BOARD OF DIRECTORS REGULAR MEETING AGENDA
Wharfinger Building, upstairs Great Room June 26, 2025
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 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 speak during the public comment periods, raise your hand in the online Zoom webinar, or press star (*) 9 on your phone to raise your hand. Staff will ask you to unmute your phone or computer when it is your turn. You will have 3 minutes to speak.
Email written comments to [email protected]. Identify the agenda item number in the subject line. Comments will be included in the meeting record but not read aloud during the meeting.
1 RCEA June 26, 2025, Board of Directors Meeting Agenda
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. CEREMONIAL ITEMS
3.1. Dana Boudreau Retirement Proclamation
4. 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.
5. 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.
5.1 Approve Minutes of May 22, 2025, Board Meeting.
5.2 Accept Disbursement Report for April 2025, and Financial Reports for This Fiscal Year Through April 2025.
5.3 Accept Regulatory and Legislative Platform Engagement Report.
5.4 Receive Federal Activity Report.
5.5 Authorize the Purchase of Five Sun Titan L30 Power Trailers from RPS Solar Pumps at a Price not to Exceed $157,101 and Authorize the Executive Director to Execute All Applicable Documents in Fulfillment of Regional Resilience Grant Program Requirements.
5.6 Adopt Resolution 2025-2, Authorizing Agreement with Umpqua Bank Commercial Card Program, Direct Staff to Apply to the Program, and Authorize the Executive Director to Execute Any Necessary Agreements.
5.7 Adopt Resolution 2025-3 Adopting Amended Board Operating Guidelines to:
Require a Full Board, Non-CCE Business Vote for Setting of Overall CCA Program Objectives, Determining Power Content Targets, and Procurement Strategy and Procedures;
2 RCEA June 26, 2025, Board of Directors Meeting Agenda
Allow the Chair to Call for a Roll Call Vote in Randomized Order for CCE Business Items, at their Discretion; and
Add a Board Member Travel Policy.
5.8 Approve NREN Payment of $126,199.42 to Tri-County Regional Energy Network to Fund CivicWell and the California Climate and Energy Collaborative Forum, and Authorize the Executive Director to Execute All Applicable Documents.
5.9 Approve Amendment No. 6 to Professional Services Agreement with Aiqueous LLC in the Amount of $61,171 to Extend Database Support Services and Licensing Through December 2026 and Authorize the Executive Director to Execute all Applicable Documents.
6. REMOVED FROM CONSENT CALENDAR ITEMS
Items removed from the Consent Calendar will be heard under this section.
COMMUNITY CHOICE ENERGY (CCE) BUSINESS (Confirm CCE Quorum) Items under this section of the agenda relate to CCE-specific business matters that fall under RCEA’s CCE voting provisions, with only CCE-participating jurisdictions voting on these matters with weighted voting as established in the RCEA joint powers agreement.
7. CCE BUSINESS CONSENT CALENDAR
All matters on the Community Choice Energy Business Consent Calendar are considered to be routine by the CCE-participating jurisdiction Board members 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 CCE Business Consent Calendar, any Board member or members of the public can request that an item be removed for separate discussion.
7.1. Approve Addendum 2025-A to the RCEA Energy Risk Management Policy, Making the Deputy Executive Director a Voting Member of the Risk Management Team Effective July 1, 2025, Replacing the Role Currently Filled by the Director of Infrastructure Planning and Operations.
8. OLD CCE BUSINESS – None.
9. NEW CCE BUSINESS – None.
END OF COMMUNITY CHOICE ENERGY (CCE) BUSINESS
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10. OLD BUSINESS
10.1 Public Hearing on RCEA Staff Vacancy Report
Receive a staff report, open the public hearing, take public comment, and close the public hearing.
10.2 Cost of Living Salary Adjustment
Direct staff to pause completing an internal biennial salary survey until the results and recommendations of the classification and compensation study have been received from Gallagher Consulting.
Approve an update to the RCEA staff salary schedule including a 6% COLA salary adjustment effective July 1, 2025.
10.3 RCEA Fiscal Year 2025-2026 Budget
Adopt the proposed RCEA Fiscal Year 2025-2026 Budget.
11. NEW BUSINESS
11.1 CADEMO Central California Offshore Wind Project
Authorize a loan in an amount not to exceed $1,100,500 for the PG&E grid interconnection fee for the CADEMO Offshore Wind Project in central California, and authorize an ad hoc Board committee to approve loan terms consistent with Board recommendations.
Note: This staff report was not complete at the time of agenda publication and will be made available at www.redwoodenergy.org and at RCEA offices at 633 Third Street, Eureka, CA, by 5 p.m. on Monday, June 23, 2025.
11.2 Northern Rural Energy Network Efficiency Program Implementation Contracts Approve NREN Program Implementation Agreement with Sierra Business Council for task order services with a not-to-exceed amount of $2,000,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
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Approve NREN Program Implementation Agreement with Lake Area Planning Council for task order services with a not-to-exceed amount of $350,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
Approve NREN Program Implementation Agreement with Mendocino Council of Governments for task order services with a not-to-exceed amount of $350,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
11.3 RePower Local Procurement Goal
Adopt Resolution 2025-4 Adopting the Target of a 100% Renewable Electricity Mix by 2030 and Addendum 2025-A to the RePower Humboldt Comprehensive Action Plan for Energy, amending the local procurement goal in RCEA’s Strategic Plan.
12. STAFF REPORTS
12.1 Executive Director’s Report
13. FUTURE AGENDA ITEMS
Any request that requires Board action will be set by the Board for a future agenda or referred to staff.
14. ADJOURNMENT
NEXT REGULAR MEETING
Thursday, July 24, 2025, 3:30 p.m.
Wharfinger Building upstairs Great Room, 1 Marina Way, Eureka, CA 95501 Online and phone participation will also be possible via Zoom. 5 This page
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STAFF REPORT
Agenda Item # 1.1
AGENDA DATE: June 26, 2025
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 (CAC) 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 7
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, there have been no remote director participation for “just cause” or “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. 8 PROCLAMATION
Honoring 19 Years of Dedicated Service by
DANA BOUDREAU
WHEREAS, Dana Boudreau joined Redwood Coast Energy Authority in 2006 and devoted 19 years of outstanding service to RCEA, demonstrating excellence in his many roles from Program Manager, Director of Operations, and finally Director of Infrastructure Planning and Operations, all while continually upholding the values and mission of RCEA; and WHEREAS, Dana led the Redwood Coast Airport Microgrid’s development, coordinating many partners in this complex, first-of-its-kind project from conception and funding through construction, completion and long-term operation; and
WHEREAS, Dana helped identify and mitigate the many financial, policy, and technical risks RCEA’s community choice energy program faced during its launch and early operation years while serving on RCEA’s Energy Risk Management Team; and
WHEREAS, Dana developed information technology infrastructure, policy and procedures to raise RCEA from a loose workgroup to one utilizing a modern and secure corporate network; and WHEREAS, Dana pioneered the Energy Watch Small Business Direct Install program’s early years, always pushing for comprehensive efficiency projects beyond the low-hanging measures to avoid stranded savings. When the CFL Sweeps Team’s cartwheels wore out from going door-to-door, he crafted replacement wheels out of wood; and WHEREAS, in his operations role, Dana made countless weekend, late night, and early morning visits to RCEA’s offices outside his normal work week to deal with alarms, power outages, and computer backups.
THEREFORE, BE IT PROCLAIMED that the Board of Directors and staff of the Redwood Coast Energy Authority, collectively the RCEA family, hereby express our deepest gratitude to Dana Boudreau for his remarkable service and dedication. We extend our heartfelt congratulations and best wishes to Dana as he embarks on a well-deserved and joyful retirement.
Dated: June 26, 2025
Scott Bauer, Board Chair
Redwood Coast Energy Authority
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10 BOARD OF DIRECTORS DRAFT MEETING MINUTES
Wharfinger Building, Great Room May 22, 2025
1 Marina Way, Eureka, CA 95501 Thursday, 3:30 p.m.
Chair Scott Bauer called a meeting of the Board of Directors of the Redwood Coast Energy Authority to order on the above date at 3:33 p.m. Notice of this meeting was posted on May 16, 2025.
PRESENT: Natalie Arroyo, Chair Scott Bauer, Carlos Diaz, Michael Gerace, Skip Jorgensen, Alt.
Dir. Kat Napier, Jason Ramos, Sarah Schaefer, Jack Tuttle (arrived 3:41 p.m.), Frank Wilson, Vice Chair Sheri Woo. ABSENT: Elise Scafani.
STAFF AND OTHERS PRESENT: Business Planning and Finance Director Lori Biondini, Executive Director Elizabeth Burks, Finance Specialist Ronnie Chaussé, Power Resources Director Richard Engel, The Energy Authority California Accounts Director Jaclyn Harr, Board Clerk Lori Taketa, Deputy Executive Director Eileen Verbeck. From Baker Tilly US (remotely): Principal Bethany Ryers, Manager Ryan Theiler.
REPORTS FROM MEMBER ENTITIES
Chair Bauer welcomed Fortuna Director Carlos Diaz to the Board. Vice Chair Woo learned at an Association of California Water Agencies Conference that each Artificial Intelligence generated email consumes the equivalent of one bottle of water for data center cooling, and the water typically is not circulated for reuse. Investor-owned utilities are giving eight- to 10-year wait times to wastewater treatment facilities wishing to install solar panels and batteries to offset reverse osmosis treatment electricity use. Director Arroyo spoke on a panel about local government and offshore wind at the Pacific Offshore Wind Summit. Assemblymember Chris Rogers expressed interest in learning about how the CPUC does not consider Tribal Nations to be public agencies, and the consequences of this.
CONSENT CALENDAR
3.1 Approve Minutes of April 24, 2025, Board Meeting.
3.2 Accept Disbursements and Financial Reports.
3.3 Approve 2025 RCEA Policy Platform.
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3.4 Receive Federal Activity Report.
3.5 Approve Payment of California Community Power Annual Dues of Up to $175,000 and Joint Action Share of Up to $90,000 and Special Projects Participation Fees of Up to $300,000 for Fiscal Year 2025-26.
3.6 Award Professional Services Agreement to kW Engineering to Perform Northern Rural Energy Network (NREN) Normalized Metered Energy Consumption Program Support Services for a Not to Exceed Value of $318,000 Through June 30, 2028, and Authorize the Executive Director to Execute all Applicable Documents.
3.7 Award Professional Services Agreement to Frontier Energy to Perform Design Services for the NREN Finance Equity Program for a Not to Exceed Value of $98,020 Through December 31, 2025, and Authorize the Executive Director to Execute All Applicable Documents.
3.8 Authorize the Purchase of ChargePoint Electric Vehicle CP6000 “Head Units” from Campton Electric at a Price Not to Exceed $71,177.40 and Authorize Executive Director to Execute All Applicable Documents in Fulfillment of California Energy Commission Rural Electric Vehicle Charging Grant Requirements.
3.9 Approve Amendment to the Professional Services Agreement with Gallagher Benefit Services to Include the Addition of an Organizational Assessment for a Total Not-to-Exceed Value of $83,600 and Authorize the Executive Director to Execute all Applicable Documents.
3.10 Approve Amendment No.3 to the Professional Services Agreement with Sierra Business Council in the Amount of $120,000 for RuralREN North Startup Activities and Authorize the Executive Director to Execute All Applicable Documents.
No member of the Board or public requested consent calendar item discussion.
M/S: Schaefer, Woo: Approve Consent Calendar items.
The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Diaz, Gerace, Jorgensen, Napier, Ramos, Schaefer, Wilson, Woo. Noes: None. Absent: Tuttle. Abstain: None.
NEW BUSINESS
6.1 Financial Audit for Fiscal Years Ending June 30, 2022, and 2023 Auditor Baker Tilly’s Bethany Ryers presented results of the fiscal year 2021-22 and 2022-23 audits, and a fiscal year 2021-22 single year audit as required by a Federal loan. RCEA’s financial statements and procedures received the highest level of accuracy assurance with notes to improve financial statement closings, a common finding for agencies of RCEA’s size.
The directors discussed the handling of doubtful and aging accounts. Staff and the auditor anticipate beginning fiscal year 2023-24 and 2024-25 audits in August. There was no public comment on this item.
12 RCEA May 22, 2025, Board of Directors Meeting DRAFT Minutes
M/S: Arroyo, Jorgensen: Accept and approve Redwood Coast Energy Authority Financial Statements June 30, 2023, and 2022, Associated Independent Auditors’ Report, and Report on Federal Awards by Baker Tilly US, LLP.
The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Diaz, Gerace, Jorgensen, Napier, Ramos, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: None. Abstain: None.
COMMUNITY CHOICE ENERGY (CCE) BUSINESS - Chair Bauer confirmed that a CCE quorum was present.
OLD CCE BUSINESS
7.1 Old CCE Business: Semiannual Energy Risk Management Report Director of Business Planning and Finance Biondini presented the semiannual Energy Risk Management Report as it pertained to the agency’s financial position. The Energy Authority, RCEA’s energy market trader and risk management consultant, forecasted electricity generation rates to decrease and the Power Charge Indifference Adjustment to increase.
While RCEA revenues will decline next year, customers can expect some electricity generation savings. Power Resources Director Engel reported that RCEA electricity sales have also decreased. The number of residential and nonresidential customers went down by
2.5% and 2.3% respectively between 2022 and 2024. The decrease was not due to CCE program opt-outs. Staff noted a reported decrease in the number of indoor grow houses in Arcata and a decline in the larger local cannabis industry. Sun Valley Floral Farms’ closure also contributed to lower electricity usage, and termination of office leases for federal agencies may further contribute to this. Nordic Aquafarms extended their development timeline and staff do not expect near-term electricity load increases.
The directors noted that while electricity generation rates may decrease, electricity bills will likely remain high because transmission costs have gone up to pay for wildfire mitigation and infrastructure hardening. The group discussed how lower loads affect rates, how cost-of-service rate setting may lessen the extreme ups and downs of the agency’s financial outlook, and how to increase RCEA’s customer base. In June, the Board will discuss how local renewable energy development and sourcing should be prioritized in power procurement decision making. There were no public comments on this item.
M/S: Schaefer, Gerace: Accept Energy Risk Management Semiannual Report.
The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Diaz, Jorgensen, Napier, Schaefer, Tuttle, Wilson. Noes: None. Absent: None. Abstain: None. Non-Voting: Gerace, Ramos, Woo.
Director Arroyo noted that Director Gerace could not vote on, nor second, a CCE Business item.
M/S: Schaefer, Bauer: Accept Energy Risk Management Semiannual Report. 13 RCEA May 22, 2025, Board of Directors Meeting DRAFT Minutes
The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Diaz, Jorgensen, Napier, Schaefer, Tuttle, Wilson. Noes: None. Absent: None. Abstain: None. Non-Voting: Gerace, Ramos, Woo.
NEW CCE BUSINESS
8.1 New CCE Business: Approve Community Choice Energy Funded Programs for Fiscal Year 2025-26
Executive Director Burks described programs which staff propose to be funded in the next fiscal year at least in part by CCE program electricity sales revenues. These programs would:
install new and maintain existing electric vehicle charging stations; fund staff time to draft Tribal Energy Resilience and Sovereignty (TERAS) Program microgrid development contracts; provide an annual cash out for net energy metering solar customers; encourage local Feed-In Tariff and Bioenergy Market Adjusting Tariff renewable energy projects; operate and maintain the Redwood Coast Airport Microgrid; and coordinate regional energy planning, strategic energy planning and increase community engagement in these processes. The directors discussed TERAS federal funding status. There were no public comments.
M/S: Schaefer, Napier: Approve the proposed programs funded by revenue generated from electricity sales and direct staff to include the programs in the fiscal year 2025-2026 budget for full Board adoption.
The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Diaz, Jorgensen, Napier, Schaefer, Tuttle, Wilson. Noes: None. Absent: None. Abstain: None. Non-Voting: Gerace, Ramos, Woo.
NEW BUSINESS (Continued)
10.1 New Business: Proposed Fiscal Year 2025-2026 Budget Introduction Executive Director Burks described how staff developed next fiscal year’s proposed budget, which the Board Finance Committee reviewed and approved. The draft budget prioritizes efficient internal operations, excellent delivery of existing programs, and community engagement and planning. About half of RCEA’s staff joined the agency since the pandemic, and internal file and payroll systems and organization structure must be updated to match RCEA’s workload and size. Staff stressed the importance of reaching and maintaining financial reserve goals to lower power procurement and other operational costs and to enable reserve fund investment. Management of the new Northern Rural Energy Network’s energy efficiency programs is expanding RCEA’s responsibilities and budget. Adequate staffing and support are needed to ensure effective delivery of this and other RCEA programs. Increased community outreach will better position RCEA for success when transitioning to a cost-of-service rate setting model, which may allow RCEA to operate more independently from PG&E’s actions. Increased outreach will also engage the broader community when updating RCEA’s strategic plan.
Revenue projections for the next fiscal year are down compared to the current year, but expenses are not decreasing as much, leading to a decrease in net revenue from $13.8 million this year to $5 million next year. Staff recommend putting all net revenue into cash 14 RCEA May 22, 2025, Board of Directors Meeting DRAFT Minutes
reserves, as financial modeling shows negative net revenues for the following two years. The 2025-2026 budget includes external funding for various programs, increased personnel costs, and plans to reinstate renewable energy targets for calendar year 2026.
The directors discussed but did not oppose the proposed 6% cost of living allowance increase, an interim budget measure until full Classification and Compensation study results and any recommended salary adjustments are introduced for Board consideration mid-year.
The group discussed RCEA’s current building leases and the need to study whether designing and constructing an office building is feasible versus refurbishing an existing building or continuing to lease office space in the current construction market. Board members asked that a rebate and incentive program funding increase be considered during the midyear budget adjustment. There were no public comments on this matter.
STAFF REPORTS
11.1 Executive Director’s Report
RCEA and Schatz Energy Research Center’s battery storage workshop has been rescheduled for 5:30 p.m. on Wednesday, July 23, at Arcata’s D Street Neighborhood Center.
The Eureka City Council requested an electricity affordability presentation based on the RCEA Board’s April study session. Executive Director Burks offered staff presentations on what’s in an electricity bill to other member agency councils and boards. There were no public comments.
FUTURE AGENDA ITEMS
Director Wilson requested a staff report on artificial intelligence’s (AI’s) effect on Humboldt County’s power grid and customers’ electricity access. Chair Bauer recommended the Board Directors ask their agencies’ governing bodies to support SB 254, the Family Electric Rate Assistance program.
Chair Bauer adjourned the meeting at 6:02 p.m.
Lori Taketa
Board Clerk
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STAFF REPORT
Agenda Item # 5.2
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Lori Biondini, Business Planning and Finance Director SUBJECT: Profit & Loss, Balance Sheet and Monthly Disbursements Reports
SUMMARY
The attached Disbursements Report lists RCEA’s checks, debits, and electronic payments made during the period identified on the report. The Business Planning and Finance Director certifies that the disbursements were drawn in payment of demands conforming to RCEA’s adopted Financial Policy and budget.
The Financial Reports (Profit & Loss Budget vs. Actual and Balance Sheet) are presented to keep the Board apprised of current agency receipts and spending relative to budget line items.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Agency financial tracking and reporting are necessary administrative functions supporting RCEA strategic plan goal implementation.
EQUITY IMPACTS
Not applicable.
FINANCIAL IMPACT
The disbursements presented were drawn in payment of demands included within the adopted budget.
STAFF RECOMMENDATION
Accept disbursement report for April 2025, and financial reports for this fiscal year through April 2025.
