GOOD AFTERNOON EVERYONE, AND
WELCOME. I AM PLEASED TO WELCOME
YOU ALL TO THIS HEARING OF THE
ASSEMBLY COMMITTEE ON UTILITIES
AND ENERGY. WE ARE HERE FOR AN
INFORMATIONAL HEARING TO DISCUSS
THE DEPLOYMENT OF FLOATING
OFFSHORE WIND ENERGY IN
CALIFORNIA. TODAY'S HEARING IS
INTENDED TO SERVE REALLY AS THE
FIRST OF MANY FUTURE
CONVERSATIONS THAT WE EXPECT TO
HAVE ON OFFSHORE WIND. BEFORE WE
BEGIN, I AM PLEASED TO WELCOME
THE PARTICIPATION OF A NUMBER OF
MY COLLEAGUES AND CO-CHAIRS
TODAY. WE WILL BE WELCOMING THE
PARTICIPATION OF OUR WATER,
PARKS AND WILDLIFE COMMITTEE
CHAIR, ASSEMBLY MEMBER, PAPPIN.
OUR SELECT COMMITTEE ON OFFSHORE
WIND ENERGY IN CALIFORNIA, CHAIR,
ASSEMBLY MEMBER, ADUS. AND I'LL
JUST SAY I THINK THAT THE
OVERLAP IN COMMITTEE
JURISDICTION REALLY SPEAKS TO
BOTH THE BENEFIT AND THE
CHALLENGES IN OFFSHORE WIND.
MANY ENTITIES, AS REPRESENTED ON
THIS PANEL TODAY, ARE IMPACTED
AND INVOLVED IN THE DEVELOPMENT
AND DEPLOYMENT OF OFFSHORE WIND
IN CALIFORNIA. I REALLY
APPRECIATE THE COLLABORATIVE AND
INTERDISCIPLINARY APPROACH TO
TODAY'S CONVERSATION, AND
WELCOME MY COLLEAGUES WHO'LL BE
JOINING US AS EVERYONE KNOWS,
IT'S AN INCREDIBLY BUSY TIME OF
THE YEAR, SO WE'LL BE HAVING
FOLKS COME IN AND OUT. BUT
REALLY LOOKING FORWARD TO
DIGGING INTO TODAY'S
CONVERSATION AND ALSO AS A POINT
OF PERSONAL PRIVILEGE, I DO WANT
TO TAKE A MOMENT TO ACKNOWLEDGE
DOCTOR KATHLEEN CHAN, A DOCTOR.
CHAN HAS BEEN A SCIENCE FELLOW
WITH THE ASSEMBLY'S UTILITY AND
ENERGY COMMITTEE. THIS YEAR, SHE
TOOK THE LEAD ON PREPARING FOR
TODAY'S HEARING AND HAS BEEN
JUST A REALLY CRITICAL PART OF
OUR TEAM THROUGHOUT THIS
SESSION. WE'VE BEEN SO GRATEFUL
TO HAVE YOU AS PART OF OUR TEAM
AND JUST REALLY EXCITED TO SEE
EVERYTHING THAT THAT UNFOLDS FOR
YOU IN YOUR FUTURE ENDEAVORS. SO
THANK YOU, KATHLEEN. SO BEFORE
WE JUMP INTO OUR PANELS, JUST
WANT TO WANT TO TOUCH ON I GUESS
SAID A LITTLE BIT OF CONTEXT FOR
THE CONVERSATIONS THAT WE ARE
GOING TO HAVE TODAY. AND IN
CALIFORNIA, WE ALL RECOGNIZE
THAT THE CLIMATE CRISIS IS HERE
NOW AND URGENT. HERE IN
CALIFORNIA, WE ARE REMINDED OF
THAT MORE OFTEN THAN WE WOULD
LIKE. WITH RAGING WILDFIRES,
SEVERE DROUGHT, 100 YEAR FLOODS,
IT CAN SOMETIMES FEEL LIKE WE'RE
WATCHING A DISASTER MOVIE UNFOLD
IN REAL TIME. AND IT'S BECAUSE
CALIFORNIANS RECOGNIZE THE
URGENCY OF THE CLIMATE CRISIS
THAT CALIFORNIA HAS BEEN A LONG
TIME GLOBAL LEADER ON
CONFRONTING THIS CRISIS. WE'VE
GOT INCREDIBLY AMBITIOUS AND
INCREDIBLY IMPORTANT CLIMATE
GOALS THAT WE ARE ALL LOOKING TO
ACHIEVE. AND AS EVERYONE IN THIS
ROOM KNOWS, WE'VE GOT A REALLY
MONUMENTAL TASK ON OUR HANDS TO,
IN FACT, DELIVER ON THOSE GOALS.
AND I FIRMLY BELIEVE THAT AS WE
WORK TO BUILD OUR CLEAN ENERGY
FUTURE, WE NEED TO TAKE AN ALL
OF THE ABOVE APPROACH AND WIND
ENERGY AND OFFSHORE WIND ENERGY
REALLY ARE CRITICAL PIECES OF
THAT PUZZLE, IN 2021, THE
LEGISLATURE PASSED AB 525, WHICH
REQUIRES THE CEC TO ESTABLISH
PLANNING GOALS FOR OFFSHORE WIND
AND TO OUTLINE A COMPREHENSIVE
STRATEGIC PLAN FOR CALIFORNIA TO
REACH THOSE GOALS. IN RESPONSE,
THE STATE HAS ADOPTED AMBITIOUS
PLANNING TARGETS, REQUIRING THE
STATE TO DEPLOY BETWEEN 2 TO 5GW
OF OFFSHORE WIND BY 2030 AND
25GW BY 2045. THAT'S A MASSIVE
UNDERTAKING AND WILL REQUIRE
REALLY THOUGHTFUL COOPERATION
BETWEEN A VAST SWATH OF FEDERAL,
STATE, LOCAL AND TRIBAL AGENCIES
AS WELL AS LOCAL TRADES. OUR
PRIVATE BUSINESSES AND
CALIFORNIA COMMUNITIES. THIS
HEARING REALLY IS INTENDED TO
LAY OUT THE BUILDING BLOCKS. THE
BUILDING BLOCKS FOR THAT WORK,
INCLUDING TRANSMISSION,
PERMITTING, PROCUREMENT, PORTS
AND COMMUNITY THAT WILL BE
ESSENTIAL TO THE SUCCESSFUL
DEPLOYMENT OF OFFSHORE WIND IN
CALIFORNIA. AND AS I SAID, I
REALLY SEE THIS AS THE START OF
AN ONGOING CONVERSATION. WITH
THAT, PLEASE TO, WELCOME ANY OF
MY COLLEAGUES WHO'D LIKE TO MAKE
OPENING COMMENTS. ASSEMBLYMEMBER
WOOD. THANK YOU, MADAM CHAIR. I
DON'T THINK I'M ON. AM I ON? I
THINK SO, YEAH. IS IT ON? NO,
IT'S NOT. YES YOU CAN. OKAY. ALL
RIGHT. I'LL JUST TALK THEN.
FIRST OF ALL, THANK YOU, MADAM
CHAIR, FOR CONVENING THIS
HEARING. AND I LOOK FORWARD TO
THE PARTICIPATION OF THE OTHER
CHAIRS HERE. THIS IS AN
IMPORTANT TOPIC FOR ME AND MY
DISTRICT, TWO OF THE CALL AREAS
ARE OFF THE HUMBOLDT COAST, AND
THERE IS POTENTIAL FOR
ADDITIONAL CALL AREAS AND GOING
FORWARD, IT'S INTERESTING TO
NOTE THAT WE ARE NOT THE
PIONEERS IN OFFSHORE WIND IN
CALIFORNIA, AND AS SUCH, WE HAVE
THE OPPORTUNITY TO LEARN FROM A
LOT OF WHAT'S WHAT'S HAPPENED IN
OTHER PARTS OF THE WORLD, AND
CERTAINLY ON THE EAST COAST AND
SO I'M ANXIOUS TO HEAR AND GET
SOME UPDATES ON WHERE WE ARE.
