Agenda Page 1 of 2
AGENDA
BOARD OF DIRECTORS MEETING
THURSDAY, MARCH 3, 2022
8:45 A.M.
___________________________________________________________ ****AB 361****
**RE CORONAVIRUS COVID-19**
CONSISTENT WITH THE PROVISIONS OF AB 361, MEMBERS OF THE BOARD OF DIRECTORS WILL PARTICIPATE IN THE MARCH 3, 2022, MEETING BY TELECONFERENCE. IN-PERSON
PARTICIPATION BY THE PUBLIC WILL NOT BE PERMITTED AND NO PHYSICAL LOCATION FROM WHICH THE PUBLIC MAY ATTEND THE MEETING WILL BE AVAILABLE. REMOTE PUBLIC PARTICIPATION DETAILS ARE LISTED BELOW.
Members of the public who wish to participate in the Board of Directors Meeting may do so via the following webinar link or teleconference call-in number and meeting code:
• Webinar link: https://us06web.zoom.us/j/88546704126
• Telephone number: 1 (253) 215-8782
• Meeting ID: 885 4670 4126
PLEASE NOTE: The Sonoma Clean Power Business Office is closed and this meeting will be conducted entirely by teleconference.
How to Submit Public Comment During the Teleconference Meeting:
The Chair will request public comment during the Public Comment period for all items on the agenda. Comments may be submitted in writing to [email protected] or during the meeting via the webinar “raise your hand” feature. For detailed public comment instructions, please visit this page.
For written comments, state the agenda item number that you are commenting on and limit to 300 words. Written comments received prior to the meeting and/or the agenda item you wish to comment on will be read into the record up to 300 words.
DISABLED ACCOMMODATION: If you have a disability which requires an accommodation or an alternative format, please contact the Clerk of the Board at (707) 890-8491, or by email at [email protected] as soon as possible to ensure arrangements for accommodation.
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Staff recommendations are guidelines to the Board. On any item, the Board may take action which varies from that recommended by staff.
Agenda Page 2 of 2
CALL TO ORDER
BOARD OF DIRECTORS CONSENT CALENDAR
1. 2.
BOARD OF DIRECTORS REGULAR CALENDAR
3. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate (Staff Recommendation: Receive and File)
4. BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(Comments are restricted to matters within the Board’s jurisdiction. Please be brief and limit spoken comments to three minutes, or 300 words if written.)
ADJOURN
Approve February 3, 2022, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve) - pg. 5
Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361 (Staff Recommendation: Approve) - pg. 13 - pg. 17
Receive Legislative and Regulatory Updates and Approve Positions on AB1814 (Grayson) Transportation Electrification and Other Bills as Appropriate (Staff Recommendation: Approve) - pg. 29
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COMMONLY USED ACRONYMS AND TERMS
CAC Community Advisory Committee
CAISO California Independent Systems Operator – the grid operator CCA Community Choice Aggregator – a public power provider CEC California Energy Commission
CleanStart SCP’s default power service
CPUC California Public Utilities Commission
DER Distributed Energy Resource
ERRA Energy Resource Recovery Account – one of PG&E’s rate cases at the CPUC EverGreen SCP’s 100% renewable, 100% local energy service, and the first service in the United States providing renewable power every hour of every day.
Geothermal A locally-available, low-carbon baseload renewable resource GHG Greenhouse gas
GRC General Rate Case – one of PG&E’s rate cases at the CPUC GridSavvy GridSavvy Rewards are available to SCP customers for reducing household energy use when needed to help California ensure reliable low-emission power. A form of ‘demand response.’ IOU Investor Owned Utility (e.g., PG&E)
IRP Integrated Resource Plan – balancing energy needs with energy resources JPA Joint Powers Authority
MW Megawatt is a unit of power and measures how fast energy is being used or produced at one moment.
MWh Megawatt-hour is a unit of energy and measures how much energy is used or produced over time.
NEM Net Energy Metering
NetGreen SCP’s net energy metering bonus
PCIA Power Charge Indifference Adjustment – a fee charged by PG&E to all electric customers to ensure PG&E can pay for excess power supply contracts that it no longer needs.
RA Resource Adequacy – a required form of capacity that helps ensure there are sufficient power resources available when needed.
RPS Renewables Portfolio Standard refers to certain kinds of renewable energy which qualify to meet state requirements, including wind, solar, geothermal.
SCP Sonoma Clean Power
TOU Time of Use, used to refer to rates that differ by time of day 3 of 40
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DRAFT MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, FEBRUARY 3, 2022
8:45 A.M.
___________________________________________________________ ****AB 361****
**RE CORONAVIRUS COVID-19**
CONSISTENT WITH THE PROVISIONS OF AB 361 WHICH SUSPENDED CERTAIN
REQUIREMENTS OF THE BROWN ACT, MEMBERS OF THE BOARD OF DIRECTORS PARTICIPATED IN THE FEBRUARY 3, 2022, MEETING BY TELECONFERENCE.
CALL TO ORDER
Chair Bagby called the meeting to order at approximately 8:52 a.m.
Board Members present: Chair Bagby, Vice Chair King, and Directors Landman, Elward, Slayter, Fudge, Gjerde, and Hopkins. Director Peters was absent.
Directors Rogers and Felder were absent with prior notice.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Stephanie Reynolds, Director of Internal Operations; Neal Reardon, Director of Regulatory Affairs; Rebecca Simonson, Director of Programs; Claudia Sisomphou, Communications and Engagement Manager; and Joshua Nelson, Special Counsel.
BOARD OF DIRECTORS CONSENT CALENDAR
1. Approve January 6, 2022, Draft Board of Directors Meeting Minutes
2. Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361
3. Approve 3% Performance-Based Salary Increase for CEO Syphers to be Effective March 1, 2022
4. Delegate Authority to the CEO or His Designee to Execute a Legal Services Agreement with Best Best & Krieger LLP in the Amount Not-To-Exceed of $180,000
Public Comment: None
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Vice Chair King asked for a correction to the January 6, 2022, Meeting Minutes, he asked that the spelling of his Alternate Director’s name be corrected to “McDonell.”
