Agenda packet — Redwood Coast Energy Authority Board of Directors, March 28, 2024

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 REGULAR MEETING AGENDA
Wharfinger Building, downstairs Bay Room March 28, 2024 1 Marina Way, Eureka, CA 95501 Thursday, 3:30 p.m.

Any member of the public needing special accommodation to participate in this meeting or access the meeting materials should email [email protected] or call (707) 269- 1700 at least 3 business days before the meeting. Assistive listening devices are available.

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, including those received less than 72 hours prior to the Committee’s meeting, will be made available to the public at www.RedwoodEnergy.org.

NOTE: Speakers wishing to distribute materials to the Board at the meeting, please provide 13 copies to the Board Clerk.

THIS IS A HYBRID IN-PERSON AND VIRTUAL MEETING.

The RCEA Board of Directors holds in-person hybrid meetings. When attending, please socially distance as much as possible and be courteous to those who choose to wear a mask.

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

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 prompt you to unmute your phone or computer. You will have 3 minutes to speak.

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.

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.”

1 OPEN SESSION Call to Order

1. ROLL CALL - REMOTE DIRECTOR PARTICIPATION

1.1. Approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described.

2. REPORTS FROM MEMBER ENTITIES

3. ORAL AND WRITTEN 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.

4. 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.

4.1 Approve Minutes of:

4.1.1 February 12, 2024, Board Special Meeting, and

4.1.2 February 22, 2024, Board Meeting.

4.2 Approve Disbursements Report.

4.3 Accept Financial Reports.

4.4 Approve 2024 RCEA Policy Platform.

4.5 Appoint Colin Fiske and Pliny McCovey to Fill the Two At-Large Community Advisory Committee Seats for Two-Year Terms Expiring March 31, 2026, and Appoint Michael Shackelford to the Community Advisory Committee Blue Lake Rancheria Seat for a Term Ending March 31, 2026.

4.6 Approve Updated Account Services Manager Job Description

4.7 Authorize the Executive Director to Withdraw from Attorney-Client Representation Agreement Between Redwood Coast Energy Authority and Law Office of David Peffer, “PefferLegal.”

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

COMMUNITY CHOICE ENERGY (CCE) BUSINESS – None.

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.
2 6. NEW BUSINESS

6.1. Sandrini Battery Energy Storage Service Agreement
Approve Resolution 2024-3 Approving the Form of and Authorizing the Execution of the Energy Storage Service Agreement with Sandrini BESS Storage LLC and the Third Amendment to the Power Purchase Agreement with EDPR CA Solar Park II LLC.

6.2. Grid Resilience Innovation Partnership Program Funding Opportunity Approve Memorandum of Agreement Between Redwood Coast Energy Authority, Blue Lake Rancheria Tribe, Hoopa Valley Tribe, Karuk Tribe, Yurok Tribe and the Cal Poly Humboldt Sponsored Programs Foundation on behalf of Schatz Energy Research Center (Schatz) to Engage in Activities Regarding the Funding and Coordination of the GRIP 2 Funding Application and Authorize the Executive Director to execute said Memorandum of Agreement.

Authorize Executive Director to Submit the GRIP 2 Funding Application for Approximately $80,000,000 in Federal Department of Energy Funding on Behalf of the Parties Listed in the MOA with RCEA Listed as the Lead Applicant.

6.3. Executive Director Recruitment
Approve Appointment of Deputy Executive Director Eileen Verbeck to Interim Executive Director, at Compensation Determined at the February 22, 2024 Board Meeting, Beginning April 1, 2024.

Authorize staff to solicit quotes from qualified executive search firms to perform the Executive Director recruitment.

Solicit Board of Director volunteers for an ad hoc Executive recruitment subcommittee.

Authorize the ad hoc Executive Director recruitment subcommittee to act as a review committee and authorize it to take the following actions: (i) approve scope of work, (ii) approve evaluation criteria, (iii) approve selected proposal based on the selection criteria to bring to the full Board for review and approval of resulting contract, (iv) review Executive Director salary schedule and make recommendations to the Board for any proposed changes.

7. OLD BUSINESS

7.1. Humboldt Sawmill Company Biomass Emissions Biomass Technical Advisory Group and Community Advisory Committee Report (Information only) 3 8. STAFF REPORTS

8.1 Executive Director’s Report (Information only)

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

10. ADJOURNMENT

NEXT SPECIAL MEETING
Monday, April 22, 2024, 3:30 p.m.

Wharfinger Building downstairs Bay Room, 1 Marina Way, Eureka, CA 95501 Online and phone participation will also be possible via Zoom. (NOTE: The April 25, 2024, regular RCEA Board meeting has been cancelled and rescheduled to April 22, due to Director and staff schedule conflicts.) 4 STAFF REPORT
Agenda Item # 1.1
AGENDA DATE: March 28, 2024
TO: RCEA Board of Directors
FROM: Eileen Verbeck, Deputy Executive Director
SUBJECT: Member Teleconference Participation

BACKGROUND
Since emergency Brown Act meeting law changes went into effect in 2020 due to the COVID-19 public health emergency, the RCEA Board of Directors, Community Advisory Committee and the subcommittees of those bodies met online with no physical, public meeting location.

Governor Newsom signed AB 361 into law in September 2021, which allowed these bodies to continue meeting completely virtually without publishing each member’s participation location while the COVID state of emergency continued and state or local officials recommended social distancing measures or the RCEA Board determined that meeting in person posed health and safety risks.

The COVID-19 State of Emergency ended on February 28, 2023, and RCEA Board and CAC meetings returned to meeting in-person at a physical location, with allowances under existing Brown Act rules or new AB 2449 Brown Act rules should a Board or CAC member need to participate from a remote location for certain reasons. If another state of emergency is declared, these bodies may be able to return to completely remote meetings.

SUMMARY
RCEA Board Directors may attend up to two meetings per year from a remote location without making the location accessible to the public for the following reasons:

1. “Just cause”
a. To provide childcare or caregiving need to a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner;
b. Due to a contagious illness that prevents the member from attending in-person; c. Due to a need related to a physical or mental disability as defined in Government Code sections 12926 and 12926.1 not otherwise accommodated; and d. Due to travel while on official business of the legislative body or another state or local agency.

2. “Emergency circumstance” due to a physical or family medical emergency that prevents the member from attending in person.

If a Board Director would like to attend the meeting remotely due to an emergency circumstance, the Board will take action by majority vote to approve the Director’s remote participation. A vote is not necessary for a request to attend remotely for just cause. A brief 5 description, protecting the Director’s (or Director’s family member’s) medical privacy, needs to be provided in both cases.

The remotely participating Board Director needs to publicly disclose at the meeting before any action (vote) is taken, whether anyone 18 years of age or older is present in the room at the remote location with the Director, and the general nature of the individual’s relationship with the Director.

If the Board Director anticipates needing to participate remotely for more than 2 meetings per year, staff recommends arranging for a publicly and ADA accessible space with visual and audio meeting capabilities from which to participate.

Staff asks to be notified one-week in advance, if possible, of remote meeting attendance so the Director’s publicly and ADA accessible remote meeting address can be published in the agenda, if required per Brown Act open meeting laws.

Current Remote Participation Requests
As of the writing of this staff report, Director Sheri Woo has requested remote director participation for “just cause” and there are no “emergency circumstances” requests.

RECOMMENDED ACTION (if needed)
Approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described. 6 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 DRAFT SPECIAL MEETING MINUTES
Wharfinger Building, downstairs Bay Room February 12, 2024 1 Marina Way, Eureka, CA 95501 Monday, 4 p.m.

Chair Sarah Schaefer called a special meeting of the Board of Directors of the Redwood Coast Energy Authority to order on the above date at 4 p.m. Notice of this meeting was posted on February 8, 2024.

PRESENT: Natalie Arroyo, Vice Chair Scott Bauer, Skip Jorgensen, Kris Mobley, Alt. Dir.

Sherri Provolt (arrived 4:02 p.m.), Jason Ramos, Elise Scafani, Chair Sarah Schaefer, Frank Wilson, Sheri Woo. ABSENT: Frankie Myers, Jack Tuttle.

STAFF AND OTHERS PRESENT: General Counsel Nancy Diamond, Board Clerk Lori Taketa, Deputy Executive Director Eileen Verbeck.

ORAL COMMUNICATIONS
There were no written communications submitted nor members of the public present to speak. Chair Schaefer closed the public comment period.

CLOSED SESSION

3.1 Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1): Executive Director.

There was no public comment regarding this closed session item. The Board adjourned to closed session at 4:01 p.m. and reconvened in open session at 5:33 p.m. Chair Schaefer stated there was nothing to report from the closed session and adjourned the meeting at 5:33 p.m.

Lori Taketa
Board Clerk
7 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 DRAFT MEETING MINUTES
Wharfinger Building, downstairs Bay Room February 22, 2024 1 Marina Way, Eureka, CA 95501 Thursday, 3:30 p.m.

Deputy Executive Director Eileen Verbeck 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. Notice of this meeting was posted on February 16, 2024.

PRESENT: Natalie Arroyo, Skip Jorgensen, Kris Mobley, Elise Scafani, Chair Sarah Schaefer (just cause remote participation, left at 6:15 p.m.), Frank Wilson, Sheri Woo. ABSENT: Scott Bauer, Frankie Myers, Jason Ramos, Jack Tuttle.

STAFF AND OTHERS PRESENT: General Counsel Nancy Diamond, Power Resources Director Richard Engel, Senior Power Resources Manager Jocelyn Gwynn, The Energy Authority California Account Director Jaclyn Harr, Demand-Side Management Director Stephen Kullmann, Community Advisory Committee Chair Dennis Leonardi, Board Clerk Lori Taketa, Deputy Executive Director Eileen Verbeck.

CHAIR PRO TEM ELECTION
Due to the Chair’s remote participation and the Vice Chair’s absence, the directors selected a Chair Pro Tem to facilitate the Board meeting.

M/S: Mobley, Arroyo: Appoint Sheri Woo as Chair Pro Tem for this meeting.

The motion passed with a unanimous roll call vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle.

Abstain: None.

REPORTS FROM MEMBER ENTITIES
Director Mobley reported that the Community Advisory Committee gave staff useful suggestions on rate increase messaging and requested appointment of a Rio Dell representative. Fortuna’s new police facility will open in March or April.

Director Arroyo requested feedback on PG&E’s Local Leader Energy Roundtable.

ORAL AND WRITTEN COMMUNICATIONS
Member of the public David Daz asked RCEA to partner with the Harbor District to install beach improvements such as restrooms and dog waste receptacles near the fish farm and offshore wind development areas.

Martha Walden of Humboldt Coalition for Clean Energy asked that her previous statement about how long Humboldt Sawmill Company was operating without permit be changed from two years to six months. She asked RCEA to end its contract with HSC as soon as possible. 8 CONSENT CALENDAR

4.1 Approve Minutes of January 25, 2024, Board Meeting.

4.2 Approve Disbursements Report.

4.3 Accept Financial Reports.

4.4 Approve Payment of California Community Power Agency Annual General and Administrative Dues up to $85,000.

4.5 Approve the RCEA Net Billing Tariff Revisions Necessary to Incorporate Minor PG&E Net Billing Tariff Revisions.

4.6 Approve Updated Community Strategies Manager Job Description.

4.7 Adopt Resolution 2024-2 of the Redwood Coast Energy Authority Authorizing Certification and Submittal of Required Data to the U.S. Department of Agriculture Rural Utilities Services Loan Program; and
Authorize the Board Chair to Sign a USDA Rural Utilities Services Programs Certificate of Authority to Submit or Grant Access to Data Naming RCEA’s Deputy Executive Director as Certifier and Director of Business Development and Planning as Security Administrator.

Neither the Board nor public requested items be removed from the consent calendar.

M/S: Arroyo, Mobley: Approve Consent Calendar.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain:

None.

OLD CCE BUSINESS

6.1 Energy Risk Management Quarterly Report
The Energy Authority California Account Director Harr described near term increased retail electric rates and a forecasted rate drop in 2025-26. While power costs are projected to decrease, Renewable Energy Credits and other mandated product costs, including Resource Adequacy costs, are increasing significantly. TEA is procuring short-term power and mandated environmental products to adjust for the Sandrini Solar project’s delayed October 1, 2024, start date. RCEA’s annual net revenue forecast is slightly better than last reported in October 2023 due to increased retail rates. However, the 2025-26 forecasted revenue is less than previously projected due to anticipated power cost increases. RCEA’s cash reserves continue to recover since the September 2021 depletion. There was no public comment nor director discussion for this agenda item.

NEW CCE BUSINESS

7.1 California Community Power Build-Own-Transfer Agreement Solicitation Power Resources Director Engel described RCEA’s participation in the California Community Power joint powers authority which helps Community Choice Aggregators pool their resources to meet costly CPUC mid-term reliability new project construction requirements.

The Federal Inflation Reduction Act presents opportunities for public agencies like CCAs to take advantage of tax credits previously available only to private entities to develop new 9 projects. CC Power proposes a process where a developer builds a project then transfers long-term ownership to CC Power at or near the time the project becomes operable. Staff asked the Board to approve participation in this process’ first phase. There was no public comment for this agenda item.

M/S: Mobley, Scafani: Authorize participation in the first phase of California Community Power’s Build-Own-Transfer Solicitation at a not-to exceed cost of $74,000.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain: None.

Non-Voting: Woo.

OLD BUSINESS

8.1 Fiscal Year 2023-24 Draft Mid-Year Budget Adjustment Business Development and Finance Director Biondini described lower than expected net income this fiscal year due to higher-than-expected energy costs to make up for Sandrini Solar project delays, and recommended removal of Rural Regional Energy Network revenue and expenses from the budget due to program uncertainties. Director Biondini also recommended postponing the consideration of any customer rate reductions until RCEA is closer to reaching its $35 million cash reserve goal. The cash reserve goal prepares RCEA for extreme market fluctuations, unexpected events, and the ability to negotiate better contract terms resulting in lower operating costs.

The Directors discussed public misunderstanding of how RCEA charges appear on the PG&E-generated bill. Demand-Side Management Director Kullmann described how staff explain to callers every day that RCEA is not a duplicate charge and persuade a large percentage of callers not to opt-out by describing RCEA’s programs. Staff asked for suggestions on community events where RCEA can participate and educate the public about RCEA’s role. There was no public comment on this item.

M/S: Arroyo, Jorgensen: Approve proposed changes to the RCEA Fiscal Year 2023-24 Budget.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain:

None.

8.2 Community Advisory Committee Annual Report and Work Goals, CAC At-Large Member Recruitment
Deputy Executive Director Verbeck described the CAC’s long-term work goals which are being extended through the end of 2024, and the committee’s valuable insights into how RCEA is perceived in the community. CAC Chair Dennis Leonardi described the upcoming committee meeting which will focus on RCEA’s biomass energy contract with Humboldt Sawmill Company.

Directors Arroyo, Jorgensen, Mobley and Schaefer volunteered to serve on an ad hoc CAC at-large nomination subcommittee. There was no public comment on this item. 10 M/S: Jorgensen, Arroyo: Accept Community Advisory Committee 2023 Annual Report and approve 2024-5 CAC work goals.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain:

None.

NEW BUSINESS

9.1 Annual Regulatory & Legislative Policy Platform Review The Board postponed consideration of this item to the next meeting.

9.2 Coordinator/Associate Job Description and Pay Schedule Update Deputy Executive Director Verbeck described suggested updates to the Associate/Intern and Coordinator job descriptions and salary schedules to address equity between classifications and increase competitiveness with California minimum wage positions. Director Arroyo noted a correction to the job descriptions. There was no public comment for this item.

M/S: Arroyo, Mobley: Approve updated job description and salary schedule to establish the Coordinator job classification, and
Approve updated Associate/Intern job description with noted correction.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain:

None.

STAFF REPORTS

10.1 Deputy Executive Director’s Report
Deputy Executive Director Verbeck and Regulatory and Legislative Policy Manager Carlson attended the California Community Choice Association’s Sacramento Lobby Day. RCEA is well-regarded among the CCAs as being a source of innovative solutions. All CCAs are facing similar project and grid interconnection delays and are being forced to seek short-term, high-priced procurement to meet state-mandated requirements. State representatives are hearing that this makes it difficult to keep electricity rates affordable for customers. There was no public comment on this item.

FUTURE AGENDA ITEMS
Director Wilson asked for clarification from the Air Quality Management District regarding Humboldt Sawmill Company’s operating permit. Director Arroyo asked staff to identify a better estimate of the cash reserves needed, considering inflation and increased costs of doing business, before the Board can consider rate reductions when the Board discusses the 2024-25 budget.

CLOSED SESSION

12.1 Conference with Legal Counsel: Existing Litigation, CPUC 22-02-005, Petition for Modification of D. 23-06-055, pursuant to Government Code 54956.9(d)(1). 11 12.2 Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1): Executive Director.

Closed session item 12.1 was removed from the agenda. There was no public comment regarding closed session item 12.2. The Board adjourned to closed session at 4:49 p.m. and reconvened in open session at 6:16 p.m. Chair Pro Tem Woo reported the following closed session action:

M/S: Scafani, Arroyo: Increase the Deputy Executive Director’s salary to Step 10 retroactively beginning on November 1, 2023, while the Deputy Executive Director serves as Executive Director.

The motion passed with a unanimous vote. Ayes: Arroyo, Jorgensen, Mobley, Scafani, Schaefer, Wilson, Woo. Noes: None. Absent: Bauer, Myers, Ramos, Tuttle. Abstain:

None.

Chair Pro Tem Woo adjourned the meeting at 6:16 p.m.

