March 7, 2024
MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 7, 2024, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
CALL TO ORDER & ROLL CALL
Chair 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 Byers led the pledge of allegiance.
Roll Call
1 Agoura Hills Deborah Klein Lopez Director Remote
2 Alhambra Jeff Maloney Director Present
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 Reata Kulcsar Alternate Remote
8 Claremont Jennifer Stark Alternate Present
9 Culver City Yasmine-Imani McMorrin Director Present
10 Downey Absent
March 7, 2024
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 Monrovia Tamala Kelly Director Remote
18 Moorpark Absent
19 Ojai Michelle Ellison Alternate Remote
20 Oxnard Bert Perello Director Remote
21 Paramount Vilma Cuellar Stallings Director Remote
22 Redondo Beach Paige Kaluderovic Director Remote
23 Rolling Hills Estates Steve Zuckerman Alternate Remote 24 Santa Monica Gleam Davis Director Present
25 Santa Paula Andy Sobel Alternate Remote
26 Sierra Madre Robert Parkhurst Director Present
27 Simi Valley Rocky Rhodes
Fred Thomas
Director
Alternate
Present
Remote
28 South Pasadena Jon Primuth Director Present
29 Temple City Absent
30 Thousand Oaks Absent
31 City of Ventura Liz Campos Director Remote
32 Ventura County Vianey Lopez Vice Chair Remote
33 West Hollywood Chelsea Byers Alternate Present
34 Westlake Village Absent
35 Whittier Leon Vasquez Alternate Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
March 7, 2024
CONSENT AGENDA
1. Approve Minutes from the February 1, 2024 Board of Directors Meeting
2. Adopt Resolution No. 24-03-060 Approving the Extension of the Maturity Date of the Revolving Credit Agreement with JPMorgan Chase Bank, N.A. and Certain Amendments to the Fee Agreement Related Thereto
3. Adopt Resolution No. 24-03-061 Approving Amendments to CPA’s Board Reimbursement Policy No. 2018-05
4. Adopt Resolution No. 24-03-062 Approving the Load Management Standard Compliance Plan wherein CPA Proposes to Utilize Current and Planned Load Flexibility Programs to Meet the California Energy Commission’s LMS Requirements
5. Receive and File Bill Positions March 2024 Monthly Report
6. Receive and File FY Q2 Financial Report
7. Receive and File CY Q4 Risk Management Team Report
8. Receive and File Monthly Community Advisory Committee Report In response to Director Perello’s question about Item 3, staff clarified that typically all directors are invited to attend CPA-wide events and that the amendments to the expense policy are intended to allow for CPA to reimburse Board directors for expenses related to that attendance whether or not they were speakers at the event. Staff also clarified that the CEO consults with the Board Chair to approve Board Director reimbursements and that CPA may book and pay for hotels rooms and conference registrations in advance on behalf of Board members.
Motion: Director Parkhurst, Sierra Madre
Second: Director Rhodes, Simi Valley
Vote: The consent agenda was approved by a roll call vote with abstentions from Directors Stark and Torres. Directors Kelly and Sobel abstained from Item 1 only. Director Perello voted no on Item 3 only.
REGULAR AGENDA
9. Elect a Board Chair to Serve the Remaining Three Months of the 2022-2024 Term and the Entirety of the July 2024 – June 2026 Term
Chair Gold introduced the item, stating that the nomination period closed on February 16, 2024, and Director Klein Lopez was nominated for the position.
Director Klein Lopez thanked Vice Chair Horvath for the nomination and shared her experience advocating for CPA and subsequently joining the organization as a Board member and leading the Legislative & Regulatory Committee.
Director Perello noted that one of the Vice Chairs should complete the remaining three months of the departing Chair’s term, but fully supported the election of the nominee for the full term.
Motion: Vice Chair Horvath, Los Angeles County
Second: Director Monteiro, Hawthorne
Vote: Item 9 was approved by a roll call vote with Directors Perello and Campos voting No on the three-month term and Yes on the full term.
