STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: September 26, 2024
TO: Board of Directors
PREPARED BY: Faith Carlson, Regulatory and Legislative Policy Manager Jocelyn Gwynn, Senior Power Resources Manager
SUBJECT: Request for Information in Response to CAISO Interconnection Process Enhancements
BACKGROUND
The California Independent System Operator (CAISO) manages the state’s transmission grid operation and planning. As part of planning, CAISO manages the interconnection queue, made up of new energy projects waiting to connect to the grid, batched by year in groups called “clusters.” CAISO has been reforming the interconnection process since 2023 through a stakeholder initiative called Interconnection Process Enhancements (IPE). IPE aims to accelerate interconnections by reducing the number of “phantom” projects in the queue, which CAISO has studied but which developers are not pursuing for one reason or another.
Under the former interconnection process, CAISO had some of the most flexible queue-entrance requirements in the nation. The process allowed projects without a location or even project design to remain in the queue. While this flexible process enabled California to transition to a more renewable grid faster than other states, CAISO’s interconnection applications have quadrupled, effectively immobilizing the process.
CAISO’s interconnection process reforms are going into effect with the current Queue Cluster
15. CAISO will consider the project region’s transmission capacity. • CAISO will score projects based on system need, project viability, and commercial interest to determine which will undergo interconnection studies.
Load-serving entities (LSEs) such as RCEA will weigh in on commercial interest, choosing projects whose output they might want to procure once the interconnection process is underway. LSE commercial interest points will give those projects a better chance of reaching the study phase and eventual grid interconnection.
SUMMARY
Staff seek Board approval to issue a Request for Information for CAISO Queue Cluster 15 Resources. The RFI is similar to past RCEA power solicitations. The attached proposed RFI Protocol lists full terms and conditions. Staff reviewed IPE solicitations by other LSEs and included some of their common features.
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Exclusivity: Queue Cluster 15 projects do not yet have the cost and schedule certainty RCEA staff needs to recommend projects to the Board for contract negotiation. Staff would require selected projects to enter a Commercial Interest Exclusivity Agreement with RCEA and post a deposit. In exchange, RCEA would award IPE commercial interest capacity points. This exclusivity agreement would keep developers from negotiating offtake with other buyers and would be in effect until the respondent is ready to negotiate a contract based on a binding project offer, which they would submit under a subsequent RCEA solicitation. RCEA would evaluate this offer alongside others. The deposit would be refundable under several conditions including if:
• RCEA elects not to shortlist the binding offer,
• CAISO does not select the project for interconnection study, or • RCEA terminates its RFI.
The respondent forfeits the deposit if they offer the project to another buyer, fail to submit the binding offer to RCEA’s subsequent solicitation, or fail to comply with the RFI terms and conditions or CAISO’s rules. Please see the proposed Commercial Interest Exclusivity Agreement terms (attached).
Eligibility: To be eligible for the RFI, respondents’ projects would need to meet the following criteria:
1) Be seeking interconnection in CAISO’s Queue Cluster 15 interconnection process, 2) Have secured most of their project footprint under lease, ownership, or some other form of site control, and
3) Be a renewable, carbon-free or energy storage technology project.
Evaluation: RCEA will evaluate responses according to the following weighted scoring criteria:
(This solicitation values price less because developers will not know interconnection costs.) • 40 – Development risk including interconnection, permitting, financing • 20 – Overall indicative price, portfolio fit, market value, compliance value • 20 – Respondent experience, qualifications, creditworthiness • 10 – Site-specific environmental impact
• 10 – Location and community benefit
Schedule: Staff expect to issue the solicitation within one week of Board approval. The Federal Energy Regulatory Commission (FERC) has been overseeing the interconnection reform process and is expected to approve CAISO’s IPE Proposal on October 1. The FERC may reject the LSE commercial interest component of the proposed scoring process. If this happens, staff will not issue the solicitation.
RFI Documents: Staff will issue standard forms with this solicitation in addition to the RFI Protocol and Commercial Interest Exclusivity Agreement. Staff are not asking the Board to review these as they do not contain RFI terms and conditions. • Appendix A Statement of Qualifications Form
• Appendix B Project Details Form
• Appendix C Indicative Pricing Form
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
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This new statewide process does not directly impact RCEA’s Strategic Plan. The RFI may make more viable, renewable resources available for contracting, which could contribute to the following 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 RFI will encourage potential respondents qualifying as a diverse business enterprise under the CPUC’s Supplier Diversity Program to sign up for certification.
Staff will ask respondents to report their project’s non-energy benefits to Disadvantaged Communities, labor and workforce, and community engagement. Staff will factor their answers into the response evaluation.
FINANCIAL IMPACT
This RFI will have no budgetary impact other than staff and legal counsel time to prepare and manage the solicitation. If RCEA selects projects to receive commercial interest capacity, they would post a deposit in the amount of $5 per kilowatt of capacity, which RCEA would hold for the term of the Commercial Interest Exclusivity Agreement.
STAFF RECOMMENDATION
Authorize issuance of the Request for Information for CAISO Queue Cluster 15 Resources in accordance with the terms and conditions of the attached RFI Protocol and Commercial Interest Exclusivity Agreement.
ATTACHMENTS
• RFI Protocol
• Commercial Interest Exclusivity Agreement
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1 RFI-24-402
REQUEST FOR INFORMATION
FOR
CAISO QUEUE CLUSTER 15 RESOURCES
Redwood Coast Energy Authority
www.RedwoodEnergy.org
Issuance: October 2, 2024
Responses Due: October 25, 2024 by 5:00pm PPT
to
[email protected]
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2 CONTENTS
1 Background & Objective.................................................................................................................... 3 2 Eligibility Specifications ..................................................................................................................... 4
2.1 Mandatory Criteria...................................................................................................................... 4
2.2 Preferred Criteria........................................................................................................................ 4 3 Submission Details............................................................................................................................. 4
3.1 Response Submittal Instructions ............................................................................................. 4
3.2 Solicitation Documents.............................................................................................................. 4
3.3 Submission Materials................................................................................................................. 5
3.4 Supplier Diversity and Labor Practices................................................................................... 6
3.5 Public Nature of Responses ..................................................................................................... 6
3.6 Questions About this Solicitation ............................................................................................. 6 4 Schedule.............................................................................................................................................. 7 5 Evaluation and Selection Process ................................................................................................... 7
5.1 Conformity Review..................................................................................................................... 7
5.2 Response Scoring...................................................................................................................... 7
5.3 Commercial Interest Capacity Award...................................................................................... 8
5.4 Respondent Communications .................................................................................................. 8
5.5 Disclaimers.................................................................................................................................. 8 155
3 1 BACKGROUND & OBJECTIVE
Redwood Coast Energy Authority (“RCEA”) is a local government Joint Powers Authority founded in 2003 whose members include the Blue Lake Rancheria, the Yurok Tribe, the County of Humboldt, the Cities of Arcata, Blue Lake, Eureka, Ferndale, Fortuna, Rio Dell, and Trinidad, the Humboldt Bay Municipal Water District. RCEA develops and implements sustainable energy initiatives that reduce energy demand, increase energy efficiency, and advance the use of clean, efficient and renewable resources. RCEA has been providing electric power generation service to its member jurisdictions as a community choice aggregator (“CCA”) since 2017, and thus is subject to the legislative, regulatory and market requirements imposed on load serving entities (“LSE”) within the state of California.