ATTACHMENTS
1. Disbursements Report for April 1 through April 30, 2025
2. Profit & Loss Budget vs. Actual Report, July 2024 through April 2025
3. Balance Sheet as of April 30, 2025
17 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of April 30, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 04/07/2025 ACH The Energy Authority CAISO Invoice #CISO040225-MAR -338,237.70 Bill Pmt -Check 04/11/2025 ACH Leapfrog Power, Inc Mar 2025 RA Invoice -36,740.00 Bill Pmt -Check 04/11/2025 ACH Sonoma Clean Power Authority Mar 2025 - Flex RA sale - Monthly -261,000.00 Liability Check 04/11/2025 ACH Ascensus Paydate 4/11/25 -14,673.90 Liability Check 04/11/2025 ACH Ascensus Paydate 4/11/25 -13,338.99 Liability Check 04/11/2025 ACH EDD Paydate 4/11/25 -8,542.54 Liability Check 04/11/2025 ACH Internal Revenue Service Paydate 4/11/25 -37,813.63 Check 04/11/2025 19447-63 NREN Customers REN RES Equip. Rebates -8,237.50 Bill Pmt -Check 04/11/2025 19464 Advanced Display & Signs Gold Step 33" Banner Stand -103.24 Bill Pmt -Check 04/11/2025 19465 Advanced Security Systems 04/01-06/30/25 Security Monitoring -285.00 Bill Pmt -Check 04/11/2025 19466 Alber's Tractor and Ag Work Mowing services for ACV solar site -1,300.00 Bill Pmt -Check 04/11/2025 19467 AT&T RCAM router fee: 02/19-03/18/25 -163.00 Bill Pmt -Check 04/11/2025 19468 AT&T RCAM charges: 03/29-04/28/25 -641.09 Bill Pmt -Check 04/11/2025 19469 AT&T Long Distance Phone charges: 03/25 - 04/24/2025 -130.39 Bill Pmt -Check 04/11/2025 19470 Baker Tilly US, LLP 2022 and 2023 Audit Fees -16,065.00 Bill Pmt -Check 04/11/2025 19471 Bithell, M. Mar 2025 Mileage & Purchase Reimb -50.26 Bill Pmt -Check 04/11/2025 19472 Braun Blaising & Wynne, P.C. Legal Services - Regulatory: Feb 2025 -3,908.66 Bill Pmt -Check 04/11/2025 19473 Burks, E. VOID: Per Diem Meals CA Planning RT Meeting 0.00 Bill Pmt -Check 04/11/2025 19474 City of Arcata Mar 2025 Utility User Tax -15,334.18 Bill Pmt -Check 04/11/2025 19475 City of Arcata Mar 2025 Excessive Energy Use Tax -2,059.32 Bill Pmt -Check 04/11/2025 19476 Construction Industry Ed Foundation Humboldt Trades Day 2025-Bronze Sponsor -500.00 Bill Pmt -Check 04/11/2025 19477 CPH Sponsored Programs Foundation TO7 Battery Maint: Dec 2024 Personnel -785.00 Bill Pmt -Check 04/11/2025 19478 Enterprise Car rental Mar 2025: S. Donnelly & E. Verbeck -283.47 Bill Pmt -Check 04/11/2025 19479 Eureka Humboldt Fire Extinguisher Co. Inc Fire extinguisher Maint for 633 3rd St -220.00 Bill Pmt -Check 04/11/2025 19480 Gallagher Benefit Services, Inc 2025 Class & Comp Study: Invoice #1 -9,900.00 Bill Pmt -Check 04/11/2025 19481 Hilson, D. Mileage reimbursement - Mar 2025 -69.37 Bill Pmt -Check 04/11/2025 19482 Humboldt Bay Coffee Co. Office Coffee-917 3rd St -25.95 Bill Pmt -Check 04/11/2025 19483 Local Worm Guy Mar 2025 Compost service 633 & 917 3rd St -84.00 Bill Pmt -Check 04/11/2025 19484 Marin Esther Photography RCEA Headshots (1hr) 3/27/25 -1,350.00 Bill Pmt -Check 04/11/2025 19485 Mission Linen & Uniform Service Janitorial service & supplies: April 2025 -30.98 Bill Pmt -Check 04/11/2025 19486 North Coast Cleaning Services, Inc. Cleaning services: March 2025 -1,090.00 Bill Pmt -Check 04/11/2025 19487 Pacific Paper Company Office Supplies: PR 2025-03_LR-Stamp -12.69 Bill Pmt -Check 04/11/2025 19488 PG&E - ACV RCAM site utilities: 02/26/25- 03/26/25 -182.06 Bill Pmt -Check 04/11/2025 19489 PG&E Office Utility 02/12-03/13/2025 utilities for 633 3rd Street -1,545.20 Bill Pmt -Check 04/11/2025 19490 Quarles & Brady LLP Feb 2025 Legal Services for GRIP Award -1,416.00 Bill Pmt -Check 04/11/2025 19491 Recology Humboldt County Act 060703330, 633 3rd St. Mar 2025 -110.05 Bill Pmt -Check 04/11/2025 19492 Recology Humboldt County Act 061371327, 917 3rd St. Mar 2025 -74.54 Bill Pmt -Check 04/11/2025 19493 Revolution Bicycles Mar 2025: 1 E-Bike Voucher -1,000.00 Bill Pmt -Check 04/11/2025 19494 Scrapper's Edge April 2025: 2 invoices -32.42 Bill Pmt -Check 04/11/2025 19495 SDRMA P&L Additional Insured Cert: City of Eureka -47.50 Bill Pmt -Check 04/11/2025 19496 Sequoia Park Zoo BioBlitz Party for Planet 2025- Sponsorship -500.00 Bill Pmt -Check 04/11/2025 19497 Times Printing Company Coloring Books-Qty 500 -771.31 Bill Pmt -Check 04/11/2025 19498 Times Printing Company 5 invoices: Late Notices & Move-in -2,278.14 Paycheck 04/11/2025 ACH Employees Paydate 4/11/25 -93,531.81 Bill Pmt -Check 04/14/2025 ACH The Energy Authority CAISO Invoice #CISO040925-MAR -142,790.11 Bill Pmt -Check 04/15/2025 ACH The Energy Authority Monthly TEA Invoice #TEA32025 Mar 2025 -1,966,370.41 Check 04/17/2025 ACH VISA VISA 4133: Mar 2025 Stmt 02/21-03/20/2025 -5,298.94 Check 04/17/2025 ACH VISA VISA 2291: Mar 2025 Stmt 02/21-03/20/2025 -12,585.91
18 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of April 30, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 04/21/2025 ACH The Energy Authority CAISO Invoice #CISO041625-APR -184,044.45 Check 04/22/2025 Debit Umpqua Bank Service Charge -117.43 Check 04/22/2025 Debit Umpqua Bank Service Charge -329.17 Check 04/24/2025 19564 NREN Customer REN RES Equip. Rebate -50.00 Liability Check 04/25/2025 ACH Ascensus Paydate 4/25/25 -14,661.12 Liability Check 04/25/2025 ACH EDD Paydate 4/25/25 -8,425.16 Liability Check 04/25/2025 ACH Internal Revenue Service Paydate 4/25/25 -37,397.79 Liability Check 04/25/2025 ACH Ascensus Paydate 4/25/25 -13,333.51 Liability Check 04/25/2025 ACH CICCS Coalition for Controlling Insurance April 2025 Premiums -66.98 Liability Check 04/25/2025 ACH Keenan May 2025 Premiums -50,033.79 Liability Check 04/25/2025 ACH Principal Life Insurance Company May 2025 Premiums -129.88 Bill Pmt -Check 04/25/2025 ACH Snow Mountain Hydro, LLC Mar 2025 Electricity -180,083.42 Bill Pmt -Check 04/25/2025 ACH CA Dept. of Tax & Fee Administration Electrical Energy Surcharge Return Q1 2025 -43,956.00 Bill Pmt -Check 04/25/2025 ACH CalCCA Invoices Q1 2025 dues and assessment -39,144.00 Bill Pmt -Check 04/25/2025 ACH CalPine Corporation Mar 2025 services -66,307.68 Bill Pmt -Check 04/25/2025 ACH Humboldt Sawmill Co. Mar 2025 Electricity Charge -50,804.93 Liability Check 04/25/2025 19499 Ameritas - Dental May 2025 Premiums -2,823.76 Liability Check 04/25/2025 19500 Ameritas - Vision May 2025 Premiums -501.80 Check 04/25/2025 19501 NEM Customer 2025 NEM Payout-Transitional -854.56 Check 04/25/2025 19502 NEM Customer 2025 NEM Payout-Transitional -265.92 Check 04/25/2025 19503-15 NEM Customers NEM Account Closeout -2,856.76 Check 04/25/2025 19516 CCA Customer Customer Account Adjustment 2024 -5,566.26 Check 04/25/2025 19517 NREN Customer VOID: REN RES Equip. Rebate 250315-2499 0.00 Check 04/25/2025 19518-26 NREN Customers REN RES Equip. Rebate -3,302.00 Bill Pmt -Check 04/25/2025 19527 Alber's Tractor and Ag Work Mowing services for ACV solar site -1,200.00 Bill Pmt -Check 04/25/2025 19528 Arcata Technology Center Site Host Reimbursement 01/01-03/31/2025 -396.10 Bill Pmt -Check 04/25/2025 19529 AT&T RCAM charges: 04/07-05/06/25 -330.21 Bill Pmt -Check 04/25/2025 19530 Blue Lake Rancheria Site Host Reimbursement 01/01-03/31/2025 -704.82 Bill Pmt -Check 04/25/2025 19531 Burks, E. Per Diem Meals: CA Planning Roundtable Mtg -222.00 Bill Pmt -Check 04/25/2025 19532 Carter Properties 917 3rd Street Office Lease - May 2025 -2,450.00 Bill Pmt -Check 04/25/2025 19533 City of Arcata Site Host Reimbursement 01/01-03/31/2025 -1,265.97 Bill Pmt -Check 04/25/2025 19534 City of Blue Lake Site Host Reimbursement 01/01-03/31/2025 -1,103.42 Bill Pmt -Check 04/25/2025 19535 City of Eureka-Water 633 & 917 3rd Street water bills -390.68 Bill Pmt -Check 04/25/2025 19536 City of Eureka - REVNet Site Host Reimbursement 01/01-03/31/2025 -897.83 Bill Pmt -Check 04/25/2025 19537 City of Trinidad Site Host Reimbursement 01/01-03/31/2025 -276.22 Bill Pmt -Check 04/25/2025 19538 CPH Sponsored Programs Foundation TO8 RRGP Consulting: Dec 2024 & Jan 2025 -2,582.50 Bill Pmt -Check 04/25/2025 19539 Eureka Rubber Stamp Qty 1 Board meeting nameplates -17.73 Bill Pmt -Check 04/25/2025 19540 Good Enough Now All Staff DEI training -10,400.00 Bill Pmt -Check 04/25/2025 19541 Humboldt Bay Coffee Co. 2 invoices: April 2025 -77.85 Bill Pmt -Check 04/25/2025 19542 Humboldt HyCycle Mar 2025: 3 E-Bike Vouchers -1,700.00 Bill Pmt -Check 04/25/2025 19543 Lake County/City Area Planning Council First Budget Payment for Set-up Activites -39,771.86 Bill Pmt -Check 04/25/2025 19544 Law Offices of Nancy Diamond 2 invoices: March 2025 legal services -6,820.75 Bill Pmt -Check 04/25/2025 19545 Law Offices of Susie Berlin Mar 2025 Legal Services - NREN -510.00 Bill Pmt -Check 04/25/2025 19546 McKinleyville Chamber of Commerce 2025 Annual Membership Dues -280.00 Bill Pmt -Check 04/25/2025 19547 Moss Adams LLP Progress billing for Advisory Services-TERAS -15,000.00 Bill Pmt -Check 04/25/2025 19548 North Coast Unified Air Quality Site Host Reimbursement 01/01-03/31/2025 -615.30 Bill Pmt -Check 04/25/2025 19549 NYLEX.net, Inc. Onsite network support services - May 2025 -2,797.21 Bill Pmt -Check 04/25/2025 19550 Open Door Site Host Reimbursement 01/01-03/31/2025 -1,071.56
19 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of April 30, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 04/25/2025 19551 Optimum Business-633 Phone & Internet - 03/28-04/27/2025 -1,105.22 Bill Pmt -Check 04/25/2025 19552 Pacific Paper Company 3 invoices: April 2025 office supplies -58.85 Bill Pmt -Check 04/25/2025 19553 PG&E CCA Mar 2025 CCE billing -21,727.72 Bill Pmt -Check 04/25/2025 19554 PG&E EV Account EV stations 03/03-03/31/2025 -2,321.10 Bill Pmt -Check 04/25/2025 19555 PG&E Office Utility 03/06-04/03/2025 utilities for 917 3rd Street -545.46 Bill Pmt -Check 04/25/2025 19556 Premier Financial Group, Inc. Advisory Fee for Q2 2025 -6,239.29 Bill Pmt -Check 04/25/2025 19557 Ramirez, M. Empl Mileage Reimbursement: Apr 2025 -19.60 Bill Pmt -Check 04/25/2025 19558 Roto-Rooter Mad River Plumbing 917 3rd St Plumbing Service -339.00 Bill Pmt -Check 04/25/2025 19559 Secretary of State Form SF-405 Copies Fee -6.50 Bill Pmt -Check 04/25/2025 19560 St. Joseph Hospital, Eureka Site Host Reimbursement 01/01-03/31/2025 -4,582.60 Bill Pmt -Check 04/25/2025 19561 Taketa, L. Mileage Reimb & Purchase Reimb-Mar 2025 -60.37 Bill Pmt -Check 04/25/2025 19562 Ubeo Business Services 633 3rd St Printer Charges: 03/06-04/05/25 -186.51 Bill Pmt -Check 04/25/2025 19563 Winzler, John Office Lease - 633 3rd St. May 2025 -7,946.31 Paycheck 04/25/2025 ACH Employees Paydate 4/25/25 -92,636.77 Liability Check 04/28/2025 ACH Colonial Life May 2025 Premiums -3,167.54 Bill Pmt -Check 04/28/2025 ACH PG&E Voluntary Allocation Nov 2024 Forecast Price- VA -126,360.96 Bill Pmt -Check 04/28/2025 ACH The Energy Authority CAISO Invoice #CISO042325-APR -157,034.35 TOTAL -4,221,786.79
20 Redwood Coast Energy Authority
Profit & Loss Budget vs. Actual
July 2024 through April 2025
Jul '24 - Apr 25 Budget % of Budget
Ordinary Income/Expense
Income
Total 4 GRANTS AND DONATIONS 3,100.00 0.00 100.0%
5 REVENUE EARNED
Total 5000 · Revenue - government agencies 5,076,526.54 8,502,834.00 59.7% Total 5100 · Revenue - program related 5,952,436.40 5,950,888.00 100.03% Total 5300 · Revenue - interest on deposits 504,793.26 0.00 100.0% Total 5400 · Revenue-nongovernment agencies 376,632.00 501,000.00 75.18% Total 5500 · Revenue - Electricity Sales 56,973,240.30 80,442,685.00 70.83% Total 5 REVENUE EARNED 68,883,628.50 95,397,407.00 72.21% Total Income 68,886,728.50 95,397,407.00 72.21%
Gross Profit 68,886,728.50 95,397,407.00 72.21%
Expense
Total 6 WHOLESALE POWER SUPPLY 54,297,283.17 64,768,112.00 83.83% Total 7 PERSONNEL EXPENSES 3,982,186.98 5,388,452.00 73.9% Total 8.1 FACILITIES AND OPERATIONS 705,926.41 1,162,207.00 60.74% Total 8.2 COMMUNICATIONS AND OUTREACH 116,788.20 276,200.00 42.28%
8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 111,544.83 164,300.00 67.89%
Total 8410 · Contracts - Program Related Ser 595,858.50 3,179,444.00 18.74% 8420 · Accounting 107,184.00 290,000.00 36.96%
8430 · Legal 111,587.20 280,000.00 39.85%
8450 · Wholesale Services - TEA 728,354.67 875,603.00 83.18% 8460 · Procurement Credit - TEA 120,070.97 150,000.00 80.05% 8470 · Data Management - Calpine 646,699.76 855,276.00 75.61% 8480 · Customer Billing - PG&E 216,461.56 272,714.00 79.37% 8490 · NREN Partner Funds 549,104.84 2,836,190.00 19.36% Total 8.4 PROFESSIONAL & PROGRAM SRVS 3,186,866.33 8,903,527.00 35.79% Total 8.6 INCENTIVES & REBATES 164,246.18 965,605.00 17.01% Total 9 NON OPERATING COSTS 93,370.95 129,000.00 72.38% Total Expense 62,546,668.22 81,593,103.00 76.66%
Net Ordinary Income 6,340,060.28 13,804,304.00 45.93%
Net Income 6,340,060.28 13,804,304.00 45.93%
21 Redwood Coast Energy Authority
Balance Sheet
As of April 30, 2025
Apr 30, 25
ASSETS
Current Assets
Checking/Savings
1010 · Petty Cash 300.00
1060 · Umpqua Checking Acct 0560 4,144,757.57
1071 · Umpqua Deposit Cntrol Acct 8215 6,771,686.83
1075 · Umpqua Reserve Account 2300 32,000,000.00
1077 · JP Morgan Chase Act 74999 399,967.48
Total Checking/Savings 43,316,711.88
Total Accounts Receivable 2,635,469.39
Other Current Assets
1101 · Allowance for Doubtful Accounts -11,790,959.76
1103 · Accounts Receivable-Other 16,644,840.72
1120 · Inventory Asset 18,614.90
1205 · Prepaid Insurance 48,040.70
1210 · Retentions Receivable 40,257.39
Total Other Current Assets 4,960,793.95
Total Current Assets 50,912,975.22
Total Fixed Assets 9,997,475.14
Other Assets
1700 · Security Deposits 682,699.12
Total Other Assets 682,699.12
TOTAL ASSETS 61,593,149.48
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable 10,612,014.25
Total Credit Cards 32,496.58
Other Current Liabilities
2002 · Deposits Refundable 1,013,130.01
2011 · NEM Escrow Liability 213,182.04
2013 · Unearned Revenue 2,447,267.50
Total 2100 · Payroll Liabilities 217,571.17
Total 2200 · Accrued Expenses 13,821.73
Total Other Current Liabilities 3,904,972.45
Total Current Liabilities 14,549,483.28
Total Long Term Liabilities 5,930,836.64
Total Liabilities 20,480,319.92
Equity
3900 · Fund Balance 34,772,769.28
Net Income 6,340,060.28
Total Equity 41,112,829.56
TOTAL LIABILITIES & EQUITY 61,593,149.48
22
STAFF REPORT
Agenda Item # 5.3
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Faith Carlson, Regulatory and Legislative Policy Manager Kyle Groben, Regulatory and Legislative Policy Intern
SUBJECT: RCEA Regulatory and Legislative Report
BACKGROUND
The RCEA Board of Directors adopted the RCEA 2025 Policy Platform in May 2025 to serve as a guide for RCEA’s staff regulatory and legislative engagement based on the principles set forth in RCEA’s RePower Humboldt strategic plan.
In accordance with the procedures as described in the Platform, staff keeps the Board apprised of legislative stances taken by RCEA through periodic reports summarizing RCEA’s legislative engagement. This update covers staff actions since March 2025.
STAFF REGULATORY AND LEGISLATIVE ENGAGEMENT
By law, RCEA abides by the mandates and regulations of several governing institutions within the state of California, including the California Energy Commission (CEC), California Public Utilities Commission (CPUC), California Independent System Operator (CAISO), California Air Resources Board (CARB), and others.
RCEA engages with governing bodies through a few advocacy groups, both for regulatory and legislative issues. The key advocacy groups RCEA participates in are California Community Choice Association (CalCCA) and Joint CCAs. These groups track, draft and submit comments on, and engage in stakeholder groups on issues brought to their attention by their membership.
A summary of tracked legislation and CalCCA positions on various bills from this session is attached, as well as a list of key regulatory topics in which CalCCA or Joint CCAs engage.
In addition to advocacy through CalCCA, RCEA staff have conducted the following advocacy:
• RCEA staff have engaged CAISO on issues including progress towards transmission development for the new Humboldt offshore wind transmission line, Resource Adequacy for new and existing microgrids, Resource Adequacy for new and existing Energy Only projects, and the Transmission Planning Process. In Humboldt County, we have very low transmission capacity, which also leads to a low quantity of Transmission Plan 23
Deliverability (TPD). TPD is needed for resources to be eligible for Resource Adequacy.
The lack of available TPD locally negatively affects our ability to build local resources. We have requested that CAISO consider including incremental TPD over what is needed for offshore wind transmission for the benefit of local development. We have also requested that CAISO require the transmission developer to conduct rigorous engagement with local stakeholders. We will continue to engage CAISO and other relevant stakeholders on these issues.
• RCEA staff continued to file supportive comments on the CEC’s wave and tidal energy efforts. Comments on the Draft Sea Space Analysis generally stated that the outreach and engagement conducted in preparation the analysis should include Load Serving Entities, encouragement for continued exploration of the co-location of wave energy with other large energy infrastructure, and a suggestion to explore the potential and policy pathways for projects of varying sizes, such as research scale projects. • Federal advocacy for TERAS (Tribal Energy Resilience and Sovereignty) project funding:
o Tribal partners have led outreach efforts with RCEA supporting and sharing information as requested.
• RCEA, alongside a variety of other stakeholders including another CCA, have conducted various activities to encourage the continuation of the BioMAT program beyond its current 2025 sunset date. Activities included a joint letter to the Governor’s office, and multiple CPUC filings. The program is set to close December 31, 2025, while only 20% of the required Megawatts have been developed.
• Northern Rural Energy Network (NREN) is engaged in the CPUC’s Energy Efficiency Rulemaking, Distributed Energy Resources Proceeding, and Decarbonization Proceeding in order to defend funding and programs NREN is currently running or would like to offer in the future.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA’s Policy Platform is guided by RCEA’s Strategic Plan. Whenever making advocacy decisions for a given proceeding or issue, RCEA staff references the Policy Platform, and if the topic is not well defined within the platform, consults the Board.
EQUITY IMPACTS
This report reflects legislation that is intended to improve CCAs’ abilities to tailor services to meet the needs of their local communities which are often unique in their constituent marginalized populations.
FINANCIAL IMPACT
Budgeted staff and legal costs.
STAFF RECOMMENDATION
Accept Regulatory and Legislative Platform Engagement Report. 24
ATTACHMENTS
1. Tracked Legislation
2. CalCCA and Joint CCA Regulatory Engagement
25 This page
intentionally
left blank.
26 Tracked Legislation Based on Language as of 6/17/2025 Affordability
Bill Author Position Status Summary
AB 729 Zbur (D) Support Senate – Energy,
Utilities, and
Communications
Would provide ratepayer bill relief by shifting when
residential customers receive the California
Climate Credit.
SB 254 Becker (D)
& Wahab
(D)
Support Assembly – Utilities
and Energy
The Senate’s affordability omnibus proposal.
SB 302 Padilla (D) Support Assembly- Revenue &
Taxation
Would conform CA environmental tax credits with
federal tax credits.
SB 330 Padilla (D) Support Assembly – Utilities
and Energy
Would allow public financing pilots for transmission
projects.
Building Decarbonization and Distributed Energy Resources Bill Author Summary
AB 306 Schultz (D) Oppose
unless
Amended
Senate - Housing Would, from 6/1/25 to 6/1/31, inclusive, prohibit a city or county from making changes to building
code that are applicable to residential units, unless
a certain condition is met. This would pause the
implementation of reach codes. Intended for
rebuilding communities affected by January 2025
wildfires.
AB 740 Harabedian
(D)
Support Senate- Energy,
Utilities, and
Communications
CEC would report to Leg report on virtual power
plants (VPPs) on electricity costs and rate reduction
and implementation plan that includes goals and
milestones. There would potentially be a
compliance filing by RCEA associated with this
report.
SB 541 Becker (D) Oppose Assembly – Utilities
and Energy
Would create a load-shifting mandate for all
LSEs to reduce net peak electrical demand
as identified in the latest IEPR.
Infrastructure
Bill Author Summary
AB 303 Addis (D) Oppose Dead Battery energy storage systems would no longer be eligible for CEC environmental review and must go
through local review. Would not allow development
of battery energy storage systems in
27 environmentally sensitive sites, or within 3,200 feet of sensitive receptors, which includes residences,
education facilities, community centers, health
care facilities, publicly accessible businesses,
making it challenging to meet state procurement
requirements.
AB 526 Papan (D) Support Dead Would require the CEC to publish a strategic plan for the development of new in-state geothermal
energy in California by 6/30/27 and evaluate and
quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, employment, and decarbonization
benefits, and to establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045.
AB 527 Papan (D) Support Senate -
Environmental Quality
Geothermal exploratory project which satisfies
federal NEPA exemption would be presumed to
have satisfied requirements of CEQA.
AB 531 Rogers (D) Support Senate – Energy,
Utilities, and
Communications
Would allow geothermal power to use CEC’s AB
205 “opt-in” permitting process in lieu of local
permitting.
AB 941 Zbur (D) Support Dead Accelerated review (270 days) for CEQA for transmission projects.
SB 283 Laird (D) Support, if
Amended
Assembly – Utilities
and Energy
Would establish safety standards for
battery energy storage systems.
Other
Bill Author Summary
AB 706 Aguiar-Curry (D)Support Senate – Natural
Resources and Water
Would establish the Forest Organic Residue and
Safety Transformation (FOREST) and
Wildfire Prevention Fund and the fire fuel reduction
program.
SB 540 Becker (D) Support Assembly - Desk Would authorize the California Independent System Operator (CAISO) and the electrical corporations
that are participating transmission owners whose
transmission systems are operated by the CAISO, in
lieu of the CAISO managing related energy markets,
as provided, to use energy markets governed by an
independent regional organization, provided that
specified requirements are satisfied. Often called
“regionalization”. This would enable most load
serving entities in the state of California to join a
regional energy market.
SB 842 Stern (D) Neutral Assembly – Utilities
and Energy
Directs the CPUC to ensure that all LSEs
consider all resource options to meet local
reliability needs with firm zero-carbon
resources in their IRPs.
28 1
CalCCA and Joint CCA Regulatory Engagement
CalCCA Managed Cases
Key Agency Topic Summary
CPUC Demand Flexibility Focuses on leveraging demand response as a critical resource in integrated
resource planning, which includes
ratemaking. Current issues include the
implementation of the Income Graduated
Fixed Charge (IGFC) and Dynamic Rates.
CPUC Diablo Canyon Extension
Operations
Establishes RA allocations of Diablo
Canyon’s extended operations, cost of
extended operations and cost recovery,
and how performance fees will be spent.
CPUC Disconnections Relates to rules and programs surrounding customer disconnection.
CPUC Distribution: Distributed Energy
Resources
Relates to rules surrounding distributed
energy resource, such as cost
effectiveness, data access, and equipment
performance standards.
CPUC Distribution: Energization
Timelines
Implementation of SB 410 and AB 50,
which focus on the establishment of
reasonable average and maximum
energization target time periods, and
procedures for customers to report
energization delays to the CPUC. Targets
have been established. The next phase of
the proceeding covers compliance
reporting and penalties for non-compliance.
CPUC Distribution: High Distributed
Energy Resource Future
Streamlining of the distribution planning
process to better reflect known loads and
resources, equitable grid planning, and
allow for data access. Also covers smart
inverter use cases and cost recovery for
grid modernization.
CPUC Energy Resource Recovery
Account (ERRA)
Filed annually by each of the Investor-Owned Utilities (IOUs) as both a forecast of expected energy procurement-related
revenue requirements and as a retroactive
compliance review.
CPUC General Rate Case (GRC) In four-year cycles, IOUs submit GRC applications for authority to adjust rates
and charges for
29 2
CalCCA Managed Cases
Key Agency Topic Summary
electric and gas service. The revenue
requirements include electric and
gas distribution system costs,
administrative expenses, and customer
service costs
CEC Integrated Energy Policy Report
(IEPR)
A biennial holistic report assessing energy
issues facing the state. The preparation of
this report includes the load forecasting
process, which drives energy planning and
procurement requirements for Load
Serving Entities.
CPUC Integrated Resource Planning
(IRP)
Focuses on the implementation and
reform of California’s Integrated Resource
Planning (IRP) program to ensure sufficient
resource procurement and development
and compliance with California’s GHG
(Green House Gas) reduction and
reliability goals. This process feeds into the
state’s Transmission Planning Process at
CAISO. This is currently focused on
reforms to better align the IRP program
with the Resource Adequacy (RA) and
Renewables Portfolio Standards (RPS)
programs through an initiative called the
Renewable and Clean Power Procurement
Program (RCPPP).
CAISO Interconnection Process
Enhancements (IPE), Congestion
Revenue Rights (CRR),
Transmission Planning Process,
and Demand and Distributed
Energy Market Integration.
CAISO is responsible for bulk power
systems, transmission operation, and
California’s electricity market
participation. Current reforms RCEA
engages in are related to the acceleration
of the interconnection study process for
new resources, transmission
capacity/transmission plan deliverability to
resources for RA eligibility, congestion of
transmission capacity, transmission
planning, and a NEW initiative related to
distribution grid resources. CalCCA
engages on additional issues at CAISO,
however RCEA tracks those less closely at
this time.
30 3
CalCCA Managed Cases
Key Agency Topic Summary
CPUC Power Charge Indifference
Adjustment (PCIA)
This rulemaking considers changes to the
PCIA as well as rules and processes
applicable to the ERRA annual forecast and
compliance proceedings.
CPUC PG&E Helms Uprate Application PG&E proposal to increase the capacity of the existing Helms pumped storage facility
and allocation of costs and benefits.
CPUC Provider of Last Resort (POLR) If a Load Serving Entity (LSE), such as a CCA, ceases business operations, their
customers will be returned to the Provider
of Last Resort (POLR). This proceeding
relates to the Financial Security Rating
(FSR) and monitoring needed to mitigate
that risk. This proceeding has recently
moved into Phase 2, which will delve into
topics related to the feasibility of a non-IOU POLR.
CPUC and
CEC
Renewable Portfolio Standard
(RPS)
Program that required load serving
entities to reach continuously escalating
renewable energy procurement goals.
CPUC and
CAISO
Resource Adequacy (RA) Focuses on the implementation and reform of California’s RA program, which
was designed in response to California’s
energy crisis to ensure safe and reliable
operation of the grid. Current activity
relates to Local Resource Adequacy
Central Procurement reform and the
setting of Planning Reserve Margins at the
CPUC and RA counting, cost allocation, and
treatment of outages at CAISO.
CPUC Rule 30 PG&E submitted an application for a new
interconnection rule for new transmission
level customers. This rule could apply to
potential data centers or manufacturing.
Previously a Joint CCA Effort. CalCCA has
taken up management of this proceeding
and is working to ensure fair treatment of
CCAs under the potential new rule and
access to load planning data.
31 4
Joint CCA Managed Cases
Key Agency Topic Summary
CPUC BioMAT This issue is largely in the implementation phase at this time, though there is ongoing
regulatory effort to extend the sunset date
of this program.
CEC, CPUC Building Decarbonization A suite of programs that aim to reduce Green House Gas (GHG) emissions from
buildings.
CPUC De-Energization Rulemaking related to utility power shutoffs, including Public Safety Power
Shutoffs (PSPS).
CEC, CPUC Demand Response and Energy
Efficiency
This issue relates to demand response
programming or energy efficiency
program.
CPUC Microgrids Rulemaking that addresses microgrid
policy, including programs, rules, and
rates.
CPUC Net Billing Tariff (NBT) Rulemaking related to the development and implementation of Net Billing Tariff
(NBT) and related rates.
CPUC PG&E Safety Culture This issue focuses on wildfire management related issues, including PG&E compliance,
and proactive measures such as
undergrounding.
CPUC and
CEC
Renewable Financing Issues tracked related to On-Bill Financing, Tariff-On-Bill, Go Green Financing, and
other funding efforts.
CEC, CPUC,
and CARB
Transportation Electrification CEC Clean Transportation Program, CPUC proceeding of Transportation
Electrification Policy and Infrastructure
(TEPI), and updates to CARB Low Carbon
Fuel Standard (LCFS) implementation,
targets, and compliance.
32
STAFF REPORT
Agenda Item # 5.4
AGENDA DATE: June 26, 2025
TO: RCEA Board of Directors
FROM: Faith Carlson, Regulatory and Legislative Policy Manager Kyle Groben, Regulatory and Legislative Policy Intern
SUBJECT: Federal Activity Update
SUMMARY
As of June 16, President Donald Trump signed 164 Executive Orders, 44 Memoranda, and 69 Proclamations during his second term. Many of these actions have implications for the energy sector or to trade. Although RCEA’s routine operations are not federally funded, these Executive Orders will affect our work. Currently, the only RCEA project directly impacted by these orders continues to be the Tribal Energy Resilience and Sovereignty project (TERAS), which is currently under review by the Department of Energy (DOE). Many of these executive orders already face legal challenges which may affect their implementation.
Energy related measures have started gaining traction in Federal Legislature, some of which would affect programs that stack with RCEA and NREN programs.
EXECUTIVE BRANCH
Presidential Actions
Since the last Board meeting, there have been a handful of Presidential Actions related to energy and the environment. These actions support the nuclear industry, increase tariffs on aluminum and steel, encourage seabed mining for critical minerals, and discourage the removal of hydroelectric dams. Please see the attachment to this staff report for information on individual actions.
The implementation of past Presidential Actions has started to slowly roll out across various executive agencies and departments.
• In response to the Executive Orders “Unleashing American Energy” and “Declaring a National Energy Emergency”, on May 8, the Bureau of Land Management issued an Instruction Memorandum that sets out a policy to increase the lands offered for onshore oil and gas sales, decreasing leasing timeframes, and ensure oil and gas lease sales follow federal law.
• In response to various orders related to deregulation, on May 12, the Department of Energy announced a proposal to eliminate or reduce 47 regulations related to energy efficiency, permitting, funding, incentives, energy trade, greenhouse gas reporting, and fossil fuels.
33
• Likely due to an Executive Order related to offshore wind, on April 16, the Department of the Interior’s Bureau of Ocean Energy Management ordered a stop-work order on Empire Wind, a fully federally-permitted offshore wind project off the coast of Long Island, New York. The order was lifted on May 19.
• As part of the implementation of the Executive Order “Unleashing American Energy” dated May 5, the White House’s Office of Information and Regulatory Affairs issued a Memorandum directing agencies to review their policies to limit the consideration of the social cost of carbon. As part of the implementation of the same executive order, on May 28 the Council on Environmental Quality withdrew guidance for considering climate pollution and environmental justice during environmental review. • In response to Executive Order “Unleashing American Energy” and to deregulatory orders, on June 11 the National Highway Traffic Safety Administration began a process to reset Corporate Average Fuel Economy rules and delay enforcement. This does not change existing standards but does address how future revisions will be approached. • Not technically related to an Executive Order, we are expecting a change in leadership at the Federal Energy Regulatory Commission (FERC), which regulates transmission and wholesale electricity. In January, President Trump nominated FERC Commissioner Mark Christie to serve as the Chairman of the agency. However, June 2, President Trump suddenly announced that Christie’s term would expire June 30 and nominated Laura Swett, energy litigation counsel and former FERC legal and policy advisor.