Motion to Approve the February 3, 2022, Board of Directors Consent Calendar as amended by Vice Chair King.
Second: Elward
Motion passed by roll call vote:
AYES: Bagby, Landman, King, Elward, Slayter, Fudge, Gjerde, Hopkins NAYES: None
ABSENT: Peters, Rogers, Felder
BOARD OF DIRECTORS REGULAR CALENDAR
5. Appointment of Chair and Vice Chair of the Board for One-Year Terms This Item was bifurcated, and a vote was taken separately on the Chair and Vice Chair positions.
Prior to taking nominations, Chair Bagby shared words of appreciation and highlights from her time as Chair of the Board the previous year.
Motion to Appoint Vice Chair King as Chair for a one-year term by Director Landman
Second: Gjerde
Public Comment: None
Motion passed by roll call vote:
AYES: Bagby, Landman, King, Elward, Slayter, Fudge, Gjerde, Hopkins NAYES: None
ABSENT: Peters, Rogers, Felder
Director Bagby passed Chair duties over to Chair King for the remainder of the meeting; Chair King opened the nominations for Vice Chair.
Motion to Appoint Director Fudge as Vice Chair for a one-year term by Director Hopkins
Second: Bagby
Public Comment: None
Motion passed by roll call vote:
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AYES: Bagby, Landman, King, Elward, Slayter, Fudge, Gjerde, Hopkins NAYES: None
ABSENT: Peters, Rogers, Felder
Chair King offered gratitude to former-Chair Bagby, stated his intent to follow her example as Chair, and that he looks forward to working with Vice Chair Fudge and SCP staff going forward.
6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
Stephanie Reynolds, Director of Internal Operations, gave an update on the temporary Closure of the Advanced Energy Center (AEC) and clarified that the AEC is still giving private tours and tours can be scheduled. Director Reynolds expanded that the previous week the AEC hosted a tour with the Economic Development Board and stated that Center staff has been working on facility upgrades during the closure. She gave an update on the California Electric Vehicle Infrastructure Project (CalEVIP) and stated that the first charging stations will be opening in 2022.
Geof Syphers, Chief Executive Officer (CEO), touched on financials through November 2021. He stated that a key item in the financials is that SCP is still under collecting from customers, but the gap is closing.
Director Gjerde asked for a contact for SCP’s CalEVIP program.
Public Comment: None
7. Receive Legislative and Regulatory Updates and Provide Direction as Appropriate
Neal Reardon, Director of Regulatory Affairs, started by reminding the Board that the Public Utilities Commission (PUC) will vote on PG&E’s proposed rate changes on February 10, 2022. He explained that with this vote, PG&E’s bundled rates will go up significantly and the Power Charge Indifference (PCIA) exit fee will go down significantly. If the Proposed Decision is approved, PG&E will implement the new rates on March 1, 2022. In turn, SCP will expect to implement rate adjustments on April 1, 2022.
CEO Syphers discussed Governor Newsom’s budget proposal on climate related activities. He discussed Senator McGuire’s Climate Emergency Resolution and SCP filed a letter of support. He discussed Net Energy Metering (NEM) reform, expected to be voted on February 10, 2022 by the CPUC, which has been criticized for having a negative effect on rooftop solar installations. CEO Syphers continued that rooftop solar coalitions and homeowners have filed a state ballot initiative with the Secretary of State to have all solar compensated at retail.
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Director Bagby acknowledged the hard work of SCP staff and requested that the Board address the NEM issue.
Director Landman requested that the Board discuss rooftop solar and take a position on the NEM proposal.
Director Slayter requested information about what is coming from the Governor’s office regarding rooftop solar.
Director Hopkins asked SCP to take a side on the rooftop solar issue.
Vice Chair Fudge explained that the Town of Windsor has taken the rooftop solar issue on and asks the Board take up the issue.
Director Bagby advised staff to craft a letter regarding rooftop solar and requested the Chair and Vice Chair meet and confer to get the letter out.
Director Gjerde, Director Slayter, and Director Landman supported sending a letter opposing the current NEM reform proposal.
Chair King supported sending an opposition letter and added that at the January 24, 2022 Petaluma City Council Meeting, the Council sent an opposition letter.
Public Comment: Barry C. Lawrence submitted the written comment below:
“Dear Board Members:
I am an Evergreen, Drive EV, Grid Savvy, Net Green, EV-A customer with a home solar system including power wall-backup as well as an electric vehicle using a charger provided by SCP. The last two years I have sold SCP my solar excess electricity. We have a mutually beneficial relationship.
As a Sonoma Clean Power customer and a household, I am concerned about the Possible fact that PG&E thru the PUC wants to implement a $57/Month ($684/Yr.) penalty charge for solar ownership, cut solar credits for clean energy sent to the grid by 80% and roll back existing protections and agreements to solar users.
They incorrectly claim the current setup disallows low-income people from acquiring a solar system. This is absolutely wrong assumption.
I am a low-income Senior living on fixed income of less that $3,500/mo. income! I acquired my system thru Sonoma county’s Energy and sustainability Division. No credit check low interest rate and only two yearly payments paid thru one’s property tax and with some tax credits involved I was able to get a nice solar system installed.
This PUC proposal would increase my monthly bill to PG&E and would definitely affect my income.
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Please use your influence with Governor Newsom and the PUC to stop these proposals and to work on measures that promote, support, and continue to encourage the deployment of clean solar energy. That’s what SCP is all about.
