Sonoma Clean Power Board of Directors
March 6, 2025

___________________________________________________________ AGENDA

BOARD OF DIRECTORS MEETING

THURSDAY, MARCH 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 MARCH 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
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Staff recommendations are guidelines to the Board. On any item, the Board may take action which varies from that recommended by staff.

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

BOARD OF DIRECTORS CONSENT CALENDAR

1. Approve February 6, 2024, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve)

2. Approve and Authorize the Chief Executive Officer or his Designee to Execute an Amendment to the Legal Services Agreement with Keyes & Fox LLP, for Legal Services with a Not-to-Exceed Amount of $300,000 for a Term of 1 Year (Staff Recommendation: Approve)

3. Receive Monthly Financial Report (Staff Recommendation: Receive and File)

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

BOARD OF DIRECTORS REGULAR CALENDAR

5. Direct Staff to Study the Feasibility of Expanding Sonoma Clean Power Authority’s Service to Clearlake, California (Staff Recommendation: Approve)

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

7. Receive an Update on Events and Community Engagement Efforts (Staff Recommendation: Receive and File)

8. Receive an Update on Educational Partnerships and Youth Workforce Development Efforts (Staff Recommendation: Receive and File)

9. Receive 2024 Annual Report (Staff Recommendation: Receive and File)

10. Discussion of Investment Opportunity for Reducing Ratepayer Costs Over Time (Staff Recommendation: Receive and File)

11. Approve the Proposed Budget Adjustments for Fiscal Year 2024-2025 (Staff Recommendation: Approve)

BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(Directors may report on their activities since the last Board meeting, including any reports required by Gov’t Code Section 53232.3(d).)

PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(Comments are restricted to matters within the Board’s jurisdiction. Please be brief and limit spoken comments to three minutes, or 300 words if written.)

ADJOURN
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Agenda Page 2 of 2
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COMMONLY USED ACRONYMS AND TERMS

CAC Community Advisory Committee
CAISO California Independent Systems Operator – the grid operator CCA Community Choice Aggregator – a 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
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___________________________________________________________

DRAFT MEETING MINUTES

BOARD OF DIRECTORS MEETING
THURSDAY, FEBRUARY 6, 2025
9:00 A.M.

CALL TO ORDER
(9:02 a.m. - Video Time Stamp: 00:02:15)
Chair Hopkins called the meeting to order.

Board Members present: Chair Hopkins and Vice Chair Barnacle, Directors Lands, Lemus, Elward, Fleming, Farrar-Rivas, Haschak, and Alternate Director Carter.

Director Koogle and Potter were absent with prior notice.

Staff present: Geof Syphers, Chief Executive Officer; Stephanie Reynolds, Director of Internal Operations; Scott Lawrence, Senior Commercial Accounts Manager; Neal Reardon, Director of Regulatory Affairs; Miles Horton, Legislative Policy & Community Engagement Manager; Ryan Tracey, Director of Planning & Analytics; Rebecca Simonson, Director of Capital Projects & Engineering; and Josh Nelson, Special Counsel.

BOARD OF DIRECTORS CONSENT CALENDAR
(9:03 a.m. - Video Time Stamp: 00:03:12)

1. Approve December 5, 2024, Draft Board of Directors Meeting Minutes

2. Ratify Generation Rates Effective February 1, 2025, Consistent with Prior Board Direction

3. Receive Investment Activity Report for the Month of December 2024 Public Comment: None
Motion to approve February 6, 2025, Board of Directors Consent Calendar by Director Lands

Second: Director Lemus

Motion passed by UNANIMOUS affirmation.

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BOARD OF DIRECTORS REGULAR CALENDAR

4. Nominate and Approve the Appointments of Chair and Vice Chair of the Board of Directors
(9:04 a.m. - Video Time Stamp: 00:04:28)
Chair Hopkins asked the Board of Directors (Board) if the term for Chair and Vice Chair should be lengthened to a two-year term as opposed to a one-year term. Director Fleming stated that she supported a 2-year terms for their stability. Chair Hopkins asked the Board when the extension should begin.

Director Lands stated that the 2-year terms should start now. Director Elward questioned the equity of extending the term. Director Lemus said she would like to try 2 concurrent 1-year terms. No decision was made on extending the terms.

Chair Hopkins opened nominations for Chair of the Board.

Director Lands nominated Vice Chair Barnacle to be Chair of the Board.

Public Comment: None

Motion to Appoint Vice Chair Barnacle as the Chair of the Sonoma Clean

Power Authority by Director Lands

Second: Director Elward

Motion passed by UNANIMOUS affirmation.

The gavel was passed from Director Hopkins to Chair Barnacle. Chair Barnacle

thanked the Board and staff.

Chair Barnacle opened nominations for Vice Chair of the Board. Director Fleming nominated Director Elward. Director Lemus nominated Director Farar-Rivas. Director Hopkins nominated Director Lemus.

Directors Lemus and Farra-Rivas declined their nominations.

Public Comment: None
Motion Appoint Director Elward as Vice Chair of the Board by Director Fleming Second: Director Lands
Motion passed by UNANIMOUS affirmation.
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Vice Chair Elward thanked the Board and staff.
9:25 a.m. Director Hopkins exited the meeting.

5. Receive Welcome Orientation to the Sonoma Clean Power Authority Board of Directors
(9:26 a.m. - Video Time Stamp: 00:26:42)
Geof Syphers, CEO, gave a welcome orientation to the Board. Alternate Director Carter thanked SCP and said he likes the Customer Center and their bill reading classes. Vice Chair Elward requested that the orientation video be uploaded to SCP’s website. Director Lands asked what constitutes large hydro and CEO Syphers responded that it was anything over 30MW.

Public Comment: None

6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:57 a.m. - Video Time Stamp: 00:57:53)
Stephanie Reynolds, Director of Internal Operations, gave a brief introduction to the operations report and discussed the December Humboldt County Earthquake. Director Reynolds then introduced Scott Lawrence, Senior Commercial Accounts Manager, who gave an update on SCP’s outreach to small businesses.
10:02 a.m. Director Fleming exited the meeting.

Director Lemus asked if the small business outreach was ongoing, and Mr.

Lawrence answered that it was. Chair Barnacle thanked SCP and asked how the Board could help to get the information out and Mr. Lawrence said that SCP is currently analyzing data and working on a campaign. Director Reynolds then gave a Financial Report update and announced that going forward the Finance Department will address the monthly reports as part of a recurring financial department item.
10:07 a.m. Director Hopkins re-entered the meeting.

Chair Barnacle said he would like to dig into SCP’s financial information deeper to increase overall understanding and financial literacy across the Board.

Director Farrar-Rivas would like to have a maturity analysis for investments. 7 of 83

Public Comment: None

7. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
(10:12 a.m. - Video Time Stamp: 01:12:42)
Neal Reardon, Director of Regulatory Affairs, discussed PG&E pulling their support from the CSU Monterey Bay electrification project because the project has become too difficult, is taking too long, and the stakeholders are complaining, and he added that the CPUC is hearing PG&E’s motion.

Alternate Director Carter asked what role SCP could play and Director Reardon answered that SCP can advocate in which areas are impacted by the CPUC decision. Director Haschak asked if PG&E would replace the gas lines at CSU Monterey Bay and Neal Reardon answered his understanding is PG&E would leave gas connections for years to come.
10:40 a.m. Director Fleming re-entered the meeting.

Miles Horton, Legislative Policy & Community Engagement Manager, announced that SCP would be holding a GeoZone Town Hall in Cloverdale.

Mr. Horton then discussed the legislative positions that SCP currently is working on, and the coalition of partners SCP is building.

Chair Barnacle said he supports SCP’s stated legislative positions and added that Petaluma is having issues with mobile home park energy rates and asked SCP to investigate this issue. CEO Syphers said that Director Reardon would reach out to the Chair. Chair Barnacle then asked what the impacts of potential tariffs from the Trump Administration would be and CEO Syphers said that SCP would have to wait and see.

Public Comment: Tim Frank said the Environmental Justice Alliance offers legal guidance for Mobile Homeowners and is excited for GeoZone. Ben Peters stated he was supportive of legislative positions.

Motion to Approve Positions of NEPA/CEQA alignment, a Geothermal Action Plan, and allowing Geothermal Power to use the “opt-in” process by Director Hopkins
Second: Director Farrar-Rivas
Motion passed by UNANIMOUS affirmation.
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8. Receive Geothermal Opportunity Zone Update
(10:50 a.m. - Video Time Stamp: 01:50:24)
Ryan Tracey, Director of Planning and Analytics, mentioned the GeoZone Town Hall and announced that Chevron had disclosed its site in the GeoZone as Pocket Ranch, but at the same time Chevron made an internal decision to defer their decision on drilling an exploration well on the site. Director Tracey explained that delays are to be expected but this is still disappointing because Chevron would be unable to receive the Department of Energy’s geothermal grant.

Director Farrar-Rivas announced that the State of California was able to capture a lot of funding from the Inflation Reduction Act (IRA). CEO Syphers added that both the Biden and Trump Administrations agree on geothermal energy.

Alternate Director Carter asked if SCP could form an investment vehicle and Director Tracey said that it had been discussed. Chair Barnacle said that he would like to see an option “b” for the loss of the grant.

Public Comment: None

9. Approve Purchasing Policy for Local Energy Projects
(11:04 a.m. - Video Time Stamp: 02:04:49)
Rebecca Simonson, Director of Capital Projects & Engineering, gave a presentation on the Draft Purchasing Policy for Local Energy Projects for SCP.

Director Simonson stated that SCP currently has a local investment fund, and the intention of the policy is to ensure the funds would be used for SCP to own and/or operate its own energy projects with the goal of lowering customer rates. CEO Syphers added that SCP will see purchasing opportunities in the future and wants SCP to be nimble and available to consider opportunities as they arise, usually without much prior notice.

Chair Barnacle said he would like to be notified for anything requiring a Federal Permit and Director Hopkins added that active real estate negotiations would need to be discussed in Closed Session.

Public Comment: None
Motion to Approve Purchasing Policy for Local Energy Projects by Director Haschek
Second: Director Elward
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Motion passed by UNANIMOUS affirmation.

10.Receive Presentation and Provide Input on a Draft Energy Project Selection Criteria
(11:21 a.m. - Video Time Stamp: 02:21:57)
CEO Syphers gave a presentation on the proposed draft energy selection policy for SCP, and he thanked everyone for their input and eyes on the project. He stated that he had received great feedback, and he agreed with recommendations such as methods of waiving and some forms of disclosure.

He added that the item would be brought back to the Board two more times after this meeting.

Alternate Director Carter asked if there was an equity component for where projects would be built, and CEO Syphers answered the policy was not set up like that. Vice Chair Elward asked if a comparison can be shown between the draft policy and what labor is requesting and CEO Syphers answered that the intent is to show them side by side. Director Hopkins asked when the initial engagement with labor began and CEO Syphers said that he began discussing the plan 2 years ago, but it really kicked off in earnest about 8 months ago.

Director Farrar-Rivas requested more clarification on priority hires. Director Hopkins discussed the County of Sonoma’s selection policy and stated that this policy falls in line with labor’s view, but she would like to keep the discussion going. Chair Barnacle said that anything that SCP owns should operate under a labor agreement.

Public Comment: CCA Workforce & EJ Alliance discussed outstanding gaps in the Draft Energy Project Selection Criteria, their comment is attached. Tim Frank discussed the size of projects and the effect on apprentices. Jared Mumm discussed the apprenticeship community and working with trade unions. Woody Hastings discussed energy resources and the CAISO community. Ben Peters discussed locations and dual use.

BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(12:13 p.m. - Video Time Stamp: 03:13:47)
Public Comment: Director Haschak stated that he was happy to be on the Board.

Director Lands announced the GeoZone Townhall in Cloverdale. Director Fleming announced the Climate Subcommittee for Santa Rosa meets the 1st Wednesday every 10 of 83
month. Director Farrar-Rivas announced that the City of Sonoma is a Climate Smart City. Director Lemus announced the 2-day North Coast Resource Climate Project.

Chair Barnacle discussed his recent tribal consultation.

PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(12:17 p.m. - Video Time Stamp: 03:17:33)
Public Comment: Michael Heffer discussed solar panels on city buildings and his comment is attached.

ADJOURN
(12:18 p.m. - Video Time Stamp: 03:18:24)
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February 5, 2025
Chair Hopkins and Honorable Directors
Sonoma Clean Power
431 E Street
Santa Rosa, CA 95404
Re: Item 10, Draft Energy Project Selection Criteria—Addressing Outstanding Gaps Chair Hopkins and Honorable Directors,
Thank you for your continued leadership in developing a strong Energy Project Selection Policy for Sonoma Clean Power. We appreciate the collaborative efforts with staff and the thoughtful work invested in this process.

While meaningful progress has been made, key gaps remain that limit the policy’s ability to fully align with best practices in workforce standards, environmental sustainability, and community benefits. Closing these gaps is essential to strengthening SCP’s leadership, ensuring that the benefits of clean energy development reach all communities, supporting local economies, and enhancing long-term project success.
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To support this effort, we have attached the SCP Project Selection Policy Guidelines Analysis table, which outlines specific areas for refinement. We urge you to review these recommendations and incorporate them into your deliberations at tomorrow’s meeting.

We are available to meet ahead of the March Board meeting to discuss solutions and continue working toward a comprehensive, best-in-class policy that reflects SCP’s values. We appreciate your dedication to this effort and look forward to continued collaboration.

Sincerely,
Eric Veium, Tim Frank, & Leslie Austin
Co-coordinators, CCA Workforce & EJ Alliance
Attachments:
● SCP Project Selection Policy Guidelines Analysis
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SCP Draft Project Selection Policy Guidelines—CCA Alliance Analysis Feb. 5, 2025
# Issue Issue Description Policy
Reference Section SCP Proposed Language / Staff's Comments W&EJ Alliance's Response W&EJ Alliance's Recommendation 0 General: Reaffirm: Preference-based framework
The CCA W&EJ Alliance policy is
primarily a set of preference-based
standards that signal values to the
market and reward compliance. These
are voluntary goals, not mandates as
stated in the introduction to the policy.

Introduction
Language: "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."
Recognizing the preference-based framework of this
policy, the CCA Workforce & EJ Alliance encourages
the SCP Board to adopt the strongest possible
standards.
1 General: Reaffirm: Reservation of Authority to
Waive Project Selection Methodology
Further reaffirming the volunteer nature
of these standards, the Board has broad
authority to waive all or parts of the
project selection methodology.

IV
Reservation of Authority to Waive
Project Selection Methodology
Language: "The SCP Board Chair
and Vice Chair may waive this
Project Selection Methodology, or
any portion thereof, to:

Address an emergency or
unforeseen situation that
jeopardizes the safety or feasibility
of a project; or
Comply with a California State or
Federal executive or regulatory
order or law."
The Alliance supports this Board
authority. The goal of this policy is to
offer a holistic approach using clearly
defined and implemented standards for
clean energy projects that reduce CCA
development risk, support workers and
communities, and protect and promote
positive public perception of clean
energy development to accelerate
progress toward achieveing our clean
energy and climate goals. We aim to
discourage and devalue poor projects,
not inadvertently kill good ones.

The Board has broad authority to waive all or part of
the project selection methodology. Recognizing this
power, the CCA Workforce & EJ Alliance encourages
the SCP Board to adopt the strongest possible
standards
2 Workforce: Apply highest out-of-state prevailing wage California prevailing wages are typically
more up to date and higher than federal
prevailing wages. This is also true for
some other western states. Where this
is the case, we want to be clear that the
higher of the two should be the target.

II.C.2.ii Workforce: Medium-priority projects Language: Missing in staff's draft California's Department of Industrial
Relations conducts its own surveys to
determine prevailing wages and often
provides more up-to-date results with
higher wages than the federal prevailing
wage. Some other western states also
have higher state prevailing wages. The
priority here is to signal to project
developers the expectation that they
adopt the higher of the state or federal
prevailing wage.

For out-of-state projects, add language that 'prefers
the highest prevailing wage between state and
federal schedules.'
3 Workforce: Commit to utilize apprentices
The commitment to using apprentices
on public works jobs was one of the key
innovations of New Deal-era labor law.

This is a 'pay it forward' strategy that
ensures every public works project
contributes to training the next
generation of skilled construction
workers. Every city and county in the
SCP territory follows this practice.

II.C.2.ii Workforce: Medium-priority projects
Comment: "This is under review but
has met with enough concern by
developers that we are cautious."
This is an important practice for
workforce development and social
equity. All public works projects, even
very small ones, conform to this
standard. It is also current practice for
the majority of utility scale projects in California. SCP should be able to commit to this.

For Workforce Energy Offtake Agreements, add the
following standard to the definition of medium-priority projects:
"Utilization of apprentices at the same ratio of
apprentice hours to journeyperson hours as required
for public works projects."
4 Workforce: Commit to PLA for large SCP-owned projects Establishing a clear commitment to
Project Labor Agreements will signal
expectations, but still reserves the
flexibility to change policy if unforseen
exigencies require it. The clear
commitment assures that staff will not make a commitment to any project that lacks an agreement before securing
explicit board approval for the
exception. Note that the Sonoma
County Board of Supervisors just made
a commitement that all public works
projects greater than 1 million will be
covered by a Project Labor Agreement.

We think this is the right example to
follow.

II.D. Workforce: Large Owned Resources
Comment: "[Shall commit to PLA is]
not acceptable."
Language: 'Commercially
reasonable efforts'
Commercially resonable efforts' leaves
room for avoidance. The County of
Sonoma set the example on Tuesday
(2/4) when the Board of Supervisors
voted 4-1 to sign a PLA with the Building
Trades covering all projects that are $1 million or more. SCP can commit to signing a PLA, as well.

For Large SCP-owned projects: Replace
"Commercially reasonable efforts" to negotiate a
multi-trade project labor agreement with "Shall"
negotiate a multi-trade project labor agreement.
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SCP Draft Project Selection Policy Guidelines—CCA Alliance Analysis Feb. 5, 2025
# Issue Issue Description Policy
Reference Section SCP Proposed Language / Staff's Comments W&EJ Alliance's Response W&EJ Alliance's Recommendation 5 Workforce: Reasonable efforts to negotiate
PLA on smaller SCP-owned projects
Most of the utility scale projects located
within the SCP territory are likely to be in
the $1M to $10M dollar range, which means that is where most of the local employment opportunities will come
from. This should be the heart of SCP's
commitment to quality local jobs.

The Sonoma County Board of
Supervisors, which voted 4-1 to ensure
that every project larger than $1M is
covered by a PLA, has set an example
for how to address projects of this size.

SCP should follow the County's
example.

For projects under 1MW or less than
$1M, reasonable efforts are sufficient.

II.E. Workforce: Small Owned Resources
Comment: "Under review. This is
not typical for small systems, and
could limit our options for local
investments."
PLAs are, in fact, common on renewable
energy projects that meet this definition
of small. They are even common in rural
settings. Note that the County of
Sonoma just revised its definition of
'small' under the County PLA to a new
threshold of under $1 million.

For Small SCP-owned projects: apply "Commercially
Reasonable Efforts" standard regarding the
commitment to negotiating multi-trade project labor
agreement, and change the definition of 'small' to be
projects that are less than 1 MW.
6 Location: Prefer project located in California
The issue here is to prioritize projects
that are local or in California before
considering out-of-state projects. This
specific policy is about maximizing workforce and environmental benefits.

II.G.2. Location
Comment: "Understand the
preference, but it does not align
with energy market jurisdictions,
project development risks or
competitive solicitations. For these
reasons, I’ll be recommending the
board stay with existing language"
Staff's default approach to project
selection is to choose projects based on
technical and finacial requirements. The
purpose of having a locational
preference for California-based projects
is to encourage—assuming all other
factors are similar—the selection of
projects to be built within the state.

California has highest workforce and
environmental standards, which should
be achieved if possible, especially in
light of the federal government. Staff's
suggested policy treats out-of-state
projects connected to CAISO on the
same level as in-state projects
connected to CAISO. We believe there is
important value in pursuing this
approach.

We suggest the following locational preference:

1. Projects located within Sonoma and Mendocino Counties

2. Projects within the state of California with the first point of connection to CAISO

3. Projects outside the state of California with the
first point of connection to CAISO

4. Other out-of-state projects or all other projects
7 Community Benefits: Community engagement
throughout the project
Conduct meaningful community
engagement during pre-development,
entitlement, construction, and
operations.

II.I.2. Benefits Accruing to Underserved and
Low-Income Communities
Comment [Community engagement
thorughout the project is] "Not
feasible"
Language: Commit to meaningful
community engagementment DURING ENTITLEMENT AND CONSTRUCTION PROCESSES ...

To meet our climate and energy goals, we need to build a massive amount of new clean energy. Developers can no
longer get away with trying to have their
project fly under a community's radar—
especially now, in light of the battery
fires at Moss Landing. Poor community
engagement practices lead to increased
community opposition, which raises
project development risk and
contributes to widespread public
opposition to future clean energy
projects.

Replace 'entitlement and construction processes'
with 'entire project lifecycle.'
Reward projects proposers that clearly demonstrate
due diligence in understanding community dynamics,
communicate their commitment to meaningful
community engagement, and provide a clear,
thoughtful plan to conduct community engagement
while identifying and communicating benefits and
impacts.
8 Reporting: Report at time of project approval
Performance reporting for this policy
should occur both at time of project
approval and at project completion.

III. Reporting
Comment: "Will work with our team
to come up with a practical
solution."
For this policy to be impactful, staff must communicate their recommended projects against this policy in
comparison to other project options at
time of project approval, ensuring
transparency and informed decision-making by the Board and community.

Add to the Reporting section: 'SCP will assess and
select project proposals in accordance with this
Project Selection Methodology. While quantifiable
metrics may not be available at the time of board
approval, the known details of project commitments
and targets will be provided at the time of board
approval.'
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I recently reviewed the Climate Action Committee recommendations for the city of Sonoma and was struck by an issue I haven’t heard discussed at the SCP meetings I’ve attended - perhaps it has been covered and I am just unaware.

The City is considering adding solar panels to various city buildings in a way that doesn’t appear to reflect optimal usage of solar.

It seems to me there should be solar and battery backup in city buildings, or city designated buildings, that can be used as shelter in times of power outages. But for other buildings not designated for this emergency purpose, the city might very well be better off financially by using the Evergreen service.

Has this been discussed or look at previously. If not is it worth considering providing city’s and town this guidance?
Regards,
Michael Heffler
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Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Hannah Rennie, Portfolio Manager
Issue: Approve and Authorize the Chief Executive Officer or his Designee to Execute an Amendment to the Legal Services Agreement with Keyes & Fox LLP, for Legal Services with a Not-to-Exceed Amount of $300,000 for a Term of 1 Year
Date: March 6, 2025
Recommendation
Approve and Authorize the CEO or his designee to execute an amendment (Attachment 1) to the legal services agreement with Keyes & Fox LLP (Attachment 2) for legal services with a not-to-exceed amount of $300,000 for a term of 1 year.

