HomeMy WebLinkAbout2020-06-26; Clean Energy Alliance JPA; ; Clean Energy Long-Term Renewable Energy SolicitationClean Energy Alliance
JOINT POWERS AUTHORITY
Staff Report
DATE: June 26, 2020
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 2: Clean Energy Long-Term Renewable Energy Solicitation
RECOMMENDATION:
1) Review, provide input and approve Request for Proposal for Long-Term Renewable Solicitation.
2) Approve Joint Long-Term Renewable Solicitation with San Diego Community Power.
BACKGROUND AND DISCUSSION:
Senate Bill 350 which is effective in 2021 establishes that 65% of state mandated renewable portfolio
standards (RPS) requirements be procured via long-term contracts of 10-years or longer.
At its June 18, 2020 regular meeting, the Board heard a report related to the initial solicitation of long-
term renewable energy reflecting the quantities needed to meet the requirements of SB350. The Board
directed this item be brought back to the Board with the Request for Proposal (RFP) for further review,
input and discussion.
The presentation at the June 18 Board meeting included introduction of the concept of joint
administration of the RFP between Clean Energy Alliance (CEA) and San Diego Community Power (SDCP).
With the planned launch schedules of the two agencies community choice aggregation (CCA) programs,
CEA and SDCP would have their solicitation out in the market at generally the same time. This timing
could result in CEA and SDCP competing with each other to enter into exclusivity agreements with
prospective developers. Moving forward jointly eliminates this potential competition.
FISCAL IMPACT
There is no fiscal impact by this action. Estimated costs related to selection of any projects as a result of
this solicitation have been factored into the Clean Energy Alliance Pro-Forma and will be included in the
budget for the fiscal year that costs would be incurred.
ATTACHMENTS:
A. Draft 2020 Request for Proposals for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 1 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
Introduction & Background
Attachment A
The Clean Energy Alliance ("CEA") and San Diego Community Power ("SDCP"), together the "Joint CCAs",
are requesting proposals for long-term, California Renewables Portfolio Standard ("RPS") eligible
renewable energy products with initial deliveries commencing during the 2021, 2022 and/or 2023 calendar
years. The Joint CCAs are represented by two new Community Choice Aggregation ("CCA") programs that
will begin serving customers located within the San Diego region in 2021. CEA plans to commence retail
electric service in May 2021 and will serve the cities of Carlsbad, Del Mar and Solana Beach. CEA anticipates
annual retail sales approximating 960 GWh and expects to serve approximately 58,000 service accounts,
following the completion of planned phase-in activities. SDCP intends to commence retail electric service
in March 2021 and will serve the cities of Chula Vista, Encinitas, Imperial Beach, La Mesa and San Diego.
SDCP anticipates annual retail sales approximating 7,000 GWh with nearly 740,000 service accounts
enrolled following completion of pertinent phase-in activities.
In consideration of upcoming long-term renewable energy contracting requirements, as imposed by SB
350, the Joint CCAs anticipate certain open positions as further described herein. In particular, this RFP is
primarily intended to support future Portfolio Content Category 1 ("PCC1" or "Bucket 1") energy
requirements through long-term power purchase agreements with one or more qualified counterparties.
This noted, the Joint CCAs will also accept and evaluate long-term prqcprement opportunities for Portfolio
Content Category 2 ("PCC2" or "Bucket 2") renewable energy producJs: Long-term offers for Portfolio
Content Category 3 ("PCC3" or "Bucket 3") renewable energy products will not be considered at this time.
