Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Silicon Valley Clean Energy
Executive Committee Meeting
Friday, February 25, 2022
10:00 am
Teleconference Meeting
Webinar:
https://svcleanenergy-org.zoom.us/j/85752166876
Or by Telephone (Audio only):
US: +1 669 219 2599
Webinar ID: 857 5216 6876
This meeting will be conducted in accordance with California Government Code Section 54953(e), in consideration of the Coronavirus (COVID-19). All members of the Silicon Valley Clean Energy Executive Committee and staff will participate in this meeting by teleconference.
Members of the public may observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting to Board Clerk Andrea Pizano at [email protected] and will be read within the public comment period or the applicable agenda item. The public will also have an opportunity to provide comments during the meeting. Members of the public using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.
The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.
AGENDA
Call to Order
Roll Call
Public Comment on Matters Not Listed on the Agenda
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Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
Consent Calendar (Action)
1) Approve Minutes of the January 28, 2022, Executive Committee Meeting Regular Calendar
2) CEO Report (Discussion)
3) “Doubling Down” on Decarbonization Programs (Discussion) 4) Update on New Construction Reach Codes and Existing Building Electrification Policies (Discussion)
5) Request Recommendation to the SVCE Board of Directors on How to Allocate $3 million in Customer Relief (Action)
6) Recommend the SVCE Board of Directors Delegate Authority to the Chief Executive Officer to Amend Existing Renewable Resources Power Purchase Agreements (PPAs) and Energy Storage Service Agreements (ESSAs) As Exigent Circumstances Arise Consistent with Policies and Financial Parameters Initially Established in the Approval of the PPAs and ESSAs (Action)
Committee/Staff Remarks
Adjourn
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Silicon Valley Clean Energy
Executive Committee Meeting
Friday, January 28, 2022
12:00 p.m.
Pursuant to State of California Gov’t Code Section 54953 (e) the meeting was conducted via teleconference.
DRAFT MINUTES
Call to Order
Chair Gibbons called the meeting to order at 12:03 p.m.
Roll Call
Present:
Chair Liz Gibbons, City of Campbell
Vice Chair George Tyson, Town of Los Altos Hills
Director Neysa Fligor, City of Los Altos
Director Javed Ellahie, City of Monte Sereno
Director Yvonne Martinez Beltran, City of Morgan Hill
Absent:
None.
All present committee members participated via teleconference.
Public Comment on Matters Not Listed on the Agenda
Bruce Karney commented he received an email from the property manager of Sunshine Gardens Apartments with a question on retrofitting apartment buildings with EV chargers. Karney summarized the property manager’s concern of perceived limitations various EV charger grant programs have. Karney commented the example was an almost perfect case study of someone who wants to do the right thing, but can’t quite figure out the restrictions in place. Karney encouraged CEO Balachandran to request staff reach back out to the property manager.
On behalf of the committee, Chair Gibbons requested staff reach out to the property manager at Sunshine Gardens Apartments.
Consent Calendar
MOTION: Vice Chair Tyson moved and Director Martinez Beltran seconded the motion to approve the Consent Calendar.
Chair Gibbons opened public comment.
No speakers.
Chair Gibbons closed public comment.
Item 1 Draft Minutes of the 1/28/22 Executive Committee Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
The motion carried unanimously by verbal roll call vote. 1) Approve Minutes of the November 17, 2021, Executive Committee Meeting Regular Calendar
2) CEO Update (Discussion)
CEO Girish Balachandran provided a report which included upcoming items for the February and March board meeting agendas. These included: a PG&E rate update, a California Community Power (CC Power) long-duration storage contract, SVCE’s mid-year budget, the Double Down on Decarbonization Programs budget, and a requested amendment to the authority on Commercial and Industrial customer special contracts.
CEO Balachandran addressed SVCE’s opinion on Net Energy Metering (NEM) 3.0, and provided a personnel update.
Monica Padilla, Director of Power Resources, provided a verbal update on the status of SVCE’s first newly constructed solar plus storage contract. Chair Gibbons commended CEO Balachandran and Director of Power Resources Padilla for their work on the CC Power long-duration storage contract.
