HomeMy WebLinkAbout2021-04-22; Clean Energy Alliance JPA; ; Update Regarding County of San Diego Evaluating Options Regarding Community Choice Aggregation and Direction Regarding Offer Letter to Join Clean Energy Alliance4111110,-
CLEAN ENERGYALLIANCE
Staff Report
DATE: April 22, 2021
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 3: Update Regarding County of San Diego Evaluating Options Regarding Community Choice
Aggregation and Direction Regarding Offer Letter to Join Clean Energy Alliance
RECOMMENDATION
1)Receive update regarding County of San Diego evaluating community choice aggregation options.
2)Direct Interim Chief Executive Officer to work with General Counsel to prepare Letter to County of
San Diego in response to the County's letter dated April 18, 2021, and return to CEA Board at its May 27
meeting for approval.
BACKGROUND AND DISCUSSION
At its meeting April 6, 2021, the County of San Diego Board of Supervisors (BOS) adopted revised
Guiding Principles regarding community choice energy (CCE) (Attachment A) and directed staff to
engage in discussions with Clean Energy Alliance and San Diego Community Power and return to the
BOS in August 2021 with options for potential County participation in the two CCE programs.
The approved Guiding Principles are:
1.Prioritize social equity and environmental stewardship.
2.Provide cost competitiveness compared to the incumbent utility.
3.Achieve 100% renewable electricity by 2030; encourage within-County buildout of renewable
energy, battery storage, and energy efficiency programs; and prioritize Category 1 renewable
energy.
4.Support requirements for prevailing wages, as defined in California Labor Code section 1770 et
seq., and skilled and trained workforce, as defined in California Public Contract Code section
2601, for CCE-owned generation, feed-in-tariff, and energy efficiency projects.
5.Encourage the development of an equitable jobs pipeline for individuals from communities of
concern; the use of a bid evaluation policy prioritizing the selection of new local renewable
energy and storage projects; and the workforce development criteria prioritizing the use of
State-certified apprenticeship and proper assignment of work to crafts that traditionally perform
the work, as permitted by applicable law.
6.Limit General Fund Liability.
April 22, 2021
Update Regarding
County of San Diego
Ran 2 of 2
Pursuant to Board direction, County staff met with CEA staff to discuss the current status of CEA, the
County's goals with bringing CCE to its jurisdiction, opportunities for the County to join CEA, and next
steps in support of returning to the County BOS. In a letter dated April 18, 2021 (Attachment B), the
County has requested CEA submit a letter that details how CEA's JPA, policies and other relevant
documents support the County's Guiding Principles and answers other specific questions.
CEA's Joint Powers Agreement (JPA) Section 2.4 addresses the addition of parties. It states any
incorporated municipality, county, or other public agency authorized to be a community choice
aggregator and located within San Diego Gas & Electric (SDG&E) territory may apply to and become a
member of CEA subject to the following conditions:
2.4.1 Adoption of a resolution by a two-thirds vote of the entire Board authorizing
membership in the Authority (CEA);
2.4.2 Adoption by the proposed member of a CCA ordinance as required by Public Utilities
Code Section 366.2(c)(12) and approval and execution of the JPA Agreement and other
necessary program agreements by the proposed member;
2.4.3 Payment of a membership fee, if any, as may be required by the Board to cover CEA
costs incurred in connection with adding the new party; and
2.4.4 Satisfaction of any other conditions established by the Board.
Staff requests Board direction to prepare a response to the County's letter and return the draft letter to
the Board for approval at its May 27, 2021 meeting.
FISCAL IMPACT
There is no fiscal impact by this action.
ATTACHMENTS
Attachment A — County of San Diego Minute Order Updating Community Choice Energy Guiding
Principles
Attachment B — County of San Diego Letter Dated April 18, 2021
Attachment A
COUNTY OF SAN DIEGO
BOARD OF SUPERVISORS
TUESDAY, APRIL 06, 2021
MINUTE ORDER NO. 20
SUBJECT: UPDATING COMMUNITY CHOICE ENERGY GUIDING PRINCIPLES
(DISTRICTS: ALL)
OVERVIEW
Community Choice Energy (CCE) is an energy supply program that allows cities and counties to meet
local energy needs by aggregating the buying power of individual customers within a defined area to
secure alternative energy supplies. The pooling of purchasing power to buy or generate electricity gives
ratepayers the choice of where to purchase their power. Choice and competition are the bedrock of
CCE. Today, there are twenty-three CCEs operating throughout the State, serving more than ten million
customers, including two CCEs in San Diego County.
In 2019, the Board of Supervisors adopted an ordinance stating our intent to join a CCE. The Board also
adopted five Guiding Principles setting County terms to establish a County CCE or to join others in
forming a Joint Powers Authority (WA). However, these Guiding Principles are not reflective of the
ideals of the current board. The Guiding Principles that lead this program should align with our
commitment to renewable energy, good-paying jobs, and environmental and social justice. As such, we
are proposing the adoption of the following Revised Guiding Principles.
Revised Guiding Principles
I. Prioritize social equity and environmental stewardship.
2.Provide cost competitiveness compared to the incumbent utility.
3.Achieve 100% renewable electricity by 2030; encourage within-County buildout of renewable
energy, battery storage, and energy efficiency programs; and prioritize Category 1 renewable
energy.
4.Support requirements for prevailing wages, as defined in California Labor Code section 1770 et
seq., and skilled and trained workforce, as defined in California Public Contract Code section 2601,
for CCE-owned generation, feed-in-tariff, and energy efficiency projects.
