Central Coast Community Energy (3CE) Operations Board
October 12, 2022

Operations Board of Directors
Wednesday, October 12, 2022
10:30 AM
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
AGENDA
. 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 of the September 21, 2022 Meeting of the Operations Board (Action Item)

2. 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)

3. Adopt Resolution No. OB-2022-03 Delegating the Operations Board’s Approval of CCCE’s Integrated Resources Plan to the Chief Executive Officer (Action Item)

4. Treasurer's Report (Information Only)

REGULAR AGENDA

5. CEO Report (Discussion Item)
a. Pacific Gas & Electric Plan to Transfer Non-Nuclear Generation Assets b. Front of the Meter Energy Storage Update
c. Liquidity and Reserves Management Update
d. Resource Adequacy Central Procurement Entity Update

6. Receive Update on FY 22-23 Reach Code Program (Discussion Item)

7. Approve Resolution No. OB-2022-04 Adopting Procedures for the Selection and Terms of the Operations Board Chair and Vice-Chair and Recommending Corresponding Amendments be made by the Policy Board to the Central Coast Community Energy Operating Rules and Regulations (Action Item)
. CLOSED SESSION
8 Closed session under Government Code 54950 relating to the following item:
a. Pursuant to Government Code section 54956.9(d)(4), the Board will confer with legal counsel regarding one item of potential initiation of litigation Board Member Reports & Comments (Information Only)
Adjournment

MINUTES
The meeting was called to order at 4:56PM with 14 members attending in person and a quorum established.

Directors Present: Espinosa, Huffaker, Imhof, Hill, McKee, Mendez, Miller, Miyasato, Norgaard, Pia, Rerig, Stilwell, Vice Chair Goldstein, Chair Palacios
Directors Absent: Bradford, Lewis, Slama
The Chair opened the public comment period for items not on listed on the agenda.

No Public Comments Received.

The Chair closed public comment period.

Clerk announced that there were no corrections or additions to the agenda

CONSENT AGENDA
The Chair opened the public comment period on the consent agenda.  Beverly DesChaux
The Chair closed public comment period.

Chair Palacios moved Item 5 to the Regular Agenda
MOTION: Moved by Vice Chair Goldstein seconded by Director Mendez to approve the Consent Agenda Items 2,3,4, 6, and 7.

ACTION: The Motion Carried with a voice vote: 14/0/3
AYES: Espinosa, Huffaker, Imhof, Hill, McKee, Mendez, Miller, Miyasato, Norgaard, Pia, Rerig, Stilwell, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: Bradford, Lewis, Slama

2. Found, 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; Operations Board of Directors
Wednesday, September 21, 2022
4:45PM
Monterey Conference Center
1 Portola Plaza
Monterey, CA 93940
and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies.

3. Adopted Resolution No. OB-2022-02 Attesting to the Veracity of CCCE’s 2021 Power Content Label

4. Approved Contract with Braun, Blaising, & Wynne for Legal Services in an Amount not to Exceed $130,000 in a Contract Year or $260,000 Total

6. Treasurer’s Report (Information Only)

7. Authorized CEO to Execute a Standard Services Agreement with Maher Accountancy for Accounting and Annual Audit Assistance Services with a Not to Exceed Amount of $259,000 MOTION: Moved by Vice Chair Goldstein seconded by Director Stilwell to approve the Consent Agenda Item 1.

ACTION: The Motion Carried with a voice vote: 12/0/3/2
AYES: Espinosa, Huffaker, McKee, Mendez, Miller, Miyasato, Norgaard, Pia, Rerig, Stilwell, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: Bradford, Lewis, Slama
ABSTAIN: Imhof, Hill

1. Approved Minutes from the August 10, 2022 Meeting of the Operations Board as submitted.

REGULAR AGENDA

5. Update Regarding Chair's Appointment of a CEO Selection Committee The Chair opened the public comment period.

The following individual(s) addressed the Board.
 Eric Vieum
 John Smigelski
 Beverly DesChaux
The Chair closed public comment period.

ACTION: Discussion Item; no action required

8. Community Advisory Council's Report
The Chair opened the public comment period.

There were no public comments.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

9. CEO Report
a. Staffing Update
b. Labor Day Heat Wave Impacts
c. AB 846 Diablo Canyon
d. Inflation Reduction Act
e. Data Manager / Call Center Transition
The Chair opened the public comment period.

There were no public comments.

The Chair closed public comment period.

ACTION: Discussion Item; no action required
Adjourned at 5:42PM
Staff Report Item 2
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: October 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.

Staff Report Item 3
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Adopt a Resolution No. OB-2022-03 Delegating the Operations Board’s Approval of CCCE’s Integrated Resources Plan to the Chief Executive Officer (Action Item) DATE: October 12, 2022
RECOMMENDATION:

This recommends that the Operations Board adopt a resolution delegating its approval of CCCE’s Integrated Resources Plan (“IRP”) to the Chief Executive Officer for providing the approved IRP to the California Public Utilities Commission (the “Commission”) for certification as provided in Public Utilities Code (“PUC”) section 454.52(b)(3).

BACKGROUND:

The IRP is a long-term procurement plan intended to assist the Commission to determine that resources being relied on by load serving entities (“LSEs”) can ensure a reliable electricity supply that provides for the optimal integration of renewable energy in a cost-effective manner (PUC section 454.51). PUC section 454.52(b)(3) requires that a CCA IRP “be submitted to its governing board for approval and provided to the commission for certification.” The Commission considers IRP filings from all LSEs – including CCCE – on a two-year planning cycle.

This is the third cycle of the IRP program since its inception in 2017. CCCE’s previous two IRPs were submitted in 2018 and 2020. Both submissions received Commission certification.

DISCUSSION/ANALYSIS:

The IRP compliance filing requires completion and submittal of three documents by November 1, 2022:
the IRP Narrative Template, the Resource Data Template, and the Clean System Power Calculator.

In this IRP cycle, the Commission is requiring its jurisdictional entities to use certain standardized inputs and assumptions. The required assumptions include:

1. Load forecast as developed by the California Energy Commission.

2. Generating resources that are currently online or are contracted to come online during the IRP’s planning timeframe (2024-2035).

3. Planned resources that have not yet been built or contracted for but will be needed in the IRP’s planning timeframe to meet CCCE’s procurement goals and GHG benchmark.

4. Resource Adequacy Requirements including the monthly highest demand plus 14% planning reserve margin.

5. Two scenarios, giving two limitations on GHG Emissions of 38 MMT (million metric tons of CO2 across the electricity sector) and 30 MMT.

Due to CCCE’s commitment to achieving a 100% clean portfolio with monthly energy balancing by 2030, CCCE anticipates that its actual portfolio plan will be significantly under CCCE’s benchmarks assigned by the Commission for both planning scenarios.

FISCAL IMPACT:

There are no fiscal impacts associated with this delegation of authority which is recommended only to meet the Commission compliance requirement and any actual procurement will be approved in accordance with CCCE’s Energy Risk Management Policy.

CONCLUSION:

Due to the Commission’s changes to the IRP’s compliance materials, staff will need additional time to finalize the IRP, therefore, staff recommends that the Operations Board delegate authority to approve CCCE’s IRP to the CEO.

ATTACHMENT(S):

1. Draft Resolution No. OB-2022-03
DRAFT RESOLUTION NO. OB-2022-03

A RESOLUTION OF THE OPERATIONS BOARD OF DIRECTORS OF THE CENTRAL COAST COMMUNITY

ENERGY AUTHORITY DELEGATING AUTHORITY TO THE CHIEF EXECUTIVE OFFICER TO APPROVE THE 2022 INTEGRATED RESOURCE PLAN AND AUTHORIZING ITS SUBMISSION TO

THE CALIFORNIA PUBLIC UTILITIES COMMISSION FOR CERTIFICATION WHEREAS, the Central Coast Community Energy Authority ("CCCE") is a Joint Powers Authority established and operated pursuant to California Government Code section 6500 et seq. to study, promote, develop, conduct, operate, and manage energy programs in the California Central Coast region of Santa Cruz, Monterey, San Benito, Santa Barbara Counties, and certain cities within San Luis Obispo County, and
WHEREAS, Public Utilities Code section 454.51 requires that all Californian Load Serving Entities (“LSE”) are required to produce and submit to the California Public Utilities Commission (the “Commission”) an Integrated Resources Plan (“IRP”); and WHEREAS, Public Utilities Code section 454.52(b)(3) requires that a Community Choice Aggregator IRP “be submitted to its governing board for approval and provided to the commission for certification;” and
WHEREAS, the Commission deadline for submission of the IRP is November 1, 2022; and WHEREAS, CCCE is a Californian LSE, and a CCA, and is therefore required to submit an approved IRP to the CPUC for certification; and
WHEREAS, CCCE anticipates that its actual portfolio plan will be significantly under either of the Commission’s required planning scenarios.

NOW, THEREFORE, the Operations Board of Directors of the Central Coast Community Energy Authority does hereby resolve, determine, and order as follows:

1. The Chief Executive Officer is delegated authority to approve the 2022 IRP with any input from the Energy Risk Management Committee and is further authorized to submit the IRP to the CPUC by November 1, 2022.

2. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the Operations Board of the Central Coast Community Energy Authority this 12th day of October 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:
_____________________________
Chair, Carlos Palacios
Attest:
____________________________
Board Clerk, Heather Vowell
1 6
9 10
11 12
Compiled Financial Statements
Compiled Budgetary Comparison Schedule
Budget Variance Commentary
Financial Dashboard
Investment Summary
Personnel Report
Table of Contents

TREASURER REPORT
Fiscal Year to Date
As of August 31, 2022
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 August 31, 2022, 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
September 26, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents
Held for working capital 40,100,000 $
Held for reserves 138,494,264
Cash and cash equivalents 178,594,264
Accounts receivable, net of allowance 42,908,305
Accrued revenue 29,534,243
Loan receivable 292,002
Other receivables 141,198
Prepaid expenses 3,436,105
Deposits 2,942,750
Restricted cash 294,000
Investments - held for reserves 11,190,491
Total current assets 269,333,358
Noncurrent assets
Deposits 23,432
Loan receivable 1,707,998
Capital assets, net of depreciation 226,383
Total noncurrent assets 1,957,813
Total assets 271,291,171
Current liabilities
Accrued cost of electricity 40,966,234
Accounts payable 889,937
Other accrued liabilities 1,149,868
Customer rebate liabilities 158,706
User taxes and energy surcharges due to other governments 1,763,010 Total current liabilities 44,927,755
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 54,059,005
Investment in capital assets 226,383
Restricted for security collateral 294,000
Unrestricted 216,711,783
Total net position 217,232,166 $

NET POSITION
As of August 31, 2022

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES
See accountants' compilation report. 2

OPERATING REVENUES
Electricity sales, net 364,266,062 $
Grant revenue 2,759,460
Liquidated damages 2,401,875
Total operating revenues 369,427,397

OPERATING EXPENSES
Cost of electricity 324,120,006
Contract services 8,009,565
Staff compensation 5,552,480
General and administration 5,147,867
Depreciation 81,616
Total operating expenses 342,911,534
Operating income (loss) 26,515,863

NONOPERATING REVENUES (EXPENSES)
Interest and investment income 727,844
CHANGE IN NET POSITION 27,243,707
Net position at beginning of period 189,988,459
Net position at end of period 217,232,166 $
Eleven Months Ended August 31, 2022

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 355,550,712 $
Receipts from grantor 2,759,460
Receipts from liquidated damages 2,401,875
Receipts from suppliers 11,032,677
Payments to suppliers for electricity (312,891,914)
Payments for other goods and services (15,289,780)
Payments for staff compensation (5,663,240)
Payments of taxes and energy surcharges to other governments (6,183,011) Net cash provided by operating activities 31,716,779

