Board of Directors Regular Meeting Agenda
Wharfinger Building, Bay Room (downstairs)
1 Marina Way, Eureka, CA 95501
Thursday, October 23 2025
3:30 PM
Meeting Information
Meeting Reports and Comments
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 redwoodenergy.org.
Speakers wishing to distribute materials to the Board at the meeting must provide 13 copies to the Board Clerk.
How to Participate
This is a hybrid in-person and virtual meeting. As a courtesy, the public may participate remotely through the Zoom platform. RCEA cannot guarantee uninterrupted teleconference access. When technical difficulties arise, the meeting will continue unless otherwise required by law, such as when a Board member attends the meeting remotely pursuant to certain Brown Act provisions. The only way to guarantee that the Board receives your comment is to attend the meeting in person or submit your comment in writing before the meeting.
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.
Accessibility
Need help with accessibility? 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. 1 10/23/25
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Open Session (Call to Order)
1. Roll Call | Remote Director Participation
1.1. Approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described.
2. Reports from Member Entities
3. Oral & Written Communications
This time is provided for people to address the Board or submit written communications on matters not on the agenda. At the conclusion of all oral communications, the Board may respond to statements. Any request that requires Board action will be set by the Board for a future agenda or referred to staff.
4. Consent Calendar
All matters in the Consent Calendar section are considered routine by the Board and are enacted in one motion. There is no separate discussion of any of these items; if discussion is required, that item is removed from the Consent Calendar and considered separately. At the end of the reading of the Consent Calendar, Board members or members of the public can request that an item be removed for separate discussion.
4.1. Approve Minutes of September 25, 2025.
4.2. Accept Disbursement Report for August 2025, and Financial Reports for This Fiscal Year Through August 2025.
4.3. Receive Federal Activity Report.
4.4. Receive Regulatory and Legislative Platform Engagement Report.
5. Items Removed from Consent Calendar
Items removed from the Consent Calendar section will be heard under this section.
Community Choice Energy (CCE) Business (None.)
6. Old Business
6.1. CADEMO Central California Offshore Wind Project Loan Term Modifications Authorize the ad hoc Board CADEMO Loan Subcommittee to approve revised terms of the Loan Agreement with the CADEMO Corporation (originally executed on July 22, 2025), terms which must continue to ensure to the maximum extent practicable, refundability and security of RCEA funds, and may include revisions to the vehicle for transfer and deposit of funds, duration of loan agreement, and other minor changes that do not impact the refundability or security of the loan.
Authorize the Executive Director to execute the final, revised, agreement with the CADEMO Corporation.*
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*Note: This staff report was not available at agenda publication time and will be made available by 5 p.m. on Tuesday, October 21 at www.RedwoodEnergy.org and at RCEA offices, 633 Third Street, Eureka, CA, 95501.
7. New Business
7.1. Hatchery Road Solar and Storage Power Purchase Agreement Approve Resolution 2025-6 Approving the Form of and Authorizing Execution of the Power Purchase Agreement with RPCA Solar 5 LLC.
8. Staff Reports
8.1. Executive Director’s Report
9. Future Agenda Items
Any request that requires Board action will be set by the Board for a future agenda or referred to staff.
10. Closed Session
10.1. Conference with Legal Counsel - Pending Litigation Pursuant to Government Code Section 54956.9, Electric Rule 30 (CPUC A.24-11-007).
10.2. Real Property Negotiations Pursuant to Government Code § 54956.8 in re: APN 001-135-007; RCEA negotiator: Executive Director; Owner’s negotiating party: Wells Commercial; Under negotiation: price and terms.
10.3. Public Employee Performance Evaluation, pursuant to Government Code § 54957: Executive Director.
11. Reconvene to Open Session
12. Closed Session Report
13. Adjournment
Next Regular Meeting
Monday, November 24, 2025 | 3:30 PM
Wharfinger Building Bay Room (downstairs), 1 Marina Way, Eureka, CA 95501 Online and phone participation is available via Zoom.
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STAFF REPORT
Agenda Item # 1.1
AGENDA DATE: October 23, 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 5
description, protecting the Director’s (or Director’s family member’s) medical privacy, needs to be provided in both cases.
The remotely participating Board Director needs to publicly disclose at the meeting before any action (vote) is taken, whether anyone 18 years of age or older is present in the room at the remote location with the Director, and the general nature of the individual’s relationship with the Director.
If the Board Director anticipates needing to participate remotely for more than 2 meetings per year, staff recommends arranging for a publicly and ADA accessible space with visual and audio meeting capabilities from which to participate.
Staff asks to be notified one-week in advance, if possible, of remote meeting attendance so the Director’s publicly and ADA accessible remote meeting address can be published in the agenda, if required per Brown Act open meeting laws.
Current Remote Participation Requests
As of the writing of this staff report, 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. 6 Board of Directors Draft Meeting Minutes
Wharfinger Building, Great Room (upstairs)
1 Marina Way, Eureka, CA 95501
Thursday, September 25 2025
3:30 PM
Attendance
Present
Natalie Arroyo Scott Bauer, Chair Carlos Diaz
Michael Gerace Skip Jorgensen Heidi Moore-Guynup, Alt. Dir.
Elise Scafani Sarah Schaefer Jack Tuttle
Tom Wheeler, Alt. Dir. Frank Wilson
Absent
Jason Ramos Sheri Woo, Vice Chair
Staff and Others Present
Name Title
Lori Biondini Business Planning & Finance Director
Elizabeth Burks Executive Director
Faith Carlson Regulatory & Legislative Policy Manager
Nancy Diamond RCEA Legal Counsel
Jodi Dobson Baker Tilly US, LLP, Principal, Energy & Utilities Richard Engel Power Resources Director
Jocelyn Gwynn Senior Power Resources Manager
Lori Taketa Board Clerk
Ryan Theiler Baker Tilly US, LLP, Senior Manager, Energy & Utilities Division Eileen Verbeck Deputy Executive Director
Note: Draft minutes were corrected
by staff prior to the Board meeting.
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Open Session
Chair Bauer called a meeting of the Board of Directors of the Redwood Coast Energy Authority to order at the above location and date at 3:33 p.m. Notice of this meeting was posted on September 19, 2025.
Oral & Written Communications
Member of the public Jan Kraepelian expressed support for local wind power development with no construction activity on local Tribe sacred days. Mr. Kraepelian also supports rail development, stating that it produces lower emissions than other transportation modes. Chair Bauer closed the public comment period.
Consent Calendar
4.1. Approve Minutes of August 28, 2025, Board Meeting.
4.2. Accept Disbursements Report for July 2025, and Financial Reports for This Fiscal Year Through July 2025.
4.3. Hold Regular RCEA Board Meetings Beginning October 23, 2025, at Wharfinger Building Downstairs Bay Room, 1 Marina Way, Eureka, at 3:30 p.m.
4.4. Award Software Development and Support Services Agreement to Frontier Energy to Perform Database Development and Implementation Services for the Northern Rural Energy Network for a Not-to-Exceed Value of $855,500 and Authorize the Executive Director to Execute All Applicable Documents.
No items were removed from the Consent Calendar.
M/S: Arroyo, Schaefer: Approve Consent Calendar Items.
The motion passed with a unanimous roll call vote. Ayes: Arroyo, Bauer, Diaz, Gerace, Jorgensen, Moore-Guynup, Scafani, Schaefer, Tuttle, Wheeler, Wilson. Noes: None. Absent:
None. Abstain: None.
Old Business
6.1. Financial Audit for Fiscal Years Ending June 30, 2025 & 2024 Business Planning and Finance Director Biondini announced that, with the completion of the 2024 and 2025 fiscal years’ audits, RCEA is current on audits. Baker Tilly Principal Jodi Dobson explained the audit process, Board responsibilities, audit findings and processes put in place to address them. RCEA received a clean audit opinion, the highest level of assurance that the agency’s financial statements are free of material misstatement. There was no public comment on this item.
M/S: Schaefer, Jorgensen: Accept and Approve Redwood Coast Energy Authority Financial Statements June 30, 2025, and 2024, and Associated Independent Auditors’ Report by Baker Tilly US, LLP.
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The motion passed with a unanimous roll call vote: Arroyo, Bauer, Diaz, Gerace, Jorgensen, Moore-Guynup, Scafani, Schaefer, Tuttle, Wheeler, Wilson. Noes: None. Absent: None.
Abstain: None.
Community Choice Energy (CCE) Business
Chair Bauer confirmed that a CCE quorum was present.
New CCE Business
9.1. Long-Term Renewables Portfolio Standard Request for Offers Senior Power Resources Manager Gwynn explained how sunsetting federal tax credits sped up this solicitation for more long-term renewable energy contracts to meet RCEA’s 100% renewable portfolio by 2030 goal. Manager Gwynn described the solicitation criteria, which includes preference for, but not a requirement of, local resources.
Members of the public Andrea Armin, Sue Lee Mossman and Dr. Wendy Ring submitted comments opposing inclusion of biomass combustion among the potential energy sources for the long-term renewables portfolio standard request for offers. Chair Bauer closed the public comment period.
The Directors clarified that they would include non-CCA-voting members in their ad hoc solicitation committees. Alternate Board Directors should not be included in these working groups. The directors noted that committee members would consider this item’s public comments during discussion. Directors Gerace, Schaefer and Tuttle volunteered to serve on the ad hoc offer review committee.
M/S: Schaefer, Arroyo:
1) Authorize staff to issue the Request for Offers for Long-Term Renewables Portfolio Standard Resources.
2) Establish an ad hoc Board offer review committee and authorize it to take the following actions provided they are consistent with the request for offers: (i) approve shortlisted offers, (ii) replace offers on the shortlist as needed, and (iii) approve continued negotiations with a shortlisted respondent in the event their offer materially changes. 3) Authorize staff to engage with the shortlisted respondents, including execution of exclusivity agreements, collection of shortlist deposits, and negotiation of contract terms, prior to full Board review and approval of resulting contracts.
The motion passed with a unanimous roll call vote: Arroyo, Bauer, Diaz, Jorgensen, Scafani, Schaefer, Tuttle, Wilson. Noes: None. Absent: None. Abstain: None. Non-Voting: Gerace, Moore-Guynup, Wheeler.
End of CCE Business
Old Business
10.1. Report on Federal Government Activity
Regulatory and Legislative Policy Manager Carlson reported on federal activity at the executive, legislative and judicial levels since the start of 2025. Effects on energy- and RCEA-related issues were 9 9/25/25
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described. Manager Carlson focused on federal actions in the realm of offshore wind development and noted that Governor Newsom signed a budget bill that included funding for transmission planning and other means of supporting offshore wind development in California. Director Moore-Guynup, who serves on the Harbor District’s Citizen Advisory Committee for the heavy lift marine terminal, reported that Humboldt Bay project has been paused while alternate funding sources are being identified. RCEA’s approach to state and federal level advocacy was described. There were no public comments on this item and Chair Bauer closed the public comment period.
10.2. Annual Humboldt Sawmill Company Alternative Biomass Use Report (Information only) Power Resources Director Engel reported on Humboldt Sawmill Company’s (HSC) annual production of data in compliance with a Memorandum of Understanding between HSC and RCEA created in response to community biomass plant concerns. The Biomass Technical Advisory Group’s and the Community Advisory Committee’s discussions on the matter were summarized.
The Directors discussed the following:
• HSC’s plant was designed to produce steam, not electricity. Costly turbine improvement would improve electricity generation efficiency.
• If RCEA does not contract with HSC, HSC will sell biomass power and renewable energy certificates to non-local load-serving entities who may be less concerned about the plant’s greenhouse gas and particulate emissions.
• If RCEA does not contract with HSC, HSC will not shut down the biomass plant and lumber mill. • RCEA has leverage with HSC while it has an active power purchase agreement. • If RCEA will not contract with HSC beyond the next 6 years, the agency must prepare to fill the projected load and credit requirements now.
• A member inquired whether biomass plant improvements count toward carbon capture credits. • RCEA should use the leverage it has with HSC to push for smaller particulate air quality monitoring and analysis and for generation efficiency and greenhouse gas emission reduction. • HSC facility improvements will trigger a lengthy, federal Title V renewal process with no guarantee that the plant will be allowed to operate as a result. The cost of this process may not be justifiable to HSC with just 6 years left in contract with RCEA. • RCEA needs to decide whether the agency will procure energy and credits from HSC for the long term for HSC’s planning purposes.
• The Board needs to assess what is best for the community and for RCEA. Having a longer relationship with HSC, even with higher contract prices, may be better than losing local leverage.
No public comment was received for this item. Chair Bauer closed the public comment period.
New Business (continued)
11.1. Study Session on Data Center Local, State and National Impacts (Information only) Regulatory and Legislative Policy Manager Carlson reported on data center impacts nationally, statewide and locally. Each mid- to large-size data center requires as much electricity to operate as 25,000 to 50,000 homes use. Electricity is mainly needed for system cooling. Data center developers prefer round-the-clock, baseload energy sources such as coal, nuclear energy and natural gas. Current energy demand forecasts suggest that if data center load materializes, outage rates would increase dramatically, 10 9/25/25
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making it difficult to retire inefficient or environmentally harmful sources. Current energy demand is forecasted to increase by 100 times, making it difficult to retire inefficient or environmentally harmful power sources. California will fare better than other states with the projected load due to planned energy resource development. Current forecasts predict that other states will experience many more hours of power outages due to energy supply not meeting the increased demand. Manager Carlson described California regulatory initiatives to ensure that large customers pay up front for transmission infrastructure improvements instead of passing on improvement costs to customers regardless of whether the developers choose to build a data center in California or site their centers elsewhere. Staff asked the Board to notify them if large energy users are planning to move to their jurisdictions. RCEA is considering offering an economic development rate. Manager Carlson described ways to reduce energy use while online, such as setting default search engines to ones that allow users to toggle AI searches on and off.