Background
SCP is asking to amend its current legal agreement with Keyes & Fox LLP to continue ongoing legal work for transactional work for the procurement team and compliance work.

Community Advisory Committee Review
The Community Advisory Committee recommended the Board approve the amendment at their February 20, 2025, meeting.

Discussion
SCP has many transactional items that it is currently engaged with Keyes & Fox LLP, legal team that need additional time before the end of the fiscal year to complete. To continue working with Keyes & Fox LLP, SCP needs additional funds to be able to pay future invoices. Staff are requesting an increase in the not-to-exceed amount of $100,000 from the current value of $200,000, due to a significant amount of outstanding legal work prior to the contract rolling over at the end of June. 17 of 83
Fiscal Impact
The $100,000 request will come from the legal budget. This will fit within the current fiscal year budget.

Attachments
 Attachment 1 – Draft Keyes & Fox LLP Legal Services Agreement Amendment  Attachment 2 - Keyes & Fox LLP Legal Services Agreement, available at this link or by request from the Clerk of the Board
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Keyes & Fox LLP Amendment 1 Page 1 of 2
DRAFT AMENDMENT NO. 1

TO LEGAL SERVICES AGREEMENT

BETWEEN

SONOMA CLEAN POWER AUTHORITY
AND

KEYES & FOX LLP
This Amendment No. 1 to Legal Services Agreement (“Amendment No. 1) is made and entered into as of this __ day of ______, 2025, by and between Sonoma Clean Power Authority (“SCP”) and Keyes & Fox LLP (“Consultant”). SCP and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”
Recitals
A. Original Agreement. The Parties have entered into an agreement entitled “Legal Services Agreement” dated May 11, 2024 (“Original Agreement”), which is incorporated herein by reference as if fully set forth herein, for the purpose of Authority retaining Consultant to provide the Services set forth therein.

B. Amendment Purpose. SCP and Consultant wish to amend the Original Agreement to increase not to exceed amount.

C. Amendment Authority. This Amendment No. 1is authorized pursuant to Section 2 of the Original Agreement.

Amendment
Now therefore, the Parties hereby modify the Original Agreement as follows:

1. Definitions. All capitalized terms used in this Amendment No. 1 not defined in this Amendment No. 1 shall have the same meaning as set forth in the Original Agreement if defined in the Original Agreement.

2. Replace Section. Section 2 of the Original Agreement hereby replaced with:

Compensation; Payment Terms.
(a) Compensation to Attorney for services shall not exceed three hundred thousand dollars ($300,000). Only Attorneys or other legal staff expressly identified in Exhibit A, at the rates specified therein are eligible for compensation under this Agreement, except as expressly agreed to in advance by SCPA in writing.
(b) SCPA agrees to make monthly payments, based on invoices received for services satisfactorily performed, and for authorized reimbursable expenses. Payment terms are Net Thirty (30) days, upon receipt of an invoice that complies with all the requirements of this Agreement. Without limiting the foregoing, Attorney (1) acknowledges that its failure to submit an invoice within sixty (60) days of the occurrence of the event to which a charge contained therein relates is an express condition precedent to any right it may have to payment in connection therewith, and (2) hereby stipulates that Attorney’s failure Draft 19 of 83
Keyes & Fox LLP Amendment 1 Page 2 of 2
to strictly comply with such condition precedent is a waiver and release of any right Attorney might otherwise have to payment in connection therewith.

3. Continuing Effect of Agreement. All provisions of the Original Agreement otherwise remain in full force and effect and are reaffirmed. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Original Agreement, it shall mean the Original Agreement as amended by this Amendment No. 1.

4. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

5. Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

SONOMA CLEAN POWER AUTHORITY
Approved By:

Michael Koszalka,
Chief Operating Officer

Date

KEYES & FOX LLP
Approved By:

Kevin Fox,
Partner

Date
Approved as to form:

General Counsel
Draft 20 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 Monthly Financial Report
Date: March 6, 2025
Monthly Financial Report
The Financial Report is to inform the Board of Directors (Board) of monthly financial results and investment activity. The unaudited monthly financial statements that were previously provided as part of the Internal Operations Report will now be provided in the Monthly Financial Report. Additionally, the Monthly Financial Report will include an Investment Report which is a summary of investments and investment activity in SCP’s portfolio. The Investment Report and associated attachments are to inform the Board pursuant to the requirements of SCP’s Financial Policy B.5 Investments and Government Code Section 53607. This is an informational item only.

Monthly Compiled Financial Statements (December 31, 2024) The year-to-date change in net position is more than projections by approximately $35,219,000. Year-to-date revenue from electricity sales is over budget by approximately 12% and cost of energy is under budget projections by approximately 11%. Year-to-date electricity sales reached $147,323,000.

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

Net position reached a positive $282,967,000. Approximately $231,889,000 is set aside for operating reserves as of June 30, 2024.

Budgetary Comparison Schedule (December 31, 2024)
The accompanying budgetary comparison includes the 2024/25 budget approved by the Board of Directors. The budget is formatted to make comparisons for both the 21 of 83
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 12% at the end of the reporting period.

Interest earnings continue to trend higher than budget due to the persistence of higher interest rates and because of an investment strategy focused on locking in higher interest earnings over the near to intermediate term (3-5 year) investment horizon.

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. Current actual costs exceed the original budget due to onboarding costs of the new data manager.

In addition to the items mentioned above, SCP continues its trend of remaining near or under budget for most of its operating expenses.

Monthly Investment Report
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 Government Code Section 53607 and SCP’s Investment Policy require SCP to report 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.

Given the scheduling of the SCP’s Board meetings during the first week of the month, the investment report will indicate investment transactions that occurred two months prior to the Board Meeting (January 2025). SCP currently maintains bank accounts and 22 of 83
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.

Reportable Activities
USBank
In November of 2024, the Board approved amendments to SCP Investment Policy as recommended by SCP’s investment advisor, Chandler Asset Management (CAM).

CAM currently manages $40 million of SCP’s reserves. All investments directed by CAM are held at SCP’s custodian, USBank. All investments held as of January 31, 2025, at USBank appear as Attachment 3 with new holdings purchased in January highlighted. USBank transaction details for the month of January, including sales and maturities of securities, are in Attachment 4.

River City Bank
Staff attached a Statement of Investments as of January 31, 2025. A detail of the investments held at River City Bank appears as Attachment 5. There were no investment transactions in the month of January at River City Bank.

State of California Local Agency Investment Fund
The LAIF investment balance as of January 31, 2025, appears as Attachment 6.

Attachments
 Attachment 1 – December 2024 Financial Statements
 Attachment 2 – December 2024 Budgetary Statement
 Attachment 3 - Statement of Investments Held at USBank  Attachment 4 – Statement of Transactions at USBank
 Attachment 5 – Statement of Investments Held at River City Bank  Attachment 6 – Statement of Investments Held at the Local Agency Investment Fund
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1 ACCOUNTANTS’ COMPILATION REPORT
Management
Sonoma Clean Power Authority
Management is responsible for the accompanying financial statements of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2024, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the six 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.

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
February 4, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 24 of 83
ASSETS
Current assets
Cash and cash equivalents - unrestricted 125,429,128$
Cash and cash equivalents - restricted for grant purposes 2,166,398 Accounts receivable, net of allowance 19,598,203
Other receivables 2,926,814
Accrued revenue 15,182,868
Prepaid expenses 967,449
Deposits 6,125,436
Investments 58,254,744
Total current assets 230,651,040
Noncurrent assets
Cash and cash equivalents - unrestricted 56,000,000
Investments 62,697,013
Other receivables 988,312
Deposits 16,256
Capital assets, net of depreciation 18,075,352
Total noncurrent assets 137,776,933
Total assets 368,427,973

LIABILITIES
Current liabilities
Accrued cost of electricity 21,341,323
Accounts payable 992,987
Advances from grantors 2,166,398
Other accrued liabilities 2,209,150
User taxes and energy surcharges due to other governments 734,904 Supplier security deposits 636,000
Total current liabilities 28,080,762
Noncurrent liabilities
Supplier security deposits 1,380,121
Total liabilities 29,460,883

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

NET POSITION
Investment in capital assets 18,075,352
Unrestricted 264,891,738
Total net position $ 282,967,090

SONOMA CLEAN POWER AUTHORITY

STATEMENT OF NET POSITION
As of December 31, 2024
See accountants' compilation report. 2
25 of 83

OPERATING REVENUES
Electricity sales, net 145,746,339$
Evergreen electricity premium 1,577,009
Miscellaneous income 2,425,310
Grant revenue 215,978
Total operating revenues 149,964,636

OPERATING EXPENSES
Cost of electricity 91,284,900
Contract services 4,566,092
Staff compensation 5,239,088
Program rebates and incentives 1,181,995
Other operating expenses 1,182,886
Depreciation 717,087
Total operating expenses 104,172,048
Operating income 45,792,588

NONOPERATING REVENUES (EXPENSES)
Investment income 7,655,885
Nonoperating revenues (expenses), net 7,655,885
CHANGE IN NET POSITION 53,448,473
Net position at beginning of year 229,518,617
Net position at end of period $ 282,967,090
Six Months Ended December 31, 2024

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 3
26 of 83

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 151,547,688$
Receipts of security deposits 3,762,000
Other operating receipts 2,234,322
Payments to electricity suppliers (93,198,842)
Payments for other goods and services (5,708,938)
Payments for staff compensation (5,094,999)
Payments of taxes and surcharges to other governments (1,824,692) Payments for program rebates and incentives (1,153,962) Net cash provided (used) by operating activities 50,562,577

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Purchases of capital assets (203,742)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 6,930,349
Proceeds from sales and maturities of investments 148,547,134 Purchase of investments (91,923,917)
Net cash provided (used) by investing activities 63,553,566 Net change in cash and cash equivalents 113,912,401
Cash and cash equivalents at beginning of year 69,683,125 Cash and cash equivalents at end of period $ 183,595,526 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current) 125,429,128 Cash and cash equivalents - restricted (current) 2,166,398 Cash and cash equivalents - unrestricted (noncurrent) 56,000,000 Cash and cash equivalents 183,595,526
Six Months Ended December 31, 2024

STATEMENT OF CASH FLOWS

SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 4
27 of 83
Operating income (loss) $ 45,792,588
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:

Depreciation expense 717,087
(Increase) decrease in:

Accounts receivable, net 2,572,344
Other receivables (638,574)
Accrued revenue (208,249)
Prepaid expenses (75,443)
Deposits (3,470,077)
Increase (decrease) in:

Accrued cost of electricity 3,268,693
Accounts payable (75,322)
Advances from grantors (215,978)
Accrued liabilities 2,427,955
User taxes due to other governments 35,553
Supplier security deposits 432,000
Net cash provided (used) by operating activities $ 50,562,577 Unrealized appreciation and timing differences in investment income 725,536 $

NONCASH INVESTING ACTIVITES

SONOMA CLEAN POWER AUTHORITY

STATEMENT OF CASH FLOWS
Six Months Ended December 31, 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(Continued)
See accountants' compilation report. 5
28 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 six months ended December 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
February 4, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 29 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) * 130,322,633 $ 145,746,339 $ 15,423,706 $ 112% 239,147,000 $ 93,400,661 $ Evergreen Premium (net of allowance) 1,350,000 1,577,009 227,009 117% 2,700,000 1,122,991 Investment returns 3,600,000 7,655,885 4,055,885 213% 7,200,000 (455,885) Miscellaneous Income 499,800 279,478 (220,322) 56% 1,000,000 720,522 Total revenue and other sources 135,772,433 155,258,711 19,486,278 114% 250,047,000 94,788,289 EXPENDITURES AND OTHER USES:

CURRENT EXPENDITURES Cost of energy and scheduling 99,883,589 88,923,090 (10,960,499) 89% 221,586,000 132,662,910 Data management 1,340,000 1,840,416 500,416 137% 2,680,000 839,584 Service fees- PG&E 495,000 489,601 (5,399) 99% 990,000 500,399 Personnel 5,604,822 5,239,088 (365,734) 93% 11,490,000 6,250,912 Energy Center, marketing & communications 1,689,259 1,217,989 (471,270) 72% 3,379,000 2,161,011 Customer service 137,500 45,453 (92,047) 33% 220,000 174,547 General and administration 924,734 832,435 (92,299) 90% 1,832,000 999,565 Legal 237,500 66,323 (171,177) 28% 475,000 408,677 Regulatory and compliance 230,000 196,449 (33,551) 85% 460,000 263,551 Accounting 184,800 182,900 (1,900) 99% 312,000 129,100 Legislative 110,000 88,000 (22,000) 80% 220,000 132,000 Other consultants 270,200 233,652 (36,548) 86% 535,000 301,348 Industry memberships and dues 444,534 350,451 (94,083) 79% 888,000 537,549 Program implementation 4,893,446 1,387,304 (3,506,142) 28% 10,136,000 8,748,696 Total current expenditures 116,445,384 101,093,151 (15,352,233) 87% 255,203,000 154,109,849 OTHER USES Capital outlay 550,000 169,513 (380,487) 31% 1,150,000 980,487 Total expenditures, other uses 116,995,384 101,262,664 (15,732,720) 87% 256,353,000 155,090,336 Net increase (decrease) in available fund balance 18,777,049 $ 53,996,047 $ 35,218,998 $ (6,306,000) $ (60,302,047) $ * Represents sales of approximately 1,095,000 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
Six Months Ended December 31, 2024

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND
See accountants' compilation report. 2
30 of 83
Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 53,996,047
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (717,087)
Add back capital asset acquisitions 169,513
Change in net position $ 53,448,473

TO CHANGE IN NET POSITION
Six Months Ended December 31, 2024

SONOMA CLEAN POWER AUTHORITY

BUDGETARY COMPARISON SCHEDULE - OPERATING FUND (CONTINUED)

RECONCILIATION OF NET INCREASE IN AVAILABLE FUND BALANCE See accountants' compilation report. 3
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Attachment 1: Statement of Investments Held at USBank
Sonoma Clean Power
Statement of Investments Held at USBank
As of January 31, 2025
Investment Description Issue Purchase Date Maturity Date Par Value $ Market Value $ Purchase Price $ Purchase Yield in % Honda Motor Co., Ltd. Corporate --- 10/22/2027 500,000 $ 497,034 $ 498,034 $ 4.6 Bank of America Credit Card Trust ABS 10/28/2024 5/15/2029 325,000 328,100 328,644 4.5 Bank of America Corporation Corporate --- 7/23/2029 500,000 488,998 490,483 4.8 Bank of Montreal Corporate --- 9/10/2027 500,000 498,926 499,493 4.6 BMW Vehicle Owner Trust ABS 10/29/2024 2/26/2029 235,000 237,451 237,882 5.2 State of California Municipal Bonds --- 8/1/2029 400,000 399,101 402,083 4.4 Caterpillar Inc. Corporate 10/31/2024 10/15/2027 300,000 299,051 299,919 4.4 Caterpillar Inc. Corporate 11/14/2024 11/15/2029 300,000 299,673 299,523 4.7 Deere & Company Corporate 10/29/2024 9/15/2027 300,000 297,416 297,975 4.4 Deere & Company Corporate 1/6/2025 1/7/2028 340,000 341,698 339,898 4.7 FHLMC Agency CMBS 10/25/2024 6/25/2028 400,000 391,220 393,480 4.3 FHLMC Agency CMBS 10/25/2024 7/25/2028 400,000 391,568 394,000 4.3 FHLMC Agency CMBS 11/20/2024 8/25/2028 800,000 781,877 781,563 4.5 FHLMC Agency CMBS --- 9/25/2028 800,000 785,026 788,161 4.4 FHLMC Agency CMBS 12/11/2024 12/25/2028 885,000 859,260 864,500 4.4 FHLMC Agency CMBS --- 3/25/2029 800,000 767,472 769,713 4.5 FHLMC Agency CMBS --- 9/25/2029 800,000 749,288 751,094 4.5 First American Govt Oblig fund Money Market Fund --- 1/31/2025 249,016 249,016 249,016 4.0 Ford Credit Auto Owner Trust ABS 11/19/2024 8/15/2029 240,000 240,425 239,992 4.7 GM Financial Securitized Term ABS 10/30/2024 12/18/2028 300,000 301,336 301,406 4.6 GM Financial Securitized Term ABS 1/9/2025 12/17/2029 160,000 160,359 159,988 4.7 The Home Depot, Inc. Corporate 10/29/2024 6/15/2029 300,000 279,608 280,077 4.6 Honda Auto Receivables Owner Trust ABS 10/31/2024 8/15/2028 300,000 302,962 303,434 4.6 International Bank for Recon and Dev Supranational 12/12/2024 10/16/2029 400,000 391,003 393,488 4.5 JPMorgan Chase & Co. Corporate --- 7/23/2029 500,000 488,953 489,899 4.8 John Deere Owner Trust ABS --- 6/15/2029 619,000 611,895 611,120 4.7 Mercedes-Benz Auto Lease Trust ABS 10/28/2024 1/18/2028 300,000 303,600 304,383 4.5 Mercedes-Benz Auto Receivables Trust ABS 1/14/2025 12/17/2029 235,000 236,311 234,950 4.9 Morgan Stanley Corporate 1/16/2025 1/12/2029 250,000 250,989 250,215 5.0 Morgan Stanley Corporate --- 1/24/2029 500,000 484,429 485,111 4.8 The PNC Financial Services Group, In Corporate --- 7/23/2027 500,000 502,631 503,401 4.7 PACCAR Inc Corporate 10/29/2024 9/26/2029 300,000 291,239 292,719 4.6 Prologis, Inc. Corporate 10/24/2024 2/1/2029 300,000 295,577 298,323 4.5 Realty Income Corporation Corporate --- 12/15/2028 500,000 497,675 500,591 4.7 Royal Bank of Canada Corporate --- 10/18/2027 500,000 498,192 498,673 4.6 State Street Corporation Corporate 10/31/2024 10/22/2027 300,000 298,566 298,212 4.5 The Toronto-Dominion Bank Corporate 12/10/2024 12/17/2026 500,000 498,904 499,990 4.6 Toyota Motor Corporation Corporate --- 8/9/2029 500,000 495,653 497,616 4.7 Toyota Auto Receivables Owner Trust ABS 10/31/2024 10/16/2028 300,000 301,171 301,559 4.6 Toyota Auto Receivables Owner Trust ABS 1/22/2025 8/15/2029 240,000 240,693 239,990 4.7 U.S. Bancorp Corporate --- 7/22/2028 500,000 496,954 497,086 4.8 Government of The United States US Treasury 10/24/2024 10/2/2025 500,000 486,445 480,635 4.3 32 of 83
Investment Description Issue Purchase Date Maturity Date Par Value $ Market Value $ Purchase Price $ Purchase Yield in % Government of The United States US Treasury 1/23/2025 4/24/2025 1,000,000 990,704 989,458 4.3 Government of The United States US Treasury 10/31/2024 5/1/2025 500,000 494,936 489,177 4.5 Government of The United States US Treasury --- 11/15/2028 1,000,000 959,297 962,734 4.1 Government of The United States US Treasury 10/24/2024 4/30/2029 500,000 472,246 476,172 4.0 Government of The United States US Treasury 10/24/2024 4/30/2027 500,000 484,531 485,039 4.3 Government of The United States US Treasury --- 6/30/2029 1,000,000 957,031 960,449 4.2 Government of The United States US Treasury --- 6/30/2027 1,000,000 978,477 977,813 4.1 Government of The United States US Treasury 10/24/2024 4/15/2026 500,000 497,188 497,285 4.1 Government of The United States US Treasury 10/24/2024 4/30/2028 500,000 488,535 491,543 4.0 Government of The United States US Treasury --- 6/15/2026 1,000,000 998,789 998,379 4.2 Government of The United States US Treasury --- 6/30/2028 1,000,000 991,641 994,473 4.3 Government of The United States US Treasury 10/31/2024 8/31/2028 500,000 501,406 503,809 4.2 Government of The United States US Treasury 10/31/2024 1/15/2027 500,000 498,008 498,574 4.1 Government of The United States US Treasury 10/30/2024 1/31/2026 500,000 499,941 499,941 4.3 Government of The United States US Treasury 10/30/2024 2/15/2027 500,000 499,102 500,020 4.1 Government of The United States US Treasury 10/31/2024 2/28/2029 500,000 498,789 501,914 4.2 Government of The United States US Treasury 10/31/2024 8/15/2027 500,000 494,316 495,137 4.1 Government of The United States US Treasury 10/24/2024 9/30/2029 500,000 482,598 488,516 4.0 Government of The United States US Treasury 10/24/2024 9/30/2026 500,000 494,375 494,824 4.1 Government of The United States US Treasury --- 10/15/2027 1,000,000 990,938 993,672 4.1 Government of The United States US Treasury --- 10/31/2029 1,000,000 991,133 997,285 4.4 Government of The United States US Treasury --- 10/31/2026 1,000,000 998,477 998,711 4.2 Government of The United States US Treasury 11/12/2024 11/15/2027 1,000,000 997,109 995,000 4.3 Government of The United States US Treasury 1/23/2025 11/30/2029 1,000,000 991,250 985,664 4.5 Government of The United States US Treasury 12/18/2024 12/15/2027 1,000,000 993,828 990,156 4.4 Government of The United States US Treasury 1/10/2025 12/31/2029 1,000,000 1,001,797 993,242 4.5 Government of The United States US Treasury 12/30/2024 12/31/2026 1,000,000 1,000,664 999,844 4.3 Government of The United States US Treasury 1/7/2025 1/15/2028 1,000,000 1,000,234 996,719 4.4 UnitedHealth Group Incorporated Corporate 10/29/2024 10/15/2027 300,000 287,522 288,213 4.4 UnitedHealth Group Incorporated Corporate 1/10/2025 1/15/2030 250,000 249,589 246,965 5.1 Wells Fargo & Company Corporate 1/22/2025 1/23/2030 300,000 301,788 300,741 5.1 Wells Fargo & Company Corporate 1/16/2025 1/24/2028 400,000 400,177 400,000 4.9 Cash Cash --- 1/31/2025 10,260 10,260 10,260 -
Total and Weighted Average Yield 40,638,276 $ 40,114,422 $ 40,150,045 $ 4.4 33 of 83
Attachment 2: Statement of Transactions at USBank
Sonoma Clean Power
Statement of Transactions at USBank
January 2025
Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq./Disp. Yield Amount Purchased/Sold Interest Total Amount Net Realized Gain/Loss Buy 1/9/2025 24422EXZ7 340,000 JOHN DEERE CAPITAL CORP 4.65 01/07/2028 100 4.66 $ (339,898) $ - $ (339,898) $ - Buy 1/7/2025 31846V203 5,064,467 FIRST AMER:GVT OBLG Y 1 --- (5,064,467) - (5,064,467) - Buy 1/15/2025 362955AD8 160,000 GMCAR 2025-1 A3 4.62 12/17/2029 100 5.03 (159,988) - (159,988) - Buy 1/23/2025 477911AD3 250,000 JDOT 2024-C A3 4.06 06/15/2029 99 4.72 (246,660) 226 (246,886) - Buy 1/23/2025 58773DAD6 235,000 MBART 2025-1 A3 4.78 12/17/2029 100 4.84 (234,950) - (234,950) - Buy 1/21/2025 61690DK72 250,000 MORGAN STANLEY BANK NA 5.016 01/12/2029 100 4.99 (250,215) - (250,215) - Buy 1/29/2025 89240JAD3 240,000 TAOT 25A A3 4.64 08/15/2029 100 4.69 (239,990) - (239,990) - Buy 1/24/2025 912797NC7 1,000,000 UNITED STATES TREASURY 04/24/2025 99 4.32 (989,458) - (989,458) - Buy 1/24/2025 91282CMA6 1,000,000 UNITED STATES TREASURY 4.125 11/30/2029 99 4.46 (985,664) 6,233 (991,897) - Buy 1/13/2025 91282CMD0 1,000,000 UNITED STATES TREASURY 4.375 12/31/2029 99 4.53 (993,242) 1,571 (994,813) - Buy 1/15/2025 91282CMF5 1,000,000 UNITED STATES TREASURY 4.25 01/15/2028 100 4.37 (996,719) - (996,719) - Buy 1/15/2025 91324PFG2 250,000 UNITEDHEALTH GROUP INC 4.8 01/15/2030 99 5.08 (246,965) - (246,965) - Buy 1/23/2025 95000U3J0 300,000 WELLS FARGO & CO 5.198 01/23/2030 100 5.13 (300,741) - (300,741) - Buy 1/24/2025 95000U3R2 400,000 WELLS FARGO & CO 4.9 01/24/2028 100 4.90 (400,000) - (400,000) - Maturity 1/7/2025 912797MW4 (5,000,000) UNITED STATES TREASURY 01/07/2025 100 4.29 5,000,000 - 5,000,000 - Sell 1/19/2025 31846V203 (6,335,817) FIRST AMER:GVT OBLG Y 1 --- 6,335,817 - 6,335,817 - 34 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 January 31, 2025
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% 4.19%
*Most Recent Price (MTM) does not include accrued interest for CDARS 35 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 January 31, 2025
Investment Description Ending Balance Yield Market Value Local Agency Investment Fund $28,616,581 4.37% $28,605,764 36 of 83
Staff Report – Item 04
To: Sonoma Clean Power 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: March 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.

