Silicon Valley Clean Energy Authority
Board of Directors Meeting
Wednesday, August 9, 2023
7:00 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA
Administrative Conference Room, Gilroy City Hall
7351 Rosanna St.
Gilroy, CA 95020
16870 Prospect Ave.
Thousand Island Park, NY 13692
MEETING MINUTES
Call to Order:
Chair Tyson called the meeting to order at 7:01 p.m.
Roll Call
Present:
George Tyson (Chair), Los Altos Hills
Tina Walia (Vice Chair), Saratoga
Elliot Scozzola, Campbell
Sheila Mohan, Cupertino
Zachary Hilton, Gilroy (Participated via teleconference) Sally Meadows, Los Altos
Rob Rennie, Los Gatos (Participated via teleconference) Evelyn Chua, Milpitas
Tanya Carothers, Morgan Hill
Margaret Abe-Koga, Mountain View
Murali Srinivasan, Sunnyvale
Otto Lee, Santa Clara County
Absent:
Bryan Mekechuk, Monte Sereno
Public Comment on Matters Not Listed on the Agenda
No speakers.
Consent Calendar
There were no questions or comments from the Board; there were no requests from the public to speak on any matter on the Consent Calendar.
DocuSign Envelope ID: 273AB1C5-4723-4013-95E0-6C07ADF36A88
1a) Approve Minutes of the June 14, 2023, Board of Directors Meeting 1b) Approve Minutes of the June 14, 2023, Board of Directors Special Meeting 1c) Receive May and June 2023 Treasurer Report
1d) Ratify Broker Transaction Expenses for Past Commodity Purchases 1e) Adopt Resolution to Approve the Amended Energy Risk Management Policy 1f) Authorize the Chief Executive Officer to Modify Agreement with Power MC LLC 1g) Adopt Resolution Authorizing the Chief Executive Officer to Amend Master Agreement with Direct Energy Business Marketing, LLC (“DEBM”)
1h) Receive Q2 2023 Decarbonization Programs Update
1i) Executive Committee Report
1j) Finance and Administration Committee Report
1k) California Community Power Report
1l) Legislative Response to Industry Transition 2023 Ad Hoc Committee Report 1m) Audit Committee Report
MOTION: Vice Chair Walia moved and Director Lee seconded the motion to approve the Consent Calendar, Items 1a through 1m.
The motion carried by verbal roll call vote with Director Mekechuk absent.
Regular Calendar
2) CEO Report (Discussion)
CEO Girish Balachandran’s report included the following:
1) Announcement of staff’s all-hands retreat at the SVCE office on Thursday, followed by Friday at the Milpitas Community Center;
2) Introduction of SVCE’s newest Associate Data Scientist, Colleen McCamy, who provided brief welcome comments;
3) Announcement of promotions of the following staff:
a. Bena Chang, Director of Government and Legislative Affairs, b. Pamela Leonard, Deputy Director of Marketing and Communications, and c. Nik Zanotto, Senior Manager of IT and Administrative Services 4) An informational presentation from Justin Zagunis, Director of Decarbonization Programs and Policy, regarding where to find information on SVCE’s programs and upcoming enhancements to sharing that information.
5) An update from Jessica Cornejo, Senior Programs Specialist, on SVCE’s Contractor Training Program, which included two video testimonials from contractors who participated in the course.
CEO Balachandran noted staff would be preparing a future workshop focused on SVCE’s programs.
Staff responded to board member questions regarding contractor training participants, and past feedback on the process for SVCE’s FutureFit Homes program rebates; Director Chua requested information on contractors from the City of Milpitas.
A question was posed on if Board Members could participate in SVCE’s FutureFit Homes program rebates; staff noted they would follow up and confirm.