The PUC’s (PG&E’s) measures are short sighted, punitive, and regressive and go back on their 20-year agreement with us solar installers. We need clean progressive energy measures and legislation to save our environment. Not additional punitive extra monthly charges and changing already agreed upon protections.
Sincerely,
Barry C. Lawrence
Petaluma
Sonoma County has the highest solar installations per capita in the entire United States including a new one on Sonoma Mountain (mine). Sonoma Clean Power EverGreen is now 50% geothermal and 50% solar!”
8. Approve Parameters to Establish New Customer Rates for Implementation Following Certain Changes to Customer Exit Fees on or After March 1, 2022 CEO Syphers began with a recap of rate changes in the past and explained that the last several years SCP has had to adopt rates that are reactive because SCP does not have details about PG&E rate changes typically until the day they implement them. He explained that this year will likely be no different and we expect implementation of PG&E’s rate changes on March 1, 2022. He further stated that this year’s rate changes will include a dramatic decrease in the PCIA, but there will also be a significant increase in PG&E’s other rates including distribution, generation and a wildfire fund. CEO Syphers recommended establishing rates as soon after March 1, 2022 as possible, which for SCP would be April 1, 2022.
Director Landman stated that there is a difference between a 3% and a 5% rate change and that one of SCP’s goals was to provide clean energy at a lower price.
Director Slayter inquired if PG&E’s delivery costs are audited. Director Reardon replied that yes, they are through General Rate Case (GRC) applications.
At approximately 10:04 a.m., Director Rogers entered the meeting.
Public Comment: None
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Director Bagby amended her motion to limit the changes to customer rates to be capped such that SCP customers would be limited to paying 3% above total bundled service bills.
Motion to Approve Parameters to Establish New Customer Rates for Implementation Following Certain Changes to Customer Exit Fees on or After March 1, 2022, as amended, by Director Bagby.
Second: Landman
Motion passed by roll call vote:
AYES: Bagby, Landman, King, Elward, Rogers, Slayter, Fudge, Gjerde, Hopkins
NAYES: None
ABSENT: Peters, Felder
9. Empower Update – Engaging Youth
Claudia Sisomphou, Communications and Engagement Manager, began with a background on Empower SCPs outreach program and introduced the fourth category “Engaging Youth.” She explained that topics for engaging youth include: climate change, education for students and their households, and she requested ideas from the Board.
Director Elward stated that elementary schools should be targeted.
Director Landman recommended bolstering some programs already in place, such as the Sonoma Water energy education partnership, and make equity a priority.
Director Bagby supported a video program with the youth and requested Sisomphou reach out to discuss programs in Northern Sonoma County.
Director Fudge asked SCP to reach out to the Sonoma-Marin Area Rail Transit (SMART) and join their educational efforts.
Chair King requested more live events and field trips to the AEC.
Director Bagby suggested meeting the community where they are and suggested joining meetings from other organizations such as the Sonoma County Bicycle Coalition.
Director Hopkins requested outreach to West County activist clubs to gather student leaders. She inquired if we have Community Advisory Committee (CAC) youth members. CEO Syphers answered that while we do not, we do have younger members on the Committee now.
Public Comment:
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Madge Strong inquired as to what was happening in Mendocino County.
Sisomphou said she would reach out and have a conversation offline.
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
None
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
Public Comment: None
ADJOURN
Chair King adjourned the meeting at approximately 10:34 a.m. 11 of 40
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Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, CEO
Issue: Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361
Date: March 3, 2022
Requested Action:
Authorize extension of SCP Resolution 2021-05 to permit remote teleconference meetings of the Board of Directors and Community Advisory Committee pursuant to AB 361.
Summary of the Item:
On September 16, 2021, the Governor signed AB 361, which allows legislative bodies to meet virtually provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.
In order to continue to qualify for AB 361’s waiver of in-person meeting requirements, the Board must, within thirty (30) days of its first meeting under AB 361, and every thirty (30) days thereafter, make findings that (a) state or local officials continue to recommend measures to promote social distancing, or that (b) an in-person meeting would constitute an imminent risk to the safety of attendees. This item would extend Resolution 2021-25 by making the necessary findings to permit remote meetings.
Attachment:
Resolution 2021-05 of the Board of Directors of the Sonoma Clean Power Authority
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RESOLUTION NO. 2021 - 05
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER
AUTHORITY AUTHORIZING VIRTUAL BOARD AND COMMITTEE MEETINGS PURSUANT TO AB 361
WHEREAS, the Sonoma Clean Power Authority (“SCP”) is committed to preserving and nurturing public access and participation in meetings of the Board of Directors; and
WHEREAS, all meetings of SCP’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend and participate in SCP’s meetings; and WHEREAS, starting in March 2020, in response to the spread of COVID-19 in the State of California, the Governor issued a number of executive orders aimed at containing the COVID-19 virus; and
WHEREAS, among other things, these orders waived certain requirements of the Brown Act to allow legislative bodies to meet virtually; and WHEREAS, pursuant to the Governor’s executive orders, SCP has been holding virtual meetings during the pandemic in the interest of protecting the health and safety of the public, SCP staff, and Directors; and
WHEREAS, the Governor’s executive order related to the suspension of certain provisions of the Brown Act expired on September 30, 2021; and WHEREAS, on September 16, 2021 the Governor signed AB 361 (in effect as of October 1, 2021 – Government Code Section 54953(e)), which allows legislative bodies to meet virtually provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in SCP, specifically, a state of emergency has been proclaimed related to COVID-19, Sonoma and Mendocino County officials are imposing and recommending measures to promote social distancing, and because of the ongoing threat of COVID-19, meeting in person would present imminent risks to the health and safety of attendees;
WHEREAS, these recommendations include the September 24, 2021 Recommendation of the Sonoma County Health Officer Dr. Sundari R. Mase which outlines specific social distancing recommendations for in-person meetings by local agencies within Sonoma County;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
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Section 2. Remote Teleconference Meetings: Consistent with the provisions of Government Code Section 54953(e), the Board of Directors finds and determines that (1) a state of emergency related to COVID-19 is currently in effect; (2) local officials in Sonoma and Mendocino Counties have imposed or recommended measures to promote social distancing in connection with COVID-19, including indoor mask requirements and minimum recommend distance between attendees; and (3) due to the COVID-19 emergency, meeting in person would present imminent risks to the health and safety of attendees. Based on such facts, findings and determinations, the Board authorizes staff to conduct remote teleconference meetings of the Board of Directors, including the Community Advisory Committee and other legislatives bodies, under the provisions of Government Code Section 54953(e).