The directors discussed potential state regulation to curtail data center power use and the potential for data center energy demands to make electricity prices exorbitant for RCEA. Director Moore-Guynup invited the directors to an upcoming meeting with a California Public Utilities Commissioner at the Blue Lake Rancheria. There were no public comments for this agenda item. Chair Bauer closed the public comment period.
Staff Reports
12.1. Executive Director’s Report
Executive Director Burks reported that Cal Poly Humboldt students will be studying local virtual power plant viability with guidance form RCEA’s Power Resources Director Engel, and that the RCEA-funded loan to the CADEMO offshore wind project in California state waters has not yet been released, pending PG&E comments on the loan’s terms. The month’s RCEA community outreach activities were listed.
Future Agenda Items
Executive Director Burks summarized future Board discussion item requests for possible non-power purchase agreement-based relationships with Humboldt Sawmill Company that could help realize carbon emission and harmful particulate emission reductions, and a discussion to explore ways to gather more air quality data in ways that do not infringe upon the Air Quality Management District’s scope of work.
Adjournment
Chair Bauer adjourned the meeting at 5:55 p.m.
Lori Taketa
Board Clerk
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STAFF REPORT
Agenda Item # 4.2
AGENDA DATE: October 23, 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 disbursements report for August 2025, and financial reports for this fiscal year through August 2025.
ATTACHMENTS
1. Disbursements Report for August 1 through August 31, 2025
2. Profit & Loss Budget vs. Actual Report, July 2025 through August 2025
3. Balance Sheet as of August 31, 2025
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14 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of August 31, 2025
Type Date Num Name Memo Amount
Liability Check 08/01/2025 ACH Ascensus 8/1/2025 Payroll -14,646.50 Liability Check 08/01/2025 ACH Ascensus 8/1/2025 Payroll -12,862.22 Liability Check 08/01/2025 ACH EDD 8/1/2025 Payroll -8,857.63 Liability Check 08/01/2025 ACH Internal Revenue Service 8/1/2025 Payroll -38,461.07 Bill Pmt -Check 08/01/2025 ACH PG&E Voluntary Allocation Mar 2025 Forecast Price- VA -21,514.48 Bill Pmt -Check 08/01/2025 ACH Viridity Energy Solutions, Inc. Tierra Buena RA-July 2025 -16,900.00 Check 08/01/2025 21207 CCE Customer CCE EV Rebate: EV54 -2,000.00 Check 08/01/2025 21208 CCE Customer CCE EV Rebate: EV55 -2,000.00 Check 08/01/2025 21209 CCE Customer CCE EV Rebate: EV56 -2,000.00 Check 08/01/2025 21210 CCE Customer CCE EV Rebate: EV57 -2,000.00 Check 08/01/2025 21211 NREN Customer NREN Res Equip. Rebate #250616-2686 -400.00 Check 08/01/2025 21212 NREN Customer NREN Res Equip. Rebate #250708-2812 -150.00 Check 08/01/2025 21213 NREN Customer NREN Res Equip. Rebate #250707-2808 -50.00 Check 08/01/2025 21214 NREN Customer NREN Res Equip. Rebate #250602-2620 -100.00 Check 08/01/2025 21215 NREN Customer NREN Res Equip. Rebate #250701-2780 -100.00 Check 08/01/2025 21216 NREN Customer NREN Res HP HVAC. Rebate #250614-2684 -1,432.00 Check 08/01/2025 21217 CCE Customer Refund for overpayment to CBA -14.92 Check 08/01/2025 21218 CCE Customer Refund for overpayment to CBA -96.75 Bill Pmt -Check 08/01/2025 21219 Alber's Tractor and Ag Work Mowing services for RCAM -1,300.00 Bill Pmt -Check 08/01/2025 21220 AM Conservation Group, Inc. Residential efficiency kits, drop shipped -13,723.87 Bill Pmt -Check 08/01/2025 21221 Arcata Technology Center Site Host Reimbursement 04/01-06/30/2025 -398.14 Bill Pmt -Check 08/01/2025 21222 Ascensus 03/01/2024-05/31/2025 Recordkeeping Fee -1,120.75 Bill Pmt -Check 08/01/2025 21223 AT&T RCAM Router charges- 06/19-07/18/25 -163.00 Bill Pmt -Check 08/01/2025 21224 AT&T RCAM Data charges -07/07-08/06/25 -330.21 Bill Pmt -Check 08/01/2025 21225 Bithell, M. July 2025 Mileage & Purchase Reimb -143.44 Bill Pmt -Check 08/01/2025 21226 Blue Lake Rancheria Site Host Reimbursement 04/01-06/30/2025 -1,427.88 Bill Pmt -Check 08/01/2025 21227 Braun Blaising & Wynne, P.C. Legal Services - Regulatory -June 2025 -5,419.00 Bill Pmt -Check 08/01/2025 21228 Busick, B. July 2025 Mileage & Purchase Reimb -343.60 Bill Pmt -Check 08/01/2025 21229 CA Community Power FY 2025-2026 General and Admin Costs -174,000.00 Bill Pmt -Check 08/01/2025 21230 CA Dept. of Tax & Fee Administration VOID: Electrical Energy Surcharge Return 0.00 Bill Pmt -Check 08/01/2025 21231 City of Arcata Site Host Reimbursement 04/30-06/30/2025 -1,543.63 Bill Pmt -Check 08/01/2025 21232 City of Arcata June 2025 Utility User Tax -14,398.84 Bill Pmt -Check 08/01/2025 21233 City of Arcata June 2025 Excessive Electricity Use Tax -1,030.36 Bill Pmt -Check 08/01/2025 21234 City of Blue Lake Site Host Reimbursement 04/01-06/30/2025 -635.23 Bill Pmt -Check 08/01/2025 21235 City of Eureka - REVNet Site Host Reimbursement 04/01-06/30/2025 -1,068.37 Bill Pmt -Check 08/01/2025 21236 City of Trinidad Site Host Reimbursement 04/01-06/30/2025 -703.33 Bill Pmt -Check 08/01/2025 21237 CPH Sponsored Programs Foundation TO 8 May and June 2025 -2,351.00 Bill Pmt -Check 08/01/2025 21238 Frontier Energy, Inc. NREN PA services 6/30/2025 -17,429.50 Bill Pmt -Check 08/01/2025 21239 Hooven & Reese, Inc. EVSE construction services 7/31/25 -68,267.53 Bill Pmt -Check 08/01/2025 21240 Humboldt Bay Coffee Co. Office Coffee- 633 3rd St. -51.90 Bill Pmt -Check 08/01/2025 21241 Humboldt County DHHS 25/26 Annual HazMat Fees -531.62 Bill Pmt -Check 08/01/2025 21242 Kerekes, C. July 2025 Mileage & Travel Reimb. -173.46 Bill Pmt -Check 08/01/2025 21243 Kullmann, S. July 2025 CECC travel -928.20 Bill Pmt -Check 08/01/2025 21244 Kilowatt Engineering, Inc. NMEC Program Support - NREN June 2025 -12,817.50 Bill Pmt -Check 08/01/2025 21245 Law Offices of Susie Berlin June 2025 Legal Services - NREN Support -3,697.50 Bill Pmt -Check 08/01/2025 21246 Newport Group Participant Fees - 07/01-09/30/2025 -1,066.44 Bill Pmt -Check 08/01/2025 21247 North Coast Unified Air Quality Site Host Reimbursement 04/01-06/30/2025 -784.12 Bill Pmt -Check 08/01/2025 21248 North Country Fair North Country Fair 2025 Booth Fee -195.00 Bill Pmt -Check 08/01/2025 21249 NYLEX.net, Inc. Onsite network support services - Aug 2025 -4,059.00 Bill Pmt -Check 08/01/2025 21250 Open Door Community Health Center Site Host Reimbursement 04/01-06/30/2025 -883.45 Bill Pmt -Check 08/01/2025 21251 Pacific Paper Company July 2025 office supplies -115.42
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Disbursements Report
As of August 31, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 08/01/2025 21252 PG&E-Office Utility Accts: 8836 & 1999 -1,812.92 Bill Pmt -Check 08/01/2025 21253 PG&E CCA June 2025 CCE Billing Charges -21,820.47 Bill Pmt -Check 08/01/2025 21254 Premier Financial Group, Inc. Advisory Fee for Q3 2025 -6,641.48 Bill Pmt -Check 08/01/2025 21255 Reider, S Mileage Reimbursement-July 2025 -24.78 Bill Pmt -Check 08/01/2025 21256 Rennie, J Purchase reimbursement - July 2025 -60.91 Bill Pmt -Check 08/01/2025 21257 Revolution Bicycles, Inc. E-Bike Voucher Payments: Invoices 21 & 22 -1,400.00 Bill Pmt -Check 08/01/2025 21258 Rodriguez, Louis Mileage & Purchase reimbursement - July 2025 -70.08 Bill Pmt -Check 08/01/2025 21259 Special District Risk Managment P&L Additional Insured Cert: City of Eureka -47.50 Bill Pmt -Check 08/01/2025 21260 Shred Aware Shredding services - July 2025 -68.95 Bill Pmt -Check 08/01/2025 21261 St. Joseph Hospital, Eureka Site Host Reimbursement 04/01-06/30/2025 -4,653.43 Bill Pmt -Check 08/01/2025 21262 The Engine is Red July 21- Aug 1 2025 Brand Training -2,500.00 Bill Pmt -Check 08/01/2025 21263 Times Printing Company July 2025 Invoices- Move-In Mailers -1,506.47 Bill Pmt -Check 08/01/2025 21264 Wex Health, Inc Monthly COBRA Payment -23.88 Paycheck 08/01/2025 ACH Employees Payroll -92,178.15
Bill Pmt -Check 08/04/2025 ACH The Energy Authority CISO073025-JUL25 -5,258.23 Bill Pmt -Check 08/04/2025 21265 Sacramento Advocates, Inc. CADEMO advocacy strategy 7/1- 8/1/2025 -22,500.00 Bill Pmt -Check 08/11/2025 ACH The Energy Authority CISO080625-JUL25 -89,588.56 Liability Check 08/15/2025 ACH Ascensus 8/15/2025 Payroll -14,996.97 Liability Check 08/15/2025 ACH Ascensus 8/15/2025 Payroll -13,073.12 Liability Check 08/15/2025 ACH EDD 8/15/2025 Payroll -8,895.39 Liability Check 08/15/2025 ACH Internal Revenue Service 8/15/2025 Payroll -38,631.53 Bill Pmt -Check 08/15/2025 ACH CalPine Corporation July 2025 Meter Services -68,288.89 Bill Pmt -Check 08/15/2025 ACH EDPR CA Solar Park LLC II July 2025 Contract Energy -566,640.80 Bill Pmt -Check 08/15/2025 ACH Humboldt Sawmill Co. July 2025 Contract Energy -810,355.44 Bill Pmt -Check 08/15/2025 ACH Leapfrog Power, Inc July 2025 RA -36,740.00 Bill Pmt -Check 08/15/2025 ACH Sonoma Clean Power Authority July 2025 - Flex RA sale - Monthly -261,000.00 Bill Pmt -Check 08/15/2025 ACH The Energy Authority Monthly TEA Invoice #TEA72025 July 2025 -1,899,081.02 Check 08/15/2025 21266-89 NEM Customers NEM Cash Outs -5,508.63 Check 08/15/2025 21290 CCE Customer Rebate- CCE EVSE Res: REVSE55 -272.38 Check 08/15/2025 21291 NREN Customer NREN Equip Rebate -Res #250714-2822 -100.00 Check 08/15/2025 21292 NREN Customer NREN Equip Rebate -Res #250620-2706 -1,800.00 Check 08/15/2025 21293 NREN Customer NREN Equip Rebate -Res #250619-2705 -300.00 Check 08/15/2025 21294 NREN Customer NREN Equip Rebate -Res #250620-2707 -50.00 Check 08/15/2025 21295 NEM Customer NEM Term Cash Out 2025 -196.90 Bill Pmt -Check 08/15/2025 21296 Advanced Security Systems Install glassbreak sensor -117.84 Bill Pmt -Check 08/15/2025 21297 Alber's Tractor and Ag Work Mowing services for ACV solar site -1,900.00 Bill Pmt -Check 08/15/2025 21298 AM Conservation Group, Inc. NREN Res Kits: SBC Batch #5 Qty 20 -1,459.52 Bill Pmt -Check 08/15/2025 21299 Amazon.com Monthly billing - July 2025 -410.62 Bill Pmt -Check 08/15/2025 21300 AT&T RCAM charges - 07/29-08/28-2025 -639.68 Bill Pmt -Check 08/15/2025 21301 AT&T Long Distance Phone charges 07/25 - 08/24/2025 -110.80 Bill Pmt -Check 08/15/2025 21302 Baker Tilly US, LLP Professional services - period ending 07/31/25 -3,150.00 Bill Pmt -Check 08/15/2025 21303 Bithell, M. August 2025 Mileage Reimb -50.40 Bill Pmt -Check 08/15/2025 21304 Briceland Volunteer Fire Department Rx Burn trainings: 3/23/24-6/8/24 -36,000.00 Bill Pmt -Check 08/15/2025 21305 City of Eureka-Water Water service 06/24/25-07/28/25 -514.92 Bill Pmt -Check 08/15/2025 21306 CPH Sponsored Programs Foundation TO9 RCAM Op Support: June 2025 -6,636.79 Bill Pmt -Check 08/15/2025 21307 Donald Dame CCE Consulting services- July 2025 -232.75 Bill Pmt -Check 08/15/2025 21308 EAN Services, LLC Car rental July 2025: CCEC 2025 -198.55 Bill Pmt -Check 08/15/2025 21309 Ed The Plumber Fitz It Right Plumbing LLC 633 3rd St. toilet repair #2 -282.00 Bill Pmt -Check 08/15/2025 21310 Energy Resources Integration, LLC NREN Commercial Needs Assesments- July -29,501.00 Bill Pmt -Check 08/15/2025 21311 Humboldt Bay Coffee Co. Office Coffee- 633 3rd St. -56.90 Bill Pmt -Check 08/15/2025 21312 Kilowatt Engineering, Inc. NMEC ProgramServices - NREN July 2025 -3,707.50
