Board of
Directors
Regular Meeting
November 16, 2023
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
Warm Welcome to our New Hires!
Diana Gonzalez
Risk Manager
Erin Hudak
Compliance Analyst
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
9 Consent
Agenda
1. Approval of October 26, 2023 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending September 30, 2023
3. Receive and File June 30, 2023 Fiscal Year-end Audited Financial Statement
4. Receive and File Update on Programs
5. Receive and File Update on Power Services
6. Receive and File Update on Human Resources
7. Receive and File Update on Customer Operations
8. Receive and File Update on Marketing and Public Relations
9. Receive and File Update on Community Advisory Committee
10. Receive and File Update on Legislative and Regulatory Affairs
11. Approval of 2023 Procurement Counsel Legal Services Request for Proposal Contracts
a) Approval of Amended and Restated Engagement Letter with Keyes and Fox LLP for up to $500,000 per year for Legal Services for Power Procurement beginning January 1, 2024
b) Approval of Engagement Letter with Perkins Coie LLP for up to $200,000 per year for Legal Services for Power Procurement beginning January 1, 2024 c) Approval of Engagement Letter with Sunridge Legal, LLP for up to $200,000 per year for Legal Services for Power Procurement beginning January 1, 2024 Public
Comment
for
Consent
Agenda
11 Regular
Meeting
Agenda
12. Update on Quarterly Report for the
Community Advisory Committee
13. Approval of Appointment of CAC
Member Representing the City of
Imperial Beach
14. Approve the Update to the Energy
Proposal Evaluation Criteria
15. Approve Arevon Avocet Standalone
Storage Energy Storage Services
Agreement (ESSA)
16. Approve Pomona 2 Standalone
Storage Energy Storage Services
Agreement (ESSA)
12 Item 12
Update on Quarterly Report for the Community
Advisory Committee
Recommendation:
Receive and File the update on the quarterly report
for the Community Advisory Committee
Presenter:
Xiomalys Crespo, Community Engagement Manager
Matthew Vasilakis, Community Advisory Committee Chair
13 Key Community Advisory Committee Activities
Third Quarter (July 2023 – October 2023)
• CAC has convened two ad-hoc Committees on Programs and Community and Equity, which has discussed several topics prior to full CAC discussions:
• Solar for Our Communities
• Regional Energy Network (REN) progress
• Energy Education and Online Marketplace
• Targeted Social & Digital Display Campaigns
• Revisions to the Energy Proposal Evaluation Criteria
• Net Billing Tariff (NBT)
• Existing Net Energy Metering (NEM) policy
• Outreach and Volunteering Opportunities
• The CAC has also received regular updates on Customer Operations, Marketing & Public Affairs, and Legislative and Regulatory Affairs.
14 • Members voted new officers for Fiscal Year 2023-2024:
• Matthew Vasilakis as Chair (City of San Diego)
• David Harris as Vice-Chair (La Mesa)
• Lauren Cazares as Secretary (La Mesa)
• The CAC has also received regular updates on Customer Operations, Marketing & Public Affairs, and Legislative & Regulatory Affairs.
• The CAC has one vacancy representing the County of San Diego (unincorporated). • The CAC Fiscal Year 2022-2023 Work Plan and other key operational documents will be updated later this calendar year.
Key Community Advisory Committee Activities
Third Quarter (July 2023 – October 2023)
Public
Comment
for Item 12
16 Item 12
Recommendation:
Receive and File the update on the quarterly report
for the Community Advisory Committee
17 Item 13
Approve the Appointment of CAC Member
Representing the City of Imperial Beach
Recommendation:
Approval of Appointment of CAC Member
Representing the City of Imperial Beach
Presenter: Xiomalys Crespo, Community Engagement Manager 18 Membership Terms & Criteria
• The Committee shall be made up of fourteen (14) committee members, with two (2) from each member agency.
• SDCP aims to ensure a wide variety of perspectives and participation on the CAC.
• Members shall be residents (property owners and/or renters), business owners, employees or representatives of a community-based organization.
• Appointments are to prioritize residents from diverse social, economic and racial backgrounds that are representative of all residents within SDCP's service territory.
• Members serve up to two three-year terms.
19 Selection Process
• Staff promoted applications via social media, the Board of Directors, the CAC, and directly engaging with member agency staff and the public in Imperial Beach.
• A total of two applications for Imperial Beach were received and reviewed.
• Staff worked with Director Aguirre to review and determine a nomination for appointment based on Membership Terms & Criteria. • Director Aguirre has nominated Ilian Sandoval.
