Operations Board of Directors
Wednesday, January 12, 2022
10:30 AM
Presentation
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
IMPORTANT NOTICE REGARDING COVID-19 MEETING REQUIREMENTS The special procedures in place to minimize the spread of the COVID-19 virus may supersede general meeting procedures and delay distribution of materials to members, although every effort will be made to ensure comments and materials received prior to the meeting end will be made part of the record.
Based on guidance from the California Department of Public Health and the California Governor’s Office, in order to minimize the spread of the COVID-19 virus, please do the following:
1. You are strongly encouraged to observe the live stream of the CCCE Operations Board of Directors meeting at: https://3cenergy.hylandcloud.com/203agendaonline/Meetings/Search?dropid=4
2. The CCCE Board Room remains open. If you attend the CCCE Operations Board of Directors meeting in person:
a. You will be required to (i) wear a mask during the meeting and (ii) maintain appropriate social distancing, i.e., maintain a 6-foot distance between yourself and other individuals. b. Additional seating with audio of the CCCE Operations Board of Directors meeting will be available in the CCCE Main Conference Room, located at 70 Garden Court, Suite 300, Monterey, CA 93940. 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 Heather Vowell, Board Clerk, at 831-641-7216 or [email protected]. Requests should be made as soon as possible but at least 72 hours prior to the scheduled meeting.
3. If you choose not to attend the CCCE Operations Board of Directors meeting but wish to make a comment on a specific agenda item, you may please submit your comment as set out below. The timing of public comment shall be at the discretion of the Chair. Options for public comment are as follows:
a. To have your comments distributed to the Board prior to the meeting submit your comment via email by 5:00 p.m. on the Tuesday before the meeting. All comments received after 5:00pm on the Tuesday before the meeting will be retained as part of the record and distributed to the Board after the meeting. Please submit your comment to the Clerk of the Board at [email protected]. To assist the Clerk in identifying the agenda item relating to your public comment please indicate in the Subject Line, the meeting body (i.e., Policy Board Agenda) and item number (i.e., Item No. 3)
You may participate through ZOOM. For ZOOM participation please join by computer audio at:
https://us02web.zoom.us/s/82380649701
Or join by phone:
Dial for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 823 8064 9701 when prompted. Please note there is no Participant Code, you will just hit # again after the recording prompts you.
You will be placed in the meeting as an attendee; when you are ready to make a public comment if joined by computer audio please Raise your Hand; and by phone please push *9 on your keypad.
If you have anything that you wish to be distributed to the Board please provide 15 copies and hand them to a member of CCCE staff or Heather Vowell, Board Clerk, who will distribute the information to the Board members and other staff.
The public may comment on a specific item listed on this agenda when the Board considers that item. In addition, the members of the public may request and receive copies without undue delay of any documents that are distributed to the Board, unless there is a specific exemption under the Public Records Act that prevents the disclosure of the record. (Cal. Gov’t Code Section 54957.5) In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Board in advance of a meeting and that relate to an agenda item will be made available at CCCE’s offices located at 70 Garden Court, Suite 300, Monterey, CA 93940 during normal business hours and are also available on the CCCE website located at:
https://3cenergy.hylandcloud.com/203agendaonline
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AGENDA - Amended January 6, 2022
Welcome & Roll Call
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any item within the Board's jurisdiction but not on the Agenda.
The Board may not take action at this meeting on any item not listed on the Agenda other than to refer the matter to staff or set it for a future meeting. Speakers are limited to 3 minutes each. The public may comment on Open Session items during this agenda item and Closed Session items prior to the Board's recess to Closed Session.
Corrections and Additions
The Board Clerk will announce agenda corrections and proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Sections 54954.2 of the California Government Code.
CONSENT AGENDA
1. Approve Minutes from the December 16, 2021 Meeting of the Operations Board (Action Item)
2. Approve Payment of $39,010.70 to Hall Energy Law, PC for Additional Legal Services Incurred in FY 20-21 Extending Beyond the Contractual Not to Exceed Cap of $150,000 Per Fiscal Year (Action Item)
3. Approve (1) Amended and Restated Legal Services Agreement with Meyers Nave Riback Silver LLP for Litigation and Pre-Litigation Support in the Amount Not to Exceed $500,000 (2) Approve and Authorize the Chief Executive Officer to Execute Up To Three Future Amendments that do not Significantly Alter the Scope of Work and Do Not Cause an Increase of more than $50,000 each (Action Item)
4. Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item)
5. Treasurer's Report (Information Only)
REGULAR AGENDA
6. Community Advisory Council Report (Discussion Item)
7. CEO's Report (Discussion Item)
(a) Human Resources Update
(b) Power Supply Update
(c) Rate Period CY 2022 - 2024 Rate Adjustment Approval (d) 2021 Enrollment Update
(e) Energy Programs Update
8. Receive Update Regarding Member Agency Medium and Heavy-Duty Electric Vehicle Program (Discussion Item)
Board Member Reports & Comments (Information Only)
Adjournment
Operations Board of Directors
Thursday, December 16, 2021
10:30 AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
MINUTES
The meeting was called to order at 10:33 a.m. with 9 members via teleconference pursuant to AB 361 and quorum established.
Directors Present: Bronson, Pia, Dettle, Vides, Johnson, Rerig, Stilwell, Vice Chair Goldstein, Chair Palacios
Directors Absent: Blair, Bodem, Durflinger, Espinosa, Mendez, McKee, Miller, Miyasato The Chair opened the public comment period for items not listed on the agenda.
No public comment received.
The Chair closed the public comment period.
The Clerk announced that there were no corrections or additions to the agenda.
CONSENT AGENDA
The Chair opened the public comment period.
No public comment received.
The Chair closed the public comment period.
MOTION: Moved by Director Johnson seconded by Director Bronson to approve the Consent Agenda.
ACTION: The motion carried with a voice vote: 9/0/8
1. Approved Minutes from the November 10, 2021 Meeting of the Operations Board as submitted
REGULAR AGENDA
2. Approved; Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies
The Chair opened the public comment period.
No public comment received.
The Chair closed public comment period.
MOTION: Moved by Director Johnson, seconded by Director McKee to approve ACTION: The motion carried with a roll call vote: 11/0/6 AYES: Bronson, Pia, Dettle, Vides, Johnson, McKee (arrived at 10:36am), Miyasato (arrived at 10:36am), Rerig, Stilwell, Vice Chair Goldstein, Chair Palacios NOES: None
ABSENT: Blair, Bodem, Durflinger, Espinosa, Mendez, Miller Meeting was adjourned at 10:38 a.m.
Staff Report Item 2
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve Payment of $39,010.70 to Hall Energy Law, PC for Additional Legal Services Incurred in FY 20-21 Extending Beyond the Contractual Not to Exceed Cap of $150,000 Per Fiscal Year (Action Item)
DATE: January 12, 2022
RECOMMENDATION:
This recommends the Operations Board of Directors approve payment of $39,010.70 to Hall Energy Law, PC, for additional legal services that were incurred in FY 20-21 but billed in FY 21-22. The $39,010.70 reflects services incurred pursuant to the Legal Services Agreement with Hall Energy Law, but more than the contractual not to exceed cap of $150,000.
BACKGROUND:
CCCE engaged Hall Energy Law, PC under various agreements since 2019 for specialized legal services to support the negotiation of power and related product negotiations, energy supply agreements, coordinated operations agreements, and the administration and implementation of CCCE’s long-term power purchase sale agreements (the “Agreement”).
At its September 2020 meeting, the Operations Board approved a new engagement with Hall Energy Law, PC with a not to exceed cap of $150,000 per fiscal year.
DISCUSSION/ANALYSIS:
During Fiscal Year 20-21, CCCE Hall Energy Law, PC supported several unplanned procurement negotiations and contract administration needs fueled primarily by the impacts related to the global supply chain disruptions and permitting delays. Moreover, the development a Coordinated Operations Agreement with Silicon Valley Clean Energy was more extensive than anticipated and required more intensive counsel involvement.
The current Agreement establishes a not to exceed cap of $150,000 per fiscal year, but also enables the parties to agree to additional services above the cap. Here, while services were provided in FY 20-21, CCCE was not invoiced for the $39,010.70 above the contractual not to exceed cap until after FY 21-22.
FISCAL IMPACT:
The Board’s approval to pay $39,010.70 will be booked in FY 21-22 and deducted from Hall Energy Law’s budgeted annual $150,000 not to exceed cap. Staff will monitor legal services necessary to support the Front of the Meter Energy Storage effort and CCCE’s continued energy procurement needs.
CONCLUSION:
The Board’s approval and direction enables CCCE to pay the $39,010.70 incurred in FY 20-21 above the contractual not to exceed cap.
