GOOD AFTERNOON, EVERYONE. AND
WELCOME TO BUDGET SUBCOMMITTEE
NUMBER THREE. WE'RE HERE FOR AN
INFORMATIONAL HEARING ON THE MAY
REVISION, ENERGY PROPOSALS AND
SINCE THIS IS AN INFORMATIONAL
HEARING. ANY MEMBER OF THE
ASSEMBLY IS, OF COURSE, WELCOME
TO PARTICIPATE. BUT WE'VE
SPECIFICALLY INVITED MEMBERS OF
THE ASSEMBLY, UTILITIES AND
ENERGY COMMITTEE TO JOIN THEM.
WE HAVE DR BILL QUIRK AND
ASSEMBLY MEMBER EDUARD BOTH
ASSEMBLYMEMBER'S. QUIRK AND
EDUARDO GARCIA HERE WITH US, AND
WE'RE PLEASED TO HAVE YOU WE'RE
HAVING AN IN PERSON HEARING IN
CAPITAL ROOM FOR 44 TODAY, BUT
MANY OF OUR PANELISTS WILL BE
PARTICIPATING REMOTELY. WE'RE
GOING TO HEAR FIRST, A HIGH
LEVEL INTERVIEW OF THE
ADMINISTRATION'S PROPOSALS,
FOLLOWED BY THE LEGISLATIVE
ANALYST'S OFFICE REMARKS AND
THEN COMMENTS FROM THE REMAINING
PANELISTS. AT THE END OF THE
PRESENTATIONS, WE WILL ALLOW
MEMBERS TO ASK QUESTIONS, SO WE
ACTUALLY HAVE A, UM, OVERVIEW.
OF THE BUDGET PROPOSALS AND THEN
AH, ABOUT A HALF DOZEN
STAKEHOLDER PANELISTS WHO WILL
GIVE COMMENTS AND THEN WE WILL
HAVE MEMBER QUESTIONS AND
COMMENTS. AT THE END OF THE
HEARING THOSE WISHING TO TESTIFY
IN PERSON TO GIVE PUBLIC COMMENT
MAY DO SO AFTER THOSE IN THE
COMMITTEE ROOM HAVE SPOKEN, WILL
ALLOW PHONE TESTIMONY AND THE
PHONE NUMBER TO CONNECT IS ON
THE COMMITTEE WEBSITE. AND
SHOULD BE DISPLAYED DISPLAYED ON
THE SCREEN. IF YOU'RE WATCHING
THIS HEARING ONLINE BUT THE
PHONE NUMBER IS 877692. THE
ACCESS CODE IS 13154. 441315. IF
YOU ENCOUNTER ANY PROBLEMS,
PLEASE CONTACT THE ASSEMBLY
BUDGET COMMITTEE AT 916319. AND
A STAFF MEMBER WILL ASSIST YOU.
THOSE TESTIFYING WILL HAVE UP TO
ONE MINUTE TO SPEAK. PUBLIC
TESTIMONY IS UP TO ONE MINUTE.
WE ENCOURAGE THE PUBLIC TO
PROVIDE WRITTEN TESTIMONY, WHICH
CAN BE EMAILED TO BUDGET SUB
THREE. THAT'S NUMERAL THREE
BUDGET SUB. THREE AT A S M DOT C
A DOT GOV WILL BEGIN NOW WITH
THE PRESENTATIONS AND WE'LL
START WITH. THERESA CALVERT, THE
PROGRAM BUDGET MANAGER FOR THE
DEPARTMENT OF FINANCE, ALONG
WITH AYMAN KNOB AND STAFF
FINANCE. BUDGET ANALYST WITH THE
D O F. WE HAVE A WHOLE
EVERYBODY'S COMING UP AT THE
SAME TIME. SO I THINK IN YOUR
CORRECT ME IF I'M WRONG, WE ALSO
HAVE RACHEL PETERSON, THE
EXECUTIVE DIRECTOR OF THE CP /C
UM DREW BOWEN. EXECUTIVE
DIRECTOR OF CALIFORNIA ENERGY
COMMISSION, AND SIVA GNDA,
COMMISSIONER WITH CALIFORNIA
ENERGY COMMISSION WHO WAS
APPEARING REMOTELY ETHIC RIGHT.
I GET IT RIGHT? UM AND ROSS
BROWN, OF COURSE, IS HERE FROM
THE L A. OH, GOOD TO SEE YOU
ALL. I'LL LET YOU JUST PROCEED.
MAYBE YOU'VE WORKED OUT A
PARTICULAR ORDER IN WHICH YOU
WANT TO DO THIS, BUT YOU CAN
JUST, UM TAKE ABOUT 15 MINUTES
IN TOTAL, PLEASE. AS WE HAVE A
LOT THAT WE WANT TO FIT INTO
THIS APPROXIMATELY TWO HOUR
HEARING. WAIT. LET ME UH TRY
THAT AGAIN. UNVEILED THE
GOVERNOR'S BUDGET, WHICH
INCLUDED $2 BILLION FOR BEING
ENERGY INVESTMENT PLAN TO SPUR
ADDITIONAL INNOVATION AND
DEPLOYMENT OF TECHNOLOGIES AND
HELPING TO FUTURE PROOF OUR
GRADE WHILE CREATING THE JOBS OF
TOMORROW. CALIFORNIA HAS MADE
PROGRESS TOWARD A CLEAN ENERGY
FUTURE, BUT WE NEED TO SPEED UP
THE PACE. EXCUSE ME. COULD YOU
SPEAK A BIT MORE SLOWLY AND
DISTINCTLY? I HAVE A HEARING
PROBLEM AND ALSO THE CLOSER YOU
CAN GET THAT MICROPHONE. THE
BETTER OFF. WE'LL BE IN TERMS OF
HEARING YOU. GOTCHA. THANK YOU.
CALIFORNIA HAS MADE PROGRESS
TOWARD A CLEAN ENERGY FUTURE,
BUT WE NEED TO SPEED UP THE PACE
TOWARD 100% CLEAN ELECTRICITY
WHILE ENHANCING GRID RELIABILITY
AND HELPING MANAGE RISING RATES.
AS REPORTED WIDELY CLIMATE
CHANGE CONTINUES TO CAUSE
UNPRECEDENTED STRESS ON THE
STATE'S ENERGY SYSTEM,
THREATENING RELIABILITY AND
PUTTING CALIFORNIANS AT RISK IF
ADDITIONAL OUTAGES. THAT'S WHY
THE BULK OF THIS $8 BILLION MAY
REVISION PACKAGE PROPOSES 5.2
BILLION TO CREATE IT. STRATEGIC
ELECTRICITY RELIABILITY RESERVE.
TO BRING UP TO 5000 MEGAWATTS OF
NEW STATE OWNED ENERGY PROJECTS
ONLINE. THIS APPROACH INVESTS IN
OUR STATE'S CLEAN ELECTRICITY
FUTURE WITHOUT REQUIRING RATE
PAIRS TO FOOT THE BILL AND
PROVIDE THE BACKSTOP FOR THE
NEXT SEVERAL YEARS AS A NEW
CAPACITY COMES ONLINE AND OLD
PLANTS COME OFFLINE AS PLANNED.
THIS DEMONSTRATES A SET OF STATE
LEADERSHIP ACTIONS THAT WILL
PROVIDE ELECTRICITY, ELECTRICITY
RELIABILITY, WITH AN EYE ON
MITIGATING RATE PRESSURES AND
CONTINUING OUR COMMITMENT TO
ADDRESS THE CLIMATE CRISIS. ON
RATES. THE SECOND BIGGEST PART
OF THE PACKAGE PROVIDES $1.2
BILLION IN DIRECT UTILITY RATE
POWER RELIEF. IN ADDITION TO THE
BILLION PROVIDED LAST YEAR FOR
THE SAME PURPOSE. THERE'S ALSO
970 MILLION FOR SOLAR AND
STORAGE OR THE PRIMARY FOCUS ON
LOW INCOME HOUSEHOLDS. 295
MILLION FOR DEMAND. RESPONSE 250
MILLION FOR ELECTRICITY
TRANSMISSION AND 100 MILLION FOR
CARBON REMOVAL. ALTOGETHER THIS
PROPOSAL IS ANOTHER
DEMONSTRATION THAT CALIFORNIA
WILL CONTINUE LEADING THE FIGHT
AGAINST CLIMATE CHANGE AND TAKE
NECESSARY ACTIONS TO GROW ENERGY
, RELIABILITY AND AFFORDABILITY
DURING THE CLEAN ENERGY
TRANSITION. IN ADDITION TO THE
$8 BILLION ENERGY PACKAGE, THE
MAYOR REVISION ALSO INCLUDES $1
BILLION FOR CLEAN ENERGY
INNOVATION GRANTS FOR CALIFORNIA
BASED COMPANIES AND A VARIETY OF
FUNDING SUPPORT FOR THE STATES'
LITHIUM VALLEY VISION. I WILL
NOW HAND IT OVER TO THE ENERGY
AGENCIES TO DISCUSS THE
PROPOSALS MORE DETAIL. FIRST
EXECUTIVE DIRECTOR RACHEL
PETERSON FROM THE CPC AND THEN
DREW BO HAD FROM THE C E C,
FOLLOWED BY COMMISSIONER GUNNED,
ETC. TO DELVE DEEPER INTO THE
RELIABILITY ISSUES THE STATE IS
FACING. THANK YOU AND CLARIFY MY
EARLIER REMARK ABOUT HOW MUCH
TIME WE HAVE 15 MINUTES FOR
THESE PRESENTATIONS, AND THEN WE
HAVE ALLOTTED AN ADDITIONAL FIVE
MINUTES TO ROSS BROWN FROM THE
LABEL. GOOD AFTERNOON. GOOD
AFTERNOON CHAIR QUIRK, MEMBERS
OF THE COMMITTEE AND
ASSEMBLYMEMBER'S THANK YOU VERY
MUCH FOR THE OPPORTUNITY TO BE
HERE TODAY. MY NAME IS RACHEL
PETERSON. I'M THE EXECUTIVE
DIRECTOR OF THE C P. U. C. AND
MY PORTION THIS AFTERNOON. IT'S
TO SPEAK TO THE AFFORDABILITY
PROPOSALS THAT ARE IN THE MAY
REVISION PACKAGE. THE CPUC, AS
YOU KNOW, HAS AN OBLIGATION TO
ENSURE THAT WHAT UTILITY RATES
IN CALIFORNIA ARE JUST IN
REASONABLE? CALIFORNIA'S
ELECTRIC INVESTOR OWNED
UTILITIES ARE CONFRONTING
MULTIPLE FACTORS WITH THAT ARE
PLACING UPWARD PRESSURE ON
ELECTRIC RATES. UNFORTUNATELY
RATE GROWTH IS EXPECTED TO
OUTPACE INFLATION IN THE COMING
DECADES. OUR FORECASTS SHOW THAT
ELECTRIC BILLS MAY INCREASE FOR
THE AVERAGE RESIDENTIAL
CUSTOMER. BETWEEN 4% TO A LITTLE
OVER 9% PER YEAR UNTIL 2025
DEPENDING ON THE UTILITY. THE
MAJOR COST DRIVERS INCLUDE
WILDFIRE MITIGATION AND ELECTRIC
TRANSMISSION, INVESTMENTS,
TRANSPORTATION, ELECTRIFICATION
, INFRASTRUCTURE AND EXTREME
WEATHER EVENT RELIABILITY
INVESTMENTS. I DO WANT TO START
BY POINTING OUT THAT AS PART OF
OUR STATE'S RECOVERY FROM THE
COVID 19 PANDEMIC IN THE
INTEREST OF AFFORDABILITY, THE
CPUC HAS ALREADY DIRECTED THE
ELECTRIC UTILITIES. TO OFFER
BILLS PAYMENT RELIEF TO MANAGE
THEIR ARREARS. WE WORKED WITH
OUR PARTNERS AT THE CALIFORNIA
DEPARTMENT OF COMMUNITY SERVICES
AND DEVELOPMENT TO ESTABLISH A
REARED FORGIVENESS FOR INCOME
QUALIFIED CUSTOMERS. WE ALSO
ORDERED THE UTILITIES TO
ESTABLISH RESIDENTIAL AND SMALL
BUSINESS PAYMENT PLANS AND HAVE
LAUNCHED A FOUR YEAR PILOT
LIMITING A RARE TO PAYMENTS
BASED ON PARTICIPANT INCOME.
THIS IS ALREADY OFFERED MORE
THAN 700 MILLION IN RELIEF TO
CALIFORNIANS. TURNING TO THE
LONG TERM, LONGER TERM COST
DRIVER PICTURE AND ARE MOUNTING
CONCERN. THE CPUC HAS HOSTED
PUBLIC DIALOGUES, TWO YEARS
RUNNING ABOUT AFFORDABILITY. WE
INVITED STAKEHOLDER ROPOSALS TO
ADDRESS THE GROWING CONCERNS
ABOUT COSTS, AND ONE IDEA
PROPOSED WAS TO ESTABLISH A
FIXED CHARGE ON OUR BASIC
RESIDENTIAL RATE TARIFF, AND IN
ADDITION IN ORDER TO BUILD
TOWARDS EQUITY, THE AMOUNT
CHARGED WOULD PROGRESSIVELY
INCREASED FOR HIGHER INCOME
HOUSEHOLDS. NOW BASED ON THAT
CONTEXT TO TURN TO SOME OF THE
ENERGY PROPOSALS PUT FORWARD IN
THE MAY REVISION, INCLUDING
COSTS FOR ENERGY RESOURCES
PROCURED TO THE STRATEGIC
ELECTRIC RELIABILITY RESERVE.
THESE ARE COSTS THAT MAY
OTHERWISE BE BORN BY ELECTRIC
UTILITY RATE PAIRS. ONE PROPOSAL
THAT IS OF REAL POCKET BUT BOOK
VALUE TO CALIFORNIANS IS THE 1.2
BILLION FOR UTILITY RATEPAYER
RELIEF THROUGH THE PROVEN
CALIFORNIA REARED PAYMENT PLAN
PROGRAM. AS I DISCUSSED WERE
LEADING THREE OTHER PROPOSALS
ADDRESSING AFFORDABILITY, CLEAN
ENERGY AND GRID RELIABILITY,
FIRST REMOVING THE STATUTORY
FIXED CHARGE CAP THAT MAY BE
APPLIED TO THE DEFAULT
PRESIDENTIAL ELECTRIC RATE
TARIFF. SECOND FUNDING FOR THE
DEPLOYMENT OF RESIDENTIAL SOLAR
PV AND ENERGY STORAGE SYSTEMS
AND THIRD ENHANCED PROTECTIONS
FOR STATE ENERGY INSTITUTION
DATA SHARING. I WILL BE HAPPY TO
ANSWER QUESTIONS ABOUT FURTHER
DETAIL ABOUT OUR PROPOSALS. BUT
IN THE INTEREST OF TIME, I'D
LIKE TO THANK THE COMMITTEE
AGAIN FOR HAVING US APPEAR TODAY
AND PASSED TO MY COLLEAGUE DREW
BOWEN FROM THE ENERGY
COMMISSION. THANK YOU. THANK YOU
VERY MUCH. THANK YOU, RACHEL.
PARDON ME AND THANK YOU, CHAIR
AND MEMBERS OF THE COMMITTEE.
IT'S GOOD TO BE BACK BEFORE YOU
AGAIN. TODAY WE'RE I WOULD LIKE
TO TALK TO YOU ABOUT THE FOUR
PROPOSALS FOR FUNDING THAT ARE
IN THE MAY REVISE BUDGET. WE MET
EARLIER AND TALKED ABOUT THE JAN
10 BUDGET. THIS WILL BE FOCUSED
ON MAY REVISE AND THEN THE FINAL
PIECES. I'M GOING TO INVITE OUR
VICE CHAIR VICE CHAIR GUNDA TO
TALK ABOUT AND THOSE ARE
RELIABILITY FOCUSED. HE'S THE
STATE'S RELIABILITY EXPERT. AND
SO HE'LL HANDLE THOSE. BUT I'M
GONNA TAKE YOU JUST VERY QUICKLY
THROUGH THE FOUR FUNDING AREAS
IN THE ASSOCIATED TRAILER BILL
LANGUAGE THAT WE'VE PUT TOGETHER
TO SUPPORT THOSE EFFORTS. THE IN
ADDITION, THERE'S A NUMBER OF
FOLKS FROM THE ENERGY COMMISSION
AND OTHER AGENCIES THAT ARE
AVAILABLE BY WEBEX. SHOULD
QUESTIONS ARISE THAT WE'RE NOT
ABLE TO ANSWER HERE AT THE
DIOCESE. SO THE FIRST OF THESE
PROGRAMS IS WE'RE CALLING THE
CLIMATE INNOVATION PROGRAM. IT'S
$1.5 BILLION. AND IT'S JUST
SUPPORT R AND D TECHNOLOGIES
THAT HELP CALIFORNIA ACHIEVE OUR
CLIMATE GOALS. IT'S VERY CLIMATE
FOCUSED. IT'S A COMPLIMENT TO
THE EPIC PROGRAM THAT WE'VE BEEN
MANAGING FOR YEARS. AND IN THE
LAST 10 YEARS THAT WE'VE MANAGED
EPIC, WE'VE INVESTED ABOUT A
BILLION DOLLARS. AND THAT HAS
LED TO $7.8 BILLION IN FOLLOW ON
FUNDING, SO OUR INVESTMENTS PUT
A STAMP OF APPROVAL ON PROJECTS
AND THEY DRAW OTHER MONEY INTO
CALIFORNIA TO FUND FUND THESE
EFFORTS. THIS EFFORT A LITTLE
DIFFERENT BECAUSE EPIC IS
CONFINED TO THE IOU TERRITORIES
, WHEREAS THIS PROGRAM WOULD BE
STATEWIDE. IN ADDITION, IT HAS A
NARROWER FOCUS. IT'S REALLY
LOOKING AT TRANSPORTATION,
LITHIUM OFFSHORE WIND. IT WILL
PROVIDE FEDERAL MATCH FUNDING
FOR THE VARIOUS PARTS OF FEDERAL
MONEY THAT ARE AVAILABLE TO
CALIFORNIANS, AND IT HAS SOME
SPECIAL REQUIREMENTS THAT
RECIPIENTS, UNLIKE WITH THE EPIC
PROGRAM FOR THIS PROGRAM WOULD
NEED TO BE HEADQUARTERED IN
CALIFORNIA. AND THEY NEED TO
REMAIN IN CALIFORNIA FOR 10
YEARS. AND IF THEY SUCCEED, AND
WE DEFINE WHAT SUCCEED MEANS IN
THE IN THE STATUTE, THEN THEY
HAVE TO REPAY THEIR LOAN, PLUS
15 TO 20% OVER AND ABOVE THE
FUNDING THAT THEY RECEIVED.
SECOND PROGRAM $100 MILLION FOR
CARBON REMOVAL. THESE FUNDS WILL
ADVANCE DIRECT AIR CAPTURE
TECHNOLOGIES THAT MECHANICALLY
REMOVED 02 FROM THE ATMOSPHERE.
IN ADDITION, THIS WILL LEVERAGE
A WHOLE SLEW OF DOLLARS FROM THE
FEDERAL GOVERNMENT. THERE'S
ABOUT $12 BILLION AVAILABLE FOR
CARBON CAPTURE IN THE I J AND
THE FEDERAL INVESTMENT ACT. AND
ABOUT 3.5 OF THOSE ARE DIRECTED
TOWARD, UH DIRECT AIR CAPTURE,
SO WE WOULD SEEK THESE FUNDS FOR
THAT SAME PURPOSE FOR DIRECT AIR
CAPTURE, NOT FOR SEQUESTRATION
UNDERGROUND, NOT FOR CAPTURE
FROM SMOKESTACKS, BUT JUST
DIRECT AIR CAPTURE. THIS IS
SOMETHING THAT'S CUTTING EDGE.
THERE'S NOT A LOT OF RESEARCH
OUT THERE CALIFORNIA AS AN
OPPORTUNITY TO BECOME THE LEADER
IN THE WORLD, AND THIS TOPIC, WE
THINK IT'S A GREAT OPPORTUNITY.
IN ADDITION, WE'D LIKE TO SEE AS
MANY OF THOSE $3.5 BILLION FOR
DIRECT AIR CAPTURE COMING OUR
WAY AND WE CAN USE SOME OF THESE
FUNDS TO MATCH EFFORTS BY OTHERS
IN THE STATE. SORRY TO
INTERRUPT, JUST TOO CURIOUS.
WHAT HAPPENS TO THE CARBON AFTER
YOU CAPTURED IN THE AIR. WELL
IT'S INTERESTING. THERE'S A
NUMBER OF DIFFERENT THINGS THAT
CAN BE DONE WITH IT. COMMON ONE
IS TO EMBED IT IN THINGS LIKE
CONCRETE. OKAY THAT'S THE THAT'S
THE PROTOTYPICAL EXAMPLE. BUT
THERE'S PLENTY OF OTHER THINGS
WE WANT TO LOOK AT. THE TRICK IS
TO GET THE COST DOWN BECAUSE
IT'S LESS COSTLY TODAY TO GRAB
THAT C 02 FROM A SMOKESTACK.
IT'S MORE EXPENSIVE TO PULL IT
OUT OF THE AIR. THE ADVANTAGES
YOU CAN DO IT ANYWHERE BECAUSE
THEIR C 02 EVERYWHERE, FAIRLY
EVENLY DISTRIBUTED. SO THAT'S
THAT PROGRAM. OF THIRD IS $5
MILLION FOR OUR STATEWIDE ENERGY
DATA REPOSITORY. WE HAVE BUILT A
MASSIVE DATABASE AT THE
CALIFORNIA ENERGY COMMISSION. IT
HAS ALL OF THE USER INFORMATION
FROM THROUGHOUT CALIFORNIA. IT'S
ALL COMPLETELY SECURE. BUT IT
ALLOWS US TO DO RESEARCH INTO
ALL MANNER OF QUESTIONS ABOUT
WHAT'S HAPPENING IN CALIFORNIA.
WHAT ARE THE TRENDS AND SO
FORTH? AND SO WE NEED TO BRING
ON SOME CONSULTANTS TO HELP US
BUILD? BUILD THIS OUT? WE'VE GOT
TO BUILD, BUT NOW WE'VE GOT TO
REALLY TAILOR MAKE IT TO VARIOUS
INQUIRIES THAT WE CAN. WE CAN
USE THIS TOOL TO MAKE AND THEN,
FINALLY IN TERMS OF FUNDING IS
LITHIUM DEVELOPMENT. AND WE'RE
SEEKING A TOTAL OF $380 MILLION
GO THROUGH THROUGH THIS VERY,
VERY QUICKLY, AND IT'S TO
SUPPORT DEVELOPMENT IN LITHIUM
VALLEY. THIS IS A TREMENDOUS
OPPORTUNITY FOR CALIFORNIA
GENERALLY AND FOR THE IMPERIAL
VALLEY. SPECIFICALLY. BUT ANY
DEVELOPMENT WE DO HAS GOT TO BE
DONE RIGHT. WE HAVE BEEN WORKING
VERY CLOSELY WITH LOCAL GROUPS
AND COMMUNITY GROUPS, AND
THEY'VE MADE IT CLEAR THAT THIS
REALLY NEEDS TO BE DONE
THOUGHTFULLY. WE NEED TO GET
INPUT FROM EVERYONE AND WE'RE AT
THE ENERGY COMMISSION. QUITE
GOOD AT THAT. WE PRIDE OURSELVES
ON BEING VERY WE LISTEN AND WE
LEARN, AND WE OFTEN CHANGE WHAT
WE DO BASED ON WHAT WE LEARNED
VERY QUICKLY. $5 MILLION IS USED
TO SUPPORT THE COUNTY AND
EFFORTS IN THE COUNTY. I WON'T
GO INTO ALL OF IT. BUT A LARGE
CHUNK OF IT IS FOR THE
ENVIRONMENTAL REVIEW ASSOCIATED
WITH SOME OF THESE LITHIUM
EXTRACTION PROJECTS IN THE
IMPERIAL VALLEY. ANOTHER CHUNK
WOULD BE FOR THE COUNTY TO HIRE
AN OMBUDSMAN PERSON AND TO DO
COMMUNITY OUTREACH AND THEN
800,000 WILL BE SPECIFICALLY FOR
GRANTS TO LOCAL COMMUNITY GROUPS
SO THAT THEY CAN HAVE THE
WHEREWITHAL TO PARTICIPATE IN
THESE IN THESE OUTREACH EFFORTS
THAT WE'RE DOING AND HELP US
UNDERSTAND HOW WE CAN
ACCOMMODATE THIS KIND OF
ACTIVITY IN THAT PART OF THE
STATE AND THE BEST WAY POSSIBLE.
45 MILLION WOULD BE USED TO
EXPAND TAX INCENTIVES FOR
LITHIUM PRODUCTION. ANOTHER 80
MILLION WOULD BE TO EXPAND
TRAINING. IT'S SAN DIEGO STATE.
THE BRAWLEY CAMPUS. UM AND
FINALLY, $250 MILLION WOULD BE
USED TO LEVERAGE, UH, FINANCING
TOOLS THAT CAN HELP ACCOMMODATE
AGAIN. THIS THIS ENTERPRISE OF
EXTRACTING LITHIUM AND THE
FOLLOW ON PRODUCTS THAT COME
FROM THAT. REAL QUICKLY. I'LL
JUST GO THROUGH THE T B L S THE
TRAILER BILL LANGUAGE THAT IS
THE MOST SALIENT. UM ONE THING
AND THIS IS IN YOUR VERY
EXCELLENT STAFF REPORT. BUT UM,
ONE WOULD BE TO INCREASE THE UM
ALLOWABLE. MEGAWATT LIMIT THAT
WE CAN UTILIZE TO DO AN
EXPEDITED PROCEDURE. SO SINCE
1975 ENTITIES THAT WANT TO BUILD
THERMAL GENERATION, WHICH IS ALL
THERE WAS IN ANY SIGNIFICANT
RESPECT IN 1975 WOULD COME TO
THE ENERGY COMMISSION. AND IT
WAS A ONE STOP SHOP. WE WOULD DO
FULL SEQUEL REVIEW. WE CRAFTED A
NARROW EXCEPTION BECAUSE THAT'S
FOR 50 MEGAWATTS AND LARGER AND
WE CRAFTED SOMETHING THAT WE'RE
IF YOUR PROJECT IS BETWEEN 50
AND 100 MEGAWATTS. WE GIVE YOU
THE OPPORTUNITY AS A DEVELOPER,
IF YOU'RE INTERESTED TO EXEMPT
YOURSELF FROM OUR PROCESS, AND
WE CALL THAT THE SPP PROCESS AND
WE WANT TO EXPAND THAT CAP FROM
100, MEGAWATTS 250 MEGAWATTS
BECAUSE WE BELIEVE IT WILL
ACCOMMODATE MORE GEOTHERMAL
DEVELOPMENT DONE IN THAT AREA.
AND POSSIBLY OTHER PARTS OF THE
STATE. THE SECOND AND DIFFERENT
BUT RELATED UH, UM. PROPOSAL IS
TO STREAMLINE THE GEOTHERMAL
PERMITTING SO THE, UH,
CALIFORNIA HAS HAS UM. THE
EXISTING LAW ALLOWS LOCAL
GOVERNMENTS TO REQUEST THAT WE
DELEGATE THE AUTHORITY TO PERMIT
A POWER PLANT TO THEM. WE WOULD
LIKE TO MAKE SOME MODEST CHANGES
TO THAT TO MAKE IT WORK A LITTLE
BIT BETTER. FRANKLY, WE CAN GET
INTO THE DETAILS IF YOU WOULD
LIKE. IN ADDITION, WE THE
TRAILER BILLS WILL ESTABLISH A
PER TON ON LITHIUM EXTRACTION
EXCISE TAX. NOW THE LARGELY
DIRECTED TO LOCAL, LOCAL, UM
LOCAL EFFORTS IN THE IN THE
COMMUNITY. AND TWO FINAL ONES.
ONE IS OPT IN. SO AGAIN SINCE
1975. WE'VE WE'VE HAD THIS
EXCLUSIVE JURISDICTION, BUT IT'S
ONLY BEEN FOR THERMAL. THE
PROPOSAL WOULD BE TO EXPAND IT
FOR ONSHORE WIND FOR SOLAR AND
FOR OTHER RELATED DEVELOPMENTS
LIKE THAT, AND SO A DEVELOPER
COULD SAY, HEY, WE'D LIKE TO GO
TO THE ENERGY COMMISSION AND
HAVE OUR PERMITTING PERMIT
EXAMINED THERE AND THEY CAN DO
THAT. IT WOULD ALSO BE FOR
TRANSMISSION AND FOR FACILITIES
THAT ARE ASSOCIATED WITH LITHIUM
EXTRACTION. AND THESE OTHER
TYPES OF RENEWABLE ENERGY. I
JUST QUOTE FROM THE ASSEMBLY
STAFF REPORT BECAUSE THIS COVERS
SOME OF THE SOME OF THE KEY
PIECES OF IT QUOTE THE CTC WOULD
ONLY BE ABLE TO APPROVE A
PROJECT IF THE PROJECT PROVIDES
OVERALL NET POSITIVE ECONOMIC
BENEFIT TO THE LOCAL GOVERNMENT.
THAT'S ONE PIECE THE DEVELOPERS
TO ENTER INTO ONE OR MORE
LEGALLY BINDING AND ENFORCEABLE
COMMUNITY BENEFITS AGREEMENTS
AND THREE HAS TO ADHERE TO LABOR
STANDARDS THAT ENSURE FAIRNESS
TO BENEFIT AND BENEFITS TO
WORKERS. SEQUEL WOULD STILL
APPLY TO ALL THESE ACTIVITIES
I'VE JUST DESCRIBED JUST AS IT
DOES TODAY. IT FINAL. THE FINAL
TRAILER BILL IS FOR OFFSHORE
WIND LESSEES. THE PROCESS RIGHT
NOW IS MOVING THROUGH THE
FEDERAL GOVERNMENT. THEY'RE
GOING TO BE OFFERING A LEASE
SALE LATER THIS YEAR. WE'RE
THINKING MAYBE ABOUT AUGUST. THE
SUCCESSFUL LESSEES WILL HAVE A
LOT OF ENTITLEMENTS THAT THEY'LL
NEED TO GET OVER THE YEARS. THE
PROCESS MOVES ALONG. UM IT'LL
TAKE A COUPLE OF YEARS AND IT
JUST CREATES A SORT OF AN ESCROW
ACCOUNT INTO WHICH THEY CAN
PLACE MONEY AND WE CAN THEN
INVEST IN THE VARIOUS PERMITTING
AND OTHER THINGS THAT WE NEED TO
DO. AND I'LL STOP THERE AND HAND
IT OFF TO MY COLLEAGUE, VICE
CHAIR OF UGANDA AND INVITE HIM
TO TALK ABOUT THE RELIABILITY
ISSUES. THANK YOU. COMMISSIONER
GUNDA. UM, GOOD AFTERNOON CHAIR
AND MEMBERS OF THE COMMITTEE. I
HAVE A SLIGHT PRESENTATION HERE.