Lori Taketa
Board Clerk
12 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of January 31, 2024
Type Date Num Name Memo Amount
Check 01/05/2024 ACH VISA December 2023 Statement 11/21 - 12/20/2023 -5,412.31 Bill Pmt -Check 01/05/2024 ACH Viridity Energy Solutions, Inc. Tierra Buena RA-December 2023 -16,900.00 Liability Check 01/05/2024 ACH Ascensus Deferred compensation Paydate 01/05/24 -13,568.65 Liability Check 01/05/2024 ACH EDD Taxes, Paydate 01/05/24 -10,484.02 Liability Check 01/05/2024 ACH Internal Revenue Service Taxes, Paydate 01/05/24 -34,378.32 Liability Check 01/05/2024 ACH Newport Group Deferred compensation, Paydate 01/05/24 -12,008.03 Paycheck 01/05/2024 ACH Employees Payroll -88,064.04
Bill Pmt -Check 01/16/2024 ACH Campton Electric Supply Deposit for materials release- EVSE -74,836.25 Bill Pmt -Check 01/18/2024 ACH Leapfrog Energy December 2023 RA Invoice -36,740.00 Bill Pmt -Check 01/19/2024 16836 AT&T VOID: RCAM charges: 12/29/23-1/28/24 0.00 Bill Pmt -Check 01/19/2024 16837 AT&T Long Distance VOID: Phone charges 12/25/2023 - 1/24/2024 0.00 Bill Pmt -Check 01/19/2024 16838 Carter Properties, LLC 917 3rd Street Office Lease -Feb 2024 rent -2,300.00 Check 01/19/2024 16839 CCE Customer EVSE Rebate - REVSE39 -228.97 Bill Pmt -Check 01/19/2024 16840 Donald Dame CCE Consulting services -248.50 Bill Pmt -Check 01/19/2024 16841 Enterprise 12/4/23-12/9/23 Caselle training -404.98 Bill Pmt -Check 01/19/2024 16842 HireRight New employee screening service- Court fee -15.00 Bill Pmt -Check 01/19/2024 16843 Humboldt Bay Coffee Co. Office Coffee -69.20 Bill Pmt -Check 01/19/2024 16844 Winzler, John Office Lease - 633 3rd St. Feb 2024 -7,752.50 Bill Pmt -Check 01/19/2024 16845 Diamond, Nancy Legal Services -19,690.00 Bill Pmt -Check 01/19/2024 16846 Liebert Cassidy Whitmore Annual membership fee -5,815.00 Bill Pmt -Check 01/19/2024 16847 Local Worm Guy Compost service both locations -60.00 Bill Pmt -Check 01/19/2024 16848 Bithell, M. Dec 2023 Mileage Reimbursement -20.96 Bill Pmt -Check 01/19/2024 16849 Mission Uniform & Linen Janitorial services and supplies -186.39 Bill Pmt -Check 01/19/2024 16850 North Coast Cleaning Janitorial Service - both locations -970.00 Bill Pmt -Check 01/19/2024 16851 Pacific Paper Company Office Supplies: Binder clips -5.99 Bill Pmt -Check 01/19/2024 16852 Scrapper's Edge Date stamp -84.67 Bill Pmt -Check 01/19/2024 16853 Times Printing Company Move-in mailers and postage -517.60 Bill Pmt -Check 01/19/2024 16854 Ubeo Business Services Printer Charges: 12/6/23-1/5/24 -150.52 Bill Pmt -Check 01/19/2024 16855 AT&T RCAM router/internet charges: 12/29-1/28/24 -888.92 Bill Pmt -Check 01/19/2024 16856 AT&T Long Distance Phone charges 12/25/2023 - 1/24/2024 -111.81 Paycheck 01/19/2024 ACH Employees Payroll -86,156.39
Check 01/22/2024 Debit Umpqua Service Charge -282.65
Liability Check 01/23/2024 ACH Ascensus Deferred compensation Paydate 01/19/24 -13,514.21 Liability Check 01/23/2024 ACH EDD Taxes Paydate 01/19/24 -9,355.81 Liability Check 01/23/2024 ACH Internal Revenue Service Taxes Paydate 01/19/24 -33,827.28 Liability Check 01/23/2024 ACH Newport Group Deferred compensation Paydate 01/19/24 -12,008.03 Liability Check 01/23/2024 ACH CICCS Coalition for Controlling Insurance EAP benefit, Invoice 2024-01 -64.94 Liability Check 01/26/2024 16857 Ameritas - Dental Dental Ins Premiums, Feb 2024 -2,539.92 Liability Check 01/26/2024 16858 Ameritas - Vision Vision Ins Premiums, Feb 2024 -442.76 Liability Check 01/26/2024 16859 Colonial Life Supplemental Ins Premiums, Feb 2024 -3,036.76 Liability Check 01/29/2024 ACH Keenan Health Ins, Feb 2024 Premiums -38,462.85 Bill Pmt -Check 01/31/2024 ACH CA Dept. of Tax & Fee Administration Electrical Energy Surcharge Return Q4 2023 -40,116.00 Liability Check 01/31/2024 ACH Ascensus Paydate 01/31/2024 -2,836.69 Liability Check 01/31/2024 ACH EDD Paydate 01/31/2024 -4,448.14 Liability Check 01/31/2024 ACH Internal Revenue Service Paydate 01/31/2024 -17,236.04 Liability Check 01/31/2024 ACH Newport Group Paydate 01/31/2024 -2,682.84 Paycheck 01/31/2024 ACH Employee Final Paycheck, 01/31/2024 -16,891.16 TOTAL -615,815.10

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14 Redwood Coast Energy Authority
Profit & Loss Budget vs. Actual
July 2023 through January 2024
Jul '23 - Jan 24 Budget % of Budget
Ordinary Income/Expense
Income
Total 4 GRANTS AND DONATIONS 250.00 0.00 100.0%
5 REVENUE EARNED
Total 5000 · Revenue - government agencies 267,074.90 586,099.00 45.57% Total 5100 · Revenue - program related 166,593.71 155,000.00 107.48% Total 5400 · Revenue-nongovernment agencies 406,852.20 582,802.00 69.81% Total 5500 · Revenue - Electricity Sales 45,035,134.80 85,206,156.00 52.85% Total 5 REVENUE EARNED 45,875,655.61 86,530,057.00 53.02% Total Income 45,875,905.61 86,530,057.00 53.02%
Gross Profit 45,875,905.61 86,530,057.00 53.02%
Expense
Total 6 WHOLESALE POWER SUPPLY 36,786,220.81 65,436,704.00 56.22% Total 7 PERSONNEL EXPENSES 2,639,984.44 5,148,499.00 51.28% Total 8.1 FACILITIES AND OPERATIONS 327,744.05 1,537,574.00 21.32% Total 8.2 COMMUNICATIONS AND OUTREACH 69,162.67 160,485.00 43.1%

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 81,093.76 205,000.00 39.56%
8410 · Contracts - Program Related Ser 296,047.76 640,900.00 46.19% 8420 · Accounting 59,513.08 191,000.00 31.16%
8430 · Legal 196,438.40 230,000.00 85.41%
8450 · Wholesale Services - TEA 476,655.83 766,853.00 62.16% 8460 · Procurement Credit - TEA 105,604.93 414,075.00 25.5% 8470 · Data Management - Calpine 465,302.99 887,187.00 52.45% Total 8.4 PROFESSIONAL & PROGRAM SRVS 1,680,656.75 3,335,015.00 50.39% Total 8.5 PROGRAM EXPENSES 168,876.74 290,014.00 58.23% Total 8.6 INCENTIVES & REBATES 219,306.74 402,575.00 54.48% Total 9 NON OPERATING COSTS 70,204.30 129,500.00 54.21% Total Expense 41,962,156.50 76,440,366.00 54.9%
Net Ordinary Income 3,913,749.11 10,089,691.00 38.79%
Net Income 3,913,749.11 10,089,691.00 38.79%

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15 Redwood Coast Energy Authority
Balance Sheet
As of January 31, 2024
Jan 31, 24
ASSETS
Current Assets
Checking/Savings
1010 · Petty Cash 300.00
1060 · Umpqua Checking Acct 0560 714,819.26
1071 · Umpqua Deposit Cntrol Acct 8215 16,677,211.86
1075 · Umpqua Reserve Account 2300 1,700,000.00
1076 · First Republic Bank - 4999 399,967.48
Total Checking/Savings 19,492,298.60
Total Accounts Receivable 321,011.86
Other Current Assets
1101 · Allowance for Doubtful Accounts -5,889,898.05
1103 · Accounts Receivable-Other 18,368,216.06
1120 · Inventory Asset 35,452.21
1205 · Prepaid Insurance 1,465.75
1210 · Retentions Receivable 17,652.91
1499 · Undeposited Funds 26.00
Total Other Current Assets 12,532,914.88
Total Current Assets 32,346,225.34
Total Fixed Assets 9,345,339.93
Other Assets
1700 · Security Deposits 4,198,623.26
Total Other Assets 4,198,623.26
TOTAL ASSETS 45,890,188.53

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable 6,305,187.13
Total Credit Cards 12,399.65
Other Current Liabilities
2002 · Deposits Refundable 1,986,795.01
2011 · NEM Escrow Liability 145,802.73
Total 2100 · Payroll Liabilities 178,013.74
Total 2200 · Accrued Expenses 16,752.75
Total Other Current Liabilities 2,327,364.23
Total Current Liabilities 8,644,951.01
Total Long Term Liabilities 6,085,188.01
Total Liabilities 14,730,139.02
Equity
2320 · Investment in Capital Assets 49,064.67
3900 · Fund Balance 27,197,235.73
Net Income 3,913,749.11
Total Equity 31,160,049.51
TOTAL LIABILITIES & EQUITY 45,890,188.53

Page 1 of 1 ends

16 STAFF REPORT
Agenda Item # 4.4
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Faith Carlson, Regulatory and Legislative Policy Manager SUBJECT: 2024 Policy Platform Update

BACKGROUND
On March 24, 2022, the RCEA Board of Directors adopted the RCEA 2022 Policy Platform (Platform), which was updated in late 2023.

The purpose of the Platform is to deliver on RCEA’s RePower Humboldt goals and maintain the operation of its various programs. RCEA regularly tracks policy developments in both the regulatory and legislative space to fulfill these goals.

Previously, RCEA needed Board authorization to adopt a position on any given piece of legislation. . Case-by-case authorization is time-consuming and the frequency of RCEA Board meetings typically does not align with the pace of the legislative process. The ultimate purpose of establishing the Platform is to implement a more efficient and structured advocacy approach akin to what other Community Choice Aggregators (CCAs) have in place. The Platform allows RCEA to be nimbler in adopting positions on legislative matters in a timely manner without full Board approval if the position is aligned with the Board-approved priorities. This Platform also helps inform RCEA’s regulatory activities to ensure staff engagement aligns with the Board’s priorities and RCEA’s goals. As noted in the Platform, staff is authorized to engage in regulatory matters without Board consultation.

The 2023 Policy Platform and Draft 2024 Policy Platform support the following overarching policy priorities:
• To maintain local control for the purpose of preserving the ability to self-procure its power resources, and to self-determine rates and the energy programs RCEA offers to its residents, businesses, and communities it serves, through the mechanisms of local governance,
• To provide lower and more stable rates for RCEA customers, • To provide greater economic benefits to the local community, 17 • To have maximum flexibility to utilize and develop local resources in the most economically efficient manner possible and with a high degree of local control, • To maintain the financial stability of CCA operations, and • To maintain an efficient, transparent governance structure and operations.

Additionally, the Platform will be brought to the RCEA Board of Directors for periodic review.

This is an opportunity for the Board to suggest revisions to RCEA’s policy priorities.

RCEA staff engaged the Community Advisory Committee on the Draft 2024 Policy Platform to receive input to be considered by the Board at this meeting.

SUMMARY
RCEA staff reviewed the 2024 Policy Platform and suggested a handful of revisions which are redlined in the attached document. The majority of changes reflect formatting updates and grammatical corrections.

Below are the substantive changes:

Section (as
enumerated
in redline
doc)
Previous Language Updated Language Reason
3, 5 Resource Adequacy, PSPS,
and Reliability all
consolidated to same
section.

Readability and
conciseness.
5b “Support policies which
require IOUs to notify
impacted cities,
counties, tribes, and
CCAs of impending PSPS
events.”
Deletion: redundant
to 5a “Support
policies which
increase the
notification and
transparency
requirements on
IOUs as they
implement a PSPS.”
4 “COVID-19 Response” “Public Health Emergency
and Natural Disaster
Response"
To include a greater
number of
emergency
scenarios.
6d “Where new transmission
or distribution
infrastructure is needed,
support policies that
design, upgrade, and scale
such infrastructure to
Addition: to reflect
transmission and
distribution access
goals, while still
aligning with existing
18 empower community
members access to
resources including but not
limited to renewable
energy, green
transportation, and rural
transmission
infrastructure.”
language related to
microgrids.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The Platform was developed to allow RCEA to efficiently engage in regulatory and legislative development that will support RCEA’s ability to implement strategies in RePower Humboldt and achieve the objectives articulated in RCEA’s Mission Statement.

EQUITY IMPACTS
The Platform contains a section on “Environmental Justice” which includes “engag[ing] in policy that directly or indirectly impact the ability of rural, low-income, and underserved communities in the RCEA service territory to have affordable, reliable and clean energy.” This section also includes support for policies that “strengthen the resilience of vulnerable communities to adapt to the impacts of climate change” and “enable all communities […] to participate in the decarbonization of the state’s electrical grid, building stock, and the transportation sector in a cost-effective manner.”

FINANCIAL IMPACT
None.

STAFF RECOMMENDATIONS
Approve 2024 RCEA Policy Platform.

ATTACHMENTS
Redwood Coast Energy Authority Draft 2024 Policy Platform, clean and redlined. 19 This page
intentionally
left blank.
20 REDWOOD COAST ENERGY AUTHORITY
20243 POLICY PLATFORM

INTRODUCTION
Redwood Coast Energy Authority (“RCEA”) is a joint-powers authority of the cities of Arcata, Blue Lake, Eureka, Ferndale, Fortuna, Rio Dell, Trinidad, the Yurok Tribe, Blue Lake Rancheria, County of Humboldt, and the Humboldt Bay Municipal Water District. The mission of RCEA is to develop and implement sustainable energy initiatives which reduce energy demand, increase energy efficiency, and advance the use of clean, efficient, and renewable resources available in the region for the benefit of the Member agencies and their constituents.

This Policy Platform serves as a guide for regulatory and legislative engagement which is based on principles set forth in RCEA’s RePower Humboldt strategic plan. To review RCEA’s strategic plan, please see https://redwoodenergy.org/wp-content/uploads/2020/06/RePower-2019-Update-FINAL-.pdf This platform will be brought to the RCEA Board on an annual basis for review and input.

AVENUES AND EXAMPLES OF ADVOCACY
Legislation and regulation are two distinct, but related, policy tools. Legislation sets principles of public policy, while regulation implements these principles and brings legislation into effect.

Examples of RCEA legislative advocacy include submitting letters in support or opposition of specific bills, as well as meeting with legislators in the California State Senate, the California State Assembly, U.S.

House of Representatives, and U.S. Senate.

Most of RCEA’s regulatory engagement takes place through the California Public Utilities Commission (“CPUC”), the primary State agency responsible for executing legislation and issuing regulations pertinent to Community Choice Aggregation (“CCA”) operations. However, RCEA’s operations are also impacted by other state and federal agencies including but not limited to the California Energy Commission, the California Air Resources Board, the Federal Energy Regulatory Commission, and the federal Bureau of Ocean Energy Management. Each of these agencies develop and implement regulations that are of interest to RCEA. Examples of advocacy in this sphere include meeting with agency staff, agency decision-makers, and submitting comments in response to regulations. 21 PROCEDURES
Regulatory Engagement: RCEA regulatory engagement at the CPUC and other agencies is conducted at the staff level under the authority of the Executive Director in a manner consistent with RCEA’s mission, this policy platform, RCEA’s strategic plan, and any applicable RCEA policies.

Legislative Advocacy: The RCEA Executive Director, or their designee, is authorized to adopt positions on legislative matters in a timely manner without Board approval if the position is aligned with the issue areas described below.

Prior to adopting a legislative position, the Executive Director shall confer with the Board Chair and Vice-Chair on the matter. If both the Chair and Vice-Chair concur that the position is consistent with the Legislative Platform and/or the mission of RCEA then the Executive Director may take the position.

To keep the Board apprised of advocacy activities, staff will notify the full Board of any legislative positions taken by RCEA and deliver a quarterly report to the Board summarizing legislative engagement. Furthermore, this platform will be brought to the Board for review and input on an annual basis.

While the platform attempts to address a full range of issues of interest to RCEA, it is not intended to limit RCEA’s engagement in other issues that may impact RCEA in a positive or negative way. Issues not addressed in the platform will continue to be brought to the Board on a case-by-case basis.

ISSUE AREAS

1. Governance and Statutory Authority
RCEA will:
a. Oppose policies which that limit the local decision-making authority of local governments or CCAs, including rate-setting authority and procurement of energy and capacity to serve their customers.
b. Oppose policies which that limit RCEA’s ability to effectively serve its customers. c. Support efforts of CCAs to engage with their customers and promote transparency in their operations;. Similarly, RCEA will oppose policies which that restrict or limit these abilities. d. Support policies which that make it easier for other cities and counties to form a CCA, become members of RCEA or other CCAs, or expand the service area of an existing CCA, and oppose regulations and legislation which that restricts which that abilitythese abilities.

2. Restructuring the Electricity Utility Sector
RCEA will:
a. Support policies and advocate for reforms to the utility regulatory and business model to transform IOUs into entities that solely provide transmission and distribution services. 22 b.a. Support policies and advocate for reforms to the utility regulatory and business model to ensure Investor-Owned Utilities (IOUs) deliver greater benefits to ratepayers, increase safety and reliability, and reduce costs.
c.b. Support local governments’ ability to form municipal electric utilities, including supporting legislation which that expands opportunities for CCAs to become municipal electric utilities.
d.c. Advocate for greater collaboration to occur between CCAs, tribes, local governments, and incumbent IOUs, particularly in local planning efforts related to energy, EV charging, community resource centers, and customer programs.
e.d. Support efforts which that result in IOUs providing meter data in real time to enable CCAs to better forecast and schedule load.

3. Resource Adequacy
RCEA will:
a. Support the efforts of CalCCA to reform the Resource Adequacy program. b. Advocate for and support efforts to remove barriers to demand response, microgrids and behind the meter resources to provide Resource Adequacy or other demand-reduction value.

4.3.Power Cost Indifference Adjustment (PCIA)
RCEA will:
a. Support CalCCA efforts by the California Community Choice Association (CalCCA) to increase the transparency of IOU electricity contracts which that provide the basis for Power Cost Indifference Adjustment (PCIA) charges which RCEA (and its customers) and other CCAs must pay.
b. Support efforts which that create a pathway to wind downreduce and eventually phase out the PCIA.
c. Support policies which that would bring stability to the PCIA and/or provide new mechanisms for CCAs to securitize PCIA charges.
d. Oppose policies which that would increase or expand exit fees, including PCIA, on CCA customers.

5. Public Safety Power Shut-Offs (PSPS)
RCEA will:
a. Support policies which increase the notification and transparency requirements on IOUs as they implement a PSPS.
b. Support policies which create standards for PSPS implementation and penalties on IOUs which execute PSPS below those standards.
c. Support policies which create rules and procedures to ensure PSPS are implemented narrowly and only as absolutely necessary.
d. Support policies which require IOUs to notify impacted cities, counties, tribes, and CCAs of impending PSPS events.
23 6.4.COVID-19 ResponsePublic Health Emergency and Natural Disaster Response a. To the extent that it does not harmendanger RCEA’s financial health and standing, support regulatory policies, legislation, or budget appropriations to alleviate residential and commercial financial hardship caused by the COVID-19 pandemic public health emergencies or natural disasters that could disrupt electricity service to RCEA customers or restrict RCEA customers accessing clean energy opportunities. This could include, for example, assistance to avoid electric service disconnection or economic recovery funding for transportation electrification.