Cloverdale GeoZone Townhall
Sonoma Clean Power hosted its second GeoZone Town Hall on Thursday, February 6, 2025, at the Cloverdale Veterans Memorial Building. Despite the unfavorable weather, the event still had over 60 in-person attendees and 28 virtual attendees on Zoom. Refreshments and Spanish translation services were provided.

Guest speakers included Sonoma County District 4 Supervisor James Gore, SCP Director and Mayor of the City of Cloverdale Todd Lands, and Michael Allen of the 37 of 83
North Bay Building Trades Council. The agenda included welcome remarks from SCP staff and Supervisor Gore, followed by a presentation on the GeoZone initiative, and then comments and questions from the audience for panelists.

Overall, it was a productive evening, and staff received a lot of good questions and engagement from the crowd. The biggest topics/concerns were the risk of seismic activity and how to guarantee oversight from the community and elected officials as these projects are developed. Other common themes were water use, land use, and impacts to existing infrastructure (e.g. roads).

Geothermal Legislation Package
SCP’s Board of Directors unanimously approved moving forward with sponsorship of three bills to support geothermal development in California in the last meeting.

These three bills were introduced in late February: AB 526 (strategic state planning for new geothermal), AB 527 (categorical exclusion for CEQA for geothermal exploration), and AB 531 (expand eligibility for environmental leadership projects to all geothermal projects). SCP participated in a Geothermal Rising industry lobby day on February 13th to raise awareness in Sacramento of geothermal challenges and opportunities and will lead a lobby day specifically targeted at progressing SCP’s geothermal legislative package on March 4th.

Partner Updates
SCP has cooperation agreements with three private companies to progress geothermal exploration and development in the GeoZone. In the January Committee meeting, staff shared that both Chevron New Energies and Eavor are unlikely to meet their upcoming cooperation agreement milestones. Staff are committed to maintaining forward momentum on the GeoZone and considering a variety of options, including negotiating extended cooperation agreement with existing partners, pursuing new GeoZone partnerships, or both. Staff have asked Chevron New Energies and Eavor to take a first step at proposing the structure of extended cooperation agreements in the next month. Staff also attended the Stanford Geothermal Workshop in early February to reach out to other potential partners from the geothermal industry.

In late January, SCP collaborated with Cyrq Energy and Rondo Energy on completing a robust commercial economic model of the proposed thermal storage project at the Geysers. Due to reduced energy market volatility, the lack of a market signal for long-38 of 83 duration storage, technical limitations, and increased costs the project team found that the proposed thermal storage project at the Geysers would be economic but not deliver a compelling return commensurate with the project’s risks. Given the commercial study outcome and the large uncertainty associated with current federal funding, the project team does not expect to pursue the Department of Energy grant for which it was down selected. Staff will be deciding whether to continue progressing the thermal storage project in the next few months.

Community Advisory Committee Review
The Committee expressed appreciation for the Cloverdale GeoZone Townhall, and the information shared on economic benefits. The Committee recommended that staff review frequently used questions to improve GeoZone outreach and develop a communication strategy that reaches community members that are not available to attend town hall events.

The Committee asked clarifying questions on the commerciality update on the thermal storage system and requested that staff expand their focus on intraseasonal energy storage, including technologies such as methanol. Staff shared that the upcoming 2025 Integrated Resource Plan (IRP) process will be a good venue for evaluating the potential role of these technologies in SCP’s future energy portfolio. 39 of 83
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Staff Report – Item 06
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Issue: Direct Staff to Study the Feasibility of Expanding Sonoma Clean Power Authority’s Service to Clearlake, California
Date: March 6, 2025
Recommendation
Direct staff to study the feasibility of expanding Sonoma Clean Power Authority’s service to Clearlake, California.

Background
On February 20, 2025, the City Manager of Clearlake, California, sent Chair Barnacle a letter requesting SCP to perform an analysis to evaluate the feasibility of expanding SCP service to that city. Clearlake is the largest incorporated city in Lake County with a population of about 15,600.

For history, the Lake County Administrative Officer requested that SCP evaluate extending service to Lake County in May 2019. Staff completed the study in February 2020, which found the PCIA for new customers was relatively high, and the prospect for SCP rates significantly above PG&E’s bundled rates was a concern. The Lake County Board of Supervisors decided to wait for different conditions as a result. Since then, the economics have likely shifted, and it appears that new customers would have a lower PCIA. However, Lake County customers are likely to use more energy in the winter, when costs can be high, so a careful analysis of the economics would be needed before staff could make a clear recommendation.

With growing statewide interest in building new geothermal energy sources, it is possible that elected officials around Lake County may see value in revisiting the conversation about Lake County collaborating with or joining the GeoZone. Given the improved economics for expanding CCA service, those discussions are likely to also 41 of 83
include the potential for CCA service from SCP as well. As a result, staff ask the Board to consider directing SCP to study the detailed economics of potential expansion of service to the City of Clearlake, along with a high-level look at the potential impact of serving other Lake County jurisdictions.

Discussion
The process for evaluating service to new communities is governed by the Board of Directors’ Administrative and General Policy D4 (attached). Step 1 (A letter of request) and Step 2 (Initial SCP staff assessment of agency capacity for an analysis and identification of any obvious concerns) are completed. There are no special or unusual concerns identified at this time.

If the Board has an interest in exploring this opportunity, the SCP Board would determine if a full study is warranted in Step 3. If the Board so decides, staff would negotiate a contract (Step 4) with the City of Clearlake to agree that any costs associated with the feasibility study and expansion of service would be borne by the City of Clearlake in the form of delays for offering customer program incentives.

Staff would then complete an analysis and report back to both the SCP Board of Directors and the City of Clearlake on the results. This process may take several months to fit into SCP’s busy operations.

The steps that would follow will depend on the results of the analysis and the interest of the SCP Board and the City of Clearlake. Details of that process are shown in Policy D4.

Community Advisory Committee Review
Due to the timing of the City of Clearlake’s request, this item came to the Board first but will be brought to the Community Advisory Committee in March.

Attachments
 Administrative and General Policy D.4 (New Customer Communities)  Request Letter from City of Clearlake
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Adopted: December 3, 2015
Administrative and General Policy D.4
New Customer Communities
Whereas, the Sonoma Clean Power Authority’s (SCPA) purposes include:
• Reducing greenhouse gas emissions related to the use of power in Sonoma County and neighboring regions;
• Providing electric power and other forms of energy to customers at a competitive cost;
• Carrying out programs to reduce energy consumption;
• Stimulating and sustaining the local economy by developing local jobs in renewable energy; and
• Promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources; and
Whereas, creating opportunities for new communities to benefit from community choice aggregation programs may allow SCPA to further progress towards these purposes; and
Whereas, SCPA’s default CleanStart service reduces greenhouse gas emissions when compared to the incumbent utility’s default service; and

Whereas, the addition of new communities to SCPA’s service territory will accelerate progress toward SCPA’s and the State of California’s goals on renewable energy and greenhouse gas reductions;
Therefore, in light of these considerations, it is SCPA’s policy to consider providing electric service in new communities to further SCPA’s goals, consistent with the criteria set forth below.

Applications to serve new communities will be considered if all of the following criteria are met:

1. The community is relatively close to existing SCPA service territory, so that regular meeting attendance and community engagement is practical.

2. The community agrees to abide by the SCPA Joint Powers Agreement, all existing SCPA adopted policies, and any conditions of service proscribed by SCPA’s Board of Directors, and to take all steps required by the Joint Powers Agreement and California law to participate in the SCP program, with governance representation determined by the existing SCPA Board of Directors.

3. The SCPA Board of Directors finds that service to the new region:
a. will decrease greenhouse gas emissions;
b. will not increase costs or financial risks to existing SCP customers; c. will be consistent with SCPA’s purposes of promoting renewable energy, energy efficiency and conservation
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Adopted: December 3, 2015

4. There should be significant political and public alignment of values between existing and proposed participants, so that fundamental conflicts over key underlying issues are less likely. This would be important, for example, in determining the balance of environmental and economic goals.

5. The addition of the new community is likely to increase the voice of SCPA in legislative and regulatory matters at the California Public Utilities Commission, California Energy Commission, California Air Resource Board, the California State Legislature and other relevant venues.

6. The addition of the new community will not harm SCPA’s autonomy over its portfolio of power sources, customer programs, and its ability to serve local, community interests.

7. The addition of the new community will not harm the quality of service to existing SCPA customers and will not give rise to operational risks that could significantly harm SCPA’s existing functions.

An applicant community that initially appears to meet the above criteria may be referred by the SCPA Board of Directors to SCPA staff for a more detailed analysis of the applicability of above criteria, and any other relevant issues, following the New Customer Community Application Procedure set forth below.
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Adopted: December 3, 2015
Sonoma Clean Power
New Customer Community Application Procedure
Step 1 Governing body of applicant community submits letter to SCP requesting consideration for service.

Step 2 Staff evaluates timing of request to determine if internal resources are available to consider request, and to ensure no impact to core agency functions.

Step 3 Staff submits request to SCPA Board of Directors along with staff’s initial opinion, and the Board determines whether a full analysis is warranted. If so, staff sends a letter of
acknowledgement to the applicant region.

Step 4 Staff executes contract with governing body of new community to fund costs of membership analysis and other SCPA costs relating to adding community (e.g., cost of updating
Implementation Plan). These costs would be deducted from program funding that normally would flow to the new territory until startup costs are reimbursed to SCPA’s operating fund. Staff undertakes and completes a full analysis.

