Agenda packet — Sonoma Clean Power Board of Directors, February 6, 2025

___________________________________________________________ AGENDA

BOARD OF DIRECTORS MEETING

THURSDAY, FEBRUARY 6, 2025, 9:00 A.M.

EXCEPT AS PERMITTED BY GOVERNMENT CODE SECTION 54953(F), MEMBERS OF THE BOARD OF DIRECTORS MAY PARTICIPATE IN THE FEBRUARY 6, 2025, MEETING AT ANY OF THE LOCATIONS SHOWN BELOW.

SONOMA CLEAN POWER HEADQUARTERS

431 E STREET

SANTA ROSA, CA 95404

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING AT THE ABOVE PHYSICAL LOCATIONS OR VIEW REMOTELY THROUGH:

Webinar link: https://us06web.zoom.us/j/88546704126

Telephone number: 1 (669) 444-9171

Meeting ID: 885 4670 4126

How to Submit Public Comment:

Comments may be provided in person at the physical meeting locations. Comments may be submitted in writing to [email protected]. For detailed public comment instructions, please visit this page. Please note that live remote public comment will not be taken unless required by Government Code section 54953(f). If required, it will be announced by the Chair. Members of the public should attend in person or provide written comment to ensure they can provide public comment.

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.

Written comments may be provided during the meeting.

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.

For further clarification on any of the items listed please contact (855) 202-2139 and staff will be available to assist.

Agenda Page 1 of 2
1 of 83
Staff recommendations are guidelines to the Board. On any item, the Board may take action which varies from that recommended by staff.

CALL TO ORDER (Any private remote meeting attendance will be noticed or approved at this time)

BOARD OF DIRECTORS CONSENT CALENDAR

1. Approve December 5, 2024, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve)

2. Ratify Generation Rates Effective February 1, 2025, Consistent with Prior Board Direction (Staff Recommendation: Approve)

3. Receive Investment Activity Report for the Month of December 2024 (Staff Recommendation: Receive and File)

BOARD OF DIRECTORS REGULAR CALENDAR

4. Nominate and Approve the Appointments of Chair and Vice Chair of the Board of Directors (Staff Recommendation: Approve)

5. Receive Welcome Orientation to the Sonoma Clean Power Authority Board of Directors (Staff Recommendation: Receive and File)

6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate (Staff Recommendation: Receive and File)

7. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate (Staff Recommendation: Approve)

8. Receive Geothermal Opportunity Zone Update (Staff Recommendation: Receive and File)

9. Approve Purchasing Policy for Local Energy Projects (Staff Recommendation:

Approve)

10. Receive Presentation and Provide Input on a Draft Energy Project Selection Criteria (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
pg. 5
pg. 13
pg. 15
pg. 23
pg. 25
pg. 37
pg. 59
pg. 65
pg. 71
pg. 75
Agenda Page 2 of 2
2 of 83

COMMONLY USED ACRONYMS AND TERMS

CAC Community Advisory Committee
CAISO California Independent Systems Operator – the grid operator CCA Community Choice Aggregator – a community-owned 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 to help California increase power reliability.

IOU Investor-Owned Utility - for-profit distribution utilities like 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.

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 83
Page intentionally left blank for double-sided printing

4 of 83

___________________________________________________________

DRAFT MEETING MINUTES

BOARD OF DIRECTORS MEETING
THURSDAY, DECEMBER 5, 2024
9:00 A.M.

CALL TO ORDER
(9:04 a.m. - Video Time Stamp: 00:03:00)
Chair Hopkins called the meeting to order.

Board Members present: Chair Hopkins and Vice Chair Barnacle, Directors Lands, Elward, Zollman, Farrar-Rivas, Strong, and Alternate Director Fleming. Director Lemus, Fudge and Gjerde were absent with prior notice.

Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Garth Salisbury, Chief Financial Officer; Neal Reardon, Director of Regulatory Affairs; Chris Golik, Revenue Manager; Felicia Smith, Director of Programs; and Josh Nelson, Special Counsel.

Geof Syphers, CEO, thanked Director Strong for her service to SCP and Director Strong thanked SCP. CEO Syphers then thanked Director Rogers for his service and Director Rogers thanked SCP for all it has done for the community.

BOARD OF DIRECTORS CONSENT CALENDAR
(9:17 a.m. - Video Time Stamp: 00:16:25)

1. Approve November 7, 2024, Draft Board of Directors Meeting Minutes

2. Approve Resolution 2024-06 Adopting an Amended Conflict-of-Interest Code Pursuant to the Political Reform Act of 1974

3. Approve Revisions to the Net Billing Tarriff

4. Receive Geothermal Opportunity Zone Update

5. Approve and Delegate Authority to the Chief Executive Officer or His Designee to Execute a Legal Services Agreement with Best Best & Krieger LLP in the Amount Not-To-Exceed of $275,000 through December 31, 2027 5 of 83

6. Approve Proposed Scope of Work and Terms and Conditions, and Delegate Authority to the Chief Executive Officer to Negotiate Minor Revisions and Execute Contract with the California Energy Commission for Virtual Power Plant Approaches for Flexibility Grant Committing $1,091,000 in Sonoma Clean Power Match Funds Over Four Years

7. Approve and Delegate Authority to the Chief Executive Officer or His Designee to Execute an Agreement for Lobbying Services with the Brandenburg Group in the Amount Not-To-Exceed of $108,000 through December 31, 2025 Public Comment: None
Motion to approve the November 7, 2024, Board of Directors Consent Calendar by Director Lands
Second: Vice Chair Barnacle
Motion passed by roll call vote.

AYES: Lands, Barnacle, Elward, Flemming, Zollman, Farrar-Rivas, Strong, Hopkins
ABSENT: Lemus, Fudge, Gjerde
ABSTAIN: Hopkins on Item 1

BOARD OF DIRECTORS REGULAR CALENDAR

8. Receive Internal Operations and Monthly Financial Report and Provide

Direction as Appropriate

(9:19 a.m. - Video Time Stamp: 00:18:46)
Michael Koszalka, COO, introduced Garth Salisbury, CFO, who gave a presentation on pre-pay transactions.

Vice Chair Barnacle asked how the information regarding pre-pay transactions was getting out to the local community and Geof Syphers, CEO, stated that SCP was sending out a press release and would be further discussing it in item

11. Members Farrar-Rivas and Elward expressed gratitude for this accomplishment.

Public Comment: None
6 of 83

9. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
(9:28 a.m. - Video Time Stamp: 00:27:23)
Neal Reardon, Director of Regulatory Affairs, discussed that the CPUC concluded their multi-property microgrid tariffs proceedings and explained that it was determined that no costs could be avoided. Director Reardon then discussed the CPUC judge ruling that PG&E’s proposal to reduce financial credits for CCA Customers was out of scope. CEO Syphers added that this would cost customers an additional $120 million a year. Neal concluded with a brief legislative update and encouraged the Board to think of ideas for the next legislative session.

Public Comment: None
There were no legislative positions taken; therefore, no vote was necessary.

10.Accept the Independent Report for the Financial Statements from Fiscal Years Ending June 30, 2023, and June 30, 2024
(9:36 a.m. - Video Time Stamp: 00:35:47)

Kellin Gilbert of Pisenti & Brinker gave a presentation on the independent

audit of SCP’s financial statements from fiscal years ending June 30, 2023, and

June 30, 2024.

Public Comment: None

Motion to accept the Independent Report for the Financial Statements from

Fiscal Years Ending June 30, 2023, and June 30, 2024, by Vice Chair Barnacle

Second: Director Farrar-Rivas

Motion passed by roll call vote.

AYES: Lands, Barnacle, Elward, Flemming, Zollman, Farrar-Rivas, Strong, Hopkins

ABSENT: Lemus, Fudge, Gjerde
9:45 a.m. Alternate Director Flemming exited the meeting. 7 of 83

11.Approve the Parameters for Customer Rate Reductions Following Changes to Distribution Utility Rates and Fees on or After January 1, 2025, and Amendments to Financial Policy B.2
(9:46 a.m. - Video Time Stamp: 00:45:32)
Chris Golik, Revenue Manager, discussed the three requests that made up this item. First, he discussed how investments are defined by SCP and a change to the reserve target to assess risk. Secondly, he discussed SCP’s rate setting for January 1, 2025. Third, he discussed SCP’s local investment fund, and he gave the Board two recommendations on this topic, one option from the Community Advisory Committee (Committee) and the other option was a recommendation from SCP staff.

Chair Hopkins asked if the Board could split the difference between the two options and CEO Syphers answered that it could be done. Director Zollman stated that he respected the CAC decision, but he would like to split the difference. Director Lands asked where the recommended reserve amount came from, and CEO Syphers explained that SCP followed industry-wide practices to come up with the recommendation. Vice Chair Barnacle explained that cash in an account that SCP was not using doesn’t look good and asked what the Committee’s thinking behind that was. CEO Syphers explained that the thinking was, if you can’t add to it in a good year when can you add to a fund. Director Farrar-Rivas expressed appreciation with the Committee’s request to put $10 million in the fund. Director Lands stated that customers don’t want to see projects when their bills are high. Vice Chair Barnacle encouraged investment in local projects and Chair Hopkins agreed saying that no one knows what the future will hold. Directors Strong and Elward agreed that they wanted to see a split in the options.

Public Comment: Bob Anderson recommended the Board accept the recommendations from the Committee. The comment is attached.

Motion Approve the parameters for customer rate reductions following changes to distribution utility rates and fees on or after January 1, 2025, and Amendments to Financial Policy B. and on the 3rd point of the item to make an allocation of 2% of revenues to SCP’s Local Investment Fund in 2025, by Vice Chair Barnacle
Second: Director Zollman
8 of 83

Motion passed by roll call vote.

AYES: Lands, Barnacle, Elward, Zollman, Farrar-Rivas, Strong, Hopkins ABSENT: Lemus, Fudge, Gjerde, Flemming

12.Review Strategic Action Plan and Provide Direction as Appropriate (10:04 a.m. - Video Time Stamp: 01:03:08)
Felicia Smith, Director of Programs, gave a presentation regarding SCP’s Strategic Action Plan (Plan).

Director Zollman asked for a summary of the Committee’s review of the Plan, and Director Smith said that the Committee was supportive but there were questions around housing and energy billing. CEO Syphers added that the Committee’s Vice Chair Lipp said the Plan was very comprehensive. Director Zollman requested detailed input from the Committee going forward. Vice Chair Barnacle appreciated the work with GridSavvy and asked where the energy came from. Director Smith said that most of the energy comes from residential and EV customers. Vice Chair Barnacle stated that this was an opportunity to engage the local workforce and Director Smith added that SCP’s contractor network was a foundation to start with. Chair Hopkins stated that this was an opportunity to share SCP’s successes with other CCAs.

Director Zollman asked where he could send his constituency who have questions and Director Elward added there needs to be an education portion on the website. CEO Syphers agreed that more communication needs to be made. Director Strong said she would like to see consulting done with commercial customers. Chair Hopkins encouraged the Board to get the information out to their constituencies and Director Farrar-Rivas said she would like to see an Earth Day education event.

Public Comment: None

13.Adopt a Resolution 2024-07 Calling for a Credible and Definitive Plan to Close the Diablo Canyon Nuclear Power Plant by 2030
(10:34 a.m. - Video Time Stamp: 01:33:33)
CEO Syphers explained that this resolution was drafted in response to the Board’s request to call for a plan for the closing of the Diablo Canyon Nuclear Power Plant.
9 of 83

Chair Hopkins stated that she felt strongly that this Resolution was needed to show the Board’s frustration. Director Elward stated that California should not wait to shut the plant down due to the danger to customers.

