Peninsula Clean Energy
Board of Directors
Meeting
July 24, 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 1-5
• Consent - Public Comment
Regular Agenda
Closed Session
Adjournment
Chair Report (Discussion)
Chair Report
General Counsel Position
• Executive Committee direction in June to support a full time, in-house GC • Contract with the County ends at the end of October, but will retain a small contract for back-up support as may be needed
• Position will post next week; Shawn and Shalini are hiring managers; Board officers will interview finalists and bring recommendation to the Board at its September meeting
Board Standing Committee Review
• Board ad-hoc committee kicked off its review/evaluation effort this week • Starting with CAC, then to AFC, then Ex Committee
• Will be meeting with representative sample of committee members and staff • Plan to have recommendations for Board consideration in September or October CEO Report (Discussion)
CEO Report – Program Challenges & Opportunities
Recent Program Challenges
• Self Generation Incentive Program (SGIP) Update
• Home Upgrade Program – Operational challenges and program restructure to improve performance and implementation
Program Opportunities
• EV Ready Program has now exceeded 2,000 chargers installed • RFP for EV Ready technical assistance released on 7/1 • Two RFPs upcoming for Resi Solar+Storage
• Bay Area Air District Rules – CCA Collaboration
CEO Report – Account Services
Customer Outreach for Bill Payment Assistance
NEW-PG&E ’Match My Payment” Program
• Up to $1000 available in matching funds when a qualified customer makes a payment of at least $50 toward past due balance
• Household income below 400% of Federal poverty line to qualify • Available until December 31st, 2025 or until funds are exhausted • PCE sent email communication on 7/14 to ~7,200 customers who may qualify Eligible AMP Customer Outreach
• AMP provides up to $8K in utility arrearage forgiveness to CARE/FERA customers • Emails sent to 1,455 AMP eligible customers on 6/30
• Over 100 new enrollments in the program confirmed this week July Legislative Update
Pathways Initiative SB 540 (Becker)
• Hearing Set in Assembly Utilities & Energy then Cancelled • PCE Part of Coalition Statement to Amend SB 540
Affordability Initiatives:
SB 254 (Becker) & AB 825 (Petrie-Norris)
• Hearings Held; Details to Follow
State Budget Update:
• Trailer Bills to Follow
8 AB 130/306 and Reach Code Impacts
REACH Codes: AB 306 (Rivas) / AB 130
• Limited Paths Forward for Adoption of Building / Reach Codes:
• Exception allows for reach codes if a city has a general plan referencing greenhouse gas emissions.
• October 1 deadline for new reach code adoption.
• PCE will update agencies on new model reach codes for building decarbonization at the September BOD meeting.
• CAISO tour confirmed for Thurs.
November 13th
• Diablo Canyon Tour has been
postponed due to refueling
timing
• New options are:
• December 4-5 or December 11-12
• Logistics requires this tour to stay in
2025
• Nelly will be in touch
Board Education Events Upcoming
September 25 Board Meeting
• 2020-2025 Strategic Plan Close Out
• DEAI Annual Report
• Power Contract
• New Office Approval
• Reach Codes
• New Agency Name (or Oct)
October 23 Board Retreat (5:30 pm start)
• Industry trends speaker
• Adopt new Strategic Plan
• Board discussion on priorities for coming year, etc
• New Agency Name
• Power Contract
• 10-year Anniversary Discussion
Busy Fall Board Schedule
CEO Report: July and August Community Events
12 • July 25th - Family Resource Day, Daly City
• August 2nd - Binational & Assemblywoman Soria: Back to School Backpack Giveaway, Los Banos
• August 9th - Summer Youth Climate Summit, San Mateo Co. • August 16th - On the Avenue Festival - Day 1, Burlingame • August 17th - On the Avenue Festival - Day 2, Burlingame • August 23rd - Waves & Watts, Half Moon Bay
• August 23rd - Cultura Fest, South San Francisco
CEO Report: Staffing Update
Stephen Campbell, Senior Analyst, Innovation Strategy, starting August 19
Upcoming Meetings – September 2025
Audit and Finance Committee:
• Special Meeting September 8 at 8:30 a.m.