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (1,113)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 594,327
Purchase of investments (11,160,352)
Loan issued (2,000,000)
Net cash provided (used) by investing activities (12,566,025) Net change in cash and cash equivalents 19,149,641
Cash and cash equivalents at beginning of year 159,738,623 Cash and cash equivalents at end of period 178,888,264 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 178,594,264 $
Restricted cash 294,000
Cash and cash equivalents 178,888,264 $
Eleven Months Ended August 31, 2022

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
Operating income (loss) 26,515,863 $
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 81,616
Provision for uncollectible accounts 1,776,927
(Increase) decrease in:

Accounts receivable (7,308,934)
Accrued revenue (9,523,146)
Energy settlements receivable 7,856,108
Other receivables 881,509
Prepaid expenses (1,875,856)
Deposits (1,224,219)
Increase (decrease) in:

Accrued cost of electricity 12,316,810
Accounts payable (341,781)
Other accrued liabilities 305,091
Customer rebate liabilities (147,585)
User taxes and energy surcharges due to other governments 304,376 Security deposits - energy suppliers 2,100,000
Net cash provided by operating activities 31,716,779 $

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Eleven Months Ended August 31, 2022

RECONCILIATION OF OPERATING INCOME (LOSS) 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 August 31, 2022, 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
September 26, 2022
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
Less Actual
2021/22 Budget
Remaining /
Budget %

REVENUES AND OTHER SOURCES
Electricity sales 323,019,000 $ 372,571,921 $ 49,552,921 $ 115% 359,103,000 $ (13,468,921) $ -4% Less bill credit - - - 0% (3,085,000) (3,085,000) 100% Less uncollectible accounts (4,038,000) (5,546,399) (1,508,399) 137% (4,489,000) 1,057,399 -24% Revenue from damages - 2,401,875 2,401,875 n/a - (2,401,875) n/a Investment and miscellaneous income 473,000 727,844 254,844 154% 516,000 (211,844) -41% Total revenues and other sources 319,454,000 370,155,241 50,701,241 116% 352,045,000 (18,110,241) -5% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 324,390,939 292,167,000 32,223,939 111% 326,335,000 1,944,061 1% Energy programs (incentives and grants) 11,859,000 3,526,576 (8,332,424) 30% 12,270,000 8,743,424 71% Data manager 3,366,385 3,459,000 (92,615) 97% 3,774,000 407,615 11% Utility service fees 1,739,000 1,595,498 (143,502) 92% 1,893,000 297,502 16% Staffing 8,474,000 5,552,480 (2,921,520) 66% 9,244,000 3,691,520 40% Professional services 1,292,000 1,183,544 (108,456) 92% 1,393,000 209,456 15% Legal services 951,000 993,071 42,071 104% 1,037,000 43,929 4% Marketing and customer enrollment 869,000 600,134 (268,866) 69% 943,000 342,866 36% Other general & administration 1,492,000 1,621,291 129,291 109% 1,625,000 3,709 0% Total current expenditures 322,302,000 342,829,918 20,527,918 106% 358,514,000 15,684,082 4%Other Uses Capital outlay 103,000 1,113 (101,887) 1% 114,000 112,887 99% Uninterruptible Power Supply expenditures 2,567,000 2,000,000 (567,000) 78% 2,800,000 800,000 29% Total other uses 2,670,000 2,001,113 (668,887) 75% 2,914,000 912,887 Total Expenditures and Other Uses 324,972,000 344,831,031 19,859,031 106% 361,428,000 16,596,969 5% Surplus (Deficit) $ (5,518,000) $ 25,324,210 $ 30,842,210 $ (9,383,000) $ (34,707,210) 370% Reserves at end of reporting period:

Held for Working Capital $ 40,100,000 Held for Reserves - Cash and Cash Equivalents 138,494,264 Held for Reserves - Investments 11,190,491 Total 189,784,755 $

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Eleven Months Ended August 31, 2022
See accountants' compilation report. 7
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 25,324,210 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (81,616)
Add back capital asset acquisitions 1,113
Add back loans issued 2,000,000
Change in Net Position 27,243,707 $

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Eleven Months Ended August 31, 2022
See accountants' compilation report. 8
Budget Item YTD Variance Comment
Electric Sales Revenue 15.3% 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 11.0% Variances in this category are typically 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 (34.5%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (8.4%) This category includes accounting, IT, technical and other consultants.

Legal Costs 4.4% This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (30.9%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (2.7%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (8.3%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative 8.7% This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (70.3%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2021 through August 31, 2022
9 $6.6
$4.2
Act
Bud
$42.6
$26.8
$28.3
‐$20.0
‐$10.0
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$367.0
$319.0
$354.6
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 410 407 442 418 376 406 399 415 441 445 464 Budget 428 421 432 431 379 406 395 421 425 448 478 454
0 100
200
300
400
500
600

CUSTOMERS

SALES VOLUME
464 GWh

STD MARGIN
$4.6M (14%)
Δ in NET ASSETS
$4.6M

REVENUE
$47.9M
Cumulative YTD Electricity Sales Cumulative YTD Direct Margin Fiscal Year Electricity Sales are $48.0M ahead of budget, Margin dollars are $15.8M above budget.

Data Definitions:

CUSTOMERS: From GridX invoice + Calpine.

REPORTED / SALES VOLUME: Best available estimate of actual meter volume.  Currently based on GridX T+8 SQMD Report and T+48 when available.

REVENUE: Total Operating Revenue, net of uncollectible, (excludes Miscellaneous and Interest income).

NON‐OP REV: Other uses, primarily Interest Income
ELECTRICITY SALES: Sales from electricity (net of uncollectible).

STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from  FY21/22 budget
Monthly Sales Volume (GWh)
Financial Dashboard: August 2022
Margin %

CUSTOMERS
447,500
ACTIVE
August revenue of $47.9M accounts for 464
GWh in net retail consumption. This comes
in 14Gwh below budgeted volume.

YTD Revenue is $48M ahead of budget, and
margin exceeds budget by $15.8M for the
year.
30%
47%
23%
35%
48%
17%
Res
Com
Ag
YTD Month
30%
48%
22%
36%
47%
16%
Res
Com
Ag
YTD Month
Revenue $47.9
C.O.E. $41.2
OpEx $2.0
Net Income $4.6 13.9%

11.3%
Act
Bud
Margin $
10 Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank - Money Market and other Interest Earning AccountsFunds Invested - Average Balance $ 178,000,000 171,000,000 $ 172,000,000 $ 165,000,000 $ 168,000,000 $ 164,000,000 $ 160,000,000 $ 160,000,000 $ 152,000,000 $ 159,000,000 $ 71,000,000 $ Gains/Losses/Interest $ 579,552 $ 34,009 $ 33,104 $ 32,526 $ 31,581 $ 31,077 $ 38,817 $ 47,244 $ 62,490 $ 77,791 $ 109,682 $ 81,231 Average APY 0.24% 0.22% 0.23% 0.23% 0.22% 0.28% 0.35% 0.47% 0.61% 0.83% 1.37%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance - - - - - - - - - - 15,000,000 $ Gains/Losses/Interest $ 36,986 - - - - - - - - - - $ 36,986 Average APY 2.96%RBC GAM / Principal Financal Funds Invested - Average Balance - - - - - - - - - - 75,000,000 $ Gains/Losses/Interest $ 111,307 - - - - - - - - - - 111,307 $ Average APY 1.78%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2021 through August 31, 2022
11 Staff Report Item 5
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: CEO Report (Discussion Item)
DATE: October 12, 2022

PACIFIC GAS & ELECTRIC PLAN TO TRANSFER NON-NUCLEAR GENERATION ASSETS On September 29, 2022, PG&E filed an application with the California Public Utilities Commission to transfer its non-nuclear generation assets into a subsidiary company, Pacific Generation LLC, and then sell a 49% stake in that subsidiary to provide equity financing back to PG&E for, among other things, wildfire risk mitigation.

CCCE staff is reviewing the application and working with industry stakeholders to evaluate potential impacts to CCAs and our customers.

FRONT OF THE METER ENERGY STORAGE UPDATE
The County of San Benito approved a 1-year site control agreement enabling CCCE’s developer, Depcom, LLC move forward with its interconnection request with PG&E. Other selected site hosts are securing approvals for site control.

CCCE is working with PG&E to understand and deploy an alternative to the Community Microgrid Enablement Program (CMEP) that will allow the same islanding functionality for front-of-the-meter assets in the event of an outage.

LIQUIDITY AND RESERVES MANAGEMENT UPDATE
August marked the start of CCCE’s new liquidity and reserve management strategy. Under the strategy, detailed by Staff at the June 2022 Policy Board of Directors meeting, excess cash will be allocated to higher-yielding instruments authorized by CCCE’s Investment Policy. Staff allocated $75 MM to RBC Global Asset Management (GAM) under a contract approved by the Operations Board of Directors at its June meeting; RBC GAM began managing the funds on August 11. Annualized yields in August on this allocation were approximately 1.8%, reflecting the partial month. Staff also negotiated an agreement with River City Bank, CCCE’s commercial banking partner, to invest in treasury-indexed Certificates of Deposit (CD). These CDs yield Treasury rates + 10 basis points on the date of execution and waive penalties if CCCE needs to withdraw funds early due to business needs. In August and September, Staff allocated $25 MM to these products with a weighted average maturity of 3.9 months and a weighted average annualized yield of approximately 3%. For reference, the iShares Short Treasury Bond ETF, which consists of US Treasury bonds maturing in less than a year, had an annualized yield of 1.67% for the August 11-August 31 period. Staff will begin including performance benchmarks in September, the first full month using the new strategy.

RESOURCE ADEQUACY CENTRAL PROCUREMENT ENTITY UPDATE
CCCE has called on the California Public Utilities Commission (CPUC) to clarify the Resource Adequacy requirements for all load-serving entities (LSEs) following PG&E’s failure to procure the Local RA it was ordered to. At the end of August LSEs learned that PG&E had only procured 74% of the 2023 Local RA that it was assigned to procure on behalf of all LSEs when the CPUC created the Central Procurement Entity (CPE) function for PG&E and Southern California Edison to streamline Local RA procurement.

PG&E’s failure has brought to light inconsistencies in the CPUC’s policy that have made LSEs’ System RA requirements uncertain in light of PG&E’s shortfall. On September 16th CCCE filed a Motion for Clarification with Peninsula Clean Energy, which was subsequently supported by two more CCAs and a coalition of direct access stakeholders. CalCCA has also filed a Petition for Modification related to how the CPE affects System RA compliance. The CPUC is not obligated to respond to the Motion or the Petition but given the number of stakeholders weighing in, some Commission response should be forthcoming. In the meantime, staff have continued preparations for the October 31st System RA Year-Ahead filing.

ATTACHMENT(S):

1. Customer Enrollment and Engagement Report

2. Update on FY 21/22 CCCE Energy Programs

3. Update on CCCE Member Agency Services

4. Overview of CCCE’s FY 22/23 Energy Programs Portfolio and Launch Schedule

5. Regulatory & Legislative Impact Update

6. CCCE Contracts < $100k
Customer Enrollment and Engagement Report
Central Coast Community Energy
Communications and Outreach
September 2022
I. Member Agency Services meetings:

Since our last update, staff meetings were held with the following agencies:

City of Monterey
County of Monterey
City of Salinas
City of Sand City
City of Solvang
CCCE Annual Update public presentations were delivered to:

City of Santa Cruz
County of Santa Barbara
The Transportation Electrification Working Group, organized by CCCE and attended by interested member agency staff, met on August 4.

