Agenda Page 1 of 2
AGENDA
BOARD OF DIRECTORS MEETING
THURSDAY, NOVEMBER 3, 2022
9:00 A.M.
___________________________________________________________ **RE CORONAVIRUS COVID-19**
**HYBRID MEETING (IN PERSON AND REMOTE ATTENDANCE)***
CONSISTENT WITH THE PROVISIONS OF AB 361, MEMBERS OF THE BOARD OF DIRECTORS MAY PARTICIPATE IN THE NOVEMBER 3, 2022, MEETING REMOTELY OR IN PERSON AT THE LOCATION SHOWN BELOW.
SONOMA CLEAN POWER HEADQUARTERS
431 E STREET
SANTA ROSA, CA 95404
For Those Participating Remotely:
• Webinar link: https://us06web.zoom.us/j/88546704126
• Telephone number: 1 (253) 215-8782
• Meeting ID: 885 4670 4126
How to Submit Public When Participating Remotely:
The Chair will request public comment during the Public Comment period for all items on the agenda. Comments may be provided in person at the physical meeting location. 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) 757-9417, 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. Approve October 6, 2022, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve)
2. Authorize Extension of Sonoma Clean Power Authority Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361 (Staff Recommendation:
Approve)
3. Receive Geothermal Opportunity Zone Update (Staff Recommendation:
Receive and File)
4. Approve and Delegate Authority to the CEO or his Designee to Execute the Second Amendment to an Agreement with The Engine is Red, with a Not-to-Exceed Amount of $140,000 (Staff Recommendation: Approve)
5. Approve and Delegate Authority to the CEO or Designee to Execute Agreement for Professional Services with Maher Accountancy through June 30, 2024, with a Not-to-Exceed Amount of $450,000 (Staff Recommendation:
Approve)
6. Approve Continued Use of Updated B-6 Rate Effective October 1, 2022 (Staff Recommendation: Approve)
BOARD OF DIRECTORS REGULAR CALENDAR
7. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate (Staff Recommendation: Receive and File)
8. Receive Legislative and Regulatory Updates and Provide Direction as Appropriate (Staff Recommendation: Receive and File)
9. Receive Overview of Workplace Electric Vehicle Charging Research Project Proposal and Provide Direction as Appropriate (Staff Recommendation:
Receive and File)
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
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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. NEM is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
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 45
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DRAFT MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, OCTOBER 6, 2022
9:00 A.M.
___________________________________________________________ **RE CORONAVIRUS COVID-19**
**HYBRID MEETING (IN PERSON AND REMOTE ATTENDANCE)**
CONSISTENT WITH THE PROVISIONS OF AB 361 WHICH SUSPENDED CERTAIN
REQUIREMENTS OF THE BROWN ACT, MEMBERS OF THE BOARD OF DIRECTORS PARTICIPATED IN THE OCTOBER 6, 2022, MEETING IN PERSON AND BY REMOTE ATTENDANCE.
CALL TO ORDER
(9:06 a.m. - Video Time Stamp: 00:06:21)
Chair King called the meeting to order.
Board Members present: Chair King, Vice Chair Fudge, and Directors Bagby, Landman, Peters, Elward, Rogers, Slayter, Felder, Gjerde and Hopkins.
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; Ryan Tracey, Director of Planning and Analytics; Joshua Nelson, Special Counsel and Katherine Brandenburg, the Brandenburg Group.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:07 a.m. - Video Time Stamp: 00:07:35)
1. Approve August 4, 2022, Draft Board of Directors Meeting Minutes
2. Authorize Extension of Sonoma Clean Power Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361
3. Adopt a Resolution Attesting to the Accuracy of Sonoma Clean Power Authority’s 2021 Power Source Disclosure Annual Reports for CleanStart and EverGreen Products and 2021 Power Content Label
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Public Comment: None
Motion to Approve the October 6, 2022, Board of Directors Consent Calendar by Director Landman
Second: Director Rogers
Motion passed by roll call vote
ABSTAIN: Hopkins, from Item 1.
AYES: Bagby, Landman, Peters, King, Elward, Rogers, Slayter, Felder, Fudge, Gjerde, Hopkins
BOARD OF DIRECTORS REGULAR CALENDAR
4. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:10 a.m. - Video Time Stamp: 00:10:38)
Stephanie Reynolds, Director of Internal Operations, told the Board about a news clip on KPIX CBS News that discussed solar backup power system kits SCP provided to local firehouses. She mentioned that the Advanced Energy Center would be hosting its Grand Opening on Friday, October 7, 2022.
Geof Syphers, CEO, discussed the SCP Headquarters being the world’s first GridOptimal microgrid. He discussed the heat storm that hit California the week of Labor Day and the State’s response to it. He discussed Southern Humboldt County getting notice from PG&E that all new construction needs to stop due to their transmission being overloaded. He mentioned the upcoming 2022 27th International Conference of Parties Climate Talks which Directors Rogers and Elward will be attending along with representatives from the Sonoma County Board of Supervisors and Sonoma Water. He added that SCP will help fill the funding gap for this trip with a $35,000 donation.
Director Slayter asked about the participation numbers for EverGreen, CEO Syphers explained they would be added to the Operation Report at the next meeting.