16 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of August 31, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 08/15/2025 21313 Law Offices of Nancy Diamond July 2025 Legal Services -13,284.00 Bill Pmt -Check 08/15/2025 21314 Mission Linen & Uniform Service Aug 2025 Janitorial service and supplies -190.14 Bill Pmt -Check 08/15/2025 21315 North Coast Cleaning Services, Inc. 917 3rd & 633 3rd Service -1,090.00 Bill Pmt -Check 08/15/2025 21316 Optimum Business-633 633 3rd St: Phone & Internet 07/28-08/27/2025 -1,101.77 Bill Pmt -Check 08/15/2025 21317 Pacific Paper Company Office Supplies -69.44 Bill Pmt -Check 08/15/2025 21318 PG&E- EV Accts: 6675184648-7; 7097660497-8 -1,661.83 Bill Pmt -Check 08/15/2025 21319 RDS Solar Pumps 20% down payment for 5 Sun Titan Trailers -31,420.21 Bill Pmt -Check 08/15/2025 21320 Shafer's Ace Hardware Air filters for RCAM battery enclosures -302.95 Bill Pmt -Check 08/15/2025 21321 Taketa, L. VOID: Per diem Taketa CMCA Leadership 0.00 Bill Pmt -Check 08/15/2025 21322 Times Printing Company Late Notice letters July 2025 -737.91 Bill Pmt -Check 08/15/2025 21323 Wex Health, Inc Monthly COBRA Payment -23.88 Bill Pmt -Check 08/15/2025 21324 Whitchurch Engineering, Inc EVSE design Mad River Hospital site -320.00 Bill Pmt -Check 08/15/2025 21325 WREGIS Qty 215 Created & 334,620 Retired transactions -1,339.34 Bill Pmt -Check 08/15/2025 21326 Education & Outreach Company LED Lightbulb- Save Energy Box and Stickers -882.01 Bill Pmt -Check 08/15/2025 21327 iPROMOTEu.com, Inc Branded giveaways for events -2,285.79 Paycheck 08/15/2025 ACH Employees Payroll -92,623.04
Check 08/17/2025 ACH VISA VISA 4133: July 2025 Stmt -191.46 Check 08/17/2025 ACH VISA VISA 2291: July 2025 Stmt -23,228.03 Bill Pmt -Check 08/18/2025 ACH The Energy Authority CISO081325 -73,679.08 Check 08/19/2025 ACH VISA- Commercial Card Statement Date 7/31/25 BL Acct 1901 -195.00 Check 08/20/2025 Debit Columbia Bank Service Charge -311.71 Check 08/20/2025 Debit Columbia Bank Service Charge -95.94 Bill Pmt -Check 08/25/2025 ACH The Energy Authority CISO082025-AUG25 -84,984.60 Liability Check 08/29/2025 ACH Ascensus 08/29/2025 Payroll -15,087.68 Liability Check 08/29/2025 ACH CICCS Coalition for Controlling Insurance Aug 2025 Premiums -66.98 Liability Check 08/29/2025 ACH Colonial Life Sept. 2025 Premiums -4,902.90 Liability Check 08/29/2025 ACH EDD 08/29/2025 Payroll -9,524.25 Liability Check 08/29/2025 ACH Internal Revenue Service 08/29/2025 Payroll -40,579.77 Liability Check 08/29/2025 ACH Keenan Sept. 2025 Premiums -52,969.74 Liability Check 08/29/2025 ACH Principal Life Insurance Company Sept. 2025 Premiums -137.60 Liability Check 08/29/2025 ACH Ascensus 08/29/2025 Payroll -13,161.57 Bill Pmt -Check 08/29/2025 ACH PG&E Voluntary Allocation Apr 2025 Forecast Price- VA -77,437.88 Bill Pmt -Check 08/29/2025 ACH Sierra Business Council NREN advance payment: Q1 & Q2 2025 -671,507.00 Bill Pmt -Check 08/29/2025 ACH Valley Clean Energy Alliance MTR RA Swap Agreement: June & July 2025 -49,982.00 Liability Check 08/29/2025 21328 Ameritas - Dental Sept 2025 Premiums -2,768.04 Liability Check 08/29/2025 21329 Ameritas - Vision Sept. 2025 Premiums -493.60 Check 08/29/2025 21330 NREN Customer NREN RES Heat Pump HVAC Rebate -643.50 Check 08/29/2025 21331 NREN Customer NREN RES Equip. Rebate -550.00 Check 08/29/2025 21332 NREN Customer NREN RES Equip. Rebate -700.00 Check 08/29/2025 21333 NREN Customer NREN RES Equip. Rebate -100.00 Check 08/29/2025 21334 NREN Customer NREN RES Equip. Rebate -150.00 Check 08/29/2025 21335 NREN Customer NREN RES Equip. Rebate -100.00 Check 08/29/2025 21336 NREN Customer NREN RES Equip. Rebate -100.00 Check 08/29/2025 21337 NREN Customer VOID: NREN RES Equip. Rebate 0.00 Check 08/29/2025 21338 CCE Customer CCE EV Rebate -2,000.00 Check 08/29/2025 21339 CCE Customer CCE EV Rebate -2,000.00 Check 08/29/2025 21340 CCE Customer CCE EV Rebate -2,000.00 Check 08/29/2025 21341 CCE Customer CCE EV Rebate -2,000.00 Check 08/29/2025 21342 CCE Customer CCE EV Rebate -2,000.00 Check 08/29/2025 21343 NEM Customer 2025 NEM Yearly Payout- reissued -275.31 Check 08/29/2025 21344 NEM Customer 2025 NEM Yearly Payout- reissued -167.49
17 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of August 31, 2025
Type Date Num Name Memo Amount
Bill Pmt -Check 08/29/2025 21345 Arcata Police Department Livescan screening: Rolling Fee x 2 -70.00 Bill Pmt -Check 08/29/2025 21346 AT&T RCAM 08/07-00/06/25 -331.95 Bill Pmt -Check 08/29/2025 21347 Carter Properties 917 3rd Street Office - Sept 2025 rent -2,450.00 Bill Pmt -Check 08/29/2025 21348 Chad Johnson Battery Workshop Video Services 7/23/25 -850.00 Bill Pmt -Check 08/29/2025 21349 City of Arcata July 2025 Excessive Electricity Use Tax -481.17 Bill Pmt -Check 08/29/2025 21350 City of Arcata July 2025 Utility User Tax -15,741.85 Bill Pmt -Check 08/29/2025 21351 Dell USA Dell Latitude 5450 x 3 & 5550 x 1 -5,256.09 Bill Pmt -Check 08/29/2025 21352 Developed Employment Services, LLC. 805 3rd St. Yard work -83.38 Bill Pmt -Check 08/29/2025 21353 Fortuna Chamber of Commerce Fortuna Apple Harvest Festival Booth 10/04/25 -25.00 Bill Pmt -Check 08/29/2025 21354 Frontier Energy, Inc. NREN PA services -18,993.50 Bill Pmt -Check 08/29/2025 21355 Hooven & Reese, Inc. EVSE construction services -10,710.03 Bill Pmt -Check 08/29/2025 21356 Humboldt Bay Coffee Co. Office Coffee- 917 3rd St. -29.55 Bill Pmt -Check 08/29/2025 21357 Humboldt Transit Authority Employee bus passes for FYE 2025 -932.90 Bill Pmt -Check 08/29/2025 21358 Lake County/City Area Planning Council Invs: NREN-3 & NREN-4 -180,226.43 Bill Pmt -Check 08/29/2025 21359 Law Offices of Susie Berlin July 2025 Legal Services - NREN Support -1,530.00 Bill Pmt -Check 08/29/2025 21360 Liebert Cassidy Whitmore Legal services July 2025 -863.50 Bill Pmt -Check 08/29/2025 21361 Match Strike Design Brand Refresh: Phase 1 Tasks -3,500.00 Bill Pmt -Check 08/29/2025 21362 NYLEX.net, Inc. Onsite network support services - Sept 2025 -4,059.00 Bill Pmt -Check 08/29/2025 21363 PG&E- EV Carlson Park Dr EV station: 7/29-7/31/25 -8.95 Bill Pmt -Check 08/29/2025 21364 PG&E-Office Utility Accts: 8836-6 & 1999-6 -1,569.85 Bill Pmt -Check 08/29/2025 21365 PG&E - ACV- 6674-0 ACV site utilities 07/01/25- 07/31/25 -262.72 Bill Pmt -Check 08/29/2025 21366 Reider, S Mileage Reimbursement-Aug 2025 -81.48 Bill Pmt -Check 08/29/2025 21367 Rennie, J Mileage reimbursement - Aug 2025 -152.53 Bill Pmt -Check 08/29/2025 21368 Scrapper's Edge Specialty printing- foam board sign -39.13 Bill Pmt -Check 08/29/2025 21369 Times Printing Company Aug. 2025 mailer printing and postage -33,886.90 Bill Pmt -Check 08/29/2025 21370 Ubeo Business Services 633+ 917 3rd St Printer Charges: 07/06-08/05/25 -243.05 Bill Pmt -Check 08/29/2025 21371 Winzler, John Office Lease - 633 3rd St. Sept 2025 -8,144.97 Check 08/29/2025 21372 NREN Customer NREN RES Equip. Rebate -100.00 Paycheck 08/29/2025 ACH Employees Payroll -96,934.36
TOTAL -6,184,724.74
18 Redwood Coast Energy Authority
Profit & Loss Budget vs. Actual
July through August 2025
Jul - Aug 25 Budget % of Budget
Ordinary Income/Expense
Income
5 REVENUE EARNED
Total 5000 · Revenue - government agencies 2,421,470.96 11,331,517.00 21.37% Total 5100 · Revenue - program related 161,194.70 77,000.00 209.34% Total 5300 · Revenue - Interest Earned 172,674.12
Total 5400 · Revenue-nongovernment agencies 98,492.64 296,090.00 33.26% Total 5500 · Revenue - Electricity Sales 12,522,439.04 71,539,945.00 17.5% Total 5 REVENUE EARNED 15,376,271.46 83,244,552.00 18.47% Total Income 15,376,271.46 83,244,552.00 18.47%
Gross Profit 15,376,271.46 83,244,552.00 18.47%
Expense
Total 6 WHOLESALE POWER SUPPLY 7,483,541.70 57,617,586.00 12.99% Total 7 PERSONNEL EXPENSES 827,351.37 6,404,096.00 12.92% Total 8.1 FACILITIES AND OPERATIONS 316,214.75 2,171,607.00 14.56% Total 8.2 COMMUNICATIONS AND OUTREACH 53,520.23 363,250.00 14.73%
8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 26,509.32 150,000.00 17.67%
Total 8410 · Contracts - Program Related Ser 1,355,249.66 3,610,716.00 37.53% 8420 · Accounting 46,683.56 228,000.00 20.48%
8430 · Legal 36,943.87 249,000.00 14.84%
8450 · Wholesale Services - TEA 153,975.72 896,946.00 17.17% 8460 · Procurement Credit - TEA 22,155.56 572,390.00 3.87% 8470 · Data Management - Calpine 136,535.25 808,002.00 16.9% 8480 · Customer Billing - PG&E 43,823.92 256,634.00 17.08% Total 8.4 PROFESSIONAL & PROGRAM SRVS 1,821,876.86 6,771,688.00 26.9% Total 8.6 INCENTIVES & REBATES 56,899.75 1,622,655.00 3.51% Total 9 NON OPERATING COSTS 915.52 129,200.00 0.71%
Total Expense 10,560,320.18 75,080,082.00 14.07%
Net Ordinary Income 4,815,951.28 8,164,470.00 58.99%
Net Income 4,815,951.28 8,164,470.00 58.99%
19 Redwood Coast Energy Authority
Balance Sheet
As of August 31, 2025
Aug 31, 25
ASSETS
Current Assets
Checking/Savings
1010 · Petty Cash 300.00
1060 · Umpqua Checking Acct 0560 415,303.44
1071 · Umpqua Deposit Cntrol Acct 8215 2,207,248.35
1075 · Umpqua Reserve Account 2300 23,064,031.34
1077 · JP Morgan Chase Act 74999 399,967.48
1078 · CA CLASS Reserve Fund 0001 13,057,846.56
Total Checking/Savings 39,144,697.17
Total Accounts Receivable 369,161.60
Other Current Assets
1101 · Allowance for Doubtful Accounts -8,882,549.76
1103 · Electricity Receivable 18,831,488.17
1120 · Inventory Asset 21,822.24
1205 · Prepaid Insurance 20,615.37
1210 · Retentions Receivable 62,595.59
Total Other Current Assets 10,053,971.61
Total Current Assets 49,567,830.38
Total Fixed Assets 9,891,402.88
Other Assets
1700 · Security Deposits 794,616.33
Total Other Assets 794,616.33
TOTAL ASSETS 60,253,849.59
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable 3,840,251.39
Total Credit Cards 12,424.54
Other Current Liabilities
2002 · Deposits Refundable 1,079,170.01
2011 · NEM Escrow Liability 436,161.05
2013 · Unearned Revenue 4,402,908.66
Total 2100 · Payroll Liabilities 231,430.03
Total 2200 · Accrued Expenses 40,004.98
Total Other Current Liabilities 6,189,674.73
Total Current Liabilities 10,042,350.66
Total Long Term Liabilities 5,665,742.22
Total Liabilities 15,708,092.88
Equity
3900 · Fund Balance 39,729,805.43
Net Income 4,815,951.28
Total Equity 44,545,756.71
TOTAL LIABILITIES & EQUITY 60,253,849.59
20
STAFF REPORT
Agenda Item # 4.3
AGENDA DATE: October 23, 2025
TO: RCEA Board of Directors
FROM: Faith Carlson, Regulatory and Legislative Policy Manager SUBJECT: Federal Activity Update
SUMMARY
The biggest policy change in the last month is the federal shutdown, which has had far-reaching impacts across the U.S. The shutdown is a result of Congress’s failure to pass a budget or agree on temporary funding, resulting in the cessation of nonessential federal agency operations until funding is restored.