Director Fligor requested staff resend the newsletter addressing SVCE’s opinion on NEM 3.0; the committee discussed NEM 3.0 in more detail.
Director Martinez Beltran expressed interest in an offline conversation with staff for more information on NEM
3.0. Director Ellahie inquired of incentives offered for solar plus storage; CEO Balachandran noted he would get back to Dir. Ellahie with more information.
Chair Gibbons opened public comment.
Bruce Karney commented on the solar lease introduced 14 years ago while he was working for Solar City, and encouraged committee members to think differently about people who live in apartments versus people who are low income but live in single family homes because the obstacles are different. Karney commented his belief that if what is proposed for NEM 3.0 passes, he would anticipate the rate of solar adoption would fall, and noted he hopes they soften the NEM 3.0 proposal.
Chair Gibbons closed public comment.
3) Elect Chair and Vice Chair of the 2022 SVCE Executive Committee (Action) Board Clerk Andrea Pizano introduced the item; Chair Gibbons provided additional comments on the roles of Chair and Vice Chair.
MOTION: Director Ellahie moved and Director Fligor seconded the motion to nominate Director George Tyson to serve as the 2022 Chair of the SVCE Executive Committee.
Chair Gibbons opened public comment.
No speakers.
Chair Gibbons closed public comment.
Item 1 Draft Minutes of the 1/28/22 Executive Committee Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
The motion carried unanimously by verbal roll call vote.
Following the selection of Chair, newly selected Chair Tyson presided over the remainder of the meeting.
Chair Tyson thanked Director Gibbons for her time as Chair and thanked the Executive Committee members for their support.
Chair Tyson opened the floor for nominations for Vice Chair of the Executive Committee.
MOTION: Director Gibbons moved and Director Martinez Beltran seconded the motion to nominate Director Neysa Fligor to serve as the 2022 Vice Chair of the Executive Committee.
The motion carried unanimously by verbal roll call vote.
Newly selected Vice Chair Fligor thanked the Executive Committee members for their support. 4) Select a Regular Meeting Schedule for 2022 Executive Committee Meetings (Action) Board Clerk Pizano introduced the item and presented potential meeting times based on member availability identified by a previously distributed poll. Executive Committee members shared their preference of meeting days and times.
MOTION: Director Gibbons moved and Director Ellahie seconded the motion to approve the 2022 Executive Committee Meeting regular schedule of the fourth Friday of the month at 10:00 a.m., with April and October’s meetings beginning at 11:30 a.m.
Chair Tyson opened public comment.
No speakers.
Chair Tyson closed public comment.
The motion carried unanimously by verbal roll call vote. 5) 2022 Board and Executive Committee Meeting Schedule – Recommendation of Summer Recess (Action)
Chair Tyson introduced the item; Board Clerk Pizano restated staff’s request for a summer recess in July for the Executive Committee and a recommendation to the Board of Directors to also have a summer recess in July with no board meeting.
MOTION: Vice Chair Fligor moved and Director Ellahie seconded the motion to approve a one-month summer hiatus in July for the SVCE Executive Committee meeting, and recommend the Board approve a July hiatus for the Board of Directors meeting.
Chair Tyson opened public comment.
No speakers.
Chair Tyson closed public comment.
The motion carried unanimously by verbal roll call vote.
Director Martinez Beltran announced her departure for another meeting.
Item 1 Draft Minutes of the 1/28/22 Executive Committee Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
Committee/Staff Remarks
No comments.
Adjournment
Chair Tyson adjourned the meeting at 12:59 p.m.
Item 1 Draft Minutes of the 1/28/22 Executive Committee Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
Staff Report – Item 2
Item 2: CEO Update
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 2/25/2022
This item will be addressed in the form of an oral report to the Executive Committee from CEO Girish Balachandran.