II. Enrollment/Opt-Outs:

Over the past 90 days, we received the following number of opt-outs, shown by county:

Santa Barbara County: 93
San Luis Obispo County: 107
San Benito County: 36
Santa Cruz County: 58
Monterey County: 127
The reasons given by customers for opting out were as follows:

Rate of cost concerns – 36%
Decline to provide – 25%
Dislikes being automatically enrolled – 14%
Other – 13%
Service or billing concerns – 9%
Concerns about a government-run agency 3%

97.72%

97.34%

98.37%

96.67%

98.30%

98.11%

98.82%

97.70%

98.55%

99.02%

95.68%

98.28%

96.57%

95.58%

97.32%

97.99%

96.96%

98.75%

98.55%

97.23%

98.37%

97.75%

96.15%

98.98%

98.14%

96.89%

96.26%

95.42%

98.31%

94.46%

99.16%

98.25%

98.59%

ARROYO GRANDE

WATSONVILLE INC

SOLVANG INC

SOLEDAD INC

SEASIDE INC

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ CO

SANTA CRUZ

SANTA BARBARA CO

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO CO

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY CO

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPENTERIA
CARMEL

CAPITOLA

BUELLTON
Percent of eligible accounts enrolled

91.91%

93.93%

87.50%

96.81%

96.22%

93.80%

94.38%

95.83%

80.53%

86.90%

96.88%

95.75%

97.50%

95.33%

98.73%

96.18%

98.68%

97.55%

94.29%

94.10%

93.50%

96.34%

99.54%

98.49%

97.59%

98.75%

86.83%

98.56%

95.86%

98.13%

97.40%

99.52%

98.07%

WATSONVILLE

SOLVANG

SOLEDAD

SEASIDE

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ COUNTY

SANTA CRUZ

SANTA BARBARA COUNTY

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO COUNTY

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY COUNTY

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPINTERIA
CARMEL

CAPITOLA

BUELLTON

ARROYO GRANDE
Percent of eligible load served
III. Media Outreach
Social media engagement by platform:

Facebook
Followers: 1,850
Post Reach: 43,837
Post engagement: 8,324
New page followers: 11
Link Clicks: 2,081
Top Performing Content: Annual Meeting Post
Facebook En Espanol
Followers: 181
Post Reach: 10,325
Post engagement: 798
New page followers: 1
Link Clicks: 218
Top Performing Content: Oaxaca by the Sea event
flyer
Instagram
Followers: 806
Top Performing Content: Flex Alert Video
Twitter
Followers: 1,079
Top Performing Content: New Electric Charging
Stations in Santa Barbara
LinkedIn
Followers: 1,328
Top Performing Content: CEO retirement announcement
Earned media:
“How California is Managing the Heatwave’s Effect on its Power Grid,” Erin Malsbury, Good Times, September, 27, 2002. Good Times Santa Cruz
“An eco-friendly option could help cool your home through this heatwave,” Taylor Hillo, KSBY-TV, August 31, 2022. KSBY-TV
Press release: “Central Coast Community Energy Partners with Santa Barbara County to further transportation electrification,” September 13, 2022 – Published in Spotlight feature in the Santa Maria Sun and on CalCCA online: Santa Maria Sun – Spotlight, CalCCA
“Details sharpen for Downtown Santa Cruz library, housing project,” Jesse Kathan, Santa Cruz Local, September 27, 2022. Santa Cruz Local
“Climate plan approved by Santa Cruz City Council,” Grace Stetson, Santa Cruz Local, September 13, 2022.

Santa Cruz Local
TO: Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: October 12, 2022
RE: Update on FY 21/22 CCCE Energy Programs
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 second 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/agricultural, and public agency customers are welcome to apply. Higher incentive amounts are available through this program for income-qualified customers to promote greater adoption of transportation electrification in disadvantaged and low-income communities. In FY 21/22, CCCE budgeted a total of $3.1 million with $2.85 million allocated for customer incentives.

In August 2022, staff initiated a waitlist for the EYR Program, as the number of funding requests from pending application was equal to the remaining budget. On September 9, 2022, staff closed the EYR Program. Customers who submitted eligible applications during the waitlist period will receive funding.

Staff has completed the final review and approval of submitted applications. The following tables summarize program performance based on approved applications.

Figure 1 (above): Shows Electrify Your Ride funds distributed by County in FY 21/22.

Figure 2 (above): Shows Electrify Your Ride Program funds distributed by Measure type in FY 21/22.

Figure 3 (above): Shows a breakdown of funds distributed to income qualified applicants. Tier 1 = 201 - 400% FPL; Tier 2 = <200% FPL; N/A = Non-Income Qualified applicants
Figure 4 (above): Shows estiamted annual GHG emissions reductions (MTCO2e) by County resulting from reduced vehicle emissions under the Electrify Your Ride Program in FY 21/22.

Electric Vehicle Supply Equipment Technical Assistance
On May 15, 2022, the Operation Board of Directors authorized CCCE staffs’ recommendation to enter in a two-year agreement with Frontier Energy Inc (“Frontier”) in an amount not to exceed $240,000.

Frontier will support CCCE’s existing EV infrastructure programs by identifying viable project sites at multifamily and public-facing properties, providing outreach and education to property owners, offering free site assessments for EVSE projects, connecting property owners with EVSE installation vendors, and facilitating installer quotes. Additionally, Frontier will provide services to implement budgeted program funds for publicly accessible EVSE in the Monterey Bay Area. This is intended to complement the CALeVIP – South Central Coast Incentive Project, which is currently being implemented in San Luis Obispo and Santa Barbara Counties.

Electrify Your Home Program
On March 9, 2022, the CCCE Operations board approved an agreement with Energy Solutions for program implementation services to support a residential electrification program. Because Energy Solutions is currently partnered with the State of California, this agreement allowed CCCE to integrate CCCE program funds with the statewide California TECH Initiative (“TECH Program”), a statewide residential electrification program. Shortly after launch, the TECH Program experienced an unprecedented uptake of incentives, depleting most of the program funds available in CCCE’s service area. In response, CCCE is “backfilling” funds to provide the same level of incentives as if TECH funds were still available.

The first step toward rolling out a “mid-stream” program directed at providing incentives to contractors is to increase awareness and create a contractor network. Since launching the Electrify Your Home Program on May 10, 2022, over 100 contractors that serve the CCCE service area have enrolled and been certified, allowing them to be eligible to apply for CCCE incentives. As of August 2022, Energy Solutions has received nearly $65,000 in eligible incentive requests from contractors serving CCCE customers and is in the process of fulfilling these requests. With the success of the TECH Program, staff expects this program to continually grow in scale over the coming year.

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. The following tables summarize program performance based on approved applications.

Figure 5 (above): Shows New Construction Electrification Program funds reserved by County. Note: Funds are distributed upon project completion. Projects typically take between 2 – 5 years to complete.

Figure 6 (above): Shows estimated annual GHG emissions reductions by County resulting from increased all-electric housing under the New Constuction Electrification Program in FY 21/22.

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. The following tables summarize program performance based on approved applications.

Figure 7 (above): Shows Ag Electrification Program funds reserved or distributed by County in FY 21/22.

Figure 8 (above): Shows Ag Electrification Program funds approved by status. Funds Reserved includes funds that have been approved but not yet paid out (project still not complete); Submitted for Payment includes funds that have been sent out for payment; Project Complete includes funds that have been received by the applicant.

Figure 9 (above): Shows Ag Electrification Program funds reserved or distributed by equipment type in FY 21/22.

Figure 10 (above): Shows estimated annual GHG emissions reductions by County resulting from ag equipment fuel switching under the Ag Electrification Program in FY 21/22.

Figure 11 (above): Shows the amout of funds reserved or distributed to Small Businesses (“Yes”) compared to larger businesses (“No”). Small Business is defined under Government Code Section 14837(d)(1).

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. CCCE will contribute up to 50% of the cost, not to exceed $200,000 for each school bus.

In May 2022, CCCE closed the Electric School Bus Program after receiving and approving nine (9) applications. Since the program closed, one of the award recipients cancelled their reservation, leaving a total of eight (8) awarded applications. Funds will be distributed directly from CCCE to the bus manufacturer of the awardee’s choosing on behalf of the awardee. The following tables summarize program performance based on approved applications.

Figure 12 (above): Shows Electric School Bus Program funds reserved, by County in FY 21/22. Note: funds are not anticipated to be distributed/paid in FY 21/22 for newly submitted applications. Funds are distributed upon manufacture and delivery of the school bus. Due to supply chain shortages, buses typically take between 1 – 3 years to complete.

Figure 13 (above): Shows the number of Electric School Buses reserved in each County under the FY 21/22 Electric School Bus Program.

CALeVIP – South Central Coast Incentive Project
On August 5, 2021, CCCE – in coordination with State and regional funding partners – launched the CALeVIP – South Central Coast Incentive Project (SCCIP). Implemented by the Center for Sustainable Energy (CSE), this program follows the FY 19/20 CALeVIP – Central Coast Incentive Project to provide incentives for public DC Fast Chargers and Level 2 Electric Vehicle Chargers. CALeVIP – SCCIP will make a total of $12 million in funds available over two years in San Luis Obispo, Santa Barbara, and Ventura counties. CCCE is contributing $1,750,000 with our funds available only to CCCE customers and 50% of the funds dedicated to disadvantaged and low to moderate income communities.

On the first day after launching the SCCIP, the program saw over 250 applications and an oversubscription for DC Fast Charger funds. At this time, all funding is reserved. CSE is moving to finalize funding approval and distribute funding to approved projects.

Figure 14 (above): Shows the status of funds by equipment type for San Luis Obispo County.

Figure 15 (above): Shows the status of funds by equipment type for Santa Barbara County.

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 geared towards encouraging more workforce development proposal submissions. The application closed on February 7, 2022, and CCCE received ten (10) applications requesting a total of $699,029.

After a thorough application review process, CCCE staff selected six grant recipients for the FY 21/22 Community Education and Workforce Grant Program. Subsequently, one of the award recipients could no longer accept the award, bringing the total number of awardees to five (5), for a total of $300,000 in grant funds reserved. Award recipients are provided in the table below:

Recipient Name Project Title Total Funding
Approved
Green Light Labs, LLC.

Electrifyze: Consumer EV Education & EV
Workforce Development for a Fossil Fuel Free
Central Coast $100,000
Romero Institute Electrify my Home! / ¡Electrifica mi casa! $30,000 Santa Barbara Foundation
Partners In Education, Energy Sector Job
Readiness, and Internship Project $50,000
Community Bridges
Family Resource Collective Outreach Program for
Electrification Awareness $100,000
United Way of Santa Barbara County Fun in the Sun 2022 $20,000 Total $300,000
TO: CCCE Operations Board
FROM: Tom Habashi, Chief Executive Officer
DATE: October 12, 2022
RE: Update on CCCE Member Agency Services

MEMBER AGENCY SERVICES UPDATE
On December 16, 2021, CCCE launched Member Agency Services (MAS). This comprehensive offering enables CCCE to proactively engage its 33 Member Agencies in program design, utilization, outreach, and support for non-program initiatives designed to reduce greenhouse gas emissions and the reliance on fossil fuels. CCCE has launched a new standalone webpage to fully communicate MAS efforts:
https://3cenergy.org/rebates-incentives/?term=member-agency Existing program offerings under MAS include:
 Greenhouse Gas Inventory - CLOSED
 Reach Code Program
 Planning, Implementation, and Innovation Grant Program - CLOSED  Light-Duty Electric Vehicle Program - CLOSED
 Medium and Heavy-Duty Electric Vehicle Program - CLOSED In addition to programs, MAS will support Member Agencies in other initiatives furthering CCCE’s strategic goals, including data access and analysis, and regional policy making support.

Provided in this memorandum is an update on recent Member Agency Services implementation activities.