5. Reliability
RCEA will:
a. Support policies that reduce outage duration and frequency of power outages and increase compliance with electric system improve grid reliability targets. b. Public Safety Power Shut-Offs (PSPS)
i. Support policies whichthat increase the notification and transparency requirements on IOUs as they implement a PSPS.
ii. Support policies which that create standards for PSPS implementation and penalties on IOUs whichthat execute PSPS below those standards. iii. Support policies which that create rules and procedures to ensure PSPS are implemented narrowly and only as absolutely necessary.
c. that Resource Adequacy
i. Support the efforts of CalCCA to reform the Resource Adequacy program to improve electric system reliability at reasonable cost to ratepayers. ii. Advocate for and support efforts to remove barriers to demand response, microgrids and behind the meter resources to provide Resource Adequacy or other demand-reduction value.

7.6.Community Resilience
RCEA will:
a. Advocate for and support funding for programs implemented by local governments and CCAs to increase community resilience to wildfires, PSPS events and other potential service disruptions. b. Support policies which that reduce barriers to microgrid development by CCAs and other local entities including tribes and local governments.
c. Support policies that expand the ability of non-IOU entities to develop microgrids (e.g., ensuring CCA access to ratepayer funds to develop microgrids).
d. Support policies which that increase the development of community level resources and distributed energy resources which that reduce the need for new transmission and distribution infrastructure..
e.d.Where new transmission or distribution infrastructure is needed, support policies that design, upgrade, and scale such infrastructure to empower community members access to resources including but not limited to renewable energy, green transportation, and rural transmission infrastructure.

8.7.Climate Action
24 RCEA will:
a. Support policies that increase resources for climate change mitigation and adaptation and support initiatives that will strengthen climate change mitigation and adaptation efforts. b. Support policies that increase resources for climate change mitigation and support initiatives that will strengthen climate change mitigation efforts.

9.8.Renewable Energy Generation Sources
RCEA will:
a. Support policies which that expand opportunities for or reduce barriers to the development of renewable energy sources, including, but not limited to, wind, solar, bioenergy, battery storage, small hydro, and geothermal, as well as battery storage to enable use of these renewable resources, as long as local development and siting criteria are consistent with city and county land use authority, other local and state regulatory requirements, and informed by input from tribal governments.
b. Support policies which that expand opportunities for offshore wind, including investment in requisite infrastructure (e.g., harbor facilities and transmission) and workforce training necessary to support such development.
c. Oppose policies which that require CCAs to purchase specific renewable energy products, thus limiting the ability of CCAs to meet local energy needs in a cost-effective manner, and in conflict with their local procurement and rate setting authority.

10.9. Environmental Justice
RCEA will:
a. Engage in regulatory and legislative developments which that directly or indirectly impact the 25 ability of rural, low-income, and underserved communities in the RCEA service territory to have affordable, reliable, and clean energy.
b. Support policies which that strengthen the resilience of vulnerable communities to adapt to the impacts of climate change.
c. Support policies that enable all communities, including emerging and historically marginalized communities, and individuals, regardless of race, color, national origin, religion, sexual orientation, sex, gender identity, age, disability, or socioeconomic status, in California to participate in the decarbonization of the state’s electrical grid, building stock, and the transportation sector in a cost-effective manner.

11.10.RCEA Programs
a. Protect RCEA autonomy to administer programs, and support policies that expand opportunities for or reduce barriers to the development of RCEA programs including but not limited to:
i. Integrated demand side management (microgrids, distributed energy resources, demand response, energy efficiency, electrification, distributed generation and storage, vehicle-to-grid storage)
ii. Low-carbon transportation (advanced fuel deployment, fuel efficiency, fueling infrastructure)
iii. Energy generation and utility services (rates and tariffs, transmission and distribution infrastructure)

12.11.Local Economic Development and Environmental Objectives RCEA will:
a. Support policies which that enhance opportunities for local governments and CCAs to promote local economic and workforce development through locally designed programs which that meet the unique needs of its member agencies and customers. b. Support efforts to enhance development of local and regional sources of renewable energy. c. Support policies which that enable CCAs to collaborate with their member jurisdictions on local energy resources and projects to advance environmental objectives.

13.12.Direct Access/Electric Service Providers
RCEA will:
a. Oppose policies which that expand direct access or the ability or economic incentives for electric service providers to selectively recruit CCA or IOU customers. 26 REDWOOD COAST ENERGY AUTHORITY 2024

POLICY PLATFORM

Examples of advocacy in this sphere include meeting with agency staff, agency decision-makers, and submitting comments in response to regulations.
27 PROCEDURES
Regulatory Engagement: RCEA regulatory engagement at the CPUC and other agencies is conducted at the staff level under the authority of the Executive Director in a manner consistent with RCEA’s mission, this policy platform, RCEA’s strategic plan, and any applicable RCEA policies.

ISSUE AREAS

1. Governance and Statutory Authority
RCEA will:
a. Oppose policies that limit the local decision-making authority of local governments or CCAs, including rate-setting authority and procurement of energy and capacity to serve their customers.
b. Oppose policies that limit RCEA’s ability to effectively serve its customers. c. Support efforts of CCAs to engage with their customers and promote transparency in their operations; oppose policies that restrict or limit these abilities. d. Support policies that make it easier for other cities and counties to form a CCA, become members of RCEA or other CCAs, or expand the service area of an existing CCA, and oppose regulations and legislation that restrict these abilities.

2. Restructuring the Electric Utility Sector
RCEA will:
a. Support policies and advocate for reforms to the utility regulatory and business model to transform IOUs into entities that solely provide transmission and distribution services. b. Support policies and advocate for reforms to the utility regulatory and business model to ensure Investor-Owned Utilities (IOUs) deliver greater benefits to ratepayers, increase safety and reliability, and reduce costs.
c. Support local governments’ ability to form municipal electric utilities, including supporting legislation that expands opportunities for CCAs to become municipal electric utilities. d. Advocate for greater collaboration to occur between CCAs, tribes, local governments, and incumbent IOUs, particularly in local planning efforts related to energy, EV charging, community resource centers, and customer programs.
28 e. Support efforts that result in IOUs providing meter data in real time to enable CCAs to better forecast and schedule load.

3. Power Cost Indifference Adjustment (PCIA)
RCEA will:
a. Support efforts by the California Community Choice Association (CalCCA) to increase the transparency of IOU electricity contracts that provide the basis for Power Cost Indifference Adjustment (PCIA) charges which RCEA (and its customers) and other CCAs must pay. b. Support efforts that create a pathway to reduce and eventually phase out the PCIA. c. Support policies that would bring stability to the PCIA and/or provide new mechanisms for CCAs to securitize PCIA charges.
d. Oppose policies that would increase or expand exit fees, including PCIA, on CCA customers.

4. Public Health Emergency and Natural Disaster Response a. To the extent that it does not endanger RCEA’s financial health and standing, support regulatory policies, legislation, or budget appropriations to alleviate residential and commercial financial hardship caused public health emergencies or natural disasters that could disrupt electricity service to RCEA customers or restrict RCEA customers accessing clean energy opportunities. This could include, for example, assistance to avoid electric service disconnection or economic recovery funding for transportation electrification.

5. Reliability
RCEA will:
a. Support policies that reduce duration and frequency of power outages and improve grid reliability. b. Public Safety Power Shut-Offs (PSPS)
i. Support policies that increase the notification and transparency requirements on IOUs as they implement a PSPS.
ii. Support policies that create standards for PSPS implementation and penalties on IOUs that execute PSPS below those standards.
iii. Support policies that create rules and procedures to ensure PSPS are implemented narrowly and only as absolutely necessary.
c. Resource Adequacy
i. Support the efforts of CalCCA to reform the Resource Adequacy program to improve electric system reliability at reasonable cost to ratepayers. ii. Advocate for and support efforts to remove barriers to demand response, microgrids and behind the meter resources to provide Resource Adequacy or other demand-reduction value.

6. Community Resilience
RCEA will:
a. Advocate for and support funding for programs implemented by local governments and CCAs to increase community resilience to wildfires, PSPS events and other potential service disruptions. b. Support policies that reduce barriers to microgrid development by CCAs and other local entities including tribes and local governments.
c. Support policies that expand the ability of non-IOU entities to develop microgrids (e.g., ensuring CCA access to ratepayer funds to develop microgrids).
d. Support policies that increase the development of community level resources and distributed 29 energy resources that reduce the need for new transmission and distribution infrastructure.Where new transmission or distribution infrastructure is needed, support policies that design, upgrade, and scale such infrastructure to empower community members access to resources including but not limited to renewable energy, green transportation, and rural transmission infrastructure.

7. Climate Action
RCEA will:
a. Support policies that increase resources for climate change mitigation and adaptation and support initiatives that will strengthen climate change mitigation and adaptation efforts.

8. Renewable Energy Generation Sources
RCEA will:
a. Support policies that expand opportunities for or reduce barriers to the development of renewable energy sources, including, but not limited to, wind, solar, bioenergy, small hydro, and geothermal, as well as battery storage to enable use of these renewable resources, as long as local development and siting criteria are consistent with city and county land use authority, other local and state regulatory requirements, and informed by input from tribal governments. b. Support policies that expand opportunities for offshore wind, including investment in requisite infrastructure (e.g., harbor facilities and transmission) and workforce training necessary to support such development.
c. Oppose policies that require CCAs to purchase specific renewable energy products, thus limiting the ability of CCAs to meet local energy needs in a cost-effective manner, and in conflict with their local procurement and rate setting authority.

9. Environmental Justice
RCEA will:

Engage in regulatory and legislative developments that directly or indirectly impact the ability of rural, low-income, and underserved communities in the RCEA service territory to have affordable, reliable, and clean energy.
a. Support policies that strengthen the resilience of vulnerable communities to adapt to the impacts of climate change.
b. Support policies that enable all communities, including emerging and historically marginalized communities, and individuals, regardless of race, color, national origin, religion, sexual orientation, sex, gender identity, age, disability, or socioeconomic status, in California to participate in the decarbonization of the state’s electrical grid, building stock, and the transportation sector in a cost-effective manner.

10. RCEA Programs
a. Protect RCEA autonomy to administer programs, and support policies that expand opportunities for or reduce barriers to the development of RCEA programs including but not limited to:
i. Integrated demand side management (microgrids, distributed energy resources, demand response, energy efficiency, electrification, distributed generation and storage, vehicle-to-grid storage)
ii. Low-carbon transportation (advanced fuel deployment, fuel efficiency, fueling infrastructure)
30 iii. Energy generation and utility services (rates and tariffs, transmission and distribution infrastructure)

11. Local Economic Development and Environmental Objectives RCEA will:
a. Support policies that enhance opportunities for local governments and CCAs to promote local economic and workforce development through locally designed programs that meet the unique needs of its member agencies and customers.
b. Support efforts to enhance development of local and regional sources of renewable energy. c. Support policies that enable CCAs to collaborate with their member jurisdictions on local energy resources and projects to advance environmental objectives.

12. Direct Access/Electric Service Providers
RCEA will:
a. Oppose policies that expand direct access or the ability or economic incentives for electric service providers to selectively recruit CCA or IOU customers. 31 32

STAFF REPORT
Agenda Item # 4.5
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Lori Taketa, Clerk of the Board
Eileen Verbeck, Deputy Executive Director
SUBJECT: Community Advisory Committee At-Large Appointments

BACKGROUND
RCEA‘s Board established the Community Advisory Committee (CAC) to support RCEA public engagement efforts and provide decision-making support and input. In their advisory and outreach capacities, CAC members helped educate Humboldt County residents about community choice aggregation, gathered community energy priority input during the CCE program’s launch period and contributed time and effort towards other projects which are highlighted in the committee’s annual report.

Six of the CAC’s 15 seats will either expire on March 31, 2024, or are vacant. Four of these seats are filled through nominations for appointment by directors from member jurisdictions. The two at-large seats are filled through an open application process. Chair Schaefer and Directors Mobley, Arroyo and Jorgenson volunteered to serve on an ad hoc subcommittee at the February board meeting to review applications and nominate community members to fill the at-large seats.

SUMMARY
Expiring terms and vacancies are listed in red.

Representing Jurisdiction Member Name Term Expiration
At-Large Colin Fiske 3/31/2024
At-Large Larry Goldberg 3/31/2024
At-Large (New member agency seat) Emily Morris (resigning) 3/31/2024 At-Large (New member agency seat) Jeff Trirogoff 3/31/2024 Appointed Members
Arcata Norman Bell 3/31/2025
Blue Lake Kit Mann 3/31/2025
Blue Lake Rancheria New Seat 3/31/2026
County 1 Luna Latimer 3/31/2025
County 2 Christopher Honar 3/31/2025
County 3 Jerome Qiriazi (resigning) 3/31/2024
Eureka Deborah Dukes 3/31/2025
Ferndale Dennis Leonardi, Chair 3/31/2026
Fortuna Elizabeth Burks 3/31/2026
HBMWD Ethan Lawton 3/31/2026
33 Rio Dell Vacancy 3/31/2024
Trinidad Richard Johnson 3/31/2025
Yurok Tribe New Seat 3/31/2026
RCEA received six applications for the two available at-large appointments. The Board ad hoc subcommittee reviewed applications and have nominated candidates Colin Fiske and Pliny McCovey to fill the positions.

Director Ramos (Blue Lake Rancheria) nominated Michael Shackelford to the Community Advisory Committee for a term ending March 31, 2026.

Nominee Profiles
Colin Fiske (Arcata – At-Large Candidate) has served on the CAC for the past 6 years. He is an Arcata resident and has lived in Humboldt County for over 12 years. Mr. Fiske is the Executive Director and President of the Coalition for Responsible Transportation Priorities since 2015, serves on the City of Arcata Transactions and Use Tax Oversight Committee and has previously been affiliated with the North Coast Co-op, Humboldt Permaculture Guild and 350 Humboldt.

Pliny McCovey (Eureka– At-Large Candidate) is a first time CAC applicant and a Eureka resident. Mr. McCovey is the Special Projects Manger for the Westside Community Improvement Association, has over 20 years of experience working with Tribal governments and has worked at a non-profit community benefit organization for the last 3 years.

Michael Shackelford (Blue Lake) is a first time CAC nominee. Mr. Shackelford is a Blue Lake resident and works for Blue Lake Rancheria as a land conservation specialist. Mr. Shackelford serves on the Blue Lake Rancheria Tribal Council and is the President of the Blue Lake Rancheria Board of Education.

The nominees have been invited to attend this meeting and may be available to introduce themselves or answer questions from the Board.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The CAC’s work focus is to support RCEA public engagement efforts and provide decision-making support and input to the Board for the successful implementation of the agency’s work goals outlined in the RePower Humboldt strategic plan.

EQUITY IMPACTS
The CAC furthers implementation of RePower Humboldt strategic plan goals. Membership may help benefit underserved population segments, promote racially-diverse inclusion in energy infrastructure or policy decision making, access to energy, energy efficiency services and freedom from pollution. Staff recommends considering these goals as well as Committee member diversity and inclusion when appointing members to fill these vacancies.

FINANCIAL IMPACT
N/A.

STAFF RECOMMENDATION
34 Appoint Colin Fiske and Pliny McCovey to fill the two at-large Community Advisory Committee seats for two-year terms ending on March 31, 2026.

Appoint Michael Shackelford to the Community Advisory Committee Blue Lake Rancheria seat for a term ending March 31, 2026.

ATTACHMENTS
• CAC At-Large Candidate List
35 # Name Residency
Years in
Humboldt CAC Service Employer Community Involvement
1 Kevin Benjamin Eureka 22 N/A
Westside CommunityImprovement Association Jefferson School 2 Colin Fiske Arcata 12.5 6
Coalition for ResponsibleTransportation Priorities
City of Arcata Transactionsand Use Tax OversightCommittee, North Coast Co‐op, Humboldt PermacultureGuild, 350 Humboldt 3 Larry Goldberg Trinidad 40 6 Six Rivers Solar
Transition Humboldt. 350Humoldt, Rural Trinidad,
CERT
4 Pliny McCovey Eureka 4 N/A
Westside CommunityImprovement Association
Hoopa Tribe, Yurok Tribe,
WCIA, Job Market, VA
Waterfront Recovery
5 Wendy Ring Bayside 35 N/A Retired
Arcata Transportation
Safety Committee, Climate911, Climate Health Now,
350 Humboldt, Health
Professionals for Clean Airand Climate Action
6 Jeff Trirogoff Mckinleyville 4 2 The Pacific Companies North American BoardCertified EnergyProfessionals
2024 Community Advisory Committee At‐Large Candidates
36 STAFF REPORT
Agenda Item # 4.6
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Kristy Siino, HR Manager
SUBJECT: Account Services Manager Job Description Update

SUMMARY
The Account Services Manager position is expected to be vacant beginning July 1, 2024. The current job description has not been updated since 2017.

In anticipation of re-opening the position for recruitment, Human Resources has updated and clarified the duties of the Account Services Manager.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN AND POLICIES
The Account Services Manager assists in RCEA’s strategic goals of Regional Planning and Coordination, Power Resources, Utility Energy Services, and Rates and Tariffs, through education, excellent customer service, and data support.

EQUITY IMPACTS
Supports RCEA’s Racial Justice Plan actions directed at Energy justice; affordability; community engagement; and integrating equity actions in job descriptions and staff work plans.

FINANCIAL IMPACT
None.

RECOMMENDATION
Approve updated Account Services Manager job description.

ATTACHMENT
Proposed Account Services Manager Job Description (redline version) 37 Manager/Senior Manager – Power Resources

Page 1 of 3 ends

Manager/Senior Manager – Account Services
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; 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.

Summary
Under general supervision, Tthe Account Services Manager is acts as the lead customer care representative for RCEA’s Community Choice Energy (CCE) program, providing oversight for customer account management and, administering customer programsand billing and rate-setting operations under the general supervision of the Director of Power Resources. This position serves as the lead point of interactioncontact between RCEA, PG&E, and the data management and/or call center service provider(s) to identify and resolve issues related to RCEA and/or PG&E tariffs, program designs, customer debt collections, and business operations. In addition to administration of existing customer programs, this role may require modification and development of new programs to better serve customers. Thise Account Services Manager will also works directly with RCEA Community Choice Energy customers as an account manager for residential and non-residential accounts and provides data analysis support to RCEA’s Key Account Managers. The Account Services Manager collaborates with counterparts at other Community Choice Energy (CCE) programs across the state to identify and implement best practices. The Account Services Manager coordinates with RCEA’s regulatory and legislative staff on policy matters related to rates, tariffs, and customer billing. The Account Services Manager may also participate in community events, supervise assigned staff, and/or perform related tasks as needed.