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
DocuSign Envelope ID: 273AB1C5-4723-4013-95E0-6C07ADF36A88
3) Authorize the Chief Executive Officer to Execute a 15-Year Power Purchase Agreement with Grace Orchard Solar II, LLC for Renewable Solar PV Supply (PCC1) and a 15-Year Energy Storage Service Agreement with Yellow Pine Solar III, LLC for Energy Storage, in Substantial Form and Any Necessary Ancillary Agreements and Documents (Action) Monica Padilla, COO and Director of Power Resources, and Zak Liske, Senior Manager of Power Operations, presented the item with a request to the Board of Directors to authorize the CEO to execute two separate NextEra agreements for the procurement of renewable solar energy and standalone storage capacity in substantial form, and any necessary ancillary agreements and documents as follows:
1. Grace Orchard Solar II, LLC, Power Purchase Agreement (PPA) (“Grace Solar”) a. 120 MW or approximately 331,000 MWh per year of Renewable Portfolio Standard (RPS) Portfolio Category Content One (“PCC1”) eligible resources b. 15-Year term PPA with expected commercial operation date (COD) and term from July 1, 2027, through June 30, 2042.
c. Total amount not-to-exceed $286,000,000.
2. Yellow Pine Solar III, LLC, Energy Storage Service Agreement (ESSA) (“YP3 BESS”) a. 115 to 120 MW, four-hour standalone battery energy storage system (BESS). b. 15-year deliver term with expected COD and term of August 1, 2025, through July 31, 2040.
c. Dollar authority not to exceed $420,000,000.
The presentation included information on the progress made towards meeting SVCE’s long-term clean energy goals, a summary of the Fall 2022 request for proposals (RFP), and information on both projects and how they would increase clean energy and capacity.
Staff responded to board member questions regarding the RFP responses received, if SVCE engages in joint procurement efforts, and renewable portfolio standard resources.
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
MOTION: Director Abe-Koga moved and Vice Chair Walia seconded the motion to authorize the CEO to execute the 15-year Power Purchase Agreement with Grace Orchard Solar II, LLC and the 15-year Energy Storage Service Agreement with Yellow Pine Solar III, LLC.
The motion carried by verbal roll call vote with Director Mekechuk absent. 4) Provide Feedback on the FY 2023-24 Proposed Operating Budget and Updated Reserves Policy (Discussion)
Amrit Singh, CFO and Director of Administrative Services, provided a presentation on the FY 23-24 proposed operating budget and revised reserves policy for feedback. The main areas of discussion in the presentation were to review key highlights, review the proposed budget forecast, review revenue forecast uncertainty, power supply cost comparison to the FY23 mid-year budget, other operating expenses, and a review of the proposed update to reserve targets to increase the target days cash on hand from 285 to 300.
Staff responded to board member questions regarding the proposed current customer discount rate, the increase in days cash on hand to 300, the potential of purchasing an office building in the future, current investment strategy, and PG&E’s rates.
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
DocuSign Envelope ID: 273AB1C5-4723-4013-95E0-6C07ADF36A88
Board Member Announcements and Future Agenda Items
Director Meadows announced the City of Los Altos and SVCE published a joint press release on the Community Resilience Grant award to implement the “cool pavement” coating pilot project in Los Altos.
Director Rennie announced the Fire Safe Council will be having a fundraising event on October 10, 2023 at the Mountain Winery.
Public Comment on Closed Session
No speakers.
The Board of Directors convened to Closed Session at 8:35 p.m.
Closed Session
Public Employee Performance Evaluation
Title: Chief Executive Officer
Public Employee Appointment
Title: Chief Executive Officer
Conference with Labor Negotiators
Agency designated representatives: Director Tyson, Board Chair, and Director Walia, Board Vice Chair Unrepresented Employee: Chief Executive Officer
CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(California Government Code Section 54956.9(d)(1))
Name of case: Central Coast Community Energy, a California joint powers authority; Silicon Valley Clean Energy Authority, a California joint powers authority v. Big Beau Solar, LLC, et al, Santa Clara County Superior Court Case No. 22CV398156
Report from Closed Session
Chair Tyson announced there was nothing to report from Closed Session.
Adjourn
Chair Tyson adjourned the meeting at 9:56 p.m.
ATTEST:
_____________________________
Andrea Pizano, Board Secretary
DocuSign Envelope ID: 273AB1C5-4723-4013-95E0-6C07ADF36A88