Memorandum
Date: February 27, 2024
To: The Honorable Lake County Board of Supervisors
From: Matthew Rothstein, Chief Deputy County Administrative Officer
Subject: (a) Consideration of a Brief Update from Trane US, Inc. (Trane) on the N. Lakeport Firemain Linked Auxiliary Supply/Hydraulic Energy Storage (FLASHES) Projects (Poe Mountain Upper Lake and Hartley Projects); (b) Consideration of a Resolution Authorizing Trane to Develop and Submit Two Microgrid Incentive Program (MIP) Grant Applications, at No Direct Cost to the County (c) Consideration of Agreements for MIP Application Preparation Services
Executive Summary:
As your Board is aware, Trane US, Inc. (Trane) has been diligently working to explore development of a Firemain Linked Auxiliary Supply/Hydraulic Energy Storage (FLASHES) facility, consisting of the Poe Mountain Upper Lake and Poe Mountain Hartley Projects. Your Board has previously expressed strong interest in entering into a Lease Agreement for this project to be sited on County property located in North Lakeport area (Poe Mountain), assuming certain conditions can be met and community benefits conveyed.
Trane indicates next steps in project development require significant expenditures by Trane (expected to be millions of dollars), and there is a chance undertaking those steps will result in one or more discoveries that ultimately render the project non-viable. As you will appreciate, Trane has an interest in the County authorizing application for PG&E Microgrid Incentive Program (MIP) grant funds to partially offset risk capital requirements, thereby reducing the financial risk associated with the project. The applications will be prepared at no direct cost to the County, and any awarded funds would be expected to be conveyed to Trane to partially offset their costs.
Michael Day of Trane will present a brief project update. Staff has also prepared a Resolution. If Adopted by your Board, it would authorize Trane preparing and submitt...
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