Public Comment: None
5. Receive Legislative and Regulatory Updates and Provide Direction as Appropriate
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(9:41 a.m. - Video Time Stamp: 00:42:03)
Neal Reardon, Director of Regulatory Affairs, discussed a proposal by PG&E to allow the utility to force customers off the bulk power grid in the interest of removing overhead power lines in areas with high fire threats. He stated that SCP provided limited authorization for so-called “remote grids” in 2020 when PG&E includes both SCP and the affected customers in making the decision to permanently disconnect them from the grid. Director Reardon pointed out that that giving PG&E unilateral power to make decisions that change SCP’s eligible service territory and may negatively impact customers is not prudent, and that SCP will challenge this. CEO Syphers mentioned an example of a positive remote grid project at Pepperwood Preserve, in which PG&E engaged SCP and the customer, and ultimately led to a plan for PG&E to construct their first ever 100% renewable system.
Katherine Brandenburg of the Brandenburg Group gave a legislative update to the Board. She mentioned that Gov. Newsom has signed 42 climate-related bills including SB 1020 (Laird). CEO Syphers discussed SB 1158 (Becker). Josh Nelson, Special Counsel, discussed AB 2449 (Rubio) which and SB 1100 (Cortese).
10:08 a.m. Director Rogers exited the meeting.
Chair King requested that the impact of the climate bills be sent to the Board.
Rebecca Simonson, Director of Programs, invited the Board Members and their respective agencies to electrify all municipal buildings by 2030 and offered SCP staff as a resource.
Chair King asked if there would be no change in rates related to Diablo Canyon and Director Reardon answered that he would come back with an item detailing the changes. Director Bagby requested an item looking into access to energy audits.
Public Comment: None
6. Approve Authorize the Chief Executive Officer or his Designee to Execute Memorandum of Understanding Agreements with GeoZone Private Partners and Initiate Negotiations of Public-Private Cooperation Agreements (10:34 a.m. - Video Time Stamp: 01:33:48)
Ryan Tracey, Director of Planning and Analytics, introduced this item. He explained that SCP started their solicitation period in the spring to investigate 7 of 45
geothermal energy sources and had selected three companies to move forward with: Eavor, Chevron New Energies, and Cyrq Energy. He explained the goal of the GeoZone to add local geothermal capacity without reducing the output from existing geothermal operations, and recommended moving forward with all three companies.
10:45 a.m. Director Peters exited the meeting.
Directors Bagby and Elward expressed concerns about investments in oil companies. CEO Syphers added that Chevron is aware of SCP’s concerns with their history.
Public Comment: Dick Dowd expressed appreciation for the GeoZone reports.
Motion to Approve Authorize the Chief Executive Officer or his Designee to Execute Memorandum of Understanding Agreements with GeoZone Private Partners and Initiate Negotiations of Public-Private Cooperation Agreements by Director Landman.
Second: Director Fudge
Motion passed by roll call vote
AYES: Bagby, Landman, King, Elward, Slayter, Felder, Fudge, Gjerde, Hopkins ABSENT: Peters, Rogers
11:14 a.m. The Board entered recess.
11:24 a.m. The Board reconvened.
7. Adopt Staff’s Preferred Portfolio for the 2022 Integrated Resource Plan Filing (11:24 a.m. - Video Time Stamp: 02:24:13)
Director Tracey introduced the Integrated Resource Plan (IRP) as an internal way to make meaningful differences in climate goals. He explained that the plan is informed by compliance obligations, internal SCP goals, and practical operational needs. He stated that the new goals in this IRP include 100% hourly carbon mitigation by 2026 and an 80% winter evening reliability by 2030. He explained that because solar and storage is not as effective in the wintertime, this is the new challenge. He said that SCP’s preferred portfolio includes solar, wind, geothermal, and stand-alone storage, and that the IRP 8 of 45
plans it through 2040 while also phasing down reliance on biomass and hydropower.
Public Comment: None
Motion to Adopt Staff’s Preferred Portfolio for the 2022 Integrated Resource Plan Filing by Director Slayter.
Second: Director Elward
Motion passed by roll call vote
AYES: Bagby, Landman, King, Elward, Slayter, Felder, Fudge, Gjerde, Hopkins ABSENT: Peters, Rogers
8. Direct Board Ad Hoc Committee to Review Board Policies and Procedures (11:36 a.m. - Video Time Stamp: 02:33:35)
Chair King asked for volunteers to make up an Ad Hoc Committee to review SCP’s Board Policies and Procedures. Directors Landman, Gjerde, and Elward volunteered.
Public Comment: None
The Ad Hoc to Review Board Policies and Procedures was created by acclamation from the Board.
9. Approve Salary Increase, an Amendment to the Chief Executive Officer’s Employment Contract and Annual Contract Goals for Chief Executive Officer Syphers
(11:41 a.m. - Video Time Stamp: 02:41:05)
Chair King recommended approval of the 3% increase and a one-time increase of 7% due to inflationary pressures and expressed his gratitude to have CEO Syphers leadership at SCP.
Public Comment: None
Motion to Approve Salary Increase, an Amendment to the Chief Executive Officer’s Employment Contract and Annual Contract Goals for Chief Executive Officer Syphers by Director Gjerde
Second: Director Bagby
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Motion passed by roll call vote
AYES: Bagby, Landman, King, Elward, Slayter, Felder, Fudge, Gjerde, Hopkins ABSENT: Peters, Rogers
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(11:44 a.m. - Video Time Stamp: 02:44:27)
Director Slayter mentioned that the City of Sebastopol had adopted smart meters and asked for SCP’s help in getting word to the people of Sebastopol about the benefits of using them.