Based on the Joint CCAs' most recent analysis, future long-term renewable energy requirements have been
quantified in the following tables:
Table 1: CEA's Estimated Annual Long-Term Renewable Energy Requirements (GWh)
2023 2024 2025 2026 2027 2028 2029 2030
LTRPSGWh 269 288 307 326 346 365 385 405
Table 2: SDCP's Estimated Annual Long-Term Renewable Energy Requirements (GWh)
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
LTRPSGWh 500 1,800 2,000 2,100 2,300 2,400 2,600 2,700 2,900 3,000
By particip~ting in this RFP, e~ch respondent acknowledges that it has read, understands, and agrees to the
terms and condit.ions set forth in these instructions. The Joint CCAs reserve the right to reject any offer
that does not comply with these requirements. Furthermore, the Joint CCAs may, in their sole discretion
and without notice; modify, extend, suspend, or terminate this RFP without further obligation or liability to
any respondent. This RFP does not constitute an offer to buy or create an obligation for the Joint CCAs, CEA
or SDCP to enter into an agreement with any party, and the Joint CCAs, CEA and/or SDCP shall not be bound
by the terms of any offer until a duly authorized agreement has been fully executed.
1
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 2 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
RFP Instructions
Standardized Response Template: All respondents must use the standardized response template provided
by Joint CCAs. The Joint CCAs have posted the template on the respective websites of CEA ([insert web
link]) and SDCP ([insert web link]) and will require respondents to independently access and download the
template for response preparation. An ul'lmodified version of the template must be completed in its
entirety based on instructions provided in the template. The Joint CCAs may update the RFP template from
time to time, so respondents are encouraged to periodically visit the respective we sites of CEA and SDCP
to determine if any changes have been posted. Only submittals of the curre tly applicable template will
be reviewed.
Project Eligibility: Each respondent may propose one or more project o ers onforming to the following
eligibility requirements. Failure to meet all of the following project eligibility criteria shall be grounds for
proposal rejection:
i. Resource Location: The point of physical interconnection for any eligi~ {enerator must
be within the California Independent Syste Operator {"CAISO") or directly connected to
and delivering into CAISO. The Joint CCAs tiave a strong preference for physical
interconnection within the area generally termed PlS, as defined by the CAISO. Evaluative
preference will be given to any re ou ce(s) located irectlY, within or within proximity to the
respective member cities of the Joint CCAs.
ii. Product: Offers for bundled PCCl renewable energy should include electric energy, Green
Attributes/Renewable Energy Cre ·ts an Capacit/Attributes. Even though this RFP is
predominantly targeting PCC1 rene able energy supply, the Joint CCAs will also accept
long-term PQC2 rene ab le energy o ers. The Joint CCAs will accept offers for both new
and exist" g renewable generating resources.
iii. Resou ce Eligibility: Al pro os~ generating resources must be certified by the
California Ener~y Commission (.l!GEC" or "Commission") as Eligible Renewable Energy
Resources (or m st eceive CEC certification prior to the commencement of any energy
eliveries proposed ·n the response template), as set forth in applicable sections of the
California ut>l"c Utilit1 s eode ("Code"), which may be amended or supplemented from
time to time. ach respondent shall be responsible for certification of the proposed
resource through the certification process administered by the CEC and shall be responsible
for main,ing such certification throughout the contract term.
iv Ge erating Capacity: Minimum ten (10) megawatts ("MW") AC.
v. Annual Delivery Specifications: Delivered energy volumes reflected in any proposal must
be within the following minimum and maximum annual volumes:
2
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 3 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
I Year I I
I 2021 ·
! 2022 I
2023:
2024 I
2025:
2026 ·
2027: 1---
2028
2029.
Min Deliveries
(MWh)
75,000
100,000
100,000
100,000
100,000
100,000 --·-·-·.---
100,000
100,000
100,000 --------·-------
2030 I 100,000
i
I ➔
I
Max Deliveries
(MWh)
250,000
325,000 .
350,000 I I
350,000 I I I
400,000 I j 400,000 ___ j
450,000 I
I
450,000 I 500,000 .·. ~,' I
soo,ooo· ··· i
vi. Initial Date of Delivery: No sooner than Mc1rcti 1, 2021 and no later'tbanJune 30, 2023.
vii. Term of Agreement: Not less than tert(JQ} years,.~Ornmencing on the Initial Date of
Delivery; not more than twenty (20) years, co11l01eg~d~ion the Initial Date of Delivery.