Light-Duty Electric Vehicle Program
As of 09/30/2022, the Light-Duty Electric Vehicle Program is closed and CCCE has approved applications and sent out Letters of Intent to support the purchase and/or installation of electric vehicles and charging equipment at six Member Agencies. Awardees include the Cities of Watsonville, Salinas, Carpinteria, and San Luis Obispo, and the Counties of Monterey and Santa Barbara. Award recipients are included in the table below:

Recipient Measure Type Approved
County of Santa Barbara Electric Vehicles and EV Chargers & Readiness $242,000 City of San Luis Obispo Electric Vehicle Fleet, Chargers, and Readiness $40,000 City of Watsonville Electric Vehicle Chargers and Readiness $39,834 County of Monterey Electric Vehicle Fleet, Chargers and Readiness $110,000 City of Carpinteria Electric Vehicle Chargers and Readiness $13,350 City of Salinas Electric Vehicle Fleet, Chargers and Readiness $99,199 TOTAL $542,383
Medium and Heavy-Duty Electric Vehicle Program
As of 09/30/2022, the Program is closed and CCCE has approved applications and sent out Letters of Intent to support five projects at five Member Agencies with incentives up to $250,000 each. Awardees include the Cities of Santa Cruz, Capitola, Watsonville, Guadalupe, and Carmel by-the-Sea. Staff estimates that over 15 years, these projects will reduce GHG emissions by approximately 5,500 Metric Tons. Award recipients are included in the table below:

Member Agency
Applicant
Project Description Amount Reserved
City of Santa Cruz Trash Hauler $ 250,000
City of Capitola Street Sweeper $ 250,000
City of Watsonville Trash Hauler $ 250,000
City of Carmel by The Sea Street Sweeper $ 250,000
City of Guadalupe Municipal Bus $ 250,000
TOTAL $ 1,250,000
Planning, Implementation, and Innovation Grant Program
On December 9, 2021, CCCE launched the first iteration of the Planning, Implementation, and Innovation Grant Program (Grant Program). The purpose of the Grant Program is to provide CCCE Member Agencies with support for planning and implementation related to the electrification of municipal fleets, properties, and community infrastructure. A total of $600,000 has been made available for the Grant Program, with a maximum grant amount of $150,000 per grant recipient. The application closed on February 7, 2022, and CCCE received nine (9) applications requesting a total of $942,033.

After a thorough application review process, CCCE staff selected six grant recipients for the FY 21/22 Community Education and Workforce Grant Program.  Award recipients are included in the table below:

Recipient Name Project Title Total Funding
Approved
County of Monterey
Sustainability Program
Strategic Planning to Overcome
Barriers to Deep Decarbonization $ 150,000
City of Santa Cruz
Master Municipal Transportation
Electrification Plan $ 75,000
City of Watsonville
Existing Buildings Electrification Pilot in
the City of Watsonville $ 150,000
City of Watsonville*
Regional Climate and Electrification
Grant Administration $ 100,000
City of San Luis Obispo
Fleet Electrification Infrastructure
Roadmap $ 70,000
County of Santa Barbara
Sustainability Division
Equitable Electrification Outreach
through the Central Coast Community
Action Campaign $ 99,053
TOTAL $ 644,053
*This application and project are a coordinated effort among the Counties of Santa Cruz and Monterey, the Cities of Santa Cruz and Watsonville, the Community Foundation of Santa Cruz County, and Ecology Action.

To scale the value and impact of the work CCCE is supporting through these grants, the Planning, Implementation, and Innovation Grant Awardees are now presenting project progress updates at our regular Working Group meetings with focus on electrification of Transportation and Buildings. Some will present during each of the Quarterly Member Agency Meetings and elsewhere as well.

Member Agency 1:1 Engagements
CCCE staff continue engaging and actively scheduling meetings with Member Agency staff to share information about Member Agency Services and solicit information, feedback, and ideas. As of 09/30/2022 CCCE staff have held one-on-one meetings with twenty-five (25) Member Agencies and plan to meet with the remaining by end of calendar year 2022.

Member Agency Building and Transportation Electrification Working Groups CCCE has established and is facilitating working groups focused on building and transportation electrification to drive participation in existing programs and inform future program design; identify common needs, barriers, and scalable solutions for regional electrification; and identify and share resources between Member Agencies and CCCE.

The Building Electrification Working Group (BEWG) has met five times since March 2022. The group meets next on 10/27. Most recently, the BEWG met on 9/15 with 29 participants from 11 Member Agencies. Energy Programs staff facilitated informative presentation including an update on Member Agency Services, a preview of next year’s MAS offerings, and a detailed presentation from TRC regarding CCCE’s forthcoming redesigned Reach Code Program for Member Agencies.

At publication of this report, the Transportation Electrification Working Group (TEWG) will have met four times since April 2022. The group meets next on 12/1. At its most recent meeting on 8/4, the TEWG had presentations from two Member Agency Grantees discussing their fleet electrification planning efforts as well as a presentation from the Electrification Coalition, a non-profit group organization offering no-cost transportation electrification services to public agencies.

TO: Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: October 12, 2022
RE: Overview of CCCE’s FY 22/23 Energy Programs Portfolio and Launch Schedule On September 22, 2022, the CCCE Policy Board of Directors adopted the FY 22/23 Operating Budget that includes approximately $16M for the FY 22/23 Energy Programs Portfolio. Provided in this memorandum is an overview of the FY 22/23 Energy Programs portfolio that staff will administer and/or implement and an associated launch schedule.

FY 22/23 Energy Programs Portfolio Selection and Design FY 22/23 will be CCCE’s fourth year of administering and implementing energy programs. The selection of the FY 22/23 Energy Programs Portfolio is informed by many factors including:
(1) previous years’ program administration experience,
(2) staff research and analysis,
(3) our FY 20/21 Annual Portfolio Evaluation,
(4) feedback from our community and Community Advisory Council, (5) input from our Policy and Operations Boards, and
(6) interaction with other CCA program staff.

The portfolio aims to maximize customer participation, particularly from underserved customers and communities, and increase CCCE’s impact on GHG emissions reduction.

If there was a singular design theme to the FY 22/23 Energy Programs Portfolio, it would be “doing what we do, better”. While there will be new programs, primarily under Member Agency Services, the FY 22/23 Energy Program Portfolio will primarily build and improve upon existing successful and high impact programs. It will do so by: (1) adding new measures that will broaden the range and depth of our offerings, (2) adding new services that will respond to more community needs and opportunities, and (3) adding new segments that will enable us to serve more customers through our programs. It will also leverage targeted utilization of 3rd party vendors to support program implementation of mass market programs and provide technical assistance, particularly related to EV charging infrastructure projects.

FY 22/23 Energy Programs Portfolio
In FY 22/23, CCCE will administer a portfolio of ten programs or initiatives focused on transportation, building, and agricultural electrification including:
 Community Programs
o Electrify Your Ride Program
o Electric Bus Program
o Electrify Your Home Program
o New Construction Electrification Program
o Agriculture Electrification Program
 Member Agency Programs
o Electrify Your Fleet Program
o Charge Your Fleet Program
o Plan Your Fleet Program
o Reach Code Program
o Broadband Access Initiatives
In addition, staff will continue to conduct or initiate research, planning, and design work in the following areas:
 Medium and Heavy-Duty Electric Vehicles and Infrastructure  Commercial Building Electrification
 Residential and Commercial Demand Response
These efforts will position CCCE for success and, if advisable, to administer programs in these areas in the future.

FY 22/23 Energy Programs Portfolio Proposed Launch Schedule FY 22/23 Energy Programs Portfolio Proposed Launch
Community Programs
Agriculture Electrification Program Mid Q1
Electrify Your Ride Program Mid Q1
Electric Bus Program Q2
Electrify Your Home Program Early Q1
New Construction Electrification Program Early Q1
Member Agency Services and Initiatives
Reach Code Program Early Q1
Electrify Your Fleet Program Mid Q1
Charge Your Fleet Program Mid Q1
Plan Your Fleet Program Q2
Broadband Access Initiatives Q2
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: October 12, 2022
RE: Regulatory & Legislative Impact Update
Regulatory
Integrated Resource Planning (“IRP”; Rulemaking.20-05-003) Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (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 2035 and the estimated attendant GHG emissions. The CPUC aggregates the plans to determine whether the electricity sector is on track to hit its portion of California’s 2030 GHG reduction goals while maintaining a reliable grid. The most recent IRPs were due in September 2020, and that IRP cycle concluded in February 2022 when CCCE’s plan was certified along with many others. The next IRP is due on November 1, 2022, and a draft resolution delegating authority to the CEO to approve and submit it is before the Board for a vote at this meeting.

On a related note, on September 8, 2022 the CPUC issued a Ruling proposing changes to the Mid-Term Reliability (MTR) mandate that could have significant impacts on CCCE procurement. The Ruling acknowledges the difficulty of meeting the current MTR requirements caused by both global supply chain conditions and the original structure of the MTR itself. CPUC staff then propose two potential changes to the MTR requirements:
1) Expanding the pool of resources eligible to count towards MTR compliance to include any resource that has come online since January 1, 2020, and 2) Increasing the 2025 procurement requirement commensurate with the amount of capacity that the first change makes newly eligible, functionally equating to a partial extension of the deadlines for 2023 and 2024 procurement out to 2025.

This is the first structural acknowledgment from the Commission of 1) the delays the market and supply chain disruptions of the past few years have caused for new resource development, and 2) the perverse incentive against proactive new resource development created by the original MTR structure, which penalized the load-serving entities who have most proactively pursued new clean resources by including their resources in a “baseline” inventory that does not count toward MTR compliance. CCCE staff have held multiple meetings with CPUC staff and state legislators this year to discuss both issues.

Impacts
The CPUC does not have direct jurisdiction over CCA procurement the way it does for IOUs. However, the CPUC has used its responsibility for achieving GHG reductions to justify ordering all load-serving entities participating in the IRP process (including CCAs) to procure extra resources if it finds the predicted system-wide trajectory 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. CCCE’s assigned slice of those mandates was 57.4 MW and 291 MW respectively, and future IRP cycles could bring additional procurement mandates.

Status
CCCE staff are working to support the proposed changes to the MTR mandate. CCCE filed comments supporting the proposal on September 26th. The proposed changes would need to be put into a Proposed Decision and then voted on by the full Commission in order to take effect, and the Commission has not provided a timeline on which it expects to make a final decision.

Provider of Last Resort (“POLR”; Rulemaking.21-03-011)
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 customers if a CCA or direct access provider fails. Phase 1 of this proceeding focuses on fleshing out and formalizing the IOUs’ responsibilities as POLR. Phase 2 will create a process 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.

The three biggest issues on the table for CCAs are 1) the extent of responsibility the POLR should have for preemptively procuring resources before any customers are returned to POLR service, 2) how the Financial Security Requirement (FSR) should be calculated, and 3) what the POLR’s relationship with compliance requirements such as the Renewable Portfolio Standard and Resource Adequacy programs should be.

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 to the IOU(s) in its service area 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
There have been no major updates in this proceeding since the Commission rejected Southern California Edison’s request to raise CCCE’s FSR from $147,000 to $2.9 million in late June. CCCE has continued to help develop FSR reform proposals that will reduce both the volatility in the amounts asked for and allow CCAs that have demonstrated financial health through obtaining an investment-grade credit rating to post smaller FSR amounts overall. Some of these proposals may be seen in CalCCA’s July comments and August reply comments in this proceeding. Stakeholders are now waiting for an Energy Division staff proposal, and a Decision on the revised FSR methodology is expected in early 2023.

Resource Adequacy Reform (“RA”; Rulemaking.21-10-002)
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. It currently requires all LSEs to demonstrate on an annual and monthly basis that they have purchased enough generating capacity to cover their share of the peak demand. 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 moves 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. These culminated in Decision 22-06-050 in June 2022 selecting a version of slice-of-day developed by Southern California Edison as the next iteration of the RA program, followed by a second series of workshops in July – October 2022 to refine further implementation details. The third and final Decision before the slice-of-day model launches for test-year use in 2023 is expected in Q1 2023.

Impacts
RA procurement has taken up an increasing amount of budget and CCCE 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 will ultimately depend on the outcome of the reform process.

