MEETING of the Community Advisory Committee of the ......COMMUNITY ADVISORY COMMITTEE ITEM 1 MEETING...

MEETING of the Community Advisory Committee of the Clean Power Alliance of Southern California

Thursday, November 19, 2020 1:00 p.m.

SPECIAL NOTICE: Pursuant to Paragraph 11 of Executive Order N-29-20, executed by the Governor of California on March 17, 2020, and as a response to mitigating the spread of COVID-19, the Community

Advisory Committee will conduct this meeting remotely.

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Agenda Page 1

https://zoom.us/j/98426449898mailto:[email protected]:[email protected]:[email protected]://youtu.be/srdKQn9nP2I

Clean Power Alliance Community Advisory Committee November 19, 2020

Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-

related modification or accommodation to participate in this meeting, or who have a disability and wish to

request an alternative format for the meeting materials, should contact the Clerk of the Board at

[email protected] or (213) 713-5995. Notification in advance of the meeting will enable us to

make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.

PUBLIC COMMENT POLICY: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public

comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the

matter is called. Comments on items on the Consent Agenda are consolidated into one public comment

period. As with all public comment, members of the public who wish to address the Committee are

requested to complete a speaker’s slip and provide it to Clean Power Alliance staff at the beginning of the

meeting but no later than immediately prior to the time an agenda item is called.

Each speaker is limited to two (2) minutes (in whole minute increments) per agenda item with a cumulative

total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda,

or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional

information.

CALL TO ORDER AND ROLL CALL GENERAL PUBLIC COMMENT CONSENT AGENDA

1. Approve Minutes from October 22, 2020 Community Advisory Committee Meeting

REGULA R AGENDA

2. Fiscal Year 2019-2020 Financial Statements Update

3. 2020 Clean Energy RFO Update

4. 2021 Proposed Legislative & Regulatory Platform Update

COMMITTEE MEMBER COMMENTS

ITEMS FOR FUTURE AGENDAS

ADJOURN – NEXT MEETING ON DECEMBER 17, 2020

Public Records: Public records that relate to any item on the open session agenda for a regular Committee Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Committee. The public records are available for inspection online at www.cleanpoweralliance.org/agendas.

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mailto:[email protected]://www.cleanpoweralliance.org/

COMMUNITY ADVISORY COMMITTEE ITEM 1

MEETING of the Community Advisory Committee of the

Clean Power Alliance of Southern California

Thursday, October 22, 2020

1:00 p.m.

MINUTES The Community Advisory Committee conducted this meeting in accordance with California

Governor Newsom’s Executive Order N-29-20 and COVID-19 pandemic protocols.

WELCOME AND ROLL CALL

Chair David Haake called the meeting to order at 1:01 p.m. and the Board Clerk conducted roll call.

East Ventura/West LA County Angus Simmons

(Vice-Chair) Remote

East Ventura/West LA County Lilian Teran Mendoza Absent

East Ventura/West LA County Jennifer Burke Remote

San Gabriel Valley Richard Tom Remote

San Gabriel Valley Robert Parkhurst

(Vice-Chair) Remote

West/Unincorporated Ventura County Lucas Zucker Remote

West/Unincorporated Ventura County Steven Nash Remote

South Bay David Lesser Remote

South Bay Emmitt Hayes Remote

Gateway Cities Jaime Lopez Absent

Gateway Cities Genaro Bugarin Remote

Westside Cris Gutierrez Remote

Westside David Haake (Chair) Remote

Unincorporated Los Angeles County Neil Fromer Remote

Unincorporated Los Angeles County Kristie Hernandez Remote

GENERAL PUBLIC COMMENT There were no public comments.

Return to Agenda

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Clean Power Alliance Community Advisory Committee Page 2 of 4 Minutes – October 22, 2020

CONSENT AGENDA

1. Approve Minutes from September 17, 2020 Community Advisory Committee Meeting

2. Rotating Outages Root Cause Analysis 3. COVID-19 Bill Assistance Program Update

Motion: Committee Member Lesser, South Bay Second: Committee Member Gutierrez, Westside Vote: The consent calendar was approved by a roll call vote.