viii. Proposed Pricing: For bund.led PCCl renewable er'.Jergy, each respondent must propose
two distinct pricing options. first, r:e~pondents musf ioc;lµde a single, flat price for each
MWh of electric energy deliverect, from tl:lj:ICptopqsed resdorce, priced at the generator node
and/or at the SP 15 Trading Hub, as defined by the CAISO [TH_SPlS_GEN-APND]. This
energy price shall include the e~~tgy comrhodity, all Green Attributes/Renewable Energy
Credits related thereto, and (if appli~bl¢fcapacity Attributes. If energy storage is included
in the proposal,. a· separate capac:l~f price ($/KW) for the storage capacity should be
provided. J\II pricing opti~ns shall rell)·ain unchanged throughout the entire contract term
and shall liQt be adju~\:e«;i by periodRi.'1escalators or time of deliver multipliers/factors.
Second, resportct,e11t{rnG~t;~l~,includ~ an index-plus pricing option in which the "plus"
component reff~ijf the price fo 6~ paid for the Renewable Energy Credit, expressed a
f~t/fixed price throughqut the contract term. Alternative pricing options may be proposed
iJ long as the aforementioned pricing requirements have been satisfied. ,' ' ; ~:' ' ~-,, '") > ; '
ix. Point of Delivery: Per the requirements of the Proposed Pricing section, respondents
must providla proposal for the delivery of all electric energy at the generator node;
···;however, respt:)ndents are also strongly encouraged to provide a proposal that includes
·· ~ricing ba~~c,lon delivery of all electric energy to the SP 15 Trading Hub.
x. Scheduling Coordinator ("SC") Responsibilities: The Joint CCAs do not have a strong
preference regarding the assignment of SC responsibilities and will evaluate proposals in
which the Buyer or Seller provide such services.
xi. Minimum Development Progress: To the extent that a proposed generating resource is
not yet commercially operational, documentation substantiating achievement of the
following development milestones must be provided by the respondent for each eligible
generator, including: 1) evidence of site control; and 2) evidence that respondent has
3
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 4 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
submitted a generator interconnection application to the appropriate jurisdictional entity;
provided, however, that if respondent has completed interconnection studies or executed
an interconnection agreement, as applicable, respondent should provide copies of such
materials, including applicable appendices. Such documentation must be provided to the
Joint CCAs at the time of response submittal.
xii. Project Financing Plan: Respondent shall describe its intende financing plan for each
proposed project in sufficient detail for the Joint CCAs to effect1vel evaluate the viability
of such arrangements. To the extent that a responde t anticipates a joint project
ownership structure, this structure shall be clearly a t1culated along with applicable
ownership percentages attributable to each partne ·/ upporting documentation and
discussion shall be provided by each respondent, consistent with the informational
requirements specified in the RFP response template.
As part of the proposed transaction associated with any renewable nergy product, all Environmental
Attributes/Renewable Energy Certificates must be create y an transferred to CEA or SDCP, as
appropriate, via the Western Renewable Energy Generation I formation System ("WREGIS"), or its
successor, without any additional costs or conaitions to CEA or: SDCP. Ea ch respondent shall be
independently responsible for registering its gener: ting roject(s) with REGIS and for maintaining an
active WREGIS account throughout the proposed term of-agreement.
RFP Schedule*
This RFP will be administered in consideration of the following schedule:
RFP Activity
Execution of Contract(s)
June 29th
July 10th no later than 5:00 P.M. PPT
July 24th no later than 5:00 P.M. PPT
To occur between July 27th and August 7th
August 12th
August 13th through November 30th
December 2020/January 2021 -to occur
at duly noticed Board Meetings of CEA and
SDCP
December 2020/January 2021 -to occur
after CEA and SDCP Board approval of the
final contract(s)
*The Joint CCAs reserves the right to change the schedule of these events at any time for any reason.
Respondents may submit questions to the Joint CCAs regarding this RFP process and associated materials
no later than 5:00 P.M. PPT on July 10, 2020. All questions and final proposals should be submitted
electronically to [insert email address] and must include the following subject line: "Questions for the Joint
4
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 5 of 8
2020 Request for Proposals ("RFP"} for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
CCAs' 2020 RFP for Long-Term California RPS-Eligible Renewable Energy". The Joint CCAs will post
responses to all questions on its website after responses have been prepared -the Joint CCAs anticipate
posting such responses by July 14, 2020. Responses to similar questions may be consolidated within the
Joint CCAs' list of posted responses.