Public Comment: None
Motion Adopt a Resolution 2024-07 calling for a credible and definitive plan to close the Diablo Canyon Nuclear Power Plant by 2030, by Director Farrar-Rivas Second: Director Elward
Motion passed by roll call vote.

AYES: Lands, Barnacle, Elward, Zollman, Farrar-Rivas, Strong, Hopkins ABSENT: Lemus, Fudge, Gjerde, Flemming

14.Receive Presentation and Provide Input on a Draft Policy on Selecting Energy Projects
(10:41 a.m. - Video Time Stamp: 01:40:24)
CEO Syphers thanked organized labor for all their input in drafting this policy and he mentioned that through discussions several CCAs have adopted different policies, and some do not have a policy but point to the already high criteria of the State of California.
10:50 a.m. the meeting was recessed due to an earthquake emergency. 10:57 a.m. the meeting was reconvened.

Item 14 was continued to the February 6, 2025, Board of Directors meeting.

ADJOURN
(10:58 a.m. - Video Time Stamp: 01:57:34)
The meeting was adjourned by unanimous consent due to the emergency caused by the Humboldt County Earthquake.
10 of 83

December 3, 2024
Chair Hopkins and Honorable Directors
Sonoma Clean Power
431 E Street Santa Rosa,
CA 95404
RE Item 11 - Approve the Parameters for Customer Rate Reductions:

I support the CAC’s recommendation.
• On a 5-0-4 vote, the Committee recommended an alternate proposal to allocate 4% of Revenues in 2025 to SCP’s local investment fund. (Page 61 of 79) I attended the CAC’s meeting and can report theirs was a full and thorough discussion.

Staff made known their recommendation. Members had an opportunity to ask questions. The motion was clear, first acting on Items 1 & 2 then taking a separate vote on the third.

As a veteran of several citizen advisory boards, I’ve experienced many times where it is clear which is the easy and which is the hard path to take. Here the majority did it well.

The CAC members spoke with their votes, little was said favoring this or that next steps.

For me the focus is to make community-wide investments which will result in lower monthly utility

bills.

As the Board considers its choice, I offer these excerpts from Item 12 – Strategic Plan:

1.1 Agency Mission
• turn the tide on the climate crisis through bold ideas and practical programs • provides incentives so customers can reduce their utility bills

2.1 Strategic Action
• set generation rates that stabilize bills and… help customers manage their bills

2.3 Design Objectives
• Need for both market transformation initiatives and avoided cost initiatives

6.1.6 ‘Duck Curve’ Challenge
• 6 Sonoma County schools participated…resulting in 33 submitted solutions https://sonomacleanpower.app.box.com/s/jyv06uuq1nfq60sj4hm7ml01151ucmfc 11 of 83
Bob Anderson,
United Wine Growers
Page intentionally left blank for double-sided printing

12 of 83
Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Garth Salisbury, Chief Financial Officer
Chris Golik, Senior Finance Manager
Issue: Ratify Generation Rates Effective February 1, 2025, Consistent with Prior Board Direction
Date: February 6, 2025
Recommended Action
The generation rate change shown in Attachment 1 was implemented February 1, 2025. This rate adjustment falls under the Board of Directors’ rate setting parameters approved on December 5, 2024. Rates are now set so that SCP customer total bills have a target of 7% below PG&E’s bundled service total bills effective February 1/ 2025.

Staff request that the Board ratify these rates.

Background
The Sonoma Clean Power Board of Directors voted on December 5, 2024, in favor of new customer rates to be implemented as soon as is feasible after PG&E’s changes to PCIA and rates expected on January 1, 2025, using the following parameters:
• Establish SCP rates to achieve the maximum savings on total customer bills between 5% and 7% below PG&E’s bundled service total bills/ while projecting a 2025 year-end reserve balance of not less than 365 days of annual budgeted operating expenses; and
• Reset all rate classes so SCP customer total bills have an equal percentage savings from PG&E’s bundled service total bills.
13 of 83
Discussion
PG&E updated the PCIA as well as their generation and delivery rates on January 1, 2025. The SCP rates effective February 1, 2025, shown in Attachment 1, are set so that SCP customer total bills have a target of 7% below PG&E’s bundled service total bills.

The actions effective February 1/ 2025/ represent a reduction in SCP’s rates and an increase in SCP customer total bill savings from the prior target of 3% to the new target of 7% below PG&E bundled service total bills.

Attachments
➢ Attachment 1 - SCP Rate Schedule Effective February 1, 2025, available at this link or by request to the Clerk of the Board
14 of 83
Staff Report – Item 03
To: Sonoma Clean Power Authority Board of Directors
From: Garth Salisbury, Chief Financial Officer & Treasurer Chris Golik, Senior Finance Manager
Issue: Receive Investment Activity Report for the Month of December 2024 Date: February 6, 2025
Requested Action
This report and associated attachments are to inform the Board of Directors (Board) pursuant äÕ äÉÂ àÂßåÊàÂÒÂÓäá ÕÇ ¥C¡’á FÊÓµÓ¾ÊµÑ ¡ÕÑÊ¾í Bù IÓêÂáäÒÂÓäá µÓÀ Government Code Section 53607. This is an information only item.

Background and Reporting Requirements
This report is to verify and report in writing to the Board regarding the responsibilities designated to the SCP Treasurer pursuant to SCP Financial Policy B.5 Investments.

The Investment Policy was amended in 2024 expanding the definition of Permitted Investments, adding several investment diversification requirements, best practices and requiring additional reporting requirements to the Board as follows.

Monthly Obligation to Report on New Investment Transactions GÕêÂàÓÒÂÓä CÕÀÂ ¥Â¾äÊÕÓ ù÷úôû µÓÀ ¥C¡’á IÓêÂáäÒÂÓä ¡ÕÑÊ¾í àÂßåÊàÂ ¥C¡ äÕ àÂÝÕàä to the Board any investment transactions (defined as purchases, sales or exchanges of securities) made during the month as soon as is practicable after the end of the month. GÊêÂÓ äÉÂ á¾ÉÂÀåÑÊÓÈ ÕÇ äÉÂ ¥C¡’á BÕµàÀ ÒÂÂäÊÓÈá ÀåàÊÓÈ äÉÂ ÇÊàáä ëÂÂÐ ÕÇ the month, the investment report will indicate investment transactions that occurred two months prior to the Board Meeting. SCP currently maintains bank accounts and investments at River City Bank (RCB), Summit State Bank, the State of California Local Agency Investment Fund (LAIF) and USBank. Active individual securities are held at both RCB and USBank. Staff will provide Statements of Investments as required throughout the year.
15 of 83

Reportable Activities
USBank
In November of 2024, the Board approved amendments to SCP Investment Policy as àÂ¾ÕÒÒÂÓÀÂÀ ½í ¥C¡’á ÊÓêÂáäÒÂÓä µÀêÊáÕà CÉµÓÀÑÂà AááÂä MµÓµÈÂÒÂÓä CAM CAM ¾åààÂÓäÑí ÒµÓµÈÂá $øô ÒÊÑÑÊÕÓ ÕÇ ¥C¡’á àÂáÂàêÂá AÑÑ ÊÓêÂáäÒÂÓäá ÀÊàÂ¾äÂÀ ½í CAM µàÂ ÉÂÑÀ µä ¥C¡’á ¾åáäÕÀÊµÓ ¨¥BµÓÐ AÑÑ ÊÓêÂáäÒÂÓäá ÉÂÑÀ µá ÕÇ DÂ¾ÂÒ½Âà ÷õ 2024, at USBank appear as Attachment 1 with new holdings purchased in December highlighted. USBank transaction details for the month of December, including sales of securities, are in Attachment 2.

River City Bank
Staff attached a Statement of Investments as of December 31, 2024. A detail of the investments held at River City Bank appears as Attachment 3. There were no investment transactions in the month of December at River City Bank.

State of California Local Agency Investment Fund
The LAIF investment balance as of December 31, 2024, appears as Attachment 4.

Attachments
➢ Attachment 1 – Statement of Investments Held at USBank ➢ Attachment 2 – Statement of Transactions at USBank
➢ Attachment 3 – Statement of Investments Held at River City Bank ➢ Attachment 4 – Statement of Investments Held at the Local Agency Investment Fund
16 of 83

Attachment 1: Statement of Investments Held at USBank
Sonoma Clean Power

Statement of Investments Held at USBank

As of December 31, 2024
Investment Description Issue Purchase Date Maturity Date Par Value $ Market Value $ Purchase Price $ Purchase Yield in % First American Govt Oblig fund Money Market Fund 11/4/2024 12/31/2024 $ 1,520,366 $ 1,520,366 $ 1,520,366 4.1 Cash Cash --- 12/31/2024 24,556 24,556 24,556 -
Government of The United States US Treasury 12/19/2024 1/7/2025 5,000,000 4,997,158 4,989,446 4.3 Government of The United States US Treasury 10/31/2024 5/1/2025 500,000 493,128 489,177 4.5 Government of The United States US Treasury 10/24/2024 10/2/2025 500,000 484,720 480,635 4.3 Government of The United States US Treasury 10/30/2024 1/31/2026 500,000 500,010 499,941 4.3 Government of The United States US Treasury 10/24/2024 4/15/2026 500,000 496,831 497,285 4.1 Government of The United States US Treasury --- 6/15/2026 1,000,000 998,282 998,379 4.2 Government of The United States US Treasury 10/24/2024 9/30/2026 500,000 493,702 494,824 4.1 Government of The United States US Treasury --- 10/31/2026 1,000,000 997,724 998,711 4.2 The Toronto-Dominion Bank Corporate 12/10/2024 12/17/2026 500,000 498,728 499,990 4.6 Government of The United States US Treasury 12/30/2024 12/31/2026 1,000,000 1,000,082 999,844 4.3 Government of The United States US Treasury 10/31/2024 1/15/2027 500,000 497,542 498,574 4.1 Government of The United States US Treasury 10/30/2024 2/15/2027 500,000 498,637 500,020 4.1 Government of The United States US Treasury 10/24/2024 4/30/2027 500,000 483,387 485,039 4.0 Government of The United States US Treasury --- 6/30/2027 1,000,000 976,547 977,813 4.1 The PNC Financial Services Group, In Corporate --- 7/23/2027 500,000 502,416 503,401 4.7 Government of The United States US Treasury 10/31/2024 8/15/2027 500,000 493,648 495,137 4.1 Bank of Montreal Corporate --- 9/10/2027 500,000 498,449 499,493 4.6 Deere & Company Corporate 10/29/2024 9/15/2027 300,000 297,099 297,975 4.4 Caterpillar Inc. Corporate 10/31/2024 10/15/2027 300,000 298,823 299,919 4.4 Government of The United States US Treasury --- 10/15/2027 1,000,000 989,490 993,672 4.1 UnitedHealth Group Incorporated Corporate 10/29/2024 10/15/2027 300,000 287,108 288,213 4.4 Royal Bank of Canada Corporate --- 10/18/2027 500,000 498,134 498,673 4.6 Honda Motor Co., Ltd. Corporate --- 10/22/2027 500,000 496,303 498,034 4.6 State Street Corporation Corporate 10/31/2024 10/22/2027 300,000 298,146 298,212 4.5 Government of The United States US Treasury 11/12/2024 11/15/2027 1,000,000 995,587 995,000 4.3 Government of The United States US Treasury 12/18/2024 12/15/2027 1,000,000 992,309 990,156 4.4 Mercedes-Benz Auto Lease Trust ABS 10/28/2024 1/18/2028 300,000 303,566 304,383 4.5 Government of The United States US Treasury 10/24/2024 4/30/2028 500,000 487,387 491,543 4.0 FHLMC Agency CMBS 10/25/2024 6/25/2028 400,000 389,890 393,480 4.3 Government of The United States US Treasury --- 6/30/2028 1,000,000 989,660 994,473 4.2 U.S. Bancorp Corporate --- 7/22/2028 500,000 495,909 497,086 4.8 FHLMC Agency CMBS 10/25/2024 7/25/2028 400,000 390,425 394,000 4.3 Honda Auto Receivables Owner Trust ABS 10/31/2024 8/15/2028 300,000 303,110 303,434 4.6 FHLMC Agency CMBS 11/20/2024 8/25/2028 800,000 779,266 781,563 4.5 Government of The United States US Treasury 10/31/2024 8/31/2028 500,000 500,397 503,809 4.2 FHLMC Agency CMBS --- 9/25/2028 800,000 782,676 788,161 4.4 Toyota Auto Receivables Owner Trust ABS 10/31/2024 10/16/2028 300,000 301,544 301,559 4.6 Government of The United States US Treasury --- 11/15/2028 1,000,000 956,886 962,734 4.1 Realty Income Corporation Corporate --- 12/15/2028 500,000 497,494 500,591 4.7 GM Financial Securitized Term ABS 10/30/2024 12/18/2028 300,000 301,544 301,406 4.6 17 of 83