ATTACHMENT(S):
1. Hall Energy Law Engagement Agreement
Hall Energy Law PC | www.hallenergylaw.com | 3 Monroe Pkwy. Ste. P #406, Lake Oswego, OR 97035
HALL ENERGY LAW PC
Stephen Hall | 503-313-0755 | [email protected]
November 20, 2020
VIA EMAIL
Central Coast Community Energy
Attention: Tom Habashi
70 Garden Court #300
Monterey, CA 93940
Re: Representation of Central Coast Community Energy
Dear Tom:
We are pleased that you have requested Hall Energy Law PC (the “Firm”) to continue providing legal services to Central Coast Community Energy, (formerly, Monterey Bay Community Power Authority ) and we thank you for the opportunity to be of assistance.
This engagement letter (the “Agreement”) sets forth the scope of our engagement, the financial terms of our engagement, and all other aspects of this engagement, as follows:
1. Scope of Engagement. By means of this Agreement, 3CE is engaging the Firm to continue to provide legal services in connection with 3CE’s procurement of energy, renewable energy and related products, including but not limited to the review, drafting, revision, negotiation, and finalization of, or amendments to, (i) EEI Master Agreements and Cover Sheets, amendments to the WSPP agreement, confirmations and any supporting credit documentation such as parent guarantees and letters of credit (collectively, the “Energy Supply Agreements”), (ii) deposit account control agreements, intercreditor and collateral agency agreements, and security agreements entered into by 3CE (the “Lockbox Agreements”), (iii) development of a Coordinated Operations Agreement (“COA”) for administration and implementation of long-term power purchase and sale agreements (“PPAs”), and (iv) follow-on support in connection with the PPAs already acquired, and additional negotiations, if any, and (v) procurement of additional renewable energy and miscellaneous legal advice and analysis, including but not limited to, advice related to any potential bankruptcy by Pacific Gas & Electric, or services related to any of the foregoing (“Other Services”). The Firm and MBCP acknowledge and anticipate that 3CE may, from time to time, engage in Joint RFO proceedings with other CCAs. The legal services relating to the Energy Supply Agreements, the Lockbox Agreements, Additional Follow-Up, and the Other Services are collectively referred to below as the “Engagement.”
2. Term. The term of this Agreement shall commence as of October 1, 2020 and shall continue indefinitely and at least until the completion of the case(s) or matter(s) assigned by CCA to FIRM hereunder, unless earlier terminated as set forth herein (the “Term”), or until terminated DocuSign Envelope ID: CE35727D-C5ED-473E-9F3B-E84C0EFC81DF
Monterey Bay Community Power Authority
November 20, 2020
2 | P a g e
by either party by providing thirty (30) days’ written notice of its intent to terminate this Agreement, subject to payment of any amounts owed for services previously rendered and, if requested by 3CE, completion of any partially completed projects.
3. Fees and Hourly Rates. Our billing practice is to charge for our legal services, based primarily on the amount of time, including travel time, devoted to a matter at hourly rates for the particular professionals involved. These hourly rates are based upon these professionals’ experience, expertise, and standing. I will be the attorney responsible for the performance of the Engagement and my hourly rate for this work is $595/hr. Where appropriate, I may use junior attorneys on this Engagement and the hourly rates for their work would typically range from $375- $540/hr. These rates are modified by the Firm from time to time, and any new rates would be implemented on a prospective basis and would apply only to legal services rendered after the effective date of the new rates.
The Firm and 3CE agree that 3CE will be responsible for only a portion of the costs for legal services related to Joint RFO procurement efforts, the allocation of which will be determined and agreed to in writing before commencement of new work relating to the Joint RFO procurement efforts between the Joint RFO members. Notwithstanding the foregoing, existing arrangements between the Joint RFO members for allocation of costs for ongoing work that was commenced prior to, and which is still in progress as of, October 1, 2020 will remain in place, unless subsequently amended by the Joint RFO members in writing, and with notice to the Firm.
The total amount of legal services for the Engagement for the Term shall not exceed one hundred and fifty thousand dollars ($150,000.00) per fiscal year (the “NTE Cap”) without the written approval of 3CE, it being understood by 3CE that the NTE Cap does not necessarily represent the total fees to complete all of the matters in the Engagement because of the nature of such projects. 3CE will not be responsible for any fees incurred in excess of the NTE Cap unless expressly authorized by 3CE in writing. If additional legal services are required that extend beyond the NTE Cap, 3CE and the Firm shall agree in writing to the scope and cost of such additional services.
We believe that our hourly rates are comparable with the rates charged for the same kinds of work by lawyers and other professionals of similar experience, expertise and standing. We try to use associate and paralegal support on projects where appropriate, and we will be happy to discuss the staffing of 3CE’s project with you.
We will charge for all activities undertaken in providing legal services to 3CE under this Agreement, including but not limited to the following: conferences, including preparation and participation; preparation and review of correspondence and other documents; legal research; court and other appearances; including preparation and participation; and telephone calls, including calls with you, other attorneys or persons involved with this matter, and governmental agencies. The legal personnel assigned to 3CE’s matter will confer among themselves about the matter, as required. When they do confer, each person will charge for the time expended. Likewise, if more than one of our legal personnel attends a meeting, court hearing or other proceeding, each will charge for the time spent. We will charge for travel time, both local and out of town.
DocuSign Envelope ID: CE35727D-C5ED-473E-9F3B-E84C0EFC81DF
Monterey Bay Community Power Authority
November 20, 2020
3 | P a g e
4. Additional Services and Outside Expenditures. If our legal representation requires additional services provided by vendors, we will obtain your advance approval before incurring any such additional services on 3CE’s behalf. 3CE will be required either to pay for these outside additional services directly, or to reimburse us if we make payment for these services on 3CE’s behalf. We sometimes will make payment for, and then bill 3CE for reimbursement of smaller items such as filing fees, photocopying by outside copying services, electronic discovery services, recording fees, messenger services, service of process, and court fees. When there are substantial expenditures involving vendors (such as for discovery management, document production, depositions, expert witnesses, exhibit preparation, or air fare) or substantial out-of-pocket expenditures (such as extended field expenses, large outside copying jobs, or jury fees), we will require either that 3CE pay those sums to us before we expend them, that 3CE provide an advance deposit for such expenditures, or that 3CE directly contract with and pay the vendor. 3CE will not be billed for any internal Firm costs incurred on 3CE’s behalf, such as telephone (including long distance charges), telecopy charges, word processing, secretarial overtime, firm couriers, postage (including FedEx, UPS or similar overnight delivery services), printing and photocopying performed in-house.
5. Monthly Statements and Payment Terms. Our practice will be to send a monthly statement of our charges for legal services and for reimbursement of payments made on our client’s behalf for outside additional services. The detail in the monthly statement will inform 3CE of the nature and progress of our work and of the charges and expenditures being incurred.
Unless otherwise agreed, each monthly statement is fully due and payable upon receipt, but in no event later than thirty (30) days after its issuance date.
We specifically reserve the right to withdraw from representation of 3CE and to cease performing immediately all services if we do not receive full payment of any amounts owed to us within forty-five (45) days of any statement.
6. Withdrawal From Representation. The attorney-client relationship is one of mutual trust and confidence. If you have any questions at all about the provisions of this Agreement, we invite your inquiries. We encourage our clients to inquire about any matter relating to our engagement agreements or monthly statements which may be in any way unclear or appear unsatisfactory. If 3CE does not meet its obligation of timely payments or deposits under this Agreement, we reserve the right to withdraw from 3CE’s representation on that basis alone, subject of course to any required judicial, administrative, or other approvals.
This Agreement is also subject to termination by either party upon reasonable notice for any reason. If there were to be such a termination, however, 3CE would remain liable for all unpaid charges for services provided and expenditures advanced or incurred.
7. Duties Upon Termination of Active Representation. Upon termination of our active involvement in a particular matter for which we had previously been engaged, we will have no further duty to inform you of future developments or changes in law which may be relevant to such matter in which our representation has terminated. Further, unless 3CE and the Firm agree in writing to the contrary, we will have no obligation to monitor renewal or notice dates or similar deadlines which may arise from the matters for which we had been engaged. If 3CE’s matter DocuSign Envelope ID: CE35727D-C5ED-473E-9F3B-E84C0EFC81DF
Monterey Bay Community Power Authority
November 20, 2020
4 | P a g e
involves obtaining a judgment and such judgment is obtained, we will only be responsible for those post judgment services (such as recording abstracts, filing judgment liens, and calendaring renewals of judgments) as are expressly agreed to by 3CE and the Firm in writing and for which 3CE will be obligated to pay.
8. Document Storage Policies. The Firm’s policy with regard to documents and other materials at the conclusion of a matter is to maintain them in storage for a period of no more than ten (10) years. All documents and other materials in our file will then be destroyed or discarded without notice to 3CE. Accordingly, if there are any documents or other materials 3CE wish to have retrieved from 3CE’s file at the conclusion of a matter, it will be necessary for 3CE to advise us of that request to ensure that they are not destroyed.
9. Consent to Electronic Communications. In order to maximize efficiency in this matter, we intend to use state of the art communications devices to the fullest extent possible (e.g., Email, document transfer by computer, cellular telephones, and facsimile transfers). The use of such devices under current technology may place 3CE’s confidences and privileges at risk. However, we believe the effectiveness involved in use of these devices outweighs the risk of accidental disclosure. By signing this letter, you acknowledge your consent to the use of these devices.