EXECUTIVE BRANCH
September 18: President Trump signed a memorandum of understanding (MOU) with the government of the United Kingdom of Great Britain and Northern Ireland for collaboration on Artificial Intelligence (AI), civil nuclear, fusion, and quantum technologies. This MOU establishes a flagship research program for the development of AI and AI-related advancements. The MOU also deepens collaboration between the US and the UK with the goal of focusing on accelerating licensing, harmonizing policy, creating a more reliable supply chain for nuclear fuels with the goal of “unleashing civil nuclear energy,” and increasing research for experimental facilities utilizing AI. This MOU solidifies efforts to use AI to accelerate quantum development via collaborative research. This MOU is not legally binding.
September 18: The Department of Energy (DOE) Grid Deployment Office launched the Speed to Power initiative. This is “a federal action to accelerate the speed of large-scale grid infrastructure project development for both transmission and generation, to ensure the United States has the power needed to win the global AI race while continuing to meet growing demand for affordable, reliable and secure energy.” This initiative was launched in response to the DOE’s July 7 Report on Evaluating U.S. Grid Reliability, which was issued in response to President Trump’s Executive Order, Strengthening the Reliability and Security of the United States Electrical Grid.
October 1: In response to the Executive Order “Zero-Based Regulatory Budgeting to Unleash American Energy,” the Federal Energy Regulatory Commission voted to sunset 53 regulations.
The sunset will become effective one year and 45 days from publication in the Federal Register, unless “significant adverse comments” are received within 30 days of publication. The regulations relate to redundant or no longer applicable policies.
October 1: The DOE announced the termination of 321 funding awards, valued at approximately $7.56 billion. These awards represent 223 projects in 108 Democratic and 28 Republican House districts. Award recipients have 30 days to appeal the decision. 21
JUDICIAL BRANCH
September 22: A federal judge allowed work to restart on the stalled Revolution Wind project off the coast of Connecticut and Rhode Island. The project had been issued a stop work order by the Bureau of Ocean Energy Management (BOEM) exactly one month prior.
September 30: A coalition of attorneys general from California, Colorado, Connecticut, Delaware, Hawai’i, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania, won a lawsuit blocking the DOE from imposing new funding caps on state-run energy programs. The funding cap would have denied certain administrative and staffing costs traditionally covered by federal dollars.
LEGISLATIVE BRANCH
At midnight October 1, the 2026 fiscal year began. Congress was unable to agree on a budget or temporary funding measure, leading to a federal government shutdown. For the government to reopen, Congress must pass either funding appropriations or a temporary spending bill.
During the shutdown, federal agencies must stop nonessential operations normally funded by Congress. Publicly available agency contingency plans outline which activities will cease and continue at federal agencies until funding is restored.
On October 7, the Senate confirmed Laura Swett and David LaCerte to serve on the Federal Energy Regulatory Commission.
IMPACTS
Impacts to California State Policy
On September 30, the California Public Utilities Commission (CPUC) issued a ruling featuring proposed electricity portfolios for the 2026-2027 Transmission Planning Process as well as a resource Need Assessment that may trigger a procurement order for California Load Serving Entities, including Community Choice Aggregators (CCAs) like RCEA. Both the proposed Base Case and Sensitivity Case electricity portfolios are impacted by federal policy changes, including changes to the federal tax credits in HR1, tariff changes, and changes to federal permitting. As a result, the Base Case delays offshore wind development in Morro Bay by 4 years and off the coast of Humboldt by 6 years. The proposed Sensitivity Case is a Limited Wind scenario including no offshore wind and decreased quantities of onshore wind.
The Need Assessment and likely procurement order is spurred both by federal and state policy.
Federal triggers include a desire to capture tax credits before they phase out, increased prioritization of data center development, and changes to transportation electrification policy.
Impacts of the Federal Shutdown
A prolonged shutdown could lead to slowed federal permitting of energy projects, compounding the already slowed permitting process for solar and wind on federal lands due to recent policy changes. As an example of compounding impacts, multiple agency contingency plans reference a reduction in force, though due to past federal layoffs, the percentage rates listed in plans that have not been recently updated may not reflect actual layoff and furlough rates. 22
According to the Department of the Interior contingency plan released in September, various permitting activity will continue. The Interior Department’s Bureau of Land Management will continue permitting for oil and gas, transmission, and related rights-of-way, as well as new leasing for energy and mineral resources, with an expectation to furlough 53% of staff. The Bureau of Safety and Environmental Enforcement, which regulates safety and environmental protection related to energy development on the Outer Continental Shelf, will retain 67% of staff to continue permitting and oversight. However, not all permitting will continue. For instance, the BOEM “will cease all renewable energy activities but continue limited work on conventional and marine minerals based on available resources.”
The DOE’s contingency plan states that offices with “no-year” or “multiyear” appropriations will continue operations, with plans to operate with a smaller staff after exhausting available balances.
The Environmental Protection Agency plans to continue emergency response, disaster relief, law enforcement, litigation work, and preparations for the agency’s 2027 fiscal year budget are expected to continue and cease new grants, permits, and interagency agreement.
The Federal Energy Regulatory Commission will continue operating using balances from prior years until funding runs out, at which point it will limit its staffing to 5% of its total workforce and cease nonessential activities not related to reliability, market monitoring, facility inspection, and some legal functions.
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 was included on a list of terminated projects released by the Department of Energy. As of October 15, 2025, RCEA has not received a termination notice from the Department of Energy.
STAFF RECOMMENDATION
Receive federal activity report.
ATTACHMENTS
None.
23 This page
intentionally
left blank.
24
STAFF REPORT
Agenda Item # 4.4
AGENDA DATE: October 23, 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 June 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, California Public Utilities Commission, California Independent System Operator (CAISO), California Air Resources Board, 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 in alignment with the Policy Platform:
• RCEA staff engaged CAISO on issues including progress towards transmission development for Humboldt offshore wind, Resource Adequacy for new and existing microgrids, Resource Adequacy for new and existing Energy Only projects, and the Transmission Planning Process. In Humboldt County, there is very little available 25
transmission capacity, which leads to a low quantity of Transmission Plan 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. Staff requested that CAISO consider including incremental TPD over what is needed for offshore wind transmission for the benefit of local development. • Community Choice Aggregators (CCAs) RCEA, the San Francisco Public Utilities Commission (which houses Clean Power San Franscisco), and Marin Clean Energy, alongside 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 California and 17 states who 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.” 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. • RCEA filed comments on the California Energy Commission’s AB 3 Offshore Wind Port Development Scoping Document highlighting the need for additional scoping throughout the development of final reports and the presence of data and information gaps surrounding cost share and host community engagement.
• RCEA and Humboldt County filed joint comments on PG&E’s Climate Adaptation and Vulnerability Assessment. In general, the comments recommend that PG&E should increase collaboration and data sharing with more parties, along with Community Based Organizations, Community Choice Aggregators, Local and Regional Governments, and any parties involved in crafting climate action and adaptation plans; that there should be more public input and greater consideration for advisory group participant selection; and that survey questions should allow for more open-ended answers or provided answers should include more options to better understand rural issues. • RCEA, with a coalition of CCAs and other organizations, submitted a letter to the Governor requesting language in the budget trailer bill clarifying that CCA customers should be eligible for incentives under the Self Generation Incentive Program, or SGIP. • RCEA conducted extensive outreach to legislators in the final weeks of the session to request funding for offshore wind projects. The final 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 is disbursing this funding.
• 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.
26
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
Receive Regulatory and Legislative Platform Engagement Report.
ATTACHMENTS
1. Tracked Legislation
2. CalCCA and Joint CCA Regulatory Engagement
27 This page
intentionally
left blank.
28 Tracked Legislation
Affordability
Bill Author Position Status Summary
SB 254 Becker (D)
& Wahab
(D)
Support Signed into law The Senate’s affordability omnibus proposal.
SB 302 Padilla (D) Support Signed into law Would conform California environmental tax credits with federal tax credits.
AB 729 Zbur (D) Support No longer active Would provide ratepayer bill relief by shifting when residential customers receive the California Climate
Credit.
SB 330 Padilla (D) Support No longer active for
2025
Would allow public financing pilots for transmission
projects.
Building Decarbonization and Distributed Energy Resources Bill Author Summary
AB 306 Schultz (D) Oppose
unless
Amended
Incorporated into
budget trailer bill,
which was signed
into law
Would, from 6/1/25 to 6/1/31, inclusive, prohibit a city or county from making changes to building codes 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 Vetoed CEC would report to the Legislature on virtual power plants (VPPs), on electricity costs and rate reduction, and implementation plans that include goals and
milestones.
SB 541 Becker (D) Oppose
unless
amended
Vetoed Would create a load-shifting mandate for all
Load Serving Entities to reduce net peak electrical
demand as identified in the CEC’s latest Integrated
Energy Policy Report.
Infrastructure
Bill Author Summary
AB 531 Rogers (D) Support Signed into law Would allow geothermal power to use CEC’s AB 205 “opt-in” permitting process in lieu of local permitting.
SB 283 Laird (D) Support Signed into law Would establish safety standards for battery energy storage systems.
AB 303 Addis (D) Oppose No longer active 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 environmentally
sensitive sites, or within 3,200 feet of sensitive
receptors, which includes residences, education
facilities, community centers, health care facilities,
29 publicly accessible businesses, making it challenging to meet state procurement requirements.
AB 526 Papan (D) Support No longer active Would require the CEC to publish a strategic plan for the development of new in-California geothermal
energy 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 Vetoed Geothermal exploratory project which satisfies federal National Environmental Policy Act exemption would be
presumed to have satisfied requirements of California
Environmental Quality Act (CEQA).
AB 941 Zbur (D) Support Dead Accelerated review (270 days) for environmental impact reports to be certified by CEQA for transmission
projects.
Other
Bill Author Summary
AB 825 Petrie-Norris (D) Support Signed into law This bill includes the Pathways Initiative that was originally contained in SB 540 with amendments that
eliminate the council that would have had the authority to decide if California could participate in the new
regional market.
AB 706 Aguiar-Curry (D)Support No longer active 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 Replaced by AB
825 and no longer
active
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 No longer active Directs the CPUC to ensure that all Load Serving Entities consider all resource options to meet local
reliability needs with firm zero-carbon resources in their Integrated Resource Plans.
30 1
CalCCA and Joint CCA Regulatory Engagement
CalCCA Managed Cases
Key Agency Topic Summary
CPUC Climate Credit Stemming from the Greenhouse Gas (GHG) Cap and Trade program, the California
Climate Credit is distributed twice a year to
all ratepayers electric and natural gas bills.
The California Industry Assistance Credit is
an annual credit for eligible industrial
facilities that are customers of the investor-owned electric utilities. The CPUC issued a new rulemaking to consider ways to
improve the effectiveness of the California
Climate Credit for supporting customer
affordability and implementation of the
California Industry Assistance to minimize
leakage of emissions.
CPUC Demand Flexibility This recently closed rulemaking focused on leveraging demand response as a critical
resource in integrated resource planning,
which includes ratemaking. Issues included
the implementation of the Income
Graduated Fixed Charge (IGFC) and Dynamic
Rates.
CPUC Diablo Canyon Extension
Operations
Establishes Resource Adequacy allocations
of Diablo Canyon’s extended operations,
extended operations and recovery costs,
and how performance fees are 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.
31 2
CalCCA Managed Cases
Key Agency Topic Summary
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 Distribution: Rule 21 OIR The CPUC recently issued a new rulemaking addressing Rule 21 reforms. Rule 21 is a
tariff that describes the interconnection,
operating and metering requirements for
certain generating and storage facilities
seeking to connect to the electric
distribution system.