Essential Functions and Responsibilities
Duties are illustrative and may vary. Other duties may be assigned. • Interface Serve as the main contact and maintain business relationships with RCEA’s billing support service provider call center and PG&E representative(s) to ensure consistent and effective interaction with customers.
• Supervise development and integration between RCEA and PG&E of programs and services including, but not limited to:
o Net Energy Metering and Net Billing Tariff
o Bill Designdesign
o Programs for customers with bill arrearages
o Budget Billing Plan
o Account-level opt-out
• AttendConduct and maintain an ‘Issues List’ for regular meetings with PG&E which thato address any deficiencies in the service PG&E provides to RCEA customerscustomer service needs of mutual interest to the two organizationsand collaborate to implement solutions to needs of shared interest..
• Process RCEA electric rate changes and oversee resulting rate change work products. 38 Manager/Senior Manager – Power Resources

Page 2 of 3 ends

• Work with PG&E to implement solutions to any deficiencies in the service PG&E provides to RCEA customerscustomer service needs of shared interest to the two organizations. • Track outstanding customer debt and report quarterly on customer debt; wWork with collections service provider(s) to collect on outstanding debt.
• Collaborate with statewide CCAsCommunity Choice Energy program staff to address shared issues and prepare for implementation of IOU account related activities. • Provide training and materials on RCEA operations to RCEA and PG&E staff as-needed. • Provide support to key account managers, including providing cost comparisons and program guidance.
•
• Identify and implement solutions to increase customer retention and customer satisfaction with RCEA services
Track opt-outs and respond to any customer issues that may be causing opt-outs; identify and implement solutions to increase customer retention and customer satisfaction with RCEA services Facilitate monthly debt risk management meetings and report quarterTrack outstanding customer debt and report quarterly on customer debt to the RCEA Rrisk management Tteam. •
• Facilitate submittal of Triannual Audit submittal to California Public Utilities CommissionPrepare and submit required requlatoryregulatory filings..
•
•
• Identify and resolve high-level customer billing issues. • Maintain rate models for cost comparison and other analytical purposes; provide data analysis support as needed.
•
• Provide data analysis support as needed.
• Track customer inquiries and ensure they are resolved in a timely manner by RCEA staff or partner organizations.
• Support the ongoing implementation of RCEA’s Racial Justice Plan and actively engage in justice, equity, diversity, and inclusion efforts within the organization.

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 energy management, engineering, public administration, business administration, finance, environmental sciences, or related field.
• A minimum 5 years (7 years for Senior Manager designation) of increasingly responsible project management experience at an electric utility, municipal utility, a community choice aggregator, or in a closely related field (public sector experience is strongly desired).

Knowledge preference forof of:
• Electric utility rules, tariffs, bill design and terminology • Electric utility rules, tariffs, bill design and terminology. • Data management; Data management;management.
• Research, communication, and reporting tools;tools.
• Principles and practices of customer energy management including solar and other renewable technologies, demand management, and energy conservation. • Current business software programs, including customer relationship management (CRM) systems, MS Office, and other analysis, program, and budget tracking tools.

Ability to:
39 Manager/Senior Manager – Power Resources

Page 3 of 3 ends

• Take responsibility and work independently, as well as coordinate collaborative efforts and achieve work goals with other staff.
• Convey complex information in a simple and understandable manner. • Provide accurate, timely, and meaningful progress updates. • Prepare high quality research, reports, and requests for proposals. • Perform quantitative data and statistical analysis (including Levelized Cost of Energy and Net Present Value) and effectively communicate results to others. • Effectively interpret and apply utility tariffs and rate schedules, contract language, and commercial agreements.
• Evaluate contractor performance and potential project opportunities, and project siting, permitting and interconnection issues.
• Exercise sound judgment, creative problem solving, effective dispute resolution, and commercial awareness.
• Establish and maintain effective working relationships with persons encountered during the performance of duties, including customers, contractors, developers, power brokersconsultants, commercial partners, RCEA staff, and the RCEA Board of Directors. • Understand, anticipate, and appreciate customer needs and concerns. • Provide excellent customer service and 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 pacedfast-paced dynamic environment.
• Work well under pressure.
• Be thorough and detail-oriented.
• Demonstrate patience, tact, teamwork, and commitment to superior service and performance. • Communicate effectively verbally, in writing, and through presentations.

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 and use of a computer. Acute hearing is required in supporting meetings and providing phone and in-person customer service. 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 are required.

Preferred Qualifications
• Master’s degree in a related field.
• Knowledge of RCEA programs.
• Prior experience working with public agencies and/or public utilities. • Knowledge of public agency contracting and grant management and public agency governance procedures.
• 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.
40 STAFF REPORT
Agenda Item # 4.7
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
SUBJECT: Regulatory and Legal Services Agreement with PefferLegal

BACKGROUND
In March 2022, RCEA filed a motion to form a new Regional Energy Network (REN) on behalf of itself and six partner organizations. RCEA issued a competitive solicitation for legal and regulatory services to support RCEA through the stakeholder process up until the CPUC’s issuance of a decision in 2023.

RCEA received proposals from two firms and both proposals were deemed responsive to the request in its entirety. Staff further evaluated the proposals on the following criteria:
• Prior experience in providing regulatory and legal services to Regional Energy Networks and government agencies comparable to RCEA,
• Qualifications of the firm and assigned staff, as well as the quality of management support,
• Cost and fees.

RCEA executed an attorney-client representation agreement with PefferLegal on November 2, 2022, which is set to expire on January 1, 2024.

SUMMARY
RCEA renewed the agreement with PefferLegal through Amendment No. 1 effective January 1, 2024 through December 31, 2026, or CPUC approval of the RuralREN portfolio application for years 2028-2031, whichever is later.

RCEA, with PefferLegal’s support filed a Petition for Modification (PFM) of CPUC’s Rural REN Decision D.23-06-055 on December 15, 2023. The PFM filings and responses are now complete and RCEA is in a waiting period until the CPUC makes a proposed decision.

Recently David Peffer reached out to RCEA staff questioning his ability to effectively represent RCEA in front of the CPUC based on differences between his strategies and the direction and feedback he was receiving from staff. Section 11 of the attorney-client 41 representation agreement between the Law Office of David Peffer (“PefferLegal”) and Redwood Coast Energy Authority states that, “Client may discharge PefferLegal at any time.” Staff recommends utilizing the waiting period to withdraw from this agreement with PefferLegal based on the concerns raised by David Peffer. Staff will use this time to re-evaluate RCEA’s legal needs in relation to RuralREN and will come back to the Board if additional legal services are required.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Not applicable.

EQUITY IMPACTS
Not applicable.

FINANCIAL IMPACT
There is no cost or penalty for RCEA to withdraw from the attorney-client representation agreement.

STAFF RECOMMENDATION
Authorize the Executive Director to Withdraw from Attorney-Client Representation Agreement Between Redwood Coast Energy Authority and Law Office of David Peffer, “PefferLegal.”

ATTACHMENTS
N/A
42 STAFF REPORT
Agenda Item # 6.1
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Jocelyn Gwynn, Senior Power Resources Manager Richard Engel, Director of Power Resources
SUBJECT: Sandrini Battery Energy Storage Service Agreement

BACKGROUND
In November 2023, the Board approved the second amendment to RCEA’s power purchase agreement (PPA) with EDP Renewables (EDPR) for Sandrini Sol 1, which amended the schedule, replacement product requirement and financial settlement point under the PPA.

Sandrini is a 100 MW solar plant that is currently under construction in Kern County and will meet roughly 35-45% of RCEA’s annual energy needs once operational. While the project has faced several delays, it is virtually fully constructed aside from its solar panels, which are expected to begin arriving at the site in the next few months. Sandrini solar is currently expected to commence commercial operations by October this year.

Several years ago, EDPR submitted an offer to staff for a battery energy storage system (BESS) to be co-located with Sandrini solar. The offer did not score well according to our solicitation evaluation criteria and thus did not advance to shortlisting. More recently, EDPR resubmitted their BESS offer under RCEA’s Mid-Term Reliability (MTR) Request for Offers (RFO) with more attractive terms, given the project’s advanced development stage as well as more favorable economics for energy storage with the passing of the Inflation Reduction Act and declining lithium costs. Staff brought the offer to the MTR RFO subcommittee who approved shortlisting the Sandrini storage project.

SUMMARY
Staff are seeking approval of the Energy Storage Service Agreement (ESSA) that has been negotiated with EDPR for the Sandrini storage project as well as a third amendment to the Sandrini Sol 1 PPA. Amending the PPA is necessary to incorporate certain terms regarding the energy storage project. The BESS would be co-located with the solar but would be electrically distinct and operated independently. However, the solar and storage facilities would interconnect to the grid at the same point, and thus would share certain infrastructure. EDPR has secured site control, interconnection approval and the discretionary use permit from Kern County for the Sandrini storage project.
43 The storage project would be a 92 MW / 368 MWh lithium-ion battery system with the capability of discharging for a four-hour duration. The expected commercial operation date for the storage would be January 2026, about fifteen months after Sandrini solar is expected to begin commercial operation. In exchange for a price that is fixed over time in cost per MW of storage capacity, RCEA would have full access to all battery services and benefits for the 15-year delivery term. The capacity would be eligible for the CPUC’s MTR procurement mandate, under which it could potentially contribute toward RCEA’s obligation to procure replacement capacity for the retiring Diablo Canyon Nuclear Power Plant.

It is anticipated that the BESS would typically be operated to charge during the day when solar energy is abundant, and discharge in the evening as the solar goes offline and the grid’s energy needs and prices rise. However, as more four-hour storage projects come into operation on the California grid over time, this operational strategy could change to include more frequent morning discharging and capture rate arbitrage value associated with providing energy when it is most valuable. Additionally, the storage facility will be able to provide ancillary grid services, so the operational strategy will seek to optimize these different revenue streams to the extent they cannot be captured simultaneously.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
By supporting grid decarbonization and efficient use of solar energy, the Sandrini BESS project indirectly supports the following RCEA Strategic Plan goals:
• 4.1.2 Minimize Greenhouse Gas Emissions Associated with RCEA’s CCE Program. • 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program. • 4.1.8.1 Support Utility Scale Solar Energy Development.

EQUITY IMPACTS
The Sandrini storage project is located in a Disadvantaged Community (DAC) according to the State’s SB 535 DAC Map, with a CalEnviroScreen 4.0 percentile score of 81. The project will be built under a Project Labor Agreement, which will bring new jobs and contribute to workforce development in Kern County. Additionally, EDPR has committed to providing a $250,000 community investment fund to be spent at RCEA’s discretion on activities related to workforce development, education or other community benefits for Humboldt and/or Kern Counties. The funds will be made available within a few months after the Sandrini storage project reaches commercial operation.

FINANCIAL IMPACT
Analysis by The Energy Authority shows the Sandrini BESS is expected to generate more revenue over the delivery term than RCEA’s costs under the contract, through provision of resource adequacy (RA), energy arbitrage revenue, and ancillary services value. The contract will also hedge against price risk associated with the volatile RA market by securing a large portion of RCEA’s RA procurement need at fixed price, or by allowing RCEA to resell any RA we do not need. These costs and revenues will be built into RCEA’s financial model and budget starting in fiscal year 2025-2026.
44 STAFF RECOMMENDATION
Approve Resolution 2024-3 Approving the Form of and Authorizing the Execution of the Energy Storage Service Agreement with Sandrini BESS Storage LLC and the Third Amendment to the Power Purchase Agreement with EDPR CA Solar Park II LLC.

ATTACHMENTS
Resolution 2024-3
Appendix A: Energy Storage Service Agreement with Sandrini BESS Storage LLC Appendix B: Third Amendment to the Power Purchase Agreement with EDPR CA Solar Park II LLC
45 This page
intentionally
left blank.
46 RESOLUTION NO. 2024-3

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE REDWOOD COAST ENERGY AUTHORITY

APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION OF

THE ENERGY STORAGE SERVICE AGREEMENT WITH SANDRINI BESS STORAGE LLC

AND THE THIRD AMENDMENT TO THE POWER PURCHASE AGREEMENT

WITH EDPR CA SOLAR PARK II LLC
WHEREAS, Redwood Coast Energy Authority (“RCEA”) entered into a Power Purchase Agreement with EDPR CA Solar Park II LLC (“EDPR”) on May 5, 2020, and amended such agreement effective June 24, 2022 and November 20, 2023 (“PPA”), for the Sandrini Sol 1 Solar Park (“Solar Project”) that will generate value for RCEA’s power portfolio and contribute to RCEA’s compliance with state procurement mandates; and
WHEREAS, RCEA and EDPR desire to enter into an additional agreement for the provision of energy storage services from a battery energy storage system co-located at the Solar Project site (“Storage Project”), as set forth in Appendix A (“ESSA”), which will add additional portfolio and compliance value to RCEA; and
WHEREAS, RCEA and EDPR desire to amend the PPA as set forth in Appendix B (“Amendment”) to incorporate necessary provisions related to the Storage Project, which will share certain grid interconnection infrastructure with the Solar Project despite being operated independently.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redwood Coast Energy Authority as follows:

1. The Sandrini Energy Storage Service Agreement between RCEA and EDPR is hereby approved.

2. The Third Amendment to the Sandrini Power Purchase Agreement between RCEA and EDPR is hereby approved.

3. The Executive Director is authorized to execute both the ESSA substantially in the form attached hereto as Appendix A and the Amendment substantially in the form attached hereto as Appendix B on behalf of RCEA, and, in consultation with legal counsel, is authorized to approve any needed future amendments to the ESSA so long as the term, volume, and price are not changed and the amendment does not fundamentally change the business terms of the Agreement or measurably increase risk exposure for RCEA.

Adopted this ____ day of _________________, 2024.

ATTEST:
______________________________ ____________________________ Sarah Schaefer, RCEA Board Chair Lori Taketa, Clerk of the Board Date: _________________________ Date: ________________________

CLERK'S CERTIFICATE
47 I hereby certify that the foregoing is a true and correct copy of Resolution No. 2024-3 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the ____ day of __________________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

Clerk of the Board, Redwood Coast Energy Authority
48 Appendix A: Energy Storage Service Agreement between RCEA and Sandrini BESS Storage LLC
49 Appendix B: Third Amendment to Power Purchase Agreement between RCEA and EDPR CA Solar Park II LLC
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Sandrini Energy Storage Service Agreement
RCEA Board of Directors Meeting
March 28, 2024
Procurement Objectives
• CPUC Mid-Term Reliability and Resource Adequacy
compliance
• Energy storage to
integrate with Sandrini
Solar
• Building a diversified
portfolio of clean capacity
to support grid reliability
@ 2024 EDP Renewables North America LLC. All Rights Reserved. 3/28/24
Redwood Coast Energy Authority Board Meeting
EDP Renewables North America
@ 2024 EDP Renewables North America LLC. All Rights Reserved. | 21
About EDP Renewables
EDPR NA is a wholly owned subsidiary of EDP Renewables (Euronext: EDPR), a global leader in the renewable energy sector.

EDPR is a global leader in renewable energy development with a presence in 28 regions in Europe, North America, South America and Asia-Pacific. With headquarters in Madrid and leading regional offices in Houston, São Paulo and Singapore, EDPR has a sound development portfolio of top-level assets and market-leading operating capacity in renewable energies.

Particularly worthy of note are onshore wind, distributed and large-scale solar, offshore wind (OW - through a 50/50 joint venture), and technologies to complement renewables such as storage and green hydrogen.

EDPR is a division of EDP (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. EDP – EDPR’s main shareholder – has been listed on the Dow Jones Index for 16 consecutive years, recently being named the most sustainable electricity company on the Index.

Bright Stalk Wind Farm | Chenoa, Illinois
@ 2024 EDP Renewables North America LLC. All Rights Reserved. @ 2024 EDP Renewables North America LLC. All Rights Reserved.

About EDP Renewables North America
EDP Renewables North America (EDPR NA) and its subsidiaries develop, construct, own, and operate wind farms and solar parks in North America.
| 22
• Ranked fifth in the U.S. in installed renewable energy capacity.
• 60 wind farms and 13 solar parks, totaling more than
9,100 MW of operating renewable energy projects.
• EDPR NA projects’ generation is equivalent to the
average consumption of 2+ million U.S. homes.
• Headquartered in Houston, Texas, with eight regional
offices across North America.

Prairie Queen Wind Farm | Moran, Kansas
@ 2024 EDP Renewables North America LLC. All Rights Reserved. @ 2024 EDP Renewables North America LLC. All Rights Reserved. 20+ Years of
experience
3,300+ Turbines in
operation
>247M Hours of
operational history
EDPR NA Footprint
EDPR NA projects represent
an estimated $15 billion in
capital investment.

EDPR NA projects have paid more than
$239 million to local governments
from 2020 through 2023.
@ 2024 EDP Renewables North America LLC. All Rights Reserved.

SAMPLE TITLE
Our technology

WIND SOLAR STORAGE
Current goal
1 GW capacity
by 2026
Project highlights:
• Scarlet Solar Energy Park | CA
• 200 MWac solar + lithium-ion
AC-coupled storage
• Estimated COD: Dec. 2024
in operation
13 solar parks
totaling
1,178 MW
in operation
60 wind farms
totaling
8,051 MW
Current goal

2.8+ GW
by 2026
Current goal

5.5+ GW
by 2026
EDPR NA intends to grow by approximately 2 GW every year through 2025.

Source: EDP Renewables Strategic Update 2021 - 2025
@ 2024 EDP Renewables North America LLC. All Rights Reserved.

Sandrini Battery Energy Storage
System (BESS)
FACILITY INFORMATION:
• Location: 20 miles south of Bakersfield, CA on
irrigated agricultural land. This site has been
under development since 2017 and is share with
Sandrini Solar Park.
• Nameplate Capacity: 92 MW/384 MWh (4-hour
duration)
• Term Length: 15 years
• Commercial Operation Date: December 31, 2025
• Land Control: 100% Site Control secured
• Interconnection: Project has an up-to-date Large
Generator Interconnection Agreement (LGIA),
though it is expected that another Material
Modification Request may be needed to update
BESS inverters, dependent on final design.
• Permitting: A Conditional Use Permit was
obtained for the Sandrini Solar + BESS Projects.

The Engineering, Procurement, and Construction
(EPC) contractor will be responsible for obtaining
building and grading permits.

SANDRINI SOLAR AND BESS:
• Sandrini Solar: Sandrini BESS is a 92 MW/384
MWh Battery Energy Storage System addition
to the 100 MW Sandrini Solar Project
• BESS interactions with Sandrini Solar: This
project will function as a collocated storage
addition meaning that the BESS will be able
to charge from both Sandrini Solar and the
grid, and will have a separate CAISO Resource
ID.
• Point of Interconnection: Sandrini BESS takes
advantage of the same Point of Interconnect
and LGIA as Sandrini Solar.
• Resource Adequacy: Sandrini BESS will
enable RCEA’s portion of the Sandrini Project
to take full advantage of its Full Capacity
Deliverability Status and secure another 92
MW of RA capacity before the 2026 MTR
deadline.
@ 2024 EDP Renewables North America LLC. All Rights Reserved.