REGULAR AGENDA

4. CPA Power Response Program Update

Tyler Aguirre, Customer Programs Manager, reviewed program history, goals, lessons learned, and next steps for the program, including scaling the program with a scheduled Request for Proposals (RFO) in 2021. In response to Committee Member questions, Ms. Aguirre noted that program requirements and difficulty identifying eligible customers has limited enrollment of commercial customers with electric vehicle charging stations and battery storage systems, which will be addressed going forward. She noted that Olivine provided the bulk of program implementation and Calpine assisted in an administrative role and that these roles may change after the conclusion of the RFP process. Ms. Aguirre noted that CPA hopes to scale the Power Response program to a point where it sees financial returns; and stated that the program has not targeted any specific types of commercial customers but that municipal and industrial customers may be particularly interesting and valuable program participants.

5. Workforce Development Program Options

Rebecca Ferdman, External Affairs Advisor, presented a framework and landscape analysis for evaluating options for deployment of the $1 million clean energy workforce development investment committed by Mohave County Wind Farm, LLC, as part of its 2019 Power Purchase Agreement (PPA) with CPA. Ms. Ferdman described five considerations for evaluation workforce development investment opportunities: workforce skills gaps: gaps in workforce representation; relevance to CPA’s mission; readiness for implementation; and how investments will support pathways to family-sustaining or “high road” jobs for workers. Ms. Ferdman then described four investment categories of workforce development: Academic, Union, Life Skills, and Rapid Skills. She discussed how each category can be assessed against the five considerations listed above and discussed local examples in each category. Lastly, Ms. Ferdman requested feedback from CAC Members on its priorities and preferences for workforce investment based on CPA’s mission and the landscape analysis, that will help inform the Board’s decision making on the investment.

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Committee Members thanked Ms. Ferdman for an exceptional and thorough presentation. Committee Member Lesser inquired about partnerships with workforce development boards; Vice Chair Parkhurst asked for more details on the next steps and how CAC feedback will be used; and Committee Member Burke asked about other Community Choice Aggregators’ (CCAs) workforce development programs. Staff clarified that partnerships with workforce development boards could be explored, however they are not currently listed as potential recipients of funding; and noted that other CCA’s have had smaller funding opportunities for workforce development in the form of grant programs, however CPA has the unique opportunity to make a larger impact in a selected investment area because of the funding amount. Committee Member Nash expressed support for funding a single investment category to ensure a lasting impact; Committee Member Hernandez asked for more information on the recommended opportunities and expressed support for programs promoting readiness skills and the possibility of launching pilot programs; Committee Member Bugarin supported investments that create partnerships with other community programs and demonstrate CPA’s mission to provide local community support. Vice Chair Simmons expressed support for programs that smooth the path into a higher career and are inclusive of rapid skills. Committee Member Gutierrez expressed support for partnerships outside of academia since CPA has already established other programs in that area. Committee Member Zucker added that CPA should leverage its procurement policies to incentivize clean energy developers to hire workers that are part of the programs CPA will fund. Committee Member Burke commented that CPA has the chance to develop unique programs in rapid and life skills, but staff should identify what the metrics for success should be. Chair Haake echoed Committee Member Burke’s comments and thanked Committee Members for their input. Committee Members participated in a live survey and provided the following responses:

COMMITTEE MEMBER COMMENTS None.

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ITEMS FOR FUTURE AGENDAS Vice Chair Parkhurst requested an update on CPA’s educational funding initiatives.

ADJOURN

Chair Haake adjourned the meeting at 2:47 p.m.

Agenda Page 6

Staff Report – Agenda Item 2

To: Clean Power Alliance (CPA) Community Advisory Committee From: David McNeil, Chief Financial Officer Approved by: Ted Bardacke, Executive Director Subject: FY 2019-20 Financial Results Date: November 19, 2020

RECOMMENDATION Receive and file.