Item 2
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Staff Report – Item 3
Item 3: “Doubling Down” on Decarbonization Programs
From: Girish Balachandran, CEO
Prepared by: Justin Zagunis, Director of Decarbonization and Grid Innovation Programs Date: 2/25/2022
RECOMMENDATION
Staff requests that the Executive Committee provide feedback on staff’s recommended dollar allocations and details for the five double down programs.
Getting this feedback will help staff in preparation of a presentation to the Board in March 2022 that will seek approval on these programs to begin final design work and launch.
BACKGROUND
In November 2021, the Board provided feedback on staff’s proposed program concepts for increased prioritization, funding, and impact. This was in response to the Board’s interest during the FY 2021-22 operating budget discussions to “double down” on decarbonization program efforts in the context of the need for urgent climate action and the forecasted reserves in the FY 2021-22 budget. Staff reviewed learnings from SVCE programs over the past several years, considered the critical role that SVCE and its cities can play in achieving full decarbonization, and engaged with various stakeholders to inform these concepts and initial designs.
ANALYSIS & DISCUSSION
SVCE staff will address the analysis in the form of a presentation to the Executive Committee.
STRATEGIC PLAN
The proposal supports the 6th Focus Area approved by the Board in September 2021 to “grow the organization to expand our strategic efforts on climate change and decarbonization.” It also supports SVCE’s updated 2021- 2022 Strategic Plan Goal 8, which is to “coordinate development of decarbonization and resilience strategy, lead design of local policy and programs, and support program deployment.”
FISCAL IMPACT
The Board approved in February 2022 the expenditure of an additional $17M on decarbonization programs. This item will guide staff on where to allocate that funding.
ATTACHMENTS
The presentation for this item is posted to the SVCE website.
Item 3
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Staff Report – Item 4
Item 4: Update on New Construction Reach Codes and Existing Building Electrification Policies
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 2/25/2022
RECOMMENDATION
Staff requests that the Executive Committee receive an update from the Account Services and Community Relations team on new construction reach codes and existing building electrification policies.
BACKGROUND
In 2019, SVCE offered technical support to member jurisdictions that were evaluating options for amending the state’s 2020 building code. Eleven of SVCE’s jurisdiction’s passed reach codes applying to the 2019 building code which will expire 12/31/2022.
Staff is in the process of supporting member agencies with core technical assistance and supportive elements, which will be discussed in more detail at the Executive Committee meeting.
ANALYSIS & DISCUSSION
SVCE staff will address the analysis in the form of a presentation to the Executive Committee.
STRATEGIC PLAN
The proposal supports SVCE’s Strategic Plan Goal 8, “coordinate development of decarbonization and resilience strategy, lead design of local policy and programs, and support program deployment.”
FISCAL IMPACT
N/A
ATTACHMENTS
The presentation for this item will be posted to the SVCE website.
Item 4
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Staff Report – Item 5
Item 5: Request Recommendation to the Board of Directors on How to Allocate $3 million in Customer Relief
From: Girish Balachandran, CEO
Prepared by: Don Bray, Director of Account Services and Community Relations Date: 2/25/2022
At the SVCE Board of Directors Meeting on February 9, 2022, the Board voted to apportion $3 million in new funding for customer relief. Staff will present options for how income-qualified CARE/FERA customers could receive bill relief during the remainder of 2022. Staff will identify a preferred option and receive input from the Executive Committee. Based on the Committee’s input, Staff will subsequently present options and a recommendation for a vote at the March 9th BOD meeting.
ATTACHMENTS
The presentation for this item will be posted to the SVCE website.
Item 5
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Staff Report – Item 6
Item 6: Recommend the SVCE Board of Directors Delegate Authority to the Chief Executive Officer to Amend Existing Renewable Resources Power Purchase Agreements (PPAs) and Energy Storage Service Agreements (ESSAs) As Exigent Circumstances Arise Consistent with Policies and Financial Parameters Initially Established in the Approval of the PPAs and ESSAs
From: Girish Balachandran, CEO
Prepared by: Monica Padilla, Director of Power Resources Bob Tang, Power Supply Project Manager
Date: 2/25/2022
RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy Authority Executive Committee (EC) recommend the Board delegate the authority to the Chief Executive Officer (CEO) to execute amendments to the existing renewable resources power purchase agreements (PPAs) and Energy Storage Service Agreements (ESSA) when exigent circumstances arise to the extent amendments are in conformance with the policies and financial parameters initially established in the approvals of the PPAs.