10. Disclaimer of Guarantee. Nothing in this Agreement should be construed as a promise or guarantee about the outcome of any matter which we are handling on 3CE’s behalf. Our comments about the outcome of 3CE’s matter are expressions of opinion only.
If we should provide you with an estimate of the fees and costs which may be incurred in connection with our representation of 3CE, it is important that you understand and acknowledge that any such estimate is merely an estimate based on numerous assumptions which may or may not prove to be correct and that any estimate is not a guarantee or agreement of what the maximum amount of fees and/or costs will be.
11. Future Matters. Unless otherwise agreed in writing between us, all other matters referred to us for representation shall be governed by the terms of this Agreement.
12. Entire Agreement. This Agreement contains all terms of the agreement between us applicable to our representation of 3CE, and may not be modified except by a written agreement signed by both of us.
13. Future Conflict. Our undertaking to represent 3CE in the above matters will not act as a barso asto prevent usfrom representing any existing orfuture client with respect to a claim, litigation or transaction adverse to 3CE, so long as in the course of our representation of 3CE we have not obtained any information that would be adverse to 3CE’s interests with respect to such claim, litigation or transaction.
14. Client. The Firm’s clients for the purpose of our representation are only the persons and entities identified in this Agreement. Unless expressly agreed, we are not undertaking the representation of any related or affiliated person or entity, nor any of their shareholders, partners, officers, directors, agents, or employees.
DocuSign Envelope ID: CE35727D-C5ED-473E-9F3B-E84C0EFC81DF
Monterey Bay Community Power Authority
November 20, 2020
5 | P a g e
If this Agreement correctly sets forth your understanding of the scope of the services to be rendered to 3CE by the Firm and if all of the terms set forth in this Agreement are satisfactory, then please sign this Agreement and return it to me so that we will be engaged as 3CE’s legal counsel. If the scope of services described is incorrect, or if the terms set forth are not satisfactory to you, please let us know in order that we can discuss either aspect.
I look forward to continuing to work with you and thank you once again for the opportunity to be of service.
Sincerely,
Stephen Hall
Principal
I have read and understand the contents of this Agreement and consent to the Firm representing 3CE on the terms set forth in this Agreement.
CENTRAL COAST COMMUNITY
ENERGY (formerly, MONTEREY BAY
COMMUNITY POWER AUTHORITY), a
California joint powers authority
Dated: ________________, 2020 By:
Name: Tom Habashi
Title: CEO
Approve as to financial terms:
Dated: ________________, 2020 By:
Name: Tiffany Law
Title: CFTO
Approve as to form:
Dated: ________________, 2020 By:
Name: Robert M. Shaw
Title: COO/GC
DocuSign Envelope ID: CE35727D-C5ED-473E-9F3B-E84C0EFC81DF 11/21/2020
11/21/2020
11/21/2020
Staff Report Item 3
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve (1) Amended and Restated Legal Services Agreement with Meyers Nave Riback Silver LLP for Litigation and Pre-Litigation Support in the Amount Not to Exceed $500,000 (2) Approve and Authorize the Chief Executive Officer to Execute Up To Three Future Amendments that do not Significantly Alter the Scope of Work and Do Not Cause an Increase of more than $50,000 each (Action Item)
DATE: January 12, 2022
RECOMMENDATION:
This recommends the Operations Board of Directors approve an Amended and Restated Legal Services Agreement (“Legal Services Agreement”) with Meyers Nave Riback Silver LLC (Meyers Nave) for litigation and pre-litigation support for various matters in an amount not to exceed $500,000.
This further recommends the Board authorize the Chief Executive Officer to execute up to three additional amendments which do not significantly alter the scope of services or increase the not to exceed amount by more than $50,000 each.
BACKGROUND:
CCCE engaged Meyers Nave in June 2021 for pre-litigation support for various matters under an agreement with an indefinite term and a not to exceed amount of $100,000 per fiscal year.
DISCUSSION/ANALYSIS:
Meyers Nave, through Deborah Fox, has supported CCCE’s staff to address matters of significant importance, including claims related to rate setting and disputes arising from agreements for resource adequacy and other energy products.
CCCE anticipates the need for litigation support to increase in FY 2021-22 as matters progress through civil discovery and record review toward trial.
FISCAL IMPACT:
The anticipated costs for FY 2021-22 are approximately $350,000 are included in the FY 2021-22 Adopted Budget. Additional fiscal year costs will be allocated as part of future budget approvals.
CONCLUSION:
The Board’s approval of the amended and restated engagement enables Meyers Nave to further support CCCE in significant pre-litigation and litigation matters.
ATTACHMENT(S):
1. June 2021 Meyers Nave Engagement (redacted)
2. Meyers Nave Restated Legal Services Agreement
1999 Harrison Street, 9th Floor
Oakland, California 94612
tel (510) 808-2000
fax (510) 444-1108
www.meyersnave.com
Deborah J. Fox
Attorney at Law
[email protected]
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO January 5, 2022
Via Electronic Mail
Robert M. Shaw
COO and General Counsel
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, California 93940
E-Mail: [email protected]
Re: Restated Legal Services Agreement
Dear Mr. Shaw:
Thank you for retaining Meyers Nave (“Meyers Nave” or “the Firm”) to perform legal services in connection with Central Coast Community Energy (“3ce” or “the Client”). We appreciate the opportunity to serve as your lawyers and look forward to working with you.
This letter provides out Restated Legal Services Agreement concerning the legal services we will provide and our fee arrangements for those services. Please read this entire agreement before signing and returning it to us.
1. Scope of Engagement. We will provide the legal services reasonably required to represent and advise you in connection with the administrative process and any resulting litigation related to 3ce’s rate setting along with potential energy products litigation and/or transactional issues. By written acknowledgment Meyers Nave can provide additional legal services for additional matters that you request of us, provided we agree to perform that additional work.
2. Fees and Personnel. As compensation for our services, our fees will be based on our current standard billing rate for the personnel performing services under this agreement at the time such services are rendered. The total amount of fees and costs incurred for legal services under this Agreement shall not exceed $500,000 (“the NTE Cap”) without the written approval of Client, it being understood by Client that the NTE Cap does not necessarily represent the total fees to complete all of the matters under the Agreement because of the nature of such projects. Our standard billing rates for attorneys and paralegals are attached as Attachment 1.
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO I will be the principal in charge of representing your interests. This agreement retains the legal services of our law firm and not of a particular attorney. Hourly rates are subject to reasonable change, usually at the beginning of each year.
3. Retainer. The Firm will not require a retainer to commence services related to this matter. However, the Firm reserves the right to require a retainer in the future if it determines that circumstances warrant.
4. Disbursements and Expenses. In addition to hourly fees, we may incur out-of-pocket expenses related to your representation. Our Statement of Fee and Billing Information, which sets forth the details of our disbursement and expense policy, is attached as Attachment 2.
5. Billing and Payment Responsibilities. We will send monthly statements which are due within 30 days of receipt. If you have any questions about an invoice, please promptly telephone or write me so that we may discuss these matters. Our Statement of Fee and Billing Information sets forth the details of our fee and billing policy.
6. Termination of Services. You may terminate our services at any time by written notice. After receiving such notice, we will cease providing services. We will cooperate with you in the orderly transfer of all related files and records to your new counsel.
We may terminate our services at any time with your consent or for good cause. Good cause exists if (a) any statement is not paid within 60 days of its date; (b) you fail to meet any other obligation under this agreement and continue in that failure for 15 days after we send written notice to you; (c) you have misrepresented or failed to disclose material facts to us, refused to cooperate with us, refused to follow our advice on a material matter, or otherwise made our representation unreasonably difficult; or (d) any other circumstance exists in which ethical rules of the legal profession mandate or permit termination, including situations where a conflict of interest arises. If we terminate our services, you agree to execute a substitution of attorneys promptly and otherwise cooperate in effecting that termination.
Termination of our services, whether by you or by us, will not relieve the obligation to pay for services rendered and costs incurred before our services formally ceased.
7. Insurance. During the term of this engagement, this law firm shall take out and maintain general liability and property damage insurance in amounts not less than $1,000,000; professional errors and omissions insurance, in amounts not less than $2,000,000 per occurrence; and $4,000,000 aggregate, which insurance may not be canceled or reduced in required limits of liability unless at least ten days advance written notice be given to you.
8. No Guarantee of Outcome. Any comments made by us about the potential outcome of this matter are expressions of opinion only and are not guarantees or promises about any outcome or results.
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO
9. Dispute Resolution. In the event you become dissatisfied with any aspect of our relationship, we encourage you to bring such concerns to our attention immediately. If we are unable to resolve any dispute, either arising out of or in connection with this Agreement or relating to the services performed by our firm or any of its attorneys, to our mutual satisfaction, our firm will first comply with any mandatory dispute resolution procedures that may apply to any such dispute.