RCEA’s Board of Directors has set a goal to procure 100% carbon-free and renewable energy on an annual basis by 2026. Additionally, RCEA’s RePower Comprehensive Action Plan for Energy1 (“Strategic Plan”) calls for the development of new power resources within RCEA’s service area to achieve 100% local renewable energy by 2030. Pursuant to its Strategic Plan, RCEA strives to source as much of its power procurement from local projects as possible.
Through its Interconnection Process Enhancements Track 2 stakeholder process, the California Independent System Operator (“CAISO”) is planning to implement major reforms to its interconnection queue cluster study process, pending approval by the Federal Energy Regulatory Commission. The reforms are intended to reduce the number of non-viable projects in the interconnection queue and are expected to be implemented starting with Interconnection Queue Cluster 15 (“Cluster 15 Process”). Among the reforms is a scoring system that determines whether projects advance in the interconnection study process based on commercial interest, project viability, and system need. This scoring system allows LSEs, like RCEA, to express interest in specific projects by awarding them capacity that CAISO allocates to LSEs for commercial interest (“Commercial Interest Capacity”).
RCEA seeks information from qualified respondents for projects under development that 1) are requesting interconnection in the Cluster 15 Process, 2) have not yet received any Commercial Interest Capacity or need additional such capacity for their project to proceed in the interconnection process, and 3) can deliver renewable energy and flexible capacity to the grid in furtherance of RCEA’s contribution to California’s clean energy and reliability goals, as well as RCEA’s own Board-adopted goals, as described above. Respondents are asked to provide complete responses per the guidelines below. The results of this RFI may be used in whole or in part to determine how RCEA allocates its Commercial Interest Capacity to projects in the Cluster 15 Process.
1 https://redwoodenergy.org/wp-content/uploads/2020/06/RePower-2019-Update-FINAL-.pdf 156
4 2 ELIGIBILITY SPECIFICATIONS
2.1 MANDATORY CRITERIA
To be eligible for consideration under this RFI, responses must meet the following requirements:
Interconnection: The project is requesting interconnection in CAISO’s Cluster 15 Process.
Site Control: The project has secured at least 90% site control.
Technology Type: The project is categorized as one of the following resource types. i. PCC1 RPS-eligible generation;
ii. PCC1 RPS-eligible generation paired with energy storage; iii. Standalone energy storage; or
iv. Large hydropower carbon-free generation.
2.2 PREFERRED CRITERIA
Deliverability: RCEA prefers projects that are located in zones with Transmission Plan Deliverability capacity, are interconnecting at points with sufficient TPD capacity to accommodate the project, and that are seeking Full Capacity Deliverability Status (FCDS) in their interconnection process. Energy-only projects are eligible for this RFI, but are not preferred.
Size: RCEA serves an annual energy load of approximately 600 GWh and a peak demand of approximately 85 MW in the summer and 100 MW in the winter. Respondents are encouraged to scale their responses appropriately given RCEA’s size, and to provide indicative commercial terms for multiple offtake capacities.
Location: RCEA’s descending order of locational preference is as follows.
1. Humboldt Local Capacity Area
2. Trinity, Shasta, Tehama, Glenn, Lake, Mendocino or Sonoma Counties
3. Elsewhere in CAISO
3 SUBMISSION DETAILS
3.1 RESPONSE SUBMITTAL INSTRUCTIONS
Responses to this RFI are due by 5:00 p.m. PDT via email to [email protected]. The subject line of the email accompanying the response should include the phrase “RCEA 2024 QC-15 RFI”. RCEA encourages respondents to be clear and concise in their responses, while still providing enough detail for the review team to adequately evaluate the response.
3.2 SOLICITATION DOCUMENTS
The documents accompanying this solicitation protocol are as follows and are posted on RCEA’s contracting opportunities webpage: https://redwoodenergy.org/contracting/.
Respondents are responsible for familiarizing themselves with and being fully aware of the terms of this solicitation, including each appendix.
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5 • Appendix A Statement of Qualifications (SOQ) Form
• Appendix B Project Details Form
• Appendix C Indicative Pricing Form
• Appendix D Commercial Interest Exclusivity Agreement (not to be submitted with response – see Section 5.3)
3.3 SUBMISSION MATERIALS
Responses will be deemed complete if they include the following materials and are responsive to the instructions below. Submittals will be deemed conforming if they adhere to the mandatory criteria described in Section 2.1.
SOQ Form in PDF or Word format (Appendix A)
Project Details Form in PDF or Word format (Appendix B) Indicative Pricing Form in Excel format (Appendix C)
Project maps in PDF format
Statement of Qualifications Form
Respondents are required to submit a statement of qualifications substantially in the form of Appendix A. The respondent can use their own letterhead or standard template but must respond to all prompts in the order shown in the SOQ Form. Only submit one SOQ Form even if multiple projects are being submitted.
Project Details Form
Respondents are required to submit qualitative information about the submitted project(s) substantially in the form of Appendix B. The respondent can use their own letterhead or standard template but must respond to all prompts in the order shown in the Project Details Form. Please submit a separate Project Details Form for each project. If multiple unique responses are being submitted for the same facility (e.g. different term lengths or different MW capacities), only submit one Project Details Form for that project.
Indicative Pricing Form
RCEA understands that respondents will not be able to offer binding pricing in advance of receiving interconnection studies for their projects, and thus is seeking indicative pricing and commercial terms based on respondents’ best estimates at the time of responding to this RFI.
Then, respondents will have the opportunity to submit an updated offer to RCEA with revised pricing at a later date that will be binding, according to the process set forth in Section 5.3 and Appendix D.
Respondents are required to submit a single Indicative Pricing Form using the template provided as Appendix C for all projects being submitted for consideration. Follow the instructions in the Indicative Pricing Form and ensure that all required cells are filled in. If providing multiple responses, do not submit a separate Indicative Pricing Form for each individual project or unique configuration of terms. The instructions included in the template specify how multiple unique responses are to be submitted within one Pricing Form. 158
6 Project Map
Respondents are required to submit a map of each project they are submitting for consideration showing the site location and key project facilities. The map should include the project boundary, street names or highway names, latitude/longitude, and generation interconnect route from the facility to the first point of interconnection to the electric grid. The project boundaries should reflect the most recent information available.
3.4 SUPPLIER DIVERSITY AND LABOR PRACTICES
Consistent with the California Public Utilities Code and California Public Utilities Commission policy objectives, RCEA collects information regarding supplier diversity and labor practices from project developers and their subcontractors regarding past, current and/or planned efforts and policies. Respondents that are women, minority, LGBT, and disabled veteran-owned businesses are encouraged to apply for certification by the CPUC’s Supplier Diversity Clearinghouse Program2
. This certification is voluntary and will not be used as a criterion for evaluation. As required by law in California, RCEA as a public agency does not give preferential treatment based on race, sex, color, ethnicity, or national origin; providing such information as part of the response package will not impact the selection process or good standing of executed contracts.