Investment Description Issue Purchase Date Maturity Date Par Value $ Market Value $ Purchase Price $ Purchase Yield in % FHLMC Agency CMBS 12/11/2024 12/25/2028 885,000 856,371 864,500 4.4 Morgan Stanley Corporate --- 1/24/2029 500,000 482,182 485,111 4.8 Prologis, Inc. Corporate 10/24/2024 2/1/2029 300,000 294,869 298,323 4.5 BMW Vehicle Owner Trust ABS 10/29/2024 2/26/2029 235,000 237,773 237,882 5.2 Government of The United States US Treasury 10/31/2024 2/28/2029 500,000 497,663 501,914 4.2 FHLMC Agency CMBS --- 3/25/2029 800,000 764,255 769,713 4.5 Government of The United States US Treasury 10/24/2024 4/30/2029 500,000 470,629 476,172 4.0 Bank of America Credit Card Trust ABS 10/28/2024 5/15/2029 325,000 328,141 328,644 4.5 The Home Depot, Inc. Corporate 10/29/2024 6/15/2029 300,000 278,208 280,077 4.6 John Deere Owner Trust 2024-C ABS 11/20/2024 6/15/2029 369,000 364,864 364,460 4.6 Government of The United States US Treasury --- 6/30/2029 1,000,000 954,227 960,449 4.2 Bank of America Corporation Corporate --- 7/23/2029 500,000 487,138 490,483 4.8 JPMorgan Chase & Co. Corporate --- 7/23/2029 500,000 486,549 489,899 4.8 State of California Municipal Bonds --- 8/1/2029 400,000 399,260 402,083 4.4 Toyota Motor Corporation Corporate --- 8/9/2029 500,000 493,884 497,616 4.7 Ford Credit Auto Owner Trust ABS 11/19/2024 8/15/2029 240,000 239,767 239,992 4.7 FHLMC Agency CMBS --- 9/25/2029 800,000 745,641 751,094 4.5 PACCAR Inc Corporate 10/29/2024 9/26/2029 300,000 290,161 292,719 4.6 Government of The United States US Treasury 10/24/2024 9/30/2029 500,000 481,097 488,516 4.0 International Bank for Recon and Dev Supranational 12/12/2024 10/16/2029 400,000 389,747 393,488 4.2 Government of The United States US Treasury --- 10/31/2029 1,000,000 988,484 997,285 4.4 Caterpillar Inc. Corporate 11/14/2024 11/15/2029 300,000 298,888 299,523 4.7 Total and Weighted Average Yield $ 40,498,922 $ 39,918,463 $ 40,040,646 4.3 18 of 83

Attachment 2: Statement of Transactions at USBank
Sonoma Clean Power

Statement of Transactions at USBank

December 2024
Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq./Disp. Yield Amount Purchased/Sold Interest Total Amount Net Realized Gain/Loss Buy 12/16/2024 3137FKUP9
-
FHMS K-087 A2 3.771 12/25/2028
98 4.39 $
-
$
-
$ (865,890) $
-
Buy 12/3/2024 31846V203 40,716 FIRST AMER:GVT OBLG Y
1 --- (40,716)
-
(40,716)
-
Buy 12/16/2024 31846V203 1,335 FIRST AMER:GVT OBLG Y
1 --- (1,335)
-
(1,335)
-
Buy 12/19/2024 31846V203
38 FIRST AMER:GVT OBLG Y
1 --- (38)
-
(38)
-
Buy 12/26/2024 31846V203 13,244 FIRST AMER:GVT OBLG Y
1 --- (13,244)
-
(13,244)
-
INTERNATIONAL BANK FOR RECONSTRUCTION Buy 12/13/2024 459058LN1 -
98 4.25
-
-
(395,942)
-
AND DEVELOPM 3.875 10/16/2029
Buy 12/17/2024 89115A3A8
-
TORONTO-DOMINION BANK 4.568 12/17/2026 100 4.57
-
-
(499,990)
-
Buy 12/20/2024 912797MW4
-
UNITED STATES TREASURY 01/07/2025 100 4.29
-
-
(4,989,446)
-
Buy 12/19/2024 91282CMB4
-
UNITED STATES TREASURY 4.0 12/15/2027
99 4.35
-
-
(990,596)
-
Buy 12/31/2024 91282CME8
-
UNITED STATES TREASURY 4.25 12/31/2026 100 4.26
-
-
(999,844)
-
Sell 12/10/2024 31846V203 (2,005) FIRST AMER:GVT OBLG Y 1 --- 2,005
-
2,005
-
Sell 12/13/2024 31846V203 (357,231) FIRST AMER:GVT OBLG Y 1 --- 357,231
-
357,231
-
Sell 12/13/2024 31846V203 (38,711) FIRST AMER:GVT OBLG Y 1 --- 38,711
-
38,711
-
Sell 12/16/2024 31846V203 (820,747) FIRST AMER:GVT OBLG Y 1 --- 820,747
-
820,747
-
Sell 12/16/2024 31846V203 (1,335) FIRST AMER:GVT OBLG Y 1 --- 1,335
-
1,335
-
Sell 12/17/2024 31846V203 (499,990) FIRST AMER:GVT OBLG Y 1 --- 499,990
-
499,990
-
Sell 12/19/2024 31846V203 (990,558) FIRST AMER:GVT OBLG Y 1 --- 990,558
-
990,558
-
Sell 12/19/2024 31846V203 (38) FIRST AMER:GVT OBLG Y
1 ---
38 -
38 -
Sell 12/20/2024 31846V203 (4,989,446) FIRST AMER:GVT OBLG Y 1 --- 4,989,446
-
4,989,446
-
Sell 12/31/2024 31846V203 (934,099) FIRST AMER:GVT OBLG Y 1 --- 934,099
-
934,099
-
Sell 12/31/2024 31846V203 (13,244) FIRST AMER:GVT OBLG Y 1 --- 13,244
-
13,244
-
19 of 83

Attachment 3: Statement of Investments Held at River City Bank Sonoma Clean Power

Statement of Investments Held at River City Bank

As of December 31, 2024
Investment Description Purchase Date Maturity Date Interest Rate Purchase Price Yield to Maturity Most Recent Price (MTM) % Total Portfolio River City Bank CDARS, 52 weeks 8/22/2024 8/21/2025 4.53% $7,000,000 4.63% $7,000,000 10% River City Bank CD, 2 years 9/1/2024 9/1/2026 4.25% 10,000,000 4.40% 10,108,003 14% River City Bank CD, 2 years 9/10/2024 9/10/2026 3.75% 20,000,000 3.88% 20,190,475 29% River City Bank CDARS, 26 weeks 9/26/2024 3/27/2025 4.46% 3,000,000 4.56% 3,000,000 4% River City Bank CDARS, 52 weeks 9/26/2024 9/25/2025 3.59% 12,000,000 3.66% 12,000,000 17% River City Bank CDARS, 52 weeks 10/17/2024 10/16/2025 4.28% 7,000,000 4.37% 7,000,000 10% River City Bank CDARS, 13 weeks 11/7/2024 2/6/2025 4.74% 10,000,000 4.85% 10,000,000 14% Total $69,000,000 $69,298,478 100%
Weighted Average Interest and Yield 4.10% 4.21%
20 of 83
Attachment 4: Statement of Investments Held at the Local Agency Investment Fund Sonoma Clean Power

Statement of Investments Held at the Local Agency Investment Fund

As of December 31, 2024
Investment Description Ending Balance Yield Market Value Local Agency Investment Fund $28,287,589 4.43% $28,276,896 21 of 83
Page intentionally left blank for double-sided printing

22 of 83

Staff Report – Item 04
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Issue: Nominate and Approve the Appointments of Chair and Vice Chair of the Board of Directors
Date: February 6, 2025
Requested Board Action
Nominate and approve the appointments of Chair and Vice Chair of the Sonoma Clean Power Authority Board of Directors (Board).

Background
The appointment of Chair and Vice Chair for the Sonoma Clean Power Board of Directors has historically been for twelve months, with the term beginning after the appointment at the February meeting and continues until the next appointment the following February.

Over the past year, staff have learned that some public agencies appoint Chairs and Vice Chairs for up to two-year terms or for two consecutive one-year terms (allowing for removal at the one-year mark). In consideration of the complexity of SCP’s business, staff request the Board consider this practice.

There are no additional written materials for this item. 23 of 83
Page intentionally left blank for double-sided printing

24 of 83

Staff Report – Item 05
To: Sonoma Clean Power Board of Directors
From: Darin Bartow, Clerk of the Board
Geof Syphers, Chief Executive Officer
Issue: Receive Welcome Orientation to the Sonoma Clean Power Authority Board of Directors
Date: February 6, 2025
Requested Board Action
Receive Welcome Orientation to the Sonoma Clean Power Authority Board of Directors (Board).

Background
Welcome to the Board for the Sonoma Clean Power Authority.

This item is an opportunity to receive a staff presentation about the origins and work of Sonoma Clean Power.

In future meetings in 2025, staff will bring presentations on:

• SCP’s Work in Education and Workforce Development
• SCP Customer Support and Incentives
• SCP’s Strategic Initiatives, including the GeoZone
Attachments
 Attachment 1 – Key Legislation Related to SCPA
 Attachment 2 – Board Member Orientation PowerPoint
25 of 83

Key Legislation
AB 32 (Nuñez, 2006) Global Warming Solutions Act of 2006 Established broad greenhouse gas emission reduction goals in an attempt to align with the international Kyoto Protocols.

AB 117 (Migden, 2002) Community Choice Aggregation
Following the Energy Crisis that caused rolling blackouts and PG&E’s first bankruptcy, the legislature sought to increase public oversight of energy markets by enabling community choice public power providers.

SB 100 (DeLeon, 2018) Clean Energy Act
Set requirements to reach 100% “clean” power by 2045, meaning renewable energy plus large hydropower, which is not designated as renewable in California.

SB 790 (Leno, 2012) CCA Protections Against For-Profit Utilities Instituted a code of conduct for PG&E and the other for-profit utilities that includes a prohibition against using ratepayer funds to market against CCAs and other rules attempting to limit PG&E’s power to prevent successful public power operations.

SB 1158 (Becker, 2022) Emissions Reporting
Requires that starting in the 2028 reporting year, power providers must stop counting excess renewable power they generate at times when their customers are not using energy. This eliminates “net metering” for power providers and has the effect of encouraging providers to build clean power resources that run in the winter and at night. Sonoma Clean Power played a key role in getting this bill passed.