March 7, 2024
10. Approve and Authorize the Chief Executive Officer to Execute (1) a Professional Services Agreement with Lincus, Inc. to Provide Building Electrification Services in an amount Not-to-Exceed $615,000; and (2) a Professional Services Agreement Agenda Page 2 with Optony, Inc. to Provide Fleet Electrification Services in an amount Not-to Exceed $1,500,000, in Connection with the Energized Communities Program
Sona Coffey, Senior Program Manager of Local Government Programs, provided a presentation. The overall objective of the Energized Communities Program is to accelerate implementation of decarbonization measures undertaken by participating member agencies. The program offers various opportunities to apply for technical services and financial assistance to carry out projects in member agency communities. Staff recommends Board approval of an agreement with Optony for fleet electrification and with Lincus for building electrification. The Community EV Charging program is still under development and would focus on installing EV charging infrastructure for public use on agency-owned properties.
Vice Chair Horvath encouraged member agencies to participate in the program and noted that cities launching a project early in the process can provide lessons for all the other agencies. Director Ellison stated that Ojai is aiming for zero emissions for city operations and asked about the application process. Staff responded that electrification applications would be due in the Spring.
Motion: Director Monteiro, Hawthorne
Second: Director Parkhurst, Sierra Madre
Vote: Item 10 was approved by a roll call vote
11. Approve and Authorize the Chief Executive Officer to Execute a 10-Year Resource Adequacy Agreement with Sentinel Energy Center, LLC
Lindsay Descagnia, Vice President of Power Supply, presented the item. The Sentinel Energy contract comes from the 2023 Clean Energy and Reliability Request for Offer (RFO). Staff negotiated an RA-only 10-year agreement, incorporated as an RA confirmation under the Edison Electric Institute (EEI) Master Agreement. The capacity is 211.85 MW, with a contract start date of January 1, 2027. Even as Sentinel’s facility is a natural gas plant, there would be no impact to CPA's power content label as there are no actual energy deliveries. Staff recommends Board approval of this agreement as it would help CPA meet RA compliance obligations and provide value in the CPUC’s Slice of Day framework to be implemented next year. Ms. Descagnia explained the basics of RA and compared the RA value in the Slice of Day framework for solar, wind, storage sources, and baseload generators such as that of Sentinel.
In response to Director Campos’s question about the ethics of funding a project involving methane gas, staff responded that the successful transition to 100% clean energy will take decades and CPA has to ensure reliability. CPUC regulations make it difficult to meet compliance without investment in fossil fuel resources during a transition period. Vice Chair Lopez asked if the 10-year contract would end at a time the agency could find cleaner sources. Staff confirmed it would, but noted that regulations may include smaller amounts of dispatchable generation such as methane. Responding to Director Perello’s question about public perception of CPA's reliability and clean power, Mr. Bardacke emphasized that
March 7, 2024
public consensus in California supports the transition to a zero-carbon electric system; however, that support would be at risk if there were power outages or if rates got too high. Director Ellison asked if there were other projects similar to Sentinel that didn’t involve fossil fuels. Staff clarified that other projects also included natural gas and Sentinel offered the best opportunity to transition to cleaner operations in the future, as well as better financial benefits; in addition there were no bids in the RFO for 100% clean resources that offered they same around the clock RA attributes. Director Zuckerman suggested that CPA inform the public on the involvement of the natural gas in reserves needed by CAISO and asked about nuclear power as an RA source. Chair Gold suggested that staff agendize an educational item on nuclear power. Director Rhodes asked why the contract is starting in 2027 and staff responded that Sentinel has a current long-term contract with another provider and that CPA has short-term contracts with Sentinel already. Director Parkhurst noted that CPA already has short-term contracts involving natural gas as part of RA compliance. Vice Chair Horvath expressed support for the contract to meet requirements, while moving CPA towards 100% renewable energy. Director Stark encouraged CPA to educate the public on the challenges of 100% reliable clean energy. Director Perello suggested that CPA have talking points discussing natural gas in CPA’s portfolio. Chair Gold stated his support for the contract, noting that compromise is necessary due to regulatory requirements, and emphasized transparency in communication with the public.