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 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
program to ensure sufficient resource
procurement and development and
compliance with California’s greenhouse 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)
32 3
CalCCA Managed Cases
Key Agency Topic Summary
programs through an initiative called the
Renewable and Clean Power Procurement
Program (RCPPP).
CAISO Interconnection Process
Enhancements (IPE),
Congestion Revenue Rights
(CRR), and Transmission
Planning Process (TPP).
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, and transmission
planning. CalCCA engages in additional
issues at CAISO, however RCEA tracks those
less closely at this time.
CEC Load Management Standards
(LMS)
Similar to demand flexibility, LMS requires
IOUs and CCAs to maintain time-varying
rates and are accessible to the public.
CPUC Power Charge Indifference
Adjustment (PCIA)
This rulemaking considers changes to the
PCIA as well as rules and processes
applicable to the Energy Resource Recovery
Account annual forecast and compliance
proceedings. There was a recent change to
the methodology related to the calculation
of the PCIA. Previously, the PCIA was
assessed primarily using a one-year average
energy price. Now, the PCIA is assessed
primarily via a three-year average.
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, such as a CCA, ceases business operations, their customers
will be returned to the Provider of Last
Resort. This proceeding relates to the
Financial Security Rating 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 Provider of Last Resort.
33 4
CalCCA Managed Cases
Key Agency Topic Summary
CAISO and
FERC
Regional Coordination Regionalization generally means integrating elements of electricity markets across a
particular region, such as the West, under
the operation and management of a single
Federal Energy Regulatory Commission
(FERC) regulated regional entity. Energy
markets, transmission planning,
transmission system operation, reliability,
and other elements can be regionalized
individually or in combination. Pathways
aims to expand participation across the
West in the day-ahead and real-time energy
markets currently managed by the California
Independent System Operator. With the
passage of AB 825, RCEA may ramp up
engagement with CalCCA within this
initiative.
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 Resource Adequacy program,
which was designed in response to
California’s energy crisis to ensure safe and
reliable operation of the grid. Recent activity
relates to Local Resource Adequacy Central
Procurement reform and setting 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.
CalCCA is working to ensure fair treatment
of CCAs under the potential new rule and
access to load planning data.
34 5
Joint CCA Managed Cases
Key Agency Topic Summary
CPUC BioMAT RCEA and Pioneer Community Energy have
conducted various activities to encourage
the continuation of the BioMAT program
beyond its current 2025 sunset date. Recent
engagement included ex parte meetings
with the offices of all CPUC Commissioners
and Energy Division Staff. Despite this
advocacy, the CPUC issued a Proposed
Decision which reinforces a December 31,
2025, sunset date.
CEC, CPUC Building Decarbonization A suite of programs that aim to reduce Greenhouse 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 programs.
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. A higher court recently
ordered the CPUC to readdress the NBT
decision.
CPUC PG&E Billing Modernization Proposal to increase rates to recover costs from the Billing Modernization Initiative.
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.
CPUC Senate Bill 1221
Implementation
Senate Bill that mandates the designation
and establishment of neighborhood
decarbonization zones.
CPUC Self-Generation Incentive
Program (SGIP)
SGIP which provides incentives for emerging
distributed energy resources.
CPUC SoCalGas Microgrid Tariff
Application
Application to give SoCalGas the authority to
administer the Microgrid Optional Tariff
35 6
Joint CCA Managed Cases
Key Agency Topic Summary
program which is applied to non-residential
customers.
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.
Recently, RCEA, along with Ava Energy, filed
two rounds of comments to the CEC
requesting clarification about the
applicability of reliability regulations for EV
charging for CCA-funded charging
infrastructure.
36
STAFF REPORT
Agenda Item # 6.1
AGENDA DATE: October 23, 2025
TO: Board of Directors
PREPARED BY: Beth Burks, Executive Director
SUBJECT: CADEMO Central California Offshore Wind Project Loan Term Modifications 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.
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, 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. It was through this MOU with CC Power that RCEA gained awareness of the CADEMO project.
CADEMO
The CADEMO project 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 plans to use existing 15 MW turbines. Such turbine sizes have never been used for floating offshore wind and are likely the minimum size planned for the Humboldt floating offshore wind area.
After a series of federal executive orders hindered offshore wind development, the CADEMO project was also struggling to remain viable.
To buy the project some time to raise more funding, in June 2025, the RCEA Board authorized a loan to CADEMO in an amount not to exceed $1,100,500 for the PG&E grid interconnection fee, with final loan terms to be approved by an ad hoc Board committee consistent with Board recommendations.
Timing was crucial. Without demonstration of the ability to pay the PG&E interconnection deposit, due July 24, 2025, the project would have lost its interconnection position.
Published October 21, 2025
37
The ad hoc committee approved loan terms that were consistent with the following Board recommendations:
• Assurance the loan was refundable. Communications with PG&E indicated this portion of the interconnection deposit would be refundable. Loan terms specified the mechanism for refundability.
• 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.
The RCEA-CADEMO loan terms were executed in a timely fashion and presented to PG&E along with a draft escrow agreement for the interconnection deposit. PG&E accepted the loan terms as evidence that funds would be available, and the connection position was retained. Since this submittal PG&E has been reviewing the escrow agreement. No funds have been posted by RCEA.
The intent of providing a loan for the interconnection deposit was to buy time to see if the project could further raise funds for study, permitting, development, contracting, and more. Partly due to lobbying efforts by RCEA, support for the CADEMO project was included in the May revise of the State budget approved in September. The State awarded $4 Million to support the CADEMO project.
These funds will be made available to CADEMO through the California Energy Commission.
Summary
At this time the CADEMO team is requesting a revision of the loan terms (see attached letter from CIERCO/CADEMO Corporation). The requested changes would allow CADEMO to deal with cashflow challenges while the State goes through the process of making the budgeted funds available. The requested modification would allow the funds to be used for general project expenditures. To assure adequate provisions for repayment, once funds are received from the State, there would be one of two scenarios, either:
1. The same amount of $1,100,500 million would be applied to the PG&E security posting, with RCEA remaining the beneficiary of the returned funds, or;
2. If monetary security postings are eliminated by PG&E, CADEMO will commit repayment of the loan as soon as State funds are available.
In scenario 1, RCEA funds would remain tied up in the PG&E interconnection deposit beyond December 2025, for up to 1.5 years. For scenario 2, PG&E is considering eliminating the need for the initial security posting based on State support of the project. If this occurs RCEA would be repaid once the State funds become available, which is expected within 4 months.
Similar to the first decision on this item, staff would only recommend entering into an amended loan agreement if the funds are secured either through a refundable interconnection deposit as originally intended, or through repayment using State funds. Confirmation from the California Energy Commission that State funds can be used as described in scenarios 1 and 2 above would be needed prior to releasing any funds.
FINANCIAL IMPACTS
The loan would come out of RCEA financial reserves.
Costs to RCEA thus far have been approximately $40,000 in legal fees. The loan terms include up to $50,000 of transaction costs reimbursement that will cover these fees. Additional, but more minimal 38
legal fees would be incurred to revise the terms. Additionally, RCEA participated in lobbying efforts for the project with funds that were included in within 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
A large focus of the MOU between CADEMO and CC Power is to learn about the key costs drivers 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 an amendment to the CADEMO loan terms in an amount not to exceed $1,100,500 for the CADEMO Offshore Wind Project in central California, and authorize an ad hoc Board committee to approve amended loan terms consistent with Board recommendations.
ATTACHMENTS
CIRCO/CADEMO Corp request letter
Executed loan agreement
39 CADEMO Corporation
c/o CIERCO US Corporation
810 N. Farrell Dr. Palm Springs, CA 92262
Attention Beth Burks
Redwood Coast Energy Authority
633 3rd St
Eureka, CA 95501
Date: 10/15/2025
Subject: Request for Loan Arrangement
Dear Beth,
First, we would like to express our sincere appreciation for the collaboration and support that RCEA has provided for the CADEMO project to date. Your partnership has been an important factor in advancing our shared objective of supporting California’s clean energy goals and responsibly introducing offshore wind power to the state.
CADEMO serves a unique role as the West Coast’s first offshore wind pilot and demonstration project—akin to the Block Island project on the East Coast. Unlike traditional commercial developments that prioritize rapid return on investment, CADEMO’s primary objective is to create long-term value for local communities, stakeholders, and the State of California as a whole.
Background
As you know, the CIERCO team has been working closely with state agencies and supportive stakeholders to secure both funding and permitting support. This has become increasingly important following recent federal Executive Orders, which have slowed or halted all federal offshore wind projects nationwide.
CADEMO remains the only offshore wind project in the nation located entirely in State waters, without viewshed concerns. This unique position enables CADEMO to move forward while federal projects are, as the Executive orders describe under “temporary cessation”, indefinitely. As a result, the project could be operational by 2030–2031, at least five years ahead of the next anticipated commercial development.
We are also pleased to share that CADEMO has secured a $4 million grant from the State of California through the September budget trailer bill. This funding, led by the California State Building Trades was also supported by RCEA with support letter to Pro-Tem McGuire (much appreciated), has been fully appropriated and signed by Governor Newsom. California Energy Commission (CEC) has confirmed that the funds are in formal distribution process for expected release within four to five weeks, with actual payment anticipated to take a further 20-25 days, resulting in funds expected to be at hand before the holidays or early in the new year. We have asked the Commission to issue a letter to this effect, where drafting is now in process.
In parallel, CADEMO continues to progress through Cluster 14 interconnection discussions with PG&E, ensuring compliance with security posting requirements. We are grateful to RCEA for the $1.1 40 CADEMO Corporation
c/o CIERCO US Corporation
810 N. Farrell Dr. Palm Springs, CA 92262
million loan agreement established to support the initial portion of the second PG&E security posting.
In the meantime, the most recent development on PG&E side is that it has recognized the State grant funding support of CADEMO and has appeared willing to consider the State support as sufficient evidence to back the security postings on its own, eliminating the monetary requirement for security.
We expect clarity on this in the next week to 10 days. In the meantime, both security postings have now been aligned and set for December 12, 2025.
Funding Challenges
While this grant represents a significant milestone, CADEMO faces some real challenges (b) and c) would be removed of PG&E accepts non-monetary security postings and hence removes the timing gaps):
a) Short-Term Cash Flow (over the next 3 months): At current, funding process very likely will take us into 2026. The project faces immediate liabilities and needs to progress with key activities to be delivered at the end of the year as well as in Q1. This pertains to making sufficient progress to substantiate continued State funding, as described in the funding ask letter by SBCTC (see attached in ANNEX A). If not, CADEMO may face disruptive measures, which could have lasting damage. b) (Medium-Term Cash Flow (1st half of 2026): Because the grant amount awarded was structured on a calendar-year basis, there will be an approximately six-month period at the beginning of next year without funding to maintain critical project activities. This can be mitigated if PG&E allow for non-monetary securities, making $2.3M available for needed project spend.) c) (Timing Gap: PG&E’s current security posting deadlines fall before the anticipated disbursement of state grant funds. This can be mitigated if PG&E allow for non-monetary securities, which would remove the timing gap in question.)
Request to RCEA
In light of these circumstances, CADEMO respectfully requests that RCEA consider a modification to the existing $1.1 million loan agreement to allow the funds to be used for general project expenditures in the interim period. Once state grant funds are received, there can be one of two scenarios, either:
1. the same amount of $1.1 million would be applied to the PG&E security posting, with RCEA remaining the beneficiary of the returned funds, or;
2. if monetary security postings are eliminated by PG&E, CADEMO will commit repayment of the loan as soon as State funds are available.
Protecting RCEA’s Interests
To ensure RCEA’s position is fully secured, we propose the following measures:
• Amendment Provisions: The loan amendment would specify that repayment is tied directly to the PG&E security posting, ensuring RCEA remains the beneficiary of any returned funds. • Grant Replacement: CADEMO would commit to; a) using the state grant to replace the loan amount immediately upon receipt, or b) repay the loan upon receipt of grants. 41 42
43 44
Execution Version
US-DOCS\161493262.9
CADEMO CORPORATION
LOAN AGREEMENT
$1,110,500.10
THIS LOAN AGREEMENT (this “Agreement”), dated as of August 1, 2025, is made by and among CADEMO CORPORATION, a Nevada corporation (the “Company”) and REDWOOD COAST ENERGY AUTHORITY, a joint powers authority organized and existing under the laws of the State of California (the “Lender”).
The Company and the Lender are hereinafter referred to individually as a “Party” and collectively as the “Parties”.
RECITALS
A. The Company intends to construct a first of its kind floating offshore wind project:
(i) off of the northern coast of California near Lompoc; (ii) within California state waters and the boundaries of the Chumash National Marine Sanctuary; and (iii) with a generation tie line crossing the Vandenberg State Marine Reserve (the “Project”) to deliver power to the Lender.
B. In order: (i) to advance the development of the Project; (ii) to comply with the Pacific Gas & Electric (“PG&E”) Wholesale Distribution Tariff, FERC Electric Tariff Volume No. 4 (“WDT”); and (iii) maintain its interconnection queue position, the Company must post an interconnection deposit in the amount of one million one hundred ten thousand five hundred dollars and ten cents ($1,110,500.10) (the “Interconnection Deposit Amount”).