Step 5 Results of membership analysis presented to governing body of new community and to SCPA Board of Directors. SCPA Board determines whether providing service to new community is consistent with Policy D-4, whether new community will be offered representation on the Board, and what other conditions will apply to new service.

Step 6 A 60-day period will be provided for SCPA Board members to request a presentation by SCPA staff before their city or town councils or county board of supervisors, and to allow adequate time for city/town and county staff to evaluate the proposed extension of service.

Step 7 SCPA Board of Directors votes on whether to extend a formal offer for service.

Step 8 Governing body of new community approves resolution requesting membership and ordinance authorizing community choice aggregation service through SCPA, and takes any other actions required by the SCPA Board of Directors as a condition of service.

Step 9 SCPA Board of Directors adopts resolution authorizing membership of the additional community, and staff submits updated Implementation Plan to CPUC.
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Adopted: December 3, 2015
Step 10 SCPA Staff develops service plan and schedule, begins buying additional energy, and starts community outreach.
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City of Clearlake
14050 Olympic Drive, Clearlake, California 95422
(707) 994-8201 Fax (707) 995-2653
www.clearlake.ca.us
February 20, 2025
Sonoma Clean Power
PO Box 1030
Santa Rosa, CA 95402
Dear Chair Barnacle,
The City of Clearlake is requesting that Sonoma Clean Power perform a membership analysis to evaluate the feasibility of expanding service to the City of Clearlake. The results of the membership analysis will provide the City Council with the necessary information to consider whether to request participation in Sonoma Clean Power.

Clearlake shares many of the same economic and environmental challenges as Sonoma and Mendocino counties, including increasing energy costs and volatility, wildfires, and infrastructure constraints. We are interested in learning more about the opportunity to directly address these challenges by offering our community an alternative non-profit power provider, increasing access to customer programs, and improving Clearlake’s representation in energy-related advocacy. The City of Clearlake could in turn provide Sonoma Clean Power an expanded customer base, increased opportunities for electrification, and local investment opportunities.

The City of Clearlake has reviewed Sonoma Clean Power’s Administrative and General Policy D.4 of New Customer Communities and acknowledges that the decision to expand service will be dependent on mutual approval of the City of Clearlake and the Sonoma Clean Power Board of Directors after review of the membership analysis. The City of Clearlake also acknowledges the policy’s determination that costs associated with conducting the membership analysis will be borne by Sonoma Clean Power but reimbursed through temporary deductions to program funding should the expansion proceed.

Sincerely,
Alan Flora
City Manager
City of Clearlake
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Staff Report – Item 06
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: March 6, 2025
Requested Action
Receive legislative and regulatory updates, approve legislative positions, and provide feedback as appropriate.

Regulatory Updates
California Public Utilities Commission Approves Portfolio of Expected Resources for Transmission Study
On February 20, 2025, the California Public Utilities Commission (CPUC) approved a portfolio of expected future resources for the California Independent System Operator (CAISO) to study in its 2025-2026 Transmission Planning Process. The decision directs the CAISO to reserve deliverability on the transmission system for specific resources that are needed to meet future climate and reliability goals yet are geographically limited and take longer to develop. The portfolio is designed to achieve a greenhouse gas (GHG) emissions target for the electricity sector of 25 million metric tons (MMT) by 2035. It includes the resources contained in the individual integrated resource plans submitted to the Commission by the load serving entities (LSEs) in November 2022. The portfolio includes geothermal, biomass, offshore wind, non-battery long duration energy storage, and both onshore and offshore wind resources. If developed as planned, it would provide 99 percent clean energy by 2035, with approximately 63 gigawatts of new storage and clean energy needed to come online between now and 2035. It represents the CPUC’s best 49 of 83
estimate of the most effective portfolio based on assumptions about resource costs, energy imports, and transmission constraints.

The CAISO will now begin studying that additional transmission investments are necessary to begin developing to support the development of this portfolio. This iterative process will continue annually, with planning assumptions updated to reflect procurement by load serving entities, emerging transmission constraints, new forecasts of future resources costs, etc.

Legislative Updates
Sonoma Clean Power is sponsoring several bills in the California Legislature this year, in partnership with Fervo Energy, the International Union of Operating Engineers, and others: Assembly Bills 526 (Papan), 527 (Papan), and 531 (Rogers). The bills are currently waiting for referrals to committee. SCP staff have begun engagement with a wide variety of stakeholders and potential supporters and opponents.

In addition, the SCP team will be conducting outreach and education efforts on those bills, as well as CCA, geothermal, and transmission issues generally, over the course of two “lobby days:” March 4 and March 11. The team will meet with key legislators and staff, including the chairs of relevant committees. 50 of 83
Staff Report – Item 07
To: Sonoma Clean Power Authority Board of Directors
From: Sean Dalton, Events Manager
Kate Kelly, Director of Public Relations and Marketing
Issue: Receive an Update on Events and Community Engagement Efforts Date: March 6, 2025
Recommendation
Receive a presentation on the summary of Sonoma Clean Power Authority’s events and community engagement efforts for 2024.

Background
Sonoma Clean Power Authority engages with the communities we serve through many channels including events at our Customer Center, participating in external community events, volunteering in the community, and serving on various boards.

This report serves as an update for the community engagement efforts for 2024.

Attachments
 Attachment 1 – Community Engagement PowerPoint Presentation 51 of 83
2/27/2025
1 • hours staff engaged with the community in 2024
• customers engaged by SCP staff in 2024 at events
• customers attended events at the Customer Center • customers engaged at community events 1 2
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2/27/2025
2 • Events in 2024
• Community Events Attended
⚬ Sonoma County
⚬ Mendocino County
• Events hosted at the customer center
Events in and formats
• Events with attendees
• Field trips with students
• Unique workshop topics including: ⚬ Induction Cooking ⚬ Trades/Professional Trainings ⚬ Clean Energy Transition ⚬ Customer Education and more
3 4
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2/27/2025
3 • Staff volunteer hours ⚬ Redwood Empire Food Bank ⚬ Adopt A Road ⚬ Food for Thought • Organizational memberships ⚬ Chambers of Commerce ⚬ Community Organizations
• Staff members on over boards and committees ⚬ Educational foundations ⚬ Advisory boards ⚬ Training and pathway program boards • Balanced event strategy between customer center and offsite community engagement • Strong regional presence across both counties • Diverse programming and educational offerings
• Significant community support through volunteering and giving 5 6
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2/27/2025
4 7
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Staff Report – Item 08
To: Sonoma Clean Power Authority Board of Directors
From: Sean Dalton, Events Manager
Kate Kelly, Director of Public Relations and Marketing
Issue: Receive an Update on Educational Partnerships and Youth Workforce Development Efforts
Date: March 6, 2025
Recommendation
Receive a presentation on the summary of Sonoma Clean Power Authority’s educational partnerships, and youth workforce development efforts.

Background
Sonoma Clean Power Authority engages with several organizations in a variety of capacities to support local environmental and STEM education, as well as career technical education, financial assistance, and youth workforce development.

Attachments
 Attachment 1 – Summary of all education, workforce development, and financial assistance efforts
 Attachment 2 – Education & Youth Workforce Development PowerPoint Presentation
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Summary of SCP Youth Education & Youth Workforce
Development Efforts
Effort Age Group Category
Sonoma Water ZunZun Academy
Program
Elementary School STEM, Environment
Sonoma Water Energy & Water
Classroom Education Program
Elementary School,
Middle School, High
School
STEM, Environment
Sonoma Water Climate Action Field
Trips
High School STEM, Environment
CTE Foundation Switch Labs
Partnership
Middle School, High
School
STEM, CTE, Workforce
Development
Mike Hauser Academy High School STEM
The Duck Curve Challenge High School STEM
LIME Foundation NextGen Trades
Academy Partnership
Young Adult (16 – 24) CTE, Workforce
Development
Sonoma Clean Power Internship
Program
Recent High School
Graduates, College-Age
Workforce Development
Scholarships (Mendocino College,
SRJC, and SSU)
College Financial Assistance,
Workforce Development
Executive Summary
Throughout the 2023-2024 academic year, Sonoma Clean Power (SCP) made significant strides in supporting education and workforce development initiatives across Sonoma and Mendocino counties. Through strategic partnerships and programs, SCP reached over 17,000 K-12 students with environmental education during this school year alone. SCP also provided vocational training and job placement assistance to over 60 young adults and awarded $11,000 in scholarships to college students. SCP's internship program has evolved into a comprehensive, three-phase model that has launched 26 interns into careers in the energy sector to date. Additionally, over the course of 2023 and 2024, SCP hosted training workshops for over 300 local contractors at its Customer Center, educating professionals on electrification and energy efficiency. These efforts, combined with staff leadership on relevant boards and committees, demonstrate SCP's unwavering commitment to building a skilled, sustainable workforce and fostering environmental stewardship in our communities.

Sonoma Water: Water and Energy Education Program
The Water and Energy Education Program, now in its sixth year, is a partnership between SCP and Sonoma Water that enhances environmental awareness and stewardship in Sonoma, and 58 of 83
Mendocino counties by providing free classroom visits, field trips, contests, grants, teacher workshops, and supplies to schools, fostering scientific inquiry and hands-on learning. During the 2023-2024 academic year, Sonoma Water educators reached 5,922 students in 250 classrooms and facilitated 18 field trips where 463 students participated in the Climate Action Challenge at SCP’s Customer Center. The program expanded its reach through a new Pathways Program (a collaboration with other environmental education providers in Sonoma County), registering 9 new underserved schools. Additionally, the ZunZun musical assembly, which promotes conservation and renewable energy, reached 11,445 Kindergarten-6th grade students, including 21 sessions conducted in Spanish. The small grants program “A Call to Action” supported 11 stewardship projects for $8,964 in funding, including one that helped Summerfield Waldorf School convert a gas-powered tractor to all-electric. 13 teachers participated in The Climate Resilience in the North Bay teacher workshop, and over 65,000 items of school supplies promoting clean energy and conservation were distributed through the school supplies program.

In Mendocino County, the program provided climate lessons to 101 students and educators who participated in the Mendocino County Office of Education (MCOE) STEAM Fair, offering hands-on activities with wind and solar energy. Looking ahead to the 2024-2025 school year, the focus will shift from the 4th-grade program to expand the popular 3rd grade and middle school programs, continuing the high-quality youth outreach that has received enthusiastic support from educators.

Mike Hauser Academy
Sonoma Clean Power serves as a host business for the Mike Hauser Academy, an award-winning program that collaborates with the Chambers of Commerce in Santa Rosa, Healdsburg, Rohnert Park, and Sebastopol. This three-week summer program is designed for incoming 9th-grade English Language Learner (ELL) students and those who could use extra help with math and science. It gives students the chance to visit local STEM-focused companies, where they can interact with industry professionals and take part in hands-on activities. Through this experience, students see firsthand how the lessons they learn in school apply to STEM careers. The Mike Hauser Academy provides them with real-world applications for STEM education. Each summer Sonoma Clean Power hosts two classes of 15-20 8th and 9th grade students for 2 days of hands-on activities, classroom lessons, and presentations culminating in a career panel with SCP staff.