10. Document Retention. In the course of the Firm’s representation of 3ce, you may provide us with and we may obtain documents that are relevant to the representation. Some of those documents may be important to you and so that there is no confusion we find that it is useful at the inception of the representation for us to communicate our Document Retention Policy. Meyers Nave is committed to using less paper and eliminating unnecessary copies of documents. Documents of Record can be either hard copies or digital, regardless of the form they took originally when created or received by the Firm. Whenever it is proper and practicable, the Firm prefers Documents of Record (official version) to be in a digital format. Further, if record is stored electronically, then paper copies may be deemed duplicative and may be purged. This helps us manage information, helps the environment and helps us control costs. The materials pertaining to this matter belong to you and you may access them or have duplicates provided to you at any time during your representation with the exception of certain Meyers Nave Firm and accounting information. At the conclusion of this matter, no further representation will be provided and we recommend that you make arrangements to retrieve all original documents.
It is the Firm’s general policy that we maintain records for a period of seven (7) years after conclusion of the matter, although due to certain practical considerations that is not always possible. Additionally, while we take steps to ensure that all records are held in strict confidence and maintained in a secure location, we cannot guarantee that something beyond our control will not occur resulting in damage to client records.
Thus, if in the course of our representation you provide us with original documents that you consider important or desire to keep, we recommend that, first, you inform us in writing that the documents are important. And second, we ask that you take immediate possession of such documents upon the conclusion of our representation. If we do not hear from you, we will generally retain only the documents and materials pertaining to this matter which we designate as vital for a period of seven (7) years. After which such documents will be destroyed unless, before that time, you notify us in writing that you wish to take possession of them.
11. Entire Agreement; Full Understanding; Modifications in Writing. This letter contains our entire agreement about our representation. Any modifications or additions to this letter agreement must be made in writing.
12. Joint Representation. Our firm maintains of counsel agreements with certain legal specialists. Because these individuals are deemed independent contractors under the
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO applicable provisions of the tax laws and not employees of our firm, it is necessary that you consent to dual representation by our firm and the specialist in the event the matter which you have engaged us to handle requires the use of that specialist. This arrangement has no effect whatsoever on the cost of your legal services, rather it is an ethical requirement that we disclose this fact and that you consent. You are consenting by signing this letter.
13. Disclosure of Public Entity Representation. Our firm represents many public agencies in California, Nevada and Arizona. Since 1986, we have represented over seven hundred public clients, including numerous cities, redevelopment agencies, special districts, counties and other public entities, and we are accepting new engagements all the time. It is virtually inevitable that we will work on projects from other clients having different governmental or political objectives, beliefs or views from 3ce.
14. Disclosure of Work for Bloom Energy and the Counties of San Benito, San Luis Obispo and Santa Barbara. Please be advised that Meyers Nave represents Bloom Energy in connection with certain CEQA and land use matters. As well, Meyers Nave currently represents the counties of San Benito, San Luis Obispo, and Santa Barbara (collectively referred as “the Counties”) in other separate matters related to eminent domain, labor and employment, public finance, and complex judicial coordinated litigation. We understand the Counties, including Monterey County and Santa Cruz County, are also members of 3ce. We do not currently represent Monterey County or Santa Cruz County, however, it is possible we may represent them in the future.
To the best of Firm's knowledge, however, it does not believe the interests of 3ce and Bloom Energy, nor 3ce and the Counties are adverse to each other in this rate setting matter.
Likewise, the Firm does not believe that its assisting Bloom Energy in the CEQA and land use matter, and the Firm’s continuing representation of the Counties in other separate matters willhave any adverse effect on or impact Firm's proposed representation of 3ce and vice versa.
Nonetheless Firm makes this disclosure in order to fulfill Firm's duties under the California Rules of Professional Conduct.
If facts come to light in the future which suggest an actual or foreseeable conflict or adverse effect due to this engagement, Firm will advise 3ce, Bloom Energy, and the Counties immediately.
To avoid the potential for any possible conflict of interest to arise in the future as to its representation of either 3ce, Bloom Energy or the Counties, Firm intends to conduct itself on these terms:
a. The scope of the engagement for 3ce will not involve any issues related to the matters about which we are advising Bloom Energy and the Counties. We have not represented Bloom Energy and the Counties on any matter related to this engagement, and the proposed representation appears entirely unrelated to any matter for which we represent Bloom Energy and the Counties.
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO b. Firm will not disclose to Bloom Energy and the Counties any confidential information Firm has acquired or acquires at any time in the present or future as a result of Firm's attorney-client relationship with 3ce. Firm will likewise not disclose to 3ce any confidential information Firm acquires as a result of Firm's attorney-client relationship with Bloom Energy and the Counties.
c. Firm recognizes that Firm is obligated to exercise independent professional judgment on behalf of 3ce in any matter in which Firm represents 3ce, unaffected to any extent by Firm's then current or potential future relationships with Bloom Energy and the Counties. Firm has examined its relationship with Bloom Energy and the Counties, and has concluded that it will not affect Firm's ability to fully represent 3ce as to the Scope of Service covered by this Agreement.
Firm makes this disclosure in an abundance of caution and in the interest of fully satisfying Firm's ethical obligations.
Needless to say, these acknowledgments do not permit the Firm to represent another client in opposing the specific matter for which you engage us without your specific written consent.
You may wish, and we encourage you, to consult legal counsel regarding the effect of these Disclosures called out above.
We would request that you review this letter carefully and, if it is consistent with your understanding of our respective responsibilities, please so indicate by returning a signed copy of this letter to me at your earliest convenience. Again, we thank you for allowing us the opportunity to serve as your lawyers.
Very truly yours,
Deborah J. Fox
DJF:KG
Enclosures
c: Conflicts Department
Billing Department
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO These terms are accepted and agreed to as of the date of this letter.
By:
Central Coast Community Energy (3ce)
Tom Habashi
CEO
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO
MEYERS NAVE
2021 Billing Rate Schedule
TITLE RATE
Senior Principal $550
Principal $500
Of Counsel $475
Senior Associate $395
Associate $350
Law Clerk $225
Senior Paralegal $225
Litigation Support Specialist $225
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO ATTACHMENT 2
MEYERS NAVE
STATEMENT OF FEE AND BILLING INFORMATION
The following is a general description of our fee and billing policies. These general policies may be modified by the specific engagement letter or agreement to which this summary is attached.
Professional Fees. Our fees for professional services are based on the fair value of the services rendered. To help us determine the value of our services, our attorneys and paralegals maintain time records for each client and matter. Our attorneys and paralegals are assigned hourly rates which are based on years of experience, specialization, training and level of professional attainment. We adjust our rates periodically (usually at the beginning of each year) to take into account inflation and the increased experience of our professional personnel. To keep professional fees at a minimum, legal work that does not require more experienced attorneys will be performed, where feasible, by attorneys with lower billing rates. Of course, the quality of the work is paramount, and we do not sacrifice quality to economy.
Before undertaking a particular assignment, we will, if requested, provide you with a fee estimate to the extent possible. Estimates are not possible for some matters, however, and cannot be relied on in many others because the scope of our work will not be clear at the outset. When a fee estimate is given, it is only an estimate; it is not a maximum or minimum fee quotation. The actual fee may be more or less than the quoted estimate.
Retainer. Our normal practice is to require a retainer to cover a portion of the anticipated attorneys’ fees and costs. Any retainer will be placed in the firm’s trust account. At the conclusion of our services, we will return to our client any unapplied retainer, after deducting payment for charges billed or to-be-billed for services and any remaining out-of-pocket expenses.
Billing And Payment Procedures. Unless other arrangements are made at the time of the engagement, invoices will be sent monthly. Invoices for outside services exceeding $100 may be billed separately. Occasionally, however, we may defer billing for a given month or months if the accrued fees and costs do not warrant current billing or if other circumstances would make it appropriate to defer billing.
Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm’s in-house administrative costs include duplicating, facsimile charges, telephone charges, E-mail, postage, mileage and other administrative expenses.
Robert M. Shaw. COO and General Counsel
January 5, 2022
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all third-party expenses, delivery charges, travel expenses, outside research services, filing fees, expert witness and expert consultant fees.
If you have any questions regarding an invoice, the Finance Director or Executive Director is available to answer your questions. For any unresolved matters, the Bar Association has an arbitration mechanism that can be used to resolve such matters.
Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. . In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys’ fees and other costs of collection.
5039235.1
Staff Report Item 4
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item) DATE: January 12, 2022
RECOMMENDATION:
This recommends the Operations Board (“Board”) find, pursuant to AB 361 and for the Board to continue meeting remotely, that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board has considered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies.
BACKGROUND:
On September 16, 2021, Governor Newsom signed AB 361. This legislation amends the Brown Act to allow Brown Act bodies to meet via teleconference during a proclaimed state of emergency in accordance with teleconference procedures established by AB 361 rather than under the Brown Act's more narrow standard rules for teleconference meetings.
