EXCUSE YEAH. THERE WE GO. GOOD
MORNING, EVERYBODY, UM WELCOME
TO THE ASSEMBLY BUDGET SUB FOUR
COMMITTEE. UH, WE ARE APOLOGIES
FOR STARTING LATE, BUT THEY
CALLED US INTO A BUDGET HEARING
WITH THE BUDGET CHAIR AND THE
SPEAKER AND OTHERS AND ALL THE
BUDGET SUB CHAIRS. SO UM, THAT
THERE'S A REASON THEY CALLED
THIS A BUDGET SUBCOMITTEE
BECAUSE WE ARE SUBJECT TO THE
BUDGET COMMITTEE, UH, AND NEEDED
TO GO THERE FIRST. UM, SO, UM
TODAY. WE WILL HEAR FROM OUR
ENERGY AGENCIES AND THE
DEPARTMENT OF WATER RESOURCES.
UH, WE HAVE, UH FOUR ITEMS THAT
ARE PLANNED FOR DISCUSSION FOR
EACH PRESENTATION. I'LL ASK EACH
OF THE WITNESSES. UH UH, IN THE
IN THE AGENDA TO INTRODUCE
THEMSELVES BEFORE THEY BEGIN AT
THE END OF THE PRESENTATION
ITEMS. MEMBERS OF THE
SUBCOMITTEE UH, MAY I ASK
QUESTIONS OR MAKE COMMENTS ON
ANY OF THE 10 NON PRESENTATION
ITEMS? UH, WE WON'T BE TAKING
ANY VOTES A DAY. AFTER ALL THE
ITEMS ARE HEARD. WE WILL TAKE
PUBLIC COMMENT. EACH MEMBER OF
THE PUBLIC WILL HAVE ONE MINUTE
TO SPEAK. THERE'LL BE NÓ REMOTE
TESTIMONY IN THIS COMMITTEE AND
IF WE COULD TAKE ROLE, PLEASE.
HERE. FOR WELCOME. ALL RIGHT.
WE'LL GO TO ISSUE ONE, AND
THAT'S ENERGY COMMISSION, PUBLIC
UTILITIES COMMISSION AND Dð WR
GENERAL FUND SOLUTIONS AND THE
IMPLEMENTATION UPDATE. AND I
KNOW YOU KNOW WHAT ORDER YOU'RE
GONNA GO IN, SO I'LL LET YOU,
UH, GET SEATED, AND, UH, PRESENT
IN THE IN THAT ORDER.
ALL RIGHT. GO AHEAD AND BEGIN.
FINANCE GOING HERE WITH MY
EXCUSE ME, CAN CAN YOU GUYS HEAR
BACK THERE CAN'T HEAR AT ALL
RIGHT? MAYBE I HAVE TO DO SOME.
TRY IT AGAIN, DAVID. HELLO MUCH
BETTER. GOOD MORNING CHAIR. I'M
DAVID EVANS WITH THE DEPARTMENT
OF FINANCE. I'M JOINED HERE WITH
MY COLLEAGUE STEVE WELLS, ALSO
FROM THE DEPARTMENT OF FINANCE.
WE WILL PROVIDE AN OVERVIEW OF
THE ENERGY BUDGET AND THE
ASSOCIATED GENERAL FUND
SOLUTIONS. UM WE ALSO HAVE
COLLEAGUES FROM VARIOUS
DEPARTMENTS WITH US TODAY TO
ANSWER ANY SPECIFIC POLICY OR
PROGRAMMATIC QUESTIONS THAT YOU
MAY HAVE. THE GOVERNOR'S
PROPOSED BUDGET INCLUDES
SOLUTIONS TO ADDRESS THE
ESTIMATED $37.9 BILLION
SHORTFALL. LAST YEAR'S BUDGET
THAT 2020 THREE 24 BUDGET
PROVIDED APPROXIMATELY 7 BILLION
ACROSS MULTIPLE, UH, MULTIPLE
DEPARTMENTS TO EXPEDITE THE
STATE'S TRANSITION TO A CLEAN,
RELIABLE AND AFFORDABLE ENERGY.
FUTURE GOVERNORS PROPOSED BUDGET
INCLUDES GENERAL FUND REDUCTIONS
OF APPROXIMATELY 419 MILLION,
MAINTAINING APPROXIMATELY 6.6
BILLION OF THAT, UM INITIAL
INVESTMENT. OF LAST YEAR'S
BUDGET. THE BUDGET ALSO
MAINTAINS THE PROPOSED 1 BILLION
FOR THE CLEAN ENERGY RELIABILITY
INVESTMENT PLAN, ALSO KNOWN AS
SYRUP, WITH THE REMAINING AMOUNT
PROPOSED OVER THREE YEARS,
BEGINNING IN 2526, THE INITIAL
100 MILLION OF SYRUP, UM
INCLUDED IN LAST YEAR'S BUDGET
IS ALSO MAINTAINED IN THE
PROPOSED BUDGET. SO TO ADDRESS
THE BUDGET SHORTFALL. THE BUDGET
INCLUDES A BALANCE OF REDUCTIONS
. FUND SHIFTS. DELAYS UH, FOR
SEVERAL ENERGY PROGRAMS. I'M
GONNA GO THROUGH THEM. SO FOR
THE REDUCTIONS, WHICH TOTAL
418.8 MILLION APPROXIMATELY 419
MILLION, UH, FOR THE ENERGY
COMMISSION, THERE'S A 40 MILLION
REDUCTION TO THE CARBON REMOVAL
INNOVATION PROGRAM. UM THERE'S A
40 MILLION REDUCTION TO THAT
PROGRAM LEAVING 35 MILLION IN
THE PROGRAM, SO THIS PROGRAM IS
STILL AN EARLY DEVELOPMENT. UM
AND THIS PROGRAM IS STILL IN
EARLY DEVELOPMENT, AND THAT'S
WHY, UM, WE MADE THOSE
REDUCTIONS TOWARDS THIS PROGRAM.
UM THE FOOD PRODUCTION
INVESTMENT PROGRAM. THERE'S AN
18.8 MILLION REDUCTION TO THAT
PROGRAM, LEAVING 46.2 MILLION IN
THAT PROGRAM. UM THAT PROGRAM IS
IN THE, UM GUIDELINE DEVELOPMENT
PHASE IS STILL IN THE EARLY
DEVELOPMENT PHASE, AND IT HAS
AVAILABLE FUNDING THAT'S NOT
BEEN COMMITTED OR ENCUMBERED
YET. THERE'S 22 MILLION
REDUCTION FOR THE INDUSTRIAL
DECARBONIZATION PROGRAM. UM THE
GOVERNOR'S BUDGET LEAVES, UM 68
MILLION IN THAT PROGRAM SIMILAR
TO THE UM, FOOD PRODUCTION
INVESTMENT PROGRAM. THAT PROGRAM
IS STILL IN THE EARLY
DEVELOPMENT. UM THERE IS
AVAILABLE FUNDING AND ALSO, UM,
THOSE FUNDS HAVEN'T BEEN
COMMITTED OR ENCUMBERED YET. FOR
EQUITABLE BUILDING
DECARBONIZATION PROGRAM. UM THE
GOVERNOR'S BUDGET, UM, REDUCES
THAT PROGRAM BY 280 THREE
MILLION, LEAVING 639 MILLION
AVAILABLE FOR THAT PROGRAM. èC
èC IS CURRENTLY IN THE
SOLICITATION. THE SOLICITATION
PHASE OF THIS PROGRAM. UM AND
THE REDUCTIONS TO THE PROGRAM.
UM, THEY OCCUR IN THE BUDGET
YEAR AND IN THE OUT YEARS, AND
THAT LEAVES 494 MILLION
AVAILABLE FOR THAT PROGRAM. AND
SO THE REDUCTIONS FOR THE
EQUITABLE BUILDING
DECARBONIZATION PROGRAM IS FOR
FUNDS THAT HAVE NOT BEEN
APPROPRIATED YET 639 REMAINING
OR OR 66 39, 6 39. TOTAL PLAN
FOR THE PROGRAM. UM, 494 MILLION
THAT'S ALREADY BEEN UM,
APPROPRIATING. FOR THE HYDROGEN
GRANTS PROGRAM. UM THE
GOVERNOR'S BUDGET PROPOSES $35
MILLION REDUCTION, AND THAT
LEAVES 65 MILLION TOTAL FOR THE
PROGRAM. UM THIS PROGRAM IS
STILL IN THEIR EARLY DEVELOPMENT
STAGES. UM AND NÓ FUNDS HAVE
BEEN ENCUMBERED FOR THIS PROGRAM
YET. SO UM, FOR THE CALIFORNIA
PUBLIC UTILITIES COMMISSION. WE
HAVE REDUCTIONS. WE HAVE A 20
MILLION REDUCTION, UM, FOR THE
COMMUNITY BASED ORGANIZATION
CAPACITY GRANTS PROGRAM THAT
WE'RE LEAVING. UM 10 MILLION IN
A PROGRAM IN THIS PROGRAM IS
STILL UM IN THE EARLY
DEVELOPMENT STAGES. èC P èC
HAS STARTED ACCEPTING
APPLICATIONS FOR THE PROGRAM,
AND THAT'S WHERE THEY ARE WITH
THIS PROGRAM. BUT NÓ FUNDS HAVE
BEEN, UM ENCUMBERED YET FOR IT
AND EXCUSE ME IF I COULD TAKE
YOU BACK TO THE 6.4 MILLION FOR
CALIFORNIA ELECTRIC HOMES
PROGRAM. I THINK HE JUMPED OVER
THAT ONE. UM I HAVE SEVERAL
OTHER, UM AS WELL IN ADDITION TO
THE ENERGY, UM, PROGRAM
REDUCTIONS. THAT BUDGET ALSO
INCLUDES THAT 6.4 REDUCTION TO
THE CALIFORNIA ELECTRIC HOMES
PROGRAM, LEAVING 68.6 MILLION IN
THAT PROGRAM. AND THEN THERE'S
ALSO THE 475 MILLION REDUCTION
TO THE CLIMATE INNOVATION
PROGRAM. èC èC, UM, IN THIS
PROGRAM, WE'RE ELIMINATING THESE
FUNDS. UM AND THIS PROGRAM HAS
YET TO BE IMPLEMENTED YET. THAT
THE GOVERNOR'S BUDGET ALSO
INCLUDES, UM GENERAL FUND DELAYS
. SO FOR THE DEPARTMENT OF WATER
RESOURCES, THERE'S A 55 MILLION
DELAY IN THE STRATEGIC LIABILITY
ASSETS. UM AND WE'RE DELAYING
THOSE RESOURCES FROM 2425 TO
2526. THIS LEAVES, UH
APPROXIMATELY 2.2 BILLION
PRESERVED FROM THE 2122 AND 2223
APPROPRIATIONS. 20 MILLION IS
GONNA BE AVAILABLE IN 2425 AND
100 AND 30 MILLION. IT'S GONNA
BE AVAILABLE IN 2526 SO THE
DELAY WILL ALIGN WITH THE
APPROPRIATIONS THAT, UM WITH Dð
WR S¼ ANTICIPATED EXPENDITURE
TIMELINE. FOR THE ORVILLE PUMP
STORAGE PROGRAM. UM WE'RE
PROPOSING A DELAY OF 200 MILLION
FOR THAT PROGRAM, AND THIS
PROGRAM IS TO THE THIS PROGRAM
WILL IS PROPOSED TO BE DELAYED
TO ADDRESS THE BUDGET SHORTFALLS
. AND IT DOES NOT ALTER THE, UM
THE TIMELINE FOR THE PROGRAM.
THERE'S A 50 MILLION, UM, DELAY
FOR THE DISTRIBUTED ELECTRICITY,
BACKUP ACCESS PROGRAM. THAT'S
OUR DEBO PROGRAM. UM AND WE'RE
SHIFTING 50 MILLION FROM LAST
YEAR'S APPROPRIATION IN 2324 AND
REAPPLYING 25 MILLION AND 2526
AND 25 MILLION IN 2627. SO IT'S
A DELAY OF THE 50 MILLION. UM
THIS PROGRAM AGAIN WAS DELAYED
TO HELP ADDRESS THE BUDGET
SHORTFALLS. THE PROGRAM IS IN
THE, UM, PROJECT SOLICITATION
PHASE. AND CURRENTLY RIGHT NOW
THERE IS 495 MILLION THAT'S
CURRENTLY AVAILABLE FOR THIS
PROGRAM. FOR THE RESIDENTIAL
SOLAR AND STORAGE PROGRAM.
THERE'S A 200 MILLION SHIFT. UM
WE'RE SHIFTING 75 MILLION IN
2425 AND 100 AND 25 MILLION AND
2526 TO, UM 100 MILLION IN 2627
AND 100 MILLION AND 2728. AND SO
THIS PROGRAM HAS A LARGE
APPROPRIATION BALANCE CURRENTLY
OF 280 MILLION. UM THAT HAS NOT
BEEN, UM ENCUMBERED YET. IT
HASN'T NOT BEEN COMMITTED FOR
THIS PROGRAM. AND SO, UM, THE
PROPOSAL IS JUST TO SHIFT THE
BUDGET YEAR. UM APPROPRIATIONS
APPLY APPROPRIATIONS IN THE OUT
YOUR PLAN APPROPRIATIONS TO HELP
THE ADDRESS THE BUDGET
SHORTFALL. AND THEN WE HAVE A
COUPLE OTHER, UM GENERAL FUND
SHIFTS. AS WELL. SO WE'RE
SHIFTING AND SWAPPING THE
GENERAL FUND WITH GREENHOUSE GAS
REDUCTION FUND DOLLARS IN THIS
OCCURS, UM, IN THE LONG DURATION
STORAGE PROGRAM. SO UM, WE'RE
SWAPPING OUT 56.9 MILLION FOR
THE CENSUS FOR LONG DURATION
STORAGE PROGRAMS SWIPING THAT
WITH, UM GGRF. SO THERE'S BEEN
SEVERAL WARS THAT HAVE BEEN MADE
WITH THIS PROGRAM. AND THIS, UM,
SHIFTS THAT REMAINING
UNCOMMITTED BALANCE OF THE LOAN
DURATION STORAGE PROGRAM. AND
THEN THERE'S AN $87 MILLION
SHIFT. UH, FUND SWAP FOR THE
EQUITABLE BUILDING
DECARBONISATION PROGRAM. AND
THIS PROGRAM IS AN ASSOCIATION
PHASE IT SO THERE'S STILL 494
MILLION REMAINING IN THE
PROGRAM. AND OUTSIDE OF THE
GENERAL FUND SOLUTIONS FOR THE
ENERGY PROGRAMS FOR A, UM,
BROADBAND. WE HAVE, UM 100
MILLION DELAY FOR THE BROADBAND.
LAST MILE, UM, PROGRAM. FROM
2425 TO 2627. AND CURRENTLY
RIGHT NOW THERE'S UM, THE 2
BILLION IS STILL BEING PLANNED
AND MAINTAINED FOR THE PROGRAM.
WE JUST, UM JUST DELAYING 100
MILLION FOR THE PROGRAM. AND
THEN FOR THE BROADBAND LO LO
RESERVE PROGRAM. THIS ONE,
THERE'S A $250 MILLION REDUCTION
, LEAVING 500 MILLION FOR THE
PROGRAM. SO THE ADMINISTRATION
IN MAKING THE REDUCTIONS, THE
SHIFTS THE FUN SWAPS, AND WE
CONSIDERED A GENERAL FRAMEWORK.
UM OF COURSE, THE SOLUTIONS
RECONSIDERED, UM, THE STATUS OF
THE PROGRAM WHERE THEY WHERE
THEY'RE AT, AND THEY
IMPLEMENTATION TIMELINE. UM IF
THE FUNDS THAT WERE COMMITTED,
UM IF THE FUNDS WERE ENCUMBERED,
UM, ARE THERE SOLICITATIONS LIKE
THE DOLLARS THAT ARE ACTUALLY
COMMITTED FOR IT? AND THEN WE'RE
ALSO CON, UH, CONSIDERED IF WE
COULD SHIFT FUNDS, UM, WITH
MINIMAL DELAY TO THE PROGRAM. UM
WE ALSO CONSIDERED IF THERE WAS
PREVIOUS REDUCTIONS THAT WERE
MADE TO THE PROGRAM AND THEN
ALSO, WE WANT TO SEE IF THERE'S
ANY POTENTIAL FEDERAL THAT COULD
, UM BE PERHAPS, LIKE, OFFSET
ANY POTENTIAL SOLUTIONS THAT
WE'VE MADE TOWARDS THIS? UM
ULTIMATELY THERE IS TOUGH
DECISIONS AT THE ADMINISTRATION
HAD TO MAKE, UM, TO PROVIDE A
BALANCED BUDGET. UH AND THOSE
DECISIONS ARE NEVER EASY, EASY.
AND SO, UM THAT'S THAT'S THANK
YOU. THANK YOU. SHAME. UM, THANK
YOU, UH, SARAH CORNETT WITH THE
LEGISLATIVE ANALYST OFFICE. UM
SO, I, I WON'T REPEAT WHAT? UH
UH, THE ADMINISTRATION NOTED
ABOUT ALL OF THE DIFFERENT
DELAYS AND BUDGET SOLUTIONS, BUT
JUST SOME SOME HIGH LEVEL
COMMENTS FOR YOUR CONSIDERATION.
UM SO THE GOVERNOR IS PROPOSING
TO REDUCE 419 MILLION RELATIVE
TO THE 2023 24 ENERGY PACKAGE.
AND AS THE ADMINISTRATION NOTED
THAT THE GOVERNOR IS ALSO
PROPOSING VARIOUS FUN SHIFTS TO
THE GREENHOUSE GAS. REDUCTION
FUND, UM, AND FUNDING DELAYS. SO
UH, EVEN EVEN WITH THESE
SOLUTIONS, THE PROPOSAL STILL
RETAINS THE SIGNIFICANT MAJORITY
. UH, ABOUT 80 3% OF PLANNED
FUNDING IN THE ENERGY PACKAGE.
UM, AND OUTSIDE OF THE OF THE
ACTIVITIES THAT WERE INCLUDED IN
THE ENERGY PACKAGE. UM THERE'S A
COUPLE OF OTHER DELAYS AND
REDUCTIONS, SO THE
ADMINISTRATION NOTED A DELAY FOR
THE CLEAN ENERGY. UM RELIABILITY
INVESTMENT PLAN AS WELL AS THE,
UM THE REDUCTION OF FUNDING FOR
THE CLIMATE INNOVATION PROGRAM,
SO THAT 400 75 MILLION REDUCTION
WOULD WOULD ESSENTIALLY, UH L
LIQUIDATE FUNDING REMA REMAINING
FOR THAT PROGRAM. SO ULTIMATELY,
WHILE THE GOVERNOR'S PROPOSAL
REPRESENTS ONE SET OF OPTIONS,
THE LEGISLATURE COULD ULTIMATELY
CHOOSE A DIFFERENT MIX OF
SOLUTIONS BASED ON YOUR HIGHEST
PRIORITIES. AND YOU AS YOU'VE
BEEN HEARING FROM OUR OFFICE, WE
THINK YOU MAY NEED TO IDENTIFY
SOME ADDITIONAL SOLUTIONS BASED
ON THE BUDGET SITUATION. AND IN
OUR IN OUR REPORT, UM, WE KNOW A
FEW POSSIBLE OPTIONS OF PROGRAMS
THAT COULD BE GOOD CANDIDATES
BASED ON THEIR STATUS. UM THE
AVAILABILITY OF FUNDS THEY HAVE
REMAINING IN THEIR BALANCE, AS
WELL AS THE AVAILABLE AS WELL AS
THE AVAILABILITY OF FEDERAL
FUNDS THAT COULD HELP OFFSET
SOME OF THOSE REDUCTIONS. AND
THESE AREN'T NECESSARILY
RECOMMENDATIONS. THESE ARE JUST
KIND OF OPTIONS TO HELP YOU
CONSIDER AS AS YOU AS YOU'RE
MAKING AS YOU'RE MAKING YOUR
BUDGET DECISIONS OVER THE OVER
THE COMING WEEKS. THANK YOU.
THANK YOU VERY MUCH. AND SHE ALL
RIGHT. GOOD MORNING. UH, MY NAME
IS LIZ GILL AND I'M THE BRANCH
MANAGER OF THE RELIABILITY
ANALYSIS BRANCH AT THE
CALIFORNIA ENERGY COMMISSION.
AND I'M GONNA BE GIVING A HIGH
LEVEL OVERVIEW OF THE STATE'S
ELECTRIC RELIABILITY SITUATION
AND ONGOING CHALLENGES. SO AS
YOU'RE PROBABLY AWARE, CLIMATE
DRIVEN EXTREME WEATHER EVENTS
OVER THE PAST SEVERAL YEARS THAT
ARE OUTSIDE OF THE RANGE. THAT
IS WHAT IT UM OR THE STATE'S
EXPERIENCE UNPRECEDENTED CLIMATE
CHANGE DRIVEN EXTREME WEATHER
EVENTS OVER THE PAST SEVERAL
YEARS THAT ARE OUTSIDE THE RANGE
OF WHAT IS FORECASTED IN
TRADITIONALLY PLANNED FOR IN
2020 2022. WE EXPERIENCED
EXTENDED WEST WIDE EXTREME HEAT
EVENTS. THE 2020 EXTREME EVENT
LED TO ROTATING OUTAGES IN THE
CALIFORNIA I S¼ Ó. THE 2022
EVENT AT AN ALL TIME RECORD FOR
DEMAND, BUT WE MAINTAINED
RELIABILITY, IN PART DUE TO ALL
OF THE ACTIONS THAT THE STATE
HAS TAKEN TO IMPROVE PLANNING,
PROCUREMENT AND DEPLOYING
CONTINGENCY RESOURCES. IN 2021,
A WILDFIRE IN OREGON TOOK DOWN
THE CALIFORNIA OREGON TIE,
CAUSING THE STATE TO LOSE
THOUSANDS OF IMPORT CAPACITY
DURING THE HEAT WAVE AT THE
HOTTEST TIME OF THE DAY AND
ELEVATING THE THREAT THAT
WILDFIRES POSE THE STATE'S
TRANSMISSION SYSTEM AND SYSTEM
WIDE RELIABILITY. AT THE SAME
TIME, UTILITIES AND LOAD SERVING
ENTITIES ACROSS THE STATE HAVE
BEEN PROCURING UNPRECEDENTED
LEVELS OF RESOURCES IN ORDER TO
MEET NEW PROJECTED DEMANDS.
REPLACE RETIRING RESOURCES TO
ACHIEVE THE STATE'S CLEAN ENERGY
GOALS. UNFORTUNATELY IN SOME
YEARS, SOME OF THESE RESOURCES
HAVE, UM, EXPERIENCED DELAYS FOR
VARIOUS REASONS, INCLUDING
SUPPLY CHAIN DELAYS, AND SO
HAVEN'T BEEN ONLINE FOR THE PEAK
SUMMER MONTHS WHEN THEY WERE
ORIGINALLY PLANNED FOR SO THE
FIGURE BEFORE YOU, UM ON THE ON
THE PRINTOUT, UM, ILLUSTRATES
HOW THE AGENCIES CONCEPTUALIZE
HOW WE THINK ABOUT EACH OF THESE
RISKS. UM AND HOW THEY PLAY INTO
HOW WE PLAN FOR ELECTRIC
RELIABILITY, CONTINGENCY
RESOURCES. SO AT THE BOTTOM, WE
HAVE THE DARK BLUE, WHICH
ILLUSTRATES THE NEED FOR
CAPACITY TO MEET THE FORECASTED
RELIABILITY STANDARDS. THIS IS
TRADITIONALLY REFERRED TO AS A
ONE IN 10. LOSS OF LOAD,
EXPECTATION OR PLANNING FOR A
MAXIMUM OF ONE OUTAGE IN EVERY
10 YEARS, BASED ON FORECASTED
DEMAND. THIS IS THE TRADITIONAL
RELIABILITY STANDARD THAT
UTILITIES PLAN FOR AND WHAT IS
TYPICALLY PROCURED FOR THROUGH
UTILITY PROCUREMENTS. ABOVE THIS
. WE SHOW THAT IF THERE ARE
PROJECT DELAYS, THIS CAN LEAD
FOR OUR FIRST NEED FOR
CONTINGENCY RESOURCES. ON TOP OF
THAT WE MAY EXPERIENCE EXTREME
HEAT EVENTS SIMILAR SIMILAR TO
THOSE THAT WE EXPERIENCED IN
2020 2022. AND THEN THERE IS THE
NEED CREATED BY THE RISK OF
CATASTROPHIC WILDFIRES IMPACTING
MAJOR TRANSMISSION LINES,
REDUCING CRITICAL IMPORTS OR THE
ABILITY TO BRING ENERGY TO LOAD
WITHIN THE STATE. SO IN ORDER TO
ADDRESS THE NEED FOR CONTINGENCY
RESOURCES IN 2022, THE
LEGISLATURE PASSED A B TWO Ó
FIVE, WHICH ESTABLISHED THE
STRATEGIC RELIABILITY RESERVE.
THE STRATEGIC RESERVE HAS THREE
COMPONENTS THAT EACH ADDRESS THE
THESE NEEDS FOR CONTINGENCY
RESOURCES. UH THROUGH A
DIFFERENT APPROACH. SO WE HAVE
Dð WR STRATEGIC RELIABILITY
RESERVE PROGRAM, WHICH IS THE
LARGEST COMPONENT AND IS FOCUSED
ON PROCURING SUPPLY SIDE
RESOURCES, UH, WITH A FOCUS ON
RESOURCES THAT WOULD OTHERWISE
BE RETIRED IN ORDER TO NOT
COMPETE WITH UTILITY
PROCUREMENTS. THEN WE HAVE THE
C'S DEMAND SIDE GRID SUPPORT
PROGRAM, WHICH FOCUSES ON
ENABLING DEMAND, FLEXIBILITY OF
EXISTING LOADS AND RESOURCES.
