Redwood Coast Energy Authority Board of Directors
May 26, 2022

Redwood Coast Energy Authority
633 3
rd 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 AGENDA
May 26, 2022 -Thursday, 3:30 p.m.

COVID-19 NOTICE

RCEA AND HUMBOLDT BAY MUNICIPAL WATER DISTRICT OFFICES

WILL NOT BE OPEN TO THE PUBLIC FOR THIS MEETING
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, this meeting will not be convened in a physical location. Board members will participate in the meeting via an online Zoom video conference.

To listen to the meeting by phone, call (669) 900-6833 or (253) 215-8782. Enter webinar ID:
819 7236 8051. To watch the meeting online, join the Zoom webinar at https://us02web.zoom.us/j/81972368051.

You may submit written public comment by email to [email protected].

Please identify the agenda item number in the subject line. Comments will be included in the meeting record but not read aloud during the meeting.

To make a comment during the public comment periods, raise your hand in the online Zoom webinar, or press star (*) 9 on your phone to raise your hand. You will continue to hear the meeting while you wait. When it is your turn to speak, a staff member will unmute your phone or computer. You will have 3 minutes to speak.

While downloading the Zoom application may provide a better meeting experience, Zoom does not need to be installed on your computer to participate. After clicking the webinar link above, click “start from your browser.”
In compliance with the Americans with Disabilities Act, any member of the public needing special accommodation to participate in this meeting should call (707) 269-1700 or email [email protected] at least 3 business days before the meeting. Advance notice enables RCEA staff to make their best effort to reasonably accommodate access to this meeting while maintaining public safety.

Pursuant to Government Code section 54957.5, all writings or documents relating to any item on this agenda which have been provided to a majority of the Board of Directors, including those received less than 72 hours prior to the RCEA Board meeting, will be made available to the public at www.RedwoodEnergy.org.
1 RCEA May 26, 2022, Board of Directors Meeting Agenda

OPEN SESSION Call to Order

1. REPORTS FROM MEMBER ENTITIES

2. ORAL COMMUNICATIONS
This time is provided for people to address the Board or submit written communications on matters not on the agenda.

At the conclusion of all oral communications, the Board may respond to statements. Any request that requires Board action will be set by the Board for a future agenda or referred to staff.

3. CONSENT CALENDAR
All matters on the Consent Calendar are considered to be routine by the Board and are enacted in one motion. There is no separate discussion of any of these items. If discussion is required, that item is removed from the Consent Calendar and considered separately. At the end of the reading of the Consent Calendar, Board members or members of the public can request that an item be removed for separate discussion.

3.1 Approve Minutes of April 28, 2022, Board Meeting.

3.2 Approve Disbursements Report.

3.3 Accept Financial Reports.

4. REMOVED FROM CONSENT CALENDAR ITEMS
Items removed from the Consent Calendar will be heard under this section.

COMMUNITY CHOICE ENERGY (CCE) BUSINESS (Confirm CCE Quorum) Items under this section of the agenda relate to CCE-specific business matters that fall under RCEA’s CCE voting provisions, with only CCE-participating jurisdictions voting on these matters with weighted voting as established in the RCEA joint powers agreement.

5. OLD CCE BUSINESS

5.1. Power Procurement Update (Information only)

6. NEW CCE BUSINESS

6.1. North Coast Renewables Development Collaboration
Authorize the Executive Director to enter into the Memorandum of Understanding Between Redwood Coast Energy Authority and Sonoma Clean Power Authority to Collaborate on Enabling Transformative Renewable Energy Development Along the Northern California Coast.

END OF COMMUNITY CHOICE ENERGY (CCE) BUSINESS

7. OLD BUSINESS

7.1 Board and Community Advisory Committee Meeting Method Options Extend Resolution No. 2022-4 Ratifying Governor Newsom’s March 4, 2020, State of Emergency Proclamation and Authorizing Remote Teleconference Meetings of RCEA’s Legislative Bodies, for the period May 28, 2022, through June 26, 2022, pursuant to Brown Act revisions of AB 361, and 2 RCEA May 26, 2022, Board of Directors Meeting Agenda

Direct staff to:

1. Make arrangements for socially-distanced, in-person RCEA public meetings beginning July 2022,

2. Make arrangements for hybrid, socially-distanced, in-person public meetings beginning July 2022, or

3. Continue conducting RCEA public meetings virtually until the Governor rescinds the COVID-19 public health state of emergency.

7.2 Net Energy Metering Successor Tariff Proceeding Update Discuss, and potentially direct, RCEA action on next steps regarding advocacy in forthcoming NEM successor tariff policy development.

Discuss, and potentially solicit new volunteers for the RCEA Board Ad Hoc Net Energy Metering Subcommittee.

8. NEW BUSINESS

8.1 Proposed Agency Position Additions and Revisions
Approve:
1) Creation of an Infrastructure Programs Manager position, 2) Addition of a DSM Intake Coordinator position,
3) Addition of a Power Resources Specialist position,
4) Update to the RCEA Organization Chart, and
5) Revising the Assistant/Coordinator/Associate position to clarify the distinction between limited-term and permanent positions.

8.2 FY 2022-2023 Preliminary Draft Budget
Provide guidance and input to staff on draft FY22-23 budget.

9. STAFF REPORTS

9.1 Deputy Executive Director’s Report
a. Monthly RCEA Work Report

10. FUTURE AGENDA ITEMS
Any request that requires Board action will be set by the Board for a future agenda or referred to staff.

11. ADJOURNMENT

NEXT REGULAR MEETING
Thursday, June 23, 2022, 3:30 p.m.

The location of this meeting is to be determined.
3 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 DRAFT MINUTES
April 28, 2022 - Thursday, 3:30 p.m.

Notice of this meeting was posted on April 22, 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 (briefly offline from 4:15-4:20 p.m.), Scott Bauer (arrived 3:34 p.m.), Rex Bohn, Vice Chair Chris Curran, David Grover, Mike Losey, Sarah Schaefer, Frank Wilson, Sheri Woo. ABSENT: None. STAFF AND OTHERS PRESENT: Power Resources Director Richard Engel, The Energy Authority Client Services Manager Jaclyn Harr, Community Strategies Manager Nancy Stephenson; Clerk of the Board Lori Taketa, Deputy Executive Director Eileen Verbeck.

REPORTS FROM MEMBER ENTITIES
Director Losey mentioned a Washington Post article rating 25 investor-owned utilities’ performance on climate change policy implementation. Eleven utilities were found to be actively obstructing climate change policies. PG&E scored among the highest-rated utilities for implementing climate change policies.

Chair Avis reported that a large tract off the Oregon Coast was opened for offshore wind development.

ORAL COMMUNICATIONS
There were no public comments for non-agenda items. Chair Avis closed the oral communications portion of the meeting.

CONSENT CALENDAR

3.1 Approve Minutes of March 24, 2022, Board Meeting.

3.2 Approve Disbursements Report.

3.3 Accept Financial Reports.

3.4 Adopt RCEA Resolution 2022-4 Ratifying Governor Newsom's March 4, 2020, State of Emergency Proclamation and Authorizing Remote Teleconference Meetings of RCEA's Legislative Bodies for the Period April 28, 2022, through May 27, 2022, Pursuant to Brown Act Revisions.

3.5 Accept Annual RCEA Supplier Diversity Report and Plan.

No member of the Board or public requested items to be removed from the consent calendar.

M/S: Grover, Losey: Approve the consent calendar items. 4 RCEA April 28, 2022, Board of Directors Meeting DRAFT Minutes

The motion passed with a unanimous roll call vote. Ayes: Avis, Bauer, Bohn, Curran, Grover, Losey, Schaefer, Wilson, Woo. Noes: None. Absent: None. Abstain: None.

Chair Avis confirmed there was a quorum to conduct Community Choice Energy business.

OLD CCE BUSINESS

5.1 Energy Risk Management Quarterly Report
The Energy Authority Client Services Manager Jaclyn Harr described rate and revenue projections for 2023 and beyond and presented a range of possible rate scenario models.

Ms. Harr expressed optimism about agency revenues in the next two years but advised caution due to the extremely volatile energy market and regulatory uncertainty. Ms. Harr described RCEA’s energy price hedging to moderate exposure to energy cost fluctuations; the Russia-Ukraine war’s impact on natural gas prices and California energy production; and the Sandrini solar project’s delays due to solar industry-wide supply chain and tariff issues.

Ms. Harr verified that a significant portion of RCEA’s cash reserves are still tied up as buyer security for the Sandrini Solar project, and that contract negotiations for the project have been reopened due to a six-month construction delay. There was discussion about lowering customer rates or offering year-end bill credits as the agency’s fiscal position improves, the need to pay back loans that are helping the agency weather a recent cash shortfall and reprioritizing reserve funding.

There were no responses from the public to Chair Avis’ invitation for comment. Chair Avis closed the public comment period.

M/S: Grover, Losey: Accept Energy Risk Management Quarterly Report.

The motion passed with a unanimous roll call vote. Ayes: Bauer, Bohn, Curran, Grover, Losey, Schaefer, Wilson. Noes: None. Absent: Avis. Abstain: None. Non-Voting: Woo.

OLD BUSINESS

7.1. CPUC-Mandated Long-Duration Storage (LDS) Procurement Power Resources Director Richard Engel described RCEA’s participation in the California Community Power (CC Power) procurement to meet CPUC mandates. Director Engel described the Goal Line long duration storage project, its complex contract structure and the ongoing firm clean resources mandated procurement. Of CC Power’s ten CCA members, six are participating in the Goal Line procurement. CCAs often choose not to participate if they can meet procurement mandates more easily by other means or if they determine the contracts being pursued by CC Power do not align with their agency’s own procurement preferences. Smaller CCAs such as RCEA often participate in CC Power’s joint procurements to benefit from greater, pooled buying power. Staff was disappointed that non-lithium-ion battery projects did not score higher in the group’s analysis, but ultimately supported the Goal Line lithium-ion battery project due to concerns that non-lithium-ion battery vetting delays would cause missed LDS compliance deadlines, which RCEA is on track to meet.

Chair Avis invited public comment. There were no comments from the public. Chair Avis closed the public comment period.
5 RCEA April 28, 2022, Board of Directors Meeting DRAFT Minutes

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 Goal Line Long Duration Storage project with a delivery term of 15 years starting at the Commercial Operation Date on or about June 1, 2025, for an RCEA share not to exceed 3.21 MW:
a) Project Participation Share Agreement by and among Redwood Coast Energy Authority, California Community Power and participating community choice aggregators
b) Energy Storage Service Agreement - Buyer Liability Pass Through Agreement by and among Redwood Coast Energy Authority, California Community Power and Goal Line BESS 1, LLC
c) Operations Agreement by and among Redwood Coast Energy Authority, California Community Power and participating CCAs for Goal Line (agreement to be developed, not attached).

The motion passed with the following roll call vote. Ayes: Avis, Bauer, Bohn, Curran, Grover, Losey, Schaefer, Wilson, Woo. Noes: None. Absent: None.

FUTURE AGENDA ITEMS
Director Bauer requested Board discussion of ways to speed up renewable energy project construction given the long lead times for project development and permitting. The offshore wind project may take until 2030 to permit and build, but global greenhouse gas emissions must be halved by that time. Current renewable energy project construction speeds are inadequate to meet the goal. The directors discussed how regulatory agency (like the California Coastal Commission) approvals often slow project development, how Oregon and New York offshore wind projects will likely be operational before California projects and how agencies nationwide at all levels need to ascertain how to address the climate crisis swiftly while not circumventing concerns underpinning regulations. It was suggested that staff investigate efforts to change environmental regulation to complete renewable projects within federal infrastructure funding deadlines. Staff pointed out that the Board’s legislative platform directs staff to support streamlining renewable resource projects and that staff is communicating with the Governor’s office about ways to move the offshore wind project forward as quickly as possible.