SAMPLE TITLE Our Team
Kelly Snyder
Senior Director of Origination
[email protected]
Tim Mule
Associate Director of Development,
Western Region
[email protected]
Madison Novak
Development Project Manager
[email protected]
Liam Howell
Origination Analyst
[email protected]
Gabriel Yamal
Senior Director of Development,
Western Region
[email protected]
Chris Baxter
Director of Origination,
Central/West
[email protected]

STAFF REPORT
Agenda Item # 6.2
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
Juliette Bohn, Infrastructure Programs Manager
SUBJECT: Grid Resilience Innovation Partnership (GRIP) Program

BACKGROUND
The U.S. Department of Energy (DOE) Grid Resilience Innova�on Partnership (GRIP) program will provide funding to modernize the American electric grid and to maximize the benefits of the clean energy transi�on. The GRIP program is funded through the Infrastructure Investment and Jobs Act, more commonly known as the Bipar�san Infrastructure Law. DOE sees GRIP funding as a “down payment” on grid moderniza�on projects and expects a business model that shows how other public and private funds will be leveraged to complete the projects. DOE expects strong collabora�on between different types of en��es such as u�li�es, regulatory agencies, Tribes, community groups, and local government en��es. Community benefits planning is a mandatory part of all applica�ons.

Projects will be funded to address the urgent demands of aging infrastructure, increasing climate change-induced natural disasters, and a transition to clean energy generation sources.

DOE seeks projects that will also meet the following four priority objectives:
(1) support meaningful community and labor engagement,
(2) invest in the American workforce,
(3) advance diversity, equity, inclusion, and accessibility; and (4) 40% of the benefits flow to disadvantaged communities (the Justice40 Initiative).

The Yurok, Hoopa Valley, Karuk and Blue Lake Rancheria Tribes are seeking GRIP funds to develop a Tribally-led community microgrid to increase energy reliability and resilience in their service areas, called the Resilient Energy Networks Empowering World Renewal (RENEW) Project. The Schatz Energy Research Center will be providing technical assistance to support the RENEW Project. RCEA was asked to step in as the lead applicant for this RENEW Project to assist with the administration of the grant funds. RCEA will also contribute to the required 50% GRIP Project cost share requirement with eligible Regional Resilience Grant Program (RRGP) funds for the renewable energy systems to be installed at the fire stations within the Yurok, Hoopa, and Karuk Tribal lands.

Revised:

Memorandum of Agreement attachment available
Corrected draft application attached
171
RCEA submited the required GRIP program “Concept Paper” on January 12, 2024, which received DOE’s encouragement to develop a full applica�on. The full GRIP funding proposal is due April 17, 2024. The Project is es�mated to cost $160,000,000 and is an�cipated to be completed in 6 years.

SUMMARY
Four Tribes in Northern California -- the Hoopa Valley Tribe, Yurok Tribe, Karuk Tribe, and Blue Lake Rancheria Tribe are working towards a vision of energy sovereignty based on Tribally developed clean energy microgrids. As a step on the path towards a transformed regional energy system, the Parties are embarking on a project to support resilience within the Hoopa Valley Reservation, the Upriver portion of the Yurok Reservation, and the Karuk communities of Orleans and Somes Bar. These areas face significant barriers to decarbonization and clean energy deployment and suffer from very low electricity reliability. These areas are all served by the Pacific Gas and Electric (“PG&E”) Hoopa 1101 distribution circuit ("Circuit”). The Blue Lake Rancheria Tribe is not served by the Circuit, but rather has an existing microgrid and seeks additions to its microgrid capabilities and better support regional resilience through emergency response functions. The Blue Lake Rancheria Tribe is also willing to share their expertise with the other Tribal Parties in support of the 1101 Circuit upgrades.

The nested microgrids will also allow for energy market par�cipa�on during “blue sky” condi�ons, and stand-alone Tribal resilience during disasters or planned power shut-off events.

These systems, built and operated by Tribes in collabora�on with local partners, would deliver technology innova�ons, direct and sustained community benefits, and valuable business model advances. Suppor�ng these Tribal na�ons are the Schatz Energy Research Center, Redwood Coast Energy Authority, Pacific Gas and Electric Company, and other local partners.

The proposed Tribal community microgrid consists of a large microgrid located in Hoopa, CA connected to two smaller microgrids in the Yurok and Karuk Tribal lands. Addi�onally, the proposal includes 2 small low-impact hydroelectric sources. The Hoopa microgrid will be sized to power all three areas during “black sky” (grid outage) condi�ons, and the two smaller microgrids will provide power for their respec�ve service areas should they be cut off from the larger microgrid due to wildfires. Under blue sky condi�ons, the Tribes will be selling the energy services (power + Resource Adequacy) into the market to create a revenue stream that can be used to support local microgrid opera�ons and maintenance as well as other Tribal ini�a�ves.

Addi�onal expected benefits and goals of the proposed Project are to:
• Provide workforce development to ensure skilled community members are prepared to build and operate the Project,
• Increase energy access for each Tribal Party,
• Provide economic benefits and reduce energy burdens for Tribal communi�es, • Improve electricity reliability for each Tribal Party, • Advance self-sufficiency of electric services for each Tribal Party, and 172
• Support the sovereignty of the Tribal Par�es.

The RENEW Project team has developed a Memorandum of Agreement (MOA) to define each party’s roles and responsibili�es. This ini�al MOA pertains to the Applica�on phase only and has been reviewed by RCEA General Counsel. If selected for GRIP funding, the RENEW Project team will develop and enter separate agreements to address specific roles and responsibili�es as they apply to the different Project development phases.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The proposed RENEW Project supports the following RePower Goals:
• Goal # 1.1.3 Support Energy-sector Workforce Development. • Goal # 2.1.7 Support and Deploy Microgrids.
• Goal # 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program. • Goal # 4.1.7.3 Provide Feed-In-Tariff Power Procurement Program for Small Generators. • Goal # 4.1.8.2 Procure Local Solar Energy.
• Goal # 4.3.4 Provide Match Funding for State, Federal, and Foundation Energy Grants.

EQUITY IMPACTS
RCEA’s engagement in the RENEW Project furthers the following RCEA Racial Justice Plan initiatives:

External Partnerships and Programs

1. Tribal Engagement:
b) RCEA staff will continue and expand efforts to identify opportunities to collaborate with local Tribes as partners on sustainable energy initiatives.

3. Energy justice in power procurement and energy resource development:
a) RCEA staff will incorporate energy justice best practices and affordability into renewable development and power purchase solicitations and resource planning. b) RCEA will continue to include project location and community benefit in its evaluation criteria for power solicitations, in an effort to contract for projects that benefit racially diverse communities and to avoid projects that are detrimental to those communities.

FINANCIAL IMPACT
RCEA’s participation in RENEW Project will bring in funding for project administration and compliance oversight. RCEA’s contribution of cost-share (match) funding comes directly from California Office of Planning and Research Regional Resilience Grant Program grant dollars 173
allocated to the installation of renewable energy and battery storage projects at fire stations in the Yurok, Hoopa, Karuk, and Orleans areas. These funds will be spent as planned and will also help the GRIP project team to qualify for federal funds under the GRIP program. If awarded, the GRIP funding would be incorporated into the RCEA budget. There is no RCEA cost of participation apart from RCEA staff contributions to the GRIP application development.

STAFF RECOMMENDATION

1. Approve Memorandum of Agreement Between Redwood Coast Energy Authority, Blue Lake Rancheria Tribe, Hoopa Valley Tribe, Karuk Tribe, Yurok Tribe and the Cal Poly Humboldt Sponsored Programs Foundation on behalf of Schatz Energy Research Center (Schatz) to Engage in Activities Regarding the Funding and Coordination of the GRIP 2 Funding Application and Authorize the Executive Director to execute said Memorandum of Agreement.

2. Authorize Executive Director to Submit the GRIP 2 Funding Application for Approximately $80,000,000 in Federal Department of Energy Funding on Behalf of the Parties Listed in the MOA with RCEA Listed as the Lead Applicant.

ATTACHMENTS

1. Memorandum of Agreement for the Resilient Energy Networks Empowering World Renewal (RENEW) Project GRIP Application

2. Draft GRIP Application titled: Resilient Energy Networks Empowering World Renewal (RENEW)
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1 MEMORANDUM OF AGREEMENT
Between

BLUE LAKE RANCHERIA TRIBE

HOOPA VALLEY TRIBE

KARUK TRIBE

YUROK TRIBE

REDWOOD COAST ENERGY AUTHORITY
SCHATZ ENERGY RESEARCH CENTER at CAL POLY HUMBOLDT
To Engage in Activities Regarding the Funding and Coordination of Partners for COMMUNITY MICROGRIDS PROJECT:

GRIP 2 APPLICATION
This Memorandum of Agreement to Engage in Activities Regarding the Funding and Coordination of Partners for COMMUNITY MICROGRIDS PROJECT: GRIP 2 APPLICATION (“Agreement”) in entered into by and among the Blue Lake Rancheria Tribe, Hoopa Valley Tribe, acting through the Hoopa Valley Public Utilities District, Karuk Tribe, Yurok Tribe (collectively, “Tribal Parties”), Redwood Coast Energy Authority (“RCEA”), and the Cal Poly Humboldt Sponsored Programs Foundation on behalf of the Schatz Energy Research Center (“Schatz”) (each a “Party,” collectively “Parties”), with effective date (“Effective Date”) as set forth below in Article X .

BACKGROUND RECITALS AND SHARED GOALS
A. The Parties share a goal of supporting resilient and reliable access to electricity service for all people and building the necessary infrastructure and capacity for Tribal Parties to pursue their energy and community development goals. The status quo in many communities in our region is an unreliable electricity grid that is increasingly threatened by climate risks and mismanagement of land and legacy infrastructure. These shortcomings result in frequent, long, and disruptive power outages, community mistrust in the electricity system, justifiable reluctance to invest in electric vehicles and other clean energy technology that relies on the grid, frustrating miscommunication between communities and statewide grid operators, and an overall impingement on the energy sovereignty of the Tribal Parties. The Parties agree there is a need to address these shortcomings through the design, construction, and operation of resilient and reliable energy systems aligned with Tribal community goals. Transformation of the energy system will be strongest if the Parties pursue their own self-determined goals where appropriate and also collaborate in strategic areas with mutual benefit. This strategic collaboration is underway, with the Parties seeking opportunities to share resources and knowledge, build organizational capacity, strengthen regional coordination, and develop projects. 175
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2 B. As a step on the path towards a transformed regional energy system, the Parties are embarking on a project to support resilience within the Hoopa Valley Reservation, the Upriver portion of the Yurok Reservation, and the Karuk communities of Orleans and Somes Bar. These areas face significant barriers to decarbonization and clean energy deployment and suffer from very low electricity reliability. These areas are all served by the Pacific Gas and Electric (“PG&E”) Hoopa 1101 distribution circuit (the "Circuit” or “1101 Circuit”). The Blue Lake Rancheria Tribe is not served by the Circuit, but rather has an existing microgrid and seeks additions to its microgrid capabilities and better support of regional resilience through emergency response functions. The Blue Lake Rancheria Tribe is also willing to share their expertise with the other Tribal Parties in support of the 1101 Circuit upgrades.

C. It is the desire of all the Tribal Parties to cooperate in the acquisition of grant or other funding for the development and deployment of microgrids and/or other clean energy systems that significantly improve the 1101 Circuit performance, for development and deployment of Blue Lake Rancheria Tribe microgrid enhancements that will test and prove the necessary technology in advance of deployment on the Circuit, and for development and launch of a workforce development program and associated other community benefits and capacity building activities, described in Attachment A (the “Project”). Additional expected benefits and goals of Project implementation are:
• Provide workforce development to ensure skilled community members are prepared to build and operate the Project,
• Increase energy access for each Tribal Party,
• Provide economic benefits and reduce energy burdens for Tribal communities, • Improve electricity reliability for each Tribal Party, • Advance self-sufficiency of electric services for each Tribal Party, and • Support the sovereignty of the Tribal Parties.

D. Multiple sources of private and public funds will be required to achieve full Project completion. In response to Funding Availability Notice (“FOA”) DE-FOA-0003195 under the Grid Resilience and Innovation Partnerships Program (“GRIP”) issued by the United States Department of Energy GRIP Deployment Office (“GDO”) and Office of Clean Energy Demonstrations (“OCED”) (“GRIP 2 Program Funding”), RCEA submitted a Concept Paper on behalf of the Parties for GRIP Topic Area 3, Grid Innovation Program, seeking at least $70 million in federal grant funds in support of the Project. A complete application for GRIP 2 Program Funding, Topic Area 3, Grid Innovation Program must be submitted by April 17, 2024 (“GRIP 2 Application”). The GRIP 2 Program Funding will require a 50% cost share as described in the FOA (hereinafter “Match” which the parties understand to be a 1:1 match of GRIP 2 Program Funding to non-GRIP 2 Program Funding dollars).

E. The Parties intend this Agreement to set forth each of their respective roles and responsibilities concerning the preparation of the GRIP 2 Application, and to end upon either the successful receipt of GRIP 2 Program Funding, or rejection of the GRIP 2 Application. The Parties anticipate ongoing collaboration to expend the GRIP 2 Program Funding, if awarded, and to 176
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3 acquire additional funds in order to achieve successful Project completion. Additional collaborative efforts will be memorialized in future agreements.

NOW THEREFORE, in consideration of the promises, representations, and agreements set forth above and made a material part herein, the Parties agree to the following:

I. THE PARTIES
The following describes the Parties to this Agreement:

Blue Lake Rancheria Tribe (“BLR Tribe”), [for example: a federally recognized Tribal Nation, member of the RCEA, electricity service provided to customers on Reservation by RCEA through PG&E transmission lines, existing microgrid.] Hoopa Valley Tribe (“Hoopa Tribe”), a federally recognized Indian Tribe, who is partially served by RCEA through PG&E transmission lines, acting through the Hoopa Valley Public Utility District, a tribally owned and operated utility providing some electric and other utility services on the Reservation.

Karuk Tribe, a federally recognized Indian Tribe, who is partially served through RCEA through PG&E transmission lines, whose ancestral territory includes Orleans and Somes Bar in Humboldt County.

Yurok Tribe, a federally recognized Indian Tribe, who is partially served by RCEA through PG&E transmission and distribution lines. The Yurok Reservation extends from the mouth of the Klamath River to the village of Weitchpec, spanning one mile on either side of the River.

The Yurok Tribe’s Ancestral Lands include parts of Humboldt County.

RCEA, a joint powers authority organized and existing under the laws of California, and formed in 2003 to promote energy efficiency, conservation and increased local self-reliance.

RCEA additionally acts as the regional electricity generation service provider through a community choice aggregation (“CCA”) program, procuring energy to serve customer electric loads and providing power services using PG&E distribution facilities to over 64,000 customers throughout the jurisdiction of its member agencies, which consists of the entirety of Humboldt County and all or portions of the Reservations and ancestral lands of the Tribal Parties. RCEA is the owner and operator of the Redwood Coast Airport Microgrid, a utility-scale microgrid in the region.

Schatz is a research center located on the California Polytechnic University Humboldt campus, operating under the fiscal sponsorship of the Cal Poly Humboldt Sponsored Programs Foundation, a California non-profit corporation. Schatz is focused on addressing climate change and improving human and ecosystem health through work that supports clean energy, climate-resilience, equity, and justice. Schatz was the technical lead on design and installation the existing microgrid projects deployed by Blue Lake Rancheria and RCEA, described above. 177
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4 II. AGREEMENT STRUCTURE
A. Overview. This Agreement outlines the Parties’ responsibilities and memorializes their agreement on the activities that are to be executed as part of the acquisition for GRIP 2 Program Funding. This Agreement contemplates the future execution of additional agreements as follows:
• Subrecipient agreements between RCEA and each of the Tribal Parties and Schatz allowing RCEA to convey GRIP 2 Program Funding to each such Party; • One or more Participation Agreements, as defined herein, between RCEA and one or more of the Tribal Parties regarding GRIP 2 Program Funding Match requirements and GRIP 2 Program Funding budgetary allocations for shared Project components;
• One or more separate agreements between individual Parties and third parties as necessary for Project design, construction, ownership, operation, maintenance, upgrade, and other activities;
• One or more agreements between the Parties regarding collaboration on other funding opportunities for Project completion.

III. COMMITMENTS OF THE PARTIES
Each Party commits to undertake in good faith each of the following activities related to the Project:

A. To Collectively Develop GRIP 2 Program Grant Application for the Project. To express unified support for and to collectively develop the “GRIP 2 Application” for the Project. The Project shall include various clean energy systems to be proposed in the GRIP 2 Application or other grant proposals. The elements of the Project may contain solar systems, battery systems, hydroelectric systems, other clean energy generation systems, microgrid controllers, software, meters, interconnection equipment, engineering design work, technology research and development, workforce development efforts, community capacity building, testing and training centers, and other elements which support each of the Tribal Parties’ goals.

B. To Commit to Subsequent Agreements. In the event the GRIP 2 Application is granted, to commit resources to attempt to develop mutually agreeable documents and agreements regarding the implementation of the GRIP 2 Grant Agreement and the development, ownership, operation and maintenance of the funded Project for long term success.

C. To Commit to Pursuing Match Funds. To commit resources to identify and solicit other funding sources to fulfill the Match requirements of the GRIP 2 Program.

D. To Clarify the Role of RCEA. RCEA shall act as the administrative lead for the GRIP 2 Funding. The Tribal Parties and Schatz agree to work cooperatively with RCEA in the 178
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5 preparation and submission of the GRIP 2 Application, and in the event the GRIP 2 Application is awarded, to proceed as set forth herein. Nothing in this Agreement shall be construed to require RCEA to act in violation of law applicable to RCEA.

E. To Clarify the Role of Schatz. Schatz Energy Research Center at Cal Poly Humboldt has agreed to support the GRIP 2 Application development within the limits of the Schatz capacity constraints, including identification of funding opportunities, playing a project management role for GRIP 2 Application development, and providing technical leadership and other strategic assistance to support the proposal. Cal Poly Humboldt Sponsored Programs Foundation on behalf of the Schatz Energy Research Center will be a subrecipient for GRIP 2 Program Funding in the event the GRIP 2 Application is successful.

F. To Clarify the Role of the Blue Lake Rancheria Tribe. The Blue Lake Rancheria Tribe is not on the 1101 Circuit, and therefore not a beneficiary of the networked community microgrids portion of the Project. However, through upgrades to BLR Tribe’s existing microgrid, BLR Tribe will use its experience and technical expertise to investigate the feasibility of implementing technical innovations in the 1101 Circuit upgrades and microgrid deployment; and to train the Tribal Parties in the operation of microgrids.

G. To Clarify the Role of the Remaining Tribal Parties. The remaining Tribal Parties will each be a subrecipient of GRIP 2 Program Funding in the event the GRIP 2 Application is successful. The Tribal Parties will, through additional agreements committed to herein, work with the other Parties to implement the GRIP 2 Program Funding.