AND THERE HAVE BEEN A LOT OF
PIECES OF THE PUZZLE THAT HAVE
BEEN WORKING BEHIND THE SCENES
THAT I'VE BEEN WATCHING AND
PAYING ATTENTION TO. AND, AND I
WILL SAY, AS A MEMBER OF THE
LEGISLATURE, EVEN IN MY FINAL
YEAR HERE, I FEEL IT'S PART OF
MY RESPONSIBILITY TO CONTINUE TO
PUSH AND TRY TO ENCOURAGE AS
MUCH AS POSSIBLE THAT WE MOVE
WITH EXPEDIENCY, THAT, THAT WE
MOVE WITH EFFICIENCY, OUR
CLIMATE GOALS ARE SOMETHING I
TAKE VERY, VERY SERIOUSLY. AND
IF WE'RE GOING TO GET TO WHERE
WE NEED TO GO, WE NEED TO I
BELIEVE WE NEED TO ACCELERATE
SOME OF OUR EFFORTS IN A VARIETY
OF THINGS. AND YOU'LL HEAR SOME
OF THAT PROBABLY IN MY
ADDITIONAL COMMENTS LATER TODAY.
BUT I WANT TO THANK THE CHAIR
FOR PUTTING THIS TOGETHER. I
THINK IT'S A REALLY IMPORTANT
HEARING AND LOOK FORWARD TO THE
CONTENT LATER. THANK YOU.
ASSEMBLY MEMBER. WOOD. ASSEMBLY
MEMBER. HART. THANK YOU, MADAM
CHAIR, FOR CONVENING THIS
IMPORTANT INFORMATIONAL HEARING
TODAY. I'M A BIG SUPPORTER OF
THE POTENTIAL FOR OFFSHORE WIND
DEVELOPMENT IN CALIFORNIA, AND
THIS IS A GREAT OPPORTUNITY TO
DISCUSS HOW WE CAN MAKE OFFSHORE
WIND A REALITY, MORRO BAY, WELL,
JUST OUTSIDE MY DISTRICT, PLAYS
A KEY ROLE IN THIS DISCUSSION.
AND OFFSHORE WIND DEVELOPMENT
ALONG THE CENTRAL COAST WILL
HAVE SIGNIFICANT IMPACTS ON
LOCAL COMMUNITIES AND GREAT
OPPORTUNITIES. WE NEED TO
PROTECT COASTAL RESOURCES AND
PROVIDE GOOD JOBS AND CLEAN
ENERGY FOR CALIFORNIA. I'M
ESPECIALLY LOOKING FORWARD TO
HEARING THE TESTIMONY OF SAM
COHEN FROM THE CHUMASH TRIBE IN
SANTA YNEZ, WHICH IS IN MY
DISTRICT. HIS INSIGHTS WILL BE
INVALUABLE IN UNDERSTANDING THE
IMPACTS OFFSHORE WIND CAN HAVE
ON TRIBAL COMMUNITIES. I'M ALSO
LOOKING FORWARD TO HEARING THE
DISCUSSION ON THE POTENTIAL
IMPACTS TO RATEPAYERS. IT'S ONE
OF THE TOP ISSUES FOR
CONSTITUENTS IN MY DISTRICT AND
ACROSS CALIFORNIA. I'D LOVE TO
HEAR FROM OUR PANEL OF EXPERTS
ON WAYS TO ENSURE OFFSHORE WIND
IS BOTH ENVIRONMENTALLY
RESPONSIBLE AND COST EFFECTIVE.
THANK YOU. THANK YOU, ASSEMBLY
MEMBER HART. ALL RIGHT. WE'LL GO
AHEAD AND JUMP IN TO OUR FIRST
PANEL, WE ARE GOING TO BEGIN
WITH A DISCUSSION OF
CALIFORNIA'S GOALS FOR OFFSHORE
WIND DEPLOYMENT, WE'LL GO AHEAD
AND WELCOME UP OUR FIRST THREE
PANELISTS, DOUG BOREN, WHO IS
JOINING US FROM THE BUREAU OF
OCEAN ENERGY MANAGEMENT, JENNA
GAGNON, WHO IS JOINING US. SHE'S
THE SENIOR ADVISOR FOR OFFSHORE
WIND IN THE OFFICE OF THE
GOVERNOR. AND THEN LU█N TESFAYE,
WHO IS JOINING US FROM THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. THANK YOU SO MUCH
FOR BEING HERE. AND WE'LL GO
AHEAD AND, PROVIDE OPENING
STATEMENTS AND THEN PLEASE STAY
ON THE DÍAS WILL THEN BE
WELCOMING UP SOME ADDITIONAL
PANELISTS. AND AFTER THEIR
OPENING STATEMENTS, WE WILL OPEN
IT UP FOR QUESTIONS AND
DISCUSSION WITH, WITH MEMBERS,
WE'LL GO AHEAD AND BEGIN WITH
YOU, MR. BOREN. THANKS FOR BEING
HERE. GREAT. THANK YOU, MADAM
CHAIR. HELLO, EVERYONE. I'M DOUG
BOREN. I'M THE REGIONAL DIRECTOR
FOR THE BUREAU OF OCEAN ENERGY
MANAGEMENT, OR BOEM, PACIFIC
REGIONAL OFFICE. I'D LIKE TO
THANK THE ASSEMBLY COMMITTEE ON
UTILITIES AND ENERGY FOR HOLDING
THIS INFORMATIONAL HEARING ON
OFFSHORE WIND TODAY. TO BRIGHTON
TO PROVIDE AN UPDATE ON FEDERAL
OFFSHORE WIND LEASING ACTIVITIES
IN CALIFORNIA. FOR THOSE WHO
AREN'T FAMILIAR WITH BOEM, WE'RE
THE FEDERAL AGENCY THAT MANAGES
THE SAFE AND ORDERLY ENERGY AND
MINERAL RESOURCE DEVELOPMENT ON
THE U.S. OUTER CONTINENTAL SHELF
OR THE OCS. I'M GRATEFUL FOR OUR
TIME TOGETHER TODAY TO FOCUS ON
HOW BOEM HAS WORKED WITH TRIBAL
NATIONS. THE STATE OF
CALIFORNIA, AND KEY STAKEHOLDERS
TO IDENTIFY LEASE AREAS AND HOW
FUTURE COLLABORATIONS CAN BUILD
A ROBUST DOMESTIC SUPPLY CHAIN
THAT SUPPORTS THE EMERGING
FLOATING OFFSHORE WIND INDUSTRY
IN THE UNITED STATES, AND MOST
NOTABLY HERE IN CALIFORNIA. THE
BIDEN-HARRIS ADMINISTRATION HAS
SET GOALS FOR OFFSHORE WIND.
DIRECTING AGENCIES TO WORK
TOWARD THE DEPLOYMENT OF 30GW OF
OFFSHORE WIND ENERGY BY 2030,
AND 15GW OF FLOATING OFFSHORE
WIND BY 2035. IN PURSUIT OF
THESE EFFORTS, BOEM HAS APPROVED
NINE PROJECTS TO DATE ON THE
EAST COAST AND CONTINUES TO
EFFICIENTLY AND EFFECTIVELY MOVE.
THROUGH THE PERMITTING PROCESS
FOR A NUMBER OF OTHER PROJECTS
IN THE C¯. WE HAVE SEVERAL
PROJECTS UNDER CONSTRUCTION.