The directors welcomed Supervisor Bohn to his first meeting in years as the County’s Director, and thanked Director Grover for his enthusiastic service. Director Grover confirmed that Councilmember Jack Tuttle would be attending the May meeting as Trinidad’s newly appointed representative.

The meeting was adjourned at 4:47 p.m.

Lori Taketa
Clerk of the Board
6 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2022
Type Date Num Name Memo Amount
Liability Check 03/03/2022 E-pay EDD Taxes -191.02
Liability Check 03/03/2022 E-pay Internal Revenue Service Taxes -1,232.70 Paycheck 03/04/2022 ACH Employee Final paychecks -3,282.51 Liability Check 03/09/2022 E-pay EDD Taxes -5,502.98
Liability Check 03/09/2022 E-pay Internal Revenue Service Taxes -25,155.50 Liability Check 03/09/2022 E-pay EDD Taxes -124.65
Bill Pmt -Check 03/10/2022 ACH Keenan Anthem Medical Insurance March 2022 -23,638.92 Liability Check 03/10/2022 12989 Umpqua Bank Health Savings Account contributions -148.72 Check 03/10/2022 12990 CCE Customer Heat Pump Rebate #5754 -950.00 Check 03/10/2022 12991 CCE Customer Heat Pump Rebate #5746 -800.00 Check 03/10/2022 12992 CCE Customer Heat Pump Rebate #5632 -800.00 Check 03/10/2022 12993 CCE Customer Heat Pump Rebate #5700 -1,025.00 Check 03/10/2022 12994 CCE Customer Heat Pump Rebate #5701 -800.00 Check 03/10/2022 12995 CCE Customer Heat Pump Rebate #5702 -2,050.00 Check 03/10/2022 12996 CCE Customer Heat Pump Rebate #5747 -1,300.00 Check 03/10/2022 12997 CCE Customer Heat Pump Rebate #5744 -1,825.00 Check 03/10/2022 12998 CCE Customer Heat Pump Rebate #5683 -1,525.00 Check 03/10/2022 12999 CCE Customer Heat Pump Rebate #5756 -800.00 Bill Pmt -Check 03/10/2022 13000 Aiqueous, LLC PowerPath Configuration Project Hours - Feb 22 -2,475.00 Bill Pmt -Check 03/10/2022 13001 Ameritas - Dental #010-055098-00001 March 2022 -1,747.99 Bill Pmt -Check 03/10/2022 13002 Ameritas - Vision 010-055098-00002 March 2022 -373.76 Bill Pmt -Check 03/10/2022 13003 AT&T DSL charges - ACV -163.57 Bill Pmt -Check 03/10/2022 13004 Blue Lake Rancheria Loan repayment March 2022 -8,000.00 Bill Pmt -Check 03/10/2022 13005 Braun Blaising Smith Wynne Legal Services - Regulatory - January 2022 -11,703.40 Bill Pmt -Check 03/10/2022 13006 CalCCA Operational Member dues Q3 21/22 -28,510.00 Bill Pmt -Check 03/10/2022 13007 City of Arcata February 2022 Utility User Tax -6,096.28 Bill Pmt -Check 03/10/2022 13008 City of Arcata February 2022 Excessive Energy Use Tax -3,296.44 Bill Pmt -Check 03/10/2022 13009 City of Eureka-Water Water service, 1/24-02/23/22 -137.97 Bill Pmt -Check 03/10/2022 13010 David L. Moonie & Co., LLP Accounting consultation -493.00 Bill Pmt -Check 03/10/2022 13011 Diamond, Nancy Legal services -12,825.00 Bill Pmt -Check 03/10/2022 13012 Donald Dame Professional Services February 2022 -320.25 Bill Pmt -Check 03/10/2022 13013 HCOE Business card printing -21.00 Bill Pmt -Check 03/10/2022 13014 Hilson, D. Mileage reimbursement - January 2022 -1.15 Bill Pmt -Check 03/10/2022 13015 HireRight Background Check: new hires -15.00 Bill Pmt -Check 03/10/2022 13016 Kerekes, C. Mileage reimbursement - February 2022 -18.57 Bill Pmt -Check 03/10/2022 13017 Local Worm Guy Compost service -40.00 Bill Pmt -Check 03/10/2022 13018 Lost Coast Communications Radio spots - Food for People promo Feb 2022 -810.00 Bill Pmt -Check 03/10/2022 13019 Mateel Community Center Event rental - Solar First Responder Training -250.00 Check 03/10/2022 13020 Mateel Community Center VOID: Refundable Security/Cleaning Deposit 0.00 Bill Pmt -Check 03/10/2022 13021 Means, M. Mileage reimbursement - February 2022 -33.93 Bill Pmt -Check 03/10/2022 13022 Mission Uniform & Linen FEB mat service, janitorial supplies -8.47 Bill Pmt -Check 03/10/2022 13023 North Coast Cleaning Feb monthly cleaning service -480.00 Bill Pmt -Check 03/10/2022 13024 PG&E EV Account EV stations 1/13-2/13/2022 -527.71 Bill Pmt -Check 03/10/2022 13025 PG&E Utility Account 1/13-2/13/22 office utilities -1,249.65 Bill Pmt -Check 03/10/2022 13026 Ray Morgan Company Printer charges -29.70 Bill Pmt -Check 03/10/2022 13027 Recology Febuary 2022 garbage service -93.21 Bill Pmt -Check 03/10/2022 13028 Shapiro, Galvin, Shapiro & Moran HR legal services -February 2022 -1,920.00 Bill Pmt -Check 03/10/2022 13029 Times Printing Company Move-in mailers printing and postage -1,034.23 Bill Pmt -Check 03/10/2022 13030 Verizon Wireless February 2022 Tablet/cell service for staff -1,590.74 Check 03/10/2022 13031 VISA February 2022 Statement 1/21/2022 - 2/18/2022 -5,144.36 Bill Pmt -Check 03/10/2022 13032 Blue Lake Rancheria Loan fee -1,850.00 Liability Check 03/10/2022 ACH Newport Group Deferred compensation contributions -15,443.82 Paycheck 03/10/2022 ACH Employees Payroll -61,109.14
Check 03/22/2022 Umpqua Bank Service Charge -22.68

7 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2022
Type Date Num Name Memo Amount
Liability Check 03/24/2022 E-pay EDD Taxes -5,872.02
Liability Check 03/24/2022 E-pay Internal Revenue Service Taxes -27,582.76 Liability Check 03/24/2022 E-pay EDD Taxes -103.01
Bill Pmt -Check 03/25/2022 ACH CalPine Corporation Calpine Febraury 2022 Costs -61,461.12 Bill Pmt -Check 03/25/2022 ACH Leapfrog Energy February 2022 RA -36,740.00 Bill Pmt -Check 03/25/2022 ACH Snow Mountain Hydro, LLC Cove plant hydro - FEB 2022 -39,831.37 Bill Pmt -Check 03/25/2022 ACH Humboldt Sawmill Co. HSC February 2022 -556,078.92 Bill Pmt -Check 03/25/2022 ACH Keenan Anthem Medical Insurance April 2022 -24,552.78 Bill Pmt -Check 03/25/2022 13033 Advanced Display & Signs RCEA office sign replacement -269.39 Bill Pmt -Check 03/25/2022 13034 Colonial Life Colonial Life Premiums Mar 2022 -1,234.58 Bill Pmt -Check 03/25/2022 13035 Developed Employment Services, LLC. Facilities maintenance work -143.95 Bill Pmt -Check 03/25/2022 13036 Eureka Chamber of Commerce 2022 Annual Membership Dinner sponsor -500.00 Bill Pmt -Check 03/25/2022 13037 Food For People, Inc. Donations Mar. 2022 -1,200.00 Bill Pmt -Check 03/25/2022 13038 HSU - Sponsored Programs Foundation Pole Mounted Solar plan engineering -2,568.00 Bill Pmt -Check 03/25/2022 13039 Humboldt Bay Coffee Co. Office coffee -51.90 Bill Pmt -Check 03/25/2022 13040 Keyes & Fox, LLP February legal services -158.00 Bill Pmt -Check 03/25/2022 13041 Mission Uniform & Linen MAR mat service, janitorial supplies -107.60 Bill Pmt -Check 03/25/2022 13042 Morgan Brown Translation services for DSM forms -550.00 Bill Pmt -Check 03/25/2022 13043 NYLEX.net, Inc. Onsite network support services - Apr -3,200.00 Bill Pmt -Check 03/25/2022 13044 Times Printing Company March printing expenses -1,240.63 Bill Pmt -Check 03/25/2022 13045 Winzler, John Office Lease - April 2022 -7,132.00 Check 03/25/2022 13046 CCE Customer EV rebate #18 -1,000.00 Check 03/25/2022 13047 CCE Customer Residential EVSE rebate #11 -500.00 Check 03/25/2022 13048-55 NEM Customers NEM Account close-outs -805.94 Bill Pmt -Check 03/25/2022 13056 PG&E CCA February CCE Charges -22,211.35 Bill Pmt -Check 03/25/2022 13057 PG&E Utility Account 2/14-3/15/22 office utilities -1,256.80 Paycheck 03/25/2022 ACH Employees Payroll -64,660.94
Liability Check 03/25/2022 ACH Newport Group Deferred compensation contributions -12,351.52 Liability Check 03/25/2022 ACH Newport Group Deferred compensation contributions -17,030.79 TOTAL -1,129,383.39

8 Redwood Coast Energy Authority
Profit & Loss Budget vs. Actual
July 2021 through March 2022
Jul '21 - Mar 22 Budget % of Budget
Ordinary Income/Expense
Income
5 REVENUE EARNED
Total 5000 · Revenue - government agencies 431,995.65 911,000.00 47.42% Total 5100 · Revenue - program related sales 19,537.66 31,000.00 63.03% Total 5400 · Revenue-nongovernment agencies 1,139,176.58 1,377,873.00 82.68% Total 5500 · Revenue - Electricity Sales 31,781,563.90 44,645,168.00 71.19% Total 5 REVENUE EARNED 33,372,273.79 46,965,041.00 71.06% Total Income 33,372,273.79 46,965,041.00 71.06%
Gross Profit 33,372,273.79 46,965,041.00 71.06%
Expense
Total 6 WHOLESALE POWER SUPPLY 36,312,606.97 41,084,582.00 88.39% Total 7 PERSONNEL EXPENSES 2,263,547.72 3,517,800.00 64.35% Total 8.1 FACILITIES AND OPERATIONS 482,521.80 3,313,389.00 14.56% Total 8.2 COMMUNICATIONS AND OUTREACH 67,850.84 118,570.00 57.22% Total 8.3 TRAVEL AND MEETINGS 1,692.39 44,300.00 3.82%

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 96,652.03 180,000.00 53.7%
8410 · Contracts - Program Related Ser 265,450.89 393,000.00 67.55% 8420 · Accounting 4,822.00 55,000.00 8.77%
8430 · Legal 116,524.95 153,000.00 76.16%
8450 · Wholesale Services - TEA 491,238.00 639,088.00 76.87% 8460 · Procurement Credit - TEA 517,909.45 340,032.00 152.31% 8470 · Data Management - Calpine 553,624.32 738,144.00 75.0% Total 8.4 PROFESSIONAL & PROGRAM SRVS 2,046,221.64 2,498,264.00 81.91% Total 8.5 PROGRAM EXPENSES 451,862.39 631,393.00 71.57% Total 8.6 INCENTIVES & REBATES 94,255.45 601,000.00 15.68% Total 9 NON OPERATING COSTS 77,896.91 414,320.00 18.8%
Total Expense 41,798,456.11 52,223,618.00 80.04%
Net Ordinary Income -8,426,182.32 -5,258,577.00 160.24% Net Other Income 0.00 6,600,000.00 0.0%
Net Income -8,426,182.32 1,341,423.00 -628.15%

