M is added to local programs to extend Community Grant funding and provide technical assistance to CBO Resilience Hubs • Additional changes to the forecast are market fluctuations of about $1.2MM • Staff has also provided more detailed discussion of:
o Major Risk Factors
o Personnel Budget Build Out
o Use of Funds under different Value Proposition scenarios Attachment Staff Report Item 17B
3 Summary Draft Budget for Fiscal Year 2023-2024
Notes:

YTD* reflects actuals through Apr 30, 2023
EST are most current projections as of June 5, 2023
Net Position through Apr 30, 2023: $92MM
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATING ACTIVITY

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 682,367,000 523,996,000 657,984,000
Energy Operating Services 11,219,000 11,245,000 11,274,000 Total Energy Operating Expenses 693,586,000 535,241,000 669,258,000 Total Overhead Operating Expenses 39,299,000 27,426,000 21,793,000

NON-OPERATING ACTIVITY
Total Non-Operating Revenue 1,728,000 276,000 3,275,000 Total Non-Operating Expenses 27,650,000 30,990,000 23,893,000 NET NON-OPERATING ACTIVITY (25,922,000) (30,714,000) (20,618,000) TOTAL REVENUES 940,019,000 770,216,000 863,660,000
TOTAL EXPENSES 760,535,000 593,657,000 714,944,000
NET INCREASE(DECREASE) IN POSITION 179,484,000 176,559,000 148,716,000

RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 366,443,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Attachment Staff Report Item 17B
4 Draft Budget: Base Case Assumptions
Revenues
• Increase to customer value proposition by
o Bright Choice from 3% to 5% discount to PG&E
o R100 from $0.0075 to $0.0025 above PG&E
o Estimated revenue reduction of $23.2MM
• $50 bill credit applied to all CARE & FERA customers
inQ1/Q2, totaling an estimated $6.6MM in one
time bill savings
• Assumes current rates and PCIA are unchanged
through 2023
• Rates and PCIA for 2024 are non-stressed, or as
forecasted, energy rates from May ERRA filing
• 1.5% uncollectable rate for 2023, then 1.0% for
2024
• No recognition of GASB 62 revenue ($15,814,000)
• Non-operating revenue assumes 2.5% interest
earned on treasury backed cash balance accounts
Energy Costs
• Costs are derived from a blend of contracted and open positions for all energy, attributes, and RA
o Open prices are non-stressed, mean forecasted
• Carbon free energy (which can include either RE or CO2- free) is above recent board approved targets by 10% above EBCEs
o 2023: CF 66% --> 71% (FY 22/23 5% increase) --> 76%
o 2024: CF 71% --> 81%
o Adds between $3.6 and $21MM to costs
o Each one 1% increases costs between $720,000 and
$4MM
Other Costs
• Adding incremental staff of 15 FTE
• $2.6MM increase in Marketing for re-branding campaign • $2MM increase in G&A to account for increased staff
requirements
• Significant Program funding of $25.9MM
Attachment Staff Report Item 17B
5 Draft Budget: Carbon Free Procurement Options
Variation in the Renewable/Carbon Free targets
• Recommendation to increase the total carbon free target of the Bright Choice product by 10% for 2023 and 2024 above the annual targets set in 2022
o Current targets for both years are 71% retail load
• Staff is requesting flexibility to achieve the proposed increases by sourcing from either Renewable or carbon free/large hydro resources in light of a highly constrained and volatile market • Each increase of carbon free procurement of 5% has an expected cost impact of between $3.6-21MM depending on the product type
Calendar Year 2023 2024
Current Carbon Free Targets 71% 71%
Proposed Increases for FY 2024 5% 10%
Proposed Carbon Free Targets 76% 81%
Attachment Staff Report Item 17B
6 Draft Budget: On-Bill Credit Average Allocations
• Current annual average savings and premiums paid at the 3% discount for Bright Choice and the 0.75c premium on Renewable 100 products for customers are shown above
• Savings for each 1% discount with Bright Choice or decrease of 0.25c in premium for Renewable 100 is also shown o Total EBCE wide customer savings per 1% discount with Bright Choice is about $6.6MM o Total EBCE wide customer savings per 0.25c decrease in Renewable 100 premium is about $4.9MM • With both the discount and the On-Bill credit at the end of the year, on average most customers would experience actual savings over PG&E rates
• Total Customer Savings = Adjustment to Value Proposition + On-Bill Credits = $23.2MM + $14.8MM = $38MM Base methodology for the On-Bill Credit: Dividend = Individual annual kWh x (Total Surplus)/(Total annual kWh) Average for Each Account
Bright Choice Renewable 100 Bright Choice Renewable 100 Bright Choice Renewable 100 Current Avg Savings (Premium) to PG&E $20.68 ($34.01) $262.73 ($427.23) $41.50 ($86.74) Each 1% BC or 0.25c R100 change 6.58 10.89 83.25 136.11 13.17 27.68 5% BC and 0.25c R100 33.83 (12.24) 429.23 (155.02) 67.85 (31.38) On Bill Credit 9.94 9.94 128.36 128.36 21.62 21.62
Total Annual Savings (Premium) 43.77 (2.30) 557.59 (26.66) 89.47 (9.76) Residential C&I Total EBCE Wide
Attachment Staff Report Item 17B
7 Draft Budget: Historical Rate Trends
• The rates shown are inclusive of all fees, including PCIA, and EBCE’s value proposition to reflect what the customer pays on their bill (exclusive of T&D)
• These averages are by calendar year, and some years had more than one rate adjustment • Average rates by product and year show EBCE rates consistently lower than PG&E’s as per our value proposition • Rates have not recovered from large increases to rates in 2022 and 2023, due to increased energy costs • Proposed adjustment to value proposition helps rates recover faster for customers in both products o On average, 2024 rates are returned closer to 2022 rates for EBCE customers Calendar Year 2019 2020 2021 2022 2023 2024
PG&E 0.1067 0.1060 0.0949 0.1275 0.1407 0.1360
%Change/Yr -0.7% -10.4% 34.4% 10.3% -3.3%
EBCE 0.1051 0.1047 0.0940 0.1250 0.1350 0.1292
%Change/Yr -0.4% -10.3% 33.1% 8.0% -4.3%
Compared Average Rates for Bright Choice Customers by Year ($/kWh) Attachment Staff Report Item 17B
8 Draft Budget: Value Proposition Alternatives
• Bright Choice/RE100 customer value proposition is
generally correlated where 0.75% change in BC equates
to a 0.25c change in RE100 at current procurement cost
levels
• A decrease in customer savings of one increment - where BC would be priced at a 4% discount to PG&E and RE100
priced at a 0.50c premium to PG&E) – would increase
expected Net Income by $11.5m, while
maintaining current value proposition (3% discount and

0.75% RE100 premium) would increase expected net
income to $23.2m
1 increment Change 2 Increment Change
Bright Choice $6.6m $13.2m
RE 100 $5m $10m
$11.5m $23.2m
Options for Use of Funds if Discount Reduced
CO-2 Free
energy options
$11.5m ~2.5% increase in CO2-
free energy content
Local
Development
options
EBCE staff has limited capacity to increase LD
funding beyond current levels. At most $3m could
be allocated to extend existing work.
-$1m - $2m to TE incentives
-$1m for Resilience project development
Residential C&I Total
Each 1% Change in Bright Choice 3,027,000$ 3,607,000$ 6,634,000$ Each 0.25c Change in Renewable 100 1,684,000 3,260,000 4,944,000 Total 4,711,000 6,867,000 11,578,000
Customer Savings per Incremental Change in Product Rate Attachment Staff Report Item 17B
9 Draft Budget: Proposed Surplus Allocations
Net Position Estimated at $179.5MM*
Proposed Budget Surplus Waterfall Allocation:
1) Working Capital Needs: $50MM*
2) Reserve Account Funding: $100MM*
3) 50/50% split of any excess to:*
o Incremental Long-Term Renewable Energy/Clean Energy Storage Investments: ~$14.75MM o One-time On-Bill Credits to Customers: ~$14.75MM
*Assuming a budget surplus that is materially consistent with this forecast, staff would plan for an even allocation. Formal action would be brought forth to the board to formally adopt prior to, or in conjunction with, the presentation of the audit in October of 2024. This timing would allow for staff to have exact knowledge of available surplus.

Attachment Staff Report Item 17B
Risk Management—Market Risk
10 • Historically, market prices have averaged in the $30- 50/MWh range, but currently estimated near $80/MWh
• Historically, volatility has ranged from 10-20% on a
regular basis, but currently ranging 50-60%
• In recent months, prices have softened for the Draft
Budget year, but volatility remains high
• This market volatility creates risk on working
capital requirements and basis between hedge costs and
retail rates.
• EBCE has approximately 60-80% of its budget year energy portfolio hedged against market prices with the balance effectively hedged via the PCIA - i.e. increase in market prices is offset somewhat by decrease in PCIA in future years
• When prices decrease, PCIA increases, which reduces
operating headroom
• Although the fiscal years of 2020-2021 and 2021-2022 were positive with net position, calendar year 2021 was
operationally negative in net position for EBCE with margins being squeezed from low 2020 prices setting PCIA and with rising 2021 market prices
DLAP = Default Load Aggregation Point—the hub price where EBCE serves its customers Attachment Staff Report Item 17B
Risk Management—Additional Risks
11 • Uncollectables/Write-offs:
o EBCE increased uncollectables from 0.5% to 2.5% of revenues for COVID crisis in 2020-21 FY o For FY 2022-2023 Budget, this estimation is reduced to 2.0%, and 2023-24 Draft Budget reduced further to 1.5% and 1.0% to align with trending aging actuals
o Uncollectables are at the higher range than other CCA’s based on regional income demographics o To mitigate, pushing CARE/FERA enrollments, AMP, PIPP, and Connected Communities programs DAC-GT/CS-GT • Opt-Out Risk:
o No anticipated risk of increased opt-outs for established communities o New community enrollment opt-outs are estimated at 5%-10% of total accounts—current jurisdiction-wide rate is 4.9% o Changes to value proposition or change in product decisions may increase opt-outs but difficult to estimate. Many constituents have opted-up to Renewable 100 product, which carries a slight premium relative to PG&E rates • Financial Market & Economic Risk
o Recessionary risks may drive reductions in load or an increase in uncollectables - mitigated in part by limiting overhedging o Banking sector risk may impact cash, deposits, and credit availability – mitigated by cash collateral requirements on gov't deposits, FDIC insurance, and diversification of banking deposits • Wildfire Risk:
o EBCE does not own or maintain any transmission or distribution facilities. PSPS events cause decreased customer use during peak periods, this can reduce estimated revenues if a significant area of EBCE service territory is affected o 2019 wildfire PSPS events impacted nearly 46,000 customers, disrupting 6% of load for a full day o 2020 events impacted nearly 20,000 customers disrupting about 2% of load over 4 days Attachment Staff Report Item 17B
12 Draft Budget: Local Development Fund
• 2023-2024 Local Development Fund
allocation is set at $25.9MM
• Allocating budget for capital
intensive infrastructure
development projects
• Allocating EBCE capital to reduce
cost of ownership for building and
vehicle electrification
• Unspent Local Development
budget carries forward year to year Local Development Areas of Emphasis Budget Allocation Transportation Electrification $11.75M
Building Electrification $8.5M
Energy Efficiency No Direct EBCE Cost
Community Resilience/VPPs $4M
Community Grants $1.4M ($4.2M
allocated in FY'23)
Sponsorships/Memberships $250k

LOCAL DEVELOPMENT FUND
FY 2023-24 FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20
BEGINNING BALANCE 35,927,953 16,626,143 10,398,245 5,201,410 0

REVENUE & OTHER SOURCES
Transfer from Operating Fund 25,500,000 22,550,000 8,475,000 6,340,000 6,340,000 Grants/Interest - 1,200,405 335,460 395,000 219,673
Total Revenues & Other Sources 25,500,000 23,750,405 8,810,460 6,735,000 6,559,673

EXPENSES & OTHER USES
Actual Program Expenses - 3,235,594 2,582,563 1,538,165 1,358,263 Expected Remaing Expenses 61,427,953 1,213,000 - - -
Total Expenses & Other Uses 61,427,953 4,448,594 2,582,563 1,538,165 1,358,263 ENDING BALANCE - 35,927,953 16,626,143 10,398,245 5,201,410 Attachment Staff Report Item 17B
Transportation Electrification
13 • Transportation is the largest source of emissions of GHG and particulate matter from Light, Medium and Heavy-duty vehicles
• EBCE is developing publicly available charging infrastructure tailored to renters and low-income communities to ensure these residents can transition to EVs (currently developing the first 3 charging hubs)
• Goods movement is particularly important with Port impacts to communities and access through the territory and into the Central Valley
• EBCE will continue assisting Cities to electrify fleets; providing fleet electrification technical assistance and offering to develop and operate charging infrastructure for Cities with "Charging as a Service" product
• With more vehicle models becoming available EBCE will develop programs to facilitate the buying process and make EVs accessible across all customer income levels • Partner with local agencies and local business to increase access to eMobility solutions • Provide capital to reduce cost of ownership through credit enhancements across multiple vehicle classes Attachment Staff Report Item 17B
Transportation Electrification
14 • Publicly Available Fast Charging Hubs ($3.75M)
• Funds to support EBCEs efforts to build a network of public fast chargers across the communities we serve with an emphasis on siting these chargers close to high densities of multi-family housing where home charging is often not accessible. EBCE BOD approved $30M NTE over 10 years at 11/16/22 BOD meeting • Medium/Heavy duty project investment capital ($3M)
• Funds to support Medium/Heavy duty vehicle electrification projects in EBCE territory • EV adoption acceleration program with emphasis on access for low and moderate income consumers ($3M)
• Funds to support one or more projects to accelerate EV Adoption and enroll EV drivers in manage charging programs to manage new EV electricity load with an emphasis on low and moderate income consumers • EBCE Ride Electric Program ($2M)
• Funding for year 2 of EBCE e-bike Lending and Incentive Program Attachment Staff Report Item 17B
Building Electrification
15 • Electrification installation network ($2M)
• Develop an installation network of electrical contractors to deliver reasonably priced electrification upgrades to customers
• Partner with 10-20 contractors across the territory so that customers can obtain multiple competitively priced proposals for electrical upgrades in a timely manner
• EBCE incentive enables contractors to offer standard pricing for electrical service panel upgrades that facilitate full electrification
Electrification Workforce Training Program ($1.5M)
• Increase qualified workforce for electrification
• Provide apprenticeship stipends to enable on the job training for graduates of workforce training organizations • Partner with electricians in the EBCE network to hire apprentices Attachment Staff Report Item 17B
Health-e Communities
16 Budget Request: $5M for first year of $15M 3-year Program Program Summary:
- Replace 1000 – 2000+ gas stoves with induction ranges in households with children suffering from pulmonary disease (eg. asthma) and households with a newborn child with focus on low-income and disadvantaged communities
- EBCE to deliver and install induction cooktops, while partnering with health care research partner that can provide medical referrals and complete longitudinal health study Program Development Progress
EBCE has identified a Health Care Provider with research capabilities that we are working to secure - EBCE has secured a verbal agreement for $250k in funding to support health care partnership - EBCE has identified several non-profit partners who can manage the health-care partnership - EBCE is currently hiring a building electrification channel manager to develop EBCE’s installation partner network
Attachment Staff Report Item 17B
Resilience and VPPs
Budget Request, $2M to expand Community Resilience
and Virtual Power Plant management capabilities
• Phase I: Berkeley, Hayward, San Leandro, Fremont
– Contracting for 2.7 MW solar PV + 4.8 MWh storage
across 29 sites ranging from fire stations to senior
centers, resulting in $25M in projects
– Largest procurement of its kind to date
– Received $2M in federal funds
• Phase 2: Emeryville, Livermore, Oakland, Pleasanton
– Developing additional ~50 resilience projects with

7.5 MW solar PV & 5.5 MWh storage, resulting in
$40M+ in projects
• Phase 3: Albany, Piedmont...open for additional Cities • Pursuing $35M in Federal funding to expand Resilience to school districts and other public service agencies
– Federal funding will enable facility upgrades
and electrification
• All projects will be aggregated into Virtual Power Plant to reduce EBCE procurement needs
Fremont Fire Station Microgrid
Attachment Staff Report Item 17B
Resilience and VPPs – Resilience Hubs Technical
Assistance
EBCE proposes to enhance its Community Resilience and VPP management program by adding an additional $2M to fund technical assistance for community based organizations considering the development of microgrids and resilience hubs.

