Operations Board of Directors
August 9, 2023
Update on Front of the Meter Energy Storage EffortANDRequest to Authorize CEO to execute two Small Generator Interconnection Agreements between Pacific Gas and Electric Company and Central Coast Community Energy
Front of the Meter Energy Storage (FMES)UPDATE
Anticipated Benefits
Increase Grid-Reliability and Local Resiliency
Reduce overgeneration of solar which contributes to the “Duck Curve” Use 3CE’s fleet of renewable energy projects to charge the batteries during non-peak hours, and then discharge the batteries during peak hours (4 pm – 9 pm) Support local economic development by building locally distributed resources FMES facilities provide needed Resource Adequacy (RA)
Commitment to work with Member Agencies to obtain backup power during outages Position 3CE as an innovator in clean energy planning
Challenges and Lessons Learned
Improving FMES for the Future
3CE remains committed to delivering on the remaining set of viable FMES projects. 2 of the 3 viable sites are being brought to the Board today for approval.
The third site is located within the SCE utility distribution system and 3CE is awaiting some results from SCE before being able to enter into an SGIA. 3CE expects to bring this agreement to the Board for approval in October 2023.
After the successful implementation of batteries at these sites, 3CE will evaluate the delivery method for future FMES projects.
Authorize CEO to execute the Small Generator Interconnection Agreement (SGIA) between Pacific Gas and Electric Company (PG&E) and Central Coast Community Energy (3CE) in an amount not to exceed $120,000 for the interconnection cost associated with the installation of an energy storage facility at the Emeline project site.
Emeline Project
3 MW* Lithium-Ion Energy Storage
4-hour discharge duration
It can provide 12 MWh of energy during discharge.
Location: 1000 Emeline Ave, Santa Cruz
PG&E’s Interconnection Cost is expected to be $120,000. A true-up of actual-spend to expected-spend will occur after the in-service date is achieved PG&E’s monthly charge for maintaining the interconnection is $1,068 per month, effective after the in-service date Pursuant to SGIA, 3CE must begin construction within 24 months Next Step, if approved, is to issue an RFO to select an EPC construction firm to procure and install the battery. Expected in the Fall 2023 Construction start will be targeted for Q2 of 2024
*This is an “up-to” amount in SGIA and actual size will be determined in coordination with EPC contractor when sourcing the battery.
Authorize CEO to execute the Small Generator Interconnection Agreement (SGIA) between Pacific Gas and Electric Company (PG&E) and Central Coast Community Energy (3CE) in an amount not to exceed $120,000 for the interconnection cost associated with the installation of an energy storage facility at the Roy Wilson project site
Roy Wilson Project
4.5 MW* Lithium-Ion Energy Storage
4-hour discharge duration
It can provide 18 MWh of energy during discharge.
Location: 202 Grimmer Road, Watsonville
PG&E’s Interconnection Cost is expected to be $120,000. A true-up of actual spend to expected spend will occur after the in-service date is achieved PG&E’s monthly charge for maintaining the interconnection is $1,068 per month, effective after the in-service date Pursuant to SGIA, 3CE must begin construction within 24 months Next Step, if approved, is to issue an RFO to select an EPC construction firm to procure and install the battery. Expected in the Fall 2023 Construction start will be targeted for Q2 of 2024
*This is an “up-to” amount in SGIA and actual size will be determined in coordination with EPC contractor when sourcing the battery.
Purchasing PolicyRecommended Revisions
Financial Policy 8 (FP8)
Purchasing and Procurement Policy (FP8)
Major revisions to FP8:
Increases Chief Executive Officer annual single contract authority from $100,000 to $200,000. This is in line with the California Government Code Section 25502.5. While this code specifically refers to County Governments it acknowledges that the increased costs of doing business necessitate increasing executive contracting authority.
Increases the Chief Financial Officers’ annual single contract authority from $10,000 to $25,000.
Delegates the Purchase Requisition at the agency officer level as an internal department process to streamline the approval process.
Modifies the definition of Small Value Purchases to less than $15,000 Modifies the definition of Medium Value Purchases to less than $50,000 Modifies the definition of High-Value Purchases to greater than $50,000.
Modifies the formal bid process to purchases greater than $50,000.
Purchasing and Procurement Policy (FP8)
Minor revisions to FP8:
Changed all instances of MBCP to 3CE
Changed all references to the Director of Finance & Administrative Services to the Chief Financial Officer Purchase Requisition Form removed, and flexibility allowed at the department level to determine the best-fit process at the lowest possible level.
Purchase Card PolicyRecommended Update
Financial Policy 6 (FP6)
Purchase Card Policy (FP6)
The recommended policy is a comprehensive update with major changes as follows:
Restructures the purchase requisition process to the department level Clearly outlines in detail the types of permitted purchases Outlines prohibited/restricted purchase types
Defines:
Authorized user
Program coordinators
Approving official
Personal responsibility of cardholders
Internal controls
Documentation requirements
Policy coordination
Revocation of privileges
Disputed charges
Travel PolicyRecommended Update
Financial Policy 9 (FP9)
Travel Policy (FP9)
The recommend policy is a comprehensive update with major changes as follows:
Restructures the travel requisition process to the department level Clearly outlines in detail types of permitted travel
Outlines prohibited/restricted travel types
Defines:
Per Diem as limit for lodging with receipt required
Provides Per Diem as default for meals without receipts Registration Fees and other travel expenses
In-3CE jurisdiction travel
Out-of-3CE jurisdiction travel
Policy coordination
Travel advance claims
Late claims
Coordinates purchase card travel use