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SVCE board adopts formal PPA project-selection policy with workforce and environmental preferences
Summary
The Silicon Valley Clean Energy Board voted to adopt a formal Power Purchase Agreement (PPA) project selection policy that adds workforce, environmental stewardship and local-hire preferences for future renewable procurement while preserving staff flexibility to pursue best-value contracts.
The Silicon Valley Clean Energy (SVCE) Board on Thursday adopted a formal Power Purchase Agreement (PPA) project selection policy that adds explicit workforce standards, environmental stewardship and local-hire preferences to guide future renewable procurement.
The policy, proposed by staff and led in presentation by Bennett Chang, SVCE director of government and legislative affairs, establishes aspirational targets — including a 30% local-hire goal and a 5% workforce-pipeline target — and sets preferences for projects that use prevailing wages, project labor agreements and other workforce standards. Staff told the board the policy will apply to future solicitations and is intended to balance SVCE’s policy priorities with the need to remain competitive in a tight, seller’s market for renewable energy.
Why it matters: SVCE buys energy via long-term PPAs and competes with investor-owned utilities and other load-serving entities. Board members and stakeholder groups said the policy signals to developers the agency’s priorities on jobs, community engagement and minimizing environmental impacts while allowing staff discretion to deliver cost-effective projects.
Staff background and changes adopted: Chang told directors that staff refined the policy after stakeholder input and executive committee direction, adding a greenhouse gas evaluation, clarifying workforce standards and creating the local-hire and workforce-pipeline targets based on regional median data. He said the policy “contains a set of aspirational goals and preferences and will go into effect for all future solicitations.”
Stakeholder views at the meeting: Representatives from Working Partnerships and the CCA Workforce & Environmental Justice Alliance praised the policy and urged staff to ensure earlier-stage projects (projects not yet at entitlement) could demonstrate environmental impact assessments and community engagement and, if so, be eligible for preference points. Louise Auerhan of Working Partnerships said the PPA solicitations “offer a tremendous opportunity to create thousands more of those high road construction careers.” Eric Veum of the CCA workforce alliance urged the board to adopt earlier‑stage provisions used by other CCAs and cited examples incorporated elsewhere.
Board questions and staff responses: Directors pressed staff on enforceability and implementation. Staff said certain stakeholder wording about “earlier stage” projects overlaps with staff’s original language — entitlements and pre-entitlement work were intended to be treated consistently — but staff also warned that some suggested language was high-level and could be difficult for staff to enforce in practice without clear, verifiable milestones. On environmental stewardship preferences, staff said projects must generally meet clear, enforceable criteria (such as an enforceable development agreement or a site within a habitat conservation plan area) to receive preference points.
Vote and next steps: Director Brian Makhachuk moved to adopt the policy as recommended by staff; the motion was seconded and passed by roll call, with the board recording an 11–2 outcome. Staff will apply the policy to future solicitations and report back on implementation and GHG evaluation as projects proceed.
What remains unresolved: Stakeholders asked for explicit scoring rules and clearer language for early‑stage projects’ environmental review and community engagement. Staff said it will continue to consult stakeholders and bring implementation details (including how preferences are applied in requests for offers) into procurement processes.
Sources and provenance: The board packet and staff presentation introduced the policy; discussion and the roll-call vote appear in the meeting transcript. Excerpts of the staff presentation and the motion appear in the transcript between the project introduction and the roll call.
Looking ahead: Staff will use the new policy for future PPA solicitations and return to the board with implementation outcomes and reporting as procurement advances.