ATTACHMENT 1) FY 2019-20 Financial Results Presentation

Return to Agenda

Agenda Page 7

Item 2FY 2019-20 Financial Results

November 19, 2020

COMMUNITY ADVISORY COMMITTEE ITEM 2 – ATTACHMENT 1

Agenda Page 8

CLEAN POWER ALLIANCE

Summary of Financial Results• CPA met its financial objectives in FY 2019-20 and entered the current fiscal year in

sound financial health

• CPA recorded operating revenues of $754 million, increased the net position by $30.6million and added $27 million to the recently created Fiscal Stabilization Fund.

• Equity, consisting of the net position plus the Fiscal Stabilization Fund, increased from$15 million at the beginning of FY 2019-20 to $73.6 million by June 30, 2020

• CPA paid off its bank debt during FY 2019-20 reducing financial leverage and interestexpenses and increased its liquidity (cash plus unused bank lines) from $24.5 million to$92.2 million during the fiscal year

• CPA finished the year within budget limits established by the FY 2019-20 Budget asamended by the Board in June 2020 and met its target of increasing the net position byan amount equal to 4% of revenue.

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Balance Sheet Components, as of June 30:

2020 % Ttl 2019 % Ttl % Ch

Current assetsCash and cash equivalents 56,158,767$ 30.2% 7,258,580$ 5.1% 674%Accounts receivable, net of allowance 65,532,476 35.2% 50,674,048 35.5% 29%Accrued revenue 49,192,550 26.4% 68,779,327 48.2% -28%Market settlements receivable 147,873 0.1% 5,573,657 3.9% -97%Other receivables 348,545 0.2% 357,454 0.3% -2%Prepaid expenses 6,345,580 3.4% 2,024,550 1.4% 213%Deposits 3,232,875 1.7% - 0.0%Restricted cash 4,897,000 2.6% 7,952,000 5.6% -38%

Total current assets 185,855,666 99.8% 142,619,616 99.9% 30%Noncurrent assets

Capital assets, net of depreciation 97,388 0.1% 35,948 0.0% 171%Deposits 188,710 0.1% 128,000 0.1% 47%

Total noncurrent assets 286,098 0.2% 163,948 0.1% 75%Total assets 186,141,764 100.0% 142,783,564 100.0% 30%

ASSETS

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2020 % Ttl 2019 % Ttl % Ch

Current liabilitiesAccounts payable 2,303,802 2% 2,641,021 2% -13%Accrued cost of electricity 86,772,867 77% 89,051,637 70% -3%Other accrued liabilities 3,144,362 3% 2,495,683 2% 26%User taxes and energy surcharges due to other 4,959,748 4% 2,970,637 2% 67%Loans payable to County of Los Angeles 9,945,750 9% - 0%Security deposits from energy suppliers 2,767,200 2% - 0%

Total current liabilities 109,893,729 98% 97,158,978 77% 13%

Noncurrent liabilities 0% 0%Loans payable to County of Los Angeles - 0% 9,835,608 8% -100%Note payable to bank - 0% 19,050,000 15% -100%Security deposits from energy suppliers 2,662,400 2% 750,000 1% 255%

Total noncurrent liabilities 2,662,400 2% 29,635,608 23% -91%Total liabilities 112,556,129 100% 126,794,586 100% -11%

LIABILITIES

Agenda Page 11



2020 % Ttl 2019 % Ttl % Ch

Fiscal Stabilization Fund 27,000,000 -

Investment in capital assets 97,388 0% 35,948 0% 171%Restricted for collateral 4,897,000 11% 7,952,000 50% -38%Unrestricted 41,591,247 89% 8,001,030 50% 420%

Total net position 46,585,635$ 100% 15,988,978$ 100% 191%

DEFERRED INFLOWS OF RESOURCES

NET POSITION

Agenda Page 12


Select Financial Indicators

• CPA reduced leverage (equity to assets) and increased liquidity (days liquidity onhand) as a result of the increase in net position and by holding most surplus assets incash and cash equivalents

• Gross and net margins fell largely because the timing of enrollments in FY 2018-19increased margins beyond normal operating levels. Days sales outstanding as of6/30/2019 were inflated for similar reasons