Section 3. Effective Date of Resolution. This Resolution shall take effect October 7, 2021, and shall be effective for 30 days or until this Resolution is extended by a majority vote of the Board of Directors in accordance with Section 4 of this Resolution.
Section 4. Extension by Motion. The Board of Directors may extend the application of this Resolution by motion and majority vote by up to thirty days at a time, provided that it makes all necessary findings consistent with and pursuant to the requirements of Section 54953(e)(3).
PASSED AND ADOPTED by the Board of Directors of the Sonoma Clean Power Authority this 7th day of October 2021, by the following vote:
JURISDICTION NAME AYE NO ABSTAIN/
ABSENT
Cloverdale Director Bagby X
Cotati Director Landman X
Fort Bragg Director Peters X
Petaluma Director King X
Rohnert Park Director Elward X
Santa Rosa Director Rogers X
Sebastopol Director Slayter X
Sonoma Director Felder X
Windsor Director Fudge X
County of Mendocino Director Gjerde X
County of Sonoma Director Hopkins X
In alphabetical order by jurisdiction
Chair, Sonoma Clean Power Authority
Attest:
Clerk of the Board
APPROVED AS TO FORM:
Special Counsel,
Sonoma Clean Power Authority
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Staff Report – Item 03
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Mike Koszalka, Chief Operating Officer
Issue: Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
Date: March 3, 2022
ADVANCED ENERGY CENTER
The Advanced Energy Center has reopened! During the closure, staff worked on new design additions of simple solutions on how to live in an all-electric home. We encourage you to visit and see the updates.
CURRENT ENROLLMENT
Clean Start:
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Evergreen:
PLANNED MARKET RESEARCH
To gauge overall brand awareness and to better understand customers’ (and non-customers’) needs and opinions, Sonoma Clean Power plans to conduct an annual survey, beginning in late March, with findings available in May. Spanish language focus groups have just been completed, with findings expected by mid-March. Next fiscal year, SCP plans to conduct customer satisfaction and commercial account surveys. Each survey instrument’s findings will help inform future marketing, customer program and outreach efforts.
PROGRAMS UPDATES
Energy education in schools
Leveraging Sonoma Water’s successful water education program, SCP continues to collaborate with Sonoma Water to deliver energy education to Sonoma and Mendocino schools. The Water and Energy Education Program is free and provides classroom visits, field trips, contests, grants, teacher workshops, and school supplies. For more information, please visit www.sonomawater.org/education. 18 of 40
Elementary School
In January 2022, 13 third-grade classes received presentations, totaling 265 students.
Presentation topics included climate change, greenhouse gas emissions, and water and energy conservation. Schools included Penngrove Elementary (Penngrove), Valley Vista Elementary (Petaluma), Mark West Elementary (Santa Rosa), Abraham Lincoln Elementary (Santa Rosa), Cali Calmecac (Windsor), Kenwood Elementary (Kenwood).
High School
SCP and Sonoma Water are developing new high school lessons on climate change and designing field trips to the Advanced Energy Center.
Teacher Support
A Call to Action, a small grant program, is available for teachers and their students for projects related to water or climate change. Teachers can request $100 to $1,000 for their solution-focused project.
A 5-day teacher workshop highlighting climate change resilience and education opportunities in Sonoma County is planned for July 2022.
Advanced Energy Build
Advanced Energy Build (AEB), Sonoma Clean Power’s territory-wide new construction program, has received project applications representing a combined 624 housing units as of 2/16/22. This includes 597 multifamily units and 27 single-family homes, with 80% being affordable homes and 100% of which will be all-electric. Staff has extended the program application deadline to June 30th for low-income projects. In total, the program is expected to provide up to $1.9M in incentives to help build high-efficiency and all-electric new homes in Sonoma and Mendocino counties. 9
MONTHLY COMPILED FINANCIAL STATEMENTS
The year-to-date change in net position is more negative than projections due primarily to greater than expected cost of energy. Revenue from electricity sales is nearly equal to budget projections, and cost of energy is more than expectations by approximately 3%. Year-to-date electricity sales reached $91,060,000.
SCP maintains a balanced portfolio by procuring electricity from multiple sources.
Net position is a positive $94,240,000. In addition to Net Position, SCP maintains an Operating Account Fund of $26,000,000 at the end of the period. Approximately 19 of 40
$72,453,000 is set aside for reserves (Operating Reserve: $59,345,000; Program Reserve: $10,868,000; and Collateral Reserve: $2,240,000).
BUDGETARY COMPARISON SCHEDULE
The accompanying budgetary comparison includes the 2021/22 budget approved by the Board of Directors in June 2021.
The budget is formatted to make comparisons for both the annual and the year-to-date perspective. The first column, 2021/22 YTD Budget, allocates the Board approved annual budget at expected levels throughout the year with consideration for the timing of additional customers, usage volumes, staffing needs etc. This column represents our best estimates and this granular approach was not part of the Board approved budget.
Major operating categories of Data Management fees and PG&E Service fees are based on the customer account totals and are closely aligned to budget.
In addition to the items mentioned above, SCP continues its trend of remaining near or under budget for most of its operating expenses.