The Federal Budget
Linked is President Trump’s Draft Budget Recommendations from early May, as shared with the U.S. Senate Committee on Appropriations. The White House’s Budget Recommendations can be helpful to glean what policies to expect over the coming term, as well as what language to use when speaking to the administration. The recommendations include major cuts to climate change, environmental programs and research, economic development, and renewable power, with additional funding for port infrastructure, trade enforcement.
While the House and Senate need to approve final budget resolutions for budgets to become final, this should still help us predict what types of Federal grant opportunities we should expect to be available over the next few years. Note that the House has already approved their “One, Big, Beautiful Bill” budget resolution. Budget discussions are currently occurring in the Senate.
Finally, for some funding optimism from the Executive Branch, announced in late May, this year’s finalists for DOE EPIC funding include technologies related to fossil fuel to energy efficiency improvements, AI-powered grid asset monitoring, and encouragingly, renewable technologies, such as the recovery of critical minerals from industrial waste streams, geothermal drilling technology, and U.S. made lithium batteries.
LEGISLATIVE BRANCH
On May 22, “The One, Big, Beautiful Bill” passed the U.S. House of Representatives with stricter language around tax credits for green energy projects. The One Big Beautiful Bill Act (H.R. 1) is the over 1,000-page budget reconciliation legislation of the majority party in the House of Representatives. The Senate is currently working on markups and hoping to finish 34
their revisions and pass the bill by July 4. Notably, four Senators from the majority party wrote a letter expressing support for a stable and predictable tax framework to promote development of energy resources. There are two alternate proposals for treatment of tax credits currently still in the U.S. House of Representatives. It is a fluid situation, and much could change in the interim.
RCEA has been engaging in this legislation through a CalCCA Federal Discussion group, which works closely with LEAN (Local Energy Aggregation Network). LEAN advocates on behalf of CCAs nationwide. For more information on the engagement to date, register here for a webinar Wednesday June 22 from 11 a.m. - 12 p.m.
On May 22, the U.S. Senate passed three Congressional Review Act resolutions that overturned waivers allowing California to adopt stronger emissions standard than the national standard.
JUDICIAL BRANCH
On May 23, the U.S. District Court for the Northern District of California judge extended a freeze on federal worker layoffs stating that President Trump needs congressional cooperation for widespread changes. Plaintiffs in the case consist of a coalition of state and local governments, nonprofits, and local, state, and federal labor unions.
On May 28, the U.S. Court of International Trade stated that President Trump cannot use the International Emergency Economic Powers Act to set worldwide tariffs or set varying tariffs on specific countries and ruled in favor of a permanent repeal of the Executive Orders issuing the tariffs. Trump Administration appealed and was granted a temporary pause of the ruling, allowing the tariffs to continue.
On the 12th of June, California and a coalition of 10 other states filed a lawsuit requesting the court to declare that resolutions overturning emissions standards waivers have no effect on the status or enforceability of state emissions control programs.
IMPACTS
The full scope of impacts continues to be uncertain. As a result of some of the above actions, there may be state and local policies related to decarbonization that are identified for litigation.
Generally, these actions are influencing the economy, the pace of renewable energy project development, and the cost of energy.
In late May, Moody’s, one of the Big Three credit rating agencies, lowered the United States government’s federal credit rating and predicts a downward trend due to increased government debt and interest payment ratios.
Recent Executive Orders will likely lead to increased nuclear development and continue the trend of investment in ocean critical resource mining. Agency actions, such as streamlining regulations and permitting, could speed up timelines for some projects. However, offshore wind and vehicle emissions development may be negatively affected. There is potential for increased support for port development in Humboldt County, though likely not related to offshore wind. 35
With regards to tariffs, it is challenging for both buyers and sellers of renewable energy to assess the market impacts of tariffs until trade discussions settle. Tariffs have led to an increase in imported energy prices and affected the supply chain needed to build energy infrastructure, resulting in slower timelines and increased costs. We may generally see lower business and consumer activity, leading to lower electricity demand. Rising costs of materials are already causing increasing procurement costs for load serving entities, leading to additional consumer-side energy affordability concerns. Lastly, it is worth noting that while the solar industry relies less on countries with the highest tariffs, the battery industry heavily relies on such goods.
As passed in the House, “The One, Big, Beautiful Bill” introduces significant changes to renewable energy tax credits, complicating project financing. Combined with supply chain challenges due to tariffs, load serving entities are likely to see project delays and increased costs.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Staff will continue to track Federal actions and identify those that may impact RCEA’s ability to deliver on the goals and strategies in the RCEA strategic plan.
FINANCIAL IMPACT
The TERAS project’s $88 million in federal funding has been paused. The broad financial impacts are currently unknown.
STAFF RECOMMENDATION
Receive federal activity report.
ATTACHMENTS
RCEA-Relevant Presidential Actions
36 RCEA-Relevant Presidential Actions
Actions Related to Energy and the Environment
Date Action Summary Notes
5/23/2025 Executive Order:
Reinvigorating
the Nuclear
Industrial Base
The nuclear capacity of the United States
has waned in the past 40 years, especially
in relation to other countries. U.S. nuclear
infrastructure is highly dependent on
foreign uranium sources. By January 18th,
2026, the Secretary of Energy to release a
report covering spent nuclear fuel and
waste management, identifying
necessary/desirable legislative changes
regarding nuclear waste management,
reprocessing and recycling spent nuclear
fuel, and considerations for transferring
spent nuclear fuel to government owned,
privately operated recycling facilities, and
by September 20th, 2025, develop a plan to
expand domestic uranium conversion
capacity. The DOE should facilitate 5GW
uprates to existing nuclear reactors and 10
new large reactors under construction by
2030.DOE Loan Program Office to support
nuclear energy by restarting closed nuclear
plants, and increasing outputs,
construction, and improvements. Includes
additional language supporting nuclear
energy workforce development.
-Nuclear energy
production and
operation projects
will be expedited,
promoted, and
increased.
5/23/2025 Executive Order:
Reforming
Nuclear Reactor
Testing at the
Department of
Energy
Orders the deregulation of compliance
requirements for research and
development of advanced nuclear reactors
in hopes to diversify energy supply. This will
be done through the revisal of regulations,
guidance, and procedures of DOE to
expedite review, approval, and deployment
of advanced reactors. The Secretary of
DOE will create a team of representatives
from their office, relevant National
Laboratories, and DOE General Counsel to
assist applicants in expediting the process.
A pilot program will be created for the
construction and operation of at least three
reactors. The DOE reform rules of
compliance with the National
37 Environmental Policy Act (NEPA) by June
30, 2025.
5/23/2025 Executive Order:
Ordering the
Reform of the
Nuclear
Regulatory
Commission
This order is dedicated to the reform of the
Nuclear Regulatory Commission (NRC)
with the intention of increasing nuclear
energy output. The policy of this Order is to
increase nuclear energy capacity from
100GW in 2024 to 400GW in 2050 by
utilizing new technologies and lowering
regulatory and cost barriers. The NRC shall
be reorganized under DOGE consultation
so that application processing and
technology adoption can be expedited. A
total review and final revision of regulations
and guidance documents will occur within
18 months of this order. The NRC should
reconsider radiation limits in consultation
with the DOD, DOE, and EPA. An expedited
pathway for reactor designs tested by DOD
or DOE will be established as well as a
revision of the Reactor Oversight Process
with the goal of reducing unnecessary
burdens.
5/23/2025 Executive Order:
Deploying
Advanced
Nuclear Reactor
Technologies for
National
Security
This order intends to increase nuclear
energy capacity while strengthening
national security. A program shall be
established to utilize nuclear energy for
military installations and operations with
all domestic military bases operating or
installing nuclear reactors by September
28th, 2028. The Secretary of Energy shall
designate AI data centers that are located
at or operated in DOE facilities to be
critical defense facilities. All legal
authorities of the Secretary of Energy shall
be used to authorize the design,
construction and operation of privately
funded advanced nuclear reactor
technologies at DOE sites to power AI
infrastructure, national security needs,
supply chain items, or onsite
infrastructure. By August 21st, 2025, all
uranium and plutonium material in DOE
inventories that are eligible for recycling or
processing must be identified. Over 20
metric tons of high assay low-enriched
38 uranium (HALEU) will be made readily
available for any project authorized and
regulated by DOE for powering AI. This EO
will also increase nuclear related exports
through focus on renegotiating 123
agreements.
06/03/2025 Presidential
Proclamation:
Adjusting
Imports of
Aluminum and
Steel into the
United States
This proclamation increases tariff rates
for imports of steel articles, derivative
steel articles, aluminum articles, and
derivative aluminum articles from 25% ad
valorem to 50% ad valorem. The UK is not
affected by this due to the US-UK
Economic Prosperity Deal.
This may increase
the costs of solar
panel, EV chargers,
etc.
06/06/2025 Presidential
Proclamation:
National Ocean
Month, 2025
This proclamation acts as a pledge to
utilize resources found within the
oceans that border the United States. This
is an effort to revitalize the development of
offshore exploration, production, and
processing of minerals from sea-beds.
Rare earth
materials may
become more
affordable/accessi
ble with an
increase in deep
sea mining.
06/12/2025 Presidential
Memorandum:
Stopping Radical
Environmentalis
m to Generate
Power for the
Columbia River
Basin
Disavows and revokes previous
presidential memorandums that promoted
the restoration of fish populations and
breached 4 hydroelectric dams. Within 30
days, the heads of departments to report
actions to return Federal funds related to
this effort and withdraw from the MOU to
remove these dams. .
Though this keeps
clean baseload
power online, this
has potential to
hold precedent
with future
decisions of local
river/dam affairs.
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intentionally
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40
STAFF REPORT
Agenda Item # 5.5
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Juliette Bohn, Infrastructure Programs Manager Lori Biondini, Business Planning & Finance Director
SUBJECT: Regional Resilience Grant Program Equipment Purchase
BACKGROUND
In December 2023, RCEA was awarded $3 million from the California Governor’s Office of Land Use and Climate Innovation Regional Resilience Grant Program (RRGP) to plan and implement the Energy-Resilient Fire Services in High-Threat Communities project. The project includes installing resilient energy systems (solar plus battery energy storage) at fire stations that serve high-fire risk areas in remote communities in Humboldt County. The RRGP Project Partners (e.g., fire departments, fire districts) will own and operate the energy system equipment once the project is complete.
Based on the preliminary design concepts for each site, five of the sites will utilize mobile “solar trailers” that will provide mobile solar plus battery energy storage systems for those sites.
SUMMARY
Staff solicited quotes from five manufacturers for the cost to provide and deliver five solar plus battery trailer systems with the following specifications:
• Minimum 2kW photovoltaic array with performance warranty • Minimum 24kWh LiPO4 Battery Energy Storage System (BESS) with performance warranty
• Must have AC output capability to provide a connection to the fire stations via a minimum 30A generator cable or better.
• Multiple AC output options
• Mobile trailer that can be towed by a mid-size or full-size vehicle. • Trailer must be CA legal and able to be registered in CA. • BESS with ability to be charged by auxiliary generator.
Staff received five quotes ranging in prices from $31,420 to $56,702 per trailer.
RCEA selected the quote that was the lowest cost, which was submitted by RPS Solar Pumps.
Staff are seeking Board approval to purchase five mobile solar trailers for a cost of $157,101. 41
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The Energy-Resilient Fire Services in High-Threat Communities project fulfills the following RePower goals:
• Goal # 1.2.1 - Develop Emergency Response Capabilities • Goal # 1.4.8 - Develop Programs that Foster Social Equity • Goal # 2.1.1 - Support Member Agency and Local Government Energy Management • Goal # 2.1.4 - Perform Energy Assessments
• Goal # 2.1.5 - Integrate Distributed Energy Resources • Goal # 2.1.7 - Support and Deploy Microgrids
• Goal # 2.4.1 - Support Customer Installation of Distributed Generation • Goal # 4.1.1 - Maximize the Use of Local Renewable Energy to the Extent Technically and Economically Feasible and Prudent.
EQUITY IMPACTS
The Energy-Resilient Fire Services in High-Threat Communities 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. d) For energy projects in which RCEA takes an active role in inception, development, ownership and/or operation, staff will work with private partners to collaborate and inclusively engage with local communities throughout the development process, rather than a “decide-announce-defend” approach.
FINANCIAL IMPACT
The cost of these five solar plus battery system trailer units is $157,101. This expense is within the grant budget for this equipment.
STAFF RECOMMENDATION
Authorize the purchase of five Sun Titan L30 Power Trailers from RPS Solar Pumps at a price not to exceed $157,101 and authorize the Executive Director to execute all applicable documents in fulfillment of Regional Resilience Grant Program requirements. 42
ATTACHMENTS
• Regional Resilience Grant Program Project Synopsis
• RRGP Project Locations Map
43 This page
intentionally
left blank.
44 RRGP Project Overview
In December 2023, RCEA was awarded $3M from the California Governor’s Office of Land Use and Climate Innovation Regional Resilience Grant Program (RRGP) to plan and implement the Energy-Resilient Fire Services in High-Threat Communities project. The project plan is to install resilient energy systems (solar + battery energy storage) at 16 fire stations and one emergency services communications tower that serve high-fire risk areas in remote Humboldt County communities. Fire stations are essential to resilience planning as they are the first to respond when disasters strike and address many routine non-fire medical emergencies on a day-to-day basis.
The goal of this work is to provide onsite electricity during emergencies and power outages so that critical services provided by fire stations remain available. • 11 fire stations and the emergency communications tower will receive fixed solar + battery equipment (roof and awning mounted).
• 5 fire stations will receive mobile trailer-mounted solar + battery systems.
The grant funds also support ongoing prescribed burn training provided by the Briceland Volunteer Fire Department in collaboration with the Humboldt County Prescribed Burn Association. The RRGP project is to be completed by January 2027.
RRGP Project Partners:
1. Yurok Tribe Volunteer Fire Department,
2. Hoopa Tribe Volunteer Fire Department,
a. Hoopa emergency communications tower,
3. Karuk Department of Natural Resources,
4. Blue Lake Volunteer Fire Department,
5. Telegraph Ridge Volunteer Fire Company,
6. Honeydew Volunteer Fire Department,
7. Fruitland Ridge Volunteer Fire Company,
8. Orick Volunteer Fire Department,
9. Orleans Volunteer Fire Department,
10.Petrolia Volunteer Fire Department,
11.Salmon Creek Volunteer Fire Company,
12.Bridgeville Fire Protection District,
13.Briceland Volunteer Fire Department,
14.Whitethorn Fire Protection District,
15.Willow Creek Volunteer Fire Department,
16.Westhaven Volunteer Fire Department
45 Regional Resilience Grant Program
Project Locations
RRGP_system types
Roof Mount
Mobile
46
STAFF REPORT
Agenda Item # 5.6
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Lori Biondini, Business Planning and Finance Director SUBJECT: Application to Umpqua Bank’s Commercial Card Program
SUMMARY
Currently, RCEA business credit card purchasing is done via two individual Umpqua Bank Visa cards issued to the Deputy Executive Director and Director of Business Planning and Finance from Elan Financial Services. Staff would like to apply to Umpqua Bank Treasury Management’s Commercial Card Program that would better serve RCEA needs. For example, access to unlimited card numbers would allow for better monitoring and tracking of various online purchasing such as social media advertising and IT services and supplies; and would allow employees to request a card with their name on it to use for travel.
As part of the application for the Commercial Card Program, Umpqua Bank requires a resolution by the RCEA Board of Directors and submittal of RCEA policy and procedures regarding use of credit cards. For reference, RCEA’s current Credit Card Policy and Procedure is attached. This will be included in the application.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Agency purchasing is a necessary administrative function supporting RCEA strategic plan goal implementation.
EQUITY IMPACTS
Not applicable.
FINANCIAL IMPACT
Staff time spent processing employee purchase and travel reimbursement requests and check payments will be replaced by reconciling employee credit card purchasing and monthly statements. The net effect on accounting staff will be null, but the burden will be reduced for employees who receive a Commercial Card for RCEA business travel or purchasing. Utilizing separate credit card numbers for different vendors would also reduce staff time needed to address any fraudulent activity that occurs.
47
STAFF RECOMMENDATION
Adopt Resolution 2025-2, Authorizing Agreement with Umpqua Bank Commercial Card Program, direct staff to apply to the Program, and authorize the Executive Director to execute any necessary agreements.
ATTACHMENTS
1. Resolution 2025-2 Authorizing Agreement with Umpqua Bank Commercial Card Program
2. RCEA Credit Card Policy and Procedure
48
RESOLUTION NO. 2025-2
OF THE BOARD OF DIRECTORS
OF THE REDWOOD COAST ENERGY AUTHORITY
AUTHORIZING AGREEMENT WITH UMPQUA BANK COMMERCIAL CARD
PROGRAM
WHEREAS, Credit cards and purchasing cards are mechanisms for purchasing goods and services for the convenience of RCEA; and
WHEREAS, the UMPQUA BANK has negotiated with RCEA to provide a Purchasing Card Program for vendor payments, purchasing and travel transactions; and WHEREAS, UMPQUA BANK requires an application for credit approval, a resolution by the RCEA Board of Directors, and RCEA policy and procedures regarding use of the credit cards; and
WHEREAS, RCEA has a standard practice procedure for using credit cards as required by the Program.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Redwood Coast Energy Authority directs the following actions:
a. Authorize participation with Umpqua Bank in the Purchasing Card Program b. Authorize the application to the Program for credit cards or purchasing cards c. Authorize the Executive Director to execute any necessary agreements d. Authorize the Executive Director, Deputy Executive Director, and Director of Business Planning and Finance to add new participants or cancel former employees.
Adopted this day of , 2025
ATTEST:
______________________________ ____________________________ Scott Bauer, RCEA Board Chair Lori Taketa, Clerk of the Board Date: _________________________ Date: ________________________ 49
CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution No. 2025-2 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the ____ day of __________________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Clerk of the Board, Redwood Coast Energy Authority
50 Last revision: 2025-06-16 - 1 -
Redwood Coast Energy Authority
Credit Card Policy and Procedure
1. Purpose
a. To establish policies and procedures for the use of Redwood Coast Energy Authority (RCEA) credit cards.
2. Policies
a. RCEA may issue credit cards to certain employees for expenses incurred during RCEA related business in conjunction with the employee’s job duties. b. Issuance of a RCEA credit card must be approved by the Executive Director and the Director of Finance and Business Planning.
c. Use of a RCEA-issued credit cards is a privilege, which may be withdrawn for any reason.
d. The cardholder is responsible for all charges made to the credit card. The cardholder will be held liable for any unauthorized charges appearing on the credit card statement unless the activity is found to be fraudulent.
e. Personal purchases of any type are strictly prohibited. If the card is used for personal purchases or for purchases for any other entity, RCEA will be entitled to a reimbursement by the cardholder for such purchases.
f. Every instance of a credit card purchase must be accompanied by proper approval and documentation as outlined in the following Procedures to be considered authorized. g. Credit card statements will be paid in full and on time to avoid late fees and interest. h. It is the responsibility of the cardholder to follow procedures to ensure timely payment of account. Failure to do so will lead to immediate revocation of credit card privileges. i. Employees may not take cash advances on credit cards. j. A RCEA credit card is the property of RCEA. An employee leaving the employment of RCEA must surrender the credit card to a delegated RCEA staff person no later than the last day of employment.
k. Cardholders are required to sign this policy indicating they accept these terms.
Individuals who do not adhere to these policies and procedures risk revocation of their credit card privileges and/or disciplinary action.
3. Procedures
a. Issuance
i. To be considered for a RCEA-issued credit card, a RCEA Credit Card Application must be filled out and signed by the employee and approved by the Executive Director and Director of Finance and Business Planning. ii. The completed application shall be submitted by the employee to the Accounting Department, who will submit a request to the issuing bank for a credit card in the employee’s name.
iii. The Accounting Dept. will maintain all records associated with credit card issuance.
b. Purchases
i. All purchases must be made in accordance with the RCEA adopted Purchasing and Procurement Policy.
51 Last revision: 2025-06-16 - 2 -
ii. Every instance of a credit card purchase must be authorized and accompanied by an approved Purchase Requisition (PR) or Travel Authorization Form (TAF), and a receipt. Standard PR and TAF policies and procedures are to be followed. iii. All receipts smaller than 8.5”x 11” must be taped to a piece of paper to allow for scanning.
iv. Itemized receipts are preferred, and all expenses must be itemized on the PR or TAF.
v. Receipts must show amount, vendor, and purchase date. Inadequate receipts must be accompanied by a written explanation by the cardholder and may require additional approvals.
vi. It is the responsibility of the cardholder to collect and retain all documentation related to purchases.
c. Account Payment
i. Credit card statements will be emailed monthly by the issuing bank to the cardholder and the Accounting Dept.
ii. It is the responsibility of the cardholder to submit a Credit Card Packet (CC Packet) to the Accounting Department.
1. The CC Packet must be printed out and include the statement, all PRs, TAFs, and accompanying receipts.
2. Documentation for expenses must be organized in order as shown on the statement.
iii. The CC Packet must be submitted to the Accounting Dept. no later than 14 days prior to the Payment Due Date as shown on the statement. iv. Incomplete or inadequate CC Packets will be returned to the cardholder to complete before resubmitting.
v. It is the responsibility of the cardholder to ensure the Accounting Dept. has ample time to review the CC Packet, receive approvals for statement payment, and arrange for payment to be made.
vi. The Accounting Dept. will review the CC packet and submit it to the designated RCEA disbursement authorities for the required two signatures, authorizing payment of statement in full.
vii. The Accounting Dept. will prepare and submit payment upon receipt of approved CC Packet. The Accounting Dept. will retain all records related to credit card payments, including the signed CC Packet. Digital copies of final CC Packet will be available upon request.
d. Lost or Stolen Credit Cards
i. Report lost or stolen credit cards to the Accounting Department and issuing bank immediately.
ii. Fill out and sign a Credit Card Reissuance Form and submit it to the Accounting Dept. for review.
i. The Accounting Dept. will work with the issuing bank to cancel the lost or stolen CC and reissue a new one.
52 Last revision: 2025-06-16 - 3 -
Confirmation of Receipt of RCEA Credit Card Policy and Procedures As a holder of an RCEA-issued credit card, I agree to accept responsibility and accountability for the protection and proper use of the RCEA credit card. I accept and acknowledge the policy and procedures listed above. I understand that I must adhere to all related RCEA security and property policies.
Printed Name:
Signature:
Date:
53 Last revision: 2025-06-16 - 4 -
RCEA Credit Card Application Form
Employee Name:
Position:
Department:
Intended usage:
Anticipated annual
spending:
Billing classes:
Duration of usage: Ongoing Specific timeframe:
I, ___________________________, have read and agreed to the RCEA Credit Card Policies and Procedures and take full responsibility for said RCEA property and its usage. __________________________________________________ ___________________________ Employee Signature Date
______________________________ ______________________________ ________________ Executive Director Name Signature Date
______________________________ ______________________________ ________________ Dir.of Finance and Business Planning Name Signature Date Employees must submit signed Confirmation of Receipt of RCEA Credit Card PnP and application form to the Accounting Department for review.
________________________________________________________________________________ Accounting Department Use Only
Application Packet processed by: ______________________________________on date: ________________________ Name of issuing bank:
Bank request date: Bank issue date:
Application Approvals
54
STAFF REPORT
Agenda Item # 5.7
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Elizabeth Burks, Executive Director
Eileen Verbeck, Deputy Executive Director
SUBJECT: Board Operating Guidelines Revision
BACKGROUND
Staff presented the unchanged 2025 weighted Board vote distribution to the Board of Directors at their January 2025 meeting. The item was pulled from the consent calendar and the Board directed staff to gather more information on why weighted voting was adopted for the CCE program and why RCEA’s non-City and County members are not allowed to vote on CCE Program matters. In response to this request, RCEA General Counsel Nancy Diamond and RCEA staff prepared a supplemental memo to the Board for their March 2025 meeting. The memo outlined the CCA and non-CCA matter delineation for Board voting purposes, as was adopted in the RCEA Board Operating Guidelines.
In RCEA’s Board Operating Guidelines the following types of items are considered to be non-CCA program related and are voted on by the full Board:
• Adopting the annual budget
• Contracting, including CCA procurement contracts
• Organizational policies
• Organizational positions on legislative or regulatory matters (even if only related to CCA) • Personnel matters
• Financial operating policies and procedures
• Litigation or other legal matters
• Program-related matters for any programs not funded by the CCA • Agency-wide risk management matters, including primary energy-risk management policies/procedures
The Board Operating Guidelines go on to list the types of items considered to be CCA program related and therefore limited to CCA member-only voting:
1. Setting of Overall CCA Program Objectives
2. Determining power content targets
3. CCA budget decisions (which will be incorporated in the overall organizational budget)
4. Setting customer rates
5. Procurement strategy and procedures
6. CCA-funded program allocations
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7. Any policies that apply exclusively to CCA operations
SUMMARY
During the March 2025 Board meeting, staff identified that items 1, 2, and 5 (highlighted above) in the CCA voting list are fundamentally connected to RCEA’s overall strategic planning goals and initiatives. Staff recommended that these items be moved to the non-CCA voting matters list.
Additionally, staff recommended allowing the Chair to call for a roll call vote in randomized order for CCE business items at their discretion to reduce the influence of early voters on subsequent voters, particularly when early voters carry a higher weighted vote. The Board of Directors directed staff to revise the Board Operating Guidelines to incorporate these changes.
The revised RCEA Board Operating Guidelines incorporates these changes, which are shown in redline. Additionally, RCEA included funds in the proposed fiscal year 2025-2026 budget for Board Director travel. RCEA does not have a Board travel policy outlining how Board travel is approved.
Staff drafted the language below and included it in the revised Board Operating Guidelines:
Travel expenses for agency-related business will be reimbursed to Board and Community Advisory Committee (CAC) members subject to Executive Director approval obtained prior to travel. Should Executive Director approval not be obtainable, the Board or CAC member is required to obtain Board approval at a regularly scheduled or special meeting prior to travel. Board and CAC members will be reimbursed at the same rate and for the same covered expenses as RCEA employees and will follow employee reimbursement procedures as outlined in the RCEA Employee Handbook. Board Directors and CAC members must utilize RCEA staff to arrange all travel, lodging, and event registrations. RCEA’s Executive Director shall designate a staff member who is responsible for making these arrangements.
FINANCIAL IMPACTS
The changes to the delineation for Board voting purposes of CCA and non-CCA matters do not have a financial impact on RCEA. Board travel is included in the proposed budget, and prior to approval the Executive Director will ensure sufficient funds are available.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Not applicable – the changes to the Board Operating Guidelines are an operational matter.
EQUITY IMPACTS
The proposed changes to the types of items considered by the full Board allows for increased representation on those items.