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(11:46 a.m. - Video Time Stamp: 02:46:46)
Public Comment: Mike Nicholls asked about the press release regarding PG&E and Pacific Generation LLC and asked whether SCP could provide input and CEO Syphers responded that PG&E’s stated purpose is to raise capital.
Madge Strong thanked CEO Syphers for speaking with members of the public in Mendocino County.
CLOSED SESSION
(11:50 a.m. - Video Time Stamp: 02:50:35)
10. Conference with Labor Negotiators – Agency Designated Representatives:
Chair King, Vice Chair Fudge Unrepresented Employee: Chief Executive Officer (Gov’t Code Section 54957.6)
11. Public Employee Performance Evaluation – Chief Executive Officer (Gov’t Code Section 54957)
ADJOURN
(11:50 a.m. - Video Time Stamp: 02:50:55)
Chair King adjourned the public meeting prior to convening Closed Session. 10 of 45
Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, CEO
Issue: Authorize Extension of Sonoma Clean Power Authority Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361 Date: November 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: Ryan Tracey, Director of Planning & Analytics
Geof Syphers, Chief Executive Officer
Issue: Receive Geothermal Opportunity Zone Update
Date: November 3, 2022
Background
The Geothermal Opportunity Zone (GeoZone) was established by the SCP Board of Directors and the Boards of Supervisors in Sonoma and Mendocino Counties to explore expanding local geothermal power capacity. The purpose of the GeoZone is to develop the resources necessary to allow SCP to stop relying on natural gas power plants altogether. To that end, the GeoZone is seeking to sustain existing local geothermal production and add 500 MW of new geothermal capacity.
Ongoing updates, information, and materials about the GeoZone can be found at https://sonomacleanpower.org/geozone.
Cooperation Agreements
Following approval from the Board on October 6, staff executed Memorandums of Understanding and started actively drafting cooperation agreements with all three private partners: Eavor Inc., Chevron New Technologies, and Cyrq Energy. SCP and all three partners have finished reviewing an outline summarizing the key components of the cooperation agreement. Staff hopes to complete first drafts of the agreements, incorporating feedback from the outline review soon.
After language for each agreement is drafted, staff will bring the cooperation agreements to the CAC for review and the Board for approval before executing. Staff does not necessarily expect all agreements to be completed concurrently. Although all three agreements started from a common template, each agreement will have milestones and provisions that are specific to the counterparty’s GeoZone proposal. 15 of 45
Site Opportunities
An early focus in the GeoZone will be identifying suitable sites to host new geothermal projects. Although private partners will be responsible for securing site control, SCP expects to use its relationships in the community to help convene potential site hosts.
Staff has pro-actively identified several opportunities with public agencies, tribal land, and large private landowners in the region and is beginning to reach-out to gauge their interest in hosting projects. Staff will also welcome any input from the CAC or public concerning site opportunities by e-mail at [email protected].
Grant Opportunities
There are several grant opportunities staff is actively tracking for potential GeoZone funding including:
• Department of Energy (DOE) Grid Resilience and Innovation Partnerships Program – The DOE is funding $10.5 billion in grants as part of the Bipartisan Infrastructure Law (BIL) to fund innovative projects that increase grid resiliency and facilitate deployment of cleaner energy sources. SCP responded to a Request for Information (RFI) on the program with comments supporting eligibility for projects like the GeoZone that are accelerating deployment of clean firm resources but may need financial assistance to overcome market and infrastructure barriers. The DOE may start accepting concept papers from applicants for this program by the end of the year.
• California Energy Commission (CEC) Long-duration Storage – The 2022-23 state budget included $240 million for non-lithium long duration storage. Details of the program are expected to be discussed at one of the upcoming CEC Business Meetings. Cyrq Energy’s thermal storage technology or dispatchable configurations of Eavor or Chevron New Energies may be strong candidates. • DOE Long-Duration Energy Storage Demonstration Initiative – The DOE is expected to also award $150 million in grants out of the Office of Clean Energy Demonstrations for innovative long-duration energy storage technologies. The estimated application opening date is by the end of this year. • DOE Bipartisan Infrastructure Law Enhanced Geothermal Systems (EGS) Pilot Demonstrations – The DOE is awarding $84 million for pilots to demonstrate new EGS technologies. SCP responded to an RFI in May 2022 with comments supporting a broad definition of technologies eligible for the grant—specifically asking that advanced closed-loop technologies be considered. SCP also highlighted attributes of a likely GeoZone application, such as pro-active 16 of 45
community involvement, that the DOE should preferentially consider. DOE has not announced a firm timetable for the application process.
California Public Utilities Commission (CPUC) Advocacy
The CPUC recently released a report it commissioned to investigate zero-carbon firm resources to consider for statewide resource planning in its Integrated Resource Planning (IRP) process. The report mostly relied on third-party sources to compare the cost and viability of different candidate technologies including small modular nuclear reactors, enhanced geothermal systems (EGS), carbon capture and storage (CCS), non-lithium energy storage (including hydrogen and renewable fuels). Possibly because of the long-time lag since the last significant California geothermal developments, the report stated that “all technologies except EGS show promise as zero-carbon firm capacity,” which is directly contradictory to SCP’s own research and analysis. The CPUC’s portfolio modeling is incredibly influential in determining the trajectory of California’s energy transition as it is used as the basis for transmission planning, procurement orders, and prioritization of state funding.
In response, staff submitted informal comments to the CPUC sharing its own robust outlook for geothermal resources in providing clean firm capacity. The comments referenced some of SCP’s own analysis as well as recent academic work confirming the immense economic potential of geothermal development. SCP will continue to monitor the representation of geothermal in statewide planning efforts and has alerted the Department of Energy Geothermal Technology Office of the CPUC’s preliminary findings.