9 Redwood Coast Energy Authority
Balance Sheet
As of March 31, 2022
Mar 31, 22
ASSETS
Current Assets
Checking/Savings
1010 · Petty Cash 300.00
1050 · GRANTS & DONATIONS 3840 15,995.51
1060 · Umpqua Checking Acct 0560 -52,493.30
1071 · Umpqua Deposit Cntrol Acct 8215 5,288,793.77
1075 · Umpqua Reserve Account 2300 100,000.00
1076 · First Republic Bank - 4999 62,266.82
8413 · COUNTY TREASURY 3839 5,329.01
Total Checking/Savings 5,420,191.81
Total Accounts Receivable 84,546.30
Other Current Assets
1101 · Allowance for Doubtful Accounts -2,031,759.61
1103 · Accounts Receivable-Other 8,892,241.35
1120 · Inventory Asset 21,715.00
1202 · Prepaid Expenses -11,490.13
1205 · Prepaid Insurance 11,998.61
1499 · Undeposited Funds 1,403.00
Total Other Current Assets 6,884,108.22
Total Current Assets 12,388,846.33
Total Fixed Assets 8,402,029.71
Other Assets
1700 · Retained Deposits 4,293,600.00
Total Other Assets 4,293,600.00
TOTAL ASSETS 25,084,476.04

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable 5,392,666.01
Total Credit Cards 7,967.85
Other Current Liabilities
2002 · Deposits Refundable 244,845.00
2013 · Unearned Revenue - PA 2020-2023 1,156,963.30
2050 · Liabilities
2056 · BLR Short Term Loan 2,000,000.00
2057 · MCE Short Term Loan 4,000,000.00
Total 2050 · Liabilities 6,000,000.00
Total 2100 · Payroll Liabilities 187,334.94
Total Other Current Liabilities 7,589,143.24
Total Current Liabilities 12,989,777.10
Long Term Liabilities
Total 2700 · Long-Term Debt 6,287,592.00
Total Long Term Liabilities 6,287,592.00
Total Liabilities 19,277,369.10
Equity
2320 · Investment in Capital Assets 215,489.00
3900 · Fund Balance 14,018,009.11
Net Income -8,426,391.17
Total Equity 5,807,106.94
TOTAL LIABILITIES & EQUITY 25,084,476.04

10

STAFF REPORT
Agenda Item # 5.1
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY: Richard Engel, Director of Power Resources Jocelyn Gwynn, Senior Power Resources Manager
SUBJECT: Power Procurement Update

SUMMARY
Several power projects in development that RCEA has contracted or is currently negotiating contracts for are experiencing delays due to various market uncertainties, including supply chain disruptions, rising commodity costs, and a solar tariff investigation being conducted by the Department of Commerce. Staff will provide an oral presentation updating the Board on the following projects in the context of these issues, and staff’s plans for alleviating the delays:
 Sandrini Sol 1
 Hatchery Road and North Coast Highway Solar Feed-In Tariff  Fairhaven Battery Storage (in negotiation)
 Foster Road and Mad River Solar + Storage (in negotiation) ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Procuring the above projects aligns with the following Strategic Plan goals, in addition to meeting RCEA’s compliance requirements for long-term renewable resource procurement and new capacity development. Managing the risks associated with these projects is in alignment with RCEA’s Energy Risk Management Policy.
 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program  4.1.5 Ensure Diversity in Local Sources
 4.1.7.3 Provide Feed-In-Tariff Power Procurement Program for Small Generators  4.1.8.1 Support Utility Scale Solar Energy Development

EQUITY IMPACTS
Not applicable.

FINANCIAL IMPACT
To be discussed in the Board presentation.

STAFF RECOMMENDATION
None. Information only.
11 Update on Power Procurement &
Market Challenges
Presentation to RCEA Board of Directors
May 26, 2022
Overview
• Project Development, Regulatory and Policy Concerns
• Update on RCEA Projects
• Options for Mitigation
Project Development Concerns
• Global Issues
• Supply chain disruptions
• Inflationary pressure
• Oil & shipping costs
• Energy Specific Issues
• U.S. Dept. of Commerce
probe into solar panel
manufacturing
• COVID closures at solar &
storage manufacturing
facilities
• California interconnection,
transmission, and permitting
delays
Current National Solar
Module Supply Status
(source: SEIA)
https://www.leveltenenergy.com/post/q1-2022-ppa-prices-north-America https://platform.platts.spglobal.com/web/client?auth=inherit#platts/insightsArticle?articleID=fe132595-ca09-4de6-baf2-f9ba327aac8a Regulatory & Policy Concerns
• Regulatory requirements
for new resources driving
seller’s market
• RPS Compliance needs,
particularly for long-term
resources
• Mid-Term Reliability
Procurement needs for firm
capacity (primarily storage)
• Corporate sustainability
goals
• Concerns previously
highlighted creating
feeding frenzy on buyer’s
side
Sandrini Sol 1
• Contract amendment
under negotiation
• Price increase less than
10%
• Delayed commercial
operation date (COD) to
late 2023
Feed-in Tariff Projects
Project Construction
start
Commercial
operation
Hatchery
Road A-D Q2 2023 Q3 2023
North Coast
Highway Solar
1 & 2
Q4 2022 Q1 2023
Shortlisted Mid-Term Reliability Projects

1. Fairhaven Energy Storage (right)

2. Foster Clean Power Solar (below)

3. North River Clean Power Solar
18 These projects were originally offered
with online dates in time for 2023
compliance; all are now facing delays
Options for Mitigation
Issue Need Strategies
Incremental Capacity
(2019 mandate)
Need to procure additional
capacity (<5 MW by 2023)
- Bilateral procurement from other load
serving entities
- Backstop procurement by PG&E
Mid-Term Reliability
Capacity
(2021 mandate)
Need to procure additional
capacity (5 MW by 2023, 8 MW
by 2025)
- 2022 Solicitation
Long-Term Renewable
Portfolio Standard Energy
Small buffer needed if Sandrini
comes online by 10/31/23;
significant procurement needed
if further delay/termination
- PG&E Voluntary Allocation & Market
Offer (VAMO)
- 10-year bundled or unbundled
Renewable Energy Certificate contract
- New RPS Solicitation
Short-Term Renewable
Portfolio Standard Energy Need to procure 2022 energy
but supply is tight
- TEA actively searching on the market
- PG&E Voluntary Allocation & Market
Offer (VAMO)

STAFF REPORT
Agenda Item # 6.1
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY: Jocelyn Gwynn, Senior Power Resources Manager SUBJECT: Memorandum of Understanding with Sonoma Clean Power for North Coast Renewables Development Collaboration

BACKGROUND
RCEA and its neighboring Community Choice Aggregator to the south, Sonoma Clean Power Authority (SCPA), share common interests in promoting the development of large-scale, transformative renewable energy resources in the Northern California region. While RCEA pursues community-driven development of offshore wind (OSW) power infrastructure in Humboldt County, SCPA is only a few steps behind us with respect to geothermal resources in their service territory of Sonoma and Mendocino Counties. SCPA has proposed establishing a Geothermal Opportunity Zone (GeoZone) within that area and is currently evaluating responses to their Request for Information1 seeking partnerships with private entities, similar to RCEA’s 2018 Request for Qualifications that resulted in our OSW public-private partnership. In addition, several of the transmission routes that are contemplated for delivery of OSW power to the grid at scale pass through SCPA’s GeoZone, creating an opportunity for shared advocacy on transmission planning.

SUMMARY
Staff seek Board approval to enter into the attached memorandum of understanding (MOU) with SCPA so that the two parties may work together in a more structured fashion on the following main areas of cooperation:
 Sharing best practices around public-private partnerships  Regulatory engagement and advocacy on transmission issues  Exploring common-interest funding opportunities
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The MOU with SCPA supports RCEA’s strategic OSW efforts by increasing collaboration and improving efficiency of work RCEA is already doing in pursuit of the following goals. 1 https://sonomacleanpower.org/uploads/documents/SCP-Geothermal-Opportunity-Zone-RFI.pdf 12

 1.1.2 Support Proactive Energy-Related Business Development  1.1.3 Support Energy-Sector Workforce Development
 4.1.5 Ensure Diversity in Local Sources
 4.1.9.1 Develop Offshore Wind Energy
 4.4.2 Support Upgrade of the Electricity Transmission and Distribution System

EQUITY IMPACTS
Not applicable.

FINANCIAL IMPACT
None.

STAFF RECOMMENDATION
Authorize the Executive Director to enter into the Memorandum of Understanding Between Redwood Coast Energy Authority and Sonoma Clean Power Authority to Collaborate on Enabling Transformative Renewable Energy Development Along the Northern California Coast.

ATTACHMENTS
Memorandum of Understanding Between RCEA and SCPA
13 1

MEMORANDUM OF UNDERSTANDING BETWEEN

REDWOOD COAST ENERGY AUTHORITY
AND

SONOMA CLEAN POWER AUTHORITY

TO COLLABORATE ON ENABLING TRANSFORMATIVE RENEWABLE ENERGY

DEVELOPMENT ALONG THE NORTHERN CALIFORNIA COAST
This Memorandum of Understanding (MOU) is entered into on the date of the last party signing below by and among Redwood Coast Energy Authority (“RCEA”) and Sonoma Clean Power Authority (“SCPA”), each individually a “Party” and collectively the “Parties”.

1. The Parties:
a. RCEA is a California Joint Powers Authority and Community Choice Aggregator serving Humboldt County, whose members include the County of Humboldt, the Cities of Arcata, Blue Lake, Eureka, Ferndale, Fortuna, Rio Dell, and Trinidad, and the Humboldt Bay Municipal Water District.
b. SCPA is a California Joint Powers Authority and Community Choice Aggregator serving Sonoma and Mendocino Counties, whose members include the Counties of Sonoma and Mendocino, the Cities of Cloverdale, Petaluma, Rohnert Park, Sonoma, Cotati, Fort Bragg, Point Arena, Willits, Santa Rosa and Sebastopol, and the Town of Windsor.

2. Background:
a. RCEA and SCPA share a common objective of reducing greenhouse emissions by minimizing the dependency on natural gas resources for electricity generation.

Offshore wind and geothermal power are two technologies that are scalable and offer the opportunity to provide intra-seasonal and around-the-clock power that can effectively replace the flexibility and reliability of natural gas. b. RCEA seeks to support the development of floating offshore wind energy projects adjacent to its service territory for purposes of pursing its goal of 100% local, renewable energy, and to that end has partnered with private entities to develop, operate and manage an offshore wind facility. The Bureau of Ocean Energy Management has designated an area off the coast of RCEA’s service territory as the Humboldt Offshore Wind Energy Area (“WEA”) and plans to auction lease blocks within the area.
c. RCEA’s RePower Humboldt Strategic Plan directs building the clean energy sector into a cornerstone of the local economy through a breadth of strategies that include innovation, research and development, local energy-related business development, and establishing Humboldt Bay as the primary west coast hub for the offshore wind energy industry.
14 2
d. SCPA seeks to support the longevity and growth of geothermal energy projects within and adjacent to its service territory and to that end has proposed creation of a Geothermal Opportunity Zone within Sonoma and Mendocino Counties. Through the Geothermal Opportunity Zone, SCPA will partner with private entities to proactively address development barriers and build new local geothermal capacity. e. The Parties are subject to the State of California’s Renewable Portfolio Standards program and Integrated Resource Planning procurement orders, which mandate an increase in energy and capacity procurement from renewable energy resources pursuant to the State’s decarbonization and reliability targets. f. Significant transmission upgrades will be necessary to deliver power at scale to the grid from both the Humboldt Offshore WEA and the Geothermal Opportunity Zone.

