Redwood Coast Energy Authority
633 3rd Street, Eureka, CA 95501
Phone: (707) 269-1700 Toll-Free (800) 931-7232 Fax: (707) 269-1777 E-mail: [email protected] Web: www.redwoodenergy.org
BOARD OF DIRECTORS MEETING MINUTES
February 24, 2022 - Thursday, 3:30 p.m.
Notice of this meeting was posted on February 19, 2022. Chair Stephen Avis called a regular meeting of the Board of Directors of the Redwood Coast Energy Authority to order on the above date at 3:32 p.m., stating that the teleconference meeting was being conducted pursuant to the AB 361 Brown Act open public meeting law revisions signed into law on September 16, 2021, and Governor Newsom’s State of Emergency Proclamation of March 4, 2020. Chair Avis stated that the posted agenda contained public teleconference meeting participation instructions.
PRESENT: Chair Stephen Avis, Alternate Director Leslie Castellano, Vice Chair Chris Curran, David Grover, Mike Losey, Sarah Schaefer (arrived 3:39 p.m.), Frank Wilson, Mike Wilson (arrived 3:33 p.m.), Sheri Woo. ABSENT: Scott Bauer. STAFF AND OTHERS PRESENT: Power Resources Director Richard Engel, Community Advisory Committee Chair Larry Goldberg, CAC Member Catherine Gurin, CAC Vice Chair Dennis Leonardi, CAC Member Kit Mann, Executive Director Matthew Marshall; Community Strategies Manager Nancy Stephenson; Clerk of the Board Lori Taketa.
Before calling the meeting to order, Chair Avis spoke in recognition of the disaster unfolding in the city of Kyiv and the suffering caused by the Russian invasion.
REPORTS FROM MEMBER ENTITIES
Director Losey reported that the Tesla battery storage project is fully online at the Fortuna water treatment facility, having passed all interconnection tests with PG&E.
Director Grover reported that Trinidad appointed Jack Tuttle as a new Councilmember.
Councilmember Tuttle may be a future RCEA Alternate Director.
ORAL COMMUNICATIONS
There were no comments from the public on non-agenda items.
CONSENT CALENDAR
3.1 Approve Minutes of January 27, 2022, Board Meeting.
3.2 Approve Disbursements Report.
3.3 Accept Financial Reports.
3.4 Adopt Resolution 2022-2 Ratifying Governor Newsom’s March 4, 2021, State of Emergency Proclamation and Authorizing Remote Teleconference Meetings of RCEA’s Legislative Bodies for the Period February 24, 2022, through March 26, 2022, Pursuant to Brown Act Revisions.
3.5 Adopt Resolution 2022-3 Approving Updates to the Energy Risk Management Policy.
RCEA February 24, 2022, Board of Directors Meeting Minutes
3.6 Approve Information Technology Technician Job Description and Revised Organizational Chart.
Director Losey requested that item 3.1, the minutes of the January 27, 2022, Board meeting be removed from the consent calendar. No member of the public requested an item be removed from the consent calendar.
M/S: Grover, M. Wilson: Approve the consent calendar except for item 3.1 – Minutes of January 27, 2022, Board meeting.
The motion passed with a unanimous roll call vote. Ayes: Avis, Castellano, Curran, Grover, Losey, Schaefer, F. Wilson, M. Wilson, Woo. Noes: None. Absent: None.
Abstain: None.
Director Losey asked that the attendee list in the minutes be corrected to reflect his absence.
M/S: Losey, Grover: Approve consent calendar item 3.1 – Minutes of January 27, 2022, Board meeting with corrected attendee list.
The motion passed with a unanimous roll call vote. Ayes: Avis, Castellano, Curran, Grover, Losey, Schaefer, F. Wilson, M. Wilson, Woo. Noes: None. Absent: None.
Abstain: None.
Chair Avis stated there was no Community Choice Energy business on this meeting agenda.
