Redwood Coast Energy Authority
633 3rd Street, Eureka, CA 95501
Phone: (707) 269-1700 Toll-Free (800) 931-7232 Fax: (707) 269-1777 E-mail: [email protected] Web: www.redwoodenergy.org
BOARD OF DIRECTORS MEETING MINUTES
Jefferson Community Center Auditorium November 16, 2023 1000 B Street, Eureka, CA 95501 Thursday, 3:30 p.m.
Chair Sheri Woo called a regular meeting of the Board of Directors of the Redwood Coast Energy Authority to order on the above date at 3:33 p.m. Notice of this meeting was posted on November 13, 2023.
PRESENT: Natalie Arroyo, Skip Jorgensen, Kris Mobley, Jason Ramos, Elise Scafani, Vice Chair Sarah Schaefer, Jack Tuttle, Frank Wilson, Chair Sheri Woo. ABSENT: Scott Bauer, Frankie Myers.
STAFF AND OTHERS PRESENT: EDP Renewables Director of Origination Chris Baxter, Business Planning and Finance Director Lori Biondini, Finance Specialist Ronnie Chausse, General Counsel Nancy Diamond, Senior Power Resources Manager Jocelyn Gwynn, The Energy Authority California Account Director Jaclyn Harr, Demand Side Management Director Stephen Kullmann, Board Clerk Lori Taketa, Deputy Executive Director Eileen Verbeck.
REPORTS FROM MEMBER ENTITIES
Community Advisory Committee Board Liaison Mobley asked staff to review the CAC Charter and agenda setting procedures with CAC members when new members are seated in 2024.
Director Arroyo reported on the recent Board tour of the Humboldt Sawmill Company mill and power plant and thanked HSC and RCEA staff for arranging the informative visit.
ORAL COMMUNICATIONS
No member of the public submitted statements or asked to speak at the Chair’s invitation.
Chair Woo closed the non-agenda item public comment period.
CONSENT CALENDAR
4.1 Approve Minutes of October 26, 2023, Board Meeting.
4.2 Approve Disbursements Report.
4.3 Accept Quarterly Budget Report for Fiscal Year 2023-24 Q1.
4.4 Accept Financial Reports.
4.5 Authorize Staff to Sign Check or Authorize ACH Payment for the Purchase of ChargePoint Electric Vehicle Charging Equipment from Campton Electric at a Price Not to Exceed $235,946 in Fulfillment of CEC Rural Electric Vehicle Charging Grant Requirements.
No Director nor member of the public requested discussion of consent calendar items.
M/S: Arroyo, Schaefer: Approve Consent Calendar items.
RCEA November 16, 2023, Board of Directors Meeting Minutes
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Ramos, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: Bauer, Myers. Abstain:
None.
CCE BUSINESS - Chair Woo confirmed there was a CCE Business quorum present.
NEW CCE BUSINESS
7.1 Bioenergy Market Adjusting Tariff
Senior Power Resources Manager Gwynn described how CCAs can participate in the state’s BioMAT program to recover above-market costs for bioenergy projects fueled by biogas from municipal or agricultural waste, or biomass from sustainable forestry byproducts. Previously only investor-owned utilities could access these funds which are collected from all ratepayers to offset capital-intensive project procurement. The Board would approve or deny any bioenergy agreements RCEA would be eligible to join through BioMAT program participation.
The Directors discussed:
• Support for learning about and investing in alternative, new, available bioenergy sources;
• Support for biomass energy procurement, fuels reduction and utilization, per RCEA’s strategic plan;
• The potential environmental benefits of methane combustion versus release into the atmosphere; and
• Interest in food waste digestor development and gasification.
Member of the public Daniel Chandler opposed BioMAT participation because of biomass combustion’s global warming gas emissions. Mr. Chandler asked that RCEA invest resources in solar energy development instead of paying inflated prices to support the biomass industry.
Dr. Wendy Ring opposed biomass and biogas combustion due to health and air quality impacts and supported greater local access to affordable composting. Dr. Ring opposed RCEA diverting funds from clean to dirty energy sources. Chair Woo closed the comment period.
M/S: Mobley, Jorgensen: Authorize the Executive Director to approve final RCEA BioMAT program documents for submission to the CPUC, consistent with the substantive terms and conditions of PG&E’s BioMAT program, with approval by RCEA General Counsel.
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Tuttle, Wilson. Noes: None. Absent: Bauer, Myers. Abstain: None. Non-Voting: Ramos, Woo.