POWER IS FLOWING TO THE GRID, A
SIGNIFICANT SUPPLY CHAIN
INVESTMENTS HAVE BEEN MADE TO
SUPPORT THIS GROWING INDUSTRY.
WE ARE ALSO ACTIVELY IDENTIFYING
AREAS FOR LEASING ON THE EAST
COAST, THE WEST COAST AND THE
GULF OF MEXICO AND BEYOND. OVER
THE LAST THREE YEARS, BOEM HAS
HELD FOUR OFFSHORE WIND LEASE
SALES, INCLUDING OFFSHORE NEW
YORK, NEW JERSEY AND THE
CAROLINAS. THE FIRST EVER
OFFSHORE LEASE SALE IN THE GULF
OF MEXICO, AND THE FIRST LEASE
SALE SPECIFICALLY FOR FLOATING
OFFSHORE WIND OFFSHORE
CALIFORNIA. BOEM PLANS TO HOLD
THREE OCS WIND ENERGY LEASE
SALES THIS YEAR FOR THE CENTRAL
ATLANTIC GULF OF MAINE AND
OFFSHORE OREGON. AND I'LL JUST
NOTE THE CENTRAL ATLANTIC LEASE
SALE JUST HAPPENED TODAY AND HAS
CONCLUDED ALREADY, WE'VE ALSO
ANNOUNCED A FIVE YEAR OFFSHORE
WIND LEASING SCHEDULE OUTLINING
ADDITIONAL POTENTIAL LEASE SALES
OVER THE NEXT FIVE YEARS TO HELP
CONTINUE TO FACILITATE THE CLEAN
ENERGY TRANSITION AND INSPIRE
CONFIDENCE AMONG STAKEHOLDERS
AND OCEAN USERS BY IMPROVING THE
PREDICTABILITY AND TRANSPARENCY
OF THE FEDERAL OFFSHORE WIND
LEASING PROCESS. YOU KNOW, OUR
CLOSE COORDINATION WITH THE
STATE OF CALIFORNIA ON OFFSHORE
WIND PLANNING AND ENGAGEMENT
ACTIVITIES LED US TO AN EXCITING
MILESTONE THE SALE OF THE FIVE
WIND LEASE AREAS OFFSHORE
CALIFORNIA IN DECEMBER OF 2022.
THIS CALIFORNIA OFFSHORE WIND
AUCTION BROUGHT IN OVER $757
MILLION IN WINNING BIDS, AND WAS
THE FIRST OFFSHORE WIND ENTITY
LEASE SALE IN THE PACIFIC, AND
FIRST SPECIFICALLY FOR FLOATING
WIND. THE LEASE SALE INCLUDED A
20% CREDIT FOR WORKFORCE
TRAINING PROGRAMS, AND THE
DEVELOPMENT OF A US DOMESTIC
SUPPLY CHAIN FOR FLOATING
OFFSHORE WIND INDUSTRY. THIS
CREDIT WILL RESULT IN OVER $117
MILLION IN INVESTMENTS FOR THESE
CRITICAL PROGRAMS AND
INVESTMENTS OR INITIATIVES. THE
AUCTION ALSO INCLUDED TWO 5%
CREDITS FOR BIDDERS WHO
COMMITTED TO ENTERING A
COMMUNITY BENEFIT AGREEMENT, OR
CBA. THE FIRST IS THE LEASE AREA
USKBA WITH TRIBAL ENTITIES,
COMMUNITIES OR STAKEHOLDER
GROUPS WHOSE USE OF THE LEASE
AREA OR USE OF THE RESOURCES
HARVESTED FROM THE LEASE AREAS
IS EXPECTED TO BE IMPACTED BY
OFFSHORE WIND DEVELOPMENT. THE
SECOND IS THE GENERAL CBA, AGAIN
WITH TRIBES, COMMUNITIES
STAKEHOLDER GROUPS THAT ARE
EXPECTED TO BE AFFECTED BY THE
POTENTIAL IMPACTS ON THE MARINE,
COASTAL OR HUMAN ENVIRONMENT
FROM LEASE DEVELOPMENT. THESE
CREDITS ARE JUST ANOTHER EXAMPLE
OF HOW BOEM AND THE STATE OF
CALIFORNIA WORK TOGETHER TO MEET
CALIFORNIA'S RENEWABLE ENERGY
GOALS IN A MANNER THAT ENSURES
THE COEXISTENCE OF ALL
INDUSTRIES AND PARTNERS.
CURRENTLY, LESSEES OF THE
CALIFORNIA LEASES ARE CONDUCTING
THEIR SITE ASSESSMENT
ACTIVITIES. BOEM WILL HAVE A
BETTER IDEA OF A PROJECT DESIGN
WHEN CONSTRUCTION AND OPERATION
PLANS ARE SUBMITTED IN THE
FUTURE. WE WILL CONTINUE TO WORK
WITH THE STATE ON POTENTIAL
AREAS FOR FUTURE OFFSHORE WIND
LEASING AND APPLAUD CALIFORNIA'S
WORK ON A STRATEGIC PLAN FOR
OFFSHORE WIND DEVELOPMENT AND
FEDERAL WATERS OFF THE COAST OF
CALIFORNIA. PURSUANT TO AB 525.
AND WE ARE EXCITED ABOUT THE
RECENT NEWS OF THE CALIFORNIA
PUBLIC UTILITY COMMISSION'S
PROPOSED DECISION TO PROCURE UP
TO 7.6GW OF OFFSHORE WIND
ENGAGEMENT AND INCLUSION IN
GÓMEZ PERMITTING PROCESS IS
FUNDAMENTAL TO ITS SUCCESS. WE
ENGAGE EARLY AND OFTEN
THROUGHOUT THE PROCESS TO ENSURE
EARLY COMMUNICATION AND TO
INCORPORATE PUBLIC AND PARTNER
FEEDBACK, AS WELL AS IMPORTANT
TECHNICAL INFORMATION AND DATA.