Other News
• The DOE announced their latest “earthshot” of slashing the cost of EGS to $45 per megawatt hour by 2035. Although speculative, the ambitious goal will guide DOE funding priorities and if successful will result in the widespread availability of clean and affordable energy.
• Chevron New Energies announced a joint collaboration agreement with Mitsui Oil Exploration Company (MOECO) to explore the feasibility of deploying advanced closed loop geothermal technology in Japan. Advanced closed. loop geothermal technology is also under consideration for Chevron New Energies’ development strategy in the GeoZone.
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Staff Report – Item 04
To: Sonoma Clean Power Authority Board of Directors
From: April Varellas, Brand Manager
Issue: Approve and Delegate Authority to the CEO or his Designee to Execute the Second Amendment to an Agreement with The Engine is Red, with a Not-to-Exceed Amount of $140,000
Date: November 3, 2022
Recommendation
Approve and delegate authority to the Chief Executive Officer, or his designee, to execute a second amendment to the current Professional Services Agreement (“PSA”) with The Engine is Red. This amendment will extend the agreement term through February 28, 2023, and add $51,000 to the not-to-exceed amount, bringing the new not-to-exceed amount from $89,000 to $140,000.
Background
This summer, Sonoma Clean Power launched the first phase of the Powering Everyday Moments brand campaign, which focuses on residential services.
SCP entered into a professional services agreement with local advertising agency The Engine is Red in April 2022 to develop the concept and the creative elements of the brand campaign (Attachment A). The agreement was first amended in August 2022 to extend the contract date for further work to be done, without increasing the not-to-exceed amount (Attachment B).
Discussion
Now that the residential Powering Everyday Moments campaign has launched, we desire to create a companion campaign promoting Sonoma Clean Power’s commercial services, including customer testimonials for both CleanStart and EverGreen customers in Sonoma and Mendocino counties.
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To achieve the commercial phase of the campaign, we are requesting a second amendment to the current agreement (Attachment C) to increase the not-to-exceed amount by fifty-one thousand ($51,000) for a new total of one hundred and forty thousand dollars ($140,000). We also request to extend the agreement term from December 2022 to February 28, 2023, to allow us to complete this work.
Fiscal Impact
$51,000 of additional spending, all of which is already in the FY2022/23 approved budget.
Community Advisory Committee Review
The CAC recommended the approval of this item on October 20, 2022.
Attachments
➢ Attachment A – The Engine is Red Professional Services Agreement for Branding Campaign, available at this link or by request to the Clerk of the Board
➢ Attachment B – The Engine is Red Amendment #1 for Branding Campaign, available at this link or by request to the Clerk of the Board ➢ Attachment C – The Engine is Red Draft Amendment #2 for Branding Campaign, available at this link or by request to the Clerk of the Board 20 of 45
Staff Report – Item 05
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Michael Koszalka, Chief Operating Officer
Issue: Recommend the Board of Directors Approve and Delegate Authority to the CEO or Designee to Execute Agreement for Professional Services with Maher Accountancy through June 30, 2024, with a Not-to-Exceed Amount of $450,000
Date: November 3, 2022
Recommendation
Recommend that the Board approve and delegate authority to the CEO or designee to execute an agreement for professional services with Maher Accountancy, for general accounting services, for a period of two years, through June 30, 2024, with a not-to exceed amount of $450,000.
Background
Maher Accountancy (Maher) has been SCP’s primary accountant since 2013, with several prior contracts and extension amendments for services. Following the recommendation of the Community Advisory Committee (Committee), staff issued a Request for Proposals (RFP) in August of this year to explore our options for accounting services. Although the RFP was published on our website and with the California Society of CPAs, Maher was the sole respondent to the RFP.
Maher has been a key partner in SCP’s operations since our formation. They perform general accounting services and have been instrumental in financial risk management, budgeting, contract tracking, payroll, invoice processing and other operational processes. SCP contracts with a separate accounting firm, currently Pisenti and Brinker, for our annual fiscal-year independent audits. 21 of 45
Community Advisory Committee Review
The Community Advisory Committee recommended the Board approve this new contract with Maher Accountancy.
Discussion
As the accounting services specific to CCAs are critical to a successful organization, staff recommends continuation of our working relationship with Maher. Maher has expanded their team over the last several years to provide services to several CCAs across the state and are familiar with the scope and breadth of the accounting needs of SCP. They work well with our team and have achieved clean outside audits in every year since 2013.
Fiscal Impact
The costs for accounting services, including annual audits are included in the 2022- 2023 Fiscal Year Budget. Costs to be incurred in subsequent fiscal years will be included in the draft budget(s) to be recommended by the Committee and approved by the Board of Directors.
Attachments
Attachment A – Draft Agreement for Professional Services, available at this link or by request to the Clerk of the Board
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Staff Report – Item 06
To: Sonoma Clean Power Authority Board of Directors
From: Chris Golik, Revenue Manager
Issue: Approve Continued Use of Updated B-6 Rate Effective October 1, 2022 Date: November 3, 2022
Recommendation
Approve the continued use of SCP’s updated B-6 rate, adopted on October 1, 2022, under the CEO’s authority to make temporary rate changes. The new B-6 rate matches PG&E’s October 1, 2022, B-6 rate.