Executive Committee:
• Monday, September 8, at 10:00 a.m.
Community Advisory Committee:
• Thursday, September 11 at 6:30 p.m.
Board of Directors Meeting:
• Thursday, September 24 at 6:30 p.m.
Please note: August meetings will be cancelled
Community Advisory Committee Report
Federal Policy
Change Impacts
HR 1 and July 7 EO
July 24, 2025
Presentation to Peninsula Clean Energy
T H O R N R U N PA R T N E R S
P R E S E N T A T I O N
One Bi g Beauti ful Bi ll Act
R u n d o w n o f t h e c h a n g e s m a d e t o t h e I R A t a x c r e d i t s i n t h e O B B B A .
P R E S E N T A T I O N
45Y & 48E Clean Electricity Production and Investment Credits 45X Advanced Manufacturing Credit
25C Energy Efficient Home Improvement Credit
25D Residential Clean Energy Credit
30D Clean Vehicle Credit
25E Previously Owned Clean Vehicle Credit
Transferability
Elective Pay
Same
Changed
Terminated
45Y & 48E CLEAN ELECTRICITY CREDITS
P R E S E N T A T I O N
Prior law: Effective 2025 onward with no fixed end date.
Terminates for wind and solar by 2028, but projects that begin construction within 12 months are carved out from the 2027 “placed in service” deadline.
Phased out for nuclear, geothermal, battery storage, and hydropower: 75% in 2034, 50% in 2035, 0% in 2036.
New FEOC restrictions.
45X ADVANCED MANUFACT URING
P R E S E N T A T I O N
Prior law: Available until 2032.
Phases out under the current schedule: 75% in 2030; 50% in 2031, 25% in 2032, 0% in 2032.
Phases out for producing critical minerals, with 75% in 2031, 50% in 2032, 25% in 2033, 0% in 2034.
Phases out early for wind components after 2027.
Establishes a new metallurgical coal production tax credit at 2.5% that can be claimed through 2029.
New FEOC restrictions.
IMP LEMENTAT ION
P R E S E N T A T I O N
Executive Order Highlights
Treasuryis ordered to strictly enforce new phase-outs
and issue guidance within 45 days.
Treasury will likely revise IRS safe harbor guidance
regarding “beginning of construction.”
Interior must review and remove any preferences for
wind and solar on public lands.
Emphasis is placed on eliminating subsidies for green
energy tied to "foreign adversaries" (e.g., China).
President Trump issued an executive order to aggressively implement the phase out of 45Y & 48E, targeting wind and solar projects.
• What changes could Treasury
make to the guidance legally?
• Theatrics to appease House
Freedom Caucus members?
• Potential litigation that could
stall projects?
• Second reconciliation package
in play?
THANK YOU
JIM DAVENPORT
KYLER PHILLIPS
[email protected]
[email protected]
P R E S E N T A T I O N
Power Resources
Peninsula Clean Energy
New Challenges for Developing Projects
Accelerated ITC/PTC phase-out on solar
and wind projects
Foreign Entity of Concern (FEOC)
restrictions, particularly on battery projects
Uncertainty on “Beginning Construction”
qualification
24 Peninsula Clean Energy
Potential Impacts in General
25 Peninsula Clean Energy
Potential Impacts on PCE Long-Term Contracting
• Engaged projects with expected COD prior to 2030
o Safe for the most part on ITC/PTC qualification and avoiding FEOC restrictions;
o Ability to start construction in the near term (e.g. permit, funding) o Sourcing domestic equipment or avoiding Chinese equipment o Qualified under Legacy ITC rules (construction started before 2025) • Engaged projects with expected COD beyond 2030
o At risk of not qualifying for full tax credit benefits = price uncertainty • Tariff Risk is still unsettled
26 Peninsula Clean Energy
Potential Impacts on Future Procurement
• Energy/REC/RA Pricing:
o Storage ITC without accelerated phase-out = generally positive for RA prices o Wind/Solar accelerated ITC/PTC phase out = generally negative for REC prices o Pricing trending upwards in the 2030's due to sunset of tax benefits and increased cost pressure on storage
• Ability to meet PCE's 2030 annual 100% renewable target o Solid foundation with current portfolio
o Securing a few more renewable resources (with tax benefits) would be a plus o Assuming REC prices remain reasonable in 2030
• Expansion
o Limited scale could be feasible from a procurement standpoint but would require more caution as the industry goes through this transition in the next decade 27 Peninsula Clean Energy
Other Dynamics
• Interconnection Timeline
o Lengthy study process and extended physical work schedule hurts projects’ chances to qualify for tax credits
• Accelerated Permitting
o Removing CEQA requirements?
