Silicon Valley Clean Energy
Executive Committee Meeting
Friday, May 24, 2024
10:00 a.m.
Silicon Valley Clean Energy Office
333 W El Camino Real, Suite 330
Sunnyvale, CA
Morgan Hill City Hall
17575 Peak Ave.
Morgan Hill, CA 95037
MEETING MINUTES
Call to Order
Chair Klein called the meeting to order at 10:04 a.m.
Prior to Roll Call, Director Meadows announced she was participating remotely pursuant to AB 2449 under the “Just Cause” provision due to an illness and there were no other adults present in the room.
Roll Call
Present:
Chair Larry Klein, City of Sunnyvale
Vice Chair Bryan Mekechuk, City of Monte Sereno
Director Sally Meadows, City of Los Altos (Participated remotely under AB 2449) Director George Tyson, Town of Los Altos Hills
Director Tina Walia, City of Saratoga
Director Yvonne Martinez Beltran, City of Morgan Hill (Participated remotely)
Absent:
None.
Public Comment on Matters Not Listed on the Agenda
No speakers.
Consent Calendar
Chair Klein opened public comment.
No speakers.
Chair Klein closed public comment.
MOTION: Vice Chair Mekechuk moved and Director Tyson seconded the motion to approve the Consent Calendar.
The motion carried unanimously via roll call vote.
Docusign Envelope ID: F142B0ED-8065-416E-AC72-83FD55219D60 1) Approve Minutes of the April 26, 2024, Executive Committee Meeting Regular Calendar
2) CEO Update (Discussion)
CEO Monica Padilla provided a report which included:
• An update on staff’s efforts to identify an office space solution in the short and long term, with the intent to come back to the Executive Committee with findings before formalizing the budget for FY 25; and • A brief status update on CEO onboarding, which is going well.
Chair Klein opened public comment.
No speakers.
Chair Klein closed public comment.
3) Authorize Payments for the California Community Choice Association and California Community Power Membership Costs (Action)
CEO Padilla introduced the item with Zak Liske, Deputy Director of Power Resources, outlining a request for the Executive Committee to authorize payments to the California Community Choice Association (CalCCA) and California Community Power (CC Power) for membership costs associated with FY 25 and to ratify payments made for previous fiscal years. CEO Padilla provided background information on the previous budgets for both organizations, noting staff had not sought specific Board authority to make payments for ongoing annual membership costs, which were more than $100,000 and therefore exceeded the CEO’s approval authority, and the lack of clarity if the authority to make these payments was granted when membership to both organizations was approved.
Chair Klein opened public comment.
No speakers.
Chair Klein closed public comment.
Committee members thanked staff for being transparent and were in agreement on the importance of membership in CalCCA and CC Power.
MOTION: Director Walia moved and Vice Chair Mekechuk seconded the motion to recommend the SVCE Board of Directors authorize payments in the amount of $460,000 to CalCCA for fiscal year ending 2025 and ratify all such payments made for previous fiscal years; and $712,149 to CC Power for FY ending 2025 and approve and ratify all such payments made for previous fiscal years.
The motion carried unanimously via roll call vote.
4) 2025 Clean Power Supply Recommendation Offerings (Action) Kris Van Vactor, Director of Power Resources, presented the item with a request for the Executive Committee to recommend the SVCE Board of Directors authorize staff to continue to seek carbon-free resources within the Board parameters approved for 2024 (for calendar year 2025); if the carbon-free resources were not available or within budget, adjust the 100% clean goal for 2025 to the current position of ~75%-80% clean; and to assume an 85% clean position for budgeting purposes for FY 24-25.
Docusign Envelope ID: F142B0ED-8065-416E-AC72-83FD55219D60 Staff responded to committee member questions regarding messaging, the Diablo Canyon Power Plant, the regulatory change to how the Coso Geothermal renewable resource will be accounted for on the Power Content Label (PCL) in 2026 for SVCE, reportable emissions if SVCE was only using natural gas, how long SVCE anticipates the current trend will continue, municipal government Climate Action Plan impacts, and if SVCE customers have an option to purchase GreenPrime in sufficient quantities or a mix to meet Climate Action Plan goals.
