Draft Minutes
Board of Directors Meeting
Wednesday, April 16, 2025
6:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison St
Suite 2300
Oakland CA 94612
Or from the following locations:
• Albany Community Center - 1249 Marin Ave, Albany, CA 94706 • Dublin City Hall - 100 Civic Plaza, Dublin, CA 94568
• Clipper Club - 5 Captain Dr. Emeryville, CA 94608
• Milk and Honey Cafe, 34265 Fremont Blvd, Fremont, CA 94555 • 35653 Scarborough Dr. Newark CA 94560
• 1100 Webster St Oakland CA 94607
• San Joaquin County Administration Building, 44 N. San Joaquin Street Room 145, 1st floor, Stockton, CA 95202
• 1755 Harvest Landing Ln., Tracy, CA 95376
Via Zoom:
https://ebce-org.zoom.us/j/87023071843
Or join by phone:
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].
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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.
Councilmember Blower was sworn in as the Alternate Member for the City of Stockton.
1. (3:09) Welcome & Roll Call
Present: Members: Marquez (Alameda County), Lopez (Albany), Tregub (Berkeley), Hu (Dublin), Kaur (Emeryville), Keng (Fremont), Roche (Hayward), Del Catancio (Newark), Brown (Oakland), Rickman (San Joaquin County), Gonzalez (San Leandro), Blower (Stockton), Nygard (Tracy), Sakakihara (Union City), CAC Chair Hernandez (Community Advisory Committee), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton) Not Present: Members: Diallo (Lathrop) and Barrientos (Livermore) Please note that Director Hu served as the alternate for Director Morada (Dublin), and Director Blower served as the alternate for Director Fugazi (Stockton).
2. (4:00) Pledge of Allegiance
Member Blower led the body in reciting the Pledge of Allegiance.
3. Public Comment
This item is reserved for persons wishing to address the Board on any Ava-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. (6:51) Public Comment – Mary Elizabeth, a Stockton resident, urged Ava to avoid procuring energy from biomass sources, citing significant air pollution impacts from a biomass plant in Stockton.
CONSENT AGENDA
4. (7:59) Approval of Minutes from March 19, 2025
5. Contracts Entered Into (Informational Item)
6. Pivotal Agreement Amendment
Agreement amendment to account for recruiting budget to fill open roles and to prepare for filling roles next fiscal year.
Member Tregub motioned to approve the Consent Agenda. Member Gonzalez seconded the motion, which was approved 14/0/0/0/4:
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Yes: Members: Marquez, Lopez, Tregub, Hu, Kaur, Roche, Del Catancio, Brown, Rickman, Gonzales, Blower, Nygard, Vice-Chair Andersen and Chair Balch No: None
Abstain: None
Recuse: None
Not Present: Members Keng, Diallo, Barrientos and Sakakihara
REGULAR AGENDA
7. (9:49) CEO Report
CEO Chang provided updates on committee scheduling changes, including the cancellation and rescheduling of the Executive Committee and Marketing, Regulatory and Legislative Subcommittees, and confirmed the new dates for the Finance, Administration, and Procurement Subcommittee.
CEO Chang highlighted a volunteer event at the Habitat for Humanity Sequoia Grove site in Hayward, celebrating Ava's sponsorship of an all-electric, low-income housing project, with participation from directors and staff from federal and state legislative offices. Ava also launched its Smart Home Charging Program, a residential EV managed charging initiative, targeting 10,000 vehicles with incentives for off-peak charging and already nearing 1,000 enrollments. CEO Chang confirmed the successful phased enrollment of 120,000 customers in Stockton and Lathrop, with opt-out rates under 5%.
Additional updates included Ava’s support of the public-private Velo EV education initiative, which recently received a $43.5 million grant from Electrify America, and the hiring of Sam Sadle as Principal Legislative Manager. The report concluded with an overview of upcoming community events.
8. (17:35) CAC Report
CAC Chair Hernandez reported that the CAC had recommended approval of the power resources contract under discussion and received a detailed legislative update. The CAC requested that environmental justice be explicitly included in Ava's categories of legislative interest.
The CAC voted 7-2 with one abstention to oppose supporting the SB540 letter. CAC Chair Hernandez also mentioned that the CAC's Energy Affordability ad hoc committee would be presenting next month on energy affordability issues.
9. (20:38) Prepay Financing (Informational Item)
Review Prepay Financing background and discuss the planning for additional prepay financing transactions
CFO Russell Mills presented on prepaid financing, a structure that allows Ava to use tax-exempt debt to prepay for electricity at a discount (typically 8-12%), resulting in cumulative savings of almost $22 million through the end of 2024. Ava is considering Ava Community Energy
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issuing one or possibly two prepaid transactions in 2025, each approximately $1 billion in size, with potential board approval sought in May or June followed by possible market entry in late June or early July.
Selected topics discussed by the Board of Directors include:
• Board members requested more detailed briefings, or a possible board-wide workshop, on prepaid financing before approving future transactions. • Clarification about the energy contacts underlying the prepaid financing. • Request to combine an informational item about prepay financing with the action item, if timing is critical.
.
10.(32:18) Accelerating Renewable Procurement (Informational Item) Presentation and discussion about trade-offs associated with accelerating Board-approved clean energy procurement schedule The presentation on accelerating renewable procurement, delivered by the Marie Fontenot, Senior Vice President of Power Resources and Arne Olson, Senior Partner at Energy and Environmental Economics (E3), outlined Ava's current trajectory toward a zero-emission portfolio by 2030 and analyzed the costs and risks of moving faster. (1:39:37) Public Comment – Jim Lutz suggested that Ava consider adjusting its zero-emission goal to account for the shift to 24/7 hourly emissions reporting, and spoke about the importance of maintaining ambitious targets given California’s historic leadership in driving renewable energy markets.