5.Encourage the development of an equitable jobs pipeline for individuals from communities of
concern; the use of a bid evaluation policy prioritizing the selection of new local renewable energy
and storage projects; and the workforce development criteria prioritizing the use of State-certified
apprenticeship and proper assignment of work to crafts that traditionally perform the work, as
permitted by applicable law.
6.Limit General Fund Liability.
Today's action revokes the previously adopted County Governance Guiding Principles, replaces them
with the Revised Guiding Principles, and directs staff to discuss the County's potential participation
with a local existing CCE Joint Powers Authority (WA) and return to the Board with options for such
participation based on the Revised Guiding Principles.
APRIL 06, 2021 1
RECOMMENDATION(S)
CHAIR NATHAN FLETC1FIER AND SUPERVISOR TERRA LAWSON-REMER
1.Revoke the previously adopted set of County Governance Guiding Principles and adopt the Revised
Guiding Principles.
2.Direct the Chief Administrative Officer to engage in discussions with the San Diego Community
Power and the Clean Energy Alliance CCE WAs and return to the Board with options for potential
County participation in those CCE JPAs consistent with the Revised Guiding Principles by August
2021.
FISCAL IMPACT
There is no fiscal impact associated with today's recommendations. Prioi. funding was allocated to the
Department of General Services to support the development of the Feasibility Analysis and to support
negotiations with Community Choice Energy providers.
BUSINESS IMPACT
N/A
ACTION:
ON MOTION of Supervisor Fletcher, seconded by Supervisor Lawson Remer, the Board of Supervisors
took action as recommended, revising Guiding Principle 2 to read: "Provide cost competitiveness and
reliability compared to the incumbent utility."
AYES: Vargas, Anderson, Lawson-Remer, Fletcher
NOES: Desmond
State of California)
County of San Diego) §
I hereby certify that the foregoing is a full, true and correct copy of the Original entered in the Minutes
of the Board of Supervisors.
ANDREW POTTER
Clerk of the Board of Supervisors
Signed
by Andrew Potter
APRIL 06, 2021 2
Attachment B
Trauttly, of an trgrr
MARKO MEDVED, PE, GEM DEPARTMENT OF GENERAL SERVICES NICOLE J. ALEJANDRE
GIRECTOR ASSISTANT DIRECTOR
(858) 691-2527 5560 OVERLAND AVENUE. SUITE 410, SAN DIEGO, CA 92123 (858) 694-3885
April 18, 2021
Barbara Boswell
Interim CEO
Clean Energy Alliance
RE: Request for CCE Information
Mrs. Boswell,
On April 6, 2021, the County Board of Supervisors approved a new set of CCE Guiding Principles
and directed County staff to begin discussions with the two recently formed local CCEs (San
Diego Community Power and Clean Energy Alliance) about a possible partnership. To
commence discussions with Clean Energy Alliance, we are writing to formally request information
relevant to our Board of Supervisors' consideration of how to best effectuate its CCE Guiding
Principles.
County staff intends to return to the Board of Supervisors this summer with an analysis of options
for joining one of the existing local CCEs in accordance with the Guiding Principles. This would
allow our Board the opportunity to decide whether the County should join one of the CCEs in
2021, with a launch of unincorporated accounts in 2023. To facilitate this decision, the County
requests the following information.
Please provide information detailing how your Joint Powers Agreement, Board-approved policies,
and any other relevant official documents and Board actions support the following County Guiding
Principles:
Guiding Principles
1.Prioritize social equity and environmental stewardship.
2.Provide cost competitiveness compared to the incumbent utility.
ENERGY & SUSTAINABILITY o ASSET MANAGEMENT o FLEET PROJECT MANAGEMENT FACILITIES OPERATIONS
3.Achieve 100% renewable electricity by 2030; encourage within-County buildout of
renewable energy, battery storage, and energy efficiency programs; and prioritize
Category 1 renewable energy.
4.Support requirements for prevailing wages, as defined in California Labor Code section
1770 et seq., and skilled and trained workforce, as defined in California Public Contract
Code section 2601, for CCE-owned generation, feed-in-tariff, and energy efficiency
projects.
5.Encourage the development of an equitable jobs pipeline for individuals from communities
of concern; the use of a bid evaluation policy prioritizing the selection of new local
renewable energy and storage projects; and the workforce development criteria
prioritizing the use of State-certified apprenticeship and proper assignment of work to
crafts that traditionally perform the work, as permitted by applicable law.
6.Limit General Fund Liability.
In addition, we have the following specific questions:
1.What are your anticipated rate discounts versus SDGE?
2.What is the anticipated "membership fee", if any, that would be required? Are there any
other payment requirements to join?
3.Aside from any payments required in connection with joining the JPA, are there any
current or anticipated payment obligations of JPA Members?
4.What liabilities would the County be expected to incur by joining the JPA?
5.Will you offer the same rate for all members or is there going to be a "newcomers"
rate?
6.Please explain the process and any deadlines for the County to join in 2021?
7.If the County were to join in 2021, how do you anticipate the rollout going in 2023? All
at once or in phases?
8.What functions would County staff be expected to perform after joining the JPA?
9.Please provide your most recent proforma budget.
If possible, please respond with the requested information prior to June 1, 2021. All responses
should be emaileci to Charles.marchesano@sdcounty.ca.gov. Please also feel free to contact me
at (858) 699-3502.
Sincerely,
-7/daA_cZed.a.e-s,
Charley Marchesano
Chief, Energy and Sustainability Program
Department of General Services
County of San Diego
(858) 694-2987 office (858) 699-3502 cell