Peninsula Clean Energy
Board of Directors
Meeting
February 27, 2025
This meeting will begin shortly. Thank you!
Agenda
Call to Order / Roll Call
Public Comment (for items not on the Agenda)
• Please note, send any chats to Administrative Assistant, Brianna Arroyo Action to set the Agenda and Approve Consent Items 1-4
• Consent - Public Comment
Regular Agenda
Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
CEO Report: Board and Committee Notes
5 New Board Member Orientation – Nearly complete! Thanks to our volunteer Board buddies/mentors
Community Advisory Committee – New member application deadline is March 1; seeking a few more CAC liaisons from the Board Executive Committee & Audit and Finance appointments in April – Let the Chair and Vice Chair know if you are interested in serving Staff led Subcommittees – programs, marketing, procurement, legislative, Board ad-hoc strategic planning
CEO Report: Legislative Update
February 21: Bill Introduction Deadline
March 17 Assembly and March 26 Senate: Last opportunity to amend spot bills
Key Bills Thus Far
Pathways Initiative: SB 540 (Becker)
Wildfire Package: AB 306 (Schultz)
BESS: AB 303 (Addis)/SB 283 (Laird)
6 How is PCE Impacted by the Latest Federal Actions?
“Anti-Wind” Executive Order
• Lava Ridge (Idaho) – Severely Challenged
• CADEMO (CA Offshore) – Challenged
• Lucky Star (Wyoming) – Negotiation on Hold
• SunZia (NM Wind) – No Direct Impact
• Other Wind Opportunities
Future opportunity to contract wind projects will be limited Tariff & IRA Risk Negotiation in All Active Contract Discussions • 10% on China and 25% on Steel and Aluminum
• Section 301 Duties on non-EV BESS: 25% starting in 2026 (now only 7.5%) • Concerns on Additional Tariff
• Concerns on Tax Incentive Reduction
• Concerns on Financing & Clean Energy Investment (indirect impact) Uncertainties will continue to negatively impact contract prices and terms Funding Reduction and Job Cuts in Federal Agencies
• Slowing down renewable and transmission development
Call Center Stats from December 10, 2024 – January 31, 2025 We were able to:
o Answer over 800 calls
o Retain over 40 customers who
initially called to opt out of PCE
o Receive 2 customer compliments
Calls Other than English:
o Spanish = 102
o Mandarin = 8
The 4 most common calls topics
were:
o Bill Inquiry/High Bill
o General Info
o NEM/NEM Cash Out
o Rebates
CEO Report: PCE Facilities Update
• JLL Commerical Real Estate has been retained by PCE; fees are paid by lessor or seller
• Exploring 3 options: a) stay where we are, b) move to a new location with 5-7 year lease, c) purchase a building.
• We have begun looking at space options in Category b as that is the most likely path
• Expect a decision this Fall for a potential move in September 2026 9 CEO Report: The Month/Quarter Ahead
10 Month Action Items
March Budget season kick off
PCE 2024 performance evaluations
Power resources contract approval
Approval of residential solar+storage program
Board study sessions: PCE Energy 101; Managing Market Volatility April Earth Month – lots of community events!
Caltrain tariff update for regenerative breaking
Power resources contract approval
Distributed Energy Resources Plan
May Re-launch e-bike program
June Adoption of FY 25-26 Budget
Facilities Update
• Hired Jones Lang LaSalle (JLL) in January after interviewing four reputable firms • JLL engagement team: Derek Johnson and Hilary Barte
• JLL to be compensated by landlord
• JLL completed "employee commute " and “need assessment” analysis • Center of gravity around Belmont
• Estimated office need of 5,000 – 6,000 sq ft (excluding a boardroom) • Commenced site tours, including SamTrans building; more to come • Targeting “101 corridor”
• Redwood City to Millbrae
• Although open to all options
• On track to sign a lease by end of the year and assume occupancy by September 2026
• Also exploring acquisition opportunities
CEO Report: PCE in the Community
12 • February 27 Chamber of San Mateo County 127th Annual Awards & Recognition, San Carlos
• March 7 - Arbor Day Celebration, Los Banos
• March 11 - Merced County Community Action Agency, Los Banos
• March 12 - Pacheco High School College & Career Day, Los Banos
• March 14 - Los Banos High School Career Fair Day, Los Banos • March 14 - College of San Mateo Sustainable Careers Fair, San Mateo County
• March 15 - Four Rivers Natural History Association (FNRHA), Los Banos
• March 30 - Climate & Sustainability Committee Presentation on Electrification, Woodside
CEO Report: Staffing Updates
New Hires!