RECOMMENDED ACTIONS
Adopt Resolution 2025-3 Adopting Amended Board Operating Guidelines to:
1. Require a Full Board, Non-CCE Business Vote for Setting of Overall CCA Program Objectives, Determining Power Content Targets, and Procurement Strategy and Procedures;
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2. Allow the Chair to Call for a Roll Call Vote in Randomized Order for CCE Business Items, at their Discretion; and
3. Add a Board Member Travel Policy.
ATTACHMENTS
1. Resolution 2025-3 Amending Board Operating Guidelines
2. Proposed Amended Board Operating Guidelines (redlined version) 57
RESOLUTION NO. 2025-3
OF THE BOARD OF DIRECTORS
OF THE REDWOOD COAST ENERGY AUTHORITY
REVISING THE RCEA BOARD OPERATING GUIDELINES
WHEREAS, on April 22, 2003, Redwood Coast Energy Authority (“RCEA”) was established as a joint powers authority pursuant to a Joint Powers Agreement, amended and restated December 15, 2015 (“Joint Powers Agreement”), with the mission of promoting sustainable energy initiatives that reduce energy demand, increase energy efficiency, and advance the use of clean efficient and renewable resources available in the region; and WHEREAS, RCEA is committed to putting in place a robust set of policies that are consistent with its Joint Powers Agreement to establish a solid organizational foundation for RCEA’s programs and projects; and
WHEREAS, the RCEA Board of Directors is committed to establishing practices that include all its members in decision making fundamentally connected to RCEA’s overall strategic planning goals and initiatives; and
WHEREAS, the RCEA Board of Directors recognizes the value of an informed and involved membership in decision making and the furtherance of RCEA’s mission and goals, and supports Board of Director travel for RCEA business to achieve these ends; and WHEREAS, the RCEA Board of Directors wishes to revise its operating guidelines to support the effective functioning of the Board and its efforts toward successfully implementing RCEA’s mission and purposes.
NOW, THEREFORE, BE IT RESOLVED, that the Board of the Redwood Coast Energy Authority hereby revises the RCEA Revised Board Operating Guidelines as set forth in Appendix A, attached hereto and incorporated herein.
Adopted this _ _ day of ________________, 2025
ATTEST:
Scott Bauer, RCEA Board Chair Lori Taketa, Clerk of the Board Date: Date:
58
CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution No. 2025-3 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the ____ day of __________________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
_______
Clerk of the Board, Redwood Coast Energy Authority
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APPENDIX A
REDWOOD COAST ENERGY AUTHORITY
REVISED BOARD OPERATING GUIDELINES
60 1
BOARD OF DIRECTORS
OPERATING GUIDELINES
(Adopted December 12, 2016, Resolution 2016-4)
(Revised December 18, 2017, Resolution 2017-6)
(Revised August 22, 2019, Resolution 2019-3)
(Revised June 27, 2024, Resolution 2024-7)
(Revised June 26, 2025, Resolution 2025-3)
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Section 1: INTRODUCTION AND OVERVIEW
1.1 Background and Purpose
The Redwood Coast Energy Authority (“RCEA” or “Authority”) was established on April 22, 2003, by numerous local public agencies to undertake a pilot project created and funded by the California Public Utilities Commission (“CPUC”) and Civic Well (then called the Local Government Commission or LGC), a California nonprofit membership organization. The pilot project was designed to encourage the formation of regional organizations to promote energy efficiency, conservation and increased local self-reliance. RCEA continues to implement robust energy efficiency programs. In addition to its energy efficiency programs, on December 15, 2015, RCEA launched a program to implement and administer an electric service enterprise called a Community Choice Aggregation (“CCA”), synonymously referred to as the Community Choice Energy (“CCE”) program. Through the CCE program, RCEA is the primary electric service provider to residential and commercial customers throughout RCEA’s territorial jurisdiction.
Formation of RCEA initially occurred pursuant to the execution of a Joint Powers Agreement (“Agreement”) by the County of Humboldt, the Cities of Arcata, Blue Lake, Eureka, Ferndale, Fortuna, Rio Dell, and Trinidad, and the Humboldt Bay Municipal Water District. The Yurok Tribe and the Blue Lake Rancheria became signatories to the Agreement in 2023. Each signatory to the Agreement is referred to as a “Member Agency”. The Joint Powers Agreement is the foundational document from which RCEA’s authority and powers are ultimately derived.
RCEA has established these Guidelines pursuant to Section 3.2 of the Agreement to assist the RCEA Board members in achieving RCEA’s purposes, including implementation of the Agreement’s weighted voting provisions for CCA program matters, providing rules of conduct and procedure, and assisting in the Board’s compliance with applicable state laws.
1.2 Board Member Appointment
RCEA Board members are appointed by and serve at the pleasure of their respective Member Agencies. Member Agencies also appoint alternate Board members to attend RCEA Board meetings when the primary Board member is unavailable. Board members are expected to attend every Board meeting. If unable, it is the responsibility of the Board member to arrange for their alternate’s attendance or notify the Board Clerk no later than 24 hours prior to any meeting of the Board member and alternate’s expected absence.
The primary and alternate Board members may share between each other any information each obtains during an open session of the RCEA Board. However, information obtained in a closed, or executive, session may not be shared between primary and alternate members. It is the Board member’s responsibility to regularly inform their respective Member Agencies of RCEA’s actions and decisions.
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RCEA is a public agency, legally independent and distinct from its Member Agencies. Once appointed, a Board member has full authority to vote on RCEA matters based on the best interests of RCEA. Individual Board members are not required to obtain specific direction from their respective Member Agencies prior to voting.
1.3 Board Member Removal for Cause
A Board Member may be removed by the Board for cause. Cause shall be defined for the purposes of this section as follows:
a. Unexcused absences from three consecutive Board meetings. Board members shall make every effort to notify the Chair and/or Board Clerk no later than 24 hours prior to any regular meeting of their absence. The failure to give such notice shall be deemed an unexcused absence unless the failure to give timely notice was due to emergency circumstances.
b. Unauthorized disclosure of confidential information or documents from a closed session or the unauthorized disclosure of information or documents provided to the Board member on a confidential basis and whose public disclosure may be harmful to RCEA’s interests. c. Failure to comply with RCEA’s Conflict of Interest Code and Ethical Conduct requirements listed in section 1.4.
Written notice shall be provided to the Board member proposed for removal and the governing body that appointed such Board member at least 30 days prior to the meeting at which the Board will consider removing the Board member for cause. The notice shall state the grounds for removal, a brief summary of the supporting facts, and the date of the scheduled meeting to discuss the removal. The Board member proposed for removal shall be given an opportunity to speak at the meeting and to submit any supporting oral or written evidence. The Board member shall not be removed for cause from the Board unless two-thirds of all Board members (excluding the Board member in question) vote in favor of the recommendation.
If a vacancy occurs on the Board, for whatever reason, the Board Clerk shall notify the Member Agency’s governing body that a vacancy exists. The Member Agency’s governing body shall appoint a replacement to fill the position within 90 days of the Clerk's notification.
1.4 Ethical Conduct, Conflicts of Interest
Members of the Board of Directors must comply with all California laws pertaining to conflicts of interest and ethical conduct. Conflict of interest laws generally prohibit a Board member from making or participating in the making of any decision-making in which they have a financial interest. Failure to adhere to such conflict of interest laws can expose the Board member to civil or criminal penalties, jail time, removal from office, and prevention from seeking additional public office.
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These conflict of interest laws provide the minimum standards to which the RCEA Board members are required to comply. As public servants entrusted with RCEA’s leadership, members of the RCEA Board of Directors are held to high standards of ethical conduct in order to best maintain the public’s trust and confidence in the organization. Board members are required to undergo California Assembly Bill 1234 ethics training for local government officials every two years, receiving their first training no later than one year from the first day of service on RCEA’s Board. FPPC Form 700 Statements of Economic Interest must be completed and filed with the RCEA Board Clerk annually, when assuming office, and when leaving office.
1.5 Board Meetings
Regular meetings of the Board occur every month, generally on the fourth Thursday of each month. The Board approves the annual calendar of regular meetings every year at its January meeting. Regular meetings may be changed or cancelled by Board action, or cancelled by the Executive Director if there is no quorum. Special meetings may be scheduled as needed. All Board meetings are subject to Ralph M. Brown Act advance noticing.
Board meeting agendas and packets are distributed to Board members electronically, with hard copies available on request. The Ralph M. Brown Act requires Board agendas to be posted no less than 72 hours before a regular meeting and no less than 24 hours before a special meeting. However, staff will strive to distribute the Board agenda and information packet 5 days prior to the meeting. It is the Board member’s responsibility to review all materials before the meeting in order to come prepared.
1.5.1 Agenda Development
The Board meeting agenda is generally developed by the Executive Director. No later than 10 days prior to a regular meeting, the Executive Director shall meet with the Chair, General Counsel, and staff as deemed appropriate by the Executive Director, to discuss the draft agenda.
The Board will review all agenda item requests made by individual Board members or members of the public. Any Board member or member of the public may request that an item be placed on a future Board meeting agenda by bringing the matter to the full Board at the appropriate time of a noticed meeting or by submitting a written request to the Executive Director. The Executive Director will bring written requests for future agenda items to the Board for its determination of whether to place the item on the agenda during a noticed public meeting.
Written requests for items to be placed on the agenda must, at a minimum, contain all of the following:
a. A substantive outline or summary of the information that will be presented to the Board; b. A concise statement of the specific action, if any, the Board will be asked to take on the item; and,
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c. A statement of the reasons why the requesting party believes it is appropriate and within the jurisdiction of the Board to consider this subject matter and to take the requested action.
Items requested to be placed on a future agenda by individual Board members or members of the public must be agreed to by a majority of the full Board. Items approved for future agendas shall be placed on the agenda as soon as possible with consideration for scheduling issues. The Executive Director may, in their discretion, place time sensitive items requested by an individual Board member or member of the public on the agenda for full Board discussion without the Board’s prior approval.
1.6 Selection of Board Chair and Vice Chair
By simple majority vote, the RCEA Board selects its Chair and Vice Chair every year at its January meeting. The responsibilities of the Chair include:
• Conducting the monthly and special meetings
• Attending the monthly agenda review meeting
• Being available to sign checks when necessary
The Vice Chair’s responsibilities include:
• Conducting the monthly and special meetings when the Chair is unable to • Attending the monthly agenda review meeting when the Chair is unable to • Being available to sign checks when necessary
1.7 Overview of Basic RCEA Documents
The Board has approved several key operational and planning documents, some of which come before the Board for approval on an annual basis. The following lists some of these documents. • Joint Powers Agreement
• Annual Budget
• Annual Audit
• Comprehensive Action Plan for Energy (CAPE)
• RePower Humboldt
• Guidelines for the RCEA Community Energy Program Launch-Period Strategy and Targets
• CCA Implementation Plan
• RePower Humboldt: RCEA’s Comprehensive Action Plan for Energy (2019 strategic plan update)
• Organization Chart
• Salary and Wage Schedule
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• Energy Risk Management Policy
• Board Operating Guidelines (this document)
1.8 New Board Member Orientation
In order to prepare new Board members, the Executive Director provides an orientation for new Board members. Continuing Board members as well as Member Agency officials and staff are welcome and encouraged to attend.
1.9 Board Member Travel
Travel expenses for agency-related business will be reimbursed to Board and Community Advisory Committee (CAC) members subject to Executive Director approval obtained prior to travel. Should Executive Director approval not be obtainable, the Board or CAC member is required to obtain Board approval at a regularly scheduled or special meeting prior to travel.
Board and CAC members will be reimbursed at the same rate and for the same covered expenses as RCEA employees and will follow employee reimbursement procedures as outlined in the RCEA Employee Handbook. Board Directors must utilize RCEA staff to arrange all travel, lodging, and event registrations. RCEA’s Executive Director shall designate a staff member who is responsible for making these arrangements.
Section 2: BOARD VOTING
2.1 Non-CCA Program Items, Full-Board Voting Equal Weighting A majority of the full Board constitutes a quorum for the transaction of non-CCA Program business. Each Board member present at the meeting has an equal vote in all non-CCA program business matters. The following lists the types of items considered to be non-CCA program related:
• Adopting the annual budget
• Contracting, including CCA procurement contracts
• Organizational policies
• Organizational positions on legislative or regulatory matters (even if only related to CCA) • Personnel matters
• Financial operating policies and procedures
• Litigation or other legal matters
• Program-related matters for any programs not funded by the CCA • Agency-wide risk management matters, including primary energy-risk management policies/procedures
• Setting of Overall CCA Program Objectives*
• Determining power content targets*
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• Procurement strategy and procedures*
*These items, although integral to operating the CCA, are subject to full-Board equal-weighted voting due to their fundamental connection to RCEA’s overall strategic planning goals and initiatives.
2.2 CCA Program Items, Participating Members Weighted Voting Only Board members representing Member Agencies that are CCA Program participants are eligible to vote on CCA program items (“Participating Agencies”). However, all Board members are eligible, and encouraged, to participate in Board discussions of CCA Program matters. The Chair may, at their discretion, request a roll call vote in randomized order. The vote from each Board member representing a Participating Agency consists of:
1) 1/3 fixed pro rata share based on total number of Participating Agencies; and 2) 2/3 proportional share of electric accounts in Participating Agency’s jurisdiction.
The method of computation of these two vote components is set out in the Joint Powers Agreement at Section 4.4. The initial weighted voting shares and total votes, which is subject to update every two years beginning in 2017 on or before March 1, is set out in the Joint Powers Agreement as Exhibit A. These documents are attached here in Appendix A.
A majority of the Board members representing Participating Agencies constitutes a quorum for the transaction of CCA Program business. Each Board member representing a CCA program Participating Agency and present at the meeting shall have a weighted vote in CCA program items. The following lists the types of items considered to be CCA program related:
• CCA budget decisions (which will be incorporated in the overall organizational budget) • Setting customer rates
• CCA-funded program allocations
• Any policies that apply exclusively to CCA operations If there is uncertainty whether a particular Board decision is CCA program business or non-CCA program business, RCEA General Counsel will be consulted for a determination on which voting structure applies.
Section 3: CONDUCT OF MEETINGS
3.1 Rules of Procedure
The RCEA is governed by the same laws and regulations that control its Member Agencies concerning the conduct of meetings. This primarily includes the Ralph M. Brown Act, however 67 8
specific laws may apply in individual situations. When no state or federal law governs a particular procedure, the Board elects to follow as guidelines the parliamentary rules of procedure set out in “Rosenberg Rules of Order: Parliamentary Procedure for the 21st Century.” A copy of these rules is attached as Appendix B. It may also be found at:
https://www.calcities.org/docs/default-source/get-involved/rosenberg’s-rules-of-order-simple-parliamentary-procedures-for-the-21st-century.pdf?sfvrsn=d3f73e91_3.
Meetings of the RCEA Board and RCEA’s other “Brown Act bodies” such as the Community Advisory Committee (CAC), shall be conducted in an orderly manner. At every regular meeting, members of the public shall have the right to directly address the body on any item of public interest that is under the body’s jurisdiction. Unless otherwise specified, public comment will be limited to three minutes per person. Public comment should be addressed to the Board of Directors (or other Brown Act body). Members of the Board of Directors shall generally refrain from engaging in a back and forth conversation with any one member of the public to avoid discussion of a matter not on the agenda.
The Board may remove persons from a meeting who willfully and actually interrupt or disrupt a meeting. Disruptive behavior is defined as behavior that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting, including but not limited to, behavior that:
a. Violates one of the governing body’s regulations addressing the conduct of open meetings, or
b. A reasonable observer would perceive as a threat to use force by that member of the public.
If a member of the public’s behavior is disruptive, the meeting's presiding officer or their designee shall clearly warn that person that their behavior is disruptive and failure to stop the behavior will result in their removal from the meeting. Should that person continue to behave disruptively, staff are authorized to escort the disruptive person from the meeting room or remove them from the teleconference meeting. If order cannot be restored after ejecting the disruptive person, the meeting room may be cleared except for news media representatives who have not participated in the disturbance. No prior warning for removal is necessary if a member of the public behaves in a way that a reasonable observer would perceive as a true threat to use force.
Section 4: INTERACTIONS WITH MEMBER AGENCIES
AND MEMBER AGENCY STAFF
The governing officers of the Member Agencies as well as their staff are encouraged to contact the Executive Director at any time questions or concerns arise. Upon direction by the Board or request of a Member Agency, the Executive Director will attend a regular meeting of the Member Agency governing body to present items of concern and answer questions. 68 9
Section 5: PUBLIC ENGAGEMENT
5.1 Purpose and Goals
The underlying purposes of RCEA’s public engagement efforts include:
Provide clarity to the public on RCEA Programs, especially the Community Choice Aggregation Program (CCA)
• Provide education to increase understanding and awareness of RCEA programs • Build trust and confidence in RCEA programs with the public Create inclusion for members of the public so they are—and feel—heard and understood
Build community support for RCEA programs
Provide input to the Board and staff before decisions are made Engage a broad diversity of community stakeholders
Ensure that RCEA decisions are made in alignment with explicitly stated criteria The goals and desired outcomes of RCEA’s public engagement efforts include:
Community enthusiasm and support for RCEA decisions
High participation in the public engagement process
Establish and maintain high standards for public engagement strategies and processes High CCA customer participation rate (>90%)
5.2 Public Engagement Principles
RCEA and the Board will apply the following principles to public engagement:
• Accountability and Transparency: RCEA will enable the public to participate in decision-making processes by providing clear information on the issues, the ways to participate, and how their participation contributes to the decision. • Fairness and Respect: RCEA will maintain a safe environment that cultivates and supports respectful public engagement.
• Accessibility: RCEA will respect and encourage participation by providing ample public notice of opportunities, resources, and accommodations that enable all to participate. • Predictability and Consistency: RCEA will prepare the public to participate by providing meeting agendas, discussion guidelines, notes, and information on next steps. • Efficient Use of Resources: RCEA will balance its commitment to provide ample opportunities for public involvement with its commitment to delivering government 69 10
services efficiently and using RCEA resources wisely to make effective forward progress on RCEA’s goals.
• Evaluation: RCEA will monitor and evaluate its public participation efforts to identify and act on opportunities to improve its processes.
5.3 Community Advisory Committee
The Board has established a Community Advisory Committee (CAC) to support RCEA public engagement efforts and to provide decision-making support and input to the RCEA Board.
5.3.1 The CAC will have up to 15 members, appointed by the RCEA Board. Each Board Member shall recommend appointment of one CAC member of their choosing. In order to accommodate outlying/unincorporated communities, the County representative shall recommend appointment of a total of three individuals. Up to - two at-large members will be selected through an open application process and voted on by the full Board. CAC members will be appointed for two-year terms but can be removed at any time by the Board.
5.3.2 All CAC members shall have their primary residence in Humboldt County.
5.3.3 The Board will appoint at least one RCEA Board member as a CAC liaison that will attend CAC meetings but will not vote.
5.3.4 Regular CAC meetings will be held at least quarterly at a regular date and time that will be established annually by the CAC. Special CAC meetings may be held to address specific topics or situations as needed. The Board may hold a joint Board and CAC meeting at its discretion.
5.3.5 CAC meeting agendas will be developed by the Executive Director and shall include those items requested by the Board as well as those items the Executive Director determines appropriate.
5.3.6 CAC members are held to the same standards of ethical conduct and the same conflict of interest laws as the RCEA Board members. CAC members must file annually FPPC Form 700 Statements of Economic Interest.
5.4 Ad Hoc Committees and Working Groups
In addition to the CAC, the Board may at its discretion create ad hoc committees, working groups or task forces, to address specific topics or projects as specified by the Board. These ad hoc committees, working groups and task forces may be comprised of Board members, community members, or a combination of both, to be appointed as determined by the Board.
These committees may be subject to the Ralph M. Brown Act and conflict of interest laws. The individuals serving on these ad hoc committees will be notified of the Brown Act and conflict of interest law applicability at the time of appointment. All appointed ad hoc committee members are expected to follow a high standard of ethical conduct to best maintain public confidence in the business of RCEA.
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STAFF REPORT
Agenda Item # 5.8
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Patricia Terry, Senior NREN Portfolio Manager SUBJECT: NREN California Climate and Energy Collaborate (CCEC) Forum Sponsorship
Background
The California Public Utilities Commission (CPUC) issued Decision D.24-09-031, effective September 26, 2024, that approves the Northern California Rural Regional Energy Network (Northern Rural Energy Network or NREN) to deliver energy efficiency programs to underserved rural customers.
California RENs coordinate under a collaborative called CalREN, which is facilited by the non-profit CivicWell (formerly the Local Government Commission). CivicWell also implements the California Climate and Energy Collaborative (CCEC) Initiative and Forum each year, funded by the RENs.
Summary
As part of CalREN, NREN will contribute to the funding of CivicWell and will sponsor the CCEC Forum in 2025. The RENs each contribute an equal proportion of the total funding. Tri-County Regional Energy Network (3CREN) is in contract with CivicWell, and has invoiced NREN for their portion of the funding.
FINANCIAL IMPACTS
This CivicWell support and CCEC Forum has a cost to NREN of $126,199.42. These expenses will be recovered through NREN revenue.
EQUITY IMPACTS
The CCEC Forum brings together several hundred local government staff, elected officials, and community organizations, to collaborate and learn from each other as they work to advance fair and equitable climate change and energy practices.
RECOMMENDED ACTIONS
Approve NREN payment of $126,199.42 to Tri-County Regional Energy Network to fund CivicWell and the California Climate and Energy Collaborative Forum, and authorize the Executive Director to execute all applicable documents.
ATTACHMENTS
A. California Climate and Energy Collaborative Invoice from Tri-County Regional Energy Network.
71 COUNTY o# VENTURA
County of Ventura
Sustainability Division
800 South Victoria Avenue #l1950
Ventura, California 93009
Bill To:
Redwood Coast Energy Authority
Atten: Patricia Cheng Terry
633 Third Street
Eureka, CA 95501
[email protected]
RECEIVED
MAY 19 2025
Redwood Coast Ene19y Authorny
DESCRIPTION
Invoice
Invoice: NREN2025
Invoice Date: April 28, 2025
Terms: Net 30
TOTAL
CivicWell- 3C-REN/NREN/Local Government Partnership 2025 $126,199.42 Ref: PD 101020250116*7
Please make check payable to:
County of Ventura
800 South Victoria Ave #L1950
Ventura, CA 93009
~ --- May 19, 2025
IJRtP.
If you have any questions concerning this invoice, contact Kelly Cattanach at (805) 654-3664.
Send invoice to: [email protected]
Patricia Terry
E-signed 2025-05-19 04:30PM PDT
[email protected]
Redwood Coast Energy Authority
72
STAFF REPORT
Agenda Item # 5.9
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Patricia Terry, Senior Portfolio Manager
Lexie Perez, Grants & Contracts Manager
SUBJECT: Aiqueous Professional Services Agreement Amendment
BACKGROUND
RCEA’s Demand Side Management (DSM) Department entered into a professional services agreement with Aiqueous on January 1, 2021, which was amended: August 1, 2022; December 27, 2023; May 4, 2024; July 1, 2024; and February 6, 2025. The agreement was for the development and maintenance of a database for the management, processing, and tracking of DSM customer programs. The database, PowerPath, is built on the Salesforce platform and has been in use for both internally- and externally-funded DSM programs.
SUMMARY
This amendment will extend the Professional Services Agreement for one additional year through December 30, 2026, at an incremental increased cost of $61,171. The resulting amended, not-to-exceed agreement budget of $450,121 for services from January 2021 through December 2026 includes licensing, database support, and support for archiving data and migration to a new platform.
With the launch of the Northern Rural Energy Network (NREN), staff is resoliciting for database services for NREN programs and administration/reporting. The database solicitation is currently open (closes July 9, 2025) with contract award scheduled for August 2025. Staff recommends continuing with Aiqueous and the existing PowerPath tool in its current configuration to serve our ongoing programs until such time as the new database is ready for use.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Aiqueous’ PowerPath database supports staff work on all initiatives grouped under the following umbrella strategies:
2.1 Integrated Demand Side Management Strategies
2.2 Energy Efficiency and Conservation.
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Managing customer programs in a comprehensive database allows RCEA to effectively reach more customers with energy efficiency services.
EQUITY IMPACTS
Organized customer data allows RCEA to better analyze and target programs to serve customers equitably.
FINANCIAL IMPACT
The extension cost of $61,171 is included in the NREN budget. Costs will be recovered through NREN revenue.
STAFF RECOMMENDATION
Approve Amendment No. 6 to Professional Services Agreement with Aiqueous LLC in the Amount of $61,171 to Extend Database Support Services and Licensing Through December 2026 and Authorize the Executive Director to Execute all Applicable Documents.
ATTACHMENT
Amendment No. 6 to Agreement for Professional Services Between the Redwood Coast Energy Authority and Aiqueous, LLC
74 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 1 of 12
AMENDMENT NO. 6 TO
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE REDWOOD COAST ENERGY AUTHORITY AND
AIQUEOUS, LLC
This is an amendment (“Amendment”) to that certain Agreement by and between the Redwood Coast Energy Authority (“RCEA”), a Joint Powers Authority, and Aiqueous, LLC (“CONSULTANT”), a limited liability company organized under the laws of Texas, entitled “Agreement For Professional Services Between The Redwood Coast Energy Authority And Aiqueous, LLC” dated January 1, 2021 and amended August 1, 2022, December 27, 2023, May 4, 2024, July 1, 2024, and February 6, 2025 (“Agreement”). This Amendment is effective as of June 27, 2025.
RECITALS
WHEREAS, RCEA has need for continued professional consulting services to support a comprehensive database solution to manage its Demand Side Management programs; WHEREAS, the Parties wish to amend the Agreement to revise the term of the agreement accordingly with no revisions to the compensation due.
NOW, THEREFORE, based on the conditions recited herein and made a material part hereof, the parties agree as follows:
1. Amendment to Exhibit A.
Exhibit A to the Agreement shall be replaced in its entirety with Exhibit A attached hereto (and which includes Attachment A-1 embedded therein).
2. Ratification of Agreement.
The terms and conditions of the Agreement, including all exhibits and attachments, are ratified in their entirety except to the extent inconsistent with the terms and provisions of this Amendment.
In the event of such inconsistency, this Amendment shall control.
Upon the final signature to this Amendment, Consultant will invoice RCEA the below Payment 1 and will be due July 15th, 2025:
a. Payment 1 in the amount of $37,410.75.
a. Prepaid Support in Amount of $3,400 per Attachment A-1 b. License fees in the Amount of $34,010.75 per Attachment A-3 Consultant will invoice RCEA in May 2026 for Payment 2 in the amount of $13,759.58 for prorated License from 7/1/2026 -12/31/2026.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 6 on the date and year first herein above written.
RCEA: CONSULTANT:
__________________________________ __________________________________ Elizabeth Burks, Executive Director Jon Ezrine, CEO
Redwood Coast Energy Authority AIQUEOUS
Date: _______________________ Date: _______________________ 75 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 2 of 12
EXHIBIT A: SCOPE OF SERVICES
STAGE 1. KICKOFF AND DISCOVERY
Task 1.1: Kickoff Meetings
AIQUEOUS and RCEA will schedule a defined set of meetings during which time AIQUEOUS will get a deeper dive into the current and near-future business processes, system architectures, tracking and reporting requirements, and legacy data migration. AIQUEOUS will also request the gathering of all program forms and manuals, business processes, work instructions legacy data sets, and information architecture necessary for systems to be integrated as part of the Discovery process.
Task 1.2: Needs Assessment Expansion
AIQUEOUS will review and build on the Desired Database User Functions (AIQUEOUS Proposal Appendix 8) with RCEA, working to define, prioritize, and create a list of desired user functions. AIQUEOUS will work with RCEA to determine at what stages implementation of those functions will occur. The JIRA system will be used to continually define, modify, prioritize, and schedule the desired functions.
Task 1.3: Establish Acceptance Criteria
AIQUEOUS and RCEA will establish the acceptance criteria for the platform and the expected performance of the platform to inform the quality assurance (QA) process to be implemented during User Acceptance Testing.
Task 1.4: Project Plan
Following Discovery, AIQUEOUS will provide a detailed Project Plan for RCEA review to capture tasks and subtasks along with sequences and timelines. Any adjustments to the Scope of Services will be captured in an addendum to the Professional Services Agreement before proceeding to implementation.