ATTACHMENTS
December 2021 Financials
UPCOMING MEETINGS
Community Advisory Committee – March 17, 2022
Board of Directors – April 7, 2022
Community Advisory Committee – April 21, 2022
Board of Directors – May 5, 2022
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1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Sonoma Clean Power Authority
Management is responsible for the accompanying special purpose statement of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended December 31, 2021, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Sonoma Clean Power Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 26, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 21 of 40
2021/22 YTD
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget Variance
(Under) Over
2021/22 YTD
Actual / Budget % 2021/22 Budget
2021/22 Budget
Remaining
REVENUE AND OTHER SOURCES: Electricity (net of allowance) * 89,414,979 $ 89,953,456 $ 538,477 $ 101% 179,277,000 $ 89,323,544 $ Evergreen Premium (net of allowance) 994,766 1,106,986 112,220 111% 2,074,000 967,014 Inflow from Operating Account Fund Reserves - - - 0% 1,353,000 1,353,000 CEC Grant 1,032,500 571,133 (461,367) 55% 2,065,000 1,493,867 BAAQMD grant 25,000 71,250 46,250 285% 50,000 (21,250)
Interest income 420,000 151,484 (268,516) 36% 840,000 688,516 Total revenue and other sources 91,887,245 91,854,309 (32,936) 100% 185,659,000 93,804,691 EXPENDITURES AND OTHER USES:CURRENT EXPENDITURES Cost of energy and scheduling 85,221,073 88,110,462 2,889,389 103% 159,436,000 71,325,538 Data management 1,598,772 1,596,435 (2,337) 100% 3,198,000 1,601,565 Service fees- PG&E 486,279 485,335 (944) 100% 973,000 487,665 Personnel 3,100,000 2,550,804 (549,196) 82% 6,200,000 3,649,196 Outreach and communications 675,000 430,673 (244,327) 64% 1,350,000 919,327 Customer service 181,500 216,037 34,537 119% 363,000 146,963 General and administration 570,000 534,772 (35,228) 94% 1,140,000 605,228 Legal 205,000 195,502 (9,498) 95% 410,000 214,498
Regulatory and compliance 215,000 99,956 (115,044) 46% 430,000 330,044 Accounting 122,500 117,570 (4,930) 96% 245,000 127,430 Legislative 60,000 - (60,000) 0% 120,000 120,000
Other consultants 112,500 149,122 36,622 133% 225,000 75,878 Industry memberships and dues 268,000 238,486 (29,514) 89% 536,000 297,514 Program implementation 2,820,000 963,558 (1,856,442) 34% 5,640,000 4,676,442 Program - CEC grant 2,000,000 748,213 (1,251,787) 37% 4,000,000 3,251,787 Total current expenditures 97,635,624 96,436,925 (1,198,699) 99% 184,266,000 87,829,075 OTHER USES Capital outlay 696,500 810,948 114,448 116% 1,393,000 582,052 Total Expenditures, Other Uses and Debt Service 98,332,124 97,247,873 (1,084,251) 99% 185,659,000 88,411,127 Net increase (decrease) in available fund balance (6,444,879) $ (5,393,564) $ 1,051,315 $ - $ 5,393,564 $ * Represents sales of approximately 1,159,000 MWh for 2021/22 YTD actual.
RESERVES Current Balance
% of Long-Term Target Long-Term Target Balance
Operating Cash Reserve 59,345,000 $ 64% 92,133,000 $ Program Cash Reserve 10,868,000 59% 18,426,600 Collateral Cash Reserve 2,240,000 14% 15,943,600 72,453,000 $ 57% 126,503,200 $
SONOMA CLEAN POWER AUTHORITY
Six Months Ended December 31, 2021
BUDGETARY COMPARISON SCHEDULE
OPERATING FUND
See accountants' compilation report. 2
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Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ (5,393,564)
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Subtract depreciation expense (682,038)
Add back capital asset acquisitions 827,898
Add back certain program expenses
recognized for budget purposes only (200,000)
Change in net position $ (5,447,704)
REVENUES, EXPENSES AND CHANGES IN NET POSITION
Six Months Ended December 31, 2021
SONOMA CLEAN POWER AUTHORITY
OPERATING FUND
BUDGET RECONCILIATION TO STATEMENT OF
See accountants' compilation report.