6/30/2020 6/30/2019 % Ch DescriptionWorking Capital 75,961,937 45,460,638 67% Current Assets less Current LiabilitiesCurrent Ratio 1.69 1.47 15% Current Assets divided by Current LiabilitiesDays Sales Outstanding 31 73 -58% Accounts receivable divided by Sales divided by 365Equity 73,585,635 15,988,978 360% Net Position plus Fiscal Stabilization FundEquity to Assets 40% 11% 253% Equity (Net Position + FSF) divided by Total Assets

Available Cash 56,158,767 7,258,580 674% Total cash less restricted cashAvailable Line of Credit 36,030,000 17,250,000 109% Total Line of Credit less Borrowing and Letters of CreditTotal Liquidity 92,188,767 24,508,580 276% Sum of Available Cash and Line of CreditDays Liquidity on Hand (TTM) 47 12 276% Total Liquidity divided by trailing 12 month expenses divided by 365

Gross Margin 7.0% 12.1% -43% Operating revenue less energy cost divided by operating revenueNet Margin 4.1% 6.3% -35% Change in net position divided by operating revenue

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Budget to Actual Analysis

• Revenue electricity, net was 4% above the Base Budget. Factors increasing electricityrevenue were lower than budgeted opt-outs arising from CPA’s May 2019 enrollment and asmall rate increase in September 2019, offset by increasing bad debt expenses beginning inMarch 2020.

• Operating revenues were reduced by a $27 million transfer to the Fiscal Stabilization Fundpursuant to CPA’s Board approved Fiscal Stabilization Fund Policy

• Other revenues are primarily composed of proceeds from a settlement with SCE

A B C D E F

2019/20 Amended Budget

2019/20 Base Budget 2019/20 Actual

2019/20 Base Budget Variance

(Under) Over

2019/20 Base Budget Variance %

(Under) OverOperating Revenues

1 Revenue - electricity, net 794,725,000$ 743,350,000$ 774,817,064$ 31,467,064$ 4%2 Transfer to Fiscal Stabilization Fund - (27,000,000) (27,000,000) n/a3 Other revenues 10,000 10,000 4,253,050 4,243,050 42431%4 Total Operating Revenues 794,735,000 743,360,000 752,070,114 8,710,114 1%

Agenda Page 14



• Energy procurement costs were 2% above the base budget reflecting lower than budgetedopt outs and higher load, and the over procurement of energy in calendar Q3 2019 resultingfrom data errors coupled with a subsequent drop in energy market prices.

• Energy procurement costs were reduced by the sale of CRRs in the annual auction inNovember 2019 and from lower than budgeted energy prices in calendar Q4 2019 and thefirst half of 2020

• Operating revenue less energy costs (gross margin) was $3.5 million below the Base budgetlargely as a function of the transfer to the Fiscal Stabilization Fund. Reduced gross marginwas offset by operating expenses that were $3.9 million below budget as described in thenext slide

A B C D E F




(Under) Over


(Under) OverEnergy Costs

5 Energy procurement 738,943,000 687,568,000 699,782,409 12,214,409 2%

6 Operating Revenues less Energy Costs 55,792,000 55,792,000 52,287,702 (3,504,298) -6%

Agenda Page 15



• Actual results were within Base Budget for all line items with the exception of Other services.• Staffing was 15% under the Base Budget as a result of delayed hiring and the non utilization of

contingencies. CPA increased staffing from 16 to 29 full time employees during the year

• COVID-19 Bill Assistance totaling $581,000 was netted from operating revenue• Total operating expenditures were 15% below base budget due primarily to non utilization of

contingencies, conservative use of funds, and slow distribution of local program incentives

A B C D E F




(Under) Over


(Under) OverOperating Expenses

7 Staffing 4,646,000 4,852,000 4,147,412 (704,588) -15%8 Technical services 1,677,000 1,777,000 1,470,982 (306,018) -17%9 Legal services 1,099,000 1,195,000 743,848 (451,152) -38%