Background
SCP previously lowered rates on July 1, 2022, resulting in rates that were the same or lower than PG&E’s on a total bill basis for all customers. PG&E subsequently updated their B-6 rate on October 1, 2022.
Per Section 4.5.2.1.1 of SCPA’s Joint Powers Agreement, “…the Chief Executive Office may change any rate for power sold by the Authority or any charge for services provided by the Authority if (a) the need for the change arises from…(ii) a change in rates or charges imposed on the Authority or its customers by PG&E, the CPUC, or any other regulatory agency…; and (b) the Chief Executive Officer determines, following consultation with the Chair of the Board of Directors, that the change is reasonably necessary for budgetary reasons or to keep the Authority's rates and charges competitive. Changes in rates or charges made by the Chief Executive Officer under this Section shall be brought to the Board of Directors at the next scheduled meeting for consideration and shall expire after 90 days unless ratified by the Board of Directors.”
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Discussion
On October 1, 2022, PG&E updated their B-6 rate to change the various time-of-use rates. In response, and because some of PG&E’s new time-of-use rates were below SCP’s rates, the CEO decided to update SCP’s B-6 rate on October 1, 2022, to match PG&E’s new generation rates. Total rates increased during the summer peak period and decreased in all other periods. On average, the change is expected to reduce charges slightly for SCP’s B-6 customers on a total bill basis.
Fiscal Impact
The October 1, 2022, B-6 rate change is expected to decrease FY2022-23 revenue by approximately $300,000 or about 0.1% of budgeted electricity sales.
Community Advisory Committee Review
The Community Advisory Committee unanimously recommended approval to the Board of Directors at their October 20, 2022, meeting.
Attachments
SCP Rate Schedule Effective October 1, 2022, available at this link or by request to the Clerk of the Board
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Staff Report – Item 07
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: November 3, 2022
WATER AND ENERGY EDUCATION
As part of Sonoma Clean Power’s partnership with Sonoma Water, the Water and Energy Education Team recently co-hosted a 5-day professional development for 18 middle and high school teachers titled, Climate Change & Resilience in the North Bay.
Each day was spent with a local organization working on climate change solutions in Sonoma County.
The week culminated at the Advanced Energy Center where teachers worked through a series of escape-room type challenges created by Sonoma Water Education staff designed for high school students to learn key actions they can take to reduce carbon emissions locally.
This workshop helped create new partnerships between teachers and the many entities in Sonoma County working to find solutions to the challenges of a changing climate.
SCP HOSTS CONGRESSMAN THOMPSON’S PRESS CONFERENCE
On October 25th, Congressman Mike Thompson held a press conference at Sonoma Clean Power’s Advanced Energy Center, including local business and agriculture leaders, elected officials, and local climate action students to talk about the historic impact of the Inflation Reduction Act. Local and Bay Area news outlets covered the press conference. Click here to view a news segment from KTVU Channel 2 News . 25 of 45
CUSTOMER PARTICIPATION
(10/27/22)
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MONTHLY COMPILED FINANCIAL STATEMENTS
The year-to-date change in net position is better than projections. Revenue from electricity sales and cost of energy both exceed budget projections, but the result was favorable as the increase in revenue exceeded that of cost of energy. Year-to-date electricity sales reached $52,222,000.
SCP maintains a balanced portfolio by procuring electricity from multiple sources. Net position reached a positive $146,911,000, which indicates healthy growth as SCP continues to make progress towards its reserve goals. Approximately $63,511,000 was set aside for operating reserves as of June 30, 2021. Operating reserves are expected to increase to near the minimum reserve balance as of June 30, 2022 and will be updated when audited financials become available.
Aside from cost of energy, most other operating expenses continued near or slightly below planned levels for the year.
BUDGETARY COMPARISON SCHEDULE
The accompanying budgetary comparison includes the 2022/23 budget approved by the Board of Directors.
The budget is formatted to make comparisons for both the annual and the year-to-date perspective. The first column, 2022/23 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.
Revenue from electricity sales to customers is over budget by approximately 16% at the end of the reporting period. The cost of electricity is more than the budget-to-date by approximately 6%. Variation in this account is typically due to fluctuating market cost of energy on open position purchases. 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.
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ATTACHMENTS
2022 Teacher Workshop Summary
August 2022 Financials
UPCOMING MEETINGS
Community Advisory Committee – November 17, 2022
Board of Directors – December 1, 2022
Community Advisory Committee – December 15, 2022
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The Water and Energy Education
Team recently co-hosted a 5-day
professional development for 18
middle and high school teachers
titled, Climate Change &
Resilience in the North Bay. Each
day was spent with a local
organization working on climate
change solutions in Sonoma
County.
During the week, teachers took a
tour of a prescribed burn and
learned about land stewardship
informed with Traditional
Ecological Knowledge at
Pepperwood Preserve, visited Windsor’s Community Garden to learn how to integrate solutions-focused projects at school with Daily Acts, toured the water system with Pam Jeane, and learned from Aaron Johnson and Carlos Diaz about drought and its impacts on salmonids and water supply. Towards the end of the week, teachers kayaked in Bodega Bay with Regional Parks and learned activities to share with students about ocean acidification and sea level rise with NOAA educator, Jennifer Stock. The week culminated at Sonoma Clean Power’s Advanced Energy Center where teachers worked through a series of escape room challenges created by Water Education staff designed for high school students to learn key actions they can take to reduce carbon emissions locally.
Teachers will implement lessons they developed
during the week and Water and Energy Education
staff plan to observe these lessons throughout the
school year. When complete, teachers will
receive a $1,000 stipend for the weeklong
workshop and for carrying out their lessons.