AB 1359 (Pappan, 2024) Geothermal Exploration Permitting Made it possible for local counties to serve as the lead permitting agency for geothermal exploration wells, thereby allowing geothermal exploration to begin in California due to a long backlog of oil and gas litigation at the state permitting agency. This bill was sponsored by Sonoma Clean Power.
26 of 83

1 1/30/2025

Welcome to Sonoma Clean Power

Public power provider started in 2014

Self-funded through revenues. No taxes.

Elected Board of Directors.

Generates electricity for most customers in

Sonoma and Mendocino Counties.

One of 24 “community choice” providers in
California.
2 27 of 83
1 –

–

3 1/30/2025

Service Territory
Sonoma County Est 2014
All cities and unincorporated areas except Healdsburg,
which has its own municipal utility
Mendocino County Est 2017
All cities and unincorporated areas except Ukiah, which also has its own municipal utility
Why Do We Exist?
Help customers with high bills.

Build affordable clean power.

Invest in our community.

Advocate for lower PG&E costs and
better power reliability.

Pilot energy solutions for all of California.
2 4
28 of 83

5 1/30/2025

Provide Bill Savings When We Can
SCP customers
are currently
saving 7% on
total electric
charges.
2023 Power Sources Power source percentages for SCP from the California Energy Commission’s 2023
Power Content Label.

SCP CleanStart SCP EverGreen
3 6
29 of 83
7 1/30/2025

4 8
30 of 83
9 1/30/2025

5 10
31 of 83
1/31/2025
6 Org Chart
11 12
32 of 83

13 1/30/2025

Video: Origins of CCAs

24 CCAs in California
Serving over 14
million customers in
more than 200 cities
and counties
Constructed
14,000 MW of new
renewable power and
batteries
Rapid Growth
of Public Power
14 33 of 83
7 15
1/30/2025

8 16
34 of 83

17 1/30/2025

Early Things to Try as a Board Member

Visit our Customer Center at
741 Fourth Street in Santa Rosa
Check out our website are at
www.SonomaCleanPower.org
Ask your constituents what matters
most to them when they think about
energy.
35 of 83
9 Page intentionally left blank for double-sided printing

36 of 83
Staff Report – Item 06
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Mike Koszalka, Chief Operating Officer
Garth Salisbury, Chief Financial Officer & Treasurer
Issue: Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
Date: February 6, 2025
DECEMBER 2024 EARTHQUAKE RESPONSE
On December 5, 2024, a magnitude 7.0 earthquake near Humboldt County triggered a tsunami warning, impacting parts of Mendocino County with widespread outages and evacuation orders. Governor Gavin Newsom declared a State of Emergency for Del Norte, Humboldt, and Mendocino Counties. As a precaution, Sonoma Clean Power (SCP) enacted emergency consumer protections, pausing late payment notices, non-payment drops, collections, and related activities for Mendocino County customers. Over the following month, SCP collaborated with PG&E to assess property impacts, confirming no red-tagged premises and no protections enacted by PG&E.

On January 7, 2025, SCP lifted its protections and resumed standard operations.

HELPING COMMERCIAL CUSTOMERS SAVE ON POWER COSTS
To achieve an agency goal to directly serve customer needs by helping them reduce costs/ SCP’s Commercial Customer Service staff identified and contacted thirty-four small commercial customers paying considerably more for their power than we would expect.

These customers were charged on a PG&E rate meant for larger use customers. They were essentially mis-rated and paying higher PG&E daily fixed charges, along with demand charges that only large-use customers are required to pay. 37 of 83
By advising these customers directly that they are better served by changing their accounts from rate B-10 to rate B-1, they collectively would reduce their expected annual power bills by $172,000. These were charges predominantly paid to PG&E for transmission and delivery. The impact on generation by changing rates meant that the SCP’s annual revenue would only fall by $1/200.

One customer provides not-for-profit housing for seniors, and they were paying the B-10 fixed charges for a meter that only registers 87 kWh annually.

The greatest cost reductions were achieved for a warehouse that occasionally powers a fire protection pump for just minutes a month. But for the limited kilowatt-hours used, they were charged $20,500 more than they needed to pay.

PG&E controls rates, and the utility has rules in place that make the customer responsible for choosing their best rate option.

PROPERTY AT 421 E STREET, UPDATE
SCP Staff issued a Request for Proposals (RFP) on October 1, 2024, for architectural and engineering design services for the renovation of 421 E Street. The building will serve as office space, meeting rooms, and storage for SCP staff. SCP received three responses to the RFP on October 22, 2024. AXIA Architects was awarded the project based on their qualifications, experience, references, budget, and timeline. AXIA Architects is a local firm based on Mendocino Avenue in Santa Rosa. The AXIA team also includes local engineering services for mechanical, electrical, structural, and cost estimating. The process will include concept design, design development, and full construction documents required for permitting and bidding.

Concept design kicked off on December 9, 2024, and construction documents are expected to be completed by June 2025, with a public contract bidding process commencing thereafter. Once a contractor is selected and under contract, the construction timeline is expected to take 3-4 months to complete.

PROGRAMS UPDATES
Inflation Reduction Act (IRA) Heat Pump Heating and Cooling Incentives California received $45 million through the IRA for Phase I of the Home Electrification and Appliance Rebates (HEEHRA) program, which provides incentives up to $8,000 to income-qualified single and multi-family homes for heat pump heating and cooling systems. The program is managed by the California Energy Commission (CEC) and 38 of 83
Phase I is in partnership with the TECH Clean California rebate program. As these funds have already been received by the State of California, they are not at risk of being rolled back.

To help support SCP customers in applying for these rebates, SCP aligned its rebate qualifications and income-eligibility to match HEEHRA’s for ease and simplification.

HEEHRA participants are eligible to receive a rebate from SCP of 50% of the project cost (up to $10,000), after all rebates have been applied.

Marketing outreach is underway to raise awareness and encourage customers to take advantage of available rebates. The marketing campaign includes direct mail, targeted email campaigns, and digital ads to drive customers to SCP via phone or web, confirm eligibility, and provide step-by-step assistance. Through this outreach, SCP is guiding customers through the process of applying for HEEHRA and how to layer SCP rebates. A screenshot from the SCP website shows this process.

Mailers have been sent targeting 80,000 eligible customers, targeted emails are being sent to 70,000 qualifying customers, and digital ads are running. In addition, it is featured as a prominent message on our website home page (as of 1/27).

To date, SCP has incentivized 6 HEEHRA projects and spoken with an additional 13 customers who plan to apply, with more expected in the coming weeks.

Heat Pump Water Heater Incentives for Public Buildings
PG&E currently funds the Government and K-12 Energy Efficiency program, managed by Willdan, that purchases and installs residential-sized heat pump water heaters (HPWH) in public agency buildings at a low cost. In 2022, Sonoma Clean Power partnered with Willdan to provide gap funding to install these projects at no-cost. 39 of 83

SCP’s funding provides up to $3/100 per installed HPWH. To date/ 24 HPWHs have been installed in public buildings including public works yards, recreation centers, senior centers, and fire stations.

Given the significant impact of this offer, SCP has budgeted an additional $160,000 in funding for two years that would fund 52 additional HPWHs. In addition to upgrading government buildings, this program is now more accessible for schools to participate.

Each HPWH unit installed through the program participates in load management and demand response programs, helping to lower peak electricity demand. These water heaters can adjust their electricity use based on grid conditions, heating water when demand is lower, or renewable energy availability is higher and pausing heating when there is strain on the grid, avoiding the need to activate carbon-intensive power plants. By leveraging PG&E funding and layering it on top, SCP is making an impact while maximizing ratepayer dollars.

Weatherization Education Collaboration with the California Indian Museum and Cultural Center
The California Indian Museum and Cultural Center (CIMCC) requested that Sonoma Clean Power provide weatherization education in accordance with their CalEPA Emergency Preparedness grant. SCP’s staff/ Kimberly Beltran and Aubrie Hunt/ will provide six educational workshops on weatherization techniques with a focus on mitigating wildfire smoke infiltration. These workshops will take place between 2025 and 2026 and expect to reach 120 attendees.

MONTHLY COMPILED FINANCIAL STATEMENTS (October/November 2024) The year-to-date change in net position is more than projections by approximately $31,473,000. Year-to-date revenue from electricity sales is over budget by approximately 13% and cost of energy is under budget projections by approximately 11%. Year-to-date electricity sales reached $123,664,000.

SCP maintains a balanced portfolio by procuring electricity from multiple sources.

Net position reached a positive $276,264,000, which indicates healthy growth as SCP continues to make progress towards its reserve goals. Approximately $231,889,000 is set aside for operating reserves.
40 of 83
BUDGETARY COMPARISON SCHEDULE (October/November 2024)
The accompanying budgetary comparison includes the 2024/25 amended 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, 2024/25 YTD Budget, allocates the Board approved annual budget at expected levels throughout the year with consideration of 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 exceeded the budget by approximately 13% at the end of the reporting period.

The cost of electricity was less than the budget-to-date by approximately 11%.

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.

ATTACHMENTS
➢ October and November 2024 Financial Statements

UPCOMING MEETINGS
➢ Community Advisory Committee – February 20, 2025
➢ Board of Directors – March 6, 2025
41 of 83

ACCOUNTANTS’ COMPILATION REPORT
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Board of Directors
Sonoma Clean Power Authority
Management is responsible for the accompanying Budgetary Comparison Schedule for the Operating Fund of Sonoma Clean Power Authority (a California Joint Powers Authority) for the four months ended October 31, 2024, 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
December 5, 2024
1
42 of 83

SONOMA CLEAN POWER AUTHORITY

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND

Four Months Ended October 31, 2024

2024/25 YTD
2024/25 YTD 2024/25 YTD Budget Variance 2024/25 YTD 2024/25 Budget Budget Actual (Under) Over Actual / Budget % 2024/25 Budget Remaining REVENUE AND OTHER SOURCES:

Electricity (net of allowance) * $ 89,060,715 $ 101,410,565 $ 12,349,850 114% $ 239,147,000 $ 137,736,435 Evergreen Premium (net of allowance) 900,000 1,065,078 165,078 118% 2,700,000 1,634,922 Investment returns 2,400,000 5,568,139 3,168,139 232% 7,200,000 1,631,861 Miscellaneous Income 333,200 259,478 (73,722) 78% 1,000,000 740,522 Total revenue and other sources 92,693,915 108,303,260 15,609,345 117% 250,047,000 141,743,740 EXPENDITURES AND OTHER USES:

CURRENT EXPENDITURES
Cost of energy and scheduling 67,308,065 60,139,034 (7,169,031) 89% 221,586,000 161,446,966 Data management 893,333 1,105,629 212,296 124% 2,680,000 1,574,371 Service fees- PG&E 330,000 321,718 (8,282) 97% 990,000 668,282 Personnel 3,736,548 3,390,515 (346,033) 91% 11,490,000 8,099,485 Energy Center, marketing & communications 1,126,173 895,385 (230,788) 80% 3,379,000 2,483,615 Customer service 116,000 33,451 (82,549) 29% 220,000 186,549 General and administration 624,912 537,797 (87,115) 86% 1,832,000 1,294,203 Legal 158,333 43,048 (115,285) 27% 475,000 431,952 Regulatory and compliance 153,333 97,418 (55,915) 64% 460,000 362,582 Accounting 84,800 92,000 7,200 108% 312,000 220,000 Legislative 73,333 56,000 (17,333) 76% 220,000 164,000 Other consultants 181,967 160,918 (21,049) 88% 535,000 374,082 Industry memberships and dues 295,600 263,528 (32,072) 89% 888,000 624,472 Program implementation 3,418,204 927,776 (2,490,428) 27% 10,136,000 9,208,224 Total current expenditures 78,500,601 68,064,217 (10,436,384) 87% 255,203,000 187,138,783

OTHER USES
Capital outlay 366,667 169,513 (197,154) 46% 1,150,000 980,487 Total expenditures, other uses 78,867,268 68,233,730 (10,633,538) 87% 256,353,000 188,119,270 Net increase (decrease) in available fund balance $ 13,826,647 $ 40,069,530 $ 26,242,883 $ (6,306,000) $ (46,375,530) * Represents sales of approximately 712,000 MWh for 2024/25 YTD actual.