DISCUSSION/ANALYSIS:
AB 361 provides that if a state or local health official recommends social distancing, a legislative body may meet remotely after September 30, 2021, provided that the legislative body finds 1) the Governor's proclaimed state of emergency is still in effect; 2) the legislative body has
reconsidered the circumstances of the state of emergency, and 3) either the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies or the state of emergency continues to directly impact the ability of the members to meet in person.
The Monterey County Health Officer has recommended social distancing measures for meetings of legislative bodies, so the Board were able to meet remotely the first time after September 30, 2021. To continue meeting remotely, the Boards must make the findings outlined above.
Accordingly, staff recommends making the appropriate findings. This action will be required every 30 days to keep meeting remotely. A special meeting may be necessary for that purpose.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
CONCLUSION:
The Board’s consideration and finding that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board has reconsidered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies will allow the Board to continue meeting remotely under the procedures established by AB 361.
Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 9
Financial Dashboard 10
Investment Summary 11
Accounts Receivable Summary 12
Personnel Report 13
Table of Contents
TREASURER REPORT
Fiscal Year to Date
As of October 31, 2021
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying financial statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of October 31, 2021, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
December 15, 2021
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
Current assets
Cash and cash equivalents 172,409,938 $
Accounts receivable, net of allowance 34,380,893
Accrued revenue 20,535,953
Energy settlements receivable 3,944,653
Other receivables 713,799
Prepaid expenses 963,197
Deposits 1,620,683
Restricted cash 294,000
Total current assets 234,863,116
Noncurrent assets
Capital assets, net of depreciation 321,231
Deposits 79,280
Total noncurrent assets 400,511
Total assets 235,263,627
Current liabilities
Accrued cost of electricity 26,876,339
Accounts payable 1,263,080
Other accrued liabilities 1,136,621
Customer rebate liabilities 306,157
User taxes and energy surcharges due to other governments 1,173,530 Supplier security deposits 7,750,000
Total current liabilities 38,505,727
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 47,636,977
Investment in capital assets 321,231
Restricted for security collateral 294,000
Unrestricted 187,011,419
Total net position $ 187,626,650
NET POSITION
As of October 31, 2021
STATEMENT OF NET POSITION
CENTRAL COAST COMMUNITY ENERGY
ASSETS
LIABILITIES
See accountants' compilation report. 2
OPERATING REVENUES
Electricity sales, net 28,446,161 $
OPERATING EXPENSES
Cost of electricity 24,613,613
Contract services 722,145
Staff compensation 599,221
General and administration 474,977
Depreciation 7,711
Total operating expenses 26,417,667
Operating income 2,028,494
NONOPERATING REVENUES (EXPENSES)
Interest income 34,009
Nonoperating revenues (expenses) 34,009
CHANGE IN NET POSITION 2,062,503
Net position at beginning of period 185,564,147
Net position at end of period $ 187,626,650
One Month Ended October 31, 2021
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 3
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 31,428,336
Receipts from suppliers and market settlements 13,285,223 Payments to suppliers for electricity (29,502,794)
Payments for other goods and services (880,027)
Payments for staff compensation (602,571)
Payments of taxes and surcharges to other governments (796,861) Net cash provided by operating activities 12,931,306
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 34,009
Net change in cash and cash equivalents 12,965,315
Cash and cash equivalents at beginning of year 159,738,623 Cash and cash equivalents at end of period $ 172,703,938 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 172,409,938
Restricted cash 294,000
Cash and cash equivalents $ 172,703,938
One Month Ended October 31, 2021
STATEMENT OF CASH FLOWS
CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
Operating income $ 2,028,494
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation expense 7,711
Revenue adjusted for allowance for uncollectible accounts 360,080 (Increase) decrease in:
Accounts receivable 2,635,328
Accrued revenue (524,856)
Energy settlements receivable (512,857)
Other receivables 205,530
Prepaid expenses 574,996
Deposits 42,000
Increase (decrease) in:
Accrued cost of electricity (1,773,086)
Accounts payable 31,360
Other accrued liabilities 291,844
Customer rebate liabilities (134)
User taxes and energy surcharges due to other governments (285,104) Security deposits - energy suppliers 9,850,000
Net cash provided by operating activities $ 12,931,306
CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
One Month Ended October 31, 2021
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5
6 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statement of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended October 31, 2021, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
December 15, 2021
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
2021/22 YTD
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget Variance
(Under) Over
2021/22 YTD
Actual / Budget %
2021/22 Annual
Budget
2021/22 Budget
Remaining
2021/22 Budget
Remaining /
Budget %
REVENUES AND OTHER SOURCES
Electricity sales $ 28,806,239 24,027,927 $ 4,778,312 $ 120% 359,103,000 $ 330,296,761 $ 92% Less bill credit - - - 0% (3,085,000) (3,085,000) 100%
Less uncollectible accounts (300,349) (360,078) (59,729) 120% (4,489,000) (4,128,922) 92% Investment and miscellaneous income 43,000 34,009 (8,991) 79% 516,000 481,991 93% Total revenues and other sources 23,771,000 28,480,170 4,709,592 120% 352,045,000 323,564,830 92% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 24,638,196 27,045,000 (2,406,804) 91% 326,335,000 301,696,804 92% Energy programs (incentives) 631,000 346,131 (284,869) 55% 12,270,000 11,923,869 97% Data manager 313,000 292,000 (21,000) 93% 3,774,000 3,482,000 92% Utility service fees 194,000 140,091 (53,909) 72% 1,893,000 1,752,909 93% Staffing 770,000 599,221 (170,779) 78% 9,244,000 8,644,779 94% Professional services 125,000 49,416 (75,584) 40% 1,393,000 1,343,584 96% Legal services 86,000 79,659 (6,341) 93% 1,037,000 957,341 92% Marketing and customer enrollment 64,000 136,396 72,396 213% 943,000 806,604 86% Other general & administration 155,000 128,846 (26,154) 83% 1,625,000 1,496,154 92% Total current expenditures 29,383,000 26,409,956 (2,973,044) 90% 358,514,000 332,104,044 93% Other Uses Capital outlay 10,000 - (10,000) 0% 114,000 114,000 100% Uninterruptible Power Supply expenditures 233,000 - (233,000) 0% 2,800,000 2,800,000 100% Total other uses 243,000 - (243,000) 0% 2,914,000 2,914,000 Total Expenditures and Other Uses 29,626,000 26,409,956 (3,216,044) 89% 361,428,000 335,018,044 93% Surplus (Deficit) $ (5,855,000) $ 2,070,214 $ 7,925,214 $ (9,383,000) $ (11,453,214) 122%
CENTRAL COAST COMMUNITY ENERGY
BUDGETARY COMPARISON SCHEDULE
One Month Ended October 31, 2021
See accountants' compilation report. 7
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 2,070,214 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Subtract depreciation expense (7,711)
Change in Net Position 2,062,503 $
REVENUES, EXPENSES AND CHANGES IN NET POSITION
CENTRAL COAST COMMUNITY ENERGY
BUDGET RECONCILIATION TO STATEMENT OF
One Month Ended October 31, 2021
See accountants' compilation report. 8
Budget Item YTD Variance Comment
Electric Sales Revenue 120% Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.
Cost of Energy 91% Currently the variance is positive. Variances in this category are typocally due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers.
Staffing 78% Staffing expenses are under budget due to the timing of new hires.
Professional Services 40% This category includes accounting, IT, technical and other consultants.
Legal Costs 93% This category includes outside legal costs for regulatory and energy procurement needs.
Marketing and customer enrollment 213% Variance is mostly due to the timing of noticing for recent customer enrollments. Costs should level out over the year.
Data Management Services 93% These fees non-discretionary and are charged on a per customer basis.
Utility Service Fees 72% These are PG&E fees charged on a per customer basis.
Other General & Administrative 83% This category includes occupancy costs, industry membership dues, and other general and administrative costs.
Energy and Related Programs 55% Programs expenses have generally been delayed until future periods Budget Commentary for significant items
CENTRAL COAST COMMUNITY ENERGY
October 1, 2021 through October 31, 2021
9
10 PAGE ITENTIONALLY LEFT BLANK
Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Money Market and other Interest Earning Accounts $ 34,009 34,009 $ Funds Invested - Average Balance $ 170,609,000
Average APY 0.24%
CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2021 through October 31, 2021
11
Total 0-30 31-60 61-90 90-120 Over 120
Accounts Receivable, net 34,381,000 28,083,000 3,275,000 1,601,000 753,000 669,000 Period % 100% 82% 10% 5% 2% 2%
As of October 31, 2021
Accounts Receivable Aging Report
CENTRAL COAST COMMUNITY ENERGY
DAYS
12
Staff Report Item 6
TO: CCCE Operations Board of Directors
FROM: Norm Groot, Community Advisory Council Chair
SUBJECT: Community Advisory Council Report (Discussion Item) DATE: January 12, 2022
Central Coast Community Energy’s Community Advisory Council (CAC) met on Wednesday, December 1, 2021, with all members in attendance. As this meeting was conducted in a hybrid format, it was necessary for the CAC members to confirm the COVID-19 Pandemic State of Emergency declared by the Governor was still in effect. This was done under the Consent Agenda item along with approval of the minutes from the October 6, 2021 CAC meeting.