At this time, EBCE does not have the internal resources to directly support the inclusion of CBO sponsored projects in our community resilience program. But with significant local, state and federal available in the form of grants to support these projects, EBCE staff is able to provide technical assistance in the form of engineering and grant writing support.

EBCE staff proposes to allocate $2m over the next two years to provide CBOs with engineering reviews of potential host sites for solar and storage microgrids and grant writing support for CBOs seeking to apply for Resilience Hub grants.

EBCE will provide these funds in the form of direct, in-kind engineering and grant writing up to $15,000 per resilience hub site. Staff will develop a streamlined process for CBOs to bring forward projects to receive this technical assistance.

Attachment Staff Report Item 17B
Community Grant (update)
19 Background:
- EBCE BOD approved $4.2M in FY'23-24 budget for 3-year Community Grant Program ($1.4M/year)
- EBCE proposes to add and additional $1.4m from this FY to fund a fourth round of grants in 2026
- EBCE staff have developed a list of grant priorities to support EBCE Programs - EBCE staff plans to issue first grant opportunity to increase education and awareness of induction cooking to start Summer 2023
- Staff and CAC Chair are collaborating to host a public workshop on June 7 to gather community feedback to develop additional grant funding cycles - Proposed Grant Solicitation timing:
- Round 1 - August 2023 / Round 2 - January 2024 / Round 3 - January 2025 / Round 4 – January 2026 Attachment Staff Report Item 17B
20 Break Page
Attachment Staff Report Item 17B
21 Draft Budget: Carbon Free Procurement
Variation in the Renewable/Carbon Free targets
• April 2022, the Board approved the “Path to Zero by
2030” for the Bright Choice product shown in the table
to the left
o Carbon Free percentages reflect renewable energy
and large hydro energy
• June 2022, the Board approved 5% increases to the
carbon free targets for calendar years 2022 and 2023,
effectively increasing both renewable and carbon free
targets
• This year, staff is proposing an additional increase in carbon free procurement that would result in an
additional 5% increase in 2023 and 10% in 2024 targets
o 2023: Carbon Free 66% --> 71% (22/23) --> 76%
o 2024: Carbon Free 71% --> 81%
Attachment Staff Report Item 17B
22 Draft Budget: Operating Revenues
• Increase to value proposition
o Bright Choice from 3% to 5% discount to PG&E
o Renewable 100 from $0.0075 to $0.0025 above PG&E
o $50 bill credit to all CARE & FERA customers in July-Sept 2023, shown as Other Operations Revenue reduction
• Assumes current rates and PCIA are unchanged through 2023 • Rates and PCIA for 2024 are non-stressed, or as expected, energy rates from May ERRA filing • 1.5% uncollectable rate for rest of 2023 and 1.0% for 2024 • No recognition of GASB 62 revenue ($15,814,000)
• Current Year Other Operations Revenue is CARE & FERA on-bill credits plus damages received from counterparties
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 957,028,000 792,009,000 867,591,000
Uncollectables (12,095,000) (15,840,000) (17,352,000)
Other Operations Revenue (6,642,000) (6,229,000) 10,146,000 Total Operating Revenue 938,291,000 769,940,000 860,385,000 Attachment Staff Report Item 17B
23 Draft Budget: Overview of Expenses
• Expenses are divided into three overall cost
center categories:
• Energy Operations which includes all energy,
energy attributes, and ancillary related costs
and the services required to managing
energy and attributes, such as scheduling,
data management, and customer billing
o This category comprises more than
90% of EBCE’s total expenses
• Overhead Operations which includes all
personnel and staffing needs as well as work
function cost centers required to manage
the organization at large
• Non-Operating Expenses which are all
capital and capital transfer related costs
FY 2023-24
DRAFT BUDGET % Cost

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 682,367,000 89.7%
Energy Operating Services 11,219,000 1.5%
Total Energy Operating Expenses 693,586,000 91.2%
Overhead Operating Expenses
Personnel 21,911,000 2.9%
Marketing & Communications 5,303,000 0.7%
Legal, Policy, & Regulatory Affairs 3,509,000 0.5%
Other Professional Services 2,505,000 0.3%
General & Administrative 5,711,000 0.8%
Depreciation 360,000 0.0%
Total Overhead Operating Expenses 39,299,000 5.2%

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 0.2%
Local Development Funding 25,500,000 3.4%
Grant 0
Capital Expenditures 500,000 0.1%
Total Non-Operating Expenses 27,650,000 3.6%
TOTAL EXPENSES 760,535,000 100.0%
Attachment Staff Report Item 17B
24 Draft Budget: Energy Expenses
Energy Costs
• Costs are derived from a blend of contracted and
open positions for all energy, attributes, and RA
o Open prices are non-stressed, or as forecasted
o FY 23/24 overall price projections are about on
parr with FY 22/23 actuals on average
o Most materially significant increase for FY
23/24 is with RECs and capacity charges
• Carbon free energy is above recent board approved
targets by 5% for calendar 2023 and 10% for 2024
Bright Choice targets
o 2023: CF 66% --> 71% (22/23) --> 76%
o 2024: CF 71% --> 81%
o Adds up to $21MM costs
• Note: We are still in a period of historically high
energy pricing and significant uncertainty/volatility
o Forecasted market energy costs in 2023 and
2024 are approximately double the historical
10-year average and has persisted since 2021
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Energy Operating Expenses
Cost of Energy 682,367,000 523,996,000 657,984,000
Energy Operating Services 11,219,000 11,245,000 11,274,000 Total Energy Operating Expenses 693,586,000 535,241,000 669,258,000 Attachment Staff Report Item 17B
25 Draft Budget: Overhead Expenses
Material Overhead Items for FY 23-24:
• Personnel costs will be discussed more in-depth on the next slide
• $2.5MM increase in Marketing costs is specifically driven by re-branding campaign
o Also includes approx. $1MM of Programs related
marketing costs
• $1.0MM increase in Legal, Policy, & Regulatory affairs is due to a couple of factors
o Membership expansion (Stockton)
o Additional volume of consulting/vendor agreements
and power contracts
• Larger staffing demand, from Personnel costs, increases in Professional Services with HR/recruiting and additional project support
• Increase to G&A is also directly related to increase in staffing with software subscriptions, membership dues, equipment, office space, insurance, and the like
• Depreciation increases due to new building
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Overhead Operating Expenses
Personnel 21,911,000 15,711,000 13,131,000
Marketing & Communications 5,303,000 2,824,000 1,884,000 Legal, Policy, & Regulatory Affairs 3,509,000 2,411,000 1,661,000 Other Professional Services 2,505,000 2,293,000 1,232,000 General & Administrative 5,711,000 4,007,000 3,744,000
Depreciation 360,000 180,000 141,000
Total Overhead Operating Expenses 39,299,000 27,426,000 21,793,000 Attachment Staff Report Item 17B
26 Draft Budget: Overhead Expenses—Personnel
• FY 2021-22 Budget was initially approved at 43 FTE and expanded mid-year to 49 o 2.5% COLA and up to 5% merit-based/promotional compensation allotted o Currently at 45 FTE and interviewing for an additional 4 roles • FY 2022-23 Budget was increased to 68 FTE to accommodate additional work requirements in all areas.

Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 5 Marketing, 4 Local Programs, 3 Operations, 3 Technology, 2 Power Resources, 2 Legal • FY 2023-24 Budget seeks an additional 15 FTE to accommodate additional work requirements in all areas. Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 3 Marketing, 2 Local Programs, 2 Operations, 2 Technology, 3 Power Resources, 3 Legal FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

PERSONNEL
Salaries & Wages 16,587,000 11,598,000 9,784,000
Retirement 2,058,000 1,544,000 1,382,000
Health Care/Benefits 2,893,000 2,292,000 938,000
Payroll Expenses 373,000 277,000 167,000
Total 21,911,000 15,711,000 12,271,000
Attachment Staff Report Item 17B
28 Draft Budget: Organization Chart
Attachment Staff Report Item 17B
29 Draft Budget: Open Position Count
Team
# of New
Roles
Data & Tech 2
MAS 3
Operations, Admin &
Finance 2 +1
Power Resources 3
Programs 3 +1
Public Policy 2
Total New Roles: 15 + 2 (17)
● # of New Roles to budget for next FY: 15
○ Add 2 carry-over roles from FY 22-23, so 17 Total
Attachment Staff Report Item 17B
30 Draft Budget: Personnel Demographics
• Open position average costs are below current staff averages, as position band for open positions is lower than average staff
• Loading rate for new positions is expected to be complete by the end of financial Q3 (March 31, 2024)
• The average position band being hired is under the manager level Quarter Positions Filled
Q1 9
Q2 3
Q3 5
Q4 0
Expected Loading Rate for Open Positions
Current Open
Salary 157,984.45 142,368.59
Merrit 22,117.82 19,931.60
Retirement 23,887.25 21,526.13
Health Care 24,000.00 24,000.00
PTO 9,114.49 8,213.57
Life Insurance 789.92 711.84
Other 12,553.33 12,553.33
Payroll Tax 4,096.98 3,735.41
Total 254,544.25 233,040.48
*C-list is not included
Average Personnel Costs by Category*
Open Count Title
1 Analyst
2 Associate
6 Sr. Associate
1 Manager
2 Sr. Manager
4 Director
1 Sr. Director
Open Position Banding
Attachment Staff Report Item 17B
31 Draft Budget: New Positions
Team Position Title (Draft) Position Level Desired Start Comp Band $ Low (Base) $ High (Base) $ Mid (Base) Data & Tech IT HelpDesk Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Data & Tech Junior Data Engineer Analyst Q3 (Jan - Mar 2024) 3 $89,597 $117,596 $103,596 MAS Graphic Designer & Content Developer Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Copywriter Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Manager, Customer Experience Manager/Principal Q3 (Jan - Mar 2024) 6 $151,319 $167,170 $159,245 Operations, Admin &
Finance Sr. Mgr / Mgr, Structured Finance (TBD) Sr Manager/Sr Principal Q2 (Oct - Dec 2023) 7 $167,171 $190,393 $178,782 Operations, Admin &
Finance Finance Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Operations, Admin &
Finance
Coordinator, Ops & Admin
(Carry-over from last yr) Coordinator Q1 (Jul - Sep 2023) 2 $69,174 $89,596 $79,385 Power Resources Contract Manager Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources "CAISO Day Ahead Manager" Level Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources Settlements Manager Manager/Principal Q3 (Jan - Mar 2024) 7 $167,171 $190,393 $178,782 Programs Programs Director Role Director Q1 (Jul - Sep 2023) 8 $190,394 $219,052 $204,723 Programs Program Lead / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Solar & Storage Programs / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Project Manager (Carry-over from last yr) Sr Associate Q2 (Oct - Dec 2023) 5 $133,401 $151,318 $142,360 Public Policy Contract Management Manager/Principal Q1 (Jul - Sep 2023) 6 $151,319 $167,170 $159,245 Public Policy Regulatory Analyst Analyst Q2 (Oct - Dec 2023) 3 $89,597 $117,596 $103,596 Attachment Staff Report Item 17B
32 Draft Budget: Overhead Expenses—Marketing &
Account Services
Next Year Material Items:
• Majority of increase is driven by $2.6MM allocation for our first major foray into customer facing program campaigns where we are trying to acquire customers to participate and/or use our equipment (e.g. e-Bike, DCFC stations, induction cooking and EV adoption). Additionally, EBCE’s rebranding campaign will carry incremental costs beyond past year marketing spends that will pull from this allocation Included in cost items is approximately $1.0MM dedicated to Programs related marketing costs
• Required Mailings: Joint Rate Mailer w/ PG&E, Power Content Label, New Account Noticing
• Advertising: Active community presence activities, sponsorships, local events, increase due to Stockton and rebranding campaigns • Promotional Items: Give away items
• Communications: Public relations, media, newsletters, consultants, minor software needs--Website development from rebranding is biggest cost item at $1MM
Current Year Material Items:

Marketing has lower cost with advertising and
communications consultant due to shifting in
Programs related needs with Resilient Home and
BlocPower campaigns
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

MARKETING
Required Mailings 282,000 520,000 483,000
Advertising 2,044,000 986,000 572,000
Promotional Items 123,000 50,000 38,000
Communications 2,854,000 1,268,000 790,000
Total 5,303,000 2,824,000 1,883,000
Attachment Staff Report Item 17B
33 Draft Budget: Overhead Expenses—Legal, Policy, &
Regulatory Affairs
Current year spending was less than budgeted this year due to a delay in expected litigation expenses and unused contingency set aside
Next Year:
• Legal Consultants: Outside general counsel for procurement, analysis, and general operations.

