File #: BC 24-091    Name: Solar Procurement
Type: Budget Committee Status: Agenda Ready
File created: 7/25/2024 In control: Budget Committee
On agenda: 7/31/2024 Final action:
Title: a. Receive a presentation from staff on potential solar projects at Natividad Medical Center at 1441 Constitution Blvd., the ITD building at 1590 Moffett St., County Courthouse at 1200 Aguajito St., and the County Administrative buildings at 168 W. Alisal and 142 W. Alisal and options to move forward; and, b. Provide direction to staff to work with the County's financial advisors on evaluating options for County ownership or a potential power purchase agreement; and, c. Recommend that this item be considered by the Board of Supervisors.
Attachments: 1. BC Report, 2. Solar Economics Analysis, 3. Interconnection Agreement Natividad Medical Center, 4. Interconnection Agreement Detailed Study ITD Building, 5. Interconnection Agreement Monterey Courthouse, 6. Interconnection Agreement Salinas Administrative Building, 7. Government Code Section 4217
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Title
a. Receive a presentation from staff on potential solar projects at Natividad Medical Center at 1441 Constitution Blvd., the ITD building at 1590 Moffett St., County Courthouse at 1200 Aguajito St., and the County Administrative buildings at 168 W. Alisal and 142 W. Alisal and options to move forward; and,
b. Provide direction to staff to work with the County's financial advisors on evaluating options for County ownership or a potential power purchase agreement; and,
c. Recommend that this item be considered by the Board of Supervisors.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Receive a presentation from staff on potential solar projects at Natividad Medical Center at 1441 Constitution Blvd., the ITD building at 1590 Moffett St., County Courthouse at 1200 Aguajito St., and the County Administrative buildings at 168 W. Alisal and 142 W. Alisal and options to move forward; and,
b. Provide direction to staff to work with the County's financial advisors on evaluating options for County ownership or a potential power purchase agreement; and,
c. Recommend that this item be considered by the Board of Supervisors.

SUMMARY:
Solar energy projects in California must comply with the metering policy set by the California Public Utilities Commission. On April 14, 2023, the State transitioned from Net Energy Metering 2.0 (NEM 2.0) to the Net Billing Tariff (NEM 3.0). This shift meant that solar installations submitted to utilities after the April 14, 2023 deadline would have reduced financial benefits than solar projects submitted afterwards. Primarily, credits for energy returned to the grid under NEM 3.0 are reduced. To reserve the ability for the County to participate in NEM 2.0 under the more favorable credits, the County Administrative Office's Sustainability Program worked with ENGIE Inc. to submit interconnection applications to Pacific Gas & Electric in April of 2023 ahead of the NEM 2.0 cutoff period for four high energy use si...

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