CTE Foundation: Switch EV Program
The Career Technical Education (CTE) Foundation of Sonoma County is a partnership focused on providing hands-on, work-based learning opportunities to local students. According to surveys administered by YouthTruth, Santa Rosa City Schools cited an increase in graduation rates from 88.6% to 91.3% for students who completed one CTE class, with a further jump to 59 of 83

96.9% for those who completed a two-sequence CTE pathway. Support from Sonoma Clean Power has primarily gone to the purchase, maintenance, and teacher training necessary to operate the Switch EV program which is currently operating in 9 local high schools and 1 middle school. CTE also used funding from SCP to support their Tinker Academy, a free STEM-focused summer camp for middle school students in Sonoma County. 48 6th-9th graders participated with 65% attendance by female students. Students were surveyed, and results showed that most left the program with a higher interest in STEM subjects, especially engineering, and an interest in how things are made. You can find a writeup about the Tinker Academy in the Press Democrat: Sonoma County middle schoolers show off STEM skills from Tinker Academy summer program.

Data shows that students with access to work-based learning are less anxious and feel more prepared for life after high school, whether it be joining the workforce, attending a tech/trades program or going to a four-year college. Another program that CTE supports for students is the New School Model currently implemented at Casa Grande High School and Ridgway High School. Both schools offer an elective for seniors that provides financial literacy, resume building, interviewing skills, and takes the student to different local employers to learn about them. The students that complete the class, with help from CTE and local employers, are offered gap year internships. In June 2024, SCP hired two fantastic interns that graduated from this program. They will spend their year working with different departments at SCP.

LIME Foundation: NextGen Trades Academy
Sonoma Clean Power is proud to support the LIME Foundation’s NextGen Trades Academy, a youth workforce development program in the North Bay focused on helping students aged 16-24 from low-income and disadvantaged communities find careers in the trades. Letitia Hanke and her team operate a holistic program that combines workforce training, resume writing/interviewing skills workshops, financial literacy, nutrition education, and job placement in 24 different vocational trades. Each cohort of students receives 3 weeks of instruction and graduates receive 18 months of support from the LIME foundation while they look for work in their chosen trade.

From July 2023 to June 2024, the program successfully conducted five training cohorts in Sonoma County, enrolling 61 students, of which 52 graduated (85%). Notably, 86% of students identified as Black, Indigenous, and People of Color (BIPOC), including 18% female students and 92% from low to moderate-income backgrounds. These efforts have significantly enhanced career readiness among students, with many aspiring to careers in construction, HVAC and sustainable energy. The program's impact extended beyond classroom training. SCP facilitated several tours at the SCP Customer Center, providing firsthand exposure to home electrification technologies. Additionally, a career panel focused on climate and construction was hosted at the Customer Center in May 2024. Based on 60 of 83
follow up surveys, as of the end of 2023, 81% of work-eligible NextGen Trades Academy graduates have been placed in full-time work in the trades.

Sonoma Clean Power Internship Program
SCP has consistently embraced internships, integrating interns into our business operations since our inception. To date 26 interns have been hired by Sonoma Clean Power, with many going on to take jobs with various companies and other California CCA’s including Calpine Energy Solutions, Peninsula Clean Energy, Silicon Valley Clean Energy, Tesla, the City of Napa, San Diego Clean Energy, and several have been hired as full-time staff at SCP.

As the agency has grown, so has the scope of opportunities we offer. What started primarily as a work experience program has evolved into a structured, three-phase model that emphasizes valuable learning experiences and professional development. Initially focused on students in Environmental Studies and Energy Management and Design, the program has since broadened to include a variety of majors and now partners with the Career Technical Education (CTE) Foundation to offer internships to newly graduated high school students, expanding our reach and impact.

The program's three-phase structure provides a well-rounded experience for interns. Phase I begins with a comprehensive onboarding and training process that introduces interns to SCP’s culture, policies, and operations while equipping them with the skills needed to succeed, particularly at the Customer Center. When the interns are based at the Customer Center, they focus on developing customer service skills through in-person interactions, phone calls, and email communication. They gain hands-on experience with new technologies, learning how to explain these to customers and offer energy-saving solutions.

Additionally, interns assist with event planning and execution at the Customer Center, while gaining a comprehensive understanding of working in a professional business environment.

In Phase II, interns apply their knowledge to real-world projects, such as analyzing energy usage data, allowing them to directly contribute to SCP’s goals while gaining valuable hands-on experience. In Phase III, the focus shifts to career readiness, where interns explore different departments, attend team meetings, and participate in networking events to broaden their professional skills and knowledge. This phased approach is supported by dedicated mentors throughout all phases, offering feedback, guidance, and support, ensuring that interns not only grow professionally but also develop personally in preparation for their future careers.

Scholarships
Sonoma Clean Power is dedicated to sustainable and clean energy solutions with a focus on local economic and environmental benefits. To advance education in renewable energy and the building trades, SCP has set up scholarship programs at Mendocino College, Sonoma State University, and the Santa Rosa Junior College. These initiatives underscore SCP’s commitment to fostering careers in the STEM and building trades, offering deserving 61 of 83
students the chance to receive a scholarship based on academic achievement, community involvement, demonstrated financial need, and a genuine interest in STEM and building trades careers. Through this program, one $1500 scholarship is awarded to a student at Mendocino College each year, with three $1500 scholarships being awarded at the SRJC, and one $5000 scholarship awarded at SSU. These scholarships, totaling $11,000 a year are targeted at approximately one year’s tuition for each of the 5 recipients. They are permanently funded through endowments at each institution, requiring no further SCP budget for continued support.

Contractor Training
Sonoma Clean Power has made the Customer Center available as a popular venue for local contractors to attend workshops, training, and certification courses. Over the last 2 years, the Customer Center has seen over 300 local professionals attend classes on topics including home electrification, architectural design and energy efficiency, current rebates and incentives available, and the value of efficient electric homes in the housing market. Through working with organizations such as the Architects Institute of America Redwood Empire chapter, FlowTech, the National Association of Realtors, Electrify my Home, Mitsubishi and many others, Sonoma Clean Power continues to deliver a consistent message to our community, both customers and professionals, about the importance of fighting climate change through reducing our reliance on gas in our homes and transportation.

Serving of Boards of Directors
Many Sonoma Clean Power staff members serve on boards of committees or serve in other ways for various educational and workforce development focused organizations within our communities. A non-exhaustive list includes:
- Mike Koszalka: Made in Santa Rosa Education Foundation - Kate Kelly: The Zones
- Erica Torgerson: Career Technical Education Foundation - Neal Reardon: Petaluma Education Foundation
- Beau Anderson: SunRidge Educational Foundation
- Carolyn Glanton: Construction Specifications Institute - Sean Dalton: Santa Rosa High School Construction Pathway Advisory Board - Kimberly Beltran: SRJC HVACR Advisory Committee & SRHS Construction Pathway Advisory Board
- Tania Gibbons: Children’s Museum of Sonoma County
- Monica Arroyo: Young Professionals Network
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Staff Report – Item 09
To: Sonoma Clean Power Authority Board of Directors
From: Kate Kelly, Director of Public Relations and Marketing April Varellas, Brand Manager
Issue: Receive 2024 Annual Report
Date: March 6, 2025
No written materials for this report. A presentation will be given at the meeting. 69 of 83
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Staff Report – Item 10
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Issue: Discussion of Local Investment Opportunities for Reducing Ratepayer Costs Over Time
Date: March 6, 2025
Recommendation
Receive a presentation about potential local investment opportunities that further SCP’s mission and have the potential to lower ratepayer costs over the long term.

Form an ad hoc committee to work with staff to develop specific proposals for the Board to consider in the future.

Background
On November 2, 2023, the SCP Board of Directors formed a Local Investment Fund with the purpose of supporting the agency’s goals relating to lowering energy costs, cutting greenhouse gas emissions and investing in our local economy. Today, the fund has a balance of $12.8 million and is expected to grow to about $17.8 million by the end of 2025. Following the formation of the Fund, SCP created a Capital Projects & Engineering department to begin developing and owning energy assets like solar power and battery systems, with a long-term goal of establishing strong asset management capabilities like municipal utilities.

Just in the last Board meeting, the Board adopted a policy to enable bidding to acquire land after consulting with the Chair, Vice Chair and the Director representing the land parcel when the purpose of buying the land is to develop energy and storage resources and the price is under a specific limit. This policy was prompted by the fact that some of the best opportunity sites for constructing energy resources – such as heavily polluted sites – are sold in short-term auctions. 71 of 83
Discussion
To date the Board has mainly discussed investments of solar and battery systems installed on rooftops or on dedicated land. However, there are many potential investment opportunities, and staff wish to share several possibilities in this item, with one being highlighted in additional depth. In the future, staff will bring details on additional opportunities to future meetings and hope to work with an ad hoc committee of the Board to develop specific proposals for the Board.

Some of the potential investment opportunities staff have identified include:

1. Dual-use solar and livestock grazing. Mounting solar on structures that allow sheep or cattle to graze around and under the solar panels is one method of sharing land that has potential advantages over single-use land-mounted solar power.

2. Single-use solar and battery installations on heavily impacted sites. Land that is heavily polluted, covered landfills, abandoned airports, quarries, warehouse rooftops, parking lot canopies and similar types of locations can sometimes accommodate solar panels and batteries without creating new environmental impacts.

3. Market rate loans to high-value local public benefit investments that otherwise further SCP’s mission. Enabling widespread automated demand response in all areas is a goal of SCP and the California Energy Commission. To achieve this, broadband internet would need to be extended to rural parts of Sonoma and Mendocino Counties. Conceptually, if a solid business plan were developed to establish sufficient revenues to justify a loan, this could become an investment opportunity for SCP in the future. Additional requirements could be included to facilitate SCP customer programs or other SCP benefits as well.

4. Market rate loans or building leases to local non-profit organizations that otherwise further SCP’s mission. Today, the Board will hear more about one conceptual opportunity that staff would like to learn more about and explore further with an ad hoc committee. See the attachment for some initial details about a proposed Economic Development Hub focused on many of the customers that SCP traditionally has a hard time reaching. Conceptually, a loan or lease to such a collection of community groups could be paired with SCP having priority access to communication with members of those groups while earning proceeds to lower costs for all ratepayers.
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Fiscal Impact
There isn’t enough detail in any proposal yet to report on potential future fiscal impacts, but the goal is clear that any local investments should advance SCP’s mission AND produce revenues that offset rates for all customers.

Community Advisory Committee Review
This item came to the Board first but will be brought to the Community Advisory Committee as draft proposals are developed.

Attachments
 Attachment 1 – Letter on Economic Development Hub
 Attachment 2 – Letter of Support from the Economic Development Collaborative
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Nexo Media Inc.
2455 Bennett Valley RD Suite B314
Santa Rosa Ca 95403
February 15, 2025
Geof Syphers, CEO
Sonoma Clean Power
741 4th Street
Santa Rosa, CA 95404
Subject: Proposal for a Diverse Economic Development Hub in Santa Rosa, California
Dear Mr. Syphers,
I am writing to propose the establishment of a Diverse Economic Development Hub (DEDH) in Santa Rosa, California, modeled after successful initiatives in the San Francisco Bay Area. Given the city's growing diversity and economic potential, a structured hub would serve as a catalyst for inclusive economic growth, particularly for underrepresented communities, women, and minority entrepreneurs.

Why Santa Rosa Needs a Diverse Economic Development Hub Santa Rosa is home to a diverse population, with over 32% Hispanic/Latino residents and a rapidly expanding immigrant community. However, economic disparities persist:
• Median household income for Latinx households is $61,000, compared to $92,000 for white households (U.S. Census Bureau).
• Unemployment rates are higher among minority groups in Santa Rosa, particularly within Black and Latinx communities.
• The city faces a shortage of accessible small business resources, particularly for BIPOC entrepreneurs and low-income individuals.

A Diverse Economic Development Hub will address these challenges by providing tailored resources, mentorship, and training programs that support the success of entrepreneurs and small business owners in our region.