3.5 PUBLIC NATURE OF RESPONSES
All responses to this RFI, as well as records of pre- and post-submittal communications with RCEA, will become the exclusive property of RCEA, subject to disclosure in accordance with the California Public Records Act (Cal. Government Code section 6250 et seq.). Respondents should limit submission of information or documents that they consider proprietary and that they would not want publicly disclosed and should clearly mark such information or documents as confidential. RCEA will consider limited requests for confidentiality on a case-by-case basis, provided that such requests are made at the time of response submission. All responses will be kept confidential until the RFI evaluation has concluded.
3.6 QUESTIONS ABOUT THIS SOLICITATION
All questions from potential respondents must be emailed to [email protected]. The subject line of the email should include the phrase “RCEA 2024 QC-15 RFI Questions.” Q&A responding to the questions received will be posted on the RCEA website by the deadline listed in the schedule. RCEA reserves the right to respond to no questions or only a subset of the questions received, or to provide consolidated responses to duplicative questions. RCEA will not hold a respondents’ webinar so written questions are the only method of obtaining clarifications regarding the RFI. It is incumbent on the respondent to understand how to provide the required information relevant to their project(s) in advance of the response deadline such that their submittal package is complete and conforming. 2 http://www.thesupplierclearinghouse.com/
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7 4 SCHEDULE
The following schedule is subject to change at any time during the solicitation process at the discretion of RCEA. Communications regarding schedule changes will be posted on RCEA’s website.
Step Date
Issuance of RFI October 2, 2024
Questions due October 9, 2024
Q&A posted on RCEA website October 16, 2024
Responses due October 25, 2024 5:00pm PPT
Evaluation of responses complete and respondents
notified
November 22, 2024
Exclusivity Agreement(s) executed and Reservation
Deposit(s) posted
November 29, 2024
RCEA will post Q&A and any addenda on its website: https://redwoodenergy.org/contracting/ 5 EVALUATION AND SELECTION PROCESS
An evaluation committee made up of RCEA staff and consultants will review responses to this RFI. In accordance with the following process, each response will be screened for completeness and scored on a weighted criteria basis.
5.1 CONFORMITY REVIEW
Responses will initially be screened by RCEA staff for timely submission, and for completeness and conformity with the mandatory criteria stated in Section 2.1 and the submittal requirements in Section 3. This screening will be on a pass/fail basis and incomplete or non-conforming responses may be rejected at RCEA’s discretion. Selected responses will then be provided to the evaluation committee for review.
5.2 RESPONSE SCORING
Evaluation will be based on, but not limited to, the weighted scoring criteria listed below.
Responses will be scored by each member of the evaluation committee on a scale of zero to five in each criterion with a five being the best score. A response’s total points will be calculated according to each criterion’s weight below and the average score assigned by the evaluation committee, out of a maximum of 100 points. One or more of the highest scoring responses may be selected for allocation of all or a portion of RCEA’s Commercial Interest Capacity, at RCEA’s discretion.
Weighted Scoring Criteria
40 – Development risk including interconnection, permitting, and financing 20 – Overall price, portfolio fit, market value and compliance value 20 – Respondent experience, qualifications, creditworthiness 10 – Site-specific environmental impact
10 – Location (see section 2.2) and community benefit
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8 5.3 COMMERCIAL INTEREST CAPACITY AWARD
Following the evaluation process, all respondents will be notified whether or not their project has been selected for award of RCEA’s Commercial Interest Capacity. At that time, successful respondents will be required to sign RCEA’s Commercial Interest Exclusivity Agreement (Appendix D), and within five (5) business days of execution submit a deposit in the amount of five dollars ($5.00) per kW-AC of Commercial Interest Capacity to be awarded (“Reservation Deposit”). Substantive changes to the Commercial Interest Exclusivity Agreement will not be considered by RCEA.
The Reservation Deposit is intended to secure the project capacity through the interconnection study process until the respondent has enough certainty of its interconnection costs to submit a binding offer to RCEA and contract based on the offered commercial terms. The Reservation Deposit must be in the form of cash, and the respondent is solely responsible for the cost of providing and maintaining such deposit until the Exclusivity Deadline, as defined in Appendix D.
Please refer to Appendix D for additional details regarding the Reservation Deposit including circumstances under which it will be returned or forfeited.
Following execution of a Commercial Interest Exclusivity Agreement, RCEA will award Commercial Interest Capacity to the associated project capacity in the Cluster 15 Process.
Once the project has received its Interconnection Facilities Study Report from CAISO, the respondent will be expected to submit revised pricing and terms (“Binding Offer”) to RCEA’s next power procurement solicitation (“Subsequent RFO”). RCEA shall notify the respondent upon issuance of the Subsequent RFO and details regarding how to submit the Binding Offer will be included in the associated RFO protocol. The Binding Offer will be evaluated alongside other offers submitted in the Subsequent RFO, according to the terms and conditions set forth in the associated RFO protocol. If the Binding Offer is shortlisted in the Subsequent RFO, RCEA will seek to negotiate a purchase agreement for offtake of the project or a portion thereof.
5.4 RESPONDENT COMMUNICATIONS
Questions, comments or feedback associated with this RFI must be sent electronically to [email protected]. The subject line of the email should include the phrase “RCEA 2024 QC-15 RFI Questions.” RCEA will not respond by other means to questions from respondents or prospective respondents on or before the submission due date. RCEA does not plan to interview respondents as part of this RFI, but reserves the right to conduct interviews following evaluation of the responses to clarify or obtain additional information.
5.5 DISCLAIMERS
By participating in RCEA’s RFI process, a respondent acknowledges that it has read, understands, and agrees to the terms and conditions set forth in the RFI protocol contained herein. RCEA reserves the right to reject any response that does not comply with the requirements identified herein, or to waive irregularities, if any in selecting a non-conforming response. RCEA further reserves the right to communicate with individual respondents to ask clarifying questions about their responses prior to determining whether to select a response for award of Commercial Interest Capacity. RCEA has no obligation and makes no commitment to (i) enter into a transaction with any respondent or (ii) be bound by any term proposed by the respondent. Furthermore, RCEA may, at its sole discretion and without notice, modify, suspend, 161
9 or terminate the RFI without liability to any organization or individual. Such modification or termination shall be made in the form of addenda to this solicitation posted on RCEA’s website.
This RFI does not constitute an offer to buy any products or create an obligation for RCEA to enter into an agreement with any party. RCEA shall not be responsible for any of the respondent’s costs incurred to prepare or submit a response, or for any other activity related to meeting the requirements established in this solicitation. All submittals shall become the property of RCEA and will not be returned.
The results of this RFI and the information provided therein may be shared by RCEA with other LSEs, but only with prior written approval from respondents whose responses RCEA wishes to share.
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www.redwoodenergy.org
633 3rd Street – Eureka, CA 95501
707.269.1700 (local) – 800.931-RCEA (toll-free) – 707.269.1777 (fax) [Date]
[Company]
Attention: [Contact]
[Department]
[Address]
Subject: Commercial Interest Exclusivity Agreement for [Project name] To Whom it May Concern,
Redwood Coast Energy Authority (“RCEA”) is pleased to confirm that the response (the “Response”) submitted by [Company] (“Respondent”) for the [Project name] project (“Project”) in RCEA’s 2024 California Independent System Operator (“CAISO”) Queue Cluster 15 Request for Information (“RFI”) has been selected for receipt of RCEA’s commercial interest capacity allocation from CAISO (“Commercial Interest Capacity”) in their Queue Cluster 15 interconnection study process (“Cluster 15 Process”). If Respondent wishes to accept the offered amount of RCEA’s Commercial Interest Capacity under the terms and conditions set forth in this agreement (the “Exclusivity Agreement”), please countersign where provided below no later than [Date] (the “Effective Date”).