IV. GRIP 2 APPLICATION PREPARATION.

The following provisions shall apply beginning on the Effective Date of this Agreement and shall end upon the sooner of receipt of notification from the GDO rejecting the GRIP 2 Application, or, if the GRIP 2 Application is awarded, upon the complete execution of all GRIP 2 Program Funding subrecipient agreements and Participation Agreements:

A. The Parties will be in regular communication and cooperate to develop plans, partnerships, and proposals consistent with the shared vision and goals. These activities will include the following areas among others as needed:

1. Technology and infrastructure designs and preliminary plans consistent with Project goals

2. Interconnection planning with appropriate utility partners

3. Workforce development activities

4. Development of project labor plans and agreements with appropriate labor organizations

5. Development or engagement with Inter-Tribal and other regional organizations and networks necessary to support the goals of the Project
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6 B. RCEA shall be the lead applicant and primary recipient for the GRIP 2 Program Funding and shall be responsible for complying with all requirements of the lead applicant and primary GRIP 2 Program Funding recipient as provided in the terms and conditions of the grant award and agreement, the GRIP 2 Funding Opportunity Announcement (“FOA”), the OMB Uniform Guidance, other applicable laws, and this Agreement, where terms do not conflict with requirements of GRIP 2 Funding requirements. RCEA shall assume the following responsibilities:

1. Upon receiving express written consent from the Tribal Parties, submit the GRIP 2 Application, which has been reviewed and approved by the Tribal Parties promptly and in accordance with applicable laws and regulations;

2. Promptly include or relay all communications with the GDO to the other Parties;

1. Work diligently with all the Parties to amend, augment, or clarify the GRIP 2 Application as may be requested by GDO;

2. Draft the GRIP 2 Application such that RCEA shall be a pass-through entity as defined in 2 C.F.R. § 200.1 for those portions of the GRIP 2 Application for which the Tribal Parties and Schatz shall be subrecipients.

3. Draft the GRIP 2 Application such that it shall name each of the other Parties as a subrecipient, and shall propose to allocate subaward funds to each in proportion to the cost of design, engineering, construction, and other portions of the Project which are associated with each subaward.

C. All Parties.

1. The Parties shall develop a time schedule for completion of the GRIP 2 Application.

The time schedule may include regular meetings and/or dates for completion of specific tasks. Each Party agrees to cooperatively work with the others in a prompt and timely fashion to prepare and submit the GRIP 2 Application on the agreed upon time schedule. Cooperation shall include identifying representatives, assuring attendance at Proposal meetings, reviewing and commenting on documents, and considering final documents for submission. Parties shall assign sufficient staff to move draft documents through necessary internal approval processes.

2. The Parties shall cooperatively work together to identify sources of funds to fulfill the Match requirement of the FOA. Each Tribal Party’s source(s) of funds commitment shall be equal to one-half (1/2) of the amount of their respective proposed subaward and associated shared Project level costs adequate to fulfill the Match requirements as provided in the FOA and other applicable law. The source(s) of Match funding for each Party shall be included in one or more subsequent agreements with RCEA, to be executed prior to RCEA’s execution of the GRIP 2 Grant Agreement. Incorporating each Party’s source of GRIP 2 Program Funding Match into an executed Participation Agreement, or other agreement, is an express condition precedent to RCEA’s obligation to execute the GRIP 2 Grant Agreement.
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7 3. Each of the Parties shall communicate with appropriate external partners related to their areas of expertise. These partnership discussions could include technical planning, fundraising, capacity development, and other shared project priorities and activities. In these communications the Parties shall make good faith efforts to describe the goals and objectives of the project team, to include other Parties from the project team when appropriate, and not claim to represent another Party with respect to any legal, political, or other decision-making authority.

4. The Parties shall cooperatively work together to prepare plans and take actions consistent with successfully launching the Project, within the capacity of each Party.

These plans and actions could include workforce development activities, outreach to policymakers, development of regional coalition(s), and other activities as determined by the Parties.

V. GRIP 2 FUNDING AWARD
The following commitments shall apply upon notification of selection to award GRIP 2 Funding by GDO.

A. RCEA, as prospective awardee, shall assume the following responsibilities:

1. Promptly and diligently coordinate with the Parties to prepare for and attempt to successfully complete award negotiations with the U.S. Department of Energy with a goal of best meeting the Shared Vision of the Parties.

2. Promptly and diligently make all necessary arrangements to disburse subawards to the subrecipients in accordance with the terms and conditions of the award, FOA, the Participation Agreements (as outlined in Section C below), and other applicable laws and regulations.

3. In the event that the subaward of GRIP 2 Program Funds requires a determination of relative Project benefits, uses and/or entitlement to funds in a manner not specified in the GRIP 2 Application, RCEA shall make a reasonable decision regarding each subaward based on the Project costs in proportion to the cost of design, engineering, and construction of those portions of the Project which shall benefit each Tribal Party under the award, GDO award obligations and Tribal Parties’ input. To the extent feasible and allowable under law, RCEA shall seek the consent of any Tribal Party whose subaward is affected by a discretionary decision by RCEA. RCEA’s reasonable decision as to subawards shall be final. RCEA, as a pass-through entity, shall not seek to impose any additional subaward conditions or requirements, including but not limited to those found at 2 C.F.R. § 200.208, upon the Tribal Parties as subrecipients beyond those required by the terms and conditions of the grant award, the FOA, the OMB Uniform Guidance, and other applicable law. Unless required by GDO, RCEA shall not use monitoring tools to monitor the subrecipient activities of a Tribal Party subrecipient, including but not limited to those found at 2 C.F.R. § 200.332(e), except by express written consent of such Tribal Party subrecipient.
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8 4. Carry out all other responsibilities of the primary awardee provided in the grant award terms and conditions, FOA, this Agreement, or other applicable laws or regulations not here listed.

B. The Parties shall meet at the earliest possible time but no more than thirty (30) days following the award decision, and thereafter on a biweekly basis through the end of this Memorandum of Agreement, or on such other schedule as mutually agreed upon by the Parties, to discuss the following:

1. RCEA’s extended role in grant administration, including the Tribal Parties’ intention that RCEA be reasonably compensated for administrative time expended in fulfillment of its responsibilities with respect to the GRIP 2 Proposal in accordance with and subject to the conditions of the final approved grant budget.

2. Ownership, control, design, engineering, construction, operations, and maintenance of those portions of the Project which are not within the exterior boundaries of a reservation of any of the Tribal Parties or portions of the Project which are mutually agreed to be shared by the Tribal Parties;

3. Coordination with entities not party to this Agreement necessary to the achievement of the goals of the Project, which may include but are not limited to, Pacific Gas & Electric, the California Public Utilities Commission, the California Energy Commission, the United States Forest Service, United States Army Corps of Engineers, the United States Department of Interior Bureau of Indian Affairs, the Bureau of Land Management, the National Parks Service, California Department of Fish and Wildlife, Humboldt County, Del Norte County and any other necessary third parties;

4. Strategies for additional funding necessary or desirable to facilitate the realization of the Project.

5. Acquisition and administration of Match funds.

C. The Tribal Parties, either separately or collectively, shall negotiate in good faith with RCEA and each other to enter into one or more participation agreements (“Participation Agreements”). The scope of Participation Agreements is intended to address those portions of the Project not covered in a subaward agreement. Any such Participation Agreements shall be executed prior to execution of any subaward agreements. At the invitation of the Tribal Parties or RCEA, Schatz may participate in these negotiations. Each subawardee shall be responsible for procuring and administering, in accordance with the requirements of the grant award, the FOA, the OMB Uniform Guidance, and other applicable law, funds sufficient to meet Match requirements of their respective subawards. In some cases, this may result in a greater than one-to-one match for the purposes of fulfilling the Match requirement provided in the grant award and FOA.

D. The Parties shall collectively be responsible for procuring and administering, in accordance with the requirements of the grant award, the FOA, the OMB Uniform Guidance, and other applicable law, funds in an amount that are greater than or equal to a one to one Match of the Project expenditures such as RCEA’s administrative costs and other shared costs that 182
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9 fall outside the subawards provided in the grant award and FOA. The Parties agree to negotiate and collaborate in good faith to identify an equitable allocation of these Match responsibilities.

E. The Parties agree to develop a strategy to take advantage of any Elective Pay benefits under the Inflation Reduction Act of 2023 or similar laws, other funding opportunities, and other avenues to support the goals of the Project.

F. The Parties agree to negotiate in good faith a revision, update, or replacement to this MOA which will guide the Project collaboration after the GRIP 2 award and subawards are executed.

VI. COMMUNICATION
A. Regular Meetings. The Parties agree to meet regularly, no less than once per month, following the execution of this Agreement until the termination of the Agreement, or at an earlier time at the mutual agreement of the Parties.

B. Non-Party Communication Regarding the Project. Each Party shall make a reasonable effort to notify all other Parties when communicating with a non-party regarding the Project.

Each Party shall inform the other Parties regarding substantive communications with non-parties within a reasonable amount of time after any such communication, but in no case later than the next regular meeting of the Parties. Each Party agrees to represent the other Parties in communications with non-parties regarding the Project only to the extent authorized by this Agreement.

C. Points of Contact. The following persons shall serve as the Points of Contact (POC) for each Party:

1. Blue Lake Rancheria Tribe:

Heidi Moore-Guynup
Director, Tribal and Government Affairs

2. Hoopa Valley Tribe:

Linnea Jackson
General Manager, Hoopa Valley Public Utilities District

3. Karuk Tribe:
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10 Jack Lantz
Director of Public Works

4. Yurok Tribe:

Michael Gerace
Director, Planning and Community Development

5. Redwood Coast Energy Authority:

Eileen Verbeck
Deputy Executive Director

6. Schatz Energy Research Center at Cal Poly Humboldt
Peter Alstone
Faculty Scientist
VII. CONFIDENTIALITY
A. Confidential Information. From time to time, the Parties may have need to exchange confidential and/or proprietary information in furtherance of the purposes of this Agreement (“Confidential Information”). Such information may include, but is not limited to, matters regarding certain business initiatives, government initiations, operations, financial projections, marketing analyses, financial strategies and resources, reports and data, government/business plans, workforce development plans, draft grant proposals, draft project budgets, conceptual designs, engineering plans, and construction plans. The Parties agree to the following with respect to such confidential information.

B. Use of Confidential Information. The Parties shall keep all Confidential Information confidential and shall not disclose any Confidential Information to any other person without the prior written consent of the disclosing Party. If Confidential Information is required to be disclosed by act of law or judicial or other governmental action, the duty to maintain confidentiality of such information shall remain to the extent the disclosure is not subject to the law or specific disclosure demand.

C. Requests for Disclosure Pursuant to the California Public Records Act 184
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11 1. Each Party acknowledges that RCEA is a public agency subject to the requirements of the California Constitution, Article 1, Section 3 and the California Public Records Act (Government Code §§ 7920.00)

2. Each Party acknowledges that it may submit to or otherwise provide RCEA with access to materials that a Party considers Confidential Information, which may or may not be exempt from public disclosure under applicable California law.

3. Where any third party (the “Requestor”) not otherwise authorized to access Confidential Information under this Agreement makes a demand or request to RCEA for access to Confidential Information (the “Request”), RCEA will promptly notify the Parties of the Request before responding to the Requestor and indicate its preliminary analysis of whether the records requested are subject to or exempt from disclosure under the PRA. If the information demanded or requested affects more than one Party, then the affected Parties shall cooperate in their response, including engaging joint counsel if deemed advisable, and share such costs. In the event any Party disagrees with RCEA’s preliminary analysis, such Party shall be solely responsible for taking whatever legal steps such Party deems necessary to prevent release of information to the Requestor (including the release of such information by RCEA). Such Party is responsible for all costs associated with pursuit of any legal steps, including the pursuit of any legal remedies, subject to any sharing of costs in the case more than one Party is affected (e.g. retaining joint counsel).

4. Each Party understands and acknowledges that the California Public Records Act compels RCEA to respond to Requests within ten (10) calendar days of receipt of a Request (the “RCEA Deadline”). Where RCEA has met its obligation to timely notify the Parties as set forth in section 7.1.2 and a Party fails to notify RCEA that it will seek a protective order or other legal remedy to bar the disclosure of information that the Party considers Confidential Information prior to RCEA Deadline, RCEA may, without liability hereunder, disclose the Confidential Information that is necessary to be disclosed in response to the Request.

D. Exceptions. Notwithstanding the foregoing, “Confidential Information” shall exclude (and a receiving Party shall not be under any obligation to maintain in confidence) any information (or any portion thereof) disclosed by any Party to the extent that such information:

1. Is in the public domain at the time of disclosure by the disclosing Party; or

2. At the time of or following disclosure, becomes generally known or available through no act or omission on the part of any receiving Party; or

3. Is known, or becomes known, to the receiving Party from a third-party source that is not under an obligation to the disclosing Party to maintain confidentiality; or

4. Is independently developed by a Party without violating any of its obligations under this Agreement or any other agreement between the Parties; or 185
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12 5. Is permitted to be disclosed by a formal written agreement executed by and between the receiving Party(ies) and the disclosing Party; or

6. Was in the possession of the receiving Party prior to disclosure by the disclosing Party; or

7. Is required to be disclosed by law or regulation; provided that, to the extent practicable and legally permissible; the disclosing Party is given prompt notice of such required disclosure so that the disclosing may seek an injunction or other protective order.

E. Labeling Confidential Information. The Parties shall identify any Confidential Information provided in tangible or electronic form pursuant to this Agreement as “confidential”. If the disclosure is oral, the Confidential Information shall be identified as confidential at the time of disclosure. Notwithstanding the foregoing, the Parties shall treat all disclosures so identified as Confidential Information, whether the confidential status is indicated orally or in writing or by a context in which the disclosing Party reasonably communicated, or which the Parties should reasonably have understood that the disclosure should be treated as confidential, and whether or not the specific word “confidential” is used.

F. Disclosures. In the event of an unauthorized disclosure or loss of Confidential Information, the disclosing Party shall notify the other Party immediately when such disclosure or loss comes to its attention. Breach of this Agreement by a Party shall immediately entitle the other Party to commence an action to enjoin any threatened or impending disclosure or use of Confidential Information by the breaching Party or anyone acting through the breaching Party.

G. Returning and Deleting Confidential Information. In the event that a Party leaves this Agreement or the Agreement is terminated pursuant to the terms of this Agreement, all Parties shall promptly return all Confidential Information received and return or destroy any copies or summaries thereof or reports based thereon to the Parties which delivered the Confidential Information. The Parties’ obligations arising under this Agreement shall continue for a period of thirty-six (36) months following the termination of this Agreement.

H. Intellectual Property Rights. Nothing contained in this Agreement will be construed to grant or imply any right to any Party with respect to any intellectual property of any Party (whether or not copyrighted or patented), including any uses related thereto, and all Confidential Information is the sole property of the disclosing party. The analysis and work product hereunder is to be prepared for the exclusive use of the Parties and their designated agents. The Parties agree that all work prepared by them or their employees and agents in connection with the transactions that is subject to protection under copyright laws constitute “work for hire”, all copyrights to which belong to the Parties. Furthermore, such work products may not be reproduced or used for any other purpose without the express written consent of the Parties.

VIII. DISPUTE RESOLUTION
In the event of a dispute, the disputing Parties shall not take legal action without first carrying out the following escalation procedure:
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13 Step 1. The Points of Contact for the disputing Parties shall meet informally and attempt to resolve the dispute.

Step 2. If the dispute is not resolved, the Points of Contact for the disputing Parties shall inform their respective authorizing bodies of the dispute, and the authorizing bodies shall arrange a meeting to attempt to resolve the dispute.

Step 3. If the dispute is not resolved, the disputing Parties shall enter non-binding mediation with a third party to resolve the dispute. Each Party shall cover their respective costs of mediation. The disputing Parties shall agree upon a third-party mediator.

IX. AMENDMENT
This Agreement may not be modified or amended except by express written agreement of all of the Parties. Requests to modify this Agreement shall be sent in writing by the requesting Party to the other Parties at least thirty (30) days prior to the proposed date of modification.

X. EFFECTIVE DATE, TERMINATION
A. Effective Date. This Memorandum of Agreement shall be effective upon the last date of execution by duly authorized representatives of all of the Parties. This Agreement shall be effective to any additional Tribal Party upon its execution by a duly authorized representative.

B. Termination by a Party. Prior to RCEA executing the GRIP 2 Program Funding agreement with the DOE, any Party may terminate its participation in this Agreement upon express written notice to the other Parties. Termination by one Party shall not cause the Termination of the Agreement or affect the rights or responsibilities of the other Parties with respect to each other.

C. Termination by All the Parties. The Parties may terminate this Agreement by express written agreement of all the Parties.

D. Termination based on Funding Decision. This Memorandum of Agreement shall terminate upon the earlier of:

1. Notification by the GDO of rejection or non-selection of the GRIP 2 Application;

2. In the event of the notification by the GDO of selection of GRIP 2 Funding, completion of the execution of 1) all subawards, 2) all participation agreements, and 3) the GRIP 2 Grant Agreement.

E. Continuing Obligations. The obligations of Confidentiality shall survive for a period of 1 year after Termination by any Party. RCEA’s obligations under III.(D) shall survive until any award has been subawarded to the Tribal Parties of this Agreement have been executed. 187
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14 XI. SOVEREIGN IMMUNITY
Nothing in this Agreement shall be construed as a waiver of the sovereign immunity of the Blue Lake Rancheria Tribe, the Hoopa Valley Tribe, the Karuk Tribe, or the Yurok Tribe, or of the officers, employees, or agents thereof.

XII. TRANSFER, ASSIGNMENT, DELEGATION
No Party shall have the right to transfer, assign, or delegate any rights or responsibilities under this Agreement to another entity without the express written consent of all the Parties.

XIII. NO THIRD-PARTY RIGHTS
This Agreement creates enforceable obligations only between the Parties. Except as expressly provided herein, it is not intended nor shall it be construed to create any right of enforcement by or any duties or obligation in favor of persons or entities not a party to this Agreement.

XIV. NON-EXCLUSIVITY
Nothing in this Agreement shall be construed to constrain the Parties from or incur liability upon the Parties as a result of entering similar agreements or participating in similar activities or arrangements with each other, or with other public or private agencies, organizations, or entities.

XV. ORDER OF PRECEDENCE
To the extent any term of this Agreement is found to be in conflict with any provision of the grant award conditions, the FOA, the OMB Uniform Guidance, or other applicable law, such term of this Agreement shall be superseded by such provision and thereby have no legal effect upon the Parties.

XVI. SEVERABILITY
In case any one of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions shall not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be otherwise affected or impaired thereby.

XVII. COUNTERPARTS
This Agreement may be executed in one or more counterparts by the Parties, and, if executed in more than one counterpart, all such counterparts shall together constitute one and the same instrument.

XVIII. SIGNATURES
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Draft – Networked Community Microgrids MOA
Privileged and Confidential
15 This Agreement will become effective on the Effective Date set forth above.