Status
As the slice-of-day workshops continue, CCCE and other load-serving entities are also working through significant uncertainty introduced into RA procurement by the rollout of a Central Procurement Entity (CPE) for Local RA. In 2020 the CPUC created the CPE function and awarded it to PG&E and Southern California Edison (SCE) in their respective service areas in an attempt to address increased Local RA market prices. The CPEs (PG&E and SCE) were charged with procuring Local RA on behalf of all load-serving entities in their service areas and recovering the cost of the procurement directly from ratepayers through the existing Cost Allocation Mechanism (CAM) charge.

The first round of CPE procurement has encountered significant obstacles. In early September stakeholders learned that even after updates to the procurement process, PG&E was only able to procure 74% of the Local RA it was tasked with purchasing. This outcome has highlighted ambiguities around how the CPE function interacts with the System RA requirements that all LSEs are still individually responsible for procuring, creating uncertainty around the amount of System RA CCCE and other CCAs must procure before the Year-Ahead RA compliance deadline on October 31, 2022.

CCCE staff have spoken with Commission leadership and are pursuing all avenues in order to clarify this issue in a timely manner. This includes a Motion for Clarification filed in concert with Peninsula Clean Energy, which was subsequently supported by two more CCAs and a coalition of direct access stakeholders. CalCCA has also filed a Petition for Modification related to how the CPE affects System RA compliance. The CPUC is not obligated to respond to the Motion or the Petition but, given the number of stakeholders weighing in, some Commission response should be forthcoming.

California Energy Commission’s Updated Load Management Standards (LMS) Issue
Apart from the CPUC, the California Energy Commission (CEC) is the other state regulatory agency most involved in energy policy and planning. CA’s Public Resources Code authorizes the CEC to adopt rules and regulations to reduce uneconomic and wasteful consumption of energy. Originally established in 1979, the Load Management Standards (LMS) have resulted in industrial time-of-use rates, commercial audits, and residential load control programs.

The CEC is now undertaking its latest round of updates to the LMS regulations. The draft revisions to the LMS regulations would impose ratemaking requirements on all “utilities” – IOUs, POUs, and CCAs. In order to facilitate demand response and load flexibility, utilities must develop hourly marginal cost rates based on California Independent System Operator (CAISO) marginal cost prices. These rates would be optional for customers to adopt, but development of this option for each customer class would be mandatory.

Impacts
Hourly marginal cost rates are complex to design and implement. Research thus far suggests that the current IOU data management framework is insufficient to support implementation of CCA real-time rates. The proposed LMS updates thus require development of rate options the CCAs may not be technically able to carry out.

The proposed LMS updates also pose a substantive threat to CCAs’ right to set their own rates. The revised regulations require each utility to develop a rate that complies with its requirements and present the rate to the ratemaking authority (e.g., CCA governing boards). The utilities must provide copies of their proposed rate for “informational purposes” to the CEC. Despite the seeming deference to the local ratemaking authority, failure to comply with the regulations can result in the Executive Director of the CEC filing a Complaint at the CEC or seeking injunctive relief.

Status
CCCE has supported CalCCA in pushing back on the proposed regulations in meetings with CEC staff and three rounds of comments. CalCCA’s opposition has been on both jurisdictional and practical grounds, as implementation of real-time rates would not be feasible for CCAs under the existing data access systems maintained by the IOUs. The CEC has not changed the draft regulations to address CCA concerns. The draft regulations were originally set to be voted on and likely approved by the CEC Commissioners on August 10th. The CEC withdrew them from the agenda before the meeting but they have now been added to the agenda for the October 12, 2022 CEC voting meeting.

Legislative
With the legislature in recess the legislative side of policymaking is in its off-season. Governor Newsom had until the end of September to sign bills that had passed the legislature, and he did not veto any of the legislation CCCE had been following. The bills highlighted in the last Board update, SB 1020 (2035 and 2040 clean energy goals), AB 1279 (economy-wide carbon neutrality by 2045), and SB 846 (Diablo Canyon extension), have all been signed into law.

In the final three months of the recess, staff will focus on identifying opportunities created by this year’s new legislation and preparing for the 2023 session. Key activities include:
1) Following the rollout of the new funding programs created in the FY 2022-2023 state budget and applying for those that are relevant to CCCE’s activities 2) Hiring a professional lobbyist to represent CCCE in Sacramento starting in 2023 3) Scheduling meetings with the district offices of legislators representing CCCE communities to share information about CCCE programs available to their constituents 4) After the November elections, identifying any newly elected legislators representing CCCE communities and reaching out to educate them about CCCE 5) Identifying legislative priorities for the 2023 session 6) Working with other stakeholders to develop potential bill ideas for the 2023 session CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 eScribe Software Ltd. $21,000 9/27/2022 9/26/2023 Agenda management software and support service for a one-year term 2 Nixon Peabody LLP $5,000 9/13/2022 9/30/2022 Legal review of CCCE's investment management agreement with RBC 3 Keyes & Fox LLP $93,000 9/27/2022 As needed Joint representation in matter related to A.22-04-001 and 2023 ERRA Forecast - CCCE to pay 1/3 4 TransPerfect International, LLC $35,000 9/23/2022 9/22/2025 Web Translation Services 5 TEC Group, Inc. $95,000 9/15/2022 9/30/2023 Temporary staff augmentation service for a one-year term with early termination option Staff Report Item 6
TO: CCCE Operations Board
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Receive Update on FY 22/23 Reach Code Program (Discussion Item) DATE: October 12, 2022
RECOMMENDATION:

This report recommends the Operations Board receive an update on CCCE’s FY 22/23 Reach Code Program.

BACKGROUND:

On September 16, 2021, the Central Coast Community Energy (CCCE) Policy Board adopted a budget and Energy Programs portfolio that included the third iteration of CCCE’s Reach Code Program. As part of a $60,000 budget, the FY 21/22 Reach Code Program offered a $15,000 incentive to Member Agencies after the successful codification of a local ordinance that exceeded the requirements of the State’s energy code. Two Member Agencies took advantage of CCCE’s previous Reach Code Program; the City of Santa Cruz in FY 19/20 and the City of San Luis Obispo in FY 20/21.

On August 10, 2022, the CCCE Operations Board approved and authorized the CEO to execute an agreement with TRC Engineers, Inc. (TRC) to provide technical assistance and stakeholder outreach services to support Member Agency reach code adoption. Under this agreement, the total amount payable to TRC shall not exceed (the “NTE”) the sum of $121,935 as follows:

1. The NTE in FY 21/22 shall not exceed $21,935. These costs are included in the approved FY 21/22 Operating Budget.

2. The NTE in FY 22/23 shall not exceed $100,000 or such amount consistent with the approved FY 22/23 Operating Budget.

On September 22, 2022, the CCCE Policy Board of Directors adopted the FY 22/23 Operating Budget and Energy Programs Portfolio including a Reach Code Program.

DISCUSSION/ANALYSIS:

Emissions from building and transportation natural gas use comprise the largest sources of greenhouse gas (GHG) emissions in CCCE’s service area. Electrification transitions new and existing buildings and vehicles away from fossil fuel to clean energy provided by CCCE. By developing electrification reach codes that exceed state requirements, Member Agencies in CCCE’s service area can have a significant impact on GHG emissions. In addition, all-electric buildings are safer, healthier, and more cost effective to build and operate.

The successful codification of a reach code, however, can be a technically challenging and time-consuming process requiring significant outreach on behalf of local governments. As a part of CCCE’s Building Electrification Working Group, several Member Agencies interested in pursuing reach codes shared that technical assistance and support engaging key stakeholders are the areas they need help to adopt reach codes.

As a result, CCCE has redesigned its past Reach Code Program that only provided post-codification incentives with a new program that provides support to Member Agencies and their staff from stakeholder outreach and engagement to ordinance adoption and implementation. CCCE’s new Reach Code Program aims to develop and advance building electrification and electric vehicle (EV) infrastructure reach codes with its Member Agencies. Reach codes can update local building codes concurrently with the state required adoption of the new Building Standards Code or Title 24 of the California Code of Regulations. They can also take the form of local municipal or zoning code amendments that are not tied to the three-year state building code cycle and can be adopted indefinitely.

CCCE’s program implementer, TRC, will leverage many of the resources developed by other CCAs including Peninsula Clean Energy, Silicon Valley Clean Energy, and East Bay Community Energy to support reach code adoption by Member Agencies in CCCE’s service area. Leveraging these resources including model codes, tools and templates, and established processes will increase efficiency and reduce redundant work.

FISCAL IMPACT:

The costs for the FY 22/23 Reach Code Program are included in the FY 22/23 Operating Budget adopted by the Policy Board on September 22, 2022.

CONCLUSION:

The Operation Board’s support of the FY 22/23 Reach Code Program Redesign and Implementation will allow CCCE to better support Member Agency reach code adoption and facilitate cost-effective building and transportation electrification on a regional scale.

Staff Report Item 7
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve Resolution No. OB-2022-04 Adopting Procedures for the Selection and Terms of the Operations Board Chair and Vice-Chair and Recommending Corresponding Amendments be Made by the Policy Board to the Central Coast Community Energy Operating Rules and Regulations (Action Item)
DATE: October 12, 2022
RECOMMENDATION:

This recommends that the Operations Board approve Resolution No. OB-2022-04 adopting procedures for the selection and terms of the Operations Board Chair and Vice-Chair and recommending corresponding amendments be made by the Policy Board to the Central Coast Community Energy Operating Rules and Regulations.

BACKGROUND:

The CCCE Joint Exercise of Powers Agreement Section 3.9 holds that the Operations Board select its Chair and Vice Chair from among themselves to serve one-year terms with no limit on the number of terms. The CCCE Operating Rules and Regulations Article VIII, Section 2 calls for the election of Board Officers, including Chair and Vice-Chair, to take place at an annual organizational meeting. Article XVIII states that:

These Rules may be amended by a majority vote of the full membership of the Policy Board but only after such amendment has been proposed at a regular meeting and acted upon at the next or later regular meeting of the Policy Board for final adoption.

The proposed amendment shall not be final acted upon unless all members of the Policy Board have received written notice of the amendment at least 10 days prior to the date of the meeting at which final action on the amendment is to be taken. The notice shall include the full text of the proposed amendment.

When initially formed in 2017, CCCE (then called Monterey Bay Community Power) consisted of 19 member agencies located in Monterey, San Benito, and Santa Cruz Counties. Since then, the agency has expanded to include 34 member agencies located across Monterey, San Benito, San Luis Obispo, Santa Barbara, and Santa Cruz Counties.

DISCUSSION/ANALYSIS:

With the expansion of CCCE, the agency now serves a region spanning over 13,000 square miles, including a wide range of diverse communities. The CCCE organizing documents are explicit in detailing how the 34 member agencies are to be fairly represented in the governance of the CCA, including allocation and sharing of seats on the Policy and Operations Board. When drafted, however, the Operating Rules and Regulations did not contemplate that the organization would expand to the extent it had. It did not include measures to ensure that the leadership of those Boards would be structured to ensure equal representation by the north and south regions now being served by CCCE.

The Policy Board’s current leadership has struck an equitable balance, with the Chair and Vice Chair offices being split between a director from one of the northern three county areas (Monterey, San Benito, Santa Cruz) and a Director from one of the southern two county areas (San Luis Obispo, Santa Barbara). The northern territory represents roughly 53% of CCCE’s total retail demand. The southern region represents nearly 47% of total retail demand. This resolution will adopt this approach as the regular practice of the Operations Board, with additional detail for the term and rotation of the offices.

Specifically, the resolution calls for the Chair and Vice-Chair offices to rotate on a two calendar-year basis between a director from the northern county areas and a Director from the southern county areas.