AND THEN WE HAVE THE èC S¼
DISTRIBUTED ELECTRICITY, BACKUP
ASSETS PROGRAM, OR DIVA, WHICH
IS LARGELY FOCUSED ON DEPLOYING
NEW DISTRIBUTED ENERGY
RESOURCES. AND SO WHILE THE
STRATEGIC RESERVE SERVES AS UM,
THE BIGGEST BUCKET OF
CONTINGENCY RESOURCES TO SUPPORT
THE STATE DURING, UM THE RISK
THAT WE JUST OUTLINED. UM THERE
ARE ALSO ADDITIONAL CONTINGENCY
RESOURCES AVAILABLE THROUGH èC
PUC èC RATE PAYER PROGRAMS AND
THEN NON PROGRAMMATIC VOLUNTARY
LOAD REDUCTIONS THAT ARE
COORDINATING THROUGH THE
AGENCIES AND THE GOVERNOR'S
OFFICE. UM AND SO TO WRAP UP, WE
WILL HAVE SPECIFIC PROJECTIONS
FOR THE CONTINGENCY NEEDS FOR
SUMMER 2024. UM IN OUR JOINT
AGENCY RELIABILITY ASSESSMENT,
WHICH WILL BE RELEASED IN EARLY
APRIL. SO A FEW WEEKS, UM AT A
HIGH LEVEL, WE'RE AT A BETTER
POSITION THAN WE WERE LAST
SUMMER, BUT THERE IS STILL RISK
ASSOCIATED WITH EXTREME HEAT AND
WILDFIRE EVENTS. THANK YOU.
THANK YOU. DO WE HAVE QUESTIONS
MEMBERS? I DO? YES, I'M GONNA
I'M SURE I'VE GOT A HANDFUL OF
QUESTIONS, BUT I WANNA START
WITH A FEW, UM, ABOUT YOUR
CHART. UM SO I'M A LITTLE
CONFUSED BY IT SO IT'S MY FIRST
QUESTION IS, SINCE THIS IS A
BUDGET HEARING, WHY ARE THERE NÓ
NUMBERS ON THE CHART? UM, THE
NUMBERS AREN'T AVAILABLE YET FOR
THIS SUMMER. UM, SO WE HAVE THE
PROJECTIONS FOR LAST SUMMER, UM,
WHICH WE ALREADY PASSED AND
PROBABLY LESS INTERESTED IN, BUT
WE'LL HAVE THOSE NUMBERS
AVAILABLE AGAIN IN EARLY APRIL.
OK UM YEAH, I THINK IT'S REALLY
IT. IT'S HARD. IT. IT'S HARD FOR
MY PERSPECTIVE. THIS IS MY FIRST
BUDGET HEARING, BY THE WAY.
HELLO? WELCOME. UM GIVEN THAT
WE'RE WE'RE TALKING ABOUT, YOU
KNOW, BUDGET STUFF. IT'S REALLY
HARD TO IN MY VIEW, HAVE
SOMETHING THAT'S STILL THAT A
CONCEPTUAL STAGE WHEN WE'RE
BEING ASKED TO MAKE DECISIONS
ABOUT, YOU KNOW, REAL DOLLARS
AND REAL INVESTMENTS. UM BUT OK,
A COUPLE OF OTHER QUESTIONS
RELATED TO THAT. SO UM, YOU
MENTIONED I GUESS THE CHART
MENTIONS SHORTAGES RELATED TO
DROUGHT. ARE WE ARE WE STILL IN
A DROUGHT, SO WE'RE NOT
CURRENTLY IN THE DROUGHT. BUT
THERE ARE YEARS THAT WE HAVE
EXPERIENCED DROUGHT AND THERE'S
THE POSSIBILITY FOR THAT IN THE
FUTURE AS WELL. AND SO THIS IS A
KIND OF A HIGH LEVEL CONCEPTUAL
CHART TO INCLUDE ALL OF THE
POTENTIAL RISKS. UM OK AND YOU
KNOW, I, UH, YOU MENTIONED ALSO,
UH, SUPPLY CHAIN AND PERMITTING
DELAYS. UM I KNOW WE ARE STILL
EXPERIENCING WHAT? UM HOW MANY
MEGAWATTS OF PROJECTS ARE
CURRENTLY DELAYED? UM SO I'M NOT
SURE WHAT? I DON'T KNOW WHAT THE
SPECIFIC NUMBER OF MEGAWATTS
THAT ARE CURRENTLY DELAYED. BUT
IN THE PAST FEW YEARS WE'VE
TYPICALLY EXPERIENCED ABOUT 15
TO 25% OF PROJECT DELAYS. UM
WHAT THOSE IMPACTS ARE ON
RELIABILITY ARE REALLY DEPENDENT
ON WHAT THE PROJECT IS, UM,
DEPENDING ON WHETHER IT'S YOU
KNOW, A SOLAR PROJECT VERSUS A
BATTERY PROJECT. OK? ALL RIGHT.
CAN YOU EXPLAIN TO US? UM WHAT'S
THE PACE FOR NEW RESOURCE
DEVELOPMENT AFTER 2025? BECAUSE
WE'RE WE'RE PHASING OUT THE
FUNDING HERE AND I KNOW YOU HAVE
A PLAN COMING FORWARD IN APRIL,
BUT TO WHAT IS THE PLAN FOR
AFTER 2025 IN GENERAL IN TERMS
OF THE PACE OF NEW RESOURCES,
BECAUSE WE HAVE TO KEEP BRINGING
ON THESE NEW RESOURCES. GREAT SO
, UM, THE FOR THE PACE OF NEW
RESOURCES THROUGH UTILITY
PROCUREMENT. I THINK THAT'S A
GREAT QUESTION THAT OUR PUC
COLLEAGUES WILL HAVE MORE
INFORMATION FOR, UM, BUT FOR
CONTINGENCY RESOURCES WITHOUT
FUNDING FOR THE STRATEGIC
RELIABILITY RESERVE, WE'D THEN
BE DEPENDENT ON. I MEAN, YOU
KNOW THOSE EXISTING, UM
RATEPAYER. PROGRAMS OR VOLUNTARY
LOAD REDUCTION PROGRAMS AND FOR
THOSE CONTINGENCY RESOURCES FOR
THOSE EXTREME EVENTS. OK, UM FOR
THE IMPLEMENTATION OF THE FUNDS
ALREADY APPROPRIATED. UH DO WILL
YOUR REPORT IN APRIL HAVE THIS
OR DO YOU HAVE IT NOW? AND THAT
IS WHAT PROGRAMS ARE ALREADY
IMPLEMENTED. WHERE'S THE MONEY
ALREADY COMMITTED. AND, UH, HOW
MUCH YOU KNOW HOW MANY MEGAWATTS
OF ENERGY DO YOU ANTICIPATE THE
PROGRAMS ARE GOING TO PROVIDE
THIS SUMMER. YEAH I THINK I'LL
PASS THIS QUESTION TO MY
COLLEAGUES THAT ARE INVOLVED IN
THE PROGRAM IMPLEMENTATION FOR
THOSE.
SO CAN YOU HEAR ME? OK HØI GOOD
MORNING, CHAIR AND COMMITTEE
MEMBERS. UH, MY NAME IS ASHLEY
EMERY. I AM THE BRANCH MANAGER
OVER THE RELIABILITY RESERVE
INCENTIVE BRANCH AT THE èC èC
SO THAT INCLUDES THE DEMAND SIDE
FOR ITS SUPPORT PROGRAM AND THE
DISTRIBUTED ELECTRICITY BACKUP
ASSETS PROGRAM. UM SO I CAN
START WITH A STATUS UPDATE ON
THE DEMAND SIDE GRID SUPPORT
PROGRAM. SO THAT PROGRAM OFFERS
INCENTIVES TO ELECTRIC CUSTOMERS
THAT PROVIDE LOAD REDUCTION AND
BACKUP GENERATION WITH EXISTING
EQUIPMENT TO SUPPORT THE STATE'S
ELECTRICAL GRID. UM, DURING
EXTREME EVENTS, UM SO TO HELP
IMMEDIATE GRID NEEDS DURING
SUMMER, 2022 THE èC èC WORKED
QUICKLY TO GET THE Dð S¼ G S¼
PROGRAM LAUNCHED IN A MATTER OF
WEEKS TO SUPPORT THE GD, UM,
DURING THE SEPTEMBER HEAT WAVE,
UM OVER THREE 1000 MEGAWATT
HOURS OF NET, LO PRODUCTION WERE
DELIVERED AND COMPENSATED. UM
WHICH WAS ABOUT $7.8 MILLION IN
INCENTIVES IN ADMINISTRATIVE
COSTS. UM I'LL NOTE THAT WHILE
THE UM THE EXPENSE MAY APPEAR
LOW, THE èC èC S¼ PURSUED A
HIGHLY COST EFFECTIVE, UM,
INCENTIVE STRUCTURE WHERE WE PAY
FOR ACTUAL PERFORMANCE DURING
THE EXTREME EVENT RATHER THAN A
CAPACITY PAYMENT FOR BEING
AVAILABLE, UM, TO ADDRESS
LESSONS LEARNED FROM SUMMER 2022
AND HELP BRING ON MORE CLEAN
RESOURCES. IN JULY OF LAST YEAR,
THE èC èC APPROVED UPDATED
PROGRAM GUIDELINES. UM, THESE
REVISED GUIDELINES HELP BRING ON
CLEAN RESOURCES WITH EXPANDED
PARTICIPATION, ELIGIBILITY AND
ADDITIONAL INCENTIVE OPTIONS FOR
CLEAN RESOURCES. UM THAT
INCLUDES, UH, VIRTUAL POWER
PLANTS BASED ON CUSTOMER OWNED
BATTERIES. UM AND WE WORKED ON
STREAMLINING OUR PROCESSES. THE
DSG PROGRAM CURRENTLY HAS OVER
1300 INDIVIDUAL PARTICIPANTS. UM
AND WE ARE WORKING WITH
ENROLLEES TO VALIDATE
PERFORMANCE FROM LAST SUMMER. UM
SO WE'RE WORKING TO PROCESS
THOSE CLAIMS AS QUICKLY AS
POSSIBLE, AND WE ANTICIPATE
HAVING THAT PERFORMANCE DATA BY
THE END OF Q TWO OF THIS YEAR.
UM SO AND WE'VE ALSO BEGUN THE
STAKEHOLDER PROCESS, UM, FOR
ADOPTING GUIDELINES FOR SUMMER
2024, SO WE ARE LOOKING TO
FURTHER IMPROVE CUSTOMER
EXPERIENCE AND GROW
PARTICIPATION, UM FROM CLEAN
RESOURCES, INCLUDING ALLOWING
BIDIRECTIONAL CHARGING TO
PARTICIPATE, UM, ALSO REFERRED
TO AS VEHICLE TO GRID AND SO WE
ACTUALLY RELEASED DRAFT
GUIDELINES IN MARCH 6TH FOR
PUBLIC COMMENT AND HOW TO
WORKSHOP YESTERDAY TO GET
FEEDBACK. UM, SO WE PLAN ON
HAVING THESE FINALIZED, UM,
GUIDELINES, UM, BROUGHT BEFORE
THE èC èC FOR ADOPTION IN MAY
OF THIS YEAR AHEAD OF THE SUMMER
, UM AND SO, UM, PRELIMINARY
STAKEHOLDER FEEDBACK ANTICIPATES
, UM, THAT PARTICIPATION IN THE
Dð S¼ G S¼ PROGRAM WILL GROW. UM
BUT, UM AND NOW THAT, UM,
PROVIDERS AND CUSTOMERS HAVE HAD
TIME TO UNDERSTAND OUR PROGRAM
DESIGN SINCE WE HAD GUIDELINES
ADOPTED MIDSUMMER LAST YEAR, UM,
WITH THE PROGRAM REVISIONS, UM
HAVE MORE TIME TO IMPLEMENT. AND
UM SO WE HOPE TO CONTINUE
GROWING OUR PARTICIPATION. UM
AND SO WE'RE ALSO WORKING TO
SECURE A MULTIYEAR CONTRACT FOR,
UM, HELPING TO ADMINISTER AND
STREAMLINE OUR PROCESS FOR THE
DSG S¼ PROGRAM. FOR THE DIVA
PROGRAM. THAT PROGRAM, THE DIVA
DISTRIBUTED ELECTRICITY. BACKUP
ASSETS. YEAH. UM SO THAT IS THE
PROGRAM THAT INCENTIVIZES THE
PURCHASE AND CONSTRUCTION OF
CLEANER AND MORE EFFICIENT,
DISTRIBUTED ENERGY ASSETS THAT
WILL SERVE AS UM ON CALL
EMERGENCY SUPPLY OR LOAD
REDUCTION DURING EXTREME EVENTS.
UM, SO AFTER FOCUSING ON THE
IMMEDIATE LAUNCH OF THE DSG
PROGRAM, UM SINCE THAT, UM,
WORKS WITH EXISTING RESOURCES,
UM WE BEGAN THE UM, STAKEHOLDER
PROCESS WITH A REQUEST FOR
INFORMATION IN NOVEMBER OF 22 TO
GET FEEDBACK ON POTENTIAL
PROGRAM DESIGN THAT COULD
INCENTIVIZE THE DEPLOYMENT OF A
DIVERSE RANGE OF NEW RESOURCES.
UM SO, UH, THE èC E èC HAS
BEEN WORKING CLOSELY WITH
STAKEHOLDERS AND OUR RELIABILITY
PARTNERS, INCLUDING THE èC, P
èC, Dð, WR AND Kò Ó TO
UNDERSTAND, UM EXISTING
RELIABILITY PROGRAMS AND
FRAMEWORKS TO ENSURE THAT THE
PROGRAM DOES NOT INADVERTENTLY
INTERFERE WITH OR, UM DUPLICATE
EXISTING PROGRAMS OR RESOURCES
SO THAT WE CAN INSTEAD OF FILL
GAPS AND ENCOURAGE INNOVATION
FOR PARTICIPATION DURING EXTREME
EVENTS, UM SO WE ADOPTED
GUIDELINES AND OCTOBER OF LAST
YEAR, UM AND THESE GUIDELINES
PROVIDE THAT FUNDING WILL BE
ISSUED THROUGH GRANT FUNDING
OPPORTUNITIES, THE FIRST OF
WHICH WAS ISSUED IN DECEMBER OF
LAST YEAR. SO THOSE, UM, THAT
WAS FOR 100 AND 50 MILLION FOR
BULK, UM, GRID EFFICIENCY
UPGRADES. AND UM, THOSE
APPLICATIONS ARE CURRENTLY UNDER
EVALUATION, AND WE ANTICIPATE
ISSUING OUR NOTICE OF PROPOSED
AWARDS. UH, NEXT MONTH IN APRIL.
UM CONCURRENTLY STAFF HAS BEEN
WORKING ON A SOLICITATION FOR
THE, UM DISTRIBUTED ENERGY
ASSETS. AND SO, UH, WE RELEASED
A DRAFT SOLICITATION CONCEPT
FOR, UM, PROPOSING 250 MILLION
FOR THOSE, UM, RESOURCES, UM,
INCLUDING VÆ PP S¼ IN FEBRUARY.
UM AND WE ANTICIPATE RELEASING
THE FINAL SOLICITATION. UM AND
BY THE END OF, UH, Q TWO OF THIS
YEAR AND, UM, HOPE YOU HAVE
NOTICE OF PURPORT PROPOSED
AWARDS IN Q THREE OF THIS YEAR.
CAN YOU? UM SPECIFICALLY TO THIS
COMING SUMMER. WHAT IS THE
AMOUNT OF LOAD FLEXIBILITY
THAT'S GOING TO BE CREATED? YOU
KNOW, THERE WAS A REAL SENSE OF
URGENCY. WHEN WE SAID, WE HAVE
TO GET GOING IN TERMS OF DOING
THIS. SO AS WE GET READY FOR A
HOT SUMMER, UM WHAT'S THE AMOUNT
OF LOAD FLEXIBILITY THAT, UH DO
CAN YOU IDENTIFY HOW MUCH LOAD
FLEXIBILITY HAS BEEN èC WILL BE
CREATED FOR 2024? YEAH SO, UM,
IN BASED ON OUR HISTORICAL
EXPERIENCE IN CURRENT ENROLLMENT
, I MEAN IT. IT'LL DEPEND BUT WE
HAVE, UM, AT LEAST A MINIMUM BY
HÌ, 100 AND 40. MEGAWATTS
CURRENTLY ENROLLED, BUT LIKE I
SAID, WE'RE WORKING TO EXPAND
PARTICIPATION, AND WE HAD
SEVERAL, UM PARTICIPANTS WHO
WERE ENROLLING BUT ANTICIPATING
TO PROVIDE, UM, START ENROLLING
CUSTOMERS FOR SUMMER, SO THE
EXACT NUMBER IS NOT KNOWN. BUT
UM, I WOULD ESTIMATE UP TO 100
OR THREE 150 MEGAWATTS FOR THE
SUMMER AND BASED ON, UM,
PERFORMANCE IN 2022, AND WHAT
WE'RE CURRENTLY ENROLLED,
PRIMARILY DEMAND RESPONSE. UM NÓ
PRIMARILY BACKUP GENERATION IS
THE BIGGEST MEGAWATTS, BUT, UM,
WE ARE WORKING WITH OUR TWO NEW
INCENTIVE OPTIONS TO REALLY GROW
THAT DEMAND RESPONSE AND CAN YOU
, UM AND CAN ALL THE DEPARTMENTS
IT. YOU KNOW èC PU AND èC E
èC, UM, CAN YOU SHARE WHERE ARE
WE IN TERMS OF WORKING WITH
COMMUNITIES ON THE DEVELOPMENT
OF MICRO GRIDS AND, UM WHAT?
WHAT KIND OF KIND OF ENERGY
GOING THERE. YEAH SO I KNOW FOR
THE, UH, MY THE DIVA PROGRAM.
COMPONENTS OF MICRO GRIDS MAY BE
ELIGIBLE, BUT, UM, I CAN HAND IT
OFF TO SOMEONE ELSE. UH, ANOTHER
WE HAVE ANOTHER OK FOR THAT
THAT'S FOCUSING ON MICRO GRID.
THANK YOU. JUST OUR MICRO GRID
TEAM. HERE IT IS. GOOD MORNING
CHAIR. BENNETT UH RACHEL
PETERSON, EXECUTIVE DIRECTOR OF
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION. THANK YOU FOR THE
OPPORTUNITY TO BE HERE THIS
MORNING. UM, WE DO HAVE A ROLE
IN THE OVERALL PICTURE FOR THIS
SUMMER AND BEYOND. AND SO THANK
YOU FOR THE QUESTION ON MICRO
GRIDS. UM THE èC PU èC HAS
BEEN WORKING WITHIN THE
STATUTORY DIRECTION OF S¼ B
1383. UM IN ORDER TO INCENTIVIZE
MICRO GRIDS AROUND THE STATE.
WE'VE ACTUALLY ISSUED FIVE
DECISIONS OVER THE LAST
APPROXIMATELY FIVE YEARS. UM IN
ORDER TO CARRY OUT THAT
STATUTORY DIRECTION. UM, I DO
HAVE WITH ME. A SUBJECT MATTER.
EXPERT DIRECTOR SIMON BAKER ONE
OF OUR ENERGY DIVISION DIRECTORS
WITH ME TODAY, WHO CAN PROVIDE
YOU A LITTLE MORE DETAIL ON THE
IMPLEMENTATION OF MICRO GRIDS
AROUND CALIFORNIA. GOOD MORNING
ASSEMBLY MEMBER SIMON BAKER,
DIRECTOR WITH THE èC PU èC.
JUNE 2020 DECISION TOOK SOME
SHORT TERM ACTIONS IN RESPONSE
TO THE PUBLIC POWER SAFETY
SHUTOFFS TO STREAMLINE PERM
PERMITTING REDUCED REGULATORY
REQUIREMENTS AND PROVIDE SUPPORT
FOR DEPLOYING BACKUP POWER
SYSTEMS, INCLUDING MICRO GRIDS.
AND THEN A JANUARY 2021 DECISION
FURTHER REDUCED REGULATORY
BARRIERS FOR MORE COMPLEX TYPES
OF MICRO GRIDS AND ORDERED THE
LARGE ELECTRIC UTILITIES TO
CREATE A MICRO GRID INCENTIVE
PROGRAM VALUED AT 200 MILLION,
WHICH WAS AUTHORIZED THIS WOULD
PROVIDE FINANCIAL SUPPORT FOR
THE DEVELOPMENT OF COMMUNITY
MICRO GRIDS IN DISADVANTAGED AND
VULNERABLE COMMUNITIES. THEN IN
JULY OF 2021, WE ISSUED A
DECISION THAT WAIVED PART OF THE
STANDBY CHARGE FOR MICRO GRIDS.
THAT HAD CERTAIN CHARACTERISTICS
, NAMELY THAT THEY HAVE HIGH
AVAILABILITY. MEANING UM, ON
TIME THAT THEY HAVE HIGH
UTILIZATION. CAPA U UTILIZATION.
AND THAT THEY MEET CARBS
DISTRIBUTION DISTRIBUTED
GENERATION CERTIFICATION PROGRAM
EMISSION REQUIREMENTS. THEN IN
DECEMBER OF 2021, WE ISSUED A
DECISION THAT APPROVED S¼ Dð, G
AND E DEVELOPMENT OF FOUR
SUBSTATION BATTERY ENERGY
STORAGE PROJECTS TOTALING 39
MEGAWATTS. THESE SYSTEMS
PARTICIPATE IN THE KO WHOLESALE
MARKET TO SUPPORT SUMMER
RELIABILITY AND PROVIDE
RESILIENCY TO AN ENTIRE
DISTRIBUTION CIRCUIT. ONE OF
THESE MAC FIT SERVES A
DESIGNATED LOW INCOME COMMUNITY
MULTIPLE TRIBAL FACILITIES, AND
IT IS DESIGNATED AS ONE OF THE
1% WORST CIRCUITS FOR
RELIABILITY, AND ANOTHER ONE
SERVES A DESIGNATED LOW INCOME
COMMUNITY. AND IN APRIL, 2023.
WE UH, APPROVED A DECISION? UH
UH UH, ON THE LARGE ELECTRIC. I
USE IMPLEMENTATION OF THAT MICRO
GRID INCENTIVE PROGRAM THAT I
MENTIONED EARLIER. IN ADDITION,
THE PUC HAS APPROVED THE
IMPLEMENTATION OF, UM THE LARGE
ELECTRIC UTILITIES USE OF REMOTE
MICRO GRIDS. THESE ARE MICRO
GRIDS THAT ARE NOT ACTUALLY
CONNECTED TO THE LARGE ELECTRIC
GRID, BUT THEY PROVIDE, UM SAFE
ELECTRIC SERVICE TO CUSTOMERS IN
HIGH FIRE THREAT DISTRICTS, AND
THIS ELIMINATES THE NEED FOR
OVERHEAD DISTRIBUTION LINES AT
LOWER COST THAN THAN HARDENING.
UH, THE SYSTEM. SOME CURRENT
ACTIVITIES THAT ARE ONGOING NOW
IN 2024 INCLUDE OVERSEEING THE
IMPLEMENTATION OF THAT MICRO
GRID INCENTIVE PROGRAM THAT I
MENTIONED APPLICATIONS FOR THAT
PROGRAM ARE DUE IN SPRING AND
SUMMER OF THIS YEAR. AND WE'RE
ALSO BUILDING THE RECORD IN THE
PRECEDING RIGHT NOW TO
STANDARDIZE THE RULES, RULES AND
RESPONSIBILITIES FOR THE
DEPLOYMENT OF A COMMUNITY MICRO
GRID. WE EXPECT A PROPOSED
DECISION ON THAT LATER THIS YEAR
AND THAT WILL RESULT IN A NEW
TARIFF FOR THE LARGE ELECTRIC I
USE. SOME MEMBER OF P NORRIS AND
THEN ASSEMBLY MEMBER COME. AND
WE MAY, UH HØI. GOOD MORNING. UM
I. I THINK THIS QUESTION IS
PROBABLY FOR THE PUC, BUT ALSO
PROBABLY FOR THE èC èC. UM, I
JUST WANTED TO COME BACK TO, UM,
THE CONVERSATION AROUND, UH,
SYRUP. THE SYRUP PROGRAM. UH,
WHICH YOUR RECOMMENDING THAT, UH
, WE PROVIDE NOTHING, UM, THIS
YEAR IN THIS YEAR'S BUDGET, SO
THAT, UH $1 MILLION WAS WAS PART
OF A LEGISLATIVE, I GUESS. DEAL
UM, RELATED TO THE EXTENSION OF
DIABLO. YOU KNOW, I THINK IS
EVERYONE KNOWS? AND UM, THE
REASON THAT WE SET ASIDE THOSE
FUNDS WERE BECAUSE OF I THINK
VERY REAL CONCERN FROM THE
LEGISLATURE. SOME PART OF THE
ADMINISTRATION AS WELL. UH, WE
WERE NOT ACTUALLY ON TRACK TO
ADDRESS SOME OF THE REAL
RELIABILITY CHALLENGES THAT
YOU'RE NOW TALKING ABOUT. SO, UM
IT FEELS LIKE THERE IS A BROAD
RECOGNITION THAT WE'VE GOT SOME
SOME REAL CHALLENGES IN ORDER TO
BRING NEW CLEAN ENERGY RESOURCES
ONLINE. UM THE DELAY OF THOSE
INVESTMENTS. FEELS LIKE, UH,
IT'S SORT OF CONTRADICTORY. TO
THE RECOGNITION OF HOW BIG THOSE
CHALLENGES ARE. UM, SO I GUESS.
MY QUESTION IS KIND OF GIVEN THE
REAL URGENCY TO GET NEW CLEAN
RESOURCES ONLINE. ISN'T IT WORTH
CONSIDERING SOME APPROPRIATION
OF THOSE SYRUP FUNDS? UM AS PART
OF THIS YEAR'S BUDGET. I'LL TURN
FIRST TO DEPARTMENT OF FINANCE.
THANK YOU FOR THE QUESTION.
DAVID EVANS WITH THE DEPARTMENT
OF FINANCE. UM I'M GONNA TAKE AN
INITIAL STOP AT THE QUESTION.
