RCEA to reconstitute ad hoc panel to vet revised loan terms for 60 MW offshore “CAD demo”

The Redwood Coast Energy Authority on Oct. 23 heard a detailed briefing from project representatives seeking to amend loan terms for a 60‑megawatt floating offshore-wind demonstration known in the meeting record as the “CAD demo.” Project director Michael Jacobson told the board the team is asking RCEA to allow the state funding promise to serve as loan security rather than posting funds in escrow with PG&E, and pushed the agency to reconstitute a prior ad hoc committee to review revised terms.

"We actually haven't posted any money," Jacobson said, describing the agency's prior decision to hold its place in the interconnection queue without releasing funds. He said the state included $4,000,000 for the project in the May revised budget as an initial tranche and that additional tranches estimated at $17,500,000 in successive years would be required to reach a final investment decision. Jacobson listed the project's accounts payable at $1,180,000 and framed refundability and monthly interest payments as essential conditions of any funding path.

Staff told directors the agency had earlier delegated approval of loan terms to an ad hoc committee and recommended resurrecting that group to review the developer's revised draft agreement. Staff said there are two plausible paths: state support could be treated by PG&E as equivalent to state-bonded security (potentially removing a separate posting requirement), or RCEA funds could be used to satisfy PG&E interconnection-security postings; the latter would lengthen the time before RCEA would receive any repayment.

Jacobson described permitting and environmental work still to be completed — including marine-mammal surveys and seabed sampling — and said vessel availability can be a critical timing constraint for studies. He also said the project holds a 60‑MW interconnection in Cluster 14 and that the developer expects PG&E to require roughly $14,000,000 for network and distribution upgrades tied to deliverability.

Board members asked about survey timing and alternatives (including autonomous marine vehicles), whether a battery component was being considered, and the project timeline. Jacobson said the team estimates an optimistic commercial-power date in early 2031 if all funding and permitting align. He also emphasized tribal workforce and apprenticeship efforts and legislative sponsorship for state funding.

After discussion, the board voted to reconstitute the previous ad hoc committee to review the revised loan terms; staff cited prior membership including Director Wu and a chair referenced in the record as Ballard. The motion carried by hand-raise vote.

Next steps: the ad hoc committee will review the revised loan terms and seek written confirmation from the California Energy Commission that state funding can be used to repay RCEA if the agency provides upfront funds or accepts the state's pledge as security. No RCEA funds were posted to escrow at the time of the meeting, per staff.