Increase is driven by:
o Multiple pending and on-going litigations expenses
o 2023 Large Clean Energy RFO
o Implementation of numerous local development initiatives o Additional volume of consulting/vendor agreements and power contracts • Legislative Consultants: Retainer for legislative advocacy. For this coming fiscal year, EBCE has added additional resources focused on federal affairs to support both funding and policy initiatives. • Other Consultants: Policy related advising and economic consulting FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

LEGAL AND POLICY
Legal Consultants 3,117,000 2,135,000 1,445,000
Legislative Consultants 237,000 177,000 180,000
Other Consultants 155,000 147,000 36,000
Total 3,509,000 2,459,000 1,661,000
Attachment Staff Report Item 17B
34 Draft Budget: Overhead Expenses—Other Professional
Services
Next Year Material Items:
• Operations: Accounting and auditing for financial
compliance, general finance, and addition of new
project with treasury management consulting
• Human Resources Consulting: Support for additional
HR demand for increased staffing recruitment,
professional development, and training
• Tech Consulting: Technical network assistance
• Power Resources: Technical consulting for Power
Resources, operational compliance support and other
various tasks
Current Year Material Items:
• HR consulting was approximated as first year need
for consulting. Hiring of HR lead has led to reduced
costs with active management
• Technology Consulting is lower than expected with
reevaluation of timeline for cost-of-service
implementation
• Power Resources consulting lower than expected
with IRP below budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATIONS CONSULTANTS
Operations 881,000 315,000 444,000
Human Resources Consulting 634,000 1,000,000 327,000
Tech Consulting 360,000 325,000 188,000
Power Resources 630,000 605,000 273,000
Total 2,505,000 2,245,000 1,232,000
Attachment Staff Report Item 17B
35 Draft Budget: Overhead Expenses—General & Administrative Next Year Material Items:
• Operational Expenses: Increased staff costs related to insurance, service fees, supplies, membership dues,
operational services, building maintenance, and other
relevant G&A
• Software, Subscriptions, SaaS: Increase covers
additional software needs for Finance, Power
Resource, and Technology operations, as well as
essential subscriptions for ongoing operations with
expanded staff
• Rent & Utilities: Increases with office space needs
due to expanded staff
• Conferences & Professional Development: Trainings,
conferences, and related expenses
• Board & Director Fees: Monthly stipends and
transportation reimbursements for board members
Current Year Material Items:
• Operational Expenses were higher than expected primarily due to inflationary increases in insurance costs and industry memberships dues
• Software costs were lower with delay in implementing
customer portal development and battery optimization as well as data storage was under budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

GENERAL OPERATIONS
Operational Expenses 1,523,000 1,039,000 1,387,000
Software, Subscriptions, SaaS 2,676,000 2,345,000 1,506,000 Small Equipment 510,000 210,000 101,000
Rent & Utilties 764,000 345,000 569,000
Conferences & Prof. Development 160,000 130,000 127,000 Board & Director Fees 78,000 50,000 53,000
Total 5,711,000 4,119,000 3,743,000
Attachment Staff Report Item 17B
36 Draft Budget: Non-Operating Activity
• Non-Operational Revenue: Interest earned on Treasury backed cash account balances (estimated at 2.5%) and BlocPower loan (5.5% on $500k)
• Grants: Generally only recognized against qualifying expenses as incurred, thus not projected
• Other Non-Operational Revenue: Rent from AT&T tower on new building
• Borrowing Interest Expenses: Expected costs associated with expanded credit facility
• Local Development Funding: Capital transfer to Local
Development Fund
• Capital Expenditures: Moving and new equipment/furniture related to new office space
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,837,000
Grants 0 0 1,272,000
Other Non-Operating Revenue 48,000 15,000 166,000
Total Non-Operating Revenue 1,728,000 276,000 3,275,000

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 570,000
Local Development Funding 25,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 773,000
Total Non-Operating Expenses 27,650,000 30,990,000 23,893,000 NET NON-OPERATING ACTIVITY (25,922,000) (30,714,000) (20,618,000) Attachment Staff Report Item 17B
Thank You!
@PoweredbyEBCE
[email protected]
37 Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
Attachment Staff Report Item 17B
Public Comment Period: May 18 - June 9, 2023
Overview of Public Process and
Summary of Comments
As part of East Bay Community Energy’s (EBCE) rate setting process, staff hosted an open public comment period regarding our proposed value proposition changes for fiscal year 2023 - 2024. Staff opened this session with the email shown in Image 1, below.

Image 1: Introduction and webinar invitation email, sent on May 18, 2023 Attachment Staff Report Item 17C
In addition to the email to EBCE’s subscribers, staff advertised the webinar and public comment period via Facebook, Instagram, NextDoor, and Twitter. Sharing statistics are in Table 1, in the section below.

After the webinars, the recordings were added to EBCE’s rates website at https://ebce.org/rates/.

Webinar and Public Comment Marketing and
Communications
Date Source Content # of Views or Opens
5/18/2023 Email - 3,483 delivered
- 3,016 total opens
- 1,790 unique opens
5/18/2023 Facebook 31
5/18/2023 Twitter 58
5/18/2023 Instagram 59
Attachment Staff Report Item 17C
5/18/2023 LinkedIn 301
5/23/2023 NextDoor 11,212
5/24/2023 Facebook 25
5/24/2023 Twitter 84
5/24/2023 Instagram 43
5/25/2023 Zoom Webinar Registred: 6 Attended: 2
Public Comment: 0
6/03/2023 Zoom Webinar Registered: 5 Attended: 1
Public Comment: 0
6/06/2023 Zoom Webinar Registered: 8 Attended: 3
Public Comment: 2
6/09/2023 Youtube Video of
Webinar #2
EBCE 2023-2024
Proposed Value
Proposition Webinar
(6/3/2023)
Views: 25
Attachment Staff Report Item 17C
6/09/2023 Youtube Video of
Webinar #3
EBCE 2023-2024
Proposed Value
Proposition Webinar
(6/6/2023)
Views: 6
Table 1: Event advertising and customer participation
Summary Overview of Comments
Two verbal comments and one written comment were received, which are summarized below.

Comments and questions were received from the following individuals and/or organizations:

Verbal Comments Written Comments
Jim Lutz: community member, Oakland Jim Lutz: community member, Oakland Charles Mee: adjacent community member,
Danville
Stephen Taylor: community member,
Berkeley
Summary of Comments:
● Jim Lutz (oral and written): community member (also member of EBCE CAC), Oakland, CA
Lutz wanted to express his dissatisfaction with the length and complexity of PG&E bills.

He would like the bills to appear shorter, with fewer line items. Lutz compared EBCE and PG&E to Alameda Municipal Power’s less complex energy bills. They would like EBCE to unlink our rates from PG&E to offer lower rates for customers in transitioning to a cost of service model.
● Charles Mee (oral): adjacent community member, Danville, CA Mee inquired regarding renewable percentage of Bright Choice, and wanted to express support for the energy movement of CCAs generally. Mr. Mee was informed that the CCA in their service territory is MCE.
● Stephen Taylor (written): community member, Berkeley
Taylor commented in support of the proposed 2023-2024 value proposition and provided general support for lowering rates or discounts in relation to PG&E’s generation rates, maintaining a 3% discount or greater.

Attachment Staff Report Item 17C
Verbal Public Comments
Public comments were gathered at two webinars. Links to the staff presentation and the comments can be found on our website at ebce.org/rates and here:
● Thursday, May 25, 2023 at 6:00 pm
● Sunday, June 3, 2023 at 9:00 pm
● Tuesday, June 6, 2023 at 12:00 pm
5/25/2022 Webinar: Public Comments
● No Public Comments Made
6/3/2022 Webinar: Public Comments
● No Public Comments Made
6/6/2022 Webinar: Public Comments
● Charles Mee: adjacent community member, Danville
Transcript: I am a new resident of Danville in this area so that is why I tried to learn this a long time ago and tried to catch up with this movement, which is really meaningful.

And also because maybe we are new we kind of want to get more educated about the local CCA program to see how we can personally benefit from this program, secondly how can we help to improve the program.
● Jim Lutz: community member (also member of EBCE CAC), Oakland Transcript: Thank you for doing this I was curious about I want and wanted to compare my understanding to understand the utility bill so I am trying to reverse engineer he PG&E bill and oh my goodness it's complicated there's 27 line items on it just the electricity not counting the gas and I wanted to compare it to a friend of mine in Alameda.

In Alameda Municipal Power and just to see how the rates compare, because I think it’s, I’m not sure we should be comparing PG&E as our value Proposition. So the PG&E bill was 6 pages long so one page of that was the gas so it's five pages about electricity.

The Alameda Municipal Power, AMP as they call it I think that’s cute, they were two pages and there were four line items. That's how the charges broke down and on the PG&E there were 27 line items so it's very very complicated to decode a PG&E bill and try to see what I’m saving from the bill. So, but just as a comparison to the AMP the Alameda one there's an energy charge and a customer charge at the sort of highest level there's a PG&E electric delivery charges page and an EBCE electric generation charges page. And for my bill it turned out the charges, the generation charges, which Attachment Staff Report Item 17C
I’m assuming are equivalent charges on the Alameda bill - on my bill on the time of use and the Renewable 100 but the average cents per kilowatt-hour for my generation charges was 13.8 and for the Alameda it was 11.7 cents per kilowatt-hour so the Alameda ones are significantly lower and that suggests that to me that we shouldn't be tieing to PG&E, we should be providing rates that make sense to EBCE and keep them lower as is fiscally prudent. That's it, thank you.

Written Public Comments
Full Written Comments
● Jim Lutz: community member (also member of EBCE CAC), Oakland, CA Submitted June 9, 2023
Dear EBCE Board,
I am submitting this comment in response to the EBCE 2023-2024 Proposed Value Proposition Webinar I attended on June 6. The rate changes proposed by staff were to increase the Bright Choice discount relative to PG&E rates from 3% to 5% and to reduce the Renewable 100 premium relative to PG&E rates from ¾% to ¼%.

Since EBCE began, its rates have always been established relative to PG&E’s rates for comparable products. While this may have been appropriate for a newly established community energy agency, it is no longer necessary. I believe this practice is now leading EBCE to charge its customers more than it should.

A more fiscally responsible method of setting rates would be to estimate operating costs, including appropriate market volatility risks and maintaining prudent reserves, and then divide those costs across the total projected energy sales, while preserving the current incremental rate differences between the various EBCE products (Bright Choice and Renewable 100) and rate classes.

EBCE states that, as a Renewable 100 customer, I’m paying only ¾ percent more per kWh today than I would be paying if I were a PG&E customer.

While I believe this to be true, there is no way I can confirm it by examining my own PG&E bill.

To get a rough estimate of the reasonableness of EBCE electric generation charges, I compared my November 2022 PG&E bill with the November bill of a friend of mine who lives in Alameda. My EBCE Attachment Staff Report Item 17C
generation-only charges divided by my kWh usage for the month was 13.81 cents per kWh. The energy charges from the Alameda Municipal Power (AMP) bill for the same month was 11.72 cents per kWh. For basically the same rate class, EBCE generation charges were 17.8% higher than AMP energy charges. While I do not know what EBCE is paying to procure electricity, to me this dramatic difference in generation charges suggests significant opportunities for potential rate reductions for EBCE customers if our rates were calculated independently and not tied to PG&E’s.

I’m asking the Board to consider directing staff to evaluate other ways of setting rates for customers, given EBCE’s successful operations so far.

Sincerely, your loyal customer,
Jim Lutz
PS: I am a member of the Community Advisory Committee, but I am submitting this comment on behalf of myself.

PPS: My original email to [email protected] was returned by google mail with a message the group I was trying to contact (publiccomment) may not exist or I didn't have permission to post messages to the group. ● Stephen Taylor: community member, Berkeley
Submitted June 5, 2023; Resubmitted June 12, 2023 (due to technical issues related to the email address)
Dear EBCE:

In response to your request for comment on your proposed new rate plan, please rest assured that I support lowering your rates relative to PG&E, to create a 3% discount or greater.

Sincerely,
Stephen A. Taylor
Berkeley, CA
Attachments

1. PDF of Presentation made during webinars
Attachment Staff Report Item 17C

2. PDF of Public Comments Summary Report Presentation to the BOD Attachment Staff Report Item 17C
2023-2024 EBCE
Value Proposition:

Public Comment
Attachment Staff Report Item 17D
Public Meeting Reminders
● Thank you for participating in our public meeting
● The video and audio from this meeting will be posted on our website ● We will provide a brief introduction to the proposed policy and then allow for your comments
○ Everyone will be muted until the public comment period ● Please be prepared to provide:
○ Your name
○ Organization, if applicable
○ City of residence or business location
○ Your comment
2 Attachment Staff Report Item 17D
What is EBCE?
East Bay Community Energy (EBCE)
is our local power supplier
committed to providing Alameda
County and the city of Tracy with
more renewable energy at lower
rates. EBCE reinvests earnings back
into the community to create local
jobs, administer customer
programs, and catalyze sustainable
development.
3 Attachment Staff Report Item 17D
How it Works

PG&E DELIVERS THE POWER
EBCE’s power is delivered to customers
by PG&E. Customers
pay PG&E for power delivery
as they always have.

YOU GET THE POWER

AND ALL THE BENEFITS
You benefit from cleaner energy,
low rates, local governance,
and innovative programs.

EBCE BUYS CLEAN POWER
EBCE buys from, and is building, clean
power plants. EBCE sells the energy to
customers at low rates.
4 Attachment Staff Report Item 17D
Definitions
5 Attachment Staff Report Item 17D
EBCE Service Plan Choices Today
RENEWABLE 100
100% California solar & wind
energy at $0.0075 (¾) cent per kilowatt-hour
above PG&E rates

BRIGHT CHOICE
Rates 3% below PG&E with a goal to be
carbon-free by 2030
6 Attachment Staff Report Item 17D
Default Service
Jurisdiction Commercial Residential CARE/FERA/
Medical Baseline
Albany, Berkeley, Dublin,
Emeryville, Hayward, Pleasanton,
San Leandro
Renewable 100 Renewable 100 Bright Choice
Piedmont Bright Choice Renewable 100 Bright Choice
Livermore, Newark, Oakland,
Tracy, Union City, and County of
Alameda
Bright Choice Bright Choice Bright Choice
7 Attachment Staff Report Item 17D
Additional Terms
● Rates – what EBCE charges customers for electricity,
currently updated when PG&E changes their
generation rates or fees
● (Rate) Value proposition – the cost comparison to
PG&E rates based on EBCE product
○ EBCE brings additional value to our community. This is only about the direct financial value to our customers.