BLUE LAKE RANCHERIA TRIBE
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________

HOOPA VALLEY TRIBE
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________

KARUK TRIBE
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________

YUROK TRIBE
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________

CAL POLY HUMBOLDT SPONSORED
PROGRAMS FOUNDATION on behalf of

SCHATZ ENERGY RESEARCH CENTER
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________

REDWOOD COAST ENERGY

AUTHORITY
__________________________________
Name:____________________________
Title:_____________________________
Date:_____________________________
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intentionally
left blank.
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Memorandum
Schatz Energy Research Center Cal Poly Humboldt 1 Harpst St. Arcata, CA 95521 (707) 826-4345 [email protected] www.schatzcenter.org Date: 3/26/2024
To: Eileen Verbeck, Acting Director, Redwood Coast Energy Authority From: David Carter PE, Principal Engineer, Schatz Energy Research Center Subject: GRIP 2 Proposal – RCEA Board Meeting Agenda Packet Materials This memo provides information to support the agenda item on the March 28 RCEA Board Agenda, which seeks approval for RCEA staff to submit a proposal to the US Department of Energy Grid Resilience Innovation and Partnerships Program (GRIP) to implement a project to modernizes the Hoopa 1101 electrical distribution circuit, which is one the least reliable circuits in PG&E’s service territory. The partners on the grant include the Hoopa Valley, Yurok, Karuk, and Blue Lake Rancheria Tribes, the Schatz Energy Research Center, and Pacific Gas & Electric.

The remainder of this memo provides information to support the Board’s decisions, including the following sections:
1) Description of RCEA Board Action Item,
2) Background Information,
3) Project Goals and Objectives,
4) Project Budget,
5) Project Schedule.

We will be present during the March 28th Board Meeting to answer any questions related to this agenda item. The remainder of this memo provides summary information about the project.

Description of RCEA Board Action Item
RCEA would be the lead applicant on the GRIP proposal to the US Department of Energy (DOE), and if awarded, as the prime Recipient, RCEA would enter award negotiations with the DOE. If those negotiations were successful, RCEA would enter into a cooperative agreement with the DOE. The Hoopa Valley, Yurok, Karuk, and Blue Lake Rancheria Tribes and the Schatz Energy Research Center would be sub-recipients under RCEA. PG&E would be providing cost share through the Community Microgrid Enablement Program.

The RCEA Board Action Item is to grant approval for RCEA staff to submit the grant to the DOE, which is due on April 17, 2024.

Background
The Hoopa Substation feeds a single distribution circuit (Hoopa 1101) that is one of the least reliable circuits in PG&E’s service territory. This circuit serves the Hoopa, Yurok, and Karuk Tribes and others who live along the Trinity and Klamath Rivers.

To solve this reliability problem, the Hoopa Valley, Yurok, Karuk, and Blue Lake Rancheria Tribes are working together with support from the Schatz Center, The Redwood Coast Energy Authority, and Pacific Gas & Electric to modernize the Hoopa 1101 circuit using microgrid technology that has been proven at the Blue Lake Rancheria microgrids and the Redwood Coast Airport Microgrid, and that is currently being deployed at the Cal Poly Humboldt Campus Microgrid.

The end goal is for the Hoopa Valley, Yurok, and Karuk Tribes to each own their Community Microgrid and operate them in a coordinated fashion to increase reliability and provide equitable revenue generation for each Tribe within the constraints of the circuit (it will only be able to transport a given about of power at a given time). PG&E would retain ownership and O&M responsibility over the circuit itself and the Tribes would each own and operate the electricity generation resources that provide backup power on undamaged sections of the PG&E circuit when there is an outage. It is possible that RCEA will purchase the energy generated by these local projects.

The Blue Lake Rancheria has been owning and operating microgrids since 2017 and are supporting the effort to improve the reliability on the Hoopa 1101 circuit as a technical assistance and knowledge transfer partner. The goal here is that the Blue Lake Rancheria Microgrids will be updated to achieve their goals, which include becoming a testing and training facility that members of the Hoopa Valley, Yurok, and Karuk Tribes (among others) can use to learn how to own and operate microgrid generation resources and equipment.

To support this work, the Schatz Center is leading the preparation of a proposal that covers all four Tribal Community Microgrids that will be submitted to the US Department of Energy under their Grid Resilience and Innovations Partnership Program (GRIP2), which is due on April 17, 2024. RCEA would be the lead applicant on this proposal, pending Board Approval.

Last year these same four Tribal Community Microgrids were included in a State-wide proposal to the same DOE program that was led by the California Energy Commission, but that proposal was not funded.

We are using work created during last year’s effort to complete the revised proposal this year.

The Schatz Center is also preparing three proposals, one each for the Hoopa Valley, Yurok, and Karuk Tribes, under PG&E’s Microgrid Incentive Program (MIP). These proposals, which are coordinated with and compliment the GRIP2 proposal as match funds, are due April 30, 2024. RCEA is not a party to these MIP grant applications.

Project Goals and Objectives
The goals of the project, as excerpted from the draft grant narrative, are: 1) To significantly improve the reliability of the Hoopa 1101 circuit using advanced distribution management systems and Tribally owned and operated Community Microgrids, 2) To further establish a robust inter-Tribal collaboration around Energy Justice and Sovereignty and workforce development, 3) To develop a replicable Tribally-centric business model and project development practices that can be shared broadly among Tribal nations and other Disadvantaged Communities, and 3) To safely (in a trauma-informed manner) onboard Tribal members into apprenticeship programs that have pathways to journeyman-level jobs where applicable, and/or technical certifications documenting competency in microgrid operations and maintenance work.

Per the draft grant narrative, the objectives of project with respect to the modernized Hoopa 1101 circuit are: 1) Operate automatically to coordinate equitable energy delivery to markets for the three Tribes within the constraints of the 200 amp circuit operating at 12,000 volts such that each Tribe can deliver up 192
to 13,200 MWh to the grid each year, 2) Reduce the Average Interruption Frequency Index, which is defined as the number of customer interruptions divided by the number of customers on the circuit (2086), from the 2022 value of 4.17 to less than 2.00 by 2030, and 3) Reduce the Average Interruption Duration Index, which is found by dividing the sum of all customer interruption minutes with the year by the number of customers, from the 2022 value of 1645 to less than 160 by 2030. This would reduce the average time without power for each of the 2086 customers from over 27 hours per year to less than 3 hours per year.

Per the draft grant narrative, the project objectives for the upgraded Blue Lake Rancheria Community Microgrid are: 1) Reduce the number of backup diesel startups (excluding exercising) from 10 per year to 1 per year by 2027, 2) Increase the electrical energy dispensed to vehicles from 5 MWh in 2023 to 50 MWh by 2030, and 3) Decrease the amount of electrical energy imported from the PG&E grid from 2000 MWh to 200 MWh per year.

Project Budget
The Tables 1 and 2 below show the draft budgets, that are still in the process of being finalized for the April 17th submission to the DOE.

Table 1: Overall Balance of Costs and Funding as of March 22, 2024- Work in Progress Table 2: Summary of Funding Sources as of March 22, 2024- Work in Progress 193
Project Schedule
The draft project schedule is shown in Table 3 below. The project is organized into four phases/budget periods. Each phase has a set of milestones that must be met for the project to proceed to the next phase.

Table 3: Draft Project Schedule by Task and Phase with Milestones 194
Tribal Energy Resilience and Sovereignty (TERAS)
Proposal to the US Department of Energy
Grid Resilience and Innovative Partnerships Program (DE-FOA-0003195) March 2024 Schatz Energy Research Center, Cal Poly Humboldt Presentation to RCEA Board
Presented by David Carter PE, Schatz Energy
Research Center
30 Contents
TERAS| March 2024
• Project Description
• Hoopa 1101 Reliability Issues
• Microgrids and Resilience
• Hoopa 1101 Networked Microgrids
• Goals
• Objectives
• Draft Budgets
• Schedule and Workplan
31 Project Description
• Project TERAS will build on the success of local microgrids to solve intractable reliability problems on the Hoopa 1101 circuit, which serves the Hoopa Valley, Yurok, and Karuk Tribes and other community members, while strengthening inter-Tribal coordination, knowledge transfer and skills development around energy resilience and sovereignty
• Partners: RCEA (Lead Applicant), Hoopa Valley, Yurok, Karuk, and Blue Lake Rancheria Tribes, Schatz Energy Research Center (Subrecipients), and PG&E
• Project Elements:
• Deploy three Tribally owned and operated community microgrids on the Hoopa 1101 circuit • Upgrade the Blue Lake Rancheria Microgrid
• Develop replicable, open-source designs, business models, and collaboration frameworks • Implement a Community Benefits Plan that results in well-supported pathways to Good Jobs for Tribal members, underrepresented workers, and others
Minor Subcontracts
TERAS| March 2024
Concept Paper was encouraged by the DOE and full application is due April 17, 2024 Hoopa 1101 Reliability Issues
Why TERAS? On the Hoopa 1101 circuit, outages are frequent due to inclement weather, storms, landslides, fires,
wildland fires, PSPS events, EPSS wildfire prevention
settings#, and other causes.

The circuit outage rate is many times the average
for PG&E territory*, and it is now among the least
reliable circuits on the system overall.

Branching from the substation in
Hoopa, the Hoopa 1101 circuit
serves the Hoopa Valley Tribe,
the Yurok Tribe, and the Karuk
Tribe.

The distribution and
transmission lines traverse
rugged, seismically active terrain
along the Trinity and Klamath
River Valleys
# PSPS: “Public Safety Power Shutoff” ; EPSS: “Enhanced Powerline Safety Settings”. Two types of utility power shutoff. PSPS is based on weather forecasts and EPSS based on sensitivity of lines to tree branch or other contact.
* Based on data from 2014 – 2018 showing 4x the average and more recent increased outages due to EPSS and PSPS events on top of the underlying deficiencies
Blue Lake Rancheria
TERAS| March 2024 32
Microgrids and Resilience
Microgrids integrate energy generation,
storage, isolation switches, and controls to
make a resilient system. Microgrids can run
independently from the utility grid when
needed, keeping power on for local loads
within the microgrid boundary.

Blue Lake Rancheria:

Campus-scale
microgrid, all behind one
campus electric meter.
(in operation since 2017)
Redwood Coast Airport:

Community-scale
microgrid serving 20
customers, connected thru
PG&E distribution circuits.
(in operation since 2022)
Blue Lake Rancheria:

Fueling station facility-scale microgrid
(in operation since 2020)
The scale of microgrids range from single facilities to campuses and communities. Proven local examples:

TERAS| March 2024 33
Microgrid “core zones” are the areas with the highest level of resilience. These zones can be isolated and operate independently using batteries and generation within them.

Microgrid “extended zones” are all of the areas within the Hoopa 1101 Circuit outside the core zones. These extended service areas will have better reliability than they currently do because they can be powered by adjacent microgrids as long as there is not a fault (like a tree on a power line) within the extended zone, but not as reliable as the core zones.

Hoopa 1101 Networked Microgrids
TERAS| March 2024 34
35 Goals

1. To significantly improve the reliability of the Hoopa 1101 circuit using advanced grid management technology and Tribally owned and operated Community Microgrids

2. To further establish a robust inter-Tribal collaboration around Energy Justice and Sovereignty and workforce development

3. To develop a replicable Tribally-centric business model and project development practices that can be shared broadly among Tribal nations and other Disadvantaged Communities

4. To onboard Tribal members into apprenticeship programs that have pathways to journeyman-level jobs where applicable, and/or technical certifications documenting competency in microgrid operations and maintenance work Minor Subcontracts
TERAS| March 2024
36 Objectives

1. Transform the Hoopa 1101 circuit from one of the least reliable circuits in PG&E service territory to one of the most advanced, reliable and decarbonized circuits of its type

2. Deploy automation to control the decarbonized Hoopa 1101 circuit to coordinate equitable energy delivery to markets for the Hoopa Valley, Yurok, and Karuk Tribes within the physical constraints of the circuit

3. Transform the Blue Lake Rancheria Microgrid to meet their 2030 energy goals, while also supporting of Objectives 1 and 2 through new testing and training features

4. Implement a comprehensive Community Benefits Plan that results in well-supported pathways for Tribal members and underrepresented workers to receive training and access to good jobs including union and non-union jobs in the trades, and microgrid operations and maintenance technical jobs
TERAS| March 2024
37 Draft Budgets
Minor Subcontracts
Vendor contracts
TERAS| March 2024
Summary of Estimated Costs and Funding
38 Draft Budgets
Minor Subcontracts
Vendor contracts
TERAS| March 2024
Summary of Funding Sources
39 Draft Schedule and Workplan
Minor Subcontracts
Vendor contracts
TERAS| March 2024
• If awarded, RCEA would negotiate a cooperative agreement with the DOE • If negotiations are successful, then Phase 1 would be funded by the DOE • End-of-phase milestones must be met for the project to proceed to the next phase Year
Calendar Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Budget Period 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 Phase
Task Task Description
1 Project Management and Planning
2 Major Contracting
3 Engineering Design
4 Interconnection and HIL Testing
5 Environmental Approvals
6 Major Procurement
7 Construction and Deployment
8 Document and Training
9 Commissioning
10 Measurement and Verification
Design Plans and Specifications Major Components Procured O&M Documentation Permission to Operate Major Contracts Signed Interconnection Agreements Signed Construction Complete Permission to Island Interconnection Applications Submitted Environmental Approvals in Hand Training Complete M&V Complete 2030
1) Design, Permitting, and Siting 4) Testing and Commissioning G/NG Milestones ->
2) Procurement and Acquisition 3) Construction and Deployment 2025 2026 2027 2028 2029
40 Q&A and Discussion
Redwood Coast Airport Renewable Energy Microgrid | January 2024 Thank You

STAFF REPORT
Agenda Item # 6.3
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Matthew Marshall, Executive Director
SUBJECT: Appoint Interim Executive Director and Provide Direction for Executive Director Recruitment

BACKGROUND
In February 2024, Executive Director Matthew Marshall announced his resignation effective March 31, 2024. The Executive Director is an important leadership role to RCEA, and with many on-going large-scale projects, Staff would like to support the Board as much as possible to minimize vacancy time.

In support of on-going operations, Staff believes it is beneficial that an Interim Executive Director be appointed during the recruitment process.

SUMMARY
Human Resources and Administrative Staff have identified the Executive Director position as one requiring extensive knowledge, strong leadership skills, and a dedication to public administration. Generally, recruitments for RCEA are handled “in-house” utilizing local job boards, business contacts, and industry mailing lists. Recruitment pools are usually robust but limited to the local population. In recognition of the unique aspects of the Executive Director role, HR and Administrative Staff are proposing to solicit quotes from qualified executive search firms to perform the Executive Director recruitment. The request for quotes will seek qualifications, pricing, and a timeline for completion of an executive search.

In addition to soliciting the assistance of a qualified recruitment firm, HR Staff is available to proceed with local “in-house” recruitment efforts, as directed by the Board.

Evaluation and Selection: Staff recommends the Board of Directors create an ad hoc subcommittee to approve a scope of work, review salary schedule of the Executive Director, review proposals and make a recommendation on an executive recruitment firm and salary schedule changes at the April Board of Directors meeting to execute a contract.

Staff is also recommending that the Board appoint Deputy Executive Director Eileen Verbeck to Interim Executive Director (compensated as stated in the February 22, 2024, Board meeting) effective April 1, 2024, and continuing until a new Executive Director begins employment.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA’s strategic goals will be incorporated in the request for quotes, scope of work and evaluation criteria.
195

EQUITY IMPACTS
As with all RCEA’s solicitations, staff will encourage respondents to the executive search firm solicitation who may qualify as a diverse business enterprise under the CPUC’s Supplier Diversity Program to sign up for certification through the program clearinghouse.

FINANCIAL IMPACT
Staff will come back to the Board for approval of a contract for executive recruitment and recommendations on salary schedule, and at that time will discuss the financial impact of the contract.

STAFF RECOMMENDATION

1. Approve Appointment of Deputy Executive Director Eileen Verbeck to Interim Executive Director, at Compensation Determined at the February 22, 2024, Board Meeting, Beginning April 1, 2024.

2. Authorize staff to solicit quotes from qualified executive search firms to perform the Executive Director recruitment.

3. Solicit Board of Director volunteers for an ad hoc Executive recruitment subcommittee.

4. Authorize the ad hoc Executive Director recruitment subcommittee to act as a review committee and authorize it to take the following actions: (i) approve scope of work, (ii) approve evaluation criteria, (iii) approve selected proposal based on the selection criteria to bring to the full Board for review and approval of resulting contract, (iv) review Executive Director salary schedule and make recommendations to the Board for any proposed changes.
196

STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: March 28, 2024
TO: Board of Directors
PREPARED BY: Richard Engel, Director of Power Resources SUBJECT: Biomass Emissions

BACKGROUND
RCEA has procured energy from HSC’s Scotia plant since launching our community choice energy (CCE) program in 2017. In the most recent power source reporting year (2022), RCEA procured 20.2% of its electricity for the CCE program’s base REpower portfolio from the Scotia plant. RCEA’s REpower+ 100% renewable “opt up” portfolio does not include biomass. Some environmental groups and community members have expressed objections to RCEA procuring power from HSC due to the greenhouse gases and criteria pollutants emitted.

At its February 2024 meeting, the RCEA Board asked staff to provide information on North Coast Unified Air Quality Management District’s (NCUAQMD) position on the regulatory compliance status of the Humboldt Sawmill Company (HSC) biomass plant in Scotia. The Board also asked to be informed of discussions on this topic by RCEA’s biomass technical advisory group (BTAG) and RCEA’s community advisory committee (CAC) that took place earlier this month.

RCEA has taken several actions in response to community concerns about emissions:
• A clause was included in RCEA’s power purchase agreement from the outset in 2017 allowing RCEA to terminate the agreement if HSC fails on a continuing basis to operate its plant in compliance with applicable laws (more on this below). • In updating its strategic plan in 2019, RCEA added several bioenergy-related strategies, including:
o establish BTAG (more details below)
o investigate of the impacts of biomass emissions (more details below) o plan for a long-term transition away from direct combustion of forest-derived biomass and toward lower-impact uses of biomass (more details below) • RCEA established the BTAG in 2023 with membership representing diverse stakeholders and convened meetings of the group to seek guidance on topics related to local biomass energy.
• Acting on the strategic plan goal to “investigate the impacts of biomass emissions,” RCEA staff with support from the North Coast Unified Air Quality Management District have begun to deploy ambient air quality sensors in the vicinity of the HSC plant and elsewhere. Data and findings from this project will be made public. 197
• Regarding “lower-impact uses of biomass,” RCEA engaged Humboldt State University’s (now Cal Poly Humboldt) senior capstone engineering class in 2020 to analyze alternative uses of local biomass; the class’s findings are now posted on RCEA’s website (https://redwoodenergy.org/power-resources/).
• RCEA entered into a memorandum of understanding (MOU) with HSC in 2021 under which HSC provides annual reporting to RCEA on its feedstock use and sources, power production, and emissions, as well as HSC’s efforts to investigate alternative uses for the residual material produced by its sawmill. The reports are made available to the BTAG and the CAC for review before being presented to the RCEA Board. • Members of RCEA’s Board of Directors and Community Advisory Committee have toured the HSC sawmill and power plant to better understand how these facilities are operated and how emissions are controlled.
• RCEA adjusted its premium REpower+ portfolio beginning in 2021 to exclude biomass; this portfolio which is available for an added cost of $0.01/kWh above RCEA’s base REpower portfolio (equivalent to about $5 per month for an average residential account) now includes only carbon-free renewable resources. If enough RCEA customers opted up to REpower+, RCEA’s need for biomass power in its portfolio could be substantially reduced.