END OF COMMUNITY CHOICE ENERGY BUSINESS
OLD BUSINESS
8.1 Sandrini Sol 1 Power Purchase Agreement Amendment 2 Senior Power Resources Manager Gwynn described the project’s history, delays and contract amendments. The current amendment includes a commercial operation date RCEA November 16, 2023, Board of Directors Meeting Minutes
change, replacement of renewable energy certificates should the project not meet the revised deadline, and an adjusted method for settling transaction costs. EDP Renewables’ Chris Baxter explained how the revisions help the developer finance the project and manage market volatility.
The directors discussed the fate of the solar panel shipments that did not clear Customs and Border Protection, how current battery storage development and transmission upgrades will help manage periodic solar power gluts and grid congestion, and how the new financial settlement method is less advantageous than the previous, but still mitigates risk of volatility in cost differences between what RCEA collects for power generated by the project and the price RCEA pays to serve its load. There were no comments from the public and Chair Woo closed the comment period.
M/S: Schaefer, Arroyo: Approve Resolution 2023-10 Approving the Form of and Authorizing the Execution of the Second Amendment to the Sandrini Power Purchase Agreement with EDPR CA Solar Park II LLC.
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Ramos, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: Bauer, Myers. Abstain:
None.
8.2 RCEA New Office Building Development
Deputy Executive Director Verbeck reported that RCEA now owns the 6,600 square foot parking lot at Third and I Streets. The first floor of the three- to four-story building will house a customer service lobby, education center and public meeting space. There were no comments from the public. Chair Woo closed the comment period.
M/S: Arroyo, Mobley: Authorize staff to issue the request for qualifications for architectural and engineering design work for new construction of RCEA office building at 805 Third Street Eureka, CA.
Authorize the ad hoc building relocation subcommittee to act as a review committee and authorize it to take the following actions: (i) approve evaluation criteria, (ii) approve selected proposal based on the selection criteria to bring to the full Board for review and approval of resulting contract.
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Ramos, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: Bauer, Myers. Abstain:
None.
NEW BUSINESS
9.1 Sonoma Clean Power Mid-Term Reliability Resource Adequacy Agreement Senior Power Resources Manager Gwynn reported. The Fairhaven battery storage project’s delay means that RCEA would fall short of procuring enough resource adequacy (RA) for the 2024 Mid-Term Reliability compliance period. As a replacement, Sonoma Clean Power Authority is willing to sell RCEA excess RA from their Sagebrush II battery storage project in Kern County. This, along with the Sandrini project’s RA, will help RCEA mitigate compliance penalties for certain months in 2024. Sagebrush’s RA costs less than the CPUC penalty for RCEA November 16, 2023, Board of Directors Meeting Minutes
inadequate RA procurement. There were no comments from the public and Chair Woo closed the comment period.
M/S: Schaefer, Ramos: Approve Resolution 2023-11 Approving the Form of and Authorizing the Execution of the Resource Adequacy Agreement with Sonoma Clean Power Authority.
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Ramos, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: Bauer, Myers. Abstain:
None.
9.2 Rural REN Statewide Energy Efficiency Program Implementation: PG&E, Southern California Edison and SoCalGas Funding Contracts
Demand Side Management Director Kullmann explained that because the Rural Regional Energy Network will overlap with investor-owned utility (IOU) territories, RCEA and the IOUs must agree on funding processes so RCEA can start fulfilling program administrator duties.
The directors discussed implementation oversight responsibilities, possible Board ad hoc subcommittee formation, and Board-to-Board inter-agency communication. There were no comments from the public and Chair Woo closed the comment period.
M/S: Schaefer, Scafani: Authorize the Executive Director to execute the 2024-2027 PG&E Funding Agreement for $40,420,550; and, upon full execution, authorize the Executive Director to issue solicitations and contracts for consultant and subcontractor services to implement the RuralREN in regions covered by PG&E funding.
Authorize the Executive Director to execute the 2024-2027 Southern California Edison Funding Agreement for $33,683,792 and SoCalGas Funding Agreement for $10,105,138 following the review and approval by RCEA staff and legal counsel; and upon full execution of each agreement, authorize the Executive Director to issue solicitations and contracts for consultant and subcontractor services to implement the RuralREN in the respective regions covered by Southern California Edison and SoCalGas funding.
The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Ramos, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: Bauer, Myers. Abstain:
None.
CLOSED SESSION
12.1. Conference with Legal Counsel: Anticipated litigation, pursuant to Government Code Section 54956.9(d)(2).
12.2. Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1): Executive Director.
There was no public comment regarding the closed session item. The Board adjourned to closed session at 5:05 p.m. and reconvened in open session at 5:59 p.m. Chair Woo stated there were no closed session reports and adjourned the meeting at 5:59 p.m.
Lori Taketa, Clerk of the Board