The Joint CCAs may submit clarifying questions to certain respondents or conduct interviews, as necessary,
based on information provided in the response template and/or supporting materials included with each
response. The Joint CCAs shall have the right, at the discretion of either CEA and/or SDCP, to request
information without notifying other respondents. The Joint CCAs, CEA and/or SOC shall establish due dates
for responses at the time of each informational request and will directly offy individual respondents if
additional follow-up and/or interviews are necessary during.this process.
Note: only electronic submittals will be accepted; such submittal~must be received by the Joint CCAs no
later than 5:00 P.M. PPT on Friday, July 24, 2020. All respoasesl should be submittea to [insert email
address] and must include the following subject line: "Respons to the Joint CCAs' 2020 RFP for Long-Term
California RPS-Eligible Renewable Energy".
Evaluation of Responses
a. Price
b. Overall quality of response, inclu with RFP
instructions/requirements
c. Project location includiA benefits tot e local economy and workforce
d. Interconnect" n status, including queue position, full deliverability of Resource Adequacy
capacity, ano elated study completion, if\ p licable
e. Siting, zoning and p rm1tting stat s, if a plicable
f. Qualifications of prQJ_ect team
Proposed fin i:icing plan and ownership structure
E vironmental impacts a d related mitigation requirements
Financing plan & financial stability of project owner/developer
Proposed securi obligations
Development milestone schedule, if applicable
I. Supplier diversity
m. Expe ience developing and operating renewable energy projects in California
n. Experience selling renewable energy to CCAs
Contracting
The Joint CCAs plan to negotiate a single form of Power Purchase Agreement ("PPA") with each of the short-
listed suppliers. As part of the short-list notification process, the Joint CCAs will provide each of the short-
listed suppliers with a draft PPA. Contract negotiations will proceed thereafter. After finalizing the PPAs,
CEA and SDCP will each have a single, independent contract form with each of the short-listed suppliers,
5
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 6 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
reflecting the negotiated division of anticipated project capacity/energy volumes to be delivered to each
organization. For example, Prospective Supplier One negotiates a single form PPA with the Joint CCAs;
however, Prospective Supplier One will then enter into two separate contracts, one with CEA, another with
SDCP, through which anticipated project capacity/energy volumes will be arranged with each CCA program.
Disproportionate divisions of project capacity/energy volumes may be requested by CEA and SDCP during
contract negotiation -for example, CEA may request 30% of annual energy deliveries, with SDCP receiving
the remaining 70%. Additional details regarding the desired division of proposed project capacity/energy
volumes will be provided to short-listed respondents and further discussed during contract negotiations.
Confidentiality
All correspondence with the Joint CCAs, including responses to this RFP!will becorne the exclusive property
of CEA and SDCP and will become public record under the California Public Records Act (Cal. Government
Code section 6250, et seq.). All documents sent by respondents to the Joint CCAs may be subject to
disclosure, unless exempt under the California Public Records Act.
In order to designate information as confidential, the respondent must clearly stamp and identify any
designated portion(s) of the response material with the word uconfidential" and provide a citation to the
California Public Records Act supporting confidential treatment 6f;och information. Respondents should
be judicious in designating material as confidential. Oyer-designation,Wpt.Jld include stamping/designating
entire pages, series of pages and/or entire sections as confidential when such material does not require
confidential treatment.
Therefore, any proposal which contains language purporting to render all or significant portions of the
proposal as "Confidential", "Trade Secret" or "Proprietary", or which fails to provide the noted exemption
citation (related to the California Public Records Act} may be considered a public record in its entirety
subject to the procedures described be!ow. Do not mark your entire proposal as "Confidential".