AH BEYOND THE TITLE SLIDE. I HAD
THREE SLIDES TO JUST GO THROUGH
AN OVERVIEW OF THE RELIABILITY
CHALLENGES THAT THE STATE IS
FACING. THE FIRST SLIDE WILL GO
OVER THE UNCERTAINTIES THAT WE
HAVE BEEN FACING SINCE 2020 YEAR
AFTER YEAR. THE NEXT SLIDE WOULD
BE TO JUST STACK THEM AND SHOW
YOU HOW THEY STACKING TODAY AND
FINALLY, I'LL CLOSE OUT WITH THE
NUMERICAL VALUES OF THOSE, UM,
CLIMATE INDUCED THE LIABILITY
RISKS. SO JUST TO START WITH AS
AS WE TALK ABOUT THE
UNCERTAINTIES, I WANT TO GO
THROUGH SEVERAL YEARS HERE AND
WHAT YOU'LL SEE HERE IS HERE TO
HEAR WHAT WE PLANNED FOR AND
WHAT WE ENDED UP SEEING A PLAY
OUT IN REAL TIME AND THE ISSUES
WITH THAT. SO STARTING WITH 2020
, YOU KNOW, ARE PLANNING
ASSUMPTIONS GOING INTO 2020 WERE
BASED ON HISTORICAL CONDITIONS
AND AVERAGE CLIMATE CHANGE
TRENDS. THIS IS WHAT WE
TYPICALLY PLANNED FOR UP TO
2020. BUT AS YOU ALL KNOW, IN
2020, WE HAD THE EXTREME
REGIONAL HEAT AND BECAUSE OF
THAT, WE HAD OUTAGES. AND THOSE
REGIONAL HEAT EVENTS WERE
SOMETHING WE DID NOT PLAN FOR
AND AS THE ROOT CAUSE ANALYSIS
THAT WAS DEVELOPED JOINTLY
BETWEEN CAISO CPUC NCC POINTS,
YOU KNOW, WE REALLY NEEDED TO
UPDATE OUR MODELING EFFORTS, BUT
ALSO REALLY THINK THROUGH HOW
BEST TO PLAN FOR A RESOURCE MIX.
THAT'S THAT'S CONTINUOUSLY
CHANGING AND FOCUS ON THE NET
PERIOD, WHICH IS IN THE EVENING
TIME. GOING INTO 2021. THE
AGENCIES HAVE DONE A LOT OF
DIFFERENT TAKE A NUMBER OF
DIFFERENT STEPS. FIRST, WE
STARTED INCORPORATING CLIMATE
CHANGE UNCERTAINTIES INTO OUR
PLANNING AND ASSESSING THE
RELIABILITY RISKS FOR A GIVEN
SUMMER. CPUC HAS INCREASED THE
EFFECTIVE BRM OR THE PLANNING
RESERVE MARGIN TO ALLOW THE
UTILITIES TO PROCURE BEYOND THE
BASIC TRADITIONAL PLANNING
STANDARDS OF 15% P. R. M. AND
FINALLY, WE ALSO CAME UP WITH A
SYSTEM THAT IZATION OF SOME OF
THE EFFORTS WE'VE DONE IN 2020
TO THINK THROUGH WHAT WE CALL
THE CONTINGENCY PLAN, AND THOSE
CONTINGENCY MEASURES WERE
SYSTEMATIZED, AND THE PLAN WAS
LAID OUT. AS WE WENT INTO 2021.
WE DID EXPERIENCE LIKE EXTREME
HEAT IN THE EARLIER MONTHS, BUT
AS WE WENT INTO THE SUMMER, WE
DIDN'T REALLY HAVE AN EXTREME
HEAT OF IT. BUT ON JULY 19TH WE
WERE VERY CLOSE TO A LOAD SHED
OR A SHORTFALL EVENT BECAUSE OF
A FIRE RISK WE WHICH WE DID NOT
ANTICIPATE. AND THAT FIRE RISK
WAS THE BOOT LIKE FIRE, WHICH
KNOCKED OUT ABOUT 4000 MEGAWATTS
OF KOYA TRANSMISSION LINE COMING
INTO CALIFORNIA. AND ON THE TOP
OF THAT WE STARTED SEEING SUPPLY
CHAIN ISSUES AND THE SLOWING
DOWN OF THE BUILDING RATES WE
WERE ANTICIPATING. SO AS WE MOVE
INTO THE 2022 EFFORTS, WE REALLY
ARE CONTINUING TO REASSESS THE
PLANNING DESERVE MARGIN, BUT WE
NOW HAVE COME TO THE CONCLUSION
THAT WE WOULD NEED TOOLS BEYOND
WHAT WE CURRENTLY HAVE IN OUR
POCKET. WHICH IS WHAT WE'RE
CALLING THE STRATEGIC RESERVE
AND THAT IS BASED ON SOME OF THE
CONDITIONS THAT WE ARE ALREADY
OBSERVING, AND SOME OF THE
CONDITIONS THAT MIGHT PLAY OUT.
THE CONDITIONS THAT WE OBSERVE
IS THE EXTREME DROUGHT IN AS WE
ALL KNOW THE EXTREME DROUGHT
NUMBERS. DWR HAS GIVEN US THE
FINAL NUMBERS TO BAKE INTO A
PLANNING. WE HAVE SUPPLY CHAIN
ISSUES, WHICH IS COMPOUNDED BY
THE DEMAND BY THE DEPARTMENT OF
COMMERCE IS TARIFF INVESTIGATION
, WHICH IS REALLY SLOWING DOWN
SOLAR AND SOLAR AND STORAGE
PROJECTS. WE MIGHT HAVE EXTREME
HEAT AND WE MIGHT HAVE WILDFIRE.
AND THEN GOING INTO 2023 YOU
KNOW, IN THESE COMPOUNDS EVENTS
ARE JUST AN UNCERTAINTY THAT WE
CANNOT PLAN FOR ANYMORE AND DO
NOT HAVE THE TOOLS FOR TO
PROVIDE. YOU HAVE BEEN VISUAL
REPRESENTATION AND HOW THEY
STACK HOW DID STACK SO WHAT
WE'RE SHOWING HERE? FIRST IS
TYPICALLY WHAT THE I O U. S PLAN
FOR THIS IS THE AUTHORIZED
PROCUREMENT BY CPUC TO ENSURE WE
MEET THE TRADITIONAL PLANNING
STANDARDS. OF HAVING NO MORE
THAN ONE OUTAGE EVERY 10 YEARS.
THAT'S THE TRADITIONAL PLANNING
STANDARD. IT'S A STATISTICAL
ANALYSIS. WE PLAN FOR THAT, AND
CPUC AUTHORIZES THE PROCUREMENT.
THERE IS SOMETIMES SOME
POTENTIAL LAG IN OPERATING THE
PROCUREMENT BECAUSE THE
PROCUREMENT TAKES A FEW YEARS
CYCLE AND THE ASSUMPTIONS THAT
WE STARTED WITH THE BEGINNING OF
THE PROCEEDING. MIGHT HAVE
CHANGED BECAUSE OF THEIR
ELECTRIFICATION CHANGES IN THE
DEMAND, BUT IT COULD BE THE
ECONOMIC DEMOGRAPHIC VARIABLES
HAVE CHANGED, SO THERE MIGHT BE
A SMALL AMOUNT OF POTENTIAL LAND
THAT WE HAVE TO CONTINUOUSLY
UPDATED PROCUREMENT SHIP. BUT
REALLY THE ISSUE THAT WE'RE
TACKLING HERE IS NOT WHAT THE
TRADITIONAL PLANNING GAMES AND
IT'S BEYOND THE TRADITIONAL
PLANNING. AND HERE'S THE FIRST
RISK. THE FIRST RISK IS EVEN IF
CPUC WERE TO AUTHORIZE THE
PROCUREMENT THAT'S NEEDED TO
MEET THE PLANNING STANDARDS. WE
ARE CURRENTLY OBSERVING ALMOST
20 TO 30% DELAYING PROJECTS.
BECAUSE OF THE SUPPLY CHAIN
ISSUES AND VARIOUS OTHER ISSUES
. COMPOUNDING TO THAT WOULD BE
WHAT WHAT WE HAVE EXPERIENCED IN
2020. SO THE TRADITIONAL
PLANNING STANDARD, WHICH IS ONE
OF THE EVERY 20 YEARS, IT'S
SIGNIFICANTLY LESS CONSERVATIVE
THAN WHAT WE OBSERVED IN AUGUST
2020, WHICH WAS MORE OF ONE
EVENT EVERY 20 YEARS. SO WHAT WE
NEED TO PLAN FOR IS A HIGHER
LEVEL TO REALLY LOOK INTO THE
EXTREME HEAT. AND THE THIRD PART
FROM THAT. IS THIS CALM POUNDING
WILDFIRE RISK WEIRD EVEN THOUGH
WE HAVE PROCURED EVEN THOUGH THE
ASSETS ARE THERE, WE MIGHT HAVE
A FIRE THAT KNOCKOUT NUMBER OF
THOUSANDS OF MEGAWATTS OF
EXISTING GENERATION. AND JUST TO
KINDOF SHOW YOU THE DASH LINE.
THERE IS WHAT WE REALLY ARE
WORRIED ABOUT THOSE COMPOUNDING
RISKS, AND THOSE ARE
UNCERTAINTIES THAT WE CURRENTLY
DO NOT HAVE ANY TOOLS TO PLAN
FOR BEYOND THE CONTINGENCY PLAN
THAT WE MENTIONED. WHICH IS ONLY
2000 MEGAWATTS, SO THEIR
PROCUREMENT LAG IS SOMETHING
THAT WE WOULD EXPECT CPUC TO
CONTINUE TO REFINE AND CONTINUE
TO CATCH UP EVERY SINGLE YEAR.
BUT BEYOND THAT, GIVEN THAT
THAT'S NOT WITHIN THE
TRADITIONAL PLANNING THAT IS
SOMETHING THAT WE DO NOT HAVE A
PLAN TO SHOW UP. TWO IN TERMS OF
THEN NUMERICALLY PUTTING THAT IN
PLACE WHERE W ARE IN 2022 IS
THAT WE HAVE ABOUT 1700
MEGAWATTS OF PROCUREMENT LACK
THAT WE ESTIMATE. BASED ON THE
SUDDEN CHANGE IN THE DEMAND
FORECAST. THE FORECAST THAT CAME
OUT OF C C EARLIER THIS YEAR HAS
GONE UP SIGNIFICANTLY HIGHER,
GIVEN THE ELECTRIFICATION THAT'S
HAPPENING, BUT ALSO THE CHANGES
IN ECONOMIC DEMOGRAPHIC
VARIABLES. COMING OUT OF COVID.
WE'VE HAD MUCH BETTER ECONOMIC
GROWTH AND PROJECTIONS THAN WE
ANTICIPATED PREVIOUSLY. SO THAT
KIND OF INCREASED THE DEMAND AND
HENCE THERE IS A LACK. AND THEN
COMES THE SECOND POINT OF 4 TO
5000 MEGAWATTS. THIS IS WHAT
WE'RE TALKING ABOUT EXTREME HEAT
, EXTREME DROUGHT AND EXTREME
FIRE COINCIDING TOGETHER. AND
FINALLY THE DELAYS. THE DELAYS
IN 2022 OR ARE SIGNIFICANTLY
FEWER, BUT AS YOU GO THROUGH
2025, BASED ON THE CURRENT BUILD
RAIDS OF 25,000 NEW MEGAWATTS
THAT CPUC HAS AUTHORIZED. WE
ANTICIPATE A SIGNIFICANT AMOUNT
OF DELAYS GIVEN THE CURRENT
HISTORICAL TRAJECTORY. SO TAKING
THIS PROBLEM IN A WE ARE LOOKING
AT THE RISK OF ANYWHERE FROM
7000 TO 10,000 MEGAWATTS OF
POTENTIAL SHORTFALL UNDER COM.
POUNDING SITUATION BY 2025 1 OF
OUR PRIMARY RESPONSIBILITIES AND
HOPES IN THIS IN THIS
INFORMATION PROCEEDING
INFORMATION WORKSHOP IS MAKE
SURE THAT WE MAKE YOU AWARE OF
THE CHALLENGES THAT WE HAVE
SEEING, AND THE SPEND THE LACK
OF TOOLS IN OUR POCKET. TO
REALLY DEAL WITH THIS HUGE
PROBLEM. AND THEN THIS IS THIS
KIND OF FOLLOWS WITH THE
ADMINISTRATION'S PROPOSAL FOR
APPROXIMATELY 500 BILLION TO
SHORE UP APPROXIMATELY 5000
MEGAWATTS OF STRATEGIC RESERVE.
THOSE ARE BROADLY IN THREE
BUCKETS ABOUT 4.2 BILLION IS
THROUGH DWR FOR WHAT WE ARE
CALLING ELECTRICITY BACK
STRATEGIC RELIABILITY ASSETS.
WHICH WE HOPE TO GET ABOUT, UM
3000 MEGAWATTS OUT OF AND THEN
WE HAVE ABOUT 950 MILLION FOR
DISTRIBUTED ELECTRICITY BACK UP
ASSETS AND UTILITY SCALE ASSETS
, WHICH WE BELIEVE COULD YIELD
UP TO UM, UH, UP TO 1500
MEGAWATTS AND FINALLY ON THE
DEMAND SIDE COULD SUPPORT WHICH
IS ABOUT 295 MILLION, WHICH WE
ANTICIPATE TO PROVIDE US ABOUT
300 MEGAWATTS EACH YEAR. SO I
WILL STOP DATING INTEREST OF
TIME AND LOOKING FORWARD TO
ANSWERING YOUR QUESTIONS AS WE
MOVED THANK YOU FOR THAT VERY
SOBERING. PRESENTATION. UM DOES
THAT COMPLETE? UH THE REPORTS
FROM THE ADMINISTRATION? GREAT
THEN WE'LL MOVE ON TO MR BROWN
FROM THE L A. OH, THANK YOU, MR
CHAIR AND MEMBERS ROSS BROWN
WITH THE LEGISLATIVE ANALYST'S
OFFICE. GOOD AFTERNOON. I'M AN
OFFER SOME BRIEF A BRIEF SUMMARY
OF SOME OF OUR INITIAL COMMENTS
ON THE GOVERNOR'S PROPOSAL. I'M
GOING TO FOCUS REALLY MY
COMMENTS ON THE $8 BILLION MAY
REVISION SPENDING PACKAGE THAT
YOU JUST HEARD ABOUT IN
PARTICULAR THE RELIABILITY
PIECES. UM JUST AS KIND OF A
MAYBE START WITH THE BOTTOM
LINE, AND THEN I'LL GET INTO
KIND OF A FEW QUESTIONS AND
CONSIDERATIONS. WE THINK THE
PROPOSAL RAISES A LOT OF
QUESTIONS ABOUT THE DEGREE TO
WHICH THE STATE FACES RISKS OF
ELECTRICITY OUTAGES AND WHAT
ACTIONS THE LEGISLATURE SHOULD
TAKE TO ADDRESS THOSE
CHALLENGES. UM THESE ARE AS YOU
ARE PROBABLY WELL AWARE. THESE
ARE NEW, BIG NEW PROPOSALS THAT
RAISE A LOT OF QUESTIONS IN THE
LEGISLATURE MIGHT WANT TO DELAY
ACTION ON AT LEAST SOME OF THOSE
ITEMS UNTIL LATER THIS SUMMER TO
ALLOW SUFFICIENT TIME TO BETTER
UNDERSTAND THE PROPOSALS AND
ASSESS THEIR MERITS. WE'RE STILL
WAITING ON SOME ADDITIONAL
DETAIL AND INFORMATION FROM THE
ADMINISTRATION ON SOME OF OUR
QUESTIONS, BUT I'M GOING TO WALK
THROUGH THE FOUR MAIN QUESTIONS
WE HAVE FOR YOUR CONSIDERATION
AND THAT YOU MIGHT WANT TO
EXPLORE. EITHER IN THE HEARING
TODAY OR LATER ON FIRST IS
REALLY KIND OF A HIGH LEVEL
QUESTION ABOUT HOW TO BEST
BALANCE, RELIABILITY,
AFFORDABILITY AND ENVIRONMENTAL
GOALS. UH AND THE LEGISLATURE
WILL REALLY WANT TO KIND OF
THINK ABOUT HOW IT PRIORITIZES
SOME OF THOSE DIFFERENT GOALS
WHEN THINKING ABOUT, YOU KNOW,
ALLOCATING ITS FUNDING. MOST OF
THE MAJOR REVISION FUNDING GOES
TO SUPPORT, RELIABILITY, SHORT
TERM AND MEDIUM TERM ELECTRIC
RELIABILITY EFFORTS. SO ABOUT
83% OF THE $8 BILLION PACKAGE
SORT OF FOCUSES ON THAT, SO
THAT'S REALLY AN EMPHASIS IN THE
MAY REVISION. UM AND SO AS THE
LEGISLATURE CONSIDERS HOW TO
PRIORITIZE FUNDING ACROSS THESE
DIFFERENT GOALS WOULD RECOMMEND
IT. CONSIDER THIS PACKAGE KIND
OF IN COORDINATION WITH THE $2
BILLION THAT WAS PROPOSED IN
JANUARY FOR CLEAN ENERGY
INVESTMENTS, WHICH REALLY HAD
MORE OF A AN ENVIRONMENTAL FOCUS
, AND SO CONSIDER THOSE
PROPOSALS ALONGSIDE ONE ANOTHER
AND TRYING TO DEVELOP A
COMPREHENSIVE AND COORDINATED
STRATEGY. THE SECOND. UH BIG
QUESTION IS, UH AND YOU JUST
HEARD ABOUT IT. WHAT IS THE
MAGNITUDE OF THE RELIABILITY
PROBLEM THAT THE STATE FACES,
ACCORDING TO THE ADMINISTRATION
, MAJOR RISK THIS PROPOSAL IS
TRYING TO ADDRESS HAVE TO DO
WITH A LOT OF THESE NEW RISKS
AROUND POTENTIAL WEST WIDE, HE'D
EVENTS TRANSMISSION OUTAGES
RELATED TO WILDFIRES. SUPPLY
SHORTAGES AND, IN SOME CASES
THOSE HAPPENING AT THE SAME
TIME. HOWEVER UM, FROM WHAT WE
CAN TELL THE MODELING AROUND
KIND OF THE MAGNITUDE OF SOME OF
THOSE RISKS IS NOT QUITE AS WELL
DEVELOPED AS SOME OF OUR KIND OF
TRADITIONAL MODELING AROUND
RELIABILITY. AND AS A RESULT,
THE KIND OF QUANTIFIABLE RISK OF
OUTAGES DUE TO SOME OF THOSE
FACTORS OVER THE NEXT SEVERAL
YEARS IS NOT ENTIRELY CLEAR. AND
AS A RESULT, YOU KNOW HOW MUCH
FUNDING THE STATE SHOULD
DEDICATE. TO PREPARE FOR THOSE
SHORTAGES IS STILL A LITTLE BIT
UNCLEAR TO US. AH THE OTHER
ISSUE ON KIND OF THE MAGNITUDE
OF THE ISSUE IS I TERMS OF
TIMING, BASED ON KIND OF SOME OF
THE EVALUATIONS WE'VE SEEN FROM
THE ENERGY COMMISSION AND FROM
CHI SO IT LOOKS LIKE ONE OF THE
BIGGEST RISKS IS IN 2022 SUMMER
. SO THAT KIND OF THIS SUMMER
THERE ARE SOME. IT LOOKS LIKE
THERE ARE SOME POTENTIAL
CHALLENGES AND ALSO IN 2025. IT
LOOKED LIKE THERE WAS THERE WERE
SOME POTENTIAL CHALLENGES
RELIABILITY THERE AS WELL. MAYBE
A LITTLE BIT LESS. SO IN 2023
2024 BASED ON THE DOCUMENTS
WE'VE SEEN, AND SO THAT RAISES
THE QUESTION ABOUT YOU KNOW
THESE PARTICULAR PROPOSALS AND
WHICH ONES ADDRESS THOSE NEAR
TERM 2022 CHALLENGES. AND WHICH
ONES YOU KNOW, ARE KIND OF
ADDRESSING CHALLENGES A FEW
YEARS OUT INTO THE FUTURE, AND
WHEN THE LEGISLATURE NEEDS TO
ACT ON THOSE PARTICULAR
PROPOSALS THE THIRD QUESTION IS
, HOW MUCH WILL THIS PROPOSAL
HELP ADDRESS THE RELIABILITY
PROBLEMS IN WHICH PROGRAMS
ADDRESS IT MOST EFFECTIVELY, SO
IF THERE IS A RELIABILITY
PROBLEM, IT'S CURRENTLY UNCLEAR.
OF THESE PROPOSALS, HOW MUCH
EACH PROPOSAL WILL KIND OF
DECREASE A WRITTEN THE RISK OF
AN OUTAGE AND WHICH APPROACH
DOES SO MOST COST EFFECTIVELY,
AND WE REALLY THINK THIS IS AN
IMPORTANT QUESTION FOR THE
LEGISLATURE TO EXPLORE. IN KIND
OF A PACKAGE IN WHICH ONE WHICH
ONE OF KIND OF EACH PIECES OF
THIS PROPOSAL, ACHIEVED THOSE
GOALS AND ACHIEVE THEM COST
EFFECTIVELY. AND THEN FINALLY, I
WILL JUST RAISE A FLAG KIND OF
HIGH LEVEL ISSUE. I THINK THAT
APPLIES KIND OF BROADLY ACROSS
THE STATE BUDGET, WHICH IS JUST
HOW DOES THIS PROPOSAL FIT WITH
BROADER STATE GENERAL FUND
BUDGET CONSTRAINTS AND IN
PARTICULAR, OR OFFICE HAS BEEN,
UM KIND OF FLAGGING ISSUES
AROUND THE STATUS APPROPRIATIONS
LIMIT, AND A LOT OF THE SPENDING
IN THIS PROPOSAL IS EXCLUDABLE
FROM THE STATE APPROPRIATIONS
LIMIT, BUT SOME OF IT IS NOT, UM
AND SO JUST AS YOU'RE
CONSIDERING THIS PACKAGE AND
ACTIONS ON THIS PACKAGE, I THINK
THAT WILL JUST BE ONE IMPORTANT
CONSIDERATION AND THINKING ABOUT
, UM, KIND OF, YOU KNOW, TRYING
TO STRUCTURE A BUDGET KIND OF
WITHIN THOSE CONSTRAINTS. THAT
CAN GET, OF COURSE, VERY
COMPLICATED. AND SO I JUST IN MY
COMMENTS THERE THAT WE'RE, OF
COURSE, ALWAYS AVAILABLE TO
PROVIDE TECHNICAL ASSISTANCE TO
THE LEGISLATURE AND THIS
COMMITTEE AS YOU STRUCTURE OF
ALL PACKAGE AND HOW THIS FITS
INTO THAT. SO I'LL END MY
COMMENTS THERE. THANK YOU. THANK
YOU. THANK YOU VERY MUCH. WE'RE
GOING TO PROCEED TO HEAR FROM
OUR STAKEHOLDERS. NOW WE HAVE AS
I MENTIONED EARLIER. I THINK SIX
WE'RE GOING TO BEGIN WITH DR
JAMES BUSHNELL. UM YEAH. I JUST
HAVE ONE QUESTION. WE'RE GOING
TO DO QUESTIONS AFTER ALL THE
PRESENTATIONS. AND EVERYBODY'S
UH, NO, NO, NO, THEY'RE THEY'RE
THEY'RE THEY'RE HANGING OUT. UM
THEY'RE LOOKING FORWARD TO
HEARING FROM DR BUSHNELL TO, UM
HE HAS TO LEAVE AT THREE P.M,
HOWEVER, SO WE WILL DEPART FROM
THE ASKING OF QUESTIONS. UM AT
THE END FOR HIS PRESENTATION
ONLY WE'VE ALLOCATED DOCTOR
BUSHNELL FIVE MINUTES TO LEAD
THINGS OFF. HE'S A PROFESSOR OF
ECONOMICS AT, UH, UC DAVIS AND
WELCOME DR BUSHNELL, WHO'S
APPEARING. REMOTELY. GOOD
AFTERNOON. CAN YOU HEAR ME? OKAY
YES. OKAY GREAT. YEAH I WAS
ASKED TO COMMENT ON THE
STRATEGIC RELIABILITY ASPECTS OF
THIS PROPOSAL, AND I THINK I'LL
JUST START BY POINTING OUT THAT
THAT WITHIN THE STATE WE HAVE A
DISTINCTION IN THE RELIABILITY
PLANNING PROCESSES. BETWEEN THE
CHI SO SYSTEM AND THOSE ENTITIES
IN CALIFORNIA THAT ARE OUTSIDE
THE CHI SO SYSTEM AND THEY EACH
HAVE A DIFFERENT PROCESS FOR
PLANNING FOR RELIABILITY, AND
THEREFORE I THINK THE
IMPLICATIONS OF A RESERVE LIKE
THIS ARE GOING TO BE A LITTLE
DIFFERENT. FOR THOSE DIFFERENT
SYSTEMS AND PROBABLY THE
BENEFITS OF THE RESERVE LIKE
THIS AS WELL, SOMETHING TO
CONSIDER. UM IN THE CAISO SYSTEM
. WE'VE HAD THIS PROCESS FOR
MORE THAN 20 YEARS NOW A SORT OF
AWKWARD MIX OF BOTH PLANNING AND
MARKETS IN WHICH WE HAVE A
DIVERSE SET OF BUYERS. YOU KNOW,
UH, I OWE US AND COMMUNITY
CHOICE AGGREGATORS DIRECT
CUSTOMERS. THAT ARE EACH MAKING
THEIR OWN PURCHASING DECISIONS.
UM FROM A DIVERSE SET OF SELLERS
, SUBJECT TO SOME GUARDRAILS
THAT ARE PUT IN PLACE BY THE
PUBLIC UTILITIES COMMISSION, THE
CASE SO OTHER STATE AGENCIES
THAT ARE REALLY MEANT TO SORT OF
PRESERVE RELIABILITY AND ENFORCE
ENVIRONMENTAL GOALS, THOSE SORTS
OF THINGS WHAT WE HAVEN'T HAD IN
THIS MIX OF DIVERSE BUYERS AND
SELLERS IS A STATE AGENCY TAKING
A POSITION ON BOTH SIDES OF THE
MARKET. UM EXCEPT IN THE WAKE OF
THE 2001 CRISIS WHEN DWR WAS
SIGNING CONTRACTS AS WELL, UM,
AND WHENEVER THERE'S AN
INJECTION OF PUBLIC FUNDS INTO A
MARKET OR A PROCESS WHERE
THERE'S A LOT OF PRIVATE
INVESTMENT GOING ON, IT JUST
RAISES QUESTIONS ABOUT WELL,
WHAT IS THE INTERACTION OF THIS
PRIVATE INVESTMENT WITH THE
PUBLIC FUNDS MINDED CROWD OUT?
PRIVATE INVESTMENT IS GOING TO
ENHANCE IT. UM, I JUST THINK
THESE ARE THINGS TO CONSIDER. UM
AND I WILL ARTICULATE THOSE
ISSUES IN TERMS OF THREE
QUESTIONS. UM I THINK THE FIRST
QUESTION THAT THAT STRUCK ME
WHEN I WAS REVIEWING THE
PROPOSAL IS THE QUESTION OF IF
THESE ASSETS WERE NOT PROCURED
BY DWR. UM WHAT WOULD HAPPEN TO
THEM? WOULD THEY OR COULD THEY
BE PROCURED THROUGH SOME OTHER
PROCESS THROUGH THE TRADITIONAL
RESOURCE ADEQUACY PROCESS OR
SOME OTHER BACKSTOP PROCESS? UM
AND IF NOT, WHY NOT? UM SO THE
ANSWER TO THOSE TYPES OF
QUESTIONS SPEAK TO, UM, EXACTLY
HOW MUCH ADDITIONAL RELIABILITY
WE'RE GETTING OUT OF THIS
PROCUREMENT. UM AND THE VALUE OF
THAT ADDITIONAL RELIABILITY
RELATIVE TO THE EXTENT TO WHICH
THIS THESE ASSETS ARE PROCURING
RELIABILITY, BUT DEFERRING
CHANGING THE VEHICLE FOR WHICH
IS BEING ACQUIRED. UM THE SECOND
QUESTION IS HOW THESE ASSETS
WOULD BE DEPLOYED HOW THEY WOULD
INTERACT WITH THE OTHER PARTS OF
THE MARKET. UM AND, UH, I THINK
THERE ARE WAYS FOR THESE ASSETS
TO HAVE A MINIMAL IMPACT ON
MARKET PRICES. UM WHICH WOULD
SPEAK TO WHETHER THEY ARE
SOMEHOW INFLUENCING PRIVATE
INVESTMENT IN AN UNWANTED WAY?
UM HOWEVER, IF THEY ARE
MINIMIZING THEIR IMPACT ON
MARKET PRICES, THEN THERE'S
QUESTIONS ABOUT EXACTLY WHETHER
WE'RE MAXIMIZING THE VALUE THAT
THOSE RESOURCES COULD PROVIDE.
IT'S A DELICATE BALANCE. THIRD
QUESTION HAS TO DO WITH WHAT THE
SORT OF INTERACT IMPACTS OF THE
PRESENCE OF A LARGE RELIABILITY
TO RESERVE WOULD HAVE ON THE
RELIABILITY PLANNING PROCESS.