• State’s Renewable and Clean Energy Goals
o Vs. Affordability
• State’s Reliability Procurement Orders (with growing AI load)
o Vs. Affordability
28 GREEN
Reliability Affordability
Programs
Incentive Reductions
• Solar & Energy Storage Systems (PV, ESS)
• Transportation/Electric Vehicles (EV)
• Building Electrification (BE)
Net Impact
• Slower adoption rates
• However, overall fundamentals remain positive in PV+ESS, EVs • Greatest impact likely in BE due to economics
Programs - Overall Impacts
Specific Changes for EV and Buildings
Category (PCE Program) Impact Timing
EVs (Used EV rebate, GovEV)
EV rebates ending:
1. Clean Vehicle Credit (New): $7,500
2. Clean Vehicle Credit (Used): $4,000
3. Commercial Clean Vehicle Credit (Fleets): $7,500 -
$40,000
Purchase by Sept. 30
Residential Energy Credits
(Home Upgrade)
Heat pump rebates ending:
1. Heat pump water heater tax credit: $2,000
2. Heat pump space heater tax credit: $2,000
Must be installed and
operating by Dec. 31st.
31 Policy
• Solar projects starting construction by 7/4/26 can capture ITC so long as they prove continuity of construction
• Solar projects starting construction after 7/4/26 can capture ITC if they are placed in-serviced by 12/31/27
• Solar and storage projects starting construction after 12/31/25 face “Foreign Entity of Concern” (FEOC) restrictions
• Causing construction start could become materially more challenging with updated guidance from the Treasury Dept, expected Aug 2025
• Storage projects have ITC grandfathered through 2034, so long as they meet FEOC requirements
• Elective pay, domestic content adders, and energy community adders all survive so long as the project meets other ITC reqs • Tariffs remain an issue; domestic product sourcing is our focus HB 1 Impacts on Solar and Storage
Program Impacts
• GovPV 1 solar: all 12 in operations. Impact
unlikely.
• GovPV 2 solar: all 24 in construction. Impact
unlikely.
• GovPV battery retrofits: unlikely construction
can start by end of Dec. May be impacted by
FEOC reqts.
• GovPV3: Impact expected on solar. FEOC impact
on batteries possible. Economics likely still
favorable assuming cost of capital is low.
• Residential: business model shift to customer-owned solar. Need to reduce soft-costs and cost of capital but still expected to be viable.