10 Other services 942,000 539,000 705,397 166,397 31%11 Communications and marketing 248,000 349,000 146,551 (202,449) -58%12 Customer notices and mailing 400,000 300,000 227,268 (72,732) -24%13 Data management services 11,930,000 11,930,000 11,396,227 (533,773) -4%14 Service fees- SCE 2,215,000 2,215,000 1,765,877 (449,123) -20%15 Local Programs 1,450,000 1,450,000 224,000 (1,226,000) -85%22 Covid-19 Bill Assistance (1) 2,000,000 - - 23 General and administration 757,000 757,000 703,535 (53,465) -7%24 Occupancy 414,000 414,000 257,572 (156,428) -38%25 Total Operating Expenses 27,778,000 25,778,000 21,788,670 (3,989,330) -15%

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• Operating income was within 2% of the base budget target• Interest income was lower than budgeted due to lower than planned income and cash flow in

Q3 2019 and falling interest rates beginning in March 2020

• Capital expenditures were lower than budgeted as a result of construction timing pushingleasehold improvements to CPA’s new office into FY 2020-21

• The change in net position represents 4.1% of Operating revenues and was 1.1% over theBase budget

A B C D E F




(Under) Over


(Under) Over26 Operating Income 28,014,000 30,014,000 30,499,032 485,032 2%

Non-Operating and Other Revenues (Expenditures)27 Interest Income 649,000 849,000 361,022 (487,978) -57%28 Finance and interest expense (388,000) (588,000) (241,150) 346,850 -59%29 Depreciation (12,000) (12,000) (22,248) (10,248) 85%30 Total Non-Operating Revenues (Expen 249,000 249,000 97,624 (151,376) -61%

31 Change in Net Position 28,263,000 30,263,000 30,596,657 333,657 1.1%

Other Uses32 Capital outlay 1,074,000 574,000 83,689 (490,311) -85%33 Depreciation (12,000) (12,000) (22,248) (10,248) 85%34 Total Other Uses 1,062,000 562,000 61,441 (500,559) -89%

Change in Fund Balance 27,201,000$ 29,701,000 30,535,215$ 834,215 3%

Agenda Page 17


Thank You! Questions?

Agenda Page 18


To:

From:

Approved by:

Subject:

Date:

Clean Power Alliance (CPA) Community Advisory Committee

Erik Nielsen, Senior Manager, Structured Contracts

Ted Bardacke, Executive Director

2020 Clean Energy RFO

November 19, 2020

RECOMMENDATION Receive and file.

ATTACHMENT 1) 2020 Clean Energy RFO Presentation

Return to Agenda

Agenda Page 19

Item 32020 RFO Update

November 19, 2020


Agenda Page 20


Agenda

• Current CPA Long Term Portfolio

• Summary of 2019 RFOs

• 2020 Procurement Goals and Considerations

• 2020 Clean Energy RFO Overview

• Other Local Long-term Procurement Activities

Agenda Page 21


CPA Current Long-Term Portfolio

Agenda Page 22


Summary of 2019 Request for Offers (RFOs)

2019 Clean Energy RFO

• CPA launched its second Clean Energy RFO in October 2019, with the goal of contracting 1-2 million MWh of renewable energy

• CPA requested offers from renewable and renewable plus storage projects and received a robust response with over 50 offers

• The RFO resulted in ~1.7 million MWh (600 MW) of contracted generation

2019 Reliability RFO

• CPA launched the Reliability RFO in September 2019, with the goal of satisfying the CPUC Integrated Resource Plan (IRP) Procurement Track obligation of 196.9 MW by 2023

• The 2019 Reliability RFO resulted in 200 MW of battery storage capacity in 2021 from two projects, exceeding the IRP procurement target ahead of schedule

Agenda Page 23


2020 Procurement Goals and Considerations

Agenda Page 24


Long-Term Procurement Requirement and Project Timing

• SB 350 requires CPA to secure at least 65% of its RPS obligations through long-term (10+ years) contracts over the 2021-2024 compliance period

• Projects with earlier online dates will help CPA meet its compliance requirement early and reduce compliance risk

