MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, July 6, 2023, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
CPA Office
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Venture, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
CALL TO ORDER & ROLL CALL
Chair Julian Gold called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Director Monteiro led the pledge of allegiance.
Roll Call
1 Agoura Hills Deborah Klein Lopez Director Remote
2 Alhambra Absent
3 Arcadia Michael Cao Director Present
4 Beverly Hills Julian Gold Chair Present
5 Calabasas Ed Albrecht Alternate Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Cedric L. Hicks, Sr. Director Remote
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8 Claremont Corey Calaycay Director Present
9 Culver City Joe Susca Alternate Remote
10 Downey Absent
11 Hawaiian Gardens Ramie L. Torres Alternate Remote
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Doug Krauss Alternate Remote
14 Los Angeles County Lindsey Horvath Vice Chair Present 15 Malibu Marianne Riggins Director Remote
16 Manhattan Beach Amy Howorth Director Remote
17 Moorpark Renee Delgado Director Remote
18 Ojai Betsy Stix Director Remote
19 Oxnard Bert Perello Director Remote
20 Paramount Vilma Cuellar Stallings Director Remote
21 Redondo Beach Absent
22 Rolling Hills Estates Steve Zuckerman Alternate Remote 23 Santa Monica Absent
24 Santa Paula Jenny Crosswhite Director Present
25 Sierra Madre Absent
26 Simi Valley Rocky Rhodes Director Present
27 South Pasadena Arpy Kasparian Alternate Present
28 Temple City Absent
29 Thousand Oaks David Newman Director Remote
30 City of Ventura Liz Campos Director Remote
31 Ventura County Vianey Lopez Vice Chair Remote
32 West Hollywood John Erickson Director Present
33 Westlake Village Absent
34 Whittier Leon Vasquez Alternate Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
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There was no public comment.
CONSENT AGENDA
1. Approve Minutes from June 1, 2023, Board of Directors Meeting
2. Adopt Resolution No. 23-07-053 to Approve Amendments to the Energy Risk Management Policy, as Recommended by the Energy Resources & Planning Committee
3. Adopt Resolution 23-07-054 Approving (a) the Net Billing Tariff (NBT) and (b) Amendments to the Net Energy Metering (NEM) Tariff, as Attached
4. Approve and Authorize the Chief Executive Officer to Execute an Amendment to the Professional Service Agreement with Pastilla, Inc. for FY 2023/24 for a Not to Exceed (NTE) Amount of $392,076 for Website Development and Market Research
5. Approve Positions on Two Bills in the 2023/2024 Legislative Session Related to Changes to the California Environmental Quality Act (CEQA), as Recommended by the Legislative & Regulatory Committee:
a. SB 420 - Recommended Position: Support
b. AB 914 - Recommended Position: Support
6. Receive and File Bill Positions Monthly Report
7. Receive and File Community Advisory Committee Monthly Report Motion: Director Erickson, West Hollywood
Second: Director Calaycay, Claremont
Vote: The consent agenda was approved by a roll call vote with an abstention from Director Krauss.
REGULAR AGENDA
8. Approve and Authorize the Chief Executive Officer to Execute the Following Agreements: (a) 10-year Power Purchase Agreement with Community Renewable Energy Services, Inc. for the Dinuba Energy 11.5 MW Biomass Project; and, (b) 15-year Energy Storage Agreement with Sagebrush ESS IIB, LLC (Sagebrush) for a 40 MW Four-Hour Energy Storage Project
John McNamara, Director, Structured Contracts, provided a presentation on the Dinuba and Sagebrush projects. The Dinuba Biomass project, which will add 11.5 megawatts of capacity, is a 10-year contract with a Commercial Operation Date (COD) of January 10, 2024. The Sagebrush project, with a capacity addition of 40 megawatts, is a 15-year contract with a COD of June 1, 2024. Mr. McNamara reviewed CPA’s Mid-Term Reliability (MTR) compliance position and provided details on both the Dinuba and Sagebrush projects. Senate Bill (SB) 1383 mandates the diversion of organic materials from landfills to slow climate change and allows for the generation of compliance credits for biomass energy production sourced from eligible fuel sources. CPA is entitled to all attributes from the Dinuba facility, including SB 1383 compliance credits, which can be transferred to interested member agencies. The Dinuba and Sagebrush projects will help CPA achieve near complete compliance with current MTR requirements and contribute to both short-term and long-term Resource Adequacy (RA) obligations.