Authorize Power
Purchase Agreements for
the IP Darden Solar Plus
Storage Project
Roy Xu, Senior Director of Power Resources
Mehdi Shahriari, Senior Manager of Planning
and Analytics
Recommendation
Approve Resolution Delegating Authority to the Chief Executive Officer to Execute Two Power Purchase Agreements for the IP Darden III and IP Darden IV Solar Plus Storage Projects with IP Darden III, LLC and IP Darden IV, LLC with a Delivery Term of Up to Twelve (12) Years and a Commercial Operation Date of June 1, 2028, in a Total Amount Not-to-Exceed $333 Million (Action)
IP Darden Solar Plus Storage Project
Project Developer Intersect Power
Project Company IP Darden III, LLC and IP Darden IV, LLC Location Western Fresno County
Technology Solar Photovoltaics
Co-Located Lithium Ion Storage
Capacity (Total
Project)
Capacity (PCE
portion)
1,150 MW Solar
1,150 MW / 4,600 MWh (4-hr) Storage
84.56 MW Solar
83.68 MW / 334.72 MWh (4-hr) Storage
With Seller's option to increase to:
91.48 MW / 365.92 MWh (4-hr) Storage
Term 10 years, with option for Seller to extend
an additional two (2) years
Delivery Start June 1, 2028
Total Contract Cost $333 Million (Not to Exceed)
Project Structure
IP Darden Solar Plus Storage
1,150 MW Solar + 1,150 MW (4hr) Storage
IP Darden I
287.5 MW Solar +
287.5 MW Storage
IP Darden II
287.5 MW Solar +
287.5 MW Storage
IP Darden III
287.5 MW Solar +
287.5 MW Storage
IP Darden IV
287.5 MW Solar +
287.5 MW Storage
PCE is contracting portions of Darden III and Darden IV, for a total ~85MW solar and up to ~91MW storage through two separate PPAs with identical terms Developer: Intersect Power
• IP Darden will be developed by Intersect Power, a clean energy company that develops, owns and operates clean energy projects, including:
• 2.2 GW of operating solar and 2.4 GWh of battery storage in operation & construction
• Funded by investments from TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners, with plans to raise additional equity in the near future
Environmental Analysis
• The project will be built on agricultural land that is no longer able to support agriculture;
• The project is the first to be approved under CA's
new Opt-In Certification Process through the Energy
Commission, and has received all State and local
permits as of June 11, 2025;
• The project does not impact any protected areas
according to the USGS Protected Area Database;
• The project will be built in accordance with National Fire Protection Agency Standard 855 (NFPA 855),
and be approved by the Fresno County Fire
Protection District.
Labor and Community Benefits
The project will use project labor agreements (PLA) providing terms and conditions of employment with applicable labor organizations.
Benefit Type Total Project Peninsula Clean
Energy portion
New Construction Jobs 1,200 jobs 90 jobs
New Long-Term Operations
Jobs
40 jobs
15 permanent jobs
3 jobs
1 permanent job
Community Benefits
Agreement with Fresno
County
$2 million over the lifetime of
the project
$140k over the lifetime of
the project
Tax Credits and Tariff
• The project qualifies under the legacy ITC program that was mostly unaffected by the recent legislation and Executive Order • The project qualifies for 50% ITC, including the Domestic Content Adder and the Energy Community Adder
• The project is still subject to certain tariff risk on the battery cells, but PCE is insulated from such exposure for the most part through contractual arrangements
Project Values
Low-Cost Renewable Energy, Dispatchable Using A Flexible Battery Contributes to 100% Renewable by 2030 and 24/7 Goals
Best Positioned to Qualify for Tax Credits, including Bonuses Domestically-Sourced Solar Panels, Steel, and Aluminum
Ancillary Services
Resource Adequacy
Expected Generation Profiles
o ar B
our our our our
an e ar r
ay un u ug
e ct o ec
Overall Considerations
• Well-positioned and de-risked developing project with near-term COD; • Procuring one piece of a State-supported large-scale project, sharing with other CCA partners;
• Competitively priced solar and storage, fixed with no escalation; o Compared to similar project offered into PCE's 2024 RFO, and o Compared to ongoing bilateral negotiation with similar projects • Favorable term length 10-12 years;
• Protections against tariff and tax credit risks;
• Contract approval and execution in July/August 2025 would facilitate favorable project financing and solidify interconnection status Recommendation
Approve Resolution Delegating Authority to the Chief Executive Officer to Execute Two Power Purchase Agreements for the IP Darden III and IP Darden IV Solar Plus Storage Projects with IP Darden III, LLC and IP Darden IV, LLC with a Delivery Term of Up to Twelve (12) Years and a Commercial Operation Date of June 1, 2028, in a Total Amount Not-to-Exceed $333 Million (Action)
Questions
Board Member Reports
Adjournment