North Member Agencies South Member Agencies
City of Capitola
City of Carmel
City of Del Rey Oaks
City of Gonzales
City of Greenfield
City of Hollister
City of Marina
City of Monterey
City of Pacific Grove
City of Salinas
City of San Juan Bautista
City of Sand City
City of Santa Cruz
City of Scotts Valley
City of Seaside
City of Soledad
City of Watsonville
County of Monterey
County of San Benito
County of Santa Cruz
City of Arroyo Grande
City of Atascadero
City of Buellton
City of Carpinteria
City of Goleta
City of Grover Beach
City of Guadalupe
City of Morro Bay
City of Paso Robles
City of Pismo Beach
City of San Luis Obispo
City of Santa Maria
City of Solvang
County of Santa Barbara
The resolution further recommends that the Policy Board take action to amend the Operating Rules and Regulations to require this practice going forward for both boards in addition to updating the parties named to include the additions of Buellton and Atascadero as member agencies.

FISCAL IMPACT:

No fiscal impact.

CONCLUSION:

Staff recommends the Operations Board approve Resolution No. OB-2022-04 adopting procedures for the selection and terms of the Operations Board Chair and Vice-Chair and recommending corresponding amendments be made by the Policy Board to the Central Coast Community Energy Operating Rules and Regulations.

ATTACHMENT(S):

1. Resolution OB-2022-04

2. Draft Amended Operating Rules and Regulations
RESOLUTION NO. OB-2022-04

A RESOLUTION OF THE CENTRAL COAST COMMUNITY ENERGY

OPERATIONS BOARD OF DIRECTORS ADOPTING PROCEDURES FOR THE

SELECTION AND TERMS OF THE OPERATIONS BOARD CHAIR AND VICE-CHAIR AND RECOMMENDING CORRESPONDING AMENDMENTS BE MADE

BY THE POLICY BOARD TO THE CENTRAL COAST COMMUNITY ENERGY

OPERATING RULES AND REGULATIONS
WHEREAS, Central Coast Community Energy (the “Authority”) was originally formed as Monterey Bay Community Power Authority on February 21, 2017, pursuant to a Joint Exercise of Powers Agreement (“Agreement”) to study, promote, develop, conduct, operate, and manage energy programs in the Tri-County region of Santa Cruz, Monterey, and San Benito Counties; and WHEREAS, pursuant to Section 2.4.12 of the Authority’s Joint Powers Agreement, the Policy Board of the Authority may adopt Operating Rules and Regulations (“Rules”) consisting of bylaws and other rules, regulations and procedures governing the operation of the Authority that the Board considers appropriate to include in such Rules; and
WHEREAS, on June 6, 2018, the Policy Board approved Resolution No. PB-2018-04 to adopt initial Rules; and
WHEREAS, on September 2, 2020, the Policy Board approved Resolution No. PB-2020-03 approved certain amendments to the Rules; and
WHEREAS, on December 5, 2018, the Policy Board approved Resolution No. PB-2018-07 approving Amendment No. 1 to the Agreement to include the Cities of Morro Bay and San Luis Obispo; and WHEREAS, on December 4, 2019, the Policy Board approved Resolution No. PB-2019-04 approving Amendment No. 2 to the Agreement to include the County of Santa Barbara and the Cities of Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Goleta, Carpinteria, and Solvang; and
WHEREAS, on June 3, 2020, the Policy Board approved Resolution No. PB-2020-02 approving Amendment No. 3 to the Agreement to change the name of the Authority, effective September 4, 2020, to Central Coast Community Energy in order to better reflect its expanded service territory; and WHEREAS, on September 4, 2020, the Policy Board approved Resolution No. PB-2020-05 approving Amendment No. 4 to the Agreement to include the City of Buellton; and WHEREAS, on September 21, 2022, the Policy Board approved Resolution No. PB-2022-02 approving Amendment No. 5 to the Agreement to include the City of Atascadero; and WHEREAS, the Operations Board seeks to ensure that its officers are drawn from member agencies that reflect the full geography of the JPA’s service area; and WHEREAS, the Operations Board finds that a two-year rotation of the Chair and Vice-Chair positions between member agencies located in any of the three northern county areas (Monterey, San Benito, Santa Cruz) and any of two southern county areas (San Luis Obispo, Santa Barbara) is an equitable and efficient way to ensure geographic representation among Board leadership; and WHEREAS, Article XVIII of the Rules allow the Policy Board to act to amend the rules after an amendment has been proposed at a previous regular meeting and all members of the Policy Board have received written notice of the amendment at least 10 days prior to the date of the meeting at which final action on the amendment is to be taken; and
WHEREAS, the Operations Board recommends that the Policy Board amend the Rules to add that the Board Chair and Vice-Chair officers for all CCCE Boards shall be Directors representing member agencies from the northern (Monterey, San Benito, Santa Cruz) and southern (San Luis Obispo, Santa Barbara) county areas on a two-year rotating basis.

NOW, THEREFORE, THE CENTRAL COAST COMMUNITY ENERGY OPERATIONS BOARD OF DIRECTORS DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

1. The Operations Board shall adopt as its policy that the Board Chair and Vice-Chair officers shall be selected such that one Officer be selected from Directors representing member agencies from the northern (Monterey, San Benito, Santa Cruz) county area and the other Officer shall be selected from Directors representing member agencies from the southern (San Luis Obispo, Santa Barbara) county areas, with the northern and southern representation of the Chair and Vice-Chair positions rotate on a two-year basis.

2. The Operations Board recommends that the Policy Board adopt correlating amendments to the Central Coast Community Energy Operating Rules and Regulations, which are attached hereto as Attachment A.

3. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED this 12th day of October 2022, by the following vote:

AYES:

NOES:

ABSENT:

Chair, Carlos Palacios
Attest:

Board Clerk, Heather Vowell

CENTRAL COAST COMMUNITY ENERGY

OPERATING RULES AND REGULATIONS

ARTICLE I

FORMATION
Central Coast Community Energy (the “Authority”) was established on February 21, 2017 pursuant to the execution of the Joint Exercise of Powers Agreement (the “JPA”) by the Counties of Monterey, Santa Cruz, and San Benito, and those cities and towns within the Counties of Monterey, Santa Cruz, and San Benito who become signatories to the JPA. The Initial Participants in the Authority who executed the JPA within 180 days of the establishment of the Authority are, as follows: County of Santa Cruz, County of Monterey, County of San Benito, and the Cities of Santa Cruz, Marina, Sand City, Seaside, Carmel, Monterey, Pacific Grove, Greenfield, Gonzales, Soledad, Hollister, San Juan Bautista, Capitola, Watsonville, Salinas and Scotts Valley.

The Authority’s membership was subsequently expanded in December 20189, and December 201920, September 2020, and September 2022 to include the County of Santa Barbara and the cities of Arroyo Grande, Atascadero, Buellton, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo, Santa Maria, and Solvang.

The Initial Participants and all subsequent members of the Authority are referred to as Party or Parties in these Operating Rules and Regulations (“Rules”). As defined by the JPA, these Rules consist of rules, regulations, policies, bylaws and procedures governing the operation of the Authority. The definition of terms used in these Rules shall be the same as contained in the JPA, unless otherwise expressly provided herein. If any provision of these Rules conflicts with the JPA, the JPA shall govern.

ARTICLE II

PURPOSES
The Parties entered into the JPA for the purposes of reducing greenhouse gases, providing electric power to customers at affordable rates, carrying out programs to reduce fossil fuel energy consumption, stimulating and sustaining the local economy by lowering electric rates and creating local jobs and promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources. Pursuant to the JPA, the Authority was formed to study, promote, develop, conduct, operate, and manage energy programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. These programs include but are not limited to the establishment of a Community Choice Aggregation (“CCA”) Program, which is an electric service enterprise available to cities and counties pursuant to California Public Utilities Code Sections 331.1(c) and 366.2, in accordance with the terms of the JPA.

ARTICLE III

OFFICES
Section 1. Principal Office. The principal office for the transaction of the business of the Authority shall be located at 70 Garden Court Suite 300 Monterey, CA 93940 or at such other future location that may be selected by the Chief Executive Officer (“CEO”) within the area where the Authority is qualified to do business subject to the approval of the Policy Board of Directors (“Policy Board”) of the Authority.

Section 2. Other Offices and Notice. The CEO may also establish one (1) or more subordinate offices at any place or places within the area where the Authority is qualified to do business subject to the approval of the Policy Board. Written notification shall be given within seven (7) days by the Secretary of the Authority to each Party of any change in the location of the principal office or any subordinate office.

ARTICLE IV

BOARD OF DIRECTORS
Section 1. Powers of Directors. Subject to the powers and limitations as provided by law, the JPA, or these Rules, all powers of the Authority shall be exercised, its property controlled and its affairs conducted by two governing bodies consisting of a Policy Board and an Operations Board of Directors of the Authority (individually referred to herein as a “Board,” and collectively, the “Boards”) as is further specified in the JPA.

Section 2. Board Authority. For the purpose of governing the Authority, and consistent with Article 3 of the JPA, the Policy Board shall have the authority to make all high-level decisions of the Authority and the Operations Board shall be empowered to manage the details of implementing all of those high-level decisions. The hierarchical organization chart of the Authority’s organizational structure including its lines of authority begins with the Policy Board at the top layer of governance and the Operations Board at the next level of governance. The Policy Board shall have the full authority to determine the scope, manner and means of all governing functions of the Authority, including but not limited to, the manner in which the Operations Board holds its meetings and performs its duties. The Policy Board shall govern the scope of the Authority’s activities and actions described in Sections 3.3.1 and 3.3.3 of the JPA and in all other sections of the JPA that require Policy Board approval. The Operations Board shall govern, subject to the Policy Board’s direction, the scope of the Authority’s activities and actions described in Sections

3.3.2 and 3.3.4 of the JPA. The Operations Board shall perform its duties according to the parameters set forth by the Policy Board. Joint approval of the Boards shall be required solely for the scope of activities and actions that require joint approval in Section 3.3.5 of the JPA, which relates to litigation related matters of the Authority. The Policy Board shall be empowered to modify any action taken by the Operations Board in the furtherance of the Policy Board’s over-sight and decision-making role as the top level of governance of the Authority. The Boards shall be entitled to rely upon the opinion of the Authority’s General Counsel to determine whether their actions comply with the guidelines, rules and intent of the JPA and these Rules.

Section 3. Board Liaisons and Coordination. Each Board shall designate a representative (“Board Liaison”) to attend the other Board’s meetings to clarify any recommendations and decisions already executed by the other Board. Each Board Liaison shall present a report on its Board’s most recent prior activities to the other Board as a regular standing agenda item. In all matters, the Board Liaisons, Chairs, CEO and General Counsel shall ensure the Boards are well-aligned around their respective roles and responsibilities.

Section 4. Appointments. The governing body of each Party shall appoint and designate in writing to the Authority one regular Director for the Policy Board and one regular Director for the Operations Board who shall be authorized to act for and on behalf of the Party on all matters within the power of the Authority. The governing body of each Party also shall appoint and designate in writing to the Authority one alternate Director for the Policy Board and one alternate Director for the Operations Board who may vote on all matters when the regular Director is absent for its applicable Board meeting. The Authority shall be listed by each governing body in its Rules of Procedure for appointing regular and alternate members of local agencies, and such rules shall comply with the requirements of the JPA. All regular Directors and alternate Directors of the Boards shall be appointed according to the formula required by Article 3 of the JPA. The Parties shall notify the Secretary of the Authority, in writing, of all such appointments within thirty days thereof. On an annual basis in February, the governing body of each Party shall, in writing, confirm the appointment of their Director and alternate Director.

Section 5. Terms. Under Section 3.1.4 of the JPA, the Policy and Operations Boards’ seats include one each for the member Counties, with the remaining seats based on a regional allocation by each Party’s population size so long as the JPA maintains more than eleven member agencies. Subject to this membership threshold minimum, each Party with a population of 50,000 and above shall be allocated one seat with no term limits. Each Party with a population below 50,000, shall be allocated a shared board seat on a sub-regional basis, as set forth in Exhibit C of the JPA, as determined by agreement among the Parties sharing the seat or through the City Selection Committee in the respective County. Any agreements among the Parties sharing a seat must comply with the terms and intent of the JPA and these Rules. Directors in shared Board seats shall serve two-year terms of office, but may be reappointed by their appointing Party and serve multiple terms. When a shared Board seat is vacant on the Board due to an expired term, the termed out Board member can continue to serve until a new appointment is made.