EBCE has saved Bright Choice customers
over $37 million since 2018
8 Attachment Staff Report Item 17D
2023-2024
Recommendations
9 Attachment Staff Report Item 17D
2023-2024 Forecast
● Energy prices are high this year
● PG&E raised their generation rates
○ EBCE sets our rates based on PG&E rates - today offering a 3% discount compared to PG&E
● EBCE’s rates to procure power have also increased, but not as much as PG&E’s rates
10 Attachment Staff Report Item 17D
EBCE Staff Recommendation
Value proposition update:
● Increase the Bright Choice discount from 3% to 5% savings to PG&E
● Decrease the Renewable 100 premium from $0.0075 (¾ of a penny) to $0.0025 (¼ of a penny) above PG&E
● $50 bill credit to all CARE & FERA customers
Potential for an annual on-bill credit to customers
depending on market conditions. Credit would be
applied during the subsequent fiscal year.
11 Attachment Staff Report Item 17D
Residential Bill Estimates
Customer Type: Residential 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Residential Bright Choice
Electric Bill
$129.12 $128.15
Monthly Savings to PG&E $1.45 $2.42
Renewable 100 Premium $0.0075 per kWh (¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Residential Renewable
100 Electric Bill
$134.04 $132.21
Monthly Renewable 100 Premium $2.74 $0.91
Average residential customer uses 390 kWh per month 12
Attachment Staff Report Item 17D
Small Commercial Bill Estimates
Customer Type: Small Commercial 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Bright Choice Electric Bill $479.78 $476.11
Monthly Savings to PG&E $5.50 $9.17
Renewable 100 Premium $0.0075 per kWh (¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Renewable 100 Electric
Bill
$498.53 $491.53
Monthly Renewable 100 Premium $10.50 $3.50
Average Small Commercial (B1) customer uses 1,800 kWh per month 13 Attachment Staff Report Item 17D
Large Commercial Bill Estimates
Customer Type: Large Commercial 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Bright Choice Electric Bill $61,963.27 $61,359.87 Monthly Savings to PG&E $905.09 $1,508.49
Renewable 100 Premium $0.0075 per kWh(¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Renewable 100 Electric
Bill
$65,103.37 $63,901.00
Monthly Renewable 100 Premium $1,803.55 $601.18
Average Large Commercial (B19) customer uses 162,700 kWh per month and has a demand of 487 kW 14
Attachment Staff Report Item 17D
East Bay Community Energy Timeline
2019
Value Proposition:

No Change
2020
Value Proposition:

Bright Choice Discount: 1%
Brilliant 100: At Parity
Renewable 100 Premium: $0.01
2021
EBCE began service:

Tracy, Pleasanton, & Newark
Value Proposition:

No Change
2022
Brilliant 100 Sunset
Value Proposition:

Bright Choice Discount: 3%
Renewable 100 Premium: $0.0075
2023
Proposed Value Proposition:

Bright Choice Discount: 5%
Renewable 100 Premium: $0.0025
2025
Planned - EBCE
begins Service:

Stockton
2018
EBCE Service Started:

Commercial: June
Residential: November
Value Proposition:

Bright Choice Discount: 1.5%
Brilliant 100: At Parity
Renewable 100 Premium: $0.01
15 Attachment Staff Report Item 17D
Public Comment
Period
16 Attachment Staff Report Item 17D
How to Participate
● Click on the Q&A bubble
● Enter your name, city, and organization into the text box ○ Note that everyone on the call will see what you type into the chat box ● We will call on each speaker in the order we received the chat, we’ll then disable the mute feature for each speaker
● Please be conscientious of the time. Every speaker will be allowed three minutes.
● Note that this webinar is being recorded and will be posted to our website
17 Attachment Staff Report Item 17D
Thank You for Participating
● EBCE staff’s next steps:
○ Post this webinar, including the audio recording of your comments, on our website at ebce.org/rates
○ Summarize all public comments in the staff report to Board ○ Present summary and value proposition recommendation at Board of Directors meeting on June 21 as part of the next fiscal year’s budget ● Additional comment opportunities:
○ Written comments may be emailed to [email protected] ● All comments are due by Friday, June 9, 2023 at 8 AM
18 Attachment Staff Report Item 17D
Comments
Welcome at:

[email protected]
19 Attachment Staff Report Item 17D
Public Comments
Summary Report
June 21, 2023
Attachment Staff Report Item 17E
2023 Process
Webinars Written Comments
Thursday, May 25, 2023, at 6pm
● 6 registered, 2 Attended
● 0 Public Comments
Saturday, June 3, 2023, at 9:00am
● 5 registered, 1 Attended
● 0 Public Comments
Tuesday, May 31, 2023, at 12pm
● 8 registered, 3 attendees
● 2 Public Comments
Opened on May 18
Closed at 8am on Friday, June 9
● 2 written comments received
Attachment Staff Report Item 17E
Respondent Demographics
City of Residence/Business Written Verbal
Berkeley 1
Oakland 1 1
Danville 1
TOTAL 2 2
Unique respondents = 3
Attachment Staff Report Item 17E
Outreach and Interactions
Date Source # of Views or Opens
5/18/2023 Email 3,016 total opens
1,790 unique opens
5/18/2023 Facebook 31
5/18/2023 Twitter 58
5/18/2023 Instagram 59
5/18/2023 LinkedIn 301
5/23/2023 NextDoor 11,212
5/24/2023 Facebook 25
5/24/2023 Twitter 84
5/24/2023 Instagram 43
Attachment Staff Report Item 17E
Summary of Comments
Comments Occurrence
Cost:
● Support for 2023-2024 Value Proposition
● De-pegging EBCE’s generation rates from PG&E for a Cost-of-Service Generation Rate Model 1 1
Billing:
● Reduced length and Complexity of PG&E bills 1
Community Choice Aggregation (CCA):
● General Support for Community Choice Aggregation 1
Attachment Staff Report Item 17E
Staff Report Item 18
Staff Report Item 18
TO: East Bay Community Energy Board of Directors
FROM: Howard Chang, Chief Operating Officer
SUBJECT: Prepay Overview and Approval of Counsel, Financial Advisor, and Rating Agency (Action Item)
DATE: June 21, 2023
________________________________________________________________________ Recommendation
Adopt a Resolution authorizing the CEO or COO to negotiate and execute Agreements with the following firms for legal representation, financial advisory services, and rating agency services on EBCE’s third energy prepayment transaction. The expected total costs are $850,000 and we are requesting authorization for up to $1,000,000 for the four Agreements, which includes an additional $150,000 for contingency that could be used to increase the cost(s) for one or more of the Agreements above the amounts listed below.

A. Orrick, Herrington & Sutcliffe – Bond Counsel and Tax Counsel for a total amount of $250,000
B. Chapman & Cutler LLP – Disclosure Counsel, Issuer’s Counsel, and to prepare the Official Statement for a total amount of $175,000
o PFM Financial Advisors LLC & PFM Swap Advisors LLC – Financial Advisor for a total amount of $150,000
C. Moody’s Investor Service Inc – Credit rating of the prepay bond transaction for a total amount of $275,000
Background and Discussion
EBCE is preparing to execute a third energy prepay transaction. EBCE has a sizeable energy procurement portfolio needed to serve our load and expects to execute multiple prepay transactions over the next several years to realize procurement savings by utilizing its tax-exempt status. Staff is seeking to get enabled with the set of legal counsel, advisors, and other counterparties to replicate the prior transactions as efficiently as possible, while also continuing to make improvements upon the structure. EBCE plans to have documentation prepared in the June/July timeframe and seek board approval to move forward and go to market soon after. Depending on market conditions, EBCE could close on a transaction in the July and August timeframe.

Previous Energy Prepay Transactions:

Staff Report Item 18
EBCE executed two energy prepay transactions in 2021 and 2022, issuing through CA Community Choice Financing Authority (CCCFA), the JPA in which EBCE is a member. The annual savings from these first two energy prepay transactions totals nearly $7 Million at the outset.

EBCE and Silicon Valley Clean Energy (SVCE) jointly executed the first energy prepay transaction by a CCA on September 23, 2021, with a notional size of $1.48BN. For this first transaction, EBCE and SVCE jointly performed due diligence and negotiated the initial transaction over a 1.5yr period and issued a number of solicitations to select a number of counterparties and advisors. Included was a solicitation in November 2019 to identify potential Prepay Suppliers, through which Morgan Stanley (MS) was selected. MS is one of a small number of large financial institutions that is experienced in executing on the bond underwriting and prepay structuring aspects of this transaction. Additionally, the CCAs jointly issued a solicitation in June 2020, for the counsel roles, through which Orrick, Herrington & Sutcliffe and Chapman & Cutler LLP were selected. Both firms have significant experience representing parties on prepay transactions since the market inception in the 1990s, and both firms are industry leaders in serving the roles for which they’ve been selected. The CCAs also jointly issued a solicitation in September 2020, to identify municipal financial advisors. Given the niche market for prepayments, there are very few firms who provide this type of advisory service and experience. EBCE and SVCE reviewed and scored the respondents, ultimately selecting PFM Financial Advisors, LLC & PFM Swap Advisors LLC (PFM). Moody’s Investor Service Inc. was selected due to their unique experience in rating prepayment type transactions and alternative rating agencies are not as suitable to complete such work.

Due to the nature of the repeat work of these transactions, EBCE has been successful in reducing the costs of working with these various parties, saving over $150,000 compared to initial contract costs. Additionally, the execution and transaction closing process has seen considerable efficiencies.

Prepay Parties:

The prepay transaction requires the selection and involvement of multiple parties. Names and functions are as follows:

Prepay Buyer: East Bay Community Energy
• Role: Provide energy contracts to flow through prepay Prepay Seller: Morgan Stanley
• Role: Structure transaction and pay contract price to PPA provider • Note: No legal obligation or liabilities are being entered into currently; approval of counsel allows EBCE to negotiate documents with Morgan Stanley for which staff will later return to the Board for approval of the official prepay transaction and associated bond issuance.

Municipal Advisor: PFM
• Role: Advise Prepay Buyer in negotiations; required by Municipal Securities Rulemaking Board (MSRB)
Bond Counsel: Orrick, Herrington & Sutcliffe
• Role: Represent bondholders
Tax Counsel: Orrick, Herrington & Sutcliffe
• Role: Provide tax opinion on transaction
Issuer’s Counsel (also known as Prepay Counsel or Prepaid Counsel): Chapman & Cutler LLP • Role: Represent issuer’s interests, supporting drafting and negotiating terms of prepay agreement and associated energy supply agreements
Staff Report Item 18
Disclosure Counsel: Chapman & Cutler LLP
• Role: Prepare Official Statement / Prospectus
Bond Issuer: CCCFA
• Role: Issue municipal bonds for prepay
Timeline:

With this approval, staff will begin prepay structuring and document negotiations with Morgan Stanley. Draft documents should be prepared for a deal execution in the June/July timeframe. Staff anticipates bringing forward the prepay deal structure for approval in July 2023.

Prepay Structure Overview:

An energy prepayment – or ‘prepay’ – is a long-term financial transaction available to municipal utilities and tax-exempt entities such as CCAs that enables a meaningful power procurement cost savings opportunity. Utilizing the municipal bond market, a tax-exempt Load Serving Entity (LSE, also called “Prepay Buyer”) and a taxable financial counterparty (bank, called “Prepay Supplier") enter into a 30-year agreement through which the LSE assigns existing power supply contracts to the Prepay Supplier. The Prepay Supplier pays the contract price to the PPA provider, while the LSE pays the Prepay Supplier at a discounted rate. The discounted rate is agreed upon in the prepay documents for the initial term of the bond and is based in part on the spread between the taxable and tax-exempt bond interest rates. The market availability of this interest rate spread is critical to the savings opportunity available to an LSE through a prepay. At future bond repricing periods, this discount rate will be reset, with a negotiated minimum discount rate.

Tax-exempt bonds are issued by a third-party conduit to raise funds for the prepay transaction, which flow to the Prepay Supplier. The LSE does a limited assignment of the PPA to the Prepay Supplier. The LSE is required to continue to perform under the contract, while maintaining rights to the electricity and attributes under the PPA. The Prepay Supplier utilizes the bond funds and provides a discount on the PPA to the LSE based on the spread between the taxable and tax-exempt rates. The discount is estimated at 8-12% but is subject to change based on market conditions.

The total combined present notional value of the assigned contracts flowing through the prepay over the 30 years is anticipated to be in the range of $500MM-1BN; these contracts can be long-term renewables PPAs or short-term commodity supply contracts. While the contracts are assigned to the Prepay Supplier, the LSE continues to ultimately take and pay for all the energy and attributes delivered through the contract; all other terms of the PPA remain unchanged. If the prepay program terminates early for any reason – either the Prepay Supplier or the LSE fail to perform – the LSE forgoes future savings and the assigned PPA is put back completely to the LSE.

Two key features of the municipal bonds utilized in a prepay greatly reduce risk to the LSE.

First, the bonds are non-recourse to the LSE, meaning they are neither secured nor guaranteed by the LSE and EBCE will at no point be responsible for repaying the bonds.

Secondly, prepays are off-balance sheet for the LSE as the bonds are issued by a third-party conduit.

Staff Report Item 18
Ultimately, prepays are employed to save ratepayers money while maintaining both (a) the economics for the PPA provider and (b) the terms of the energy supply contract. They have been used for natural gas transactions in the US since the early 1990s, with over 90 transactions completed nationwide ($50+ Billion) and 15 transactions completed in California.

The same tax law1 and similar transaction structure that enables the natural gas prepays enables the program for electricity, and specifically renewables contracts, creating an opportunity for CCAs to provide renewable energy at a lower cost than the IOU competition.

Financial Impacts
The financial impacts of this item pertain only to the counsel, financial advisor, and Moody’s fees outlined below. These fees may be structured as contingent fees paid out of the proceeds of the prepay transaction upon the successful execution of the program.

Alternatively, EBCE may pursue non-contingent fees based on an hourly fee structure, which is subject to further negotiation. In all cases, the total counsel, financial advisor, and rating agency fees total an amount not to exceed $1,000,000, which reflects the estimated total of $850,000 and $150,000 of contingency.
• Bond and Tax Counsel: $250,000
o Contingent on a successful prepay execution
• Issuer’s Counsel and Disclosure Counsel: $175,000
o Contingent on a successful prepay execution.
• Financial Advisor: $150,000
o Contingent on a successful prepay execution
• Transaction Credit Rating Services: $275,000
o Fee is not contingent but would only be committed when the transaction is ready to go to market
It is important to also note the financial benefit available through the prepay. It is estimated to achieve an 8-12% discount per year on power quantities delivered under the prepay, compared to the assigned contracts. However, the exact discount will be dependent on the spread between taxable and tax-exempt debt rates. While savings are not guaranteed in the structure, there is no negative financial impact associated if the deal does not produce targeted savings levels.

Attachments
A. Resolution authorizing the CEO or COO to negotiate and execute agreements for legal representation, financial advisory, and Moody’s credit rating services on EBCE’s energy prepayment transaction; and
B. Prepay Presentation
1 Codified in US Tax Law. Since first prepayments of natural gas were done in the early 1990s, the IRS issued rules allowing tax-exempt prepayments and Congress enacted legislation specifically allowing the transactions (National Energy Policy Act of 2005; Section 1327).

Attachment Staff Report Item 18A
RESOLUTION NO. R-2023-xx

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY

ENERGY AUTHORITY TO AUTHORIZE THE NEGOTIATION AND EXECUTION OF AGREEMENTS WITH ORRICK, HERRINGTON & SUTCLIFFE; CHAPMAN & CUTLER LLP; PFM FINANCIAL ADVISORS LLC & PFM SWAP ADVISORS LLC; AND MOODY’S INVESTOR SERVICE INC. TO SERVE AS COUNSEL, FINANCIAL ADVISOR, AND CREDIT

RATING AGENCY ON THE ENERGY PREPAYMENT TRANSACTION
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020.

