Executive Committee Meeting
March 14, 2022
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items
o Consent Public Comment
Chair Report
Executive Committee
March 14, 2022
Item 3
CEO Report
Executive Committee
March 14, 2022
Item 4
Peninsula Clean Energy
Updates
Recruitment
o COO
o CFO
All-Staff In-Person Off-Site on March 17
CalCCA Lobby Day in Sacramento – March 15
Strategic Plan
o Semi- Annual Update to Executive Committee in April
o EC discussion on how to better engage board alternates? Los Banos Enrollment
5 Local Government Solar and
Storage Program Approval
Executive Committee
Item 5
March 14, 2022
| 6
Peninsula Clean Energy
7 Local Gov. Solar Program: Request
Program: Local Government Solar and Storage
Requests
Approval of (prospective) capital for system installations and budget for next round of technical assistance
Amount
• $600,000 for technical assistance
• $8 million for prospective installation capital, repaid over 20 yrs Peninsula Clean Energy
Program Overview
Summary: Accelerate local renewable energy deployment at local government facilities
Objectives
• Local solar and storage towards PCE’s goal of 20 MW by 2025 • Reduce customer energy costs; insulate against rise in PG&E rates • Help local governments achieve sustainability goals
• Develop a reproducible program and new service model
8 Peninsula Clean Energy
Precedents
Aggregate Procurements
o Silicon Valley Renewable Energy Project (2010)
o 43 sites, 11MW
o Alameda County Regional Renewable Energy Procurement Project (2015) o 186 sites, 31MW
o Group-purchasing volume discounts: 10% to 14%
CCAs developing local solar PPAs
o Peninsula Clean Energy
o East Bay Community Energy
o CalChoice Energy
9 Peninsula Clean Energy
General Deal Structure
10 Equipment
Suppliers and
Facility Installers
B
Facility
C
PCE Provides
• Site evaluation, procurement and installation
• Aggregation of sites to facilitate better pricing
• Screen, select, and contract with reputable installers • PPA to at a $/kWh that is lower than utility rate
• Service with no added “margin” - only to cover costs
Facility
A
PPA
PPA
PPA
PCE
Peninsula Clean Energy
Completed Work
21 Site Assessments* • Site plan • Solar yield • Single line diagrams • Panel layout • Preliminary financials • Agency commitments in progress
11 *Completed in conjunction with McCalmont Engineering, extensive C&I and utility experience
Peninsula Clean Energy
Pilot Portfolio: 1.8 MW
12 Agency Site(s) Size (kW) Status
Atherton Town Hall 113.5 Approved
Belmont Belmont City Hall 88.5 Approved
Brisbane Brisbane Mission Blue Center 11 Approved
Colma Colma Community Center 61.5 Approved
San Mateo
County
HSA Building 126 Approved
Hillsborough Hillsborough Public Works Yard 41.8 Approved Los Banos Community Center,
Waste Water Treatment Plant
152
287
Pending
Millbrae Millbrae Rec Center 155 Approved
Millbrae Millbrae Chetcuti Complex 412 Approved
Pacifica Pacifica Community Center 77 Approved
Redwood City Fair Oaks Community Center 89 Approved
San Carlos San Carlos Youth Center 30 Approved
San Mateo San Mateo Police Building 170 Approved
Peninsula Clean Energy
Projected Savings
• 20-year solar-only benefit for approved portfolio sites: $4.5+M • Savings vary significantly by site type
• Batteries remain expensive – provide resilience but at a cost • Forthcoming rules for net energy metering (NEM 3.0) would likely affect economics significantly
o Timing of new rules is unclear, CPUC decision was delayed o Submitting interconnection promptly will put projects under current rules • Avoided PG&E rate increases may be very significant
o Seeking +~18% starting 2023
13 Peninsula Clean Energy
Goal and Progression
14 Timeline
Site Types 2020 2021 2022 2023
Pilot Cities Launch >> Assess Procure & Install Operate Round 2 Cities, schools, districts Assess & Procure Install Round 3 Public agencies & other? Assess & Procure
• Major component of 20 MW by 2025
• Facilitate all public agencies
• Potentially expand sectors with proven model
• Solar, storage and possibly other clean energy
Peninsula Clean Energy
Financial Structure
Capital
• Installation can be financed, but with interest
• PCE capital may reduce cost of capital
Tax Credit
• Federal Investment Tax Credit (ITC) + depreciation can reduce costs about one-third • Requires tax liability to secure
• PCE is tax-exempt
• PCE exploring tax equity partnerships to capture share of tax benefits Options being considered
1. Tax credit and finance secured together with a developer PPA (“all in” model)
2. PCE provides capital, secures tax credit with tax equity partner, contracts with developer solely for equipment and installation
o PCE capital treated as balance sheet asset
15 Peninsula Clean Energy
Pilot Next Steps
Q1
1. Finalize Site Assessment
2. Complete legal review and documents
Q2/Q3
4. Execute RFP
5. Evaluate Proposals
6. Brief local governments on finalist terms (last off-ramp) Q3/Q4
6. Contract with local governments
7. Contract with developer
8. Begin installations
16 Peninsula Clean Energy
Round 2
• Larger aggregation: 20 to 40 sites
• Broader eligibility: all public agencies (schools, cities, special districts) • Schedule: begin outreach on finalization of Pilot business model • Budget: $600,000 for technical assistance
o Site evaluations
o Procurement support and construction oversight
o Project management
17 Peninsula Clean Energy
18 Local Gov. Solar Program: Request
Program: Local Government Solar and Storage
Requests
Approval of (prospective) capital for system installations and budget for next round of technical assistance
Amount
• $600,000 for technical assistance (round 2)
• $8 million for prospective pilot capital, repaid over 20 yrs Committee Members’ Reports
Executive Committee
February 14, 2022
Item 6