Representations and Warranties
In accepting RCEA’s Commercial Interest Capacity, Respondent hereby makes the following representations and warranties:
(i) Respondent has not engaged and will not engage in oral, written, or any other form of communication with any other entity responding to RCEA’s RFI with respect to the terms of the Response or such other entities’ response(s) in the RFI; and
(ii) Respondent will promptly notify RCEA of any material change in circumstances that may affect the terms of the Response or Respondent’s withdrawal of the Response from RCEA’s RFI.
Respondent understands and agrees that any breach by Respondent of the above representations and warranties is grounds for immediate disqualification of Respondent from the RFI and forfeiture of the Reservation Deposit. 163
Exclusivity Terms
1. Respondent hereby grants RCEA exclusivity with respect to the Response beginning on the Effective Date of this Exclusivity Agreement and continuing until the earliest of the following events (the “Exclusivity Deadline”):
(i) Respondent’s written notice to RCEA that Respondent has withdrawn the Project from the Cluster 15 Process along with documentation evidencing such withdrawal;
(ii) RCEA’s written notice to Respondent that the RFI has been terminated; (iii) RCEA’s written notice to Respondent that Respondent’s Binding Offer (as defined below) has not been shortlisted in the Subsequent RFO (as defined below); (iv) Ninety (90) calendar days after the date of RCEA’s written notice to Respondent that Respondent’s Binding Offer has been shortlisted in the Subsequent RFO; or (v) Two (2) years after the Effective Date of this Exclusivity Agreement.
2. By mutual agreement, the Exclusivity Deadline may be extended by Respondent and RCEA pursuant to a written addendum to this Exclusivity Agreement.
3. Respondent agrees prior to the Exclusivity Deadline it shall not enter into any agreements nor otherwise discuss the sale of products from the Project, or portion thereof, associated with the Response with any third party.
4. RCEA agrees to award the Project Commercial Interest Capacity in the amount of ___ MW in CAISO’s Cluster 15 Process. Respondent agrees not to pursue Commercial Interest Capacity for the corresponding portion of the Project from any party other than RCEA.
5. Within five (5) business days of Respondent’s receipt of the Project’s Interconnection Facilities Study Report from CAISO, Respondent shall provide written notice to RCEA of such receipt. Respondent shall then submit a revised offer for the Project (“Binding Offer”) to RCEA’s next power procurement solicitation (“Subsequent RFO”). The Binding Offer shall be in the amount of MW equal to or greater than the amount of RCEA’s Commercial Interest Capacity award. RCEA agrees to notify the Respondent upon release of the Subsequent RFO. The Binding Offer will be evaluated by RCEA according to the terms and conditions set forth in the Subsequent RFO.
6. Respondent shall timely provide RCEA with notice of any assignment or a direct change of control of the Project or interconnection queue position. This Exclusivity Agreement is binding on the Parties’ successors and assignees.
Reservation Deposit
As a condition of RCEA’s obligations under this Exclusivity Agreement, Respondent agrees to provide RCEA with a deposit in the form of cash in the amount of [amount] dollars ($_____) (the “Reservation Deposit”) within five (5) business days of Respondent’s countersignature of this Exclusivity Agreement. The Reservation Deposit can be provided as a check mailed to the address below, or sent electronically (instructions to be provided by RCEA via email).
Redwood Coast Energy Authority
Attn: Lexie Perez
164
633 3rd St.
Eureka, CA 95501
The Reservation Deposit will be promptly returned to Respondent in its entirety upon the occurrence of one or more of the following conditions:
(i) The Federal Energy Regulatory Commission’s rejection of the LSE commercial interest scoring process in CAISO’s 2023 Interconnection Process Enhancement proposal.
(ii) Respondent’s written notice to RCEA that the Project will not be studied as part of the Cluster 15 Process through no fault or misrepresentation of Respondent, along with documentation from CAISO demonstrating such; (iii) Execution of a purchase contract under the Subsequent RFO pursuant to the Binding Offer, and Respondent’s provision of the required security in accordance with the terms of such agreement;
(iv) RCEA’s written notice of rejection of Respondent’s Binding Offer following Commercial Interest Capacity award;
(v) RCEA’s written notice that successful conclusion of purchase contract negotiation is not achievable, as determined by RCEA;
(vi) The Exclusivity Deadline occurs prior to CAISO’s issuance of the Project’s Phase II Study Results; or
(vii) RCEA termination of the RFI process.
Notwithstanding the foregoing, Respondent hereby acknowledges and agrees that Respondent will forfeit its Reservation Deposit and RCEA shall have the right to draw on the Reservation Deposit in its entirety upon any of the following occurrences:
(i) It is determined by RCEA that Respondent made any material misrepresentations in the Response;
(ii) Respondent fails to comply with the terms and conditions of this Exclusivity Agreement or the RFI;
(iii) Respondent’s Project is withdrawn from the Cluster 15 Process by CAISO due to Respondent’s failure to comply with the terms and conditions of the Cluster 15 Process or the CAISO Tariff;
(iv) Respondent unilaterally withdraws its Response from RCEA’s RFI or fails to timely submit a Binding Offer to the Subsequent RFO following RCEA’s commitment of its Commercial Interest Capacity in CAISO’s Cluster 15 Process; (v) Respondent assigns or completes a change in control of the Project or its interconnection queue position without notifying RCEA in writing; or (vi) Prior to the Exclusivity Deadline, Respondent enters into discussions with any third party under which such third party, or any of such third party’s affiliates 165
may agree, conditionally or unconditionally, to enter into a purchase contract for the capacity of the Project associated with the Response.
Respondent agrees that RCEA will not be obligated to enter into any transaction with Respondent until a final negotiated purchase contract has received approval from the RCEA Board of Directors, and been fully executed by the parties thereto.
The terms of this Exclusivity Agreement may be modified or waived only by a separate writing signed by each of the parties that expressly modifies or waives any such term.
IN NO EVENT SHALL EITHER PARTY, ITS AFFILIATES AND/OR REPRESENTATIVES
BE LIABLE FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER
CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, INDIRECT OR EXEMPLARY DAMAGES UNDER OR IN RESPECT TO THIS AGREEMENT.
Acknowledged and Agreed:
REDWOOD COAST ENERGY AUTHORITY
By: ____________________________
Name: __________________________
Title: ___________________________
[RESPONDENT]
By: ____________________________
Name: __________________________
Title: ___________________________
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Interconnection Process Enhancements
Request for Information
Presentation to RCEA Board of Directors
September 26, 2024
Faith Carlson, Regulatory & Legislative Policy Manager
Jocelyn Gwynn, Senior Power Resources Manager
Background
• California Independent System Operator (CAISO) manages queue for projects wanting to interconnect to the transmission grid
• Requirements to enter CAISO’s interconnection queue have been some of the most flexible in the nation
• Pro: More rapid renewable transition in CA than elsewhere • Con: Recent 4x increase in interconnection applications • Has led to CAISO initiating reforms through their annual “Interconnection Process Enhancements” initiative
• Goal: Accelerate interconnections by reducing the number of “phantom” projects in the queue, which take up capacity but are not being developed Background
CAISO’s Interconnection Proces Enhancements:
• Affect current Queue Cluster 15,
• Require that projects have site control to enter or stay in the queue,
• Study projects based on regional transmission capacity availability,
• Introduce scoring process that factors in commercial interest.