WHEREAS The pursuit of a third energy prepayment enables a meaningful power procurement cost savings opportunity in which EBCE utilizes its tax-exempt status to access the municipal bond market to prepay energy supply contracts at a discounted rate,
WHEREAS Orrick, Herrington & Sutcliffe and Chapman & Cutler LLP were respectively selected for the respective counsel roles through a solicitation issued in June 2020,
WHEREAS PFM Financial Advisors LLC & PFM Swap Advisors LLC were selected for the financial advisor roles through a solicitation issued in September 2020, WHEREAS Moody’s Investor Service Inc. was selected for the Bond credit rating service due to its unique experience evaluating similar prepayment transactions, and WHEREAS The combined fees for counsel services provided by the firms identified above shall not exceed $1,000,000.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Authorize the CEO or COO to negotiate and execute Agreements with the following firms for legal representation on EBCE’s energy prepayment transaction: Orrick, Herrington & Sutcliffe – roles of Bond Counsel and Tax Counsel, and Chapman & Cutler LLP – roles of Disclosure Counsel, Issuer’s Counsel, and to prepare the Official Statement; PFM Financial Advisors LLC & PFM Swap Advisors LLC – role of Financial Advisor; Moody’s Investor Service Inc. - role of bond transaction credit rating agency. The total combined costs to EBCE for the Attachment Staff Report Item 18A
four Agreements will not exceed $1,000,000 and the Agreements shall be approved as to form by the General Counsel.

ADOPTED AND APPROVED this 21st day of June, 2023.

Elisa Marquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Energy Prepay
Transaction
Overview
JUNE 21, 2023
Attachment Staff Report Item 18B
• An energy prepayment is a long-term non-recourse financial transaction between a tax-exempt Load Serving Entity (LSE) and a taxable financial counterparty (bank, called “Prepay Supplier") utilizing the municipal bond market.
o Typically 30-year term, LSE committing ~$500MM-$1BN of energy supply contracts (combined notional values) o LSE utilizes in order to lower customer energy costs
• Prepay Supplier is assigned an existing energy supply contract, pays the contract price to PPA Seller and immediately transfers all electricity and attributes to LSE. LSE pays the Prepay Supplier at a discounted rate. • Municipal utilities (and tax-exempt entities such as CCAs) in the US can prepay for a supply of electricity or natural gas from a taxable entity and fund that prepayment with tax-exempt municipal bonds. The LSE must sell the commodity to their retail end-users residing within their traditional service area. o This structure is well known and regularly used for gas and is now being applied towards renewables PPAs o Codified in US Tax Law. Since first prepayments of natural gas were done in the early 1990’s, the IRS issued rules allowing tax-exempt prepayments and Congress enacted legislation specifically allowing the transactions (National Energy Policy Act of 2005; Section 1327)
2 Energy Prepay Introduction
Attachment Staff Report Item 18B
Energy Prepay Overview
● EBCE executed two energy prepay transactions in 2021 and 2022, issuing through CA Community Choice Financing Authority (CCCFA), the JPA in which EBCE is a member ● Annual savings from these first two energy prepay transactions totals nearly $7 Million at the outset
● Energy Prepay transactions are off balance sheet structures that allow EBCE to utilize its tax-exempt status to lower its energy procurement costs ● The discount that is applied to energy costs is based on the differential between taxable and tax-exempt dept spreads. These spreads are historically volatile and therefore optimal prepay timing is difficult to predict
● EBCE is preparing a third energy prepay transaction and anticipates going to market in the next 1- 3 months if conditions are suitable
● Staff is seeking approval to get enabled with counsel, financial adviser, and the credit rating agency today and will seek approval from the board on moving forward with the transaction as early as July 2023
3 Attachment Staff Report Item 18B
Existing Energy Prepay Transaction Summary
EBCE First Transaction – Jointly executed with SVCE
● First Energy prepay closed by a CCA
● Closed: Sept. 23, 2021
● Total Bond Proceeds: $1.48 Billion ("Green Bond” Certified) ● Initial Power Supply: 59 MW Around-the-Clock Carbon-Free Energy starting Jan 1, 2022 ● Initial Bond Tenor Savings: 10 years
EBCE Second Transaction - Standalone prepay
● Third Energy prepay closed by a CCA
● Closed: July 12, 2022
● Total Bond Proceeds: $939 Million ("Green Bond” Certified) ● Initial Power Supply: 75 MW Around-the-Clock Carbon-Free Energy starting April 1, 2023 ● Initial Bond Tenor: 6 years
4 Attachment Staff Report Item 18B
Historical Prepay Parties
5 Prepay Supplier/Bond Underwriter: Morgan Stanley
– Selected through solicitation issued November 2019
Municipal Financial Advisor: PFM Financial Advisors LLC & PFM Swap Advisors LLC – Selected through solicitation issued September 2020
Counsel: Orrick, Herrington & Sutcliffe (Bond & Tax Counsel) | Chapman & Cutler LLP (POS, Disclosure & Issuer’s Counsel)
– Both firms selected through solicitation issued June 2020 Bond Issuer: California Community Choice Financing Authority – EBCE membership approved by Board in April 2021, JPA formed June 2021; Founding Members are EBCE, MCE, SVCE, 3CE
Custodian: Bank of New York
– PFM issued solicitation early July 2021
Commodity Swap Counterparty: Natixis and RBC
– RBC was the swap counterparty in 2021 and Natixis was the swap counterparty in 2022 Credit Rating Agency: Moody’s Investor Service Inc
Attachment Staff Report Item 18B
Recommendation
6 Adopt a Resolution authorizing the CEO or COO to negotiate and execute Agreements with the following firms for legal representation, financial advisory services, and rating agency services on EBCE’s third energy prepayment transaction. The expected total costs are $850,000 and we are requesting authorization for up to $1,000,000 for the four Agreements, which includes an additional $150,000 for contingency that could be used to increase the cost(s) for one or more of the Agreements above the amounts listed below. • Orrick, Herrington & Sutcliffe – Bond Counsel and Tax Counsel for a total amount of $250,000 • Chapman & Cutler LLP – Disclosure Counsel, Issuer’s Counsel, and to prepare the Official Statement for a total amount of $175,000
• PFM Financial Advisors LLC & PFM Swap Advisors LLC – Financial Advisor for a total amount of $150,000 • Moody’s Investor Service Inc – Credit rating of the prepay bond transaction for a total amount of $275,000 Attachment Staff Report Item 18B
Appendix
Attachment Staff Report Item 18B
8 Prepay Structure
Prepay Supplier Municipal
Conduit LSE/CCA
Existing PPA to
be Assigned
Non-Recourse
Tax-Exempt
Bonds
Existing PPA
Counterparty
Contract Price
Prepayment $$
Contract Price
Less Discount
MWhs + RECs MWhs + RECs
+ Debt Service
MWhs + RECs
Debt
Service
Bond
Proceeds
Attachment Staff Report Item 18B
Market Statistics
9 • Nationwide: 90+ municipal transactions
– $50+ Billion combined notional contract value
• California: 11 municipal transactions
– $5.7 Billion combined notional contract value
• Active Suppliers: Morgan Stanley, Goldman Sachs, JP Morgan, Royal Bank of Canada, Citi, TD Securities – All investment grade rated financial institutions
• Resource Types:
– Majority of transactions to date have been exclusively for natural gas, remainder including an electricity ‘switch’ at a certain year.
– The same tax law and similar transaction structure enables the program for electricity from renewables contracts, as well. The market is seeing activity and preparation for these transactions, particularly from CCAs.

Attachment Staff Report Item 18B
Power Contract Assignment:
• Existing renewable PPAs are assigned to the taxable Prepay Supplier. The LSE continues to take and pay for energy and attributes delivered through the contract.
• All other terms of the PPA are unchanged
• If the prepay program terminates early, prepaid supplier fails to perform, or LSE fails to perform, the LSE forgoes the future savings and the assigned PPA contract is put back to the original LSE • Active Suppliers: Goldman Sachs, Morgan Stanley, JP Morgan Royal Bank of Canada, Citi, Bank of America are all investment grade rated financial institutions
Debt:
• Non-Recourse: Prepays utilize non-recourse municipal bonds and are not secured or guaranteed by the referenced entity (i.e. the CCA). Rather the debt is recourse to the Prepay Supplier (i.e. the bank receiving the prepayment). This significantly protects the CCA and mitigates risk related to the payment of power contracts novated through the prepay.
• Off Balance sheet for LSE: Bonds are issued by a municipal bond conduit and arranged by the Prepay Supplier 10 Key Elements of a Prepay Transaction
Attachment Staff Report Item 18B
Prepay Sizing and Discount
11 • The total bond proceeds may be as high as $1.25bn and will be dependent on the CA bond market appetite. – EBCE will seek the maximum bond raise while maintaining optimal bond rates – The amount represents the present value of the PPA cashflows over the 30-year life of the transaction • This transaction will likely translate to an estimated $2-3MM of annual savings for EBCE for the initial bond term. – The transaction assumes an increase in the cashflows running through the prepay over the 30-year life. – As the transaction moves forward, the arbitrage value goes down since the present value benefits reduce with a shorter remaining tenor.

The future discount rates will be reset every 5-10 years based on bond tenors and be dependent on future bond market conditions, but this puts downward pressure on the future discounts.
– There is a negotiated minimum discount that, if not met by the Prepay Supplier, allows the LSE not to move forward in the repricing. • Ultimately the discount is established by the spread between taxable and tax-exempt rates and deducts all transaction related costs, which include fees associated with bond underwriting, counsel (bond, disclosure, underwriter’s, prepay), financial adviser, swap counterparty, credit rating, custodian, etc.
• 5-10 years is typically the optimal bond spread tenor. Maintaining this spread over a 30-year transaction life maximizes the available discount. This requires a repricing and re-issuance of bonds every 5-10 years and a reset of the discount rate. In general, a high interest rate environment will lead to a higher discount.
• The initial power flows for the transaction are anticipated to begin in 2024 Attachment Staff Report Item 18B
Staff Report Item 19
Staff Report Item 19
TO: East Bay Community Energy Board of Directors
FROM: Annie Henderson, Vice President of Marketing & Account Services; Theresa McDermit, Head of Brand
SUBJECT: New Brand Name Proposal
DATE: June 21, 2023
__________________________________________________________________ Recommendation
Approve a Resolution authorizing the use of Ava Community Energy as the market-facing brand name for our agency and directing staff to use the new name in all marketing materials starting October 2023 or as determined by direction of the CEO.

Background and Discussion
In recent years, EBCE has dramatically increased its focus on actively promoting and enabling electrification, decarbonization, and efficiency initiatives while maintaining its ongoing commitment to the delivery of clean power at low prices. Since early 2022, staff have led an effort to define and articulate an updated brand strategy in support of this broadening mandate.

In December of 2022, an RFP was issued for a partner to support the evolution of our brand identity. And in February of this year, the Board approved the request to move forward with a preferred supplier. Since that time, we have worked swiftly to build out our evolved brand identity, beginning with the recommended brand name.

To arrive at this naming recommendation, we followed this detailed process:

Strategic Alignment and Naming Criteria: We established a framework for evaluating potential names to guide subsequent steps in the process. These guardrails helped ensure that an eventual name fulfill our objectives for a name change which broadly fall into two categories:

Staff Report Item 19
1) Ease of use, memorability; ability to support our expanded engagement efforts 2) Inclusivity; welcoming to all constituents including those outside of the “East Bay.”
Ideation: In the initial phase, over 150 names were generated and reviewed.

Promising candidates were screened for availability at a high level.

Feedback: In an iterative process, the most promising candidate names were shared with agency leadership, select staff, and members of the ad hoc committees of the Board of Directors and Community Advisory Committee. Several rounds of feedback and review yielded a small set of finalist names.

Clearance and Protection: We’ve taken care to ensure the appropriateness and availability of our recommended name with the following actions:
• A full trademark search was conducted by our counsel, DWT. They found no relevant competing claims on the name
• Native speakers of the most frequently spoken languages in our territory are reviewing the name to ensure there are no unintended linguistic or cultural associations
• Relevant URLs and social media handles were secured
• A placeholder trademark filing was prepared to signal our intent to use and protect the recommended name upon approval.

At this time, staff is proposing that Ava Community Energy be adopted as a “DBA” and that the agency use the new name in marketing materials. Resolutions, contracts, and legal filings would still be done under the agency’s legal name, East Bay Community Energy Authority. If the Board desires to legally change the name of the agency for all purposes, it may authorize staff to conduct further research and take necessary actions to accomplish this goal. It is anticipated that the Joint Powers Agreement would have to be amended to achieve this and individual approval of all of the member agencies may be required.

Fiscal Impact
Fiscal impact is driven by the need to communicate any changes to our brand identity and the creation / recreation of branded materials. Actual costs will be determined once the full extent and timing of changes are known. The funding for implementation and outreach on a new brand identity is included in the amount presented to the board for approval as part of the FY23/24 budget.

Committee Recommendation
Staff Report Item 19
Ad hoc committees of the Board of Directors and CAC have stated their support for adoption of the recommended name for marketing purposes. The Executive Committee discussed this proposal on June 7, 2023. Feedback was generally supportive. Comments from board members and members of the public centered on focusing the name and messaging on our role as a public agency and regions served, while avoiding personification. The name proposal was also presented for feedback to the Marketing, Regulatory, and Legislative Committee on June 16th. The MRL Committee provided positive feedback and there were no comments from members of the public.

Attachments
A. Resolution
B. New Name Proposal ppt.

Attachment Staff Report Item 19A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY

TO APPROVE THE BRAND NAME OF AVA COMMUNITY ENERGY
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020. The city of Stockton in San Joaquin County was added as a member of EBCE and party to the JPA in September of 2022.

WHEREAS the agency will soon serve a larger portion of San Joaquin County and residents of that region do not broadly identify as being from the “East Bay”, WHEREAS the agency is expanding its engagement with customers and would like to position itself as an influencer of individual consumer decisions that advance decarbonization efforts, and
WHEREAS a short, easy to say, memorable, and warm name will increase inclusivity and customer engagement.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors approves the use of “Ava Community Energy” as the market facing brand name for the agency.

Section 2. Staff is hereby directed to use Ava Community Energy for all marketing materials related to the agency starting October 2023 or as determined by direction of the CEO.

ADOPTED AND APPROVED this 21st day of June, 2023.

Elisa Márquez, Chair
Attachment Staff Report Item 19A
ATTEST:

Adrian Bankhead, Clerk of the Board
New Brand Name
Proposal
Board of Directors
JUNE 21, 2023
Attachment Staff Report Item 19B
Overview
2 ● Background & Rationale
● Insights
● Stakeholder Engagement & Timelines
● Process & Considerations
● New Brand Name Proposal
Attachment Staff Report Item 19B
Background &
Rationale
3 Attachment Staff Report Item 19B
EBCE Brand Evolution
2020
Updates to Look & Feel
Website update to give a more modern
look and feel to the brand. Logo and
key messaging remain unchanged.