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Director Crosswhite raised several questions about the impact of SB 1383 requirements on CPA’s portfolio planning; Ted Bardacke, CEO, clarified that only 10% of the Dinuba project’s production is SB 1383 compliant and generate environmental credits; the rest is considered regular renewable energy resources.
The Board is engaged in portfolio planning and determines the level of renewable energy allocation for the different energy options. Director Rhodes thanked staff for reviewing the contract redactions with him. Vice Chair Horvath asked several questions about the equitable transfer of SB 1383 compliance credits, ensuring processed material is organic and compostable, and contract diversification. Mr.
Bardacke explained that CPA would receive SB 1383 compliance certificates in two to three years; those certificates could be allocated to cities at no cost, transferred at cost, or sold in the market, in which case revenue could be used for customer programs or rates. Regarding organic material, Mr. Bardacke explained that the Dinuba facility will primarily process agricultural wood and urban waste that would otherwise end up in landfills. Regarding contract diversification, Matt Langer, Chief Operating Officer, indicated that staff actively evaluates supplier concentration to ensure CPA minimizes risk; while CPA has multiple contracts with Terra-Gen, they are not the most prevalent contracted supplier. Director Torres inquired about the potential impact of AB 998, a forthcoming regulation for biomass energy facilities, on the Dinuba project. Staff agreed to investigate the new regulation. Chair Gold asked several questions regarding the eligibility, penalties, and updates on the 10% Dinuba production credits. Mr. Bardacke clarified that the Dinuba facility is permitted to have up to 50% of its production as SB 1383 compliant, with a minimum of 10%. If more compliance credits become available to CPA, staff may present a contract amendment to the Board. If the Dinuba facility fails to meet the 10% minimum, either party can request a contract negotiation to reduce the compliance credits to zero; staff will receive periodic updates from Dinuba. Director Perello inquired about the nature of urban wood materials at the Dinuba facility. Staff explained that air quality requirements necessitate pre-treatment of the materials to remove toxins.
Motion: Director Erickson, West Hollywood
Second: Director Hawthorne, Claremont
Vote: Item 8 was approved by a roll call vote.
9. Approve Workforce Development Phase 2 Funding Allocations Xico Manarolla, Electrification Program Manager, provided a presentation on phase 2 funding for Workforce Development. The Board approved the Voyager Wind (Terra-Gen) and White Hills Wind (NextEra) Power Purchase Agreements (PPAs) in 2019, which currently serve as CPA’s funding sources for workforce development. Mr. Manarolla reviewed the outcomes of phase 1 funding, including the partners involved, funding amounts, current status, expected outcomes, and achieved outcomes to date. The Los Angeles Cleantech Incubator (LACI) project management training course is designed to equip participants with the skills necessary for managing Electric Vehicle (EV) charger maintenance projects. Mr.
Manarolla reviewed the microgrid training programs and funding provided by the International Brotherhood of Electrical Workers (IBEW) Ventura County and Los Angeles County Electrical Training Institutes (ETIs). In phase 2, staff plans to allocate $105,000 of Voyager scholarship funding to the seven community colleges in CPA’s service territory that offer workforce development, renewable energy, Clean Power Alliance of Southern California Page 5 of 6 July 6, 2023
engineering, and environmental pathways programs. The proposed expenditure for phase 2 funding totals $254,330.