To be approved by FERC* Oct 1, 2024.
* Federal Energy Regulatory Commission, which has regulatory oversight over CAISO Request for Information Summary
Objective: to award RCEA’s Commercial Interest Capacity in CAISO’s Cluster 15 Interconnection Process
Project eligibility:
• Must be requesting interconnection in Cluster 15
• Must have 90% site control
• Renewable, carbon-free or energy storage
Preferences:
• Located in Humboldt or surrounding counties
• Sized to RCEA load
• Can deliver resource adequacy
Exclusivity
Proposed process under the Commercial Interest Exclusivity Agreement:
1. RCEA & Respondent execute exclusivity agreement for project
2. Respondent posts reservation deposit $5/kW
3. RCEA awards the project Commercial Interest Capacity in CAISO’s LSE scoring process
4. CAISO conducts interconnection studies
5. Respondent submits binding offer to RCEA in subsequent RFO
6. RCEA evaluates the offer alongside other submissions and either shortlists the project or releases it from exclusivity
Reservation Deposit
Returned If: FERC rejects CAISO proposal for LSE scoring process Project isn’t studied by CAISO
RCEA and respondent execute a purchase contract after the subsequent solicitation
RCEA doesn’t shortlist project in subsequent solicitation The parties can’t come to agreement on purchase contract terms after negotiating in good faith
Delays to the interconnection study process lapses two years and the parties don’t extend the exclusivity agreement
RCEA terminates the RFI
Reservation Deposit
Forfeited if: Material misrepresentations in response
Respondent violates terms of the exclusivity agreement, including offering the project to another buyer
Project is withdrawn from CAISO interconnection study process due to noncompliance
Project is withdrawn from RCEA’s RFI or fails to submit a binding offer to RCEA’s subsequent solicitation
Project ownership is transferred without notifying RCEA Evaluation
Weighted scoring criteria:
• 40 – Development risk including interconnection, permitting, financing
• 20 – Overall indicative price, portfolio fit, market value, compliance value
• 20 – Respondent experience, qualifications, creditworthiness • 10 – Site-specific environmental impact
• 10 – Location and community benefit
RFI Issuance
After FERC approval of CAISO proposal, anticipated October 1 Other RFI documents to be issued:
• Statement of qualifications form
• Project details form
• Indicative pricing form
STAFF REPORT
Agenda Item # 7.2
AGENDA DATE: September 26, 2024
TO: Board of Directors
PREPARED BY: Faith Carlson, Regulatory and Legislative Policy Manager Richard Engel, Director of Power Resources
SUBJECT: Diablo Canyon Power Plant Nuclear Allocations
BACKGROUND
Diablo Canyon Nuclear Power Plant Extension
Diablo Canyon Nuclear Power Plant (DCPP) was opened in 1985 and provides 10% of energy in the California grid.
1 In 2016, PG&E applied to retire the plant in 2025, citing increasing costs of operation. The California Public Utilities Commission (CPUC) approved this application in September of 2020.2
In August of 2020, one month prior to the approval of the retirement, a heat wave led to load spikes, and the state saw rolling outages due to insufficient reliability resources.3 In September of 2022, during another heat wave, policymakers became concerned that with DCPP replacement resources not yet online, the state could see an increase in future outages.
As a result, the California state legislature passed SB 846 (Dodd, 2022). SB 846 invalidates the CPUC’s approval to retire the plant and requires PG&E and state agencies “to take all actions necessary and prudent to extend Diablo Canyon powerplant operations.” As a result, the CPUC issued a decision in December of 2023 to extend operation of DCPP’s two generating units to 10/31/2029 and 10/31/2030.
4 Load Serving Entity (LSE) Allocation of Power
Redwood Coast Energy Authority, along with most other California electricity providers, automatically receive an allocation of the reliability benefits (a.k.a. resource adequacy or RA) from Diablo Canyon. Now that Diablo Canyon operation has been extended because its clean replacement resources were not added to the state’s grid as early as anticipated, there is an additional option to receive an allocation of the clean energy attributes alongside those already received reliability benefits associated with the plant. Once the CPUC announces final allocation amounts, each LSE will have 30 days to accept or reject their allocation.
RCEA's customers, like all other electricity users served by providers subject to California Public Utilities Commission regulation, are required to pay a portion of the costs of operating this 1 See PG&E Nuclear Power (pge.com) 2 CPUC Decision Approving Retirement of Diablo Canyon Nuclear Power Plant 205090240.PDF (ca.gov) 3 CAISO, CPUC, CEC Issue Final Report on Causes of August 2020 Rotating Outages 4 Decision Implementing Senate Bill 846 499622197.PDF (ca.gov) 167
nuclear plant, which is deemed by the CPUC an important resource for grid reliability in California over the next several years. The funds will be collected through future electric bills.
These ratepayers may receive a share of this carbon-free energy that they have funded.
Each electricity provider can choose whether or not to accept their proportional allocation of the clean energy attribute. Some providers choose to accept the allocation since their customers are already paying for it, and accepting it does not result in additional nuclear power generation or development. In addition, the costs of other carbon-free resources such as large hydropower or renewable energy certificates from sources such as wind, solar, and geothermal power have increased sharply in the past couple of years, making the nuclear allocation more attractive financially as a means of reducing the greenhouse gas emissions associated with a provider's power portfolio.
In prior years, RCEA has been offered separate allocations of nuclear and hydropower carbon-free energy from PG&E’s portfolio paid for by RCEA’s customers through the power charge indifference adjustment (PCIA) line item on their bills. To date, RCEA has rejected its nuclear allocation, given our policy of not procuring nuclear power, 5 and because we had other cost-effective means of meeting our renewable and carbon-free energy targets. RCEA accepts the hydropower allocation as it is not in conflict with our Energy Risk Management Policy.
The increased cost of other emissions-free resources cited above is causing RCEA and other electricity providers to revisit their decision to reject the nuclear allocation. To accept RCEA’s nuclear allocation for 2025 only, the Board would need to authorize a short-term exception to the nuclear power prohibition in RCEA’s Energy Risk Management Policy. The Policy itself does explicitly allow for such short-term exceptions. In that case, the nuclear power would appear as part of RCEA's portfolio on our power content label, which is mailed annually to all RCEA customers. Specific allocation amounts have not yet been published, but if accepted, the allocation in the coming year is expected to meet about 2% of RCEA’s total electricity load. The Board can later decide year by year from 2026-2030 whether to accept or decline the nuclear power allocation.
SUMMARY OF SCENARIOS
RCEA staff and The Energy Authority presented preliminary information on this potential nuclear allocation to the Board in August as part of our quarterly energy risk update. The following is an updated analysis of three alternatives for the Board’s consideration. • Scenario 1 is a “business as usual” scenario where RCEA does not accept its nuclear allocation.
• Scenario 2 has RCEA accepting the nuclear allocation and using it as a means to reduce procurement costs by substituting the nuclear power for other carbon-free resources.
• In Scenario 3, RCEA uses the allocation as a means to reduce overall GHG emissions without incurring additional costs.