20 Next Steps
• Staff to conduct Oath of
Office, onboarding, and
training.
• CAC Roster to be
updated to include new
representative.
Public
Comment
for Item 13
22 Item 13
Recommendation:
Approval of Appointment of CAC Member
Representing the City of Imperial Beach
23 Item 14
Approve the Update to the Energy Proposal
Evaluation Criteria
Recommendation:
Approval of the updates to the Energy Proposal
Evaluation Criteria
Presenter: Kenny Key, Director of Power Contracts
Energy Proposal
Evaluation Criteria
Board of Directors
November 16, 2023
25 Evaluation Criteria
• SDCP pursues long-term power contracts via solicitations • E.g., 2023 Long-Term RPS RFP (2023 LT RPS RFP), Local RFI • To date, SDCP Staff and the Energy Contract Working Group (ECWG) have used the Energy Proposal Evaluation Criteria (EPEC) that was reviewed by the board of directors in March 2022 for the purposes of evaluating and scoring each potential project or transaction.
• Evaluation Criteria serves as a helpful tool for Staff and ECWG to screen submissions, but all long-term contracts are subject to review by Board committees and, ultimately, Board approval.
• For purposes of consistency and transparency, Staff propose to formally adopt the proposed revisions to the EPEC for future evaluation of long-term, utility scale (10MW+) wholesale contracts for purchase of renewable energy and capacity. 26 Proposed Evaluation Criteria (Revised)
Project
Development
Environmental
Stewardship
Workforce
Development
Community
Benefits
Project
Location
Quantitative
Value
• SDCP will use an Energy Proposal Evaluation Criteria (EPEC) to score proposals for long-term, utility scale (10MW+) wholesale energy contracts • The EPEC may be modified on a solicitation-by-solicitation basis to reflect specific goals of targeted procurement
• The EPEC will include evaluation within the following six areas, each of which will be rated high (A), medium+ (B), medium- (C), neutral (D) or low (F) and aggregated for holistic review by Staff and the ECWG
27 Project Location (Original)
Local
• For Renewable Energy: San Diego
or Imperial Co
• For Energy Storage: SD-IV Local
RA
Southern California
• In or south of San Luis
Obispo/Kern/San Bernadino
Co
• Out-of-state projects that are not interconnected to CAISO HIGH
MEDIUM
LOW
NEUTRAL • Located in other counties within CA or directly interconnected to California Independent System Operator (CAISO)
28 Project Location (Revised)
Local
• For Renewable Energy: San Diego or Imperial Co.
without requiring import rights (or located in CAISO)
• For Energy Storage: SD-IV Local RA
Southern California
• In Imperial Co., but requires import rights
• In or south of San Luis Obispo/Kern/San Bernadino Co.
Out-of-state projects that are not interconnected to CAISO
HIGH (A)
MEDIUM+ (B)
LOW (F)
NEUTRAL (D) Out-of-state projects directly interconnected to California Independent System Operator (CAISO)
MEDIUM- (C) In-State
• Located in other counties within CA
29 Quantitative Value (Revised)
Projects will be categorized as
• The Quantitative score will be based on several project development-related factors, including:
– Contract price
– Products offered/included for purchase
– Value to SDCP customers
– Impact to SDCP portfolio risk
– Cost effectiveness of project-related GHG emission reductions – Timeline and expectations of ability to achieve FCDS
HIGH (A) MEDIUM+ (B) MEDIUM- (C) NEUTRAL (D) LOW (F)
30 Project Development (Revised)
Projects will be categorized as
• The development score will be based on several project development-related factors, including:
– Site control
– Interconnection status & Deliverability
– Environmental screens
– Land use and permits
– Project financing
– Developer experience
HIGH (A) MEDIUM+ (B) MEDIUM- (C) NEUTRAL (D) LOW (F)
31 Community Benefits (Revised)
• Project is located within a Disadvantaged Community (DAC), Community of Concern (COC), a region otherwise designated by local jurisdiction or permitting agency as prioritized for renewable energy development (“Renewable Energy Development Zone” or “REDZ”), or on tribal land with consent; • Has completed Community Outreach;
• Has set up, or committed to, a community benefit fund that benefits SDCP customers • Demonstrates compelling Community Benefits
• Project is not located within a DAC, COC, or REDZ but has completed Community Outreach and can demonstrate Community Benefits • Project does not demonstrate community benefits
• Project is inconsistent with community priorities, or the project (a) utilizes solar/wind technologies, (b) is over 10MW, and (c) is located within 1,500 ft. of a residential property
• Project is located within a DAC, COC, REDZ or tribal land, and has committed to Community Outreach to demonstrate Community Benefits
HIGH (A)
MEDIUM+ (B)
LOW (F)
NEUTRAL (D)
MEDIUM- (C)
32 Workforce Development (Revised) • The project will meet all objectives of SDCP’s Inclusive and Sustainable Workforce Policy with respect to PPAs and has executed, or has committed to executing, a Project Labor Agreement (PLA).