Balance - as of Long-Term % of Long-Term
RESERVES June 30, 2024 Targeted Target
Operating Reserve $ 231,889,000 $ 255,203,000 91%
See accountants' compilation report. 2
43 of 83

SONOMA CLEAN POWER AUTHORITY

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND (CONTINUED)

RECONCILIATION OF NET INCREASE IN AVAILABLE FUND BALANCE

TO CHANGE IN NET POSITION

Four Months Ended October 31, 2024

Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 40,069,530
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense
Add back capital asset acquisitions
Change in net position $
(477,749)
169,513
39,761,294
See accountants' compilation report. 3
44 of 83

ACCOUNTANTS’ COMPILATION REPORT
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 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 October 31, 2024, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the four months 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.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
December 5, 2024
1
45 of 83

SONOMA CLEAN POWER AUTHORITY

STATEMENT OF NET POSITION
As of October 31, 2024
ASSETS
Current assets
Cash and cash equivalents - unrestricted $ 136,685,000
Cash and cash equivalents - restricted for grant purposes 2,166,398 Accounts receivable, net of allowance 20,118,405
Other receivables 2,845,488
Accrued revenue 11,136,793
Prepaid expenses 1,064,450
Deposits 121,858
Investments 58,315,333
Total current assets 232,453,725
Noncurrent assets
Cash and cash equivalents - unrestricted 56,000,000
Investments 48,807,753
Other receivables 1,025,782
Deposits 16,256
Capital assets, net of depreciation 18,292,739
Total noncurrent assets 124,142,530
Total assets 356,596,255

LIABILITIES
Current liabilities
Accrued cost of electricity 18,281,219
Accounts payable 1,069,677
Advances from grantors 2,166,398
Other accrued liabilities 7,498,108
User taxes and energy surcharges due to other governments 716,821 Supplier security deposits 204,000
Total current liabilities 29,936,223
Noncurrent liabilities
Supplier security deposits 1,380,121
Total liabilities 31,316,344

DEFERRED INFLOWS OF RESOURCES
Rate Stabilization Fund 56,000,000

NET POSITION
Investment in capital assets 18,292,739
Unrestricted 250,987,172
Total net position $ 269,279,911
See accountants' compilation report. 2
46 of 83

SONOMA CLEAN POWER AUTHORITY
�

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
Four Months Ended October 31, 2024

OPERATING REVENUES
Electricity sales, net
Evergreen electricity premium
Miscellaneous income
Grant revenue
Total operating revenues
$ 101,410,565
1,065,078
43,500
215,978
102,735,121

OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Program rebates and incentives
Other operating expenses
Depreciation
Total operating expenses
Operating income
60,139,034
2,939,390
3,390,515
793,953
801,325
477,749
68,541,966
34,193,155

NONOPERATING REVENUES (EXPENSES)
Investment income
Nonoperating revenues (expenses), net
5,568,139
5,568,139

CHANGE IN NET POSITION
Net position at beginning of year
Net position at end of period $
39,761,294
229,518,617
269,279,911
See accountants' compilation report. 3
47 of 83

SONOMA CLEAN POWER AUTHORITY
�
Four Months Ended October 31, 2024

STATEMENT OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts of security deposits
Other operating receipts
Payments to electricity suppliers
Payments for other goods and services
Payments of staff compensation
Payments of tax and surcharges to other governments
Payments for program rebates and incentives
Net cash provided (used) by operating activities
$ 109,708,528
2,729,879
441,163
(59,458,652)
(3,744,928)
(3,344,039)
(1,325,447)
(766,070)
44,240,434

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (197,516)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received
Proceeds from investment sales and maturities
Purchase of investments
Net cash provided (used) by investing activities
5,425,139
148,547,134
(72,846,918)
81,125,355
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period $
125,168,273
69,683,125
194,851,398
Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current)
Cash and cash equivalents - restricted (current)
Cash and cash equivalents - unrestricted (noncurrent)
Cash and cash equivalents
136,685,000
2,166,398
56,000,000
194,851,398
See accountants' compilation report. 4
48 of 83

SONOMA CLEAN POWER AUTHORITY
�

STATEMENT OF CASH FLOWS
Four Months Ended October 31, 2024
(Continued)

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:

Depreciation expense
(Increase) decrease in:

Accounts receivable, net
Other receivables
Accrued revenue
Prepaid expenses
Deposits
Increase (decrease) in:

Accrued cost of electricity
Accounts payable
Advances from grantors
Accrued liabilities
User taxes due to other governments
Net cash provided (used) by operating activities
$
$
34,193,155
477,749
2,052,142
(1,035,804)
3,837,826
(172,444)
2,533,501
(942,195)
17,093
(215,978)
3,477,919
17,470
44,240,434

NONCASH INVESTING ACTIVITES
Unrealized appreciation and timing differences in investment income $ 143,000 See accountants' compilation report. 5
49 of 83
1 ACCOUNTANTS’ COMPILATION REPORT

Board of Directors
Sonoma Clean Power Authority
Management is responsible for the accompanying Budgetary Comparison Schedule for the Operating Fund of Sonoma Clean Power Authority (a California Joint Powers Authority) for the five months ended November 30, 2024, 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.

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.

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 6, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 50 of 83
2024/25 YTD
Budget
2024/25 YTD
Actual
2024/25 YTD
Budget Variance
(Under) Over
2024/25 YTD
Actual / Budget % 2024/25 Budget
2024/25 Budget
Remaining
REVENUE AND OTHER SOURCES:

Electricity (net of allowance) * 108,115,990 $ 122,359,388 $ 14,243,398 $ 113% 239,147,000 $ 116,787,612 $ Evergreen Premium (net of allowance) 1,125,000 1,305,375 180,375 116% 2,700,000 1,394,625 Investment returns 3,000,000 6,747,276 3,747,276 225% 7,200,000 452,724 Miscellaneous Income 416,500 279,478 (137,022) 67% 1,000,000 720,522 Total revenue and other sources 112,657,490 130,691,517 18,034,027 116% 250,047,000 119,355,483 EXPENDITURES AND OTHER USES:

CURRENT EXPENDITURES Cost of energy and scheduling 82,441,595 73,359,071 (9,082,524) 89% 221,586,000 148,226,929 Data management 1,116,667 1,585,203 468,536 142% 2,680,000 1,094,797 Service fees- PG&E 412,500 411,441 (1,059) 100% 990,000 578,559 Personnel 4,670,685 4,263,920 (406,765) 91% 11,490,000 7,226,080 Energy Center, marketing & communications 1,407,716 1,060,879 (346,837) 75% 3,379,000 2,318,121 Customer service 126,750 33,451 (93,299) 26% 220,000 186,549 General and administration 772,423 683,412 (89,011) 88% 1,832,000 1,148,588 Legal 197,917 50,900 (147,017) 26% 475,000 424,100 Regulatory and compliance 191,667 143,603 (48,064) 75% 460,000 316,397 Accounting 134,800 159,900 25,100 119% 312,000 152,100 Legislative 91,667 72,000 (19,667) 79% 220,000 148,000 Other consultants 226,083 187,594 (38,489) 83% 535,000 347,406 Industry memberships and dues 369,500 304,732 (64,768) 82% 888,000 583,268 Program implementation 4,339,404 1,033,083 (3,306,321) 24% 10,136,000 9,102,917 Total current expenditures 96,499,374 83,349,189 (13,150,185) 86% 255,203,000 171,853,811 OTHER USES Capital outlay 458,333 169,513 (288,820) 37% 1,150,000 980,487 Total expenditures, other uses 96,957,707 83,518,702 (13,439,005) 86% 256,353,000 172,834,298 Net increase (decrease) in available fund balance 15,699,783 $ 47,172,815 $ 31,473,032 $ (6,306,000) $ (53,478,815) $ * Represents sales of approximately 893,000 MWh for 2024/25 YTD actual.

RESERVES
Balance - as of
June 30, 2024
Long-Term
Targeted
% of Long-Term
Target
Operating Reserve 231,889,000 $ 255,203,000 $ 91%

SONOMA CLEAN POWER AUTHORITY
Five Months Ended November 30, 2024

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND
See accountants' compilation report. 2
51 of 83
Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 47,172,815
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (597,431)
Add back capital asset acquisitions 169,513
Change in net position $ 46,744,897

TO CHANGE IN NET POSITION
Five Months Ended November 30, 2024

SONOMA CLEAN POWER AUTHORITY

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND (CONTINUED)

RECONCILIATION OF NET INCREASE IN AVAILABLE FUND BALANCE See accountants' compilation report. 3
52 of 83

ACCOUNTANTS’ COMPILATION REPORT
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 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 November 30, 2024, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the five months 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.

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 6, 2025
1
53 of 83

SONOMA CLEAN POWER AUTHORITY

STATEMENT OF NET POSITION
As of November 30, 2024
ASSETS
Current assets
Cash and cash equivalents - unrestricted $ 131,640,708
Cash and cash equivalents - restricted for grant purposes 2,166,398 Accounts receivable, net of allowance 16,602,772
Other receivables 2,955,965
Accrued revenue 14,333,169
Prepaid expenses 1,013,792
Deposits 125,586
Investments 58,318,716
Total current assets 227,157,106
Noncurrent assets
Cash and cash equivalents - unrestricted 56,000,000
Investments 58,815,601
Other receivables 1,014,408
Deposits 16,256
Capital assets, net of depreciation 18,173,057
Total noncurrent assets 134,019,322
Total assets 361,176,428

LIABILITIES
Current liabilities
Accrued cost of electricity 21,433,864
Accounts payable 1,359,499
Advances from grantors 2,166,398
Other accrued liabilities 1,720,209
User taxes and energy surcharges due to other governments 648,823 Supplier security deposits 204,000
Total current liabilities 27,532,793
Noncurrent liabilities
Supplier security deposits 1,380,121
Total liabilities 28,912,914

DEFERRED INFLOWS OF RESOURCES
Rate Stabilization Fund 56,000,000

NET POSITION
Investment in capital assets 18,173,057
Unrestricted 258,090,457
Total net position $ 276,263,514
See accountants' compilation report. 2
54 of 83

SONOMA CLEAN POWER AUTHORITY
�

STATEMENT OF REVENUES, EXPENSES
�

AND CHANGES IN NET POSITION
�
Five Months Ended November 30, 2024
�

OPERATING REVENUES
Electricity sales, net
Evergreen electricity premium
Miscellaneous income
Grant revenue
Total operating revenues
$ 122,359,388
1,305,375
63,500
215,978
123,944,241

OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Program rebates and incentives
Other operating expenses
Depreciation
Total operating expenses
Operating income
73,359,071
3,847,311
4,263,920
890,743
988,144
597,431
83,946,620
39,997,621

NONOPERATING REVENUES (EXPENSES)
Investment income
Nonoperating revenues (expenses), net
6,747,276
6,747,276

CHANGE IN NET POSITION
Net position at beginning of year
Net position at end of period $
46,744,897
229,518,617
276,263,514
See accountants' compilation report. 3
55 of 83