Motion: Director Parkhurst, Sierra Madre
Second: Director Perello, Oxnard
Vote: Item 11 was approved by a roll call vote
Ms. Descagnia also provided an educational presentation on green hydrogen with information on blended fuel contracts. CPA’s 2023 RFO solicited bids for dispatchable natural gas projects that utilize blended fuels like green hydrogen or renewable biogas. A different offer from Sentinel proposes using green hydrogen as the blended fuel at a 30 to 35 percent mix of hydrogen and traditional methane gas. The Energy Committee authorized staff to enter into bilateral discussions with Sentinel, to see if an agreement could be reached to on a hydrogen contract that would be both price competitive and environmentally favorable, with production of hydrogen using renewable energy sources.
12. Receive Presentation on Proposed Income-Graduated Fixed Charges and Related Legislative Proposals
Gina Goodhill, Senior Director of Government Affairs, provide a presentation on the item, including a history of bills AB205 and AB1999 related to the issue, information about fixed charges, details about the proposed Income Graduated Fixed Charge (IGFC), an explanation of the arguments in support and opposition to the IGFC, a description of SCE’s proposed fixed charge structure, and an overview of CPA’s next steps in the regulatory proceeding. With an IGFC, high-income customers would pay a higher fixed charge and lower income customers would pay a lower fixed charge. The charge would be collected on the delivery side of the bill, so CPA customers would be treated the same as non-CCA customers. The CPUC is considering various proposals for the charge. Assembly Member Jacqui Irwin introduced a bill earlier this year that would replace the IGFC with a fixed charge of $5 for residential customers on the CARE rate and no more
March 7, 2024
than $10 for all other residential customers. However, the Governor is not likely to sign the bill. CPA is active in the regulatory proceeding through CalCCA. CPA’s Legislative & Regulatory Committee directed staff to monitor the bill. The Committee may revisit this issue after the CPUC releases a Proposed Decision.
Vice Chair Horvath noted that member agencies may have differing opinions on the proposal and if the Board chose to go on record regarding the IGFC, CPA can submit a letter expressing support for clean energy and concern about costs to the customer, thereby demonstrating concern on behalf of the ratepayer.
Director Stark stated that the California League of Cities is writing a letter in support of AB 1999 and the San Gabriel Valley COG may do the same. Director Zuckerman noted that the IGFC doesn’t affect overall costs, but rather changes the way costs are allocated and the charge is on the SCE side of the bill. Director Ellison asked if any of the proposals address the issue of customers who are eligible for the CARE program but are not registered. Mr. Bardacke replied that CARE has a registration level of more than 90 percent.
COMMITTEE CHAIR UPDATES
Director Klein Lopez, Chair, Legislative & Regulatory Committee, discussed the success of CPA’s Lobby Day in Sacramento and thanked Directors Hicks and Erickson and participating staff. More than 70 people from CCAs statewide participated. Lobby Day themes included affordability, reliability, sustainability, hydrogen power, the IGFC, and the bill CPA is sponsoring to allow alternate directors to vote in closed session. Director Klein Lopez Thanked Chair Gold for his leadership over many years.
Director Santangelo, Chair, Finance Committee, reported that at its last meeting the Finance Committee reviewed financial performance and outlook for 2023-2024. Director Santangelo also expressed gratitude to Chair Gold for his service to CPA.
MANAGEMENT REPORT
Mr. Bardacke reminded the Board of the CalCCA conference scheduled for mid-April, and also encouraged Board members to invite CPA to participate at local Earth Day events.
Mr. Bardacke thanked Chair Gold for his years of service to CPA, beginning in 2017 and noted that Chair Gold may continue on the CPA board as an alternate.
BOARD MEMBER COMMENTS
Vice Chair Horvath, Directors Monteiro, Cao, Perello and others thanked Chair Gold for his leadership, dedication, and mentorship.
Chair Gold expressed gratitude for the opportunity to serve; praised Board members for finding consensus even when there’s disagreement and is proud to have been part of creating the largest green energy entity in the country.
REPORT FROM THE CHAIR
None
ADJOURN
Chair Gold adjourned the meeting at 4:12 p.m.