23 of 40
3 1
ACCOUNTANTS’ COMPILATION REPORT
Management
Sonoma Clean Power Authority
Management is responsible for the accompanying financial statements of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2021, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 26, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 24 of 40
Current assets
Cash and cash equivalents 47,428,322 $
Accounts receivable, net of allowance 19,562,004
Other receivables 1,396,569
Accrued revenue 8,580,897
Prepaid expenses 979,583
Deposits 4,779,205
Total current assets 82,726,580
Noncurrent assets
Unrestricted cash in Rate Stabilization Fund 26,000,000 Land 860,520
Capital assets, net of depreciation 19,185,914
Deposits 6,160,922
Total noncurrent assets 52,207,356
Total assets 134,933,936
Current liabilities
Accrued cost of electricity 11,967,849
Accounts payable 1,111,239
Other accrued liabilities 1,039,714
User taxes and energy surcharges due to other governments 574,625 Total current liabilities 14,693,427
Rate Stabilization Fund 26,000,000
Investment in capital assets 20,046,434
Unrestricted 74,194,075
Total net position 94,240,509 $
NET POSITION
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF NET POSITION
As of December 31, 2021
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
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OPERATING REVENUES
Electricity sales, net 89,953,456 $
Evergreen electricity premium 1,106,986
Grant revenue 642,383
Total operating revenues 91,702,825
OPERATING EXPENSES
Cost of electricity 88,110,462
Contract services 4,413,507
Staff compensation 2,550,804
General and administration 978,627
Program rebates and incentives 566,575
Depreciation 682,038
Total operating expenses 97,302,013
Operating income (loss) (5,599,188)
NONOPERATING REVENUES (EXPENSES)
Interest income 151,484
Nonoperating revenues (expenses), net 151,484
CHANGE IN NET POSITION (5,447,704)
Net position at beginning of period 99,688,213
Net position at end of period 94,240,509 $
Six Months Ended December 31, 2021
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 3
26 of 40
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 91,885,372
Other operating receipts 3,076,479
Payments to electricity suppliers (93,331,460)
Payments for other goods and services (5,933,656)
Payments for staff compensation (2,591,326)
Tax and surcharge payments to other governments (1,159,600) Payments for program rebates and incentives (614,991)
Net cash provided (used) by operating activities (8,669,182)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (3,152,458)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 153,598
Net cash provided (used) by investing activities 153,598 Net change in cash and cash equivalents (11,668,042)
Cash and cash equivalents at beginning of year 85,096,364 Cash and cash equivalents at end of period $ 73,428,322 Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) $ 47,428,322 Unrestricted cash and cash equivalents (noncurrent) 26,000,000 Cash and cash equivalents $ 73,428,322
Six Months Ended December 31, 2021
STATEMENT OF CASH FLOWS
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 4
27 of 40
Operating income (loss) $ (5,599,188)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 682,038
Revenue adjusted for allowance for uncollectible accounts 1,858,390 (Increase) decrease in:
Accounts receivable (2,645,264)
Other receivables 144,275
Accrued revenue 397,707
Prepaid expenses 130,759
Deposits (986,289)
Increase (decrease) in:
Accrued cost of electricity (1,202,992)
Accounts payable (576,783)
Accrued liabilities (1,093,132)
User taxes due to other governments 54,497
Supplier security deposits 166,800
Net cash provided (used) by operating activities $ (8,669,182)
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF CASH FLOWS (continued)
Six Months Ended December 31, 2021
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 5
28 of 40
Staff Report – Item 04
To: Sonoma Clean Power Authority Board of Directors
From: Neal Reardon, Director of Regulatory Affairs
Geof Syphers, Chief Executive Officer
Issue: Receive Legislative and Regulatory Updates and Approve Positions on AB 1814 (Grayson) Transportation Electrification and Other Bills as Appropriate
Date: March 3, 2022
Requested Action:
Receive legislative and regulatory updates and approve a support position on AB 1814 and other legislative positions as the Board deems appropriate.
Updates:
New Rates Going into Effect March 1st, 2022
On February 10th the CPUC approved the Proposed Decision in PG&E’s Energy Resources Recovery Account (“ERRA”) Forecast proceeding which would lower exit fees levied on CCA customers and raise PG&E’s bundled generation rates. This concludes a nearly 9-month process of litigation and data requests. Changes to PG&E bundled rates and the PCIA exit fee will go into effect March 1st, 2022. The new rates are consistent with what CCA staff expected and will allow for the agency to recoup funds used in the current fiscal year to reduce SCP customer costs.
SCP staff will bring a separate item to the board recommending adoption of rates based on the final rates adopted by PG&E. Adjustments to SCP rates would go into effect on April 1st, 2022.
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Proposed Decision Reforming Net Energy Metering (“NEM”) Delayed Until Further Notice
As discussed during our February 3rd Board of Directors Meeting, the CPUC issued a Proposed Decision revising net energy metering 2.0 (“NEM 2.0”) and replacing it with “Net Billing.” These tariffs are what allow customers with onsite renewable generation – often solar systems on their roofs – to receive financial credits for the energy they produce. The Proposed Decision would reduce the subsidies provided by all customers to those who participate in NEM. During the February 3rd Board of Directors Meeting, the Board directed Sonoma Clean Power staff to submit a letter opposing several aspects of the Proposed Decision. The letter is attached to this item.
The Assigned Judge has since notified stakeholders that this Proposed Decision will not be voted on until further notice. The Judge plans to re-open the proceeding for an additional round of oral arguments. This would allow all five Commissioners – two of whom were recently appointed – to participate in oral arguments and fully develop their positions on NEM reform.
Legislative Updates:
SB 881 (Min) Integrated Resource Plans
The Union of Concerned Scientists (UCS) is sponsoring a bill intending to ensure that all electric providers meet the greenhouse gas reduction goals implied by SB 100.
The situation is that SB 100 sets requirements for increasing use of renewable power sources and hydropower, and those requirements amount to de facto greenhouse gas requirements. However, UCS likely recognizes that the current penalties for missing the SB 100 requirements are currently low enough that at least one direct access provider has flagrantly ignored those requirements.
Staff’s concern is that the bill’s current language could slow down SCP’s progress on procuring clean resources, limit SCP’s ability to determine what kinds of clean power resources should be used, and increase ratepayer costs. These concerns arise because the bill would grant new powers to the CPUC to determine the mix of clean power resources a CCA must use to meet its greenhouse gas goals, and new powers to order backstop procurement of those resources. Such an approach risks significantly higher ratepayer costs since it assumed the CPUC has perfect foresight of the availability of resources, changes in market prices and knowledge of local needs.
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Staff’s intention is to work with UCS to help them achieve their goal of ensuring the State’s greenhouse gas goals implied in SB 100 are achieved, while working to preserve SCP’s ability to determine the best manner to achieve those goals.
SB 1158 (Becker) Hourly Greenhouse Gas Reporting
In a similar spirit to SB 881, this bill proposes to establish a number of new rules around integrated resource plans, greenhouse gas requirements, compliance reporting, and proposes a 24/7 hourly basis for these new rules. Staff are reviewing this bill.
AB 1814 (Grayson) Transportation Electrification – Recommend SUPPORT CalCCA is sponsoring a bill to explicitly allow CCAs to apply to transportation electrification funding at the CPUC. If passed, this bill would greatly increase the stability of funds available to administer for local electric vehicle infrastructure and related work. Staff’s current activities are related to seeking coauthors and building a coalition to support access to these funds, which all electric customers pay for.
