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Home My WebLink About2020-06-18; Clean Energy Alliance JPA; ; Clean Energy Alliance Long-Term Renewable SolicitationClean Energy Alliance JOINT POWERS AUTHORITY DATE: TO: FROM: ITEM 8: Staff Report June 18, 2020 Clean Energy Alliance Board of Directors Barbara Boswell, Interim Chief Executive Officer Clean Energy Alliance Long-Term Renewable Solicitation RECOMMENDATION: Receive report and discuss Clean Energy Alliance (CEA) Long-Term Renewable Energy Solicitation. BACKGROUND AND DISCUSSION: Senate Bill 350 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. Applying the long-term requirement to the state mandated RPS results in the following: 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total RPS Requirement 36% 39% 41% 44% 47% 49% 52% 55% 57% 60% LT RPS Requirement 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% Effective LT RPS (as% of total supply) 23% 25% 27% 29% 30% 32% 34% 36% 37% 39% Applying the long-term RPS percentages calculated above CEA's estimated long-term contract volumes through 2030 are: 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 LT RPS MWh 152,000 250,000 269,000 288,000 307,000 326,000 346,000 365,000 385,000 405,000 General Approach Community Choice Aggregation (CCA) programs have seen success with joint procurements of long-term renewable energy projects. Staff and consultants of CEA and San Diego Community Power (SDCP) have had discussions regarding the benefits of joint procurement related to their respective long-term renewable solicitations. These discussions have led to agreement that administration of a joint RPS solicitation would be advantageous to both agencies. Due to planned launch schedules the two agencies will have their solicitations out in the market at generally the same time, which 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. The solicitation document would address the long-term RPS needs of both agencies and review of responses and evaluation would be administered in a coordinated manner, which may result in shared or independent project participation. In either scenario, two separate supply contracts (one for each CCA) would be required and approved by each Board. Each agency would continue to have the ability to apply evaluation criteria that reflected their individual goals and priorities and neither agency would be required to contract for a project that did not meet their specific criteria and goals. June 18, 2020 Item #8 Page 1 of 3 June 18, 2020 Long-Term Renewable Solicitation Page 2 of 3 Key requirements • Product -Portfolio Content Category 1 and 2 (no unbundled RECS) • Resource Location -Generator must be located within or physically interconnected to the California Independent System Operator with a preference for resources located directly within or near the member communities of CEA and SDCP • Project Size -Minimum 10 Megawatts • Annual Energy Deliveries -Minimum annual deliveries from 75,000 to 100,000 MWh - production roughly equivalent to a 35-45 MW solar generator or a 10-12 MW landfill gas-to- energy generator; Maximum annual deliveries range from 250,000 to 500,000 MWh - production roughly equivalent to a 100-200 MW solar generator or a 30-60 MW landfill gas-to- energy generator • Initial Energy Delivery-No sooner than March 1, 2021; no later than June 30, 2023 Key Evaluation Criteria • Price • Overall quality of response and conformance with requirements • Project location, including benefits to the local economy and workforce • Interconnection status • Siting, zoning and permitting status (applicable to new projects) • Qualifications of project team • Proposed financing plan and ownership structure & financial stability of project owner /developer • Environmental impacts and related mitigation requirements • Proposed security obligations • Development milestone schedule (applicable to new projects) • Supplier Diversity • California development experience • Experience selling renewable energy to CCAs 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) June 18, 2020 Item #8 Page 2 of 3 Participation in San Diego Gas & Electric (SDG&E) RPS Solicitation June 18, 2020 Long-Term Renewable Solicitation Page 3 of 3 SDG&E released a solicitation on May 29th as a seller of RPS-eligible renewable energy. In addition to this planned long-term renewable RFP. The solicitation seeks offers for both long-term and short-term renewable energy products (both of which CEA requires) with responses due June 19. Participation in SDG&E's process is recommended and considered complementary to CEA's jointly administered solicitation. FISCAL IMPACT Long-Term renewable energy requirements and their estimated costs have been accounted for in the current CEA pro-forma scenarios. ATTACHMENTS: None June 18, 2020 Item #8 Page 3 of 3 From: Philip Watts <transformationoflife@yahoo.com> Date: Thu, Jun 18, 2020 at 4:38 PM Subject: Comment for Agenda Item 8 To: secretary@thecleanenergyalliance.org <secretary@thecleanenergyalliance.org> For Kirby Dussel and the Board, Is Pacific Energy Partners able to compare the pricing of electricity generated far away and transmitted over long distances to the pricing of electricity generated locally? Dr. Phil Watts Confidential Information: The information contained in this electronic mail message is confidential information intended only for the use of the individual or entity named above. 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