AND SO THE INITIAL 100 MILLION,
UM, A PORTION OF THAT I BELIEVE
32 MILLION THAT WAS APPROPRIATED
TO Dð WR, UM TO, UM, HELP WITH
THE ESTABLISHMENT. UM FOR
ESSENTIAL PROCUREMENT FUNCTION.
UM THAT IS ALSO TO HELP WITH THE
RELIABILITY EFFORTS. AND SO I
KNOW THAT PUC, UM YOU CURRENTLY
IN A PROCEEDING TO THE, UM TO
MAKE A DECISION ON IF THEY WILL,
UM UH, TASK DWR AS èC
PROCUREMENT FUNCTION. AND SO
THAT'S AN ACTIVE PROCEEDING THAT
THE èC P THAT THE èC PU èC IS
ACTIVELY ENGAGING IN RIGHT NOW,
AND SO IT IS. THOSE FUNDS ARE
ACTIVELY BEING COMMITTED AND, UM
TOWARDS RELIABILITY, AND SO I
BELIEVE THAT, UM THERE ARE STEPS
IN THOSE INVESTMENTS ARE GOING
TOWARDS RELIABILITY AS WELL. SO
THERE'S THE 100 MILLION IS BEING
USED IN THAT PROCESS. AND I
BELIEVE 90 MILLION OF THAT 100
MILLION WAS ALSO, UM,
APPROPRIATED FOR ON THE S¼ G S¼
AS WELL. OK? OTHER THOUGHTS. UH,
WELL SPECIFIC TO SYRUP. THE
ENERGY COMMISSION IS ACTUALLY IN
THE BEST TECHNICAL EXPERT ON
THAT, SO I WOULD NEED TO TURN TO
THEM. MY COLLEAGUE FROM UM
DEPARTMENT OF FINANCE IS CORRECT
THAT WE ARE WE, THE CPUC ARE IN
THE PROCESS OF, UM, ARTICULATE,
EXAMINING AND SETTING OUT AN
ORDER WITH RESPECT TO WHICH
ENTITY, UH, SHALL DO THE CENTRAL
PROCUREMENT FUNCTION WHICH WE
WERE IN CONVERSATION WITH THIS
BODY ABOUT THIS TIME LAST YEAR.
UM AND GOING TO MEET THAT
STATUTORY DEADLINE. THAT'S ONE
PIECE OF THIS, UM, ENTIRE
PICTURE. THAT'S TO PROCURE THOSE
LONG LINE A LONG LEAD TIME
RESOURCES THAT WE KNOW THE STATE
NEEDS. IT'S NOT RELEVANT RIGHT
AWAY. UM, BUT WE'RE STILL LAYING
THE GROUNDWORK FOR THAT LONGER
TERM PLAY. OK? ANY èC E èC
REFLECTIONS. UM YEAH, JUST JUST,
UM, IF IT'S HELPFUL, TOO, JUST
TO KIND OF PUT A BIT OF A FINER
POINT ON ON YOUR QUESTION. SO UM
, THE 100 MILLION LAST YEAR THAT
DID GO OUT FOR SARUP JUST TO
KIND OF EMPHASIZE THAT THAT THAT
ISN'T PROPOSED TO BE CLAWED BACK
, SO THERE HAS BEEN ALREADY YOU
KNOW, SOME FUNDS THAT HAVE BEEN
DISPERSED AND SOMETHING THAT YOU
KNOW, WE KIND OF NOTED EARLIER
WAS THAT, UM, FOR THESE RELY FOR
THESE RELIANT RE RELIABILITY
PROGRAMS THAT ARE SOME REALLY,
REALLY SIGNIFICANT FUNDS
REMAINING IN IN THOSE BALANCES.
UM, SO IF THAT'S SOMETHING THAT
THE LEGISLATURE IS CONCERNED
ABOUT, YOU KNOW, I THINK THAT'S
THAT'S ALSO YOU KNOW SOMETHING
TO KEEP IN MIND THAT FOR THE
DIVA PROGRAM FOR G, S¼ G S¼.
THERE ARE SIGNIFICANT FUNDS THE
SIGNIFICANT MAJORITY OF THE
FUNDING THAT THE LEGISLATURE HAS
HAS APPROPRIATED. OUR ARE ARE
YET UNSPENT FOR THOSE PROGRAMS.
OK THANK YOU FOR THAT
CLARIFICATION, AND THEN I HAVE A
BROADER QUESTION, I THINK ABOUT,
UM, KIND OF ACCOUNTABILITY. AN
OVERSIGHT RELATED TO YOU KNOW,
ALL OF THE PROGRAMS. UM, THAT
ARE UNDER YOUR PURVIEW AND THE
THINGS THAT ARE BEING PROPOSED.
UM AND THIS IS KIND OF BASED ON,
UH, PICKING UP ON ON HEARING
THAT WE HAD A COUPLE OF WEEKS
AGO RELATED TO OUR, UH E VÆ
INFRASTRUCTURE ROLL OUT BY THE
èC èC. AND WHEN THOSE FUNDS
WERE INITIALLY ROLLED OUT, THERE
WERE NÓ ACCOUNTABILITY MEASURES
ASSOCIATED WITH IT LIKE NÓ
PERFORMANCE METRICS. UM WHICH TO
ME, IS REALLY A SHOCKING KIND OF
STARTING POINT AND ONE OF THE
THINGS THAT WE SAID IN THAT
HEARING AND YOU KNOW, ALL THE
AGENCIES ACKNOWLEDGE WAS WE ARE
NOT GOING TO BE SPENDING ANY
MORE TAXPAYER DOLLARS WITHOUT
CLEAR PERFORMANCE METRICS
ATTACHED A LOT OF THE A LOT OF
THE YOU KNOW HUNDREDS OF
MILLIONS. BILLIONS OF DOLLARS
THAT WE'RE TALKING ABOUT ARE
GOING OUT IN HUGE VARIETY OF
DIFFERENT GRANT PROGRAMS. UM I
GUESS MY FIRST QUESTION IS DO
ALL OF THOSE WITHOUT EXCEPTION
HAVE VERY CLEAR PERFORMANCE
METRICS ASSOCIATED WITH THEM, UM
AND TWO CAN YOU GIVE US SORT OF
A BROAD SENSE OF HOW YOU TRACK
THE, UH, EFFICACY OF THOSE
INVESTMENTS THAT WE'RE MAKING.
SO AS FAR AS GRANT PROGRAMS I
WOULD NEED TO TURN TO THE ENERGY
COMMISSION WHO LEADS ON GRANT
PROGRAMS WITH RESPECT TO THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. Y WE TAKE. UM MANY.
MOST OF OUR PROGRAMS ARE, UM,
DIRECTED BY STATUTORY DIRECTION
AND THE COMMISSION, UM, MANAGES
OPEN FORMAL PROCEEDINGS IN WHICH
WE TAKE THAT STATUTORY DIRECTION
AND IN TURN, APPLY IT TO THE
UTILITIES THAT ARE SUBJECT TO
OUR JURISDICTION. AND SO WE BOTH
HOLD OURSELVES ACCOUNTABLE IN
THE SENSE THAT WE ARE RESPONDING
TO THIS BODY'S STATUTORY
DIRECTION, BUT THEN WE'RE ALSO
SETTING ACCOUNTABILITY METRICS
FOR THE UTILITIES THAT WE
REGULATE IN THE CONTEXT OF THOSE
FORMAL OPEN PROCEEDINGS. DAVID
EVANS WITH THE DEPARTMENT OF
FINANCE. I DON'T BELIEVE THAT WE
HAVE THE APPROPRIATE STAFF, UM,
FOR èC TO ELABORATE ON THE
SPECIFIC PERFORMANCE METRICS,
BUT, UM, SEVERAL OF THE ENERGY
PROGRAMS ARE STILL IN THE
GUIDELINE DEVELOPMENT PHASE, SO
WE RECOGNIZE THE NEED TO SAY HOW
SPECIFIC INVESTMENTS TOWARDS
THESE, UM ON BROWSER ISSUE AREAS
. SO LIKE, FOR INSTANCE, THE
CARBON REMOVAL INNOVATION
PROGRAM, THAT PROGRAM IS STILL
IN LIKE THE EARLY DEVELOPMENT
STAGES OF IT, UM, THAT FOOD
PRODUCTION INVESTMENT PROGRAM,
UM THE INDUSTRIAL
DECARBONISATION PROGRAM, THOSE
THREE PROGRAMS WHERE THERE'S
MILLIONS OF DOLLARS INVESTED,
THEY'RE STILL IN THE GUIDELINE
DEVELOPMENT PHASE WHERE THOSE,
UM, PERFORMANCE METRICS WILL BE
DEVELOPED. TO SELL A Ó HAVE A
RESPONSE TO THAT IF YOU DON'T
MIND ME INTERRUPTING? YEAH. UM
YEAH. THANK THANK THANK YOU FOR
THANK YOU FOR THE QUESTION, I. I
THINK IT'S A IT'S. IT'S A REALLY
IMPORTANT ONE TO BE ASKING,
ESPECIALLY WHEN WE'RE IN THIS
TOUGH BUDGET SITUATION, MAKING
SURE OUR DOLLARS ARE GOING TO
THE TO THE MOST EFFECTIVE
PROGRAMS AND IT'S TRUE, I THINK,
AS THE DEPARTMENT OF FINANCE
ACKNOWLEDGED, MANY OF THESE
PROGRAMS ARE STILL ARE STILL
GETTING UP AND RUNNING. SO
THAT'S SOMETHING I THINK THAT
THE LEGISLATURE IS, IT'S
DEFINITELY WORTH WORTH. UM THINK
THINKING HARD ABOUT AND
POTENTIALLY CONSIDERING. YOU
KNOW WHETHER WHETHER IT WOULD BE
OF INTEREST TO THE LEGISLATURE
TO KIND OF, YOU KNOW, PROVIDE
MORE GUIDELINES OR OR OR OR
DIRECTION ON ON THOSE PROGRAMS.
THAT'S CERTAINLY AN OPTION. BUT
YEAH, I THINK JUST TO JUST TO
EMPHASIZE AGAIN, THESE PROGRAMS
ARE STILL NEW, AND THAT
PERFORMANCE METRIC QUESTION IS
IMPORTANT. BUT WE HAVEN'T REALLY
SEEN YET, UM A LOT OF CLEAR
EXAMPLES OR EVIDENCE THAT THERE
ARE THOSE KINDS OF METRICS IN
PLACE. OK THANK YOU. THANK YOU
FOR THAT CLARIFICATION, AND I
THINK, UM THE GOOD NEWS IS THAT
IT'S THE APPROPRIATE TIME. I
THINK FOR US SO I'LL BE TALKING
ABOUT THAT. I THINK, UM, THERE'S
WAY TOO MANY EXAMPLES IN OUR
GOVERNMENT WHERE WE LOOK BACK
AND YOU KNOW GO. OH MY GOD. FIVE
YEARS LATER, WE'VE WASTED A
WHOLE TON OF MONEY AND DON'T
HAVE ANYTHING TO SHOW FOR IT.
SO, UM, I THINK IT'S JUST THE
RIGHT FOLKS ARE HERE OR NOT. I'M
NOT SURE. BUT UM, I JUST CAN'T
EMPHASIZE HOW IMPORTANT UM, IT
IS, AND I THINK I SPEAK FOR SO
MANY OF MY COLLEAGUES THAT AS WE
ARE GETTING THESE PROGRAMS OFF
THE GROUND, WE'VE GOT TO ENSURE
THAT THERE'S VERY ROBUST, UH,
PERFORMANCE METRICS IN PLACE SO
THAT WE KNOW THAT WE'RE GETTING
A RETURN ON THIS TAXPAYER
DOLLARS THAT WE'RE INVESTING.
ASSEMBLY MEMBER CONNOLLY. THANK
YOU CHAIR. UH, I'LL TAKE
ADVANTAGE OF HAVING A MICRO GRID
PANEL AND ASK A SPECIFIC
QUESTION ON THAT AND THEN CIRCLE
BACK TO RELIABILITY AND SOME OF
THE BROADER THEMES THAT WE'RE
HEARING THIS MORNING AND KIND OF
REINFORCE THOSE, UH SO SIMON,
MAYBE TO YOU, UM AND APPRECIATE.
UH YOU MENTIONING THE CPUC
PROCEEDING? I'M ALSO INTERESTED
IN SOME FIXES POTENTIALLY
LEGISLATIVELY WONDERING, CAN YOU
SHARE YOUR THOUGHTS ON THE
IMPACT OF OVER THE FENCE OR
ACROSS THE HIGHWAY POWER
SHARING? AND HOW, UH, POTENTIAL
STATUTORY CHANGE IN THAT REGARD,
UH, WOULD HELP EXPAND MICRO
GRIDS. SO I WILL TURN, UH,
PRETTY QUICKLY HERE TO DIRECTOR
BAKER. I AM NOT AS CLOSE TO THE
MICRO GRID PROCEEDING AND SO I'M
NOT, UM AS KEENLY AWARE OF THAT
ISSUE, BUT I DO KNOW THAT THAT
IT MORE GENERALLY IS KIND OF A
FUNDAMENTAL IT DOES OFTEN RAISE
A SORT OF FUNDAMENTAL QUESTION
OF WHO IS THE ENTITY THAT IS,
UM, PROVIDING OVER THE FENCE
OVER THE HIGHWAY POWER AND HOW
SHOULD ONE TREAT THEM? HOW
SHOULD A REGULATOR LIKE
OURSELVES TREAT THEM? UM, DO YOU
ANY THOUGHTS TO OFFER ON THAT.
JUST TO SAY THAT THE RECORD OF
THE PROCEEDING THAT HAS BEEN
IMPLEMENTING THIS THIS PIECE OF
STATUTE THAT I WAS TALKING ABOUT
EARLIER HAS A LOT OF DISCUSSION
ABOUT ABOUT THIS ISSUE. UH, WITH
REGARD TO THE, UM THE CURRENT
LAW AND IN THE WAY THAT IT'S
STRUCTURED AND HOW IT'S BEING
INTERPRETED UM AND, UH, SO I
WOULD SAY IT DOES GO TO, UM,
QUESTIONS ABOUT HOW YOU DEFINE A
PUBLIC UTILITY. AND UM SO IT IT
REALLY DOES KIND OF GO TO THE
CORE OF SOME OF THE CORE CORE
ISSUES THAT THAT WE DEAL WITH.
AS AS AS REGULATORS. SO, UM I
THINK WE WOULD HAVE TO FOLLOW UP
WITH YOU MORE IN TERMS OF ANY,
UM, UH, SPECIFIC OPINIONS ABOUT,
UH, LEGISLATION. GREAT. I LOOK
FORWARD TO THAT, UH, FOLLOW UP.
SO UH, STEPPING BACK? I MEAN,
CLEARLY WHAT WE'RE IN FOR
FORCING THIS MORNING IS THE
IMPORTANCE OF RELIABILITY. I
MEAN, WE HAVE IT SET OUT HERE.
THEORETICALLY UH, AS WAS NOTED
WITHOUT NUMBERS. BUT THE FACT IS
, IF YOU LOOK AT THE LAST
SEVERAL YEARS, UM THE
LEGISLATURE HAS ALLOCATED
UPWARDS OF $10 BILLION TOWARD,
UM, ENERGY PROPOSALS TO INCREASE
RELIABILITY, REDUCE EMISSIONS,
ADVANCED CLEAN ENERGY AND
INCREASE AFFORDABILITY. THAT'S A
LOT OF MONEY. UH, BUT WHAT WE'RE
SEEING IN MANY CASES, UM, IS
THAT MONIES HAVE NOT BEEN
COMMITTED OR UH, PROJECTS HAVE
NOT BEEN IMPLEMENTED, UH, FULLY
OR EVEN STARTED. SO I GUESS
GIVEN THE AND THIS MAY GO ABOUT
TO èC, PU èC AND THE ENERGY
COMMISSION UH, BASED ON SOME OF
THE PRIOR TESTIMONY, BUT GIVEN
THE URGENCY TO PROVIDE BACK AT
POWER TO ADDRESS PROJECTED
ENERGY SHORTFALLS. WHY ARE SO
MANY OF THE RELIABILITY PROGRAMS
NOT FULLY IMPLEMENTED YET LET
ALONE FOR PREVIOUS, UH, SUMMERS
AND WHAT IS HOLDING UP THE
IMPLEMENTATION OF THESE
PROGRAMS? SO UH, YOU'RE CORRECT
THAT THE ENERGY COMMISSION HAS A
ROLE TO PLAY HERE, AND I'M GOING
TO INVITE THOSE COLLEAGUES TO
COME FORWARD WHILE I TELL YOU
ABOUT, UM THE èC PU èC S¼ ROLE
IN REGULATING UM AND ENSURING
RELIABILITY VIA THE ENTITIES
THAT ARE SUBJECT TO OUR
JURISDICTION. SO THAT IS THE
UTILITIES MOST SIGNIFICANTLY AND
THEN FOR PROCUREMENT AND
RELIABILITY, THE COMMUNITY
CHOICE AGGREGATORS, AND SO WE
USE, UM, A COMBINATION OF
EXPECTATIONS, BOTH LONG TERM
THROUGH THE INTEGRATED RESOURCE,
UH, PROGRAM AND THEN SHORT TERM
THROUGH THE RESOURCE ADEQUACY
PROGRAM TO ENSURE THAT ALL 40
THREE OF THOSE ARE PROCURING
SUFFICIENTLY TO MEET OUR
RELIABILITY NEEDS MONTH IN AND
MONTH OUT IN CALIFORNIA. NOW
THAT ENTIRE ACTIVITY IS SEPARATE
FROM THE PROGRAMS THAT I THINK
YOU'RE ASKING ABOUT. UM.
UM, GOOD MORNING AGAIN. UM
ASHLEY EMERY BRANCH MANAGER SO I
CAN SPEAK TO THE DIVA PROGRAM.
AS I MENTIONED, UM, WE FIRST
FOCUSED OUR, UM, IMPLEMENTATION
ON THE Dð S¼ G S¼ PROGRAM IN
ORDER TO MEET THE IMMEDIATE GRID
NEEDS OF, UM, SUMMER 2022. SO WE
LAUNCHED THE PROGRAM IN WEEKS.
UM AND THEN SHORTLY D¯ÚI S¼ èC
S¼ THE DEMAND SIDE FOR ITS
SUPPORT PROGRAMS. SO THAT'S THE
ONE THAT, UM THAT INSTANT
DEVICES THE USE OF EXISTING
RESOURCES. UM AND SO WE WERE
ABLE TO, UM, LEVERAGE THOSE
EXISTING RESOURCES IMMEDIATELY.
UM AND THEN SHORTLY THEREAFTER,
UM OH, THE SUMMER PROGRAM ENDED
IN OCTOBER AND NOVEMBER. WE
STARTED ON THE DEVELOPMENT OF
THE DIVA PROGRAM WITH THE, UM
INITIAL LAUNCH OF OUR REQUEST
FOR INFORMATION TO, UM, DEVELOP
A TO GET STAKEHOLDER FEEDBACK ON
A POTENTIAL PROGRAM DESIGN.
THERE'S A MULTITUDE OF DIFFERENT
TYPES OF RESOURCES THAT THE
PROGRAM CAN, UM CAN, UM,
LEVERAGE. AND AS I MENTIONED
BEFORE, UM, WE REALLY WORKED
CLOSELY WITH, UM, THE CPUC. KO
DWR TO UNDERSTAND THEIR EXISTING
PROGRAMS AND FRAMEWORK TO MAKE
SURE THAT THE DIA PROGRAM IS NOT
, UM INTERFERING WITH THOSE
EXISTING PROGRAMS AND FRAMEWORKS
AND AS WELL AS NOT BEING
DUPLICATIVE. UM AND SO WE'VE
BEEN WORKING CLOSELY WITH, UM,
THE THOSE STAKEHOLDERS AND
POTENTIAL PARTICIPANTS TO, UM,
DEVELOP A PROGRAM DESIGN THAT IS
TRULY INCREMENTAL AND FILLING
GAPS. UM AND UM AND, UM, TO THE
POINT OF MAKING SURE THAT THESE
RESOURCES WILL ACTUALLY BE
AVAILABLE. SO DEVELOPING
PERFORMANCE. UM REQUIREMENTS UM
AND AS WELL AS INCENTIVE
STRUCTURES TO ENABLE
PARTICIPATION, AND SO, UM, SO
THAT'S UM WHY WE'VE BEEN WORKING
DURING OUR, UH, TO OUR INITIAL
GUIDELINE DEVELOPMENT PROCESS.
UM, WE WERE REQUIRED TO DEVELOP
GUIDELINES FOR THE
IMPLEMENTATION OF THE PROGRAM
AND THEN THROUGH THAT HAVE
DEVELOPED THE GRANT FUND.
OPPORTUNITY UM AND SO, UM, WHILE
THAT PROGRAM HAS NOT, UM
ENCUMBERED FUNDS, WE ARE
CURRENTLY REVIEWING THE
APPLICATIONS AND WORKING ON THE
DRAFT SOLICITATION PROCESS FOR
THE DISTRIBUTED ENERGY
RESOURCES. UM, I'LL JUST ADD ON
A BR A BROADER NOTE FOR THE
CONTINGENCY RESOURCES AND THE
STRATEGIC RELIABILITY RESERVE AT
LARGE. UM THE Dð WR STRATEGIC OR
PORTION OF THE RELIABILITY
RESERVE HAS THE LARGEST PORTION
OF MEGAWATTS AND I DO BELIEVE
THAT MOST OF THOSE FUNDS HAVE
BEEN COMMITTED, ALTHOUGH I'M YOU
KNOW, DWR COLLEAGUES TO SPEAK
TOWARDS THAT. UM AND SO ON THE
WHOLE ONCE YOU KIND OF ADD UP
ALL THE, UH, PROGRAMS THAT WE
HAVE PAID THROUGH GENERAL FUNDS
AS WELL AS ADDITIONAL, UM, THE
VOLUNTARY AND, UH èC P èC RATE
PAYER FUNDED PROGRAMS. THERE'S
ABOUT 2000 MEGAWATTS OF TOTAL
CONTINGENCY RESOURCES AVAILABLE
TO SUPPORT THE NEEDS, WHICH IS,
UM, ABOVE THAT WOULD MEET THE
NEEDS THAT WERE PROJECTING. UM
WE'LL HAVE THE FINAL NUMBERS FOR
SHORTLY, UM, GOING INTO THE
SUMMER. OUR QUESTION. UM THE L
Ó IS PROPOSED FURTHER CUTTING
TO TRANSMISSION AND FINANCING.
UH THAT'S CONCERNING, UM, I
THINK STATEWIDE BUT CERTAINLY IN
IN MY DISTRICT IN THE NORTH BAY
AND ALONG THE NORTH COAST, UH,
GIVEN THE NEED TO IMPROVE OUR
TRANSMISSION INFRASTRUCTURE. UM
HOWEVER, IT LOOKS LIKE THERE
COULD BE ADDITIONAL FEDERAL
ENERGY FUNDS, UM, THAT THE STATE
IS RECEIVING TO SUPPORT GREAT
RELIABILITY. UH, THAT MAY, IN
FACT, OFFSET, UM SOME OF THESE
REDUCTIONS CAN. THE PANELISTS
ELABORATE ON THIS FUNDING? HOW
MUCH IS GETTING WHAT KIND OF
PROGRAMS COULD IT SUPPORT IN THE
TRANSMISSION SPACE? I THINK I'LL
PASS IT TO OUR COLLEAGUES FROM
ANOTHER DIVISION THAT CAN SPEAK
TOWARDS THAT, UM YEAH. UM AND IN
IN THE IN THE IN THE MEANTIME AS
THEY COME UP, UM, JUST ONE. I
THINK ONE NOTE OF CLARIFICATION
IN OUR IN OUR REPORT. AS AS YOU
NOTED, WE DID LIST THAT, UH, THE
TRANSMISSION FINANCING PROGRAM,
WHICH HAS 225 MILLION IN ITS
BALANCE AS A POSSIBLE CANDIDATE
FOR A REDUCTION. UM WE DID NOT
KIND OF MEAN TO NOTE THAT AS A
RECOMMENDATION, UM WE'RE JUST
KIND OF, UH, TRYING TO TRYING TO
PROVIDE THE LEGISLATURE OPTIONS
AND POSSIBILITIES FOR YOU. AND
THAT WAS ONE PROGRAM WHERE WE
NOTED THAT FUNDING HAS NOT
REALLY BEGUN TO GO OUT THE DOOR.
UM, AND THERE ARE SOME SOME OF A
VARIETY OF FEDERAL FUNDS
AVAILABLE THAT COULD HELP COVER
SOME OF THOSE NEEDS AND THE
ADMINISTRATION WOULD BE ABLE TO
SPEAK TO THOSE SOURCES BETTER.
CAN YOU HEAR ME? GOOD MORNING.
FIRST I WANNA START OFF BY
SAYING HOW LUCKY YOU ARE TO HAVE
SHY. WE MISS HER AT THE ENERGY
COMMISSION. MY NAME IS ELIZABETH
HUBER. I AM THE DIRECTOR FOR THE
SING TRANSMISSION AND
ENVIRONMENTAL PROTECTION
DIVISION OF THE CALIFORNIA
ENERGY COMMISSION. AND UM, IN
REFERENCE TO THE, UH, FEDERAL
GRIP TO, UM WHICH IS THE ROUND
TWO OF, UM, THESE TRANSMISSION
PROJECTS WE HAVE BEEN WORKING
COLLABORATIVELY WITH, UM, OUR
AGENCY UM, CALIFORNIA NATURAL
RESOURCES AGENCY, ALONG WITH THE
èC P èC CALAIS, Ó Dð WR, UM,
COLLECTIVELY AND ALSO WITH THE
INVESTOR OWNED UTILITIES. UM AND
OTHER, UM DEVELOPERS, WHO ARE
ALSO PUTTING APPLICATIONS IN AND
BEING REVIEWED BY THE U S¼
DEPARTMENT OF ENERGY WITH THAT,
UM, WE HAVE BEEN ASSESSING. UM
AND I FORGOT TO ALSO MENTION
WITH OUR PUBLICLY OWNED, UM,
UTILITY. SO UH, WE'S ACTUALLY
ONE WITH, UM, SMUD THAT JUST GOT
ANNOUNCED. SO UM, THEY
APPLICATION AND THEY, UM ARE
PHASES TO THOSE APPLICATIONS. SO
THEY, UM EITHER BEING, UM,
CHAMPION OR LED BY, UM, THE IO
OR THE POU OR DEVELOPERS AND
THEN WITH, UM, SUPPORT FROM THE
STATE AGENCIES, UM, THAT THESE
ARE FEASIBLE PROJECTS OR IT'S A
COLLABORATIVE APPROACH. AND UM,
WE'RE IN NOW, UH, AND THAT WAS
FIRST PHASE OF THESE GRIP TO THE
SECOND ROUND. WE'RE IN PHASE TWO
NOW. AND UM, WE HAVE A, UM I
WANNA SAY FOUR OR FIVE PROJECTS
THAT HAVE THAT ARE MOVING, UM
THROUGH PHASE TWO AT THIS POINT.