Section 6. Resignation. Any Director may resign at any time by giving written notice of such resignation to the Secretary of the Authority. Such resignation shall be effective at the time specified, and acceptance of such resignation shall not be necessary to make it effective.

Section 7. Removal. Under Section 3.1.1 of the JPA, each Director shall serve at the pleasure of the governing body of their Party, and may be removed or replaced, with or without cause, by the respective governing body of the Party at any time.

Section 8. Withdrawal/Expulsion. Directors who represent Parties which withdraw or are expelled as Parties to the JPA shall be removed as members of the Board and all committees.

Section 9. Removal of Board Members for Cause. A Director may be removed by their respective Board for cause. Cause shall be defined for the purposes of this section as follows:
a. For the Operations Board, absence from three Board meetings in any year or two consecutive Board meetings.
b. For the Policy Board, absence from two Board meetings in any year. c. Unauthorized disclosure of confidential information or documents from a closed session or the unauthorized disclosure of customer confidential information in violation of the Authority’s Customer Confidential Information Policy or information or documents provided to the Director on a confidential basis and whose public disclosure would violate California law, California Public Utility Commission regulations, or may be harmful to the interests of the Authority.

Written notice shall be provided to the Director proposed for removal and the governing body that appointed such Director at least thirty days prior to the meeting at which the proposed removal will be considered by the Board. The notice shall state the grounds for removal, a brief summary of the supporting facts, and the date of the scheduled hearing on the removal. The Director proposed for removal shall be given an opportunity to be heard at the removal hearing and to submit any supporting oral or written evidence. A Director shall not be removed for cause from the Board unless two-thirds of all Directors of their respective Board (excluding the Director subject to removal) vote in favor of the removal.

Section 10. Vacancies and Process for Non-Compliance. If at any time a vacancy occurs on the Board, for whatever reason, the respective Party shall appoint a replacement to fill the position of the previous Director within ninety (90) days of the date that such position becomes vacant. In the event a Party fails to seat a Director as required by the JPA and these Rules, the Authority shall notify the representative for the Party. If a shared-seat Party continues to be in non-compliance for more than thirty (30) days after this notification, the Authority shall either notify: (i.) the Parties sharing the seat to require they take action appoint a new Director and alternate Director pursuant to their agreement, or; (ii.) the City Selection Committee for the shared seat as allocated in Exhibit C of the JPA and the City Selection Committee shall appoint a new Director and alternate Director to serve on the Board. If a non-shared seat Party continues to be in non- compliance for more than thirty (30) days after the notification, the Authority shall notify the governing body of the Party at the governing body’s next regular or special meeting, and such governing body shall fix the non-compliance by its subsequent meeting.

Section 11. Participation by Non-Seated Shared-Seat Parties. A Non-Seated Party is a Party that shares a seat pursuant to the regional allocation set forth in Exhibit C of the JPA, but is not currently seated as a Director pursuant to either the agreement among the parties sharing the seat or through the City Selection Committee. A Non-Seated Party’s governing board may, but is not required to, appoint a Limited Member to the Policy and Operations Boards. The Non-Seated Parties shall notify the Secretary of the Authority, in writing, of all such Limited Member appointments within thirty days thereof.

The Limited Member may participate in the discussion of any item on the Boards’ open session agenda.

The Limited Member may not: (i.) count toward a quorum for Brown Act or voting purposes; (ii.) serve as an Officer of the Boards or the Authority; (iii.) make or second a motion on an item before the Board; (iv.) vote on any item before the Board; (v.) attend or participate in closed session agenda items; (vi.) serve on the CEO’s Energy Risk Management Committee, or; (vii.) participate or take action in any manner not expressly authorized in these rules.

Limited Members are not intended to evolve into full Director positions except as may occur the appointment procedure in Article 3 of the JPA. Limited membership is not intended to, and shall not, extend beyond Non-Seated Parties.

ARTICLE V

AUTHORITY PARTICIPATION
Section 1. Addition of Parties. Under Section 2.4.14 of the JPA, the Authority is authorized to permit additional Parties to join the JPA after the Effective Date. Approval of the Policy Board shall be required prior to accepting a new Party to the JPA. Subject to a two-thirds vote of the Policy Board, as required by Sections 3.7.1 and 7.4 of the JPA to amend the JPA, including the requirement to provide prior notice to all Parties before such vote occurs, other incorporated municipalities and counties may become Parties upon (a) the adoption of a resolution by the governing body of such incorporated municipality or such county requesting that the incorporated municipality or county, as the case may be, become a member of the Authority, (b) the adoption, by an affirmative vote of the Policy Board of a resolution authorizing membership of the additional incorporated municipality or county, specifying the membership payment, if any, to be made by the additional incorporated municipality or county to reflect its pro rata share of organizational, planning and other pre-existing expenditures, and describing additional conditions, if any, associated with membership, (c) the adoption of an ordinance required by Public Utilities Code Section 366.2(c)(10) and execution of the JPA and other necessary program agreements by the incorporated municipality or county, (d) payment of the membership dues, if any, and (e) satisfaction of any conditions established by the Policy Board.

Section 2. Board Seats. New Board seats for an additional Party or Parties shall be allocated as set forth in Section 3.1.4 of the JPA.

ARTICLE VI

DUTIES OF OFFICERS AND TERMS OF OFFICE
Section 1. Chair. The duties of each Board Chair shall be to preside over its Board’s meetings, sign all resolutions, contracts and correspondence adopted or authorized by the Board that they represent, act as a liaison between the Board and the CEO to help ensure the Board’s directives and resolutions are carried out, lead the Board to carry out its governance functions and ensure the Board has approved policies to help ensure sound and compliant governance and management of the Authority.

Section 2. Vice-Chair. The duties of each Board Vice-Chair shall be to perform the duties of Chair in the absence of such officer.

Section 3. Terms. Under Section 3.9 of the JPA, the Chair and Vice-Chair shall serve one year term, but there shall be no limit on the number of terms held by either the Chair or Vice-Chair, other than the limit described in Section 5..

Section 4. Initial Terms of Office. Notwithstanding the one-year term generally established for the Chair and Vice-Chair above, the terms of the initial Chair and Vice-Chair elected by the Boards shall not expire until the annual meeting of each Board pursuant to Sections 2 and 3 of Article VIII of these Rules, respectively.

Section 5. Regional Rotation. Eligible candidates for the Chair and Vice-Chair offices, respectively, shall be determined by a two-year rotation between Directors representing member agencies from the northern county areas of the JPA (Monterey, San Benito, Santa Cruz) and Directors representing member agencies from the southern county areas of the JPA (San Luis Obispo, Santa Barbara). In years where the Chair represents a northern Party, the Vice-Chair shall be selected from the southern parties, and vice versa. Every two years, the north-south regional eligibility for Chair and Vice-Chair offices shall rotate.

Section 65. Treasurer. The Treasurer shall act as the depositary of the Authority and have custody of all the money of the Authority, from whatever source, and as such, shall have all the duties and responsibilities specified in Cal. Gov. Code Section 6505.5 governing Joint Powers Authorities. The Policy Board may require the Treasurer and/or Auditor to file with the Authority an official bond in an amount to be fixed by the Policy Board, and if so requested, the Authority shall pay the cost of premiums associated with the bond. The Treasurer shall report directly to the Policy Board and shall comply with the requirements of treasurers of incorporated municipalities. The positions of Treasurer and Auditor may be combined into one position known as the Treasurer/Auditor of the Authority. Neither the Treasurer nor the Auditor needs to be a Director. There shall be no term limits for the Treasurer or Auditor. The Policy Board may transfer the responsibilities of the Treasurer and Auditor to any person or entity permitted by law.

Section 76. Secretary. Each Board shall have a Secretary who will be responsible for keeping the minutes of all meetings of its Board and all other official records of the Authority. The Secretary does not need to be a Director. If the Secretary appointed is an employee of the Authority, that employee may serve as Secretary of both Boards. There shall be no term limits for the Secretary. As used herein, the term “Secretary” shall be synonymous with the term “Board Clerk.” Section 87. Removal. An officer of the Board shall be subject to removal with or without cause at any time by a majority vote of the entire Board that he or she represents or, in the case of the Operations Board, by a majority vote of the Policy Board.

Section 98. Ethics Training Legal Compliance. Pursuant to Cal. Gov. Code Section 53235, all Board members that desire to seek reimbursement for Authority related travels expenses in accordance with the Authority’s reimbursement policy shall complete at least two hours of training in general ethics principles and ethics laws (“AB 1234 ethics training”) relevant to his or her public service every two years. Board members may satisfy this requirement by completing the Fair Political Practices Commission (“FPPC”) online 1234 Local Ethics Training program and submitting the Certification of Completion to the Board Clerk.

Section 109. Statements of Economic Interest. Each Director shall comply with the Authority’s Conflict of Interest Code, fully respond to all requests from Authority staff in regard to conflict of interest issues that may arise and timely submit all applicable forms, including Statements of Economic Interest (Form 700), Assuming, Annual, and Leaving Office Statements with the Board Clerk. The Board Clerk shall make and retain copies of these forms in compliance with applicable law and the Authority’s Conflict of Interest Code.

ARTICLE VII

COMMITTEES
Section 1. Committees. Committees shall be standing or special (“ad hoc”) and may be appointed by either a majority vote of either Board or the Board’s Chair (“appointing committee”). Each committee shall exercise such power and carry out such functions as are delegated to it at the time of appointment.

Except as otherwise provided by the JPA, these Rules, or the appointing committee, such committees shall be advisory only and are subject to the control and direction of the appointing committee. Except as may otherwise be provided for in the JPA or these Rules, any expenditure of funds by a committee shall require prior approval from the appointing committee. All committees shall meet on an “as needed” basis, either in person or by teleconference, and shall report the outcome of such meetings during the next regular meeting of the Board.

Section 2. Community Advisory Council. The Community Advisory Council (“CAC”) shall be a standing committee comprised of fifteen members, representing customers and stakeholders from within the area where the Authority is qualified to do business, formed to advise the Policy and Operations Boards. The term of service of each CAC member will be three years and CAC members can serve only two terms; regardless of the foregoing, the initial terms of the CAC members shall vary from one to three years based on a random selection process in order to allow for staggered appointments. On an ongoing basis, the Authority’s staff shall accept and solicit nominations from citizens that reside or work within the Authority’s territory to become a member of the CAC. A list of all CAC member applicants by geography, skills and association, along with copies of all completed applications, shall be provided to an ad hoc subcommittee of the Policy Board comprised of the Policy Board’s members that represent each county within the area where the Authority is qualified to do business. At the Policy Board’s annual meeting in September of each year, the CAC members shall be selected by a majority of the persons entitled to vote at a meeting at which a quorum is present of the Policy Board. The CAC Chair, or designee, will be the liaison between the Policy Board, Operations Board and the CAC and to the extent requested by each Board subject to the limits of the JPA and applicable law. The CAC shall provide feedback to the Authority on proposals and recommendations and policies as directed by the Boards and the CAC’s by-laws. The bylaws of the CAC shall be drafted by the seated CAC members. Prior to becoming effective, the scope and bylaws of the CAC, including any amendments thereto, must be approved by a majority of the persons entitled to vote at a meeting at which a quorum is present by both Boards during their respective meetings.