Some of the transmission corridors that could deliver energy from the Humboldt Offshore WEA to the grid pass through the proposed Geothermal Opportunity Zone.

The Parties wish to collaborate in advancing the development of potential transmission corridor upgrades that could mutually benefit the Parties and their respective development of the Humboldt Offshore WEA and Geothermal Opportunity Zone.
g. The Humboldt Offshore WEA and Geothermal Opportunity Zone are both transformative renewable energy projects with extensive lead times for development and construction. Local, state, and federal policy on permitting, tax incentives, grant funding, transmission, energy markets, and compliance issues can create barriers or opportunities for both projects.

3. Purpose:

The purpose of this MOU is to collaborate on opportunities to enable transformative renewable energy projects like the Humboldt Offshore WEA and Geothermal Opportunity Zone in our region. Collaboration can include advocacy for upgrades to the Parties’ shared grid interconnection transmission corridors, mitigation of policy barriers for renewable energy project development, and the sharing of experience and information on partnerships and agreements for the mutual benefit of the Parties’ region. Transmission upgrades and improved policy would allow for the eventual development of large-scale renewable energy projects in each Party’s respective jurisdiction, and further each Party’s individual power procurement and economic development goals as well as grid decarbonization and reliability goals of the State of California.

4. Anticipated Areas of Cooperation:

The anticipated areas of cooperation under this MOU are the following:
a. To share non-confidential information on best practices and local Tribal and community engagement related to working with private entities in public-private partnerships; 15 3
b. To understand, collaborate and engage with regulatory authorities and transmission operators on relevant transmission-related issues;
c. To explore grant or public funding opportunities that are consistent with the purpose of this MOU;
d. To develop communication strategies for engaging local and state agencies and elected officials in order to advance the purpose of this MOU; and e. To timely communicate with the other Party about relevant developments that could affect or impact the purpose of this MOU.

5. Term:

This MOU will commence upon its execution by both Parties and will terminate upon notice from one Party to the other of its desire to so terminate the MOU. The date of such termination shall be as stated in said notice.

6. Amendment:

RCEA and SCP expect the areas of cooperation to evolve and grow as the Humboldt Offshore WEA and Geothermal Opportunity Zone projects progress. If necessary, Parties may amend this agreement through a written amendment to this MOU.

7. Indemnity:

Each of the Parties to this MOU is a public entity. Pursuant to Government Code Section 895.4, each Party shall indemnify, defend and hold each of the other Parties, and their respective officers, agents and employees harmless from and against any liability and expenses, including defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of property, any legal fees and any claims for damages attributable only to performance of the responsibilities as set forth in this MOU by the indemnifying party or its officers, agents, employees, contractors and subcontractors under this MOU, except to the extent caused by the negligence or willful misconduct of an indemnified party.

8. No Joint-Venture:

This MOU does not establish a joint venture, partnership, or business unit of any kind between the Parties, nor does it necessarily create a financial obligation on behalf of any Party.

Moreover, this MOU does not obligate or commit either Party to any project within the Humboldt Offshore WEA or Geothermal Opportunity Zone.

IN WITNESS WHEREOF, each Party has caused this MOU to be duly signed and delivered, effective as of the date of the last Party signing.
16 4
REDWOOD COAST ENERGY AUTHORITY:

Date:

Eileen Verbeck, Acting Executive Director
SONOMA CLEAN POWER AUTHORITY:

Date:

Geof Syphers, Chief Executive Officer
17

STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY: Meredith Matthews, Administrative Specialist Lori Taketa, Clerk of the Board
SUBJECT: Board and CAC Meeting Method Options

BACKGROUND
On September 16, 2021, Governor Newsom signed AB 361 authorizing Brown Act revisions which allowed legislative bodies to meet virtually provided there is a state of emergency, and either 1) state or local officials have imposed or recommended measures to promote social distancing, or 2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees. This body and its subcommittees, and the Community Advisory Committee and its subcommittees, continued to meet virtually since September 2021, as they had been since the beginning of the pandemic, in accordance with these revised Brown Act provisions.

SUMMARY
Local COVID infection rates fluctuate, with a recent rise in cases causing the Centers for Disease Control and Prevention to move Humboldt County from an area of “low” transmissibility to “medium.” Masking continues to be strongly recommended in indoor public settings and businesses. Social distancing when indoors in public spaces is also routinely cited as a method to help the community weather COVID surges. Staff recommends following social distancing and masking recommendations for RCEA’s public meetings which typically last more than an hour.

Many Humboldt County legislative bodies have returned to in-person and hybrid meetings.

Humboldt Bay Municipal Water District, which previously hosted RCEA Board meetings, follows OSHA guidelines and can accommodate a total of 15 people with social distancing in their Board room. Because of the size of RCEA’s Board and Community Advisory Committee, nine and 15 members, respectively, and Counsel’s advice not to limit the number of public meeting attendees, staff is researching other meeting spaces. Venues with adequate space for social distancing that are available during meeting times will be identified between McKinleyville and Fortuna.

If the Board would like its members, staff and the public to be able to attend either in-person, by phone or online (hybrid meetings) without making each remotely participating director’s meeting 18

location publicly accessible, the Board would continue to adopt AB 361 resolutions. Purchase of portable hybrid meeting equipment may also be necessary if a meeting venue is not already hybrid meeting ready. Staff will report on available options at this meeting.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
N/A – Operations.

EQUITY IMPACTS
N/A. Staff recommends taking measures to reduce health risks to vulnerable populations.

FINANCIAL IMPACT
Annual teleconferencing subscription costs have been included in the Fiscal Year 2022-23 budget. Portable hybrid equipment purchase and venue rental costs have not been included in the coming fiscal year’s budget.

STAFF RECOMMENDATION
Extend Resolution No. 2022-4 Ratifying Governor Newsom’s March 4, 2020, State of Emergency Proclamation and Authorizing Remote Teleconference Meetings of RCEA’s Legislative Bodies, for the period May 28, 2022, through June 26, 2022, pursuant to Brown Act revisions of AB 361, and
Direct staff to:

1. Make arrangements for socially-distanced, in-person RCEA public meetings beginning July 2022,

2. Make arrangements for hybrid, socially-distanced, in-person public meetings beginning July 2022, or

3. Continue conducting RCEA public meetings virtually until the Governor rescinds the COVID-19 public health state of emergency.

ATTACHMENTS

1. Resolution No. 2022-4 Ratifying Governor Newsom’s March 4, 2020, State of Emergency Proclamation and Authorizing Remote Teleconference Meetings of RCEA’s Legislative Bodies, for the period April 28, 2022, through May 27, 2022, pursuant to Brown Act revisions of AB 361.
19

RESOLUTION NO. 2022-4

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE REDWOOD COAST ENERGY AUTHORITY

RATIFYING THE PROCLAMATION OF A STATE OF EMERGENCY
BY GOVERNOR GAVIN NEWSOM ON MARCH 4, 2020,

AND AUTHORIZING REMOTE TELECONFERENCE MEETINGS

OF THE LEGISLATIVE BODIES OF REDWOOD COAST ENERGY AUTHORITY FOR THE PERIOD APRIL 28, 2022, THROUGH MAY 27, 2022,

PURSUANT TO BROWN ACT PROVISIONS
WHEREAS, the Redwood Coast Energy Authority (RCEA) is committed to preserving and nurturing public access and participation in meetings of the Board of Directors; and WHEREAS, all meetings of RCEA’s legislative bodies are open and public, as required by the Ralph M.

Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch RCEA’s legislative bodies conduct their business; and WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, a proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within RCEA’s boundaries, caused by natural, technological, or human-caused disasters; and WHEREAS, it is further required that state or local officials have imposed or recommended measures to promote social distancing, or, the legislative body has determined that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in Humboldt County, specifically, Governor Newsom’s Proclamation of a State of Emergency of March 4, 2020, remains in effect; and WHEREAS, the Humboldt County Department of Health and Human Services recommends practicing physical distancing at meetings of legislative bodies; and WHEREAS, COVID-19 public health emergency and increased risk of infection has caused, and will continue to cause, conditions of peril to the safety of persons within Humboldt County that are likely to be beyond the control of services, personnel, equipment, and facilities of RCEA, and desires to ratify the proclamation of state of emergency by the Governor of the State of California; and WHEREAS, as a consequence of the emergency, the Board of Directors does hereby find that the legislative bodies of RCEA shall conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and DocuSign Envelope ID: 29B782F5-C6D2-4B06-B375-55B358468EAD 20

WHEREAS, public access and participation in meetings of RCEA’s legislative bodies shall be provided via online video conferencing software which shall also allow for public participation and real-time public comment opportunity by telephone.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF REDWOOD COAST ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Ratification of Governor’s Proclamation of a State of Emergency. The Board hereby ratifies the Governor of the State of California’s Proclamation of State of Emergency, effective as of its issuance date of March 4, 2020.

Section 3. Remote Teleconference Meetings. The staff and legislative bodies of Redwood Coast Energy Authority, including but not limited to the Board of Directors and its subcommittees, and the Community Advisory Committee and its subcommittees, are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

Section 4. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective for 30 days or until this Resolution is extended by a majority vote of the Board of Directors in accordance with Section 6 of this Resolution.

Section 5. Extension by Motion. The Board of Directors may extend the application of this Resolution by motion and majority vote by up to 30 days at a time, provided that it makes all necessary findings consistent with and pursuant to the requirements of Section 54953(e)(3).

Adopted this 28th day of April 2022.

ATTEST:

Stephen Avis, RCEA Board Chair Lori Taketa, Clerk of the Board Date: _________________________ Date: ________________________ DocuSign Envelope ID: 29B782F5-C6D2-4B06-B375-55B358468EAD 5/2/2022 5/2/2022
21

CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution 2022-4 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the 28th day of April 2022, by the following vote:

AYES: Avis, Bauer, Bohn, Curran, Grover, Losey, Schaefer, Wilson, Woo.

NOES: None.

ABSENT: None.

ABSTENTIONS: None.

Clerk of the Board, Redwood Coast Energy Authority
DocuSign Envelope ID: 29B782F5-C6D2-4B06-B375-55B358468EAD 22 • Surveyed 18 meeting spaces between McKinleyville and Fortuna. • Presenting spaces that are available for scheduled Board and CAC meetings.

Venues with asterisk (*) are unavailable for one meeting.

Venue Capacity with Social
Distancing Hybrid Capable Cost
City of Fortuna - Monday
Club* 40-45 No $40/hour
McKinleyville CSD - Azalea
Hall* 75 No $50/hour + $50
projector rental
Jefferson Center 1000 B
Street Eureka 75 Yes $75/hour
Humboldt Bay Municipal
Water District - Eureka 15 Yes None
Veterans Memorial Building
- Eureka 75 No $75/meeting
Sequoia Conference Center
- Eureka* 60 Yes $300/meeting

STAFF REPORT
Agenda Item # 7.2
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY: Aisha Cissna, Regulatory and Legislative Policy Manager SUBJECT: Net Energy Metering Successor Tariff Update

BACKGROUND
Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity (typically from a rooftop solar energy system) to use that electricity anytime, instead of when it is generated.

In August 2020, the California Public Utilities Commission (CPUC) initiated a proceeding to develop a successor Net Energy Metering (NEM) tariff pursuant to the requirements of Assembly Bill 327 passed in 2013.

On December 13, 2021, the CPUC issued a Proposed Decision explaining the proposed, new tariff provisions. If this Proposed Decision had passed as written, the current NEM 2.0 tariff would have expired in the spring of 2022.