If required by any law, statute, ordinance, a court, governmental authority or agency having jurisdiction
over CEA or SDCP, including the California Public Records Act, CEA and SDCP may release confidential
information, or a portion thereof, as.required by applicable law, statute, ordinance, decision, order or
regulation; In the event that CEA or SDCP are required to release confidential information, the respondent
shall be notified of the required disclosure, such that the respondent may attempt (if it so chooses), at its
sole cost, to cause the recipient of the confidential information to treat such information in a confidential
manner, and to prevent such information from being disclosed or otherwise become part of the public
domain.
The Joint CCAs do notintend to disclose any part of any proposal before it announces a recommendation
for award, based on the understanding that there is a substantial public interest in not disclosing proposals
during the evaluation or negotiation process.
Exclusivity Agreement and Bid Deposit
As part of the short-listing process, the Joint CCAs will require all short-listed bidders to execute a term
sheet, enter into an exclusivity agreement (of no less than 90 days in duration), and post a bid deposit in
6
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 7 of 8
2020 Request for Proposals ("RFP") for Long-Term
California RPS-Eligible Renewable Energy of the
Clean Energy Alliance & San Diego Community Power
the amount of $3,000/MW multiplied by the project's guaranteed capacity. For projects proposing fixed
annual delivery quantities, a similar bid deposit amount (reflective of the overall volume being proposed
to the Joint CCAs) will be calculated by the Joint CCAs and agreed upon with the respondent prior to short-
listing. CEA and SDCP will accept bid deposits in the form of cash or an agreed upon form of a Letter of
Credit. Letter of Credit means an irrevocable standby letter of credit, in a form reasonably acceptable to
CEA and SDCP, issued either by (i) a U.S. commercial bank, or (ii) a U.S. branch of a foreign commercial bank
that meets the following conditions: (A) it has sufficient assets in the U.S. as determined by the Joint CCAs,
and (B) it is acceptable to the Joint CCAs in the Joint CCAs' sole discretion. Theissuing bank must have a
credit rating of at least A-from S&P or A3 from Moody's, with a stable outlook, di~ignation. All costs of the
Letter of Credit shall be borne by the short-listed respondent.
7
June 2020 RFP for Long-Term Renewable Energy
June 26, 2020 Item #2 Page 8 of 8
Item 2: Clean Energy Alliance
Long-Term Renewable Energy
Solicitation
Barbara Boswell, Interim Chief Executive Officer
Kirby Dusel & John Dalessi, Pacific Energy Advisors
6/26/20 CLEAN ENERGY ALLIANCE FINAL 6
Item 2: Long-Term Renewable Energy
Solicitation
• Recommendation
0 1) Review, provide input and approve Request for Proposal for
Long-Term Renewable Solicitation.
0 2) Approve Joint Long-Term Renewable Solicitation with San
Diego Community Power.
6/26/20 CLEAN ENERGY ALLIANCE FINAL 7
Item 2: Long-Term Renewable
RFP: Purpose & Overview
• June 18, 2020 staff introduced the Long-Term Renewables RFP
• Current Solicitation is to seek proposals for projects to meet SB 350
requirements of 65% of state mandated minimum renewable
portfolio standards in long-term contracts of 10-years or more.
• Represents -25% of CEA's energy supply needs
• To meet its minimum 50% renewable energy default product CEA
will need to do additional solicitations
6/26/20 CLEAN ENERGY ALLIANCE FINAL 9
Recommended RFP Schedule
RFP Activity Anticipated Date of Completion
RFP Issuance June 29th
Deadline for Electronic Question Submittal July 10th no later than 5:00 P.M. PPT
RFP Response Deadline July 24th no later than 5:00 P.M. PPT
Follow-up with RFP Respondents, as necessary To occur between July 27th and August 7th
Supplier Notifications (Short-List Selection) August 12th
Contract Negotiations August 13th through November 30th
December 2020/January 2021 -to occur
Joint CCAs Board to Award Contract(s) at duly noticed Board Meetings of CEA and
SDCP
December 2020/January 2021 -to occur
Execution of Contract(s) after CEA and SDCP Board approval of the
final contract(s)
6/26/20 CLEAN ENERGY ALLIANCE -FINAL
Draft RFP Document
• Draft RFP document provided for Board review and comment.