BOTH YOU KNOW, INSIDE CAISO AND
FOR OTHER ENTITIES OUTSIDE OF
CHI. SO HERE THE QUESTION IS
WHETHER THERE IS A SORT OF MORAL
HAZARD PROBLEM WHERE IF YOU ARE
DOING PLANNING AND YOU'RE TRYING
TO BALANCE THE RISK VERSUS COST
EQUATION IN TERMS OF HOW MUCH
MORE UH, RATEPAYER OR OTHER
MONEY TO SPEND TO TRY TO REDUCE
RISK? HOW THAT BALANCE IN THOSE
NEGOTIATIONS MIGHT BE INFLUENCED
BY THE EXISTENCE OF A BACKSTOP
THAT EVERYBODY KNOWS IS THERE
THAT COULD PERHAPS MAKE IT MORE
TEMPTING TO PUSH THE ENVELOPE A
LITTLE BIT ON THE ON THE RISK
SIDE OF THAT EQUATION. AH THESE
ARE THINGS WE'LL HAVE TO KEEP IN
MIND IF THERE IS A RESERVE LIKE
THAT OF HOW HOW IT'S GOING TO
INFLUENCE THAT LONG RUN PROCESS,
BUT IN CLOSING, I WANTED TO JUST
SAY THAT I'M NOT NECESSARILY
OPPOSED TO THESE ASSETS BEING
PROCURED. UM PARTICULARLY
CERTAIN FOSSIL ASSETS THERE.
THERE'S A DYNAMIC IN CALIFORNIA
RIGHT NOW, WHERE EVERYONE ENJOYS
THE RILEY BUILDING RELIABILITY
BENEFITS OF GAS GENERATION. UM
BUT MANY DON'T WANT TO SORT OF
BE ASSOCIATED WITH PURCHASING
FROM THOSE GAS GENERATORS. AND
SO THERE'S A THERE'S A BIT OF
SORT OF LET SOMEBODY ELSE
PROCURE FROM THESE ASSETS THAT
THAT CREATES SOME OF THE
PROBLEMS THAT HAVE BEEN
HIGHLIGHTED HERE, AND THIS IS
ONE SOLUTION TO THAT TYPE OF
PROBLEM. UM WHETHER IT'S THE
BEST PROCESS FOR IDENTIFYING
WHAT'S NEEDED AND FINANCING
THOSE NEEDS IS THE SORTS OF
QUESTIONS THAT I THINK SHOULD BE
WORKED OUT OVER THE COMING
PERIOD. THANK YOU. I LOOK
FORWARD TO QUESTIONS AND THE
DISCUSSION. THANK YOU. UM, I
JUST LEARNED THAT YOU MAY BE
ABLE TO STAY TILL 3 30. IS THAT
CORRECT? THAT'S THAT'S RIGHT. SO
IF YOU WANT TO KNOW IF IT'S
ALRIGHT WITH EVERYONE WILL
PROCEED WITH THE OTHER
PANELISTS. UM AND I WILL ASK YOU
QUESTIONS FIRST. WHEN WE GET TO
THE END OF THE REMAINING FIVE
PANELISTS, BEGINNING WITH I
BELIEVE JAN'S MCKINNEY JONES,
THE CEO OF THE INDEPENDENT
ENERGY PRODUCERS, ASSOCIATES.
THANK YOU, JAN SMITTY JONES,
INDEPENDENT ENERGY PRODUCERS.
WE'VE BEEN AROUND SINCE 1982 AND
REPRESENT ONE OF EVERYBODY.
EVERYBODY SO WHEN UTILITY SCALE
WIND SOLAR, GEOTHERMAL, BIOMASS
BATTERIES, LONG DURATION,
STORAGE AND GAS AND JUST TO KEEP
THIS MOVING ALONG THE
RELIABILITY PIECE. THIS IS
CRITICAL. I THINK IT'S IMPORTANT
TO UNDERSTAND THAT THE ELECTRIC
SECTOR ACTUALLY IS THE ONLY
SECTOR THAT HAS ACTUALLY BEEN
REDUCING HIS CARBON PROFILE OVER
THE LAST DECADE. SO WE STARTED
OUT ABOUT 23% OF THE CARBON
FOOTPRINT. WE'RE NOW LESS THAN
14. SOME OF THAT HAD TO DO TO
TWO DIFFERENT THINGS. ONE IS WE
MODERNIZED OUR GAS PLANTS IN
2000 IN THE TWO THOUSANDS, WHICH
BASICALLY ALLOWED US TO SHUT
DOWN A LOT OF OLDER UNITS, SO
THE SYSTEMS MORE EFFICIENT NOW
WE WERE ALSO ABLE TO WEAN
OURSELVES OFF OF OUT OF STATE
COAL. SO THAT'S ONE PIECE OF THE
COMPONENT. WHAT THIS ONE
COMPONENT. THE SECOND COMPONENT
IS THAT WE ADDED A LOT OF SOLAR
AND WIND IN THE MEANTIME, SO THE
WHOLE INDUSTRY HAS HAS SHIFTED
OVER THE LAST 10 YEARS TO
SOMETHING VERY, VERY DIFFERENT.
WE HAVE MORE PLAYERS AS YOU JUST
HEARD. DR BUSHNELL TALK ABOUT
AND THAT IS A SOURCE THAT
CREATES SOME CHALLENGES. LET'S
PUT IT THAT WAY. SO BEING THE
SORT OF THE GHOST OF CRISES PAST
. I GUESS THAT'S WHY I WAS
INVITED TO SORT OF KIND OF GO
OVER. KIND OF WHERE WE SIT RIGHT
NOW, UM WE HAD INTEGRATED
RESOURCE PLAN TO BASICALLY
REPLACE ABOUT 6200 MEGAWATTS OF
RESOURCES THAT INCLUDED THE
CLOSURE OF THE ALBA CANYON AS
WELL AS 4000 MEGAWATTS OF ONCE
THROUGH COOLING UNITS. AND WE'RE
RUNNING INTO SIGNIFICANT
PROBLEMS. I THINK COMMISSIONER
GUNDA YOU KNOW, LAID THAT OUT,
BUT I WANT TO MAKE SURE EVERYONE
UNDERSTANDS HOW SIGNIFICANT THIS
IS. SO WE HAVE THE SUPPLY CHAIN
PROBLEMS THAT HAVE BEEN CAUSED
BY COVID GENERALLY INCREASED.
COVID COST PIRIE INCREASED
COMMODITY COSTS AS A RESULT OF
THAT. THIS DEPARTMENT OF
COMMERCE TARIFF ISSUE. I CAN'T
UNDERSCORE THE SIGNIFICANCE OF
THIS. IF YOU'RE IF YOU'RE
BUILDING A LARGE SCALE SOLAR
SOLAR WITH STORAGE, WHICH IS
WHAT MY GUYS DEVELOPED TO DATE.
IT IS DAYS. IF YOU WERE BUILDING
IT THIS YEAR, YOU'RE FINISHING
IT. BUT IF YOU WERE GOING TO
START THE SECOND HALF OF THIS
YEAR, YOU'RE NOT DOING ANYTHING
WITH IT. BECAUSE YOU DON'T KNOW
WHAT THE PANELS ARE ACTUALLY
ULTIMATELY GOING TO COST YOU SO
THINGS HAVE COME TO A GRINDING
HALT AND WILL REMAIN THAT WAY
UNTIL, UH SOME OF THIS BECOMES
MORE CLEAR, SO THAT'S AT LEAST
SIX MONTHS. MAYBE LONGER, SO I
THINK THIS IS REALLY IMPORTANT
THAT JUST GENERAL LOCKDOWN IN
CHINA A LOT OF THE COMPONENT
PARTS THAT FOR BATTERIES AND
OTHER THINGS COME FROM THE AREAS
HAVE BEEN LOCKED DOWN, SO WE
HAVE AN ISSUE THERE. SO AT ANY
RATE, THE WE'VE GOT SORT OF A,
YOU KNOW OUR OUR BASIC ISSUES
ARE YOU KNOW, SIR, THERE WAS A
GENERAL UNDER PROCUREMENT OF
RESOURCES NECESSARY TO MEET NET
PEAK. THAT'S WHERE WE ARE. NOW
THAT'S A BIG PROBLEM. THAT'S
WHAT AS THE SUN GOES DOWN, WE
STILL NEED TO BE ABLE TO
GENERATE ELECTRICITY AND WE CAN
NO LONGER DEPEND ON THE FACT
THAT THE SOLAR WAS CONTRIBUTING
TO THAT. THAT'S AN ISSUE. WE'VE
GOT WEST WIDE RETIREMENTS THAT
ARE SIGNIFICANT PROBLEMS. WE
HAVE DROUGHTS. NORTHWEST IS OKAY
. BUT OBVIOUSLY CALIFORNIA IS A
PROBLEM. AND IF YOU'RE PAYING
ATTENTION TO COLORADO RIVER
COULD POTENTIALLY BE A LONGER
TERM PROBLEM. AND THEN, OF
COURSE, THERE'S THE WAR IN
UKRAINE, WHICH HAS AN INCREASED
COST OF NATURAL GAS. GOOD NEWS
THERE THERE. THERE IS NO GOOD
NEWS OF THE WAR IN UKRAINE, BUT
WITH RESPECT TO THE RAISING GAS
PRICES THAT FULL FLEET IS MORE
EFFICIENT TODAY THAN IT WAS IN
2000 AND ONE SO IT IS GOING TO
OPERATE CLEANER AND AT LESS
COST. UM I SHARE SOME OF THE
CONCERNS THAT YOU HEARD THE
DOCTOR BUSHNELL TALK ABOUT. THAT
WE GENERALLY SUPPORTIVE OF THE
DWR GETTING ENGAGED IN THIS THE
LAST THREE YEARS IN A ROW EITHER
APRIL OR MAY I GOT A CALL FROM
PEOPLE, UM, EITHER IN THE STATE
GOVERNMENT ADMINISTRATION,
ASKING IF WE HAVE ANY ADDITIONAL
RESOURCES THAT WE CAN BRING TO
THE FORE AND THIS IS ALWAYS TOO
LATE BECAUSE MAY IT THIS IS LIKE
RUNNING THROUGH YOUR SELF
QUESTIONS LOOKING FOR QUARTERS
TO PAY RENT. IT'S A LITTLE LATE
TO BE, YOU KNOW, DOING THIS, SO
WE GOT TO BASICALLY GET THIS IN
A SITUATION WHERE WE CAN.
BASICALLY IF WE'RE GONNA IF
WE'RE GONNA PURCHASE STUFF
THAT'S NOT PART OF THE PART OF
THE MARKET. WE NEED TO BE
PLAYING HOW WE'RE GOING TO DO
THAT. AND I THINK THAT CAUTIONS.
I'M NOT GOING TO REPEAT THEM
BECAUSE HE WAS SPOT ON WITH ALL
OF THEM. UM WE NEED TO BE
CAREFUL ABOUT THAT. WE'VE HAD A
VERY SUCCESSFUL COMPETITIVE
MARKET IN CALIFORNIA, BRINGING
IN NOT ONLY GAS RESOURCES, BUT
VERY IMPORTANTLY, WE DROVE THE
COST OF SOLAR DOWN. REALLY
SIGNIFICANTLY OVER TIME. AND
THAT WAS BECAUSE WE DIDN'T
INTERFERE WITH WITH WITH WITH
BASICALLY COMPETITIVE MARKET FOR
THESE RESOURCES, SO THAT'S
REALLY THAT'S REALLY CRITICAL.
SO I THINK IT'S YOU KNOW
IMPORTANT THAT THESE DO NOT
INTERFERE WITH THAT MARKET.
SECONDLY THE PREMATURE OF YOU
KNOW, EXISTING GENERATION ONLY
EXASPERATES THE PROBLEM AND I
WANT TO BE CLEAR. YOU KNOW, I'VE
BEEN DOING RENEWABLE ENERGY
SINCE 1980. WHAT'S GOING TO KILL
OUR PATH FORWARD IS IF WE CAN'T
DO THIS RELIABLY. WE START
HAVING IF PEOPLE ARE WORRIED
THAT WE CAN'T KEEP THE LIGHTS
ON. YOU SAW THAT WHEN THEY WERE
IN TEXAS. EVERYBODY IS BLAMING
EACH OTHER FOR WHAT THE HELL
HAPPENED. YOU KNOW, THIS IS A
PORTFOLIO RESOURCES WE HAVE TO
BE. THE ADULTS HAD KIND OF SAY,
WELL, WE NEED TO COME AT THIS A
PORTFOLIO AND IF WE LET THE
LIGHTS GO OUT BECAUSE WE GOT
OVERLY ENTHUSIASTIC ABOUT
SOMETHING THAT'S GOING TO BE
BECOME A BIG PROBLEM. SO WITH
RESPECT TO THAT ISSUE, I GOT TWO
OTHER QUICK ISSUES. UH MR
CHAIRMAN, IF YOU DON'T MIND,
WE'RE VERY SUPPORTIVE THE
LITHIUM VALLEY ISSUE AGAIN.
CALIFORNIA IS GOING REALLY BIG
ON BATTERIES. WE DON'T HAVE ANY
LITHIUM IN THIS COUNTRY, AND
WE'RE IMPORTING A LOT OF IT FROM
OTHER PLACES. AND THIS IS THE
SAME IS TRUE FOR COBALT, SO WE
DO NOT WANT TO BECOME OVERLY
DEPENDENT ON STUFF WE DO NOT
HAVE. THE GOOD NEWS ABOUT THIS
LITHIUM SITUATION IS IT CAN BE
EXTRACTED FROM GEOTHERMAL BRIAN
. WE SHOULD BE DEVELOPING THE
GEOTHERMAL ANYWAY, AND I THINK
IT'S VERY IMPORTANT THAT WE ARE
ABLE TO DEVELOP THAT BASICALLY
INTO AN ENTERPRISE IN THE
IMPERIAL VALLEY. AND I WANT TO
BE A CAUTIONARY NOTE HERE,
CALIFORNIA IN 1979 AND WENT TO
IT. THE ARTICLE, SOLAR SCHOOL
AND AT THAT TIME THAT THE
PREMIER DEVELOPER OF A
MANUFACTURER OF SOLAR PANELS,
SOLAR CRYSTALS IN IN THE COUNTRY
IN THE WORLD WAS ARCO SOLAR IN
CAMARILLO, CALIFORNIA. OKAY
THAT'S NO MORE TRUE AND THAT WE
DON'T REALLY DO THAT HERE
ANYMORE. SAME IS TRUE FOR
BATTERIES IN THIS LEGISLATURE,
AND YOU KNOW IT SEVERAL YEARS
BACK. PUSHED BATTERY STORAGE
WHEN IT WAS WAY OUT OF THE
MARKET AND REDUCE THE COST OF
THAT, AND MANY PEOPLE BENEFITED
. AND THEN THE SAW THE TESLA SAW
ABOUT, YOU KNOW, BATTERY FACTORY
GETS BUILT IN THE VATA. NOW I
UNDERSTAND WHY THEY DID THAT.
BUT THE REALITY IS THAT WITHOUT
CALIFORNIA THAT WOULDN'T HAVE
HAPPENED. OKAY, WE WOULD STILL
BE TALKING ABOUT WHAT IF AND IN
TERMS OF BATTERIES. SO WE NEED
TO BE SURE THAT WE'RE GOING TO
INVEST MONEY IN THIS. WE
BASICALLY CREATE JOBS AND
OPPORTUNITIES HERE AND LAST ON
THAT ISSUE, I WOULD JUST POINT
OUT THE FACT THAT YOU MIGHT WANT
TO LOOK AT HOW WE TAX THIS
STUFF. I MEAN, I KNOW THAT THEY
WERE TALKING ABOUT PER TON. LOTS
OF OTHER MATERIALS. IT'S AN
INTERNATIONAL COMMODITY HAS DONE
BY SALES RECEIPTS. I'LL LEAVE
THAT FOR PEOPLE WHO ARE MUCH
SMARTER ON TAXES THAN ME. I JUST
PAY THEM AND WE'LL SEE WHAT GOES
THERE AND THEN. YOU KNOW, CARBON
CAPTURE WERE ALL IN ON GOOD,
GOOD IDEA. WE JUST VISITED AND
THE FACILITIES IN ICELAND. THIS
IS LONGER TERM, VERY IMPORTANT
PART OF OUR FUTURE AND LAST BUT
NOT LEAST, THE C E. C. OPT
INCITING. THIS COULD BE
IMPORTANT FOR ME AGAIN MOVING
THINGS FORWARD. THE C E C DOES
HAVE A VERY PROFESSIONAL STAFF
THAT THOSE IN DETAIL THE SEQUA
AND HOW TO CITE THINGS, SO I'M
PRETTY CONFIDENT THAT THEY WOULD
BE ABLE TO TAKE CARE OF THIS AS
WELL. SO WITH THAT I BASICALLY
CLOSE HERE AND THANK YOU VERY
MUCH FOR THE OPPORTUNITY. THANK
YOU. YOU ONLY WENT SLIGHTLY OVER
YOUR TIME. LIMIT DOUBLE DOUBLE.
UM UM UH, BUT I DIDN'T WANT TO
STOP YOU BECAUSE YOUR
PRESENTATIONS ARE ALWAYS
FASCINATING AND INFORMATIONAL.
NEXT UP. WE HAVE MARK JOSEPH. AH
ATTORNEY WITH THE COALITION OF
CALIFORNIA UTILITY EMPLOYEES AND
CALIFORNIA STATE ASSOCIATION OF
ELECTRICAL ELECTRIC WORKERS
APPEARING REMOTELY. THANK YOU,
MR CHAIR AND MEMBERS AND I
PROMISE NOT TO GO DOUBLE MY A
LOT OF TIME LIMIT. WE'LL SEE. I
WANT TO HIGHLIGHT FOUR BUDGET
ITEMS IN TWO TRAILER BOOK BILL
ITEMS THAT WE ARE PARTICULARLY
ENTHUSIASTIC TO SUPPORT. AND THE
BUDGET ITEMS FIRST. THE $1.2
BILLION FOR ELECTRIC BILL, A
REAR RICH PAYMENTS. UM AND I
WOULD JUST POINT OUT THAT THIS
DOES NOT JUST BENEFIT. THE
PEOPLE WHO ARE BEHIND AND PAYING
THEIR ELECTRIC BILL. IT ALSO
LOWERS RATES FOR ALL RATEPAYERS
IF ELECTRIC BILLS ARE NOT AID.
IT'S NOT THE UTILITY THAT HAS TO
ABSORB THE LOSS. IT'S ALL THE
OTHER RATEPAYERS. SO THIS IS AN
EFFECTIVE AND EQUITABLE WAY TO
USE THE BUDGET SURPLUS. TO
IMPLEMENT ACROSS THE BOARD
REDUCTION AND RATES FOR
EVERYONE. WELL, PARTICULARLY
HELPING THOSE MOST IN NEED.
SECOND ITEM. THE $970 MILLION
FOR RESIDENTIAL, SOLAR AND
STORAGE. 70% OF THIS IS, UM,
INTENDED FOR LOW INCOME
CUSTOMERS AND DISADVANTAGED
COMMUNITIES TO INSTALL NEW PV
AND STORAGE. THIS WOULD HELP
CORRECT A LONGSTANDING IMBALANCE
AND PARTICIPATION. IN THESE
TECHNOLOGIES. WITH RESPECT TO
THE REMAINING 30% FOR GENERAL
MARKET INCENTIVES FOR
RESIDENTIAL CUSTOMERS TO DEPLOY
STORAGE. WE AGREE THAT WE SHOULD
SPEND THE MONEY FOR MORE STORAGE
, BUT NOT BY SUBSIDIZING WEALTHY
, SINGLE FAMILY HOMEOWNERS.
INSTEAD WE COULD SERVE MORE
PEOPLE AND BE MORE EQUITABLE. IF
WE FOCUSED ON ADDING STORAGE TO
THINGS LIKE PUBLIC BUILDINGS,
SCHOOLS, COMMUNITY CENTERS. AND
RESILIENCE HUBS. UM THE THIRD
BUDGET ITEM I WANTED TO
HIGHLIGHT AND SUPPORT IS, UM ALL
THINGS LIKE LITHIUM VALLEY.
SPECIFICALLY THE FINANCING FOR
TRANSMISSION TO GET THE OUTPUT
FROM GEOTHERMAL GENERATION OUT
OF IMPERIAL COUNTY AND TO THE
REST OF THE STATE. WE'VE TO TALK
ABOUT THIS. SOME ALREADY JAN
JUST TALKED ABOUT IT. AT THE
SALTON SEA. WE HAD ONE OF THE
WORLD'S BEST LITHIUM RESOURCES.
THIS IS A CRITICAL MINERAL
MINERAL FOR DE CARBONIZED
ECONOMY. AND RECOVERING LITHIUM
AT THE SALTON SEA WOULD CAUSE
FAR LESS ENVIRONMENTAL DAMAGE
THAT FROM ANY OTHER PLACE AROUND
THE WORLD. AND WOULD INCREASE
OUR NATIONAL SECURITY AND
RECREATE A HUGE NEW INDUSTRY IN
AN AREA WITH HIGH UNEMPLOYMENT
AND POVERTY. THE SAME TIME WE
CAN MAXIMIZE GEOTHERMAL
GENERATION SO THAT WE CAN
CONTINUE TO DE CARBONIZED THE
ELECTRIC SYSTEM. BUSINESS,
OBVIOUSLY GOOD POLICY. AND FORTH
. UM THE $100 MILLION ALLOCATED
TO DIRECT AIR CAPTURE CARBON
REMOVAL. EVERY REALISTIC MODEL
OF HOW WE GET TO CARBON
NEUTRALITY INCLUDES DIRECT AIR
CAPTURE TO DEAL WITH THE
EMISSIONS. WE SIMPLY CANNOT
AVOID, TYPICALLY FROM HEAVY
INDUSTRY LIKE STEEL AND CEMENT.
DIRECT AIR CAPTURE IS NOT AN
ALTERNATIVE TO REDUCING
EMISSIONS WHEREVER WE CAN. BUT
MONEY TO DEVELOP THE TECHNOLOGY
AND LEVERAGE WHAT WAS REFERRED
TO AS A SLEW OF FEDERAL PROGRAM
MONEY SO THAT WE CAN DEAL WITH
THE HARD TO AVOID EMISSIONS IS
MONEY WELL SPENT. UM THE TWO
TRAILER BILL ITEMS THAT I WANTED
TO PARTICULARLY SUPPORT AND
HIGHLIGHT. ARE THE OPT IN
PERMITTING AT THE ENERGY
COMMISSION FOR THINGS LIKE
SOLAR, WIND AND STORAGE. THE
ENERGY COMMISSION IS AS STATED
HIGHLY PROFESSIONAL STAFF. THEY
CAN DO A REALLY GOOD JOB OF
ENSURING THAT THESE PROJECTS GET
CAREFULLY CONSIDERED AND SWIFTLY
CONSIDERED, AND CITED. UM AND
THEN THE MOST IMPORTANT ONE
REMOVING THE STATUTORY CAP ON
THE FIXED CHARGES IN ELECTRIC
RACE TO ALLOW THE CPSC TO
ESTABLISH INCOME BASED FIXED
CHARGES. IF WE WANT ELECTRICITY
TO BE THE CLEAN FUEL OF CHOICE
FOR TRANSPORTATION AND FOR
BUILDINGS, WE HAVE TO MODERNIZE
ELECTRIC GRADES SO THAT WE
CREATE THE RIGHT ECONOMIC
INCENTIVES. PEOPLE TO MAKE THE
CHOICE TO ELECTRIFY. MET
FRIEDMAN FROM TURN WHO
IMMEDIATELY FOLLOWS ME. WE'LL
TALK MORE ABOUT THIS PROPOSAL.
UM AND WE THINK THIS IS REALLY
IMPORTANT AND STRONGLY URGED THE
LEGISLATURE TO MOVE FORWARD ON
THIS SWIFTLY. THANK YOU LOOK
FORWARD TO THE DISCUSSION. THANK
YOU VERY MUCH. AND YOU HAVE JUST
INTRODUCED OUR NEXT SPEAKER, MR
FRIEDMAN. THANK YOU, MR
CHAIRMAN. MEMBERS OF THE
COMMITTEE MATT FRIEDMAN HERE ON
BEHALF OF THE UTILITY REFORM
NETWORK. IN MY BRIEF TESTIMONY,
I WANT TO ADDRESS TWO ELEMENTS
OF THE MAY REVISE AND ONE FROM
THE TRAILER BILL. FIRST THE
CALIFORNIA ARREARAGES PAYMENT
PROGRAM THAT MAY REVISE CONTAINS
$1.2 BILLION TO COVER CUSTOMER
ARREARAGES FOR ELECTRICITY AND
NATURAL GAS SERVICE, AND THIS
AMOUNT COMES ON BEHALF OF A
MILLION DOLLARS BILLION DOLLARS
THAT WAS PROVIDED LAST YEAR.
TURN SUPPORTS PROVIDING GENERAL
FUND MONEY TO ASSIST CALIFORNIA
FAMILIES WHO HAVE BEEN
STRUGGLING TO AFFORD BASIC
ELECTRICITY SERVICE AND NATURAL
GAS SERVICE AS WELL, BUT WE
BELIEVE THE AMOUNT SHOULD BE
RAISED TO $2 BILLION FOR ENERGY
DEBT RELIEF TO ADDRESS THE
MAGNITUDE OF THE CURRENT CRISIS.
UPDATED DATA INDICATES THAT
INVESTOR OWNED UTILITY AND
PUBLICLY OWNED UTILITY CUSTOMER
DEBT HAS GROWN TO $2.4 BILLION
AS OF APRIL. 30TH 2022, SO THE
1.2 BILLION IN THE MAY REVISE
WOULD ONLY COVER 50% OF THIS
DEBT. RAISING THE TOTAL TO $2
BILLION WOULD COVER OVER 80% OF
OUTSTANDING DEBT. THE INCREASED
FUNDING WOULD FREE LOW INCOME
AND WORKING FAMILIES FROM
CURRENT DEBT BURDENS AND ALLOW
THEM TO ADDRESS OTHER URGENT
NEEDS. LIKE SHELTER, FOOD,
HEALTHCARE AND EDUCATION, AND IT
WOULD ALSO REDUCE THE RATE
IMPACTS ON UNPAID DEBT FOR ALL
OTHER CUSTOMERS. THE SECOND
ISSUE. THE DEPARTMENT OF WATER
RESOURCES STRATEGIC RELIABILITY
RESERVE, WHILE TURNS SUPPORTS
THE USE OF GENERAL FUND MONEY TO
COVER A VARIETY OF COSTS
CURRENTLY COLLECTED IN
ELECTRICITY RATES. THE PROPOSAL
TO ESTABLISH A STRATEGIC
RELIABILITY RESERVE ADMINISTERED
BY DWR RAISES MANY QUESTIONS.
THE BILL WOULD DIRECT DWR TO
PROCURE ENERGY AND CAPACITY FROM
NEW OR EXISTING GENERATING
RESOURCES, BUT WITH NO CLEAR
CONSTRAINTS WHILE REQUIRING DWR
TO CONSULT WITH THE PUC, CAISO
AND R B THERE'S NO FORMAL
OVERSIGHT ROLE FOR THESE
AGENCIES. THE TRAILER BILL.
LANGUAGE ALSO GIVES VERY LITTLE
INDICATION AS TO THE TYPES OF
PROCUREMENT. THE DWR COULD
CONDUCT HOW IT SHOULD PRIORITIZE
AUTHORIZED EXPENDITURES. WHAT
EMPHASIS TO PLACE ON CLEAN
RESOURCES AND WHETHER THE
FOCUSES ON LONG TERM OR SHORT
TERM COMMITMENTS. THERE'S NO
DIRECTION AS TO HOW DWR PROCURED
RESOURCES SHOULD BE MANAGED
WHETHER THE ATTRIBUTE SHOULD BE
RESOLD FOR USE IN OTHER STATE
PROGRAMS. AND OTHER KEY DETAILS
RELATING TO THE MECHANICS OF THE
PROCUREMENT. DURING THE 2000 AND
ONE ENERGY CRISIS, THE
LEGISLATURE GAVE DWR AND
UNBOUNDED GRANT OF AUTHORITY TO
CONDUCT PROCUREMENT WITHOUT ANY
CONSTRAINTS OR REVIEW. AND
WITHOUT THIS OVERSIGHT, DWR
QUICKLY INCURRED $40 BILLION IN
LONG TERM CONTRACT OBLIGATIONS
WITH 98.5% OF THE ELECTRICITY
SOURCED FROM FOSSIL FUEL
GENERATION. DWR S ACTIONS WERE
HEAVILY CRITICIZED AT THAT TIME.
IF THE LEGISLATURE WANTS TO
DEPUTIZE DWR TO ACT AS A CENTRAL
PROCUREMENT AGENT TO MEET
RELIABILITY NEEDS, IT SHOULD ADD
MORE DETAILS, CREATE MORE
MEANINGFUL OVERSIGHT AND ENSURE
THAT DWR PRIORITIZES INCREMENTAL
, CLEAN RESOURCES THAT PROVIDE
LONG TERM VALUE. ALTERNATIVELY
GENERAL FUND MONEY COULD BUY
DOWN NEW COMMITMENTS BY MADE BY
EXISTING LOAD SERVING ENTITIES
TO MEET ACCELERATED PROCUREMENT
OBLIGATIONS. STATE FANS COULD
ALSO BE USED TO COVER THE RISKS
OF FEDERALLY IMPOSED SOLAR
TARIFFS AND APPROACH THAT COULD
REDUCE DELAYS FOR GENERATION
PROJECTS UNDER DEVELOPMENT. IT
ISN'T OFTEN THAT THE BILLIONS OF
TAXPAYER DOLLARS BECOME
AVAILABLE TO HELP BUILD THE GRID
OF THE FUTURE, SO OUR GOAL
SHOULD BE TO ENSURE THAT THESE
FUNDS ARE USED TO MAKE GOOD LONG
TERM INVESTMENTS. THE THIRD
ISSUE IS THE FIXED CHARGE CAP ON
RESIDENTIAL CUSTOMERS. UM
ALTHOUGH TURN HAS HISTORICALLY
OPPOSED FIXED CHARGES FOR
RESIDENTIAL CUSTOMERS. WE
RECOGNIZE THAT CHANGING
CONSIDERATIONS JUSTIFYING
EVOLUTION OF OUR POSITION. OUR
HISTORIC CONCERNS WITH FIXED
CHARGES INCLUDED THE IMPACT OF
CONSERVATION ON CONSERVATION AND
ADVERSE CONSEQUENCES FOR LOW
INCOME CUSTOMERS. WE ACKNOWLEDGE
THE MOVE TOWARDS INCOME BASED
FIXED CHARGES WOULD UPDATE RATE
DESIGNED TO REFLECT THE FACT
THAT MANY COSTS COLLECTED FROM
RETAIL CUSTOMERS DON'T VARY WITH
USAGE. SINCE 83 27 WAS ENACTED
IN 2013, THE STATE HAS
INCREASINGLY FOCUSED ON BUILDING
AND TRANSPORTATION
ELECTRIFICATION AS
DECARBONIZATION STRATEGIES AND
THESE REQUIRE LOWER USAGE BASED
RATES TO SUCCEED. THE MOVED
INCOME BASED FIXED CHARGES WOULD
ADDRESS TURNS REMAINING CONCERN
THAT A UNIFORM FIXED CHARGE WITH
OTHERWISE ADVERSELY AFFECT THE
LOWER INCOME HOUSEHOLDS. SO
GIVEN THESE CONSIDERATIONS, WE
SUPPORT REMOVING THE $10 CAP IN
FAVOR OF AN INCOME BASED
APPROACH AS PART OF THE TRAILER
BILL PACKAGE. THANKS VERY MUCH
FOR THE OPPORTUNITY TO TESTIFY
AND HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU VERY MUCH.