Key Components of the Proposed Hub
Inspired by successful models such as the Bay Area Equity Atlas, Greenlining Institute, and the Bay Area Council Economic Institute, our proposed Santa Rosa DEDH will include:

1. Business Incubation & Acceleration:
o Dedicated co-working spaces for entrepreneurs.
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o Small business loan assistance and grant access.
o Training in business operations, marketing, and legal compliance.

2. Workforce Development & Job Training:
o Vocational training in high-growth industries such as clean energy, tech, and healthcare.
o Partnerships with local colleges for skill-building and apprenticeship programs.

3. Cultural and Creative Industry Support:
o A dedicated Arts and Creative Tech Center similar to BAYCAT in Bayview-Hunters Point, which provides training in multimedia production, storytelling, and creative digital industries. o Support for women and gender-diverse individuals in media and sound production, modeled after Women’s Audio Mission (WAM).

4. Tech and Innovation Hub:
o STEM and coding education programs modeled after Gameheads, which empowers youth of color with skills in video game development and software engineering.
o AI and data science training to increase participation in future industries.

5. Affordable Small Business Spaces & Market Access:
o Creation of a small business marketplace similar to Calle 24 Latino Cultural District, ensuring minority-owned businesses have space and visibility.
o Flexible rental opportunities for startups and micro-businesses.

6. Community Development & Financial Inclusion:
o Partnership with Greenlining Institute to advocate for community reinvestment and financial literacy programs.
o Affordable housing integration to prevent displacement and support economic stability.

7. Bringing BIPOC and LGBTQ+ Organizations Under One Roof:
o The core goal of this initiative is to create a shared space where BIPOC and LGBTQ+ organizations can collaborate and thrive.
o Invitations have already been sent to various organizations, and the response has been overwhelmingly positive, indicating strong interest in this initiative.
o This integration will foster community-led solutions, cross-sector collaboration, and inclusive economic growth under a unified framework.

8. Formation of Red LatinX The Hub and Partnership with Hispanic Chamber of Commerce of Sonoma County:
o Red LatinX The Hub, a non-profit focused on education and access to resources for our BIPOC community, was founded by Hugo Mata and myself.
o Red LatinX has now successfully merged with the Hispanic Chamber of Commerce of Sonoma County, and I am currently serving as the Executive Director of the Chamber.
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o This partnership has significantly expanded opportunities for minority entrepreneurs and small business owners, providing greater access to business education, networking, and financial resources. o Additionally, the Chamber has adapted Latinas Emprendedoras (Latina Entrepreneurs), a powerful women’s group, as a dedicated committee under its leadership. This group continues to empower and support Latina entrepreneurs, offering mentorship, training, and funding opportunities.

Economic Impact and Benefits
Developing a hub of this nature in Santa Rosa is not just a moral imperative—it’s an economic one. Studies show that investing in diverse businesses leads to higher economic output and job creation:
• The Brookings Institution found that increasing minority business ownership could add $290 billion to the U.S. GDP annually.
• The Bay Area Council Economic Institute reports that businesses focusing on diversity outperform competitors by 35% in profitability and foster greater innovation.
• Cities that embrace inclusive economic strategies experience faster economic growth and lower unemployment rates.

Santa Rosa has the opportunity to be a leader in equitable economic development by implementing a hub that fosters entrepreneurship, uplifts underrepresented communities and strengthens the local economy. I urge your office to support this initiative by allocating resources, securing funding, and establishing strategic partnerships to make this vision a reality.

I welcome the opportunity to discuss this proposal further and explore the next steps toward implementation. Please feel free to contact me at your earliest convenience.

Thank you for your time and consideration.

Sincerely,
Hector Velazquez
Executive Director, Hispanic Chamber of Commerce of Sonoma County Nexo Media Inc
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Board of Directors
Kathryn Philip, Chair | Skip Brand | Wayne Leach | Linda Kachiu Regina Mahiri | Richard Marzo | Jordan Kivelstadt | Nick Schwanz | Ethan Brown, Executive Director
sonomaedc.org
141 Stony Circle, Ste 110
Santa Rosa, CA 95401
(707) 565-7170
January 24, 2025
To Whom It May Concern,
On behalf of the Sonoma County Economic Development Collaborative, I am writing to express our full support for Red Latinx and their mission to empower diverse communities through economic development, entrepreneurship, and community engagement. Red Latinx has demonstrated an unwavering commitment to fostering collaboration, inclusivity, and opportunity, and we are proud to endorse their ef forts.

As a government agency focused on growing a healthy economy by helping our businesses in Sonoma County, we recognize the vital role that organizations like Red Latinx play in addressing the unique challenges faced by multicultural communities. By providing a robust digital platform and physical shared spaces, Red Latinx is breaking down barriers and creating access to invaluable resources for entrepreneurs, professionals, and community organizations.

Red Latinx’s initiatives—including professional networking, workforce development programs, and support for underrepresented business owners—align closely with our agency’s mission to promote equitable economic growth and development. Their inclusive approach, which actively engages Asian communities, Black Chambers of Commerce, and other diverse stakeholders, is a model for fostering innovation and economic empowerment.

In particular, Red Latinx’s proposal to establish a shared physical space at an accessible monthly lease of $1000 per organization is a transformative step toward enabling resource-sharing and collaboration among community-focused groups. This initiative will provide entrepreneurs with access to vital services such as:
• Private and shared of fice spaces
• Meeting and event rooms
• High-speed internet and essential of fice equipment
• Administrative support and reception services
• A professional business address
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Board of Directors
Kathryn Philip, Chair | Skip Brand | Wayne Leach | Linda Kachiu Regina Mahiri | Richard Marzo | Jordan Kivelstadt | Nick Schwanz | Ethan Brown, Executive Director
sonomaedc.org
141 Stony Circle, Ste 110
Santa Rosa, CA 95401
(707) 565-7170
Our agency is committed to supporting the success of Red Latinx through program collaboration and promotional ef forts that support entrepreneurs and existing business owners f rom all background and industries. We believe that investing in the programs and initiatives spearheaded by Red Latinx will yield significant benefits not only for underserved communities but also for the broader economic landscape.

We strongly encourage other partners, organizations, and stakeholders to join us in supporting Red Latinx. Together, we can amplify their impact and help build a more inclusive and prosperous society.

If you have any questions or require further information, please do not hesitate to contact me at [email protected] or (707) 565-7298.

Sincerely,
Lauren Cartwright, MBA
Director of Business Services & Research
Sonoma County Economic Development Collaborative
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Staff Report – Item 11
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: Approve the Proposed Budget Adjustments for Fiscal Year 2024-2025 Date: March 6, 2025
Recommendation
Approve the proposed budget adjustments to the Fiscal Year 2024-2025 Budget as detailed in Attachment 1 of this report.

Background
SCP commonly brings a mid-year budget adjustment to the Board to account for changes in energy prices, actual customer energy usage, customer participation rates, bank interest rates, and regulatory decisions relating to the Power Charge Indifference Adjustment (PCIA) and utility retail rates. The current Sonoma Clean Power Authority budget for July 2024 through June 2025 was adopted on May 2, 2024.

When SCP updated rates in August 2024, a large increase in the PCIA was projected for 2025. This resulted in a further increase in SCP’s reserve balance in 2024 that was expected to be necessary to maintain SCP customer savings vs. PG&E in 2025.

When PG&E ultimately updated the PCIA as well as their generation and delivery rates on January 1, 2025, there was not a significant change to the PCIA. This was a result of the high cost of resource adequacy and renewable energy offsetting the relatively low market cost of energy.

SCP generation rates were then updated February 1, 2025, so that SCP customer total electric bills have a target of 7% below PG&E’s bundled service total electric bills. 79 of 83
Discussion
The proposed budget adjustments are shown in Attachment 1. The budget categories are intentionally general enough to allow some measure of staff discretion, without requiring frequent budget adjustments. Additional detail on the most significant changes is provided here:

Revenues
SCP was able to increase total electric bill savings for customers from a target of 3% up to a target of 7% on February 1, 2025. The proposed Electricity Sales adjustment reflects the rate setting that the Board approved on December 5, 2024.

Investment Returns are projected to be significantly higher than the original budget due to high interest rates that have persisted and Staff’s efforts to capture those higher interest rates throughout the fiscal year.

Cost of Energy
Year-to-date, Cost of Energy inclusive of energy cost, resource adequacy (RA) renewable portfolio credits, etc., has been under budget by 11%. This was primarily due to the lack of a severe weather event between July 2024 and December 2024 that was assumed in the original budget. Cost of Energy is currently expected to be 17% below the original budget for the total fiscal year based on 1) the latest projections of lower market prices, and 2) evolving changes to the regulatory regime affecting resource adequacy allocations which allowed SCP to recognize and account for RA more efficiently during the year. These allocations have resulted in the ability to sell excess RA on the market which had the effect of reducing the net cost of RA relative to the original budget.

Data Management
The Data Management adjustment represents transition costs related to changing service providers.

Capital Outlay
The adjustment to Capital Outlay is a result of updated timing for upgrades to the office building adjacent to SCP’s Business Office as well as SCP’s Customer Center. 80 of 83
Community Advisory Committee Review
The Sonoma Clean Power Community Advisory Committee (Committee) reviewed the proposed budget adjustments at their February 20, 2025, meeting and unanimously voted to recommend the Board approve the adjustments.

Fiscal Impact
These budget adjustments reflect a net increase in fund balance of $56,458,000 for the fiscal year 2024-2025, up $62,764,000 from the original budget of -$6,306,000.

Attachments
 Attachment 1 – FY24-25 Budget Adjustment Table
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Table 1
Approved Proposed Revised
Budget Adjustment Budget
FY24-25 FY24-25 FY24-25 Comments

REVENUES & OTHER SOURCES
Electricity Sales (net of allowance) $ 239,147,000 $ 18,854,000 $ 258,001,000 SCP customer target savings of approximately 7% vs. PG&E on total electric bill EverGreen Premium (net of allowance) 2,700,000 - 2,700,000 Investment Returns 7,200,000 6,653,000 13,853,000 Interest rates have remained high Miscellaneous Income 1,000,000 - 1,000,000
Total Revenues 250,047,000 25,507,000 275,554,000

EXPENDITURES
Product
Cost of Energy & Scheduling 221,586,000 (37,597,000) 183,989,000 Updated outlook for market price of energy Data Management 2,680,000 990,000 3,670,000 Transition costs associated with changing service providers Service Fees to PG&E 990,000 - 990,000
Product Subtotal 225,256,000 (36,607,000) 188,649,000
Personnel 11,490,000 - 11,490,000
Energy Center, Mktg & Comm 3,379,000 - 3,379,000
Customer Service 220,000 - 220,000
General & Administration 1,832,000 - 1,832,000
Other Professional Services
Legal 475,000 - 475,000
Regulatory & Compliance 460,000 - 460,000
Accounting 312,000 - 312,000
Legislative 220,000 - 220,000
Other Consultants 535,000 - 535,000
Other Professional Services Subtotal 2,002,000 - 2,002,000 82 of 83
Table 1
Approved Proposed Revised
Budget Adjustment Budget
FY24-25 FY24-25 FY24-25 Comments
EXPENDITURES – continued
Industry Memberships & Dues 888,000 - 888,000
Program Implementation 10,136,000 - 10,136,000
Total Expenditures 255,203,000 (36,607,000) 218,596,000 Revenues Less Expenditures (5,156,000) 62,114,000 56,958,000

OTHER USES
Capital Outlay 1,150,000 (650,000) 500,000 Revised timing for upgrades to office building purchased in FY23-24 Total Expenditures, Other Uses 256,353,000 (37,257,000) 219,096,000 Net Increase/(Decrease) in Fund Balance $ (6,306,000) $ 62,764,000 $ 56,458,000 83 of 83