• Final will be revised to remove joint procurement references and adjust
quantities to reflect only CEA's supply need.
6/25/20 CLEAN ENERGY ALLIANCE FINAL 11
Item 2: Long-Term Renewable
Solicitation
Board Discussion
6/26/20 CLEAN ENERGY ALLIANCE FINAL 12
Sheila Cobian
From:
Sent:
To:
Cc:
Subject:
Attachments:
Gretchen Newsom <gnewsom@ibew569.org>
Friday, June 26, 2020 12:45 PM
Cori Schumacher; ehaviland@delmar.ca.us; kbecker@cosb.org
Mike McMahon; ceo@thecleanenergyalliance.org; Clean Energy Alliance Joint Powers Authority;
Micah Mitrosky; luis.amezcua@sierraclub.org; Karl Aldinger; richard.miller@sierraclub.org; Paige
DeCino
Re: Clean Energy Alliance Long-Term Renewable Energy Solicitation
IBEW569-Sierra Club CEA Letter Long-Term Renewables June2020 (1).pdf
Attached is the aforementioned letter sent on June 1st. ·
And to clarify, PLEASE READ AT THE MEETING for Item 2: Clean Energy Alliance Long-Term Renewable Energy
Solicitation the following public comments:
Dear Chair Schumacher and Members of the Board:
We write on behalf of the Sierra Club MyGen Carlsbad Team and over 3,400 members of IBEW 569. Thank you
for holding this meeting. Long-Term Renewable Energy procurement is a major milestone for CEA and the
community and we appreciate this opportunity to comment on the draft RFP document.
On June 1st, we sent a letter outlining our recommendations on CEA Long-Term Renewable Energy
Procurement. As follow-up, we offer the following edits to the draft Long-Term Renewable Energy RFP in the
Board Agenda package:
1. Exclude Category 2 and focus on Category 1 to maximize job creation and greenhouse gas reduction
opportunities. This is consistent with priorities outlined by the CEA Board in previous Board
discussions.
2. Under Evaluation of Responses: separate bullet c into three distinct bullets: Project Location; Benefits
to the Local Economy; Benefits to the Local Workforce.
Finally, we request the Board to direct staff that prior to releasing any future Long-Term Renewable Energy
solicitations, CEA will adopt an Inclusive and Sustainable Workforce Policy and a Bid Evaluation Criteria policy.
We have offered policy framework recommendations for both in our June 1st and June
19th communications.
Thank you,
Mike McMahon
Sierra Club Carlsbad, MyGen Team
and
Gretchen Newsom
Political Director/ Organizer
IBEW 569
4545 Viewridge Avenue, Ste 100
San Diego, CA 92123
858-569-8900 office
619-208-4853 cell
www.ibew569.org
From: Gretchen Newsom
Sent: Friday, June 26, 2020 12:40 PM
To: cori.schumacher@carlsbadca.gov <cori.schumacher@carlsbadca.gov>; ehaviland@delmar.ca.us
<ehaviland@delmar.ca.us>; kbecker@cosb.org <kbecker@cosb.org>
Cc: Mike McMahon <2mmcmahon@gmail.com>; ceo@thecleanenergyalliance.org <ceo@thecleanenergyalliance.org>;
Clean Energy Alliance Joint Powers Authority <secretary@thecleanenergyalliance.org>; Micah Mitrosky
<mmitrosky@ibew569.org>; luis.amezcua@sierraclub.org <luis.amezcua@sierraclub.org>; Karl Aldinger
<karl.aldinger@sierraclub.org>; richard.miller@sierraclub.org <richard.miller@sierraclub.org>; Paige DeCino
<pdecino@hotmail.com>
Subject: Clean Energy Alliance Long-Term Renewable Energy Solicitation
Dear Chair Schumacher and Members of the Board:
We write on behalf of the Sierra Club MyGen Carlsbad Team and over 3,400 members of IBEW 569. Thank you
for holding this meeting. Long-Term Renewable Energy procurement is a major milestone for CEA and the
community and we appreciate this opportunity to comment on the draft RFP document.