WE BELIEVE THE PROVISIONS
INCLUDED IN THE CALIFORNIA
LEASES ADVANCES THIS COMMON
GOAL. BOEM IS COMMITTED TO
CONTINUED PROCESS IMPROVEMENTS
IN OFFSHORE WIND LEASING, AND AS
A RESULT, WE HAD SEVERAL
INNOVATIONS IN THE CALIFORNIA
LEASE SALE TO ADDRESS CONCERNS
FROM TRIBAL NATIONS, STATE AND
FEDERAL AGENCIES, LOCAL
GOVERNMENTS, OCEAN USERS, AND
OTHER STAKEHOLDERS. BOEM
WELCOMES CONTINUED AND DIRECT
FEEDBACK FROM OUR TRIBAL
PARTNERS. BOEM MAKES GOOD FAITH
EFFORTS TO INVITE TRIBES TO
CONSULT EARLY IN THE PLANNING
AND THROUGHOUT THE DECISION
MAKING PROCESS, ENSURING THAT WE
INCORPORATE INDIGENOUS KNOWLEDGE
FROM ENVIRONMENTAL STUDIES,
ASSESSMENTS AND FORMAL
GOVERNMENT TO GOVERNMENT
CONSULTATIONS. FOR EXAMPLE, NEW
LEASE CONDITIONS WERE DEVELOPED
TO HELP IMPROVE COMMUNICATION
BETWEEN THE LESSEES AND TRIBAL
NATIONS, FEDERAL AND STATE
AGENCIES, FISHERIES AND
STAKEHOLDERS. ADDITIONALLY, THE
LESSEES MUST MAKE REASONABLE
EFFORTS TO ENGAGE WITH TRIBES
AND STAKEHOLDERS THAT MAY
POTENTIALLY BE AFFECTED BY ANY
PROPOSED PROJECT. WE WANT ALL
OCEAN USERS AND STAKEHOLDERS TO
HAVE THE INFORMATION THEY NEED,
AND AN EQUITABLE AND ACCESSIBLE
SEAT AT THE TABLE. ANOTHER
IMPORTANT OCEAN USER IN OUR WORK
IS, OF COURSE, FISHING
COMMUNITIES. AS WE CONSIDER
FUTURE OFFSHORE WIND ENERGY
ACTIVITIES IN CALIFORNIA. OUR
GOAL IS TO AVOID OR REDUCE
POTENTIAL IMPACTS TO FISHERIES
FROM OFFSHORE WIND ENERGY
DEVELOPMENT. WE MUST CONTINUE TO
RELY ON THE BEST AVAILABLE
FISHING DATA AND SCIENCE TO
INFORM THE OFFSHORE RENEWABLE
ENERGY PROCESS. FOR EXAMPLE, IN
OREGON, BOEM COLLABORATED WITH
THE NATIONAL OCEAN AND OCEANIC
AND ATMOSPHERIC ADMINISTRATION,
OR NOAA. THE NATIONAL CENTERS
FOR COASTAL OCEAN SCIENCE IN CAS
TO USE AN OCEAN PLANNING MODEL
THAT SOUGHT TO MINIMIZE OCEAN
USE CONFLICTS WITH COMMERCIAL
FISHING FISHERIES. DATA INPUT
FROM THE NATIONAL MARINE
FISHERIES SERVICE, OR NYMPHS,
AND OREGON'S DEPARTMENT OF FISH
AND WILDLIFE INFORMED THE
DESIGNATION OF TWO DRAFT WIND
ENERGY AREAS THAT AVOID 98% OF
THE AREAS RECOMMENDED FOR
EXCLUSION DUE TO THEIR
IMPORTANCE AS COMMERCIAL FISHING
GROUNDS, AND BASED ON COMMENTS
RECEIVED ON THE DRAFT WIND
ENERGY AREAS BOOM, ALSO ADJUSTED
THE SOUTHERN BOUNDARY OF THE
BROOKINGS WIND ENERGY AREA. THIS
ADJUSTMENT AVOIDS THE MAJORITY
OF A NYMPH'S SCIENTIFIC SURVEY
CORRIDOR, IDENTIFIED AS CRITICAL
FOR TRIBAL, STATE, AND FEDERAL
FISHERIES MANAGERS AND ALLOWS
THE PACIFIC FISHERY MANAGEMENT
COUNCIL TO MAKE FORECASTS
ENABLING TIMELY DECISIONS ON
IMPORTANT MANAGEMENT OBJECTIVES,
INCLUDING THE HARVEST AND
PACIFIC SALMON RECOVERY. AS PART
OF BOEING'S EFFORT TO ENSURE
THAT OFFSHORE RENEWABLE ENERGY
DEVELOPMENT OCCURS IN A
THOUGHTFUL MANNER THAT MINIMIZES
CONFLICTS WITH OTHER OCEAN
USERS, WE ISSUED A DRAFT
GUIDANCE ON MITIGATION
MITIGATING POTENTIAL IMPACTS OF
OFFSHORE WIND DEVELOPMENT ON
COMMERCIAL AND RECREATIONAL
FISHING. WE ANTICIPATE
FINALIZING THIS GUIDANCE LATER
THIS YEAR. YOU KNOW, BOEM WILL
CONTINUE TO WORK WITH TRIBES,
STATES, LOCAL COMMUNITIES, THE
OFFSHORE WIND INDUSTRY AND OCEAN
USERS TO REVISE THE GUIDANCE AS
APPROPRIATE TO ADDRESS EMERGING
ISSUES. IN CONCLUSION, I'LL SAY
BOEM REMAINS COMMITTED TO THE
CLOSE PARTNERSHIP WITH THE STATE
OF CALIFORNIA TO DEVELOP A SAFE,
EQUITABLE AND ENVIRONMENTALLY
RESPONSIBLE FLOATING OFFSHORE
WIND INDUSTRY IN THE GOLDEN
STATE WHILE SUPPORTING THE
STATE'S GOALS OF 2 TO 5GW BY
2030 AND 25GW BY 2045. IN ORDER
TO MEET THESE GOALS, BOEM AND
CALIFORNIA NEED TO MAINTAIN OUR
CLOSE COORDINATION AND ENSURE
THE VOICES OF TRIBAL NATIONS,
OCEAN USERS AND STAKEHOLDERS
THROUGHOUT THE STATE ARE
CONSIDERED AT EVERY STEP OF THE
PROCESS. I'D JUST LIKE TO POINT
OUT THAT AT THE LAST FEDERAL
STATE TOUCH POINT, THE COASTAL
ZONE MANAGEMENT ACT CONSISTENCY
DETERMINATION FROM BOEM, THE
CALIFORNIA COASTAL COMMISSION
VOTED UNANIMOUSLY TO APPROVE
WITH CONDITIONS CONSISTENCY,
DETERMINATION. YOU KNOW, WORKING
CLOSELY WITH THE COMMISSION BOOM
IN INCORPORATED CONDITIONS OF
THE CONCURRENCE INTO THE LEASES
ISSUED IN THE CALIFORNIA SEAL.
THIS OUTCOME WOULD NOT HAVE BEEN
POSSIBLE WITHOUT THE STRONG
FEDERAL STATE COORDINATION AND
THE EXCEPTIONAL, EXCEPTIONALLY,
THROUGH RECOMMENDATIONS WITH THE
COASTAL COMMISSION STAFF AND
SUPPORTING AGENCIES, SUBJECT
MATTER EXPERTS. WE ARE GRATEFUL
FOR THIS WORKING RELATIONSHIP
AND THE ATTENTION TO DETAIL AND
HIGH PROFESSIONAL STANDARDS
DEMONSTRATED BY OUR PARTNERS AT
THE COASTAL COMMISSION. BOEM IS
ENTRUSTED WITH THE SAFE AND
RESPONSIBLE DEVELOPMENT OF
OFFSHORE ENERGY SOURCES FOR THE
NATION. WE ARE PRIVILEGED AND
HONORED TO FULFILL THAT TRUST
EVERY DAY, IN EVERY DECISION. WE
REMAIN COMMITTED TO ACTIVE
ENGAGEMENT WITH ALL PARTNERS AND
STAKEHOLDERS TO ENSURE THE
RESPONSIBLE DEVELOPMENT OF THESE
SHARED RENEWABLE ENERGY
RESOURCES ON THE OCS, AND WE
WILL CONTINUE TO KEEP THE
COMMITTEE INFORMED OF OUR
PROGRESS. I LOOK FORWARD TO
ANSWERING YOUR QUESTIONS. THANK
YOU FOR THIS OPPORTUNITY TO
SPEAK TO YOU TODAY. THANK YOU,
STATE OF CALIFORNIA IS VERY
GRATEFUL FOR YOUR PARTNERSHIP,
AND WE APPRECIATE YOU BEING HERE
AND BEING PART OF THIS HEARING,
MISS GAGNON. GREAT THANK YOU, I
THINK I HAVE A FEW SLIDES, SO
COULD WE GO TO THE FIRST ONE?
THOSE TEED UP? PERFECT. THANK
YOU. SO MUCH, SO MY NAME IS JANA
GAGNON. I AM THE SENIOR ADVISOR
FOR OFFSHORE WIND IN THE NEWSOM
ADMINISTRATION. THIS IS A NEW
ROLE AS OF FEBRUARY 2024. AND
RESPONSIVE TO THE LARGE SCALE OF
OFFSHORE WIND AND RELATED
SECTORS. THAT HAS BEEN DISCUSSED
ALREADY TODAY. WIND FARMS, PORTS,
TRANSMISSION, SUPPLY CHAIN,
WORKFORCE DEVELOPMENT,
ECOSYSTEM, ADAPTIVE MANAGEMENT,
SCIENCE RESEARCH, TECHNOLOGY
INNOVATION AND OTHER POLICIES
AND SUPPORTS FOR RESPONSIBLE AND
EQUITABLE DEVELOPMENT OF THIS
NEW GREEN INFRASTRUCTURE SECTOR.