On January 27, 2022, the RCEA Board of Directors received a staff report summarizing the Proposed Decision, CCA advocacy, and potential next steps for potential RCEA advocacy.

Following the staff report, the Board of Directors voted to establish an ad hoc subcommittee to work with staff to study the complex proposed changes from the perspective of RCEA customers and report back to the Board. Chair Stephen Avis and then Director Mike Wilson volunteered to participate. Since then, Director Wilson resigned from his position on the Board and a replacement for his seat on the ad hoc NEM subcommittee has not yet stepped forward.

On February 3, 2022, the CPUC requested additional time to analyze the record and consider revisions to the proposed decision based on party comments, effectively putting the decision on hold.

SUMMARY

On May 9, 2022, the CPUC issued a Ruling asking for comments on three specific portions of the previously issued Proposed Decision: the glide path approach, non-bypassable charges, and community distributed energy resources.

The glide path approach describes the process by which the current NEM 2.0 tariff export compensation rate will transition to the successor tariff compensation rate. Under NEM 2.0, customers are compensated for their exports based on the retail value of that electricity. Under the successor tariff proposed decision, customers would be compensated for their exports based on the “avoided cost.” The “avoided cost” is a value calculated through the CPUC’s “Avoided Cost Calculator” (ACC) which, in theory, calculates the costs that the electric grid is able to avoid through the deployment of various energy technologies (e.g., energy efficiency, distributed energy resources, etc.). The avoided cost rate changes on an hourly basis 23

depending on the value that energy provides the grid. The ACC value compensates NEM customers at a lower value than the NEM 2.0 tariff currently provides.

The Proposed Decision had proposed a “Market Transition Credit” (MTC) to ease the transition from the old export compensation rate to the new ACC export compensation rate. The MTC is essentially a blanket payment to customers that amounts to $10-$26/month and steps down over time. The May 2022 Ruling introduces the “ACC Plus Adder” approach. With this approach, a fixed cents/kWh export adder would be layered on top of the ACC-based hourly export credits.

The export adder would step down gradually over time to reach the base ACC value.

The second topic for which the CPUC seeks party comments is related to non-bypassable charges (NBCs). NBCs are fees that customers pay on every kilowatt-hour of electricity that they consume from the grid. These charges are be used to fund things like wildfire mitigation, energy assistance programs for low-income households, energy efficiency programs, and nuclear decommissioning. Primarily, the Ruling asks whether NBCs on gross consumption should be collected from successor tariff customers, whether NBCs should only be collected from a subset of successor tariff customers, and which electric program and securitization charges should be considered as NBCs.

The third topic for which the CPUC seeks party comments is community distributed energy resources. The Ruling invites parties to comment on whether low-income customers and/or renters would benefit from a community solar tariff program modeled on the successor tariff structure, compared to the existing Community Solar Green Tariff program. The Ruling also seeks party input on whether the Commission should adopt a policy that any community solar program or tariff guarantee a certain level of bill savings to increase participation.

Previous CCA advocacy focused on the following themes:
 The Grid Participation Charge is discriminatory and should not be adopted.  As a matter of fairness and equity among all customers who consume energy from the grid, customers with customer-sited distributed generation should pay the same set of non-bypassable charges as any other customer for their net consumption.  The export compensation rate as proposed by the CPUC goes too far, too quickly. A rate based on existing electrification rates with a gradual step-down will help ensure there is not a sharp falloff in installations, that our State meets its renewable energy and climate goals and will reduce cost shift.
 There are modest fixed charges associated with existing electrification rates. Low-income customers should be exempt from these fixed charges.

Note that this Ruling is not reopening other aspects of the Proposed Decision (for example, the Grid Participation Charge) for consideration and party input.

Opening Comments on the Ruling are due on June 6, 2022, and Reply Comments are due on June 24, 2022. It is possible that a new proposed decision could be issued as early as July 2022.

RCEA remains engaged in this proceeding and will likely file joint comments with a small group of other CCAs.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Under section 4.3 “Rates and Tariffs,” RCEA sets a goal to “Provide a net energy metering program that encourages more distributed local generation and more equitably compensates such generation.” Changes to the NEM tariff could impact RCEA’s compensation structure. 24

Under the “Provide Education on all Electric Rate Schedule Options”, RCEA sets a goal to “Provide information on all available rate schedules including Net Energy Metering...” Tracking NEM successor tariff developments is important to providing customers with up-to-date information on the NEM rate schedule.

EQUITY IMPACTS
This Ruling posits several considerations regarding the applicability of the glide path, non-bypassable charges, and community solar programs respective to low-income versus non-low-income customers. Some key considerations include whether low-income customers should be subject to lower export compensation rates, if they should pay a different set of non-bypassable charges, and whether a new community solar tariff program should be developed for low-income customers.

RECOMMENDED ACTION
Discuss, and potentially direct, RCEA action on next steps regarding advocacy in forthcoming NEM successor tariff policy development.

Discuss, and potentially solicit new volunteers for the RCEA Board Ad Hoc Net Energy Metering Subcommittee.

ATTACHMENTS
None. A presentation will be made at the May 2022 Board meeting. 25 Net Energy Metering
Successor Tariff Update
RCEA Board of Directors Meeting
May 26, 2022
29 Topics
• Procedural timeline
• Refresh: successor tariff PD and advocacy
• Ruling summary
• Recommended actions
30 31
Possible
revised
proposed
decision
July
2022
CPUC
issued
Ruling to
re-examine
glide path,
non-bypassable
charges,
and
community
DERs
subtariff
May
2022
CPUC
adopted a
proposed
decision on
successor
NEM tariff
December 2021
Parties
submitted
successor
tariff
proposals
March 2021
CPUC
initiated a
regulatory
proceeding
to establish
a successor
net energy
metering
tariff
August 2020
Refresh: December Proposed Decision
Export Compensation
Rate
Base compensation rate
for rooftop solar exports
on the “Avoided Cost
Calculator”rate instead
of the retail rate
32 Refresh: December Proposed Decision
33 Market Transition Credit
Customer Type MTC Amount Approximate Total
PG&E Low-Income $4.36/kW/month
for 10 years
~$26/month
PG&E Non-Low-Income$1.62/kW/month
for 10 years
~$10/month
Refresh: December Proposed Decision
34 • Grid Participation Charge: $48/month (PG&E res; 6kW system) • Those temporarily billed on NEM 2.0 won’t pay Grid Participation Charge until the successor tariff is fully operationalized
35 • Low-income subtariff
• Equity fund for distributed solar
• 15-year legacy period
Refresh: December Proposed Decision
Refresh: Previous CCA Advocacy
36 • Keep 20-year legacy period for current NEM customers* • Eliminate Grid Participation Charge (average of $48/month) • NEM customers should pay the same set of NBCs as any
other customer
• Export compensation rate decrease goes too far, too quickly • A rate based on existing electrification rates with a gradual step-down will prevent a sharp falloff in installations and ensure renewable energy goals are met
NEM Ruling
• Glide path approach
• Non-bypassable charges on gross consumption
• Community distributed energy resources
37 NEM Ruling: Glide Path Approach
38 • MTC
• $26/month for low-income customers
• $10/month for non-low-income customers
• “ACC Plus Adder” would
replace MTC
• Fixed cents/kWh export
adder on top of the ACC-based hourly export
values
• Steps down over time to
ACC value
• Considers collecting non-bypassable charges based on gross consumption
• If NBCs are collected, which charges should be levied? • If additional charges are developed in other proceedings in the future, how should the CPUC determine if those new charges should be applied to successor tariff customers?
39 NEM Ruling: Non-bypassable Charges
Public Purpose Programs* Reliability Services
Dept. of Water Resources Charge/Wildfire Fund* Public Utilities Commission Reimbursement Fee
Competition Transition Charge* Energy Cost Recovery Account Nuclear Decommissioning* Wildfire Hardening
New System Generation Local Generation
40 NEM Ruling: Community DERs/Solar
• The Commission offers a community solar program for LI- customers living in DACs through the Community Solar Green Tariff (CSGT) program
• Would LI-customers and/or renters benefit from a community solar tariff program modeled on the tariff structure compared to the CSGT program?
• Should the Commission adopt a policy that any community solar tariff/program guarantee bill savings to increase participation and ensure consumer protections?
Ruling Milestones
Milestone Date
Ruling issued asking for party comment May 9
Opening comments June 10
Reply comments* June 24
41 Recommended Action
• Discuss, and potentially solicit new volunteers for the RCEA Board Ad Hoc Net Energy Metering Subcommittee.
• Discuss, and potentially direct, RCEA action on next steps regarding advocacy in forthcoming NEM successor tariff policy development.* 42 Thank You
43

STAFF REPORT
Agenda Item # 8.1
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
SUBJECT: Creation of Infrastructure Program Manager Position, Addition of a Power Resources Specialist Position, Addition of an Intake Coordinator Position and Updates to RCEA’s Organization Chart

SUMMARY
Currently, RCEA’s Department of Infrastructure Planning and Operations is responsible for transportation-related activities, microgrid development, and resiliency topics related to microgrids and energy storage. This department currently consists of a director and a specialist. Historically, this staffing could adequately support transportation initiatives with occasional support from part-time or limited-term employees. However, recent growth encourages a reevaluation and expansion of our existing staffing. Below is a list of recent changes behind this proposal to create an Infrastructure Program Manager position:
• Recent legislation has allocated millions of state and federal dollars to transform our transportation system away from fossil fuels, with opportunities starting in 2022. We need staff to apply for and manage these grant funds.
• Inter-agency coordination is accelerating particularly with other CCAs, with working groups on topics such as demand response; regulation, rates and infrastructure for vehicle electrification; and low-carbon fuel standard funding.
• Grid stability is becoming a leading concern as public safety power shutoff events and climate disruptions stress dated electrical infrastructure. Changes in the resiliency space are accelerating and require more focused attention from senior staff. • RCEA’s ownership and operation of the microgrid requires dedicated staff time. • The existing specialist role requires more time to tactically support our growing regional electric vehicle (EV) charging network and local community interest in EVs, as well as an opportunity to support other infrastructure projects, which results in less time to evaluate additional funding opportunities.
• Transportation electrification and resiliency both require heightened knowledge of grid infrastructure capabilities and evolution.

In recent years our Regulatory and Legislative Policy Manager and Demand-Side Management and Finance Departments have provided short-term support to the transportation team, but the frequency and scope of ongoing needs are better served through a dedicated position. Transportation electrification and resiliency are also merging as vehicles become a potential extension of the electric grid, particularly regarding energy storage and load shifting, and open new methods to store and deliver energy within communities.
26

Adding a manager to the Infrastructure Planning and Operations team will build dedicated capacity to develop and support infrastructure programs that span both transportation and resiliency, allow the existing specialist to focus on role-appropriate tasks, and allow the director to ramp up resiliency initiatives. The manager will build staff capacity as infrastructure initiatives rapidly expand in the next 2-3 years and require additional hiring and oversight. Hiring a manager now will allow them to become familiar with RCEA goals, gain an overview on existing programs and emerging funding sources, define mid-level strategies, and grow a team as transportation electrification and resiliency become a major focus for RCEA. The manager role also builds institutional capacity to support future leadership changes and growth.

Along with the creation of the Infrastructure Program Manager position, the following additional staffing adjustments are proposed:

1. Addition of a full-time Demand-Side Management (DSM) Intake Coordinator position. Staff is also recommending a revision of the existing Assistant/Coordinator/Associate job description to further clarify the distinction between limited-term and permanent positions.

