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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