BUT NÓ MONEY HAS BEEN DISPERSED
TO US. UM OUR HOPE IS THAT THE
STATE WILL SEE SOME FUNDING LIKE
WE HAVE IN OTHER AREAS THAT I'LL
BE REPORTING ON. BUT I THAT'S
ABOUT ALL I CAN TELL YOU ON THIS
AT THIS POINT, SO WE CAN
DEFINITELY FOLLOW UP AS PHASE
TWO CLOSES AND, UM AND WE KNOW A
LITTLE BIT MORE OF WHAT KIND OF
FUNDING OPPORTUNITIES WILL BE
COMING TO CALIFORNIA. DID THAT
HELP? I HOPE SO IF YOU HAVE A
QUESTION YEAH, THAT IT IT IS
SUPER HELPFUL AND YOU MAY NOT
HAVE THE ANSWER TO THIS YET, BUT
I'M DO YOU OR DOES ANYONE HAVE,
YOU KNOW, SORT OF A HIGH LEVEL?
UM IS GOAL OR A HIGH LEVEL SENSE
OF HOW MUCH FEDERAL FUNDING WE
ARE LIKELY TO GET, UH TO SUPPORT
. UM OR YOU KNOW OUR HUGE
VARIETY OF CLEAN ENERGY. NEEDS.
I DON'T HAVE AN EXACT NUMBER,
BUT DEFINITELY, UM, WE WELCOME
TO COME BACK, UM TO ANOTHER
HEARING. UM, BUT WE IT WILL BE
IN THE MILLIONS. AND WE DO
ANTICIPATE, UM, THAT THE STATE
WILL SEE SOME FUNDING. THEY GET
THE BUDGET GUY. GOOD MORNING,
AND DE UH UH, CHIEF. EXCUSE ME,
CHIEF FINANCIAL OFFICER AT THE
ENERGY COMMISSION. UH, WE'RE
PURSUING A NUMBER OF COMPETITIVE
AND FORMULA. UM OPPORTUNITIES
BOTH IN THE IIJ A AND THE IRA.
UH RIGHT NOW WE'RE ANTICIPATING
A TOTAL OF ABOUT $1.2 BILLION
OVER SEVERAL YEARS FROM THOSE
OPPORTUNITIES. UM, THAT NUMBER
WE HOPE WILL GO UP AS WE'RE
SUCCESSFUL WITH MORE COMPATIBLE
OR EXCUSE ME MORE COMPETITIVE
OPPORTUNITIES, BUT THAT'S THE
FIGURE AT THIS MOMENT. AND YOU
THINK THAT'S PROBABLY LIKE A
FLOOR. AND THEN THERE'S A BIGGER
OPPORTUNITY BEYOND THAT. THAT'S
THAT'S A COMBINATION OF
COMPETITIVE OPPORTUNITIES THAT
WE'VE WON AT THIS POINT AND
FORMING THE OPPORTUNITIES THAT
HASN'T NECESSARILY BEEN AWARDED
YET, BUT BECAUSE THEIR FORMULA
WE KNOW THE DOLLARS ARE COMING
TO THE STATE, UH, WE'RE HOPEFUL
THAT THE NUMBER WILL GO UP AS WE
ARE SUCCESSFUL WITH ADDITIONAL
COMPETITIVE OPPORTUNITIES. OK?
SO I'D LIKE TO HAVE, UM
REPRESENTATIVE FROM èC, èC, PU
, èC AND Dð WR. SO OUR OUR
ORIGINAL PEOPLE UP HERE? I
SUPPOSE I HAVE SOME OVERVIEW
QUESTIONS AND SOME SPECIFIC
QUESTIONS AND IN THE INTEREST
TIME I WANT TO TRY TO MOVE TO
THOSE. SO UH, IF WE COULD MAKE
SURE WE HAVE, UH, SOMEBODY FROM
Dð Dð WR, UH, UP ON THE PANEL,
AND, UM èC PU èC, UH, THE MOST
APPROPRIATE SORT OF GENERALIST
FROM èC PU èC AND THEN, UH, I
THINK OUR FINANCE PERSON FROM
èC MIGHT BE FINE, BUT, UH WE
GO. SO I'M GONNA TRY TO MOVE
THROUGH. WE HAVE A NUMBER OF
QUESTIONS ON WHAT TRIP FOR THE
BENEFIT OF STAFF TO MAKE SURE WE
GET UH THROUGH AS MANY OF THESE
AS POSSIBLE AND GET THESE
ANSWERS. UM ON ON THE RECORD. UM
BUT IT IT LOOKS LIKE IT FROM
FROM THE QUESTIONS THAT WE HAVE
THAT WE DON'T KNOW HOW MANY
MEGAWATTS OF ELECTRICITY WE CAN
ASSUME, UM, WE'RE GONNA GET THIS
SUMMER FROM THE PROGRAMS THAT WE
FUNDED. IS THAT CORRECT? NÓ ONE
NÓ ONE CAN NÓ ONE CAN. CAN YOU
IDENTIFY HOW MANY MEGAWATTS WE
THINK WE'RE GONNA GET? YES.
THANK YOU. GOOD MORNING. MY NAME
IS DELPHINE HO, DEPUTY DIRECTOR
OF STATEWIDE WATER AND ENERGY
WITH THE DEPARTMENT OF WATER
RESOURCES. THANK YOU. CHAIR AND
ASSEMBLY MEMBERS FOR HAVING ME
HERE THIS MORNING SO I CAN ONLY
SPEAK FOR Dð WR S¼, UH, PROGRAM.
UM BUT WE DO HAVE SEVERAL
MEGAWATTS. UH THAT WE HAD IN THE
RESERVE, STARTING FROM 2022 THAT
WE AGAIN HAD IN 23. AND THEN WE
CAN HAVE A PROJECTION OF WHAT
WE'RE LOOKING FORWARD TO FOR
THIS SUMMER. UM SO, UH, FOR DWR
THIS SUMMER WILL WE ARE LOOKING
TO HAVE 291 MEGAWATTS OF
EMERGENCY AND TEMPORARY NATURAL
GAS RESOURCES, AND IN ADDITION
TO THAT WE ALSO HAVE CONTRACTS
WITH RESOURCES THAT WERE, UH,
GOING TO GO INTO RETIREMENT BUT
HAVE DECIDED TO STAY OUT OF
RETIREMENT IN ORDER TO BE IN THE
RESERVE. SO THAT'S ANOTHER 2859
MEGAWATTS OF RESOURCES. SO IN
TOTAL FOR THIS SUMMER, WE'RE
LOOKING AT 3150 MEGAWATTS, UH,
AVAILABLE FOR THE ELECTRICITY
SUPPLY STRATEGIC RELIABILITY
RESERVE PROGRAM. GREAT OK, AND
WHAT'S YOUR EVALUATION OF THE
COST EFFECTIVENESS OF, UH THOSE
PROGRAMS THAT ARE BRINGING ON
THAT NEARLY THREE 1000. IT'S A
BALANCE. WE BELIEVE THAT THE
CONTRACTS THAT WE HAVE
NEGOTIATED FOR ARE COST
EFFECTIVE, BUT AT THE SAME TIME
WE UNDERSTAND THAT THESE ARE
AGAIN THEY'RE EMERGENCY
TEMPORARY GENERATORS THAT WE HAD
TO PUT UP IN A VERY SHORT AMOUNT
OF TIME IN ORDER TO BOLSTER
STATE RELIABILITY. MANY OF THOSE
MEGAWATTS WERE ACTUALLY CREATED,
UM AND BUILT BY DWR AND PARTNERS
IN 2021 DURING THE GOVERNOR'S
EMERGEN. PROCLAMATION SO IT
REALLY HATS OFF TO OUR Dð WR
ENGINEERS AND OUR PARTNERS FOR
HAVING, UM, PUT IN 100 AND 20
MEGAWATTS IN ABOUT A MONTH, UM,
KIND OF RECORD BREAKING SPEED,
BUT WE DID IT TO ENSURE THAT THE
STATE HAD THE RESOURCES AND THE
STEEL IN THE GROUND TO USE AND
THOSE ASSETS WERE USED AND
USEFUL IN THE 2022 SUMMER HEAT
WAVE. THAT'S HELPFUL. THANK YOU,
UM, FOR THE ONCE THROUGH COOLING
NATURAL PLANTS THAT ARE IN THE
STRATEGIC RELIABILITY RESERVE.
UH, HOW LONG WILL THOSE PLANTS
NEED TO BE? TURNED ON. UH,
BEFORE IN PREPARATION OF AN
EMERGENCY. THANK YOU FOR THE
QUESTIONS. THESE ARE AS EVERYONE
KNOWS MUCH OLDER RESOURCES. THEY
WERE ON THE VERGE OF RETIREMENT,
SO THEY HAVE VARIOUS START UP
TIMES. SO IF I CAN READ OUT, UH,
THE TIMES THAT I HAVE ON RECORD
IS, FOR EXAMPLE, UM, THE
GENERATOR AT UH ORMOND BEACH,
THE ORMOND BEACH GENERATOR THAT
ONE TAKES APPROXIMATELY 20 TO 30
HOURS TO START. UH, THE ALTOS
UNITS ALSO HAVE SOME VARIATION.
THERE'S A MINIMUM OF 10 HOURS
FOR TWO OF UNITS AND UP TO 34
HOURS TO START THE THIRD AND
THEN THE SHORTEST TIME IS THE
HUNTINGTON BEACH UNIT, WHICH
WILL BE ABOUT 10 HOURS TO START
AGAIN. MUCH OLDER RESOURCES. IT
TAKES A LONG TIME FOR THESE
COMING OUT OF A COLD START
SCENARIO IN ORDER TO WARM UP AND
GET TO AN OPERATING LEVEL. UM
ALSO WHAT IS VERY DIFFERENT THIS
YEAR BECAUSE IT'S IN THE
STRATEGIC RESERVE VERSUS IN THE
MARKET WITH THE PU èC RESOURCE
ADEQUACY PROGRAM IS THAT THEIR
OPERATIONAL REQUIRE ARE
COMPLETELY DIFFERENT. WHEN
THEY'RE PART OF THE RESOURCE
ADEQUACY PROGRAM. THEY HAVE TO
BE AVAILABLE. 24 7 FOR ANY TIME
THE GRID OPERATOR WOULD NEED
THEM. AND SO THE EMISSIONS
PROFILE THERE IS GONNA BE VERY
DIFFERENT. BUT EVEN THEN, THESE
UNITS WERE NOT USED VERY
FREQUENTLY. SO FOR EXAMPLE, THE
ONE AT ORMOND BEACH HAD AN
ANNUAL CAPACITY FACTOR MEETING
SORT OF HOW MUCH DID IT RUN IT
OUT OF THE YEAR OF ABOUT 2% SO
WHEN IT WAS IN THE RESOURCE
ADEQUACY PROGRAM HERE STARTING
JANUARY. 1ST 2024. THEY ARE WITH
THE STRATEGIC RESERVE AND THEIR
DEFAULT POSITION IS OFF SO THEY
WILL NOT BE AVAILABLE. 24 7,
THEY WILL ONLY BE PUT INTO THE
MARKET TESTED POTENTIALLY USE IF
AND WHEN THE GRID OPERATOR SEES,
OR UH, POTENTIALLY SEES SOME
EXTREME EVENT, SO WE'RE
EXPECTING THE EMISSIONS PROFILE
AND CERTAINLY THE USAGE OF THESE
RESOURCES TO BE MUCH LOWER AND
VERY DIFFERENT FROM WHERE IT HAD
BEEN FOR THE LAST SEVERAL
DECADES OF OPERATIONS. GOOD NEWS
, AND YOU DON'T HAVE AN
ANTICIPATED NUMBER OF DAYS OR
HOURS. UM IF I HAD THAT CRYSTAL
BALL, I PROBABLY WOULDN'T BE
SITTING HERE. SO NÓ, SIR, I DO
NOT. WE WOULD WE WOULD LEVERAGE
YOU FOR ALL KINDS OF ARBITRAGE
AND EVERYTHING ELSE. IF WE COULD
DO THAT, UH, HOW ABOUT P? UH, PG
AND E, UM, STARTING TO PAY BACK
THE $1.4 BILLION, DO WE? UH UH,
DO WE HAVE AN ANTICIPATION OF,
UH, WHEN WE ACCEPT EXPECT THEM
TO FINISH PAYING OFF THOSE
FUNDS? THANK YOU FOR THAT
QUESTION. SO JUMPING OVER TO
DIABLO CANYON. UH, IT'S A LITTLE
BIT MORE COMPLICATED. SO AS YOU
PROBABLY HAVE HEARD THE
DEPARTMENT OF ENERGY, UM HAS, UM
UM, UM, MADE SOME PROGRESS WITH,
UH, PACIFIC GAS AND ELECTRIC
WITH PG AND E FOR THE THEIR
CIVIL NUCLEAR CREDIT PROGRAM.
AND SO THERE IS GOOD NEWS ON
THAT END, BUT WE CURRENTLY ONLY
HAVE THE SORT OF INITIAL RELEASE
THE NEWS RELEASE IN JANUARY 2024
, BUT WE ALSO, UM, NEED TO BE
AWARE THAT THERE'S THREE UM,
POTENTIAL STREAMS OF PAYBACK,
WHICH ALSO INCLUDES EXCESS
OPERATING REVENUES IN THE FINAL
YEAR OF EXTENDED OPERATIONS AND
ANY OTHER FEDERAL FUNDS GOING
BACK TO THE Dð Ó E, UH, CREDIT
AWARD. WHAT WE UNDERSTAND IS
THAT THE FIRST TIME THAT Dð Ó E
WOULD LIKELY BE AWARDING ANY
CREDITS IS IN 2025, AND THAT IS
BECAUSE THEY NEED TO DO A LOOK
BACK AUDIT AND THEY WILL LOOK
BACK TO 20 THREE AND 24 AND
CONDUCT THAT AUDIT IN 2025, BUT
I ALSO WANT TO CAUTION THAT
THAT'S THE Dð Ó E SCHEDULE JUST
FOR DOING AND CONDUCTING THE
AUDIT. THERE IS ALSO THE Dð Ó E
LOAN RECAPTURE PERIOD. SO FROM
WHAT UNDERSTAND AND AGAIN. WE'RE
NOT PARTY TO THIS AGREEMENT, SO
WE DON'T HAVE THE DETAILS, BUT
FROM WHAT WE UNDERSTAND FROM
PUBLICLY AVAILABLE DOCUMENTS IS
THAT IS A FOUR YEAR UH,
RECAPTURE PERIOD AND SO WHAT WE
THINK THAT MEANS IS IF PG AND E
IS LOOKING AT A TIME FRAME OF 20
THREE THROUGH 26 THAT THAT Dð Ó
E RECAPTURED PERIOD COULD BE AS
LATE AS 2027. SO ANY FUNDS THAT
THE, UM PG MAY BE AWARDED FROM
THE Dð Ó E WOULD BE PUT INTO AN
ESCROW ACCOUNT, UM, TO WAIT OUT
THAT RECAPTURE PERIOD. SO THERE
IS A LOT OF CAVEATS THERE. BUT
THAT'S THE BEST VISIBILITY THAT
WE HAVE AT THIS MOMENT IS
PROBABLY LOOKING TOWARDS THAT
2027 TIME FRAME KINDLY DID YOU
HAVE FOLLOW UPS? YEAH YOU ASKED
ONE OF THEM ON THE ANTICIPATED
PAYBACK TIME PERIOD. UM I GUESS
THE OVERALL QUESTION ON THE ON
DIABLO, THOUGH, IS HOW MUCH
FUNDING IS ANTICIPATED TO BE
NEEDED IN LIGHT OF THE FACT THAT
THERE IS A LOT OF FEDERAL MONEY,
UH, COMING DOWN THE PIKE AS
WELL. FUNDING FROM THE STATE OR,
YES. UM SO WHAT WE UNDERSTAND
RIGHT NOW, BASED ON PROJECTIONS
OF WHERE? PGE UH, NEEDS THE
MONIES IN ORDER TO CONDUCT AND
FINISH THEIR RELICENSING IS THAT
WE'RE LOOKING AT BOTH THE COSTS
OF THE ACTUAL RELICENSING AS
WELL AS A REQUIRED DISBURSEMENTS
UNDER S¼ B 846. SO WE ARE
LOOKING AT A TRAJECTORY OF THE
MAXIMUM 1.4 BILLION AT THIS
TIME. BUT AGAIN, UM Dð WR WOULD
HAVE TO EVALUATE THOSE COSTS
FROM PG AND E TO AFFIRM THAT
THEY'RE ELIGIBLE, REASONABLE ET
CETERA PER S¼ B 846
REQUIREMENTS. SO REMEMBER. NÓ
HØI LET ME JUST GO BACK TO THE
CONVERSATION. UM IN YOUR
OVERVIEW OF THOSE OTC PLANTS,
SO, UM, WHAT IS THE COST? FOR
THOSE OF THOSE CONTRACTS.
ABSOLUTELY SO, UM, I'LL, UH,
CALL THEM OUT IN AGGREGATE. SO
IN AGGREGATE, UM, THOSE THREE UH
, ONCE THROUGH COOLING UNITS, UH
OVER THREE YEARS, SO THE
CONTRACT STARTS JANUARY 1ST 2024
THROUGH DECEMBER 31ST 2026 IN
AGGREGATE. IT'S A LITTLE, UH,
UNDER 1.2 BILLION IN TERMS OF A
I KNOW THAT'S A BIG NUMBER, BUT
I THINK IN SORT OF THE LANGUAGE
OF THE ENERGY WORLD. WE TEND TO
USE A DOLLAR PER KW AMOUNT, AND
THOSE EACH OF THOSE ARE UNDER 10
. AND SO IF YOU WANTED TO
COMPARE IT WITH, UM YOU KNOW
OTHER RESOURCE ADEQUACY
CONTRACTS THAT THE LOAD SERVING
ENTITIES THE I Ó U ARE
ASSIGNING TODAY WE BELIEVE THOSE
ARE WELL BELOW THE CURRENT
MARKET RATES. UM, BUT AGAIN, THE
UNDERSTANDING IS THAT IN THIS
CAPACITY PAYMENT IS REALLY TO
NOT ONLY HAVE THE STEEL IN THE
GROUND AND AVAILABILITY TO THE
RESOURCE, BUT I. I DO WANT TO
EMPHASIZE WHAT'S REALLY, REALLY
CRITICAL IS THAT THESE UNITS
WERE ABOUT TO RETIRE. WHAT IS
VERY CRITICAL FOR Dð WR IS THAT
WE PRESERVE THE STAFF. THE
EXPERIENCE LICENSED OPERATORS OF
THESE POWER PLANTS. IT WAS
CRITICAL THAT WE SIGNED THESE
CONTRACTS TO MAKE SURE WE HAVE
THE RIGHT PERSONNEL. WE
MAINTAINED THE UNIT SO THAT THEY
WOULD BE READY AND AVAILABLE FOR
THE STATE. SO THAT'S WHY THESE
PAYMENTS ARE SO CRITICAL.
ESPECIALLY FOR A POWER PLANT
THAT WAS ON THE VERGE OF
RETIREMENT. THEY WERE GONNA LET
THEIR STAFF GO. EVERYTHING WAS
GONNA GET SHUT DOWN. MAYBE THIS
IS IT SORT OF FOLLOW UP
CONVERSATION. UM BUT I WOULD
LOVE TO UNDERSTAND WHAT
ALTERNATIVES WE'VE CONSIDERED.
UM YOU KNOW WHAT ANALYSIS WAS
CONDUCTED TO DETERMINE THAT THAT
WAS THE APPROPRIATE YOU KNOW
THAT THAT THAT'S OUR BEST
OPTION? UM AND I DO THINK THAT
KIND OF HIGHLIGHTS JUST HOW
CRITICAL IT IS FOR US TO BE
MAKING INVESTMENTS. NOW THAT
WILL THEN MAKE YOU KNOW? THAT
$1.1 BILLION UNNECESSARY. UM ALL
RIGHT, SO TO A QUESTION RELATED
TO A SLIGHTLY LESS EYE WATERING
PRICE TAG. UM SO I THINK LAST
YEAR YOU WERE APPROPRIATED. $32
MILLION AT IMPLEMENT THE CENTRAL
PROCUREMENT FUNCTION IN A B 1370
THREE. UM I BELIEVE èC P èC
HAS UNTIL SEPTEMBER TO DETERMINE
WHETHER IT WILL YOU TO PROCURE
ANY RESOURCES USING THAT
FUNCTION. UM, CAN YOU JUST TELL
US HOW MUCH OF THIS FUNDING
YOU'RE EXPECTING TO SPEND? UM
THIS YEAR AND FOR WHAT PURPOSE?
ABSOLUTELY AND ACTUALLY, IF YOU
WOULDN'T MIND, I WOULD LOVE TO
PROVIDE A LITTLE COLOR TO YOUR
TO YOUR LAST COMMENT AS WELL. UM
SO Dð WR WORKED VERY CLOSELY
WITH OUR COLLEAGUES AT THE
ENERGY COMMISSION AT PUC AND THE
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR IN THAT DECISION TO
CONTRACT WITH THE Ó Tð èC S¼
THAT WAS BASED ON A RELIABILITY
ASSESSMENT BY THOSE ENTITIES
THAT KIND OF CALLED OUT THE
BALANCE BETWEEN MAINTAINING
THOSE ASSETS THAT WERE AGAIN
READY TO RETIRE, BUT THEN
BALANCING IT WITH PUTTING IT
INTO RESERVE THAT DIDN'T RUN ALL
THE TIME SO IT WOULD BALANCE THE
EMISSIONS WHILE MAINTAINING
RESOURCES. FOR THE EXPRESS
PURPOSE OF ALLOWING UNITS, CLEAN
RESOURCES, BATTERIES, SOLAR ET
CETERA THAT ARE UNDER
CONSTRUCTION TO ADVANCE ACROSS
THOSE SUPPLY CHAIN HURDLES AND
EVERYTHING ELSE THAT WAS COMING
OUT OF THE PANDEMIC, ET CETERA,
SO IT REALLY WAS A STOP GAP
MEASURE TO BUY US MORE TIME WITH
ASSETS THAT HAD NOT ALREADY GONE
INTO RETIREMENT AND LEFT, YOU
KNOW, WITHOUT THEIR STAFF, ET
CETERA. SO IT WAS A IT WAS A AN,
UM I THINK A TIMELY KIND OF
URGENT, UM, COLLABORATION.
WORKING VERY CLOSELY WITH THEM
BASED ON THEIR RELIABILITY
ANALYSIS, BUT THANK YOU FOR THAT
QUESTION. IN TERMS OF CENTRAL
PROCUREMENT, UM AS WAS MENTIONED
BEFORE. UM PU èC HAS ALREADY
STARTED LOOKING AT THE, UH
CENTRAL PROCUREMENT THROUGH
THEIR OR WILL LOOK AT CENTRAL
PROCUREMENT THROUGH THEIR
INTEGRATED RESOURCE PLANNING
PROCESS TO DETERMINE UM, A IF
THERE IS A NEED FOR A CENTRAL
PROCUREMENT ENTITY, AND IF SO,
WHETHER OR NOT Dð WR WOULD BE
THE MOST APPROPRIATE, UH, ENTITY
FOR THAT. SO WHAT WE HAVE DONE
IS WE'VE STARTED PREPARING. UM
WE DO NEED STAFFING, BECAUSE,
UH, PRIOR TO A B 1373. WE DIDN'T
HAVE THE AUTHORITY OR THE
STAFFING TO DO ANY OF THIS. SO
WE'VE STARTED, UM, YOU KNOW,
COORDINATING AND FOLLOWING THE
IRP PROCEEDING, WE ARE ALSO
GETTING RESOURCES TOGETHER AND
MAYBE SECURING CONTRACTS TO BE
ABLE TO SUPPORT WHAT THAT ROLE
COULD ULTIMATELY LOOK LIKE TO
CONDUCT SOLICITATE COMPETITIVE
SOLICITATIONS TO SUPPORT
ESSENTIAL PROCUREMENT FUNCTION
FOR, UH, ELIGIBLE LEAVE LONG
LEAD TIME. CLEAN ENERGY
RESOURCES. OK, THANK YOU. THANK
YOU. SO I'M GONNA MOVE. WHAT
ASSEMBLY MEMBER. ONE FINAL FILE.
FOLLOW UP ON DIABLO. SO STATE
$1.4 BILLION UM FEDERAL Dð E
PAYING 1.1 BILLION SO DO YOU
EXPECT THAT WE WOULD BE CALLED
ON TO FORGIVE THE $300 MILLION
DIFFERENCE? OR WOULD PG AND E BE
PAYING THAT BACK? UM I THINK
IT'S TOO EARLY TO SPECULATE ON
AMOUNTS. IT IS ALL POSSIBLE. UM
FIRST OF ALL, THERE WAS AN S¼ B
846, A REQUIREMENT TO PUT INTO
THE Dð WRPGE LOAN AGREEMENT.
