RCEA Receives Clean Audit, Launches Search for New Renewable Energy Projects
The Redwood Coast Energy Authority (RCEA) Board of Directors marked a significant financial milestone during its September 25 meeting, unanimously accepting a clean audit for the 2024 and 2025 fiscal years. The board also took steps to secure the region's energy future by approving a new request for offers (RFO) for long-term renewable power contracts.
Financial Health Affirmed
Auditing firm Baker Tilly delivered an "unmodified" or "clean" opinion on RCEA's financial statements, the highest level of assurance possible. The successful completion of the two-year audit concludes a major effort by the agency to catch up on its financial reporting, having now completed audits covering a six-year period within this calendar year.
"This is a really exciting moment because we have our CCE officially caught up on financial audits," said Lori Bandin, RCEA's Director of Sustaining Finance.
Jodie Dobson, a principal with Baker Tilly, presented the findings remotely. While the audit was clean, she noted two "material weaknesses." The first related to the financial statement closing process, a finding described as common for smaller agencies that rely on external auditors for assistance. The second concerned the agency's allowance for doubtful accounts, which had not been reviewed on a timely basis, leading to a significant adjustment. Dobson confirmed that management has already implemented corrective processes.
The clean report was met with approval from the board. "It's always a pleasure when these are really boring reports," one board member commented, expressing satisfaction with the straightforward and positive outcome.
New Search for Renewable Power
Looking ahead, the board approved launching a new search for long-term renewable energy contracts to help meet its goal of a 100% renewable portfolio by 2030. The request for offers will solicit proposals for up to 100 megawatts of power from state-certified renewable sources, including projects paired with energy storage.
Proposals will be scored based on several factors, with heavy emphasis on project viability, price, and the ability to provide resource adequacy—a measure of guaranteed power availability for the grid. The RCEA will also give preference to projects located in or near Humboldt County and those that offer additional community or environmental benefits.
During public comment, opposition was raised regarding the potential inclusion of biomass projects in the solicitation. Staff noted that it is premature to know if any biomass proposals will be submitted. An ad hoc committee composed of three board members was formed to review the confidential details of the offers received.
Updates on Biomass, Federal Policy, and Local Projects
The board also received its annual report on the Humboldt Sawmill Company (HSC) biomass plant in Scotia, part of an ongoing agreement to ensure transparency. The report included data on the plant's fuel sourcing, energy production, and emissions. Key findings showed a significant decrease in the use of auxiliary diesel fuel for plant startups and that the majority of fuel is sourced from HSC's own forest lands. Community advisory groups continue to discuss the plant's efficiency and air quality monitoring.
Staff also provided an update on federal activities impacting local energy projects. A recent presidential memorandum has led to the withdrawal of federal funding for the Humboldt Bay heavy lift terminal, a critical piece of infrastructure for future offshore wind development. However, the recently signed state budget includes funds to support offshore wind planning and port improvements, which could help offset the federal shortfall.
On a celebratory note, staff announced that the ribbon-cutting for the new Foster Avenue solar project in Arcata has been scheduled for October 7.