C. In furtherance of the foregoing, the Lender and the Company desire to enter into this Agreement to provide a loan to the Company in the amount of the Principal Amount (as defined below) to satisfy the Company’s PG&E interconnection deposit requirement.
D. In consideration of the benefits the Company receives from this Agreement, the Company desires to grant to the Lender exclusive option to purchase or receive all of the energy, capacity, and environmental attributes that are or will be generated by, or associated with, the Project (other than any tax credits associated with the development of the Project).
The following is a statement of the rights of the Lender and the conditions to which this Agreement is subject, and to which the Lender, by the acceptance of this Agreement, agrees:
1. Definitions. As used in this Agreement, the following terms, unless the context otherwise requires, have the following meanings:
1.1 “Affiliate” means with regard to a Party, any person that directly or indirectly: (a) controls that Party; (b) is controlled by that Party; or (c) is under common control with that Party; where for each of (a), (b), and (c), “control” is defined as possession of the power to direct or cause the direction of the management and policies of a legally recognizable entity, through direct or indirect majority ownership or minimum percentage ownership that would grant the party a controlling interest in such entity.
45 2
US-DOCS\161493262.9
1.2 “Agreement” shall have the meaning set forth in the preamble.
1.3 “Applicable Laws” shall have the meaning set forth in Section 6.2.
1.4 “Business Day” means a day other than Saturday, Sunday, or a day that is a legal holiday under California law.
1.5 “Company” shall have the meaning set forth in the preamble.
1.6 “CPRA” shall have the meaning set forth in Section 8.12.
1.7 “Debt” shall have the meaning set forth in Section 2.
1.8 “Effective Date” shall have the meaning set forth in the preamble.
1.9 “Escrow Account” shall have the meaning set forth in Section 2.
1.10 “Escrow Agreement” shall have the meaning set forth in Section 3.1.
1.11 “Event of Default” shall have the meaning set forth in Section 4.
1.12 “Interest Rate” shall mean four and three tenths percent (4.3%) per annum.
1.13 “Interconnection Agreement” means the “interconnection agreement” to be entered into by the Company, in accordance with the WDT, for the Project, whether pursuant to Queue Position #2850-WD or otherwise.
1.14 “Interconnection Deposit Amount” shall have the meaning set forth in paragraph B of the Recitals.
1.15 “Lease” shall have the meaning set forth in Section 5.6.
1.16 “Lender” shall have the meaning set forth in the preamble.
1.17 “Party” shall have the meanings set forth in the preamble.
1.18 “PG&E” shall have the meaning set forth in paragraph B of the Recitals.
1.19 “PG&E Security Obligation” shall have the meaning set forth in Section 2.
1.20 “Principal Amount” means the total amount loaned to the Company under this Agreement, as set forth on the first page of this Agreement.
1.21 “Project” shall have the meaning set forth in paragraph A of the Recitals.
1.22 “Repayment Date” means the earlier of: (a) December 12, 2025, as such date may be amended in accordance with Section 8.4; and (b) the date on which all amounts due and payable to the Lender hereunder have been fully and indefeasibly paid to the Lender.
46 3
US-DOCS\161493262.9
1.23 “Site” shall have the meaning set forth in Section 5.6.
1.24 “Transaction Costs” shall have the meaning set forth in Section 7.1.
1.25 “WDT” shall have the meaning set forth in paragraph B of the Recitals.
2. Borrowing of Funds. Subject to the terms and conditions hereof, including satisfaction of the condition precedent set forth in Section 3 below: (a) the Lender will loan an amount to the Company, within five (5) Business Days after the date hereof, equal to the Principal Amount, which amount, plus all accrued but unpaid interest thereon (which shall accrue monthly) from the Effective Date of this Agreement until paid at an annual interest rate, calculated on the basis of a 360 day year, equal to the Interest Rate, shall be repaid (or with respect to such interest, paid) to the Lender by the Company in accordance with the terms hereof; (b) the funds of such loan shall be used solely and exclusively: (i) to fund the Company’s security posting requirements under its WDT application for Queue Position # 2850-WD (the “PG&E Security Obligation”); and (ii) to pay Transaction Costs; and (c) as hereby directed by the Company, the Lender: (x) shall deposit a portion of such loan proceeds, in an amount equal to the Interconnection Deposit Amount, directly into an account maintained by Computershare Trust Company, N.A. and governed by the Escrow Agreement (the “Escrow Account”); and (y) shall use and/or disperse the remainder of such loan proceeds in accordance with the terms of the Escrow Agreement. The Company may elect either to pay: (x) the Principal Amount, and all accrued, but unpaid, interest thereon (the “Debt”), on the Repayment Date; or (y)(i) interest on the Principal Amount, as accrued on a monthly basis; and (ii) the Principal Amount on the Repayment Date, in either case at the principal office of the Company or by mail to the registered address of the Lender.
3. Escrow Account.
3.1 As a condition precedent to the Lender making any amounts available to the Company hereunder, the Lender shall enter into an escrow account agreement with PG&E, substantially in the form attached hereto as Exhibit A and otherwise acceptable to the Lender (the “Escrow Agreement”): (a) into which the Lender will fund an amount equal to the Interconnection Deposit Amount, for the benefit of PG&E, to satisfy the PG&E Security Obligation; and (b) that will provide for, among other things, any and all disbursements of amounts held in the Escrow Account (other than disbursements to be paid to PG&E in accordance with the WDT), to be paid directly to the Lender, which disbursements shall be retained by the Lender and applied to the repayment of amounts that the Company owes to the Lender hereunder.
3.2 The Lender shall have a priority right to any interest realized within the Escrow Account to facilitate repayment of the Principal Amount and any accrued interest thereon.
3.3 The Company hereby irrevocably grants to the Lender, until all amounts due and payable to the Lender by the Company hereunder (including the repayment of the Principal Amount, and payment of all interest, costs, and other amounts payable by the Company hereunder) have been fully and indefeasibly paid to the Lender, the sole and exclusive right, subject to PG&E’s express rights under the Escrow Agreement, to control and direct the disbursement of funds on deposit in the Escrow Account, without the consent, direction, or agreement of the Company
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3.4 The Company shall pay all fees required to establish and maintain the Escrow Account.
4. Defaults. If any of the following circumstances (an “Event of Default”) occurs and is not cured by the applicable date (if any) set forth below, then the Lender shall have the right, upon written notice to the Company, to declare the Debt, and any and all other amounts due to the Lender hereunder, immediately due and payable (which amounts shall become due and payable, without further action, upon the Lender’s issuance of such notice) (or if an Event of Default under Section 4.9 occurs, then the Debt, and any and all other amounts due to the Lender hereunder, shall automatically become due and payable without any further action of the Lender or any other person):
4.1 any false or misleading representation made by the Company under, or any failure to perform any material covenant or obligation of the Company under, this Agreement;
4.2 the assignment or transfer of all or any portion of this Agreement by the Company, or the assignment, transfer, or encumbrance of Queue Position #2850-WD, the Interconnection Agreement, any other Service Agreement (as defined in the WDT) relating to Queue Position #2850-WD, or any of its rights hereunder or thereunder, other than with the written consent of the Lender (which consent may be withheld in the Lender’s sole discretion);
4.3 the Company consolidates or amalgamates with, or merges with or into, or transfers all or substantially all of its assets to, another entity and, at the time of such consolidation, amalgamation, merger, or transfer, the resulting, surviving, or transferee entity fails to assume all the obligations of the Company under this Agreement;
4.4 a material breach of the WDT by the Company, or an event of default of the Company under the WDT, in connection with Queue Position #2850-WD or the Company’s application to PG&E in connection therewith;
4.5 the Company undergoes a direct or indirect change of control;
4.6 the failure of the Company to maintain Queue Position #2850-WD with PG&E;
4.7 the Company abandons the Project;
4.8 any relevant permitting authority denies any required permit for the siting, development, construction, or operation of the Project; or
4.9 the Company: (a) becomes insolvent or bankrupt; (b) is unable to pay its debts as they become due or admits in writing its inability to pay its debts; (c) commences insolvency, receivership, reorganization, or bankruptcy proceedings; or (d) has insolvency, receivership, reorganization, or bankruptcy proceedings commenced against it.
Upon the occurrence of an Event of Default, the Company shall have five (5) Business Days to present a plan to the Lender to cure such Event of Default. If the Lender accepts the Company’s plan to cure such Event of Default, then the Company shall have up to ninety (90) days to cure
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such Event of Default. If the Lender does not accept the Company’s plan to cure such Event of Default (or an Event of Default under Section 4.9 occurs), then the then the Debt, and any and all other amounts due to the Lender hereunder, shall become due and payable.
5. Representations and Warranties. The Company hereby represents and warrants that:
5.1 the Company is a corporation that is duly organized, validly existing, and in good standing under the laws of the State of Nevada, and is duly qualified to do business and is in good standing in every other jurisdiction where the nature of its business requires it to be qualified;
5.2 the Company is not subject to any bankruptcy, insolvency, or other similar proceedings;
5.3 the Company has full power, authority, and legal right to execute, deliver, and perform the obligations set forth in this Agreement, and the execution, delivery, and performance hereof has been duly authorized by all necessary corporate action;
5.4 the execution, delivery and performance of this Agreement: (a) is not in contravention of any material agreement or material indenture by which the Company is bound; (ii) does not require any shareholder approval, or any approval or consent of, or filing or registration with, any governmental body or regulatory authority or agency, or any approval or consent of any trustees or holders of any of its indebtedness or obligations, unless such approval or consent has been obtained; and (iii) does not contravene any law, regulation, judgment, or decree applicable to it in any material respect or its operating documents;
5.5 this Agreement is a legal, valid, and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, moratorium, reorganization, or other similar laws affecting the enforcement of creditors’ rights and subject to general equitable principles;
5.6 the Company executed on August 21, 2019, and submitted to the California State Lands Commission on August 21, 2019, that certain Application No. A2222 (the “CSLC Application”), which application process will lead to, once the application process has been successfully completed, in a lease agreement with the California State Lands Commission with respect to a portion of the seafloor on the continental shelf off the coast of the Vandenberg Space Force Base on which the Project will be built (the “Site”);
5.7 the Company: (a) is in compliance with, and not in default under, its organizational documents; and (b) is in compliance with all Applicable Laws that are applicable to it, the Project, Queue Position #2850-WD, or the Company’s application relating thereto, and no notices of violation of any Applicable Law relating to the Project, the Lease, or the Site have been issued or received by the Company or any of its Affiliates;
5.8 the Company is not an investment company, or a company controlled by an investment company, within the meaning of the Investment Company Act of 1940, as amended;
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5.9 the Company has not engaged principally, or as one of its principal activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (as defined or used in Regulations T, U, or X of the Federal Reserve Board), and no part of the proceeds of the loan provided hereunder will be used by the Company to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock or otherwise in violation of Regulations T, U, or X of the Federal Reserve Board; and
5.10 (a) the CSLC Application is active and in good standing; and (b) the Company is not in default under the WDT with respect to Queue Position #2850-WD (or its application with respect to Queue Position #2850-WD).
6. Affirmative Covenants of the Company. The Company shall:
6.1 maintain its corporate existence and its good standing in its jurisdiction of incorporation;
6.2 comply with all applicable federal, state, and local laws, statutes, ordinances, rules, regulations, and orders and decrees of any courts or administrative bodies or tribunals, including, without limitation, employment discrimination and prevailing wage laws (collectively, “Applicable Laws”);
6.3 use its reasonable efforts to ensure that any and all disbursements from the Escrow Account (other than those disbursements to PG&E in accordance with the Escrow Agreement) are made solely to the Lender;
6.4 not enter into any agreement, contract, or instrument relating to the interconnection of the Project with PG&E’s electrical grid without the prior written consent of the Lender, which consent the Lender shall not unreasonably withhold if necessary to maintain the Queue Position in good standing;
6.5 without the prior written consent of the Lender, which consent the Lender shall not unreasonably withhold if necessary to maintain the Queue Position in good standing, permit or authorize PG&E to perform any work, studies, procurement, or construction, or otherwise incur any costs that may be attributable to the Company’s request for interconnection under the WDT, to the extent such work, studies, procurement, construction, or other actions could reasonably be expected to result in PG&E drawing on amounts in the Escrow Account to recover costs associated therewith;
6.6 maintain: (a) the Queue Position in good standing, and comply with all of the Company’s obligations under the WDT with respect the Queue Position and its applicable relating thereto, including the timely performance of all actions required to maintain the Queue Position in good standing; and (b) the CSLC Application in good standing, and comply with all of the Company’s obligations with respect to the CSLC Application, including the timely performance of all actions required to maintain the CSLC Application in good standing;
6.7 use its reasonable efforts to secure additional time to negotiate and execute the Interconnection Agreement with PG&E until: (a) funding is secured to support the continued
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interconnection posting requirements under the Interconnection Agreement; or (ii) the Lender determines that the State of California, its agencies, or any third party will not allocate sufficient funding to the Company: (A) to allow the Company to continue to meet the posting requirements of the Interconnection Agreement; and/or (B) advance the development of the Project;
6.8 provide support for community engagement, at the Company’s cost and the Lender’s reasonable request, to aid in building support for, awareness of, and learnings from the Project;
6.9 use reasonable efforts to engage and negotiate with the North Coast and Humboldt County tribes, workforce, trade unions, and ports in pursuit of a community benefits agreement to connect the Project’s equipment and services procurement, environmental study and monitoring, development, construction, operations and maintenance with such local communities through engagement in training, apprenticeships, hiring, and procurement; and
6.10 collaborate with the Lender to engage, at the request of the Lender, in legally permissible lobbying efforts with the State of California and its relevant lawmakers and agencies, and in particular the following offices: Office of the Governor, California Energy Commission, State Lands Commission, and California Public Utilities Commission, to support the Project’s successful development and ensure repayment of the Debt to the Lender.