BACKGROUND
In the past three years, Silicon Valley Clean Energy (SVCE) has entered into thirteen long term renewable resources PPAs to fulfill SVCE’s obligations toward California’s Renewable Portfolio Standard (RPS) mandate as well as policy directives established by SVCE’s Board. Additionally in February 2022, the SVCE Board authorized the execution of the first ESSA through California Community Power to meet the long duration storage requirements under the California Public Utilities’ Commission Mid-term Reliability Procurement Order.
Table 1 is a summary of SVCE Board authorized long-term PPAs and ESSAs (“Agreements”).
Table 1: SVCE Existing and Pending PPAs and ESSAs
Item 6
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~ - ---
Developer Project Name Technoloev
RecLrrent
1 Energy/canadian Sclar Slate New Solar+ Storage
2 EDF Big Beau New Solar+ Storage
3 Ormat casa Diablo New Geothennal
4 Middle River Power Cose Existing Geothermal
5 First Solar/LS Power RcilJl)ilt.>ru~h Nt!w Solc11 1- 5lurc1ge 6 Nextera Yellow Pine New Solar+ Storage
7 8 Minute Energy Aratina New Solar+ Storage
8174PowerGlobal Atlas New Solar
9 Samsung Angela New Solar+ Storage
10 AES Mountain View Existing Wind
11 Orie:is San Luis West New Solar+ Storage
12 Clearway Victory Pass New Solar+ Storage
13 Terra-gen cameron Crest Existing Wind
14 LS Power/Rev Renewable, Tumbleweed Long Duration Storage --
Contract Type
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
ESSA
Total
---- ,~- -- ----
Lifetime
Not to Averaa:e
Exceed Annual Annual Cost as
Approximate % Authority Cost % of Power Board
of load in 2024 Term (years) (MM$) (MM$) Supply Cost Approval
6.7% 17 $198 $12 5% Oct-18
5.8% 20 $196 $10 4% Oct-18
1.4% 10 $43 $4 2% Feb-20
9.6% 15 $331 $22 9% Mar-20
3.0% 15 $64 $4 2% Apr-20
4.1% 20 $128 $6 3% May-20
6.6% 20 $174 $9 ~% Jun-20
3.8% 10 $27 $3 1% Jan-21
1.0% 15 $35 $2 1% Mar-21
3% 20 $128 $6 3% Apr-21
4% 15 $74 $5 2% Aor-21
8% 15 $149 $10 4% May-21
5% 15 $150 $10 4% May-21
n/a 15 $100 $7 3% Feb-22
62% $1,797 $110 43¾
Agenda Item: 6 Agenda Date: 2/25/2022
In the approval of these Agreements, the Board typically delegates the authority to SVCE’s Chief Executive Officer to execute the PPA and the associated ancillary documents for the PPAs. This delegation of authority is envisioned to be ministerial and administrative in nature as the Board would have already approved the terms and conditions of the PPAs in the first instance, e.g. the MW amount to be purchased, the duration of the PPA, the pricing, the not-to-exceed (NTE) budget for the life of the Agreement, credit terms and other terms and conditions specified in the PPA, etc.
Many of these Agreements are associated with new projects that require significant lead time toward development, engineering, construction and commissioning with many unknowns and uncertainties. In the implementation of these Agreements, circumstances have arisen that will require some deviations from the terms and conditions of the PPA to be effectively implemented. Some examples of these deviations are:
1. Agreement Start Date
The agreements typically specify the date the project must start delivery of power with a specified allowance for an early start (up to ninety days earlier) or a delayed start (up to 120 days of delay).