YOU MAY HAVE FIELD SOME
QUESTIONS ABOUT YOUR
REFRIGERATOR, BUT BEFORE THAT,
WE'RE GONNA MOVE ON TO MARIAN
BERGERSEN. THE UH, SENIOR
SCIENTIST WITH THE NRDC. THANK
YOU. GOOD AFTERNOON CHAIR, BLOOM
AND MEMBERS. THERE'S A LOT TO
LIKE. IN THIS BUDGET. WE
STRONGLY SUPPORT THE 1.2 BILLION
IN UTILITY DEBT FORGIVENESS THE
STATE'S FINANCING FOR MUCH
NEEDED TRANSIT TRANSMISSION.
ADDITIONAL SUPPORT FOR OFFSHORE
WIND INVESTMENTS IN LITHIUM
VALLEY. THEREFORE ITEMS, THOUGH
, THAT I'D LIKE TO COMMENT ON IN
MORE DEPTH. THE FIRST IS THE 970
MILLION FOR ROOFTOP, SOLAR AND
STORAGE. THIS IS A GOOD START,
BUT ADDITIONAL FUNDING OF AT
LEAST $1 BILLION IS NEEDED FOR
COMMUNITY SOLAR. ABOUT 70% OF
LOW INCOME HOUSEHOLDS ARE
RENTERS AND DON'T CONTROL THEIR
ROOFS. COMMUNITY SOLAR PLUS
STORAGE CAN PROVIDE A FINANCIAL
BENEFIT TO THOSE FAMILIES WHILE
ALSO PROVIDING A MUCH NEEDED
GREAT GRID RESOURCE, AS IS
ENABLED BY A B 23 16. SECOND AS
MARK AND MATT BOTH STATED,
ENABLING INCOME BASED FIXED
CHARGES IS BOTH URGENT AND
IMPORTANT. IT'S VITAL TO SUPPORT
THE SEX SUCCESS OF OTHER PARTS
OF THIS BUDGET AS WELL AS OUR
CLIMATE STRATEGY. FOR EXAMPLE,
TO ENABLE BUILDING
ELECTRIFICATION VEHICLE
ELECTRIFICATION SO THAT THE
INCREMENTAL COST OF USING MORE
ENERGY IS MORE ALIGNED WITH WHAT
IT ACTUALLY COSTS TO PROVIDE
THAT ELECTRICITY. THE THIRD ITEM
I'D LIKE TO COMMENT ON IS THE 30
MILLION IN CAPACITY BUILDING
GRANTS FOR CBOS? UM, THIS IS
CRITICAL. HOWEVER WE DON'T THINK
THIS SHOULD BE LIMITED JUST TO
CBO'S ONLY ENGAGING AT THE PUC.
THIS IS STATE BUDGET MONEY, AND
IT SHOULD BE AVAILABLE TO
SUPPORT CBOS ENGAGING IN ENERGY
WITH ISSUES ACROSS THE STATE,
INCLUDING A PUBLICLY OWNED
UTILITIES, LIKE IN L, A AT THE
CALIFORNIA ENERGY COMMISSION AND
OTHER FORUMS. AND FINALLY, THE
STRATEGIC RELIABILITY RESERVES
FOR THE BIG THE BIG ONE. UM WE
ARE CONCERNED ABOUT THE
RELIABILITY GAPS IN THE NEXT FEW
YEARS DUE TO THE FACTORS
DESCRIBED BY COMMISSIONER GUNDA
AND WE DO SUPPORT SHORT TERM
INVESTMENT BY THE STATE AND
RESOURCES THAT BOTH PROTECT
CALIFORNIANS FROM BLACKOUTS AS
WELL AS TO AVOID CALIFORNIA
BECOMING A CAUTIONARY TALE IN
THE CLIMATE FIGHT. IT IS VITAL
THAT WE KEEP THE POWER ON WE
ALSO APPRECIATE THAT A STATE
FUNDED RESERVE WILL REDUCE
UPWARD PRESSURE ON ELECTRIC
RATES, WHICH RIGHT NOW IS VERY
IMPORTANT AND WILL BE VERY
IMPORTANT OVER THE NEXT 5 TO 10
YEARS. HOWEVER THIS FUNDING
NEEDS GUARDRAILS TO ENSURE THAT
IT IS IN FACT BENEFICIAL AND NOT
HARMFUL TO CALIFORNIANS AND THE
LEGISLATURE SHOULD CONSIDER HOW
TO PRIORITIZE INVESTMENTS IN
SUCH A FUND. SO, FOR EXAMPLE,
INVESTMENTS IN CLEAN RESOURCES
THAT CONTRIBUTE TO OUR PATH TO
2030 AND BEYOND AND AREN'T
SOLELY SHORT TERM BACKUP. SHOULD
BE PRIORITIZED. THERE NEEDS TO
BE CLEAR WAY THAT THAT'S MADE A
PRIORITY. THESE WILL BE BETTER
OVERALL INVESTMENTS FOR THE
STATE AND LAST ON THE LIST OF
PRIORITIES, AND PERHAPS EVEN
PROHIBITED SHOULD BE ANY
INVESTMENTS THAT RESULT IN
INCREASED LOCAL AIR POLLUTION IN
DISADVANTAGED COMMUNITIES. THERE
SHOULD BE A HARD LINE OR SOME
VERY CLEAR LANGUAGE ABOUT HOW TO
PRIORITIZE THESE INVESTMENTS.
THERE MUST BE A MECHANISM THAT
WILL PROVIDE SOME OVERSIGHT TO
SHOW PUBLICLY HOW AND WHY WHICH
INVESTMENTS WERE MADE. WE ALSO
THINK THERE'S A GLARING LACK OF
INVESTMENT IN DEMAND RESPONSE IN
THIS BUDGET DIDN'T DEMAND
RESPONSE CAN HAPPEN QUICKLY. UM
THE DEMAND SIDE GRID SUPPORT
PORTION OF THIS BUDGET IS JUST
5. OF THE RELIANCE RELIABILITY
BUDGET, AND THIS PROGRAM SHOULD
HAVE A MUCH LARGER BUDGET. WE'D
SAY THREE X TO FOCUS ON REAL
DEMAND RESPONSE. NOT JUST THE
ARE ENABLED FOR THE USE OF
DIESEL GENERATORS, WHICH IS WHAT
THE PROGRAM CALLED THE
CALIFORNIA STATE EMERGENCY
PROGRAM DID LAST YEAR. BUT IT'S
CLEAR FROM THE TRAILER TRAILER
BILL AND FROM THE BCP THAT THE
INTENTION IS TO EXPAND BEYOND
THIS SORT OF DEMAND RESPONSE
INTO DEMAND RESPONSE THAT CAN
ACTUALLY HELP IN EMERGENCIES AS
WELL AS THROUGHOUT THE YEAR. AND
THE LEGISLATURE SHOULD CONSIDER
WAYS THAT THIS FUNDING CAN BE
BOTH BE SAL EXCLUDABLE AND
CONTRIBUTE TO OUR LONG TERM
CLIMATE GOALS, FOR EXAMPLE, BY
JUST A FEW EXAMPLES, BUT I'M
SURE THERE'S MANY DEPLOYING
VEHICLE TO GRID TECHNOLOGIES AND
FLEETS OF SCHOOL BUSSES. OR
INVESTING IN EFFICIENT ELECTRIC
HEAT PUMP WATER HEATERS AND AIR
CONDITIONERS WITH CONTROLS. I'LL
LEAVE IT AT THAT. THERE'S LOTS
IN HERE, BUT I APPRECIATE THE
OPPORTUNITY TO SPEAK IN FRONT OF
YOU. THANK YOU VERY MUCH. OUR
FINAL PANELIST IS BRANDON DAWSON
, THE DIRECTOR OF SIERRA CLUB,
CALIFORNIA WELCOME. MORNING GOOD
AFTERNOON CHAIR AND MEMBERS. CAN
YOU HEAR ME? YES. PERFECT UM,
YEAH. BRANDEN DAWSON, DIRECTOR
OF SIERRA OF CALIFORNIA. LIKE
ARE LIKE MY COLLEAGUES, NRDC. WE
APPRECIATE THE REVISED PROPOSAL
FOR $1.2 BILLION TOWARDS THE
CALIFORNIA AVERAGE PAYMENT
PROGRAM, AS WELL AS THE $1970
MILLION TO FUND RESIDENTIAL,
SOLAR AND STORAGE. BUT WE DO
THINK THAT LEGISLATURES SHOULD
HAVE CONCERNS PROCEDURALLY ND
SUBSTANTIVELY, SO PROCEDURALLY
SHOULD BE CONCERNED ABOUT THE
PROCESS THAT A LOT OF THESE
CONVERSATIONS ARE TAKING PLACE
THERE. THE ENERGY TRAILER BILL
RAISES A LOT OF POLICY QUESTIONS
THAT SHOULD BE ADDRESSED IN THE
COURSE OF THE NORMAL LEGISLATIVE
PROCESS AND NOT IN THE BUDGET
PROCESS, ESPECIALLY AROUND THE
CONCERNS WITH SEQUELS.
STREAMLINING AND EXPEDITING, UM
END OF ANALYSIS, THE STAFF
REPORT RAISED A LOT OF GOOD
QUESTIONS ABOUT THAT, AND WE
WOULD DIRECT YOU THERE
SUBSTANTIVELY. I'M GOING TO
FOCUS MY COMMENTS ON THE
STRATEGIC RELIABILITY RESERVES
ALLOCATION OF BILLION DOLLARS.
TAXPAYER DOLLARS TO POLLUTING
AND POSSIBLE FUELED POWER
GENERATION FOR TWO REASONS. WE
THINK YOU SHOULD HAVE CONCERNS
THE FIRST ONE BEING THE TIMING
THE RATIONALE FOR THE TRAILER
BILL, AND THIS PROPOSAL IS
SECURING ENERGY RELIABILITY FOR
THE SUMMER, DURING WHICH ROLLING
BLACKOUTS MAYBE PREVALENT DUE TO
INCREASED PRESSURE ON THE GRID.
BUT BECAUSE THE TRAILER BILL
REQUIRES THE CC TO DEVELOP
GUIDELINES, IMPLEMENT THESE
PROGRAMS AND DISPERSE THE FUNDS
AND ALSO JUST THE TIMING OF THE
BUDGET PROCESS. GENERALLY THESE
FUNDS WILL NOT BE ADDRESSED FOR
ANY RELIABILITY CRISIS THIS
SUMMER. SO REALISTICALLY, THESE
PROGRAMS AND FUNDS WILL BE USED
NEXT YEAR AND SUBSEQUENT YEARS.
USING THE CURRENT BUDGET SURPLUS
TO MITIGATE POTENTIAL FUTURE
RELIABILITY CONCERNS IS
APPROPRIATE IF THE LEGISLATURE
DIRECTIONS BUDGET RESOURCES
EXCLUSIVELY CLEAN ZERO EMISSION
GENERATION THAT WILL DELIVER
RELIABLE POWER AND MORE JUST
ENERGY SYSTEM. FOR HOLOCAUST
FORMULA. UNFORTUNATELY WE
BELIEVE THAT THIS PROPOSAL AND
TRADABLE DO NOT DO THAT. WHICH
BRINGS ME TO MY SECOND POINT.
THE LEGISLATURE SHOULD NOT FUND
DIESEL BACKUP GENERATOR
GENERATORS THAT EMIT TOXIC AND
CARCINOGENIC. POLLUTION IN
CALIFORNIA COMMUNITIES. THE
SUBMITTED BCP AND TRAILER BILL
PROPOSES DELEGATE HUNDREDS OF
MILLIONS OF DOLLARS TO FOSSIL
FUEL BACKUP GENERATION, THE VAST
MAJORITY OF WHICH USES DIESEL
DIESEL EXHAUST POSES DIRE HEALTH
RISKS, ESPECIALLY IN
DISADVANTAGED COMMUNITIES. AN
ADDITIONAL INVESTMENTS IN DIRTY
BACKUP GENERATION WILL LIKELY
INCREASE CARCINOGEN CARCINOGENS.
EMISSIONS AND COMMUNITIES ACROSS
CALIFORNIA'S AT ALL TIMES OF THE
YEAR, AS MANY DIESEL BACKUP
GENERATORS RUN FOR 100 HOURS PER
YEAR, INCLUDING A NON
EMERGENCIES. IN DECLINE. THE
TRAINER BILL PERPETUATES
CALIFORNIA'S DEPENDENCE ON GAS
FIRE DEPARTMENTS THAT ARE NOT
RELIABLE THE TRAILER VELA
PROPOSES DIRECT FUNDING TOWARDS
EXISTING GAS FIRED POWER PLANTS
AND ALSO DIRECTED DWR TO PROCURE
AND CONSTRUCTIVE NEW ENERGY, NEW
EMERGENCY AND TEMPORARY POWER
GENERATORS THAT WILL BE GAS
FIRED, POWERED AS WELL.
EVENTUALLY IT WAS A GAS PLANTS
ARE NOT RELIABLE ON THE HOTTEST
DAYS FORCED OUTAGE RATE OF GAS
PLANTS THAT HAVE HAS BEEN
INCREASING IN RECENT YEARS WITH
SOME TYPES OF GAS FACILITIES
EXPERIENCE AN AVERAGE FORCED
OUTAGE RATE OF 14% WHICH IS
HIGHER IN EXTREME HEAT. SO WHILE
CALIFORNIA IS FORTUNATE TO BE IN
THE POSITION OF A BUDGET SURPLUS
WE HAVE THE OPPORTUNITY TO MOVE
THE STATE FORWARD AND INVEST IN
CLEAN ENERGY RESOURCES THAT ARE
NON POLLUTING AND AFFORDABLE,
EITHER OUTRIGHT OR NOT SUPPORT
THROUGH SUBSIDIES,
SUBSIDIZATION. ADVANCING
OFFICER, ENERGY OR THERMAL
PROJECTS IS WHERE WE WOULD THINK
THAT SHOULD GO TOWARDS AND WOULD
BE A BETTER USE OF THE SURPLUS,
MR PLUS AND ALSO IN LINE WITH SB
30 TO 100 SP 3 50, AS WELL AS
OTHER EXECUTIVE ORDERS, WHICH
WILL PHASE OUT THE EVENTUAL USE
OF FOSSIL FUELS. SO WE ARE THE
LEGISLATORS TO USE THIS MOMENT
TO MOVE INVESTMENTS AWAY FROM
POLLUTING GAS AND FOSSIL FUELS.
AND I'M HAPPY TO TAKE ANY
QUESTIONS THAT YOU MAY HAVE.
THANK YOU VERY MUCH. UM WELL,
MEMBERS WILL PROCEED NOW TO
QUESTIONS AND COMMENTS. IT IS
JUST ABOUT LOOKS LIKE ALMOST 3
15. I'LL REMIND YOU THAT DR
BUSHNELL NEEDS TO LEAVE IT. 3 30
. SO JUST BE MINDFUL IF YOU HAVE
QUESTIONS SPECIFICALLY FOR DR
BUSH NOW. UM TO GET THEM IN
BEFORE THAT HAPPENS AND FLAGGED
ME DOWN IF SOMEBODY ELSE'S
SPEAKING AND YOU NEED TO
SHOEHORN IN A QUESTION FOR DR
PERSONNEL, DR CORK ONCE YOU
START US OFF YEAH. UM, FIRST I
HAVE A QUESTION FOR YOU, MR
CHAIR. UM SO. NRDC
REPRESENTATIVE HAS SUGGESTED
THAT THE RATEPAYER RELIEF RATHER
THAN BEING 1.2 BILLION, SHOULD
BE TWO BILLION. SEE ANY HOPE OF
I AND I AGREE, BUT DO YOU SEE
ANY HOPE IF TWO WEEKS LEFT TO
PASS THE BUDGET THAT WE CAN
REQUEST SOMETHING LIKE THAT. I
WOULD SAY THE POSSIBILITY IS
OPEN. UH SOME OF THESE ITEMS
DON'T HAVE TO BE INCLUDED IN THE
BUDGET BEFORE AUGUST. SO UNTIL
AUGUST, I SHOULD SAY SO. OKAY SO
I THINK THE POSSIBILITY AS AH AS
AVAILABLE FOR THAT WE SHOULD
REMEMBER THAT. ANY BILLION
DOLLARS THAT WE TAKE FROM ONE
PLACE OR THAT WE GIVE IN. ONE
PLACE HAS TO BE TAKEN FROM
SOMEWHERE ELSE OVER MOVING A
FINITE NUMBER OF DOLLARS AROUND
, OKAY. UM I DON'T KNOW ENOUGH
ABOUT THE DETAILS OF DEMANDS.
GRID SUPPORT THAT THREE TIMES AS
MUCH MONEY AS NEEDED. BUT I
THINK WE SHOULD DEFINITELY GET
WHAT INFORMATION. THE ENERGY SHE
REPRESENTATIVE HAS BUT THE SITE
FROM THAT THIS IS A BIG TRAIN
WRECK. DWR SHOULD NEVER EVER BE
GIVEN THE RESPONSIBILITY AGAIN
OF PROCURING ENERGY. THEY
PROCURED ENERGY AT MUCH LARGER
PRICES. THEN WE'RE THEN ARE
JUSTIFIED AND THAT'S WHY WE
SPENT 20 YEARS PAYING OFF THAT
DEBT. THEY DON'T. THIS IS NOT
WHAT THEY DO FOR A LIVING. NOW I
WOULD SAY MAYBE THE I O U'S
COULD DO IT, BUT THEY'RE BEING
UNDERMINED BY THE COMMUNITY.
CHOICE AGGREGATORS TO THE POINT
WHERE THEY'RE ACTUALLY GETTING
RID OF CAPACITY. UM AND I DON'T
KNOW IF YOU CAN DEPEND UPON, YOU
KNOW, 50 DIFFERENT COMMUNITY
CHOICE AGGREGATORS TO DO THIS,
SO THAT'S PART OF THE TRAIN
WRECK. SECOND PART OF THE TRAIN
WRECK IS WE CAN'T BUILD ANYTHING
IN THE NEXT THREE YEARS. YOU
COULD PRESUMABLY PURCHASE
BATTERIES. BUT MAYBE NOT.
THERE'S A CERTAIN UM, CAPACITY
THAT YOU COULD DO. I MEAN, THIS
WOULD DEFINITELY HELP FOR THE
POINT THAT JAN MENTIONED THAT AS
THE SUN GOES DOWN. UM WE STILL
HAVE INCREASING ENERGY DEMAND.
BATTERIES WOULD HELP WITH THAT,
BUT I'M NOT SURE THAT THIS
CAPACITY TO MANUFACTURE THEM UM
, SO IF WE COULD HAVE I'D LIKE
TO HEAR WHAT THE DETAILS WOULD
BE IN TERMS OF, AND MAYBE I'M
YOU KNOW, JUST WRONG. MAYBE WE
CAN DO THIS. BUT IF WE COULD
HAVE THE DIRECTOR, MR UM DREW
BOWEN OF THE CALIFORNIA ENERGY
COMMISSION. COULD YOU TELL US IN
DETAIL HOW YOU THINK YOU COULD
BRING ON THIS EMERGENCY
RELIABILITY CAPACITY? UM WHAT
YOU REALLY COULD BUILD WHAT YOU
COULD PURCHASE. I JUST DON'T SEE
HOW YOU CAN DO IT IN THIS SHORT
OF TIME. DR KIRK. WRONG, BY THE
WAY, THANK YOU FOR YOUR
QUESTION. I'M NOT THE BEST
QUALIFIED TO ANSWER THAT
QUESTION. BUT AS I NOTED, IN MY
TESTIMONY, WE HAVE A LEGION OF
FOLKS ONLINE. I WOULD I WOULD
ASK IF DWR IS ONLINE IF THEY
COULD ADDRESS ASSEMBLYMEMBER'S
QUIRKS QUESTION. YEAH. GOOD
AFTERNOON. SHARON MEMBERS. THIS
IS TED CRADDOCK. I SERVED AS A
DEPUTY DIRECTOR WITH THE
DEPARTMENT OF WATER RESOURCES.
I'M REALLY GOOD TO BE WITH YOU
ALL TODAY. MEMBER RESPONSE TO
THE QUESTION. YOU KNOW THE FOCUS
OF THE RESERVE AT LEAST THE
PROCUREMENT PART OF THE RESERVE
IS TO PROCURE ADDITIONAL ASSETS
AT THE SUPPORT THE GRID DURING
EMERGENCIES. AND ADDITIONALLY
EXTEND EXISTING ASSETS FOR THAT
, BUT THE FOCUS WILL REALLY BE
ON PROVIDING EMERGENCY ROOM
SUPPORT FOR THE GRID, SO THESE
ASSETS WILL WILL BE OUTSIDE OF
THE MARKET. AND OPERATE OUTSIDE
OF THE MARKET. AND THEN IN TERMS
OF THE QUESTION REGARDING COST
AND ENSURING THAT YOU KNOW THE
STATE IS GETTING THE MOST
EFFECTIVE USE OF RESOURCES. WE
WOULD BE USING, YOU KNOW,
BENCHMARKING WITH INDUSTRY
INDICES AND ALSO, UM, KNOWLEDGE
OF EXISTING FACILITIES AND THE
COST OF EXISTING FACILITIES TO
ENSURE THAT THE PRICING FOR
THESE RESOURCES ARE IN LINE WITH
EXPECTATIONS FOR US COMPARABLE
FACILITIES. YEAH THERE, UM, SO
I'LL MAKE ONE MORE COMMENT, AND
THEN I'LL LEAVE IT TO OTHERS. I
DON'T WANT TO MONOPOLIZE ALL THE
TIME. THE ONLY CAPACITY I KNOW
ABOUT THAT STILL AROUND HIS
FOSSIL. AND THAT FOSSIL RESOURCE
IS BY AND LARGE. DESIGNED FOR AN
EVEN LOAD THROUGHOUT THE DAY.
THE PEAKER PLANTS. UH YOU KNOW,
WE'RE USING RIGHT NOW. UH, T.
BALANCE OUT SOLAR AND WIND AND
OTHER RENEWABLES. SO YOU KNOW,
THE THREE SOURCES I KNOW ABOUT
OR COAL AND GAS. BUT IT'S ALL
BASE LOAD. AND. YOU CAN'T BUILD
ANYTHING IN THREE YEARS. I JUST
DON'T SEE HOW YOU GET THERE.
YEAH THANK YOU. FOR THOSE
COMMENTS, NUMBER THE FOCUS OF
THIS THIS PROGRAM, THIS RELIGION
PROVIDE AN INSURANCE POLICY FOR
THE STATE AND SO YOU ARE CORRECT
AND THAT YOU KNOW NEW NEW
RESOURCES. I WOULD GENERALLY BE
FOSSIL RESOURCES, AND, UM,
ALTHOUGH WE WILL BE OPENING FOR
OTHER TECHNOLOGIES TO
PROCUREMENT. HOWEVER, THESE ARE
REALLY INTENDED TO BE THE BRIDGE
FOR THE CLEAN ENERGY FUTURE. SO
THESE WILL BE AN INSURANCE ONLY
USED ON A LIMITED BASIS IN
SUPPORT OF THE GRID AND BY THE
NATURE OF THE WAVE. THIS WOULD
BE SET UP OUTSIDE THE MARKET
WILL ALLOW THE INVESTOR OWNED
UTILITIES AND OTHER ENTITIES
THAT CONTINUE WITH THEIR ENERGY
PROCUREMENT PLANS. WELL, I'M
JUST GONNA SAY ONCE MORE THE
CAPACITY I KNOW ABOUT IS BASE
LOAD, AND THAT'S NOT GOING TO BE
TERRIBLY HELPFUL ON A REALLY HOT
DAY. THANK YOU. ALRIGHT WE HAVE
MR FONG FOLLOWED BY MR
MURATSUCHI, MR. SMITH YOU HAVE
UNTIL 3 25. WELL MAYBE IF MR
MURCH SUIT YOU IF YOU DON'T MIND
WILL TAKE MR SMITH AFTER MR
FONG. AND MORE. ITSUKI AND MR
FRIEDMAN. THANK YOU, MR CHAIR.
I'LL RESERVE RESERVED MY
QUESTIONS FOR THE OTHER POUNDS
BY ONE OF SPECIFICALLY ASK, UM
UH, PROFESSOR. MAYBE JUNK.
ANSWER THIS TO MR MR SMITH AND
JONES CAN ANSWER THIS, TOO. BUT
AS WE DEBATE AND DISCUSS, UM,
THE STRATEGIC ENERGY RESERVE.
YOU KIND OF HIGHLIGHTED TOWARD
THE END, BUT I MEAN, WHAT IS THE
ALTERNATIVE? IF THIS IF THIS
PROPOSAL, UM YOU KNOW IF, IF NOT
THIS PROPOSAL, THEN WHAT'S THE
ALTERNATIVE TO ENSURE WE'RE
RELIABILITY? BECAUSE WHAT I'M
HEARING FROM THE COMMISSIONER IS
THERE'S A SENSE OF URGENCY AND
THERE'S SOME SEVERE. RELIABILITY
ISSUES. COMING THAT ARE AHEAD OF
US. SO HOW DO I EVALUATE THE
DIFFERENT ALTERNATIVES? IF THE
CHAIR SHALL I AND YOU'RE GOING
TO STILL AVAILABLE? THAT WOULD
BE GREAT. THAT'S THAT'S WHAT I
ABSOLUTELY TO ANSWER THE
QUESTION. I'LL THROW THAT TO DR
BUSHNELL AND THEN TO THE
COMMISSIONER AND THEN TO MR
SMARTY. SURE WE CAN SEE WHAT THE
COMMISSIONER SAYS. I GUESS THE
HAVE SIMILAR QUESTIONS. I THINK
THE WAY TO THINK ABOUT IT IS IF
THESE ASSETS CAN BE PROCURED BY
DWR THEN THEY COULD BE PROCURED
BY SOMEONE ELSE. UM AND SO WE DO
HAVE THIS PROCESS WHERE WE CAN
MANDATE PROCUREMENT BY EITHER I
O. U S OR OTHER ENTITIES. AND I
THINK THAT QUESTION WORTH
TALKING THROUGH. IS IT BETTER TO
DO THIS STYLE OF DWR CONTRACT
VERSUS USING THE EXISTING
CHANNELS THAT HAVE UM, EITHER
REQUIRED OR ENCOURAGED
PROCUREMENT BY EXISTING ACTORS
IN THE MARKET UP TO DATE. AH BUT
IF THE ASSETS AREN'T THERE, THAT
NO ONE CAN PROCURE THEM. IF THEY
ARE THERE, THEN IT SEEMS LIKE
THERE ARE MULTIPLE OPTIONS FOR
DOING SO. SO MAYBE THE TO THE
COMMISSIONER, THEN CAN YOU
RESPOND TO THAT? I MEAN WHAT
ASSETS ARE AVAILABLE? RIGHT NOW,
IF THERE IS A REAL SENSE OF
URGENCY YES, THANK YOU.
ASSEMBLYMEMBER'S SO I JUST WANNA
TAKE IT BACK JUST SLIGHTLY AT A
HIGHER LEVEL OF THAT KIND OF DIG
INTO THE DETAILS, SO I THINK THE
SOME OF THE COMMENTS MADE
ABSOLUTELY VITAL IN ANSWERING
THIS QUESTION. I THINK I JUST
WANT TO BEGIN BY SAYING, YOU
KNOW, WE KIND OF ESTABLISHED
THIS, UM, MULTIPLE 1000
MEGAWATTS OF NEEDS. SO THAT'S
THE FIRST POINT. I WANTED TO
START WITH. AND THEN ONCE WE GO
INTO THEM, LIKE WHAT ARE THE
SOLUTIONS, AS AS AS A NUMBER OF
YOU ALREADY POINTED OUT? TO
CONTINUE TO DEPEND ON BUILDING
NEW THINGS IS EXTREMELY
DIFFICULT. SO GIVEN THAT THE
SUPPLY CHAIN CHALLENGES BUT EVEN
IN THE OTHER IN A FOSSIL ASSETS
IF WE WANT TO CONSIDER BUILDING
THEM, WHICH WE ARE NOT FOR THE
PURPOSES OF THIS, IT WILL TAKE
MANY YEARS TO BRING THEM UP. SO
WHAT WE ARE ATTEMPTING TO DO
HERE IS HOW DO WE CREATE A
PATHWAY FOR THE CLEAN ENERGY
RESOURCES THAT ARE GOING TO BE
IN THE MARKET BECAUSE THEY
NEEDED TO BE PROCURED BY THE
UTILITIES. TO GO TO THE
TRADITIONAL PROCUREMENT. THAT'S
WHAT WE WANT TO DO, BECAUSE
THOSE WILL BE IN THE MARKET AND
WILL BE RUNNING MOST OF THE
TIME, YOU KNOW TO ENSURE OUR
BASIC ENERGY NEEDS. THE NEXT
QUESTION IS GIVEN THAT WE HAVE
CLIMATE TARGETS WHERE WE ARE
SAYING YOU KNOW THAT 30 YOU
KNOW, FOR EXAMPLE, CPUC PLANS TO
A 30,000,030 MILLION METRIC TONS
BY 2030. THE FOSSIL RESOURCES
WILL NOT BE THE PREFERRED
RESOURCES TO BE CONTRACTED UNDER
THE CURRENT PROCESS WITH THE
CLIMATE GOALS, SO WHAT HAPPENS
IS SOME OF THE THINGS SOME OF
THE FOSSIL UNITS THAT ARE NOT
THAT ARE EXPIRING. THEIR
CONTRACTS SOON WILL BE AVAILABLE
IN THE MARKET AND WILL NOT BE
PREFERRED BY BY CPUC TO PROCURE
THEM FOR THE PURPOSES OF MEETING
THE TRADITIONAL PLANNING. YOU
KNOW THE INCREMENTAL WHATEVER IS
LEFT OUT THERE. YES WILL BE
MOSTLY FOSSIL AND EXISTING
GENERATION AND THAT'S WHAT WE
WANT TO GO AFTER AGAIN IN
CONSULTATION WITH BALANCING
AUTHORITIES IN CONSULTATION WITH
THE UTILITIES AND CREATING A
PROCESS WHERE DWR AND THEY
IDENTIFIED SOME RESOURCES TO
BRING THEM INTO THE STRATEGIC
RESERVE WILL HAVE TO COME TO A
BUSINESS MEETING AT CC TO REALLY
PUT IT IN THE PUBLIC AGAIN.