COO Robert Shaw, filling in for CEO Tom Habashi, provided the CEO’s Report; this report included a staffing update, power supply acquisition update, description of the proposed Member Agency Medium/Heavy Duty Electric Vehicle Program, enrollment progress in the Southern California Edison region of the agency’s jurisdiction, and an update on the roll-out of the energy programs to date.
Also included in the CEO’s Report was further discussion on the increased cost of energy and possible rate adjustments based on recent PG&E filings with the CPUC. While the new PG&E rates would most likely not be approved by the CPUC until March, the CAC members recommended that CCCE consider a stronger contribution to the rate stabilization fund.
There was also a short presentation on the development of the Sustainable Workforce Policy that staff has been working on in the past months. After discussion, the CAC Chair and members requested that this be placed on the agenda for the next CAC meeting for full discussion on some of the key policy elements, to provide more direction to staff as this policy is further developed.
The CAC then received a report on the progress of development for the Underserved Communities Outreach and engagement Plan. CAC members offered a number of comments and suggestions for inclusion in the final plan draft and then recommended approval of the plan itself.
There being no further business, the CAC members wished each other Happy Holidays and the meeting was adjourned.
Staff Report Item 7
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: CEO's Report (Discussion Item)
DATE: January 12, 2022
HUMAN RESOURCES UPDATE
CCCE welcomes Jonathan Tobar as our IT Support Specialist. Mr. Tobar is a local resident of Monterey with a Computer Information Systems degree from Monterey Peninsula College. He has been working locally providing IT support to clients.
POWER SUPPLY UPDATE
Front of the Member Energy Storage (FMES)
Front of the Meter Energy Storage (FMES) is a first of its kind effort to deploy 1 to 5 MW of energy storage systems to improve grid reliability, reduce greenhouse gas emissions during net peak hours, and provide localized resiliency by leveraging PG&E’s Community Microgrid Enablement Tariff and Program.
During November and December of 2021, CCCE issued an RFP for pre-qualified vendors for FMES projects, identified 86 sites located in the jurisdiction of 15 member agencies, shared the preliminary list of sites with developers, held vendor webinar to respond to vendors questions and completed the standard Energy Services Agreement (ESA). Proposals from vendors are due at the end of January 31, 2022.
RATE PERIOD CY 2022 - 2024 RATE ADJUSTMENT APPROVAL
At its December 15, 2021 special Meeting, the Policy Board of Directors approved adjustment to the electric generation rates for all customer classes in the Pacific Gas & Electric (“PG&E”) service area. The adjustment increases CCCE’s previously approved electric generation rates by 2¢/kWh for CY 2022 and then reduces the increase to 1¢/kWh for CYs 2023 and 2024.
The Board’s approved adjustment enables CCCE to recover increased costs of energy; allocate 2% of operational revenue to support member agencies greenhouse gas emission reduction efforts and
programs; augment the rate stabilization fund to the Board’s approved target of 50% of operational expenses by end of FY 2024, and; increase the one-time bill credit for CARE, FERA, and/or Medical Baseline customer accounts from $30 to $100 to be credited in September 2022.
To ensure a competitive position to PG&E, the Board further directed staff to delay the implementation of the approved final CY 2022 rates to the date when PG&E’s ERRA rate increase becomes effective (expected no later than March 1, 2022). Finally, the Board directed staff to adjust the above summarized rate increase to ensure CCCE recovers the projected calendar year 2022 revenue associated with the recommended rate increase in calendar year 2022.
2021 ENROLLMENT UPDATE
Enrollment in Carpinteria, Goleta, and the communities located in unincorporated Santa Barbara County that are served by Southern California Edison (SCE) stands at about 97% of eligible customer demand. In January 2022, an additional 7,950 customers in the City of Buellton (2,298) and customers on the NEM program in SCE service area (5,652) will be enrolled. Staff will continue to complete the final stages of the outreach plan to ensure successful final enrollments.
Detailed enrollment information is available in the attached CCCE Enrollment & Customer Outreach Report.
ENERGY PROGRAMS UPDATE
Community Education and Workforce Grant Program
On December 9, 2021, CCCE launched the second iteration of the Community Education and Workforce Grant Program (“Grant Program”). The purpose of the Grant Program is to provide support for organizations to address education and outreach barriers that impact CCCE Energy Programs focused on Electrification, as well as to address gaps in local workforce training and development slowing the advancement of electrification of the building and/or transportation sectors. A total of $400,000 has been made available for the Grant Program, with a maximum grant amount of $100,000 per grant recipient. Applications will remain open until February 7, 2022.
Support for Member Agency Initiatives and Programs
On December 15, 2021, the Policy Board of Directors approved the allocation of two percent (2%) of operating revenues to support CCCE Member Agency programs and initiatives that further CCCE strategic goals.
On December 16, 2021, CCCE launched Member Agency Services. This new comprehensive offering will enable CCCE to proactively engage our 33 Member Agencies in program design, utilization, outreach, and support for initiatives designed to reduce greenhouse gas emissions and reduce reliance on fossil fuels. Member Agencies are uniquely positioned to accelerate adoption of electrification efforts and reduce greenhouse gas emissions due to their ability to enact and influence local and regional policy,
their significant fleet and facility footprints, their role as market participants, and due to their ability to reach customers – particularly underserved customers.
CCCE has launched a new standalone webpage to fully communicate the developing efforts to support our Member Agencies: https://3cenergy.org/member-agency-services/ In addition to programs previously available only to Member Agencies, this new offering includes two additional energy programs tailored to support municipal electrification needs. These include the Light Duty Vehicle Electrification and Planning, Implementation, and Innovation Grant programs. The Light Duty Vehicle Electrification Program provides rebates to Member Agencies for new and used battery electric vehicles, Level 2 or Fast Chargers, and EV Readiness. To better align with city/county purchasing schedules and policies, CCCE is enabling Member Agencies to reserve funding for future EV purchases or projects.
As part of a competitive process, the Planning, Implementation, and Innovation Grant Program will provide a total of $600,000 to fund Member Agencies for planning and implementation of transportation and building electrification projects and/or new and innovative electrification or other clean energy-related technology for municipal or community buildings and/or fleets. Member Agencies are eligible to receive up to $150,000 for each award. This innovation will foster market transformation, demonstrate scalable and replicable solutions, and identify potential future CCCE energy program concepts.
ATTACHMENT(S):
1. Regulatory & Legislative Impact Update
2. Update on CCCE Energy Programs
3. CCCE Contracts < $100k
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: January 12, 2021
RE: Regulatory & Legislative Impact Update
Regulatory
Power Charge Indifference Adjustment (PCIA; R.17-06-026) – Application for Rehearing of Working Group 3 Decision
Issue More than six months have passed since filing of CalCCA’s Application for Rehearing (“AFR”) of Decision.21-05-030 with no action on the part of the California Public Utilities Commission (CPUC). CCCE believes the CPUC committed legal error in D.21-05-030 by failing to order allocations of the Resource Adequacy and GHG-free resources in the same way the Decision does for the Renewable Portfolio Standard-eligible resources.
Impacts In the absence of a decision from the CPUC on the AFR, or if the CPUC rejects the AFR, CCCE, CalCCA, and other interested CCAs would need to file a court appeal to ensure that CCA customers receive the benefit of the legacy resources that customers already pay for through the PCIA.
Status Waiting for CPUC action on the AFR while considering a petition for writ of review.
COVID-19 Debt Relief (R.21-02-014) – Pro-rata Payment Structure Final Decision Issue The “waterfall” method is a protocol in which partial payments received from customers who cannot pay their full electricity bills are applied first to investor-owned utility (IOU) transmission and distribution (T&D) costs, and second to CCA generation costs if there is any money left after T&D costs are covered. This approach causes CCAs to disproportionately bear the impacts of customer payment delays compared to the IOUs. Waterfall treatment was suspended during the COVID-19 disconnection moratorium in favor of a pro rata approach wherein partial payments were split proportionally between the IOU T&D and CCA generation costs. With the moratorium expiring at the end of September, the IOUs had agreed to maintain the pro rata approach through the end of 2021. However, a Proposed Decision released 10/15/21 in the COVID-19 debt relief proceeding extended the pro rata approach until the end of COVID-19 arrearage payment plans in September 2024.
Impacts The Proposed Decision is a positive outcome for CCCE. It puts CCAs on equal footing with the IOUs in allocation of partial customer payments and provides certainty that this approach will continue for the next several years, allowing for more accurate financial forecasting.
Status The Proposed Decision was approved by the Commission at its 11/18/21 Voting Meeting.
Summer 2021 Reliability (R.20-11-003) – Final Decision and closure Issue This proceeding was opened in the wake of the August 2020 blackouts to investigate near-term reliability needs and help prevent similar blackouts in 2021. In August 2021, the CPUC extended the scope for this proceeding to address how to increase supply and decrease peak and net peak loads in 2022 and 2023 as well. Additional testimony and comments on these issues were filed by parties during August and September 2021, leading up to a Proposed Decision released on 10/29/21.