OLD BUSINESS
5.1 Community Advisory Committee Member Appointments
Executive Director Marshall reported that an ad hoc Board subcommittee reviewed applications and nominated four people to fill the at-large Community Advisory Committee seats. Director Woo thanked the applicants and described the committee’s decision-making process and criteria. The nomination subcommittee requested more effort to recruit applicants from different parts of the community and requested enlisting the Racial Equity Subcommittee to help find applicants to fill the next vacancies. The diversity of the current applicant pool’s community involvements, energy and transportation experience and length of time spent in Humboldt was praised. Director Mike Wilson expressed appreciation for County nominee Jerome Qiriazi’s experience and institutional knowledge.
There were no responses from the public to Chair Avis’ invitation for comment. Chair Avis closed the public comment period.
M/S: Grover, Losey: Reappoint Elizabeth Burks, Roger Hess, Ethan Lawton, and Dennis Leonardi to the Fortuna, Rio Dell, Humboldt Bay Municipal Water District and Ferndale seats, respectively; appoint Jerome Qiriazi to the vacant County seat; and appoint/reappoint Colin Fiske, Larry Goldberg, Emily Morris, and Jeff Trirogoff to the at-large Community Advisory Committee seats; for Two-Year Terms Ending on April 9, 2024.
RCEA February 24, 2022, Board of Directors Meeting Minutes
The motion passed with a unanimous roll call vote. Ayes: Avis, Castellano, Curran, Grover, Losey, Schaefer, F. Wilson, M. Wilson, Woo. Noes: None. Absent: None.
Abstain: None.
5.2 RePower Humboldt Strategic Plan Status Update (Information only) Executive Director Marshall gave the biannual report on progress in the strategic plan’s four categories.
In Regional Planning and Coordination, the CORE Hub launched in September after two years of development. This project will seek ways to move climate and resilience issues forward and bring funding for these projects into the region. RCEA, its offshore wind partners and the CORE Hub provided comments on the offshore wind BOEM lease process’ draft environmental impact assessment. RCEA continues to work with staff from the cities and County on the regional climate action plan development.
In Low-Carbon Transportation, the Arcata Community Center electric vehicle charging stations began operations and development of the airport EV charging stations is underway.
Staff is working on a California Energy Commission grant application for additional charging stations. Eligible electric vehicle and charging station applicants are receiving rebates and there is interest in a second round of electric bike rebates. Funding for these transportation rebates comes from RCEA’s Community Choice Energy program revenues. Staff is starting work on a medium- and heavy-duty EV planning grant application.
In Integrated Demand-Side Management, also known as Customer Energy Solutions, RCEA received a $161,000 grant to expand the building electrification heat pump program which is funded through CPUC grants and RCEA’s Community Choice Energy program revenues.
Staff are in the final stages of submitting a CPUC Rural REN funding proposal and are launching a customer rebate catalog listing an increased number of customer rebate and incentive programs.
In Energy Generation and Utility Services, the airport microgrid is now the largest operating Humboldt County solar array, delivering power to the grid and participating in the California energy market. The last phases of testing and commissioning for islanding are underway and a ribbon cutting event is being planned for June. Michael Furniss completed his contract to investigate small, local hydropower development and alternative uses of forest biomass.
RCEA enrolled in the California Arrearages Payment Program. RCEA customers who fell behind in payments will receive about $1.5 million in bill credits. The first California Community Power joint procurement agreement for long-duration storage is on this agenda for Board approval. Construction on the 5 MW Tierra Buena battery storage project, a joint procurement with Valley Clean Energy which satisfies some of RCEA’s new energy capacity construction requirements, is 90% complete. Battery performance degradation, recycling and consideration of these issues in the Tesla contract were discussed.
Chair Avis invited public comment. There were no comments from the public. Chair Avis closed the public comment period.