THOSE RESOURCES WILL BE OUT OF
THE MARKET PARTICIPANTS AND WILL
ONLY PROCURE GROWTHS THAT ARE
NOT PREFERRED. TO BE A PART OF
THE TRADITIONAL PLANNING.
COMMISSIONER TO I'M GOING TO
INTERRUPT YOU AND MAYBE WE'LL
COME BACK TO YOU. I WANT TO MAKE
SURE THAT WE GIVE MR SMITH AND
HIS ALARM IS GOING OFF,
REMINDING US ALL THAT HE SAID
THAT HE HAD TO LEAVE AT 3 25 SO
UM THE FLOOR IS YOURS, MR SMITH.
A GOOD STRATEGY, TOURNAMENT
PERIOD. LITHIUM DEVELOPMENT
RECRUITS GOING TO CREATE JOBS IN
THAT ECONOMIC BOOM IN CALIFORNIA
, BUT IT APPEARS THAT THERE'S
ALREADY ATTACKS BUT THERE'S NO
LANGUAGE OF HOW MUCH WE'RE GOING
TO TAX IT FOR. AND THEN WHO'S
COME UP WITH A FIGURE OF 20
METRIC TONS UNDER OR OVER.
SOMEBODY CAN ADDRESS IT TO ME,
MR BOWMAN OR STAFF. TERESA
CALVERT DEPARTMENT OF FINANCE.
YOU'RE RIGHT. THE PROPOSED
TRAILER BILL RIGHT NOW DOES NOT
HAVE A VALUE, BUT THERE IS A TWO
TIER STRUCTURE THAT'S BASED ON
THE 20,000 METRIC TONS KIND OF A
BIT. 20 20,000 AND UNDER AND
OVER 20,000. THOSE DISCUSSIONS
CONTINUE THEIR DISCUSSIONS WITH
INDUSTRY WITH STAKEHOLDERS. UM
UM AND THE COUNTY AND SO THAT IS
STILL IN DEVELOPMENT AND STILL
BEING WORKED ON. BUT WE'VE TRIED
TO LAY OUT THE FRAMEWORK AND THE
TRAILER BILL, BUT YOU'RE RIGHT
THAT THAT DOLLAR AMOUNT IS STILL
UNDER DISCUSSION. IT'S BLANK. I
MEAN FOR THE ATTACK. IF WE'RE
TRYING TO START IN THE INDUSTRY
AND THEY ALREADY KNOW WE'RE
GOING TO TAX YOU MAYBE I DON'T
GET AN INVESTMENT AND HAVE BEEN
ANY STUDY IN COMPARISON TO THE
LITHIUM OUT OF UTAH LITHIUM OUT
OF ARIZONA LITHIUM THROUGHOUT
THE COUNTRY SO WE CAN KEEP
CALIFORNIA COMPETITIVE. BECAUSE
IF WE AREN'T GOING TO BE
COMPETITIVE, WE'RE NOT GOING TO
EVEN START THIS INDUSTRY IN
CALIFORNIA. RIGHT NO, I'M NOT
AWARE OF A STUDY THAT COMPARES
TO OTHER STATES. I DON'T KNOW IF
ANYONE ON THE INE IS, BUT I
DON'T KNOW. I'M NOT TRACKING ONE
LIKE THAT. BUT THAT IS SOMETHING
TO KEEP AN EYE ON AS WE TRY TO
ENCOURAGE DEVELOPMENT BUT ALSO
ENCOURAGE LIKE EXACTLY LIKE YOU
SAID THE ECONOMIC AND OTHER
OPPORTUNITIES FOR THOSE IN THE
AREA BECAUSE I KNOW IT'S A
LITTLE BIT MORE EXPENSIVE TO
EXTRACTED AS THEY DO THE PRIME
AND ALL THAT STUFF. BUT UM JAN.
MAYBE YOU CAN ANSWER THAT. YEAH
I THINK THIS SHOULD BE CONTINUE
TO BE ALIVE ISSUE BECAUSE WE'RE
NOT SAYING THAT THINGS SHOULD BE
TAXED, BUT THERE'S MANY
COMMODITIES ARE BASED ON SALES.
HOW MUCH YOU'RE BASICALLY
SELLING THE LITHIUM FOR IT. IT'S
GOING TO BE AN INTERNATIONAL
MARKET. LITHIUM I THINK HAS GOT
INCREASED TENFOLD IN THE LAST
FIVE OR SIX YEARS. SO WE NEED TO
BE VERY SENSITIVE ABOUT THIS
TO. CREATING INDUSTRY AND THEN
TAX OUR WAY OUT OF IT RIGHT OFF
THE BAT, SO I DON'T GET I DON'T
DO TAXES TO STEP BACK. THREE
FULL STEPS. YOU'VE NEVER SEEN ME
DO THIS, BUT I AM SO LET'S LEAVE
IT TO PEOPLE WHO SPECIALIZE IN
TAXES. BUT BUT THIS IS A CONCERN
THAT HAS BEEN RAISED THAT I
THINK WARRANTS A LITTLE MORE IN
DEPTH. LOOK AT PEOPLE WHO KNOW
WHAT THEY'RE TALKING ABOUT. NOT
ME. THANK YOU VERY MUCH, MR
CHAIR FROM MY ALARM GOING OFF,
BUT ANOTHER BIG THING IS WE KEEP
TALKING ABOUT PROCUREMENT. WE
NEED TO GET TO PRODUCING
ELECTRICITY IN CALIFORNIA
SOMEHOW TO GET CLEAN ENERGY. I
DON'T THINK WE CAN PUT ENOUGH
SOLAR FIELDS AND WIND FIELDS IN
THE OCEAN LEVELS ALL THAT STUFF
BUT WE'VE GOT TO PRODUCE IT
HERE. THANK YOU VERY MUCH. AND
COMMISSIONER GUNDHA. UM
APOLOGIZE FOR CUTTING YOU OFF
EARLIER. YOU WANT TO PICK UP
WHERE YOU LEFT OFF? YES YES,
I'LL TRY. AND SO I THINK YOU
KNOW, JUST IN SUMMARY. WHAT I
WAS ATTEMPTING TO SAY IS WE WANT
TO PRIORITIZE THE CLEAN ENERGY
PROCUREMENT. TO THE EXTENT THAT
WE CAN MAXIMIZE THAT COMING
THROUGH THE UTILITIES UNDER THE
TRADITIONAL PLANNING. SO
ANYTHING THAT IS PREFERRED NOT
PREFERRED WOULD BE AVAILABLE IN
THE MARKET TO BE A PART OF THE
STRATEGIC RESERVE TO NOT OPERATE
IN THE MARKET, BUT AS AN
INCIDENT TE SECOND ELEMENT OF
THAT WOULD BE THINKING THROUGH
THE DEMAND SIDE OPPORTUNITY,
GIVEN THE BUDGET OF ABOUT A
BILLION AND TWO FOR THE DEMAND
SIDE, WHETHER IT'S DISTRIBUTION
OR THE DEMAND SIDE STRATEGIES.
WE ANTICIPATE UP TO 2000
MEGAWATTS, SECURING UP TO 2000
MEGAWATTS WITH THAT BUDGET. SO
AGAIN, I THINK THE 30,000 FT
LEVEL THINKING AMONGST ALL OF US
TOGETHER IS GIVEN THE WIDE
UNCERTAINTIES IN THE RESOURCE
TYPES. IT IS PRUDENT. TO HAVE A
DIVERSE STRATEGY AND ENSURING
THAT AS AS AS MR JAN, SMARTY
JONES POINTED OUT, ENSURING THAT
SOME OF THE ASSETS WE HAVE
PLANNING TO ITS TIRED, WHICH IS
ABOUT 6000 MEGAWATTS. FOR THE
NEXT THREE YEARS IS RETAINED IN
SOME SHAPE OR FORM TO BE A PART
OF THE STRATEGIC RESERVE. THEY
ARE NOT PREFERRED. AND HENCE WE
DON'T WANT TO KEEP THEM IN THE
MARKET, BUT THEY ARE AVAILABLE
IF NEEDED, AND ONLY IF DIRECTED
BY THE STATE TO BE TURNED OFF.
SO JUST SO I UNDERSTAND SO THAT
WE'RE OPERATING OFF THE SAME
NUMBERS UNDER THE CHART THAT YOU
PROVIDED THE GAP. IS THAT 1800
MEGAWATTS OR IS IT OR IS IT THE
3800 MEGAWATTS. THE RANGE WHAT?
WHAT NUMBERS? SHOULD WE BE KIND
OF HONING IN ON? YEAH ABSOLUTELY
ASSEMBLYMEMBER'S SO I THINK THE
MAIN PART WE WANT TO FOCUS IS
ACTUALLY THE CUMULATIVE WORST OF
THE WORST SITUATION WHICH IS A
7000. SO OUT OF THE 7000
MEGAWATTS FOR 2022 OR 10,000
MEGAWATTS FOR 2025 VERY SMALL
PORTION OF THAT IS REALLY THE
PROCUREMENT LIKE WHICH IS THE
1700 NUMBER YOU MENTIONED. SO
DON'T 1700 MEGAWATTS HAS TO BE
DIRECTED BY CPUC TO BE PROCURED
THROUGH THE GALAXIES.
INCREMENTAL TO THAT WILL BE
OUTSIDE THE PLANNING STANDARDS
AND THAT ADDITIONAL 5 TO 6000
MEGAWATTS IS WHAT WE NEED TO
SHORE UP THROUGH OTHER TOOLS.
AND CURRENTLY, YOU KNOW, THROUGH
THE SYSTEM, IT IZATION OF SOME
OF THE MEASURES WE'VE TAKEN IN
2020. WE HAVE APPROXIMATELY 16
TO 1700 MEGAWATTS OF CONTINGENCY
MEASURES TODAY THAT WE FEEL
COMFORTABLE BUT THAT NEEDS TO BE
EXPANDED BY ANOTHER 5000. OKAY
SO THE NUMBER ACTUALLY IS NOT IN
THE IN THE CHART. IT'S THE ONE
UNDERNEATH IT SO THAT THE DELTA
THE WORST CASE SCENARIO IS 7000
MEGAWATTS IN 2020 TO 10,000
MEGAWATTS. 2025. AND BEST CASE
SCENARIO. THIS PROPOSAL ADDS.
5000 MEGAWATTS AND RESERVE. YES.
YES IT LED UP TO 5000. AND THEN
WE HAVE ABOUT YOU KNOW 8 17 TO
2000 MEGAWATTS OF CONTINGENCIES
. WE CAN CONTINUE TO GROW THAT
SO THAT COMES TO CUMULATIVELY
ABOUT 7000. BUT AGAIN THAT
DOESN'T COMPLETE AS YOU'RE
SAYING ALL THE WAY TO 10,000.
BUT WHAT I HOPE IS, IS THAT AS
YOU KNOW, SOME OF THE PANELISTS
SPOKE AS WE CONTINUE TO FEEL
MORE AND MORE STORAGE ON THE
SYSTEM. THE NET PROBLEM WILL BE
MINIMIZED CURRENTLY, AS YOU KNOW
, ASSEMBLYMEMBER'S WE WOULD ONLY
200 MEGAWATTS, YOU KNOW, TWO
YEARS AGO AND OVER THE LAST 2.5
YEARS, YOU KNOW, THROUGH THE END
OF THE SUMMER. WE WILL BE ADDING
4000 MEGAWATTS OF STORAGE,
REALLY HELPING WITH THAT METRIC
PROBLEM, SO AS WE ADD MORE AND
MORE STORAGE TO THE SYSTEM, THE
MAGNITUDE OF THE OF THE CRISIS
WILL DECREASE. AND SO THE AMOUNT
OF STRATEGIC RESERVE YOU KNOW
HOW LONG THAT PERSISTS AND HOW
LONG WE NEED. IT MIGHT MIGHT
CHANGE OVER TIME, BUT WE ARE AT
THIS POINT, ESTIMATING ONLY
THROUGH 2025. GIVEN THE BEST
AVAILABLE DATA ON WHAT WE
ANTICIPATE THE ELECTRIFICATION
TO BE AND HOW MUCH HOW MUCH
STORAGE WE ANTICIPATE TO COME
ONLINE WITH THE DELAYS BREAKDOWN
. SO IF I CAN ASK A BASIC
QUESTION AND KIND OF TO
PIGGYBACK ON WHAT IS IN THE CORK
SAID IF THERE IS A SENSE OF
URGENCY, AND THE DELTA IS 10,000
MEGAWATTS IN 25, WE'RE ADDING
5000. PLUS REMIND US RIGHT THEN
WE HAVE A AND YOU INDICATEDIN
YOUR TESTIMONY THAT THERE'S JUST
A LACK OF TOOLS, AND THEN THEY
WERE SHORT 5000 MEGAWATTS. SO.
WHY NOT CREATE A RESERVE OF
10,000 MEGAWATTS? YEAH I THINK
THAT'S A THAT'S A FAIR QUESTION
NUMBER, SO I THINK YOU KNOW, AS
AS THE L O POINTED OUT AT THIS
POINT, YOU KNOW, WE THINK THE
STRATEGIC RESERVE SHOULD BE A
MINIMUM OF 5000. AND THEN AS AS
WE LOOK THROUGH THIS, IT'S A
HOCKEY STICK OF COST ELEMENTS,
AND WE'RE TRYING TO THINK
THROUGH WHAT WOULD BE A
REASONABLE AMOUNT AND HOW MUCH
CAN WE CATCH UP? THROUGH OTHER
PROCESSES IS KIND OF OUR CURRENT
THINKING. BUT YOU'RE ABSOLUTELY
RIGHT THAT YOU KNOW THE LARGER
THE STRATEGIC RESERVE. THE
BETTER IT WOULD BE, BUT WHAT?
WHAT? WE'RE JUST KIND OF BASED
ON THE COMMON DATA. WE THINK OF
5000 WOULD BE A REASONABLE
MINIMUM IS TO GET THEM TO THEN
LET ME SINCE THERE'S
INSTITUTIONAL HISTORY HERE IF I
COULD ASK MR STUDY, JUDD'S. WHY
NOT EXPAND THE RESERVE? WELL I
LET ME JUST POINT OUT THAT WE
MAY ALSO BE ABLE TO IT MAY NOT
BE A CHOICE OF STRATEGIC RESERVE
VERSUS NOTHING. OKAY SO WE DO
HAVE THE OPPORTUNITY TO INCREASE
, FOR EXAMPLE UP HERE, AND I
THINK IT'S DR BUSHNELL STARTED
EARLIER TODAY, EXPLAINING THAT
FACT THAT WE HAVE RESOURCE
ADEQUACY PROVISION THAT ALL THE
LOAD SERVING ENTITIES THAT'S A
FANCY WORD FOR UTILITIES THAT
WE'RE ALL FAMILIAR WITH IN THE
CCS AND THE AND NOW THE SPS AS
WELL. THEY'RE RESPONSIBLE FOR
BRINGING THEIR YOU KNOW, TO BE Y
O B KIND OF THING. BRING YOUR
OWN STUFF TO THE PARTY. WELL,
SOMETIMES IT DOESN'T MIX VERY
WELL. AND THAT'S KIND OF PART OF
THE PROBLEM WE HAVE HERE IS
POSSIBLE TO LIKE ENSURE THROUGH
THE NEXT ROLE OF THE R A. THAT
THEY'RE ALL PROCURING SOME
ADDITIONAL RESOURCES. THIS WILL
BE VERY CONTROVERSIAL AND
THEY'LL BE PEOPLE WHO HATE ME
FOR SAYING THAT, BUT THERE'S
WAYS OF DEALING WITH IT THERE.
WE ALSO HAVE AN INTEGRATED
RESOURCE PLANNING PROCESS THAT
ALSO SUPPOSED TO BE DOING THIS.
THIS THIS FORWARD PLANNING. PART
OF THE PART OF THE ISSUE CHECK.
PART OF THE CHALLENGE IS
HISTORICALLY WE WERE DOING AND
RPS, WHICH WHICH, WHICH WAS
RUNNING ON ITS OWN TRACK, AND
THEN WE HAD A LONG TERM
PROCUREMENT SYSTEM THAT WAS
DESIGNED TO LOOK AT RELIABILITY
SPECIFICALLY. AND SOMEWHERE
ALONG THE LINE. WE DID THE I R
P, WHICH IS KIND OF WHERE ALL
LOOKING INTO THE FUTURE ABOUT
WHERE WE WANT TO BE IN 2040, AND
WE'VE HAD TO BE MY THIS IS MY
PERSONAL OPINION HERE LOST SIGHT
OF KEEPING, YOU KNOW THE SHORT
TERM STUFF. AND SO THAT'S KIND
OF WHERE WE'RE AT. SO I THINK
THE ANSWER TO YOUR QUESTION IS
YOU WITH THE CAUTIONARY NOTE
THAT I THINK YOU HEARD FROM DR
BUSHNELL AND I REPEATED IT AND I
THINK SOMETHING I THINK MY
COLLEAGUE FROM TURNED IT AS
WELL. UM YEAH, THERE'S SOME
CONCERNS ABOUT HOW THE STRATEGIC
RESERVE WOULD OPERATE AND ITS
EFFECT ON THE MARKET. BUT OUR
BIG PREFERENCE WOULD BE THE KICK
IT BACK INTO THE MARKET AND HAVE
THE PROBLEM SOLVED THERE. SO
THEN, IF I GO BACK TO MY
ORIGINAL QUESTION TO YOU, THEN
IS THAT THE BETTER ALTERNATIVE?
OR OR IS IT A COMBINATION?
10,000 MEGAWATTS? ABSOLUTELY
5000 MEGAWATTS I THINK IS, YOU
KNOW JUST WITHIN THE GAS FLEET.
YOU'RE NOT GOING TO GET 5000
MEGAWATTS. I THINK THAT I THINK
WHEN THEY 5000 MEGAWATTS YOU SEE
THERE INCLUDES A LOT OF THE UM,
A LOT OF WHAT ARE CALLED THE
BUGS, THE BACKUP GENERATORS,
UNITS THE GAS FLEET. YOU HAVE
THE ONCE THROUGH COOLING UNITS
WHICH OPERATE AT ABOUT THAT, YOU
KNOW 4% OF THE TIME. YOU KNOW,
MR MERCER SOUCI IS VERY FAMILIAR
WITH WITH THOSE AND UNHAPPY WITH
11 OF THEM SPECIFICALLY, BUT
THAT'S THERE. I DON'T KNOW WHAT
WHAT? WHAT THE PLANS ARE WITH
THOSE. BUT THE ONLY OTHER THING
THAT YEAH, THERE ARE SOME
POTENTIAL SITES. YOU COULD ADD
STUFF IF THAT WAS AN INTEREST OF
ANYBODY, BUT I DON'T SEE THAT
HAPPENING IN THE STRATEGIC
RESERVE, BUT THE OTHER BUT THE
OTHER ISSUE WOULD BE REALLY ONE
OF UPGRADING EXISTING
FACILITIES. FOR EXAMPLE, THAT MY
COLLEAGUE FROM THE SIERRA CLUB
TALKED ABOUT PLANTS ARE NOT AS
EFFICIENT AS THEY USED TO BE.
WELL THE PLANTS ARE EFFICIENT
WHEN THEY SAY FORCED OUTAGE AT
HIGH HEAT. THEY PRODUCE
ELECTRICITY. DID THEY DO IT AT,
SAY? 72 DEGREES. THIS IS A KNOWN
YOU DON'T ENGINEERING FACTS, SO
IT'S OT THAT THEY'RE BECOMING
LESS EFFICIENT. THEY JUST
PRODUCE LESS ELECTRICITY AND
HIGH HEAT AND WE CALL THAT A
FORCED OUTAGE SO IT IS POSSIBLE
TO BE COOLING UNITS IN FRONT OF
THEM. THE NEXT DAY THAT THEY
WOULD BASICALLY INCREASE THE
AMOUNT OF POWER THAT COULD
PRODUCE. SO THERE'S THINGS LIKE
THAT THAT COULD BE DONE IN THE
INTERIM, BUT THEY WOULD REQUIRE
SOME CAPITAL UP FRONT AND
PROBABLY A CONTRACT AND THEN
YOU'VE GOT THE FACILITY ITSELF
THAT HAVE TO BE ON SOME TYPE OF
CONTRACT, SO THERE ARE THINGS
THAT CAN BE DONE. PREFERABLE IF
IT WAS DONE IN THE IN THE
GENERAL MARKET. I THINK YOU
KNOW, TRYING TO KEEP DWR OUT OF
THIS, AS MUCH AS POSSIBLE IS A
GOOD THING, BUT I THINK ALSO
HAVING A FALLBACK THAT IF YOU
NEED TO DO SOMETHING QUICKLY,
YOU CAN DO IT. IT IS IMPORTANT
AS WELL. SO I THINK WE NEED TO
BE CAUTIOUS ABOUT HOW WE DO
THIS, BUT, YOU KNOW, OKAY, SO
THE RESERVE IS JUST TO ENSURE
SOME BASIC LEVEL OF RELIABILITY
AND THEN YOU THINK THE MARKET
CAN CAN. YEAH. I MEAN, YEAH. AND
AGAIN. PART OF THE BIG PROBLEM
IS THAT I'M SORRY. GO AHEAD.
APOLOGIZE APOLOGIZE. WE'VE GOT A
BUNCH OF PEOPLE HERE IN THE ROOM
AND THEN 22 PEOPLE WHO ARE
WAITING ON THE PHONE LINE TO
GIVE PUBLIC COMMENT. AND A LIST
OF PEOPLE SO CERTAINLY THANK
YOU, MR CHAIR. I'LL TALK TO
APOLOGIZE, MR MURATSUCHI, UM AND
THEN MISS FRIEDMAN, AND WE'VE
GOT TWO OTHER THANK YOU, MR
CHAIR. I I'D LIKE TO ADDRESS
THIS THROUGH THE, UH, MISS
BARNETSON REPRESENTATIVE THE
NRDC. SO I NOTICED IN THE
COMMITTEE ANALYSIS THAT ONE OF
THE PROJECTS THAT ARE GOING TO
BE ELIGIBLE FOR THE SEQUENCE
STREAMLINING IS, UM UM. THE
TRANSMISSION GRID OR OR AT LEAST
DESCRIBED AS RELATED
TRANSMISSION LINES THAT ARE
PROPOSED AS PART OF A PROJECT TO
CONNECT THEIR PROJECT. TO THE
BULK TRANSMISSION SYSTEM. I UH,
I KNOW THAT WHEN, UH UH UM. I
HAD AN OPPORTUNITY TO GO TO, UH
TO THE, UH, UNITED NATIONS COP
CONFERENCE? UH WE TALKED ABOUT
ONE OF THE CHALLENGES IN
CALIFORNIA. IT WAS TOO CONNECT
THE PROPOSED OFFSHORE WIND
PROJECTS TO THE TRANSMISSION
GRID THAT OFTEN IS, YOU KNOW,
FACES A 10 YEAR DELAY TO, UH,
TO, UH MAKE SURE THAT WE CAN
ACCOMMODATE AND BRING THAT THAT
THAT PRODUCED ENERGY ONLINE. UM
I KNOW THE NRDC HAS HISTORICALLY
BEEN, UH, SKEPTICAL OF SEQUA
REFORM EFFORTS. BUT WHAT IS YOUR
POSITION ON THIS PROPOSAL, SO I
CAN'T. THERE'S A BUNCH OF
DIFFERENT PARTS OF ENERGY SEE
THAT HAVE NOT FULLY WEIGHT ON
THIS PROPOSAL. I CAN SAY THAT
THE C E. C BASED STREAMLINING
STILL INCLUDES SEQUA AND WE LIKE
THAT. WE DON'T LIKE WAVING AN
ENTIRELY SO ANYTHING THAT SPEEDS
UP THE PROCESS OF GETTING
TRANSMISSION RENEWABLE STORAGE
ONLINE BUT STILL FOLLOW. SEQUA
IS GOING TO BE MUCH MORE LIKELY
FOR US TO BE ABLE TO SUPPORT AND
SO THIS FROM WHAT WE FIRST HAVE
LOOKED AT LOOKS OKAY, OKAY. UM
MR SPANIER JONES. I THINK THAT
WHEN ONE OF THE RECENT
CONFERENCES I ALSO RAISED THE
SAME ISSUE OF THE TRANSMISSION
GRID, IT WAS MY UNDERSTANDING
THAT THE DELAYS IN THE
TRANSMISSION GRID WERE LARGELY
RELATED TO PERMITTING, RATHER
THAN PERHAPS SEQUA, BUT I DON'T
KNOW IF YOU, UH HAVE HAVE HAVE
ANY OPINION. SURE ON THAT. YEAH
I WOULD BASICALLY ECHO WHAT I
JUST HEARD WITH RESPECT TO IF WE
CAN STREAMLINE. I MEAN, WE'RE
NEVER. WE'RE NEVER GONNA PROPOSE
TO DOING AWAY WITH SICK OR
THAT'S JUST NOT NOT WHERE YOU
WANT TO GO. WE ARE BEHIND AND
TRANSMISSION AND WE NEED TO BE
ABLE TO DEVELOP A MECHANISM TO
MOVE FORWARD WITH THAT. IT'S
MORE COMPLICATED THAN WE HAVE
TIME TODAY. AND SO, BUT I DO
THINK THAT THE PART OF THE
BUDGET HERE THAT REQUESTED 250
MILLION FOR THE I BANK AND
HELPING GET THE TRANSMISSION
GOING IN THE IMPERIAL VALLEY
WOULD BE A GOOD START. OKAY IF I
MAY, MR CHAIR, I'D LIKE TO
DIRECT THE QUESTION TO
COMMISSIONER UH, UGANDA. UM UM.
COMMISSIONER, GUNDA UM. HE'S
THERE. OKAY UM, YOU MAY RECALL
THAT WE HAD DISCUSSIONS ABOUT
ABOUT, UM. THE ONES TO CALLING
POWER PLANT IN MY DISTRICT IN
REDONDO BEACH, UM AND THE I KNOW
THE LAST TIME WE HAD TALKED, UH
, YOU HAD INDICATED THAT THERE
IS ENOUGH PROCURED ENERGY, TOO.
TO, UH. WHERE THERE IS NO
CURRENT PLAN TO FURTHER EXTEND
THE OPERATION OF THESE WANTS TO
RECALLING NATURAL GAS POWER
PLANTS THAT THAT YOU KNOW, IN
2010 MORE THAN 12 YEARS AGO, UH
, THE DECISION WAS MADE TO PHASE
OUT AND SHUT DOWN THESE THESE
THESE COASTAL POWER PLANTS
BECAUSE OF ITS IMPACT ON THE
MARINE ECOSYSTEM. UM AND YET I
SEE IN THIS PROPOSAL IN THE IN
THE GOVERNOR'S PROPOSAL THAT.
TWO AS PART OF THE ST STRATEGIC
RELIABILITY ASSETS TO EXTEND THE
LIFE OF EXISTING POWER PLANTS
SET TO EXPIRE. ARE THESE ONCE
THROUGH COOLING PLANTS PART OF
THAT PLAN. YEAH I THINK YOU
REMEMBER MARZOUKI. UM SINCE WE
HAVE SPOKEN A FEW MONTHS AGO, I
THINK THE BIGGEST CHANGE IN OUR
THINKING WAS, YOU KNOW, AS WE
DISCUSSED IN A BARRING ANY
EXTRAORDINARY SITUATIONS. WE DO
NOT SEE THE EXTENSION OF THE DC
POWER PLANTS. BUT WHAT HAPPENED
SINCE THEN, IS REALLY THE
DEPARTMENT OF COMMERCE
INVESTIGATION. WHICH WAS NOT THE
POINT, SOMETHING THAT WE PLANNED
FOR AND GIVEN GIVEN THAT WE HAVE
THAT THAT COMPOUNDING SITUATION
RIGHT NOW. WHICH COULD AFFECT
LARGE AMOUNTS OF PROCUREMENT TO
COME ONLINE DELAY THEM, SO
THAT'S REALLY THE PROBLEM IS
AUTHORIZATION, BUT THERE MAY BE
A LARGE AMOUNT OF DELAY. AND
THEN WHAT DO YOU DO TO SHORE UP
RESOURCES? UNDER THE GIVEN
CIRCUMSTANCES. YES THE OPC UNITS
SOME OF THEM WOULD BE WOULD BE
AN OPTION TO BE CONSIDERED UNDER
THE STRATEGIC RESERVE IF THEY'RE
AVAILABLE. ALL RGHT. THANK YOU.
UM AND LAST FOR THE MR BOWEN. UM
I WOULD DIRECT THIS QUESTION TO
YOU. BUT THE 100 MILLION FOR THE
CARBON REMOVAL FOR THE FOR THE
DIRECT AIR CAPTURE. UM WE JUST
HAD A HEARING YESTERDAY ON
CARBON CAPTURE AND STORAGE AND
ONE OF THE TWO. LARGER CONCERNS
WAS THAT SOME OF THE PROPOSED
CARBON CAPTURE AND STORAGE
PROJECTS WE'RE PRIMARILY
DESIGNED TO PROLONG, YOU KNOW,
IN THE BIG PICTURE TO PROLONG
OUR RELIANCE ON FOSSIL FUELS
RATHER THAN TO, UH, TO FOCUS ON
THE NEED FOR CALIFORNIA TO PHASE
OUT OUR RELIANCE ON FOSSIL
FUELS. BUT I AM I TO UNDERSTAND
THAT THE WAS THE FOCUS ON THE
DIRECT AIR CAPTURE THAT THESE
WOULD NOT BE THE, UH, CARBON
CAPTURE UTILIZATION AND STORAGE
PROJECTS THAT THAT WOULD WOULD.