Stage 1 Key Deliverables
From AIQUEOUS:
1. Written summaries from Discovery Meetings
2. Requirements Gathering Documentation stored in a common drive
3. Documentation of communications: meeting notes stored in common drive
4. Provision of central requirements tracking system – JIRA
5. Creation of individual tickets for development in JIRA
6. Documentation of data security certifications and protocols From RCEA:
7. Scheduling and securing attendance at Kickoff and discovery meetings by appropriate RCEA staff and team representatives
8. Review and edits to written notes from Discovery meetings
9. Provide documentation of RCEA data security requirements
10. Identification of any RCEA third-party users whose input needs to be considered for POWERPATH
11. Identification and training of primary POC users for JIRA Service Desk STAGE 2. INITIAL CONFIGURATION
Task 2.1: Configuration
AIQUEOUS will begin by deploying POWERPATH, the online application, document and signature solutions according to the architecture defined in Stage 1 to present a functionally viable product to RCEA team for feedback and refinement. AIQUEOUS will conduct a gap analysis and prioritize the buildout. JIRA Service Desk will serve as the tool for prioritization and structuring the spring schedule. 76 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 3 of 12
Task 2.2: Implementation Sprints
AIQUEOUS follows a 2-Week Deployment Schedule and Process using Sprint Cycles. POWERPATH will be installed on all copies of the RCEA environment, including Partial, Developer and Full Sandboxes and the Production environments. Configuration will start in a Partial Copy and/or Development Sandbox.
2.3 Data migration
AIQUEOUS will work with RCEA to map and migrate legacy program data into POWERPATH. AIQUEOUS will review the submitted data fields and propose an architecture in ECOiQ that can scalably capture those data and accommodate future data sources and review that architecture with RCEA. AIQUEOUS will work with RCEA to create a test data migration and integration deployment in a POWERPATH Sandbox for Final Configuration, user acceptance testing (UAT) and training. AIQUEOUS will work proactively with RCEA to identify data architecture and quality issues and communicate those via updates with the project team.
STAGE 2 KEY DELIVERABLES
For AIQUEOUS:
1. Host a regular meeting cadence to manage project
2. Initial build-out in sprints
3. Integration Test Plan for legacy data migration
4. Host walk-through of initial build outs / configuration
5. Documentation of communications: meeting notes stored in shared location
6. Data Dictionary – documents to provide field mapping, translations, and clarification between all systems
7. Ongoing requirements documentation through JIRA Service Desk For RCEA:
8. Sign off on priority schedule and Backlog items
9. Sign-off on data mapping and upload process
10. Attendance by appropriate staff of walk-through of initial buildouts STAGE 3. FINAL CONFIGURATION
Task 3.1: Finalize Configuration
AIQUEOUS will focus on building dashboards, reports, and approval processes to further meet RCEA’s expectations. The AIQUEOUS project team will also build online applications, communication email templates, program eligibility validation rules, and any program-specific workflows.
Task 3.2: Refine Roles and Permissions
AIQUEOUS will refine roles and permissions across all users and ensure that appropriate Salesforce Best Practices are implemented consistent with RCEA Organizational Practices.
STAGE 3 KEY DELIVERABLES
For AIQUEOUS:
1. Ongoing regular meeting cadence to manage project
2. Final build-out in sprints
3. Configuration of online applications, communication email templates, program eligibility, validation roles, and any program-specific workflows
4. Scripts and feedback mechanism for mini UAT on dashboards, reports, and workflows
5. Ongoing documentation of communications; meeting notes stored in shared location
6. Ongoing requirements documentation through JIRA Service Desk For RCEA:
7. Test data for upload from relevant data systems
8. Pre-UAT participation and sign-off
77 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 4 of 12
STAGE 4. USER ACCEPTANCE TESTING
4.1: User Acceptance Testing (UAT)
AIQUEOUS will work with the RCEA Admins to coordinate user acceptance testing by appropriate RCEA Staff. Through the process of UAT, AIQUEOUS will capture and manage any errors or inconsistencies through tickets created in JIRA Service Desk. Tickets created during UAT will be informed, qualified, and prioritized, in terms of urgency and priority. The AIQUEOUS team will secure the RCEA Administrators’ “acceptance” of Ticket resolution according to their urgency/priority as well as “acceptance” of each business process.
Task 4.2: Quality Assurance
AIQUEOUS will work with RCEA to establish the different scripts to be tested for business rules, workflows, savings calculations, UI / UX and reporting. In parallel, AIQUEOUS will develop and implement tests on the data integration and perform “smoke / sanity” testing on key participant and user access points.
AIQUEOUS will provide a QA Report showing test execution and bug status.
Task 4.3: Live Testing
Once all testing is completed and passed by both AIQUEOUS and Client within the Full Copy Sandbox, the AIQUEOUS team will provide access for all additional users. Appropriate security and permission sets will be established prior to granting access.
STAGE 4 KEY DELIVERABLES
For AIQUEOUS:
1. UAT Test Plan
2. Use cases (scripts) and feedback mechanism for full, end-to-end UAT
3. Beta Tester training and documentation: i.e. Word / Excel / Google doc instructions, recorded webinars and feedback templates
4. Ongoing documentation of communications: meeting notes stored in shared location
5. Ongoing requirements documentation through JIRA Service Desk For RCEA:
6. Confirmation/acceptance of UAT schedule
7. Secure RCEA resources to participate in UAT according to schedule
8. UAT feedback informed by SLA
9. Sign-off on UAT
STAGE 5. TRAINING
Task 5.1: Training
AIQUEOUS will work with the RCEA Administrators to schedule and coordinate training for various RCEA Project Managers and other staff. Training will take place remotely via recorded sessions. The AIQUEOUS Team will begin by providing an overview of the core POWERPATH functionality to all RCEA platform users.
Following this, tailored training and user guides will be provided for specific RCEA groups of users to cover system functionality for their roles/responsibilities. Optional one-on-one sessions with staff can also be scheduled during the on-site training week.
Task 5.2: Training Materials
All training materials – recordings, PowerPoints, and PDFs – are provided and will continue to be available to RCEA staff through JIRA Service Desk. Additionally, internal staff can enhance their understanding of the Salesforce platform using Salesforce’s Trailhead website.
STAGE 5 KEY DELIVERABLES
For AIQUEOUS:
78 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 5 of 12
1. Training materials
2. User guides
3. In person training sessions
4. Recorded posting of training sessions
For RCEA
5. Acceptance of Training Schedule
6. Securing RCEA staff participation at training sessions STAGE 6. STABILIZATION & NEXT 90
Task 6.1: Stabilization & Next 90
The first six months after the launch will be considered a “Stabilization and Next 90 Period” for the platform. AIQUEOUS will transition to open status meetings with RCEA staff to ensure the platform continues to meet RCEA’s expectations and business requirements. Through the stabilization and next 90 period and into ongoing support, RCEA staff will also be able to submit tickets through the JIRA online ticketing system, and the AIQUEOUS Team will work to resolve these issues in a timely manner based on the priority and urgency level of each ticket. The tasks associated with next 90 work will be agreed upon by both parties and tracked separately in the JIRA online ticketing system. After the stabilization and next 90 period which will occur when all identified next 90 tasks are complete, the product will be considered complete but RCEA reserves the right to request additional program modules as needed during the ongoing support phase.
Task 6.2: Design Document
Once AIQUEOUS and RCEA have determined that the Stabilization period has ended, AIQUEOUS will provide a High-Level Design Document – a design report that articulates the technical configurations made on POWERPATH to incorporate business processes and integrations.
Task 6.3: Data Backup
AIQUEOUS will use Salesforce’s native capability to create a weekly backup of RCEA’s POWERPATH data.
Salesforce creates a data backup which will be downloaded onto RCEA’s secure environment.
STAGE 6 KEY DELIVERABLES
For AIQUEOUS:
1. High Level Design Document
2. Host a regular meeting cadence through stabilization and then support For RCEA:
3. Final sign-off and acceptance of platform following stabilization
4. Ongoing meetings with AIQUEOUS support and maintenance team STAGE 7. ONGOING SUPPORT
Task 7.1: Incident Management and Feature or Service Request Management – prior to July 2024 AIQUEOUS will track incident management and feature or service request management through the JIRA online ticketing system. Incident management will be addressed according to assigned Priority and Urgency levels as defined in the Service Level Agreement. Incident management tickets will be categorized as “support”, “next 90”, “bug fix”, “gift hours”, or other established categories as applicable and agreed upon. Future feature additions or refinements will be prioritized and bundled for development for staged Releases. Each feature request will include a level of effort estimate, will be approved by RCEA, tested by AIQUEOUS and RCEA in the Sandbox, and migrated to production environment, as updated versions of RCEA’s configured POWERPATH.
Ongoing and maintenance support has hours caps, pursuant to the Budget table below. 79 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 6 of 12
Task 7.2: Ongoing Training
RCEA will have the responsibility to designate “super users” of the POWERPATH platform from among RCEA staff. These super users’ responsibility will be to receive initial training on releases and features and to deliver trainings to RCEA staff in the event of new releases, new features, and staff turnover and onboarding.
For new releases, AIQUEOUS will develop training materials, walk the super users through the training, and update the training materials in response to feedback. RCEA super users will then train RCEA staff on the new releases.
Task 7.3: Ongoing Support - beginning July 2024
See Attachment A-1 “Support” for a description of the support model beginning in July 2024.
STAGE 7 KEY DELIVERABLES
For AIQUEOUS:
1. Maintain and manage Online Ticketing System
2. Provide Training to super users
For RCEA:
3. Designate “Super users” for future training
STAGE 8. PROGRAM CLOSEOUT
Task 8.1 Winding Down
Upon a program sunset, RCEA will work with AIQUEOUS to migrate the data into a desired format for archiving.
Task 8.2 Physical Delete
AIQUEOUS will then submit a ticket to Salesforce on RCEA’s behalf to purge specific program records.
The data will be fully removed from POWERPATH.
Task 8.3 Miscellaneous Additional Services and Fees
As requested/approved by RCEA, this task allows for additional expenses for services and fees related to the Program.
STAGE 8 KEY DELIVERABLES
For AIQUEOUS:
1. Migrate data or provide training to migrate data into desired format for archiving
2. Submit ticket to Salesforce for Physical Delete
For RCEA:
3. Provide information about the desired format for archiving 80 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 Page 7 of 12
COMPENSATION
CONSULTANT will perform the above services on a time and materials basis for a not-to-exceed amount of $450,121. Time and licensing fees and will be billed at the fixed rates displayed in the fee schedule according to the budget table below.
Billable Item Description Rate Quantity Not to Exceed
Amounts
A. Stages 1-5
services Labor
Project Team:
$150/hour
Engineering:
$135/hour
625.5 hours $94,470
B. Stage 6
services
Stabilization Labor $150/hour 245 hours $36,750
“Next 90” Labor $150/hour 144 hours $21,510
C. Stage 7: Aug.
– Dec. 2022
services
Labor $150/hour 18 hours/mo
($2,700/mo) $13,348.50
D. Stage 7: Jan
2023 – Jun 2025
services
Labor $150/hour 18 hours/mo
($2,700/ mo) $36,939
Prepaid Support Amendment #4
Labor – up to 40 hours, 9/1/24-
6/30/25
Flat fee 1 $6,000
Prepaid Support Amendment #5
Labor – up to 100 hours, 1/9/25 –
6/30/25
Flat Fee 1 $15,000
Prepaid Support Amendment #6
Labor – up to 25 hours, 7/1/25 –
12/31/26
See Attachment A-1 1 $3,400
E. Stage 8
services & misc.
additional
services and fees
Labor
$150/hour for labor
and fees at actual
cost
n/a $10,000
Amendment #6: Optional Additional
support hours, 7/1/2025 – 6/31/2026 See Attachment A-1
Up to 25
hours $10,000
F. Licensing
POWERPATH user licenses Annual fees for Lite
and power users
approx. 5
Super
licenses & 20
Lite licenses
$96,517.96
FormStack Go Online form fees Annual fee 3 years $17,837.50 Amendment #3 POWERPATH and
FormStack licenses 5/5/2024 –
6/30/2024
Prorated fees 56 days $5,764.98
Amendment #4 POWERPATH and
FormStack 7/1/24-6/30/25 See Attachment A-2 1 year $34,581.33 Amendment #6 POWERPATH 7/1/25-
12/31/26
See Attachment A-3 18 months $47,771.00
Total Not To Exceed Amount: $450,121.00
81 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 A-1
ATTACHMENT A-1: SUPPORT
Redwood Coast Energy is declining a Premier Support package. The Support Services beyond Standard Support to be delivered by Brillion are described below as Prepaid Support Hours and beyond the normal course of Standard Support Brillion provides to RCEA as part of the on-going PowerPath Annual Licensing.
The terms of Support shall conclude on December 31, 2026.
Item Quantity Total Price
Prepaid Support (Amendment 4) 40 hours $6,000
Additional Prepaid Support (Amendment 5) 100 hours $15,000 Additional Prepaid Support (Amendment 6) 20 hours $3,400 Optional hourly Support (Amendment 6) - To be billed at the Professional Services hourly ratees listed below if there are additional needs past the prepaid 20 hours above
Approx. 52 hours Not to exceed
$10,000
Support Description. Brillion will provide support to Customer through the support portal, telephone and email (“Support”) as defined in the Service Availability – Initial Contact and Response section below.
Service Availability – Initial Contact and Response
Request for Support. Authorized Users will make Support requests by submitting a request via Brillion’s customer support web portal [email protected]
Coverage parameters specific to the services covered in this Schedule are as follows:
• Support Community: Monitored 6:00 A.M. to 8:00 P.M. Monday – Friday, Eastern Time Zone. o Service Requests received outside of office hours will be collected; no action, however, can be guaranteed until the next business day.
• Brillion shall not offer support on the following days; inquiries received during these holidays will be addressed on the next business day.
Day or Date Official Name
January 1 New Year's Day
Third Monday in January Martin Luther King, Jr. Day
Last Monday in May Memorial Day
July 4 Independence Day
First Monday in September Labor Day
Fourth Thursday in November Thanksgiving Day
Friday after Thanksgiving Day after Thanksgiving
December 24 Christmas Eve
December 25 Christmas
82 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 A-1
Service Tiers
Standard and Premier Support activities are defined as follows.
Standard Support
• Answer “How-to” questions on using the system
• Access to knowledge base and relevant documentation
• Address bugs and defects on work delivered by Brillion • Regular Customer Support calls
• User access request and new user support
• Troubleshoot integrations owned and maintained by Brillion, including renewal of certificates and tokens
• Troubleshoot third-party tools provided by Brillion
• Software release training & specifications
• Consult on Salesforce updates
Premier Support (only if purchased by Customer as specified on the Order Form) • Update existing and basic new configurations (including fields, flows, validations) • Configure Payment processing and inspections
• Updates to existing reports and dashboards
• Update measures and templates
• Page layout changes
• Cloning programs and measures for rollover activities • 2 hours of training per month with scheduling (including data manipulation, configuration, • etc.)
• Run healthchecks and work with Salesforce to resolve outstanding issues • Salesforce Healthcheck report is inherent to Salesforce platform • Support requests to resolve report findings will be tracked against Premier Support • Sandbox refreshes (if applicable)
• Priority queue
Inquiry Settlement (Service Defect) Request and Response The following definitions will be used for this Schedule. • CRITICAL: Defect Severity Level 1 (S1) – Defined as application is not available to all or substantial number of users and production processing is not available for any business purposes. (i.e. software does not operate. Excludes Internet connectivity issues). • HIGH: Defect Severity Level 2 (S2) – Defined as part of production application is not working and there is no workaround; major functionality is inoperable or unusable for a small number of users. Also defined as software does not meet in-scope business requirements without a manual work-around or a specific in-scope module of the software is not usable without a manual work-around.
• MEDIUM: Defect Severity Level 3 (S3) – Defined as part of the application is not working for in-scope software features as intended, but a reasonable, jointly agreed-upon work-around exists leaving the essential functions intact and operable.
• LOW: Defect Severity Level 4 (S4) – Defined as minor cosmetic problems within in-scope features of the software that do not impact the established business processes. • General support (G) – General end user questions about in-scope functionality 83 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 A-1
• Training requests (T) – Requests for training on in-scope features Inquiry Settlement (Service Defect) Request and Response Table Note: General support and Training requests will be prioritized and assessed as part of the support queue
Request Type Response Time Initial
Assessment
Update
Frequency
Maximum
Resolution Time
S1 Critical During Business hours:
30 minutes
Outside business hours:
2 hours
2 business hours 2 business hours 16 business hours
S2 High 2 business hours 4 business hours 4 business hours 24 business hours S3 Medium 8 business hours 16 business hours Weekly 40 business hours S4 Low None. 24 business hours Weekly Prioritized as part of product roadmap
Inquiry Resolution Reporting
Brillion agrees to report on Inquiry Resolution metrics to Customer at least once every ninety days.
Professional Services
For scopes of work with estimated Level of Effort greater than 20 hours, estimates will be provided to be delivered by Professional Services at the following hourly rates. This typically includes new configuration, automations, programs, integrations. Scopes of work will include relevant QA, deployment, and training required:
• Project Manager - $190 per hour
• Business Analyst - $190 per hour
• Technical Leadership - $225 per hour
• Development & QA - $200 per hour
84 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 A-2
Attachment A-2: Annual License Fees - 7/1/24-6/30/25
POWERPATH License Renewal will be billed annually. Payment for POWERPATH licenses and products will be due in full commencing with the Start Date of July 1, 2024, as defined in the Master Products Table below.
Pricing includes all ongoing maintenance, upgrades, and services.
POWERPATH LICENSE
(7/1/2024-6/30/2025)
QTY Cost
POWERPATH Access Fee 1 $1,201.18
POWERPATH Admin License 2 $4,052.92*
POWERPATH User License 4 $10,807.80
POWERPATH Lite User License 12 $5,675.57**
POWERPATH Full Sandbox 1 $7,169.78
Formstack Core 1 $3,112.50
Sub Total $32,019.75
Total – 1 year Renewal with Uplift $34,581.33
The above schedule includes:
Credit for January 2025 – June 2025 (6 months) for reduction of users below. * 1 Admin $1350.98
* 3 Lite users $810.81
If additional licenses or products are required during the renewal term, an order form will be created by Brillion - according to the current price structure. All additional licenses added during the contract term are billed at an annual rate. In some cases, additional license added may be prorated and co-termed to the annual renewal date of July 1st,2024.
The products included in this document are provisioned by Brillion for use by Redwood Coast Energy Authority. PowerPath licenses and products are issued on an annual basis. 85 Aiqueous – RCEA Professional Services Agreement
Amendment No. 6 A-2
Attachment A-3: Annual License Fees - 7/1/25-12/31/26
POWERPATH License Renewal will be billed annually. Payment for POWERPATH licenses and products will be due in full commencing with the Start Date of July 1, 2025, as defined in the Table below.
Pricing includes all ongoing maintenance, upgrades, and services.
POWERPATH LICENSES
(7/1/2025-12/31/2026) QTY
Renewal
7/1/25-
6/30/26
Pro-rate -
7/1/25-
12/31/25
Community Plus
(convert)
1/1/26-12/31/26
Pro-rate -
7/1/26-
12/31/26
POWERPATH Access Fee 1 $1,297.28 $648.64
POWERPATH Admin License 1 $2,918.11 $1,459.05
POWERPATH User License 4 $11,672.43 $5,836.21
POWERPATH Lite User License 9 $3,064.81
POWERPATH Full Sandbox 1 $7,743.37 $3,871.68
Community Plus 9 $1,746.00
Community Plus 20 $3,888.00 $1,944.00
Formstack Core 1 $1,680.75
Sub Total $27,519.19 $4,745.56 $1,746.00 $13,759.58
Total – 18-month Renewal $47,770.33
If additional licenses or products are required during the renewal term, an order form will be created by Brillion - according to the current price structure. All additional licenses added during the contract term are billed at an annual rate. In some cases, additional license added may be prorated and co-termed to the annual renewal date of July 1st, 2025.
The products included in this document are provisioned by Brillion for use by Redwood Coast Energy Authority. PowerPath licenses and products are issued on an annual basis. 86
STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Richard Engel, Director of Power Resources SUBJECT: Adjustment of Energy Risk Policy Voting Members
BACKGROUND
Section 4 of RCEA’s Energy Risk Management Policy1 (Policy) specifies the risk management governance for RCEA’s community choice energy program. Subsection 4.3 identifies the voting members of RCEA’s Risk Management Team (RMT) as follows:
• Executive Director
• Director of Power Resources
• Director of Infrastructure Planning and Operations
• Director of Business Planning and Finance
RCEA’s Director of Infrastructure Planning and Operations, Dana Boudreau, will retire at the end of June 2025. RCEA has not opened the recruitment process for this position and is currently reviewing the agency needs and capacity before recruitment. RCEA staff anticipate at least a six-month vacancy of this position.
Furthermore, at the time the Policy was developed, RCEA’s Deputy Executive Director position had not yet been created. The current Deputy Executive Director, Eileen Verbeck, recently served for an extended period as Acting Executive Director, then as Interim Executive Director and fulfilled all of the Executive Director roles during that time, including active participation in the RMT.
SUMMARY
Staff propose an addendum to the Policy to make the Deputy Executive Director a voting member of the RMT effective July 1, 2025, replacing the role currently filled by the Director of Infrastructure Planning and Operations. Regardless of who serves as Deputy Executive Director, this position is a good fit for the RMT, as the Deputy Executive Director’s job description calls for “leading risk management functions in coordination with staff in other RCEA departments.”
The RMT voted unanimously on May 20, 2025, to support bringing to the Board for approval an addendum to the risk policy making this RMT membership change. 1 https://redwoodenergy.org/wp-content/uploads/sites/850/2024/12/Energy-Risk-Management-Policy.pdf 87
If approved, this change will be implemented as stated in Addendum 2025-A of the Energy Risk Management Policy and will be included in a revised version of the Energy Risk Management Policy to be brought to the Board for review on the usual update schedule late in this calendar year.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Not applicable. The proposed change is administrative in nature.
EQUITY IMPACTS
Not applicable.
RECOMMENDED ACTION
Approve Addendum 2025-A to the RCEA Energy Risk Management Policy, making the Deputy Executive Director a voting member of the Risk Management Team effective July 1, 2025, replacing the role currently filled by the Director of Infrastructure Planning and Operations.
ATTACHMENTS
Addendum 2025-A to the RCEA Energy Risk Management Policy. 88 www.redwoodenergy.org
633 3rd Street – Eureka, CA 95501
707.269.1700 (local) – 800.931-RCEA (toll-free) – 707.269.1777 (fax) Addendum 2025-A to Redwood Coast Energy Authority’s
Energy Risk Management Policy
For Board Consideration on June 26, 2025
This Addendum is hereby attached to RCEA’s Energy Risk Management Policy (“Policy”) that was adopted by RCEA’s Board of Directors on December 12, 2016, and last revised on December 17, 2024.
Addendum A makes the Deputy Executive Director a voting member of the Risk Management Team, replacing the Director of Infrastructure Planning and Operations.
Section 4.1 of the Policy is hereby replaced in its entirety with the following.
4.1 Risk Management Organizational Structure
Below is a high-level organization chart describing RCEA’s risk management governance.
Section 4.3 of the Policy is hereby replaced in its entirety with the following.
4.3 Risk Management Team (RMT)
The RMT is responsible for implementing, maintaining and overseeing compliance of this Policy. The voting members of the RMT shall be RCEA staff members as outlined in this Policy. Additionally, an independent outside third-party representative, and TEA’s account director assigned to RCEA, will serve as non-voting members. Each voting member will be assigned one vote. The current voting members of the RMT are:
• Executive Director
• Director of Power Resources
• Deputy Executive Director
• Director of Business Planning and Finance
Board of Directors
Executive
Director
Director of
Power
Resources
Deputy
Executive
Director
Director of Business
Planning & Finance
TEA Client
Services Manager
(non-voting)
Independent
Outside
Representative
(non-voting)
Risk Management Team
89 The primary goal of the RMT is to ensure that the procurement activities of RCEA are executed within the guidelines of this Policy and are consistent with Board directives. The RMT is also responsible to consider and propose recommendations to this Policy when conditions dictate.
Pursuant to direction from the Board of Directors and the limitations specified by this Policy, the RMT and the Executive Director maintain full authority over all procurement activities for RCEA. This authority includes, but is not limited to, taking any or all actions necessary to ensure compliance with this Policy.
The RMT is responsible for overseeing implementation of this Policy, procurement strategies, and the adoption of new product types. The RMT is also responsible for ensuring procurement strategies are consistent with RCEA’s strategic objectives and for reviewing financial results. The RMT shall meet at least quarterly and record business in meeting minutes that will be approved by the RMT. No decision of the RMT is valid unless a majority of voting members has stated approval with a quorum of voting members participating in the vote, including the Executive Director. A quorum consists of a simple majority of RMT voting members, i.e. three of the four voting members. All decisions by the RMT, other than those made by common consent, shall be made by simple majority vote of the RMT members with the Executive Director having veto authority.
The RMT maintains the authority and responsibility to:
• Approve and ensure that all procurement strategies are consistent with this Policy; • Determine if changes in procurement strategies are warranted; • Approve new transaction types, regions, markets and delivery points; • Understand financial and risk models used by TEA;
• Understand counterparty credit review models and methods for setting and monitoring credit limits; • Receive and review reports as described in this Policy; • Meet to review actual and projected financial results and potential risks; • Authorize individual transactions that exceed the Executive Director’s authority as indicated in Section 5 below;
• Escalate to the Board of Directors with any risks beyond the RMT’s authority; • Review summaries of limit violations (see Section 5.1); • Review the effectiveness of RCEA's energy risk measurement methods; • Maintain this Policy;
• Monitor regulatory and legislative activities.
90
STAFF REPORT
Agenda Item # 10.1
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Kristy Siino, HR Manager
SUBJECT: Status of Vacant Positions as required by AB 2561
BACKGROUND
California State Assembly Bill (AB) 2561 was approved on September 22, 2024, and added §3502.3 to the Government Code. This law requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. The presentation must be made prior to the adoption of a final budget for the fiscal year.
SUMMARY
This report is presented to comply with §3502.3 of the Government Code. The Board has approved thirty-nine (39) Full-Time positions, and per RCEA policy, the Executive Director may approve part-time and temporary positions on an ‘as needed’ basis. RCEA has an approved 2024-2025 budget for forty-two (42) FTEs. Currently, RCEA has three (3) open Full-time positions; Technician (DSM), Coordinator (Finance), and Specialist (Administration).
Recruitment efforts are focused on prioritizing opportunities for local candidates. Open positions are posted on the RCEA ‘employment’ website page, Humboldt Craigslist, Indeed.com, Handshake (via CalPoly Humboldt), Lost Coast Outpost, and shared on RCEA social media.
Human Resources will also utilize specialized websites or job boards (such as CalCCA or governmentjobs.com) for high level or hard-to-fill positions.
Additionally, HR closed two recruitments in May with successful offers of employment. Metrics for these recruitments are provided below:
Contracts and Grants Analyst (Full time, Finance) – 29 applications received, and top 8 candidates invited to interview.
Regulatory and Legislative Policy Intern (Part Time, temporary) – 19 applications received, and top 6 candidates invited to interview
The additional 3 open full-time position allocations were unfrozen during Mid-Year budget actions, and staff are currently assessing whether current workloads are sufficient to begin recruitment efforts. The recruitment of the Technician is, however, anticipated to begin over the Summer of 2025 as NREN programming gains momentum.