First customer program offering.
2022
Program Marketing with Calls to Action
Multiple programs launched or in
planning; specific calls to action,
expanding on an educational focus
2016
Original Brand and Logo Development
County hired consultants to develop initial
website, collateral, and logos.
2018
Initial Enrollment and Launch of Service
Enrollment marketing and outreach
campaign including customer notifications
and key messaging.
4 Begin service to Stockton
2025
Attachment Staff Report Item 19B
5 In the Beginning…
When we launched EBCE, our primary
objective was to educate:
• What is a CCA?
• How does your bill work?
• EBCE is not a scam…
Attachment Staff Report Item 19B
Our brand expression is:
● Very literal; we have a highly
descriptive name and logo
● Self-referential; our messaging
has traditionally focused on what
we do (as opposed to what that
means for the consumer)
● Familiar; our “look” is similar to
many other CCAs or IOUs
A Brand Expression to Support Education and Trust
Attachment Staff Report Item 19B
$19 million annual
customer savings vs.
what would have been
paid for PG&E service
$21 million spent on
local programs like
battery energy
storage, induction
cooking, and electric
heat pump water
heaters 1,015 megawatts of
new wind, solar, and
battery storage,
including projects in
Alameda County
95% average
retention rate across
our service area
Steady expansion
of our service area;
Pleasanton, Newark +
Tracy 2022;
Stockton 2024
On track to implement
the strategy for
100% clean by 2030
2022 National Notable Achievement
Award for Land Revitalization Team
Excellence
We’ve Been Successful
Attachment Staff Report Item 19B
We Continue to Mature and Evolve to Better Serve our Communities ● We are moving from simply
filling demand to creating it
● Growing capacity and expertise
to stand up consumer- and
commercial-facing programs
that expose customers to
electric alternatives and speed
their adoption, accelerating
decarbonization
Attachment Staff Report Item 19B
Insights
9 Attachment Staff Report Item 19B
Our Name is a Barrier to Success in San Joaquin County* *n=400; 57.5% of sample from Stockton
Q12. Which one of these names is your least favorite?
East Bay Community Energy
EBCE
Placeholder Name
Placeholder Name
Placeholder Name
Placeholder Name
Placeholder Name
Q13: Why?
EBCE
• Acronyms are off-putting;
hard to remember
East Bay Community Energy
• San Joaquin County not part
of East Bay; East Bay too
expensive / doesn’t represent
my values
Attachment Staff Report Item 19B
Unaided Awareness
Question: PG&E manages the electricity system in your area. You also have an option for generation service (power plants). Is that…
11 May 2022

22.25%

46.5%
October 2022

46.5%
22%
Attachment Staff Report Item 19B
Stakeholder
Engagement &
Timelines
12 Attachment Staff Report Item 19B
• 4/1/22 - Presented brand refresh concept to
MRL Subcommittee
• 10/19/22 - BOD meeting CEO Report notes
hiring of Head of Brand
• 12/14/22 - BOD meeting CEO Report provides
update on brand efforts
• 12/15/22 - RFP posted for partner to support
Brand Identity Evolution
• 2/15/23 - BOD meeting consent agenda for
approval of contract for Brand & Visual
Identity Services
Meetings and Public
Information - 2022 to early
2023
Attachment Staff Report Item 19B
• February
○ Ad Hoc Committees of the Board and CAC
established; initial meetings
• March
○ Survey of stakeholders, customers, and staff
○ Presentation to MuniPals
• April
○ Ad Hoc Committee meetings
○ Presentation to Exec Comm, CAC, and
Board
• May
○ Ad Hoc Committee meetings
○ Update in CEO Report to Board
○ Presentation on brand at Marketing &
Account Services Special Board Retreat
○ Special meeting of the MuniPals
Winter/Spring 2023
Attachment Staff Report Item 19B
• June 7
○ Executive Committee
• June 16
• Marketing, Regulatory, & Legislative Committee
• June 20
○ Community Advisory Committee
• June 21
○ Board of Directors Meeting
June 2023
Info and discussion
Discussion and vote
Attachment Staff Report Item 19B
16 Reference: Ad Hoc Committees
Name EBCE Role Jurisdiction Role
Elisa Márquez Current Chair Supervisor, Alameda County
Dan Kalb Former Chair Councilmember, Oakland
Jaime Patiño Former Chair of MRL Subcommittee Councilmember, Union City Matt Bedolla Director Councilmember, Tracy
Dan Wright Director Councilmember, Stockton
Anne-Olivia Eldred Chair of CAC Oakland resident
Ed Hernandez Vice Chair of CAC San Leandro resident
Jim Lutz At-Large Member of CAC Oakland resident
Attachment Staff Report Item 19B
17 Committee Feedback
Ad Hoc Committees Support from both Board and CAC members for new name Executive Committee Feedback was generally supportive. Comments from board members and members of the public centered on focusing the name and messaging on role as a public agency and regions served, while avoiding personification.

Marketing, Regulatory, &
Legislative Committee
Feedback was positive. No public comments were given.

Attachment Staff Report Item 19B
Ahead: Implementing our Evolved Name & Brand (tentative schedule) Plan, Prepare, Build
● Catalog / update all
branded assets
● Build launch plan x
audience
● Create toolkits x
audience (e.g. logo,
guidelines, FAQ,
messaging, social
posts, newsletter
content)
Now - Aug
Stakeholder Enablement
September
Soft Launch
● Notice customers
● Reskin website
● Apply brand to
external touchpoints
● Social media
campaign
● Outreach at events
Oct - Dec
Robust Comms
● Integrated campaign to
inform and build
excitement among our
constituents (e.g.
radio, buses, BART,
OOH)
● Launch evolved
website
● Measure awareness
Jan - Mar
Transition to
Steady State*
● Begin messaging shift
from introduction to
steady state
● Continue elevated level
of outreach with
programs focus
● Integrate tracking data
and stakeholder input
to drive additional
activities
Apr - Jun
● Communications and
training for internal
and external
stakeholders (e.g. all
employees, MuniPals,
sponsored entities,
program partners)
* Timing influenced by results of tracking survey
Attachment Staff Report Item 19B
Process &
Considerations
19 Attachment Staff Report Item 19B
Attachment Staff Report Item 19B
Attachment Staff Report Item 19B
Naming Criteria 1. Signals energy, community, or progress

2. Evokes momentum, positivity, and togetherness

3. Flexible for business and service area expansion

4. Balances uniqueness with reliability

5. Based on easy-to-understand words

6. Sounds and looks interesting; ideally also wearable

7. Stands out from clean tech/smart home innovators

8. Works in connection with “Community Energy” but without creating negative acronyms

9. Ownable as URL and available as trademark
Attachment Staff Report Item 19B
Naming Process
Attachment Staff Report Item 19B
Name Proposal
24 Attachment Staff Report Item 19B
Considerations ● Legal check is complete and clear - name is available for use ○ Other top contenders did not pass initial legal review, presenting risk of litigation
● Trademark registration submitted
● Cultural / Linguistic search completed; no conflicts found ● Social media handles and URLs have been secured in
advance of revealing the name publicly
● Name proposal is the outcome of many months of working with the ad hoc committees, public engagement, consultant engagement, internal staff analysis, and legal review
Attachment Staff Report Item 19B
Ava
Ava Community Energy
Attachment Staff Report Item 19B
Ava Community Energy
Origin Coined from Alameda County + Valley
Rationale Signals approachability
Evokes humanity and optimism
Short, warm, and memorable

Attachment Staff Report Item 19B
Ava Community Energy
Language “East Bay Community Energy is now Ava”
“We’d like to thank Ava Community Energy
for being the Climate Justice Sponsor of the
Oakland Roots.”
“The next speaker is from Ava Community
Energy, servicing Alameda County to the
Central Valley.”
Attachment Staff Report Item 19B
Attachment Staff Report Item 19B
30 We are Ava Community Energy
Attachment Staff Report Item 19B
Ava
Ava Community Energy
Attachment Staff Report Item 19B
Staff Report Item 20
Staff Report Item 20
TO: East Bay Community Energy Board of Directors
FROM: Izzy Carson, Power Resources Manager
SUBJECT: Emissions Overview (Information Item)
DATE: June 21, 2023
Recommendation
Receive a presentation showing the history of the Bright Choice plan’s emission factor and future emission reduction targets.

Background and Discussion
Staff is presenting an overview of the Bright Choice plan’s emission factor to the Board. This presentation is in response to requests for additional information on Bright Choice emissions and the history and methodology of how this is calculated.

Bright Choice History
In October 2018, the Board adopted a 2018 calendar year emission factor of 142 pounds of carbon-dioxide equivalent per mega-watt hour (lb-CO2
e/MWh) for the Bright Choice energy
product, a product approved in 2018 that was established to provide a choice for customers for electricity at a lower price than PG&E as a comparable renewable product. 2020 Changes Impacting Procurement and Emissions Reporting Carbon Free Allocation
In 2019 Pacific Gas and Electric (PG&E) initiated a formal large hydro and nuclear electricity allocation process determined by load share, with deliveries starting in 2020. The acceptance of this allocation did not have incremental cost to Community Choice Aggregators (CCAs) due to the Power Charge Indifference Adjustment (PCIA), a non-by passible charge set annually, under which all customers pay.

Staff Report Item 20
The fundamental question of whether to accept nuclear electricity form the allocation came down to a trade-off between having nuclear electricity as part of East Bay Community Energy’s (EBCE) portfolio and lower greenhouse gas (GHG) emissions, or not having nuclear and accepting higher GHG emissions. Ultimately the Board elected to accept the large hydro allocation and reject the nuclear allocation.

With the introduction of the Carbon-Free Allocation, EBCE’s large hydro portfolio was expected to be more in line with PG&E, and therefore renewable energy was a more appropriate focus.

Bright Choice Procurement Floor
In 2020 the Bright Choice renewable target was amended to establish a clean energy procurement floor that was intended to be higher than PG&E. The procurement floor was derived based on PG&E’s prior year renewable energy power content forecast, plus an additional 5% renewables.

While the 5% buffer was included as to mitigate uncertainty in PG&E’s provided forecast, it was noted at the April 2020 Board meeting that there was a possibility that in a given year EBCE’s renewable percentage may be less than PG&E’s. This approach did have increasing forecasting challenges due to a lack of visibility into PG&E’s annual renewable target Furthermore, the reporting lag on power content means that actual values are not fully validated until their Power Content Label is produced, which occurs in the Fall of the year after the power is procured.

Assembly Bill (AB) 1110
In 2016, AB 1110 was passed which modified the Power Source Disclosure Report (PSDR) methodology and impacted the information shared with customers on the Power Content Label (PCL). The new methodology required electricity suppliers, EBCE included, to disclose the GHG emissions intensity associated with its electricity sources. The California Energy Commission (CEC) updated the PSDR regulations implementing AB 1110 effective May 2020.

AB 1110 required replacing that emission factors can only be marketed using the newly adopted PSDR regulations methodology and that other methods for calculating emissions factors like The Climate Registry (TCR), a national emissions accounting methodology that was widely used by load serving entities, including CA utilities, CCAs and cities could not be used for calculating and disclosing emission factors to customers. The global emissions perspective of TCR was replaced with a California specific methodology, with the most significant change being in the application of the associated GHG emissions from firm and shaped Renewable Energy Credit (REC) purchases, also known as Portfolio Content Category (PCC) 2 RECs. PCC2 RECs are a California Renewable Portfolio Standard (RPS) renewable product that are by in large solar, wind and hydro resources, generated outside of California.

Under the new CA specific methodology, these PCC2 RECs, regardless of source, are given an equivalent emissions factor equal to unspecified power, resulting in a material increase in reported emissions.

Path to Zero Emissions 2030
Staff Report Item 20
In December of 2020, the Board adopted a clean energy goal for all electricity within EBCE’s portfolio to have zero net emissions by 2030. In April of 2022, a path to reach that zero emissions goal was approved by the Board, which included annual targets for renewables and large hydro (as a percentage of sales) to reach that goal. Two months later in June of 2022, the renewable targets were increased by an additional 5%.

The path to zero emissions also removed the use of Pacific Gas and Electric’s (PG&E) prior year renewable content forecast as the basis for the annual procurement floor for Bright Choice. This step de-coupled the renewable content of Bright Choice from PG&E renewable content forecasts and established the annual steps that would lead to zero emission electricity in 2030.

Bright Choice Annual Renewable and Carbon Free Electricity Targets The table below shows renewable and carbon free content targets through 2030 for Bright Choice, including estimates for unspecified power based on those targets, as well as estimates for emission factors in future years, and the CA RPS percentages for comparison.

Table 1: Bright Choice: Renewable, Carbon Free Percentages by Year, Unspecified Power estimates and PCL Emissions Factor for Bright Choice
There are two primary factors influencing Bright Choice emissions. The largest source of emissions in EBCE’s portfolio is power content from emitting generation sources and for Bright Choice this is unspecified power which is the balance of carbon free electricity purchases (which includes renewable) and total sales. Unspecified electricity is not purchased for Bright Choice for content purposes but is reflective of the total sales net of carbon free content.

The second factor influencing the Bright Choice emissions is renewable content from PCC2 Staff Report Item 20
RECs since the PSDR emissions reporting regulations require EBCE to report emissions for these renewable purchases when the source of the energy is not specified. Annual increases in the renewable and carbon free content result in annual reductions in the emission factor and unspecified power for Bright Choice.

Not shown in the above table but reflected in the estimates for emission factors is an annual reduction in the purchase of PCC2 RECs for the Bright Choice plan whereby 2030 all of the renewable electricity for Bright Choice would come from PCC1 RECs.

Fiscal Impact
There are no fiscal impacts as this item provides information only on Bright Choice product emissions.