SB 1287 (Bradford) Financial Security Requirements for CCAs In existing law, CCAs must post a bond with the CPUC to cover the costs of six months of incremental power resources in case a CCA should fail and cause their customers to go back to the IOU. This bill would increase the bond amount to be the estimated incremental procurement costs for twelve months and set a floor for the bond of $500,000. The bond would have no upper limit.
Staff are concerned this bill could discourage or prevent new CCAs from forming, particularly in rural and poor areas, since the bond amount could be quite large and would need to be posted prior to a new CCA receiving any income. By increasing the bond amount, the bill could also play a contributing factor in causing a CCA to fail, since the amount can be adjusted upward during increases in energy market costs, even in situations where a CCA acts responsibly and procures its energy in advance.
In such a situation, a CCA could be faced with double the price exposure of an IOU, in which case this bill could contribute to its failure.
Staff flag this bill, but wish to engage the author before taking a position. 31 of 40
Attachments:
SCP Letter re: NEM Reform A. Reynolds
AB 1814 Bill Language
AB 1814 Fact Sheet
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431 E Street
Santa Rosa, CA 95404
sonomacleanpower.org
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california legislature—2021–22 regular session
ASSEMBLY BILL No. 1814
Introduced by Assembly Member Grayson
February 7, 2022
An act to amend Section 740.12 of the Public Utilities Code, relating to electricity.
legislative counsel’s digest
AB 1814, as introduced, Grayson. Transportation electrification:
community choice aggregators.
The California Constitution and the Public Utilities Act vest the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the State Air Resources Board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. Existing law requires that those programs proposed by electrical corporations seek to minimize overall costs and maximize overall benefits. Existing law requires the PUC to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, if they are consistent with the above-described purposes, do not unfairly compete with nonutility enterprises, include performance accountability measures, and are in the interests of ratepayers.
99 35 of 40
Existing law authorizes a community choice aggregator to aggregate the electrical load of interested electricity consumers within its boundaries and requires a community choice aggregator to file an implementation plan with the PUC, to register with the PUC, and to enter into an operating service agreement with an electrical corporation.
This bill would, as part of the PUC’s program described above, authorize community choice aggregators to file applications for programs and investments to accelerate widespread transportation electrification, as specified.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of this bill would be a part of the act and because a violation of a PUC action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 740.12 of the Public Utilities Code is line 2 amended to read:
line 3 740.12. (a) (1) The Legislature finds and declares all of the line 4 following:
line 5 (A) Advanced clean vehicles and fuels are needed to reduce line 6 petroleum use, to meet air quality standards, to improve public line 7 health, and to achieve greenhouse gas emissions reduction goals. line 8 (B) Widespread transportation electrification is needed to line 9 achieve the goals of the Charge Ahead California Initiative line 10 (Chapter 8.5 (commencing with Section 44258) of Part 5 of line 11 Division 26 of the Health and Safety Code).
line 12 (C) Widespread transportation electrification requires increased line 13 access for disadvantaged communities, low- and moderate-income line 14 communities, and other consumers of zero-emission and line 15 near-zero-emission vehicles, and increased use of those vehicles line 16 in those communities and by other consumers to enhance air 99 AB 1814 — 2 —
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line 1 quality, lower emissions of greenhouse gases emissions, gases, line 2 and promote overall benefits to those communities and other line 3 consumers.
line 4 (D) Reducing emissions of greenhouse gases to 40 percent below line 5 1990 levels by 2030 and to 80 percent below 1990 levels by 2050 line 6 will require widespread transportation electrification. line 7 (E) Widespread transportation electrification requires electrical line 8 corporations load-serving entities, as defined in Section 380, to line 9 increase access to the use of electricity as a transportation fuel. line 10 (F) Widespread transportation electrification should stimulate line 11 innovation and competition, enable consumer options in charging line 12 equipment and services, attract private capital investments, and line 13 create high-quality jobs for Californians, where technologically line 14 feasible.
line 15 (G) Deploying electric vehicles should assist in grid line 16 management, integrating generation from eligible renewable energy line 17 resources, and reducing fuel costs for vehicle drivers who charge line 18 in a manner consistent with electrical grid conditions. line 19 (H) Deploying electric vehicle charging infrastructure should line 20 facilitate increased sales of electric vehicles by making charging line 21 easily accessible and should provide the opportunity to access line 22 electricity as a fuel that is cleaner and less costly than gasoline or line 23 other fossil fuels in public and private locations. line 24 (I) According to the State Alternative Fuels Plan analysis by line 25 the Energy Commission and the State Air Resources Board, light-, line 26 medium-, and heavy-duty vehicle electrification results in line 27 approximately 70 percent fewer greenhouse gases emitted, over line 28 85 percent fewer ozone-forming air pollutants emitted, and 100 line 29 percent fewer petroleum used. These reductions will become larger line 30 as renewable generation increases.
line 31 (2) It is the policy of the state and the intent of the Legislature line 32 to encourage transportation electrification as a means to achieve line 33 ambient air quality standards and the state’s climate goals. line 34 Agencies designing and implementing regulations, guidelines, line 35 plans, and funding programs to reduce emissions of greenhouse line 36 gas emissions gases shall take the findings described in paragraph line 37 (1) into account.