SONOMA CLEAN POWER AUTHORITY
�
Five Months Ended November 30, 2024

STATEMENT OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts of security deposits
Other operating receipts
Payments to electricity suppliers
Payments for other goods and services
Payments of staff compensation
Payments of tax and surcharges to other governments
Payments for program rebates and incentives
Net cash provided (used) by operating activities
$ 131,429,532
3,330,000
472,537
(69,893,165)
(4,855,338)
(4,209,643)
(1,606,072)
(862,860)
53,804,991

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (197,516)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received
Proceeds from investment sales and maturities
Purchase of investments
Net cash provided (used) by investing activities
6,145,311
148,547,134
(88,175,939)
66,516,506
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period $
120,123,981
69,683,125
189,807,106
Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current)
Cash and cash equivalents - restricted (current)
Cash and cash equivalents - unrestricted (noncurrent)
Cash and cash equivalents
131,640,708
2,166,398
56,000,000
189,807,106
See accountants' compilation report. 4
56 of 83

SONOMA CLEAN POWER AUTHORITY
�

STATEMENT OF CASH FLOWS
(Continued)
�
Five Months Ended November 30, 2024
�

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 39,997,621
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:

Depreciation expense 597,431
(Increase) decrease in:

Accounts receivable, net 5,567,775
Other receivables (747,930)
Accrued revenue 641,450
Prepaid expenses (121,786)
Deposits 2,529,773
Increase (decrease) in:

Accrued cost of electricity 2,472,778
Accounts payable 306,915
Advances from grantors (215,978)
Accrued liabilities 2,827,470
User taxes due to other governments (50,528)
Net cash provided (used) by operating activities $ 53,804,991

NONCASH INVESTING ACTIVITES
Unrealized appreciation and timing differences in investment income $ 601,965 See accountants' compilation report. 5
57 of 83
Page intentionally left blank for double-sided printing

58 of 83

Staff Report – Item 07
To: Sonoma Clean Power Authority Board of Directors
From: Neal Reardon, Director of Regulatory Affairs
Miles Horton, Legislative Policy & Community Engagement Manager Geof Syphers, Chief Executive Officer
Issue: Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
Date: February 6, 2025
Requested Action
Receive legislative and regulatory updates, approve legislative positions, and provide direction as appropriate.

Regulatory Updates
PG&E Proposes to Withdraw CSU Monterey Bay Campus Electrification Pilot On January 7th PG&E submitted a Motion to Withdraw Application 22-08-033 for a zonal electrification pilot project at California State University Monterey Bay (CSUMB).

The utility initially proposed this pilot in collaboration with CSUMB in August of 2022.

It would have de-carbonized 400 housing units at the campus and avoided costly upgrades to PG&E’s natural gas, also known as the fossil methane (FM) distribution system.

PG&E cited several reasons for now deciding to withdraw from the pilot. These included operational challenges and delays in procuring equipment for FM pipeline replacements, as well as higher than expected environmental remediation costs.

Disagreements over cost-effectiveness, legal precedent, and recovery of project costs were also factors. The utility also acknowledged negative feedback from stakeholders and a new CPUC proceeding developing metrics and priorities for similar projects as rationale for withdrawing.
59 of 83

Sonoma Clean Power was supportive of this pilot to pursue building decarbonization on a significant scale. Fortunately, the recently initiated proceeding to evaluate strategic gas line decommissioning will provide SCP with the opportunity to engage in advocacy to inform statewide planning and ensure consideration of pilots in our territory. The goal of that proceeding is to identify 30 pilot projects, likely at a smaller scale than the CSUMB proposal, by 2026. Consistent with the policy directives adopted by this Board, SCP staff will continue to advocate for proactive and strategic replacement of aging FM infrastructure with enhanced electrical capacity to enable cost-effective fuel switching.

Legislative Updates
The 2025-2026 legislative session has kicked off, and the Legislature will be working through mid-September of this year before adjourning until next January. The service territory of Sonoma Clean Power is represented by five Democratic legislators: Mike McGuire and Christopher Cabaldon in the Senate and Cecilia Aguiar-Curry, Damon Connolly, and Chris Rogers in the Assembly. Senator McGuire currently serves as President Pro Tempore (leader) of the Senate, although he will be leaving the Legislature in 2026 due to term limits. Sonoma Clean Power staff is engaging with those legislators and many others on several fronts, including at CalCCA’s state legislative “lobby day” on January 29th; Geothermal Rising’s lobby day on February 13th; and Sonoma Clean Power’s own lobby day on March 4th .

Sponsored Legislation
Last year, Sonoma Clean Power was the proud sponsor of Assembly Bill 1359 (Papan), which was signed into law by Governor Newsom. This new law allows local governments to serve as the lead agency for approving new geothermal exploration wells and resolved a significant legal threat to the success of SCP’s GeoZone effort.

Today, California’s regulatory environment continues to present a challenge to the success of new geothermal projects across our state, including through the GeoZone.

For background, California’s renewable energy policies have done an excellent job of creating very high demand for clean resources like geothermal power that can run at night and in the winter. But while the demand side of the equation is positive – and even while California has a superior geology and workforce for geothermal development as compared to other states – the perceived regulatory challenges nonetheless mean that many geothermal developers are choosing to site their projects in places like Nevada and Utah and sell into the California market. (See, for 60 of 83

example, Fervo Energy’s recent deal to sell hundreds of megawatts from their Cape Station project in Utah to Southern California Edison.) SCP believes that encouraging more geothermal development in California could have several benefits, including reinvesting customer money and creating well-paid, highly skilled jobs locally; building reliability and energy independence in our communities, not elsewhere; and avoiding transmission costs associated with shipping power across the West.

California should also be the tip of the spear in terms of incubating the next generation of clean energy technologies and should probably not be relying on local governments in other states to approve projects in order for our climate ambitions to become reality.

In that vein, Sonoma Clean Power staff have developed several ideas for legislation to sponsor in 2025:
• NEPA/CEQA alignment: Several months ago, President Biden drafted a new categorical exclusion from the National Environmental Policy Act (NEPA) for geothermal exploration projects meeting the gold standard of environmental stewardship. This was based on the Bureau of Land Management’s assessment that geothermal exploration projects, when completed under a high-bar environmental standard, have a minimal environmental impact. Over 60% of Utah and over 80% of Nevada is federal land where this exclusion applies. California has a similar opportunity to create a narrow, targeted exemption from the California Environmental Quality Act (CEQA) - our equivalent to NEPA - to align with the federal exclusion. This proposal would similarly require that a geothermal exploration project meet the gold standard of environmental protection and also mandate that all workers on a project benefitting from the proposed exemption be paid the prevailing wage. SCP staff are exploring opportunities to work with labor, key environmental organizations, and others on this proposal.
• Geothermal action plan: In 2021, the Governor signed Assembly Bill 525 (Chiu), which directed the state to create a strategic roadmap for bringing offshore wind development into California. While the relevant offshore wind proposals continue to face a variety of challenges, AB 525 was successful at its intended purpose – paving the way for needed changes to law and regulation to begin. SCP’s proposed legislation would do something similar for the in-state development of new geothermal resources (both conventional hydrothermal as well as next-generation technologies). State agencies would 61 of 83

be required to identify state lands to lease for geothermal development; review geothermal lease rental and royalty rates to ensure competitiveness with other states; harmonize relevant permitting timelines; and take a variety of other steps to improve the regulatory environment around geothermal, all as part of a comprehensive action plan.

Allowing geothermal power to use the “opt-in” process: Today, renewable energy developers can choose to site and permit their projects through what is typically called the “opt-in” process at the California Energy Commission. The idea is that the Energy Commission serves as a “one-stop shop” for all siting, permitting, and regulatory issues to move projects more quickly. A high level of community engagement and review are still required. Because only projects 50 MW in size or greater can use this process, most geothermal power plants (which are typically 10, 20, or 30 MW in size) are functionally excluded.

This is even though a geothermal power plant running around the clock can produce as much energy as a far larger solar or wind project that is intermittent. This legislation would simply clarify that a geothermal power plant of any size can be approved through the “opt-in” process.

Local Political Update
On January 22, Sonoma State University announced serious budget cuts designed to address the university’s lower enrollment rates and the California State University System’s overall 8% cut in funding. The proposed cuts eliminate numerous staff and professors, entire departments and many of the majors that Sonoma Clean Power staff have earned over the years. CEO Syphers’ letter to the Board of Trustees calling for a more thoughtful plan is attached.

Attachments
 Attachment 1 - SCP Letter re: SSU Cuts
62 of 83

P.O. Box 1030, Santa Rosa, CA 95402
January 28, 2025
Chairman Jack B. Clarke Jr. and Board of Trustees
California State University
401 Golden Shore
Long Beach, CA 90802
Dear Chairman Clarke,
I am writing to express my deep concern regarding the risk that would be created by implementing the disproportionate financial cuts recently announced for Sonoma State University (SSU). The scale of these cuts without a long-term plan for addressing the root cause of declining enrollment jeopardizes the university’s existence. As an alumnus of SSU in the applied physics program and the CEO of Sonoma Clean Power, I have witnessed firsthand the vital role this university plays in our region’s economy.

SSU’s contributions extend far beyond the campus. For decades, its programs—such as the Masters in Public Administration, Physics, Economics, and Earth and Environmental Sciences—have served as a pipeline for highly skilled professionals in Northern California. These programs have been instrumental in workforce development, supporting local businesses, governments, and organizations like mine that rely on SSU graduates for their expertise. Sonoma Clean Power hires many of these graduates. The elimination of these programs will have ripple effects across the region, crippling industries that depend on a steady flow of educated professionals.

A Long-Term Plan
The enrollment decline at SSU begs for a clear long-term plan, one that does not just involve budget cuts, but one that also lowers the risk of exacerbating the decline. SSU’s current identity as a liberal arts institution would be thrown into question with the proposed elimination of so many departments and majors. So what is its new identity? This question should not follow budget cuts; it should precede them.

Proven Methods for Increasing Enrollment
The breadth of the cuts also creates new risks for the continued viability of SSU. Historically, the CSU has mitigated budget shortfalls at underenrolled campuses by directing applicants elsewhere in the system to the underenrolled campuses. I’ve also seen expanded partnerships with community colleges, such as at CalPoly Humboldt, alleviate some expenses while preserving critical majors. A newer problem is that the CalState Apply online application process is rejecting students for overly rigid reasons and inviting them to appeal after they are rejected, a process that is daunting and leaving many seeking admission elsewhere. Repairing that online process would increase access and enrollment. Strategies such as these could bolster enrollment and preserve critical majors at SSU, but they appear absent in this proposal.
63 of 83

The North Bay has no other institution like SSU. Eliminating core academic programs, all athletics and entire departments jeopardizes not only the university’s ability to attract students but also its mission to serve the workforce needs of our region.

I respectfully request that the Board of Trustees support a rapid effort to articulate the long-term vision for SSU and then ensure any budget cuts support that vision. Additionally, I urge the Board to reinstate proven strategies, such as enrollment management, deeper partnerships with our community college, and fixing the online application tool to help close the budget gap without sacrificing the educational and economic lifeblood of the North Bay.

Thank you for your attention to this matter. I am confident that with thoughtful consideration and creative solutions, we can preserve the North Bay’s only educational institution of its kind.