Currently RCEA’s DSM Intake Coordinator has been classified as a limited-term coordinator position. This role has evolved to require a significant investment in training and proficiency in multiple tools and access to confidential RCEA customer data. The DSM Intake Coordinator is responsible for communicating directly with customers, looking up their account information in multiple data tools, entering that information into DSM’s PowerPath database, and assigning the customer to a technician to provide energy services. In addition, the DSM Intake Coordinator has provided support duties including scheduling DSM team meetings and participating in outreach activities. When a limited-term intake coordinator leaves, either for their own career advancement or because their term has completed, training of a new intake coordinator requires extensive training, usually performed by the Senior Program Manager.

Staff is proposing addition of a full-time intake coordinator to reduce the loss of job knowledge by utilizing limited-term employees for this position.

2. Addition of a second, full-time Power Resources Specialist position reporting to the Director of Power Resources. The Community Choice Energy Department currently consists of a Director, Power Resources Manager, Account Services Manager, one Power Resources Specialist, and additional part-time or limited term employees as needed. Staff recommends adding a second full-time Power Resources Specialist to assist the department with an ever-increasing workload. Below is a list of changes in recent years that have led to the need for additional staffing:
• RCEA’s portfolio of contracts has increased in size and complexity and new contracts and amendments are added annually.
• Contracted projects that have been in development are approaching construction and operation, requiring increased oversight and engagement from RCEA staff. • Recurring procurement mandates from the CA Public Utilities Commission require timely execution of contracts for new capacity with stringent deadlines and penalties. • Additional compliance filings are imposed by regulatory agencies every year as the state’s renewable, reliability and resource planning programs mature and are restructured.
• Rising retail electricity costs and increased customer offerings are causing increased customer service calls and data analysis requests.
• RCEA initiated its first late-payment noticing and debt collections, necessitated by the uptick in late payments during the COVID-19 moratorium on power shutoffs. 27

• New transportation and DSM programs will drive changes in electric load and procurement planning.
• A new Demand Response Program must be planned and implemented in 2023.

A draft job description for the Infrastructure Programs Manager position and revisions to the existing Assistant/Coordinator/Associate job description are attached, along with a proposed update to the RCEA organization chart.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
All RCEA employees are tasked with working to advance the Strategic Plan. Below is a table of key strategic plan areas by position:

Position Strategy 1 –
Regional Energy
Planning &
Coordination
Strategy 2 –
Integrated
Demand Side
Management
Strategy 3 –
Low-carbon
Transportation
Strategy 4 –
Energy
Generation &
Utility Services
Infrastructure
Programs
Manager
X X
Intake
Coordinator X X
Power
Resources
Specialist
X X

EQUITY IMPACTS
Transportation is a major expense for lower-income community members and dedication of resources to define and pursue equitable transportation programs is warranted. Low- and underserved communities, particularly when geographically isolated, are also disproportionately impacted by grid instability. A manager-level position will have deeper experience and strategic awareness to seek and apply for funds that benefit underserved population segments, particularly for new technologies that are often only accessible to affluent community sectors. Underserved markets also require senior staff to assess existing market offerings and adapt or create new program designs to fit the needs of hard-to-reach communities.

The addition of the Intake Coordinator and Power Resources Specialist positions should result in increased availability of services to a wide segment of Humboldt County’s communities through ongoing implementation of RCEA’s Community Choice Energy and Demand Side Management programs.

FINANCIAL IMPACTS
The full cost associated with creating the Infrastructure Programs Manager position will increase RCEA’s annual personnel budget by around $110,000 per year. The addition of a Power Resources Specialist and Intake Coordinator positions will increase the budget by about $150,000 per year. 28

These proposed changes have been included in the preliminary draft FY 22-23 budget to be presented at this meeting.

While not easily quantifiable, the proposed staffing changes are expected to improve the overall operational effectiveness and efficiency of RCEA, which is an investment that will likely result in improved performance and increased services and benefits provided to RCEA customers. Currently, we are awaiting approval of a $700,000 CEC Transportation Grant that if awarded will fund a portion of the Infrastructure Programs Manager position. This position will also allow RCEA to expand future grant pursuits as state and federal funding accelerate in the coming year. Overall, personnel costs remain a very small share of RCEA’s total budget, about 4.7%, compared to 20-40% for many JPAs and special districts.

RECOMMENDED ACTION
Approve:
1) Creation of an Infrastructure Programs Manager position, 2) Addition of a DSM Intake Coordinator position,
3) Addition of a Power Resources Specialist position,
4) Update to the RCEA Organization Chart, and
5) Revising the Assistant/Coordinator/Associate position to clarify the distinction between limited-term and permanent positions.

ATTATCHMENTS

1. Proposed changes to RCEA Organizational Chart

2. Proposed Infrastructure Programs Manager position description

3. Revised Assistant/Coordinator/Associate position description 29 *Executive Director may approve the hiring of part-time, intern and limited-term positions if they fit within the Board adopted total personnel budget.

Community of Humboldt County
RCEA Board
Independent
Auditors Executive
Director*
Manager
Community
Strategies
Coordinator
Customer Service
Director
Infrastructure Planning &
Operations
Manager
Infrastructure
Programs
Specialist
Advanced Fuels
& Transportation
Director
Business Planning
& Finance
Manager
Finance
Coordinator
Admin
Manager
Contracts and Grants
Director
Power
Resources
Manager
Power Resources
Manager
Account Services
Specialist
Power Resources
Specialist
Power Resources
Coordinator
Wholesale Power
Procurement
&
Scheduling
Director
Demand-Side Management
Manager
Direct Install, Energy
Efficiency, & Conservation
Technician
Energy
Efficiency
Technician
Energy
Efficiency
Technician
Energy
Efficiency
Coordinator
Intake
Manager
Demand Side
Projects
Manager
Demand Side
Projects
Technician
Energy
Efficiency
Specialist
Programs
Manager
Regulatory and
Legislative Policy
General Counsel
Deputy Executive
Director
Community
Advisory
Committee
Manager
Human Resources
& Workforce
Development
Specialist
Administration
Technician
Information
Technology
Specialist
Executive Support
Clerk of the Board
Draft RCEA Organization Chart
Board Approved February 24, 2022
30 Humboldt County • Arcata • Blue Lake • Eureka • Ferndale • Fortuna • Rio Dell • Trinidad • Humboldt Bay Municipal Water District

Manager/Senior Manager – Infrastructure Programs
General Class Description: Under general direction of a Director, a program or project Manager assists in planning, organizing, coordinating, and managing programs or activities of their associated department; provides professional assistance to staff; and performs related work as assigned. This class has lead responsibility for planning and implementation for one or more programs or functional areas. A Manager is responsible for accomplishing program goals and objectives and directs the day-to-day operations and activities of their designated program or functional area within a department. A Manager works with their Director to ensure consistent and efficient implementation of agency operational policies and long-term operational excellence. This position class is distinguished by complex and widely-scoped duties related to program and project management, subject-matter expertise, and may include supervisorial responsibility. This position exercises considerable discretion and independent judgment in the coordination and prioritization of duties and responsibilities assigned, and in acting on behalf of the department Director in their absence.

Summary
The Infrastructure Programs Manager works under general direction of the Director of Infrastructure Planning and Operations and has responsibility for a wide range of matters related to RCEA’s infrastructure programs. The Infrastructure Programs Manager plans and manages implementation of transportation electrification, resiliency, and related initiatives and projects. The Infrastructure Programs Manager also assists with continuous program improvements and develops and enhances the overall capital asset portfolio. The Infrastructure Programs Manager manages staff scheduling and workloads, manages budgets, and oversees implementation of projects and deliverables, and may supervise other Infrastructure program staff. The Infrastructure Programs Manager has knowledge of transportation electrification and resiliency technologies, local and state policy and goals, and intermediate to advanced project management and coordination skills.

Essential Functions and Responsibilities
Duties are illustrative and may vary. Other duties may be assigned. • Oversee the day-to-day functions of RCEA’s Infrastructure programs to achieve programmatic goals, provide high-quality service, and exemplify efficient and adaptive design. • In collaboration with the Director, assist with strategic planning and development of infrastructure programs consistent with RCEA’s mission.
• Serve as the lead technical staff person for infrastructure topics such as transportation electrification and resiliency.
• Perform and oversee routine program activities such as capital asset operations and performance, site selection, agreements and construction, project design and analysis, consultation with customers, tracking, and reporting.
• Assist Director to manage overall budget, schedule, and resources to achieve project deliverables within a dynamic program environment.
• Seek, apply for, and manage funding agreements such as state and federal grants. • Collaborate with local, state, and federal public and private stakeholders to achieve shared regional and industry goals, including standards, legislative, and regulatory initiatives. • Represent rural community concepts and interests in local and state working groups and forums. • Manage vendor, contractor, consultant, and third-party relationships. 31 Manager/Senior Manager – Infrastructure Programs

• Provide logistical and administrative oversight of program operations, including supervising staff, inventory management, controlling and monitoring expenditures, representing and enforcing RCEA policies and procedures, training, and identifying resource gaps and solutions. • Provide technical assistance to the public, deliver training, and represent RCEA at external events.

Minimum Qualifications
Experience/Education:
• Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:
• Education or experience equivalent to a bachelor’s degree or greater in transportation planning, energy management, engineering, environmental sciences, or a closely related field. • A minimum of 3 years of increasingly responsible project management experience, preferably energy, transportation, or public works project management. • Experience in supervisory responsibility, preferably for a staff delivering a variety of products and services for a diverse audience and using a range of program design, technologies, and supply and delivery channels.

Knowledge of:
• Clean transportation, resiliency, and distributed grid technologies. • Principles of usage, efficiency, and application of zero emission vehicles and distributed smart energy resources.
• Principles of capital asset management such as stakeholder engagement, business modeling, financing, construction, and operations.
• Local and state codes, policies, and goals for public works in general, as well as transportation electrification, resiliency, and decarbonization initiatives. • Principles of electric vehicle charging infrastructure, distributed generation resources, electric grid design and evolution.
• General legislative and regulatory framework for transportation, grid resiliency, and decarbonization.
• Principles and methods of program development, implementation, and project management.

Ability to:
• Work collaboratively with coworkers and third-party providers to identify and solve problems. • Prepare accurate, comprehensive, and timely reports and other deliverables as required. • Assist with program development and design, including needs assessments, proposal drafting, marketing tool preparation, program evaluation and reporting. • Learn, interpret, and apply policies, procedures, and regulations. Provide program-based guidance and interpretation for staff and the public.
• Assist with administration of project budgets, including control and monitoring of project-related expenditures.
• Establish and maintain effective relationships with diverse community stakeholders.

Communicate clearly and effectively with customers.
• Identify and solve problems effectively and expeditiously. • Direct, supervise and coordinate the work of assigned staff. • Manage multiple priorities, meet deadlines, and quickly adapt to changing priorities in a fast-paced dynamic environment. • Work well under pressure.
• Be thorough and detail-oriented.
• Demonstrate patience, tact, teamwork and commitment to superior service and performance. 32 Manager/Senior Manager – Infrastructure Programs

Working Conditions and Essential Requirements
The physical demands described here are representative of those required for the position. Position requires sitting, walking, standing, bending, and twisting in the performance of daily activities. The position requires hand manipulation and repetitive hand movement and fine coordination in using a computer keyboard and other office equipment. The position requires near and far vision in reading reports, use of a computer, and to perform testing and diagnostic tasks. Acute hearing is required in supporting meetings and providing phone and in-person customer service. Fine and gross motor control is required to set up and operate diagnostic and data collection equipment in a variety of settings. The position requires the ability to use ladders and hand tools and to physically work in construction settings.

The position occasionally requires lifting and/or moving bulky and/or heavy objects. RCEA will make reasonable accommodation of the known physical or mental limitations of a qualified applicant with a disability upon request. Possession and continued maintenance of a valid class C California driver’s license or the ability to provide alternate transportation and a safe driving record is required.