• Meeting compliance requirements in the near term allows CPA to become more selective over time in terms of price, location, innovation

• Opportunities to contract with new-build resources with 2021 and 2022 online dates are limited due to development timelines

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SB 350 Compliance

• CPA requires additional procurement to meet its SB 350 requirements:

2021-2024 2025-2027 2028-2030

1 State Mandated RPS per Compliance Period - % of Retail Sales 40% 49% 57%

2 State Mandated % of Mandated RPS (Row #1) to be Contracted Under RPS LT Contracts 65% 65% 65%

3 CPA’s LT RPS Mandate = Row #2 * Row #1 25.9% 32.1% 36.8%

4 RPS Achieved by CPA with Existing LT Contracts 21.7% 32.9% 32.3%

5 Open Position relative to State Mandate (Row 3,4) +Above/ (-) Short -4.2% 0.9% -4.5%

Agenda Page 26


IRP Procurement

01,0002,0003,0004,0005,0006,0007,0008,000

2021 2022 2023 2024 2025 2026

Planned Renewable Generation Procurement (GWh)

Existing LT Contracts SB 350 Compliance Need Addl Planned IRP Procurement

• SB350 procurement is a floor, not a ceiling; procurement targets should consider IRP planning assumptions

Agenda Page 27


Portfolio Diversity is Critical

• CPA’s current portfolio is largely solar; therefore resource diversity will be an important consideration in portfolio selection

• Diversity is critical not just to meet peak load, but to meet off-peak hours as well

Includes effects of storage

Agenda Page 28


2020 Procurement Goals

• Target of 1.5 - 2 million MWh of generation in the 2021-2025 period to meet SB 350 compliance and other procurement objectives

• Focus on near-term online dates, diverse technologies and more storage

2020 Clean Energy RFO Details

• CPA launched its 2020 Clean Energy RFO on October 20th with bids due November 20th. CPA expects to bring contracts to the Board mid-2021.

• Products: RPS generation, RPS plus storage, standalone storage and long-duration storage, and firm/shaped products

• Size: RPS Generation from 5-300 MW, standalone storage from 5-100 MW

• Online: Online date of 12/31/2025 or earlier, with a preference for earlier online dates

2020 Clean Energy RFO Overview

Agenda Page 29


Evaluation Criteria

● Individual projects will receive a rank for each of the following criteria:

Environmental Stewardship

Workforce Development

Quantitative Evaluation

Development Score

Project Location

Benefits to DACs

*Further descriptions of the six criteria are included in the Appendix

Agenda Page 30


Other Local Procurement Efforts

Procurement Effort Description Status

Power Share RFO

• Procurement of new build projects in DACs

• 20% bill discount for eligible customers• Above market costs subsidized by

CPUC

• Launch pending CPUC approval of solicitation materials

Clean Back-Up for Essential Facilities Program

• Storage or solar + storage for critical facilities in each member agency jurisdiction

• Member RFI completed• Engineering consultant

selected and site evaluations underway

Behind the Meter Request for Proposals (RFP)

• Energy and/or capacity purchases from aggregated customer resources

• Evaluating product and contract structures

• Collecting lessons learned

Agenda Page 31


APPENDIX

Agenda Page 32


Development Score

Projects will be ranked from High to Low

● The development score metric is a composite rank based on a number of factors impacting project development risk:

○ Site control

○ Interconnection status

○ Environmental screens

○ Land use and permits

○ Project financing

Agenda Page 33


Environmental Stewardship

Projects are ranked high, medium, neutral, and low based on the following prioritization:

• Demonstrates multiple benefits (provides additional societal, health, economic, water saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy)

HIGH

• Located in an area designated as a preferred renewable energy zone and received required land use entitlement permitsMEDIUM

• Project is located in a high conflict areaLOW

• Project does not demonstrate either preference or avoidance criteria NEUTRAL

Agenda Page 34


Workforce Development

Projects will be ranked high, medium, and low based on the following prioritization:

• The project will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates)