Sincerely,
Geof Syphers, CEO
Cc: ! CSU Board of Trustees
Chancellor Mildred Garcia
Interim SSU President Emily F. Cutrer
Senator pro Tempore Mike McGuire
Senator Christopher Cabaldon
Assemblymember Damon Connelly
Assemblymember Cecilia Aguiar-Curry
Assemblymember Chris Rogers
64 of 83

Staff Report – Item 08
To: Sonoma Clean Power Authority Board of Directors
From: Ryan Tracey, Director of Planning & Analytics
Geof Syphers, Chief Executive Officer
Miles Horton, Legislative Policy & Community Engagement Manager Claudia Sisomphou, Public Affairs & Advocacy Manager
Issue: Receive Geothermal Opportunity Zone Update
Date: February 6, 2025
Background
The Geothermal Opportunity Zone (GeoZone) is SCP’s initiative to secure affordable, reliable clean energy for our customers by building 600 megawatts of new geothermal power capacity in Sonoma and Mendocino Counites. This will eventually enable SCP to phase out its dependence on natural gas power plants for reliability.

The Community Advisory Committee (Committee) meetings are a regularly scheduled public forum for the community to receive updates and provide input on the GeoZone. The updates provided to the Committee each month, and minutes from any discussion are posted on SCP’s website at https://sonomacleanpower.org/ geozone-public-updates. Staff incorporate any feedback received from the Committee presentation into the monthly updates to the Board of Directors.

Additional background on the GeoZone can be found on the GeoZone webpage at https://sonomacleanpower.org/geozone.

Partner Updates
SCP has cooperation agreements with three private companies to progress geothermal exploration and development in the GeoZone. Below are partner-specific updates for progress in the GeoZone.

Chevron New Energies
At the end of last year, Chevron New Energies publicly disclosed that they acquired property known as the Pocket Ranch, which is located between Geyserville and the 65 of 83

Geysers, with the intent to explore for geothermal energy. This information was shared with Geyserville organizations, including the Geyserville Alexander Valley Municipal Advisory Council. Chevron New Energies is planning on participating in an upcoming Geyserville Planning Committee meeting to answer community questions.

Chevron New Energies also recently shared with SCP that while the company continues to support geothermal development in the GeoZone, they are uncertain as to when activity will commence. Some additional learning from global and U.S. research into EGS will be valuable before this particular site is proposed for exploration. In the meantime, Chevron New Energies has let us know they are in contact with local authorities to ensure proper land and fire management. Chevron New Energies’ decision to delay active exploration in the GeoZone will require them to be withdrawn from consideration for the Department of Energy Enhanced Geothermal System grant for which they were selected.

Although staff are disappointed by the delay and decision to forgo grant funding, they are focused on capturing lessons learned and opportunities from Chevron New Energies to inform regulatory and political advocacy opportunities to further promote development interest in the GeoZone. Those lessons are informing staff’s legislative proposals in Item 7 of this board meeting. Chevron New Energies’ cooperation agreement with SCP requires completion of several key milestones, including permitting and interconnection, by March 2026 which may be at risk with a project delay. Staff appreciate Chevron’s continued interest in future development for the GeoZone but will be considering a variety of options in early 2025 to propose to the SCP Board of Directors on how to sustain momentum on the GeoZone’s objectives.

Eavor
Eavor has completed its technical feasibility study of developing a closed-loop system in the GeoZone and prioritizing the GeoZone project within its portfolio of global projects. Eavor is continuing to evaluate potential site host opportunities. Eavor’s cooperation agreement milestones, which include site control for a pilot and submission of an interconnection application, are due June 30, 2025. It is not expected that Eavor will meet all these milestones, and as with Chevron, staff will be considering options early this year on how to proceed. Eavor has expressed that its GeoZone project is still a strategic priority for the company, is technically feasible, and continues to be promising commercially.
66 of 83

Cyrq Energy
SCP submitted two grant abstracts in late 2024 for the GeoZone thermal energy storage system at the Geysers to both the California Energy Commission (CEC) and the Department of Energy (DOE). The abstract to the CEC was not selected to proceed. After meeting with the CEC staff, SCP learned that the abstract score was very high and was of strategic interest but declined due to the CEC’s decision to enforce a strict 50% round-trip efficiency cut-off for applications. SCP is working on an advocacy strategy to educate the CEC on why a round-trip efficiency cutoff is not a good measure of performance for thermal storage, which can charge very quickly with low or even negatively priced energy.

SCP’s grant abstract to the DOE, which was part of a very competitive solicitation with 141 submissions, was encouraged as one of only 41 projects to proceed to a full application. To proceed to a full application, the grant team will need to receive a formal commitment from an existing geothermal operator at the Geysers to host the demonstration. The project team is engaging site hosts as well as weighing the risk of DOE funds in the new administration before deciding whether to proceed with a full application which would be due in March.

Meanwhile, SCP staff met with the CEC staff working on revisions to the guidelines for counting Renewable Portfolio Standard (RPS) energy. A key risk to the project is that the current guidelines would unfairly reduce the RPS-eligible energy from a geothermal plant that hosts a thermal energy storage system. SCP has started aggressive advocacy on the need for guidelines that allow the RPS-eligibility of a geothermal plant to be preserved. The reception from CEC staff on this issue has been positive, and they’ve followed up with multiple questions that suggest they are actively considering the changes needed to address the issue.

Community Engagement
SCP’s outreach to key stakeholders and community groups on the GeoZone is continuing. In the past several months, SCP staff have met with and briefed several local groups in the GeoZone early interest area, including the Geyserville/Alexander Valley Municipal Advisory Council and the Alexander Valley Association, in addition to continuing to build relationships with key labor and environmental organizations, elected officials, and others. In addition, SCP staff, with the help of K Street Consulting, are beginning the consultation process with local tribal governments. 67 of 83

SCP will also be hosting a town hall meeting on the GeoZone at the Cloverdale Veterans Building on Thursday, February 6 from 5:30 – 7:00 PM. The event will feature Sonoma County Supervisor James Gore, Cloverdale Mayor and SCP Board member Todd Lands, North Bay Building Trades Secretary/Treasurer Michael Allen (tentative), and others. All are welcome to attend.

Regional Planning Grant
SCP collaborated with the counites of Sonoma and Mendocino in submitting a grant application to the California Energy Commission (CEC) in January to fund subsurface modeling, analysis of remote sensing data, surface constraint analysis, community engagement, planning staff development, and surveillance surveys to proactively plan for geothermal development in the region. The National Renewable Energy Laboratory (NREL) has agreed to participate as the main provider of technical services for the project. If awarded, SCP is excited about the potential for the project to augment the capabilities of county staff in planning and permitting geothermal development, as well as guide the geothermal industry to site projects that minimize ecological and cultural impacts. SCP will be providing staff time without reimbursement to the grant project to provide its perspective as a power provider and expertise from the GeoZone, as well as support in administering contracts to NREL and subcontractors. SCP’s letter of commitment for the grant application is included as Attachment 1. SCP anticipates notifications on selected grantees in March.

Committee Discussion
During the Committee GeoZone discussion on January 16th, committee members questioned whether the updates from Chevron and Eavor would push back the completion date of GeoZone projects by several years. Staff shared that while the exact schedule of any GeoZone development is not yet established, SCP is committed to identifying opportunities to sustain forward momentum with the GeoZone with the hope that any delays at this stage would be measured in months rather than years—especially if lessons learned are incorporated into shaping the best path forward. The Committee also asked whether staff would consider partnering with another developer further along with out-of-state EGS development. Staff shared that they consider that as an option.

Another Committee concern was whether the local conditions that enable the Geysers’ productivity as a conventional hydrothermal field make it less desirable for 68 of 83

development with next-generation technologies. Staff affirmed that the reservoir depletion and high temperatures in the region present challenges that are not present in other next-generation developments but shared that the partners believe these challenges can be overcome and still see a future where development in the GeoZone with next-generation technologies is both technically feasible and financially viable.

Attachments
 Attachment 1 – Letter of Commitment for Sonoma County’s grant application to the California Energy Commission
69 of 83

P.O. Box 1030, Santa Rosa, CA 95402
January 23, 2025
Robert Pennington
Permit Sonoma
County of Sonoma
2550 Ventura Avenue
Santa Rosa, CA 95403
RE: SCP Letter of Commitment GFO-23-402: Geothermal Grant & Loan Program - Sonoma-Lake-Mendocino Proactive Regional Geothermal Planning Project Dear Mr. Pennington,
Sonoma Clean Power (“SCP”) is pleased to provide this letter of commitment for Sonoma County’s application to the California Energy Commission’s GFO-23-402: Geothermal Grant & Loan Program application. SCP is the community choice aggregation (“CCA”) serving Sonoma and Mendocino County and has started the Geothermal Opportunity Zone (“GeoZone”) initiative to expand the capacity of local geothermal resources through a public-private partnership.

In the GeoZone initiative, SCP has committed to serving as off-taker for innovative projects developed by industry while providing support in community engagement, commercial input, and support in pursuing grant funding. SCP is excited to contribute its expertise from its leadership in the GeoZone, geothermal industry relationships, and strong track record of administering other CEC grants to the proposed project. Sonoma County’s project addresses many key local barriers to geothermal development with an approach that is data-driven, responsive to community input, and tailored to provide deliverables that will have long-lasting value to local government, the industry, and stakeholders.

SCP is committing in-kind labor and travel to the project valued at $164,170 to the project. The valuation of SCP’s in-kind contribution is detailed in its Budget Form in Attachment 7 and is consistent with the cost estimation guidelines for the grant. SCP’s personnel hours are based on a detailed activity-specific estimate and reflect the key role SCP is expected to provide in grant administration, subcontracting, overseeing technical deliverables, organizing a field visit, and facilitating community engagement over the three year term of the grant. The personnel dedicated to the project are already on staff and included in SCP’s budget. SCP has a strategic interest in local geothermal development and does not anticipate any challenges in prioritizing staffing to support the proposed project.

Sincerely,
Geof Syphers
Chief Executive Officer
70 of 83

Staff Report – Item 09
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Mike Koszalka, Chief Operating Officer
Rebecca Simonson, Director of Capital Projects and Engineering Issue: Approve Purchasing Policy for Local Energy Projects Date: February 6, 2025
Recommendation
Approve a Purchasing Policy for Local Energy Projects.

Background
The Board established SCP’s local investment fund at their meeting on November 2, 2023. The fund is intended to provide funds for SCP to own assets with a goal of generating revenues for the purpose of lowering customer rates over the long term. At the December 5, 2024, meeting, the Board also voted to contribute 2% of 2025 revenues to this fund.

The local investment fund will be used to acquire, build, own, and operate revenue generating assets. Such assets may require time-sensitive and expedited action, such as placing offers or bids on land for the development of energy assets.

Recently, an auction was held for a previously developed site in Mendocino County.

Due to the timing of the auction, SCP staff were unable to secure prior approval from the Board to place a bid, which resulted in a missed opportunity.

To prevent this situation from occurring in the future, staff seeks the Board’s approval to delegate authority to the CEO to make binding offers or bids on behalf of SCP, within certain limitations established and approved by the Board. 71 of 83

Community Advisory Committee Review
The Community Advisory Committee unanimously recommended approving the policy at their January 16, 2024, meeting.

Discussion
Staff recommend that the Board delegate authority to the CEO to make binding offers or bids on assets subject to the following limitations:

1. The investment shall not cause the cumulative total of investments to exceed 33% of the Local Investment Fund balance at the beginning of the fiscal year.

2. The property or asset is located in Sonoma or Mendocino counties;

3. The property or asset is for the purpose of constructing energy generating and/or storage assets;

4. The Board Chair and Vice Chair and the SCP Board Director representing the jurisdiction the parcel is in are notified prior to making any offer/bid;

5. If the offer/bid is accepted, all expenditures in excess of $250,000 are reported at the next Board meeting.

Attachments
 Proposed Purchasing Policy for Local Energy Projects
72 of 83

Purchasing Policy for Local Energy Projects
Power procurement expenditures are governed by Policy C.1 Energy Risk and all other expenditures are governed by Policy B.1 CEO Spending Authority. For acquiring assets for the development and/or ownership of Sonoma Clean Power local energy projects, the CEO is authorized to make binding offers or bids on assets without prior Board of Directors or Community Advisory Committee review or approval provided that:

1. The investment shall not cause the cumulative total of investments to exceed 33% of the Local Investment Fund balance at the beginning of the fiscal year.