THE ROLE IS ENVISIONED TO
COORDINATE ONSHORE AND OFFSHORE
WIND ENERGY STRATEGY AGAINST
ACROSS THE MANY AGENCIES,
DEPARTMENTS, COMMISSIONS, AND
MISSIONS OF CALIFORNIA
GOVERNMENT. WITH THE OFFSHORE
WIND SECTORS AS PARTNERS. PRIOR
TO THIS ROLE, I WORKED FOR A
NATIVE AMERICAN TRIBAL
GOVERNMENT AND WITH INNOVATIVE
STATE, TRIBAL, PUBLIC AND
PRIVATE PARTNERSHIPS. HELPED
BRING FORWARD UTILITIES AND
ENERGY RESULTS IN LOW CARBON
INFRASTRUCTURE AND RESILIENCY
EFFORTS. I CO-CHAIRED THE US
DEPARTMENT OF ENERGY'S NATIONAL
WORKING GROUP FOR TRIBAL ENERGY
AND INFRASTRUCTURE DEVELOPMENT,
WAS VICE CHAIR OF THE CALIFORNIA
SB 350 DISADVANTAGED COMMUNITIES
ADVISORY GROUP TO THE CALIFORNIA
ENERGY COMMISSION COMMISSION AND
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION. I'VE SERVED ALSO ON
THE CALIFORNIA AIR RESOURCES
BOARD, AB 617 COMMUNITY AIR
PROTECTION PROGRAM ADVISORY
GROUP, AND ON THE PGA
SUSTAINABILITY ADVISORY COUNCIL,
I MENTIONED THESE BECAUSE IT'S
BEEN MY HONOR TO WORK WITH
EXPERT TEAMS AND PUBLIC AND
PRIVATE PARTNERS OF ALL KINDS TO
DRIVE CLEAN ENERGY SOLUTIONS
TOWARD, DEMONSTRATION AND SCALE,
TO REDUCE COSTS AND MAKE
PROGRESS ON RELATED CLIMATE
GOALS AT THE INTERSECTION OF
STATE, FEDERAL, TRIBAL
GOVERNMENT RELATIONSHIPS. AND
FINALLY, I'VE BEEN CO-LEADING
REGIONAL WORK ON OFFSHORE WIND
IN THE NORTHERN PART OF THE
STATE SINCE 2016 AS A MEMBER OF
BOEHM'S RENEWABLE ENERGY
INTERGOVERNMENTAL TASK FORCE AND
HAVE HAD THE DISTINCT PRIVILEGE
OF ATTENDING MULTIPLE OFFSHORE
WIND STUDY TOURS. IN THE UNITED
STATES, ON THE EAST COAST AND IN
EUROPE AND OTHER PARTS OF THE
GLOBE, WHERE OFFSHORE WIND IS
FULLY UNDERWAY. SO NEXT SLIDE
PLEASE. LET'S SEE. YEP. THERE WE
GO. SO THIS IS JUST REALLY
QUICKLY JUST TO ECHO CHAIR
PETRIE-NORRIS THE CLIMATE
CONTEXT SLOWING CLIMATE CHANGE
IS THE PRIMARY CONTEXT FOR
OFFSHORE WIND DEVELOPMENT.
GLOBAL AIR AND OCEAN
TEMPERATURES ARE SHATTERING
RECORDS. THIS CHART. OH, SORRY.
GO BACK A SLIDE, PLEASE. I KNOW
IT'S IN PDF, I CAN'T SEE IT
WITHOUT MY GLASSES. I'M HOPING
YOU CAN SEE IT, IT SHOWS THE
GLOBAL SEA SURFACE TEMPERATURE
AVERAGE SINCE 1981. AND IT'S
IMPORTANT BECAUSE IF YOU LOOK AT
THE ORANGE LINE ON THIS CHART,
THAT'S THE 2023 AVERAGE. AND THE
THICK BLACK LINE AT THE TOP IS
2024. THERE IS AN INCREASING
SENSE OF URGENCY TO OUR WORK, TO
DECARBONIZE, AND THAT IS THE
CONTEXT FOR OFFSHORE WIND. NEXT
SLIDE PLEASE, AS WE'VE HEARD,
BASED ON POTENTIAL BENEFITS,
CALIFORNIA HAS DEVELOPED BOLD
PLANNING GOALS FOR OFFSHORE WIND
ENERGY IMPLEMENTATION UP TO 2 TO
5GW BY 2030 AND 25GW BY 2045.
NEXT SLIDE. THE FIRST FIVE
FLOATING OFFSHORE WIND LEASES
WITH SEA SPACE THAT TOGETHER
COULD GENERATE UP TO TEN
GIGAWATTS OF POWER OR FULLY
EXECUTED IN JUNE OF 2023. THAT'S
JUST 14 MONTHS AGO, THERE HAS
BEEN A LOT OF ACTIVITY. THERE
ARE FIVE SEPARATE DEVELOPERS, AS
WE'VE HEARD, ALL OF WHICH HAVE
BEEN ACTIVELY ENGAGING IN THE
CALIFORNIA OFFSHORE WIND
DEVELOPMENT SECTORS. NEXT SLIDE
PLEASE. ZOOMING OUT, AS HAS BEEN
DISCUSSED, BUT I'D LIKE TO
PROVIDE A LITTLE BIT MORE
DETAIL. IT'S IMPORTANT TO
UNDERSTAND THE INTERRELATED
SECTORS OF OFFSHORE WIND AND ITS
INDUSTRY CLUSTER. THE WIND FARMS
OFFSHORE, THE ELECTRICAL
TRANSMISSION, OFFSHORE AND
ONSHORE PORTS OF VARIOUS SIZES
AND OPERATIONAL FOCUS. ECOSYSTEM
ADAPTIVE MANAGEMENT, INCLUDING
SCIENCE, DATA, RESEARCH AND
DEVELOPMENT, TECHNOLOGY AND
DESIGN, AND INNOVATION. AND
OTHER SUPPORTS. SUPPLY CHAIN
LABOR AND WORKFORCE DEVELOPMENT
RELATED INFRASTRUCTURE SUCH AS
BROADBAND RELATED SOCIAL
INFRASTRUCTURE SUCH AS WORKER
HOUSING, HEALTH CARE, AND CHILD
CARE. IN THESE REGIONS, AND EACH
OF THESE HAVE MOST ACTIVITIES
LISTED ON THE LEFT OF THE SLIDE
AND TOGETHER THESE INDUSTRIES
TOTAL SEVERAL BILLION DOLLARS IN
ACTIVITIES AND ECONOMIC GROWTH
GLOBALLY. AS ASSEMBLY MEMBER,
WOOD MENTIONED, THE OFFSHORE
WIND PROJECT POTENTIAL IT IS
ENORMOUS AND IT'S ESTIMATED THAT
80% OF THOSE PROJECTS WILL BE
FLOATING SYSTEMS. CALIFORNIA IS
POSITIONED TO BE A LEADER IN THE
FLOATING OFFSHORE WIND SPACE. A
KEY CONSIDERATION AS WE GO IS
THAT OFFSHORE WIND DOES PRESENT
OPPORTUNITIES TO DEVELOP GREEN
INFRASTRUCTURE MORE EQUITABLY
AND RESPONSIBLY, TO CREATE
HEALTHY ECONOMIC GROWTH IN
REGIONS AND THROUGHOUT THE
STATE. AND A KEY CONSIDERATION
IN THAT BENEFIT STACK IS A
THROUGH LINE IN SOME OF THE
OPPOSITION TO OFFSHORE WIND THAT
THE RURAL TRIBAL COASTAL
COMMUNITIES AND REGIONS WHERE
OFFSHORE WIND IS CURRENTLY
CURRENTLY BEING DEVELOPED IN
CALIFORNIA HAVE LIMITED CAPACITY
TO ENGAGE WITH ALL OF THESE NEW,
VERY LARGE MEGA PROJECTS THAT
ARE HAPPENING POTENTIALLY
SIMULTANEOUSLY, THE JUST REALLY
WANT TO THANK MEMBERS OF THIS
COMMITTEE ALREADY FOR BEING
RESPONSIVE TO THAT IN MANY WAYS.