FORGIVENESS PROVISION, SO THAT
IS, UH, PROVIDED FOR IN THE LOAN
AGREEMENT, AS REQUIRED BY S¼ B
846. BUT AS I HAD MENTIONED,
THERE ARE THREE SOURCES OF
POTENTIAL FUNDING TO PAY BACK
THE STATE LOAN AGAIN. THERE'S
THE BIG ONE, WHICH IS THE Dð Ó
E AWARD AMOUNTS. UM, BUT THERE'S
ALSO A POTENTIAL REVENUES OVER
IN THE LAST YEAR OF EXTENDED
OPERATIONS, SO WE WON'T KNOW
THAT UNTIL WE ACTUALLY GET
THROUGH EXTENDED OPERATIONS INTO
THE FINAL YEAR AND THEN ANY
OTHER FEDERAL MONIES THAT WE CAN
FIND ALONG THE WAY THAT PGE
COULD BE, UH OR DIABLO CAN, I
SHOULD SAY COULD BE ELIGIBLE FOR
SO WITH THOSE, YOU KNOW, THREE
UNKNOWNS. WE'D REALLY WOULD HAVE
TO GO GO THROUGH THOSE STEPS TO
FIGURE OUT WHAT WHAT IS
AVAILABLE AND WHAT POTENTIALLY
WOULD NEED TO BE FORGIVEN, IF
ANYTHING AT THE END OF THAT
PERIOD. SO IF I COULD TURN TO
THE CEC, UM QUESTIONS ABOUT THE
HYDROGEN GRANT PROGRAM, UM AND
WHILE WE'RE ANTICIPATING CUTTING
35 MILLION OUT OF THERE, WHAT DO
YOU INTEND TO FUND AND, UH WHEN
DO YOU ANTICIPATE? UH, APPROVING
? UH, THOSE GRANTS DAMIAN, CHIEF
FINANCIAL OFFICER. THAT'S AN
EXCELLENT QUESTION. AND
UNFORTUNATELY, I'M NOT THE RIGHT
PERSON TO ANSWER IT. SO I HAVE
WITH ME JONAS STEINBECK, WHO
WILL BE COMING UP TO ANSWER
THOSE QUESTIONS. GREAT. THANK
YOU. GOOD MORNING AND WELCOME.
GOOD MORNING. UH, I'M ANGIE
GOULD AND I'M DEPUTY DIRECTOR
FOR THE RESEARCH AND DEVELOPMENT
DIVISION AT THE èC. èC. COULD
YOU BE A LITTLE BIT CLOSER TO
YOUR MICROPHONE, PLEASE? THANK
YOU. UH, SO THE CLEAN HYDROGEN
PROGRAM I WAS SET AT $100
MILLION, BUT THE GOVERNOR'S
BUDGET IS PROPOSING A $35
MILLION REDUCTION SO THAT WOULD
MAINTAIN 65 MILLION UM, SO WE
ARE WORKING ON A, UM A 45
MILLION, UH, SOLICITATION. FOR
UM, CENTRALIZED HYDROGEN
PRODUCTION, SO THAT WOULD BE FOR
PROJECTS THAT ARE DEMONSTRATING
OR SCALING UP CLEAN HYDROGEN AND
PRODUCTION, PROCESSING, STORAGE
AND DELIVERY IN CALIFORNIA. UH
THESE PROJECTS WOULD BE
PRODUCING AT LEAST, UH, FIVE
METRIC TONS OF CLEAN HYDROGEN
PER DAY THEY'D BE PRODUCING HOW
MUCH AT LEAST FIVE METRIC TONS
OF CLEAN HYDROGEN PER DAY. SO
THAT'S EQUIVALENT TO ABOUT, UH,
AT LEAST 100 AND 56 TRUCK TANKS
OF HYDROGEN PER DAY. UM 20
MILLION FROM THIS, UH, $45
MILLION SOLICITATION HAS BEEN
COMMITTED AS COST SHARE FOR THE
ALLIANCE FOR RENEWABLE CLEAN
HYDROGEN ENERGY SYSTEMS OR
ARCHES, UM, HYDROGEN HUB
PROJECT. UM SO WE ANTICIPATE TWO
PROJECTS AND ONE OF THOSE WOULD
LIKELY BE ARCHES. THAT $20
MILLION WAS IDENTIFIED AS COST
SHARE IN THE, UM IN THE ARCHES
APPLICATION TO Dð Ó E. UH, THAT
SOLICITATION WAS RELEASED, UH,
LAST WEEK. UH, IN ADDITION TO
THAT WE HAVE A, UM A FEDERAL
COST SHARE SOLICITATION THAT WE
PUT OUT LAST YEAR, AND WE
IDENTIFIED THREE DIFFERENT
PROJECTS FOR A TOTAL OF THREE
$0.1 MILLION. UM AND THESE WE
ANTICIPATE, UM, BEING APPROVED
AT A BUSINESS MEETING BY JULY OF
THIS YEAR. AND THEN FINALLY, WE
HAVE A DISTRIBUTED CLEAN
HYDROGEN PRODUCTION. UH,
SOLICITATION FOR $10 MILLION IN
CLEAN HYDROGEN FUNDS. UH SO THIS
WOULD BE FOR FACILITIES THAT ARE
CO LOCATED WITH THEIR END USES
TO TRY TO REDUCE CLEAN HYDROGEN
COSTS. AND THESE WOULD BE
PROJECTS PRODUCING BETWEEN ONE
AND FIVE METRIC TONS PER DAY OF
CLEAN HYDROGEN. SO THAT'S
BETWEEN, LIKE 3100 AND 50 TRUCK
TANKS OF HYDROGEN PER DAY. WE
ANTICIPATE ONE AWARD. UH, WITH
THAT, 10 MILLION, UH, BUT WE ARE
LOOKING INTO, UM, OPTIONS TO
COMBINE IT WITH OTHER SOURCES OF
FUNDING SO WE CAN GET ADDITIONAL
PROJECTS AND ADDITIONAL 1 TO 2
PROJECTS, POTENTIALLY UM, AND
THAT SOLICITATION WE ANTICIPATE
RELEASING IN MAY IN THE 35
MILLION. WHY? 35 MILLION I WAS
AT NUMBER SELECTED IS A RELATIVE
TO THE GRANTS THAT WERE OUT
THERE THAT YOU THOUGHT YOU COULD
FUND AT THIS POINT IN TIME. SO
I, I WOULD TURN TO, UH Dð Ó L.
DAVID EXCUSE ME, DAVID. THIS
DEPARTMENT OF FINANCE. UM THE 35
MILLION, UM, WAS PROPOSED BY
GOVERNOR'S BUDGET. UM THAT WAS
LOOKING AT THE AVAILABLE, UM,
THE AVAILABILITY OF FUNDING
BASED OFF OF, UM WHAT THE
DEPARTMENT HAD PLANNED TO COMMIT
, UM, BY THE END OF THE YEAR BY
BY JUNE, 30TH OF 2024. SO WE'RE
LOOKING AT, UM THEIR PLANTS AND
THEIR THEIR PLAN COMMITMENTS.
AND SO THAT WAS, UM THE AMOUNT
THAT WOULD HAVE BEEN AVAILABLE.
SO YOU, YOU YOU YOU WEREN'T
ANTICIPATING. HAVING AN ANOTHER
GRANT TOWARD BE ON THE 65
MILLION AT THIS POINT IN TIME.
YEAH THAT'S WHAT WE'RE PLANNING
FOR RIGHT NOW IS TO, UH, TO PUT
OUT SOLICITATIONS THAT USE THAT
$65 MILLION. THANK YOU. AND
THEN, UM IN TERMS OF THE
OFFSHORE WIND, PORT
INFRASTRUCTURE UPGRADES, UH,
THERE SOMEBODY ELSE IN YOUR
COLLEAGUE.
HELLO AGAIN. I'M ELIZABETH HUBER
. FOR THE RECORD. THE, UH CITING
TRANSMISSION, ENVIRONMENTAL
PROTECTION DIVISION DIRECTOR AT
THE CALIFORNIA ENERGY
COMMISSION. AND SO YOUR QUESTION
WAS ON THE, UH, A B TWO Ó NINE
PORTS INFRASTRUCTURE GRANT
CORRECT. CORRECT. SO WE, UM, ARE
PLANNING. UH, WE'VE HAD A, UH,
WORKSHOP IN NOVEMBER. 3RD OF
2020 THREE THAT, UM, WE LAID OUT
TO THE STAKEHOLDER COMMUNITY ALL
THE, UM THE THREE CATEGORIES
THAT WE'RE ABLE TO, UH, FUND, UM
IN THE A B 209 STRATEGIC, UM, IN
THE PORTS PROGRAM. EXCUSE ME. UH
AND SO, WITH THAT WE GOT A LOT
OF FEEDBACK. LOOKING AT THE
CATEGORIES FOR, UM, UH,
INFRASTRUCTURE DEVELOPMENT OR
NEXT PHASE. UM PARTNERSHIP. UM
OR MATCHING FUNDS IF YOU WILL,
WITH, UM, WITH THE FEDERAL
PROGRAMS THAT ARE AVAILABLE OUT
THERE, ONE IS THE UM HUMBOLDT
HARBOR DISTRICT WHERE WE HAD
GIVEN A GRANT TO THEM, UM, IN AN
EAR EARLIER BUDGET ITEM, AND
THEY WERE ABLE TO UTILIZE THAT
FOR THE 429 MILLION FROM THE U
S¼ DEPARTMENT OF TRANSPORTATION.
SO BACK TO THESE, UM, GRANTS. UM
BECAUSE OF THE SUCCESS ON ON THE
INFRASTRUCTURE WORK THAT'S
HAPPENING UP. THERE WE ARE, UM,
UH, GOING TO BE SUBMITTING, UM,
A SOLICITATION. UM THROUGH OUR,
UH, INTERNAL PROCESS, AND THEN
WE LOOK AT BY THE END OF QUARTER
TWO, SO BY JUNE OF THIS YEAR,
WE'LL BE POSTING THAT
SOLICITATION. UM FOR, UH, UM,
FOR THESE PORTS TO APPLY FOR
THESE GRANTS, THERE'LL BE A
COMPETITIVE PROCESS. WE'LL HAVE
A WORKSHOP. UM, HOPEFULLY IN
JULY, UM, WALKING THROUGH THE
SOLICITATION CAUSE IT WILL BE
OUT FOR ABOUT 45 DAYS. AND SO
OUR HOPE IS BY THE END OF THIS
YEAR TO ACTUALLY, UM, ENCUMBER
THOSE FUNDS AND UM AND
DISTRIBUTE THEM. I KNOW THAT.
YOU KNOW THIS WIND ENERGY
INVESTMENT THAT WE'RE HOPING THE
PRIVATE SECTOR IS GOING TO
PARTNER WITH US ON, UM YOU KNOW
HAS LONG, LONG LEAD TIMES. UM
AND THE INFRASTRUCTURE
DEVELOPMENT IS SIGNIFICANT. AND
I KNOW CERTAINLY AT THE PORT OF
LONG BEACH AND UM, THAT THEY
WILL PLAY A VITAL ROLE IN TERMS
OF WHETHER WE DEVELOP THE
INFRASTRUCTURE, UH, TO ACTUALLY
CONSTRUCT THESE, UH AND THE I'M
I'M CONCERNED ABOUT WHETHER WE
HAVE IDENTIFIED WHAT ARE THE
ABSOLUTELY ESSENTIAL STEPS THAT
NEED TO FALL INTO PLACE TO KEEP
US ON SCHEDULE. UH IN IN IN
TERMS OF THAT, AND SO I'M
INTERESTED. I KNOW THEY HAVE,
UH, REQUEST FOR SOME
INFRASTRUCTURE INVESTMENTS THAT
I'M SURE THEY'LL BE APPLYING FOR
THE GRANTS FOR, UM, THAT THEY
HAVE, YOU KNOW, SOME REAL TIMING
QUESTIONS ON IN TERMS OF TO MOVE
FORWARD. BUT DO WE ACTUALLY HAVE
WE IDENTIFIED? WHAT ARE THE
ESSENTIAL? UM INFRASTRUCTURE
INVESTMENTS THAT MUST BE MADE
AND WHAT KIND OF TIME FRAME THEY
HAVE TO BE MADE ON TO KEEP, UH
SORT OF WIND AND THE WIND
TURBINE PROJECTS ON SCHEDULE. UM
WE DO HAVE A, UM, IN OUR DRAFT
STRATEGIC PLAN THAT WAS POSTED
ON JANUARY. UM 19TH PUBLIC
COMMENT IS OPEN THROUGH, UM,
APRIL 22ND OF THIS YEAR AND
WE'LL BE HAVING TWO WORKSHOPS
AROUND. UM THE, UH, DEPLOYMENT
OF OFFSHORE WIND, THE IMMEDIATE
IDENTIFICATION THAT YOU
REFERENCE WITH, UM, THE PORT OF
LONG BEACH AND PORT OF HUMBOLDT
WHO HAVE BEEN COLLABORATIVELY
WORKING. WE KNOW THERE'S THREE
OF PORT THAT WE NEED IN ORDER TO
DEPLOY. UM UH SAFELY AND
SUCCESSFULLY OFFSHORE WIND AND
THAT STAGING AN INTEGRATION IS
IN THAT FIRST STEP. AND UM, AND
THESE TWO PORTS HAVE BEEN, UM,
RAISING THEIR HAND. THE LOUDEST
IS THAT THAT THAT'S THE TYPE
THEY WANT TO, UM UM IN THE
DEVELOPMENT AND EXPANSION AT
THEIR PORTS. AND I SAY THAT
BECAUSE WE ALSO WILL NEED A PORT
THAT WILL SUPPORT THE SPECIFIC
VESSELS FOR THE MAINTENANCE AND
TO GET OUT TO THOSE, UM, WIND
FARMS. SO UM, A SMALLER PORT IN
IN THE PORT OF RICHMOND HAS
IDENTIFIED THAT THEY WOULD LIKE
TO REALLY WORK AND, UM, BE A
PORT TO SUPPORT THOSE VESSELS.
IN ADDITION TO THAT IMMEDIATE
INFRASTRUCTURE AT THE PORT, UM
WE'VE IDENTIFIED THE IMPORTANCE
OF, UM, WORK FOR WORKFORCE
DEVELOPMENT TRAINING AND, UM, AN
APPRENTICESHIP PROGRAMS AND
WE'VE BEEN WORKING, UM, IN OUR
DRAFT, UM, STRATEGIC PLAN. WE
WORKED REALLY CLOSE. WITH OUR
OUR PARTNER AGENCIES OVER AT THE
LABOR AND WORKFORCE DEVELOPMENT
AGENCY AND THE UM WORKFORCE
DEVELOPMENT BOARD ON SOME
STRATEGIC PLANS AND HOW TO
UTILIZE FEDERAL FUNDS IN ORDER
TO, UM, GET THOSE, UM, UH,
TRAINING CENTERS IN THE AREAS
WHERE THE WORK IS ACTUALLY GOING
TO BE, UM, CONDUCTED THEN,
OBVIOUSLY, UM, YOU KNOW THE
TOPIC THAT'S ALREADY BEEN
DISCUSSED TODAY AND WILL BE
CONTINUE TO BE DISCUSSED IS, UM,
TRANSMISSION PLANNING. AND UM
AND THEN THE IMPLEMENTATION OF,
UM THE TRANSMISSION
INFRASTRUCTURE SPECIFIC TO
OFFSHORE WIND AND WE ARE WE ARE
COLLABORATING. UM, WITH THE
DEPARTMENT OF DEFENSE DEFENSE.
THE U S¼ DEPARTMENT OF ENERGY
ALONG WITH, UM, THE NA NATIONAL
RENEWABLE ENERGY LABORATORY
EMERALD AS IT'S FONDLY CALLED,
UM, AS WELL AS, UM, SOME
PARTNERSHIPS WITH, UM THE, UH,
CAL POLY HUMBOLDT. UM, SHOTS.
RESOURCE ENERGY CENTER. UM ON
PLANNING AND ALONG WITH OUR
PARTNER AGENCY, èC, P, èC. AND
THE CALIFORNIA IS SO GREAT,
THANK YOU. I KNOW THAT THE PORT
OF W IS VERY INTERESTED IN THE
WORKFORCE DEVELOPMENT ASPECT. UH
UH, OF THIS, ALONG WITH THE
PARTNER THERE IN TERMS OF THE
NAVAL BASE AND ALL OF THE
TECHNOLOGY THAT THEY HAVE. AND,
UH SO, UH, I APPRECIATE THAT.
I'M I'M II. I THOUGHT THAT IT
FAIRLY COMPELLING. UH, CASE WAS
BEING MADE BY LONG BEACH IN
TERMS OF TRYING TO STAY ON
SCHEDULE FOR OR OR LOSING SORT
OF SOME OF THE OPPORTUNITIES
THAT THEY MIGHT HAVE IN TERMS OF
KEEPING. UH THE RIGHT
CONTRACTORS THE RIGHT EXPERTISE
THERE, UH, AT AT THIS POINT IN
TIME, AND WITH THAT, UM, I
BELIEVE WE HAVE EXHAUSTED AND
VERY THOROUGHLY EXHAUSTED TO
QUESTIONS HERE, BUT THIS WAS
CERTAINLY THE MOST AMBITIOUS
PART OF OUR PROGRAM THIS MORNING
. UH SO I REALLY APPRECIATE ALL
OF THE ANSWERS AND ALL OF THE
COOPER OPERATION FROM ALL OF THE
AGENCIES, ET CETERA. THANK YOU
VERY MUCH, AND WE WILL NOW MOVE
TO ISSUE TWO. AND THAT'S ENERGY
RESOURCE PROGRAM ACCOUNT. UH UH,
THE IPA STRUCTURAL DEFICIT
RELIEF TRAILER BILL LANGUAGE,
RIGHT? THANK YOU. THANKS. BUT
STAY IN TOUCH ON ON THIS. YEAH.
KEEP KEEP ME INFORMED AS SHE WAS
TAKING ME ABOUT THIS STUFF. OK
AND, UM, SO WHICHEVER
ADMINISTRATION WITNESS WOULD
LIKE TO START OFF. UH, GOOD
MORNING. UH, DAMIEN MENNA
FINANCIAL OFFICER AT THE ENERGY
COMMISSION, AND I'M HERE TO
PRESENT THE ENERGY RESOURCES
PROGRAMS ACCOUNT STRUCTURAL
DEFICIT RELIEF TRAILER BILL
LANGUAGE. UH, THE ENERGY
RESOURCES PROGRAMS ACCOUNT,
WHICH WE CALL P. A IS THE MAIN
FUND SUPPORTING THE COMMISSION
SUPPORTS THE BOOK OF BULK OF OUR
ACTIVITIES AND LEADING THE STATE
TO A 100% CLEAN ENERGY FUTURE.
THE REVENUES IN THE ACCOUNT ARE
LINKED TO THE SALE OF METERED
ELECTRICITY, AND THAT IS RETAIL
ELECTRICITY SALES. THE SURCHARGE
GENERATED APPROXIMATELY $71.6
MILLION IN FISCAL YEAR, 2220
THREE AND CURRENTLY COSTS THE
AVERAGE HOUSEHOLD ABOUT $2
ANNUALLY SO ABOUT 16 CENTS PER
MONTH. REVENUE GROWTH IN THE
ACCOUNT HAS BEEN STAGNATING IN
THE LAST SEVERAL YEARS, AND THIS
IS A RESULT OF TWO MAIN FACTORS.
THE FIRST FACTOR IS BUILDING AN
APPLIANCE ENERGY EFFICIENCY
MEASURES THAT HAVE REDUCED THE
GROWTH OF ELECTRICITY
CONSUMPTION AND THIS IS A DIRECT
RESULT OF THE SUCCESS OF èC èC
S¼ EFFICIENCY MEASURES ON ITEMS
SUCH AS COMPUTERS, CLOTHES,
DRYERS, DISHWASHERS, AND, UH AND
SO ON AND SO FORTH. THESE
POLICIES, REDUCE ELECTRICITY
CONSUMPTION AND, UM, HAVE SAVED
CALIFORNIA CONSUMERS WELL OVER
$100 BILLION OVER THE LAST 40
YEARS. HOWEVER THE REDUCTION IN
ELECTRICITY CONSUMPTION HAS ALSO
IMPACTED URBAN REVENUE. THE
SECOND FACTOR IS AN INCREASE IN
BEHIND THE METER ELECTRICITY
FROM SOURCES SUCH AS ROOFTOP
SOLAR, WIND AND NON-UTILITY
GENERATION. WE REFER TO THIS AS
B Tð M ELECTRICITY FOR BEHIND
THE METER UNDER CURRENT STATUTE,
B Tð M ELECTRICITY IS EXEMPT
FROM THE IPA SURCHARGE AS B Tð M
ELECTRICITY CAPACITY GROWS AND
REDUCES RETAIL ELECTRICITY
CONSUMPTION REVENUES DECLINED
CORRESPONDINGLY. THE SENATE
OFFICE OF RESEARCH LOOKED INTO
THIS ISSUE IN 2021 AND PUBLISHED
A REPORT FORECASTING THAT Dð Tð
M ELECTRICITY WILL GROW FROM
ABOUT 7% IN 2015 TO 17% OF TOTAL
ELECTRICITY CONSUMED BY 2030. SO
IF YOU COMPARE THAT TO RETAIL
ELECTRICITY SALES, UM THOSE ARE
ONLY INDICATED EXCUSE ME
ANTICIPATED TO INCREASE BY ABOUT
1.6% ANNUALLY BETWEEN NOW AND
2035. THE SENATE REPORT
CONCLUDED THAT THE GROWTH IN B
Tð M ELECTRICITY RESULTS IN AN
EXCUSE ME IN AN INEQUITABLE COST
SHIFT FROM HIGHER INCOME
CUSTOMERS TO LOWER TO MIDDLE
INCOME UTILITY CUSTOMERS. SO
WHILE THE REVENUE AMOUNT HAS
STAGNATED, THE AMOUNT
APPROPRIATED EACH YEAR OUT OF
IPA HAS INCREASED. UH THIS
YEAR'S GOVERNOR'S BUDGET
PROPOSES EXPENDITURES OF ABOUT
$95 MILLION AND THAT COMPARE
THAT WITH THE ANNUAL REVENUES OF
ABOUT $72 MILLION, AND THIS
CREATES WHAT WE CALL A
STRUCTURAL DEFICIT. THAT'S A
SITUATION IN WHICH ANNUAL
EXPENDITURES EXCEED REVENUES. TO
ADDRESS THIS ISSUE AND THE
ADMINISTRATION REDUCED
EXPENDITURES BY ABOUT $37
MILLION IN THE YEARS PRIOR TO
THE PANDEMIC IN LATE 20 TENS UH
èC E èC SUBMITTED AND THE
LEGISLATURE APPROVED MULTIPLE
BUDGET CHANGE PROPOSALS TO
REDUCE EXPENDITURES OUT OF IRP.
UH, BUT AT THIS POINT, WE HAVE
EXHAUSTED THE AVAILABLE OPTIONS
TO REDUCE URBAN EXPENDITURES. SO
UM, THAT'S WHY WE HAVE THIS
TRAILER THE LANGUAGE IN FRONT OF
YOU THAT PROPOSES TO DO THREE
THINGS. FIRST RAISE THE
STATUTORY CAP ON THE IPA
SURCHARGE TO WHAT IT WOULD HAVE
BEEN IF THE CAP HAD BEEN TIED TO
INFLATION. SECOND TIE THE CAP TO
THE CONSUMER PRICE INDEX, MOVING
FORWARD AND THIRD EXTEND THE
SURCHARGE TO BEHIND THE METER
ELECTRICITY CONSUMPTION,
EXTENDING THE SURCHARGE TO
BEHIND THE METER ELECTRICITY
CONSUMPTION WOULD MORE EQUITABLY
DISTRIBUTE THE P OR CHARGE AMONG
CONSUMERS, AND THIS PROPOSAL
WOULD ALSO ALLOW THE èC èC TO
INCREMENTALLY ADJUST TO THE
SURCHARGE AS NEEDED TO KEEP THE
FUND SOLVENT BALANCING REVENUES
WITH APPROPRIATIONS AND
EXPENDITURES THAT HAVE BEEN
APPROVED BY THE LEGISLATURE. UH,
SO THANK YOU FOR YOUR
CONSIDERATION, AND I'LL TURN IT
OVER TO FINANCE THE L A Ó AT
THIS POINT. DAVID EVANS WITH THE
DEPARTMENT OF FINANCE. UM I
WOULD JUST LIKE TO ADD THAT AND
KIND OF SHAPE THE NARRATIVE THAT
THE PROPOSAL THE
ADMINISTRATION'S PROPOSAL, UM,
IS TO RAISE THE SURCHARGE CAP
AND THEN TO APPLY THE CAP TO TIE
TO THE CONSUMER PRICE INDEX. UM,
THE PROPOSAL IS NOT TO, UM, TO
INCREASE THE SURCHARGE. UM SO
THERE'S THERE WON'T BE A, UH, A
SURCHARGE INCREASE. UM AND
THAT'S BEING PROPOSED IN THE AT
THE GOVERNOR'S BUDGET. IT'S JUST
OR RESTRUCTURED THE CAP OF THE
SURCHARGE. SO I JUST WANT TO,
UM, JUST TO EMPHASIZE THAT NÓ
THANK YOU. I'M SARAH CORNET WITH
THE LEGISLATIVE ANALYST OFFICE.
WE GENERALLY BELIEVE THIS
PROPOSAL IS REASONABLE AS IPA IS
IN A STRUCTURAL DEFICIT IN THIS
ACCOUNT FUND. CEC'S OPERATIONS
EXTENDING TO BEHIND THE METER
GENERATION, UH, WOULD HELP
ENSURE THESE CUSTOMERS PAY THEIR
FAIR SHARE AS THEY BENEFIT FROM
èC PROGRAMS AND INITIATIVES.
AND WHILE ANY PROPOSAL TO
INCREASE OR THAT COULD INCREASE
RATES SHOULD BE CONSIDERED VERY
CAREFULLY BECAUSE OUR RATES ARE
SO HIGH HERE IN CALIFORNIA.