7. Expenses; Indemnification.
7.1 The Company shall pay or reimburse the Lender for all reasonable and documented out-of-pocket expenses incurred by the Lender, including the reasonable fees, charges and disbursements of counsel for the Lender, in connection with: (a) the negotiation, preparation, execution, delivery and administration of this Agreement, the Escrow Agreement, or the Escrow Account, including any post-closing requirements, or any amendments, modifications or waivers of the provisions of this Agreement or the Escrow Agreement (whether or not the transactions contemplated thereby shall be consummated); and (b) the enforcement, collection or protection of its rights in connection with this Agreement, the Escrow Agreement, or the Escrow Account, including its rights under this Section 7, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of this Agreement (such expenses, the “Transaction Costs”); provided that: (x) the Company’s obligation to reimburse the Lender for such Transaction Costs shall not become effective until the earlier of: (i) the date on which the Company posts, or has posted on its behalf, the Second Posting of Interconnection Financial Security pursuant to Section 6.9.4 of Attachment 1 (Generator Interconnection Procedures) to the WDT in connection with Queue Position #2850-WD, and (ii) any sale of the Company (the “Transaction Cost Reimbursement Condition”); and (y) (z) the Company shall not be obligated to reimburse the Lender for Transaction Costs in excess of $50,000.
7.2 The Company shall indemnify and hold the Lender harmless from, any and all losses, claims, damages, penalties, liabilities and related out-of-pocket expenses, including the reasonable and documented fees, charges and disbursements of any counsel for the Lender, incurred by or asserted against the Lender arising out of, in connection with, or as a result of: (a) the execution or delivery of this Agreement, the Escrow Agreement, the Escrow Account, or any agreement or instrument contemplated thereby, the performance by the parties hereto of their
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respective obligations thereunder or the consummation of the transactions contemplated hereby; or (b) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether the Lender is a party thereto; provided that such indemnity shall not, as to the Lender, be available to the extent that such losses, claims, damages, penalties, liabilities or related expenses are due to the gross negligence or willful misconduct of the Lender.
7.3 To the extent permitted by applicable law, the Company shall not assert, and hereby waives and acknowledges that no other person shall have, any claim against any the Lender, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, the Escrow Agreement or any agreement or instrument contemplated hereby, the transactions contemplated hereunder, or the use of the proceeds thereof.
7.4 All amounts due under this Section 7 shall be payable not later than ten (10) Business Days after written demand thereof.
8. Miscellaneous.
8.1 Waiver and Amendment. Any provision of this Agreement may be amended, waived or modified only upon the written consent of the Company and the Lender.
8.2 Transaction Costs. The Lender may invoice the Company for all Transaction Costs incurred by the Lender after the Transaction Cost Reimbursement Condition has been satisfied. The Company shall repay the Transaction Costs within thirty (30) days of receipt of such invoice. Any Transaction Costs that are not repaid pursuant to the Lender’s invoice within such time period shall be added to the Principal Amount. All expenses incurred by the Company in connection with this Agreement, including attorneys’ fees, shall be paid by the Company.
8.3 Exclusivity. The Company shall not, and shall not permit any of its Affiliates to, sell, deliver, transfer, or provide any energy, capacity, or environmental attributes associated with or attributable to the Project, the Site, or the Queue Position to any person other than the Lender without first: (a) offering such energy, capacity, or environmental attributes to the Lender; and (b) negotiating with the Lender exclusively and in good faith, for a period of ninety (90) days, to agree upon and execute an agreement for the purchase of such energy, capacity, or environmental attributes. If, at the end of such ninety (90) day period, the parties are unable to agree on terms and conditions for the purchase of such energy, capacity, or environmental attributes, then the Company or its Affiliate is free to market such energy, capacity, or environmental attributes to a third party; provided that: (x) before agreeing to any transaction for such energy, capacity, or environmental attributes with a third party, the Company must first present that terms and conditions of such transaction to the Lender and offer to enter into a transaction with the Lender for such energy, capacity, or environmental attributes on such terms; and (y) may enter into such transaction with such third party only if the Lender declines to enter into the proposed transaction, or fails to respond to the Company within twenty (20) days after receiving such offer from the Company.
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8.4 Prepayment. The Company shall have the right to repay the Debt on any date prior to the Repayment Date upon no less than five (5) Business Days’ prior written notice to the Lender.
8.5 Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed by, and construed in accordance with, the laws of the State of California, without regard to conflict of law principles that would result in the application of any law other than the law of the State of California. Each party hereto consents to exclusive jurisdiction and venue in the Superior Court of California, County of Humboldt, if in state court, and in the United States District Court for the Northern District of California, if in United States federal court, for any suit or proceeding relating to, arising out of or arising under this Agreement, including, but not limited to, its existence, its formation, or any stipulation herein; such courts shall have the sole and exclusive in personam, subject matter and other jurisdiction in connection with such suit or proceeding and venue shall be appropriate for all purposes in such courts.
8.6 Dispute Resolution. Any dispute between the Parties in connection with or arising out of this Agreement shall, to the extent possible, be settled amicably by negotiation between executives of the Parties, to be conducted in good faith, within ten (10) Business Days from the date of written notice by either Party of the existence of such a dispute. If the Parties are unable to resolve the dispute within such time period, then the Parties shall submit the dispute to non-binding mediation prior to seeking any and all available remedies available to it at law or in equity. The dispute shall be mediated within thirty (30) days from the date that a written request for mediation is received by any Party in accordance with this Section 8.6 and such mediation shall take place in Humboldt County, California.
8.7 Notices. Any notice required or permitted hereunder shall be given in writing and shall be conclusively deemed effectively given upon personal delivery or delivery by courier, or on the first business day after transmission if sent by confirmed facsimile transmission or electronic mail transmission, or five business days after deposit in the United States first class mail, by registered or certified mail, postage prepaid, addressed as set forth below the Company’s or the Lender’s name, as applicable, on the signature page hereto, or at such other address as the Company or the Lender may designate by 10 business days’ advance written notice to the other party hereto.
8.8 Severability. If one or more provisions of this Agreement are held unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.
8.9 Heading; References. All headings used herein are used for convenience only and shall not be used to construe or interpret this Agreement. Except where otherwise indicated, all references herein to Sections refer to Sections hereof.
8.10 Entire Agreement. This instrument represents the entire agreement between the parties hereto with respect to this Agreement and its terms and conditions.
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8.11 Counterparts. This Agreement may be executed in counterparts, all of which together will constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.
8.12 Confidentiality. This Agreement, the terms and conditions hereof, and any documents or information exchanged between the Parties in connection with this Agreement or the Parties’ obligations hereunder, shall be deemed confidential information, and the rights and obligations of the Parties with respect thereto shall be governed by that certain Non-Disclosure Agreement, dated as of July 29, 2025, between the Parties. The Company acknowledges and agrees that the Lender is subject to the requirements for public disclosure under the California Public Records Act, California Government Code Section 7920, et. seq, (“CPRA”), and thus may be legally required to disclose information that is not protected from disclosure under the CPRA.
No press releases or publicity shall be circulated regarding this Agreement or the relationship between the Parties without the prior written approval of all Parties.
8.13 Electronic Execution of Certain Other Documents. The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation assignments, assumptions, amendments, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Lender, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. [Remainder of Page Intentionally Left Blank]
54 Docusign Envelope ID: DDFB5D09-ABAD-41 FC-BDEF-F1 FEFFBD69F9 Execution Version
IN WITNESS WHEREOF, the Company has caused this Agreement to be issued as of the Effective Date.
Company:
Lender:
CADEMO CORPORATION
a Nevada corporation
s· db
By:
Mikael Jakobsson, President
Address: c/o Hall & Evans, LLC
1160 North Town Center Drive,
Suite 330
Las Vegas, NV 89144
REDWOOD COAST ENERGY AUTHORITY
a joint powers authority organized and existing
under the laws of the State of California
By:
Name: Elizabeth Burks
Title: Executive Director
Address: 633 Third Street
Eureka, CA 95501
Telephone: 707-269-1700
Email:
[Signature Page to Loan Agreement]
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56 CEC - CADEMO Project Information
BUDGET AND SPEND PROFILE
October 21th 2025
A CIERCO Project
October 2025 2
CADEMO BUDGET - COMMENTS
Project need urgently to resolve a cumulated accounts payable account with creditors listed on slide 4. Budget variance for consideration is a PG&E non-refundable security deposit of $1.2M, due on December 12th, 2025 (highlighted in yellow on slide 3). The refundable deposit portion to PG&E security posting is also due of December 12th 2025 , will be resolved with an external funding solution with RCEA, and does not impact the CEC funding. If the non-refundable security posting is required, funding will reach is to the end of June 2025, which would likely result in a required draw down in full, (more or less) in December 2025. If the non-refundable security posting is not required, projects spend of additional $1.2M allows reach to beginning of October 2025, which could allow split draw down with a $1M in May/June. Staffing spend per month will increase from previous hibernation period, as tasks now needs to progress efficiently.
The CADEMO budget and spend is a navigation between elements of current and possibly future funding support. Should there be outlook for continued support, planning can actively include and progress the work far more aggressively, where otherwise spending will need to be considerate of needed time to secure. Unfortunately, commitments of spend sometimes are required over 6 months in advance where availability of ships and equipment requires advance notice.
October 2025 3
CADEMO BUDGET - OVERVIEW
Account (15/09/2025) Oct-2025 Nov-2025 Dec-2025 Jan-2026 Feb-2026 Mar-2026 Apr-2026 May-2026 Jun-2026 Jul-2026 Aug-2026 Sep-2026 Total Starting Cash 0
CADEMO - Wells Fargo 13,000 13,000
Total Cash 13,000 0 0 0 0 0 0 0 0 0 0 0 13,000
Current Assets /Liabilities
Accounts Payable CADEMO Corp (1,180,006) (1,180,006)
Income / Grants 0
CEC Grant 4,000,000 4,000,000
RCEA loan 1,100,000 1,100,000
Project Costs 0
PG&E Grid Deposit - Part 1 (refundable) (1,100,000) (1,100,000) PG&E Grid Deposit - Part 2 (non-refundable) (1,200,000) (1,200,000) External Project Costs 0 0 (110,000) (37,000) (42,000) (142,000) (62,000) (62,000) (102,000) (247,000) (217,000) (217,000) (1,238,000) Current Assets / Liabilities (1,180,006) 0 2,690,000 (37,000) (42,000) (142,000) (62,000) (62,000) (102,000) (247,000) (217,000) (217,000) 381,994 Total Resources (1,167,006) 0 2,690,000 (37,000) (42,000) (142,000) (62,000) (62,000) (102,000) (247,000) (217,000) (217,000) 394,994 0 Less Cost of Sales 0
DSA Staffing Costs (Cierco Corp) 103,500 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 115,000 1,598,500 DSA Expenses 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 105,000 Legal and Professional Fees 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 28,000 Direct Expenses 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 21,000 Sundries 500 500 500 500 500 500 500 500 500 500 500 7,000 Web Hosting 250 250 250 250 250 250 250 250 250 250 250 3,500 Total Cost of Sales 0 115,250 126,750 126,750 126,750 126,750 126,750 126,750 126,750 126,750 126,750 126,750 1,763,000 Gross Profit (1,167,006) (115,250) 2,563,250 (163,750) (168,750) (268,750) (188,750) (188,750) (228,750) (373,750) (343,750) (343,750) (1,368,006) Less Overheads
Accountancy Fees 500 500 500 500 500 500 500 15,000 500 500 500 20,500 Bank/Finance Charges 400 400 400 400 400 400 400 400 400 400 400 4,800 RCEA Loan Interest 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000 Total Overheads 0 900 900 8,400 8,400 8,400 8,400 8,400 22,900 8,400 8,400 8,400 115,300 Total Expenses 0 900 900 8,400 8,400 8,400 8,400 8,400 22,900 8,400 8,400 8,400 115,300 Net Profit (1,167,006) (116,150) 2,562,350 (172,150) (177,150) (277,150) (197,150) (197,150) (251,650) (382,150) (352,150) (352,150) (1,483,306) Total
Reserves Oct-2025 Nov-2025 Dec-2025 Jan-2026 Feb-2026 Mar-2026 Apr-2026 May-2026 Jun-2026 Jul-2026 Aug-2026 Sep-2026 (1,483,306) Cumulative Position (1,167,006) (1,283,156) 1,279,194 1,107,044 929,894 652,744 455,594 258,444 6,794 (375,356) (727,506) (1,079,656) Budget Summary US$
CADEMO Corporation
October 2025 4
CADEMO BUDGET – ACCOUNTS PAYABLE
CADEMO ACCOUNTS PAYABLE - LIABILITIES (10-31-2025)
Invoice Date Invoice
Reference Supplier Description USD Monthly DSA resource 12/31/2024 Floventis Energy DSA Services - Aug - Dec 2024 360,730.21 72,146.04 3/31/2025 Cierco US Corp DSA Services - Jan-March 2025 162,536.79 54,178.93 6/30/2025 Cierco US Corp DSA Services - Apr-June 2025 159,945.73 53,315.24 9/30/2025 Cierco US Corp DSA Services - July-Sept 2025 160,566.80 53,522.27 10/1/2025 Cierco US Corp DSA Services - October 2026 98,000.00 98,000.00 29/02/2025 ICF -Jones & Stokes Marine Mammal Survey & Report 103,226.08 6/30/2025 CACIB Financial advisory support 85,000.00
9/30/2025 RCEA Loan Legal Fees 50,000.00
1,180,005.61
October 2025 5
CADEMO BUDGET – EXTERNAL PROJECT COSTS
CADEMO PROJECT COSTS - EXTERNAL
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Total end
June
Total end
September
Santa Inez Chumash 50,000 50,000 50,000 150,000 150,000 CSLC 50,000 50,000 25,000 25,000 25,000 100,000 175,000 ICF 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 60,000 90,000 Power Engineers 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 30,000 45,000 Gridbright 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 12,000 18,000 ELDP application 30,000 - 30,000
Project legal costs 5,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 65,000 95,000 Project Govt relations 5,000 10,000 10,000 10,000 10,000 10,000 55,000 55,000 Wind Measurement 5,000 5,000 5,000 5,000 5,000 15,000 15,000 15,000 25,000 70,000 Environmental Studies 20,000 20,000 20,000 150,000 150,000 150,000 60,000 510,000 Total - - 110,000 37,000 42,000 142,000 62,000 62,000 102,000 247,000 217,000 217,000 557,000 1,238,000 557,000 1,238,000
October 2025 6
CADEMO BUDGET – DELIVERABLES
Deliverables:
December 2025:
1. Permitting strategy, will provide direction of permitting options new project description for application.
2. CADEMO value proposition analysis
3. Outlined Technology Assessment Plan
March 2026:
4. Develop detailed EIR studied plan and overview
May 2026:
5. Detailed spending and draw down schedule for 2026/27 budget
6. Ports - Draft execution plan
7. Updated Local Stakeholder Enegagement plan
8. LCOE update
END OF SLIDES
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STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: October 23, 2025
TO: Board of Directors
PREPARED BY: Jocelyn Gwynn, Senior Power Resources Manager SUBJECT: Hatchery Road Power Purchase Agreement
BACKGROUND
In 2020 and 2021, RCEA contracted with Renewable Properties for 4 MW of Hatchery Road solar projects under the Feed-In Tariff Program. In 2023, the four power purchase agreements (PPA) were terminated by mutual agreement due to the projects being saddled with unexpected, exorbitant interconnection costs by PG&E that could not be absorbed by the Feed-In Tariff PPA prices. Since then, the projects reapplied for interconnection without triggering the extra costs, enabling them to offer the solar projects along with battery storage to RCEA’s Local Distributed Energy Storage Resources Request for Offers (RFO). Staff brought the offer to the RFO subcommittee who approved it for shortlisting in June.
SUMMARY
Staff are seeking approval of the PPA with Renewable Properties for the Hatchery Road Solar and Storage projects, consisting of four 1-MW solar facilities co-located with a 4-MW / 16-MWh battery energy storage system (BESS). All five facilities will have separate points of interconnection and be operated independently, but subject to a dynamic interconnection limit on the collective export capacity. Renewable Properties has secured site control from the landowner, executed interconnection agreements with PG&E, and obtained a conditional use permit from the County of Humboldt for the solar facilities. For the battery storage facility they have secured site control, submitted an interconnection request, and are preparing a modification request to the existing conditional use permit.
The expected commercial operation dates are May 2027 for the solar facilities and June 2028 for the storage facility. It is anticipated that the BESS would typically be operated to charge during the day when solar energy is abundant, and discharge in the evening as the solar goes offline and the grid’s energy needs and market prices rise. However, as more four-hour storage projects come into operation on the California grid, this operational strategy could include more frequent morning discharging to capture price arbitrage value. Alternatively, the battery could be operated to prioritize avoided greenhouse gas emissions, by timing discharge to the grid to avoid operation of the most emission-intensive generating resources elsewhere on the grid.
Additionally, the storage facility will be able to provide ancillary grid services such as 57
maintaining proper frequency and voltage, so the operational strategy would seek to optimize these different use cases to the extent they cannot be captured simultaneously.
The Hatchery Road projects will initially not provide resource adequacy (RA), due to the lengthy and costly process required for RA deliverability study and network upgrades. However, the PPA allows for provision of RA in the future, to the extent that deliverability becomes available for the project to acquire. The seller would realize a higher contract price under the PPA if and when RA is provided to RCEA.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The Hatchery Road projects support the following RCEA Strategic Plan goals:
• 4.1.1 Maximize the Use of Local Renewable Energy to the Extent Technically and Economically Feasible and Prudent.
• 4.1.2 Minimize Greenhouse Gas Emissions Associated with RCEA’s CCE Program. • 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program. • 4.1.7.2 Develop Distributed Generation.
• 4.1.8.2 Procure Local Solar Energy.
EQUITY IMPACTS
The addition of local clean generation resources could reduce run time of the local thermal power plants, thereby decreasing air quality impacts to the surrounding communities.
FINANCIAL IMPACT
Being a local, small-scale project, the pricing for Hatchery Road Solar and Storage is more expensive than the larger-scale projects RCEA has under contract. Current modeling shows that the project would cost $4-6 million more than the forecasted value of the products it would provide in the first half of the delivery term. Despite this, the contract will hedge against price risk in the energy and RPS markets by fixing more of RCEA’s procurement costs under long-term generation assets. These costs will be built into RCEA’s financial model and budget starting in fiscal year 2026-2027.
STAFF RECOMMENDATION
Approve Resolution 2025-6 Approving the Form of and Authorizing Execution of the Power Purchase Agreement with RPCA Solar 5 LLC.
ATTACHMENTS
Resolution 2025-6
Power Purchase Agreement with RPCA Solar 5 LLC – Cover Sheet Note: The RCEA Power Purchase Agreement with RPCA Solar 5 LLC was not available at the time of agenda publication. It will be available at www.RedwoodEnergy.org and at RCEA offices at 633 Third Street by 5 p.m. on Tuesday, October 21, 2025. 58
RESOLUTION NO. 2025-6
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDWOOD COAST ENERGY
AUTHORITY APPROVING THE FORM OF AND AUTHORIZING EXECUTION OF THE HATCHERY ROAD POWER PURCHASE AGREEMENT WITH RPCA SOLAR 5 LLC WHEREAS, Redwood Coast Energy Authority (“RCEA”) issued the Request for Offers for Local Distributed Energy Storage Resources on December 19, 2024 (“RFO”), which was open to co-located generation and storage resources; and
WHEREAS, the Hatchery Road Solar and Storage project (“Project”) was submitted into RCEA’s RFO by Renewable Properties and subsequently approved for shortlisting by the Board RFO subcommittee; and
WHEREAS, RPCA Solar 5 LLC (“Seller”) is a project company owned by Renewable Properties; and WHEREAS, under the Hatchery Road Power Purchase Agreement (“Agreement”), Seller will provide RCEA with energy, renewable energy certificates, ancillary services, and potentially resource adequacy in exchange for an escalating price over the term, thereby securing more of RCEA’s power portfolio under long-term contract and contributing to RCEA’s local development goals; and NOW, THEREFORE, the Board of Directors of the Redwood Coast Energy Authority resolves as follows:
1. The Hatchery Road Power Purchase Agreement between Redwood Coast Energy Authority and RPCA Solar 5 LLC is hereby approved.
2. The RCEA Executive Director is authorized to execute the Agreement substantially in the form attached hereto as Appendix A on behalf of RCEA, and in consultation with legal counsel, is authorized to approve any needed future amendment to the Agreement so long as the term, volume, and price are not changed and the amendment does not fundamentally change the business terms of the Agreement or measurably increase risk exposure for RCEA.
Adopted this 23rd day of October 2025.
ATTEST:
Scott Bauer, RCEA Board Chair Lori Taketa, Clerk of the Board Date: _________________________ Date: ________________________ 59
CLERK'S CERTIFICATE
I hereby certify that the foregoing is a true and correct copy of Resolution 2025 - 6 passed and adopted at a regular meeting of the Redwood Coast Energy Authority, County of Humboldt, State of California, held on the 23rd day of October 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
Clerk of the Board, Redwood Coast Energy Authority
60
Appendix A:
Renewable Plus Storage Power Purchase Agreement
Between RPCA Solar 5, LLC, and Redwood Coast Energy Authority Note: A copy of this agreement can be found online at
https://redwoodenergy.org/about/governance/public-meetings/. 61 This page
intentionally
left blank.
62 Approval Draft
Exhibit R - 1
RENEWABLE PLUS STORAGE POWER PURCHASE AGREEMENT
COVER SHEET
Seller: RPCA Solar 5, LLC, a California limited liability company.
Buyer: Redwood Coast Energy Authority, a California joint powers authority.
Description of Facility: A 3.96 MW solar photovoltaic electric generating facility combined with a 4 MW / 16 MWh lithium iron phosphate battery energy storage facility.
Delivery Term: Commences on the Generating Facility Commercial Operation Date and ends on the twentieth (20th) anniversary of the Storage Facility Commercial Operation Date.
Milestones:
Milestone Generating Facility
Completion Date
Storage Facility
Completion Date
Evidence of Site Control As of Effective Date As of Effective Date Conditional Use Permit obtained As of Effective Date
Phase I Interconnection Study results (or equivalent)
obtained As of Effective Date
Phase II Interconnection Study results (or equivalent)
obtained As of Effective Date TBD
Interconnection Agreement executed As of Effective Date Major equipment procured
Generating Facility Expected Construction Start Date NA Storage Facility Expected Construction Start Date NA
Initial Synchronization NA
Network Upgrades completed NA TBD
Generating Facility Expected Commercial Operation Date 5/1/2027 NA Storage Facility Expected Commercial Operation Date NA 2/1/2028 Expected Energy:
Contract Year Expected Energy
1 7808
2 7651
3 7628
4 7606
63 Exhibit S - 1
5 7583
6 7560
7 7537
8 7515
9 7492
10 7470
11 7447
12 7425
13 7403
14 7380
15 7358
16 7336
17 7314
18 7292
19 7270
20 7249
21 7229
22, if applicable 7205
Guaranteed Efficiency Rate:
Contract Year1 Guaranteed Efficiency Rate
1 N/A
2 %
3 %
4 %
5 %
6 %
7 %
8 %
9 %
10 %
11 %
12 %
1 The Guaranteed Efficiency Rate will not apply until the occurrence of the Storage Facility Commercial Operation Date and the Guaranteed Efficiency Rates stated in this table will start in the Contract Year in which the Storage Facility Commercial Operation Date occurs which may not align with the way the table is included herein. 64 Exhibit S - 1
Contract Year1 Guaranteed Efficiency Rate
13 %
14 %
15 %
16 %
17 %
18 %
19 %
20 %
21 %
22 %
Generating Facility Guaranteed Construction Start Date:
Generating Facility Guaranteed Commercial Operation Date:
Generating Facility Commercial Operation Date Deadline:
Storage Facility Guaranteed Construction Start Date:
Storage Facility Guaranteed Commercial Operation Date:
Storage Facility Commercial Operation Date Deadline:
Guaranteed Generation Capacity: 3.96 MW
Guaranteed Storage Capacity: 4 MW for four (4) hour discharge Storage Capacity Default Threshold: MW for four (4) hour discharge Contract Price:
Generation Rate: $ per MWh, escalating at % annually with such escalation effective on the first day of each Contract Year
Storage Rate: $ per kW-month, escalating at % annually with such escalation effective on the first day of each Contract Year, provided, the amount shall be increased to $ /kW-month or its equivalent escalated value based on the current Contract Year, rate shall escalate at % annually on and after the RA Guarantee Date Product: (select options below as applicable)
Generating Facility Energy
Discharging Energy
65 Exhibit S - 1
Green Attributes (Portfolio Content Category 1)
Storage Capacity
Capacity Attributes associated with the Storage Facility ☐ Full Capacity Deliverability Status
Energy Only Deliverability Status, subject to the provisions of Section 3.7 Scheduling Coordinator: Buyer or Buyer’s Agent
Generating Facility Development Security: $
Storage Facility Development Security: $
Generating Facility Performance Security: $
Storage Facility Performance Security: $
Compliance Expenditure Cap: $
66 Hatchery Road Power Purchase
Agreement
RCEA Board of Directors Meeting
October 23, 2025
Jocelyn Gwynn
Senior Power Resources Manager
Background
• Feed-In Tariff PPAs
• Interconnection challenges
• Local Distributed Energy Storage RFO
•Developer: Renewable Properties
•Generation: 4 MW solar
photovoltaic (four 1-MW units)
•Storage: 4 MW / 16 MWh lithium
iron-phosphate
•Products: energy, renewable
energy certificates, ancillary
services, potentially resource
adequacy
Hatchery Road Solar and Storage PPA
•Commercial operation dates:
May 2027 for solar
June 2028 for storage
•Delivery Term: ~20 years
•Price: escalating annually at fixed rate
•Economics: negative net present value
Development Status
Generation Facilities
Site control secured
Conditional use permit secured
Interconnection agreements signed
Storage Facility
Site control secured
Modification to permit in process
Interconnection request submitted
STAFF REPORT
Agenda Item # 8.1
AGENDA DATE: October 23, 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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