HIGH

• The project does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments

MEDIUM

• The project does not demonstrate prevailing wage, union labor, and targeted hire commitments

LOW

Agenda Page 35


Project Location


• In Los Angeles and Ventura countiesHIGH

• Other counties within CaliforniaMEDIUM

• Out of state projectsLOW

Agenda Page 36


Benefits to Disadvantaged Communities


• Located within a DAC and demonstrates DAC workforce and community development benefits

HIGH

• Project not located within a DAC but can demonstrate DAC benefits and has completed community outreach

MEDIUM

• Project does not demonstrate DAC benefitsLOW

Agenda Page 37


To: Clean Power Alliance (CPA) Community Advisory Committee

From: Gina Goodhill, Director of Policy CC Song, Director of Regulatory Affairs

Approved by: Ted Bardacke, Executive Director

Subject: Proposed 2021 Legislative and Regulatory Policy Platform

Date: November 19, 2020

RECOMMENDATION Receive and discuss proposed 2021 Legislative and Regulatory Policy Platform.

BACKGROUND/DISCUSSION In 2018, CPA Board approved a Legislative and Regulatory Policy Platform to serve as a

framework for CPA’s advocacy and policy efforts. Having a Board-approved platform has

allowed both Board members and staff to pursue actions at the legislative and regulatory

levels in a consistent manner and with the understanding that they are pursuing actions

in the best interest of the organization and its mission, its member agencies, and its

customers. Since its’ approval in 2018, the Policy Platform has been updated

continuously as needed.

As we move into 2021 and responding to feedback from the Legislative & Regulatory

Committee and advice from CPA’s contract lobbyists, staff is proposing additional

changes to the current platform to better align with shifting energy and overall public policy

priorities in California.

The proposed changes reflect:

1) A new emphasis on electrification for both vehicles and buildings; and

2) Specific constituencies that must be part of a just and equitable transition to

cleaner energy resources.

Return to Agenda

Agenda Page 38

COMMUNITY ADVISORY COMMITTEE ITEM 4

3) Policies that promote grid reliability with clean energy resources and phase out

the use of fossil fuels.

ATTACHMENT 1) Proposed 2021 Legislative and Regulatory Policy Platform (Redline)

Agenda Page 39


Proposed 2021 Legislative and Regulatory Policy Platform

Overview and Purpose The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves

as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and

engagement on policy matters of interest to CPA. The Platform allows both Board members

and staff to pursue actions at the local, regional, state and federal legislative and regulatory

levels in a consistent manner and with the understanding that they are pursuing actions in

the best interest of the organization and its mission, its member agencies, and its customers.

The Platform also enables the organization to move swiftly to respond to events in

Sacramento (Legislative / Executive) and San Francisco (California Public Utilities

Commission) and provides guidance to the Executive Director on the support or oppose

positions that should be taken on legislative and regulatory matters that come before the

California Community Choice Association (CalCCA) Board of Directors.

All CPA positions on individual bills are presented to the Board for approval, except during

times of urgency as provided under the protocols approved by the CPA Board of Directors on

June 7, 2018, that allow the Chair, Vice-Chairs, Legislative & Regulatory Committee Chair,

and Executive Director to act on behalf of the organization in urgent advocacy matters.

Policy Principles The Legislative and Regulatory Policy Platform is centered around four basic principles:

1. Protecting CPA’s local control and autonomy by its members, especially with regardsto finances, power procurement, reliability, and local customer programs.

2. Ensuring equal fair treatment of CPA customers unbundled and bundled customersby the CPUC and other state agencies.

3. Supporting recognition that electricity is an essential service and that CPA shouldhave the ability to set electric rates and offer programmatic services that areaffordable and inclusive for all.

4. Pursuing environmental initiatives that exceed prescriptive State mandates, promotethe growth in renewable energy capacity at the local level, encourage clean energyadoption by CPA customers, and reduce fossil fuel dependency.