RISING FASTER THAN INFLATION. UM
THIS PROPOSAL IS MODEST AND IS
EXPECTED TO INCREASE RATES ONLY
BY A FEW ADDITIONAL CENTS EACH
MONTH AT AT AT A GRADUATED PACE.
AND WE RECOMMEND THE LEGISLATURE
APPROVE THE PROPOSAL BUT
CONTINUE TO MONITOR BOTH FUTURE
REQUESTS FOR INCREASES, UM FOR A
SPENDING AS WELL AS THE NEED AND
COST EFFECTIVENESS OF EXISTING
SPENDING TO TRY TO CONSTRAIN
EXPENDITURE GROWTH AND KEEP THE
RATES FROM FROM INCREASING TOO
QUICKLY. ANY COMMENTS OR
QUESTIONS. UM SO REMEMBER KINDLY
THANKS. I APPRECIATE THE
TESTIMONY. SO IRP HAS A
STRUCTURAL DEFICIT. UM THIS IS
BECAUSE REVENUES HAVE FAILED TO
KEEP PACE WITH INCREASING
EXPENDITURES, PRIMARILY STAFF
SALARIES AND BENEFITS, AS WELL
AS GROWING COST TO IMPLEMENT NEW
LEGISLATION EACH YEAR. SO MISTER
MEM NOT CAN YOU PROVIDE MORE
DETAIL ABOUT THE IPA FUNDS
PROJECTED INSOLVENCY, AND
PARTICULARLY, WHAT IS MOST
IMPACTFUL TO THIS DEFICIT? IS IT
STAFF COSTS, IMPLEMENTING NEW
LAWS OR OTHER FACTORS IN THAT
HAVE A COUPLE FOLLOW UPS? UM,
I'LL TAKE THE FIRST QUESTION,
UH, FIRST HAVING TO DO WITH, UH,
YOU KNOW, FORECASTING THE
STRUCTURAL, UM, IN SOLVENCY OF
DIFFERENT, UM, WITHOUT THIS
PROPOSAL, WE ANTICIPATE THAT THE
FUND BALANCE WOULD FALL BELOW A
PRUDENT RESERVE IN FISCAL YEAR
2627 WITH THE PROPOSAL AND THE
INCREMENTAL REVENUE INCREASE
THAT WOULD BE COMPANY AT THE
FUND WOULD NOT BE INSOLVENT
UNTIL 2027 28 ON THE SECOND
QUESTION IN TERMS OF WHAT
CONTRIBUTES TO THE GROWTH OF
EXPENDITURES. UM YOU KNOW, WE
DO, UH, BUDGET ADJUSTMENTS EVERY
YEAR FOR COMBINATION OF, UM
STAFF, SALARY AND BENEFIT
INCREASES, AS WELL AS TO
IMPLEMENT NEW LEGISLATION. SO
OVER TIME, AS THE COST OF THOSE
HAVE OUTPACED THE INCREASE IN
REVENUE, UH, FROM INCREASED
ELECTRICITY, ELECTRICITY CAN, UH
, RETAIL SALES THAT HAS, WHAT'S
UM, THAT HAS, UH WHAT, UH, THAT
HAS LED TO THE STRUCTURAL
IMBALANCE THAT WE'RE SEEING WHAT
PERCENTAGE OF THE EUROPE FIND IS
BEING SPENT ON PROJECTS IN
COMPARISON TO ADMINISTRATIVE
COSTS LIKE SALARIES. SO THE
QUESTION IS, WHAT PERCENTAGE OF
OUR OUR COSTS ARE YOU RELATED TO
STAFF VERSUS NON STAFF COSTS? UM
I DON'T KNOW IF I HAVE THAT OFF
THE TOP OF MY HEAD. UM SO I'LL
I'LL I CAN PLAN TO GET BACK TO
THE COMMITTEE IF THAT'S BE
INTERESTED IN THAT. UM THIS IS
TOUCHED ON A LITTLE BIT, AND
THAT IS, UM SOMETHING WE ALL
KNOW TOO WELL. AND THAT IS THAT,
UM OUR CONSTITUENTS ARE PAYING
SOME OF THE HIGHEST RATES FOR
ELECTRICITY IN THE NATION. UH,
WE'RE ALL RECEIVING CALLS. UH,
IT'S PROBABLY THE TOP ISSUE. UH,
RIGHT NOW, UH, HOW CAN WE
JUSTIFY ANOTHER COST? UM ALBEIT
MINOR, IN EFFECT. UH, THAT WILL
ADD, UH, CHARGES TO YOUR
ELECTRICITY BILLS RIGHT NOW. UM
I THINK YOU KNOW THAT. THAT ALSO
COULD BE A QUESTION TO THE TO
THE ADMINISTRATION. I THINK IN
OUR OFFICE'S VIEW, UH IPA IS IN
A STRUCTURAL DEFICIT AND AS THE
AS AN AGENCY THAT IS BEING KIND
OF RELIED AND CALLED UPON BY THE
STATE, YOU KNOW, AS AS OUR
PREVIOUS PANEL, NOTED èC. èC
IS DOING A LOT TO, UM, IMPLEMENT
A LEGISLATIVE, UH, DIRECTION
REGARDING ENERGY POLICY AND
RELIABILITY. AND IF, IF THE
LEGISLATURE YOU KNOW WANTS TO,
UM TO ENSURE THE FUND. THE FUND
REMAINS SOLVENT. UH, WE FIND THE
PROPOSAL TO BE A REASONABLE
SOLUTION THAT BEING SAID, UH IT
IS. IT IS VERY IMPORTANT TO
CONSIDER IMPACTS ON ON ON
RATEPAYERS. YEAH I THINK THAT'S
RIGHT AND LET ME TEE IT UP THIS
WAY, AND THIS COULD BE PART OF
THE FOLLOW UP, TOO. ARE THERE
ADDITIONAL STEPS TO COMMISSION
CAN TAKE TO REDUCE REDUCE, FOR
EXAMPLE, STAFF EXPENDITURES, UM,
SO THAT WE DO NOT NEED TO DOUBLE
THE PURPOSE SURCHARGE. UH, YES.
UH, FIRST I WANT TO GO BACK. I
THINK, I. I MADE A MISTAKE IN
TERMS OF, UM, WHICH YEAR I WAS
LOOKING AT THE COLUMN AT THE
CHART HERE. IPAS WITH THE
ADDITIONAL FUNDING AND REVENUE
FROM THIS PROPOSAL. UH, THIS
ACCOUNT WOULD GO INSOLVENT IN
2829 WOULD FALL BELOW ITS
PRUDENT RESERVE AND FISCAL YEAR
2728 WHICH REQUIRE US TO TAKE
ACTION, SO THANK YOU FOR LETTING
ME CLARIFY THAT, UM WITH REGARD
TO, UM, OPPORTUNITIES TO REDUCE
COSTS TO IPA, UM, WE HAVE WORKED
COLLABORATIVELY WITH THE
ADMINISTRATION AS I MENTIONED.
THE CONSECUTIVE BUDGET PROPOSALS
IN THE LATE 20 TENS, UH, TO
REDUCE COSTS OFF OF BPA AND MOVE
STAFF EXISTING STAFF ONTO A MORE
APPROPRIATE OR OTHER APPROPRIATE
I SHOULD SAY, UH, FUND SOURCES,
UH, THAT'S SOMETHING WE CAN
CONTINUE TO EXPLORE TO EXPLORE
WITH THE ADMINISTRATION AND
SOMETHING, UM, THAT WE EXPLORE
EVERY YEAR AS WE'RE DEVELOPING
THE BUDGET AND POTENTIALLY AS AN
ALTERNATIVE TO THE RISING
SURCHARGE, SO, YEAH, IF WE CAN
MAYBE GET BACK ON THAT. SO ARE
YOU ASKING FOR, UM, ASKING FOR
WHAT? WHAT IS A PERCENTAGE OF
STAFF COSTS RELATIVE TO ACTUAL
PROJECT WORK. UM POTENTIALLY ARE
THERE WAYS OF CUTTING THOSE
COSTS. AND I GUESS, ULTIMATELY
TO AN EXTENT WHERE IT COULD AT
LEAST POTENTIALLY OFFSET THE
NEED TO RAISE THE SURCHARGE BY
DOUBLE GIVEN SENSITIVITY AROUND
RAS NOW, GOT IT, I. I WOULD I
WOULD POINT OUT. UM THE
PROPOSAL. UH, IN FRONT OF THE,
UH LEGISLATURE IS NOT TO
INCREASE THE SURCHARGE AS MY
COLLEAGUE FROM THE DEPARTMENT OF
FINANCE MENTIONED JUST TO
INCREASE THE SURCHARGE CAP. UM
THE PROPOSAL WOULD EXTEND THE
EXISTING SURCHARGE TO BEHIND THE
METER ELECTRICITY. THIS WOULD
MORE EQUITABLY DISTRIBUTE THE
EXISTING SURCHARGE. UM, WHICH
WOULD GENERATE ABOUT $4.5
MILLION IN THE FIRST YEAR. $10
MILLION IN EACH YEAR. AFTER THAT
, UH, THE COMMISSION EACH YEAR
WOULD LOOK AT THE EXPECTED
EXPENDITURES AND REVENUES IN THE
FUND AND WOULD ADJUST THE
SURCHARGE INCREMENTALLY EITHER
UP OR DOWN AS NEEDED TO MAINTAIN
A PRUDENT RESERVE. MORNING
RACHEL EHLERS WITH THE L A Ó
JUST ONE THING TO ADD. YOU HAVE
A LOT OF DISCRETION AS THE
LEGISLATURE OVER HOW MUCH THE
COMMISSION CAN SPEND SO AGAIN
THIS PROPOSAL BEFORE YOU WOULD,
UH, GIVE THEM THE AUTHORITY TO
RAISE THE SURCHARGE OVER TIME,
BUT THEY CAN'T REALLY RAISE IT
REASONABLY BEYOND THEIR
AUTHORITY TO SPEND. SO YOU KNOW,
IF THEY WERE TO DOUBLE THE
SURCHARGE AND RAISE A BUNCH OF
MONEY, THEY CAN'T SPEND THAT
MONEY UNLESS YOU HAVE GIVEN THEM
THE AUTHORITY TO DO SO THROUGH
THE ANNUAL BUDGET ACT. SO
REALLY, I THINK ONE OF THE
REASONS WE COMFORTABLE WITH THIS
PROPOSAL IS BECAUSE EVERY YEAR
IN DEVELOPING YOUR BUDGET YOU
WILL DECIDE HOW MUCH YOU WANT
THE COMMISSION TO DO HOW MUCH
YOU WANT STAFF COMPENSATION TO
BE THROUGH YOUR AUTHORITY TO
RATIFY M Ó U S¼ WITH COLLECTIVE
BARGAINING AGREEMENTS THROUGH,
UH, WHAT ACTIVITIES YOU KIND OF
AUTHORIZE THEM TO UNDERTAKE, AND
THAT'S PART OF OUR
RECOMMENDATION IS THAT YOU TAKE
THAT REALLY SERIOUSLY AND EACH
YEAR AS YOU HAVE B èC P S¼ COME
BEFORE YOU FOR SPENDING OUT OF
IRP TO MAKE SURE IT'S IMPORTANT
AND TO LOOK AT WHAT THEY'RE
DOING RIGHT NOW AND MAKE SURE
THAT THAT'S REALLY IMPORTANT.
THAT'S A KEY TOOL THAT YOU HAVE
TO TRY AND MAKE SURE THAT THESE
SURCHARGES DON'T UM, CONTINUE TO
INCREASE EVEN IF THEY HAVE THE
AUTHORITY TO INCREASE IT UP TO A
HIGHER CAP. YOU HAVE THE
AUTHORITY TO, UH, TELL THEM HOW
MUCH THEY'RE ALLOWED TO SPEND
OUT OF THAT FUND EACH YEAR.
FAMILY MEMBER. THE FEATURE
YOURS. THANK YOU. AND, UM I
GUESS RECOGNIZING THAT YOU KNOW,
AS YOU SAID THE PROPOSAL WOULD
HAVE A, YOU KNOW, MODEST IMPACT.
I THINK I SHARE A NUMBER OF
ASSEMBLY MEMBERS, UH, ASSEMBLY
MEMBER CONNOLLY'S CONCERNS
ALMOST ON A PHILOSOPHICAL LEVEL
SO AND LET ME MAKE SURE THAT I
FIRST UNDERSTAND THIS CHART. SO
IF I'M READING THIS CHART
CORRECTLY, IT'S NOT SHOWING THAT
REVENUE IS DECLINING. IT'S
SHOWING THAT REVENUE AND
TRANSFERS ARE STEADY. AND
EXPENDITURES HAVE GROWN ABOVE
REVENUE. SO THE STRUCTURAL
DEFICIT EXISTS BECAUSE YOU'RE
SPENDING MORE MONEY. THEN YOU
HAVE AND LIKE IF YOU'RE A SMALL
BUSINESS OWNER, IF YOU'RE A
FAMILY, WHEN YOU HAVE A
STRUCTURAL DEFICIT, YOU HAVE TO
START SPENDING LESS MONEY. YOU
DON'T YOU CAN'T GO TO YOUR BOSS
AND SAY, OH, GOSH, YOU KNOW,
LIKE MY CREDIT CARD SPENDING IS
$1000 MORE A MONTH THAN WHAT
YOU'RE PAYING ME. I NEED YOU TO
GIVE ME MORE MONEY LIKE THAT'S
JUST NOT A THING. UM SO I. I
LIKE ASSEMBLY MEMBER CONNOLLY
WOULD VERY MUCH LIKE TO
UNDERSTAND AN ALTERNATIVE
PROPOSAL. THAT WOULD, UH KEEP
EXPENDITURES WITHIN REVENUE AND
TRANSFERS AND UNDERSTAND WHAT
THAT WOULD LOOK LIKE. AND WHAT,
IF ANY, IMPACT IT WOULD HAVE ON
SOME OF THE KEY PROJECTS AND
INITIATIVES BECAUSE IF I'M
UNDERSTANDING CORRECTLY, I THINK
THESE ARE LARGELY KIND OF
ADMINISTRATIVE COSTS, LIKE WE'VE
GOT HUNDREDS OF MILLIONS AND
BILLIONS OF DOLLARS THAT HAVE
BEEN ALLOCATED TO, YOU KNOW
PROJECTS AND INITIATIVES, AND
THAT'S DIFFERENT THAN THIS. SO
UM, WHILE IT'S A MODEST COST, I
THINK, PARTICULARLY GIVEN THE AH
FINANCIAL SITUATION IN THE STATE
OF CALIFORNIA FINDS OURSELVES IN
RIGHT NOW. I THINK THAT WE NEED
TO BE TAKING A REALLY, REALLY
HARD LOOK AT WHAT IT'S GONNA
TAKE FOR US TO LIVE WITHIN OUR
MEANS IN THE SAME WAY THAT ALL
OF OUR CONSTITUENTS ARE REQUIRED
TO LIVE WITHIN THEIR MEANS.
DUDE. DAVID EVANS DEPARTMENT OF
FINANCE. UM I WOULD LIKE TO
PROVIDE CLARIFICATION ON THAT
CHART. SO THE CHART WOULD
DISPLAY UM, NOT JUST LIKE
EXPENDITURES BY AUTHORIZED
EXPENDITURES OF WHAT THEY UM
WHAT THE COMMISSION IS
AUTHORIZED TO SPEND IT, UM TO ME
A STATUTORY REQUIREMENTS OR
STAFFING COSTS TOWARDS, UM UH,
CHAPTER LEGISLATION OR AND
THINGS LIKE THAT. AND SO, UM IT
MIGHT NOT REFLECT NECESSARILY
WHAT THERE'S ACTIVELY SPINNING.
AND SO WHEN WE DO OUR, UM,
REVIEW OF THEIR PHONE CONDITION
STATEMENTS AND THEIR, UM THEIR
EXPENDITURES THAT WILL BE LIKE
THE ACTUAL EXPENDITURES. AND SO
I DON'T I WANT TO PROVIDE
CLARIFICATION THAT IT'S NOT LIKE
THE COMMISSION IS SPENDING MORE
MONEY THAN UM, THE ACTUALLY HAVE
THE REVENUE FOR WHERE IS WE'RE
DISPLAYING THAT THE AUTHORIZED
EXPENDITURES EACH YEAR, UM,
EITHER DUE TO INCREASED
REGULATIONS OR STATUTE,
STATUTORY REQUIREMENTS, THE
COMMISSION WILL SAY THAT, UM, TO
MEET THIS, UM, REQUIREMENTS UM
WE WOULD NEED X NUMBER OF STAFF
AND SO AND THAT WOULD BE, UM
IMPLIED, AND SO THAT CHOICE IS
SHOWING IN ORDER TO MEET THE
STATUTORY REQUIREMENTS. UM, THE
EXPENDITURES. THE AUTHORIZED
EXPENDITURES ARE EXCEEDING THE
AUTHORIZED REVENUE THAT THEY'RE
ALLOWED TO COLLECT. GOT IT. AND
THAT IS A SUPER SUPER HELPFUL,
UM, CLARIFICATION, AND I THINK
YOU KNOW AGAIN, MAYBE THEN I'LL
ADD, UM KIND OF A YOU KNOW
ADDITION TO ASSEMBLY MEMBER
CONNOLLY'S, UH, FOLLOW UP
REQUEST, WHICH IS WHEN YOU LOOK
AT WHAT WOULD IT TAKE TO LIKE
LIVE WITHIN THE EXISTING REVENUE
STREAM? I THINK IT IS IMPORTANT
THEN TO OUTLINE HERE'S THE STUFF
THAT THE LEGISLATURE HAS ASKED
US TO DO THAT WE WOULD NOT BE
ABLE TO DO. UM AND I. I THINK WE
NEED TO DO MORE OF THAT
RECKONING, BECAUSE THEN WE CAN
ALL TAKE A LOOK AT OH, WAIT OR
ALL OF THOSE THINGS REALLY HIGH
ENOUGH PRIORITIES FOR US TO ASK.
FOR MORE MONEY FROM FROM
CALIFORNIA TAXPAYERS. APPRECIATE
THAT. UM BEFORE WE GO TO, UH,
ITEM THREE. I WOULD JUST TO
FOLLOW UP IN TERMS OF WHAT
DEPARTMENT OF FINANCE SAID. I
KNOW WE ARE ASKING THE èC èC
TO DO MORE AND MORE, UH,
PARTICULARLY WITH ALL OF THE
ISSUES THAT ARE OUT THERE. I
KNOW THAT WE'RE ALSO, UM,
IDENTIFYING THAT, UM WITH THE
RATE OF INFLATION AND THE WAGES
AND SALARIES AND BENEFITS ARE
GOING UP. AND UH, SO THE
QUESTION REALLY? THE FUNDAMENTAL
QUESTION IS, WHAT WOULD YOU DO
LESS OF IF WE, UH, DON'T DO THIS
SO THAT WE CAN COMPARE THIS
BECAUSE, UH, WHAT I DON'T WANT
TO DO IS, UM I KNOW THAT THERE
ARE SOME VERY SPECIFIC THINGS
THAT WE WANT TO SEE E, èC AND
ALL OF THE AGENCIES TO DO A
BETTER JOB OF WHICH IS
PERFORMANCE REQUIREMENTS, ALL OF
THOSE KINDS OF THINGS AND, UH,
IF WE WANT TO DO THOSE, WE BE
PROPERLY STAFFED IN IN TERMS OF
DOING IT. SO UM, THE IDEA THAT,
UM WE SHOULD MAKE SURE THAT WE
HAVE A REGULAR REVENUE STREAM
THAT THAT REVENUE STREAMS GROW
WITH, YOU KNOW, SOME KIND OF
MODEST, UH, REGULARITY TO COVER
THE NORMAL KIND OF INCREASES,
UM, SO THAT WE DON'T FIND
OURSELVES BECAUSE THERE'S A
NUMBER OF DEPARTMENTS WHERE WE
FOUND OURSELVES WHERE THE
REVENUE STREAM JUST STAYED FLAT,
AND SO CONSEQUENTLY, THEY JUST
DID LESS AND LESS. UH AND THEN
WE WERE FRUSTRATED BECAUSE WE
COULDN'T GET CERTAIN THINGS DONE
. SO UH, I WILL WELCOME. UH, AN
INVESTIGATION. INTO EXACTLY
THIS. WHAT WOULD NOT GET DONE SO
THAT WE CAN CLEARLY IDENTIFY
THAT? IT LOOKS LIKE SOMEBODY'S
COMING UP TO HELP US? UH MAYBE,
UH, A LITTLE BIT TO ANSWER THAT
QUESTION. NOW UM, UH AND, UH,
WELL, PART OF THAT IS GREAT.
GOOD MORNING. UH, ROB COOK,
DIRECTOR OF ADMIN FOR THE ENERGY
COMMISSION. UM I UNFORTUNATELY
LIVED WITH THIS ISSUE AND TRY TO
RESOLVE IT SINCE 2016 UM, AND
WHAT YOU'RE ASKING OF US IS
EXACTLY WHAT WE ASK OF OURSELVES
EVERY DAY. UM WE HAVE PUT
FORWARD THREE SEPARATE REPORTS
TO THE LEGISLATURE ON THIS VERY
ISSUE, AND WE HAVE OVER THE
COURSE OF TIME. REDUCED OUR
EXPENDITURES BY $37 MILLION.
THROUGH VARIOUS ACTIONS THAT
THIS COMMITTEE YOUR PREDECESSORS
ON THIS COMMITTEE HAVE HELPED US
CARRY UM, THOSE HAVE BEEN SHIFTS
TO THEIR FUNDS TO HELP US CARRY
OUT OUR MANDATES HAS BEEN AN
ACTUAL REDUCTIONS IN EARTH B
EXPENDITURES. ACTUAL CUTS. UM WE
DID. WE USED THE LAST INCREMENT
OF OUR EXPENDITURE. REVENUE
AUTHORITY TO INCREASE REVENUES
ABOUT 2.5 MILLION, BUT WE'RE
CAPPED OUT. SEVERAL YEARS AGO
ABOUT 2018. THE HIGH WATER MARK
FOR THIS FUND WAS $75 MILLION.
THAT WAS THE MOST HE COULD
GENERATE. IT IS SINCE DECLINED.
IT IS NOW HOVERING AROUND 72
MILLION. IT IS A STAGNANT FUND
SOURCE. ONE OF THE THINGS THAT
WE FOUND IS WE WERE DOING
REDUCTIONS OVER THESE SEVERAL
YEARS. WE'D MAKE $15 MILLION
WORTH OF CUTS, AND THEN WE'D
HAVE A $4 MILLION INCREASE IN
SALARY AND WAGES. BECAUSE OF
NEGOTIATED AGREEMENTS. AND SO HE
WOULD TAKE, YOU KNOW A NICE BIG
STEP FORWARD, AND THEN WE SLIDE
BACK THAT HAPPENED, IN FACT IS
OCCURRED EVERY YEAR. ONE OF THE
BENEFITS THAT WE HAVE FOUND AT
LEAST. SILVER LININGS THAT WE
FOUND IN OUR OPERATIONS. AS A
RESULT OF THE PANDEMIC IS WE'VE
BEEN ABLE TO REDUCE OUR REAL
ESTATE FOOTPRINT BY 40. WHICH
HAS SAVED US A LOT OF MONEY.
WE'RE ALWAYS LOOKING FOR
OPPORTUNITIES LIKE THAT. UM WE
ARE CURRENTLY EXAMINING OUR REAL
ESTATE FOOTPRINT FURTHER AND WE
THINK THAT WE CAN FIND SEVERAL
$100,000 WORTH OF SAVINGS THERE.
UM LIKE I SAID, WE'RE
CONTINUALLY LOOKING FOR
OPERATIONAL EFFICIENCIES. BUT
OUR REVENUE SOURCE IS TAPPED. IT
IS NEVER GOING TO GROW IN ITS
CURRENT STRUCTURE. IT CANNOT
GROW ABOVE WHERE IT IS AND
ROUGHLY 80 WELL. WE'LL GET BACK
TO YOU ON THE ACTUAL NUMBER, BUT
ROUGHLY 80% THERE IS SUBSTANTIAL
PROPORTION OF OUR STAFF WHO ARE
WORKING ON ALL OF OUR MANDATES
ARE FUNDED OUT OF THIS FUND. AND
WHEN WE PUT FORWARD A BUDGET
CHANGE PROPOSAL TO ADDRESS
LEGISLATIVE MANDATES OR
WHATEVER. MOST OF THAT MONEY IS
STAFF COST. THAT'S HOW WE GET
OUR WORK DONE. WE ARE A
KNOWLEDGE WORKER. UH,
ORGANIZATION. WE TRY TO SOLVE
VERY COMPLEX PROBLEMS, UH,
REGARDING THE ENERGY SYSTEM IN
THE STATE. AND IT'S ADDING, YOU
KNOW, EVERY NEW MANDATE MEANS WE
NEED MORE STAFF. FULFILL THOSE
MANDATES. COULD I ASK DEPARTMENT
OF FINANCE? WHAT WHAT WOULD THE
FEE BE IF WE HAD JUST ALLOWED IT
TO BE INCREASING FOR INFLATION?
DURING THESE DURING THIS TIME.
DAVID EVANS DEPARTMENT OF
FINANCE, AND SO WE RAISED THE
STATUTORY CAP TO WHAT IT WOULD
HAVE BEEN IN 1974. IT WOULD BE
0.00066. THAT WOULD BE THE
SURCHARGE RATE. UM AND ACTUAL
FEE. WE CAN GET BACK TO YOU ON
LIKE THE ACTUAL FEE FOR THAT.