2. The property or asset is located in Sonoma or Mendocino counties;

3. The property or asset is for the purpose of constructing energy generating and/or storage assets;

4. The Board Chair and Vice Chair and the SCP Board Director representing the jurisdiction the parcel is in are notified prior to making any offer/bid;

5. If the offer/bid is accepted, all expenditures in excess of $250,000 are reported at the next Board meeting.
73 of 83
Page intentionally left blank for double-sided printing

74 of 83
Staff Report – Item10
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Issue: Receive Presentation and Provide Input on a Draft Energy Project Selection Criteria
Date: February 6, 2025
Recommendation
Receive a presentation and provide feedback on draft criteria for selecting energy, capacity and energy storage projects. This feedback will be used to prepare a proposed final set of criteria for future Board consideration.

Background
The SCP Board of Directors provided input on guidelines for drafting project selection criteria during the November 7, 2024, meeting. The Board was expected to review a draft set of criteria for procurement on December 5, 2024, but an earthquake interrupted the meeting and caused the item to be held until the February 6, 2025, meeting.

Fortunately, the earthquake allowed additional time for staff to confer with Local 551, the CCA Workforce and Environmental Justice Alliance, renewable energy developers and California municipal utilities to further refine the proposal. Staff greatly appreciated having the extra opportunity to edit and improve on the procurement recommendations.

After the Board provides feedback on this draft, staff will work with the Community Advisory Committee to create a recommended final energy project selection criteria for the Board to consider adopting at the March or April 2025 meeting. 75 of 83
Attachments
➢ Draft Project Selection Criteria
➢ CCA Workforce and EJ Alliance Proposed Project Selection Methodology, available at this link or by request from the Clerk of the Board ➢ Board Policy - B.1 CEO Spending Authority - Reinstated 2024.04.04, available at this link or by request from the Clerk of the Board
➢ Board Policy - SCPA Energy Risk_Amended 2023.04.06, available at this link or by request from the Clerk of the Board
76 of 83

DISCUSSION DRAFT
Feb 6, 2025

PROJECT SELECTION METHODOLOGY
Sonoma Clean Power Authority (SCP) exists to provide public benefits, including protecting customers from sudden large changes in costs, lowering customer energy costs, reducing greenhouse gas emissions, investing in SCP’s local service territory, creating high quality jobs in SCP’s service territory, providing community services in SCP’s territory, and advocating for improved grid reliability and safety. This project selection methodology adds new voluntary goals relating to the workforce constructing new energy, capacity and energy storage resources and the community and environmental impacts of those construction projects.

It is the goal of SCP to sustain all of the agency’s existing public benefits while seeking to add these new project-related goals. The Board recognizes that adding new project selection criteria could, at times, increase costs and customer rates and therefore seeks to minimize any new costs.

I. DEFINITIONS
A. Energy Offtake Agreement: Power purchase agreements, energy storage agreements, or resource adequacy only agreements for new-build, in front of the meter, wholesale resources where SCP does not own or construct the resource. Instead, SCP's participation in the project is limited to receiving energy and any applicable attributes at a set price and term. Energy offtake agreements for existing resources are not a part of this criteria.

B. Journeyperson: Is a worker who either:
1) Graduated from a California state-approved apprenticeship program for the applicable occupation or, when located outside California, is approved for federal purposes pursuant to apprenticeship regulations adopted by the Secretary of Labor, or
2) Has at least as many hours of on-the-job experience in an applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the California Division of Apprenticeship Standards.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

77 of 83

C. Local Hire: Is a worker who is either:
1) A resident within the nearest communities in proximity to the project, as reasonably determined on a project-by-project basis (for example, further distances are allowable for rural projects); or 2) Is a resident of Sonoma or Mendocino counties.

D. Priority Worker: means an individual who resides in one of SCP’s designated Empower communities or is otherwise designated as a targeted hire or priority worker through a state-certified career training and placement program.

E. Small and Local Business: means a business that meets both of these criteria:
1) Has a fixed place of business with a street address in Sonoma or Mendocino Counties and having a valid business license issued by a jurisdiction in Sonoma or Mendocino Counties for at least the past six months; and
2) A business which has been certified to meet the U.S. Small Business Administration (SBA) size standards for its classification, OR meets any other official small business criteria established by Sonoma or Mendocino Counties.

F. Targeted Hire Program: is pipeline program which:
1) Partners with a Multi-Craft Core Curriculum (MC3) pre-apprenticeship program or programs, or equivalent industry and state-recognized certificated career training and placement program that recruits, supports and places Priority Workers in skilled construction trades; and
2) Creates opportunities for a Priority Worker to enter registered apprenticeship programs and/or obtain work hours needed to successfully complete their apprenticeship; or
3) Recruits and places income-qualified Journeypersons.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

78 of 83

II. PROJECT SELECTION METHODOLOGY
SCP considers responses to questions relating to the following criteria when selecting resources, while reserving the right to contract for resources that do not provide all requested information.

SCP procurement must comply with the procurement obligations in (A) and must also contribute to SCP’s mission in some manner, as delineated in (B). The considerations of which resources to procure that meet both (A) and (B) are then described in no particular order in (C) through (I).

A. Comply with Procurement Obligations
1) SCP’s first obligation is to comply with state mandates to procure energy and related resources.
2) SCP’s second obligation is to procure resources to fulfill the governing Board of Directors’ adopted Integrated Resource Plan.

B. Contribution to SCP's mission of Affordable, Renewable and Reliable Service
1) Assessment of affordability and value. Assessment of the project's projected revenues and avoided costs across all relevant day-ahead, real-time and ancillary markets, considering the project's expected change in value over the term of the contract, and its ability to manage, shift, or arbitrage existing SCP generation to maximize revenue and achieve SCP’s systemwide greenhouse gas reduction goals.
2) Assessment of the contribution of the resource to clean grid reliability.
3) Assessment of counterparty risk. Assessment and evaluation of the risk that a counterparty will fail to perform, or adequately remedy, its obligations.
4) Assessment of development risk. Assessment of the risk that the project is unable to obtain interconnection, deliverability, site control, entitlements, financing, or other necessary development milestones required to deliver the project by the anticipated online date.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

79 of 83

C. Workforce: Energy Offtake Agreements
SCP will prioritize new Energy Offtake Agreements where the developer is committed to:
1) Highest priority projects will commit to a multi-trade project labor agreement. Within this category, projects having the following goals will be ranked higher:
i. A goal of 30% of all project labor hours performed by Local Hires.
ii. Participation in a Targeted Hire Program with a goal of 10% of all project labor hours performed by Priority Hires.
2) Medium-priority projects will commit to utilization of prevailing hourly wage and benefit rates as determined by the California Department of Industrial Relations for California projects and state or federal prevailing wage and benefit rates for out-of-state projects. 3) Low-priority projects would fail to meet the previous criteria, but may include other workforce commitments and goals.

D. Workforce: Large Owned Resources
When considering contractors or developers for SCP-owned generation or storage projects requiring a Large Generator Interconnection Agreement from the California Independent System Operator (currently 20MW and larger), SCP will use commercially reasonable efforts to negotiate a multi-trade project labor agreement having:
1) A goal of 30% of all project labor hours performed by Local Hires. 2) Participation in a Targeted Hire Program with a goal of 10% of all project labor hours performed by Priority Hires.
3) A commitment to subcontracting with Small and Local Businesses.

E. Workforce: Small Owned Resources
When considering contractors or developers for SCP-owned generation or storage projects requiring a Small Generator Interconnection Agreement from the California Independent System Operator (currently less than 20MW), SCP will commit to:
1) Utilization of prevailing hourly wage and benefit rates as determined by the California Department of Industrial Relations.
2) Utilization of apprentices at the same ratio of apprentice hours to journeyperson hours as required for public works projects.

Generally, this is one apprentice hour per every five hours of DISCUSSION DRAFT – NOT AN ADOPTED POLICY

80 of 83

journeywork per craft.
3) Demonstrated commitment to Local and Priority Hires:
i. A goal of 30% of all project labor hours performed by Local Hires while incenting, through a negotiated contract structure, the contractor or developer to achieve a minimum of 60% of all project labor hours performed by Local Hires, and;
ii. A goal of 10% of all labor hours performed by Priority Hires. 4) Demonstrated effort to subcontract with Small and Local

Businesses.

F. Innovation
SCP recognizes that achieving its adopted climate goals will require significant improvements and innovation in geothermal energy, pumped hydropower energy storage, offshore wind, imported wind, long duration battery energy storage, scaling up demand response, transmission and distribution infrastructure and potentially many other technologies that have potential to lower customer costs while also lowering greenhouse gas emissions and air and water pollution.

SCP will prioritize projects that accelerate decarbonization and/or reduce costs for SCP customers while remaining cost competitive with for-profit power providers. Priority will be given to technologies that solve multiple problems and have potential to scale regionally or globally.

G. Location
Subject to a careful consideration of systemwide value and ratepayer costs, SCP prioritizes projects in accordance with the following priority order:
1) Projects located within Sonoma or Mendocino counties. 2) Projects delivering directly into the California Independent System Operator.
3) All other projects.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

81 of 83

H. Environmental Stewardship
SCP is committed to leading by providing customers with affordable energy that delivers benefits for air, water, the climate and the natural environment.

Without diminishing or interfering with permitting, planning land use, or development requirements of any authority having jurisdiction, including local, state and federal agencies, SCP prioritizes projects that:
1) Have the potential to enable the permanent retirement of once-through cooling power plants when sufficient similar projects reach scale in California, or
2) Are in urban areas or on previously developed, disturbed, or contaminated land that can be re-purposed, or
3) Where the developer and local land use authority have established an enforceable development agreement which, in part, sets forth measures to mitigate impacts to sensitive habitats or
environmentally sensitive areas and comply with any adopted habitat conservation plans, or
4) Which provide other specific environmental benefits prioritized by SCP’s Board of Directors.

I. Benefits Accruing to Underserved and Low-Income Communities SCP is committed to helping communities overcome barriers to their access to public investments, resources, education, and information about energy service and policy. SCP will prioritize projects that:
1) Demonstrate having established contacts with local community organizations and stakeholder groups representing a broad diversity of demographics and interests with which it intends to collaborate with to identify and address benefits and impacts of projects and ensure project benefits are communicated and accessible to the local community.
2) Commit to meaningful engagement with local communities throughout the entitlement and construction processes to identify and address the impacts of projects and ensure project benefits are communicated and accessible to the local community.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

82 of 83

Ill. REPORTING
SCP will assess project proposals in accordance with this Project Selection Methodology and compile and report data and metrics, as appropriate, through the annual GO-156 Supplier Diversity Report.

IV. RESERVATION OF AUTHORITY TO WAIVE PROJECT SELECTION

CRITERIA
The SCP Board Chair and Vice Chair may waive this Project Selection Criteria or any portion thereof, to:

J. Address an emergency or unforeseen situation that jeopardizes the safety or feasibility of a project; or
K. Comply with a California State or Federal executive or regulatory order or law.

V. CONSISTENT APPLICATION
SCP staff shall abide by this policy when procuring resources, regardless of whether those resources are procured directly or through a third party.

DISCUSSION DRAFT – NOT AN ADOPTED POLICY

83 of 83

Sonoma Clean Power Board of DirectorsFebruary 6, 2025

Sonoma Clean Power Board of Directors
February 6, 2025