This workshop helped create new partnerships
between teachers and the many entities in
Sonoma County working hard to find solutions to
the challenges of a changing climate. It became
clear during the week that partnerships such as
these will be key in creating a more climate-resilient community. “Thank you from the bottom of my heart for this amazing experience that has shifted my whole perspective about the climate challenges awaiting all of us.”-Santa Rosa Middle School Teacher Teachers worked through a middle school
lesson on drought developed by Water
Education staff.
Teachers stop at a prescribed burn at Pepperwood Preserve. 29 of 45
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 August 31, 2022, 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
September 29, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 30 of 45
2022/23 YTD
Budget
2022/23 YTD
Actual
2022/23 YTD
Budget Variance
(Under) Over
2022/23 YTD
Actual / Budget % 2022/23 Budget
2022/23 Budget
Remaining
REVENUE AND OTHER SOURCES:
Electricity (net of allowance) * 45,688,665 $ 51,783,434 $ 6,094,769 $ 113% 244,400,000 $ 192,616,566 $ Evergreen Premium (net of allowance) 432,210 438,089 5,879 101% 2,312,000 1,873,911 CEC Grant 235,667 90,086 (145,581) 38% 1,414,000 1,323,914 Interest income 63,333 111,905 48,572 177% 380,000 268,095 Miscellaneous Income 170,833 - (170,833) 0% 1,025,000 1,025,000 Total revenue and other sources 46,590,708 52,423,514 5,832,806 113% 249,531,000 197,107,486 EXPENDITURES AND OTHER USES:
CURRENT EXPENDITURES
Cost of energy and scheduling 31,675,080 33,420,905 1,745,825 106% 171,380,000 137,959,095 Data management 446,167 447,355 1,188 100% 2,677,000 2,229,645 Service fees- PG&E 163,167 163,171 4 100% 979,000 815,829 Personnel 1,233,762 1,197,905 (35,857) 97% 7,650,000 6,452,095 Energy Center, marketing & communications 451,144 368,742 (82,402) 82% 2,557,000 2,188,258 Customer service 55,169 34,704 (20,465) 63% 291,000 256,296 General and administration 187,699 215,407 27,708 115% 1,140,000 924,593 Legal 71,667 34,242 (37,425) 48% 430,000 395,758
Regulatory and compliance 86,633 45,618 (41,015) 53% 460,000 414,382 Accounting 43,000 34,000 (9,000) 79% 258,000 224,000
Legislative 36,667 16,000 (20,667) 44% 220,000 204,000
Other consultants 95,167 69,400 (25,767) 73% 571,000 501,600 Industry memberships and dues 130,000 111,839 (18,161) 86% 560,000 448,161 Program implementation 857,107 89,758 (767,349) 10% 6,025,000 5,935,242 Program - CEC grant 696,667 155,405 (541,262) 22% 4,180,000 4,024,595 Total current expenditures 36,229,096 36,404,451 175,355 100% 199,378,000 162,973,549
OTHER USES
Capital outlay 100,000 47,698 (52,302) 48% 600,000 552,302 Total Expenditures, Other Uses 36,329,096 36,452,149 123,053 100% 199,978,000 163,525,851 Net increase (decrease) in available fund balance 10,261,612 $ 15,971,365 $ 5,709,753 $ 49,553,000 $ 33,581,635 $ * Represents sales of approximately 363,000 MWh for 2022/23 YTD actual.
RESERVES Current Balance
% of Long-Term Target Long-Term
Targeted Balance
Operating Reserve (as of June 30, 2021) 63,511,000 $ 42% 152,948,000 $
SONOMA CLEAN POWER AUTHORITY
Two Months Ended August 31, 2022
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: $ 15,971,365
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Subtract depreciation expense (226,518)
Add back capital asset acquisitions 47,698
Change in net position $ 15,792,545
REVENUES, EXPENSES AND CHANGES IN NET POSITION
Two Months Ended August 31, 2022
SONOMA CLEAN POWER AUTHORITY
OPERATING FUND
BUDGET RECONCILIATION TO STATEMENT OF
See accountants' compilation report. 3
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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 August 31, 2022, 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
September 29, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 33 of 45
Current assets
Cash and cash equivalents $ 52,871,155
Accounts receivable, net of allowance 28,612,103
Other receivables 1,751,234
Accrued revenue 14,277,671
Prepaid expenses 2,407,410
Deposits 8,022,981
Investments 35,245,417
Total current assets 143,187,971
Noncurrent assets
Land 860,520
Capital assets, net of depreciation 18,557,969
Deposits 196,256
Total noncurrent assets 19,614,745
Total assets 162,802,716
Current liabilities
Accrued cost of electricity 12,886,064
Accounts payable 865,367
Other accrued liabilities 1,388,275
User taxes and energy surcharges due to other governments 752,440 Total current liabilities 15,892,146
Investment in capital assets 19,418,489
Unrestricted 127,492,081
Total net position $ 146,910,570
NET POSITION
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF NET POSITION
As of August 31, 2022
ASSETS
LIABILITIES
See accountants' compilation report. 2
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OPERATING REVENUES
Electricity sales, net $ 51,783,434
Evergreen electricity premium 438,089
Grant revenue 90,086
Total operating revenues 52,311,609
OPERATING EXPENSES
Cost of electricity 33,420,905
Contract services 1,358,033
Staff compensation 1,197,905
General and administration 355,414
Program rebates and incentives 72,196
Depreciation 226,516
Total operating expenses 36,630,969
Operating income (loss) 15,680,640
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 111,905
Nonoperating revenues (expenses), net 111,905
CHANGE IN NET POSITION 15,792,545
Net position at beginning of period 131,118,025
Net position at end of period $ 146,910,570
Two Months Ended August 31, 2022
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 3
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CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 50,282,641
Other operating receipts 738,231
Payments to electricity suppliers (37,061,725)
Payments for other goods and services (2,131,521)
Payments for staff compensation (1,125,236)
Tax and surcharge payments to other governments (546,682) Payments for program rebates and incentives (301,589)
