SAM board sets Feb. 9 public hearing on proposed 20-year solar-plus-storage PPA with Caldwell Energy

The SAM board on Jan. 26 directed staff to publish notice and hold a public hearing on Feb. 9 to solicit input on a proposed energy services contract with Caldwell Energy for a solar-plus-storage project.

Consultant Rebecca Whetstein of AliBridge Energy Solutions outlined the proposal and why the board must move quickly. She told the board the package contemplates “just under 800 kilowatts DC of solar” paired with battery storage, sold under a 20-year power purchase agreement (PPA) with a 3% annual escalator. Whetstein said the bid analysis showed Caldwell Energy with the most attractive pricing and that, at the pricing modeled, the plant could see roughly $1,300,000 in avoided energy costs over 20 years.

The timing of federal incentives shaped the discussion. Whetstein said a safe-harbor milestone connected to recent federal tax provisions requires owners to have at least 5% of total capital costs expended before July 4, 2026, to preserve enhanced tax benefits. That timeline prompted questions about whether the project could meet the milestone on the proposed site and whether alternative locations on the plant property could reduce permitting risk.

Multiple board members and a city representative raised environmental and permitting concerns about siting the arrays on a parcel designated as conservation land near Half Moon Bay. Public commenter Jimmy Benjamin, who said he provided a 2016 habitat assessment, warned that coastal protections and geologic-hazard and habitat issues complicate development on that parcel and encouraged further review.

Legal counsel advised the board that a public hearing is a statutory prerequisite under Government Code section 4217 for an energy services contract; counsel also said the contractor would likely complete CEQA work (initial study or IS/MND) but that the board must avoid making irretrievable commitments until environmental review and required findings are complete.

Board members urged staff and the consultant to examine alternative on-site locations — rooftops, parking areas, or other paved surfaces — and to work with Caldwell and the other bidders on lower-impact designs and permitting strategies. Several members said they supported pursuing solar in principle but were reluctant to proceed on the Half Moon Bay parcel without further environmental analysis and local consultation.

Despite concerns, the board voted unanimously to set the public hearing and direct staff to post notice and circulate materials two weeks before Feb. 9. Staff said the hearing will allow the board and staff to receive public comments and decide whether the proposed procurement and any necessary findings can be completed in a later step.