SUMMARY
BTAG Discussion Summary
BTAG convened a meeting on March 1, with the following members in attendance in person or online:
• Dennis Leonardi, RCEA CAC and BTAG meeting facilitator • Dean Kerstetter, HSC
• Tom Wheeler, Environmental Protection Information Center • Yana Valachovic, UC Cooperative Extension
• Roberto Beltran, US Forest Service/Klamath National Forest • Daniel Chandler, 350 Humboldt
• Brian Wilson and Jason Davis, NCUAQMD
• Clarke Stevenson, The Watershed Center
• Kevin Fingerman, Cal Poly Humboldt
• Elishia Hayes, County of Humboldt Chief Administrative Officer (remotely, with Supervisor Rex Bohn listening in – Supervisor Bohn is not a BTAG member and Ms.

Hayes later clarified that he was present only because the two of them were traveling together at the time the meeting took place)
• Matthew Marshall, Eileen Verbeck, Richard Engel, Jocelyn Gwynn, Faith Carlson, and Joseph Sloan, RCEA staff
The BTAG meeting provided a forum for participants including RCEA staff to better understand how the NCUAQMD enforces air quality regulations, what measures HSC is taking to control or reduce its emissions, and where the environmental groups perceive shortcomings in air quality enforcement. RCEA staff gave a background presentation and asked the group to discuss the following:
198
• Emissions and operating permit status claims about the HSC plant from Humboldt Coalition for Clean Energy and 350 Humboldt
• Given that HSC/AQMD are not reporting non-compliance to RCEA, how proactive should RCEA be to determine if HSC is in “compliance with all applicable Laws as determined by the Governmental Authority charged with implementation and/or enforcement of the specific Law at issue”?
• In the event of contract termination, would the HSC plant keep producing power at current output?
• If the HSC plant were to reduce or cease operation, what would become of the biomass residues?
• If no alternative use of biomass residuals is feasible (for technical, economic, or permitting reasons), could lack of residual disposal options impact the viability of the local forest products industry? (Due to time constraints, this question was not addressed in the meeting)
Key takeaways from the BTAG discussion included:
• Per NCUAQMD staff, HSC is currently operating under a valid Title V operating permit, though they may be penalized for submitting their most recent renewal application later than required1

• NCUAQMD states that HSC is operating in compliance with air quality regulations. • NCUAQMD is working to complete testing of the plant’s emissions that, depending on findings, could lead to an assessment of actual health impacts from the plant’s operation. • HSC stated in the absence of a contract with RCEA, they would maintain operation and immediately begin selling power to PG&E.
• There is disagreement over whether HSC’s emissions are consistent with those of other comparable biomass plants in the state; there are some complexities to making such comparisons.
• There should be more discussion of how important RCEA’s local procurement goal is if cleaner non-local power is available.
• The BTAG asked to review the violation data from NCUAQMD and have NCUAQMD label the violations regarding severity.
• The BTAG did not come to an agreement on recommendations.

CAC Discussion Summary
At its March 12 meeting, the CAC heard presentations by:
• Wendy Ring, Humboldt Coalition for Clean Energy
• Richard Engel, RCEA, reporting on BTAG’s March 1 discussion on this issue • Dean Kerstetter, Humboldt Sawmill Company
• Yana Valachovic, Forest Advisor, UC Cooperative Extension in Humboldt & Del Norte Counties
• Brian Wilson, North Coast Unified Air Quality Management District. 1 NCUAQMD recently issued a press release clarifying a valid permit is in place, in response to claims to the contrary from environmental groups. EPIC followed up with a letter to NCUAQMD claiming that the Air District’s acceptance of a late permit application is not consistent with state and federal policies. 199
Dr. Ring provided information comparing the HSC plant’s emissions unfavorably with those from other power plants. She described negative health impacts associated with emissions from biomass plants. She provided two pages of air quality notices of violation from 2019 to the present day. She stated that HSC has made an unacceptable number of air quality violations, only some of which have been cited by NCUAQMD. She noted that by ending its biomass contract RCEA could reinvest the savings in cleaner energy alternatives.

Mr. Engel provided some background information on RCEA’s biomass procurement and reported on the BTAG discussion summarized above.

Mr. Kerstetter stated that the HSC plant is in regulatory compliance and has not hidden its compliance record. He characterized the notice of violation process as a means of communicating between HSC and the Air District to make corrections to plant operation and stay in compliance. He explained that the December 2022 earthquake damaged the plant, leading to a period of violations while repairs were made.

Ms. Valachovic stated that many forest-dependent communities are clamoring for biomass plants and other infrastructure to help maintain forest health. She noted that some claims about health impacts of biomass are extrapolated from studies in other locations that may not be applicable locally. She described biomass plants like HSC as one tool in the toolbox playing an essential role in forest stewardship.

Mr. Wilson described the NCUAQMD’s role. He stated how many notices of violation (NOV) have been issued and how many citizen complaints NCUAQMD has received in recent years from the Rio Dell/Scotia area. He noted that some NOVs are classified as EPA high priority violations that receive extra scrutiny. Mr. Wilson stated NCUAQMD does not have a protocol or directive for reporting violations to RCEA. He confirmed HSC turned in their permit renewal application late, which is deemed a violation but does not invalidate their permission to operate.

The CAC members each took a turn to ask clarifying questions of the panelists and hear their answers. Following this, a robust public comment session took place with in-person and online participation. In addition, a large number of written comments were received before, during, and after the meeting. Comments both opposed and supported continued biomass procurement.

Per the CAC’s charter, they are to seek consensus in making recommendations to the Board and, failing this, can take a vote requiring a 2/3 supermajority to pass on a recommendation. It was clear from discussion up to this point that the CAC members had differing views and would not reach consensus on making a recommendation to the Board on whether to seek to terminate RCEA’s biomass PPA.

A motion mas made and seconded to ask the Board to end the contract as soon as a viable long-term replacement contract can be negotiated. CAC members expressed hesitation to exit the contract with uncertainty about what alternatives could replace it; noted that the RCEA strategic plan calls for biomass procurement but also calls for planning to move away from biomass combustion; worried about the reputational harm to RCEA in procuring from a repeat violator of environmental regulations; stated that RCEA should not be responsible for helping a private company manage its waste; suggested that the community may have more leverage to move HSC toward cleaner operation with RCEA as local buyer of the biomass power; discussed 200
how the original decision to create RCEA’s CCE program was contingent on purchase of biomass power; proposed that biomass power is a suitable bridge resource until future resources like offshore wind become available; acknowledged that the plant would keep operating with a different buyer and less accountability to the community if RCEA stops buying HSC power; pointed out that the small number of customers who have opted up to biomass-free REpower+ may indicate limited community opposition to biomass power; and asked whether RCEA might work with HSC to significantly reduce their emissions per unit of energy produced.

The motion and vote results were as follows:

M/S: Qiriazi, Fiske: The Community Advisory Committee recommends that RCEA exit the Humboldt Sawmill Company power purchase agreement as soon as a viable long term replacement contract can be negotiated that allows RCEA meets its requirements.

The motion failed with the following roll call vote (5/6/2). Ayes: Dukes, Fiske, Honar, Morris, Qiriazi. Noes: Burks, Goldberg, Latimer, Lawton, Mann, Leonardi. Abstain: Bell, Trirogoff. Absent: Johnson.

An alternative motion was then made, with vote results as follows:

M/S: Bell, Trirogoff: The Community Advisory Committee recommends that RCEA terminate the Humboldt Sawmill Company biomass contract in 3 years unless HSC can terminate greenhouse gas production in the process.

The motion failed with the following roll call vote (5/7/1). Ayes: Bell, Dukes, Fiske, Morris, Trirogoff. Noes: Burks, Goldberg, Honar, Latimer, Lawton, Mann, Leonardi. Abstain:

Qiriazi. Absent: Johnson.

Board liaison Director Kris Mobley expressed appreciation for the CAC’s deliberations and asked staff to summarize the discussion for the Board. Another motion was made and seconded to reconvene the CAC to discuss an energy generation opportunity that was described in one of the meeting’s public comments, also failing to pass. In the end, CAC chair Dennis Leonardi gave direction to staff, in keeping with the CAC’s charter, to summarize the CAC’s discussion for the Board as requested by Director Mobley. Four CAC members agreed to review the staff summary; the review comments received are incorporated here.

PPA Terms Regarding Early Termination
Some concerned community stakeholders have pointed out language in the HSC-RCEA PPA they believe gives RCEA grounds for early termination due to HSC’s alleged non-compliance with air quality regulations:
“An ‘Event of Default’ shall mean…with respect to Seller as the Defaulting Party…[among other listed Events of Default] Seller’s failure to operate the Project in compliance with all applicable Laws as determined by the Governmental Authority charged with implementation and/or enforcement of the specific Law at issue… …If an Event of Default with respect to a Defaulting Party shall have occurred and is continuing, the other Party (“Non-Defaulting Party”) shall have the following rights: [PPA goes on to list steps for early termination of the agreement]” 201
Given NCUAQMD leadership’s statements in the BTAG and CAC meetings that HSC has a valid permit and is in regulatory compliance, staff and RCEA’s general counsel have determined that the above contract language does not currently provide RCEA grounds to terminate the contract early. Staff will continue to communicate with NCUAQMD staff on HSC’s compliance status and will revisit this conclusion with our legal counsel as needed.

Financial Implications of Early Termination
Community members have pointed out that terminating RCEA’s contract early might free up millions of dollars that could be reinvested in cleaner sources of energy. Staff asked our power portfolio management consultant The Energy Authority (TEA) to examine the net financial impact of early termination. TEA analyzed three hypothetical scenarios for replacing the power products RCEA procures through its PPA with HSC. In one scenario, RCEA procures a long-term contract for category 1 renewable energy certificates (RECs), the same category as the RECs provided by HSC. In the other scenarios, RCEA procures short-term RECs for several years until a long-term geothermal or solar-plus-storage project can be brought online.

In each of these scenarios, TEA calculated that RCEA would incur over $50 million in added costs over the remaining seven years in the HSC PPA, mainly due to penalties for a period of non-compliance with the State’s requirement for long-term renewable energy procurement, and the higher market cost of State-mandated purchase of generation capacity or resource adequacy (RA) relative to the RA RCEA currently procures through our HSC PPA.

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA’s procurement of biomass power supports the following RCEA Strategic Plan goals:
• 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program • 4.1.5 Ensure Diversity in Local Sources
• 4.1.11.2 Procure Local Biomass Energy
RCEA’s Strategic Plan also calls for RCEA to “Plan for a Long-Term Transition Away from Direct Combustion of Forest-Derived Biomass and Toward Lower-Impact Uses of this Material” (strategy 4.1.11.6). RCEA continues to engage with HSC on their exploration of alternative uses of their sawmill residuals through consultations under the 2021 RCEA-HSC MOU.

EQUITY IMPACTS
This topic may have equity implications to the extent that Rio Dell and Scotia residents are more impacted than other county residents by plant emissions for production of energy that is provided to the whole county.

FINANCIAL IMPACT
N/A – this item is informational only.

STAFF RECOMMENDATION
N/A – this item is informational only.

ATTACHMENTS
None
202
Discussion of HSC Biomass Plant Emissions
by RCEA’s Biomass Technical Advisory Group
Presentation to RCEA Board of Directors
March 28, 2024
Topics
• Why RCEA procures biomass
• Community concerns about biomass emissions
• Programmatic responses to biomass concerns from community • Recap of Biomass Technical Advisory Group’s March 1 discussion • Recap of Community Advisory Committee’s March 12 discussion • Contract terms regarding default and early termination • Financial analysis of alternatives by The Energy Authority • Staff and General Counsel analysis
Background: Why RCEA procures biomass power
• Biomass is considered renewable per State’s Renewables Portfolio Standard
• Biomass was the only existing utility-scale renewable resource available in 2017
• Development of other local renewables has seen challenges Background: Why RCEA procures biomass power
• Biomass helps RCEA to comply with SB 100 and SB 350
• Biomass helps to meet RCEA Board’s goal to procure local power • Biomass provides round-the-clock, all-season baseload power • RCEA’s biomass contract is market-competitive
Concerns from community members about HSC emissions
Claims include:
• Plant is operating on an expired permit
• Plant has had and continues to have numerous air quality violations • Greenhouse gas emissions from the plant are greater than other power plant types, including coal plants and other biomass plants in the state • Given the source of the plant’s feedstock, it does not play a role in mitigating wildfire or open pile burning, or in improving forest health • Other uses of the plant’s feedstock are viable and would result in lower emissions
RCEA has made program adjustments in response to
biomass concerns
• Contract termination clause for continuing failure to comply with laws • Updated (2019) strategic plan calls for creation of a biomass advisory group • RCEA and HSC have adopted a MOU to increase transparency • RCEA adjusted its REpower+ premium portfolio in 2021 to no longer include biomass
• With NCUAQMD support, RCEA has begun deploying ambient air quality sensors in the Scotia/Rio Dell area and elsewhere
RCEA Ambient Air Quality Monitoring Project
• “Citizen Science” activity to acquire more data and increase transparency. • Utilizing Purple Air sensors:
• Affordable
• Ease of Deployment
• Access to wider Data in the Purple Air Network
• Cooperation with NCUAQMD:
• Deployed new sensors allocated from CARB in Eureka, Ferndale, and Rio Dell. Continuing to deploy new sensors.
• New and existing sensors deployed by NCUAQMD accessible for our data/observations. (https://fire.airnow.gov)
• In process:
• Develop qualitative inquiry
• Public communication of project
• Integrate AQ data with wind and other environmental and topographic factors Past analysis and discussion
of RCEA’s biomass
procurement
https://redwoodenergy.org/power-resources/
Biomass Technical Advisory Group
Attendees (in person/online March 1, 2024)
• Dennis Leonardi, CAC chair and BTAG meeting facilitator • Brian Wilson and Jason Davis, North Coast Unified Air Quality Management District • Dean Kerstetter, Humboldt Sawmill Company
• Tom Wheeler, Environmental Protection Information Center • Yana Valachovic, UC Cooperative Extension
• Roberto Beltran, US Forest Service/Klamath National Forest • Daniel Chandler, 350 Humboldt
• Clarke Stevenson, The Watershed Center
• Kevin Fingerman, Cal Poly Humboldt
• Elishia Hayes, County of Humboldt Chief Administrative Officer • RCEA staff
BTAG Discussion
• Claims regarding HSC’s emissions from Humboldt Coalition for Clean Energy and 350 Humboldt
• How proactive should RCEA be to determine if HSC is in compliance with applicable laws?
• In the event of contract termination, would the HSC plant keep producing power at current output?
• If the HSC plant were to reduce or cease operation, what would become of the biomass residues?
BTAG Discussion Takeaways
• HSC is currently operating under a valid Title V operating permit from the NCUAQMD, though they may be penalized for submitting their renewal application later than required
• NCUAQMD states that HSC is operating in compliance.
• NCUAQMD is working to complete testing of the plant’s emissions that, depending on findings, could lead to an assessment of actual health impacts from the plant’s operation
BTAG Discussion Takeaways
• HSC stated in the absence of a contract with RCEA, they would maintain operation and immediately begin selling power to PG&E
• There is disagreement over whether HSC’s emissions are consistent with those of other comparable biomass plants in the state; there are some complexities to making such comparisons
• There should be more discussion of how important RCEA’s local procurement goal is if cleaner non-local power is available • The BTAG asked to review the violation data from NCUAQMD and have NCUAQMD label the violations regarding severity.
• The BTAG did not come to an agreement on recommendations.

CAC Biomass Discussion
Included presentations by:
• Wendy Ring, Humboldt Coalition for Clean Energy
• Richard Engel, RCEA, reporting on BTAG’s March 1 discussion on this issue
• Dean Kerstetter, Humboldt Sawmill Company
• Yana Valachovic, Forest Advisor, UC Cooperative Extension in Humboldt & Del Norte Counties
• Brian Wilson, North Coast Unified Air Quality Management District CAC Biomass Takeaways
• Numerous members of the public made comments
• The CAC discussed the topic and found no consensus on whether RCEA should continue to procure from HSC
• CAC members made multiple motions to recommend
terminating the biomass contract; none garnered a majority of CAC votes
• Staff were directed to report back to the Board
Financial Analysis – Terminate Contract
• The Energy Authority modeled 3 scenarios for replacing the HSC biomass contract with other renewable resources
• All of these scenarios would leave RCEA in worse financial position by $45M to $47M between 2024 and 2031 compared to keeping HSC contract* • Financial harm comes mainly from 1) penalties for temporary non-compliance and 2) increased cost for procuring required resource adequacy *Note: At the March 12 CAC meeting, staff mistakenly reported the cost impact would be $50M+; this first-round analysis did not project the annual inflation adjustment of the HSC contract price.

From Power Purchase Agreement between RCEA and HSC
“An ‘Event of Default’ shall mean…with respect to Seller as the Defaulting Party…[among other listed Events of Default] Seller’s failure to operate the Project in compliance with all applicable Laws as determined by the Governmental Authority charged with
implementation and/or enforcement of the specific Law at issue… …If an Event of Default with respect to a Defaulting Party shall have occurred and is continuing, the other Party (“Non-Defaulting Party”) shall have the following rights: [PPA goes on to list steps for early termination of the agreement]”
Staff and General Counsel Analysis of Contract Terms
• NCUAQMD leadership stated in the BTAG and CAC meetings that HSC has a valid permit and is in regulatory compliance,
• Based on this, staff and RCEA’s general counsel have determined that the contract language does not currently provide RCEA grounds to terminate the contract early.
• Staff will continue to communicate with NCUAQMD staff on HSC’s compliance status and will revisit this conclusion with legal counsel as needed.

Questions?
Fire and Smoke Map at https://fire.airnow.gov
Sensors deployed by RCEA
Rio Dell
Ferndale
Eureka

STAFF REPORT
Agenda Item # 8.1
AGENDA DATE: March 28, 2024
TO: Board of Directors
FROM: Matthew Marshall, Executive Director
SUBJECT: Executive Director’s Report

SUMMARY
Executive Director Matthew Marshall will provide updates on topics as needed.

RECOMMENDED ACTION
None. (Information only.)
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intentionally
left blank.
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Redwood Coast Energy Authority Board of DirectorsMarch 28, 2024

Redwood Coast Energy Authority Board of Directors
March 28, 2024