YEAH. IF I UNDERSTAND THE
QUESTION, UM IT'S YOU KNOW, IS
THE QUESTION. WHAT WOULD THE
SURCHARGE NEED TO BE AT THIS
POINT IN TIME TO COVER THE
ANTICIPATED EXPENDITURES OUT OF
IP? AND HOW DOES THAT RELATE TO
THE CURRENT SURCHARGE AT THIS
POINT IN TIME, NÓ IF YOU JUST
WOULD HAVE, UH MATCHED IT WITH
THE RATE OF INFLATION. UH, THAT
IS UM, THAT IS PART OF THE
PROPOSAL. UM THE PROPOSAL IS TO
INCREASE THE SURCHARGE CAP UP TO
WHAT IT WOULD HAVE BEEN HAD THE
INITIAL SURCHARGE CAP OR
SURCHARGE. UM, THEN INDEXED TO
INFLATION. UH, FROM FROM THE GET
GO IN 1974. IT'S $0.00066 PER
PER KILOWATT HOUR, RIGHT, OK?
AND SO WE'RE NOT. WE'RE NOT
INCREASING THE REVENUE STREAM
FASTER THAN THE RATE OF
INFLATION. UH, THAT HAS BEEN
EXPERIENCED BY PEOPLE IN
CALIFORNIA AT THIS POINT THAT'S
ABSOLUTELY CORRECT. YEAH, THE
OVERALL INCREASE IN RETAIL SALES
EXPECTED OVER THE NEXT DECADE
AND A HALF OR SO IS ABOUT 1.6%
THE INCREASES AT THE END OF THAT
, UM DUE TO, UH FORECASTED
INCREASE IN ELECTRIFICATION,
HOWEVER, AT NÓ POINT IN TIME, IS
IT REASONABLE TO EXPECT THAT
INCREASE IN REVENUE TO EVER
SURPASS INFLATION? THANK YOU
VERY MUCH. ANY OTHER QUESTIONS
OR COMMENTS? RIGHT? OK GOOD. ALL
RIGHTY. UM, THANK YOU. WE WILL,
UM MOVE ON TO, UH, ISSUE NUMBER
THREE BROADBAND.
WE HAD THE BENEFITS OF A NICE
OVERSIGHT COMMITTEE ALREADY ON
BROADBAND. UH, SO THAT WAS
HELPFUL. AND WHENEVER YOU'RE
READY, WHOEVER IS GOING TO LEAD
OFF FOR THE ADMINISTRATION. YOU
WANNA. HELLO HELLO? I DIDN'T YOU
READ IT EARLIER. YEAH. NÓ NÓ I
CAN I CAN DO ABSOLUTELY. DAVID
EVANS. DEPARTMENT OF FINANCE. UM
FOR A BROADBAND. UH, SORRY. WE
GO. FOR BARBAN, UM FOR THE BAR
BAND LO LO LOAN LOSS RESERVE
PROGRAM. UM, THEY WOULD SAY $250
MILLION REDUCTION, UM TO THE
PROGRAM. SO UM, LAST YEAR, THE
BUDGET, UM, APPROPRIATION FOR
THE PROGRAM. THE PLAN WAS $750
MILLION FOR THAT PROGRAM. UM THE
GOVERNOR'S BUDGET INCLUDES A 250
MILLION, UM, REDUCTION, LEAVING
500 MILLION FOR THE PROGRAM AND
SO CURRENTLY APPROPRIATED RIGHT
NOW FOR THIS PROGRAM IS 100 AND
75 MILLION. AND THAT'S LIKE
MONEY THAT WAS ACTUALLY
APPROPRIATED. THE PLAN IS, UM
LEAVING 500 MILLION FOR THE FOR
THE PLAN. AND THEN, UM FOR THE
BROADBAND LOAN LOSS. AND FOR THE
BROADBAND LAST MILE
INFRASTRUCTURE PROGRAM. UM THE
PROPOSAL IS 100 MILLION DELAY
FROM 2425 TO, UM TO 2627 LEAVING
AND THE ADMINISTRATION'S
PROPOSAL, UM IS TO STILL HAVE
THE 2 BILLION FOR THE LAST MILE.
UM, INFRASTRUCTURE PROGRAM. UM,
IT'S JUST DELAYING 100 MILLION.
UM, AND THE BUDGET YEAR 2425.
LEAVING HOW MUCH AGAIN? UM SO
CURRENTLY RIGHT NOW THERE'S 1.45
BILLION THAT'S BEEN APPROPRIATED
FOR THE PROGRAM. UM, AND THAT'S
THROUGH APPROPRIATIONS OF SINCE
LAST YEAR. UM THIS YEAR THE PLAN
FOR THE APPROPRIATION UM, IN THE
BUDGET YEARS, IT'S 100 AND 50
MILLION. SO IT'S JUST ORIGINALLY
, UM, LAST YEAR BUDGET AGREEMENT
WAS FOR IT TO BE 202 50 FOR
BUDGET YEAR AND SO THE PROPOSAL
IS JUST TO DELAY 100 MILLION TO
2627 IS STILL, UM APPROPRIATE
150 MILLION THIS YEAR. ALL
RIGHT. L A Ó. GOOD MORNING,
BRIAN METZGER. L A Ó, UM, ON
THE, UH, BUDGET SOLUTIONS. WE
FIND THAT THE PROPOSED DELAY OF
100 MILLION IN GENERAL FUND FOR
LAST MILE PROJECT FUNDING IS
UNSUSTAINABLE. UH IN 2026 27
UNDER BOTH OUR OFFICES AND THE
ADMINISTRATION'S CURRENT REVENUE
AND EXPENDITURE PROJECTIONS. UM
AND SO, THEREFORE, BASED ON
THESE PROJECTIONS, THIS DELAY
COULD BE VIEWED REASONABLY AS AN
ACTUAL REDUCTION IN FUNDING. UH,
WE ALSO FIND THAT THE PROPOSED
REDUCTION OF $250 MILLION TO THE
LOAN RESERVE FUND IS A
REASONABLE START. UM, HOWEVER,
GIVEN THE SERIOUS BUDGET PROBLEM
FACING THE STATE, UH, WE
RECOMMEND THE LEGISLATURE
CONSIDER OTHER GENERAL FUND
BUDGET SOLUTIONS USING SOME OF
THE REMAINING BROADBAND
INFRASTRUCTURE FUNDING THAT IS
AVAILABLE. UM THESE COULD
INCLUDE ADDITIONAL REDUCTIONS IN
LAST MILE PROJECT FUNDING. UH,
PARTICULARLY GIVEN THE
ANTICIPATED RECEIPT OF
ADDITIONAL FEDERAL FUNDS FROM
THE BROADBAND, UM, EQUITY ACCESS
AND DEPLOYMENT OR BEAT PROGRAM
IN 2425, AS WELL AS ADDITIONAL
REDUCTIONS TO THE LO MASS
RESERVE FUND. UM AND ON THE
CPC'S ONGOING IMPLEMENTATION OF
BROADBAND FOR ALL PROPOSAL, WE
FIND THAT SEVERAL OF THE
BROADBAND PROGRAMS AND PROJECTS
HAVE LONG OR ONGOING
IMPLEMENTATION PERIODS AND SO
WILL REQUIRE PERMANENT STAFF AND
THEREFORE WE RECOMMEND THE
LEGISLATURE APPROVE THAT
PROPOSAL AS BUDGETED HAPPY TO
ANSWER QUESTIONS. THANK YOU.
ANYTHING ELSE? UM WE'RE HERE TO
ANSWER YOUR QUESTIONS. CHAIR.
HAPPY TO BE HERE. THANK YOU.
THANK YOU. UM THE DEMAND FOR THE
LOAN LOSS RESERVE WERE WE'RE
CUTTING THOSE FUNDS. UM AND WE
HAVEN'T EXPECTED DEMAND AND
ABILITY TO ALSO FUND THE MIDDLE
MILE PROJECTS. UM AND SO, UM HOW
DO WE CUT THESE FUNDS AND STILL
INCREASE THE DEMAND FOR THE
MIDDLE MILE PROJECTS? OR MEET
THE EXPECTED DEMAND AND ABILITY
TO FUND THE MIDDLE MILE. SO I'LL
BEGIN WITH THAT QUESTION CHAIR.
THANK YOU AGAIN. RACHEL PETERSON
, EXECUTIVE DIRECTOR OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. I'M JOINED NOW BY
DIRECTOR ROB OSBORNE FROM OUR
COMMUNICATIONS DIVISION. UM SO,
UM I'LL START JUST BY. I KNOW
YOU WERE AT OUR OVERSIGHT
HEARING, UM, A COUPLE OF WEEKS
AGO. BUT IF I CAN JUST DESCRIBE
THE THREE PART STRATEGY THAT
LOAN LOSS RESERVE IS PART OF, UM
AFTER S¼ B 156 WAS PASSED. WE
BEGAN WITH THE 50 MILLION LOCAL
AGENCY TECHNICAL ASSISTANCE
GRANT PROGRAM. WE ISSUED 105
GRANTS TO, UM TRIBAL ENTITIES.
LOCAL GOVERNMENTS, NEW SPECIAL
DISTRICTS IN ORDER TO GIVE THEM
THE CHANCE TO AN ENGINEER LAST
MILE NETWORKS THAT, UM, HAS NOW,
UM, BUILT UP THE GROUNDWORK FOR
THOSE GRANTEES. WE KNOW THREE
QUARTERS OF THEM HAVE NOW
APPLIED TO THE FEDERAL FUNDING
ACCOUNT PROGRAM, THE MAJOR
GRANTMAKING PROGRAM. THE THIRD
PRONG IS LONE LOSS RESERVE, AND
THAT IS A CREDIT ENHANCEMENT
TOOL. AS I KNOW YOU'RE AWARE
THAT IS A TO SUPPORT THESE NEW
ENTRANTS INTO THE INTERNET
SERVICE. PROVISION MARKET AND BY
PROVIDING THEM A MEANS TO ENSURE
THAT THEY CAN, UM, FINANCE THE
LAST MILE NETWORKS THAT THEY'VE
NOW ENGINEERED, HAVE SUBMITTED
GRANTS FOR AND WOULD LIKE TO SEE
CREDIT ENHANCEMENT FOR, UM THERE
IS NÓ QUESTION THAT WITH A THE
ADMINISTRATION'S PROPOSED CUT.
UM WHICH WE'RE AWARE WE NEED TO
DO AND BECAUSE OF THE OVERALL
BUDGET PICTURE, UM WE DO KNOW
THAT FEWER ENTITIES WILL BE ABLE
TO SECURE THE CREDIT AND
ENHANCEMENT TOOL. UM, BUT
NEVERTHELESS, WE THINK THAT
THERE'S STILL A SUSTAINABLE
STRATEGY GOING ON BETWEEN THE
THREE APPROACHES THAT WE'VE BEEN
DEPLOYING. WHEN DO YOU
ANTICIPATE AWARDING THE GENERAL
FUND LAST MILE PROJECTS. UH, OUR
FIRST AWARDS WILL START TO GO
OUT IN JUNE. OK? GREAT MEMBER,
CONNOLLY. YEAH, JUST A COUPLE OF
QUICK QUESTIONS. UM SO THE
BACKGROUND ANALYSIS WE RECEIVED,
UM STATES THAT OUT OF A TWO
POINT THREE BILLION DOLLARS IN
GENERAL FLYNN DOLLARS THAT WAS
APPROPRIATE IN 2324. ACROSS THE
MIDDLE MILE NETWORK LAST MILE
PROJECT GRANTS AND LLRF ONLY $30
MILLION HAS BEEN EXPANDED. UH,
LEAVING 1.5 BILLION STATE
BROADBAND INFRASTRUCTURE. IS
THERE A REASON SO MUCH MONEY IS
STILL ON THE TABLE FOR THESE
PROJECTS. ARE THERE BARRIERS
PREVENTING FUNDS FROM GETTING
OUT THE DOOR? UH, TO THESE
PROJECTS. SO UM, OF THE THREE
THAT YOU SPOKE ABOUT ASSEMBLY
MEMBER I CAN SPEAK TO ONE OF
THOSE, THE LONE LOSS RESERVE
PROGRAM BECAUSE THAT IS THE FUND
IF I'M CORRECT, RIGHT, THAT WAS
APPROPRIATED IN LAST YEAR, UM,
IN THE BUDGET ACT. SO THE STATE
DOLLARS FOR LAST MILE NETWORKS
THAT ARE IN WHAT WE CALL THE
FEDERAL FUNDING ACCOUNT. THOSE
WERE APPROPRIATED A FEW YEARS
AGO. SO THOSE, UH, THOSE GRANTS
ARE, UM ON THEIR WAY. AND WE'VE
DISTRIBUTED ALREADY SOME, UH 100
AND FIVE LOCAL AGENCY TECHNO
TECHNICAL ASSISTANCE GRANTS. THE
LOAN LOSS RESERVE PROGRAM ONCE
IT WAS APPROVED LAST YEAR BY THE
LEGISLATURE TOOK SOME TIME
BETWEEN THE èC PU èC AND THE
IAN THE INFRASTRUCTURE BANK TO
DESIGN BECAUSE WE WANTED TO MAKE
IT AS USEFUL AS POSSIBLE TO
THESE NEW, PUBLICLY ORIENTED
PUBLIC, UH, ENTITIES THAT ARE
BECOMING INTERNET SERVICE
PROVIDERS. UM WE USED OUR FORMAL
PROCEEDING TO PROPOSE A SET OF
RULES FOR THE PROGRAM
STAKEHOLDERS COMMENTED. WE MADE
REVISION. AND THE COMMISSION
ADOPTED IT. THE UM WINDOW IS
OPENING OPENED YESTERDAY. TODAY
IS MARCH 13TH IT? IT OPENED
YESTERDAY. AND SO THE FIRST
ROUND OF APPLICATIONS ARE COMING
IN NOW. AND THEN QUICK. FOLLOW
UP. HOW WILL FEDERAL FUNDING FOR
BROADBAND BE UTILIZED? UM BY THE
CPUC, HOW MUCH CAN WE EXPECT?
AND WILL THESE FUNDS BE ABLE TO
MAKE UP FOR POTENTIAL CUTS? SO
UH, JUST TO CLARIFY. I THINK
YOU'RE ASKING ABOUT WHAT, UH, IS
LIKELY COMING THROUGH BEAD
BROADBAND EQUITY ACCESS AND
DEPLOYMENT. SO, UM I DO ALWAYS
LIKE TO NOTE THAT CALIFORNIA WAS
INITIALLY ALLOCATED 900 MILLION
IN THAT PROGRAM. OUR STAFF'S
ANALYSIS THAT WE SUBMITTED TO N
Tð I, A DEMONSTRATING THE EXTENT
OF THE NEED IN CALIFORNIA
DOUBLED THAT ALLOCATION TO THE
1.8 BILLION THAT WE ARE
EXPECTING TO BE ALLOCATED. WE
HAVE NOT BEEN ALLOCATED THOSE
FUNDS YET. UM WE'VE BEEN GOING
THROUGH THE STEPS THAT THE
FEDERAL RULES REQUIRE, WHICH WAS
TO SUBMIT A FIVE YEAR PLAN, A
VOLUME ONE AND A VOLUME TWO AND
THOSE VOLUMES ONE AND TWO ARE
UNDER REVIEW BY THE NATIONAL
TELEPHONE INFORMATION
ADMINISTRATION, AND Tð I, A IT'S
UM AND SO UP. IT IS ONLY AFTER
THEIR REVIEW AND APPROVAL THAT
WE, CALIFORNIA WILL ACTUALLY
RECEIVE THAT ALLOCATION. WE
DON'T KNOW THE TIMING. WE'RE
VERY MUCH HOPEFUL IT'S GOING TO
BE IN THE NEXT FEW MONTHS. THE
THING I'LL NOTE, THOUGH, TO YOUR
QUESTION IS, UM, A CUT TO S¼ B
156 FUNDS TO THE STATE FUNDS IS
A CUT. IT WOULD HAVE A
PROGRAMMATIC IMPACT ON THE LAST
MILE NETWORKS THAT GRANT
APPLICANTS HAVE SUBMITTED
APPLICATIONS FOR RIGHT NOW. UM
WE THERE IS A FOOTNOTE AND I
KNOW THAT WE RESPECTFULLY
RESPECTFULLY DISAGREE WITH OUR
COLLEAGUES AT L A Ó ON THIS.
THERE IS A FOOTNOTE IN THE
NOTICE OF FEDERAL FUNDING
OPPORTUNITY THAT SAYS THAT BEAT
FUNDS SHALL NOT SUPPLANT SHALL
SUPPLEMENT AND WE TAKE THAT TO
MEAN THAT, UM WE CANNOT ASSUME
THAT THE FEDERAL GOVERNMENT
WOULD ALLOW BEAD FUNDS TO MAKE
UP FOR ANY CUT TO THE SB 156
PROGRAM. THAT'S WHY I FOCUS ON,
UM UH, ENSURING THAT SB 156
STAYS INTACT. UM EVEN WITH THE
BUDGET, THE PROPOSED DELAY THAT
THE ADMINISTRATION HAS SET OUT
WE THINK THAT THAT WON'T HAVE
ANY PROGRAMMATIC IMPACTS. THAT'S
WHAT'S MOST VALUABLE IN MY MIND
TO WHAT THE LEGISLATURE'S
ORIGINAL INTENT WAS. IF I DID
YOU HAVE A COMMENT. I JUST
WANTED TO RESPOND TO THE COMMENT
ABOUT THE SUPPLANT LANGUAGE
THAT'S IN OR THE NON SUPPLANT
LANGUAGE. THAT'S A PART OF THE
BEAT PROGRAM. UM THE NOTICE OF
FUNDING OPPORTUNITY FOR THE BEAD
PROGRAM DOES INCLUDE NON
SUPPLANT LANGUAGE THAT SAYS THAT
AS YOU MENTIONED THAT THE
FUNDING SHALL SUPPLEMENT, NOT
SUPPLANT, UM FUNDING THAT'S
ALREADY BEEN IDENTIFIED FOR
BROADBAND INFRASTRUCTURE FUNDING
. UM, WERE NOT CHALLENGING THE
IDEA THAT PREVIOUS OR CURRENT
APPROPRIATIONS WOULD SUBJECT TO
THAT LANGUAGE. BUT WE ARE SAYING
THAT PERSPECTIVE APPROPRIATIONS
THOSE THAT HAVE NOT BEEN
APPROPRIATED YET, OR THAT ARE
PLANNED FOR APPROPRIATION COULD
POTENTIALLY BE REDUCED, UM IN
LIGHT OF THE ADDITIONAL FEDERAL
FUNDING, SO JUST TO MAKE THAT
CLEAR. UM IF I COULD GO BACK TO,
UH, THE èC PU. YOU HAD
MENTIONED THAT THEY ARE GOING TO
BE MAKING AWARDS IN JUNE. UM AND
THAT'S WHAT THE FEDERAL FUNDS
CORRECT. WHAT ABOUT THE GENERAL
FUNDS? WHEN WILL THE GENERAL
FUND AWARDS BE MADE BY THE èC
PU? SO UM, I'LL PROBABLY TURN TO
DIRECTOR OSBORNE FOR SOME
ASSISTANCE WITH THIS ONE. AS YOU
KNOW, WE RECEIVED 484
APPLICATIONS FOR, UH, FAR MORE
THAN WHAT THE F FA FUND HAS IN
IT. UM AND WE RIGHT NOW WE'VE
WE'RE COMPLETING THE OBJECTION
AND THE REBUTTAL PROCESS. THAT
WAS, UM A REQUIREMENT, UH, SET
OUT FOR THIS PROGRAM. UM AS WE
COME TO THE END OF THAT PROCESS
AND FIGURE OUT WHICH
APPLICATIONS WE CAN BEGIN TO
FUND WILL USE THE FEDERAL
DOLLARS FIRST BECAUSE THEY HAVE
THE FASTEST TIMELINE ASSOCIATED
WITH THEM. UM ANSWERING, UM, LET
ME TURN TO DIRECTOR OSBORNE ON
POTENTIAL. UH, DRAW DOWN AT
INCUMBRANCE ISSUANCE OF GRANTS
FOR THE STATE DOLLARS YES, UH
ROBERT OSBORNE, DIRECTOR OF THE
COMMUNICATIONS DIVISION AT THE
PUBLIC UTILITIES COMMISSION, AND
AS EXECUTIVE DIRECTOR, PETERSON
SAID, UM, WE ARE GOING TO
PRIORITIZE, UM, EXPANDING THE
CAPITAL PROJECTS FUNDS, WHICH IS
ABOUT 550 MILLION FIRST, BECAUSE
THAT HAS A DEADLINE, UH FOR A
LIQUIDATION AT THE END OF 2026.
THE REMAINDER OF THE MONEY IS
THROUGH GENERAL FUND. IT DOESN'T
HAVE THE SAME RESTRICTIONS.
THANK YOU VERY MUCH. UM AND THEN
, UH, JUST I KNOW YOU. YOU WERE
DISCUSSING THE BEAD PROGRAM AND
STUFF, BUT, UH, DO WE ANTICIPATE
THAT THERE WILL BE ANOTHER
FUNDING REQUEST FOR THAT PROGRAM
, OR, UM, DOES THE èC PU èC
PLAN TO UTILIZE THE REQUESTED
STAFF TO ADMINISTER THE FEDERAL
BEAD PROGRAM? UM OR YOU'RE GONNA
HAVE A SEPARATE FUNDING REQUEST.
OH, AS FAR AS A STAFFING
PROPOSAL. YES UM YES, WE DO
ANTICIPATE SUBMITTING A STAFFING
PROPOSAL TO THIS BODY. YES.
GREAT. THANK YOU VERY MUCH. I
DON'T THINK ANYTHING ELSE. WE'RE
GONNA GO ON TO ISSUE FOUR. THANK
YOU VERY MUCH, EVERYBODY. WE'RE
CLOSE TO THE END HERE. SO THIS
IS STATE OPERATIONS AND LOCAL
ASSISTANCE, THE FALL ESTIMATE.
THIS IS OH, I FORGOT THAT IT WAS
A SEPARATE ISSUE. DAVID, DO YOU
HAVE AN INTERN. LIKE SO IF WE GO
RELATIVELY QUICK ON THE
PRESENTATION, WE'D APPRECIATE
IT. DAVID EMMONS. DEPARTMENT OF
FINANCE. UM FOR THE 2425
NOVEMBER ESTIMATE FOR THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. UNIVERSAL LIFELINE
TELEPHONE SERVICES TRUST
ADMINISTRATIVE COMMITTEE FUND.
ALSO KNOWN AS THE CALIFORNIA
LIFELINE PROGRAM. WHERE WE ARE
ESTIMATING THAT THE EXPENDITURES
FOR 2425 THEY WILL DECREASE UM
APPROXIMATELY ABOUT 17.6% IN
COMPARISON TO THE 2020 THREE
BUDGET ACT, AND SO THE TOTAL
AMOUNT UM WILL BE 3 345,961,000.
AND, UM, OF THIS AMOUNT. UM 318
MILLION APPROXIMATELY WILL BE
FOR LOCAL ASSISTANCE AND 27.8
MILLION WILL APPROXIMATELY WILL
BE FOR THE STATE OPERATIONS. UH
WE DON'T HAVE, UH, CONCERNS OR
COMMENTS ABOUT THIS PROPOSAL.
ANYTHING ELSE? UH, HERE TO
ANSWER YOUR QUESTIONS CHAIR. ARE
YOU CONSIDERING HOW BEST TO
LEVERAGE THE LIFELINE PROGRAM?
UH IN LIGHT OF THE AFFORDABLE,
UH, CONNECT CONNECTIVITY PROGRAM
FOR BROADBAND EXPIRING AND THAT
HAD A LOT HIGHER PARTICIPATION.
YEAH. UH SO, UM, FIRST OFF, I'LL
I'D LIKE TO, SAY RACHEL PETERSON
, EXECUTIVE DIRECTOR OF THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION, UM WE, UM HOPE THAT
IT WON'T EXPIRE IN THE FIRST
INSTANCE IT IS STILL A LIVE
ISSUE IN WASHINGTON. Dð èC,
HOWEVER, IT DOESN'T LOOK GOOD. I
WILL ACKNOWLEDGE THAT, UM, OUR
PRESIDENT ALICE REYNOLDS AND THE
DIRECTOR OF THE CALIFORNIA
DEPARTMENT OF TECHNOLOGY, LEANNA
BAILEY. CRIMMINS WROTE A PUBLIC
LETTER A MONTH AGO OR SO TO THE
FCC URGING THAT THEY DO
EVERYTHING THEY CAN TO ENSURE
THAT A èC P STAYS FULLY FUNDED.
UM IT IS A AN ESSENTIAL, UH,
SUBSIDY FOR MILLIONS OF
CALIFORNIANS. WE KNOW THAT IT IS
, UM, DIFFERENT IN NATURE FROM
LIFELINE. IT IS A BROADBAND. UH
A èC P IS A BROADBAND DIRECTED
PROGRAM, WHILE LIFELINE IS
GROUNDED IN THE MORE ACT AND WAS
ALWAYS INTENDED TO BE A VOICE
FOCUSED PROGRAM. HOWEVER THE
GOOD NEWS IS IN THINKING ABOUT
THE FUTURE AND HOW TO CONTINUE
HELPING CALIFORNIANS. UM OUR
COMMUNICATIONS DIVISION HAS
ACTUALLY RUN A PILOT COMBINING A
èC P AND LIFELINE AND LIKE TO
ASK DIRECTOR OSBORNE TO SPEAK
ABOUT THAT PILOT. THANK YOU.
ROBERT OSBORNE, DIRECTOR OF THE
COMMUNICATIONS DIVISION AT THE
èC. P èC. SO THE A èC P
PILOT, UH, BEGAN IN JUNE LAST
YEAR, AND THEY'RE CURRENTLY
THREE PROVIDERS PROVIDING
SERVICE TO ABOUT 90,000
PARTICIPANTS. UM SO THAT'S
SOMETHING THAT WE'RE WE HAVE
GOING TODAY AND IS, EXECUTIVE
DIRECTOR PETERSON POINTED OUT A
èC P AND LIFELINE ARE NOT, UM,
MUTUALLY EXCLUSIVE, BUT THEY'RE
ALSO NOT OVERLAPPING, SO I
WOULDN'T COMPARE THE SUBSCRIBER
NUMBERS BETWEEN THOSE TWO
PROGRAMS. UM, YOU HAVE SOME
CASES WHERE FIND SUBSCRIBERS
ALSO TAKE ADVANTAGE OF A èC P
SEPARATELY AND NOT THROUGH THE
PILOT. OK? FAMILY MEMBER,
CONNOLLY ANYTHING ON THIS. THANK
YOU VERY MUCH. WE APPRECIATE IT.