5 Documented in RCEA’s Energy Risk Management Policy: https://redwoodenergy.org/wp-content/uploads/2022/12/RCEA-Energy-Risk-Management-Policy-2022-Update-with-Addendum-A.pdf 168
Table 1 compares these scenarios in terms of net revenue impacts, power portfolio makeup, and expected greenhouse gas (GHG) intensity of the portfolio.
Table 1. Comparison of nuclear allocation scenarios
Scenario 1:
No nuclear RPS
allocation (business
as usual)
Scenario 2:
Accept nuclear RPS
allocation and use to
reduce costs while
keeping GHGs
constant
(by selling more
expensive
hydropower)
Scenario 3:
Accept nuclear
allocation, use to
reduce GHGs while
keeping costs
constant
2025 Net Revenue $(9.4M) $(8.9M) $(9.4M)
[same as Scenario 1]
2025 Expected Carbon
Free Nuclear in MWh
- 16,483 16,483
2025 % Nuclear in
Power Content Label
(REpower Portfolio)
0% 2% 2%
2025 % Renewable +
Carbon Free
(Repower Portfolio)
88% 88%
[same as Scenario 1]
91%
2025 GHG emission
factor (lbs CO2e/MWh)
(REpower portfolio)
308 308
[same as Scenario 1]
285
Scenario 2 results in an improvement of RCEA’s 2025 net revenue position of approximately $505,000. This is about a 5.4% reduction in currently projected net losses for the year. Scenario 3 results in about a 7.5% reduction in GHG emissions for the year by replacing generic system power with emissions-free nuclear power.
The nuclear allocation if accepted would appear only in RCEA’s REpower base portfolio.
Because nuclear power is not deemed renewable, it would not be included in RCEA’s REpower+ 100% renewable opt-up portfolio. REpower+ would continue to contain only carbon-free and renewable solar, wind, and small hydro resources.
If RCEA rejects the nuclear clean energy allocation, due to the automatic allocation of the reliability benefits of the Diablo Canyon Resource, RCEA would still receive the reliability benefits of nuclear power as in previous years.
Whether or not RCEA accepts the allocation, RCEA has the opportunity to reinforce and clarify the anti-nuclear stance in its Energy Risk Management Policy by including a position on nuclear power in its Policy Platform. If the Board so directs, staff can bring forth a proposal for such an addition to the Platform at a future meeting.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
169
Depending on the Board’s direction provided, accepting the nuclear allocation could be used under Scenario 3 as one means to help achieve strategy 4.1.2: Minimize Greenhouse Gas Emissions Associated with RCEA’s CCE Program.
EQUITY IMPACTS
N/A
FINANCIAL IMPACT
Scenarios 1 and 3 would have no financial impact on RCEA. Under Scenario 2, RCEA is projected to achieve an estimated $505,000 in cost savings for 2025 by selling an equivalent amount of alternative carbon-free resources expected to be allocated to RCEA in 2025.
STAFF RECOMMENDATION
Direct staff on whether to accept the nuclear allocation, making a short-term exception to the RCEA Energy Risk Management Policy’s prohibition on nuclear power procurement, as allowed for in the Energy Risk Management Policy.
Provide guidance on strategic use of the nuclear allocation as a tool for cost savings or greenhouse reductions, should the Board elect to accept the allocation.
Direct staff to report back to the Board with options for Policy Platform updates related to nuclear energy.
ATTACHMENTS
None
170
Diablo Canyon Power Plant Nuclear Allocation
Presentation to RCEA Board of Directors
September 26, 2024
Faith Carlson, Regulatory & Legislative Policy Manager
Richard Engel, Director of Power Resources
Background – Diablo Canyon Power Plant
Diablo Canyon Nuclear Power Plant
• Opened in 1985.
• Provides 10% of energy in the California grid.
Plant Retirement
• In 2016, PG&E applied to retire the plant in
2025.
• California Public Utilities Commission (CPUC)
approved this application in 2020.
Policy Changes
Heat Waves and Outages:
• August 2020 heat wave led to rolling outages.
• Delays in replacement resources and a September
2022 heat wave led to fear of more outages.
SB 846 (Dodd, 2022) passed to prevent outages:
• Invalidates the CPUC’s approval to retire the plant
• Requires PG&E and state agencies “to take all
actions necessary and prudent to extend Diablo
Canyon powerplant operations.”
• To comply, the CPUC issued a decision in
December of 2023 to extend operation of Diablo
Canyon through 2030.
Allocation of Reliability and Clean Energy Benefits:
• Most California power providers automatically receive an allocation of the reliability benefits (Resource Adequacy) from Diablo Canyon.
• Acceptance of clean energy attributes allocation is optional. • RCEA has 30 days from CPUC allocation announcement to accept or reject their allocation.
• If accepted, power will appear in Power Content Label. • CPUC has ordered that CA state ratepayers are required to pay the costs of Diablo Canyon operations.
Allocation of Reliability and Clean Energy Benefits:
• Accepting allocation:
• Receive Clean Energy benefit customers are already paying for. • No additional nuclear power generation or development. • Shows on our Power Content Label.
• Rejecting allocation:
• Do not receive Clean Energy benefit customers are paying for. • No additional nuclear power generation or development. • Retain RA benefits without disclosure on our Power Content Label.
Why this decision now?
• RCEA has prohibited procurement of nuclear power since its 2016 Energy Risk Management Policy
• To align with the Risk Policy, RCEA has declined the carbon-free allocations of nuclear offered annually by PG&E while accepting carbon-free allocations of large hydro power • The nuclear allocation for 2025 onward is new, specifically due to the extension of Diablo Canyon nuclear plant out to 2030
• Recently increased costs of procuring carbon-free power from alternative sources such as large hydro or renewables has motivated RCEA and other CCAs to bring this matter to their Boards for consideration
Energy Risk Management Policy language
https://redwoodenergy.org/wp-content/uploads/2022/12/RCEA-Energy-Risk-Management-Policy-2022-Update-with-Addendum-A.pdf Alternatives
Accept Nuclear
Allocation?
Yes
Use allocation to
reduce costs
(GHGs unchanged)
Use allocation to
reduce GHGs
(costs unchanged)
No
No change to
power portfolio or
finances
2025 net revenues =
$(8.9M)
GHGs = 308 lbs
CO2e/MWh
2025 net revenues =
$(9.4M)
GHGs = 285 lbs
CO2e/MWh
2025 net revenues =
$(9.4M)
GHGs = 308 lbs
CO2e/MWh
Scenario 1
Scenario 2
Scenario 3
Would make up
about 2% of RCEA’s
2025 portfolio
How might a nuclear allocation change our 2025
Power Content Label sent out to customers in 2026?