AND WE CAN TOUCH ON THAT, AS WE
GO FORWARD, STATE AGENCIES ARE
ALSO RAISING AWARENESS THAT
ADDITIONAL CAPACITY IS NEEDED TO
HANDLE SIMULTANEOUS PROJECTS AND
TO OPTIMIZE RELATED PERMITTING
AND PROCESSES. SOLUTIONS ARE
UNDERWAY, AS I SAID, BUT MORE
THOUGHT PARTNERSHIP IS NEEDED
HERE. NEXT SLIDE PLEASE. SO
OFFSHORE WIND HAS A
COMPREHENSIVE POTENTIAL BENEFIT
STACK. AND AGAIN THIS IS TO ECHO
PETRIE-NORRIS YOUR STATEMENT.
THIS IS WITHIN A SOLUTION SET
THAT IS COMPREHENSIVE. SO
OFFSHORE WIND IS A PUZZLE PIECE
IN OUR CLIMATE STRATEGY AND OUR
ENERGY STRATEGY, BUT I'M GOING
TO RUN THROUGH SOME OF THESE
QUICKLY, OFFSHORE WIND HAS THE
POTENTIAL TO REALLY DIVERSIFY
THE CALIFORNIA AND WESTERN U.S.
CLEAN ENERGY MIX FOR INCREASED
RELIABILITY. IT BALANCES SOLAR
ENERGY AT NIGHT AND IN THE
WINTER, AND IT MAY HELP WITH
GRID STRESS. EVENTS LIKE HEAT
DOMES IN THE WESTERN US THAT
THAT HIT EVERYWHERE, ALL AT
ONCE, SO THERE'S MANY SORT OF
ENERGY RELATED RESILIENCY
BENEFITS TO OFFSHORE WIND. THE
GREENHOUSE GAS REDUCTIONS PAINT
A VERY GOOD PICTURE. SO THE
NATIONAL RENEWABLE ENERGY LAB
HAS CALCULATED THAT OFFSHORE AND
ONSHORE WIND TOGETHER HAS
ROUGHLY 3% OF THE CO2 CARBON
DIOXIDE EQUIVALENT EMISSIONS PER
UNIT OF ELECTRICITY GENERATED
COMPARED TO NATURAL GAS 3%. SO
THAT AND THAT IS ACTUALLY A FULL
LIFE CYCLE ANALYSIS AND ALSO
DOES NOT TAKE INTO ACCOUNT
FURTHER REDUCTIONS THAT MIGHT BE
AVAILABLE THROUGH GREEN STEEL
AND CARBON NEGATIVE CEMENT AND
OTHER MATERIALS THAT ARE THAT
ARE IMPORTANT IN THIS SPACE, IT,
IT PRESENTS THE OPPORTUNITY TO,
TO BUILD GREEN INFRASTRUCTURE
FOR EQUITABLE SOCIO ECONOMIC
BENEFITS. SKILLED AND TRAINED
HIGH ROAD JOBS, SUPPLY CHAINS
AND WITH A PARTICULAR ABILITY TO
FRONT LOAD CONSIDERATIONS ABOUT
COMMUNITY SAFETY. WE HAVE AN
OPPORTUNITY TO IMPROVE OUR PORTS
IN MANY WAYS, LARGE AND SMALL,
INCLUDING LOWERING THE POLLUTION
AND DESIGNING FOR THE PORTS OF
THE FUTURE WITH FULL
ELECTRIFICATION AND OTHER LOW
CARBON OR ZERO CARBON AND ZERO
EMISSION STRATEGIES, SO, THERE'S
THERE ARE OTHER BENEFITS, LIKE
NEW AND EXPANDED ELECTRIC
TRANSMISSION DESIGNED FOR ENERGY
EQUITY BENEFITS IN THE REGIONS
AND ACROSS THE STATE, THIS HAS A
CHANCE TO AGAIN, BE REALLY
THOUGHT ABOUT WELL, AND IMPROVE
RELIABILITY. AND SOLVE FOR LOCAL
NEEDS LIKE PORT ELECTRIFICATION,
AND I JUST WANT TO MY LAST POINT
HERE, IS INNOVATION SCIENCE AND
RESEARCH OPPORTUNITIES. SO NEW
TECHNOLOGIES, SYSTEMS
OPTIMIZATION, THESE THESE AREAS
OF INNOVATION ARE PART OF
PERMITTING. THEY'RE PART OF COST
REDUCTIONS. AND THEY'RE A KEY
PART OF REGIONAL AND STATE
ECONOMIC GROWTH, ENERGY AND TECH
INNOVATION IS A CALIFORNIA
STRENGTH AND FLOATING OFFSHORE
WIND IS A SPACE AND A NEW
APPLICATION FOR THIS MUSCLE TO
BE APPLIED. INFRASTRUCTURE
DESIGNED FOR ENHANCED
COMPATIBILITY OF ALL KINDS. AS I
MENTIONED, GREEN PORTS, BUT ALSO
MILITARY ACTIVITIES, SHIPPING
TRIBAL AND COMMERCIAL FISHERIES,
AND OTHERS. THIS IS THE
OPPORTUNITY BEFORE US. NEXT
SLIDE PLEASE. AND WITH POTENTIAL
BENEFITS COME POTENTIAL RISKS
AND CONCERNS. SOME OF THE COMMON
CONCERNS AROUND POTENTIAL
EFFECTS AND IMPACTS ARE LISTED
HERE. BUT THANKS TO FEDERAL,
STATE, TRIBAL, REGIONAL SCIENCE
RESEARCH PARTNERS AND OTHER
INTERESTED PARTIES IN THIS
SPACE, INCLUDING THE PRIVATE
SECTOR, THE QUESTIONS AND
RESEARCH AGENDAS ARE BEING
CONSIDERED AND SHAPED, AND THERE
IS A FOCUS ON DATA GATHERING
THAT WE NEED TO ADDRESS THESE
CONCERNS. MAKE DATA DRIVEN
DECISIONS, AND HAVE THE
INFORMATION TO ADAPT OVER TIME.
WE ARE ALSO PURSUING FEDERAL
SUPPORT OF CERTAIN OFFSHORE WIND
ANALYZES THAT ARE INFORMING
POLICY AND GOOD DECISION MAKING
IN CALIFORNIA AS WELL. A THROUGH
LINE IN THE OPPOSITION TO
OFFSHORE WIND. AS I SAID, IN
RURAL AND TRIBAL REGIONS, HAS
BEEN LACK OF CAPACITY TO ENGAGE
WITH PROCESSES. AND, MULTIPLE
LARGE SCALE PROJECTS ALL
HAPPENING AT ONCE. THIS LACK OF
CAPACITY, CAN BE MITIGATED TO
SOME EXTENT BY INVESTMENTS IN,
THE SCIENCE, RESEARCH AND
INNOVATION SECTOR. AND, THERE
ARE THIS IS NOT UNIQUE TO
OFFSHORE WIND. THERE ARE A LOT
OF CHANGES IN MOTIONS THAT
INVESTMENT IN, IN THOSE AREAS
CAN HELP ADDRESS. AND CERTAINLY
IT IS IT IS ONE OF THE WAYS WE
CAN HELP SOLVE FOR CAPACITY.