THEORETICALLY UH, YOU KNOW, BE
USED TO PROLONG OUR RELIANCE ON
FOSSIL FUELS BUT INSTEAD BE
FOCUSING ON POTENTIAL INNOVATION
IN TERMS OF, UH, TECHNOLOGY TO
BASICALLY SUCK OUT CARBON THAT
THAT THAT THAT IS ALREADY IN THE
ATMOSPHERE. THAT'S CORRECT. AS I
NOTED IN MY EARLIER TESTIMONY, I
THINK YOU MAY HAVE COME IN AFTER
THAT. THAT IS OUR FOCUS. THIS IS
CUTTING EDGE TECHNOLOGY. WE HAVE
AN OPPORTUNITY IN CALIFORNIA TO
BE LEADERS IN THIS AREA, AND
IT'S VERY MUCH ABOUT THAT. NOT
ABOUT POINT SOURCES OR
SMOKESTACKS, THAT SORT OF THING
, NOR IS IT ABOUT SEQUESTERING
IT UNDERGROUND IN CAVERNS. IT'S
ABOUT THE FRONT AND TECHNOLOGY
TO CAPTURE ERROR FROM ANYWHERE
YOU CAN. YOU CAN USE IT ANYWHERE
ON THE PLANET WOULD WORK JUST
FINE. TO TRY TO PULL THAT SO TWO
OUT AND PUT IT IN THINGS LIKE
CONCRETE, POSSIBLY OTHER
MATERIALS WHERE IT'S VERY
DURABLY STORED. SO YEAH, IT'S
VERY MUCH ON THAT NARROW PART.
IN ADDITION, THERE'S $3.5
BILLION IN THE FEDERAL FEDERAL
MONEY AVAILABLE FOR THIS, AND
WE'RE GONNA NEED MATCH MONEY IF
WE WANT TO ATTRACT THAT FOR
CALIFORNIA. THANK YOU VERY MUCH.
ALL RIGHT. NEXT UP. WE HAVE, UM
MS FRIEDMAN. THANK YOU. AND
THANKS EVERYBODY FOR BEING HERE
AND FOR THE REALLY INTERESTING
CONVERSATION AND THANK YOU, MR
CHAIR. FOR ALL OF YOUR WORK ON
THE BUDGET THIS YEAR. UM SO IN
THE INTEREST OF FULL DISCLOSURE
, I WILL SAY THAT I REPRESENT
AND LIVE IN WHAT COULD BE THE
LAST CITY IN CALIFORNIA TO BUILD
A NEW GAS PLANT. A DECISION THAT
THEY ARE STILL LOOKING AT RIGHT
NOW. UM AND SO SOME OF MY JUST
TO GIVE YOU THAT BACKGROUND FOR
WHERE I'M COMING FROM WITH A FEW
OF THESE QUESTIONS. TRYING TO
UNDERSTAND. KIND OF HOW THEY'RE
MAKING THEIR DECISIONS RIGHT
NOW. UM FIRST, I'LL JUST SAY A
FEW THINGS. YOU KNOW, ONE OF
THE, UM, FRUSTRATIONS I'VE HAD
IN THE LAST FEW YEARS IS THE
DIFFICULTY THAT THEY SO WHEN I
WAS ON THE GLENDALE CITY
COUNCIL, WE BECAME THE FIRST
CITY. TO USE OUR MONEY TO BE
COMPLETELY SMART MEDIA ON BOTH
THE WATER AND THE POWER SIDE.
AND WHEN I VOTED ON THIS AS A
COUNCIL MEMBER, ONE OF THE
PROMISES WAS THAT THIS WOULD BE
ABLE TO BE USED. FOR OUR RAPE
PAPERS TO BE ABLE TO CONTROL THE
USE OF THEIR APPLIANCES WITH THE
GOAL OF IT BEING, UH, TIME OF
USE, UM UH, PAYMENT SYSTEMS SO
THAT YOU COULD RUN YOUR POWER
WHEN IT'S CHEAP, AND THAT'S
SOMEHOW IS JUST NEVER EVER
MATERIALIZED, EVEN THOUGH THE
APPLIANCES ARE ALL SMART METER
READY TODAY. SO I JUST IT'S NOT
REALLY A QUESTION JUST SAYING
THAT. I JUST WONDER HOW MUCH WE
ARE LOOKING AT, UM, GRID
RELIABILITY AND THESE SORTS OF
TECHNOLOGIES AND REALLY MAKING
IT AVAILABLE FOR OUR CITIES AND
MUNICIPALITIES. TO EASILY ACCESS
AND. TO HELP THEM FIGURE OUT HOW
TO INTEGRATE THAT INTO THEIR
RATES IN A WAY THAT MAKES SENSE.
SO THAT'S JUST A LITTLE UM
OBSERVATION. AND THEN, UM, IN
TERMS OF YOU KNOW, IT'S
INTERESTING BECAUSE I ALSO TALK
A LOT TO SORT OF THE OFFSHORE
WIND PEOPLE AND THEY TALK A LOT
ABOUT YOU KNOW AGAIN. NOBODY HAS
EVER BROUGHT UP SEQUELS AND
ISSUED TO ME, BUT THEY HAVE
BROUGHT UP PERMITTING. AND
MAKING IN THE SUGGESTION ABOUT
MAKING SURE THAT OUR AGENCIES
CAN DO SIMULTANEOUS PERMITTING
SO THAT THEY'RE NOT STACKED
PERMITTING. SO I JUST ALSO MAKE
THAT AS AN OBSERVATION FOR OUR
AGENCIES THAT ARE LISTENING THAT
I THINK WE HAVE A REAL
IMPERATIVE RIGHT NOW TO REMOVE
THE BARRIERS FOR THE TYPE OF
ENERGY AND CLEAN. GENERATION
FUTURE THAT WE ALL WANT, AND IT
SEEMS LIKE THERE ARE STILL TOO
MANY OF THOSE OUT. THEIR
PROCUREMENT CONTINUES TO COME UP
AND NEWER INDUSTRIES LIKE
OFFSHORE WIND, WHICH I YOU KNOW,
I'M VERY PREJUDICE. I LIKE IT. I
WOULD LIKE TO SEE MORE OF IT AND
US MOVED MORE QUICKLY TOWARDS
IT. THAT UM WE STILL HAVE
PROCUREMENT ISSUES TO TALK ABOUT
, BECAUSE YOU KNOW THEY EVERYONE
INVOLVED IN THAT WORLD. HAS
KEEPS SAYING THAT WITHOUT THAT
WE'RE JUST NOT GOING TO GET
WHERE WE ARE. SO WE JUST CAN'T
YOU KNOW, WE HAVE TO HAVE THAT
CONVERSATION AT SOME POINT IN A
REAL WAY. NOW, JUST FOR A FEW
QUESTIONS FIRST ABOUT AND I
THINK IT'S RECEIVED P IF YOU SEE
ABOUT THE ESTÁ PROGRAM AND
RESIDENTIAL ENERGY STORAGE AND
SOLAR STORAGE, YOU KNOW, KIND OF
GOING BACK A LITTLE BIT TOWARDS
THE GLENDALE SITUATION. AND YOU
KNOW, I HAVE. I'M MOSTLY
IMMUNITY TERRITORY. SO I'M
WONDERING WAS S CHIP. HOW HOW
MUNICH CUSTOMERS CAN ACCESS
THESE KINDS OF PROGRAMS. AND
WHILE YOU COME UP, I'LL ASK THE
SECOND QUESTION, WHICH IS THAT
BEHIND THE MEDIA RESOURCES LIKE
SOLAR PAIRED BATTERIES DON'T
RECEIVE ANY RESOURCE ADEQUACY,
EVALUATION OR CREDIT FOR POWER
THAT'S EXPORTED ONTO THE GRID.
AND IF I'M INCORRECT IN ANY OF
MY ASSUMPTIONS, PLEASE DO LET ME
KNOW. I'M WONDERING IF THE
KAISER WAS PLANNING TO CONDUCT A
DELIVERER ABILITY STUDY FOR
AGGREGATED BEHIND THE MEDIA
RESOURCES, AND GLENDALE'S TALKED
A LOT ABOUT MAYBE DOING A
VIRTUAL POWER PLANT, SO THAT
KIND OF FITS IN A LITTLE BIT
WITH WHAT THEY'RE THINKING. TO
ASSESS A QUALIFYING CAPACITY
EVALUATION FOR THE BEHIND THE
MEDIA RESOURCES TO UNDERSTAND
HOW TO INTEGRATE THEM INTO THE
RIGHT RELIABILITY PLANNING
PROCESS. SO THOSE ARE TWO
DIFFERENT QUESTIONS. BUT I
THOUGHT I'D ASK THEM A FRONT
BECAUSE THEY MIGHT BE TO THE
SAME PERSON. UM CORRECT TO THE
SAME AGENCY ASSEMBLY MEMBER.
PROBABLY NOT JUST MYSELF AS A
SINGLE PERSON ANSWERING BECAUSE
THEY ARE VERY TECHNICAL
QUESTIONS. THANK YOU FOR THE
QUESTIONS. RACHEL PETERSON,
EXECUTIVE DIRECTOR OF THE CPUC
AS TO THE FIRST QUESTION, AS FAR
AS POU PARTICIPATION IN THE
ESCAPE PROGRAM IF I'M
UNDERSTANDING CORRECTLY, YOU
KNOW, THESE PROGRAMS ARE
DESIGNED AND ESTABLISHED IN PART
BY STATUTORY MANDATE, AND SO OUR
MANDATES TEND TO BE, UM STILL
BROUGHT TO US FROM THE
LEGISLATURE FOR THE INVESTOR
OWNED UTILITIES SHOULD ANY PEER
YOU WANT TO PARTICIPATE IN THE
PROGRAM OR TAKE OUR DESIGN AND
USE IT FOR THEMSELVES? I'M SURE
THAT THERE'S POSSIBILITIES. IT'S
ABOUT PROGRAM, DESIGN AND BUDGET
AND AVAILABILITY, BUT WE TEND TO
HAVE MANDATES FROM THE
LEGISLATURE ABOUT THE INVESTOR
OWNED UTILITIES. SO THAT'S A
FIRST RESPONSE. AS FAR AS THE
QUESTION OF, UM THE HOME BASED
THE RESIDENTIAL SYSTEMS
PARTICIPATING IN THE RESOURCE
ADEQUACY MARKET. I'M ACTUALLY
GOING TO TURN TO PETE SCHOLAR
WHO'S ON THE LINE ARE SUBJECT
MATTER EXPERT WHO'S MUCH MORE
VERSED IN THOSE POSSIBILITIES
THAN I AM. THANK YOU. SO THANK
YOU, PETE. SCHOLAR I'M ACTUALLY
WE ALSO HAVE SIMON BAKER ON THE
LINE. AND SINCE THIS IS A D ARE
ESSENTIALLY THESE VIRTUAL POWER
PLANTS ARE DISTRIBUTED RESOURCES
HE MAY BE, HE MAY BE ABLE TO
OFFER UP LITTLE MORE INSIGHTS.
SO SIMON. IF YOU WANT TO KICK
OFF, AND THEN I CAN FOLD IN
EXTENT, IT'S HELPFUL. YEAH SO
THE SECURITY HAS A NUMBER OF
DIFFERENT DEMAND RESPONSE
PROGRAMS, AND WE RECENTLY
AUTHORIZED AND SOME NEW PROGRAMS
THROUGH THE RESPONSE TO THE
EMERGENCY. SUMMER RELIABILITY
CONDITIONS THAT WE'VE BEEN
EXPERIENCED OVER THE LAST COUPLE
OF YEARS, ONE OF WHICH IS CALLED
THE EMERGENCY LOAD REDUCTION
PROGRAM. AND WITHIN THAT WE
AUTHORIZED THE EXPANSION OF THAT
PROGRAM TO ENABLE THE
PARTICIPATION OF BEHIND THE
METER BATTERIES. AND THOSE
BEHIND THE BEER BATTERIES ARE
PAID AND IN FRONT OF AMOUNT OF
$2000 PER KILOWATT HOUR. FOR THE
AMOUNT THAT THEY EXPORT TO THE
GRID. SO THIS IS A NEW, UM,
FRONT THAT WE ARE PILOTING AND
DEMAND RESPONSE BASE, AND AS WE
LEARN MORE FROM THAT PILOT, WE
CAN EXPAND THAT OUT FURTHER. YOU
HAD SOME ELEMENTS OF YOUR
QUESTION ALSO, WHICH HAD TO DO
WITH THE WAY THAT KITE SO
MARKETS ARE STRUCTURED AND THE
EXTENT TO WHICH THAT DEMAND
RESPONSE EXPORTING DEMAND
RESPONSE CAN PARTICIPATE IN
KAESONG MARKET. PERHAPS THERE
MIGHT BE A REPRESENTATIVE FROM
CASE SO THAT COULD ADDRESS THAT
ASPECT OF YOUR QUESTION. I THINK
THEY'RE NEIL MILLER SHOULD BE ON
THE LINE. HELLO YES, IT'S NEIL
MILLER. HERE SEE THE INDEPENDENT
SYSTEM OPERATOR. JUST BUILDING
ON WHAT YOU'VE ALREADY HEARD.
THERE ARE A FEW MECHANISMS FOR
DISTRIBUTED GENERATION TO
PARTICIPATE DIRECTLY IN THE
CALIFORNIA MARKET. THE BEHIND
THE MEDIA RESOURCES ARE A LITTLE
DIFFERENT WHERE THERE IT'S
BEHIND THE MEDIA RETREATED AS A
REDUCTION IN THE LOAD
REQUIREMENT AS OPPOSED TO A
SEPARATE RESOURCE OTHER THAN THE
ABILITY THAT THEIR ACCESS
THROUGH THE PROGRAMS THAT THAT
SIMON JUST REFERRED TO THANK
YOU. THANKS. JUST A QUICK
QUESTION, IF UNDER THE MAY
REVISE A DWR HAS THE AUTHORITY
TO ENTER INTO POWER CONTRACTS,
AND IT'S A CONSTRAINED MARKET.
IS THERE ANY CHANCE OF A DRIVING
PRICES UP? THERE. YOU SORT OF
COMPETING AGAINST OTHER.
ENTITIES AT THAT POINT TO
PURCHASE THE POWER. IT'S NOT
HERE WE WOULD. OUR
UNDERSTANDING. IS THAT THESE, UH
THE STRATEGIC RESERVE ARE
BASICALLY EMERGENCY USE ASSETS
THAT WOULD BE ACCESSED THROUGH
EMERGENCY OPERATING PROCEDURES
OUTSIDE OF THE MARKET, AND WHEN
THE MARKET IS NOT ABLE ATTEMPT
TO SERVE LOAD THAT WAS SHORT. SO
IN THAT REGARD, WE WOULDN'T SEE
THIS HAVING A DIRECT MARKET
IMPACT BECAUSE HE SHOULD ONLY BE
ACCESSED. ONCE ALL OF THE
RESOURCES AVAILABLE THROUGH THE
MARKET ARE ALREADY TAPPED OUT.
AND WE'RE IN AN EMERGENCY
SITUATION. OKAY? ALL RIGHT,
THAT'S ALL I HAVE. THANK YOU
VERY MUCH. THANK YOU. THANK YOU,
MISS RIVAS. AND THEN MR BENNETT.
THANK YOU, MR CHAIR. I HAVE A
QUESTION FOR A REPRESENTATIVE
FROM THE C E. C AH, RELATED TO
YOU KNOW, THE AH! ENERGY
RELIABILITY PROJECTS. I DON'T
KNOW IF SOMEONE I THINK IT'S
PROBABLY BEST. YEAH I WAS GOING
TO WILL WILL JOIN US
MOMENTARILY. OKAY SO I'LL GO
AHEAD AND ASK YOU SORRY I MISSED
THE PRESENTATIONS. BUT I JUST
WANTED TO MAKE SURE I'M HERE TO
ASK A COUPLE QUESTIONS. THANK
YOU. UH WHY DO YOU NEED A BROAD
? UM STATUTORY EXEMPTIONS. YOU
KNOW, YEARS INTO THE FUTURE, UM
INCLUDING, YOU KNOW, SEQUA. SOLE
SOURCE CONTRACTING FOR THESE
PROJECTS. THAT'S A REALLY GOOD
QUESTION. I'M GONNA INVITE AGAIN
OUR VICE CHAIR TO RESPOND TO
THAT. HE'S OUR HE'S OUR EXPERT
ON RELIABILITY. THANK YOU. UM
THANK YOU. ASSEMBLYMEMBER'S AT,
YOU KNOW, KIND OF PARTLY WORK ON
THE BUT THEN THE PERMITTING
ELEMENT OF THAT SO I WILL INVITE
ARE ADDITIONAL. STAFF FROM THE C
C. WHO ARE WORKING ON THE
PERMITTING SIDE OF THIS, SO IF I
HAVE IF I CAN CALL ON SEAN
PITTARD TO HELP ANSWER THAT
QUESTION. SEAN OR ELIZABETH,
PLEASE, BUT I'M WORKING ON IT
HERE. HELLO I CAN'T GET MY VIDEO
OPEN. WE CAN HEAR YOU. YES, WE
CAN HEAR YOU SO. ARE YOU THERE?
YES, I AM. MY NAME IS SEAN
PITTARD. I'M THE DEPUTY DIRECTOR
FOR THE SIGHTING TRANSMISSION
AND ENVIRONMENTAL PROTECTION
DIVISION. AND I'M SORRY THAT
WHILE I'VE BEEN HAVING FOOLING
AROUND MY TECHNOLOGY HERE, I
LOST TRACK OF THE THREAT OF
EUROPE. OF YOUR QUESTION.
ASSEMBLYMEMBER'S COULD YOU
PLEASE REPEAT IT? YES, I'M HAPPY
TO REPEAT IT. UM WHY DO YOU NEED
THE BROAD STATUTORY EXEMPTIONS
YEARS INTO THE FUTURE? UM
INCLUDING SEQUA SOLE SOURCE
CONTRACTING ETCETERA FOR THESE
PROJECTS. THAT THAT'S A THAT'S A
GOOD, VERY GOOD QUESTION. I KNOW
FOR THE MOST PART. UM WE ARE NOT
LOOKING AT EXEMPTIONS FROM
SEQUA. I KNOW WHAT THE PORTIONS
OF THIS OF THESE BUILT IT. I'M
WORKING ON WHICH ARE THE
PERMITTING SIDES OF THINGS IN
THE STREET HOME THAT THERE ARE
NOT SEEKING EXEMPTIONS FROM
SEQUEL FOR THOSE PROJECTS. IT'S
BUSINESS AS USUAL WITH OUR USUAL
18 OVERSIGHT. FIRES THROUGH THE
TIME FRAMES FOR THE FUTURE. I'D
HAVE TO, UM, PROBABLY CONSULT A
LITTLE BIT WITH OUR CHIEF
COUNSEL'S OFFICE AND COME BACK
TO YOU WITH AN ANSWER ON THAT.
IT'S JUST THAT I AM NOT FAMILIAR
WITH THOSE TIME FRAMES OFF THE
TOP OF MY HEAD. OKAY BUT
SOMETIMES SORRY FOR BOUNCING
AROUND HERE WITH WITH SO MANY
STAFF, BUT WE DO HAVE DWR
REPRESENTATIVES ON THE CALL AS
WELL AND THEY'RE REALLY THE
CLOSEST TO THIS BECAUSE THEY'D
BE MANAGING IT. OK? YES, THAT'S
WHAT SO EARLIER WE HEARD FROM
TED. TED, ARE YOU STILL ON THE
LINE? YEAH, I SURE AM. AND GOOD
AFTERNOON. SOME. YOU KNOW, SEQUA
. THERE ARE EXEMPTIONS. UM AND I
JUST WANT THAT WAS MY QUESTION
IN GENERAL, WHY THEY'RE IN THERE
. AND THEN THERE ARE SOME THAT
ARE PROPOSED AT THE STATE LEVEL.
BUT THAT ARE NOT AVAILABLE AT
THE COUNTY LEVEL. YEAH THANK YOU
FOR THE QUESTION,
ASSEMBLYMEMBER'S AND SO FOR THE
DWR PROCUREMENT PIECE, THERE'S
TWO ELEMENTS OF EXEMPTIONS THAT
EVER NEEDED. IN THEIR PRIMARILY
DRIVEN BY THE NEED TO EXCEL A
RATE THE PROCUREMENT PROCESS FOR
THESE RESOURCES. AND AS WE'RE
LOOKING AT THE NEED TO BRING
ITEMS ONLINE EITHER THIS YEAR
NEXT YEAR THE FOLLOWING YEAR. UM
WHAT WE'RE TALKING ABOUT IS THE
NEED TO, YOU KNOW, CLOSE THE
TIMING GAP BY 3 TO 6 MONTHS TO
REALLY MEET THESE THESE SUMMER
TIME FRAMES. AND SO AS A RESULT
, WE'RE SEEKING EXEMPTIONS FROM
TYPICAL CONTRACTING PROCESS TO
BE IN LINE WITH THE CONTRACTING
PROCESSES THAT ARE CURRENTLY
AFFORDED TO DWR IN OUR EXISTING
POWER PROCUREMENT PROGRAMS. AND
SO THAT THAT'S ONE PIECE OF IT
REALLY ALIGN. UH THE OVERALL
PROCESS FOR THIS NEW PROGRAM
INTO OUR EXISTING CONTRACTING.
PROCESSES THAT WE HAVE AND THEN
THE OTHER PIECES ON THE SEQUENCE
SIDE. WE AS AN ORGANIZATION,
TAKE THE APPROACH BEING, YOU
KNOW, IMPLEMENTING SEQUENCE OF
VERY ROBUST WAY. SO WHEN WE
ENTER INTO AGREEMENTS, WE WILL
APPLY THAT OR YOU IDENTIFY THAT
AS THE SECRET DECISION, SO WE'RE
BECAUSE WE NEED TO ENTER INTO
AGREEMENTS AND THE TIMELY MANNER
WHERE YOU ARE ALSO FREAKING, UM
, A SEQUEL EXEMPTION FOR THAT
VERY SPECIFIC ACTION OF ENTERING
TO AN AGREEMENT. THE ACTUAL
DEVELOPMENT OF THE POWER
RESOURCES AFTER THAT WILL BE
SUBJECT TO THE SEQUEL PROCESS
THAT THERE STILL IS AN
OPPORTUNITY TO APPLY A SEQUENCE
BUT WE'RE VERY FOCUSED ON JUST
THAT THAT ACTION OF INTERIM INTO
AN AGREEMENT. I MEAN, YOU KNOW,
AS THE CHAIR OF NATURAL
RESOURCES, YOU KNOW, THESE ARE
SIGNIFICANT ISSUES IN MY
COMMITTEE AND, UM OTHER
COMMITTEES IN THE LEGISLATURE.
AH AND THEY'RE BEING PUT INTO
THE BUDGET. AND SO THAT IS
SOMETHING I'M VERY CONCERNED
ABOUT THAT THIS IS NOT GOING TO
THROUGH THE POLICY. PROCESS THE
LEGISLATIVE PROCESS WHERE WE CAN
WORK ON IT MORE AND BE ABLE TO
REVIEW IT, UH AND MAKE ANY
CHANGES OR HAVE A PUBLIC
HEARING. ON IT. INSTEAD OF JUST
INSERTING INTO THE BUDGET, WHICH
WE'RE ALL GOING TO VOTE ON. AND
SO THAT IS DEFINITELY SOMETHING
OF CONCERN. UM AND I THINK IT'S
YOU KNOW, SOMETHING THAT SHOULD
HAVE BEEN SHOULD GO THROUGH THE
LEGISLATIVE PROCESS. THANK YOU
FOR THE COMMENTS.
ASSEMBLYMEMBER'S I'LL ASK TO SEE
IF ANY OF MY COLLEAGUES FROM THE
DEPARTMENT OF FINANCE HAVE ANY
THING TO ADD IN REGARDS TO THOSE
WHO WEREN'T THERESA COLOR
DEPARTMENT OF FINANCE AGAIN? NO,
UM WE WILL ABSOLUTELY TAKE THAT
FEEDBACK BACK. WE SAW IT AS A
COMPREHENSIVE PACKAGE RIGHT WITH
THE FUNDING SIZEABLE FUNDING OF
THE EIGHT BILLION AND THE
TRAILER BILL AND LANGUAGE THAT
GOES WITH IT, BUT OF COURSE, WE
WILL RELATE TO THE FEEDBACK IN
COMMENTS BACK. AND IF YOU CAN,
UM, YOU KNOW, SEND ME SOME
COMMENTS, SOME MORE DETAILED.
THAT WOULD BE GREAT ON THE
EXEMPTIONS IN PARTICULAR. YES.
ALL RIGHT. THANK YOU. WE'VE GOT
MR BENNETT NOW. THANK YOU. THANK
YOU VERY MUCH. MY QUESTION. I
WANT TO WANT TO GO BACK TO THE
LITHIUM TAX THAT WE TALKED
ABOUT, UM. IT'S PROBABLY THE
MOST IMPORTANT ISSUE FOR ME TO
BRING UP. THAT'S ONE WE'VE
CONSISTENTLY EMPHASIZED IN IN
THIS, UH, SUBCOMMITTEE, AND THAT
IS TO NOT PUT IN JUST A FLAT TAX
THAT DOESN'T ADJUST FOR
INFLATION EVERY YEAR OR HAVE
SOME KIND OF ADJUSTMENT, OR ELSE
WE'RE GOING TO FIND OURSELVES.
20 YEARS FROM NOW WITH IT, SO
IT'S JUST A GOOD GOVERNMENT
THING THAT WE'VE TALKED ABOUT 20
YEARS FROM NOW WE'RE GOING TO BE
SAYING WE WANT TO CHANGE THAT.
AND YOU'RE GOING TO HAVE ALL
THIS PRESSURE BECAUSE NOW YOU'RE
FOCUSED ON THAT. BUT IF YOU PUT
IT IN, RIGHT WHEN YOU START AND
YOU SAY THIS THING IS GOING TO
JUST AT YOU KNOW, YOU KNOW 75%
OF THE CPI OR AT THE C P I SO I
REALLY WANT TO EMPHASIZE THAT
THAT'S A VERY IMPORTANT PART OF
THAT. AND WHEN I HOPE YOU CAN
ADDRESS I WANT TO ASK A QUICK
QUESTION ABOUT DEMAND RESPONSE,
AND I APPRECIATE THAT. THERE ARE
MANY DEMAND RESPONSE PROGRAMS.
UM BROUGHT THIS UP ONCE BEFORE,
BUT WE ARE FUNDING THOUSANDS AND
THOUSANDS OF FUELING STATIONS.
AND THIS IS THE ENERGY
COMMISSION. WE'RE FUNDING
THOUSANDS AND THOUSANDS OF
FUELING STATIONS, BUT WE DON'T
HAVE A PROGRAM THAT SAYS IF YOU
WANT OUR FUNDING, OR WE'LL GIVE
YOU EXTRA FUNDING. IF YOU USE
YOUR FUELING STATION AND YOU PUT
IN BATTERIES, AND YOU USE THOSE
BATTERIES TO HELP US WITH THE
DEMAND RESPONSE WE NEED AT EIGHT
O'CLOCK IN THE EVENING. SO THEY
POWER UP. UH YOU KNOW, DURING
THE DAY AND AT NIGHT THEY DON'T
TAKE FROM THE GRID, BUT THEY
ACTUALLY HELP US. SO I JUST
THINK, IF YOU KNOW IF WE'RE
TALKING ABOUT 10,000 FUELING
STATIONS YEAH, I'M SORRY.
CHARGING STATIONS. THANK YOU
VERY MUCH, RIGHT? UM I'M
THINKING OF THE HYDROGEN FUELING
STATIONS. WE'VE BEEN HAVING THEM
BALLADS ABOUT FOR SO LONG.
EXACTLY RIGHT. BUT SO ANYWAY,
THE CHARGING STATIONS THAT WE
HAVE OUT THERE SO THAT'S THE
SECOND ONE. I WOULD HOPE THAT
SOMEBODY COULD HAVE JUST WANT TO
GET THAT ON THE RADAR AND HELP
SOMEBODY COULD TAKE A LOOK AT
THAT. UM AND ONE OTHER QUESTION
THAT I HAD, AND THAT IS THERE
WAS IN THE ORIGINAL, UH,
GOVERNOR'S BUDGET PROPOSAL.
THERE WAS $100 MILLION GREEN
HYDROGEN. YEAH. YOU KNOW,
INNOVATIVE PROJECTS, GRANT. I
DON'T SEE IT HERE HASN'T BEEN
DROPPED, OR AM I MISSING IT? NO
ASSEMBLYMEMBER'S BENEFIT HAS NOT
BEEN DROPPED THAT THAT'S PART OF
THE PACKAGE WE SPOKE TO YOU
ABOUT SOME MONTHS AGO. THAT'S
STILL THERE MAY REVISE. JUST
LOOKS AT ADDITIONAL ITEMS. GOT
IT, OKAY. THANK YOU VERY MUCH.
ASSEMBLYMEMBER'S I'M A ON YOUR
QUESTION ABOUT THE INFLATIONARY
ADJUSTMENT. WE DO HAVE A
PROVISION IN THE PROPOSED
LITHIUM TRAILER BILL THAT DOES
ENVISION BEGINNING JANUARY 1ST
2025 THAT IT WOULD HAVE AN
ADJUSTMENT BASED ON CPI. AYE. SO
THAT'S THAT YEAR OR STARTING
STARTING THAT YEAR EVERY YEAR
CORRECT ANNUALLY THEREAFTER.
