VCEA Minutes July 11, 2024 Board Meeting Page 1 of 4
MINUTES OF THE VALLEY CLEAN ENERGY ALLIANCE
BOARD OF DIRECTORS REGULAR MEETING
THURSDAY, JULY 11, 2024
The Board of Directors of the Valley Clean Energy Alliance duly noticed their regular meeting for Thursday, July 11, 2024 at 5:30 p.m. to be held at UC Davis – California Lighting and Technology Center, located at 633 Pena Drive, Davis, California 95618. Board Director Tom Stallard informed those present that we were waiting for one more Board member for a quorum. Director Stallard started the meeting at 5:43 p.m.
Board Members Present: Tom Stallard, Will Arnold, Jesse Loren, Richard Casavecchia, Bapu Vaitla (attending remotely per section Government Code Section 54953), Jim Provenza (arrived at 6:02 p.m.)
Members Absent: Lucas Frerichs, Tania Garcia-Cadena
Welcome Director Stallard welcomed the Board members. Vice Chair Vaitla announced, in accordance with Government Code Section 54953, that he is attending remotely; there was nobody else in the room; he will keep both his audio and visual on; his cause for attending remotely is that he has a contagious illness that prevents him from attending in person; and, this is his first time invoking remote attendance.
Director Stallard announced that he will chair the meeting since Chair Lucas Frerichs is absent and Vice Chair Bapu Vaitla is attending remotely. Director Stallard announced that we are waiting for a 5th Board Member to arrive in order to have the presence of a quorum of members in one location. Per VCE’s legal counsel and Government Code Section 54953, Vice Chair Bapu Vaitla does not have voting rights until a 5th Board Member is present at this meeting location to reach a quorum. Director Stallard mentioned that no action can be taken at this meeting until we have a quorum. He moved on to the public comment period thereafter Regular Agenda Item 14 – CAISO summer preparedness presentation which is an informational item only.
Public Comment –
General and
Consent
Director Stallard asked if any Board Members present wished to move items off the Consent Agenda to the Regular Agenda for further discussion. There were none. Director Stallard asked if there were any written or verbal general public comments. There were none.
VCEA Minutes July 11, 2024 Board Meeting Page 2 of 4
Regular Agenda
Item 14: Receive
CAISO summer
preparedness
presentation.
(Information)
VCE Executive Officer Mitch Sears introduced this information item.
VCE Chief Operating Officer Gordon Samuel reminded those present that there is no staff report for this item, only slides. He introduced Jaclyn Harr of The Energy Authority (TEA), VCE’s wholesale energy consultant, who proceeded to provide information on CAISO and VCE Summer readiness; reviewed July, August and September weather forecasts; CAISO’s Quarter 3 estimated load impacts; California’s seasonal water storage; CAISO’s 2024 September supply and demand peak analysis; and, VCE’s Summer energy position. There were no verbal or written public comments.
Quorum Present Director Jim Provenza arrived at 6:02 p.m. during Item 14 establishing a quorum of Board Members. Director Stallard informed those present that there was now a quorum of members with Director Jim Provenza arriving at 6:02 p.m. Director Stallard asked Director Provenza if he would like to pull anything from the Consent Agenda for further discussion. Director Provenza did not. Director Stallard reminded those present that we have already asked for public comment, which there was none.
Approval of
Consent Agenda /
Resolutions 2024-
008 thru 2024-010
There being no items pulled from the Consent Agenda, a motion was made by Director Loren to approve the Consent Agenda items, seconded by Director Arnold. Motion passed with Directors Frerichs and Garcia-Cadena absent. The following items were:
3. approved June 13, 2024 Board meeting Minutes;
4. received 2024 long range calendar;
5. received financial update May 31, 2024 (unaudited) financial statement;
6. received legislative update provided by Pacific Policy Group;
7. received June 2024 regulatory update dated July 2, 2024 provided by Keyes & Fox;
8. received SACOG – Electrify Yolo Project update;
9. received Customer participation update (2nd Quarter 2024);
10. approved Amendment One (1) of the Energy Authority Consulting Agreement extending the term of the agreement via Resolution 2024- 008;
11. authorized Executive Officer to approve Lockbox Agreement with River City Bank and The Energy Authority as Resolution 2024-009;
12. authorized Executive Officer to approve Power Purchase Agreements Legal and Prepay County Party Agreements as Resolution 2024-010; and
VCEA Minutes July 11, 2024 Board Meeting Page 3 of 4
13. approved Memorandum of Understanding with Cool Davis.
Item 15: Discuss
and provided
direction on VCE
Renewable Energy
Credits
Optimization.
(Information
/Action)
Ms. Harr (TEA) provided an overview of renewable resources and targets, compliance requirements, interim and long-term procurement requirements, excess megawatts produced from VCE’s power projects, retired units of energy called REC’s and the different categories, and the purchase and sale of REC’s. Staff reviewed VCE’s goal of reaching 100% renewable by 2030, the tradeoffs of having additional energy with VCE’s financial responsibilities, and reviewed several examples of selling REC’s while maintaining compliance. She noted that the examples have built in “buffers” for potential resource outages, curtailment, and higher than expected load. Staff reviewed the recommendation to optimize the REC portfolio in 2025 and it was mentioned that whatever the Board decides, may lead to a Board policy.
The Board and Staff discussed: renewable portfolio standard (RPS); database for tracking purchases, hedging and selling; penalties for having a shortfall of REC’s; VCE’s renewable goal and the Power Content Label; financial standing and other options for revenue; and, meeting compliance requirements.
Verbal Public Comment: Christine Shewmaker commented that it is hard to predict the future of what other things may happen since historically, there have been ups and downs and that she would like to see VCE target RPS closer to 100% over the long term.
There were no written public comment.
Vice Chair Vaitla made a motion that based on current market conditions, authorize Staff to optimize VCE’s portfolio by selling REC’s that are at or above state RPS compliance levels, maintains or exceeds Base Green and Standard Green commitments for year 2025, and does not jeopardize VCE’s long-term goals. This motion was seconded by Director Provenza. Motion passed by the following vote:
AYES: Arnold, Loren, Provenza, Casavecchia, Vaitla, Stallard NOES: None
ABSENT: Frerichs, Garcia-Cadena
ABSTAIN: None
VCEA Minutes July 11, 2024 Board Meeting Page 4 of 4
Item 16: Board
Member and Staff
Announcements
Director Provenza reminded those present that Yolo County’s Climate Action Plan is accepting comments.
Mr. Sears informed those present that he attended a CEC meeting where the electrify tractor grant was approved. VCE partnered with Gridtractor on this grant. Mr. Sears provided an update on VCE to the Yolo County Board of Supervisors on Tuesday and he is scheduling updates with other jurisdictions. VCE has submitted a few other grant proposals and he will keep the Board apprised of the application status.
Announcement /
Adjournment
Director Stallard announced that the Board will not convene into Closed Session. The Board’s August 8, 2024 regular meeting has been cancelled. The Board’s next regular meeting is scheduled for Thursday, September 12, 2024 at 5:30 p.m. to be held at the City of Davis Community Chambers, located at 23 Russell Boulevard, Davis, California 95616. There being no further business to discuss the meeting was adjourned at 7:20 p.m.
Alisa M. Lembke
VCEA Board Secretary