Note: The numbers shown here are speculative and very preliminary – RCEA’s reportable 2025 procurement numbers will not be finalized until mid-2026 Resource % without nuclear % with nuclear
Solar 40% 40%
Wind 2% 2%
Biomass & Biowaste 15% 15%
Small Hydro 2% 2%
Geothermal 0% 0%
Large Hydro 11% 11%
Nuclear 0% 2%
Natural Gas 0% 0%
Coal & Other Fossil Fuels 0% 0%
Unspecified Power 31% 28%
Additional considerations
• In Scenario 2: Allocation is used as a tool for improving RCEA’s financial position
• Can sell off an equivalent amount of other carbon-free resources. • Can achieve about $505,000 savings in 2025 (5.4% reduction in net losses for year) • In Scenario 3: Allocation is used as a tool for reducing RCEA’s greenhouse gases (GHGs) by replacing system power
• The emissions reduction is about 7.5%
• The nuclear power would appear only in RCEA’s standard Repower portfolio. • The premium REpower+ opt-up portfolio would remain 100% carbon-free renewable resources
• Assuming the State’s allocation of Diablo Canyon energy continues until plant closure, staff will revisit this decision with the Board annually.
STAFF REPORT
Agenda Item 9.1
AGENDA
DATE:
September 26, 2024
TO: Board of Directors
PREPARED
BY:
Stephen Kullmann, Director of Demand Side Management
Eileen Verbeck, Interim Executive Director
SUBJECT: Rural Regional Energy Network North Administrative Actions:
• Administrative Consultant Contract
• Termination of Previous RuralREN Memorandums of Understanding Background
In response to the demonstrated lack of energy efficiency services available to rural California ratepayers through CPUC Public Purpose Program (PPP) funds, RCEA, on behalf of itself and six other partners, submitted a proposal to form a Regional Energy Network (REN) called the RuralREN to provide seven programs across 31 counties. The RuralREN programs are described below:
• Residential Resource Acquisition: incentives and rebates for energy efficiency and electrification
• Commercial Resource Acquisition: incentives and rebates for energy efficiency and electrification
• Residential Equity: assessments and other “non-resource” services to public customers • Public Equity: assessments and other “non-resource” services to public customers • Codes & Standards: education and technical resources to increase comprehension of and compliance with California’s Building Energy Efficiency Codes • Workforce Education & Training: accelerates training (upskilling of existing workers and training for new workers) and increases new opportunities for employment. • Finance: gap and micro-loans for residential, commercial, and public customers Shortly after the CPUC’s approval of RCEA’s business plan, a dispute arose among the partners that led to a delay of more than a year. In August 2024, the CPUC issued a proposed decision splitting the administration of the RuralREN into RREN-North, administered by RCEA, and including the Sierra Business Council (SBC), Lake Area Planning Council (LakeAPC), and Mendocino Council of Governments (MCOG); and RREN-Central, administered by the County of San Louis Obispo.
The CPUC is scheduled to vote on the final decision on September 26, 2024, prior to the meeting of the RCEA Board of Directors.
Summary
RuralREN North Administrative Support Services
During the August 2023 RCEA Board of Directors meeting, the Board authorized staff to issue solicitations for administrative, marketing, legal, and database support services to assist RCEA in the 171
administration of RuralREN. Due to the dispute and subsequent delays in implementation the solicitations were not issued at that time.
The CPUC’s proposed split of RuralREN provided a path forward to offer energy efficiency programs in Humboldt County, and allocated funds for the remainder of 2024 to alleviate further delays in implementation. In anticipation of a favorable decision by the CPUC, RCEA issued RFP-24-601 Solicitation for Administrative Support Services for RuralREN North on August 29, 2024. Staff sent the RFP to multiple qualified agencies and posted publicly on our website.
On August 16, 2024, RCEA received only one complete, responsive, and responsible bid from Frontier Energy. Frontier Energy’s proposal is for a not to exceed (NTE) budget of $1,200,265 for services for 2024-2027. The FY 24-25 NTE amount will be $426,048.The services include:
1. Regulatory and reporting support,
2. Program implementation support,
3. Technical program support, and
4. Ad-Hoc Administration, technical and regulatory support Frontier Energy is uniquely qualified to perform this work, having provided comparable services for other RENs and CCAs and having decades of experience working with the CPUC. Frontier Energy also provided similar services for RCEA’s previous CPUC-funded energy efficiency program and provided consistently expert work below their NTE budgets. Staff recommends awarding the contract to Frontier Energy for RuralREN North administrative services.
Termination of Original RuralREN Agreements
In May 2021 RCEA entered into a MOU with Association of Monterey Bay Area Governments, The High Sierra Energy Foundation, the San Joaquin Valley Clean Energy Organization, the County of San Luis Obispo, the Sierra Business Council, and the County of Ventura to collaboratively form a REN. In February 2022 RCEA entered into a MOU with Lake-APC and MCOG outlining the intent to implement REN programs in their regions.
The MOU entered in May 2021, will require termination due to the CPUC’s Proposed Decision to split the geographical territories. Furthermore, the MOU with Lake-APC and MCOG was intended to end automatically if either party joined the original RuralREN, which is no longer occurring. Staff recommends authorizing the Interim Executive Director with General Counsel review to negotiate and execute termination agreements of the original RuralREN MOU’s.
Staff anticipates bringing a Memorandum of Agreement between RCEA and Sierra Business Council, Lake-APC, and MCOG for Board approval at the October meeting.
FINANCIAL IMPACTS
The total 2024-2027 budget in the Proposed Decision for RREN-North is $33,139,078. Much of this will be pass through funds for implementation in the partners’ respective territories. While final distributions of budgets between the RuralREN North partners still need to be established and will be brought back to the RCEA Board as a budget adjustment at a later meeting, RCEA’s share is approximately $6.85M for program implementation, $2.7M for administration, and $1.6M for marketing. The cost of executing the contract with Frontier Energy will be cost neutral for RCEA, as it will be covered by RuralREN North administration and implementation funds.
EQUITY IMPACTS
RENs in general, and the RREN North particularly, are designed to reach customers that otherwise are not being reached by existing ratepayer funded programs. 172
RECOMMENDED ACTIONS
1. Award a contract with Frontier Energy for RuralREN North Administrative Services for a term of 2024-2027 and a not-to-exceed amount of $1,200,265 and Authorize the Interim Executive Director to execute all applicable documents subject to RCEA General Counsel review.
2. Authorize the Interim Executive Director to execute all documents to terminate the original RuralREN agreements subject to RCEA General Counsel review.
ATTACHMENTS
Frontier Energy Response to RFP-24-601 (linked online at https://redwoodenergy.org/board-of-directors/) 173
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STAFF REPORT
Agenda Item # 9.2
AGENDA DATE: September 26, 2024
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Interim Executive Director SUBJECT: Addition and Reclassification of Staff Positions
SUMMARY
RCEA expects to receive external funding for the administration of the Tribal Energy Resilience and Sovereignty Project (TERAS) and the administration and implementation of a Rural Regional Energy Network (RuralREN North or RREN-North in CPUC proceedings) this fiscal year. The work will require unfreezing current positions and adding new positions.
TERAS
The TERAS project will take place over six (6) years with a start date in early 2025. RCEA’s portion of the funding includes adding one full-time Analyst position. This Analyst position will report to the Finance Department, and will coordinate the management of contracts, grant reporting, and engagement with our TERAS partners. RCEA would like to proceed with recruiting this position immediately to help build capacity and to be responsive to project partners and the DOE negotiation process.
The TERAS project will empower four tribes in Northern California to transform one of the state’s least reliable electrical circuits into a highly resilient renewable energy system.
Supported by $88 million in funding from the Department of Energy’s Grid Resilience and Innovative Partnerships (GRIP) program, this project will significantly advance tribal energy sovereignty, climate resilience, jobs equity, and clean energy innovation. RCEA is the lead applicant for the $88 million DOE funds and $6 million California Energy Commission funds and has entered contract negotiations with an expected execution date later this year.