Power Resources Specialist – Lauren Dineen started February 18 No other positions currently posted
13 Upcoming Meetings – March 2025
Executive Committee:
• Monday, March 10 at 10:00 a.m.
Community Advisory Committee:
• Thursday, March 13 at 6:30 p.m.
Board of Directors Meeting:
• Thursday, March 27 at 6:30 p.m.
Audit and Finance Committee:
• Monday, May 12 at 8:30 a.m.
CAC Report
Solar and
Storage for
Public Buildings
Presentation to the Board of Directors
February 27, 2025
17 18
19 Lifetime savings
$48+ million
Agenda
Program Overview
Adding Storage and EVSE
Program Strategy
Recommendation
21 Programs Portfolio
22 *
*
+
+
* Low-income program + Includes low-income benefits
GovPV Overview
Summary: Accelerate renewable energy at local government facilities Objectives
• Reduce agency energy costs; insulate against rising PG&E rates • Support public agencies in achieving sustainability goals • Deliver resilience and grid value
• Develop a reproducible program and new service model
Initial Cohorts
• Round 1: 12 sites, 1.7 MW solar
• Round 2: 24 sites, 3.5 MW solar
23 Current Portfolio
24 # Program Site ESS Retrofit
1 GovPV1 Atherton City Hall x
2 GovPV1 Brisbane Mission Blue Center ✓
3 GovPV1 Colma Community Center ✓
4 GovPV1 Hillsborough Public Works Yard x
5 GovPV1 Los Banos Community Center x
6 GovPV1 Los Banos Wastewater Treatment Plant x
7 GovPV1 Millbrae Complex x
8 GovPV1 Millbrae Recreation Center x
9 GovPV1 Pacifica Community Center ✓
10 GovPV1 San Bruno Aquatics Center x
11 GovPV1 San Carlos Youth Center x
12 GovPV1 San Mateo County HSA Building x
# Program Site ESS Retr
13 GovPV2 Brisbane Library ✓
14 GovPV2 Colma Police Department ✓
15 GovPV2 Colma Town Hall ✓
16 GovPV2 Daly City Bayshore Community Center ✓
17 GovPV2 Daly City Fire Station 94 x
18 GovPV2 Daly City Corp Yard ✓
19 GovPV2 Daly City Reservoir 5B ✓
20 GovPV2 Daly City Serramonte Library ✓
21 GovPV2 Half Moon Bay City Hall ✓
22 GovPV2 Half Moon Bay Sheriff's Substation ✓
23 GovPV2 Menlo Park Belle Haven Child Development Center ✓ 24 GovPV2 Menlo Park Burgess Pool ✓
25 GovPV2 Menlo Park City Hall x
26 GovPV2 Menlo Park Main Library ✓
27 GovPV2 Millbrae Corporation Yard x
28 GovPV2 Pacifica Civic Center ✓
29 GovPV2 San Carlos Adult Community Center ✓
30 GovPV2 San Carlos Library x
31 GovPV2 San Mateo Beresford Rec Center ✓
32 GovPV2 San Mateo County Office of Education ✓
33 GovPV2 San Mateo County SSF Wellness Center ✓
34 GovPV2 South San Francisco Corp Yard ✓
35 GovPV2 South San Francisco Aquatic Center ✓
36 GovPV2 Woodside Town Hall x
Local union contractor
Approach: PCE Services
1. Project development – consulting, education, design, analysis, and procurement
2. Group purchase – Economies of scale pricing
3. Finance via Power Purchase Agreement – No upfront cost to customers, low cost of capital
4. At-cost service – No profit motive, transparent process 25 Contract Structure
PCE executes an Engineering, Procurement, and Construction (EPC) contract for equipment PCE owns and operates resources
PCE has a PPA for each facility for the solar production from the equipment 26 Adding Storage & EV Charging
Next Phase of Program
27 GovPV Battery Retrofits
Numerous agencies have requested energy storage for their facilities PCE has developed contract terms, cost estimates, and the internal tools to finance up to 22 community resiliency centers at GovPV sites Batteries provide outage protection, energy shifting, and grid services PCE will own and maintain the batteries, same as solar facilities Agencies review designs and finances; if accepted, sign PPA amendment Battery Retrofit Portfolio
29 # Program Site ESS Retrofit
1 GovPV1 Atherton City Hall x
2 GovPV1 Brisbane Mission Blue Center ✓
3 GovPV1 Colma Community Center ✓
4 GovPV1 Hillsborough Public Works Yard x
5 GovPV1 Los Banos Community Center x
6 GovPV1 Los Banos Wastewater Treatment Plant x
7 GovPV1 Millbrae Complex x
8 GovPV1 Millbrae Recreation Center x
9 GovPV1 Pacifica Community Center ✓
10 GovPV1 San Bruno Aquatics Center x
11 GovPV1 San Carlos Youth Center x
12 GovPV1 San Mateo County HSA Building x