Vice Chair Horvath asked several questions regarding program metrics, scholarship qualifications, and the focus on EV charging. Mr. Manarolla explained that the program metrics for success include graduation rates, internship rates, post-program careers, results from six-month and 1-year follow-up surveys, and wage levels. The Voyager scholarship requirements mandate that the student pursue an energy-related field. Regarding the EV charging focus, Mr. Manarolla mentioned that staff is exploring the inclusion of EV charging infrastructure projects and looking at partnerships with other organizations and local governments. Vice Chair Horvath acknowledged the challenges associated with diversifying hiring in the energy field and suggested that staff consider those challenges in preparation for future funding. Directors Monteiro, Calaycay, and Hicks suggested that staff consider partnerships with additional surrounding community colleges and the Port of Los Angeles; staff agreed to explore these suggestions. Director Crosswhite inquired about the promotion of scholarships and new partnership opportunities in Ventura County. CPA staff closely collaborate with the foundations for each college, which facilitate student outreach, scholarship distribution, and tracking of post-program outcomes. Staff is currently in discussions with LACI to expand potentially partnership opportunities into Ventura County. Vice Chair Lopez expressed gratitude to the staff for their outreach efforts in Ventura County and encouraged Board members to participate in the process. Responding to Director Perello’s question about the distribution of scholarship opportunities, Mr. Bardacke clarified that all colleges within Ventura County receive an equal number of scholarships. Chair Gold asked about the $50,000 instruction fee, and Mr.
Manarolla explained that the fee covers the cost of the teacher and the development of the 8-week class curriculum, which aligns with LACI’s curriculum development fees.
Motion: Director Monteiro, Hawthorne
Second: Director Calaycay, Claremont
Vote: Item 9 was approved by a roll call vote.
10. Presentation on Local Programs for a Clean Energy Future Action Plan Joanne O’Neill, Director, Customer Programs, provided a presentation on the action plan for Local Programs. The Board adopted the Local Programs Plan in 2020, which outlines a 5-year vision and focuses on three pillars: resilience and grid management, building and transportation electrification, and local procurement. Staff aims to enhance the existing Plan by creating separate “Action Plans” that further develop and refine approaches within each of the program pillars. These “Action Plans” concentrate on new program areas and adhere to the strategic approach of offering incremental programs or addressing gaps in existing CPA customer programs. Ms. O’Neill provided specific details on new programs, including the Local Government Sustainability Assistance Program, Customer Energy Advisors, incentives to promote the adoption of solar + storage systems, and the exploration of partnerships for virtual power plants (VPPs). Several ongoing programs such as the Power Ready Program, Power Share, Community Solar, EV charger rebates, Reach Code Programs, and workforce training and development will continue to expand.
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In response to Director Susca’s inquiry about incentivizes for private property owners to decarbonize; Ms. O’Neill agreed to explore the idea.
MANAGEMENT REPORT
Mr. Bardacke noted that the California Public Utilities Commission (CPUC) recently approved a penalty structure that prohibits Load Serving Entities from expanding their service territories if they fail to comply with RA month-ahead and year-ahead obligations.
CPA expects to meet its monthly compliance obligations for 2023 but CPA’s is still in the process of procuring enough RA to meet its 2024 year-ahead RA obligations. Failure to meet those obligations potentially would result in a one-year delay, to 2026, for the onboarding of additional cities that have expressed interest in joining CPA. CPA launched the Power Response Home Program, which offers customer incentives for every kilowatt hour of electricity consumption reduction.
In response to Chair Gold’s question regarding electricity consumption reduction, Mr.
Bardacke clarified that historical usage data and algorithms enable reductions to be calculated based on predicted baseline energy usage for each customer on an hour-by-hour basis. Director Zuckerman asked about communicating to customers how to earn financial credits. Staff indicated that the online dashboard on CPA’s website allows customers to monitor their performance on event days and provides recommended actions. Director Zuckerman inquired about future opportunities for installing EV chargers in school and library districts, and staff stated that they are considering such expansions in the future.
COMMITTEE CHAIR UPDATES
Director Deborah Klein Lopez, Chair, Legislative & Regulatory Committee, indicated that the Committee discussed SB 420 and AB 914, which received support in the consent calendar. The Committee also addressed regulatory changes by the CPUC as outlined in the management report.
BOARD MEMBER COMMENTS
None.
REPORT FROM THE CHAIR
None.
ADJOURN
Chair Gold adjourned the meeting at 3:55 p.m.