On June 1st, we sent a letter outlining our recommendations on CEA Long-Term Renewable Energy
Procurement. As follow-up, we offer the following edits to the draft Long-Term Renewable Energy RFP in the
Board Agenda package:
1. Exclude Category 2 and focus on Category 1 to maximize job creation and greenhouse gas reduction
opportunities. This is consistent with priorities outlined by the CEA Board in previous Board
discussions.
2. Under Evaluation of Responses: separate bullet c into three distinct bullets: Project Location; Benefits
to the Local Economy; Benefits to the Local Workforce.
Finally, we request the Board to direct staff that prior to releasing any future Long-Term Renewable Energy
solicitations, CEA will adopt an Inclusive and Sustainable Workforce Policy and a Bid Evaluation Criteria policy.
We have offered policy framework recommendations for both in our June 1st and June
19th communications.
Thank you,
Mike McMahon
Sierra Club Carlsbad, MyGen Team
2
and
Gretchen Newsom
Political Director/ Organizer
IBEW 569
4545 Viewridge Avenue, Ste 100
San Diego, CA 92123
858-569-8900 office
619-208-4853 cell
www.ibew569.org
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content
is safe.
3
JSIERRA
CLUB
June 1, 2020
Clean Energy Alliance
Via Email
Re: Long-Term Renewable Procurement Recommendations
Dear Chair Schumacher and CEA Board Members:
Congratulations on the exciting progress of Clean Energy Alliance (CEA). As you begin to craft the
Long-Term Renewable Procurement Request for Proposals (RFP) document and plan the solicitation
process, we urge you to incorporate the following to help ensure proposals align with CEA priorities
and community values:
1. Align the Solicitation with CEA Inclusive and Sustainable Workforce Policy: Prior to releasing a
Long-Term Renewable Procurement solicitation document, we recommend finalizing the Inclusive
and Sustainable Workforce Policy and ensure the language in the solicitation aligns with this
policy. The Inclusive and Sustainable Workforce Policy should be included as an Attachment to
any solicitation/RFP package so project respondents can plan their project execution, delivery and
workforce needs accordingly.
2. Develop CEA Bid Evaluation Scoring Criteria and Incorporate into the Solicitation Process: Bid
evaluation scoring criteria will send a signal to the market about the types of projects CEA would
like to see proposed. For example, criteria can incentivize projects that are local, sited responsibly
and create good, middle-class jobs and skilled training opportunities. Similar to the workforce
policy, a Bid Evaluation Scoring Criteria policy needs to be finalized and adopted prior to releasing
a solicitation so it can be incorporated into the RFP package and the solicitation process. We
recommend a Bid Evaluation Scoring Criteria framework similar to those used by Clean Power
Alliance and East Bay Community Energy (see attachments).
3. Solicit Category 1 Resources: CEA has discussed an interest in prioritizing Category 1 resources.
We strongly support this approach as the best avenue to maximize greenhouse gas reductions
and job creation and recommend releasing the solicitation as a Request for Proposals for
California Renewable Energy. Here is sample language:
1
"For the purposes of the RFP, renewable energy generation facilities mean any energy sources
that meet the standards required under the California Energy Commission's definitions to be
an eligible Portfolio Content Category 1 Eligible Renewable Resource ("PCC1 "). CEA will only
consider purchasing power from projects that are physically located within the geographic
boundaries of California and must have arrangements to deliver the power to the CA/SO grid."
Thank you in advance for your consideration. We believe these recommendations will be valuable
components of the Long-Term Renewable Procurement solicitation process to help ensure the kinds
of projects and outcomes desired by the community and CEA ratepayers.
Sincerely,
Mike McMahon
MyGen Team Carlsbad
Sierra Club
Jeremy Abrams
Business Manager
IBEW Local 569
CC: Barbara Boswell, Interim CEO
Attachments: Clean Power Alliance Bid Evaluation Criteria
East Bay Administrative Procurement Policy
2