• The project does not meet all objectives of SDCP’s ISWF Policy but can demonstrate prevailing wage, skilled and trained workforce, and local hire commitments or demonstrates it meets the requirements of the Inflation Reduction Act (“IRA”) • The project is not pursuing one or all of the following: prevailing wage, skilled and trained workforce, and local hire commitments
• The project will meet most objectives of SDCP’s Inclusive and Sustainable Workforce Policy with respect to PPAs, but will not have a PLA. Project commits to local hire commitments near the site of the project and 50% or more union labor. • The project has not yet determined its plan for workforce development
HIGH (A)
MEDIUM+ (B)
LOW (F)
NEUTRAL (D)
MEDIUM- (C)
33 SDCP ISWF Policy
34 Environmental Stewardship • Project is located on currently or previously developed land (including agricultural land no longer suitable for farming) or brownfield land and project beneficially impacts and reduces air pollution within communities that have been disproportionately impacted by the existing generating fleet • Project does not demonstrate significant positive or negative environmental impact • Project has not conducted feasibility study of the project’s environmental impacts • Project is located on currently or previously developed land (including agricultural land no longer suitable for farming) or brownfield land and demonstrates additional societal, economic, water-saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy, or • Project beneficially impacts and reduces air pollution within communities that have been disproportionately impacted by the existing generating fleet
• Project is not located on currently or previously developed land (including agricultural land no longer suitable for farming) or brownfield land, but demonstrates additional societal, economic, water-saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy
HIGH (A)
MEDIUM+ (B)
LOW (F)
NEUTRAL (D)
MEDIUM- (C)
35 Example Evaluation Summary:
Project Location Generation
Price
Capacity
Price
Generation
Capacity
(MW)
Storage
Capacity
(MW)
COD Project
Location
Price /
Value
Dev Score Community
Benefits
Workforce
Dev
Enviro
SDCP A SD
County $2.00 $1.00 100 100 1/1/24 High (A) High (A) High (A) Med+ (B) High (A) Med+ (B) SDCP B Orange
County $1.50 $1.50 200 100 1/1/24 Med+ (B) High (A) High (A) High (A) Med+ (B) Med- (C)
SDCP C SD
County $2.25 $2.05 50 50 1/1/25 High (A) High (A) Med+ (B) Med- (C) High (A) Med- (C) SDCP D Imperial
County $2.00 $2.10 20 20 1/1/24 High (A) High (A) High (A) Med- (C) High (A) Neutral (D)
SDCP E SD
County $3.00 $3.50 75 75 1/1/25 High (A) Med- (C) Med- (C) Neutral (D) Med- (C) Neutral (D) SDCP F Riverside
County $3.50 $3.45 20 0 1/1/25 Med+ (B) Med+ (B) High (A) Med- (C) Med+ (B) Neutral (D) SDCP G Imperial
County $4.00 $4.10 50 50 1/1/24 Med+ (B) Low (F) Med- (C) Low (F) Neutral (D Neutral (D)
SDCP H SD
County $3.75 $2.15 100 0 1/1/24 High (A) Low (F) High (A) Neutral (D) Med- (C) Low (F) Added Columns
Public
Comment
for Item 14
37 Item 14
Recommendation:
Approval of the updates to the Energy Proposal
Evaluation Criteria
38 Item 15
Approve Arevon Avocet Standalone Storage
Energy Storage Services Agreement (ESSA)
Recommendation:
Approval of a 15-Year Arevon Avocet Standalone Storage
Energy Storage Services Agreement (ESSA) with Avocet
Energy Storage, LLC for a 200 MW/800 MWh (4-hour)
battery storage project.
Presenter: Kenny Key, Director of Power Contracts
39 Standalone Storage RFO
• SDCP issued an RFO on April 12, 2023 for standalone
storage projects
• Standalone storage assets provide capacity, energy
arbitrage and ancillary services for load serving entities like SDCP
• SDCP received a robust response of offers for primarily lithium-ion battery storage projects of varying capacities and duration.
• Arevon’s Avocet project was among those shortlisted for negotiations by staff and the Energy Contracts Working
Group.