NEXT SLIDE PLEASE. SO WE'VE GONE
OVER SOME OF THIS AND I REALLY
WANT TO THANK WHOEVER DRAFTED
THE BACKGROUNDER. THANK YOU SO
MUCH. IT WAS EXCELLENT. IT WAS
EXCELLENT. SO THIS MAY BE
REDUNDANT, BUT I'LL JUST SAY,
THE AB OFFSHORE AB 55 OFFSHORE
WIND ENERGY STRATEGIC PLAN WAS
ADOPTED BY THE CALIFORNIA ENERGY
COMMISSION ON JULY 10TH, 2024,
AND IT WAS THE RESULT OF A
REALLY AN EXTRAORDINARY
STATEWIDE EFFORT THAT
COORDINATED DOZENS OF CALIFORNIA
AGENCIES, DEPARTMENTS AND
COMMISSIONS, HUNDREDS OF INPUT
MEETINGS OVER A TWO PLUS YEAR
PERIOD LED BY THE CEC. THE
RESULT IS THE FIRST STRATEGIC
PLAN FOR FLOATING OFFSHORE WIND
AND PROVIDING AN ANALYTICAL
FOUNDATION AND RECOMMENDATIONS
FOR MOVING FORWARD IN A
RESPONSIBLE AND TIMELY WAY THAT
MAXIMIZES BENEFITS FOR
CALIFORNIA WORKERS, COMMUNITIES,
TRIBES, WHILE PROTECTING COASTAL
AND MARINE ECOSYSTEMS AND TRIBAL
CULTURAL RESOURCES, A FEW OTHER
THINGS ON THIS LIST IS THE TO
POINT OUT IS THE KAISER THE
RECENT KAISER, 2324 TRANSMISSION
PLAN, WHICH INCLUDES
TRANSMISSION PROJECTS TO CONNECT
OFFSHORE WIND, FACILITIES IN THE
NORTH AND THE UPDATED 20 YEAR
TRANSMISSION OUTLOOK FROM KAISER
IS PUBLISHED AS WELL. THIS IMAGE
DEPICTS SOME OF THE CURRENT GRID
INFRASTRUCTURE IN CALIFORNIA.
PORT DEVELOPMENT ACTIVITIES ARE
UNDERWAY. WE'LL HEAR MORE ABOUT
THAT IN THIS SESSION.
PARTICULARLY AT HUMBOLDT BAY,
LONG BEACH, AND OTHERS. AND WITH
THANKS TO THIS COMMITTEE AND
COLLEAGUES, THE, THE CEC,
OFFSHORE WIND WATERFRONT
FACILITY IMPROVEMENT PROGRAM IS
MOVING FORWARD WITH $45 MILLION
IN FUNDING, AS WAS ENVISIONED BY
AB 209, SO THERE'S OTHER THERE'S
OTHER ACTIVITIES. WE'LL WE'LL
GET TO THOSE IF YOU HAVE
QUESTIONS. BUT, IN THE INTEREST
OF TIME, LET'S MOVE TO THE NEXT
SLIDE, PLEASE. SO WHAT'S NEXT?
WE NEED TO IMPLEMENT THE
STRATEGIC PLAN. AS DISCUSSED
ALREADY, MUCH OF THE
IMPLEMENTATION IS UNDERWAY, A
PARTICULAR FOCUS IN THIS IS WORK
ON COORDINATED PERMITTING AND
ACTIVITIES. ACTIVITIES ALREADY
IN THAT SPACE INCLUDE
MULTI-AGENCY ENGAGEMENT ON THE
BOEM, PROGRAMMATIC ENVIRONMENTAL
IMPACT STATEMENT. AS WE'VE HEARD,
DEVELOPMENT OF COORDINATION
STRUCTURES. SO IN THE AB 525
STRATEGIC PLAN, THERE IS,
THERE'S SIGNIFICANT CONTENT
AROUND A MODEL BASED ON THE
PRIOR CALIFORNIA DESERT
RENEWABLE ENERGY CONSERVATION
PLAN, WHICH TEES UP A STRUCTURE
THAT IN THE IN THE STRATEGIC
PLAN IS CALLED THE REIT, THE
RENEWABLE ENERGY ACTION TEAM.
AND IT HAS A RENEWABLE ENERGY
POLICY GROUP. AND INCLUDES
STRUCTURES FOR COORDINATING
AMONG STATE, FEDERAL, TRIBAL
GOVERNMENTS AND AGENCIES, PLUS
REGIONAL PARTIES. THAT WAS A
SUCCESSFUL, PERMITTING ERA IN
WHICH THAT COORDINATED
PERMITTING STRUCTURE WAS USED
TO, TO PERMIT A LOT OF SOLAR
PROJECTS IN AN ACCELERATED TIME
FRAME. AND, AND THAT IS ONE OF
THE REASONS WHY IT IS INCLUDED
AS A RECOMMENDATION IN THE
STRATEGIC PLAN. AND THE
ACTIVITIES NOW ARE GOING TO BE
TO EXPLORE THE NEXT STEPS TO, TO
IMPLEMENT A COORDINATED
PERMITTING, USING THAT AS A, AS
A STARTING POINT. AS, AS DOUG
MENTIONED, THE ROUND TWO WIND
ENERGY AREA AUCTION PLANNING.
THIS IMAGE ON HERE, IF I'M
LOOKING AT IT CORRECTLY. YEAH IS
FROM THE STRATEGIC PLAN AND IT
AND IT DEPICTS A SKETCH OF
POSSIBLE FUTURE BOEM DRAFT WIND
ENERGY AREAS, THE NEXT BOEM
AUCTION IN CALIFORNIA IS
ESTIMATED TO BE HELD IN 2028,
WHICH MEANS THE RELATED PLANNING
STARTS NOW, OR FOR SURE IN 2025,
WORKFORCE DEVELOPMENT, TRAINING,
SUPPLY CHAINS, THINGS LIKE
VESSELS. THESE ARE ALL
CONVERSATIONS THAT ARE UNDERWAY.
WE'RE LOOKING FORWARD TO TRIBAL
NATION PARTNERSHIPS, PUBLIC,
PRIVATE PARTNERSHIPS,
PHILANTHROPIC PARTNERSHIPS. AND
WE ARE, EXCITED BY THE
ORGANIZATION AND THE
COORDINATION REGIONALLY ON
COMMUNITY BASED PARTNERSHIPS.
