Item No. 2
Regular Meeting of the Executive Committee of the
Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, August 8, 2022
10:00 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 10:01 a.m. in virtual teleconference.
ROLL CALL
Participating Remotely:
Dave Pine, San Mateo County
Rick DeGolia, Atherton, Chair
Julia Mates, Belmont
Donna Colson, Burlingame, Vice Chair
Marty Medina, San Bruno
Rick Bonilla, San Mateo
John Keener, Director Emeritus
Absent:
Giselle Hale, Redwood City
Laura Parmer-Lohan, San Carlos
Jeff Aalfs, Portola Valley
Pradeep Gupta, Director Emeritus
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS MOTION: Director Medina moved, seconded by Director Bonilla to set the Agenda and approve Agenda Item Numbers 1-2.
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 May 9, 2022 Executive Committee Meeting MOTION PASSED: 6-0 (Absent: Redwood City, San Carlos, Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
Item No. 2
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-Lohan X
San Mateo Director Bonilla X
Portola Valley Director Aalfs X
Totals 6 3
REGULAR AGENDA
3. Chair Report
Chair DeGolia reported that the CEO Review Committee will get underway.
4. CEO Report
Jan Pepper, Chief Executive Officer, provided a report that discussed staffing updates and the Inflation Reduction Act.
Chair DeGolia asked if the Inflation Reduction Act would solve issues with Power Purchase Agreements (PPAs) that have been postponed due to economic issues and lead to project implementation now. Jan answered that she didn’t believe this would solve all issues, including issues with the supply chain and threat of solar panel tariffs, and that this Inflation Reduction Act has some date guidelines. Jan explained that the Inflation Reduction Act will provide more certainty for wind projects but that more information will be learned in the coming weeks.
Director Medina asked about remote work, plans to return to the office and the office building lease. Jan explained that at this time there is not a plan for staff to return to the office as Peninsula Clean Energy has adopted a remote work first policy. Regarding the lease for the additional office space, Jan explained there is interest in sub-leasing that space and that when staff does work from the office hoteling desks will be available for use.
5. Proposed Agenda for September Board of Directors Retreat Meeting (Discussion) Jan Pepper, Chief Executive Officer, shared that the September Board Retreat will be held on Thursday, September 22 at 5:30pm. Jan shared the proposed agenda.
Vice Chair Colson noted that 30 minutes would be brief to discuss Diversity, Equity, Accessibility and Inclusion (DEAI) and asked how much information will be shared before the meeting. Shawn Marshall, Chief Operating Officer, noted that a number of committee meetings are planned to vet the policies before the Retreat. The Board will receive the original version and the amended version of the policies based on responses from the various meeting groups. The action plan will not be part of the Board Retreat and will come later.
Item No. 2
Vice Chair Colson asked about the diversity of the newly hired staff and noted that there seems to be more diversity. Jan explained that our new Human Resources Director, Cora Dino, will help focus on diversity during the hiring process and that DEAI policy implementation will help in the hiring process.
Director Bonilla suggested a conversation during the Board Retreat 2035 Decarbonization Plan discussion to set an earlier target date to encourage success in 2035.
Chair DeGolia commented that the Agenda order and timing seem appropriate. He suggested sending Board Members information on the heavier topics before the meeting.
6. Update on EV Ready and CALeVIP Program (Discussion)
Rafael Reyes, Director of Energy Programs, gave a presentation on the EV Ready Program including an overview, key elements, challenges, program updates to address challenges, and a project timeline.
Director Emeritus Keener asked for clarification on the problems with California Electric Vehicle Infrastructure Project (CALeVIP). Rafael explained that he has heard CALeVIP is having staffing issues.
Public Comment: David Mauro asked if the prevailing wage requirement would be removed and also asked about the Electric Vehicle Infrastructure Training Program (EVITP).
Rafael explained that peer agencies have not had a prevailing wage or special certification requirements and are receiving better participation. Rafael believes the best approach is aligning with peer agencies in the near term.
Rafael explained that other Community Choice Aggregators have not been using EVITP, as this requirement is most appropriate for high powered charging DC fast chargers.
David Mauro asked what would happen if participation did not increase. Rafael explained that the program would be closely monitored and evaluated at that time. David Mauro asked if there have been discussions in combining these projects into one large project.
Rafael explained that this program has always operated as property owner driven, and that while combining projects was considered it was not a feasible approach.