Net cash provided (used) by operating activities 9,854,119
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (152,611)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 66,105
Net cash provided (used) by investing activities 66,105 Net change in cash and cash equivalents 9,767,613
Cash and cash equivalents at beginning of year 43,103,542 Cash and cash equivalents at end of period $ 52,871,155 Two Months Ended August 31, 2022
STATEMENT OF CASH FLOWS
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 4
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Operating income (loss) $ 15,680,640
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 226,516
Revenue adjusted for provision for uncollectible accounts 1,120,172 (Increase) decrease in:
Accounts receivable (2,836,901)
Other receivables (105,186)
Accrued revenue (845,862)
Prepaid expenses 553,833
Deposits (1,910,000)
Increase (decrease) in:
Accrued cost of electricity (3,712,682)
Accounts payable (440,343)
Accrued liabilities 2,046,907
User taxes due to other governments 77,025
Net cash provided (used) by operating activities $ 9,854,119
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF CASH FLOWS (continued)
Two Months Ended August 31, 2022
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 5
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Staff Report – Item 08
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 Provide Direction as Appropriate
Date: November 3, 2022
Requested Action
Receive legislative and regulatory updates and provide direction as appropriate.
Regulatory Updates
PG&E Submits Application to Form Pacific Generation Subsidiary On September 28th, PG&E submitted an application with the California Public Utilities Commission seeking approval to transfer generation assets to a new subsidiary, Pacific Generation LLC. The utility’s stated rationale for this proposal is to raise equity capital, deleverage its balance sheet, and avoid issuing additional common stock. PG&E reasons that Pacific Generation, without the liability of PG&E Corporation’s transmission and distribution infrastructure, would be viewed by investors as an entity with less risk.
A 49% ownership stake in all of PG&E’s utility-owned generation, with the exception of Diablo Canyon Power Plant, would be offered to investors. This subsidiary would remain wholly owned by PG&E, with the utility continuing to operate and maintain the facilities.
While Pacific Generation would collect revenues, PG&E would continue to bill customers for the costs to own and operate the plants. The Power Charge Indifference Adjustment (PCIA) exit fee would remain in place, with both PG&E and Pacific Generation levying separate PCIA charges, the sum of which would appear as a single line item on customer bills. PG&E states that rates would not be impacted by this transaction and that it would avoid diluting existing shareholders, including the Fire Victim Trust established in their most recent bankruptcy. 39 of 45
Staff have concerns that PG&E’s parent corporation may be trying to shield roughly $3 billion in assets from its next bankruptcy. Early exploration of this issue is focused on ensuring the true valuation of all of the assets and liabilities, i.e., not the “book” or “regulatory” values, but what the fraudulent transfer laws call the “fair value.” However, further review of this matter is underway to learn more about how to safeguard future fire victims from having PG&E’s generation assets unethically walled off from their claims. SCP staff will closely monitor this Application to ensure that if it were adopted neither customers nor the climate would be adversely impacted.
Estimated Impact of Diablo Canyon Power Plant Extension Senate Bill 846 (2022) supports the extension of PG&E’s Diablo Canyon Power Plant (DCPP) to 2030 with a $1.4 billion loan in anticipation of applying for a portion of the $6 billion offered in the U.S. DOE Civil Nuclear Credit Program. DCPP’s Nuclear Regulatory Commission license was set to expire November 2, 2024, for Plant 1 and August 26, 2025, for Plant 2. Under existing law, several revenue streams to replace the end of the capital investment return with the expiration of the license. However, the allocation of certain categories of costs is not always made clear in statute.
Assuming that all costs will be borne by PG&E-territory load serving entities and not spread to those in Southern California or territories served by municipal utilities, the table below shows the change in revenue requirements between the case where DCPP is retired on schedule and the life extension authorized in SB 846.
Legislative Update
Since the last report on October 6, 2022, the California legislative session has ended.
Any updates will be provided verbally at the meeting.
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Staff Report – Item 09
To: Sonoma Clean Power Authority Board of Directors
From: Brant Arthur, Program Manager
Rebecca Simonson, Director of Programs
Issue: Receive Overview of Workplace Electric Vehicle Charging Research Project Proposal and Provide Direction as Appropriate
Date: November 3, 2022
Recommendation
This is an informational item. No action is required.
Background
SCP staff is proposing to launch a Workplace Electric Vehicle Charging Research project. This project will invite local employers to partner with SCP to provide and manage adjustable output (aka ‘grid-enabled’) electric vehicle (EV) chargers at their workplaces.
The purpose is to determine how to deliver a cost-effective workplace charging program that supports grid reliability while focusing on providing access to charging for disadvantaged and low-to-moderate income (LMI) employees who may not have charging capability at home. The research project will help SCP test various dispatching strategies and hardware configurations in anticipation of eventually running a larger regional initiative.