Impacts The actions mandated in the 10/29/21 Proposed Decision (PD) focused primarily on the investor-owned utilities (IOUs). The PD ordered the IOUs to procure 2,000-3,000 MW of additional supply- and demand-side resources by 2022 and 2023. The PD also included updates to the IOUs’ Emergency Load Reduction Program and demand response programs, expanded investments in smart thermostats and the Flex Alert media campaign, and a new rate pilot focused on shifting agricultural water pumping load to off-peak hours. The rate pilot is a partnership between PG&E and Valley Clean Energy, a CCA. Given that a significant portion of CCCE’s load comes from the agricultural sector, CCCE staff are investigating whether the pilot structure or any of its components could benefit CCCE customers as well.
Status The Proposed Decision was passed by the Commission on 12/6/21. This Decision addressed the remaining issues in the scope of this proceeding and the proceeding has been closed.
Integrated Resource Planning (R.20-05-003) – Preferred System Plan (PSP) Proposal Issue Integrated Resource Planning (IRP) is the CPUC’s GHG reduction planning process. Every two years, CCAs, investor-owned utilities (IOUs) and Direct Access providers must submit Integrated Resource Plans documenting the resources they plan to procure through 2030 and the estimated GHG emissions associated with those resources. The CPUC aggregates the Plans and uses the results to determine whether the sector is on track to hit its portion of California’s 2030 GHG reduction goals while maintaining reliable electric service. The most recent IRPs were due in September 2020, and the CPUC is currently finalizing the aggregation of those plans. The aggregated result is called the Preferred System Plan (PSP), and a draft version was released by the CPUC in August for stakeholder comment.
Impacts The CPUC does not have direct jurisdiction over CCA procurement the way it does for IOUs.
However, the CPUC’s responsibility for achieving GHG reductions in the power sector by 2030 allows it to order all load-serving entities participating in the IRP process (including CCAs) to procure extra resources if it finds the PSP lacking in GHG reductions and/or grid reliability. The first IRP cycle in 2017-2018 resulted in a CPUC mandate for 3,300 MW of extra procurement, with an additional 11,500 MW ordered in June 2021 to protect mid-term (2023-2026) grid reliability. As Commission development of the Preferred System Plan continues, additional resource procurement mandates could be incoming.
Status After providing feedback on the draft Preferred System Plan, CCCE and other parties await the release of a Proposed Decision on the final PSP by the end of 2021.
Grid Modernization (R.21-06-017) – OIR and DER Action Plan 2.0 Issue In July 2021 the CPUC initiated a proceeding dedicated to modernizing the distribution grid to prepare it for a higher density of distributed energy resources (DERs). The CPUC separately released an update to their over-arching DER Action Alan, coordinating all proceedings related to DER including the new grid modernization proceeding. CCCE is participating in the new grid modernization proceeding jointly with five other CCAs as the Joint CCAs.
Impacts The grid modernization proceeding could have wide-ranging impacts on how CCCE and CCCE customers can participate in and interact with the distribution grid, especially as the proceeding contemplates the role of the Distribution System Operator (DSO).
Status A Scoping Ruling was released on 11/15/21 that lays out a schedule for the proceeding lasting through Q1 2025. An initial stakeholder workshop took place on 12/7/21, and Q1 2022 activities will include further workshops on IOU data portal improvements and smart inverters and a white paper on the Distributed System Operator model and its potential in California.
Provider of Last Resort (POLR; R.21-03-011) – Scoping Memo Issue The Provider of Last Resort is the entity responsible for taking over a load-serving entity’s (LSE’s) customers if that LSE fails and can no longer provide electric service. Historically in California, the investor-owned utilities (IOUs) have served as the POLRs in their respective service areas, tasked with taking back CCA customers if a CCA fails. This proceeding is focused on fleshing out the POLR responsibilities, ultimately in preparation for allowing LSEs other than the IOUs (such as CCAs) to serve as POLR in their service areas. The proceeding is the implementation vehicle for SB 520 (Hertzberg, 2019) and has become especially urgent since CCA Western Community Energy’s bankruptcy in June 2021.
Impacts In addition to the rules for POLR, Phase 1 of the proceeding will examine a framework for recovery of POLR costs and consider whether the Financial Security Requirement (FSR) and re-entry fees need to be modified and/or changes made to the CCA registration and de-registration processes. The FSR is a fee that each CCA must pay upfront, historically to the CPUC, to cover the costs of transferring its customers back to the IOU in the event of the CCA’s failure. The re-examination of the FSR could result in a significant increase in the amount of FSR that CCAs are required to post.
Status This proceeding is still in its early stages. A workshop on Phase 1 issues took place on 10/29/21, and CalCCA submitted comments on the workshop on 12/17/21. A second workshop is scheduled for 1/14/22, followed by reply comments on 2/11/22. A Proposed Decision in Phase 1 is expected in late 2022.
Resource Adequacy Reform (R.21-10-002) – Structural Reform Issue Resource Adequacy (RA) is the primary vehicle by which the CPUC carries out grid reliability planning to prevent blackouts and ensure continuous electric service in California. In addition to ongoing administration of the RA program, this proceeding is carrying out structural reform to make the RA program more effective at maintaining reliability of service as the grid transitions away from fossil fuels to a renewables and storage-based fleet. Decision 21-07- 014 in July 2021 selected a broad structure called “slice-of-day” for the reformed RA process while acknowledging that many details still needed to be fleshed out. To do this, the Decision ordered a six-month series of stakeholder workshops to try to build consensus around a more detailed version of the slice-of-day model.
Impacts RA procurement has taken up an increasing amount of budget and Power Resources staff time in recent years, and the type of RA products CCAs must buy is a direct product of the RA program structure. Spiking RA prices combined with new noncompliance penalties imposed by the CPUC suggest potential for further cost increases in the future, though this outcome will likely depend on the outcome of the reform process.
Status The workshop series ordered by D.21-07-014 began in September 2021 and will continue through January 2022. A workshop report summarizing the findings of the nine workshops will be published in February 2022.
Percentage of Income Payment Plan (PIPP) Pilot Programs (R.18-07-005) – Decision Issue Rulemaking 18-07-005 is dedicated to exploring ways to reduce disconnections. In October the Commission passed Decision.21-01-012 authorizing a new pilot program called the Percentage of Income Payment Plan (PIPP). The pilot will include up to 15,000 participants across California, and with CCCE’s participation will be open to both bundled and unbundled eligible ratepayers in CCCE’s service area. The pilots will be open to CARE-eligible customers (200% of Federal Poverty Level) that either 1) are in zip codes with highest rates of recurring disconnections, or 2) were disconnected 2 or more times during the 12 months prior to the disconnection moratorium. Each CCA must choose to participate in the pilot in order for its customers to be eligible even if they otherwise meet the eligibility requirements.
PIPP customers will receive a monthly bill cap based on a percentage of their income, standardized for two tiers of income (up to or over 100% Federal Poverty Level) and two household size categories (household of 1-2 or 3+ members). Participants will be charged the lower of their PIPP bill cap or their CARE and/or Medical Baseline bill. Cost recovery for both bundled and unbundled participants will be through the electric Public Purpose Program (PPP) charge. The PPP is paid on the delivery side of the electricity bill by all ratepayers, both bundled and unbundled.
Impacts Access to the PIPP pilot will provide an additional source of financial relief for eligible CCCE customers that is financed by all California ratepayers.
Status CCCE has given official notice to both PG&E and SCE of its intent to participate in the PIPP pilot programs. The programs will be administered by the IOUs, and CCCE is participating in a working group with the IOUs and consumer advocates to provide feedback on the pilots and recommendations on the longer-term applications of the PIPP model.
Legislative
CCCE staff have been meeting with the legislative delegation representing CCCE’s member communities to update them on CCCE’s activities and prepare for the 2022 legislative session.
At the federal level HR 3684, the Infrastructure Investment and Jobs Act, became law on 11/15/21. The bill includes key funding for grid upgrades, transportation electrification, wildfire mitigation, energy efficiency, and decarbonization of the electric system. Specific allotments that may benefit CCCE customers include:
• $65 billion for transmission and power infrastructure, including $2.5 billion for DOE to buy a portion of planned capacity in new or upgraded transmission projects, which the department may sell after determining the projects are financially viable. • $8 billion for DOE to establish four clean-hydrogen hubs and $6 billion for battery material processing, manufacturing and recycling grants.
• $7.5 billion for EV charging and alternative fuel facilities. • $5 billion for electric and low-emission school buses. • $553.6 million to incentivize capital upgrades at hydropower facilities, including grid, resilience, dam safety, and environmental performance.
• $3.5 billion for home weatherization.
• $500 million for the State Energy Program providing funding and technical assistance to enhance energy security, advance state-led energy initiatives, and maximize the benefits of decreasing energy waste.
• $500 million for the Low-Income Home Energy Assistance Program. • $250 million in cybersecurity grants for rural and municipal utilities.