Attachments
A. Presentation
Bright Choice Emissions
Overview
JUNE 21, 2023
Attachment Staff Report Item 20A
Overview
• What is Power Content
• EBCE Product Overview
• Renewable Energy Credits and Portfolio Content Category Classifications • EBCE Bright Choice Target History
• PG&E Carbon Free Allocation
• Bright Choice Amendment to Power Content
• Emissions Accounting Methodology
• Where we are now
• CCA Comparison
• 2022 Snapshot
Attachment Staff Report Item 20A
What is the Power Content Label (PCL)?
3 PCL
• Published annually, based on prior
calendar year generation from
owned or contracted-for resources
• Detailed breakdown on sources of
energy used to provide electricity
• Resembles a nutrition label for
electricity
• The PCL submission requires a
formal 3rd party audit and is
reviewed and approved by the CEC
Attachment Staff Report Item 20A
EBCE’s Customer Products
Attachment Staff Report Item 20A
Renewable Energy Credits and Portfolio Content
Category Classifications
5 Renewable Energy Credits (RECs):
• Represent clean energy attributes of renewable electricity • Each REC is equivalent to one MWh of renewable electricity generated • Limitations to the amount that each group can count towards RPS requirements • Classified into three distinct categories Portfolio Content Categories (PCC) PCC 1 Energy and REC are from same source and delivered into a California Balancing Authority (CBA) without any substitution
PCC 2 Substitute Energy not from the same source as REC PCC 3 Electricity Products Not Qualified as PCC 1 or PCC 2, Including Unbundled RECs Attachment Staff Report Item 20A
Bright Choice History
Bright Choice plan was created to provide electricity to customers at a lower price than PG&E as a comparable product.
2018 – Bright Choice was a Board approved product, with an approved power content set at 85% carbon free
• October 2018 – Board approved use of The Climate Registry (TCR) carbon accounting methodology and 2018 calendar year emissions factor target of 142 lb-CO2e/MWh (Actual 2018 emissions was 101 lb-CCO2e/MWh) • TCR is a national emissions accounting methodology that was widely used by load serving entities, including CA IOUs and CCAs, and cities Attachment Staff Report Item 20A
2019 PG&E Carbon Free Allocation
• PG&E initiated a formal large hydro and nuclear allocation process determined by load share, with deliveries starting in 2020. The acceptance of this allocation had zero incremental cost to CCAs due to PCIA
• EBCE initiated discussions in the November 2019 ExComm meeting followed by extensive discussions on risks, benefits, and costs with the Board and CAC at the December 2019 and January 2020 Board meetings
• Fundamental question for accepting nuclear or not
came down to a trade-off between having nuclear and
lower greenhouse gas emissions, or not having nuclear
and accepting higher greenhouse gas emissions
• EBCE board elected to accept the large hydro
allocation
Attachment Staff Report Item 20A
2020 Amendment to Bright Choice Power Content Guidelines • With the introduction of the carbon free allocation, EBCE’s large hydro portfolio content was expected to be generally in line with PG&E, and therefore Renewable Energy was a much more appropriate focus
• Renewables target was amended to reflect a clean energy procurement floor based on PG&E’s prior year renewable energy power content forecast + 5% buffer for uncertainty
• Challenges existed under this approach due to lack of visibility into PG&E’s annual renewable target and a changing RPS banking strategy. Furthermore, the reporting lag means that actual values are not fully validated until the fall of the year after the power is procured
2020 Bright Choice Renewable % = [2019 PG&E Renewable Forecast] + 5% = 39.5% Attachment Staff Report Item 20A
Assembly Bill (AB) 1110
• Regulations modifying power content reporting methodology and emissions accounting methodology were initially implemented in 2020. • AB 1110 fundamentally required replacing the previously accepted TCR emissions methodology, which took a global emissions perspective, with a California-centric emissions methodology
• Requires retail sellers to:
o Include emissions from PCC 2 RECs resulting in a material increase in reported emissions
o Resources, regardless of source (solar, wind, hydro) are given an equivalent emissions factor based on imported energy into CAISO, typically unspecified system power.

Attachment Staff Report Item 20A
Where are we now?
• In December 2020, the Board adopted a clean energy goal for all electricity within EBCE’s portfolio to have zero net emissions by 2030
• In April 2022, a path to reach that zero emissions goal in 2030 was approved, which included annual targets for renewable and large hydro (as a percentage of sales) 2022 and 2023 Targets were increased by an additional 5% in June 2022 2022: Renewables 45% 50%; Carbon Free 63% 68%
2023: Renewables 49% 54%; Carbon Free 66% 71%
Note: 2019 renewables
procurement increased
significantly to address
scarcity in large hydro
generation due to drought
conditions
Attachment Staff Report Item 20A
Total Emissions Inclusive of Renewable 100 Product
Attachment Staff Report Item 20A
CCA Comparison
*2021 Power Content Labels data
*PG&E residential rates as of 1/1/2023
Contributing factors to
higher/lower emissions
• Acceptance or
rejection of nuclear
allocation
• Rates compared to
PG&E
• Renewable and Hydro
content
• Unspecified Power
Attachment Staff Report Item 20A
2022 Snapshot
Note that these are draft power content forecast positions for 2022 and subject to change following formal audit. Formal PCL and emissions data to be released on October 1st.
* https://www.pgecurrents.com/articles/3689-pg-e-customers-electricity-96-greenhouse-gas-free-2022 Attachment Staff Report Item 20A
Questions?
Thank You
Izzy Carson
Power Resources Manager
Attachment Staff Report Item 20A
Letter # Name Date
1 Tom Kelly 6/1/2023
2 Jim Lutz 6/8/2023
3 Jessica Tovar 6/19/2023
4 Jessica Tovar 6/19/2023
EBCE Board of Directors Public Comment received for 6/21/23 Meeting Board of Directors and Community Advisory Committee
East Bay Community Energy
Re: EBCE Management Missteps that have Cost Ratepayers Millions Dear Members of the EBCE Board of Directors and Community Advisory Committee, Over the past few years, I have consistently advocated for an improvement in the power content of EBCE’s default product Bright Choice. For many of us, clean, carbon free electricity was the primary reason for pressing for the development of a local community choice program. Evidence of those efforts can be found in EBCE’s formation documents which clearly and repeatedly state that EBCE will do better than PG&E on greenhouse gas emissions. In fact, the enabling legislation signed by the City of Stockton states that by joining EBCE, Stockton will reduce its greenhouse gas emissions from electricity. The Joint Powers Agreement signed by Stockton states that EBCE will provide electricity with a lower greenhouse gas intensity than PG&E. Based on EBCE’s plan for making Bright Choice carbon free by 2030, neither the promises made by Stockton to its constituents, nor by EBCE to its member jurisdictions, are true.

As an advocate, I try to understand the reasons why my efforts do not always succeed.

Am I wrong? Is my reasoning faulty? Is there something I am missing? Until recently, I thought that the drive by EBCE to maximize its reserves, and in doing so, improve its credit rating could be the underlying reason why EBCE kept purchasing carbon intensive electricity. But, today, I am wondering if the real reason is simply that EBCE management lacks the experience and qualifications to adequately manage what will soon become a billion-dollar corporation.

Over the past year or so, we have seen a number of very costly actions by EBCE management that have affected the reputation of the agency and deprived ratepayers of cleaner, cheaper electricity and enhanced local programs. I estimate those financial losses to ratepayers at more than $20M. The cost of the loss of credibility and confidence in EBCE management cannot be adequately calculated. Those costly actions include:

A. The repeated failure of EBCE to meet its Resource Adequacy obligations.

The CPUC has assessed EBCE $6.3M in penalties since February 2019 for its failure to meet its RA obligations. Surprisingly, EBCE management seems to think that it Public Comment received for the June 21, 2023 EBCE Board of Directors MeetingLetter #1 was simply “gaming” the system by paying the fines rather than acquiring the RA.

CEO Nick Chaset made a comment to that effect at the 5/15/23 Community Advisory Committee meeting1, namely “EBCE customers were better off” by paying the penalties rather than acquiring the RA. Mr. Chaset claimed that EBCE was “unable” to acquire RA during the periods covered by the penalties (4 years), in spite of the fact that other CCAs were able to do so (with the exception of Central Coast Community Energy). Marie Fontenot, EBCE’s Vice President, Power Resources, responded to a letter from the Sierra Club that raised its concerns about the RA issue. She writes:

What Mr. Chaset and Ms. Fontenot fail to mention is that EBCE’s inability to meet its RA obligations led to at least a one-year delay in the enrollment of Stockton electricity customers in EBCE. That failure has the following financial consequences:
1) A loss to EBCE in 2024 of $17.8M in anticipated net revenues.2 2) An additional cost to Stockton ratepayers of approximately $1.5M3 who must remain with PG&E for at least a year longer.
3) In 2022, EBCE issued an RFO for “ZERO-EMISSION MEDIUM AND HEAVY-DUTY GOODS MOVEMENT PROJECT LOANS” from providers in eligible jurisdictions within Alameda County and the cities of Tracy and Stockton.4It may no longer be the case that any contracts that serve the City and Port of Stockton are valid. EBCE ratepayers should not be shouldering costs associated with those contracts. 1 5/15/23 CAC meeting video at 1 hour 35 minutes 20 seconds. See, https://ebce.org/meetings/community-advisory-committee-meeting-5-15-23/ 2 https://res.cloudinary.com/diactiwk7/image/upload/v1663374090/11._Item_11_-_Inclusion_of_New_Communities_- _Stockton_kic4j9.pdf (page 7)
3 Letter to City of Stockton – May 12, 2022
4 https://res.cloudinary.com/diactiwk7/image/upload/v1664499492/REVISED_9.27.22_-_RFO_for_ZERO-EMISSION_MEDIUM_AND_HEAVY-DUTY_GOODS_MOVEMENT_PROJECT_LOANS_9.12_-_Copy_kfqviw.pdf Public Comment received for the June 21, 2023 EBCE Board of Directors MeetingLetter #1 It is also the case that these managerial missteps have had a negative impact on EBCE’s standing within the CCA community and among its customers which EBCE spends significant amount of marketing dollars on enhancing.

B. EBCE’s purchase of office building – July 9, 2021 - $8.5M As we now know, the cost of upgrading the purchased building increased from the Board approved amount of $7M to $14M. It appears that EBCE has spent approximately $770,000 on upgrades to the building. Staff have now received approval from the Board to lease office space. The future of the building is unknown, however, in the current commercial real estate market, the sale price of the building may not be enough to cover EBCE’s costs.

C. Proposal to “gift” UCSF’s Benioff Children’s Hospital $15M Fortunately, the widespread community opposition to the CEO Chaset’s questionable proposal to gift $15M in ratepayer funds to Oakland’s Children’s Hospital was successful. And it now looks as if those funds will be re-directed to a program that is consistent with EBCE’s mission. Nevertheless, significant staff time, Board involvement, and community organizing to question the gift was expended. This represents not only a financial cost, but yet another situation that calls into the question the ability of the current management staff to operate the agency successfully, cost effectively, and without serious risks to the agency’s reputation, stability and future.

It is time for the EBCE Board to take a very close look at EBCE’s management team and take whatever actions are needed to prevent the type of actions taken by the current management that have cost ratepayers millions of dollars and undermined the reputation of the agency.

Sincerely,
Tom Kelly
Berkeley
cc: Jessica Tovar
Public Comment received for the June 21, 2023 EBCE Board of Directors MeetingLetter #1 6/12/23, 8:49 PM
https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1768204383874083570&simpl=msg-f:1768204383874083570 1/1 Adrian Bankhead <[email protected]>
2023-2024 Value Proposition
'Jim Lutz' via Clerk of the Board <[email protected]> Thu, Jun 8, 2023 at 11:11 PM Reply-To: Jim Lutz <[email protected]>
To: Clerk of the Board <[email protected]>, [email protected]
Dear EBCE Board,
I am submitting this comment in response to the EBCE 2023-2024 Proposed Value Proposition Webinar I attended on June 6. The rate changes proposed by staff were to increase the Bright Choice discount relative to PG&E rates from 3% to 5% and to reduce the Renewable 100 premium relative to PG&E rates from ¾% to ¼%.

EBCE states that, as a Renewable 100 customer, I’m paying only ¾ percent more per kWh today than I would be paying if I were a PG&E customer. While I believe this to be true, there is no way I can confirm it by examining my own PG&E bill.

17.8% higher than AMP energy charges. While I do not know what EBCE is paying to procure electricity, to me this dramatic difference in generation charges suggests significant opportunities for potential rate reductions for EBCE customers if our rates were calculated independently and not tied to PG&E’s.

I’m asking the Board to consider directing staff to evaluate other ways of setting rates for customers, given EBCE’s successful operations so far.

Sincerely, your loyal customer,
Jim Lutz
PS: I am a member of the Community Advisory Committee, but I am submitting this comment on behalf of myself.

Public Comment received for the June 21, 2023 EBCE Board of Directors MeetingLetter #2 Jessica Guadalupe Tovar
339 15th St #208 Oakland, CA 94612
415-766-7766
Subject: Increase Community Based Energy Resilience budget June 19, 2023
Call on East Bay Community Energy (EBCE) to resource
Community-Based Energy Resilience
We, the undersigned community-based organizations, members and supporters of the East Bay Clean Power Alliance, call for the Board of Directors of East Bay Community Energy (EBCE) to increase funding at least five-fold in the 2023-2024 budget for Community Resilience. This funding is needed to begin planning and implementing community-based microgrids at community-trusted resilience hubs.

While we support the 2022-initiated Resilient Critical Municipal Facilities project and its continued funding in 2023-2024, many “critical municipal facilities,” such as police and fire stations are not community-based nor community-trusted spaces. As such those facilities do not make appropriate resilience hubs for low-income, people of color, immigrant, disabled, or senior community members during, or in the aftermath of disasters and power shut-offs.

Meanwhile, the need for access to emergency energy services during climate-related and other crises, particularly in communities long neglected due to systemic injustice, has increased dramatically, and can be expected to become more urgent as accelerating climate chaos brings wildfires, smoke, hurricane-force storms, life-threatening heat, and utility power shutoffs (PSPS).

EBCE customers in our communities already suffer from high energy burden due to soaring, out of reach energy bills. Other energy inequities include poor quality housing with inadequate insulation, electrical panels, wiring, etc. Power shut-offs planned, or unplanned, aggravate already stretched household budgets and disproportionately high energy burdens with lost food, jobs and other complications.

We are calling for EBCE to do more to address these serious inequities in energy access, which mostly affect Black, Indigenous, people of color and immigrants. The EBCE microgrid project for municipal agencies should be adapted to include community-accessible and community-trusted places. We applaud the decision to begin including schools, but would like to see community Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #3 centers, shelters, senior centers, places of worship and other community identified locations be included. Ultimately, community-based microgrids could help reduce energy bills, provide energy resilience, and benefit local distribution and even transmission grids. California leads the nation in having the most schools with solar panels installed and that adding battery storage would make them the best candidates for community resilience centers.

In the five years that EBCE has operated, the overwhelming majority of the Local Development budget has been delegated to projects that benefit middle and affluent customers and businesses. For example, incentive programs for expensive items such as heat pump water heaters and induction ranges only work for those with disposable incomes. EV Charging stations do little to help low-income communities and could create more harm by accelerating rising rents and other costs in our communities.

Our organizations supported efforts by the East Bay Clean Power Alliance starting in 2014 to establish East Bay Community Energy. We worked to ensure that social justice and energy equity were stated goals of the program. We stood with the effort to create a Local Development Business Plan that would bring economic and environmental opportunities to communities long neglected by local governments.

We urge the EBCE Board of Directors to honor these central goals by voting for a five-fold increase in ($10M vs $2M or $4M) the Community Resilience budget for resourcing microgrids for Community Based Organizations.

Clean Power to the People,
Jessica Guadalupe Tovar
East Bay Clean Power Alliance
SolidarityINFOService
Northern California Solar Association
Sunflower Alliance
Californians for Energy Choice
Reclaim Our Power: Utility Justice Campaign
Sustainable Food Network LLC
West Oakland Environmental Indicators Project (WOEIP)
San Francisco Bay Physicians for Social Responsibility
Sierra Club
Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #3 6/19/23, 4:49 PM
https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1769167208108951673&simpl=msg-f:1769167208108951673 1/2 Adrian Bankhead <[email protected]>
Need for public workshop on $15M Health E Homes program Jessica Tovar <[email protected]> Mon, Jun 19, 2023 at 2:14 PM To: Adrian Bankhead <[email protected]>, Clerk of the Board <[email protected]> Dear EBCE Board of Directors, Community Advisory Committee and Alternates, I am following up on concerns regarding the Health-E Communities $15M embedded in the budget item.