Section 3. Audit and Finance Committee. The Boards’ Audit and Finance Committee ("AF Committee”) shall be a permanent standing committee. The AF Committee shall consist of up to five voting members made up of Directors from the Boards. All members of the AF Committee shall be: (1) generally knowledgeable about governmental accounting and finance issues and (2) selected by the Chair of the Policy Board. The purpose of the AF Committee is primarily to provide financial oversight for the Authority. The AF Committee shall meet quarterly, and as needed. AF Committee members shall serve two, three-year terms. The AF Committee shall have the following duties:
a. Advise and work with the Authority’s staff on budgeting, audits, financial planning/reporting, internal controls, accountability policies and investments. b. Review the proposed annual budget of the Authority prior to presentation to the Policy Board.
c. Provide oversight of the preparation of the annual audit of the Authority's financial statements and review the completed audit reports for clarity, soundness and potential issues prior to the Policy Board’s review.
d. Recommend policies and procedures on financial matters to the Policy Board. e. Be available to review the proposed budget or any financial transactions that might require an in-depth review prior to the Policy Board’s approval. f. Perform other duties as assigned by the Policy Board. g. Delegate any of these duties and responsibilities as it deems appropriate.

Section 4. Executive Committee. The Boards’ Executive Committee shall be a permanent standing committee. The Executive Committee shall consist of up to seven voting members made up of Directors from the Boards. All members of the Executive Committee shall be selected by the Chair of the Policy Board. The purpose of the Executive Committee is primarily to provide general oversight for the Authority. The Executive Committee shall meet quarterly, and as needed. Executive Committee members shall serve two, three-year terms. The Executive Committee shall have the following duties:
a. Advise and work with the Authority’s staff to review significant or urgent organizational issues and make initial recommendations for action to the full Policy or Operations Board as may be appropriate.
b. Perform other duties as assigned by the Policy Board.

ARTICLE VIII

MEETINGS
Section 1. Regular Meetings. Regular meetings of the Boards shall be held at such day, time, and place as the Boards may determine subject to any general directives set by the Policy Board.

Section 2. Annual Meeting of Policy Board. The Policy Board shall hold an annual organizational meeting in September of each year beginning in 2020. The meeting will qualify as a "regular" meeting pursuant to the JPA, but will include annual organizational matters. This annual meeting shall include on its agenda the election of Board Officers, the installation of new Directors (if any), appointment of a Board Liaison, appointment of new CAC members, establishment of the Policy Board’s next year's meeting schedule and the transaction of other business.

Section 3. Annual Meetings of Operations Board. The Operations Board shall hold an annual organizational meeting in September of each year beginning in 2020. The meeting will qualify as a "regular" meeting pursuant to the JPA, but will include annual organizational matters. This annual meeting shall include on its agenda the election of Board Officers, the installation of new Directors (if any), the appointment of its Board Liaison, establishment of the Operations Board’s next year's meeting schedule and the transaction of other business.

Section 4. Annual Joint Meeting of Policy and Operations Boards and CAC. The Policy and Operations Boards, along with the CAC shall hold an annual joint meeting in September of each year beginning in 2020. This annual joint meeting shall include on its agenda speakers and presentations providing an overview of CCCE’s programs, operations, accomplishments, goals, and a detailed budget presentation.

No action shall be taken at the at the annual Joint Meeting.

Section 5. Special Meetings. Per Section 54956 of Cal. Gov. Code and the JPA, special meetings may be called by the Chair of the respective Board or by a majority of the members of the respective Board by delivering notice personally, or by any other means, to each member of its Board and to each local newspaper of general circulation, radio or television station who has requested such notice in writing. The notice shall be received at least twenty-four (24) hours before the time of the meeting as specified in the notice, except for emergency meetings held in compliance with Section 54956.5 of Cal. Gov. Code. The notice for special meetings shall specify the time and place of the special meeting and the business to be transacted or discussed, and no other business shall be considered at such meetings. A Board member may, at or prior to the time of the special meeting, file a written waiver of notice with the Secretary of the Authority. The Board Clerk will ensure that a December date is reserved for a potential Special Meeting pursuant to this section in order to facilitate a quorum if such a special meeting becomes necessary.

Section 6. Notices of Meetings. Notices of the time and place of any regular meeting for which notice is required by law or these Rules shall be delivered personally, or by any other means, to each Director utilizing the contact information as shown on the records of the Authority.

Section 7. Adjournment of Meetings. The Board may adjourn any regular, special or adjourned special meeting to a time and place specified in the order of adjournment, provided that the provisions of Section 54955 of Cal. Gov. Code are complied with by the Board.

Section 8. Posting of Agendas. In accordance with The Ralph M. Brown Act (“Brown Act”), the Board shall post agendas of all regular meetings, containing a brief general description of each item of business to be transacted or discussed at the meeting, at least seventy-two (72) hours before such regular meeting. The Board shall post agendas of all special meetings at least twenty-four (24) hours in advance of such special meeting. The agenda shall specify the time and location of the meeting and shall be posted in a location that is freely accessible to members of the public for the twenty-four (24) hours or seventy-two (72) hours prior to the meeting, as applicable. No action shall be taken on any item not appearing on such posted agendas, except as provided by Cal. Gov. Code Sections 54954.2 and 54954.3.

Section 9. Opportunity for Public to Address the Board. Per Cal. Gov. Code Section 54954.3, each agenda for a regular meeting shall provide an opportunity for members of the public to address the Board directly on matters of interest to the public, provided that such matters are within the subject matter jurisdiction of the Board, and provided that no action shall be taken by the Board on any item arising out of such speeches unless the matter already appears on the agenda. The Chair or majority vote of the Board may adopt reasonable regulations which limit the total amount of time allotted for public speakers and for each individual speaker.

Section 10. Additional Guidance. Except as provided in (i) the JPA, (ii) these Rules, and (iii) the Brown Act, as amended, meetings of the Board shall be conducted pursuant to the Robert’s Rules of Order, as amended.

ARTICLE IX

REIMBURSEMENT FOR TRAVEL EXPENSES
In accordance with Section 3.6 of the JPA, the Board has adopted a policy that allows reimbursement by the Authority of expenses incurred by their respective Directors outside of regular or special meetings of their Board duties. Members of the Boards shall be reimbursed for all reasonable and necessary travel expenses when required or incurred by those persons in attending events and conferences on behalf of the Authority. Reimbursable expenses shall include all charges for meals, lodging, air fare and costs of travel by automobile at the rate per mile allowed as a business expense by the Internal Revenue Service. The Treasurer-Auditor, upon approval of the CEO, shall be authorized to pay all such expenses deemed reasonable and necessary so long as sufficient funds have been budgeted therefor. Payments for amounts in excess of that budgeted must be approved by the Policy Board. The Authority shall reimburse a Board Member any reasonable and necessary travel expenses incurred for the member to attend a non-Authority Board meeting, and only if that member's sole purpose is to attend on behalf of the Authority. As used in this Article IX, the term “reasonable and necessary” is defined as those expenses which the Board member would not have incurred in performing the normal business of its Party’s governing body.

ARTICLE X
VOTING
Section 1. Voting. Voting on Board matters shall be held in accordance with the requirements of Section 3.7 of the JPA and these Rules.

Section 2. Notice for Contributions. A Board shall provide at least 45 days prior written notice to each Party before considering a program or activity for adoption at a Board meeting that requires financial contributions by individual Parties. Such notice shall be provided to the governing body and the chief administrative officer, city manager or town manager of each Party. A Board also shall provide written notice of such program or activity adoption to the above-described officials of each Party within 5 days after the Board adopts the program or activity. Any Party voting against the approval of such program or activity may elect to opt-out of participation in the program or activity by providing written notice of this election to the Board within 30 days after the program or activity is approved by the Board. Upon timely exercising its opt-out election, a Party shall not have any financial obligation or any liability whatsoever for the conduct or operation of such program or activity.

ARTICLE XI

DELEGATION OF AUTHORITY TO IMPLEMENT SUPPORT POLICY
Section 1. Delegation of Authority to Chief Executive Officer. The Chief Executive Officer of the Authority shall have the authority to take action to support or oppose legislation or other initiatives and to take necessary action to provide that support or opposition consistent with the Authority’s mission when all of the following conditions are met:
a. The legislation or other initiative is directly related to, and consistent with Authority’s mission. b. Due to time constraints, bringing the matter to the Policy Board at its next scheduled meeting is not practical
c. Calling a special meeting to address the matter is neither practical nor appropriate under the circumstances.
d. The Chief Executive Officer has investigated the positions of other California CCAs and understands the range of opinions on the legislation or initiative and has considered those opinions in determining whether and how to take a position. e. The Chief Executive Officer has conferred with the Chair of the Policy Board and both the Chief Executive Officer and the Chair agree that: (a) the position that the Chief Executive Officer intends to take is consistent with the mission of the Authority; (b) bringing the matter to the Policy Board at its next scheduled meeting or at a special meeting is not practical or appropriate under the circumstances; and (c) taking the position without a vote of the Policy Board is appropriate under the circumstances.
f. The Chief Executive Officer reports any position taken at the next regularly scheduled Policy Board meeting as part of the Chief Executive Officer Report.

ARTICLE XII

ACCOUNTS AND RECORDS
Section 1. Fiscal Year. According to the power provided under Section 5.1 of the JPA, the Authority selected as its fiscal year the 12 months commencing on October 1.

Section 2. Budget. The Authority staff shall prepare an annual budget in August of each year that shall delineate revenues, expenses, and capital expenditures of the Authority. Under Section 5.3.1 of the JPA and these Rules, the Policy Board shall adopt an operating budget for the Authority prior to the start of each fiscal year. The Policy Board shall annually, on or before the first day of the Authority's fiscal year, adopt a budget showing each of the purposes for which the Authority will need money and the estimated amount of money that will be needed for each such purpose for the ensuing fiscal year. The Policy Board shall ensure that a complete and accurate system of accounting of the Authority's funds shall be maintained at all times consistent with established accounting procedures and practices. The Policy Board has the authority to delegate certain duties as it deems appropriate.

Section 3. Funds and Accounts. The Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by the Policy Board.

Section 4. Treasurer's Report. The Treasurer, 120 days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Policy Board.

Section 5. Annual Audit. The Policy Board shall provide for a certified, annual audit of the accounts and records of the Authority which audit shall conform to generally accepted auditing standards. When such an audit of the accounts and records is made by a certified public accountant, such report shall be reviewed and approved by the Policy Board.

ARTICLE XIII
LIMITATION OF AUTHORITY’S LIABILITY
No Director, Party or Officer shall make or incur any debt or liability in the name of the Authority or on its behalf unless such debt or liability is authorized by the Chair or Vice Chair of the Policy Board and is not inconsistent with the JPA and these Rules.

ARTICLE XIV

DEBTS, LIABILITIES AND OBLIGATIONS
As provided by Section 2.2 of the JPA, the debts, liabilities and obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties unless the governing board of a Party agrees in writing to assume any of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority.

ARTICLE XV

INVESTMENTS
The Treasurer may invest money not required for the immediate necessities of the Authority, as directed by the Policy Board, as provided by Cal. Gov. Code Section 53601.

ARTICLE XVI

EXPULSION
Member Entities may be expelled from the Authority as provided in the JPA.

ARTICLE XVII

MISCELLANEOUS
Section 1. Agents and Representatives. The Boards may appoint such agents and representatives of the Authority, with such power and to perform such acts or duties on behalf of the Authority, as the Boards may see fit, so far as may be consistent with the JPA, these Rules and applicable laws.

Section 2. Contracts. Except as otherwise provided in these Rules, the Boards may authorize any officer or agent to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Authority, and such authority may be general or confined to a specific instance. Unless so authorized by the Boards, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement, nor to pledge its credit, nor to render it liable for any purpose or to any amount.

ARTICLE XVIII

AMENDMENTS
These Rules may be amended by a majority vote of the full membership of the Policy Board but only after such amendment has been proposed at a regular meeting and acted upon at the next or later regular meeting of the Policy Board for final adoption. The proposed amendment shall not be finally acted upon unless all members of the Policy Board have received written notice of the amendment at least 10 days prior to the date of the meeting at which final action on the amendment is to be taken. The notice shall include the full text of the proposed amendment.