General

AGENDA Board of Directors Regular Meeting July 16, 2026, 2:00 p.m. City of Industry City Hall Council Chambers 15625 Mayor Dave Way, Industry, CA. 91744 Members of the public can observe the livestream of the meeting via Zoom by clicking: https://us02web.zoom.us/j/82245391862 or telephonically by dialing: 1(669) 900-9128 Webinar ID: 822 4539 1862 This meeting will be held in person. As a convenience for the public, the meeting may also be accessed by Zoom and will be available by computer or telephone audio as indicated above. Because this is an in-person meeting and the virtual component is not required, but rather is offered as a convenience, if there are any technical issues during the meeting, this meeting will continue and will not be suspended. All documents available for public review are on file with the City of Industry City Clerk, located at the 15625 Mayor Dave Way, City of Industry, CA. 91744. Members of the public can provide public comments in writing or orally in person as follows: Written Comments: If you are unable to participate in person and you wish to make a comment, you may submit written comments by 9:00am on the day of the meeting via email to: Secretary@FPH2.org All written comments will be posted online and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. Oral Comments: Members of the public can address the Board in person on items on the agenda at the time the item is being addressed or during Public Comments for topics that are not listed on the agenda. Speakers are limited to three (3) minutes each unless a different time limit is announced. In conformance with the Brown Act, no Board action can occur on items presented during Public Comment. To address the Board regarding an item on the agenda, please fill out a speaker card and submit it to the Board Secretary before the Board Chair announces the item. If you desire to speak during Public Comment, please fill out a speaker card and submit it to the Board Secretary prior to the beginning of the Public Comment section of the agenda. When you are called to speak, please come forward to the podium and state your name. 1 First Public Hydrogen Authority Board Meeting Agenda July 16, 2026 CALL TO ORDER ROLL CALL FLAG SALUTE ACTION ITEMS Prior to action of the FPH2 Board, any member of the public will have the opportunity to address the FPH2 Board on any item listed on the agenda. PRESENTATION Presentation by California Governor’s Office of Business & Economic Development (GO-Biz) – Tyson Eckerle Consent Calendar Item 1: Approve Minutes of June 18, 2026, Regular Meeting RECOMMENDATION Approve the Minutes of June 18, 2026, Regular Board Meeting. Item 2: Receive and File Treasurer’s Report for Period Ended June 30, 2026 RECOMMENDATION Receive and File Treasurer’s Report for period ended June 30, 2026. New Business Item 3: Consider Adoption of a Resolution Rescinding Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the Fiscal Year 2026/27 Budget and Approving the Fiscal Year 2026/27 Budget RECOMMENDATION Adopt Resolution Rescinding Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the Fiscal Year 2026/27 Budget and Approving the Fiscal Year 2026/27 Budget. Item 4: Consider Adoption of Resolution Supporting the Nomination of Eligible Census Tracts for Designation as Opportunity Zones under the Federal Opportunity Zone 2.0 Program RECOMMENDATION 1. Adopt Resolution Supporting the Nomination of Eligible Census Tracts for Designation as Opportunity Zones under the Federal Opportunity Zone 2.0 Program ;and 2. Authorize the Chief Executive Officer, or his designee, to submit the required nomination materials and execute all documents necessary to complete the nomination process in a form approved by the General Counsel 2 First Public Hydrogen Authority Board Meeting Agenda July 16, 2026 Item 5: Chief Executive Officer Update and Board Member Questions Regarding Procurement, Marketing and Outreach, Transportation Services, Safety Protocols, Board Retreat and General Administrative Topics RECOMMENDATION Receive Chief Executive Officer updates on Procurement, Marketing and Outreach, Transportation