40 Avocet Energy Storage
• 200 MW/800 MWh (4-hour)
lithium-ion battery
• Location: Los Angeles County
41 Avocet Energy Storage: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed capacity pricing adjusted for capacity and availability over a 15-year term
• Timeline: Guaranteed Commercial Operation Date is April 15, 2026 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to achieving certain development milestones and meeting guaranteed efficiency rates over the delivery term.
42 Avocet Energy Storage: Staff Analysis
• With FCDS status and commercial operations commencing in 2026, Avocet would help fulfill SDCP’s Mid-Term Reliability requirements under CPUC D.21-06-025.
• Pricing is competitive with comparable product offerings received from SDCP’s recent RFO for stand alone storage and the long-term purchase of capacity, energy arbitration, and ancillary services will provide SDCP with significant value and cost certainty over the term of this ESSA.
• Arevon is a leader in renewable and storage development with over 10 GW of renewable energy assets.
43 Avocet Energy Storage: Workforce Development and
Community Benefits
• The Avocet project will provide 100 construction jobs and 4 permanent jobs and Arevon is committed to using union labor at the project, having entered into commitment letters with local IBEW chapters and the State Building and Construction Trades Council of California in 2021.
• Avocet will help replace resource adequacy from several thermal generation power plants in the LA Basin that are slated for retirement in the coming years, specifically Ormond Beach GS, Alamitos GS, Huntington Beach, Redondo GS. This will help improve the localized air pollution from those thermal generation facilities and the health of surrounding communities.
Public
Comment
for Item 15
45 Item 15
Recommendation:
Approval of a 15-Year Arevon Avocet Standalone
Storage Energy Storage Services Agreement (ESSA)
with Avocet Energy Storage, LLC for a 200 MW/800
MWh (4-hour) battery storage project
46 Item 16
Approve Pomona 2 Standalone Storage Energy
Storage Services Agreement (ESSA)
Recommendation:
Approve a 15-year Standalone Storage Energy
Storage Service Agreement (ESSA) with Pomona
Energy Storage 2, LLC for a 20 MW/40 MWh (2-hour)
battery storage project
Presenter: Byron Vosburg, Managing Director Power Services 47 Pomona Energy Storage 2, LLC (Pomona 2)
• 20 MW/40 MWh (2-hour)
lithium-ion battery
• Location: Los Angeles County
48 Pomona 2: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed capacity pricing adjusted for capacity and availability over a 15-year term
• Timeline: Fully operational, no future construction required • SDCP adjusts payments according to demonstrated effective capacity and receives financial compensation for failure to meet certain performance requirements including but not limited to meeting guaranteed efficiency rates over the delivery term.
49 Pomona 2: Staff Analysis
• Pomona 2 is a fully constructed and operational battery energy storage asset that will be the first operating battery energy storage asset in SDCP’s contracted portfolio.
• The FCDS status will contribute to SDCP’s Mid-Term Reliability requirements under CPUC D.21-06-025 with the start of the delivery term in January 2024.
• Pomona 2 provides capacity, energy arbitration, and ancillary services value and cost certainty over the term of the ESSA. • Ormat Technologies is an experienced owner and operator.
Public
Comment
for Item 16
51 Item 16
Recommendation:
Approve a 15-year Standalone Storage Energy
Storage Service Agreement (ESSA) with Pomona
Energy Storage 2, LLC for a 20 MW/40 MWh (2-hour)
battery storage project
Report by
Chief
Executive
Officer
Report by
General
Counsel
Director
Comments
Board of
Directors
Closed Session
November 16, 2023
60 Special
Meeting
Agenda
Call to Order
Roll Call
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
CLOSED SESSION
1. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Chair LaCava and SDCP CEO Karin Burns
Unrepresented employee: General Counsel
2. PUBLIC EMPLOYEE APPOINTMENT (RECRUITMENT UPDATE)
Title: General Counsel
REPORT FROM CLOSED SESSION
ADJOURNMENT
Public
Comment
on Closed
Session
Items
62 Closed
Session
Agenda
1.CONFERENCE WITH LABOR
NEGOTIATORS
Agency designated representatives:
Chair LaCava and SDCP CEO Karin Burns
Unrepresented employee: General Counsel
2. PUBLIC EMPLOYEE APPOINTMENT
(RECRUITMENT UPDATE)
Title: General Counsel
63 Special
Meeting
Agenda
Roll Call
Report from Closed Session
Adjournment
Next Regular
Board of Directors Meeting
December 14, 2023