11.(1:50:17) Power Resources Contracts for Approval (Action Item) Request approval of multiple long-term offtake agreements:
(1)Thermal RA,
(2) Battery RA,
(3) EEI financial settlement,
(4) ISDA financial settlement
Marie Fontenot, Senior Vice President, Power Resources, presented a package of four power resource transactions with Middle River Power, including long-term resource adequacy contracts and financial hedge agreements tied to an existing natural gas plant and planned battery storage facility in Tracy. The proposed deals aim to enhance grid reliability and mitigate market volatility without procuring actual energy from the plant, while also incorporating environmental measures such as reduced emissions and data transparency commitments.
Selected topics discussed by the Board of Directors include:
• The distinction between purchasing resource adequacy (RA) as a compliance product and procuring actual electricity;
• The emissions profile of the Tracy plant and how the addition of battery storage would reduce nitrogen dioxide and carbon dioxide emissions; Ava Community Energy
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• How specific the contract would be in requiring Middle River Power to provide data and notifications to air quality agencies and impacted communities; • The state’s requirement for thermal RA and the value of hybridizing the site with battery storage.
There were no public comments for this item.
Member Gonzalez motioned to approve staff’s recommendation. Member Roche seconded the motion, which was approved 14/0/0/0/4 (yes/no/abstain/recuse/not present)
Yes: Members Marquez, Lopez, Tregub, Kaur, Roche, Del Catancio, Brown, Rickman, Gonzalez, Blower, Nygard, Sakakihara, Vice Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members Hu, Keng, Diallo and Barrientos
12.(2:17:30) Legislative Update (Informational Item)
Receive an update on Ava’s Legislative Program document.
Todd Edmister, Senior Director of Public Policy, and Sam Sable, Principal Legislative Manager, provided an overview of Ava’s legislative tracking efforts, noting that approximately 100 bills are being monitored, with 24 prioritized for potential board positions in May. The presentation highlighted key legislative themes—such as affordability, decarbonization, battery storage safety, and bill transparency—and reviewed proposed updates to Ava’s legislative program.
Selected topics discussed by Board members include
• How and when Ava would finalize legislative positions; • Whether legislative bills are vetted through Ava’s technical advisory committee or with city staff;
• Additional bills for staff to consider, including SB 332 (successor to SB 350), SB 453 (SHIP program), SB 500 (performance-based regulation), and AB 942 (NEM contract term reduction),
• How Ava's legislative platform is organized—specifically, how staff categorize bills under guiding principles such as affordability or decarbonization • Customer confusion over electric bills and rising costs remain top concerns, and appreciation for the addition of bill transparency and affordability as legislative priorities.
(2:41:45) Public Comment – Ayla Peters Paz urged Ava to support implementation of SB 350, which would replace PG&E with a not-for-profit utility if it fails to meet infrastructure and reliability standards, and SB 1142, which strengthens shutoff protections for low-income customers with delinquent bills.
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13.(2:48:52) SB 540 Pathways – Support Letter Approval (Action Item) Request approval for bill position.
Todd Edmister and Sam Sadle presented SB 540 as legislation that would enable California to participate in a regional energy market by allowing the California ISO to shift its energy market rule-setting function to an independent regional organization, while maintaining California's renewable energy and environmental standards.
Selected topics discussed by the Board of Directors include:
• Concern about giving more direct control to FERC under the Trump administration and the risk of federal action against California's clean energy goals • Questions about the bill's language that could eliminate California's PU Code 345.5B protections and environmental standards
• The lack of case law regarding California's ability to withdraw from the regional organization and potential costs of exit
• Whether joining a regional market would bring coal power into California and increase greenhouse gas emissions versus maintaining current clean energy standards
• Whether promised cost savings would materialize and if transmission costs can offset any production savings
• Questions about California losing sovereignty over energy decisions and market rules
Public Comment:
The majority of public commenters opposed SB 540, citing concerns about California losing control over its energy markets, the potential for increased coal power and emissions undermining state climate goals, and the loss of local jobs.
Michael Coven, representing the Environmental Defense Fund was the sole supporter.
He argued that the bill would advance clean energy goals and provide economic benefits through market expansion.
(3:42:07) Jessica Tovar
(3:44:19) Ayla Peters Paz
(3:46:27) Heather MacLeod
(3:48:32) Dave Shukla
(3:50:46) Cynthia Landry
(3:53:07) Jennifer Tanner
(3:55:19) Anne Harvey
(3:57:21) Michael Coven
(3:59:35) Beth Weinberger
(4:00:16) Karen Moore
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Member Roche motioned to approve the SB 540 support letter. Member Gonzalez seconded the motion, which failed 5/9/1/0/2 (yes/no/abstain/recuse/not present):
Yes: Members Hu, Roche, Gonzalez, Vice-Chair Andersen and Chair Balch No: Members Marquez, Lopez, Keng, Del Catancio, Brown, Rickman, Blower, Nygard and Sakakihara
Abstain: Member Tregub
Recuse: none
Not Present: Members Diallo and Barrientos
14.(4:30:39) Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas
• Chair Balch reminded members that Ava's budget process will go through subcommittees in May and return to the full board in June • Vice-Chair Andersen extended an invitation to attend Piedmont’s Food Fest (https://www.piedmontfoodfest.org/) on Saturday, April 19., 2025.
15.Adjourned at 10:35pm.
The next Ava Board of Directors meeting will be held on Wednesday, May 21, 2025 at 6pm. Please note the new location:
Conference Room 5
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612