David Mauro asked how many Electric Vehicle (EV) charging port deliveries are expected in the next year. Rafael shared that a minimum of 1000-1500 ports would be on the low side relative to the goal.
Director Emeritus Keener commented that Rafael has done a great job redesigning the program midstream.
Chair DeGolia asked if it is realistic to get to 1000 EV deployments. Rafael explained that Peninsula Clean Energy has a large program and technical assistance. There is familiarity and momentum around EV adoption and though there will be challenges, the team will do everything possible to meet the numbers.
Jan Pepper, CEO, added that Rafael, Marc Hershman, and team have been working closely with IBEW to find different ways of making this successful.
Item No. 2
Director Mates noted that we should still encourage IBEW to apply for these projects.
Chair DeGolia commented that IBEW isn’t applying for these projects, and that Peninsula Clean Energy’s projects are smaller than those that IBEW contractors prefer.
Director Bonilla commented on concern for safety and lacking experience and notes that Peninsula Clean Energy’s Policy 10 provides training and community benefits by hiring those who have professional experience in this field.
Dave Mauro commented on the potential consequences of allowing any electrician to work on these projects and expressed regret that IBEW wasn’t more successful in obtaining contractors for these projects.
Vice Chair Colson noted appreciation for the support of this program from IBEW and other unions. She also expressed that opening the program up to small local contractors could help with Diversity, Equity, Accessibility and Inclusion (DEAI) objectives and be a good compromise for the whole program to move forward. Director Bonilla added that unions always provide equal wages and benefits for all genders, and that race is not an issue when joining a union.
Chair DeGolia noted that Peninsula Clean Energy focused efforts on reaching out to unions, and IBEW in particular. He believes as more funds are brought in there will be a larger push for EV charging stations and that we will continue to reach out to IBEW contractors for these projects.
7. Update on Government Solar (Discussion)
Peter Levitt, Programs Manager, gave a presentation with an update on the Government Solar + Storage program including status of the pilot portfolio, an RFP update, financial structure, a recap on the deal structure, federal policy status including the Inflation Reductio Act, and an update on customer Power Purchase Agreements (PPA) with cities.
Chair DeGolia asked if Peninsula Clean Energy would enter into multiple EPC firms with Model 1 and multiple PPA providers with Model 2. Peter explained that the EPC services would likely be one master vendor and similarly, there would be one provider for the PPA provider.
Chair DeGolia asked if there were responses to the RFP for both Model 1 and Model 2 from different parties. Peter shared that almost every responder indicated an EPC price as well as a PPA price.
Rafael Reyes, Director of Energy Programs, noted in the presentation that the timeline is still a little fluid as there is still some discovery process going on with the exact mechanics of the tax equity capture.
Chair DeGolia asked if Peninsula Clean Energy’s staff preference between Model 1 or 2.
Peter explained that the PPA procurement model is the fallback model and easier, but that the team has been extensively vetting the first model.
Vice Chair Colson commented that these tax credits may help revitalize clean energy and that the potential to own and control these facilities can continue to be beneficial 20-30 years from now with the potential of additional federal or state funding.
Item No. 2
Director Bonilla offered his support for the project.
Director Pine asked for the total megawatts (MW) that will be provided under the program.
Peter shared that the first portfolio will have a little more than 2 MW across 15 sites and approximately 1 MW of energy storage capacity. Rafael added that recruitment will eminently start for round two casting a wider net including cities and also other public agencies such as school districts.
Director Pine asked about the plan to get to 20 MW by 2025. Rafael explained that round two will be an order of magnitude larger than round one and is the primary vehicle for the target.
Chair DeGolia asked if the EPC form or the tax financing structure is the more challenging piece. Peter explained the tax financing structure is more non-traditional and a more complicated element. Chair DeGolia asked about the possibility of supplying the tax equity investor with a bond or other public financing and the mechanism of putting together the partnership that will work on multiple projects. Peter shared that this is a pilot program and that a lot of learning will come from the numerous solar and storage projects across 13 different public agencies.
8. Committee Members’ Reports
Director Bonilla offered tours of the Carpenters Union facilities to any interested Board Members. David Mauro added that JETC will be opening on August 23rd which will have 220 apprentices in the program and Board Members are welcome to come visit.
Director Medina asked if Directors would be able to tour solar power plant facilities. Jan Pepper, Chief Executive Officer, responded that the hope is to have this tour/ribbon cutting in Spring 2023.
ADJOURNMENT
Meeting was adjourned at 11:29 a.m.