WE'RE GOING TO MOVE THIS HEARING
ON NOW. ANY QUESTIONS ON THE NON
PRESENTS ITEMS? OK WE HAVE NONE.
SO WE'LL GO TO PUBLIC COMMENT
NOW. UH, WE'LL START PUBLIC
COMMENT, UH, ON THE DEPARTMENTS
IN THE AGENDA, EVERYBODY WILL
HAVE ONE MINUTE TO SPEAK. UH, MR
CHAIRMAN ORIO GONZALEZ ON BEHALF
OF THE CALIFORNIA ALLIANCE FOR
DIGITAL EQUITY AND NEXTGEN,
CALIFORNIA ON ISSUE THREE. UH,
WE WANNA URGE THE COMMITTEE TO
REJECT THE PROPOSED REDUCTIONS
TO THE F FA ACCOUNT. UM, WE ALSO
WANT TO BE EMPHATIC THAT EVEN IF
THE STATE RECEIVES ITS FULL
ALLOCATION UNDER BEAD, IT WON'T
BE ABLE TO USE THOSE FUNDS THE
SAME WAY THAT I CAN USE THE
FUNDS IN THE F FA ACCOUNT
BECAUSE THE FUNDS IN THEIR BED
ARE INCREDIBLY RESTRICTIVE, WITH
OVER 500 APPLICATIONS AND OVER
FOUR AND A $4.6 BILLION IN IN IN
REQUESTS. THE NEED FOR THESE
DOLLARS IS UNQUESTIONABLE AND
MAINTAINING THIS FUNDING, ALONG
WITH THE PROPOSED $1.5 BILLION
AT THE GOVERNOR'S PROPOSING TO
FINISH THE MIDDLE MILES HOW THIS
STATE IS GOING TO BRIDGE THE
DIGITAL DIVIDE. UM NOW IS NOT
THE TIME TO. UM, UH, GO
BACKWARDS. THANK YOU. THANK YOU.
MR CHAIR. SO MEMBER, EDSON PEREZ
WITH ADVANCED ENERGY UNITED I. I
WANTED TO FIRST THANK YOU FOR
THE GREAT RELIABILITY
CONVERSATION EARLIER TODAY, I'M
HERE TO SUPPORT THE DIVA, THE Dð
, S¼, G S¼ AND THE RESIDENTIAL,
SOLAR AND STORAGE PROGRAMS. SO I
JUST WANNA NOTE THAT, UH, AS THE
ENERGY COMMISSION NOTED WE'RE,
UH THOSE PROGRAMS WERE JUST
GETTING OFF THE GROUND. YOU KNOW
, THE Dð SGS PROGRAM IS JUST
SCALING UP THE DIVA PROGRAM IS
GONNA DOLE OUT FUNDS IN Q TWO OF
THIS YEAR. THIS PROGRAMS ARE
REALLY KEY TEST CASES OF HOW
CLEAN DISTRIBUTED RESOURCES. CAN
MAKE THE GRID MORE RELIABLE.
CURRENTLY WE RELY MAINLY ON
DIRTY ENERGY TO GET OVER THIS
EMERGENCY PERIODS, SO WE REALLY
NEED TO PLAN TO MOVE AWAY FROM
THAT FOR THE FUTURE. AS YOU
KNOW, EXTREME HEAT. SUMMERS ARE
JUST GONNA KEEP GETTING WORSE.
UH, THIS SUMMER, WE MAY ACTUALLY
HAVE A LÀ NINA EVENT, WHICH MAY
MAKE THE CONDITIONS WORSE AND
WITH A STRAIN THE GRID FURTHER.
SO UH, WE'RE ALSO LOOKING
FORWARD TO THAT RELIABILITY
ASSESSMENT IN APRIL TO LOOK AT
HOW THAT'S GONNA GO OUT. BUT,
UH, THE FUTURE OF THE GRID NEEDS
TO BE CLEAN AND DISTRIBUTED. IF
WE'RE GONNA MEET SB 100 GOALS
RIGHT. AND IF AND IF WE'RE GONNA
CONTINUE LEADING THE WORLD,
THANK YOU. SO SUPPORT FOR THOSE
PROGRAMS. THANK YOU. MR CHAIR
JOHN GASMAN ON BEHALF OF THE
ALLIANCE FOR NUCLEAR
RESPONSIBILITY, THE COUPLE OF
POINTS ON THE DIABLO CANYON
GENERAL FUND LOAN FIRST.
NUMBERED. PARAGRAPH SEVEN A.
FROM LAST JULY'S AMENDMENT TO
THE Dð WRPG LOAN AGREEMENT
IDENTIFIES AN AMOUNT OF $800
MILLION AS POTENTIALLY SUBJECT
TO OFFSET FROM THE FEDERAL GRANT
. I WOULD RECOMMEND THAT YOU
FAMILIARIZE YOURSELF, UH, WITH
THAT. NUMBER UH AND ALSO
CAREFULLY REVIEW ANY RESPONSE TO
LAST WEEK'S LETTER FROM THE
JOINT BUDGET COMMITTEE TO THE
DEPARTMENT OF FINANCE TO
DETERMINE IF THERE ARE CURRENT
YEAR. UH FUNDS THAT HAVE NOT YET
BEEN DISPERSED. THAT COULD BE
ADDED TO THAT 800 MILLION.
SECOND AND MORE. GENERALLY IT IS
INCONCEIVABLE TO ME AS A
TAXPAYER THAT Dð WR HAS NOT
THOROUGHLY FAMILIARIZED ITSELF
WITH THE TERMS OF THE DOE GRANT
AGREEMENT. THEY CERTAINLY HAVE
THE LEGAL RIGHT TO THAT DOCUMENT
. THANK YOU VERY MUCH. IT IS
INCONSISTENT WITH RESPONSIBLE
STEWARDSHIP OF THE GENERAL FUND.
NOT TO BE MORE FAMILIAR WITH IT.
THANK YOU. A GOOD AFTERNOON.
DAVID WEISEMAN EXECUTIVE
DIRECTOR ALLIANCE FOR NUCLEAR
RESPONSIBILITY. I'D LIKE TO
THANK PARTICULARLY MEMBER
CONNOLLY FOR HIS, UM NOTING THAT
THE TAXPAYERS NEED TO BE MADE
WHOLE FOR THAT MISSING THREE
$100 MILLION BETWEEN THE $1.4
BILLION LOAN AND THE $1.4
BILLION GRANT. HIS QUESTIONS
TAKE ON GREATER URGENCY BECAUSE
THAT FEDERAL PROGRAM WHICH
GRANTED ITS ONE AND ONLY $1
BILLION TO PGE HAS NOW CLOSED
OUT ITS SECOND YEAR WITHOUT
GRANTING A SINGLE PENNY. AND
THERE IS NÓ SURETY THAT THAT
PROGRAM WILL BE CONTINUED IN ITS
CURRENT FORM AT ALL AT THE
FEDERAL LEVEL AS A POSSIBLE
SOURCE OF REVENUE. LIKEWISE,
HE'S CONCERNED. THAT UH, Dð WR
RESPONSE THAT WELL, THERE'LL BE
A PROFIT OF 300 MILLION IN THE
FINAL YEAR OF OPERATION WHICH
SEEM HIGHLY SPECULATIVE AT THIS
POINT UPON WHICH TO DEPEND ON
REPAYMENT, CONSIDERING THAT IN
THE GRANT APPLICATION FOR THE
BILLION DOLLARS, PGE ADMITTED
HAVING RACKED UP OVER $2 BILLION
AND ABOVE MARKET COSTS FOR
DIABLO CANYON IN THE PRECEDING
FIVE YEARS, WHICH DOESN'T BODE
WELL AS A PROFIT CENTER IN THE
FUTURE. SO THANK YOU FOR YOUR
CONTINUED INQUIRY. THANK YOU
VERY MUCH. UH, GOOD AFTERNOON.
KENDRA HARRIS, THE CLIMATE
CENTER. I'M COMMENTING ON
EQUITABLE BUILDING
DECARBONIZATION. UM THE EB Dð
PROGRAM IS A VITAL PART OF
CALIFORNIA'S CLEAN AIR SAFETY
NET AND ONE OF THE BEST TOOLS WE
HAVE TO PROVIDE RELIEF TO
HOUSEHOLDS FACING INDOOR AIR
POLLUTION, SKYROCKETING ENERGY
BILLS, EXTREME HEAT AND
UNHEALTHY LIVING ENVIRONMENTS BY
FUNDING WHOLE RETROFITS TO
INCREASE ENERGY EFFICIENCY AND
PROVIDE THE LATEST AND HIGH
EFFICIENCY ELECTRIC HEATING AND
COOLING, CUTTING EB Dð FUNDING
BY 283 MILLION. 30% REDUCTION
WOULD MEAN CONTINUED EXPOSURE OR
HARMFUL INDOOR AIR POLLUTANTS
THAT PUT OUR MOST VULNERABLE
RESIDENTS, ESPECIALLY CHILDREN
AT RISK. UNFORTUNATELY WE CAN'T
JUST RELY ON THE INFLATION
REDUCTION ACT TO COVER THESE
NEEDS. FEDERAL FUNDING IS
INSUFFICIENT TO MEET
CALIFORNIA'S HOME RETROFIT NEEDS
. FOR EXAMPLE, THE FEDERAL HOME
REBATES ARE ESTIMATED TO REACH
ONLY 1% OF LOW INCOME HOUSES IN
CALIFORNIA. SO I JUST URGE YOU
TO CONSIDER THAT. THANK YOU.
THANK YOU VERY MUCH. GOOD
AFTERNOON CHAIR AND MEMBER
REBECCA MARCUS, REPRESENTING
AMERICAN FARMLAND TRUST AND THE
CALIFORNIA CLIMATE AND
AGRICULTURE NETWORK. UM I'M
SPEAKING ON ISSUE ONE. TODAY WE
ASK THAT YOU RESTORE PARTIAL
FUNDING TO THE èC C'S CLIMATE
INNOVATION PROGRAM. IT IS
CURRENTLY THE ONLY PROGRAM IN
CALIFORNIA THAT HAS THE
POTENTIAL TO FUND AGRO PROGRAMS.
FARMERS AND RANCHERS NEED THIS
PROGRAM TO HELP OUR STATE COMBAT
CLIMATE CHANGE AND MINIMIZE
FUTURE IMPACTS FROM DROUGHTS AND
EXTREME HEAT. IF DONE
RESPONSIBLY, IT IS POSSIBLE TO
GROW RENEWABLE ENERGY WHILE FARM
VIABILITY, REDUCING IRRIGATION
DEMAND, PROVIDING NECESSARY
SHADE AND PROTECTING HEALTHY
SOIL. THERE ARE FARMERS,
RESEARCHERS AND DEVELOPERS READY
WITH PROJECTS TO GO ON THE
GROUND. ONCE FUNDING IS
AVAILABLE. THANK YOU. THANK YOU.
MICHAEL JARED, ON BEHALF OF THE
COMMUNITY ALLIANCE WITH FAMILY
FARMERS. I'D LIKE TO ECHO THE
PRIOR COMMENTS AND, UH ON ISSUE
ONE URGED THE PARTIAL
RESTORATION OF THE CLIMATE
INNOVATION PROGRAM AT THE èC
èC, UM, CALF WOULD VERY MUCH
LIKE A PILOTING OF AGRO VOLTAIC
PROJECTS IN CALIFORNIA. WE
BELIEVE IT OFFERS A REALLY WIN
WIN OF CREATION OF CLEAN ENERGY
PROTECTION OF SMALL FAMILY FARMS
AND PROTECTION OF CROPS, WORKERS
AND LIVESTOCK FROM THE IMPACTS
OF EXTREME HEAT. THANK YOU.
THANK YOU. AMARA AGER ON BEHALF
OF THE BUILDING DECARBONIZATION
COALITION. I JUST WANT TO ECHO
COMMENTS MADE ABOUT THE C'S
EQUITABLE BUILDING,
DECARBONIZATION FUNDING AND
MAINTAINING THAT IN THIS YEAR'S
BUDGET. UM WE ALSO SUPPORT ANY
FINAL CLIMATE BOND PACKAGE THAT
INCLUDES AT LEAST $400 MILLION
IN FUNDING FOR THIS IMPORTANT
PROGRAM AS WE MOVE FORWARD,
THANK YOU SO MUCH. THANK YOU.
GOOD MORNING CHAIR, HONORABLE
MEMBERS AND STATE PARTNERS. MY
NAME IS PATRICK MESSICK. AND I'M
HERE ON BEHALF OF THE URBAN,
RURAL AND TRIBAL COMMUNITIES
THAT HAVE BEEN BYPASSED FOR
GENERATIONAL INFRASTRUCTURE
INVESTMENTS BY THIS BODY AND BIG
TELCOM FOR GENERATIONS,
SAFEGUARDING THE GOVERNOR'S $1.5
BILLION PROPOSAL TO COMPLETE THE
MMB IS THE ONLY WAY THIS ONCE IN
A GENERATION INFRASTRUCTURE
INVESTMENT REACHES MANY OF
CALIFORNIA'S HIGHEST POVERTY,
DISASTER VULNERABLE AND MOST
POORLY CONNECTED COMMUNITIES.
THIS INCLUDES EL TORO, SOUTH
COSTA MESA, NORTH FILLMORE FARM
WORKER COMMUNITIES IN WEST MIN
AND BYRON MOBILE HOME. PARKS IN
RECA AND FIRE VULNERABLE
COMMUNITIES ALONG HIGHWAY 178
FULLY CONSTRUCTED THE SELF
SUSTAINING 10,000 MIDDLE MILE
NETWORK WILL FOSTER COMPETITION,
LOWER PRICES UP TO 90% AND
ENABLE ECONOMIC GROWTH FOR
DECADES TO COME. I'M SUPPLANTING
AFE WITH BEAD. IT'S
IRRESPONSIBLE TO TALK ABOUT
BROADBAND INFRASTRUCTURE FUNDING
ACCOUNTS AS INTERCHANGEABLE BEAD
HAS THE MOST RESTRICTIVE
ELIGIBILITY REQUIREMENTS OF ANY
INFRASTRUCTURE FUNDING AND
EFFECTIVELY DISQUALIFIES IN THE
AREA WHERE INCUMBENT MONOPOLIES
OVERSTATE SERVICE TO PROTECT
THEIR MARKET DOMINANCE. THE
STATE'S F FA LAST MILE ACCOUNT
IS THE ONLY FUND THAT EQUITABLY
ALLOCATES FUNDING TO EVERY
COUNTY THROUGHOUT THE STATE
BASED ON THEIR PROPORTION OF
UNSERVED, INCLUDING THOSE
DECIMATED BY THE PANDEMIC, WHICH
IS THE DIRECTIVE OF THESE
FEDERAL DOLLARS. THANK YOU VERY
MUCH. THANK YOU. CHAIR MEMBERS,
PB SEAT AND WITH LEADERSHIP
COUNCIL FOR JUSTICE AND
ACCOUNTABILITY. WE WORK WITH
PEOPLE IN THE SAN JOAQUIN VALLEY
AND THE EASTERN COACHELLA
VALLEY, FOLKS, UM, IMPACTED BY
EXTREME AND INTENSIFYING HEAT,
REALIGN OUR COMMENTS WITH
COMMENTERS BEFORE, UM, OPPOSING
CUTS TO THE EB Dð PROGRAM. I
JUST WANNA NOTE IN ADDITION TO
WHAT THEY SAID THE EB Dð PROGRAM
IS ONE OF FEW PROGRAMS THAT
MOVES US FORWARD TOWARDS CLIMATE
, RESILIENT ENERGY, RESILIENCE
AND ADDRESSING POVERTY AND
EXTREME HEALTH IMPACTS. IF WE
CUT MAKE CUTS TO THIS PROGRAM,
WE ARE LEAVING THE MOST
VULNERABLE CALIFORNIANS BEHIND
BOTH IN OUR DECARBONIZATION
GOALS AND IN L FIGHT
CLIMATE. THANKS SO MUCH, THANK
YOU VERY MUCH. MEMBERS DÂN CH ON
BEHALF OF THE PORT OF LONG BEACH
GREATLY APPRECIATE, UM, YOUR
RECOGNITION STAFF'S RECOGNITION
OF THE IMPORTANCE AND THE
CRITICALITY OF GETTING THE $45
MILLION IN PORT INFRASTRUCTURE
PLANNING MONIES OUT THE DOOR. A
S¼ A P ALSO RECOGNIZED THE GREAT
WORK HARD WORK OF THE èC E èC
STAFF AND GETTING THE PROGRAM
OFF THE GROUND. UNFORTUNATELY
UM, ACCORDING TO THE SCHEDULE
OUTLINED BY THE èC E JUST TODAY
, UM THERE IS SUBSTANTIAL RISK
THAT THE PORT OF LONG BEACH, UH,
WILL HAVE TO PAUSE OR TERMINATE
THE PLANNING AND PERMITTING
ACTIVITIES HAS TAKEN TO DATE AT
ITS OWN EXPENSE. UM TO, UH, GET
A STAGING MIRATION FACILITY OFF
THE GROUND. UM SIMPLY PUT, THE
PORT CANNOT CONTINUE TO EXPAND
ITS OWN LIMITED RESOURCES PAST
JUNE. WITHOUT SOME TANGIBLE
SIGNAL FROM THE STATE THAT IT
DESIRED TO CONTINUE TO PARTNER
WITH THE PORT IN MEETING ITS
OFFSHORE WIND GOALS, SO
APPRECIATE YOUR CONTINUED
SUPPORT. THANK YOU. GOOD
AFTERNOON, MR CHAIR. MEMBERS OF
THE COMMITTEE BRIAN WHITE ON
BEHALF OF OFFSHORE WAYNE,
CALIFORNIA WANT A 2ND 2ND THE
COMMENTS THAT MY COLLEAGUE FROM
THE PORT OF LONG BEACH MADE WE
ARE AT A CRITICAL STAGE RIGHT
NOW IN TERMS OF AND WE
APPRECIATE YOUR LEADERSHIP BY
THE WAY, AND CONTINUE TO EXPRESS
THE NEED FOR WHAT WE NEED TO DO
TO GET OFFSHORE WIND OFF THE
GROUND, BUT WE ARE A CRITICAL
STAGE RIGHT NOW. THERE ARE A
NUMBER OF THINGS THAT NEED TO
HAPPEN. YOU KNOW, WE APPRECIATE
YOUR LEADERSHIP LAST YEAR AND
GETTING THE PROCUREMENT BILL
PASSED THROUGH THE BUDGETARY,
UH, TRAILER BILL THAT WAS
CRITICAL, BUT WE ALSO NEED TO
MAKE SURE THAT WE HAVE THE
ACTUAL PORTS THAT WILL HELP
DEVELOP DEVELOP THESE PROJECTS
WITHOUT PORTS. PERMITTING
TRANSMISSION AND PROCUREMENT. WE
REALLY HAVE A HOUSE OF CARDS
SITUATION AND THEY ALL REALLY
ALL HAVE TO BE GOING TOGETHER SO
WE WOULD SUPPORT GETTING THAT
MONEY OUT THE DOOR QUICKER AND
ALSO SUPPORT THE NEED FOR LONG
TERM FUNDING, WHICH IS WHY WE
SUPPORT THE NEED FOR FUNDING
THROUGH A BOND. SO WE'RE
SUPPORTING SOME MEMBERS OF OURS
EFFORTS TO DO THAT THROUGH, UH,
A B 22 08 AND LOOK FORWARD TO
WORKING WITH THE LEGISLATURE ON
THIS. THANK YOU. THANK YOU.
THANK YOU, MISTER PRESIDENT
MEMBERS CRYSTAL STREET ON BEHALF
OF AMERICAN GLEE. CLEAN POWER
CALIFORNIA WE REPRESENT THE FIVE
LEASES THAT ALREADY HAVE, UM,
LEASES FOR OFFSHORE WIND. WE ARE
VERY MUCH IN PROCESS OF MAKING
SURE THAT WIND UM IS A
SIGNIFICANT AND RELIABLE
RESOURCE FOR CALIFORNIA'S CLEAN
ENERGY GOALS. THE LEAST HAVE
ALREADY INVESTED. NEARLY THREE
QUARTERS OF A BILLION DOLLARS
STARTED PRE SURVEY WORK AND
OTHER ITEMS TO PREPARE FOR
OFFSHORE WIND AND MUTATION,
WHICH MAKES IT A GROWING CONCERN
ABOUT ANY DELAYS IN THE STATE.
FOR FUNDING, INCLUDING PORT
INFRASTRUCTURE, CENTRAL
PROCUREMENT TRANSMISSIONS, ET
CETERA. THIS IS ALL TO SAY,
THANK YOU SO MUCH FOR TODAY'S
HEARING. WE REALLY APPRECIATE
YOUR COMMENTS, UNDERSTANDING
THAT THAT THIS IS A LONG LEAD
TIME, BUT WE DO NEED THESE
PROCESSES TO CONTINUE TO MOVE
EXPEDITIOUSLY AND WE ECHO THE
COMMENTS OF THE PREVIOUS MEMBERS
ABOUT THE PORTS AS WELL AND
MAKING SURE THAT FUNDING GETS
OUT THE DOOR. THANK YOU. THANK
YOU. HELLO. I'M ANDREW DAWSON
FROM THE CALIFORNIA HOUSING
PARTNERSHIP. WE ARE STATE
CREATED PRIVATE NONPROFIT
COMMITTED TO INCREASING SUPPLY
OF AFFORDABLE AND SUSTAINABLE
HOMES FOR LOW INCOME HOUSEHOLDS.
UH MY COMMENTS ARE ABOUT A
BUILDING DECARBONIZATION PROGRAM
THAT WERE MENTIONED EARLIER.
PRETTY MUCH THE SAME THING. IT'S
A REALLY IMPORTANT PROGRAM FOR
LOW INCOME HOUSEHOLDS IN
CALIFORNIA. THANK YOU. THANK
YOU. GOOD AFTERNOON. AMANDA
WELDER. I'M WITH CAL BROADBAND.
WE JUST WANTED TO NOTE THAT WE
AGREE WITH THE L A Ó S¼
RECOMMENDATIONS WITH REGARDS TO
THE BROADBAND PROGRAMS WITHIN
THE èC P èC. WE ALSO BELIEVE
THAT THE èC P èC SHOULD
PROVIDE DETAILED ESTIMATES OF
THE NUMBER OF UNSERVED
HOUSEHOLDS THAT WILL BE
CONNECTED WHEN THE ALMOST $4
BILLION IN PROGRAM FUNDING IS
EXHAUSTED. CALIFORNIA MUST BE
FOCUSED AND CLEAR IN ITS GOAL OF
SERVING THE UNSERVED, AND WE
HOPE THAT THE LEGISLATURE WILL
INCREASE THEIR OVERSIGHT OF
THESE PROGRAMS TO ENSURE THAT
THAT GOAL IS MET. THANK YOU.
THANK YOU. GOOD AFTERNOON CHAIR
AND MEMBERS TRISHA GINGER WITH
AGRICULTURAL COUNCIL OF
CALIFORNIA HERE IN SUPPORT OF
THE FOOD PRODUCTION INVESTMENT
PROGRAM, OTHERWISE KNOWN AS FP,
UH, SMALL, BUT MIGHTY PROGRAM IS
HELPING LOCAL FOOD PRODUCERS
IMPROVE THEIR ENERGY EFFICIENCY
AND REDUCE GREENHOUSE GAS
EMISSIONS. AS THEY PROCESS OUR
CALIFORNIA GROWN FOOD.
IMPORTANTLY THE, UH, THE PROGRAM
THE FUNDING IS GOING IN
PRIMARILY INTO DISADVANTAGE AND
LOW INCOME COMMUNITIES AND ABOUT
80% OF THE PROGRAM. FUNDING IS
GOING INTO THOSE COMMUNITIES.
UH, WE REALLY HOPE THAT, UM YOU
TAKE A DOUBLE LOOK AT THE
REVERSION THAT'S PROPOSED.
THERE'S A ALMOST $19 MILLION
VERSION OF CURRENT YEAR FUNDS
FOR THE PROGRAM. WE HOPE YOU
TAKE A DOUBLE LOOK AT THAT.
GIVEN A PIP IS RANKED IN THE TOP
10 OUT OF ALL THE CALIFORNIA
CLIMATE INVESTMENT PROGRAMS WHEN
IT COMES TO TOTAL G HÌ Dð
REDUCTION AND COST PER TON OF G
HÌ Dð, SO GIVEN THE
EFFECTIVENESS OF IT, THE FACT
THERE NÓ FEDERAL PROGRAM SIMILAR
TO THIS AND THAT IT IS GOING
OVER 80% OF FUNDS ARE GOING INTO
DAX AND LOW INCOME COMMUNITIES.
WE HOPE WE'LL TAKE A LOOK AT IT.
THANK YOU VERY MUCH. HELLO OH,
HELLO. MY NAME IS MARISSA ALETA
AND I'M WITH ECUADOR. UM, ATLAS
WIND. WE ARE, UM THE FURTHEST
NORTHWEST AT LEASE ON OFFSHORE
WIND, UM, OFF THE COAST OF MORA
BAY, UM AQUINO OR ATLAS WHEN
SUPPORTS THE 43 MILLION
ALLOCATION IMMEDIATELY TO THE
èC èC FOR CRITICAL FUNDING FOR
DESIGN STUDIES AND OTHER
IMMEDIATE NEEDS FOCUSED ON ST
STAGING AND INTEGRATION PORTS.
THIS IS NEEDED FOR INVESTMENT
AND ECONOMIC EXPANSION AT THESE
PORTS TO SUPPORT OFFSHORE WIND
AND OTHER CLEAN TECHNOLOGIES AS
PORTS DECARBONISE. THANK YOU
VERY MUCH. AND WITH THAT WE WILL
NOW ADJOURN THIS MEETING. WE
PRESIDENT.