The item is in the budget to approve the first $5M out of the $15M from the June 2022 budget in the program. According to what CEO Nick Chaset shared with the board, the $250,000 was secured from an unnamed foundation to fund an undisclosed electrification health and air study in conjunction with undisclosed partners. The EBCE $5M was said to start the delivery and installation of induction cooktops, while we applaud the board for redirecting the funds towards EBCE's energy commitments, we are concerned that the details of this effort are still unclear to the public, including our community health professionals. As a result, I recommend the EBCE board instruct staff to clearly outline the details of this study, partners and exactly what the funds will cover, so that the public can effectively weigh in.

The $15M dollars initially arranged with UCSF Benioff was a contentious legal issue as the arrangement was made without a full public and transparent process and sought to give away an unprecedented amount of public funds. It would be necessary for the use of these funds to be shared in detail with the public, the Community Advisory Committee and the Board of Directors so that we can effectively weigh in on the issue.

In November 16, 2022 the EBCE board of directors voted on an item that required a full transparent follow up to how the $15M would be used. We would appreciate the follow through on the transparency.

I am linking the original letter sent by the East Bay Clean Power Alliance on June 7 and again June 15 with signatory organizations. Original letter from the Law offices of Chatten-Brown, Carstens & Minteer Sept 29, 2022.

Thank you,
Jessica Tovar
Jessica Guadalupe Tovar,
Local Clean Energy Alliance, Energy Democracy Organizer East Bay Clean Power Alliance, Coordinator
339 15th Street Suite 208 Oakland CA, 94612
[email protected] 415-766-7766
Support my work with a donation
Community Choice, Community Power video, Community vision for Solutions video, EBCE fund asthma prevention now! Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 East Bay Clean Power Alliance
Jessica Tovar
339 15th Street #208 Oakland, CA 94612
[email protected] 415-766-7766
Subject: UPDATED w/ Signatories-Reject $15M UCSF Benioff Children's Hospital donation – We Demand EBCE Fund Asthma Prevention by Investing in a just transition for Environmental Justice Communities
June 15, 2022
Dear EBCE Board of Directors,
East Bay Clean Power Alliance writes today to urge you to reject the budget proposal by the EBCE Staff to donate $15 million of EBCE electricity customers’ funds to the UCSF Benioff Children’s Hospital to create an endowed professorship and undefined asthma program. Instead EBCE should invest that amount of money in Local Development Business Plan programs that advance equitable access to local clean energy for EBCE’s customers, directly reducing root causes and triggers of asthma. Local pollution from industrial sources1 and in-home2 are directly linked to childhood triggers and adult onset asthma in environmental justice communities.

The proposal to donate $15 million of EBCE’s net from 2021-2022, was only made available for public comment the Monday before the May 18, 2022 Board of Directors meeting. This hardly meets the “completely transparent3” process advertised on the EBCE agency’s website. The proposed donation is shockingly misdirected in terms of EBCE’s purpose as stated in the Joint Powers Agreement4, and dwarfs all prior community support donations.
4https://res.cloudinary.com/diactiwk7/image/upload/fl_sanitize,q_auto/east-bay-community-energy-implem entation-plan-1.pdf
The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Party and any other powers granted to the Authority under state law to participate as a group in the CCA Program pursuant to Public Utilities Code Section 366.2(c)(12); to …….. study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs; and, to exercise all other powers necessary and incidental to accomplishing this purpose. 3 https://ebce.org/about/
Processes and decisions are completely transparent…”
2 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7503605/ ; https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8180519/
1 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3266016/#:~:text=Exposure%20to%20indoor%20air%20p ollutants,respiratory%20disorders%20such%20as%20asthma.

Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 $15M to an already well-funded UCSF Benioff Children’s Hospital5 in Oakland to
create the, “East Bay Community Energy Asthma Program,” might sound good but it flies in the face of community calls for 40% investments in equity programs and projects6,7 that would address root causes of asthma and prevention of triggers.

Such projects like microgrids - islandable solar + storage or building decarbonization & electrification retrofits that reduce or eliminate methane gas exposure. The California Environmental Justice Alliance (CEJA), Building a Just Energy Future8, and EBCE’s own Local Development Business Plan9 are two key roadmaps for East Bay Community Energy to jumpstart a just transition for clean energy jobs and a building healthy communities.

The grant amount of $15 million could be better used to increase equitable access to programs that directly reduce pollution from fossil fuel sources that have disproportionately plagued Black, Indigenous and People of Color (BIPOC) communities in the Bay Area. Current programs such as EBCE’s Low to Moderate Building Electrification & Energy Efficiency program, could apply those funds to further support the elimination of gas-burning appliances and energy efficiency measures in homes of renters and very low income community members that are not currently represented within EBCE’s LMI program approved in early 2022.

According to EBCE’s calculation of building electrification retrofit costs, $15 million is enough to completely cover the cost for approximately 395 homes/buildings. $15M could also subsidize the solar and storage infrastructure for 60 community-owned resilience hubs that local community groups have been advocating for. Likewise, increasing funding in EBCE programs that promote the use of electrical medium and heavy duty vehicles could significantly reduce the high asthma rates in heavily burdened communities such as West Oakland.

EBCE has demonstrated its expertise in serving our communities with cleaner energy and is uniquely positioned to directly reduce the incidence of asthma within its jurisdiction by reducing fossil fuel pollution. The agency has no such expertise in biomedical research into the causes, medical prevention and treatment of asthma.

This donation seems a misdirected, vanity-driven measure merely to put EBCE’s 9 EBCE's Local Development Business Plan
8 Building a Just Energy Future; A framework for community choice aggregators to power equity and democracy in California
7 Resolution Urging 40% Equity investments in East Bay Community Energy Programs and Policies 6A Role for East Bay Community Energy in Advancing Equity for Environmental Justice 5 UCSF Benioff Children’s Hospital owned $2.3B in assets in 2019 and received $569M from generous donors in 2021.

Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 name on an important, local institution that is already financially well-endowed compared to frontline-environmental justice communities throughout Alameda County, Tracy and Stockton who do not have access to such resources. East Bay Clean Power Alliance urges the Board to reject this costly proposal and instead refocus our funds and investments back to EBCE’s original goals and local development commitment by making direct investments that address root causes and repair the harms of environmental racism within the EBCE territory of which it serves.

As board member Sophie Hahn said, “... Our money should be used for purposes more directly related to our mission, but also, how about for things that don’t have these sources of funds…” like helping people within EBCE territory transition off gas to electrification.

Sincerely,
Jessica Tovar, East Bay Clean Power Alliance
Signatory organizations:

California Nurses Association (CNA)
California Environmental Justice Alliance (CEJA-Statewide Environmental Justice) Asian Pacific Environmental Network (APEN)
Communities for a Better Environment (CBE)
Building Energy Equity and Power Coalition (BEEP-Statewide Environmental Justice) California Alliance for Community Energy (Statewide)
Californians for Energy Choice (Statewide)
SF Bay Physicians for Social Responsibility
Green the Church
SolidarityINFOService
People Organizing to Demand Environmental & Economic Rights (PODER) Codepink SF Bay Area
Green Party of Alameda County
Women's Earth Matters
Friends of the Public Bank East Bay
Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 Hermosa Beach Office
Phone: (310) 798-2400
San Diego Office
Phone: (619) 940-4522
Chatten-Brown, Carstens & Minteer LLP
2200 Pacific Coast Highway, Suite 318
Hermosa Beach, CA 90254
www.cbcearthlaw.com
Douglas Carstens
Email Address:
[email protected]
Direct Dial:
310-798-2400 Ext. 1
September 29, 2022
Via Email ([email protected])
East Bay Community Energy
Executive Committee
Board of Directors
Community Advisory Committee
1999 Harrison Street, Suite 800
Oakland, CA 94612
Re: East Bay Community Energy Budget Fiscal Year 2022-2023; $15 Million Donation of Ratepayer Funds
Dear Executive Committee Members, Board of Directors, and Community Advisory Committee Members,
On behalf of the Local Clean Energy Alliance (LCEA) and Sierra Club, we urge East Bay Community Energy (EBCE) to reject the proposal to give a $15 million gift to UCSF Benioff Children’s Hospital as the use of funds in this manner would be contrary to the purpose of EBCE and would be a gift of public funds by a public agency in violation of the California Constitution.

Assembly Bill 117 defines an ‘‘aggregator’’ as one of those entities that provides power supply services, including combining the loads of multiple end-use customers and facilitating the sale and purchase of electrical energy, transmission, and other services on behalf of the end-use customers1
.

East Bay Community Energy is a Community Choice Aggregator (CCA) formed as a joint powers agency pursuant to Public Utilities Code section 331.1. The Public Utilities Code established the following purposes for CCAs: “a community choice aggregator is hereby authorized to aggregate the electrical load of interested electricity consumers within its boundaries to reduce transaction costs to consumers, provide consumer protections, and leverage the negotiation of contracts.”2
The EBCE proposal related to UCSF Benioff Children’s Hospitals is described in the June 15, 2022 EBCE Board of Supervisors Staff Report for Item 14 as follows:
1 Assembly Bill No. 117, available at http://www.leginfo.ca.gov/pub/01-02/bill/asm/ab_0101- 0150/ab_117_bill_20020924_chaptered.pdf.
2 Pub. Util. Code, § 366.2.

Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 East Bay Community Energy Executive Committee
September 29, 2022

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The East Bay Community Energy Asthma Program
With $15 million provided over 3 to 5 years, UCSF Benioff Children’s Hospital Oakland would establish the East Bay Community Energy Asthma Program and the East Bay Community Energy Distinguished Professorship in Asthma. The program’s goal: to vastly improve access to high-quality asthma care and prevention for underserved communities in the East Bay Area.3
While improving access to health care and prevention of asthma is a laudable goal, it is not a goal that serves the limited purposes of EBCE as a community choice energy aggregator.

The expenditure of $15 million on a gift for such purposes would actually be contrary to EBCE’s primary purpose. It would divert ratepayer funds from investments in equitable energy programs and projects that are within the limited purpose of EBCE and that would also have an effect on reducing and preventing asthma in environmental justice communities by addressing the root causes of air pollution. Many of those programs referred to in the Local Development Business Plan4 would have a direct impact on reducing carbon dioxide emissions which are important triggers of asthma5. These projects include demand response, energy efficiency, microgrids, “islandable'' solar technology that will not go down during a power outage, renewable energy storage, building decarbonization, and electrification retrofits that reduce or eliminate methane gas exposure. The $15 million gift to UCSF would therefore be a prohibited gift of public funds and it would be a legal error for EBCE to give the funds and for UCSF to accept the funds.

California’s Constitution specifically prohibits “gifts” of public resources, often referred to as the ban on “gifts of public funds.” 6
This ban applies to all public agencies including EBCE
as a community choice aggregator (CCA) formed pursuant to the Public Utilities Code.7

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available at: https://res.cloudinary.com/diactiwk7/image/upload/v1654885486/Agenda_Packet_- _EBCE_BOD_061522_dqj5pc.pdf.
4 Local Development Business Plan, available at:
https://res.cloudinary.com/diactiwk7/image/upload/local-development-business-plan_final_7-12- 18_hi-res.pdf.
5 Dosanjh A. Childhood asthma and anthropogenic CO(2) emissions. J Asthma Allergy. 2011;4:103-5. doi: 10.2147/JAA.S24565. Epub 2011 Oct 10. PMID: 22034574; PMCID:

PMC3196488.
6 See Cal. Const. art. XVI, § 6: “The Legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the State, or of any county, city and county, city, township or other political corporation or subdivision of the State now existing, or that may be hereafter established, in aid of or to any person, association, or corporation, whether municipal or otherwise, or to pledge the credit thereof, in any manner whatever, for the payment of the liabilities of any individual, association, municipal or other corporation whatever; nor shall it have power to make any gift or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation whatever . . .” 7 Cal. Const. art. XVI, § 6 “applies to all other governmental entities.” Golden Gate Bridge Etc.

Dist. v. Luehring (1970) 4 Cal.App.3d 204, 207 (Golden Gate Bridge), citing County of Los Angeles v. Riley (1936) 6 Cal.2d 625, 627.

Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 East Bay Community Energy Executive Committee
September 29, 2022

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Although the California Constitution directly prohibits gifts of public funds, an exception for public purposes exists.8 However, to demonstrate public purpose, the gift must both further the purpose of the donor entity—EBCE—and of the general interest of the people within that entity—the EBCE ratepayers.9 As a special, limited purpose entity with its purpose and powers limited by statute and its joint power agreement, EBCE cannot demonstrate a public purpose for the proposed gift to UCSF and thus the gift would be prohibited by law.

Special or limited purpose entities, including joint powers authorities such as EBCE, do not have broad public purposes in the way that other entities such as cities and counties do; CCAs cannot undertake many kinds of activities in furtherance of the general welfare of their citizens. Therefore, as a limited purpose agency, EBCE “can have no interest other than furtherance in some way of the purpose for which it was created.”10 Any gifts by EBCE would violate the California Constitution unless the expenditure falls within the specifically enumerated powers and purposes of that particular type of district—in this case, as defined by the Public Utilities Code and Joint Powers Authority.

EBCE cannot show that the gift was made in furtherance of the purpose for which the agency was created or, in other words, that it “would use the funds for purposes for which [the agency] itself could have used them.”11 EBCE’s purpose is limited to activities relating to securing energy supply, reducing GHG emissions, promoting rate price stability, and fostering local economic benefits relating to energy and power development.12 EBCE does not appear to have any purpose authorized by the Public Utilities Code or in its joint powers agreement to provide for medical care or to conduct any medical research. EBCE certainly could not provide medical care or conduct medical research on its own behalf.

While we are extremely supportive of the need to support underserved communities from the harms associated with air pollution and other environmental burdens that these communities disproportionately bear, we believe the best, most direct way for EBCE to achieve this outcome is to apply ratepayer funds towards clean energy programs and projects, as it is charged to do. Not only would the gift fail to further EBCE’s purpose, it would actually be contrary to its purpose as an energy services supplier. The gift would be prohibited by law and thus EBCE and UCSF should cease expending resources on pursuing an agreement for such a prohibited gift of public funds.
8 City and County of San Francisco v. Patterson (1988) 202 Cal.App.3d 95, 103, citing California Housing Finance Agency v. Elliott (1976) 17 Cal.3d 575, 583; County of Alameda v.

Carleson (1971) 5 Cal.3d 730, 745, app. dism. sub nom. County of Alameda v. California Welfare Rights Organization (1972) 406 U.S. 913.
9 Golden Gate Bridge, supra, 4 Cal.App.3d 204, 209.
10 Id. at p. 210.
11 Golden Gate Bridge, supra, 4 Cal.App.3d 204, 208.
12 EBCE Joint Powers Agreement, p. 1.

Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4 East Bay Community Energy Executive Committee
September 29, 2022

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Thank you for your consideration.

Sincerely,
Douglas Carstens
Sunjana Supekar
Chatten-Brown, Carstens & Minteer
Public Comment recieved for the June 21, 2023 EBCE Board of Directors MeetingLetter #4

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