Amrit Singh, CFO and Director of Finance and Administration, clarified the budget for FY 25 has not been approved, so the reference in the staff recommendation of the cost being within budget should be removed.
Committee members provided suggestions for clarity when bringing the item to the Board of Directors for approval including:
• More context to how carbon-free SVCE has been each year; • Include a chart of costs to achieve different percentage levels of clean; and • Provide a sense of future direction.
Chair Klein opened public comment.
Bruce Karney commented the only other CCA that has attempted to be completely carbon-free is Peninsula Clean Energy, and one of the important things to have in the conversation is when SVCE emits some carbon, it imposes a social cost that would not have taken place if that carbon had not been emitted, which should be considered in the analysis. Mr. Karney noted SVCE’s initial Co2 emissions were zero and has risen to 72 pounds in the last year, and these calculations will show up in reports the cities generate. Regarding the Diablo Canyon Power Plant, Mr. Karney noted there is a lot of pressure in Sacramento for the governor to stop the support for Diablo Canyon Power Plant, and Mr. Karney expressed his support for remaining 100% carbon-free.
Chair Klein closed public comment.
MOTION: Vice Chair Mekechuk moved and Director Tyson seconded the motion to recommend the SVCE Board of Directors approve the following for 2025:
Continue to seek carbon-free resources within Board parameters approved for 2024 for calendar year 2025;
If carbon-free resources are not available, adjust 100% Clean goal for 2025 to current position of ~78% to 85% Clean, depending on carbon-free allocations from PG&E – Option #2 – Slide 7; For FY 2024-2025 proposed Operating Budget, assume 85% Clean position. Board to consider Budget in September 2024
The motion carried unanimously via roll call vote.
5) Intro to 2025 Strategic Plan (Discussion)
CEO Padilla presented an introduction to the 2025 Strategic Plan and Strategic Focus Areas, with a request for feedback from the committee on the ideas identified thus far. The presentation included information on the FY 24-25 Strategic Planning and budget process, a review of the existing Strategic Focus Areas, highlights on progress for the existing Strategic Focus Areas, input and direction from staff on the FY 25 Strategic Focus Areas, and next steps. CEO Padilla summarized changes to FY 25 to remove existing Strategic Focus Area #4:
Implement Innovative Financing Solutions and to add a Strategic Focus Area relating to affordability.
Chair Klein opened public comment.
Bruce Karney was in agreement that affordability is a critical variable, and framed it in the context of “what can you do with money to transform people’s choices about how to power their homes, heat their buildings and their water”. Mr. Karney suggested SVCE’s per kilowatt hour rate be a fraction below competitors, but incentive Docusign Envelope ID: F142B0ED-8065-416E-AC72-83FD55219D60 programs for those who have made a transition, or incentives to make transitions, should be made affordable.
Chair Klein closed public comment.
Committee members provided feedback and were in consensus to support the new Strategic Focus Area on affordability and to remove the financing solutions focus area for 2025. 6) Program Snapshot: Community Energy Resilience Program (Information Only) Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy, introduced the item and Jessica Cornejo, Senior Programs Specialist, presented information on the Community Energy Resilience program, which provides grants to each member agency to invest in capital projects that support municipal and community resilience. Senior Programs Specialist Cornejo highlighted various innovative projects, including a solar plus battery install at the Milpitas Community and Senior Center; building and EVI resilience at the City of Cupertino and City of Sunnyvale; and emergency operations and heat mitigation at the City of Saratoga and Town of Los Altos.
Staff responded to committee member questions regarding the projects, particularly the cool pavement coating in downtown Los Altos.
Chair Klein opened public comment.
No speakers.
Chair Klein closed public comment.
Committee/Staff Remarks
Director Tyson announced there was an article regarding PG&E in the San Jose Mercury News published that day.
Adjournment
Chair Klein adjourned the meeting at 12:05 p.m.
ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Docusign Envelope ID: F142B0ED-8065-416E-AC72-83FD55219D60