Preferred Qualifications
• Master’s degree in a related field.
• Knowledge of RCEA programs.
• Knowledge of CARB, CEC, and CPUC transportation and resiliency programs. • Prior experience managing sub-contractors.
• Prior experience working with public agencies.
• Experience working with organizations involved with projects and programs in the areas of environmental and economic development.
• Experience working in an entrepreneurial context.

THE REDWOOD COAST ENERGY AUTHORITY IS COMMITTED TO A DIVERSE WORKFORCE AND IS AN EQUAL OPPORTUNITY EMPLOYER. RCEA MAINTAINS AND PROMOTES A POLICY OF

NONDISCRIMINATION AND NONHARASSMENT ON THE BASIS OF RACE, RELIGION, COLOR, SEX,

AGE, HANDICAP, MARITIAL STATUS, SEXUAL ORIENTATION, AND NATIONAL ORIGIN OR GENETIC CHARACTERISTIC.
33 Humboldt County • Arcata • Blue Lake • Eureka • Ferndale • Fortuna • Rio Dell • Trinidad • Humboldt Bay Municipal Water District

Assistant / Coordinator / Associate
Class Description: Under the supervision of a Manager or Director, an Assistant, Coordinator or Associate supports RCEA staff by providing general or clerical duties related to one or more programmatic or administrative functions. The Assistant/Coordinator/Associate may be a permanent staff position or a limited-term/part-time role. Permanent staff positions serve essential operations and support roles for a specific department or RCEA as a whole. Limited-term/part-time Assistant, Coordinator, and Associate positions provide internship-style career development opportunities related to energy, public policy, and/or government administration for those new to these fields.

Summary
Under direct supervision, provides varied administrative and programmatic support for agency operations, including office administration, customer service, and energy programs, as assigned.

Essential Functions and Responsibilities
Duties are illustrative only and may vary. Other duties may be assigned. • Provide administrative support to staff and assist in general office management. • Provide office and field–based customer service assistance. • Perform office tasks such as answering phones, processing paper and electronic records, and entering data.

Minimum Qualifications
Experience/Education:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:
• Education or experience equal to an Associate’s degree in a related field, or two (2) years relevant work or educational experience, or any combination thereof.

Knowledge of:
• Basic office functions, such as operation of common office equipment, email and phone communications, scheduling, and document handling.
• Business software applications, including word processing, spreadsheets, email, calendars, and web browsers.
• Basic business terminology.
• Note taking, task management, and time management approaches and tools.

Ability to:
• Learn, understand, and effectively communicate information to coworkers, customers, and/or vendors.
• Promote and maintain a customer-centric approach to job duties. • Work effectively as part of a team.
• Handle multiple tasks simultaneously at a fast pace and within stringent time constraints. • Understand and apply office policies and procedures.
34 Assistant/ Coordinator/ Associate

• Exercise discretion and independent judgment when necessary.

Working Conditions and Essential Requirements
The physical demands described here are representative of those required for the position, which may include both office-based activities and field work. Position requires sitting, walking, standing, bending, and twisting in the performance of daily activities. The position requires hand manipulation and repetitive hand movement and fine coordination in using a computer keyboard and other office equipment. The position requires near and far vision in reading reports and use of a computer. Acute hearing is required in supporting meetings and providing phone and in-person customer service. Some placements may require fine and gross motor control to place and operate diagnostic and data collection equipment in a variety of settings.

Some placements may require the ability to use ladders and hand tools and to physically navigate building service spaces such as attics and crawlspaces or equivalent. The position occasionally requires lifting and/or moving objects. RCEA will make reasonable accommodation of the known physical or mental limitations of a qualified applicant with a disability upon request. Possession and continued maintenance of a valid class C California driver’s license or the ability to provide alternate transportation and a safe driving record is required.

Preferred Qualifications
• Bachelor’s degree in a related discipline from an accredited institution. • Knowledge of RCEA programs.
• Prior experience working with public agencies and/or public utilities. • Experience working with organizations involved with projects and programs in the areas of environmental and economic development.
• Experience working in an entrepreneurial context.

THE REDWOOD COAST ENERGY AUTHORITY IS COMMITTED TO A DIVERSE WORKFORCE AND IS AN EQUAL OPPORTUNITY EMPLOYER. RCEA MAINTAINS AND PROMOTES A POLICY OF

NONDISCRIMINATION AND NONHARASSMENT ON THE BASIS OF RACE, RELIGION, COLOR, SEX,

AGE, HANDICAP, MARITIAL STATUS, SEXUAL ORIENTATION, AND NATIONAL ORIGIN OR GENETIC CHARACTERISTIC.
35

STAFF REPORT
Agenda Item # 8.2
AGENDA DATE: May 26, 2022
TO: Board of Directors
PREPARED BY:

Eileen Verbeck, Deputy Executive Director
Lori Biondini, Director of Business Planning and Finance SUBJECT: Fiscal Year 2022-23 Preliminary Draft Budget

SUMMARY
Attached is a preliminary draft of the fiscal year 2022-2023 (FY22-23) annual budget for review.

This current fiscal year was marked by continuing effects of the COVID-19 pandemic and significant uncertainty around energy revenue, energy costs, and the ability to implement customer programs. This current fiscal year also marks the completion of RCEA’s major capital investment, the microgrid project. As a result, the presented budget contains conservative estimates of anticipated revenue.

BUDGET ASSUMPTIONS
Staff calculated power sales cost and revenue based on models provided by The Energy Authority dated April 30, 2022. Staff used the most conservative scenario of power sales cost and revenue, which assumes that there will be no PG&E rate changes in 2023 and that RCEA rates will remain 0.5% below corresponding PG&E rates.

REVENUES
• Government Agencies $1,101,031: Revenue in this category is this year’s share of the 3-year funding from the California Public Utilities Commission for energy efficiency programs anticipated to be about $877,031 (booked as it is expensed), and this year’s share of a 2-year grant from the California Energy Commission for medium and heavy duty zero-emission vehicle planning anticipated to be about $150,000 (reimbursed as it is expensed). Revenue in this category also includes funds from California’s Electric Vehicle Infrastructure Project (CALeVIP) which provides reimbursements for new electric vehicle charging equipment and revenue from RCEA’s Electric Vehicle Network (REVNet) for an anticipated total of $112,000.
• Non-government Agencies $489,124: Revenue in this category includes the remaining $182,802 of grant funds from Humboldt State University Sponsored Programs Foundation / Schatz Energy Research Center for construction of the Airport Microgrid, and this year’s share of funding from Pacific Gas & Electric Company’s Local Government Partnership Program for energy efficiency programs which is $246,634.

Additionally, RCEA expects to receive an estimated $59,688 in Tech Quick Start Grant funds from Southern California Edison for identifying and assisting customers looking to purchase and install electric heat pumps.
• Electricity Sales $93,848,684: This line item includes electricity sales revenue, excess power generated through RCEA’s power purchase agreements that is sold in the energy market, and the value of the energy produced by the Redwood Airport Microgrid.

Payments for excess energy generation by net-energy metering customers, estimated to be $250,000, is included in the total electricity sales line item, and $1,707,003 (2% of 36

projected electricity sales) is assumed to be uncollectable due to customer non-payment. This line item has a degree of uncertainty and represents a conservative forecast.

EXPENSES
• Wholesale Power Supply $76,236,276: Energy costs continue to be RCEA’s largest expense. Power costs for the fiscal year represent what has already been procured through RCEA’s previously approved hedging strategy and existing power purchase agreements.
• Professional and Program Services $2,820,516: This budget line item includes contracted services for energy scheduling coordination, energy procurement credit fees, data management, legal services, accounting services, regulatory services, as well as program-specific professional services, including database development and engineering calculations. Additionally, funds have been budgeted for ramping up coordination with RCEA’s offshore wind project partners and to support community outreach related to the upcoming offshore lease auction and ancillary community projects.
• Personnel $4,071,684: The proposed budget includes the addition of three full-time positions (Infrastructure Programs Manager, Intake Coordinator and Power Resources Specialist). The budget includes an increase in health insurance benefits estimated at 7% from the current fiscal year. Overall, the proposed budget has 16% increase from the current year’s budget. Staff are anticipating an expansion of projects and programs in the upcoming year including, the proposed Rural REN ($96 million over five years), CEC Transportation Grant ($700,000), and the release of additional state and federal transportation grant funds. The next fiscal year will require a fully staffed organization to implement upcoming projects and programs.

All positions listed in the Board-adopted organization chart are full-time, fully benefited positions. Non-benefited, part-time, limited-term and intern positions can be created and dissolved at the discretion of the Executive Director if they fit within the Board-adopted total personnel budget. The proposed personnel budget includes $291,564 in funds for part-time, limited-term and intern positions.
• Facilities and Operations $801,816: This budget line item is for operations costs such as information technology, office supplies and utilities, as well as costs associated with RCEA-owned or managed assets. The largest item in this budget are costs associated with operating the Airport Microgrid, increase in insurance costs (partly due to insuring the Airport Microgrid), upgrades to our IT infrastructure, and purchasing and maintaining a new financial software system. The draft budget does not currently include the planned purchase and/or renovation of a new office facility.
• Incentives and Rebates $477,823: This line item is for direct incentives and rebates paid out. This currently includes customer incentives funded through the RCEA-administered California Public Utilities Commission efficiency program and incentives approved as part of CCE-funded customer benefit programs. The following CCE-funded programs are included in the proposed budget: heat pump rebates, residential energy efficiency kits, mobile home solar program, grocery refrigeration program, electric vehicle rebates, electric vehicle charging station rebates and e-bike rebates.

SUMMARY OF RESERVES
In the current year FY21-22 RCEA experienced significant cashflow challenges that exhausted all cash reserves. Key causes of the cashflow constraints included:
37

• Extremely high energy prices in 2021;
• Customer rates that did not provide for full cost-recovery; • An inflated 2021 power charge indifference adjustment (PCIA) exit fee that did not reflect the rising market prices;
• Over $3.2 million in pandemic-era delinquent RCEA customer bill payments; • $4 million of RCEA’s cash reserves tied up in the security deposit for the 100MW Sandrini Solar project; and
• Around $3-4 million of RCEA’s reserves tied up at any given time in ongoing cashflow management due to the structural delay between payments for wholesale energy procurement versus when the associated retail revenue from energy sales is realized.

RCEA received a $2 million loan from the Blue Lake Rancheria and arranged the temporary sale of power purchase agreement assets to MCE for $4 million that enabled RCEA to continue to operate through the cashflow challenges.

The proposed FY22-23 budget includes repayment of the funds to Blue Lake Rancheria and cancelling the power sale to MCE. The projected net revenue for FY22-23 is $8 million. Staff recommends all projected net revenue be designated as cash reserves to replace the funds utilized in FY21-22.

The preliminary draft budget presented at the meeting has already been shared with the Board’s Finance Subcommittee. A tentative second meeting with the Finance Subcommittee will facilitate any further input in advance of the final draft presentation to the Board at the June meeting.

STAFF RECOMMENDATION
Provide guidance and input to staff on draft FY22-23 budget.