Agenda Page 40


Policy Platform

1) Local Control, Finance, and Power Procurement

CPA will pursue legislative and regulatory activity that:

a. Supports the authority of CPA and its Board to retain local control over its activities;

b. Supports the protection of CPA’s procurement autonomy;

c. Supports the ability of CPA to maintain control over its financial decisions;

d. Supports the ability of CPA to expand its service offerings and activities in responseto a changing energy landscape;

e. Supports the ability of CPA to access state incentives for its customers and memberagencies; and

f. Supports the ability of CPA to enhance reliability through accelerating the deploymentof energy storage resources, fully valuing behind the meter energy resources, andexpanding the use of demand response.

2) Equitable Treatment of CPA Customers


a. Supports the equal fair treatment of unbundled and bundledCPA customers by theCPUC and the legislature; and

b. Supports the development of a State regulatory environment that is empowering forcommunity-owned energy providers.

3) Ratepayer Advocacy and Social Justice


a. Supports the protection of all ratepayers, particularly low-income customers,disadvantaged communities, and other vulnerable populations in CPA serviceterritory;

b. Supports supplier diversity among CPA’s activities contracting activities and throughwomen-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual,and/or transgender owned business enterprises.

c. Supports workforce development with a focus on new stable, well-paying local jobs,and participation in a just transition to a the low-carbon Green economy;

d. Supports the ability for CPA to set appropriate benchmarks for performancemeasurement using accepted industry standards; and

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e. Supports increased access to clean energy technologies, clean energy andcontracting jobs and clean energy opportunities for low-income people andcommunities of color in CPA service territory.

4) Environmental Leadership


a. Supports the ability of CPA and its members to meet and exceed State goals forgreenhouse gas emissions reductions (e.g. encouraging movement towards 100%renewable energy), climate action planning, and fossil fuel independence Supportsthe ability for CPA to promote growth in renewable energy capacity, resiliency andelectrification at the local level, in a way that is equitable for all customers;

b. Supports the ability for CPA to promote electrification of the transportation sector, andto help implement Governor Newsom’s Executive Order that bans the sale of newinternal combustion engines in light duty vehicles by 2035; and

c. Supports the ability for CPA to promote electrification and the reduction of naturalgas usage in the building sector.

Return to Agenda

End of Document

Agenda Page 42

111920 CAC Agenda1. Approve Minutes from October 22, 2020 Community Advisory Committee Meeting2. Fiscal Year 2019-2020 Financial Statements Update3. 2020 Clean Energy RFO Update4. 2021 Proposed Legislative & Regulatory Platform Update

Item 1 - 10-22-20 CAC Meeting MinutesItem 2 - FY 29-20 Cover SRStaff Report – Agenda Item 2

Item 2.1 - FY 2019-20 Financial ResultsItem 2�FY 2019-20 Financial Results�Summary of Financial ResultsBalance Sheet Components, as of June 30:Balance Sheet Components, as of June 30:Balance Sheet Components, as of June 30:Select Financial IndicatorsBudget to Actual AnalysisBudget to Actual AnalysisBudget to Actual AnalysisBudget to Actual AnalysisSlide Number 11

Item 3 - 2020 Clean Energy RFO Cover SRStaff Report – Agenda Item 3

Item 3.1 - 2020 Clean Energy RFO UpdateItem 3�2020 RFO Update�AgendaCPA Current Long-Term PortfolioSummary of 2019 Request for Offers (RFOs)2020 Procurement Goals and Considerations Long-Term Procurement Requirement and Project TimingSB 350 ComplianceIRP ProcurementPortfolio Diversity is Critical2020 Clean Energy RFO OverviewEvaluation CriteriaOther Local Procurement EffortsAPPENDIXDevelopment ScoreEnvironmental StewardshipWorkforce DevelopmentProject LocationBenefits to Disadvantaged Communities

Item 4 - Legislative and Regulatory Platform Staff reportStaff Report – Agenda Item 4From: Gina Goodhill, Director of PolicyCC Song, Director of Regulatory AffairsApproved by: Ted Bardacke, Executive Director

Item 4.1

MEETING of the Community Advisory Committee of the ......COMMUNITY ADVISORY COMMITTEE ITEM 1 MEETING...

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