In the instance of one agreement, the project is anticipated to finish its construction and commissioning activities and is ready to start power delivery well ahead of the 90-day early start limitation. Unless the agreement is formally amended by the Board to waive the early start limitation, the project will be either sitting idle for many months or be selling to other entities to the detriment of SVCE as it is to SVCE’s best interest to accept the early start.
In other instances, several projects are facing uncertain impact in component deliveries caused by supply chain disruptions due to global pandemic that could likely extend beyond the 120-day delay limitations. Unless the PPA is formally amended by the Board to waive the 120-day delay limitation, these projects are likely to fail and the agreements might be terminated by the developer for fear of occurring significant delay damages if they continue development beyond the 120-day delay limitation.
In these instances, it is to SVCE’s interest to promptly provide reasonable accommodation and certainty to the developers to the timing of the project commercial operation date so long as the duration of the agreement and the pricing do not change.
2. Ancillary Costs
In the implementation of the projects, staff has found that there are a myriad of costs associated with critical services to which the cost responsibility is not clearly delineated to either the seller or the buyer in the PPA.
One example of such costs is the cost associated with the telemetry service to monitor the generating plant status at all times from the CAISO power scheduling perspective. This is a critical service to which the cost responsibility is not clearly delineated in the PPA.
Another example would be a change in configuration of generating plant that provides more value to SVCE.
Although there are provisions in the PPA that deal with cost responsibility caused by changes in regulations that seller is responsible for, it is not clear whether it covers the costs of potential changes to the configuration that benefits SVCE.
In these instances, it is to SVCE’s interest to timely negotiate with the PPA counterparties and reach an agreement on cost responsibility, typically at fairly modest costs and carry out the implementation without delay.
3. Pricing for Phased Project
Item 6
Agenda Item: 6 Agenda Date: 2/25/2022
In the agreements, typically pricing for power when the generating plant undergoes testing is at a discount of full PPA price, e.g. 70% of full PPA price.
In some instances, different parts of the project may become available for commercial operation at different times, e.g. the solar PV portion may become fully operational before the battery energy storage system becomes fully operational with a significant time lag. In such instances, it may make sense to pay the full PPA price for the phased project if the product delivered is of full value, i.e. pay full price for PV energy if the PV portion is fully operational and recognized as such by the CAISO.
As more projects get developed, there are likely to be other circumstances that may dictate deviations or amendments to the existing PPAs in a timely manner.
With this mind, staff recommends that the EC recommend to the SVCE Board to delegate authority to the CEO to amend the existing Agreements without Board approval that adhere to the following guidelines:
1. Any amendment shall not extend the term of the existing Agreement or ESSA without Board approval;
2. Any amendment shall not change the pricing under the Agreement or ESSA after the delivery term starts without Board approval;
3. Pricing amendment to the test energy could be allowed if in the CEO’s best judgement it provides the best value to SVCE;
4. Any amendment shall not cause the not—to-exceed budget for the life of the Agreement or ESSA originally approved by the Board to be exceeded without Board approval.
5. The CEO will provide timely updates to the Board when amendments to the Agreements are executed under this delegated authority.
STRATEGIC PLAN
The proposed delegation of authority to CEO supports SVCE’s Strategic Plan Goal #6, Manage and optimize power supply resources to meet affordability, GHG reduction and reliability objectives. The proposed delegation of authority to CEO supports this goal by acting timely to effectively manage SVCE’s renewable resource portfolio consistent with Board’s policy and financial directives.
ALTERNATIVE
An alternative is to seek Board approval in every instance that PPA amendment is required. However, this alternative is not preferred as it might result in significant administrative burden for modest changes to the PPA that benefit SVCE. In some instances, timely amendment is critical to provide the certainty that developer might need to carry on the development activities which the formal Board approval process might not be able to accommodate.
FISCAL IMPACT
The proposed delegation of authority to CEO might result in some additional costs under the PPAs or ESSA. As explained above, such additional costs are bounded by the recommended guidelines above and are not expected to exceed the original not-to-exceed authority approved by the Board without further Board approval.
PPA and ESSA expected expenditures will be included in the annual operating budget as adopted by the Board.
Item 6