5.3.California Community Power Long-Duration Storage Agreement with LS Power (Tumbleweed)
RCEA February 24, 2022, Board of Directors Meeting Minutes
Power Resources Director Engel reported on the state procurement mandates to ensure grid reliability, this mandate’s requirement of construction of new long-duration energy storage which can discharge electricity at full capacity over eight hours or longer, and the joint powers authority (JPA) formed by community choice aggregators to jointly procure mandated new energy resources. The Tumbleweed long-duration storage project has received attention for being one of the first long-duration storage contracts to near execution in California by a JPA of Community Choice Aggregators rather than an investor-owned utility. The novelty of the collective procurement arrangement necessitated complex agreement structures and new contingency arrangements which were reviewed in more detail by a Board ad hoc subcommittee. The work to develop these agreements to satisfy both procuring entities and developers will benefit future large-scale energy resource development projects such as offshore wind.
M/S: Losey, Grover: Delegate authority to the Executive Director to execute on behalf of Redwood Coast Energy Authority as a member of California Community Power the following agreements and any necessary ancillary documents for the Tumbleweed Energy Storage for Long Duration Storage with a delivery term of 15 years starting at the Commercial Operation Date on or about June 1, 2026, for an RCEA share not to exceed 3.82 MW:
a. Project Participation Share Agreement (PPSA) by and among Redwood Coast Energy Authority, California Community Power and participating community choice aggregators (CCAs),
b. Energy Storage Service Agreement (ESSA) - Buyer Liability Pass Through Agreement (BLPTA) by and among Redwood Coast Energy Authority, California Community Power and Tumbleweed Energy Storage, LLC,
c. Operations Agreement (COA) by and among Redwood Coast Energy Authority, California Community Power and participating CCAs for Tumbleweed (agreement to be developed).
The motion passed with a unanimous roll call vote. Ayes: Avis, Castellano, Curran, Grover, Losey, Schaefer, F. Wilson, M. Wilson, Woo. Noes: None. Absent: None.
Abstain: None.
NEW BUSINESS
6.1.Community Advisory Committee Annual Report to the RCEA Board Executive Director Marshall described the process to institute an annual Community Advisory Committee report to the Board to encourage a more interactive process between the CAC and Board.
CAC Chair Goldberg reviewed the committee’s past year accomplishments in the areas of assessing alternate biomass uses, drafting agency comments on the North McKay Ranch Project in relation to RePower Humboldt strategic plan goals, bond and alternate financing energy resilience project identification, and community outreach. Chair Goldberg reviewed the CAC’s 2022 work goals, on which the Board was previously asked to comment and provide feedback.
RCEA February 24, 2022, Board of Directors Meeting Minutes
CAC members in attendance described the committee’s good internal working relationship despite differences of opinion and the CAC’s function as a liaison to the community about RCEA projects, programs and issues. The need for the CAC to explain the region’s energy challenges and opportunities to the community was discussed, as was the committee’s coordination with staff and knowledge of agency efforts. The directors thanked the CAC members in attendance for their work, for their input, for being a venue for in-depth conversation about energy issues, and for bringing value to the agency. Director Schaefer introduced herself as the new Board liaison to the CAC.
Chair Avis invited public comment. There were no comments from the public. Chair Avis closed the public comment period.
STAFF REPORTS
7.1. Report from Executive Director Matthew Marshall
Executive Director Marshall reported that the Harbor district did not receive the federal infrastructure grant for which RCEA contributed funds to develop a proposal. The developed proposal material will be used to pursue other harbor redevelopment funding. A summary of RCEA’s work in February is available on the Board of Directors webpage. The CPUC has delayed making a solar net energy metering tariff decision. Staff is watching for a revised proposal.
Chair Avis commented that rural counties have a poor record of winning grants and that working with a good grant writer is a worthwhile investment to win infrastructure grants.
There were no responses from the public to Chair Avis’ invitation for comment. Chair Avis closed the public comment period.
FUTURE AGENDA ITEMS
There were no requests for future agenda items from the directors or the public.
The meeting was adjourned at 4:40 p.m.
Lori Taketa
Clerk of the Board