ATTACHMENTS

1. Preliminary Draft Fiscal Year 2022-23 RCEA Budget
38 Proposed Redwood Coast Energy Authority Fiscal Year 2022-2023 Budget Account
Core Power
Resources
Airport Solar
Microgrid
Redwood
Coast Offshore
Wind
TOTAL Power
Resources
Income
5 REVENUE EARNED
Total 5000 · Revenue - Government Agencies - - - -
Total 5100 · Revenue - Program-Related Sales - - - -
Total 5400 · Revenue-nongovernment agencies - 182,802 - 182,802 5500 · Revenue - Electricity Sales
5510 · Electricity Sales 85,350,127 - - 85,350,127
5550 · PPA Revenues 9,698,621 506,939 - 10,205,560
5580 · Uncollectable Accounts (1,707,003) - - (1,707,003) Total 5500 · Revenue - Electricity Sales 93,341,745 506,939 - 93,848,684 Total 5 REVENUE EARNED 93,341,745 689,741 - 94,031,486
Expense
Total 6 WHOLESALE POWER SUPPLY 72,160,478 75,798 - 72,236,276 Total 7 PERSONNEL EXPENSES 942,515 40,627 44,678 1,027,820 Total 8.1 FACILITIES AND OPERATIONS 69,080 183,302 100 252,482 Total 8.2 COMMUNICATIONS AND OUTREACH 72,750 1,000 80,000 153,750

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 180,000 - - 180,000
8410 · Contracts - Program Related Ser 20,000 - 100,000 120,000 8420 · Accounting - - - -
8430 · Legal 60,000 2,000 75,000 137,000
8450 · Wholesale Services - TEA 624,984 30,000 - 654,984 8460 · Procurement Credit - TEA 690,545 - - 690,545
8470 · Data Management - Calpine 737,532 - - 737,532
Total 8.4 PROFESSIONAL & PROGRAM SRVS 2,313,061 32,000 175,000 2,520,061 Total 8.5 PROGRAM EXPENSES 623,600 - - 623,600
Total 8.6 INCENTIVES & REBATES - - - -
Total 9 NON OPERATING COSTS 5,000 194,000 - 199,000
Total Expense 76,186,484 526,727 299,778 77,012,989
Net Income 17,155,261 163,014 (299,778) 17,018,497

COMMUNITY CHOICE ENERGY (CCE) - POWER RESOURCES

39 Proposed Redwood Coast Energy Authority Fiscal Year 2022-2023 Budget Account
Income
5 REVENUE EARNED
Total 5000 · Revenue - Government Agencies
Total 5100 · Revenue - Program-Related Sales
Total 5400 · Revenue-nongovernment agencies
5500 · Revenue - Electricity Sales
5510 · Electricity Sales
5550 · PPA Revenues
5580 · Uncollectable Accounts
Total 5500 · Revenue - Electricity Sales
Total 5 REVENUE EARNED
Expense
Total 6 WHOLESALE POWER SUPPLY
Total 7 PERSONNEL EXPENSES
Total 8.1 FACILITIES AND OPERATIONS
Total 8.2 COMMUNICATIONS AND OUTREACH

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory
8410 · Contracts - Program Related Ser
8420 · Accounting
8430 · Legal
8450 · Wholesale Services - TEA
8460 · Procurement Credit - TEA
8470 · Data Management - Calpine
Total 8.4 PROFESSIONAL & PROGRAM SRVS
Total 8.5 PROGRAM EXPENSES
Total 8.6 INCENTIVES & REBATES
Total 9 NON OPERATING COSTS
Total Expense
Net Income
PG&E Local
Government
Partnership
Program
RCEA-Administered
CPUC Efficiency
Program
TECH
Grant
CCE-funded
DSM Services
and Programs TOTAL DSM
- 877,031 - - 877,031
- - - - -
246,634 - 59,688 - 306,322
- - - - -
- - - - -
- - - - -
- - - - -
246,634 877,031 59,688 - 1,183,353
- - - - -
239,434 571,408 59,688 641,119 1,511,649
3,200 3,800 - 2,800 9,800
4,000 6,000 - 3,100 13,100
- - - - -
- 55,000 45,000 100,000
- - - - -
- 2,500 6,500 9,000
- - - - -
- - - - -
- - - - -
- 57,500 - 51,500 109,000
- 1,000 - 1,000 2,000
- 237,323 - 181,000 418,323
- - - - -
246,634 877,031 59,688 880,519 2,063,872
- - - (880,519) (880,519)

DEMAND-SIDE MANAGEMENT (DSM)

40 Proposed Redwood Coast Energy Authority Fiscal Year 2022-2023 Budget Account
Income
5 REVENUE EARNED
Total 5000 · Revenue - Government Agencies
Total 5100 · Revenue - Program-Related Sales
Total 5400 · Revenue-nongovernment agencies
5500 · Revenue - Electricity Sales
5510 · Electricity Sales
5550 · PPA Revenues
5580 · Uncollectable Accounts
Total 5500 · Revenue - Electricity Sales
Total 5 REVENUE EARNED
Expense
Total 6 WHOLESALE POWER SUPPLY
Total 7 PERSONNEL EXPENSES
Total 8.1 FACILITIES AND OPERATIONS
Total 8.2 COMMUNICATIONS AND OUTREACH

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory
8410 · Contracts - Program Related Ser
8420 · Accounting
8430 · Legal
8450 · Wholesale Services - TEA
8460 · Procurement Credit - TEA
8470 · Data Management - Calpine
Total 8.4 PROFESSIONAL & PROGRAM SRVS
Total 8.5 PROGRAM EXPENSES
Total 8.6 INCENTIVES & REBATES
Total 9 NON OPERATING COSTS
Total Expense
Net Income
REVNET and
CALeVIP
CEC
Medium/Heavy
Duty ZEV Grant
CCE-funded
Transportation
Services and
Programs
TOTAL
Transportation
74,000 150,000 - 224,000
30,400 - - 30,400
- - - -
- - - -
- - - -
- - - -
- - - -
104,400 150,000 - 254,400
- - - -
189,859 57,816 52,500 300,175
155,800 - 200 156,000
2,500 2,184 - 4,684
- - - -
- 50,000 - 50,000
- - - -
4,000 - 5,000 9,000
- - - -
- - - -
- - - -
4,000 50,000 5,000 59,000
12,500 - - 12,500
- - 59,500 59,500
- - - -
364,659 110,000 117,200 591,859
(260,259) 40,000 (117,200) (337,459)

TRANSPORTATION

41 Proposed Redwood Coast Energy Authority Fiscal Year 2022-2023 Budget Account
Income
5 REVENUE EARNED
Total 5000 · Revenue - Government Agencies
Total 5100 · Revenue - Program-Related Sales
Total 5400 · Revenue-nongovernment agencies
5500 · Revenue - Electricity Sales
5510 · Electricity Sales
5550 · PPA Revenues
5580 · Uncollectable Accounts
Total 5500 · Revenue - Electricity Sales
Total 5 REVENUE EARNED
Expense
Total 6 WHOLESALE POWER SUPPLY
Total 7 PERSONNEL EXPENSES
Total 8.1 FACILITIES AND OPERATIONS
Total 8.2 COMMUNICATIONS AND OUTREACH

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory
8410 · Contracts - Program Related Ser
8420 · Accounting
8430 · Legal
8450 · Wholesale Services - TEA
8460 · Procurement Credit - TEA
8470 · Data Management - Calpine
Total 8.4 PROFESSIONAL & PROGRAM SRVS
Total 8.5 PROGRAM EXPENSES
Total 8.6 INCENTIVES & REBATES
Total 9 NON OPERATING COSTS
Total Expense
Net Income
Other
CAP/
CAPE
TOTAL
Strategic
Planning
- - - - 1,101,031
- - - - 30,400
- - - - 489,124
- - - -
- - - -
- - - -
- - - - 93,848,684
- - - - 95,469,239
- - - 4,000,000 76,236,276
- 183,380 183,380 1,048,660 4,071,684
- 100 100 383,434 801,816
- - - 5,470 177,004
- - - - 180,000
20,000 - 20,000 - 290,000
- - - 87,455 87,455
- - - 25,000 180,000
- - - - 654,984
- - - - 690,545
- - - - 737,532
20,000 - 20,000 112,455 2,820,516
- - - - 638,100
- - - - 477,823
- - - 2,047,020 2,246,020
20,000 183,480 203,480 7,597,039 87,469,239
(20,000) (183,480) (203,480) (7,597,039) 8,000,000

PROPOSED

FISCAL YEAR
2022-2023
BUDGET

STRATEGIC PLANNING GENERAL &
ADMIN

42 Fiscal Year 2022-23 Preliminary
Draft Budget Overview
FY22-23 Budget Assumptions
• Energy revenue and costs based on model from April 30, 2022. • Modeled revenue adjusted down by 4% and costs adjusted up by 11% per recommendations by TEA based on analysis of several rate and cost scenarios. Staff chose the most conservative scenario to present in our budget.
• Assumes no rate change in 2023.

REVENUE
FY 21/22 $ 53,500,000
FY 22/23 $ 95,500,000

EXPENSES
FY 21/22 $52,200,000
FY 22/23 $87,500,000

87.2%

4.7%

0.9%

0.2%

3.2%

0.7% 0.5% FY 22/23 EXPENSES 2.6%
Wholesale power supply Personnel
Facilities and Operations Communications and Outreach
Professional & Program Services Program Expenses
Incentives & Rebates Non Operating Costs (loan repayment)

87.5%

10.7%

1.1% 0.7%
FY 22/23 REVENUE
Electricity Sales
Power Purcahse Agreements
Program-funding from grants, contracts, etc
Airport microgrid
Changes/Highlights: Energy sales and costs
• Electricity sales revenue projected to be up $38.9M
• Wholesale power costs projected to be up $28.5M
• Delinquent customer utility-bill payments are expected to decrease.

It is calculated as 2% of electricity sales revenue.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
FY 21/22 FY 22/23
Total Revenue Total Expenses
Changes/Highlights: Personnel
• Includes addition of three full-time positions
(Infrastructure Manager, Power Resources
Specialist and Intake Coordinator).
• ~16% in total personnel budget increase -
personnel is 4.7% of total budget, so ~0.6%
increase to total budget.

Changes/Highlights: Other
• Repayment of loan to Blue Lake Rancheria $2M
• Purchasing power supply back from MCE $4M
• Budgeted for necessary IT upgrades and financial
software
• Funds have been budgeted in anticipation of
ramping up Offshore Wind outreach and
professional services (consultants and legal)
• As of January 2022, RCEA has provided over
$5.5M in cumulative rate payer savings. Budget
reflects 0.5% retail rate discount from PG&E rates.

Preliminary Bottom-line
• In FY 21-22 we experienced negative net revenue
which caused RCEA to use all cash reserves and receive
loan funds.
• Current budgeted net revenue does not reflect actuals. • End result: Addition of $8M to reserves to replace
cash reserves utilized in FY 21-22.

Current Budget FY22-23 Preliminary Draft
Revenue $53.5M $95.5M
Expenses $52.2M $87.5M
Net Revenue $1.3M $8M

Potential Funding Sources FY 22-23
• Awaiting approval of $700,000 CEC Transportation Grant (Personnel and EV Charging Stations).
• We are still awaiting a decision from CPUC on our Rural REN proposal $96M over 5 years. Expect to find out sometime between June – Nov 2022.
• If awarded portion of the revenue will offset current personnel and programmatic costs being funded by CCE-DSM General budget.

Projected Rural REN Budget FY 2022-2023
Revenue $1M
Pass Through Implementation $4.6M
Next Steps
• Staff will refine and finalize proposed budget
• Option for second Finance Subcommittee meeting
4-5pm June 15 for additional review/input.
• Final proposed budget presented to Board June 23

8. New Business
RCEA Board of Directors Meeting
May 26, 2022

8.2 Fiscal Year 2022-2023 Preliminary Draft Budget
Provide guidance and input to staff on draft
FY22-23 budget.

STAFF REPORT
Agenda Item # 9.1
AGENDA DATE: May 26, 2022
TO: Board of Directors
FROM: Eileen Verbeck, Deputy Executive Director
SUBJECT: Deputy Executive Director’s Report

SUMMARY
Deputy Executive Director Eileen Verbeck will provide a brief update on:
• Local and national offshore wind related activities,
• RCEA recent activities, and
• Redwood Coast Airport Microgrid Grand Opening Celebration June 22, 2022 • Other topics as needed.

RECOMMENDED ACTION
None. (Information only.)
43