Workplace charging is needed for two reasons:
• Charging during the day when solar power is plentiful helps support our region’s climate goals, aids with grid reliability, and increases our ability to adopt more EVs; and
• Provides access to charging for drivers who live in apartments, condominiums, and rental housing, or otherwise aren’t able to install charging infrastructure at 41 of 45
home. This is critical to aid California’s goal of phasing out the sale of gasoline-powered cars by 2035.
The growth of residential and utility solar generation statewide means there is an abundance of locally-produced renewable energy during the day, which could be beneficial to the grid when coupled with workplace EV charging.
A recent study on reducing the grid impacts of deep EV adoption found that, “shifting drivers from home to daytime charging improves all metrics of grid impact including ramping, use of non-fossil fuel generation, storage requirements and emissions;” and that, “the grid can support more EVs in scenarios with more daytime charging.”1 Disadvantaged and low-income communities have historically received a smaller share of funding for clean vehicles, according to California EV rebate data.2 Often these communities also have a higher amount of multi-family housing, which have rarely provided charging for residents.
One opportunity to offer charging for these residents is to provide reliable and affordable charging at the workplace. Research shows that an employee with access to workplace charging is six times more likely than the average worker to drive electric.3
In order to learn more about the benefits of workplace charging and develop strategies to install and manage chargers at more high-impact charging locations, SCP proposes to offer a turnkey workplace charging installation that will attract partners to the research project.
The goals of the proposed program are to:
• Provide affordable EV charging options for those unable to charge at home. • Support up to 4 local businesses, nonprofit organizations, California Native American Tribes or public entities that have less access to EV expertise and capital funding.
1 Powell, S., Cezar, G.V., Min, L. et al., “Charging infrastructure access and operation to reduce the grid impacts of deep electric vehicle adoption,” Nature Energy, September 24, 2022, https://doi.org/10.1038/s41560-022-01105-7
2 California Air Resources Board, “CVRP Rebate Statistics,” https://cleanvehiclerebate.org/eng/rebate-statistics
3 U.S. Department of Energy, “Workplace Charging Challenge,” January, 2017, https://www.energy.gov/sites/prod/files/2017/01/f34/WPCC_2016%20Annual%20Progress% 20Report.pdf
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• Gather experience on managing workplace charging installations in order to inform the development of a scalable program for FY 24/25.
Proposed offering to participating employers:
• No to low-cost direct installation of managed chargers, including 10-20 Level 2 charger ports per commercial site and necessary infrastructure and sitework to support the chargers.
• Charger maintenance and management software for 5 years. • Provide estimated EV charging electricity costs for site. • Connect hosts of sites that are reviewed but not selected for the research project with Electric Vehicle Infrastructure Training Program (EVITP) electricians and relevant infrastructure incentives (e.g., PG&E’s EV Charge 2 and Inflation Reduction Act rebates) to support installation.
SCP proposes to issue an RFP for evaluation of potential workplace sites, design and construction of charging infrastructure, and long-term monitoring and maintenance of the charging stations.
Community Advisory Committee Review
This informational item was presented to the Community Advisory Committee on October 20, 2022. Committee members suggested clarifying that public or government entities would also be eligible, and that the charging installation process should consider future opportunities to install storage or local power generation.
Committee members noted EV affordability should be addressed and suggested that fleet electrification could be supported with a similar program.
Discussion
Staff proposes to develop and refine a list of potential site partners in collaboration with local government partners and the SB 535 disadvantaged community map.
Criteria for site selection may include:
• Number of employees who work on-site at predictable times during the day. • Amount of additional electrical upgrades required.
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• Demonstrated willingness to partner with SCP, including sharing EV awareness and EV rebate information with employees.
• Location in a low-income community or rural census tract (also making sites eligible for the 30% Alternative Fuel Vehicle Refueling Property Credit) or employing high numbers of low-income people.
• Location in a census tract block group with over 75% low-wage workers. • Likelihood that sites could be operational by the end of 2023.
SCP staff plans to develop a research plan to collect the information required to design a successful workplace charging program for more participants. Research questions from the plan may include:
• What managed charging strategies can meet the EV charging needs of employees while maximizing the use of abundant renewable energy and minimize stress on the grid?
• Should SCP develop new rates to incentivize daytime EV charging? • How can site hosts best manage demand for chargers from a growing number of employees driving EVs?
• What is needed to help employees accept time-of-use or demand response (GridSavvy) limitations on charging?
• What are the best dispatch methods and algorithms for adjusting the rates of charging throughout the day?
Fiscal Impact
Staff estimates that the research project could cost up to $560k for planning and installation at 4 sites, averaging 15 ports per site for an approximate total of 60 level 2 charger ports, with 5 years of management and maintenance. The final budget would be determined in the RFP process, with any resulting agreement to come to the Community Advisory Committee for review and Board for approval.
The new chargers would provide an opportunity to collect Low Carbon Fuel Standard (LCFS) credits that can be monetized and re-invested in transportation electrification efforts. This will help staff establish a track record for collecting commercial LCFS credits while building a budget over time for more electrification. LCFS revenue of 44 of 45
$330-$650/port per year may be possible over time as employees increase their use of EVs, with a total approximate revenue of up to $390k for 60 level 2 charger ports over 10 years (depending on the market for LCFS credits).
The fiscal impact may also be reduced by selecting sites based on their eligibility for the Alternative Fuel Vehicle Refueling Property Credit, which was updated under the Inflation Reduction Act to provide a 30% credit, up to $100,000 per location, for charging installations in rural and low-income communities starting in 2023. 45 of 45