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To comply with this Government Code, staff must also address the retention efforts currently employed by RCEA. In 2024, RCEA had an employee turnover rate of 15%; the majority of the employees who left RCEA did so to pursue other employment opportunities, often with offers of higher salaries. Retention efforts are aimed at maintaining competitive salaries and benefits, through biennial salary survey; staff professional development; and staff social activities.
Additionally, through Executive and Senior Management, an emphasis on work-life balance has become fully engrained in RCEA company culture. Work-life balance is commonly mentioned by staff as a valued benefit of employment at RCEA.
RCEA must also identify any changes to policies, procedures or recruitment activities that negatively impact the entity’s efforts to reduce its vacancies. RCEA had previously identified that position descriptions were overly vague and not applicable to current staffing needs. Staff contracted with Gallagher consultants to perform a full Class and Compensation Study. This study is expected to create clarity in current position descriptions, create new position descriptions, and assist in salary compaction issues. These changes are expected to increase retention of current staff and facilitate easier recruitment efforts in the future.
If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, RCEA must, upon the request of the recognized employee organization, include specified information during the public hearing. RCEA currently does not have any represented employee groups and is therefore not currently subject to this requirement.
FINANCIAL IMPACT
None.
STAFF RECOMMENDATION
Receive a staff report, open the public hearing, take public comment, and close the public hearing.
ATTACHMENTS
None.
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STAFF REPORT
Agenda Item # 10.2
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
Kristy Siino, HR Manager
SUBJECT: Cost of Living Salary Adjustment
SUMMARY
In December 2016, the RCEA Board adopted an employee compensation policy. The policy notes that, in order to attract and retain qualified employees at all levels of the organization, it is the policy of the Authority to maintain fair and competitive salary ranges consistent, within the economic constraints of the Authority, with the labor market in which we compete for talented employees. The labor market agencies identified in the policy were updated by the RCEA Board in February 2021.
The policy states that RCEA will conduct a biennial salary survey to identify the “averaged” level of salary for each benchmark position. In addition, staff are to recommend adjustments to RCEA’s salary ranges when warranted by changing economic and competitive factors. The last biennial salary survey and resulting salary schedule update was completed in 2023.
In early 2025, RCEA staff, with Board direction, engaged Gallagher Consulting to perform a full classification and compensation study. The classification and compensation study will review all 39 full-time employees in seven classifications using 10-12 comparators. The study includes the following:
• Collection and review of position description questionnaires completed by each employee (PDQ)
• Interviews with employees, supervisors and managers
• Reviewing and drafting classification descriptions based on information collected which may include drafting additional job classifications • Providing a classification plan and final report
• Determining compensation survey elements and comparing them with 12 labor market agencies and 15 benchmark classifications
• Providing compensation recommendations.
Gallagher Consulting has been provided the list of labor market agencies as specified in the Board adopted compensation policy. The study will evaluate each agency and make 93
recommendations to include additional agencies or replace existing agencies with ones that may be more appropriate to use as comparisons.
The final reports from Gallagher Consulting are expected in September 2025. Staff have delayed completing an internal biennial salary study pending the results of the third-party classification and compensation study. Staff recommends the Board formally pause the internal biennial salary survey until the results and recommendations have been received from Gallagher. Based on the results, staff may suggest amendments to the Board adopted compensation policy for use in future years.
Staff will present the results and recommendations to the Board later this year when they are complete. However, staff propose to delay adoption of any of the recommendations until the mid-year budget review, which will allow the Board to consider the financial impacts of any changes with the budget outlook in mind.
COST OF LIVING ADJUSTMENT (COLA)
In recognition that RCEA salaries have not increased since 2023 and a pause of implementing any salary adjustments until February 2026, staff recommend a cost-of-living adjustment (COLA), effective July 1, 2025. Any adopted COLA increase will be considered in the final classification and compensation recommendations.
To determine a COLA amount staff reviewed the Bureau of Labor Statistics’ Consumer Price Index – All Urban Consumers, West Region (CPI-W) and the Social Security Administration’s published COLA for 2024 and 2025. The CPI-W increased 5.1% (2.9% in 2024 and 2.2% in 2025), and the Social Security Administration increased 5.6%. (2.5% in 2024 and 2.6% in 2025). Staff is recommending that the Board approve a 6% COLA adjustment effective July 1, 2025.
The proposed COLA of 6% is included in the draft budget that will be presented and adopted later in this meeting. The annual cost of 6% COLA for all staff is $300,000.
In April 2024, the Board approved removing the Executive Director salary schedule from the RCEA staff salary schedule. At that time, it was clarified that this would be a separate salary schedule, and per the Compensation Policy, would be excluded from the internal biennial salary survey. However, the Board would have the latitude to extend any approved increases to the Executive Director, as well as adjust the salary outside of the survey whenever it is deemed necessary. Staff included a review of the Executive Director classification in the class and compensation study scope of work based on Board direction.
The Executive Director is not recommending the Board extend the COLA to the ED salary schedule at this time. The Executive Director is not recommending a salary change at this time because she is a new hire (1/6/2025) and in recognition that the ED salary was updated in April 2024. The Executive Director recommends reviewing any changes in salary with the annual performance review (January 2026). Additionally, the timing of the ED’s annual performance review will allow the Board to consider the results of the classification and compensation study when making any decisions. 94
FINANCIAL IMPACT
Adjusting RCEA’s staff pay schedule by 6% will increase RCEA’s personnel budget by approximately $300,000. The proposed FY25-26 budget being presented at this meeting includes the COLA increase of 6%.
STAFF RECOMMENDATION
Staff recommends the following:
1. Direct staff to pause completing an internal biennial salary survey until the results and recommendations of the classification and compensation study have been received from Gallagher Consulting.
2. Approve an update to the RCEA staff salary schedule including a 6% COLA salary adjustment effective July 1, 2025.
ATTACHMENTS:
A. Board Adopted Compensation Policy with Amendment
B. RCEA Salary Schedule Adopted April 2024
C. Proposed RCEA Salary Schedule with 6% COLA
D. RCEA Executive Director Salary Schedule Adopted April 2024 (for reference) 95
REDWOOD COAST ENERGY AUTHORITY
EMPLOYEE COMPENSATION POLICY
1. Purpose
The purpose of this policy is to define the philosophy of compensation for the Redwood Coast Energy Authority (hereinafter the Authority) for regular employees, and to specifically define how salary increases for various job classifications are determined.
The Compensation Policy specifically addresses:
• Objectives of the Policy
• Statement of Compensation Policy
• Basis for Determination of Salary and Salary Changes
• Salary Surveys
• Internal Alignment
• Review of Performance and Salary
• Procedures
Specific clarification of Performance Evaluation, Employee Classifications, and all matters pertaining to employee benefits are addressed under separate policies.
2. Definitions
a. Average of the Salary Survey
The average of the salary survey is the average of the salary figures for all the agencies surveyed at the mid-point of the salary range.
b. Labor Market Agencies
The Authority recognizes one labor market for all of its regular positions. The labor market includes the following agencies:
1. Humboldt Bay Municipal Water District
2. City of Eureka
3. County of Humboldt
4. North Coast Unified Air Quality Management District
5. HSU Schatz Energy Research Center
6. Mendocino Energy Watch (administered by Community Development Commission of Mendocino County)
7. Trinity County Public Utility District
8. City of Ukiah Electric Utility
9. Sonoma Clean Power
Additions and/or deletions to the recognized labor market may be made by the Board at a scheduled meeting of the Authority.
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c. Benchmark Classification
A benchmark classification is a position or classification which is regarded as representative or comparable from agency to agency and which will serve as the basis for the internal alignment of salaries of related agency classifications. The Executive Director shall determine the benchmark positions to be utilized in any survey. d. Salary Surveys
A periodic survey of the Labor Market Agencies will be conducted of the designated benchmark classifications at least every two (2) years. The results of the survey, including the collected raw survey data will be shared with the Authority board in a public meeting prior to adoption of changes to the Authority’s salary ranges. e. Merit Increase
A salary increase granted to an employee on the basis of performance that meets or exceeds performance criteria for the job classification.
3. Statement of Policy
In order to attract and retain qualified employees at all levels of the organization, it is the policy of the Authority to maintain fair and competitive salary ranges consistent, within the economic constraints of the Authority, with the labor market in which we compete for talented employees. a. Statement of Compensation Policy
It is the policy of the Authority to:
i. Establish salary ranges that reflect the value of various jobs, as determined by periodic job evaluation and review, taking into account the duties and levels of responsibility of each job;
ii. Establish salary ranges consistent with the Authority’s fiscal ability to maintain services consistent with projected revenues and Board direction; iii. Survey other agencies who employ similar positions relative to salary and to adjust salary ranges when warranted by changing economic and competitive factors, including periodic salary surveys;
iv. Encourage superior performance by adjusting the salary of each employee on the basis of the quality of individual performance (merit) as determined by performance evaluations;
v. Ensure that compensation is not influenced by race, creed, national origin, color, marital status, age, sex or sexual identity, or disability. 97
b. Basis for Determination of Salary and Salary Changes Salary levels will be based upon:
i. The fair and competitive salary ranges adopted by the Authority Board consistent with the economic constraint of the Authority and the labor market. This will be determined by the Board and at its sole discretion after reviewing the local area’s consumer price index, salary increases granted by the comparable Labor Market Agencies, and the Authority’s ability to maintain organizational services at a level consistent with projected revenues and Board direction. ii. A periodic (every 2 years) salary survey of benchmark positions within the established labor market to determine if any classifications should be considered for a market adjustment in salary;
iii. Internal Authority classification relationships, and; iv. All compensation increases within a classification’s salary range will be based upon merit.
c. Salary Surveys
The Authority has identified the Labor Market Agencies for benchmark classifications. The biennial salary survey shall identify the “average” level of salary for each benchmark classification paid by the labor market.
d. Internal Alignment
A minimum and maximum salary range is established for each job classification based upon external labor market data and upon the internal alignment of job classifications throughout the Authority. The alignment of the job classification system will be maintained and reviewed on a regular and systemic basis.
e. Review of Performance and Salary
While the performance of each employee is regularly reviewed, overall performance and salary level shall be appraised, in detail, at least once during every twelve (12) month period. The merit of employee performance as reported on such appraisals will determine salary increases to be granted.
Change in pay of an individual employee shall primarily reflect upon competence in the performance of all assigned duties and sustained accomplishment of the objectives and tasks of the position. Performance will be evaluated by those in management having direct supervisory responsibility for the employee and shall be reviewed and approved in accordance with the procedures outlined in the Performance Evaluation Policy. 98
Specific situations which warrant review of performance and of salary include the following:
i. New Hire/Initial Hire Employees
Before an applicant is hired or an employee promoted to a new or revised position, a job description must be prepared and the position must be evaluated, approved and placed in a salary range. Starting salary will be at the minimum established for the range, with the following exceptions:
• Directors may appoint new employees up to and including 5% above the range minimum, subject to approval of the Executive Director. • The Executive Director may authorize appointments up to and including the mid-point of the salary range in the event of a recruitment emergency or exceptional qualifications of a candidate.
During the initial employment period, or first twelve (12) months of employment, employees are eligible to receive up to a 5% increase based upon the merit of their performance.
ii. Merit Increases
Employees are eligible to receive up to a 5% salary increase per year based upon the merit of their performance as established in their annual performance evaluation.
The merit increase consideration allows an individual employee’s salary to increase within the range established for his/her job classification (ie., no more than the maximum salary in the salary range.)
iii. Compensation Adjustments
Employees may receive additional compensation adjustments at such time that the Board determines that classifications and/or salary ranges should be adjusted based upon survey data. However the Board retains the jurisdiction to adjust salary ranges without modifying individual salaries, or to adjust individual salaries only for a portion of the classification (for example limiting the adjustment to employees who have been at the top step of the salary range for more than one year). iv. Promotion
Employees promoted to a new position in a classification with a higher salary range will be compensated at least at the minimum salary in the new range.
A promoted employee begins a twelve (12) month probationary period in the new classification. During this period, employees are eligible to receive up to a 5% merit increase based upon completion of probation and a performance review with satisfactory or better performance.
v. Out of Class Pay
Subject to the prior written authorization of the Executive Director, employees may be eligible for up to 5% out of class pay for performing the majority of their assigned duties at a level significantly above their current job classification for periods 60 or more days.
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4. Procedures for Approval of Salary Adjustments
a. Documentation Required
To ensure that salary adjustments are based upon an individual employee’s current performance, proposed personnel actions that result in a change in compensation must include an explanation of the employee’s performance in the space provided at the bottom of the Personnel Action Form (PAF).
b. Procedure
i. Supervisors shall evaluate employee performance formally prior to any personnel action that affects salary positively, or negatively. The Personnel Action Form should be prepared and forwarded to the Director responsible for Human Resources for the Authority. It is important that proposed compensation increases are not discussed with the employee until after the Director responsible for Human Resources has reviewed the PAF for accuracy and consistency with the employee’s salary, performance history, and policy.
ii. The Director responsible for Human Resources will receive and review all Employee PAFs and initiate further discussion with the supervisor if necessary. If the PAF documents are in order, the supervisor will be authorized to schedule a meeting with the employee to discuss both their performance and the recommended salary adjustments and effective date.
iii. The completed evaluation form, signed by the employee and supervisor shall be returned to Human Resources for processing and permanent placement in the employee’s personnel file.
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RESOLUTION NO. 2021-01
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE REDWOOD COAST ENERGY AUTHORITY
MODIFYING THE LIST OF LABOR MARKET AGENCIES
IN THE EMPLOYEE COMPENSATION POLICY
WHEREAS, in December 2016, the Board approved the RCEA Employee Compensation Policy ("Compensation Policy"), which included a requirement to perform a biennial salary survey; and
WHEREAS, Section 2 of the Compensation Policy recognizes certain agencies within the labor market for use in the biennial salary survey and allows for additions and/or deletions to the recognized Labor Market Agencies list to be made by the Board at a scheduled meeting of the Authority; and
WHEREAS, many more Community Choice Aggregation agencies, including rural agencies, now operate in California than when the Compensation Policy was approved in 2016 and one of the original Labor Market Agencies is no longer in operation.
NOW, THEREFORE, BE IT RESOLVED, that the Board of the Redwood Coast Energy Authority hereby modifies the recognized labor market defined in Section 2 of the Compensation Policy, by adding Valley Clean Energy and Pioneer Clean Energy and deleting Mendocino Energy Watch.
Adopted this 25th day of February , 2021 .
ATTEST:
Sheri Woo, RCEA Board Chair Clerk of the Board, RCEA
Date:-~? __,_ \ 1,--+-\ ____. 'l,j __ Date: February 25, 2021 Modification of Compensation Policy, 2021 Page I of2
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CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution No. 2021-01 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the 25th day of February , 2021, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Avis, Curran, Grover, Losey, Schaefer, F. Wilson, M. Wilson, Woo None
Bauer
None
Clerk of the Board, Redwood Coast Energy Authority
Modification of Compensation Policy, 2021 Page 2 of2
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Redwood Coast Energy Authority - Job Classifications and Pay Scales, adopted 4.22.24 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Associate/Intern
Hourly 21.52 22.07 22.63 23.21 23.81 24.40 25.01 25.64 26.28 26.94 Monthly 3,729.51 3,758.03 3,854.39 3,953.22 4,054.59 4,155.95 4,259.85 4,366.35 4,475.51 4,587.39 Annual 44,754.13 45,901.67 47,078.64 48,285.78 49,523.88 50,761.98 52,031.03 53,331.80 54,665.10 56,031.72 Coordinator
Hourly 27.25 27.93 28.63 29.35 30.08 30.83 31.60 32.39 33.20 34.03 Monthly 4,723.33 4,841.42 4,962.45 5,086.51 5,213.68 5,344.02 5,477.62 5,614.56 5,754.92 5,898.80 Annual 56,680.00 58,097.00 59,549.43 61,038.16 62,564.11 64,128.22 65,731.42 67,374.71 69,059.08 70,785.55 Specialist
Hourly 31.34 32.14 32.97 33.81 34.68 35.57 36.48 37.42 38.35 39.31 Monthly 5,432.01 5,571.29 5,714.14 5,860.66 6,010.93 6,165.06 6,323.14 6,485.27 6,647.40 6,813.59 Annual 65,184.09 66,855.48 68,569.72 70,327.92 72,131.20 73,980.72 75,877.66 77,823.24 79,768.82 81,763.04 Senior Specialist
Hourly 36.04 36.96 37.91 38.88 39.88 40.90 41.93 42.97 44.05 45.15 Monthly 6,246.81 6,406.98 6,571.26 6,739.76 6,912.57 7,089.82 7,267.06 7,448.74 7,634.96 7,825.83 Annual 74,961.71 76,883.80 78,855.18 80,877.11 82,950.88 85,077.83 87,204.77 89,384.89 91,619.51 93,910.00 Technician/Analyst
Hourly 37.04 37.99 38.96 39.96 40.98 42.03 43.11 44.22 45.32 46.46 Monthly 6,419.65 6,584.25 6,753.08 6,926.23 7,103.83 7,285.98 7,472.80 7,664.41 7,856.02 8,052.42 Annual 77,035.74 79,011.02 81,036.94 83,114.81 85,245.96 87,431.76 89,673.60 91,972.92 94,272.24 96,629.05 Senior Technician/Analyst
Hourly 42.59 43.68 44.80 45.95 47.13 48.34 49.55 50.79 52.06 53.36 Monthly 7,382.59 7,571.89 7,766.04 7,965.17 8,169.40 8,378.88 8,588.35 8,803.06 9,023.13 9,248.71 Annual 88,591.11 90,862.67 93,192.49 95,582.04 98,032.86 100,546.52 103,060.18 105,636.69 108,277.61 110,984.55 Manager
Hourly 42.73 43.83 44.95 46.11 47.29 48.50 49.74 51.02 52.30 53.60 Monthly 7,407.28 7,597.21 7,792.01 7,991.81 8,196.73 8,406.90 8,622.46 8,843.55 9,064.64 9,291.25 Annual 88,887.40 91,166.56 93,504.17 95,901.71 98,360.73 100,882.80 103,469.54 106,122.60 108,775.67 111,495.06 Senior Manager
Hourly 49.14 50.40 51.70 53.02 54.38 55.78 57.17 58.60 60.07 61.57 Monthly 8,518.38 8,736.80 8,960.82 9,190.58 9,426.24 9,667.93 9,909.63 10,157.37 10,411.31 10,671.59 Annual 102,220.51 104,841.55 107,529.79 110,286.96 113,114.84 116,015.22 118,915.60 121,888.49 124,935.70 128,059.09 Director
Hourly 61.48 63.05 64.67 66.33 68.03 69.73 71.47 73.26 75.09 76.97 Monthly 10,655.75 10,928.97 11,209.20 11,496.62 11,791.40 12,086.19 12,388.34 12,698.05 13,015.50 13,340.89Annual 127,868.94 131,147.64 134,510.40 137,959.38 141,496.80 145,034.22 148,660.08 152,376.58 156,185.99 160,090.64 103
Redwood Coast Energy Authority - Job Classifications and Pay Scales, DRAFT 6% COLA June 26, 2025 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Associate/Intern
Hourly 22.81 23.38 23.97 24.57 25.18 25.81 26.45 27.12 27.79 28.49 Monthly 3,953.94 4,052.79 4,154.11 4,257.96 4,364.41 4,473.52 4,585.36 4,699.99 4,817.49 4,937.93 Annual 47,447.30 48,633.48 49,849.32 51,095.55 52,372.94 53,682.26 55,024.32 56,399.92 57,809.92 59,255.17 Coordinator
Hourly 28.89 29.61 30.35 31.11 31.88 32.68 33.50 34.34 35.19 36.07 Monthly 5,006.73 5,131.90 5,260.20 5,391.70 5,526.50 5,664.66 5,806.28 5,951.43 6,100.22 6,252.72 Annual 60,080.80 61,582.82 63,122.39 64,700.45 66,317.96 67,975.91 69,675.31 71,417.19 73,202.62 75,032.69 Specialist
Hourly 33.22 34.05 34.90 35.77 36.67 37.59 38.53 39.49 40.48 41.49 Monthly 5,758.20 5,902.16 6,049.71 6,200.95 6,355.98 6,514.88 6,677.75 6,844.69 7,015.81 7,191.21 Annual 69,098.43 70,825.89 72,596.54 74,411.45 76,271.74 78,178.53 80,133.00 82,136.32 84,189.73 86,294.47 Senior Specialist
Hourly 38.20 39.16 40.14 41.14 42.17 43.22 44.30 45.41 46.55 47.71 Monthly 6,621.75 6,787.29 6,956.98 7,130.90 7,309.17 7,491.90 7,679.20 7,871.18 8,067.96 8,269.66 Annual 79,460.99 81,447.52 83,483.70 85,570.80 87,710.07 89,902.82 92,150.39 94,454.15 96,815.50 99,235.89 Technician/Analyst
Hourly 39.26 40.24 41.25 42.28 43.34 44.42 45.53 46.67 47.84 49.03 Monthly 6,805.48 6,975.62 7,150.01 7,328.76 7,511.98 7,699.78 7,892.27 8,089.58 8,291.82 8,499.12 Annual 81,665.79 83,707.44 85,800.12 87,945.13 90,143.75 92,397.35 94,707.28 97,074.96 99,501.84 101,989.38 Senior Technician/Analyst
Hourly 45.15 46.27 47.43 48.62 49.83 51.08 52.35 53.66 55.01 56.38 Monthly 7,825.20 8,020.83 8,221.35 8,426.89 8,637.56 8,853.50 9,074.84 9,301.71 9,534.25 9,772.61 Annual 93,902.43 96,249.99 98,656.24 101,122.65 103,650.71 106,241.98 108,898.03 111,620.48 114,411.00 117,271.27 Manager
Hourly 45.29 46.43 47.59 48.78 50.00 51.25 52.53 53.84 55.19 56.57 Monthly 7,850.93 8,047.20 8,248.38 8,454.59 8,665.95 8,882.60 9,104.67 9,332.28 9,565.59 9,804.73 Annual 94,211.10 96,566.38 98,980.54 101,455.05 103,991.43 106,591.22 109,256.00 111,987.40 114,787.08 117,656.76 Senior Manager
Hourly 52.09 53.39 54.73 56.09 57.50 58.93 60.41 61.92 63.46 65.05 Monthly 9,028.66 9,254.37 9,485.73 9,722.88 9,965.95 10,215.10 10,470.47 10,732.23 11,000.54 11,275.55 Annual 108,343.87 111,052.47 113,828.78 116,674.50 119,591.36 122,581.15 125,645.68 128,786.82 132,006.49 135,306.65 Director
Hourly 65.17 66.80 68.47 70.18 71.93 73.73 75.58 77.47 79.40 81.39 Monthly 11,295.93 11,578.32 11,867.78 12,164.48 12,468.59 12,780.30 13,099.81 13,427.31 13,762.99 14,107.06Annual 135,551.10 138,939.88 142,413.38 145,973.71 149,623.06 153,363.63 157,197.72 161,127.67 165,155.86 169,284.75 104
Redwood Coast Energy Authority - Executive Director Pay Scale, effective 4.22.24 Executive Director
Hourly 87.91 90.11 92.36 94.67 97.04 99.46 101.95 104.50 107.11 109.79 112.53 115.35 118.23 Monthly 15,237.72 15,618.66 16,009.13 16,409.35 16,819.59 17,240.08 17,671.08 18,112.86 18,565.68 19,029.82 19,505.56 19,993.20 20,493.03 Annual 182,852.59 187,423.90 192,109.50 196,912.24 201,835.05 206,880.92 212,052.95 217,354.27 222,788.13 228,357.83 234,066.77 239,918.44 245,916.40 105
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STAFF REPORT
Agenda Item # 10.3
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY:
Lori Biondini, Director of Business Planning and Finance Eileen Verbeck, Deputy Executive Director
Beth Burks, Executive Director
SUBJECT: Fiscal Year 2025-2026 Proposed Budget
SUMMARY
This item is to approve the RCEA fiscal year 2025-2026 (FY25-26) annual budget.
The attached budget was initially reviewed by the Finance Committee on May 12, 2025, then by the full Board on May 22, 2025. Staff addressed questions at both meetings. No changes to the draft budget were requested and this version is identical to the one reviewed by the Board in May. In addition to the budget worksheets that were reviewed in May, a budget narrative is attached which provides a little more background and information on the budget priorities and makeup of each department.
General Information
Forecasted electricity sales and wholesale power costs are based on modeling provided by The Energy Authority dated May 5, 2025, which assumes maintaining retail generation rates at 0.5% below Pacific Gas & Electric Company (PG&E) retail generation rates. Electricity sales revenue and power costs are forecasted to be reduced due to decreased customer load in Humboldt County.
Last May, the Board approved pausing RCEA’s goal of procuring 100% renewable and carbon-free energy by calendar year 2025 due to anticipated negative net-revenue for the fiscal year.
The forecast had greatly improved by mid-year and this budget assumes resuming the 100% clean and renewable goal in calendar year 2026.
Funds for the Northern Rural Energy Network (NREN) customer programs are flowing to RCEA and comprise a large portion of the non-electricity sales revenue and operating expenses in the proposed budget.
STAFF RECOMMENDATION
Adopt the proposed RCEA Fiscal Year 2025-2026 budget.
ATTACHMENTS
1. Proposed Fiscal Year 2025-26 RCEA Budget Narrative
2. Proposed Fiscal Year 2025-26 RCEA Budget Worksheets
3. Draft Organization Chart 7-1-2025
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BUDGET
FISCAL YEAR
2025-26
Considered for Adoption
June 26, 2025
( 7 0 7 ) 2 6 9 - 1 7 0 0
6 3 3 3 S t r e e t r d
E u r e k a , C A 9 5 5 0 1
Redwood Coast Energy Authority
108
1 Table of Contents
Introduction ..................................................................................................................... 2 Fiscal Year 2025-2026 Budget Calendar ........................................................................ 4 Budget Summary ............................................................................................................ 5 RCEA Structure............................................................................................................... 6 Power Resources......................................................................................................... 6 Infrastructure Planning & Transportation ..................................................................... 7 Demand-Side Management ......................................................................................... 9 Executive Departments.............................................................................................. 10 Executive Director................................................................................................... 10 Deputy Executive Director ...................................................................................... 10 Business Planning and Finance Director................................................................ 10 General & Administrative............................................................................................... 12 Debt Service and Cash Reserves ................................................................................. 13 109
2 Introduction
Redwood Coast Energy Authority’s mission and purposes as established through the formation of the Joint Powers Agency is to:
“Develop and implement sustainable energy initiatives that reduce energy demand, increase energy efficiency and advance the use of clean, efficient and renewable resources available in the region.”
This mission continues to drive our work and motivate our team.
This 2025-2026 fiscal year budget has been developed with the following focus areas in mind in an effort to best advance our mission.
1. Internal Operational Effectiveness, Financial Position, and Team Cohesiveness.
RCEA has experienced growth and staff turnover in the last several years. Nearly half of the current staff have been with RCEA for three years or less. RCEA programs have also grown during this time, most notably through the Northern Rural Energy Network, which has 12 full-time equivalent staff and millions of dollars in passthrough funds and local programs. RCEA has also matured as a community choice energy aggregator (CCA), and it is time to stabilize our financial position.
We want to make sure that we are working with the right organizational structure, with technology and internal processes that support us to do the best work we can. We are prioritizing funding cash reserves to improve our financial position and create opportunities for savings and investments. We want to build on the team culture that fosters inclusiveness, collaboration, and an openness to continuous improvement.
Tasks included in this budget:
• Complete an organizational assessment and implement changes to organizational structure
• Procure advanced accounting and payroll software, moving internal file access to SharePoint, adopting project management tools such as Monday.com
• Progress towards reserve goals and investing cash reserves • Internal process improvements to streamline operations • Internal mentorship programs and professional development opportunities 110
3 2. Excellence in Delivery of Existing Programs.
RCEA has a long history of delivering meaningful programs to benefit our community and the climate. This year we have a full suite of programs to deliver that will promote equity, efficiency, affordability, and resiliency. Through our CCA we’ll be working towards a power portfolio of 100% renewable and carbon free energy.
Tasks included in this budget:
• Full launch and implementation of the NREN programs. As the portfolio manager, we will maintain a high level of transparency, accountability and trust with the NREN partners.
• Continue to support the Tribal Energy Resilience and Sovereignty (TERAS) project
• Continue the Regional Resilience Grant Program (RRGP) • Continue the Local Government Program (LGP)
• Continue to operate and expand the Redwood Electric Vehicle Charging Network (REVNet)
• Continue to offer electric vehicle and e-bike rebates • Continue to offer Net Energy Metering to electricity customers, the Feed-in Tariff and Bioenergy Market Adjusting Tariff (BioMat) to small renewable energy generators, and operate the Redwood Coast Airport Microgrid • Continue procurement of local battery energy storage.
3. Engagement with Our Community and Planning for the Future.
This year the RCEA team will elevate awareness of RCEA and our programs throughout our community. We want to bring new customers to the CCA, encourage participation in NREN services and CCA programs, as well as improve engagement in our planning efforts. Along with evaluating cost of service ratemaking, we will begin to plan for a comprehensive update to the RCEA strategic plan which will take place in the following fiscal year. These planning efforts will benefit from increased awareness of RCEA. Additionally, engagement with regional partners will help RCEA succeed in meeting needs identified by our community, including Tribal Nations and local government partners.
Tasks included in this budget:
• Cost of Service Rate Setting Analysis
• Elevated awareness of RCEA, our mission, programs, and engagement opportunities
• Preparing the Integrated Resource Plan (Spring 2026)
• Collaboration with regional partners on offshore wind and Regional Climate Action Plan implementation
• Continued engagement with CalCCA and CC Power
111
4 • Preparation for RCEA strategic plan update and Humboldt’s Electric Future (power portfolio planning) in Fiscal Year 2026-27.
Fiscal Year 2025-2026 Budget Calendar
May 12, 2025 RCEA Board of Directors Standing Finance Subcommittee review draft Fiscal Year 2025-2026 Budget and provide feedback to staff.
May 22, 2025 RCEA Board of Directors review draft Fiscal Year 2025-2026 Budget, with input from Standing Finance Committee incorporated, and provide feedback to staff.
June 26, 2025 RCEA Board of Directors adopts Final Budget for Fiscal Year 2025- 2026.
112
5 Budget Summary
TABLE 1: BUDGET SUMMARY
Revenue
State Contracts 1,634,000
REVNet Sales & LCFS Credits 77,000
Non-Government Contracts 9,993,607
Electricity Sales 73,752,521
Uncollectable Accounts (2,212,576)
Total 83,244,552
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs 34,919,982
Bilateral Costs 22,697,604
Sub-total 57,617,586
PERSONNEL
Payroll 6,119,033
Other Personnel Costs 285,063
Sub-total 6,404,096
FACILITIES AND OPERATIONS
Offices/Workstations 987,525
Major Capital Assets O&M 766,894
Property & Liability Insurance 105,000
Dues & Memberships 397,559
Sub-total 2,256,978
COMMUNICATIONS AND OUTREACH 363,250
PROFESSIONAL & PROGRAM SERVICES
Regulatory 150,000
Program Related Professional Services 3,220,084
CC Power - special projects 305,261
CalCCA - special projects 15,000
NREN Partner Pass-through 3,149,471
Accounting 228,000
Legal 249,000
Wholesale Services - TEA 896,946
Procurement Credit - TEA 572,390
Data Management - Calpine 808,002
Customer Billing - PG&E 256,634
Sub-total 9,850,787
INCENTIVES & REBATES 1,622,655
NON-OPERATING COSTS 129,200
Total 78,244,552
Net Income/Reserves Contribution 5,000,000
113
6 RCEA Structure
RCEA has three departments responsible for implementing RCEA programs (Power Resources, Demand Side Management, and Infrastructure Planning and Transportation), each with a director. Additionally, there are three executive departments (Business Planning and Finance, the offices of the Deputy Executive Director and the Executive Director) that each supervise a team that works to support the overall functions of the organization and take on special projects.
Power Resources
The Power Resources department includes six full-time employees and one part-time employee who oversee the power purchasing and electricity account services functions, key components of RCEA’s CCA service.
Forecasted electricity sales and power costs are based on modeling provided by The Energy Authority, RCEA’s power manager, dated May 5, 2025, and assumes maintaining retail generation rates at 0.5% below Pacific Gas & Electric Company (PG&E) retail generation rates. The budget also assumes procuring all renewable and carbon-free energy for calendar year 2026.
The Bioenergy Market Adjusting Tariff (BioMat) and Feed-in-Tariff (FIT) offer above-market pricing for local renewable energy. The budget includes dedicating staff time and funding professional services to assist with any interest in the tariff programs. 114
7 TABLE 2: POWER RESOURCES
Community
Choice Energy BioMat/FIT
Revenue
Electricity Sales 73,752,521
Uncollectable Accounts (2,212,576)
Total 71,539,945 -
Expense
WHOLESALE POWER SUPPLY 57,612,586
PERSONNEL 954,191 27,005
FACILITIES AND OPERATIONS
Dues & Memberships 252,744
COMMUNICATIONS AND
OUTREACH 91,000 1,500
PROFESSIONAL & PROGRAM
SERVICES
Regulatory 95,000
Program Related Professional Services 30,000
CC Power - special projects 305,261
CalCCA - special projects 15,000
Accounting 100,000
Legal 40,000
Wholesale Services - TEA 896,946
Procurement Credit - TEA 572,390
Data Management - Calpine 808,002
Customer Billing - PG&E 256,634
Sub-total 3,089,233 30,000
NON-OPERATING COSTS
Annual Account Fee - FSR 6,000 -
Total Expense 62,008,254 58,505
Infrastructure Planning & Transportation
The budget for RCEA’s Infrastructure Planning and Transportation department includes four full-time and one part-time employee. They are focused on infrastructure projects that RCEA will continue to own and operate (Redwood Coast Airport Microgrid, vehicle charging network), clean transportation focused rebates and technical assistance, and efforts to promote resilient critical infrastructure. This department receives funding from the California Energy Commission for construction of the North Coast Resilient Charging Network (NCRCN) of electric vehicle resilience hubs around the County, and from the Governor’s Office of Land Use and Climate Innovation, Regional Resilience Grant Program (RRGP) for construction of solar plus battery storage energy systems at several remote fire stations. The RCEA-owned electric vehicle charging network, REVNet, collects fees that help offset associated operations and maintenance. The RCEA-owned Redwood Coast Airport Microgrid (RCAM) operations and maintenance 115
8 expense is currently included in this department’s budget but will be moved to Power Resources in the future. Additionally, this year’s budget includes clean transportation rebates and fleet technical assistance funded through CCA revenues.
TABLE 3: INFRASTRUCTURE PLANNING & TRANSPORTATION
REVNet NCRCN RRPG
Rebates,
Match &
Tech
Assist
RCAM
Revenue
State Contracts 277,661 1,245,149
REVNet Sales 77,000
Non-Government
Contracts
1,887
Total 77,000 277,661 1,245,149
1,887
Expense
WHOLESALE POWER
SUPPLY
5,000
PERSONNEL 39,465 45,355 207,675 239,352 92,682
FACILITIES AND
OPERATIONS
Major Capital
Assets
67,800 167,894
Dues &
Memberships
815
Sub-total 67,800
169,109
COMMUNICATION AND
OUTREACH
5,000 10,000
PROFESSIONAL &
PROGRAM SERVICES
Program Services 280,000 1,037,474
Legal 4,000
Sub-total
284,000 1,037,474
INCENTIVES & REBATES 100,000
NON-OPERATING COSTS 120,000
Total Expense 107,265 334,355 1,245,149 349,352 386,791 116
9 Demand-Side Management
The Demand-Side Management department budget includes 10 full-time staff and four part-time staff working on the implementation of the Northern Rural Energy Network (NREN) programs, which focus on increasing energy efficiency in residences and businesses in 17 California counties. This department also receives contract funding from PG&E to increase energy efficiency at public agencies through their Local Government Partnership (LGP) program. A small amount of CCA revenue is allocated to department staff time and materials for maintaining RCEA’s Efficiency Lending Library.
TABLE 4: DEMAND-SIDE MANAGEMENT
NREN
Implementation
NREN
EMV
NREN
Marketing
PG&E
Local
Government
Partnership
Program
Efficiency
Lending
Library
Revenue
Non-Government
Contracts 7,374,328
163,898
474,799
296,099
Expense
PERSONNEL 1,175,516 6,397 32,081 296,098 20,046
FACILITIES AND
OPERATIONS
IT Subcontractors
& Supplies 400,000 500
Dues &
Memberships 130,000
Sub-total 530,000 500
COMMUNICATION
AND OUTREACH
Advertising &
Media 10,000
30,000
PROFESSIONAL &
PROGRAM
SERVICES
Program Related
Professional
Services 1,147,706
157,000
320,000
NREN Partner
Pass-through 3,000,951
92,718
Sub-total 4,148,657 157,000 412,718
INCENTIVES &
REBATES
Residential
Equipment
Efficiency 949,446
Commercial
Equipment
Efficiency 560,709 2,500
Lending Library
Sub-total 1,510,155 2,500
Total Expense 7,374,328 163,897 474,799 296,098 22,546
117
10 Executive Departments
The executive departments, comprised of the offices of the Executive Director, Deputy Executive Director, and the Business Planning and Finance Director, work closely together and with all departments and are responsible for supporting the strategic direction of the organization, policy and legislative tracking and engagement, community messaging, outreach, and engagement, budget, accounting, risk management, human resources, staff retention and professional development, and administrative functions of the organization. Budget for these efforts is from NREN funding and CCA revenue.
Executive Director
The Executive Director leads the organization and provides direct supervision and support to each RCEA director. Additionally, the executive director supervises the Community Strategies Manager, the NREN portfolio Manager and the Regulatory and Legislative Policy Manager. There are 7 staff members and a temporary intern on these teams.
Deputy Executive Director
The Deputy Executive Director handles human resources, information technology, data security, facilities, clerk of the Board, and special projects, including the TERAS project.
There are 4 staff members on this team.
Business Planning and Finance Director
The Business Planning and Finance Director oversees accounts payable/accounts receivable, grants and contracts management functions, as well as audit support and special projects such as the Cost of Service Rate Analysis. There are 4 staff members and a vacant position on this team.
118
11 TABLE 5: EXECUTIVE DEPARTMENTS (NON-GENERAL AND ADMINISTRATIVE) Strategic
Planning NREN PA TERAS Community Strategies
Revenue
Non-Government
Contracts
851,139
Expense
PERSONNEL 190,239 410,212 138,366 4,500
FACILITIES AND
OPERATIONS
Office Supplies 1,000
Software 46,220 16,993
Dues & Memberships 6,000
Sub-total 6,000 47,220
16,993
COMMUNICATIONS
AND OUTREACH
General Events 17,250
Outside Professional
Services 105,500
Sponsorships and
Community Support 28,000
Advertising & Media 65,000
Sub-total 215,750
PROFESSIONAL &
PROGRAM SERVICES
Regulatory 55,000
Professional Services 247,904
NREN Partner Pass-thru 55,802
Accounting 25,000
Legal 90,000 25,000
Sub-total 55,000 393,706 50,000
Total Expense 251,239 851,138 188,366 237,243
119
12 General & Administrative
RCEA’s General and Administrative (G&A) functions include information technology, human resources, executive assistance/Board clerk tasks, finance/accounting, and grants and contracts management functions. The budgeted revenue for G&A is a percentage of State grants and NREN funding in addition to CCA revenues. The amount budgeted for G&A Capital Contributions is specifically for RCEA office design consultation.
TABLE 6: GENERAL & ADMINISTRATIVE
G&A
Revenue
State Contracts 111,190
Non-Government Contracts 831,458
Total 942,648
Expense
PERSONNEL EXPENSES 2,524,915
FACILITIES AND OPERATIONS
Offices/Workstations 519,912
Major Capital Assets
Capital Contributions 445,829
Property & Liability Insurance 105,000
Dues & Memberships 8,000
Sub-total 1,078,741
PROFESSIONAL & PROGRAM
SERVICES
Accounting 103,000
Legal 90,000
Sub-total 193,000
Total Expense 3,799,856
120
13 Debt Service and Cash Reserves
RCEA maintains a loan from the Federal Financing Bank, granted through the Rural Utilities Service for the construction of the Redwood Coast Airport Microgrid. The annual debt service for this loan totals $386,338.88 for principal and interest. Interest expense is included in this budget as a non-operating cost.
The Board adopted a policy in January 2025 that defines cash reserves as RCEA’s unrestricted cash position and sets the reserve target at 180 days cash on hand based on forecasted annual CCA operating expenses. The target is approximately $33.1 million for this fiscal year’s budget. This budget includes adding $5 million to RCEA’s unrestricted cash to continue building towards the target cash on hand balance. Energy markets and forecasted retail rates can change drastically during the fiscal year and may change the net revenue projections. Building cash reserves is crucial to stabilizing rates and continuing operations in the event of actual negative net revenue in the future.
Having a healthy reserve has the added benefit of improving RCEA’s creditworthiness, which in turn reduces operating costs associated with maintaining credit and posting security deposits.
121
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Community
Choice Energy Biomat/FIT REVNet NCRCN RRPG
Proposed New
Programs RCAM
Revenue
State Contracts 277,661 1,245,149
REVNet Sales & LCFS Credits 77,000
Non-government Contracts 1,887
Electricity Sales 73,752,521
Uncollectable Accounts (2,212,576)
Total 71,539,945 - 77,000 277,661 1,245,149 - 1,887
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy 9,544,859 5,000
PPA Costs 26,180,427
PPA Revenues (16,027,860)
PCC1 RECs 1,826,772
PCC3 RECs 704,000
Carbon Free Energy 464,406
Total
Sub-total 57,612,586 - - - - - 5,000
PERSONNEL EXPENSES
Payroll
Full-time Salaries 655,230 20,076 15,082 29,865 155,124 150,693 60,242 Part-time Salaries 31,483 - 16,570 - - 14,913 -
Employee Benefits-Insurance 174,925 5,107 4,740 12,278 37,716 48,609 14,570 Paryoll Taxes 58,371 1,706 2,690 2,539 13,186 14,077 5,121 Worker's Comp 3,983 116 184 173 900 961 349
PTO
Total
Other Personnel Costs
Safety - - - - 4,500
Staff Training, Development & Related Travel 30,000 10,000 7,500 Local Mileage 200 200 500 750 100 400
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total 954,191 27,005 39,465 45,355 207,675 239,352 92,682
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software 2,500 400
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance 62,800 167,894
Capital Contributions 5,000 -
Total
Property & Liability Insurance
Dues & Memberships 252,744 815
Sub-total 255,244 - 67,800 - - - 169,109
POWER RESOURCES INFRASTRUCTURE PLANNING and TRANSPORTATION (IP&T)
122
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Community
Choice Energy Biomat/FIT REVNet NCRCN RRPG
Proposed New
Programs RCAM
POWER RESOURCES INFRASTRUCTURE PLANNING and TRANSPORTATION (IP&T)
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery 90,000
General Events 1,000 1,500 5,000
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media - - 10,000
Sub-total 91,000 1,500 - 5,000 - 10,000 -
PROFESSIONAL & PROGRAM SERVICES
Regulatory 95,000
Program Related Professional Services 30,000 280,000 1,037,474 CC Power - special projects 390,632
CalCCA - special projects 15,000
NREN Partner Pass-thru
Accounting 100,000
Legal 40,000 4,000
Wholesale Services - TEA 896,946
Procurement Credit - TEA 572,390
Data Management - Calpine 808,002
Customer Billing - PG&E 256,634
Sub-total 3,174,604 30,000 - 284,000 1,037,474 - -
INCENTIVES & REBATES
Developer Fund/Grant Fund Match - 10,000
EV/EVSE/E-bike Incentives to Customers - - - - 100,000
Residential Equipment Efficiency - - - -
Commercial Equipment Efficiency - - - -
Lending Library
Sub-total - - - - - 110,000 -
NON OPERATING COSTS
Sub-total 6,000 - - - - - 120,000
Total Expense 62,093,625 58,505 107,265 334,355 1,245,149 359,352 386,791 Net Income 9,446,320 (58,505) (30,265) (56,694) 0 (359,352) (384,904) Reserves / Rate Stablization 5,000,000
123
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Revenue
State Contracts
REVNet Sales & LCFS Credits
Non-government Contracts
Electricity Sales
Uncollectable Accounts
Total
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy
PPA Costs
PPA Revenues
PCC1 RECs
PCC3 RECs
Carbon Free Energy
Total
Sub-total
PERSONNEL EXPENSES
Payroll
Full-time Salaries
Part-time Salaries
Employee Benefits-Insurance
Paryoll Taxes
Worker's Comp
PTO
Total
Other Personnel Costs
Safety
Staff Training, Development & Related Travel
Local Mileage
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance
Capital Contributions
Total
Property & Liability Insurance
Dues & Memberships
Sub-total
NREN
Implementation NREN EMV
NREN
Marketing
PG&E Local
Government
Partnership
Program
Efficiency Lending
Library
7,374,328 163,898 474,799 296,099
7,374,328 163,898 474,799 296,099 -
- - - - -
722,550 4,675 17,256 216,632 13,927
145,268 - 8,029 - -
204,900 1,297 4,501 54,583 4,854
73,765 397 2,149 18,414 1,184
5,033 27 147 1,256 81
22,000 3,213
2,000 2,000
1,175,516 6,397 32,081 296,098 20,046
500
400,000
130,000
530,000 500 - - -
DEMAND-SIDE MANAGEMENT (DSM)
124
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery
General Events
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media
Sub-total
PROFESSIONAL & PROGRAM SERVICES
Regulatory
Program Related Professional Services
CC Power - special projects
CalCCA - special projects
NREN Partner Pass-thru
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Customer Billing - PG&E
Sub-total
INCENTIVES & REBATES
Developer Fund/Grant Fund Match
EV/EVSE/E-bike Incentives to Customers
Residential Equipment Efficiency
Commercial Equipment Efficiency
Lending Library
Sub-total
NON OPERATING COSTS
Sub-total
Total Expense
Net Income
Reserves / Rate Stablization
NREN
Implementation NREN EMV
NREN
Marketing
PG&E Local
Government
Partnership
Program
Efficiency Lending
Library
DEMAND-SIDE MANAGEMENT (DSM)
10,000 30,000
10,000 - 30,000 - -
1,147,706 157,000 320,000
3,000,951 92,718
4,148,657 157,000 412,718 - -
949,446
560,709
2,500
1,510,155 - - - 2,500
- - - - -
7,374,328 163,897 474,799 296,098 22,546
0 0 0 0 (22,546)
125
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Revenue
State Contracts
REVNet Sales & LCFS Credits
Non-government Contracts
Electricity Sales
Uncollectable Accounts
Total
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy
PPA Costs
PPA Revenues
PCC1 RECs
PCC3 RECs
Carbon Free Energy
Total
Sub-total
PERSONNEL EXPENSES
Payroll
Full-time Salaries
Part-time Salaries
Employee Benefits-Insurance
Paryoll Taxes
Worker's Comp
PTO
Total
Other Personnel Costs
Safety
Staff Training, Development & Related Travel
Local Mileage
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance
Capital Contributions
Total
Property & Liability Insurance
Dues & Memberships
Sub-total
STRATEGIC
PLANNING
CAPE/unfunded
energy planning &
regional
coordination NREN PA TERAS
111,190 1,634,000
- 77,000
851,139 831,458 9,993,607
- 73,752,521
- (2,212,576)
- 851,139 - - 942,648 83,244,552
34,919,982
9,549,859
26,180,427
(16,027,860)
1,826,772
704,000
464,406
22,697,604
- - - - - 57,617,586
130,209 288,183 98,989 1,077,174 3,655,907
12,455 - - 52,040 280,757
34,622 78,662 30,389 490,938 1,202,690
12,126 24,496 8,414 144,470 383,103
827 1,671 574 9,858 26,141
570,434 570,434
6,119,033
5,000 9,500
17,200 4,500 60,000 154,413
500 6,650
64,000 64,000
50,500 50,500
285,063
190,239 410,212 138,366 4,500 2,524,915 6,404,096
1,000 15,300 16,800
13,000 13,000
55,000 55,000
46,220 16,993 119,612 185,725
76,000 476,000
135,000 135,000
81,000 81,000
8,000 8,000
17,000 17,000
987,525
230,694
445,829 450,829
681,523
105,000 105,000
6,000 8,000 397,559
6,000 47,220 - 16,993 1,078,741 2,171,607
GENERAL &
ADMIN
FISCAL YEAR
2025-2026 BUDGET
PROGRAM ADMIN COMMUNITY
STRATEGIES
126
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery
General Events
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media
Sub-total
PROFESSIONAL & PROGRAM SERVICES
Regulatory
Program Related Professional Services
CC Power - special projects
CalCCA - special projects
NREN Partner Pass-thru
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Customer Billing - PG&E
Sub-total
INCENTIVES & REBATES
Developer Fund/Grant Fund Match
EV/EVSE/E-bike Incentives to Customers
Residential Equipment Efficiency
Commercial Equipment Efficiency
Lending Library
Sub-total
NON OPERATING COSTS
Sub-total
Total Expense
Net Income
Reserves / Rate Stablization
STRATEGIC
PLANNING
CAPE/unfunded
energy planning &
regional
coordination NREN PA TERAS
GENERAL &
ADMIN
FISCAL YEAR
2025-2026 BUDGET
PROGRAM ADMIN COMMUNITY
STRATEGIES
90,000
17,250 24,750
105,500 105,500
28,000 28,000
65,000 115,000
- - - 215,750 - 363,250
55,000 150,000
247,904 3,220,084
390,632
15,000
55,802 3,149,471
25,000 103,000 228,000
90,000 25,000 90,000 249,000
896,946
572,390
808,002
256,634
55,000 393,706 50,000 - 193,000 9,936,158
10,000
- - - 100,000
- - - 949,446
- - - 560,709
2,500
- - - - - 1,622,655
- - - - 3,200 129,200
251,239 851,138 188,366 237,243 3,799,856 78,244,552
(251,239) 0 (188,366) (237,243) (2,857,208)
5,000,000
-
127
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
PR
Specialist
PR
Specialist
Account
Services
Contractor
Wholesale
Power
Procurement
&
Scheduling
Director
Demand-Side
Management (DSM)
Manager
DSM Residential
Technician
Technician
Specialist
Specialist
Coordinator
Intake
Manager
DSM
Commercial/LGP
Technician
Technician
Manager
Rural REN
Analyst Rural
REN
Coordinator
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 DRAFT June 26, 2025 *Executive Director may approve the hiring of part-time, intern and limited-term positions if they fit within the Board adopted personnel budget.
128
Fiscal Year 2025-26 Draft Budget
Presentation for Adoption
Budget Adoption Timeline
• May 12 – Board of Directors Finance Subcommittee review • May 22 –Board of Directors review
• June 26 –Budget presented to full Board for review and adoption RCEA Annual
Work Goals
Efficient
Internal
Operations
Excellent
Program
Delivery
Community
Engagement
& Planning
Summary
FY 25-26 Draft Budget
Revenue $83.2M
Expense $(78.2M)
Addition to Reserves $5M
Revenue
FY 25-26 Draft
Budget
Electricity Sales $71.5M
Grants and Contracts $11.7M
Program Related Service Fees
(REVNet sales, project delay damages)
$77,000
Expense
FY 25-26 Draft
Budget
Wholesale Power Supply $57.6M
Personnel $6.4M
Facilities and Operations $2.2M
Communications and Outreach $363,250
Professional and Program
Services
$9.9M
Incentives and Rebates $1.6M
Non-Operating Costs $129,200
Debt Service & Cash Reserves
• Rural Utilities Service long-term debt P&I: $386,338.88 • Reserves: $5 million
• Reserve Policy – 180 days cash on hand ($33.1M proposed) • As of May 9, 2025, the cash balance is $37M.
• This includes $6.3M for CCE operations cash flow,
• $700K for non-CCE operations cash flow,
• $6.6M of pre-paid NREN funding
• Leaves $23.4M of completely unrestricted cash
STAFF REPORT
Agenda Item # 11.1
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Beth Burks, Executive Director
SUBJECT: CADEMO Central California Offshore Wind Project Background
Since 2017 RCEA has been a leader in exploring offshore wind as a renewable resource that could play a key role in meeting RCEA and state goals for renewable and carbon free power.
From 2017 to 2022, RCEA played a leadership role within the offshore wind space including conducting stakeholder outreach, exploring grid interconnection, and evaluating potential lease areas.
It was in part thanks to RCEA’s early work that the Bureau of Ocean Energy Management (BOEM) issued wind lease auctions off California’s Coast.
More recently, in 2023, RCEA helped direct its joint action entity, California Community Power (CC Power), to strategically consider actions to assess or to contract for offshore wind. CC Power is a Joint Powers Agency whose members include RCEA and seven other Community Choice Aggregators (CCAs) across the state. RCEA joined CC Power in January 2021. CC Power allows its member CCAs to combine their buying power to explore and procure new, cost-effective clean energy and reliability resources to continue advancing local and state climate goals.
CC Power, supported by RCEA and other CCAs, adopted a plan to consider partnering with demonstration projects for floating offshore wind as a way to activate this potential resource type and with hopes of derisking the sector. The idea being that a demonstration project could offer lessons learned and proof of concept that would aid in gaining a better understanding of costs, viability, performance, and other aspects of this nascent industry. A demonstration project could ultimately increase certainty and reduce costs for future larger scale projects. CC Power’s interest in pilot or demonstration projects led to a memorandum of understanding (MOU) between CC Power and the CADEMO project. The MOU is intended to establish a collaborative engagement between CC Power and CADEMO to support the development of the CADEMO project as California’s first offshore wind project.
Purpose of a Demonstration Project
Floating offshore wind may present useful energy, economic development, environmental, and other benefits. But floating offshore wind development in California is nascent with no large-scale projects expected online for approximately a decade or more, no fully developed port infrastructure, and no or a limited California based supply chain. Floating offshore wind development of the scale contemplated for the California Wind Energy Areas has never occurred anywhere in the world. A floating offshore wind demonstration project may yield material and valuable learnings, experience,
activation of various supply chain components, labor apprenticeship opportunities, study and performance data, and other valuable benefits that may support long-term floating offshore wind progress in California. Demonstration experience with floating offshore wind in permitting, biological assessments, construction, operationalization, performance over time and under various conditions, turbine and platform assembly towing and anchoring, maintenance and outages, crew transfer models, interconnection, insurance, financing, contracting, and other efforts can serve to de-risk and lower costs for future California floating offshore wind projects.
CADEMO
CADEMO is a proposed 60 MW, 4- turbine floating offshore wind demonstration project located off the coast from Vandenberg Space Force Base, near Lompoc, in California state waters. CADEMO has an interconnection, making it viable for near-term deployment. It also has a plan to use existing 15 MW turbines. Such turbine sizes have never been used for floating offshore wind and are likely the minimum sized ones planned for Humboldt floating offshore wind area.
With political and expected tax policy changes, the CADEMO project is viewed as the only opportunity to demonstrate floating offshore at this scale in the US within the next 10 years.
For the CADEMO project to continue towards development an interconnection deposit of $1,110,500 is due to PG&E by July 24, 2025 (must be submitted 10 days prior). Given current political uncertainty and other factors, the CADEMO team now needs to raise funds to pay the interconnection deposit. If the CADEMO project loses its interconnection position, it will take many years to re-establish such a position and this project would no longer be moving forward.
Summary
Because of RCEA’s longstanding interest and leadership in offshore wind development RCEA may see benefit to providing short-term, refundable financial support for the CADEMO demonstration project’s interconnection deposit.
Providing a loan for the interconnection deposit would buy time to see if the project can further raise funds for study, permitting, development, contracting, and more. Currently there are lobbying efforts by the CADEMO group and others to advocate for the state to provide funds to further the demonstration project. There is a chance the state could include funding for this project in the current budget cycle.
If the Board is willing to consider a loan for the interconnection deposit, staff recommends that an ad hoc committee be formed for the purpose of reviewing final loan terms and authorizing the executive director to enter into such an agreement.
The ad hoc committee would have authority to approve loan terms if they met at minimum the following general criteria:
• Assurance the loan is refundable. Communications with PG&E indicate this portion of the interconnection deposit would be refundable. Loan terms would specify the mechanism for refundability. This may be through a loan to CADEMO or through an escrow account directly with PG&E.
• Limited duration. Any loan funds would become due to RCEA prior December 12, 2025, when an additional deposit for the Network Upgrades Financial Security would be due to PG&E.
Between now and December the CADEMO team would need to secure public or private financial support that could repay RCEA and post the additional deposit. If this cannot be secured, RCEA would be refunded, and the project would lose their interconnection position. • Other terms as deemed prudent by RCEA legal counsel to ensure the agreement is in the best interest of RCEA.
FINANCIAL IMPACTS
Staff would only recommend entering into a loan agreement for the interconnection deposit if refundability can be assured. The CADEMO project certainly faces many risks, but because the interconnection fee is essentially a refundable deposit, this step is relatively low risk. This low to no risk assumption would need to be solidified through the loan terms. Legal review of the loan agreement would determine if refundability is better assured through a direct loan to CADEMO or by directly posting into an escrow account with PG&E. Under either situation the short-duration loan would come out of RCEA financial reserves.
Costs to RCEA that would not likely be refundable are legal costs to develop the loan agreement. This cost is expected to be approximately $10,000 and is within the FY 25-26 budget as CC Power special projects under the Professional and Program Services category. Additionally, RCEA could elect to participate with other CCAs or alone in lobbying efforts for the project. This cost would not exceed $25,000 and would also be with the FY 25-26 CC Power projects budget.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA has several strategic goals and strategies (See sections 4.1.9 Power Resources: Offshore Wind) related to the development of offshore wind. These policies generally focus on local offshore wind development. Although the CADEMO project is not located off north coast waters, the demonstration project can lead the way and benefit floating offshore wind development throughout the state, including lessons learned that can be applied to our local waters.
EQUITY IMPACTS
While RCEA has not been directly involved in the CADEMO project, a large focus of the MOU between CADEMO and CC Power is to learn about the drivers of key costs in offshore wind development to build support for appropriate policies that balance local investment, jobs and community considerations, greater renewable energy penetration, and electricity affordability. To this end there has been local stakeholder outreach and involvement as well as Tribal consultation. The Santa Ynez Band of the Chumash Indians has indicated support of the project. However, it should be noted that there are other non-federally recognized tribes located closer to the coast that have not been supportive of the project.
RECOMMENDED ACTIONS
Authorize a loan in an amount not to exceed $1,100,500 for the PG&E grid interconnection fee for the CADEMO Offshore Wind Project in central California, and authorize an ad hoc Board committee to approve loan terms consistent with Board recommendations.
ATTACHMENTS
None.
Redwood Coast Energy Authority
CADEMO PROJECT UPDATE
June 26th 2025
A CIERCO Project
June 2025 41
Est. 2001, Cierco operates as a technology
independent developer with bases in Palm
Springs California and Aberdour Scotland
Experiences of staff in project
development, wind turbine technologies,
operations and offshore logistics since
1980s, including first offshore wind project
in 1990
Longstanding experience in working under
JV structures and established relationships
with companies like SBM Offshore, EDF,
EON, SHELL and Scottish Govt
Company DNA: maximizing values through
market integration and “doing the right
thing”
CADEMO (California - USA)
60 (-90MW) 2029-2030
4 (– 6 units) - First
key project on the
US West Coast
Deployment by the
end of the decade – 5
years ahead of 7+GW
Only project available to
provide environmental
de-risking pre 7+GW
Pioneering and supporting
new innovative marine
energy technologies
Part of key strategic step-wise deployment to
derisk and reduce cost
Single unit of worlds largest
offshore wind turbine,
located 1 mile off the coast
Deployment aimed to
test and de-risk ahead of
market launch
Unique insight into next
generation offshore wind
turbine for global benefit
Llyr 1 and 2 (Wales – UK)
Forthwind (Scotland – UK)
Short about CIERCO and Projects
2x 100MW 2029
Deployment, which will
be followed by larger
scale GW projects
7-8 units per project, to
demonstrate technology
and build competition
1x 24 MW 2026
June 2025 42
Why a “PILOT” Project
• Experiences to date have
demonstrated need for early,
smaller scale projects
• De-risk
• Environment and species –
development of Mitigation Measures
• Technology – From fabrication to
operation, develop full understanding
• Integration – Into the overall
community, industry and energy
system
• Reduce Cost
• Capture learnings and experience in
advance of large deployment, reducing
cost of next GWs of 14% (10% to 18%)
• In CA perspective a potential saving of
$9B
Year Name (WTG MW) MW Country
1990 Nogersund (0.22) 0.22 Sweden
1991 Vindeby (0.45) 4.5 Denmark
1995 Tuno Knob (0.5) 5.0 Denmark
2000 Utgrunden (1.5) 10.5 Sweden
2001 Yttre Stengrund (2.0) 10.0 Sweden
2007 Beatrice (5.0) 10.0 UK
2010 Alpha Ventus (5.0) 60.0 Germany
2011 Baltic 1 (2.3) 48.3 Germany
2013 Gunfleet Sands 3 (6.0) 12.0 UK
2016 Block Island (6.0) 30.0 USA
2017 Blyth Offsh Demo (8.0) 41.5 UK
2020 Virginia Offshore (6.0) 12.0 USA
June 2025 43
The CADEMO Project cable route at current
• Located 2.8 miles off Vandenberg
Space Force Base in State waters
• Only project in the US that can
progress with permitting given EO
• First offshore wind project in CA –
targeted installation 2029,
operation 2030 >5 years ahead
of any commercial project
• The “Block Island” project if the
west coast
• Four floating turbines, 15 MW
each, total 60 MW
• 60 MW interconnection with PG&E
(CAISO – Cluster 14)
• Annual Generation of est. 200
GWh net – Equal to annual
consumption of Santa Barbara
June 2025 44
Partnership with Santa Ynez Band of
Chumash Indians (SYBCI): • CADEMO & SYBCI sign Tribal (Community) Benefits Agreement (November 2023)
• First tribal offshore wind CBA in the nation • Agreement among other things, outlining the creation of the SY Chumash Oceanographic Institute, being the first of
its kind, aiming to further Co-Management
of environmental information and
custodianship
• The SY Chumash partnership is continuing
to explore opportunities
• In next step, we are exploring a 2 year program of a Tribal Apprenticeship and Tribal Information Exchange Platform with
California Workforce Development Board
Collaboration with Santa Ynez Tribe
June 2025 45
Key Milestones – PLA with State Labor Unions and HRTP (CWDB) Project Labor Agreement
• CADEMO and Labor unions execute
Project Labor Agreement
• Agreement serves as template for federal
offshore wind leaseholders’ labor
negotiations
High Road Training Partnership
• 3-year grant from CA Workforce
Development Board for offshore wind
• Report issued in July 2023 – includes
lessons learned for supply chain,
workforce training, labor relations
• HRTP ongoing with State Building Trades
and Santa Ynez Chumash
CADEMO and the State Building Trades
continue to work in close collaboration to
build industry platform and new CA jobs
June 2025 46
US Department of Defense –
Military Aviation and
Installation Assurance Siting
Clearinghouse
• CADEMO receives executed
Mitigation Agreement from
DoD (August 2023)
Joint visit by DoD, State Lands Commission, and CADEMO
to VSFB in Sept 2022
Key Milestones – DoD Agreement, VSFB NEPA Collaboration, Baseline Studies Baseline Studies and Study Campaign
• CADEMO is currently undertaking baseline studies to
determine environmental conditions at the project site, both onshore and offshore
• Rare plants and bat surveys initiated in 2023
• Sub-sea noise/species emission monitoring undertaken
2023/24
• Main study campaign to kick off 2026 springtime and
continue during summer season
June 2025 47
(PG&E Facilities Study)
Grid Connectivity (Cluster 14)
• CADEMO submitted
Interconnection Facilities Study
Agreement to PG&E (August
2023)
• CADEMO receives PG&E
Facilities Study and CAISO
Phase II Interconnection Study
results (January 2024)
• Collaborative environment with
PG&E working together with
Project to resolve local energy
issues and special demands in
a very challenged region
Key Milestones – Interconnection secured with PG&E/CAISO June 2025 48
The CADEMO Project – Reaction to Executive Orders
• Cable route currently planned on
military land (NEPA permitting)
• Cable route could exclusively be in
State waters and connect to the
substation area, but needs further
exploration
• Substation located at Surf Beach,
where with directional drilling of
cable out to deeper waters would be
possible
• If an acceptable solution can be
identified, the permitting process
could be undertaken by State Lands
Commission (CEQA)
• Remaining topic of the Chumash
Heritage National Marine Sanctuary.
NOAA jurisdiction would require
NEPA approval (project process
already identified by NOAA)
x
x
?
@ SURF BEACH
END OF SLIDES
THANK YOU
STAFF REPORT
Agenda Item # 11.2
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Lexie Perez, Contracts and Grants Manager
Patricia Terry, Senior Portfolio Manager
SUBJECT: NREN Program Implementation Agreements
BACKGROUND
RCEA is joined with the Sierra Business Council (SBC), Lake Area Planning Commission (Lake APC), and the Mendocino Council of Governments (MCOG) as the Northern California Rural Regional Energy Network (also known as “Northern Rural Energy Network” or NREN). RCEA, serving as the Lead Portfolio Administrator, receives allocated funds from the State through a fiscal sponsor for NREN to implement seven distinct energy efficiency programs to customers in 17 northern California counties:
• Residential Resource Acquisition: energy efficiency and electrification incentives and rebates for residential customers
• Commercial Resource Acquisition: energy efficiency and electrification incentives and rebates for commercial customers
• Residential Equity: assessments and other “non-resource” services to residential customers
• Public Equity: assessments and other “non-resource” services to public agency customers
• Codes & Standards: education and technical resources to increase understanding 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 agency customers.
RCEA entered into Professional Services Agreements with SBC, Lake APC, and MCOG, collectively the Partners and individually Partner, in early 2025 for NREN startup activities including strategic portfolio planning, program design, marketing and branding, and website design. The agreements for startup activities including all amendments will end on June 30, 2025. 129
SUMMARY
The Program Implementation Agreement with each Partner will launch the NREN program implementation phase. The Agreements have not-to-exceed limits as dictated by the allocated funding, but allow Staff to develop and issue task orders under the Agreement in consultation with the NREN governing partners.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RENs in general, and the Northern Rural Energy Network in particular, are designed to reach customers that otherwise are not being reached by existing ratepayer-funded programs. The NREN programs will ensure that hard-to-reach, disinvested, disadvantaged, and underserved rural customers are provided with an equitable level of services and support of CPUC energy programs and are empowered to take action to better manage their energy use and cost through increased awareness, support resources, a trained workforce and access to financing to improve their homes and businesses.
FINANCIAL IMPACT
The allocated funding for program implementation through December 2025 is $2,000,000 for SBC, $350,000 for Lake APC, and $350,000 for MCOG. RCEA, as Portfolio Administrator, receives quarterly advance payments to fund NREN activities.
STAFF RECOMMENDATION
Approve NREN Program Implementation Agreement with Sierra Business Council for task order services with a not-to-exceed amount of $2,000,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
Approve NREN Program Implementation Agreement with Lake Area Planning Council for task order services with a not-to-exceed amount of $350,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
Approve NREN Program Implementation Agreement with Mendocino Council of Governments for task order services with a not-to-exceed amount of $350,000 through December 2025 and authorize the Executive Director to execute all applicable documents pending RCEA Legal Counsel review.
130
NREN Program Implementation Agreements
Between RCEA and Each Governing Partner
- Material Terms -
1. General Scope: Terms and conditions for NREN Program implementation by each Governing Partner. Project-level work to occur through separate task orders
2. Term: Present – December 31, 2027
3. Compensation: Overall fund allocation defined in CPUC-approved budget - SBC: Not to exceed $ 2,000,000
- Lake APC: Not to exceed $ 350,000
- MCOG: Not to exceed $ 350,000
4. Payment: RCEA to make payment within 15 working days of receipt of quarterly invoice
5. Insurance: - Commercial General Insurance: $1,000,000 per occurrence - Professional Errors and Omissions: $1,000,000 single, $2,000,000 aggregate
- RCEA named as additional insured
6. Indemnification: Up to insurance limits
7. Subcontractors: - Insurance at Governing Partner limits, subject to increase for high-risk projects in Governing Partner’s discretion
- RCEA named as additional insured
- Indemnification of RCEA
8. Venue: Sacramento County Superior Court
11.2 - NREN Program Implementation Agreements
Added to agenda packet June 26, 2025
NREN Material Terms for Implementation
Contract
Insurance: • Commercial General Insurance: $1,000,000 per occurrence • Professional Errors and Omissions: $1,000,000 single, $2,000,000 aggregate • RCEA named as additional insured
Indemnification: Up to insurance limits
Subcontractors: • Insurance at Governing Partner limits, subject to increase for high-risk projects in Governing Partner’s discretion • RCEA named as additional insured
• Indemnification of RCEA
Venue: Sacramento County Superior Court
This page
intentionally left
blank.
STAFF REPORT
Agenda Item # 11.3
AGENDA DATE: June 26, 2025
TO: Board of Directors
PREPARED BY: Richard Engel, Director of Power Resources Jocelyn Gwynn, Senior Power Resources Manager
SUBJECT: Local Energy Procurement Goal
BACKGROUND
RCEA’s 2019 RePower Humboldt Strategic Plan states, “By 2030 Humboldt County will be a net exporter of renewable electricity and RCEA’s power mix will consist of 100% local, net-zero-carbon-emission renewable sources.” 1 Since adoption of the plan, RCEA has made some
progress toward this goal, contracting for several energy generation and storage projects located in Humboldt County and completing the RCEA-owned Redwood Coast Airport Microgrid project. Contracted local resources will account for about 22% of RCEA’s annual energy needs once they are all operational. However, 18% of RCEA energy need is met by Humboldt Sawmills Company’s Scotia biomass facility, for which RCEA’s contract expires in 2031.
Humboldt hypothetically has the potential to meet its clean energy needs locally. Compared with most other California counties, we have a rich pool of natural resources including onshore and offshore wind, biomass, solar, ocean wave power, and small hydro power, while our electric load is relatively small. However, local projects tend to be smaller, more expensive and pose higher development risk than non-local projects. Additionally, roughly 60% of RCEA’s annual energy needs have already been contracted through 2030, with about 40% coming from non-local resources that are contracted through 2040. After being active in the market for almost a decade, staff are finding the 100% local goal difficult to meet and not in RCEA’s best economic interest to pursue at all cost.
There have been multiple challenges to ensuring RCEA’s portfolio is all local by 2030:
• California law: RCEA as a load-serving entity (LSE) is subject to laws and regulations, such as the renewable portfolio standard and reliability procurement orders, that have required us to enter contracts for non-local resources such as the Sandrini solar and storage projects in Kern County where there were no competing local offers. These contracts have terms that will extend beyond 2030. Transferring the contracts to another buyer is likely infeasible given that they were negotiated by and for RCEA. 1 See Section 4 “Energy Generation & Utility Services” at https://redwoodenergy.org/wp-content/uploads/sites/850/2024/12/RePower-Humboldt-CAPE-2019-Plan-Update.pdf 131
• Community acceptance: At times the community has been skeptical of proposals for new local clean energy projects. In 2019 RCEA completed negotiation of a contract for wind energy with the Terra-Gen project proposed near Rio Dell that would have satisfied over 60% of our customer load. However, the project was denied by the Humboldt County Board of Supervisors largely due to community opposition. More recently, offshore wind has raised concerns among some Tribal Governments, the local fishing industry, and others. A proposal for a local battery energy storage project has also resulted in community pushback.
• Development risk: several contracted local projects have failed and others have been delayed due to myriad issues including lack of contractor interest, interconnection cost overruns, weather, and landowner issues, among others.
• Transmission constraints: Humboldt has relatively small transmission capacity connecting it to the rest of the state’s grid, which means resources built here can rarely provide resource adequacy, since it is contingent on deliverability to the larger grid.
Resource adequacy (RA) refers to a plant’s ability to deliver reliable capacity when called upon by the grid operator. RA is a valuable component of power projects because load-serving entities like RCEA are required to purchase it. This means a major value stream that most power projects include is most often not available for local projects.
The potential of developing offshore wind could result in additional transmission buildout to Humboldt which may increase the ability to obtain RA, but whether, when, and how that is implemented is very uncertain.
• Cost: Where local resources have been offered, these have come at a considerable price premium compared with other offers. This is discussed further in the Financial Impact section below.
• Developer capacity: there are fewer developers building projects in Humboldt than other areas of the state, and often they are smaller, newer companies, which sometimes requires us to adjust our standards in terms of qualifications, experience and creditworthiness for potential counterparties.
• Humboldt as an isolated market: Developers, who are typically based outside Humboldt County, have shared with staff the challenges they face in building local projects, chiefly related to workforce. In some cases these companies are in agreements to use union labor and need to bring in skilled union workers from outside the area. This means additional costs and challenges in housing these workers for months at a time in a scarce housing market.
• Offshore wind delay: RCEA’s local procurement goal was set during a time that the offshore wind resource was expected to be built and operational by 2030. Due to the lengthy federal leasing and permitting process, which has been put on hold by the current administration, offshore wind is on a longer timeline.
Public input received by RCEA indicates mixed views on the importance of procuring locally. In its 2023 “Humboldt’s Electric Future” planning process, RCEA asked community participants to perform a resource allocation exercise. Collectively they distributed more than twice as many resources to local renewable development than any other need (financial reserves, customer programs, or offering lower rates). However, when asked to vote on five different hypothetical future power portfolios with information on cost provided, local renewables received less support. The portfolio that focused on rapid greenhouse gas reduction received nearly twice as 132
many votes as the more costly “maximize local” portfolio, which included some biomass power. 2 SUMMARY
Staff propose that we change our goal to be 100% renewable by 2030 without specifying location of the renewable resources, while still emphasizing local procurement to the extent technically feasible and economically prudent. What is considered economically prudent will be determined on a case-by-case basis depending on projects offered in RCEA’s solicitations, our current and forecasted financial reserves, pricing for equivalent, alternative products, and strategic value of particular projects to the Board at the time of procurement.
In May, staff brought this topic to the Community Advisory Committee for discussion. The following points are a summary of the discussion:
1. Based on the challenges, it makes sense to remove the local component of the procurement goal, but we should still be working toward 100% renewable energy by 2030, even if not local.
2. Challenges to procuring local are not going to be overcome by 2030, and may get worse, but we should still try to develop local projects even if not to 100%.
3. RCEA should review its strategic plan goals more often to evaluate whether they remain feasible as technologies, markets, and policy evolve.
4. Provide quantitative information supporting the claim that local projects are more expensive.
Staff propose to change the language in the RePower Humboldt Strategic Plan in accordance with the attached addendum as follows: “By 2030 RCEA’s annual power mix will consist of 100% net-zero-carbon-emission, renewable sources. RCEA will strive to develop local renewable energy resources and advocate for transmission capacity to deliver these resources to the rest of the state where they exceed local need.” ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA’s strategic plan emphasizes how energy development can contribute to the local economy. For example, in Section 1 “Regional Energy Planning & Coordination,” a stated goal is “Build the clean energy sector into a cornerstone of the local economy through a breadth of strategies that include innovation, research and development, local energy-related business development, and establishing Humboldt Bay as the primary west coast hub for the offshore wind energy industry.”
The suggested change maintains this recognition and RCEA would continue to strive for local projects and advocate for transmission enhancements that could make local projects more viable.
2 https://redwoodenergy.org/wp-content/uploads/sites/850/2025/01/Humboldts-Electric-Future-2023-Final-Report.pdf 133
Additionally the proposed change is consistent with strategy 4.1.1 which states “Maximize the Use of Local Renewable Energy to the Extent Technically and Economically Feasible and Prudent.” [emphasis added].
EQUITY IMPACTS
Electric affordability has recently become a major concern and is taken into account in all of RCEA’s key decision-making. As discussed with the Board in April, lower income households are hit especially hard by high electric costs. Modifying the local procurement goal in a way that is expected to reduce power procurement costs could benefit all RCEA’s ratepayers, which would benefit those in low-income circumstances proportionally more relative to their income.
FINANCIAL IMPACTS
Staff have observed that local projects usually cost more than equivalent non-local projects.
Based on a staff analysis of all offered and contracted resources from RCEA’s past solicitations, local solar projects cost about three times as much as non-local solar projects, and local battery storage projects cost about 70% more than non-local battery storage projects, on a weighted average basis.
In addition, it does not appear feasible to build local projects at the large magnitude needed to achieve the economies of scale seen in projects such as the 100 MW Sandrini solar and storage projects in Kern County contracted by RCEA at competitive prices. The average size of local generation projects offered to or contracted by RCEA (excluding the Terra-Gen wind project that never came to fruition) is 4 MW, while the average non-local project size is 64 MW.
As described previously, until additional transmission capacity is built to Humboldt, local projects cannot be relied on to deliver RA, which is one of three major value streams (alongside energy and renewable energy attributes) that RCEA considers in its economic valuation of projects.
Modifying the existing goal to allow long-term non-local procurement could thus allow RCEA to reduce overall procurement costs and would bring the strategic plan more in line with utility best practices and current economic reality.
RECOMMENDED ACTION
Adopt Resolution 2025-4 Adopting the Target of a 100% Renewable Electricity Mix by 2030 and Addendum 2025-A to the RePower Humboldt Comprehensive Action Plan for Energy, amending the local procurement goal in RCEA’s Strategic Plan.
ATTACHMENTS
Resolution 2025-4 Adopting the Target of a 100% Renewable Electricity Mix by 2030.
Addendum 2025-A to the RePower Humboldt Comprehensive Action Plan for Energy 134
RESOLUTION NO. 2025-4
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE REDWOOD COAST ENERGY AUTHORITY
ADOPTING THE TARGET OF A 100% RENEWABLE
ELECTRICITY MIX BY 2030
WHEREAS, in 2019 RCEA updated the RePower Humboldt Comprehensive Action Plan for Energy (“Strategic Plan”), which set the goal of generating 100% of RCEA’s electricity needs from local renewable resources by 2030; and
WHEREAS, achieving 100% local energy by 2030 is not feasible due to resource development terminations, delays, costs and other insurmountable challenges; and WHEREAS, RCEA is on track toward achieving 100% renewable energy on an annual basis by 2030; and
WHEREAS, time is of the essence to eliminate the use of fossil fuels to mitigate the impacts of climate change and to realize the local economic benefits of transitioning to renewable sources of energy.
NOW THEREFORE, BE IT RESOLVED that the Board of Directors of the Redwood Coast Energy Authority adopts the target of a 100% renewable electricity power generation mix for RCEA’s community choice energy program by 2030, regardless of facility location.
BE IT FURTHER RESOLVED that RCEA staff is directed to update the Strategic Plan language in accordance with Addendum 2025-A, attached, and to align RCEA’s procurement planning and activities with the revised goals set forth therein.
Adopted this 26th day of June, 2025.
ATTEST:
Scott Bauer, RCEA Board Chair Lori Taketa, Clerk of the Board Date: _________________________ Date: ________________________ 135
CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution No. 2025-4 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the 26th day of June, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Clerk of the Board, Redwood Coast Energy Authority
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RePower Humboldt
The Redwood Coast
Energy Authority’s
Comprehensive Action
Plan for Energy
Addendum 2025-A
Adopted June 26, 2025
ADDENDUM CORRECTED 6/24/25
4. Energy Generation
&Utility Services
RCEA will address Humboldt County’s supply-side energy needs through its existing Community Choice Energy (CCE) program and development of new programs and initiatives.
Goals: By 2025 100% of RCEA’s power mix will be from a combination of state-designated renewable energy sources—solar, wind, biomass, small hydroelectric, and geothermal— and state-designated net-zero-carbon-emission existing large hydroelectric facilities.
By 2030 Humboldt County will be a net exporter of renewable electricity and RCEA’s power mix will consist of 100% local, net-zero-carbon-emission renewable sources.
RCEA will strive to develop local renewable energy resources and advocate for transmission capacity to deliver these resources to the rest of the state where they exceed local need.*
Humboldt County can effectively respond to regional and local disruptions to energy supply and distribution systems through modernization of the local electric grid, the deployment of local distributed energy resources, and the development of community microgrids.
* NOTE: The language in blue was mistakenly omitted from the draft addendum published on 6/19/25.
Local Procurement Goal
Presentation to RCEA Board of Directors
June 26, 2025
Jocelyn Gwynn, Senior Power Resources Manager
“By 2030 Humboldt County will be a net exporter of
renewable electricity and RCEA’s power mix will
consist of 100% local, net-zero-carbon-emission
renewable sources.”
Strategic Local Procurement Goal
Progress to Date
~60%
contracted
Once all
resources
online, by
2030
22% Local
Once all
resources
online, by
2026
18% Biomass
4% Solar
Biomass
contract
expires 2031
Local Projects:
• Scotia Biomass Plant
• Redwood Coast Airport Microgrid
• Foster Clean Power A & B
• North Coast Highway Solar 1 & 2
• Shortlisted solar and storage projects
• RCEA has long-term contracts for non-local resources
• Several local projects have failed or been significantly delayed • Lack of available transmission capacity and resource adequacy • Few developers have shown interest in building here
• Local projects cost more and are smaller scale
Challenges to Procuring Local
• Local solar projects cost almost 3x more than non-local • Local energy storage projects cost ~70% more than non-local Other than the failed onshore wind project, no other new, local generation technologies have been offered to RCEA.
Cost of Local Procurement
Proposed
Revisions
STAFF REPORT
Agenda Item # 12.1
AGENDA DATE: June 26, 2025
TO: Board of Directors
FROM: Elizabeth Burks, Executive Director
SUBJECT: Executive Director’s Report
SUMMARY
Executive Director Elizabeth Burks will provide updates on topics as needed.
RECOMMENDED ACTION
None. (Information only.)
ATTACHMENT
None.
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Flycatcher Energy Storage
6 MW / 24 MWh
Hatchery Road Solar + Storage
4 MW + 4 MW / 16 MWh
Hatchery Road Solar + Storage
4 MW + 4 MW / 16 MWh
Local Storage RFO
Shortlisted Projects
Flycatcher Energy Storage
6 MW / 24 MWh
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intentionally
left blank.
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