Item No. 2
Regular Meeting of the Executive Committee of the
Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, March 14, 2022
10:00 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 10:03 a.m. in virtual teleconference.
ROLL CALL
Participating Remotely:
Rick DeGolia, Atherton, Chair
Julia Mates, Belmont
Donna Colson, Burlingame, Vice Chair
Giselle Hale, Redwood City
Rick Bonilla, San Mateo
Pradeep Gupta, Director Emeritus
John Keener, Director Emeritus
Absent:
Dave Pine, San Mateo County
Marty Medina, San Bruno
Laura Parmer-Lohan, San Carlos
Jeff Aalfs, Portola Valley
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS MOTION: Director Bonilla moved, seconded by Director Hale to set the Agenda and approve Agenda Item Number 1.
1. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Committee Meetings Due to Health Risks Posed by In-Person Meetings
2. Approval of the Minutes for the February 14, 2022 Executive Committee Meeting MOTION PASSED: 5-0 (Absent: San Mateo County, San Bruno, San Carlos, Portola Valley)
Item No. 2
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
Atherton Director DeGolia X
Belmont Director Mates X
Burlingame Director Colson X
Redwood City Director Hale X
San Bruno Director Medina X
San Carlos Director Parmer-LohanX
San Mateo Director Bonilla X
Portola Valley Director Aalfs X
Totals 5 4
REGULAR AGENDA
3. Chair Report
Chair DeGolia reported that the Executive Committee will be selected at the March 24, 2022 Board of Directors meeting and to please let him know of your interest to continue serving on the Committee.
4. CEO Report
Jan Pepper, CEO, provided a report including a recruitment update for the COO and CFO, information on the forthcoming all-staff meeting, and the Los Banos enrollment. Jan also asked the board if a discussion should be brought forward on better engaging board alternates as part of the Strategic Plan discussion at April’s Executive Committee.
Board Members discussed not needing this discussion as each board member keeps their alternates updated in different ways and that attending additional meetings, such as the PCE board meeting, for board alternates may not be practical. Vice Chair Colson suggested sharing information on subcommittees if the skill set required matches that of their alternate and Chair DeGolia suggested an annual Board of Directors agenda item reminding alternates that they may serve on subcommittees if interested.
5. Local Government Solar and Storage Program Approval (Action) Rafael Reyes, Director of Energy Programs, gave a presentation on the Local Government Solar and Storage Program including a program overview and precedents, deal structure, pilot portfolio and next steps, projected savings and the financial structure.
Director Emeritus Gupta asked about participation from cities in north San Mateo County which were absent from the pilot. Rafael explained that through the long process of evaluating sites Peninsula Clean Energy staff relied upon cities volunteering to participate in the programs. He further explained that during this next round, if approved by the Board of Directors, the goal is to include more agencies.
Director Hale asked for clarification on the approach to locating suitable sites within a municipality as well as the influence of speed and affordability. Rafael explained that a key deliverable is scale for the developers and pricing benefits and that the groundwork done Item No. 2
on locating sites provides clarity around potential bids. Director Hale offered to share resources and models for choosing sites from a city’s portfolio and leveraging energy savings across multiple projects. Jan Pepper, CEO, asked Director Hale if she could share the city models she is referring to. Rafael explained that this program allows municipalities to participate and receive a solar system without any upfront costs.
Director Bonilla asked for clarification in selecting installation firms, if a project manager would be hired, and if this program would be consistent with Peninsula Clean Energy’s labor policy. Rafael explained that there would be a competitive process and that Peninsula Clean Energy is working closely with San Mateo County to be sure they are in alignment with the county’s procurement practices. Rafael also explained that a firm would likely be used for construction management and that this project would be consistent with the labor policy but that an RFP has not been developed yet.
Chair DeGolia asked about prospects of including battery installations as an upgrade at some point. Rafael explained that each site will be “battery-ready” and that four sites are considering having battery systems included for this first pilot.
Vice Chair Colson asked about tax credits and they way they are set up. Rafael explained that typically ownership of the system goes to a third-party tax credit provider that has the tax liability which is typically captured within approximately six years. Ownership would then revert back to Peninsula Clean Energy where ownership would remain for the duration of the Power Purchase Agreement (PPA). Ownership could then be transferred back to local governments for the remaining life of the system, approximately 5-10 years.
Vice Chair Colson suggested expanding beyond municipalities into non-profits.
Jan Pepper clarified that the aggregations in slide nine were done before the existence of Community Choice Aggregators (CCAs).
Director Hale discussed the pros and cons of municipalities owning the system versus using private financing to capture tax credit savings and encouraged further analysis.
Chair DeGolia added that with this program it is possible to have multiple benefits of private financing with the added benefit of owning the system in the future. Rafael explained that sites are being determined by suggestions from municipalities.
Director Bonilla asked for clarification on the term of the firm that would be selected for installation and maintenance. Rafael explained that the terms have yet to be determined.
Public Comment: Christina Fernandez, South San Francisco MOTION: Director Mates moved, seconded by Director Colson to recommend to the Peninsula Clean Energy Board of Directors approval of the Local Government Solar and Storage Program.
MOTION PASSED: 5-0 (Absent: San Mateo County, San Bruno, San Carlos, Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
Atherton Director DeGolia X
Belmont Director Mates X
Item No. 2
Burlingame Director Colson X
Redwood City Director Hale X
San Bruno Director Medina X
San Carlos Director Parmer-LohanX
San Mateo Director Bonilla X
Portola Valley Director Aalfs X
Totals 5 4
6. Committee Members’ Reports
None
ADJOURNMENT
Meeting was adjourned at 11:00 a.m.