RuralREN North
The California Public Utilities Commission (CPUC) issued a Proposed Decision (PD) on August 21, 2024, recommending the split of the original RuralREN into a RuralREN North and RuralREN Central as outlined in the previous staff report. The proposed budget for energy efficiency programs for RuralREN North is $33 million over the next four (4) years (2024-2027). RCEA expects to have a final decision from the CPUC on September 26, 2024, prior to this meeting of the RCEA Board of Directors.
175
Currently, two (2) open staff positions that were associated with the RuralREN program are frozen due to funding delays. Staff recommends unfreezing these positions in anticipation of a favorable decision by the CPUC. The additional staff are needed to ramp up administration of the RuralREN North and begin program development for expected implementation in January 2025. Staff also recommends reclassifying the Manager position to a Technician, and the Specialist position to a Coordinator to better meet capacity needs for the program.
Power Resources
Staff is recommending reclassifying one of the three Power Resources Specialist positions into a Data Analyst position to better represent the regular duties being performed. In consultation with the Power Resources Director, the Human Resources Manager determined that the current and future needs of the Power Resources Department and RCEA as a whole were considered and support the reclassification.
The Analyst job description was originally created and adopted by the Board of Directors in August 2023 to capture job duties associated with upcoming new programs. In comparison to the Specialist position, the Analyst position is characterized by an increase in responsibility, advanced statistical and data analysis and reporting, exercising discretion and independent judgment, and developing strategies for improving outcomes. The current job duties of this Power Resources Specialist include custom quantitative analysis related to solicitation of new power projects, customer rate comparisons and cost savings analysis, and preparing statutorily required compliance reports.
A proposed update to the RCEA organization chart has been attached with the changes to positions highlighted.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
All RCEA employees are tasked with working to advance the Strategic Plan.
EQUITY IMPACTS
Both the TERAS project and RuralREN North programs are designed to benefit underserved population segments in our community. The Tribal Nations partnering on the TERAS project are geographically isolated and disproportionately impacted by grid instability.
The recommended additions and reclassifications of RCEA staff positions should result in increased availability of services to a wide segment of Humboldt County’s communities through targeted projects along with the ongoing implementation of RCEA’s Community Choice Energy and Demand Side Management programs.
FINANCIAL IMPACTS
Adding the TERAS Analyst position will increase RCEA’s annual personnel budget by around $131,000 per year. The cost of this position will be fully recovered through external funding 176
for six (6) years. If RCEA is successful in filling this position by November 2024, there may be one month of personnel costs, anticipated to be around $10,000, expended before funding is received.
Unfreezing and reclassifying the two DSM positions (Technician and Coordinator) will increase RCEA’s annual personnel budget by approximately $237,462. RuralREN North funding will cover the cost of these two positions and is expected to cover a significant portion of existing staff costs as well. Staff will be bringing a proposed budget adjustment to the Board later this fiscal year that will account for the increase in revenue and expenditures.
Reclassification of a Power Resources Specialist to Analyst will increase the annual personnel budget by approximately $31,482 per year. Funding from RCEA’s community choice energy program will cover the increased expense.
RECOMMENDED ACTION
Approve:
1) Addition of an TERAS Project Analyst position,
2) Unfreezing a DSM Manager Position and Reclassify as DSM Technician contingent on final approval of RuralREN North by the CPUC,
3) Unfreezing a DSM Specialist Position and Reclassify as DSM Coordinator contingent on final approval of RuralREN North by the CPUC,
4) Reclassifying Power Resource Specialist to Power Resource Analyst, 5) RCEA Organization Chart with approved changes.
ATTATCHMENTS
1. Adopted RCEA Organization Chart with greyed-out frozen positions.
2. RCEA Organization Chart with highlighted proposed changes. 177
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178
Community of
Humboldt
County
RCEA
Board
Independent
Auditors
Executive
Director*
Manager
Community
Strategies
Coordinator
Community
Strategies
Coordinator
Customer
Service
Director
Infrastructure
Planning &
Operations (IP)
Manager
IP
Manager
IP
Specialist
IP
Director
Business
Planning
& Finance
Manager
Finance
Coordinator
Admin
Manager
Contracts
and Grants
Specialist
Finance
Analyst
Contracts
and Grants
Director
Power
Resources (PR)
Manager
PR
Manager
Account
Services
Analyst
Specialist
PR
Specialist
PR
Specialist
PR
Contractor
Wholesale Power
Procurement
&
Scheduling
Director
Demand-Side
Management (DSM)
Manager
DSM
Technician
Technician
Coordinator
Intake
Manager
DSM
Specialist
Technician
Technician
Manager
DSM
Manager
Rural REN
Analyst
Rural
REN
Coordinator
Specialist
Rural REN
Manager
Regulatory
and
Legislative
Policy
General Counsel
Deputy Executive
Director
IT
Technician
Specialist
Admin
Specialist
Clerk of the
Board
Manager
HR
Community
Advisory
Committee
RCEA Organization Chart
RCEA Board Adopted August 24, 2023
*Executive Director may approve the
hiring of part-time, intern and limited-term positions if they fit within the Board adopted personnel budget.
179
*Executive Director may approve the hiring of part‐time, intern and limited‐term positions if they fit within the Board adopted total personnel budget.
Community of
Humboldt County
RCEA Board
Independent Auditors
Executive
Director*
Manager
Community
Strategies
Coordinator
Community
Strategies
Coordinator
Customer
Service
Director
Infrastructure
Planning & Operations
Manager
Infrastructure
Programs
Manager
Infrastructure
Programs
Specialist
Infrastructure
Director
Business Planning
& Finance
Manager
Finance
Coordinator
Admin
Manager
Contracts and
Grants
Specialist
Finance
Director
Power Resources
Manager
Power
Resources
Manager
Account
Services
Specialist
Power
Resources
Specialist
Power
Resources
Specialist
Power
Resources
Contractor
Wholesale Power
Procurement
&
Scheduling
Director
Demand‐Side
Management
Manager
Direct Install, Energy
Efficiency, &
Conservation
Technician
Energy
Efficiency
Technician
Energy
Efficiency
Coordinator
Intake
Manager
Demand
Side
Projects
Manager
Demand Side
Projects
Technician
Energy
Efficiency
Specialist
Programs
Manager
Rural REN
Analyst
Rural REN
Specialist
Rural REN
Manager
Regulatory and
Legislative
Policy
General Counsel
Deputy
Executive
Director
Community
Advisory
Committee
Manager
Human Resources
& Workforce
Development
Specialist
Administration Technician
Information
Technology
Specialist
Executive
Support
Clerk of the
Board
RCEA Organization Chart
RCEA Board Adopted August 24, 2023
Boxes shaded in gray are proposed frozenpositions for Fiscal Year 2024 – 2025. 180
STAFF REPORT
Agenda Item # 10.1
AGENDA DATE: September 26, 2024
TO: Board of Directors
FROM: Eileen Verbeck, Interim Executive Director
SUBJECT: Interim Executive Director’s Report
SUMMARY
Interim Executive Director Eileen Verbeck will provide updates on various topics as needed.
RECOMMENDED ACTION
None. (Information only.)
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