Services, Safety Protocols and General Administrative Topics. Item 6: General Counsel Update and Questions Regarding First Public Hydrogen Authority Matters RECOMMENDATION Receive update from General Counsel on First Public Hydrogen Authority Matters. Item 7: Board Discussion Regarding First Public Hydrogen Authority Matters. a. Procurement and Contracting Regarding the Acquisition, Sale, Equipment, Hedging, and/or Transportation of Hydrogen Products. b. Establishing, Promoting, and Expanding Policies and/or Programs to Support and Expand Hydrogen Projects and Solutions. RECESS TO CLOSED SESSION Item 8: Pursuant to Government Code Section 54956.8: PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: Chief Executive Officer RECONVENE TO OPEN SESSION GENERAL COUNSEL ANNOUNCEMENT PUBLIC COMMENT If you desire to speak during Public Comment, please fill out a speaker card and submit it to the Board Secretary prior to the beginning of the Public Comment section of the agenda. When you are called to speak, please come forward to the podium and state your name. BOARD MEMBER QUESTIONS/COMMENTS AND REPORTS ON FPH2 RELATED TRAVEL BOARD REQUESTS FOR FUTURE AGENDA ITEMS NEXT MEETING: Regular Board Meeting August 20, 2026, 2:00 p.m. If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”), please contact Secretary@FPH2.org prior to the meeting for assistance. 3 First Public Hydrogen Authority Board Meeting Agenda July 16, 2026  First Public Hydrogen Authority Board of Directors Regular Mee;ng Minutes June 18, 2026, 2:00 p.m. City of Industry, Council Chambers 15625 Mayor Dave Way Industry, CA. 91744 CALL TO ORDER: The regular mee+ng of the First Public Hydrogen Authority (FPH2) was called to order by Chair Parris at 2:18 p.m. ROLL CALL: Board Members Present: Brouwer, Medrano, Peacock, Vasquez, Vice Chair Ruggles, Chair Parris Board Members Absent: Herzberg FLAG SALUTE: Chief Executive Officer Jason Caudle led the flag salute. Presenta(on None. Consent Calendar Item 1: Approve Minutes of May 21, 2026, Regular Mee<ng RECOMMENDATION Approve the Minutes of May 21, 2026, Regular Board Mee<ng. Item 2: Receive and File Treasurer’s Report for Period Ended May 21, 2026 RECOMMENDATION Receive and File Treasurer’s Report for period ended May 31, 2026. Public Comment on Consent Calendar: None Motion by Board Member Medrano, second by Board Member Brouwer, to approve the Consent Calendar. Motion approved unanimously. Public Hearing Item 3: Hold Public Hearing for Purposes of Receiving a Status of First Public Hydrogen Authority Vacancies, Recruitment and RetenSon Efforts Pursuant to AB2561 RECOMMENDATION Conduct the Public Hearing and accept report on the status of First Public Hydrogen Authority vacancies, recruitment and reten<on efforts. The Public Hearing was opened by Chair Parris. CEO Jason Caudle made a presenta+on that First Public Hydrogen Authority has 1 vacant posi+on, however, the posi+on is not proposed to be funded in Fiscal Year 2026/27 and there is not recruitment planned for that posi+on. There were no requests to speak from the public and no ques+ons or comments from the Board. The Public Hearing was closed by Chair Parris. Public Comment on Item 3: None Motion by Board Member Medrano, second by Board Member Brouwer, to accept the report. Motion approved unanimously. New Business Item 4: Consider AdopSon of a ResoluSon Approving the First Public Hydrogen Authority Fiscal Year 2026/27 Budget RECOMMENDATION Adopt resolu<on approving the First Public Hydrogen Authority Fiscal Year 2026/27 Budget. Chief Execu+ve Officer Jason Caudle presented the staff report, highligh+ng that the proposed budget is a balanced budget, reflec+ng contracts that are nearing execu+on and contracts currently executed. Proposed expenditures are lower than the current fiscal year, reflec+ng the decrease in work effort related in standing up FPH2. Following discussion, the Board determined addi+onal review was necessary prior to final adop+on and requested the budget be con+nued to the . Public Comment on Item 4: None Motion by Board Member Peacock, second by Board Member Medrano to continue the budget to the next meeting. Motion approved unanimously. Because adop+on of the FY 2026/27 Budget is con+nued to a future mee+ng, staff recommended approval of a Con+nuing Budget Resolu+on authorizing expenditures necessary for con+nued opera+on of the Authority un+l the annual budget could be considered and adopted. Motion by Board Member Peacock, second by Chair Parris to adopt a resolution authorizing continued operations and expenditures pending adoption of the Fiscal Year 2026/27 Budget at the next Board meeting. Motion approved unanimously. Item 5: Chief Execu;ve Officer Update and Board Member Ques;ons Regarding Procurement, Marke;ng and Outreach, Transporta;on Services, Safety Protocols and General Administra;ve  Topics RECOMMENDATION Receive updates from the Chief Execu+ve Officer on Procurement, Marke+ng and Outreach, Transporta+on Services, Safety Protocols and General Administra+ve Topics. Chief Execu+ve Officer Jason Caudle provided report on the upcoming second aggrega+on. Board member comments included benefit of municipal u+lity; opportuni+es outside of hydrogen; uniqueness and opportuni+es of FPH2. Item 6: General Counsel Update on FPH2 Ma^ers RECOMMENDATION Receive update General Counsel on FPH2 Ma^ers. No report was given. Item 7: Board Discussion Regarding Board Retreat: Topics and Structure Related to Iden9fying Board Vision and Priori9es for the Next Fiscal Year. Board members discussed op/ons for loca/on and possible tours as part of the Board Retreat. Item 8: Board Discussion Regarding First Public Hydrogen Authority MaIers. a. Procurement and Contrac9ng Regarding the Acquisi9on, Sale, Equipment, Hedging, and/or Transporta9on of Hydrogen Products. b. Establishing, Promo9ng, and Expanding Policies and/or Programs to Support and Expand Hydrogen Projects and Solu9ons. Board discussion- none RECESS TO CLOSED SESSION Item 9: Conference with Real Property Nego/ators Pursuant to Government Code Sec/on 549 PROPERTY APN: 3378-001-001 FPH2 Nego+ators: Jason Caudle and Allison Burns Nego+a+ng Par+es: Wen and Mang Huang RECONVENE TO OPEN SESSION GENERAL COUNSEL ANNOUNCEMENT Board gave direc+on to staff and legal counsel, no reportable ac+on was taken. PUBLIC COMMENT None BOARD MEMBER QUESTIONS/COMMENTS AND REPORTS ON FPH2 RELATED TRAVEL. None BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS. None. Chair Parris adjourned the meeting at 3:59 p.m. NEXT MEETING: Regular Board Meeting July 16, 2026. ________________________________ Barbara Boswell Treasurer  STAFF REPORT 7/16/26 JC Date: July 16, 2026 To: Chair Parris and Authority Members From: Barbara Boswell, Treasurer Item 2: Receive and File Treasurer’s Report for Period Ended June 30, 2026 __________________________________________________________________________ Recommendation: Receive and file Treasurer’s Report for period ended June 30, 2026. Fiscal Impact: There is no fiscal impact by this action. Background: This Treasurer’s Report provides the Board with the following unaudited financial information for the period ended June 30, 2026: • Balance Sheet • Statement of Revenues, Expenses and Changes in Net Position • Budget to Actuals Comparison • List of Payments Issued • Open Purchase Orders • Sole Source Agreements • Status of City of Lancaster Promissory Note  Item 2 Treasurer’s Report MONTHLY TREASURER’S REPORT EXECUTIVE SUMMARY As of June 30, 2026 I am happy to present the Monthly Treasurer’s report as of June 30, 2026, which includes the following unaudited reports: • Statement of Net Position • Statement of Revenues, Expenses and Changes in Net Position • Budget to Actuals Comparison • List of Payments Issued • Open Purchase Orders • Sole Source Agreements Executed • Status of City of Lancaster Promissory Note FINANCIAL OVERVIEW As of June 30, 2026, First Public Hydrogen Authority (FPH2) assets totaled $561,491 with $5,988,534 in total liabilities for a net position of ($5,427,043). Through June 30, 2026, FPH2 expended $3,677,549, representing 87% of FPH2 total annual adopted budget and earned $270,530 in revenue. FPH2 start-up funding is through a Promissory Note from City of Lancaster. The total approved Note is $6,600,000 with $1,000,000 currently available. Interest accrues monthly, with a current interest rate of 3.816% and total accrued interest of $218,292. Detailed financial information is presented in the following pages. Please reach out to me at your convenience if you have questions or would like additional information. Barbara Boswell Treasurer 2  Item 2 Treasurer’s Report FIRST PUBLIC HYDROGEN AUTHORITY STATEMENT OF NET POSITION Unaudited As of June 30, 2026 ASSETS Cash Cash & Investments – River City Bank $ 255,541 Lockbox Account – River City Bank 100,000 Total Cash $ 355,541 Other Assets Fixed Assets $ 70,509 Prepaid Expenses 135,441 Total Other Assets $ 205,950 TOTAL ASSETS $ 561,491 LIABILITIES Current Liabilities Accounts Payable $ 171,383 Credit Card Payable (1,025) Employee Benefits Payable (117) Total Current Liabilities $ 170,241 Noncurrent Liabilities Due to City of Lancaster $ 5,818,292 Total Noncurrent Liabilities $ 5,818,292 TOTAL LIABILITIES $ 5,988,534 NET POSITION ($5,427,043) * NOTE: Cash Balance above does not include $1,000,000 remaining available funds from the Lancaster Promissory Note. 3  Item 2 Treasurer’s Report FIRST PUBLIC HYDROGEN AUTHORITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Unaudited Period Ended June 30, 2026 OPERATING REVENUES Consulting Services Income $ 250,000 Interest Income 20,530 TOTAL OPERATING REVENUES $ 270,530 OPERATING EXPENSES Staff Salaries & Benefits $ 1,384,506 Board Stipends 123,200 Operating Materials & Supplies 5,463 Meeting Expenses 4,098 IT Software/Subscriptions 50,581 Professional/Technical Services 1,315,525 Legal Services 463,478 Sponsorships 24,267 Marketing & Outreach 9,794 Dues & Memberships 34,680 Meetings & Conference Registration 1,578 Travel/Mileage Reimbursement 33,543 Insurance 23,614 Utilities 10,948 Building Rent 19,900 Interest Expense 172,374 Furniture & Fixtures 0 TOTAL OPERATING EXPENSES $ 3,677,549 OPERATING INCOME (LOSS) ($3,407,019) 4  Item 2 Treasurer’s Report FIRST PUBLIC HYDROGEN AUTHORITY BUDGET TO ACTUALS COMPARISON Unaudited Period Ended June 30, 2026 AVAILABLE AVAILABLE BUDGET ACTUALS BUDGET $ BUDGET % OPERATING REVENUE $0.00 $268,986 OPERATING EXPENSES Staff Salaries & Benefits $ 1,535,400 $ 1,384,506 $150,894 9.83% Board Stipends 134,000 123,200 10,800 8.06% Materials & Supplies 110,000 5,463 104,537 95.00% Meeting Expenses 50,000 4,098 45,902 91.80% IT Software/Subscriptions 75,000 50,581 24,419 32.56% Professional/Technical 1,500,000 1,315,525 184,472 12.29% Legal Services Services 260,000 463,478 (203,478) (78.26%) Sponsorships 100,000 24,267 75,733 75.73% Marketing & Outreach 80,000 9,794 70,206 87.76% Dues & Memberships 22,000 34,680 (12,680) (57.64%) Meetings & Conferences 15,000 1,578 13,422 89.48% Travel/Mileage 110,000 33,543 76,457 69.51% Insurance 56,000 23,614 32,386 57.83% Utilities 55,000 10,948 44,052 80.09% Building Rent 24,000 19,900 4,100 17.08% Interest Exp 100,000 172,374 (72,374) (72.37%) Furniture & Fixtures 15,450 0 15,450 100.00% TOTAL OPERATING 10,300 EXPENSES $4,241,850 $3,677,549 $564,301 13.30% CHANGE IN NET POSITION ($4,241,850) ($3,408,563) ($833,287) 19.64% 5  Item 2 Treasurer’s Report FIRST PUBLIC HYDROGEN AUTHORITY LIST OF PAYMENTS ISSUED JUNE 2026 Payment Invoice Date Vendor Number Description Amount 6/3/26 Principal 6/1/26 Insurance Premiums $ 403.30 6/3/26 Humana 6/1/26 Dental & Vision Premiums 267.03 6/8/26 City of Lancaster 6/1/26 Board Stipend 1,600.00 6/8/26 Ernesto Medrano 6/1/26 Board Stipend 1,600.00 6/8/26 Jacob Brouwer 6/1/26 Board Stipend 1,600.00 6/8/26 Jared Anderson 0018 Professional Svcs 525.00 6/8/26 KP Public Affairs 7015115 Lobbyist Svcs 5,000.00 6/8/26 Newell Wayne Ruggles 6/1/26 Board Stipend 1,600.00 6/8/26 Robert M. Hertzberg 6/1/26 Board Stipend 1,600.00 6/8/26 Tanya Peacock 6/1/26 Board Stipend 1,600.00 6/8/26 The Bayshore Consulting Group, Inc 1571 Administrative Support Svcs 1,922.25 6/8/26 The Bayshore Consulting Group, Inc 1570 Administrative Support Svcs 10,919.37 6/8/26 The Winter Co. 16581-000344 Administrative Support Svcs 101.25 6/8/26 Vasquez Impact Solutions LLC 6/1/26 Board Stipend 1,600.00 6/8/26 VerdeXchange LLC 734981a Sponsorship 5,000.00 6/8/26 Willson Consulting 150 Professional Svcs 45,342.87 6/10/26 Paychex Payroll Fees 63.75 6/12/26 State Compensation Ins Fund Workers Comp Premium 457.87 6/12/26 Antelope Valley Press Inc. 00095614 Public Hearing Notice Posting 769.12 6/12/26 Infinity Technologies 5615 IT Services 2,719.12 6/17/26 Colonial Insurance Supplemental Ins Premiums 211.79 6/20/26 Paychex Payroll Fees 29.00 6/22/26 Ashley Wegner 6/12/26 Travel Reimbursement 170.00 6/22/26 ENSO Advisory Services, LLC 6/11/26 Professional Svcs 4,000.00 6/22/26 Stradling Yocca Carlson Rauth LLP 431878 Legal Services 1,265.00 6/22/26 Stradling Yocca Carlson Rauth LLP 431879 Legal Services 14,455.00 6/23/26 CaliforniaChoice Benefit Administrators 5148939 Health Insurance Premiums 4,491.89 6/25/26 River City Bank Bank Fees 298.05 6/29/26 Divvy Credit Card Payt 4,193.25 6/30/26 Ashley Wegner 6/16-6/18 Mileage Mileage Reimbursement 145.00 6/30/26 Braun Blaising & Wynne P C 23358 Legal Services 4,045.00 6/30/26 Stradling Yocca Carlson Rauth LLP 432581 Legal Services 55.00 6/30/26 Stradling Yocca Carlson Rauth LLP 432580 Legal Services 1,870.00 6/30/26 Stradling Yocca Carlson Rauth LLP 432582 Legal Services 7,755.00 TOTAL PAYMENTS $ 127,674.91 6  Item 2 Treasurer’s Report FIRST PUBLIC HYDROGEN AUTHORITY LIST OF OPEN PURCHASE ORDERS As of JUNE 30, 2026 Service Service End P.O. Original Remaining Start Date Date Number P.O. Type Vendor Amount Amount 7/1/25 6/30/26 001 Services The Bayshore Consulting Group, Inc $ 240,000.00 $ 74,805.97 7/1/25 6/30/26 002 Services ENSO Advisory Services, LLC 108,000.00 4,000.00 7/1/25 6/30/26 003 Services FTI Consulting, Inc. 180,000.00 17,660.00 1/13/25 6/30/26 004 Services Hall Energy Law PC 58,935.00 50,092.50 3/19/25 7/1/26 005 Services The Winter Co. 19,353.00 1,355.25 1/1/25 4/30/26 007 Services Willson Consulting 175,000.00 69,650.00 3/18/25 7/17/26 008 Services Tripepi, Smith & Associates, Inc. 31,582.75 11,478.62 7/3/25 7/3/26 009 Services KP Public Affairs 120,000.00 37,097.00 9/4/25 9/4/26 010 Services Jared Anderson 20,000.00 10,550.00 7/1/25 7/1/26 011 Services Ryan Conover Unlimited LLC 190,000.00 60,000.00 12/15/25 12/14/26 013 Services Pacific Utility Installation Inc. 127,500.00 95,115.14 12/18/25 12/18/26 014 Services Luis Andrino 10,758.00 8,920.00 6/12/25 7/1/26 016 Services Infinity Technologies 20,720.00 17,795.00 3/20/26 7/1/26 017 Services Wyn Parnters LLC 20,000.00 5,000.00 5/21/26 5/21/27 018 Services Hydroplane Ltd 30,000.00 30,000.00 TOTAL OPEN PURCHASE ORDERS $ 1,351,848.75 $ 493,519.48 LIST OF SOLE SOURCE AGREEMENTS EXECUTED JUNE 2026 NOT TO EXCEED VENDOR NAME DESCRIPTION TERM AMOUNT NONE 7  Item 2 Treasurer’s Report First Public Hydrogen Authority Status of City of Lancaster Promissory Note as of June 30, 2026 Orignal Note Amount 1/28/25: $ 2,600,000.00 Amendment 8/12/25: 4,000,000.00 Total Promissory Note Approved: $ 6,600,000.00 Total Drawdowns: $ 5,600,000.00 Interest Accrued: 218,292.40 Balance Owed to Lancaster: $ 5,818,292.40 Drawdowns Available Drawdown Date Amt Balance 1/30/25 $ 2,600,000.00 $ 4,000,000.00 8/27/25 1,000,000.00 3,000,000.00 12/8/25 1,000,000.00 2,000,000.00 3/12/26 1,000,000.00 1,000,000.00 8  STAFF REPORT 7/16/26 JC Date: July 16, 2026 To: Chair Parris and Authority Members From: Jason Caudle, Chief Executive Officer Item 3: Consider Adoption of Resolution Rescinding Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the Fiscal Year 2026/27 Budget and Approving the Fiscal Year 2026/27 Budget ___________________________________________________________________________ Recommendation: Adopt Resolution Rescinding Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the Fiscal Year 2026/27 Budget and Approving the Fiscal Year 2026/27 Budget. Fiscal Impact: Staff proposes a balanced budget for FY 2026/27, as summarized below: Hydrogen Sales Revenue $6,869,760 Cost of Good Sold 4,928,695 Net Hydrogen Sales $1,941,065 Other Operational Revenue 2,775,000 Forecasted Revenue Available for Operations $4,716,065 Proposed Administrative Expenses 3,256,445 Net Results of Operations $1,459,620 Background: At its regular meeting June 18, 2026, the Board was presented with the proposed Fiscal Year 2026/27 budget. At that meeting the Board adopted a Resolution to continue the FY 2025/26 Budget and directed staff to return to the next meeting with the proposed FY 2026/27 Budget for further discussion.  Item 3 Proposed Budget The proposed FY 2026/26 budget represents a significant milestone in FPH2’s lifecycle, as it includes forecasted revenues and cost of goods sold expenses as a result of hydrogen sales. The budget related to hydrogen sales presented reflect further refinement on when sales activity is projected to begin. Staff continues to work diligently to finalize agreements with potential offtakers for supply to be delivered early in the next fiscal year. In addition to the net hydrogen sales, the proposed budget includes revenues generated from professional services agreements in which FPH2 staff is providing consulting services. Revenues and expenditures have been adjusted in the current Proposed Budget to reflect additional services that are being provided. FISCAL YEAR 2026/27 PROPOSED BUDGET Staff proposes a FY 2026/27 Budget that is balanced, with sufficient revenues being generated to cover the proposed expenditures. It represents the first fiscal year where hydrogen sales transactions, both revenue and expenditures, are included in the budget. The following table summarizes the Proposed FY 26/27 Budget compared to the current year adopted budget and forecasted actuals: FY 2025/26 FY 2025/26 FY2026/27 Adopted Budget Forecasted Proposed Budget Revenue Operational Revenue $ 0 $ 519,000 $2,775,000 Net Hydrogen Sales 0 0 1,941,065 Net Revenue Forecast $ 0 $ 519,000 $4,716,065 Admin. Expenditures 4,541,850 3,700,000 3,256,445 Net Results of Operations ($4,541,850) ($3,181,000) $1,459,620 FY 2026/27 Budget forecasts a Net Results of Operations in the amount of $1,459,620. This result is based on generating $2,750,000 in professional services fees, $20,000 in interest income and $1,941,065 in net hydrogen sales. Staff proposes administrative expenditures at $3,256,445, which is $443,555 lower than FY 2025/26 forecasted expenditures. The reduction is being achieved as one-time costs related to standing up the organization in FY 2025/26 will not recur in FY 2026/27. The line-item detail of the proposed administrative budget is presented in the table that follows. 2  Item 3 Proposed Budget CATEGORY/DESCRIPTION PROPOSED AMOUNT Staff Salaries & Benefits $1,145,445 Board Compensation 134,000 Professional/Technical Services 840,000 Legal Services 360,000 Sponsorships 30,000 Marketing & Outreach 10,000 Dues & Memberships 22,000 Travel/Mileage Reimbursement 110,000 Meeting & Conference Registration 15,000 Operating Materials & Supplies 110,000 Meeting Expenses 50,000 Insurance Expense 143,000 IT/Software/Subscriptions 75,000 Rent Expense 12,000 Interest Expense 200,000 TOTAL PROPOSED ADMINISTRATIVE BUDGET $3,256,445 FPH2 startup costs have been funded through a $6.6M Promissory Note from City of Lancaster. To date, FPH2 had drawn down $5.6M of that Note, leaving an available balance of $1.0M. While the proposed budget is balanced, with sufficient forecasted revenues sufficient to cover proposed expenditures, it may be necessary to draw down a portion of the remaining available funds to cover cash flow needs during the coming fiscal year. Adoption of the Resolution authorizes the appropriations and the Chief Executive Officer to implement the budget. Attachment: Resolution Rescinding Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the Fiscal Year 2026/27 Budget and Approving the Fiscal Year 2026/27 Budget 3  FIRST PUBLIC HYDROGEN AUTHORITY RESOLUTION NO. 2026-_____ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE FIRST PUBLIC HYDROGEN AUTHORITY RESCINDING RESOLUTION 2026-004 AUTHORIZING CONTINUED OPERATIONS AND EXPENDITURES PENDING ADOPTION OF THE FY 2026/27 BUDGET AND APPROVING THE FISCAL YEAR 2026/27 ANNUAL BUDGET WHEREAS, the First Public Hydrogen Authority (“FPH2” or “Authority”) is a joint powers agency, formed in December 2024 by the cities of Industry and Lancaster; and WHEREAS, in accordance with Government Code Sections 6508 and 6509, the Authority operates subject to the fiscal policies and procedures of its governing agreement and applicable provisions of California law; and WHEREAS, the Chief Executive Officer submitted a proposed Fiscal Year 2026/27 Annual Budget for Board review and input at its May 21, 2026, Regular Board meeting; and WHEREAS, the Chief Executive Officer submitted the proposed Fiscal Year 2026/27 Annual Budget for Board approval at its June 18, 2026 Regular Board meeting; and WHEREAS, the Board continued the Budget adoption to the July 16, 2026 Board meeting and adopted Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the FY 2026/27 Budget; and WHEREAS, the Board has determined that the Proposed FY 2026/27 Budget provides for the efficient operation of the Authority and supports the public purposes for which the Authority was formed. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the First Public Hydrogen Authority, as follows: Section 1. The Board hereby approved and adopts the Fiscal Year 2026/27 Annual Budget as presented and attached hereto as Exhibit A. Section 2. The amounts specified in the Annual Budget are hereby appropriated for expenditure in accordance with the purposes and activities described therein. Section 3. The Board rescinds Resolution 2026-004 Authorizing Continued Operations and Expenditures Pending Adoption of the FY 2026/27 Budget. Section 3. The Chief Executive Officer is authorized and directed to take all actions necessary to implement and manage the approved budget, including entering into contracts, making expenditures, transferring appropriations between line items when deemed appropriate, and administering funds in accordance with the budget and applicable law. Section 4. This resolution shall take effect immediately upon its adoption. The foregoing Resolution No. 2026-____ was passed and adopted this 16th day of July, 2026, by the following vote: AYES: NOES: ABSENT: APPROVED: ________________________________________ R. Rex Parris Chair First Public Hydrogen Authority ATTEST: ____________________________ Kevin Tonoian, Interim Board Secretary First Public Hydrogen Authority  Exhibit A First Public Hydrogen Authority Fiscal Year 2026/27 Proposed Annual Budget CATEGORY/DESCRIPTION PROPOSED AMOUNT Hydrogen Sales Revenue $6,869,760 Hydrogen Purchases 4,928,695 Net Hydrogen Sales $1,941,065 Professional Services Revenue 2,750,000 Interest Income $25,000 TOTAL FORECASTED REVENUE FOR OPERATIONS $4,716,065 PROPOSED ADMINISTRATIVE EXPENDITURES Staff Salaries $900,280 Health, Dental & Vision Ins 108,000 Life/AD&D Insurance 2,300 Lt/St Disability 4,500 401(a) & RHS Plan Contributions 117,310 Medicare 13,055 Total Salaries & Benefits $1,145,445 Board Compensation 134,000 Professional/Technical Services 840,000 Legal Services 360,000 Sponsorships 30,000 Marketing & Outreach 10,000 Dues & Memberships 22,000 Travel/Mileage Reimbursement 110,000 Meeting & Conference Registration 15,000 Operating Materials & Supplies 110,000 Meeting Expenses 50,000 Insurance Expense 143,000 IT/Software/Subscriptions 75,000 Rent Expense 12,000 Interest Expense 200,000 TOTAL PROPOSED ADMINISTRATIVE BUDGET $3,256,445 NET RESULTS OF OPERATIONS $1,459,620  STAFF REPORT 7/16/2026 JC Date: July 16, 2026 To: Chair Parris and Authority Members From: Jason Caudle, Chief Executive Officer Item 4: Consider Adoption of Resolution Supporting the Nomination of Eligible Census Tracts for Designation as Opportunity Zones under the Federal Opportunity Zone 2.0 Program __________________________________________________________________________ Recommendation: 1. Adopt Resolution No. 2026- _____, supporting the nomination of eligible census tracts for designation as Opportunity Zones under the Federal Opportunity Zone 2.0 Program; and 2. Authorize the Chief Executive Officer, or his designee, to submit the required nomination materials and execute all documents necessary to complete the nomination process in a form approved by the General Counsel. Fiscal Impact: There is no fiscal impact resulting from the adoption of the Resolution. Background: The Federal Opportunity Zone 2.0 Program is designed to encourage private investment in eligible communities through federal tax incentives. As part of the program, the State of California is accepting recommendations for eligible census tracts to be considered for Opportunity Zone designation. The State of California identified eligible census tracts within the Authority's service area that may be nominated under the Federal Opportunity Zone 2.0 Program. Following a review of the eligible census tracts and the program criteria established by the Governor's Office of  Item 4 Adoption of Resolution No. 2026-## Business and Economic Development (GO-Biz), staff recommends nominating the following census tract: • Census Tract 06037901300 Submitting these nominations allows the Authority to participate in California's Opportunity Zone 2.0 designation process and positions the nominated census tract to compete for future private investment. Adoption of the proposed resolution does not guarantee designation, commit the Authority to any financial incentives or expenditures, or approve any future development projects. Attachments: Attachment A - Resolution Supporting the Nomination of Eligible Census Tracts for Designation as Opportunity Zones under the Federal Opportunity Zone 2.0 Program 2  FIRST PUBLIC HYDROGEN AUTHORITY RESOLUTION NO. 2026-_____. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE FIRST PUBLIC SUPPORTING THE NOMINATION OF ELIGIBLE CENSUS TRACTS FOR DESIGNATION AS OPPORTUNITY ZONES UNDER THE FEDERAL OPPORTUNITY ZONE 2.0 PROGRAM WHEREAS, the First Public Hydrogen Authority (FPH2) is commi9ed to promo;ng economic development, a9rac;ng private investment, crea;ng quality jobs, and suppor;ng the long-term vitality of its member communi;es; and WHEREAS, the federal Opportunity Zone 2.0 Program encourages private investment in eligible communi;es through federal tax incen;ves; and WHEREAS, the State of California has iden;fied eighteen (18) eligible census tracts within the City of Lancaster that may be nominated for designa;on under the Opportunity Zone 2.0 Program; and WHEREAS, FPH2 Staff in coordina;on with the City of Lancaster have evaluated the eligible census tracts based on community development priori;es, redevelopment poten;al, infrastructure investments, economic development opportuni;es, and their ability to a9ract future private investment; and WHEREAS, based on this evalua;on, Staff recommends nomina;ng one eligible census tracts for considera;on by the State of California; and WHEREAS, designa;on of a census tract as an Opportunity Zone is subject to review and approval by the State of California and the United States Department of the Treasury, and designa;on does not obligate the FPH2 to provide financial incen;ves, approve any development project, or expend funds. NOW, THEREFORE, THE BOARD OF THE FIRST PUBLIC HYDROGEN AUTHORITY DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: Sec;on 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolu;on by this reference. Sec;on 2. Support of Nomina;ons. The Board of Directors hereby expresses its support for the nomina;on of the census tract iden;fied in Exhibit A for considera;on under the federal Opportunity Zone 2.0 Program. Sec;on 3. Nomina;on Applica;on. The Chief Execu;ve Officer, or his or her designee (collec;vely, the Chief Execu;ve Officer), is authorized to prepare, execute and submit any documenta;on necessary to support the nomina;on of the census tract, iden;fied in Exhibit A, including the required applica;on materials and suppor;ng informa;on requested by the State of California. Sec;on 4. Effec;ve Date of Resolu;on. This Resolu;on shall take effect immediately upon its adop;on. The foregoing Resolution was passed and adopted on this 16th day of July 2026, by the following vote: AYES: NOES: ABSENT: APPROVED: ________________________________________ R. Rex Parris, Chair First Public Hydrogen Authority ATTEST: ____________________________ Board Secretary First Public Hydrogen Authority Exhibit A Recommended Opportunity Zone 2.0 Census Tracts • Census Tract 06037901300  EXHIBIT A Recommended Opportunity Zone 2.0 Census Tracts