GREAT. THANK YOU. YOUR VOICE HAS
BEEN HEARD. MR GARCIA GOVERNMENT
AT WORK. I WANT TO ACKNOWLEDGE
THE GOVERNORS REPRESENTATIVES
HAVE BEEN WORKING ON THIS
LITHIUM DISCUSSION. IT'S AN
ONGOING CONVERSATION FOR QUITE
SOME TIME NOW AND LOOK, ONE OF
THE PRESENTERS TALKED ABOUT THIS
BEING LOOKED AT AS A NATIONAL
SECURITY ISSUE. UM DOMESTIC
PRODUCTION OPPORTUNITY TO NOT
RUN INTO THE SUPPLY CHAIN
CHALLENGES THAT WE'VE SEEN. IN A
PANDEMIC AND EVEN IN THIS
PARTICULAR PHASE OF THE PANDEMIC
EXPERIENCE, WE HAVE A UNIQUE
OPPORTUNITY. UH, AT THE SALTON
SEA. UM NOW THAT IT IS FRONT AND
CENTER OF MANY CONVERSATIONS,
WHICH HASN'T BEEN THE CASE FOR
QUITE SOME TIME. TO BE ABLE TO
CREATE THIS INTERSECTION OF WE
TALKED ABOUT THE NATIONAL
SECURITY ISSUE. WE'RE TALKING
ABOUT POTENTIAL MANUFACTURING
OPPORTUNITIES. THERE ARE A
NUMBER OF PROPOSALS THAT ARE
OUTLINED HERE FOR INDUSTRY TO
TAKE ADVANTAGE OF GETTING OFF
THE GROUND WITH THIS NEW
INDUSTRY. THERE'S THE INNOVATION
FUND THAT BILLION DOLLARS,
THERE'S $45 MILLION INVESTMENT
GOING TO THE CAPITAL PROGRAM. AS
WELL THAT I'VE HEARD THEM SPEAK
QUITE, UM, POSITIVELY ABOUT SO
THERE ARE A LOT OF INCENTIVES
THERE THAT ARE BEING PUT FORWARD
TO GET THIS INDUSTRY OFF THE
GROUND. AND THE CONVERSATION
ABOUT THE TAXES AN ONGOING ONE
WITH THE INDUSTRY WITH THE LOCAL
COMMUNITIES, LOCAL GOVERNMENTS
AND COMMUNITY BASED
ORGANIZATIONS THAT WANT TO SEE A
DIRECT BENEFIT OF ANY LITHIUM
RECOVERY THAT TAKES PLACE IN
THIS REGION TO IMPROVE THE
QUALITY OF LIFE FOR THE PEOPLE
IN IMPERIAL COUNTY THAT
HISTORICALLY HAVE SEEN THE
HIGHEST UNEMPLOYMENT RATES. IN
THE STATE OF CALIFORNIA EVEN
WHEN THE STATE HAS BEEN AT SOME
OF THE LOWEST AND SO WE'VE GOT A
GREAT OPPORTUNITY HERE, AND I
JUST WANTED TO HIGHLIGHT THOSE
EXTREMELY IMPORTANT POINTS AND
ASSOCIATE MY UM, THOUGHTS AND
OPINIONS WITH THE OUTLINED
BUDGET PROPOSAL THAT IS IN FRONT
OF US. I'M CONFIDENT WE'LL GET
TO A PLACE WHERE WHATEVER THE
TAX BREAKDOWN IS, WILL BE FAIR.
WHEN YOU LOOK AT THE OTHER
FUNDING OPPORTUNITIES THAT ARE
THERE TO HELP THE INDUSTRIES GET
OFF THE GROUND. BUT WHAT AN
AMAZING OPPORTUNITY FOR
CALIFORNIA TO CONTINUE TO LEAD
AND ACHIEVE ITS CLIMATE AND IN
THIS PARTICULAR CASE IT'S A
TRANSPORTATION ELECTRIFICATION
GOALS THAT HAVE BEEN SET FORWARD
AND AGAIN IMPROVE THE QUALITY OF
LIFE OF THE PEOPLE WHO LIVE OUT
IN IMPERIAL COUNTY THAT I AM
FORTUNATE ENOUGH TO REPRESENT.
IN THE LEGISLATURE. SO I JUST
WANTED TO THANK YOU FOR YOUR
WORK ON THIS. CHAIR BLOOM COULD
JUST FOLLOW UP ON THAT VERY
QUICKLY. YOU MENTIONED THE
NATIONAL SECURITY IMPLICATIONS
OF THAT. AND I THINK THAT, UH,
IT'S IMPORTANT FOR US TO RAISE
THAT. RIGHT NOW. WHAT I THINK IT
WOULD BE CRAZY JUST BECAUSE
SOMEBODY ELSE COMES IN AND
SECURES A LONG TERM CONTRACT FOR
THIS LITHIUM BECAUSE THEY HAVE
THE RESOURCES TO PAY MORE
ETCETERA. WE HAVE TO THE WORLD'S
GOING TO CHANGE. AND REGIONAL
REGIONAL APPROACHES AND SECURITY
IS GOING TO BE REALLY IMPORTANT.
THANK YOU INDEED. HAVE ONE
QUESTION FOR YOU. THAT'S A
FOLLOW ON QUESTION FROM
ASSEMBLYMEMBER'S RIVAS, THE AH,
PROPOSAL FOR STREAMLINED SECRET
PROCESS FOR POWER PLANT, CITING
UM, IS THAT THE STATE LEVEL? UM
AND IT'S NOT OFFERED TO
RENEWABLE GENERATION THAT CITED
AT THE COUNTY LEVEL. UM AND THE
QUESTION IS, I WANT THIS
ULTIMATELY ENCOURAGE ALL
PROJECTS TO SEEK STATE CITING
BECAUSE YOU'RE SORT OF
INCENTIVIZING. THANK YOU CHAIR.
IT'S A GOOD QUESTION. I DON'T
THINK THE ANSWER IS NO. AND THE
REASON IS BECAUSE THERE MIGHT
HAVE BEEN SOME CONFUSION ABOUT
SEQUEL YOU HEARD FROM THE DWR
REPRESENTATIVE THAT THERE THAT
THERE IS A PROPOSAL TO ADJUST
SEQUEL FOR A VERY NARROW
PURPOSE, BUT FOR THE OTHER
ACTIVITY SPELLED OUT IN THE
TRAILER BILL, INCLUDING WHAT
YOU'RE I THINK YOU'RE REFERRING
TO THE OPT IN LEGISLATION SEQUEL
WOULD BE WOULD BE UNCHANGED.
WHAT WE'RE LOOKING TO DO IS
SPEED UP THE TIME IT WOULD TAKE,
SO WE ORDINARILY AIM FOR A YEAR
TO COMPLETE THE SECRET PROCESS
FOR CITING, UM, THERMAL POWER
PLANTS. WE'D BE LOOKING TO CUT
THAT TO 270 DAYS. I TAKE YOUR
POINT. BUT THAT ITSELF AS AN
INCENTIVE, SO WOULDN'T IT
INCENTIVIZED? OF PROJECTS OR
MOST PROJECTS, TOO. AH! UTILIZE
THE STATE PROCESS FOR THE STATE,
CITING RATHER THAT PART THAT
PART MIGHT THE SPEED. ON THE
OTHER HAND, THE TRAILER BILL
ALSO IMPOSES OBLIGATIONS ON
DEVELOPERS I QUOTED EARLIER FROM
THE STAFF REPORT THAT FLAGGED
AGREEMENTS WITH LABOR COMMUNITY
INVESTMENTS AND THINGS LIKE
THAT, SO DEVELOPERS WOULD LOOK
AT THE AT THE OPTIONS BEFORE
THEM LOCAL OR SEEK TO OPT IN,
AND SOME MIGHT FIND IT
APPEALING. SOME MAY NOT KIND OF
A BASKET OF THINGS THAT THEY
WOULD HAVE TO WORKTHEIR WAY
THROUGH, AND THAT'S RIGHT. I
SEE. OKAY, UM. WELL IN THE
INTEREST OF TIME. I'M NOT GOING
TO ASK ANY MORE QUESTIONS, BUT I
AM GOING TO THANK UH, EVERY
PRESENTER TODAY FOR THE LITERAL
TORRENT OF INFORMATION THAT
WE'VE RECEIVED OVER THE LAST
COUPLE OF HOURS TO REALITY IS,
UH, THIS IS A HEARING THAT
JUSTIFIABLY COULD HAVE TAKEN
SEVERAL DAYS. PROBABLY SHOULD
HAVE WE DO HAVE A. AH AND THEN
PREDICTABLE EMERGENCY THAT WE
ARE FACING OVER THE OVER THE
COMING YEARS AND WE HAVE TO GET
ON TOP OF THIS ISSUE AS QUICKLY
AS POSSIBLE. AND I CERTAINLY
RESPECT THE NEED FOR THAT. BUT I
UM, I WISH THAT WE HAD MORE TIME
TO SPEND FULFILLING OUR OUR
OBLIGATIONS. BUT I THANK YOU SO
MUCH FOR BEING VERY CLEAR AND
CONCISE AND FORTHCOMING WITH THE
INFORMATION. UH TODAY AND LOOK
FORWARD TO WORKING ON THIS PART
OF THE BUDGET. WE'RE GOING TO
TURN NOW TO PUBLIC COMMENT. WE
HAVE, UH, A WHOLE BUNCH OF
PEOPLE WHO HAVE BEEN WAITING
PATIENTLY TO, UH, TO PROVIDE THE
PALTRY AMOUNT OF COMMENT THAT I
ALLOW ONE MINUTE PER PERSON WILL
TAKE COMMENTS FROM THOSE WHO ARE
IN THE ROOM. UH FIRST AND THEN
THOSE WHO ARE ALSO WAITING VERY
PATIENTLY ON THE TELEPHONE AGAIN
. I'LL REPEAT THAT NUMBER AT THE
RISK OF INCREASING OUR NUMBERS
DRAMATICALLY. AH THE PHONE
NUMBER IS 87769. AND THE ACCESS
CODE IS 131. 5444 AGAIN. YOU'LL
HAVE ONE MINUTE TO SPEAK AND
LET'S BEGIN WITH THOSE WHO ARE
HERE IN THE ROOM. WELCOME MR
CHAIR MEMBERS GREGG COOK,
REPRESENTING NORTHERN CALIFORNIA
POWER AGENCY. THE ROBUST
CONVERSATION YOU'VE HAD EARLIER
REGARDING STRATEGIC RESERVE
PLANNING. LEADS DIRECTLY TO THE
COMMENTS THAT I WANTED TO MAKE
IN THE TRAILER BILL PROPOSED
LANGUAGE. THERE IS A SECTION
THAT WOULD REQUIRE THAT THE
PUBLICLY OWNED ELECTRIC
UTILITIES WHO ARE PARTICIPATING
IN THE CALIFORNIA I S O PLANNING
RESERVE PLANNING BE GIVEN TO THE
ENERGY COMMISSION. RATHER THAN
THE PUBLICLY OWNED LIKE A
UTILITIES GOVERNING BOARD. THAT
IGNORES THE FACT THAT STATE LAW
SAYS THAT THE PUBLICLY ONLY LIKE
UTILITY BOOK GOVERNING BOARD IS
RESPONSIBLE FOR COMPLYING WITH
MINIMUM STANDARDS OF THE WESTERN
ENERGY COORDINATING COUNCIL,
WHICH WE DO UM, AND IT TAKES
AWAY THE RESPONSIBILITY OF THE
GOVERNING BOARD TO OVERSEE THE
ENTIRE ELECTRICITY SYSTEM WITHIN
OUR BECAUSE WE ARE VERTICALLY
INTEGRATED WITHIN THE COMMUNITY.
AS ASSEMBLYMEMBER'S RUIS, UH,
REACHED RETESTS HAS SAID JUST
RECENTLY. THIS IS AN ISSUE ALL
THESE ISSUES TODAY REALLY?
REQUIRE POLICY COMMITTEE
DISCUSSION, AND I STRONGLY URGED
THE POLICY COMMITTEE TO TAKE A
LOOK AT THAT SECTION, WHICH
WOULD REMOVE THE RESPONSIBILITY
OF SOME PUBLIC LOAN ELECTRIC
UTILITIES, THOSE THAT ARE PART
OF THE CALLUS Ó SYSTEM TO
REMOVE THAT PLANNING
RESPONSIBILITY FROM THEIR
LOCALLY ELECTED GOVERNING BOARDS
AND GIVE THAT TO THE ENERGY
COMMISSION. THANK YOU FOR YOUR
CONSIDERATION. THANK YOU. THANK
YOU. MELISSA CORTEZ ON BEHALF OF
THE CALIFORNIA WIND ENERGY
ASSOCIATION AND WE WANT TO OFFER
ARE VERY STRONG SUPPORT TO THE
PROPOSAL IN THE TRAILER BILL TO
CREATE AN OPTION FOR CE CE,
CITING FOR CERTAIN RENEWABLE AND
STORAGE PROJECTS. WE NEED 3500
MEGAWATTS OF NEW WIND BY 2025.
THIS IS IN ADDITION TO OFFSHORE
AND OUT OF STATE WIND, SO THAT
INCREASES OUR CAPACITY BY 60% IN
THE NEXT THREE YEARS. HISTORIC
WHEN REGIONS HAVE BEEN BUILT
OUT. IN FEDERAL LANDS ARE
LARGELY OFF LIMITS, AND THAT
LEAVES VERY LIMITED DISPERSED
AREAS WHERE WIND IS NEW TO THE
LANDSCAPE AND HAS PROVEN VERY
CHALLENGING TO SITE PROJECTS IN
THOSE REGIONS. IF WE'RE SERIOUS
AS A STATE ABOUT MEETING OUR
CLIMATE GOALS AND OUR
RELIABILITY NEEDS, WE NEED TO
LOOK AT NEW WAYS TO CITE THESE
PROJECTS AND GET THIS CLEAN
ENERGY ONLINE. THE GOVERNOR'S
PROPOSAL IS A VIABLE OPTION TO
LOCAL PERMITTING FOR QUALIFYING
PROJECTS SEE EC, CITING IS NO
CAKEWALK. THE LANGUAGE INCLUDES
SEQUA AND CONSIDERATION OF LOCAL
BENEFITS AND AGREEMENTS. WE'D
URGE YOUR SUPPORT FOR THIS
PROPOSAL. THANK YOU. GOOD
AFTERNOON, MR CARON MEMBERS
CARON LING ABOUT THIS SOLANO
COUNTY BOARD OF SUPERVISORS,
ACTUALLY SPEAKING AND OPPOSITION
UNLESS AMENDED TO THE ENERGY,
CITING PROPOSAL THAT THE
PREVIOUS SPEAKER WAS ADDRESSING.
SOLANO COUNTY IS HOME TO THE
TRAVIS AIR FORCE BASE, WHICH
PROVIDES LOGISTICAL SUPPORT TO
THE WESTERN HEMISPHERE,
PARTICULARLY RIGHT NOW ENGAGED
IN HUMANITARIAN RELIEF FOR
UKRAINE, WHICH MATTERS A LOT THE
SIGHTING OF VERY LARGE WIND
TURBINES IN THE RADAR PATH OF
THE AIR FORCE BASE IS VERY
PROBLEMATIC FOR THE COUNTY. SO
THE IF THE TRAILER BILL IS NOT
AMENDED TO EXCLUDE AREAS AROUND
THE AIR FORCE BASE AND THEY GO
TO THE STATE AND THE STATE
DOESN'T STOP THE SIGHTING OF A
GIANT WIND TURBINE IN THE PATH
pTOWER. PEOPLE CAN'T TELL THE
DIFFERENCE BETWEEN A PROP PLANE
ENGINE OR A PROPER TEAM, PROP ON
AN ENGINE THAT OF AN AIRPLANE OR
A TURBINE, SO IT CREATES A
NATIONAL SECURITY ISSUES FOR THE
AIR FORCE BASE. THE AIR FORCE
HAS A POLICY OF NOT ACTUALLY
INJECTING THEMSELVES INTO LOCAL
LAND. USE AUTHORITIES SO IF THE
STATE MAKES THE DECISION TO CITE
A VERY LARGE WIND TURBINE IN THE
PATH OF THE AIR FORCE BASES
RADAR EVENTUALLY, IF IT'S NOT
SAFE FOR THEM TO OPERATE THERE
ANYMORE. THEY WILL JUST CLOSE
THE BASE, WHICH IS THE LARGEST
EMPLOYER. IN SOLANO COUNTY, SO
WE HAVE RAISED THIS ISSUE TO THE
ADMINISTRATION DIRECTLY. LAST
YEAR WHEN SOMETHING SIMILAR WAS
PROPOSED. IT'S BACK. IT DOES NOT
EXPRESSLY EXCLUDES, CITING THESE
THINGS IN THE IN THE PATH OF THE
AIR FORCE BASE, AND WE NEED THAT
AMENDMENT TAKING NOTE OF THE
ISSUE. THANK YOU. MR CHAIR AND
MEMBERS BETH ALLAH SO ON BEHALF
OF THE AGRICULTURAL ENERGY
CONSUMERS ASSOCIATION, ENERGY
RELIABILITY IS CRITICALLY
IMPORTANT TO THE AGRICULTURAL
COMMUNITY. YOU CAN UNDERSTAND
AND UNPLANNED OUTAGES HIGHLY
PROBLEMATIC FOR SOMETHING LIKE
FLUID MILK OR OTHER FRESH FRUITS
AND VEGGIES THAT NEED TO GET
PROCESSED. THE PROPOSAL BY THE
ADMINISTRATION IS LOOKING TO
PROCURE CRITICAL RESOURCES TO
BRIDGE THE GAP UNTIL PLANNED.
CLEAN ENERGY RESOURCES CAN COME
ONLINE AS A PERMANENT SOLUTION.
WE ARE SUPPORTIVE OF THESE
ADMINISTRATION PROPSALS ON
ENERGY RELIABILITY AND URGE YOUR
APPROVAL AT THE APPROPRIATE
TIME. THANK YOU. THANK YOU. GOOD
AFTERNOON CHAIR MEMBERS OF THE
COMMITTEE, REBECCA THAT I
SUSPECT HER. I'M HERE ON BEHALF
OF THE IMPERIAL COUNTY BOARD OF
SUPERVISORS WHO WISHES TO
EXPRESS STRONG SUPPORT OF THE
PROPOSALS RELATED TO INVESTMENTS
AND THE DEVELOPMENT OF LITHIUM
VALLEY THAT ARE INCLUDED IN THE
MAY REVISE AND THE TRAILER BILL.
ESPECIALLY FUNDING FOR THE
SPECIFIC PLAN AND PROGRAMMATIC
ER THE FUNDING FOR THE EXPANSION
OF SD SUS BRAWLEY CENTER TO
EXPAND THOSE EDUCATIONAL
OPPORTUNITIES AND WORK, FIRST
TRAINING OPPORTUNITIES AND THE
ESTABLISHMENT OF THE LITHIUM
EXTRACTION LEVY PER METRIC TON.
WE ALSO WANT TO TAKE THIS
OPPORTUNITY TO THANK THE
GOVERNOR ASSEMBLYMAN GARCIA AND
SENATOR WEST SO AND ALL OF YOU.
FOR THEIR LEADERSHIP AND
RECOGNIZING THE SIGNIFICANT
OPPORTUNITY THAT WE HAVE IN
FRONT OF US TO DECREASE OUR
NATION'S DEPENDENCE ON FOREIGN
ENERGY SOURCES AND ALSO TO PLAY
A CRITICAL ROLE IN INCREASING
DOMESTIC SUPPLY CHAIN OF
LITHIUM. THANK YOU. YOU'RE
WELCOME. PATRICK WELSH, WITH THE
CALIFORNIA MUNICIPAL UTILITIES
ASSOCIATION. FIRST ONE ALIGNED
COMMENTS WITH MY COLLEAGUE FROM
THE NORTHERN CALIFORNIA POWER
AGENCY ON THE PLANNING RESERVE
MARGIN PROPOSAL ALSO WANT TO
MAKE A FEW OTHER COMMENTS AND
THANK THE COMMITTEE FOR THE
REJECTION OF THE SURCHARGE. NOW
IS NOT THE TIME TO DO THAT, AND
THERE ARE COMPLICATIONS AND
DEBILITATION. I ALSO WANT TO
NOTE THAT WE ARE SUPPORTIVE OF
THE GOVERNOR'S JANUARY $2
BILLION INVESTMENT PROPOSAL FOR
CLEAN ENERGY TECHNOLOGIES. AND
THEN FINALLY, I WANT TO THANK MR
GARCIA FOR HIS LEADERSHIP ON
CUSTOMER ARREARAGES. WE SUPPORT
THE $1.2 BILLION IN THE
GOVERNOR'S MAY REVISE PROPOSAL.
WE ARE VERY INTERESTED IN THOSE
WHO SUGGESTED THAT THAT MAY
SHOULD BE HIGHER. AND WE WOULD
URGE YOU TO INCLUDE THAT AS PART
OF THE LEGISLATIVE BUDGET
AGREEMENT THAT WAS JUST
ANNOUNCED A FEW MINUTES AGO. WE
THINK THIS IS A HIGHLY
SUCCESSFUL PROGRAM AND THAT WE
CAN PUT MORE MONEY INTO IT NOW,
WHILE WE CONTINUE TO DEBATE
THESE OTHER IMPORTANT PARTS OF
THE BUDGET, THANK YOU. THANK
YOU. SO I SEE. NO ONE ELSE IN
THE ROOM WILL MOVE TO THE PHONES
. OPERATOR ARE YOU OUT THERE? I
AM. WONDERFUL TO PROVIDE. IF YOU
WOULD LIKE TO PROVIDE PUBLIC
COMMENTS TODAY OVER THE PHONE,
PLEASE PRESS ONE THAN ZERO. THAT
COMMAND AGAIN. ONE 10 0. IN OUR
FIRST COMMENT COMES FROM LINE
42. GOOD AFTERNOON, MR CHAIR AND
MEMBERS VINCE WORKMAN, JOE WITH
THE CLIMATE CENTER. THANK YOU
FOR PUTTING ON THIS HEARING. UM
WE'RE EXCITED TO SEE THE FACT
THAT CLEAN DISTRIBUTE ENERGY
RESOURCES HAVE ENTERED THE
BUDGET DISCUSSION MORE
PROMINENTLY. AND URGED THE
LEGISLATURE TO FOCUS ON THAT AS
PART OF THE $21 BILLION CLIMATE
PACKAGE KIND OF ENERGY PACKAGE
THAT WAS JUST ANNOUNCED A COUPLE
MINUTES AGO. WE ARE SUPPORTIVE
OF THE $970 MILLION ALLOCATION.
SHE STILL RESTORED PROPOSED BY
THE ADMINISTRATION, AND WE'RE
ALSO EXCITED TO SEE THE
INCLUSION OF DRS IS PART OF THE
STRATEGIC RESERVE. HOW WE NOTE
THAT THERE IS A LOT OF PLANNING
DOLLARS AND URGED LEGISLATORS TO
ALLOCATE $200 MILLION TO LOCAL
GOVERNMENTS FOR COMMUNITY
ENGINES. ENERGY RESILIENCE
FUNDING UTILIZING CLINTON DRS.
DECIDING. DEPLOYMENT OF THE ERS
IS INHERENTLY JURISDICTIONAL.
LOCAL GOVERNMENTS WHO NEED THE
STATE SUPPORTED DEVELOPING PLANS
THAT CAN TRULY LEVERAGE TO PULL
POTENTIAL OF THE ER, INCLUDING
DVDS THROUGH VEHICLES SCREEN
INTEGRATION ALSO SUPPORTED THE
$30 MILLION ALLOCATION BETWEEN
ENGAGEMENTS. THE PC, BUT WE
ALIGN OURSELVES WITH. GARCIA IS
GOING TO TAKE OVER HERE FOR A
COUPLE OF MINUTES WHILE I
STRETCH MY LEGS. THANK YOU. NEXT
NEXT SPEAKER, PLEASE. ONE
MINUTE. LINE 40. GOOD AFTERNOON
TURBO AND MEMBERS. TYLER TRODDEN
ON BEHALF OF CALIFORNIA
ENVIRONMENTAL JUSTICE ALLIANCE.
ASIAN PACIFIC ENVIRONMENTAL
NETWORK. ENVIRONMENTAL DEFENSE
FUND VOTE SOLAR, CALIFORNIA
ENVIRONMENTAL VOTERS AND
COALITION COMMUNITY SOLAR
ACCESS. CALIFORNIA IS A
RENEWABLE ENERGY LEADER AND HAS
A BALANCED, ROBUST ROOFTOP AND
UTILITY SCALE SOLAR MARKET.
UNFORTUNATELY MANY STATES AS FAR
OUTPACE CALIFORNIA AND
ESTABLISHING VIABLE AND SCALABLE
COMMUNITY RENEWABLE ENERGY
PROGRAMS. AS A RESULT, MOST
CALIFORNIANS CANNOT PARTICIPATE
IN THE BENEFITS OF DISTRIBUTED
ENERGY RESOURCES BECAUSE THEY'RE
RENTERS, YOU KNOW, AFFORDABLE
TOP SYSTEM CONSTRAINTS DUE TO
SHADE, INADEQUATE ROOF SPACE.
FOR THE ROOF CANNOT SUPPORT
SYSTEM. INVESTING ONE BILLION IN
COMMUNITY RENEWABLE ENERGY
PROGRAM WOULD PROVIDE UPWARDS OF
$400 PER YEAR AND UTILITY BILL
SAVINGS FOR 25 YEARS. PER
QUARTER MILLION LOW INCOME
HOUSEHOLDS ACROSS THE STATE
RESIDENTS NEED THE RELIEF. THE
MOST AND IT JUST PROMOTING
COMMUNITY OWNERSHIP AND LOCAL
HIRING ALSO, BECAUSE COMMUNITY
SOLAR PROJECTS WE'VE PAIRED WITH
STORAGE, ROBUST COMMUNITY
RENEWABLE ENERGY PROGRAM
SUPPORTS RELIABLE ENERGY.
PROJECT WHEN THE STATE IS FACING
STRASBOURG CONDITIONS DUE TO
EXTREME WEATHER EVENTS. THANK
YOU. THANK YOU NEXT WEEK. ONE
MINUTE LINE. LINE 44. 9 44. YOUR
MIC IS OPEN. PLANE 47. HI. GOOD
AFTERNOON. CHAIRMAN UH GARCIA
AND CHAIRMAN BLOOM OR CHAIRMAN
GARCIA SUBSTITUTING FOR CHAIRMAN
BLOOM. THANK YOU BOTH FOR YOUR
CONTINUOUS LEADERSHIP AND BUT
ONE SUPPORTING SOME OF THE
INVESTMENTS IN THE MOST MEDIAS
OF COMMUNITIES, INCLUDING THE
IMPERIAL COUNTY, INSULTING, SEE
WE'D LIKE TO CHAIR THANK
CHAIRMAN GARCIA FOR HIS SUPPORT
OF THE PROGRAM. AND WE'D LIKE
TO, UM ALIGN OUR COMMENTS, UM,
IN SUPPORT OF UH, CONTINUOUS.
INVESTMENTS IN THE SALTON SEA,
THE CAP PROGRAM IN AND
TRANSMISSION PROGRAMS AS WELL.
SO UM, ON BEHALF OF THE IMPERIAL
IRRIGATION DISTRICT, WE'D LIKE
TO TAKE THANK SOME OF THEM WERE
GARCIA. AND ASSEMBLYMEMBER'S
BLOOM FURTHER LEADERSHIP. THANK
YOU. NEXT LINE. LINE 28. GOOD
AFTERNOON TURNED MEMBERS.
MADELINE COOPER FROM NIELSEN
MERKSAMER ON BEHALF OF ENERGY
WITH RESPECT, SELF GENERATION
INCENTIVE PROGRAM OR STEP. WE
ASKED THAT THE COMMITTEE AND THE
ADMINISTRATION MAKES ZERO
EMISSION CRITICAL BACKUP POWER,
INELIGIBLE ENERGY STORAGE USE
CASE WITH AN ESCAPE. CURRENTLY
CRITICAL BACKUP BATTERIES THAT
DO NOT INTERCONNECT WITH THE
GRID ARE INELIGIBLE TREATS STEVE
S CHIP INCENTIVES EVEN IF THESE
RESOURCES CAN PROVIDE RESULTS,
RESILIENCY BENEFITS DURING AN
OUTAGE. OR PROVIDE RELIABILITY
BENEFITS WHEN PAIRED WITH TIME
OF USE RATES. CRITICAL BACKUP
POWER UNITS ARE ALREADY DEPLOYED
ON A LIMITED BASIS. BASELINE
CUSTOMERS TO MITIGATE THE IMPACT
OF POWER SAFETY SHUT OFF EVENT.
BY ALLOWING CRITICAL BACKUP
POWER TO BE MORE BROADLY
ELIGIBLE WITHIN SKF STATE COULD
MAKE FUNDING MORE ACCESSIBLE NOT
JUST TO LOW INCOME CUSTOMERS,
BUT ALSO RENTERS AND THOSE
LIVING IN MULTI FAMILY HOUSING
UNIT. THANK YOU. QUÊ. LINE 46.
THANK YOU, MR CHAIR AND MEMBERS
ANDREW ANTHONY ON BEHALF OF THE
ADVANCED ENERGY ECONOMY. WE
AGREE WITH THE MAY REVISE IN THE
CORPORATE ENERGY, RELIABILITY
AND AFFORDABILITY. UM WE BELIEVE
THAT THE STATE MUST TAKE A
COMPREHENSIVE MULTI YEAR
APPROACH. HOW WE SHOW UP
RESILIENCY OR COMMUNITIES AND
SPECIFICALLY FROM MODERNIZING
THE GRID. WE SUPPORT CLEAN
ENERGY SOLUTIONS THAT SHARPENED
AND IN A SHARP, SHARPER FOCUS ON
ZERO MISSION RESOURCES. T
PRIMARILY RESERVED BUDGET
SURPLUS FUNDS FOR THE MOST COST
EFFECTIVE MIX. OF LOCAL CLEAN
GENERATION AND BACKUP POWER, AND
WE SUPPORT THE PROPOSED $295
MILLION INVESTMENTS IN DEMAND
REDUCTION INCENTIVES FOR
RESIDENTS AND BUSINESSES. WE
ALSO REQUEST THAT FUTURE
PLEASURE TRAILER BUILT LANGUAGE,
CLARIFY THAT KNIVES, UTILITY
THIRD PARTY RESOURCES AND NOT
SHUT OUT OF PARTICIPATING IN
THIS NEW PROGRAM. UM AND WE
SUPPORT $1 BILLION FOR EXPANDING
LOCAL, SOLAR AND SOLAR PLUS
STORAGE PROJECTS AND LOW INCOME
COMMUNITIES. WE ALSO ENCOURAGE
THE LEGISLATURE TO SUPPORT
COMMUNITY SOLAR PROJECTS. SO
RENTERS WHICH MAKE UP THE
MAJORITY OF CALIFORNIANS ARE NOT
EXCLUDED. FROM THE CLEAN ENERGY
TRANSMISSION TRANSITION. WE NEED
TO CONTEMPLATE MORE REGIONAL
APPROACH ON HOW CLEAN ENERGY IS
AFFORDABLY AND EFFICIENTLY
COORDINATED WITH NEIGHBORING
STATES. WHEN ENERGY DEMAND IS
GREATEST WANT TO GO THROUGH SOME
LONG, HOT SUMMER MONTHS? WE
APPRECIATE THE COMMITTEE'S
SUBCOMMITTEE IS FOCUSED ON THESE
ISSUES. THANK YOU FOR THE
OPPORTUNITY TO TESTIFY TODAY.