• Overturns federal court decisions that stymied the Federal Energy Regulatory Commission’s authority to permit transmission projects in designated corridors. • $3.4 billion for wildfire risk reduction, including forest thinning, controlled burns and landscape-restoration projects, with $600 million allocated for increased wildland firefighter pay.
Additionally, on 11/19/21, the House of Representatives passed HR 5376. Among many other climate-related investments, the Build Back Better spending bill includes crucial extensions of the Investment and Production Tax Credits for renewable energy and extends the Investment Tax Credit to standalone storage. These storage projects are strategically critical to the reliability of intermittent renewable energy sources found in CCCE’s energy portfolio. The bill is now being heard by the Senate with Democrat party leaders hoping to pass it by the end of 2021.
TO: Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: January 12, 2022
RE: Update on CCCE Energy Programs
ENERGY PROGRAMS UPDATE:
Staff continues to develop and implement CCCE’s FY 21/22 suite of Energy Programs for a broad range of customers to advance building electrification, transportation electrification, and community resiliency. Provided in this Memorandum is an update on recent energy programs implementation activities.
Electrify Your Ride Program
On November 9, 2021, CCCE staff launched the next iteration of the Electrify Your Ride Program.
Building off of last year’s program, the Electrify Your Ride Program provides rebates to CCCE customers who purchase or lease an electric vehicle (EV). This program also incorporates rebates for Level 2 EV Chargers, as well as related home electrical upgrades - such as panel upgrades and wiring – to support “EV Readiness”. A new offering of the Electrify Your Ride Program includes rebates for electric bicycles (E-bikes) for residents.
Residential, commercial, and agricultural customers are welcome to apply. Higher incentive amounts will be available through this program for income-qualified customers to promote greater adoption of transportation electrification in disadvantaged and low-income communities. CCCE Member Agencies will have the option to reserve funding under the program for future fleet EV purchases, as well as the purchase and/or installation of EV Chargers. In FY 21/22, CCCE budgeted a total of $3.1 million with $2.85 million allocated for customer incentives. Funds will remain available through September 30, 2022, or until funds are fully reserved. To date, CCCE has received over 350 applications totaling $495,000 in requests. The following table summarizes program participation by county as of January 3, 2022.
Electrify Your Ride FY 21/22
Number of
Applications Incentive Requests
Monterey 84 $ 134,976
San Benito 5 $ 8,995
San Luis Obispo 61 $ 84,514
Santa Barbara 78 $ 87,030
Santa Cruz 143 $ 179,922
Total 371 $ 495,436
New Construction Electrification Program
On October 5, 2021, CCCE launched the third iteration of the New Construction Electrification Program (NCEP). Through a first-come-first-served application process, the NCEP provides housing developers incentive funds to build all-electric housing. Like previous iterations of the program, projects must be built to all-electric standards for all energy utility needs including but not limited to water heating, space heating, and cooking appliances. This year, incentives are available only for affordable housing units.
A $2,500 incentive will be provided on a per unit basis and will be provided “downstream” to developers upon successful completion of the project. In FY 21/22 a total of $1.5 million is available to housing developers and will remain available through September 30, 2022, or until funds are fully reserved. To date, CCCE has received one application. Staff is preparing to host a stakeholder meeting in January 2022 to engage local housing developers about the program.
Agricultural Electrification Program
On October 5, 2021, staff launched the third iteration of the Agricultural (Ag) Electrification Program.
The Ag program provides incentives to CCCE customers for replacement of fossil fuel powered agricultural equipment with new electric equipment including irrigation pumps, farm tools, utility vehicles and other equipment. Incentives will be provided “downstream” directly to the customer after proof of purchase and/or installation of equipment.
The incentive is open to CCCE customers whose primary business is agriculture production and/or agriculture processing. This year, eligible customers will receive between 70 – 100% of the total project cost up to $30,000 for qualifying projects. Applications submitted by small businesses with higher impact projects - in terms of greenhouse gas emissions reduction – will be supported by the highest incentive levels. In FY 21/22, a total of $600,000 is available for incentives and will remain available through September 30, 2022, or until funds are fully reserved. To date, 11 eligible applications have been received totaling over $97,000 in requests. Staff has approved nine applications and reserved approximately $84,000 under the Program.
Agriculture Electrification Program FY 21/22
Number of
Applications Incentive Requests
Monterey 4 $ 56,711
San Luis Obispo 1 $ -
Santa Barbara 1 $ 12,899
Santa Cruz 5 $ 27,497
Total 11 $ 97,107
Electric School Bus Program
On October 5, 2021, CCCE launched the third iteration of the Electric School Bus Program. This program provides public schools and school districts enrolled in CCCE service with an opportunity to receive funding for the purchase of an all-electric school bus. The Electric School Bus Program is intended to reduce GHG emissions from school buses, as well as eliminate harmful pollutants emitted by traditional diesel buses near students.
In FY 21/22, a total of $1 million is available to incentivize up to five new buses in our service area. CCCE will contribute up to 50% of the cost, not to exceed $200,000 for each school bus. Funds will be distributed directly from CCCE to the bus manufacturer of the awardee’s choosing on behalf of the awardee. Applications will be accepted on a rolling basis until funds are fully reserved. To date, CCCE has received nine (9) applications totaling over $1.45 million in requests.
School Bus Electrification Program FY 21/22 Number of applications $ Requested Monterey 5 $ 675,000
San Benito 1 $ 200,000
Santa Barbara 2 $ 381,259
Santa Cruz 1 $ 200,000
Total 9 $ 1,456,259
CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 NewGen Strategies and Solutions, LLC $86,100 11/24/2021 12/31/2022 Cost-of-Service Study for Southern California Edison Service Territory 2 Waltz Creative $90,000 12/9/20021 9/30/2022 Video Production Services 3 Downey Brand, LLP $70,000 10/1/2021 9/30/2022 Engagement Letter for Legal Services for CPUC Decision No. 21-05-030 4 NP Energy $80,000 11/15/2021 6/30/2022 Provide a Quantitative and Qualitative Assessment of CCCE's Operation Risk Exposure 5 County of Monterey Counsel's Office $90,000 10/1/2021 9/30/2022 Professional Legal Services related to California Open Meeting Law, CA Gov. Code Sec. 54950 ("Brown Act")
Staff Report Item 8
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Receive Update Regarding Member Agency Medium and Heavy-Duty Electric Vehicle Program (Discussion Item)
DATE: January 12, 2022
RECOMMENDATION:
This report provides Operations Board of Directors with an informational update regarding the proposed design features and considerations of the Member Agency Medium and Heavy-Duty Electric Vehicle (MD/HD EV) Program.
BACKGROUND:
On December 15, 2021, the Policy Board of Directors adopted Resolution No.2021-PB-09 to adjust rates to meet additional operational needs, including allocating 2 percent of operating revenues to support Member Agency initiatives and programs focused on reducing greenhouse gas emissions.
DISCUSSION/ANALYSIS:
Among the first programs to be offered from this Member Agency-focused funding will be a medium and heavy-duty fleet program incentivizing cities and counties to choose all-electric fleet vehicles and equipment. The proposed program will provide greater overall benefit by driving Member Agency investment in charging infrastructure, facilities upgrades, and workforce training to support those fleets.
Program Purpose
The proposed MD/HD EV Program is intended to reduce GHG emissions from Member Agency medium and heavy-duty municipal fleet vehicles, as well as eliminate harmful pollutants emitted by these vehicles near residents and operators.
Program Description
The MD/HD EV Program will provide Member Agencies with potential funding towards the purchase of all-electric medium and heavy-duty vehicles. Potential applications include street sweepers, refuse
trucks, first response vehicles, dump trucks, and other municipal owned fleets that historically do not have access to state or regional rebates or incentives like those available for light duty vehicles.
CCCE intends to work in coordination with city/county purchasing schedules and policies to reduce administrative barriers to Member Agencies electrifying their medium and heavy-duty fleets.
CCCE anticipates setting the incentive amount equal to the incremental cost (i.e., the cost difference) of a traditional internal combustion engine (ICE) vehicle compared to an EV option of the same type, size, and/or use. Individual incentives will be capped at $200,000 per vehicle.
Applications will be accepted on a rolling basis and collected through an online application process until funds are fully reserved. CCCE will reserve funds for qualifying projects through a letter of intent (LOI) and funds will be dispersed once purchases and/or projects are completed.
Program Budget
The anticipated budget for this program in FY 21/22 is $1,000,000.
Implementation Model
This program will be administered and implemented entirely by CCCE staff.
Program Launch Date
The program will be launched in mid Q1 of 2022.
FISCAL IMPACT:
The anticipated budget for the MD/HD EV Program is $1,000,000 and will be funded through the 2 percent of operation revenues allocated to fund Member Agency Services.
CONCLUSION:
The Member Agency Medium and Heavy-Duty Electric Vehicle Program, funded from the newly allocated 2% of operating revenue supporting member agencies, will reduce the incremental costs for cities and counties purchasing electric versions of medium and heavy-duty fleet vehicles.