# Program Site ESS Retrofit
13 GovPV2 Brisbane Library ✓
14 GovPV2 Colma Police Department ✓
15 GovPV2 Colma Town Hall ✓
16 GovPV2 Daly City Bayshore Community Center ✓
17 GovPV2 Daly City Fire Station 94 x
18 GovPV2 Daly City Corp Yard ✓
19 GovPV2 Daly City Reservoir 5B ✓
20 GovPV2 Daly City Serramonte Library ✓
21 GovPV2 Half Moon Bay City Hall ✓
22 GovPV2 Half Moon Bay Sheriff's Substation ✓
23 GovPV2 Menlo Park Belle Haven Child Development Center ✓ 24 GovPV2 Menlo Park Burgess Pool ✓
25 GovPV2 Menlo Park City Hall x
26 GovPV2 Menlo Park Main Library ✓
27 GovPV2 Millbrae Corporation Yard x
28 GovPV2 Pacifica Civic Center ✓
29 GovPV2 San Carlos Adult Community Center ✓
30 GovPV2 San Carlos Library x
31 GovPV2 San Mateo Beresford Rec Center ✓
32 GovPV2 San Mateo County Office of Education ✓
33 GovPV2 San Mateo County SSF Wellness Center ✓
34 GovPV2 South San Francisco Corp Yard ✓
35 GovPV2 South San Francisco Aquatic Center ✓
36 GovPV2 Woodside Town Hall x
Battery Safety Background
30 Improvements on battery safety seen in the last few years:
• More coordination among fire safety stakeholders
• Stronger fire safety standards
• Battery cell technology: NMC ---> LFP
• Enclosures: building enclosures ---> containerized solutions • Certifications: UL9540 ---> UL9540A
• GovPV batteries get installed
after the solar portion is
commissioned
• Lifetime solar savings >
lifetime battery costs
• Battery storage provide
resiliency at each site + new
revenues to PCE
• Forecasting up to 5MWh of
battery storage capacity
Background: Battery Retrofits
Distributed Battery Storage Value Prop
Value Who Benefits
Backup power Customer
Reduced peak
energy charges
Customer
Less strain on
the grid (RA)
PCE / grid
Background: EVSE Scope
• State code requires EV chargers and “EV-capable” spots for carport solar projects
• McMillan already makes all parking spaces within the solar carport(s) are EV capable whenever they trench
• PCE EV Ready Program funds equipment; agencies own chargers • Estimating 44 EV chargers and 191 EV capable spaces
• $615k total cost; approx. $100k funded by EV Ready, the rest is recovered through PPA payments
33 Strategy & Financials
34 Program Sequencing Strategy
Initial business model
Incorporate battery systems and EV chargers
Leverage third-party capital
Incorporate building electrification equipment
Explore other customer segments
35 Long-Term DER Strategy
36 Leverage savings to justify investment in
electrification
Deliver material customer savings
Establish scalable deployment model
Future Program Financing Strategy
37 GovPV1:
$9M
GovPV2:
$21M
GovPV3:
~$50M
• DER team working on third round with larger sites
• As program scales in MW and $, the DER team aims to create a sustainable business model at PCE
• Minimum aim on the program is to have PPA revenues return at least total investments and driving value to customers and PCE Surplus Funds Allocation
• In Dec. 2023, Board allocated $5M in surplus funds for local gov energy storage
• To provide broad benefit to member agencies, and to accelerate adoption of BESS, funds will buy down system costs
• Considering reducing system costs by up to 30% using surplus funds
Fiscal Impact
EPC contract: PCE will pay up to $30M ($7M incremental) for all installation services and O&M
PPA Agreements: Customers pay monthly payments to PCE to recover EPC and O&M costs
ITC & Surplus Funds: Buy-down the PPA price to the customer Net-neutral cost to Peninsula Clean Energy
39 Request to Board of Directors
Delegate authority to the Chief Executive Officer to finalize and execute, in a form approved by the General Counsel, the amended agreement with McMillan Electric adding battery storage installations and EV charging at current and future solar sites, increasing the contract by $7,000,000 for a total not to exceed amount of $30,000,000; and to execute the associated Power Purchase Agreement (PPA) amendments, in forms approved by the General Counsel, for the deployment of solar, battery, and EV charging systems.
40 Board Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy