Energy Commission, the California Natural Resources Agency, California State Transportation Agency, and Governor’s Office of Business and Economic Development (GO-Biz) to enable interconnection of such projects, and orders the preparation of a report on actions and progress as a result of this executive order within 90 days.
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 Tribal Energy Resilience and Sovereignty project’s $88 million in federal funding has been paused. The broad financial impacts are currently unknown. Staff work on federal activity monitoring is consistent with RCEA’s adopted budget.
STAFF RECOMMENDATION
Receive federal activity report.
ATTACHMENTS
RCEA-Relevant Presidential Actions
2025 Offshore Wind Policy Report
161
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162
RCEA-Relevant Presidential Actions
Date Action Summary Notes
8/28/25 Executive Order:
Further Exclusions
from the Federal
Labor-Management
Relations Program
Increases multiple agencies and
subagencies national security
classifications, effectively
excluding them from Federal
Labor Management Relations
Program which allows federal
labor union the ability to
participate in collective
bargaining agreements. Affected
agencies and subagencies
include units in the Bureau of
Reclamations responsible for
hydropower facilities, the
International Trade
Administration, the National
Weather Service, NASA, and the
National Environmental
Satellite, Data, and Information
Service.
Labor dynamics for
hydropower and
weather forecasting
may be affected.
8/28/2025 Presidential
Memorandum:
Use of
Appropriated
Funds for Illegal
Lobbying and
Partisan Political
Activity by Federal
Grantees
Directs the Attorney General to
investigate Federal grant funds
involved in supporting lobbying
activities. The Attorney General
will draft a report within 180
days of the memorandum on the
progress of investigations.
This may result in
increased scrutiny
in federal
grantmaking.
9/4/2025 Executive Order:
Implementing the
United States-Japan Agreement
Applies a baseline 15% tariff on
Japanese imports along with
separate sector specific
treatment for automobiles, auto
parts, natural resources not
naturally available or produced
Costs of
combustion engine
and electric
vehicles and their
components
163
in the US, and other non-applicable sectors.
originating from
Japan may increase.
9/5/2025 Executive Order:
Modifying the
Scope of
Reciprocal Tariffs
and Establishing
Procedures for
Implementing
Trade and Security
Agreements
Updates which imports are
subject to reciprocal tariffs and
sets procedures for adjusting
those tariffs when countries
enter trade and security
agreements with the U.S. It
allows for tariff reductions—
including to zero—for certain
goods if national interest and
security conditions are met.
Costs of imported
components for
renewable
infrastructure may
increase or
decrease.
164
2025 Offshore Wind Policy Report
Date Summary
1/20/25
7/30/25
The Presidential Memorandum “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects” was signed. The PM prevents any wind leasing in the outer continental shelf and directs identification of any "legal bases" for removal of existing wind leases.
In response to the Presidential Memorandum , the Department of the Interior’s (DOI) Bureau of Ocean Energy Management (BOEM) rescinded all designated Wind Energy Areas on the US Outer Continental Shelf, which ends the federal practice of designating areas for speculative wind development and de-designates previously identified unleased federal waters for wind development.
4/16/25
5/19/25
BOEM ordered a stop-work order on Empire Wind, a fully federally permitted offshore wind project off the coast of Long Island, New York.
New York Governor Hochul made a deal with the administration to build a gas pipeline in New York in return for a reversal of the order. The order was lifted.
5/5/25
8/15/25
California and 17 states filed a suit over the legality of the Presidential Memorandum “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects.”
Community Choice Aggregators (CCAs) RCEA, the San Francisco Public Utilities Commission (which houses Clean Power San Franscisco), and Marin Clean Energy, alongside a coalition made up of Brightline Defense, 350 Humboldt, California Environmental Voters, the Central Coast Alliance United for a Sustainable Economy, Climate First: Replacing Oil & Gas, International Brotherhood of Electrical Workers Local 639, and Offshore Wind California, filed an Amicus Brief in support of the lawsuit. The Amicus Brief details public information related to offshore wind in California, referencing RCEA and other CCA inclusion of offshore wind in Integrated Resource Planning and RCEA participation in the CADEMO project, an offshore wind project in California state waters.
7/4/25 The President signed budget reconciliation House Resolution 1 (HR 1), which includes a variety of energy provisions. Those related to offshore wind include: changes to and reductions in clean energy tax credit eligibility, federal spending on renewable and clean energy, and changes in federal 165
energy policy. HR1 also rescinded unobligated Department of Energy (DOE) interregional offshore wind transmission planning.
7/15/25 In response to Executive Orders and Presidential Memoranda “Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources,” “Declaring a National Energy Emergency,” and “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects,” the DOI filed Departmental Review Procedures for Decisions, Actions, Consultations, and Other Undertakings Related to Wind and Solar Energy Facilities, which requires additional review of various wind related actions.
8/1/25 In response to EOs “Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources,” and “Declaring a National Energy Emergency,”U.S Secretary of the Interior Doug Burgum signed a Secretary’s Order that states the DOI will consider a proposed energy project’s capacity density per acre when assessing the project’s potential energy benefits to the nation and impacts to the environment and wildlife. The order states that “(b)ased on common sense, arithmetic, and physics, wind and solar projects are highly inefficient uses of Federal lands.” 8/22/25
9/4/25
BOEM issued a stop-work order to the 80% complete Revolution Wind project off the coast of Connecticut and Rhode Island.
The states’ attorneys general and the developers Orsted and Skyborn Renewables have filed lawsuits in response.
9/2/25
9/17/25
The US Department of Transportation (USDOT) withdrew $426 Million dollars in funding, from the Nationally Significant Freight and Highway Projects (INFRA) program which was dedicated to Humboldt Bay Heavy Lift Marine Terminal.
To keep some momentum for offshore wind in California, the California State Budget included $2.5 Million dedicated partially to offshore wind transmission upgrade planning, $4 Million dedicated to the CADEMO project, and $225 Million dedicated to the Offshore Wind Waterfront Facility Improvement Program. The California Energy Commission will disburse this funding.
9/12/25 BOEM filed a request to remand its approval of the Maryland Offshore Wind Project construction plans. This would effectively stall the project for an indefinite amount of time.
166
Federal Activity
September 2025
Agenda
• Summary of Federal Activity to Date
• Overview of Actions Related to Offshore Wind
Development
• Staff’s Approach to Federal Activity Monitoring
and Advocacy
Summary of Federal Activity to Date
• Executive Branch:
• Increased use of Executive Orders
• Tariffs
• Changes to federal grant making
• Environmental policy changes
• Consideration for AI in load forecasts
• Legislative Branch:
• Changes to tax credits
• Judicial Branch:
• Litigation related to the previous policy changes
• Changes to EV reporting rules
Wind Energy Impacts
• Presidential Memorandum “Temporary
Withdrawal of All Areas on the Outer Continental
Shelf from Offshore Wind Leasing and Review of
the Federal Government’s Leasing and
Permitting Practices for Wind Projects”
• BOEM rescinded new offshore wind leasing and
designation
• Stop-work orders filed for multiple offshore wind
facilities in various phases of permitting and
construction
• HR1 resulted in tax credit loss for on- and
offshore wind
• Department of Interior ordered additional
permitting scrutiny
• USDOT withdrew funding to Humboldt Bay
Staff’s Approach to Federal Activity
Monitoring and Advocacy
• Federal Activity Board Staff Report
• CalCCA Federal Discussion Group
• Meetings with Federal Representatives
Software subscriptions, newsletters, and other tools
Tracking
LEAN membership
Participation in a Federal Lobby Day
Group Engagement
Increased staffing
Contracting a Federal Lobbyist
Individual CCA Engagement
A Survey of Strategies Other CCAs Employ
THANK YOU
Faith Carlson
Regulatory and Legislative Policy Manager
[email protected]
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intentionally left
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STAFF REPORT
Agenda Item # 10.2
AGENDA DATE: September 25, 2025
TO: Board of Directors
PREPARED BY:
Richard Engel, Director of Power Resources
Forrest Novotny, Power Resources Specialist
SUBJECT: Annual Report on Humboldt Sawmill Company Biomass Procurement
BACKGROUND
When authorizing extension of RCEA’s power purchase agreement (PPA) for biomass energy with Humboldt Sawmill Company (HSC) in April 2021, RCEA’s Board directed staff to "periodically review the contract…assessing current alternate biomass uses and other environmental considerations." To create a framework for the requested periodic review, staff negotiated a memorandum of understanding (MOU) between RCEA and HSC, which the RCEA Board adopted in September 2021. One provision of the MOU is as follows:
Annually on or around May 1 and continuing until the termination of the PPA, representatives of the Parties will meet to review the terms of the PPA and to discuss the continued viability of biomass power production by the HSC facility relative to other potential or actual uses of the biomass feedstock by HSC or other entities.
The MOU also calls for HSC to provide data on plant performance on request; types, quantities, and sources of biomass feedstock; and plant emissions. HSC have generally been responsive to specific data requested by RCEA staff under the MOU. Data provided this year in response to a request from RCEA staff included:
• Monthly amounts of biomass feedstock, broken down by geographic origin (inside or outside Humboldt County) and supplier (sourced internally from Humboldt Redwood Company or Mendocino Redwood Company or externally)
• Monthly use of biomass and auxiliary diesel fuel, electric output to RCEA and for onsite use, and thermal energy recovered for industrial use
• Annual total emissions of greenhouse gases (biogenic and non-biogenic) and a number of criteria pollutants
• Notices of violation from North Coast Unified Air Quality Management District and HSC responses
• Boiler test data (opacity, emissions, oxygen)
• Cogen monthly monitoring reports
• Opacity audit reports
167
• Plant throughputs as reported to North Coast Unified Air Quality Management District • Title V boiler compliance test report
• An AB 2588 Toxic Hot Spots Program – 2022 Reporting Timeline & Status Summary As a reminder, the MOU’s purpose is not to terminate or otherwise override the terms of the PPA. As the MOU states: “This MOU does not and is not intended to supersede, replace, or subordinate any provisions, representations, covenants, rights, or obligations in the PPA.” While the MOU does not allow for early termination of the biomass PPA, it could help form a pathway for alternative use of the biomass plant’s feedstock material once the current PPA’s term expires.
The fourth of the annual meetings between RCEA and HSC staff per the MOU took place at HSC’s Scotia headquarters on May 9, 2025. RCEA staff reviewed the materials provided by HSC and shared them with members of the Biomass Technical Advisory Group (BTAG), then convened a meeting of the BTAG on June 3, 2025, to review and comment on the materials.
The Community Advisory Committee then considered the HSC reporting materials at their September 9, 2025, meeting. The materials are available for review on the Energy Sources page of RCEA’s website at https://redwoodenergy.org/about/energy-sources/ under the “Local Biomass Energy” subheading. In addition to the reporting materials provided by HSC, a petition to the Environmental Protection Agency (EPA) submitted by the Environmental Protection Information Center and Humboldt Coalition for Clean Energy objecting to a proposed modification of HSC’s Title V air permit that was distributed to BTAG prior to the June 3 meeting is included.
SUMMARY
2025 HSC Data Review by Biomass Technical Advisory Group Key discussion points in the BTAG review of HSC’s reporting materials included:
• Claims that the plant is increasing emissions year over year relative to energy production. The data provided by HSC did not show emissions intensity (expressed in MTCO2e per MWh) to be increasing with time.
• The amount of electricity and recovered heat produced per unit of fuel appears low compared to industry standards. The group discussed how this might be due to higher moisture levels in local fuels and asked whether measures could be taken to address this, such as keeping more of the fuel covered in the wet season. Material is currently kept inside fuel house for about two weeks before use. A portion of the thermal energy from the plant was once used to heat homes in Scotia, but this steam distribution system was decommissioned years ago.
• The data show less diesel fuel use in recent years (post-2020 vs earlier years). HSC staff said updated controls and new multi-clones for emissions reduction have helped avoid plant shutdowns. Diesel is only used for restarting the plant following shutdowns. • What role if any RCEA should play in holding HSC to its air quality regulatory requirements. Some in the discussion believe this should be left to the Air Quality District and the state Air Resources Board; others pointed out that RCEA’s contract allows for termination in the event HSC is not compliant with regulations and this should be used to 168
hold HSC accountable. Air Quality District staff noted that HSC has cooperated with the Air District and taken needed corrective action in response to notices of violation. • On the topic of RCEA’s air quality monitoring in the vicinity of the HSC plant, there was support for continuing to monitor and share data, but some participants pointed out that the most harmful particulates are below the size detection threshold of the standard air quality monitoring devices being used. There was a request to provide a comparison of the data from the plant-adjacent monitors with monitors elsewhere in the county, and to look for correlations between ambient air quality near the plant and emissions as measured at the plant’s stack monitors. Staff are working to complete this analysis and will provide it to BTAG’s members once it is available.
In their subsequent review and discussion, individual members of the Community Advisory Committee offered the following comments and requests:
• CAC member Colin Fiske noted he would prefer in future iterations of this reporting cycle that the CAC have an opportunity to make recommendations to the Board rather than this being presented as an information-only item.
• Committee member Fiske expressed concern about the relative inefficiency of the plant as compared with other biomass plants. Staff responded that specific reasons for this are not fully known but this may be due both to the older vintage of the plant and the high moisture content of fuels used locally compared with plants in drier climates. • Committee member Fiske also noted that the ambient air quality monitoring instruments that have been deployed by RCEA and others in the vicinity of the plant do not detect the ultrafine particulates known to be most damaging to health. • Committee member Benjamin Fordham asked for more information about the Air District’s involvement in the MOU reporting process and how the Air District interacts with RCEA regarding HSC air quality violations. Staff noted that Air District senior staff attend the BTAG meetings, and RCEA defers to the Air District on air quality and related health impact matters involving the HSC plant.
• Committee member Richard Johnson requested an update on HSC’s investigation of alternative uses of its biomass feedstock.
• Committee member Dennis Leonardi stated that the MOU reporting process is making a difference, bringing stakeholders together for constructive discussion, getting the attention of both HSC and the Air District, and leading to greater accountability from them both.
HSC’s Role in RCEA’s Power Portfolio
Baseload resources such as biomass play an important role in helping RCEA achieve its goal of 100% renewable energy by 2030. Plants that operate around the clock can fill gaps during times of day and seasons when clean but intermittent resources such as wind and solar are not sufficient to meet RCEA’s load and State reliability mandates.
Affordability is also a concern in biomass power procurement. Prices of energy, resource adequacy, and green energy attributes have been volatile in recent years. Each month staff compare the amount paid under the HSC contract with what these resources would have cost 169
on the open market. Generally, the HSC contract financially outperforms the market by a substantial margin.
At the BTAG meeting, HSC staff gave a brief update on their work on alternative biomass energy conversion. They are continuing to plan for a two-phase project at their Ukiah facility that would combine a small biomass cogeneration plant with a co-located biomass gasification facility capable of producing marketable hydrogen. A final go/no-go decision on the project is pending further economic analysis.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
RCEA’s consultations with HSC in implementing the terms of the MOU are in keeping with the following strategies in the RePower Humboldt plan:
• 4.1.11.3 Investigate the Impacts of Biomass Emissions • 4.1.11.6 Plan for a Long-Term Transition Away from Direct Combustion of Forest Derived Biomass and Toward Lower-Impact Uses of this Material Review of HSC’s reporting by BTAG is in keeping with the RePower Humboldt plan’s direction:
• 4.1.11.4 Establish a Biomass Technical Advisory Committee
EQUITY IMPACTS
Not applicable.
FINANCIAL IMPACT
None – information only.
STAFF RECOMMENDATION
This is an information only item.
ATTACHMENTS
Humboldt Sawmill Company Memorandum of Understanding
170
DocuSign Envelope ID: 936EE7EF-A4A8-487E-A646-D05D9E726F33
MEMORANDUM OF UNDERSTANDING BETWEEN
REDWOOD COAST ENERGY AUTHORITY AND
HUMBOLDT SAWMILL COMPANY REGARDING
ALTERNATIVE USES OF MATERIALS USED FOR
BIOMASS POWER GENERATION
THIS is a MEMORANDUM OF UNDERSTANDING ("MOU") setting forth the understanding between Redwood Coast Energy Authority ("RCEA") and Humboldt Sawmill Company ("HSC"), regarding the periodic assessment of alternate biomass feedstock uses and other environmental considerations during the term of an existing power purchase agreement between RCEA and HSC.
Background
1. RCEA and HSC (the "Parties") have been parties to power purchase agreements since 2017, under which HSC sells renewable biomass power to supply RCEA's community choice aggregation program for Humboldt County electricity users. The current power purchase agreement is dated April 2 7, 2017, and was amended on March 1, 2019, May 1, 2021, and June 1, 2021 ("PPA").
2. Renewable biomass power provides a needed and financially viable local means of disposing of residual material produced by Humboldt County's forest products industry.
3. Members of the RCEA Community Advisory Committee (CAC) and members of the public have asked that RCEA consider the environmental and public health impacts of local generation of biomass power and explore alternative, lower impact uses of the feedstock material currently used by the plant.
4. The RCEA Board of Directors (the Board) at its April 22, 2021 meeting approved an amendment to its PP A with HSC, extending its term until May 31, 2031. In approving that extension of the PP A term, the RCEA Board directed staff to "periodically review the contract with Humboldt Sawmill Company, assessing current alternate biomass uses and other environmental considerations."
5. RCEA staff discussed with the CAC at their May 11, 2021 meeting the creation of a memorandum of understanding (MOU) between RCEA and HSC to implement the RCEA Board's direction to staff mentioned above. CAC members proposed that such an MOU should include a commitment from HSC to share feedstock supply and plant operation data helpful in assessing alternative biomass uses, and that the assessment consider both financial and non-financial benefits of such alternative uses, including avoided carbon emissions.
Mutual Understandings
1. Annually on or around May 1 and continuing until the termination of the PP A, representatives of the Parties will meet to review the terms of the PP A and to discuss the continued viability of biomass power production by the HSC facility relative to other 1 171
DocuSign Envelope ID: 936EE7EF-A4A8-487E-A646-D05D9E726F33 potential or actual uses of the biomass feedstock by HSC or other entities. Such uses to be considered might include but not be limited to those recently analyzed on RCEA's behalf by a consultant and by a team of Humboldt State University engineering students1 :
a. Soil amendments, including compost, mulch, and biochar; b. Energy products, including gasification, torrefied wood, and wood pellets; c. Chemical products, including ethanol, nanocellulose, and bioplastics; and d. Other products, including construction materials, pulp for tissue manufacture, and wastewater treatment media
2. HSC will make available to RCEA upon request current or recent data on the types, quantities, and quality of feedstock material used by the plant, to the extent such data is tracked by HSC; the facility's heat rate expressed in million British Thermal Units of biomass fuel consumed per megawatt-hour of electric power generated; and the associated plant emissions reported to regulatory authorities, to the extent disclosure of such data does not directly place HSC at a competitive disadvantage in its forest products or power sales business activities, or cause HSC to violate confidentiality agreements it may have with its various business partners. Data should be made available showing monthly quantities, and disaggregated to show how material is sourced from within or outside Humboldt County, and whether it is sourced internally from the Humboldt Redwood Company and Mendocino Redwood Company family of companies, or externally from other suppliers.
3. RCEA and HSC will observe the confidentiality provisions (section 10.6) in the PPA with regard to any data deemed confidential by either party that is exchanged in fulfillment of this MOU.
4. HSC has engaged a consultant to analyze alternative uses of the biomass residuals produced by the company. This consultant is examining pathways to commercialization for alternative technologies and determining their financial viability. HSC will make the results of the consultant study available to RCEA when it is completed.
5. This MOU does not and is not intended to supersede, replace, or subordinate any provisions, representations, covenants, rights, or obligations in the PP A. 1 See bttps://redwoodenergy,grg/wp-content/uploads/2020/07 /Biomass-Humboldt-RCEA-1 19-FINAL-l.pdf and https://redwoodenergy.org/power-resources/ (expand "Read more about Biomass" section and scroll to "Humboldt State University Capstone Class on Alternative Biomass Uses"). 2 172
DocuSign Envelope ID: 936EE7EF-A4A8-487E-A646-D05D9E726F33 Signatories to the Memorandum of Understanding
Humboldt Sawmill Company Redwood Coast Energy Authority Name: Jim Pelkey Name: Matthew Marshall
■ DocuSigned by:
Signature: ~
Date: 9/30/2021 Date: 10/1/2021 ------------
3 173
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174
Annual Report on Biomass Power
Procurement from
Humboldt Sawmill Company
for RCEA Board of Directors
September 25, 2025
RCEA’s memorandum of understanding with
Humboldt Sawmill Company
• Adopted in 2021, in response to Board request when approving HSC contract extension to meet State requirement for long-term renewable energy contracting • Calls for annual report and meeting to discuss contractual relationship and alternative uses of HSC’s biomass feedstock, and to review data on:
• Energy production
• Feedstock use
• Emissions
HSC’s Annual Reporting Materials
• Biomass sourcing info, broken down by
geographic origin and supplier
• Monthly use of biomass and auxiliary diesel
fuel, electric output to RCEA and for onsite use,
and thermal energy recovered for industrial use
• Annual total emissions of greenhouse gases
(biogenic and non-biogenic) and several criteria
pollutants
• Notices of violation from North Coast Unified
Air Quality Management District and HSC
responses
• Boiler test data (opacity, emissions, oxygen)
• Cogen monthly monitoring reports
• Opacity audit reports
• Plant throughputs as reported to North Coast
Unified Air Quality Management District
• Title V boiler compliance test report
• An AB 2588 Toxic Hot Spots Program
Reporting Timeline & Status Summary
By request of a BTAG member, HSC provided the group with a petition to the Environmental Protection Agency (EPA) submitted by the Environmental Protection Information Center and Humboldt Coalition for Clean Energy objecting to a proposed modification of HSC’s Title V air permit.
Review of Humboldt Sawmill Company’s
Annual Reporting Materials
• Data provided by HSC – reviewed by Biomass Technical Advisory Group (BTAG) and Community Advisory Committee
• Visualizations and summaries by RCEA staff (thanks to Power Resources Specialist Forrest Novotny)
• Note: the following do not comprise analysis of the data. The charts presented are for summary and ease of viewing. Unit conversions were performed by RCEA as needed.
0.00 50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MTCO2e
Axis Title
Biomass vs Non-Biomass GHG 2011-2024 (Annual Totals)
Biomass CO2 Non-Biomass CO2
Key points from BTAG review of HSC report
• Concern expressed: Emissions are increasing relative to energy production.
Data provided by HSC did not support this claim.
• Data show relatively low electricity and heat production efficiency. Possibly due to higher biomass fuel moisture content in coastal climate than in other biomass plant locations. • Use of diesel fuel has declined in recent years. HSC says plant upgrades have reduced plant re-starts calling for diesel.
• Opinions differ on what role if any RCEA should play in holding HSC to air quality regulations vs leaving this between HSC and Air District.
• Discussion of RCEA-installed ambient air quality monitoring in plant vicinity:
• support for continuing this
• concern that smallest, most harmful particulates are not detected • recommendations to correlate emissions with those elsewhere in county and with data from HSC’s in-stack monitoring.
Key points from CAC review of HSC report
• Desire to make recommendations to Board in future cycles rather than being presented an informational only review
• Shared BTAG’s concerns about plant’s apparent inefficiency • Echoed BTAG concerns that ambient air quality sensors near plant are not measuring smallest, most harmful particulates
• Questions about degree of Air District engagement. AQMD staff participate in BTAG. • Interest in HSC’s investigation of alternative biomass feedstock uses • Noted the differences the MOU reporting process is making: getting both HSC and the Air District to be more accountable to the public about HSC’s emissions HSC’s role in RCEA’s power portfolio
• Baseload (round-the-clock) resources such as biomass are valuable to balance intermittent solar and wind resources in building a 100% renewable portfolio. • Geothermal power is similarly valuable, but new-build geothermal is expensive and in limited supply.
• HSC contract provides energy, renewable certificates, and resource adequacy - all needed by RCEA.
• Affordability: combined value of above resources is reviewed monthly. Most months value exceeds the contract price RCEA pays HSC. Contract is generally “in the money.” Update on HSC and
alternative biomass uses
• HSC’s sister companies Humboldt Redwood Company
and Mendocino Redwood Company continue to plan for
two-phase project at MRC’s Ukiah plant:
• Small biomass cogeneration plant
• Co-located gasification plant using heat from cogen
plant to make marketable hydrogen gas from biomass
• Company’s final decision whether to proceed is still
pending.
STAFF REPORT
Agenda Item # 11.1
AGENDA DATE: September 25, 2025
TO: Board of Directors
PREPARED BY: Faith Carlson, Regulatory and Legislative Policy Manager SUBJECT: Study Session on Data Center Local, State and National Impacts
BACKGROUND
Data centers and their environmental impacts have been making headlines nationwide, with a variety of predictions for an increase in data center development, ranging from a 50% to a 165% increase1
.
Accurate forecasting of data centers has environmental, compliance, procurement, and reliability impacts. RCEA staff have been in contact with the California Energy Commission, California Public Utilities Commission, and Pacific Gas and Electric company regarding data center forecasting in and beyond our service territory working towards this goal.
RCEA staff prepared today’s study session to help the Board and community better understand how data centers will affect the nation, the state, and Humboldt County.
SUMMARY
Today’s study session will cover:
• What is a data center?
• Data centers and their national grid impacts
• Data centers in California
• Data centers in Humboldt County
• Impacts of data centers
• Beneficial uses of Artificial Intelligence
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Today’s study session aligns with the following RCEA mission strategies:
• 1.1.1 Attract Energy-related Business. Collaborate with local economic development entities to attract technology developers, manufacturers, and energy service providers to locate operations in the County when appropriate.
• 1.4.8 Develop Programs that Foster Social Equity.
• 1.5.2 Hold Regional Energy Forums—Serve as a forum for addressing countywide energy issues.
• 2.2.1 Maximize the Efficiency of Buildings.
• 2.2.6 Promote Smart Technologies and Smart Controls
1 https://www.utilitydive.com/news/utilities-water-electricity-ai-data-center/756804/ 175
• 2.3.3 Enable Automated Demand Response.
• 4.2.4 Provide Outstanding Customer Service to RCEA Customers. • 4.4.2 Support Upgrade of the Electricity Transmission and Distribution System
EQUITY IMPACTS
Rate design for data centers aims to address equity concerns.
FINANCIAL IMPACT
Staff preparation for and participation in today’s study session fall within budgeted staff costs.
STAFF RECOMMENDATION
This is an informational learning session. Staff are not recommending any specific Board action at this meeting. Any request for action resulting from this study session will be set by the Board for a future agenda or referred to staff.
ATTACHMENTS
Staff will present slides and information at the meeting. These will be available beginning September 26, 2025, at https://redwoodenergy.org/about/governance/public-meetings/. 176
Study Session on Data
Center Local, State and
National Impacts
September 2025
Agenda
What is a Data Center?
National Grid Impacts of Data Centers
Data Centers in California
Data Centers in PG&E Territory
Data Centers in Humboldt County
Reducing Impacts of Data Centers
Artificial Intelligence in the Energy Sector
What is a Data
Center?
• Facility of 30-50 MW
that houses computer
systems.
• Data centers are driving
increased interest in
nuclear and gas
development.
• Cooling systems drive
power use.
National Grid
Impacts of
Data Centers
• 50 GW of nationwide data
center load growth predicted
by 2030.
• Grid growth must match pace
of AI innovation to avoid
reliability risks.
• Loss of load forecasts increase
from 8.1 hours a year to 10
days a year.
Data Centers in California
• As California plans for data centers, there is a risk that predicted data centers will not materialize.
• Data centers are sophisticated customers and “shop around” for the best location to connect to the grid.
• It is important we assign data center load forecasts to the correct approximate locations in the state because load forecasts drive:
• Individual Load Serving Entity compliance requirements • Transmission and distribution planning
• Rate design
• The California Energy Commission is exploring data center scenario planning.
Data Centers in PG&E Territory
• PG&E expects 5.5 GW of data
centers by 2035
• Large load customers may
require new transmission
infrastructure
• PG&E submitted an application
to the CPUC for a new Rule 30
tariff to collect the marginal
transmission cost associated with
large load customers
Data Centers in Humboldt County
• RCEA, PG&E, and the CEC are not aware of any forecasted large data centers in Humboldt County at this time.
• Information related to load forecasting comes from:
• PG&E
• Local Agencies
• California Energy Commission
• Governor’s Office of Business and Economic Development • RCEA rates:
• Per Board-approved threshold for customized Non-Standard Rate negotiations, extra large loads are defined as 7 million kWh/year.
• Staff is exploring the development of an Economic
Development Rate.
Reducing Impacts of Data Centers
• A single AI search uses:
• .24 - .3 watt-hours
• .03 grams of carbon dioxide
• 5 drops of water
• Data center load modification:
• Shift use to off peak times
• On site generation
Artificial Intelligence in the Energy Sector
• Energy Efficiency and Demand Response
• Grid Planning
• Grid Monitoring
• Generator Outage Management
• Resource Planning
THANK YOU
Faith Carlson
Regulatory and Legislative Policy Manager
[email protected]
STAFF REPORT
Agenda Item # 12.1
AGENDA DATE: September 25, 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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