THANK YOU. LINE 26. GOOD
AFTERNOON, MR CHAIR AND MEMBERS
. I'M LARA WALSH, CALIFORNIA
POLICY MANAGER FOR THE
STARFIGHTER FOUNDATION,
RECOGNIZING THERE'S A PRETTY
LONG ROAD TOWARDS PURSUING A
RESPONSIBLE ENERGY FUTURE. JUST
WANT TO CALL YOUR ATTENTION TO A
FRACTURE, SO TO SPEAK IN THE
ROAD RIGHT IN FRONT OF US. IT'S
THE LANGUAGE AND THE TRAILER
BILL THAT EXEMPTS B FROM COAST
COMMISSION REVIEW BECAUSE ACT
PROVIDES A FRAMEWORK FOR MAKING
VALUATIONS ABOUT THE
ENVIRONMENTAL IMPACT OF THESE
MASSIVE ENERGY PROJECT. UM AND
AT LEAST APART FROM THIS BILL
BECAUSE IT REQUIRES PUC TO CITE
THE PROJECTS IN COASTAL ZONE IN
PLACES THAT COMMISSION HAS
IDENTIFIED AS APPROPRIATE FOR
ENERGY FACILITIES, WHICH IS
SUPER IMPORTANT BECAUSE WE
SHOULDN'T BE PUTTING BIG ENERGY
PROJECTS AND SEE LEVEL RISE
HAZARD ZONES. OR IN SPECIAL
WETLAND HABITATS. UM, SO THE
BILL CURRENTLY ALLOWS B TO
SKIP CUSTOMER COMMISSION REVIEW
, AND WE'D LIKE TO REQUEST THAT
THE MEMBERS FIX THIS PROBLEM BY
MAKING AN EXEMPTION FOR THE
COASTAL ZONE. WITHOUT THAT.
THERE'S A REALLY BIG DEAL FOR
OUR COASTAL COMMUNITIES, AND BY
THE WAY THEY ATTEND THE
COMMISSION MEETINGS AS A FORUM
FOR MAKING RELEVANT CONCERNS
KNOWN, SO WE SUPPORT
TRANSPARENCY IN THE DECISION
MAKING PROCESS AS WELL. THANK
YOU. THANK YOU. LINE 30. THE NEW
MEMBERS. CATHERINE FREEMAN LOBBY
RUNNING THAT CALIFORNIA STATE
ASSOCIATION OF COUNTY CANISTER
THE GOAL FOR RELIABLE ENERGY,
INCLUDING FIGHTING NEW
FACILITIES, TRANSMISSION AND
STORAGE, BUT UNFORTUNATELY TE
PROVISIONS RELATED TO SIDING AND
PERMITTING, INCLUDING LANGUAGE
BUT TO ALLOW FOR A PROJECT TO BE
CONSIDERED BY THE STATE. WITHOUT
DIRECT INPUT FROM THE COUNTY
NEEDS SIGNIFICANT WORK AND
CANNOT REALISTICALLY BE
CONSIDERED WITHOUT REVIEWING THE
CURRENT TAX EXCLUSION FOR SOLAR
EXCLUSION REMOVES LOCAL
COMMUNITY TAX REVENUES FROM
BASIC NEEDS. PLANNING SCHOOLS,
LIBRARIES. FIRE MANAGEMENT.
THERE ARE NO CLEAR PARAMETERS
FOR HOW TO EAT PEOPLE CALCULATE
A NET BENEFIT TO THE COMMUNITY
OVER WHAT TIME PERIOD. WHAT WE
DO KNOW IS THIS FACILITIES CAN
HAVE ENORMOUS IMPACT ON VERY
SPECIFIC LOCAL COMMUNITIES,
WHEREAS THE BENEFITS ARE SPREAD
TO OTHER PARTS OF THE STATE ARE
COUNTIES ARE WORKING CLOSELY
WITH ENERGY DEVELOPERS TO SITE
FACILITIES APPROPRIATELY. TO
BALANCE THE NEEDS OF THE
COMMUNITIES HAVE HAD NUMEROUS
CONVERSATIONS WITH INDUSTRY OVER
THE PAST MONTH SINCE THEN, THE
ORIGINAL ADMINISTRATION PROPOSAL
AND I THINK THERE ARE OTHER WAYS
TO APPROACH THE ISSUE OF
EXPEDITING PERMITTING. WE WOULD
LIKE TO ECHO THE COMMENTS THAT
ASSEMBLYMEMBER'S EDUARDO GARCIA
ON THE LITHIUM VALLEY THESE
THESE ISSUES TAKE TIME AND CLOSE
WORK WITH COUNTIES AND
COMMUNITIES, AND IN THE END,
THEY MUST BENEFIT THE LOCAL
COMMUNITIES AS WELL. SUMMER
DREAM TRAILER BILL POLICY
WORKING GROUP WOULD BE
APPROPRIATE AND WE HOPE YOU'LL
CONSIDER THAT OPTION. THANK YOU.
THANK YOU. LINE 38. THANK YOU.
CHAIR AND MEMBERS ALEJANDRO
SOLIS, REPRESENTING COMMITTED
COMMITTED TO BE CALLED VIA IS AN
ESTABLISHED ENVIRONMENTAL
JUSTICE ORGANIZATION WITH OVER
35 YEARS OF HISTORY, BASED IN
BRAWLEY, CALIFORNIA, SERVING THE
DISADVANTAGED COMMUNITIES OF
IMPERIAL COUNTY AND THE
SOLVENCY. WE HAVE A LONG HISTORY
OF WORKING ON CALIFORNIA,
MEXICO, BORDER AIR AND WATER
POLLUTION ISSUES. INCLUDING A
FOCUS ON SO ON THE RESTORATION,
A LITHIUM DEVELOPMENT IN THE
REGION. SUPPORTS THE GOVERNOR'S
LITHIUM VALLEY PACKAGE PROPOSED
IN THE MAY REVISE. IN PARTICULAR
. WE APPLAUD THE $5 MILLION
ALLOCATION TO IMPERIAL COUNTY
AND THE $800,000 TO SUPPORT
COMMUNITY ENGAGEMENT IN THE
COUNTY'S ENVIRONMENTAL IMPACT
REPORT RELATED TO GEOTHERMAL AND
LITHIUM RECOVERY AND SO ON SEA
REGION. THIS ANNOUNCED FOR
EQUITABLE ENGAGEMENT, WHICH HAS
SIGNIFICANT LOCAL COMMUNITY
SUPPORT FROM CBOS, E. J AND
NUMEROUS STAKEHOLDERS ALIKE. WE
ALSO STRONGLY SUPPORT
ASSEMBLYMEMBER'S AS LANDFILL.
GARCIA'S MEMBER BUDGET REQUEST
FOR $5 MILLION TO FUND THE 1ST
40 CAMPAIGN COMMUNITY. THAT
INITIATIVE AIMED AT INSTALLING
40 PUBLICLY ACCESSIBLE EVIE
CHARGING STATIONS IN IMPERIAL
COUNTY. WHICH CURRENTLY ACCOUNTS
FOR THE LOWEST NUMBER OF E V.
CHARGERS PER CAPITA IN THE
ENTIRE STATE. WE ALSO SUPPORT
THE $80 MILLION ALLOCATION TO
STS YOU FOR STEM EDUCATION
CENTER IN BALI. THESE
INVESTMENTS WILL PROVIDE
IMPORTANT IMPORTANT ECONOMIC
STIMULUS WITH THE POTENTIAL TO
SUPPORT COMMUNITY PROJECTS THAT
WILL NOT ONLY HELP DISADVANTAGED
COMMUNITIES RESIDING IN IMPERIAL
COUNTY BUT ALSO ASSIST THE STATE
AND MEETING ITS GREENHOUSE GAS,
CLEAN TRANSPORTATION AND CLEAN
ENERGY GOALS. THANK YOU. THANK
YOU VERY MUCH. LINE 36. HI THANK
YOU. THIS IS JAIME KATZ WITH
LEADERSHIP COUNCIL FOR JUSTICE
AND ACCOUNTABILITY. I WANT TO
ECHO THE COMMENTS OF SAHARA
REGARDING COMMUNITY RESILIENCE
CENTERS, COMMENTS OF NRDC THAT
ANY INVESTMENTS IN ENERGY
RESERVES. MUST NOT INCREASE
LOCAL AIR POLLUTION IN DOCKS.
LEADERSHIP COUNCIL ALSO SUPPORTS
THE $1.2 BILLION FOR ELECTRICITY
UTILITY ARREARS. HOWEVER WE CALL
ON ELIGIBILITY FOR THIRD PARTY
THAT TAKEN ON BY RESIDENTS TO
STAY CURRENT WITH THEIR ENERGY
BILLS. WE ALSO CALL FOR 200 FOR
THE $250 MILLION IN ADDITIONAL
TRANSMISSION IN THE SULTAN'S THE
REGION TO INCLUDE INVESTMENTS IN
TRANSMISSION TO RESIDENTS IN THE
SALTON SEA REGION, WHO FACED
RECURRING POWER OUTAGES DURING
PERIODS OF EXTREME HEAT. WITH
REGARDS TO INVESTMENTS IN
LITHIUM EXTRACTION. WE ARE GLAD
TO SEE $5 MILLION OF INVESTMENT
IN COMMUNITY PLANNING AND
ENGAGEMENT OF OUR COMMUNITY.
ENGAGEMENT MUST HAPPEN NOW AND
THROUGHOUT THE PROCESS, NOT
AFTER KEY PLANNING DECISIONS
HAVE ALREADY BEEN MADE. AND ALL
INVESTMENTS IN IN ALL
INVESTMENTS IN AND COMMITMENTS
TO MINIMIZING COMMUNITY IMPACTS
AND MAXIMIZING COMMUNITY
BENEFITS MUST INCLUDE THE
EASTERN COACHELLA VALLEY IN
RIVERSIDE COUNTY AS RESIDENTS
AND COMMUNITIES ARE PART OF THE
SALTON SEA REGION. THANK YOU SO
MUCH. THANK YOU. THE LINE OF 43.
9, 43 OR MIKE IS OPEN. GOOD
AFTERNOON CHAIR, BLOOM AND
MEMBERS. MY NAME IS JENNY
REFUGEE AND I AM HERE ON BEHALF
OF THE IMPERIAL VALLEY
ENVIRONMENTAL HEALTH COALITION.
THE IMPERIAL VALUE.
ENVIRONMENTAL HEALTH COALITION
SUPPORTS THE GOVERNOR'S LITHIUM
VALLEY PACKAGE PROPOSED IN THE
MAY REALIZE THAT THE BUDGET WE
ALSO STRONGLY SUPPORT
ASSEMBLYMEMBER'S LÀ BOLLOCKS ES
BUDGET REQUEST. FOR $5 MILLION
IN FUNDING FOR THE 1ST 40
CAMPAIGN COUNTY WOULD GREATLY
BENEFIT FROM THE IMPLEMENTATION
OF 40 PUBLICLY ACCESSIBLE EVIE
CHARGING STATIONS CONSIDERING
THE IMPERIAL VALLEY HAS THE
LOWEST PER CAPITA IN THE STATE
OF CALIFORNIA. THE INVESTMENTS
WILL SUPPORT OUR DISADVANTAGED
COMMUNITIES, ECONOMIES AND
SUPPORT PROJECTS THAT ARE COUNTY
SO DESPERATELY NEEDS. NOT ONLY
WILL THEY SUPPORT OUR
COMMUNITIES, BUT THEY WILL ALLOW
US TO SUPPORT THE STATE'S GOALS
REGARDING CLEAN ENERGY, CLEAN
TRANSPORTATION AND REDUCING OUR
GREENHOUSE GAS EMISSION. ALSO WE
STRONGLY SUPPORT THE INVESTMENT
OF THE $80 MILLION FOR SAN DIEGO
STATE UNIVERSITY. TO DEVELOP A
BROLLY CAMPUS WITH THE STEM
CENTER. THIS INVESTMENT WILL
DRASTICALLY EXPAND THEM
OPPORTUNITIES FOR DEVELOPING
NEEDS FOR THE CURRENT AND FUTURE
WORKFORCE, AS WELL AS SUPPORT
THE EFFORTS TO ENHANCE ENHANCE
CALIFORNIA'S CLEAN ENERGY
SECTOR. THANK YOU. THANK YOU.
LINE 37. TRY MY NAME IS ALI
HILLIARD WITH REIMAGINED POWER.
WE APPRECIATE THE FOCUS ON
RELIABILITY IN THE BUDGET
PROPOSALS AND REQUEST THAT
MICROGRIDS AS A DYNAMIC RESOURCE
THAT PROVIDES FIRM GRID CAPACITY
AT BACKUP POWER FOR CUSTOM. ART
WAS IT? WE INCLUDED IN THE FINAL
LANGUAGE OF THE TRAILER BILL. WE
ARE CONCERNED BY THE CPUC
PROPOSAL TO INSTITUTE FIXED
CHARGES ON CUSTOMERS THAT RUNS
COUNTER TO OUR LONGSTANDING
ENERGY CONSERVATION GOALS BY
REMOVING THE INCENTIVE TO
CONSERVE OR SHIFT ENERGY USAGE.
POLICY PROPOSALS SHOULD BE
CONSIDERED UNDER THE NORMAL
LEGISLATIVE PROCESS, NOT
AUTHORIZED THROUGH THE BUDGET.
THANK YOU FOR THE OPPORTUNITY TO
PROVIDE COMMENTS TODAY. THANK
YOU VERY MUCH. LINE EIGHT.
GONZALES WE HAVE CONTROLLED
THERMAL RESOURCES. WE ARE
CONCERNED THAT THE PROPOSED PER
10 LITHIUM TAX WILL DISADVANTAGE
. LITHIUM RECOVERY FROM BOLIVIAN
VALLEY HAS PROPOSED THE TAX WILL
ONLY APPLY TO LITHIUM SOURCE
FROM THE LITHIUM VALLEY. LITHIUM
SOURCE FROM OTHER PARTS OF THE
STATE LIKE REAL TENTACLES THAT
THE, UM OPERATION AND MORON
CALIFORNIA OR LITHIUM THAT IS
IMPORTED INTO CALIFORNIA FROM
OTHER STATES OR COUNTRIES WILL
NOT BE SUBJECT TO THIS TAX,
CREATING A SIGNIFICANT AND
UNFAIR TAX ADVANTAGE. FOR THOSE
LOOKING PRODUCTS OVER LITHIUM
SOURCE FROM THE LITHIUM VALLEY.
WE ENCOURAGED THE COMMITTEE TO
NOT RUSH THIS ITEM AND TO
SERIOUSLY CONSIDER HOW SUCH A
SIGNIFICANT TAX WILL AFFECT THE
COMPETITIVE NETS OF THE LITHIUM
VALLEY. WE ALSO ENCOURAGE YOU TO
DEVELOP A TAX BASED ON SALES
RECEIPTS AND NOT AN ARBITRARY
PER 10 NUMBER THAT DOES NOT
CAPTURE THE REALITIES OF THIS
GLOBAL COMMODITY. OR THE
HEADWINDS INHERENT BETWEEN MASON
INDUSTRY THAT IS JUST BEGINNING
TO DEVELOP THE INFRASTRUCTURE
NEEDED TO MAKE THE LOOKING
VALLEY A REALITY. THANK YOU VERY
MUCH FOR YOUR TIME. THANK YOU.
LINE 22. HELLO, ERIC REYES ON
BEHALF OF LOS AMIGOS
INCORPORATED COMMUNITY BASED
NONPROFIT IN IMPERIAL VALLEY
ADVOCATING FOR UNDERSERVED
FAMILIES, FARM WORKERS,
IMMIGRANTS. AND OUR COMMUNITY
LOOKS, AMIGO SUPPORT THE
GOVERNOR'S MADE BUDGET. REVISED
OF THE LITHIUM VALLEY BUDGET
PACKAGE AS PROPOSED, WE STRONGLY
SUPPORT THE FIVE MILLION
ALLOCATION TO THE IMPERIAL
COUNTY AND INCLUSION OF THE
800,000 FOR COMMUNICATION FOR
THE E I R PROCESS. THIS MUST BE
DONE. BEGAN DIRECTLY FROM THE
BOTTOM ON THE ALSO THE EIGHT
MILLION FOR THE SAN DIEGO STATE
SPENDING REAL VALLEY CAMPUS. AND
AN EQUITABLE LEVY. THAT WILL
NOT, UH, NOT ALLOWED FOR
COMMUNITIES TO BE LEFT OUT OF A
BENEFIT AS WELL. WE STRONGLY
SUPPORT THE FIVE MILLION FOR
ASSEMBLYMEMBER'S CIA'S REQUEST
FOR COMMUTATION BECAUSE 1ST 40
BEING CHARGING STATION IN THE
COUNTY WITH THE LOWEST
TEMPERATURE IN THE STATIONS.
THESE INVESTMENTS WILL ENSURE
THE EQUITABLE DEVELOPMENT A
LITHIUM VALLEY'S NEW GREEN
ECONOMY. WE'RE HELPING THE STATE
REACHED ITS CLIMATE GOALS. AND
EMISSIONS CAN IN CONTROL. THANK
YOU VERY MUCH. THANK YOU. LINE
34. GOOD AFTERNOON MEMBERS ROB
SPIEGEL WITH THE CALIFORNIA
MANUFACTURERS AND TECHNOLOGY
ASSOCIATION, OR SIENTE, A. WE
ARE EXPRESSING OUR SERIOUS
CONCERNS WITH THE PROPOSED
TRAILER BILL LANGUAGE, WHICH
WOULD ESTABLISH A NEW
MULTIMILLION DOLLAR EXTRACTION
TAX ON LITHIUM. SEEM TO WOULD BE
HAPPY TO WORK WITH THE
ADMINISTRATION AND THE MEMBERS
OF THIS COMMITTEE ON AN
ALTERNATIVE TAX PROPOSAL, BUT WE
DO ASK THAT ANY FURTHER ACTION
ON THE TREASURY BILL LANGUAGE AS
CURRENTLY DRAFTED. BE WITHHELD
UNTIL A REASONABLE TAX STRUCTURE
IS DEFINED. THANK YOU. THANK
YOU. LINE 31. MR CHAIR. REMEMBER
MY NAME IS ROCKY RUSHING WITH
ECO EQUITY ON BEHALF OF ALSO SEE
SCIENCE AND EDUCATION CENTER,
LOCATED AT THE PUERTO GLOSS
ANGELES. I WOULD LIKE TO ASK
THAT OUTSIDE THE REQUEST FOR
FUNDING TOWARDS INFRASTRUCTURE
EXPANDED BE INCLUDED IN THE
LEGISLATURES BUDGET PROPOSAL,
THIS INVESTMENT WOULD BRING MANY
RETURNS TO THE STATE AND QUEEN
ADVANCEMENTS IN CLIMATE
RESILIENCY. GREEN HYDROGEN
RENEWABLE ENERGY, CARBON CAPTURE
FROM THE OCEAN DEPLOYMENT AND
RECOVERY SPACE FOR FIRST
RESPONDERS TO NATURAL DISASTERS
AND A NEW HOME FOR STATE, FISH
AND WILDLIFE STAFF AND
EQUIPMENT. IT ALSO PROVIDES A
GREAT STEM OPPORTUNITY FOR L A.
U. S. D AND COMMUNITY COLLEGE
STUDENT. AND AN OCEANFRONT
LABORATORY FOR OUR TOP
UNIVERSITIES LAST WEEK, ECHO
EQUITY WOULD LIKE TO ALIGN
OURSELVES TO COMMENTS EXPRESSED
IN PAST SUB STREET HEARINGS BY
THE CHARGE, HEAD COALITION AND
OTHERS REGARDING THE QUEEN.
CURRENTS FOR ALL PROGRAM. WE
URGED THE LEGISLATURE TO FLIP
THEM A REVISED PROPOSAL AND
ALLOCATE 250 MILLION TO THE FIVE
EXISTING PROGRAMS AND 50 MILLION
FOR THE STATEWIDE EXPANSION.
ADMINISTRATION'S VISION FOR THE
PROGRAM WOULD DILUTE THE STATE'S
COMMITMENT TO DISADVANTAGED
COMMUNITIES AS ARTICULATED IN SP
12 75, WHICH YOU AS YOU RECALL,
MR CHAIR SUPPORTED THANK YOU SO
MUCH FOR YOUR TIME. THANK YOU. 9
45. MHM UM GOOD AFTERNOON. GILLY
EVENTS KING REPRESENTING
SEPARATOR FOUNDATION AND OUR
CENTRAL CENTRAL COAST CHAPTERS,
INCLUDING THE CHAPTER, WHICH IS
VERY ACTIVE IN ADVOCATING FOR
RESPONSIBLE PROJECTS WITHIN THE
COUNTY. STUPIDITY IS MISSING.
IT'S TO PROTECT OUR OCEANS,
WAVES AND BEACHES. AND, OF
COURSE, THE SPECIAL FEATURES OF
OUR 108 140 MILES OF EXPLAINING
CALIFORNIA. I AM ACTUALLY THE
CALLS OF OTHER COMMENTATORS THAT
HAVE RAISED CONCERN ABOUT AND
ASPECT OF A TRAILER BILL THAT
COULD IMMEDIATELY NEGATIVELY
IMPACT OUR MEMBERS AND FAMILIES
TO THIS. THEY'RE THE CO ENERGY
PROJECT IS THE BASE OF POLLSTER
PEAK WITH IMMEDIATELY BE EXEMPT
FROM REVIEW BY THE COASTAL
COMMISSION. HUGE ENERGY PROJECTS
SUCH AS THIS PROJECT REALLY HAVE
TO BE REVIEWED FOR CONSISTENCY
WITH THE COASTAL ACT BECAUSE OF
ALL THE SENSITIVE BECAUSE THEIR
HABITAT AND CLIMATE ISSUES IN
THE AREA AND BECAUSE THE
COASTLINE IS A KEY FEATURE OF
THIS COMMUNITY, IT'S A PROBLEM
THAT WAS TRAILER BILL DOES NOT
PROVIDE FOR THE COASTAL
COMMISSION AND COASTAL ACTIVE
YOU AND WE REQUEST THAT IS
SITTING AUTHORITY BE EXPRESSLY
LIMITED. TWO SIDES IN THE
COASTAL ZONE PREVIOUSLY
IDENTIFIED BY IT BECAUSE THE
COMMISSION AS APPROPRIATE FOR
ENERGY FACILITIES. BECAUSE LOOK
AT MISSION MEETINGS ALSO GIVE
OUR CHAPTER AND OTHER PEOPLE
LIKE REMEMBERS AS A PUBLIC FORUM
TO EXPRESS THEIR CONCERNS IN THE
COASTAL ZONE. SO IN LIGHT OF ALL
THIS CONCERNS THE MOST
APPROPRIATE IMMEDIATE FIX TO THE
PROBLEM. WITH THE BILL OR TO
EXEMPT THE COASTAL ZONE FROM
LANGUAGE YOU VERY MUCH THIS IS
SUPER IMPORTANT ISSUE FOR US AND
OUR THOUSANDS OF GRASSROOTS
MEMBERS IN CALIFORNIA. THANK YOU
FOR YOUR COMMENTS. LINE 32. GOOD
AFTERNOON MEMBERS, JOHN
HERNANDEZ CULTURAL CENTER AND
COUNTY YOUR WILLINGNESS AND
ABILITY TO SUPPORT THE
GOVERNMENT'S RECORD. MM HMM.
NGUYEN FOR OUR YOU KNOW,
ACTUALLY. TO CHANGE FOR THE. UH
DEFINITELY, AND ALSO THE
ECONOMIC AND THIRD YOUTH TO
SUPPORT US DOWN HERE AND CORNER
OF CALIFORNIA IS STILL PART OF
CALIFORNIA. WE HAVEN'T BEEN
FORGOTTEN THANKS TO LEGISLATORS
. NEVER URGE YOUR SUPPORT. AND I
THANK YOU FOR LISTENING TO US.
PLANS TAKING EXPERT THANK YOU
VERY MUCH. LINE 48. GOOD
AFTERNOON, MR CHAIR MARIO DI
BERNARDO FROM THE SOUTHERN
CALIFORNIA PUBLIC POWER
AUTHORITY. I'LL KEEP IT SHORT.
UM SINCE IT LOOKS LIKE MANY OF
THE MEMBERS HAVE LEFT, BUT JUST
TO BE ON RECORD, WANTED TO STATE
THAT WE ALIGN OURSELVES WITH.
CPA AND TEAM YOU AND OPPOSING
THE PLANNING RESERVE MARGIN AND
THE GOVERNOR'S PROPOSAL. THAT'S
STRICTLY A POLICY ISSUE THAT
SHOULD BE SEPARATE FROM THE
BUDGET PROCESS. AND THEN LASTLY
, WE STRONGLY SUPPORT THE $1.2
BILLION IN FUNDING FOR THE
CALIFORNIA REVENGE PAYMENT
PROGRAM. THANK YOU. THANK YOU.
LINE 49. LINE 49. YOUR MIC IS
OPEN. YES HELLO, APOLOGIES. HIGH
MEMBERS AND CHAIR ELECT
DISCUSSED THROUGH WITH THE
IMPERIAL VALLEY EQUITY AND
JUSTICE COALITION WANTED TO, UH
SUPPORT THE GOVERNOR PROVIDE
COMMENTS TO SUPPORT THE
GOVERNOR'S LITHIUM VALLEY
PROPOSED IN THE MAY REVISE, AND
ALSO, UM FIVE MILLION
ALLOCATIONS. IMPERIAL COUNTY,
INCLUDING THE 800,000 TO SUPPORT
COMMUNITY ENGAGEMENT IN THE
COUNTY'S ENVIRONMENTAL IMPACT
REPORT RELATED TO GEOTHERMAL
ISCHEMIC CORRECTION. WITH THIS
LAST ITEM. WE HOPE THAT THE FIVE
MILLION FOR COMMUNITY ENGAGEMENT
WILL BE AN EQUITABLE COMMUNITY
ENGAGEMENT THAT INCLUDES
ACTIVITIES LIKE PARTICIPATORY
BUDGETING. CONTESTANTS DRIVEN
PLANNING AND PARTICIPATORY
RESEARCH TO ENSURE WE AVOID
MARGINALIZATION THAT COMES. IN
THE COMMUNITIES THAT HAVE
OWNERSHIP WITH LIFTING, PLANNING
AND IMPLEMENTATION. WE NEED THAT
JUST TO INFORM PEOPLE BUT
MEANINGFUL ENGAGE THEM BY
ENSURING COMMUNITY CAPACITY TO
PLAY A LEADERSHIP ROLE IN THE
IMPLEMENTATION OF DECISIONS. AS
WELL AS FOSTERING DEMOCRATIC
PARTICIPATION AS WELL AS EQUITY
TO BRIDGE THE DIVIDE BETWEEN
COMMUNITY AND GOVERNMENT
GOVERNANCE. ALSO WANTED TO
PROVIDE, UH, COMMENTS STRONGLY
IN SUPPORT OF ASSEMBLYMEMBER'S
GARCIA'S 1ST 40 CAMPAIGN. AH THE
COMMUNITY LED INITIATIVES IN
BARRACKS SELLING 40 PUBLIC FULLY
ACCESSIBLE. EVIE CHARGING
STATIONS IN IMPERIAL COUNTY AS
WELL AS STATING OUR SUPPORT FOR
THE 80 MILLION TO THE FCS. YOU
THANK YOU. THANK YOU. LINE 50.
GOOD AFTERNOON CHAIRMAN. BLUE
MEMBERS OF THE COMMITTEE, UM,
NOT KLOPFENSTEIN, CALIFORNIA
ADVISORS HAVE COMMENTS ON BEHALF
TO CLIENTS. FIRST ON BEHALF OF
MUD. WANT TO REALLY, UH, EARTH
SUPPORT FOR THE GOVERNOR'S
PROPOSED FUNDING FOR THE CAP
PROGRAM TO SUPPORT UNPAID
ARREARAGES. UM THE
ADMINISTRATION DID A TERRIFIC
JOB IMPLEMENTING THIS PROGRAM,
AND IT WAS AN INCREDIBLY
EFFICIENT WAY TO GET MONEY OUT
TO PEOPLE WHO NEED IT BY
OFFSETTING UNPAID UTILITY BILLS
. UM, SO WE REALLY STRONGLY
SUPPORT ANOTHER ROUND OF FUNDING
AS UNFORTUNATELY, THE PANDEMIC
AND THE IMPACTS DID NOT END LAST
JUNE AND HAVE MORE ARREARAGES.
SO ON THE S MUD STRONGLY SUPPORT
THAT PROPOSAL. ON BEHALF OF
ENERGY SOURCE MINERALS. UM, I
WANT TO MAKE SOME COMMENTS ON
THE GOVERNOR'S PROPOSED WITHIN
VALLEY PROPOSAL SPECIFICALLY
RELATED TO THE FLAT TAX BEING
PROPOSED. I WANT TO START BY
SAYING THAT WE SINCERELY
APPRECIATE THE COMMENTS OF
ASSEMBLYMEMBER'S EDUARDO GARCIA
, WHO HAS BEEN A TRUE CHAMPION
FOR AH LITHIUM VALLEY FOR
IMPERIAL COUNTY AND HELPING TO
DEVELOP AND GROW THIS INDUSTRY.
WE AGREE 100% THAT ANY TAX
REVENUE SHOULD GO 100% TO THE
COMMUNITY AND SAY LOCAL, UM
WE'RE AT CALIFORNIA BASED
COMPANY THAT HAS BEEN WORKING IN
THE IN THE SALTON SEA REGION FOR
OVER 10 YEARS. UM AND WE
INTERSTATE PAYING ON OUR PROJECT
ROUGHLY $50 MILLION PER YEAR IN
TEXAS, VARIOUS TYPES CURRENTLY
UNDER COPPERY LAW, AND SO WE
VERY MUCH ARE COMMITTED TO BEING
A ACTIVE PARTICIPANTS IN THE
COMMUNITY. UM WE ARE CONCERNED
WITH THE STRUCTURE OF THE TAX
BEING A FLAT SEE BECAUSE OF THE
VOLATILE NATURE OF THE OF
LITHIUM CRISIS. WE URGE THAT A
TAX BASED ON THE PERCENTAGE OF
GROSS RECEIPTS BE CONSIDERED
INSTEAD, UM AND ALSO JUST URGE
THAT THAT BE A REASONABLE NUMBER
SO THAT INVESTORS AND PURCHASERS
DO NOT GO TO OTHER DOMESTIC
SOURCES. UM IN NEVADA, UTAH, UH
, ARKANSAS, ETCETERA THAT ARE
UNDER DEVELOPMENT. SO AGAIN.
THANK YOU VERY MUCH FOR YOUR
CONSIDERATION OF THIS. THANK
YOU. AND MR CHAIR. THERE ARE NO
FURTHER COMMENTS AT THIS TIME.
THANK YOU. OPERATOR. I
APPRECIATE YOUR HELP. THANK YOU
ALL FOR YOUR PARTICIPATION IN
TODAY'S HEARING. WE ARE
ADJOURNED.