line 38 (b) (1) The commission, in consultation with the State Air line 39 Resources Board and the Energy Commission, shall direct electrical line 40 corporations corporations, and authorize community choice 99 — 3 — AB 1814
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line 1 aggregators, to file applications for programs and investments to line 2 accelerate widespread transportation electrification to reduce line 3 dependence on petroleum, meet air quality standards, achieve the line 4 goals set forth in the Charge Ahead California Initiative (Chapter line 5 8.5 (commencing with Section 44258) of Part 5 of Division 26 of line 6 the Health and Safety Code), and reduce emissions of greenhouse line 7 gases to 40 percent below 1990 levels by 2030 and to 80 percent line 8 below 1990 levels by 2050. Programs
line 9 (2) Programs proposed by electrical corporations or community line 10 choice aggregators shall seek to minimize overall costs and line 11 maximize overall benefits. The benefits, including through line 12 leveraging nonratepayer funding sources.
line 13 (3) The commission shall approve, or modify and approve, line 14 programs and investments in transportation electrification, line 15 including those that deploy charging infrastructure, via a reasonable line 16 cost recovery mechanism, if they are consistent with this section, line 17 do not unfairly compete with nonutility enterprises as required line 18 under Section 740.3, include performance accountability measures, line 19 and are in the interests of ratepayers as defined in Section 740.8. line 20 Not
line 21 (4) If a community choice aggregator’s application is approved, line 22 the applicable electrical corporation shall collect the approved line 23 charge from its distribution customers and shall distribute those line 24 moneys to the community choice aggregator pursuant to the line 25 approved application.
line 26 (5) Not less than 35 percent of the investments made pursuant line 27 to this subdivision shall be in underserved communities line 28 communities, as that term is defined in Section 1601. line 29 (c) The commission shall review data concerning current and line 30 future electric transportation adoption and charging infrastructure line 31 utilization prior to use before authorizing an electrical corporation line 32 to collect new program costs related to transportation electrification line 33 in customer rates. If market barriers unrelated to the investment line 34 made by an electric corporation or community choice aggregator line 35 prevent electric transportation from adequately utilizing using line 36 available charging infrastructure, the commission shall not permit line 37 additional investments in transportation electrification without a line 38 reasonable showing that the investments would not result in line 39 long-term stranded costs recoverable from ratepayers. 99 AB 1814 — 4 —
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line 1 (d) This section applies to an application to the commission for line 2 transportation electrification programs and investments if one of line 3 the following conditions is met:
line 4 (1) The application is filed on or after January 1, 2016. line 5 (2) The application is filed before January 1, 2016, but has an line 6 evidentiary hearing scheduled on or after July 1, 2016. line 7 SEC. 2. No reimbursement is required by this act pursuant to line 8 Section 6 of Article XIIIB of the California Constitution because line 9 the only costs that may be incurred by a local agency or school line 10 district will be incurred because this act creates a new crime or line 11 infraction, eliminates a crime or infraction, or changes the penalty line 12 for a crime or infraction, within the meaning of Section 17556 of line 13 the Government Code, or changes the definition of a crime within line 14 the meaning of Section 6 of Article XIII B of the California line 15 Constitution.
O
99 — 5 — AB 1814
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ASSEMBLYMEMBER TIM GRAYSON
AB 1814
Transportation Electrification Funds: Community Choice Aggregators Summary:
AB 1814 would authorize Community Choice
Aggregators (CCAs) to submit applications to the
California Public Utilities Commission (CPUC) to
receive funding to administer transportation
electrification programs in their service areas.
Background:
California has held lofty initiatives of meeting
stringent air quality and climate change targets. A
major component in meeting these targets are the
state’s transportation objectives to achieve five million zero-emission vehicles (ZEVs) on the road by 20301
and 250,000 electric vehicle charging stations by
20252. These are essential because the transportation
sector contributes a large percentage of nitrogen
emissions, diesel particulate matter, and statewide
greenhouse gas (GHG) emissions.
The CPUC plays a critical role in achieving these
emission targets. Under their authority to regulate
Investor-Owned Utilities (IOUs), they are directing
strategic investments for transportation electrification projects, designing electricity rates, adopting vehicle-grid integration policy and pilot programs, and conducting program evaluation and interagency
coordination to ensure strategically coordinated ZEVs
investments.3
Alternative to IOUs, CCAs are local government
entities that supply energy needs for their
communities, offering an alternative and tailored
choice in the market and serve over 11 million
customers in more than 200 cities and counties. CCAs
can provide the communities that they serve with
competitively priced, clean energy choices while
reinvesting revenues into projects and programs,
supporting the local economy, such as offering
complementary programs such as EV charging and
battery storage.
1 https://www.ca.gov/archive/gov39/2018/01/26/governor-brown-takes-action-to-increase-zero-emission-vehicles-fund-new-climate-investments/index.html 2 https://www.ca.gov/archive/gov39/2012/03/23/news17472/index.html Problem:
The California Energy Commission (CEC) has
assessed California’s electric vehicle charging
infrastructure rollout and determined that the state will be almost 1 million chargers short of what will be
required to support the state’s 2035 EV adoption goals.
While CPUC authorizes IOUs to file applications to
receive ratepayer funded transportation electrification program funding, CCAs are not explicitly authorized
in existing law to access these funds, despite CCA
customers also paying into these same funds. As a
result, local leaders have little ability to tailor electric vehicle infrastructure and programs to serve residents
and businesses, particularly in traditionally
underrepresented areas.
Solution:
AB 1814 would explicitly authorize CCAs to file
applications for programs and investments to
accelerate widespread transportation electrification. In order to submit these applications, CCAs would be
regulated to meet all of the same requirements that
IOUs are currently required to meet.
In order to meet the state’s EV adoption goals, CCAs
must also be included in the solution. CCAs should be
given the opportunity to apply for funding through
CPUC for transportation electrification projects as a
means of potentially addressing energy needs as
identified by specific communities. By creating parity
within IOUs and CCAs, the state may be able to meet
our GHG emission reduction goals in the
transportation sector.
Support:
California Community Choice Association
(Sponsor)
Staff Contact:
Samantha Yturralde
[email protected]
(916) 319-2014
3 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/infrastructure/transportation-electrification 40 of 40