AND EXAMPLES OF THESE ARE THE
REACH, CENTRAL COAST, THE
REDWOOD REGION CLIMATE AND
COMMUNITY RESILIENCE HUB OR CORE
HUB, THE SANTA YNEZ
OCEANOGRAPHIC INSTITUTE AND THE
PACIFIC OFFSHORE WIND CONSORTIUM,
AMONG MANY OTHERS. WE HAVE
LEARNED A GREAT DEAL ABOUT
OFFSHORE WIND FROM TRIBAL
GOVERNMENTS. PROJECT MOVING
FORWARD, PROJECTS MOVING FORWARD
ON THE EAST COAST, THE
DEVELOPERS WHO ARE INVESTING IN
CALIFORNIA COMMUNITY AND
ENVIRONMENTAL EXPERTS, THIS
COMMITTEE AND OTHERS WHO ARE
SERIOUS ABOUT OFFSHORE WIND,
DEVELOPED EQUITABLY AND
RESPONSIBLY AND LEARNING FROM
AND AVOIDING BOOM AND BUST
CYCLES IN RURAL AND TRIBAL
RESOURCE EXTRACTION BASED
ECONOMIES, AVOIDING IMPACTS THAT
LEAD TO INSTABILITY, AND INSTEAD
BUILDING STRUCTURES THAT LEAD TO
HEALTHY ECONOMIC GROWTH. WE HAVE
BUILT A LOT OF MOMENTUM AND
TRUST SO FAR IN A VERY SHORT
AMOUNT OF TIME, AND WE HAVE MUCH
MORE WORK TO DO TOGETHER. THANK
YOU VERY MUCH. THANK YOU. THAT
WAS A WONDERFUL OVERVIEW, AND I
KNOW MEMBERS WILL HAVE QUESTIONS
AS WE MOVE FORWARD. WE'RE GOING
TO HEAR FROM ALL OF OUR
PANELISTS. AND THEN WE'LL DIVE
INTO SOME QUESTIONS AND
CONVERSATION. THANK YOU SO MUCH
FOR JOINING US. MISS TESFAI. THE
FLOOR IS YOURS. THANK YOU. GOOD
AFTERNOON, CHAIR PETRIE-NORRIS
AND MEMBERS OF THE COMMITTEE. MY
NAME IS LU█N TESFAI AND I SERVE
AS THE DEPUTY EXECUTIVE DIRECTOR
FOR ENERGY AND CLIMATE POLICY AT
THE CALIFORNIA PUBLIC UTILITIES
COMMISSION. THANK YOU FOR THE
OPPORTUNITY TO BRIEF YOU TODAY
ON THE STATUS OF IMPLEMENTATION
OF ASSEMBLY BILL 1373. BUT MORE
SPECIFICALLY, THE PART OF THE
BILL FOCUSED ON THE CREATION OF
A CENTRAL PROCUREMENT ENTITY TO
SUPPORT THE PROCUREMENT OF
COMPLEX LONG LEAD TIME
RESOURCES. AN EXAMPLE OF WHICH
IS OFFSHORE WIND. NEXT SLIDE
PLEASE. OKAY. SO THE PUBLIC
UTILITIES COMMISSION OF THE
SLIDE BEFORE THAT I HAVE A FEW
REMARKS. SO THE PUBLIC UTILITIES
COMMISSION IS IMPLEMENTING AB
1373 CENTRAL PROCUREMENT ENTITY
IN OUR INTEGRATED RESOURCES
PLANNING PROCEEDING. ALSO KNOWN
AS IRP, WHICH IS AN EXISTING
STAKEHOLDER PROCESS THAT'S VERY
ROBUST AT THE PUBLIC UTILITIES
COMMISSION THAT WAS ORIGINALLY
ESTABLISHED PURSUANT TO SENATE
BILL 350 AND IS WHERE WE ARE
IMPLEMENTING THE CENTRAL
PROCUREMENT PROCESS REQUIRED BY
AB 1373. WE ALSO LEVERAGE THIS
PROCEEDING TO DO OUR CLEAN
ENERGY PROCUREMENT WORK REQUIRED
IN SENATE BILL 100, AS WELL AS
THE REQUISITE ELECTRIC SECTOR
GREENHOUSE GAS REDUCTIONS
REQUIRED FROM THE INVESTOR OWNED
UTILITIES COMMUNITY CHOICE
AGGREGATORS AND ELECTRIC SERVICE
PROVIDERS REGULATED BY THE
PUBLIC UTILITIES COMMISSION AS
NEEDED TO IMPLEMENT THE SCOPING
PLAN ADOPTED BY THE CALIFORNIA
AIR RESOURCES BOARD. SO I
THOUGHT IT WOULD BE IMPORTANT TO
TAKE A STEP BACK AND TALK ABOUT
INTEGRATED RESOURCES PLANNING
BRIEFLY. INTEGRATED RESOURCES
PLANNING IS HOW WE MAKE SURE
THAT ALL OF THESE MANY ENTITIES,
KNOWN AS LOAD SERVING ENTITIES
OR LSIS, OF WHICH THERE ARE
APPROXIMATELY 40 IN CALIFORNIA,
ARE ALL WORKING TOWARDS THAT
PROCUREMENT TO MEET OUR
GREENHOUSE GAS REDUCTION GOALS
AND CLEAN ENERGY GOALS, WHILE
ALSO MAINTAINING RELIABILITY.
THE MOST RECENTLY ADOPTED
PORTFOLIO, OR WHAT WE CALL A
PREFERRED SYSTEM PLAN OF
RESOURCES, WAS ADOPTED IN
FEBRUARY OF 2024 AND WOULD
REDUCE GREENHOUSE GAS EMISSIONS
BY 58% BY 2035 AS COMPARED TO
2020. NEXT SLIDE PLEASE. SO THIS
SLIDE IS ILLUSTRATING WHAT WE
CALL OUR INTEGRATED RESOURCES
PLANNING CYCLE. SO AS I SAID WE
DO THAT EVERY TWO YEARS. AND SO
IN THE FIRST STEP ONE IS REALLY
DESIGNED TO PROVIDE ANALYSIS AND
GUIDANCE TO ALL OF THOSE LOAD
SERVING ENTITIES. THE INVESTOR
OWNED UTILITIES COMMUNITY CHOICE
AGGREGATORS AND ELECTRIC SERVICE
PROVIDERS ABOUT THEIR PLAN TO
MEETING THE GREENHOUSE GAS
RELIABILITY AND LOW COST
OBJECTIVES, WHICH INCLUDE
REPORTING REQUIREMENTS TO THE
PUBLIC UTILITIES COMMISSION. WE
THEN MOVE TO STEP TWO IN THE
PLANNING CYCLE PROCESS, WHERE
ALL OF THOSE LOAD SERVING
ENTITIES, THEY DEVELOP THEIR OWN
PLANS THAT THE COMMUNITY THAT
THE CPUC REVIEWS TO MAKE SURE
THAT WE'RE REACHING OUR GOALS.
SO IN RESPONSE TO STEP ONE, THEY
SUBMIT PORTFOLIOS OF RESOURCES
WHICH ARE EXISTING PROCUREMENT
THAT THAT THEY'VE ALL DONE AS
WELL AS PLANNED NON EXECUTED
PROCUREMENT TO THE PUBLIC
UTILITIES COMMISSION. AND THIS
ALLOWS THE INTEGRATED RESOURCES
PLANNING PROCESS AND ALL OF OUR
EXTENSIVE MODELING TO CONSIDER
WHAT ARE THE PREFERENCES OF
THESE LOAD SERVING ENTITIES FOR
PROCUREMENT TYPES TO MEETING
THEIR GOALS. SO FOR EXAMPLE,
SOME CCAS LIKE TO TRY AND DO
PROCUREMENT. THAT'S CLOSER TO
THE COMMUNITIES THAT THEY SERVE.
THINGS LIKE THAT. AND SO WE
REALLY TRY TO TAKE INTO
CONSIDERATION ALL OF THESE
PREFERENCES THAT THEY HAVE FOR
PROCUREMENT. THERE'S A PUBLIC
REVIEW PROCESS AND THE PUBLIC
UTILITIES COMMISSION ACTUALLY
AGGREGATES ALL OF THOSE
INDIVIDUAL PLANS TO SEE IF THAT
MODELS TO ACTUALLY REACHING THE
GREENHOUSE GAS REDUCTION GOALS
THAT ARE REQUIRED IN THE
STATUTES, AS WELL AS MAINTAINING
RELIABILITY AND THE LOW COST
GOALS FOR RATEPAYERS. AND SO
WHAT WE DO IS WE PUT ALL OF
THOSE PORTFOLIOS FROM THE LOAD
SERVING ENTITIES TOGETHER, AND
WE CREATE A PREFERRED SYSTEM
PLAN. AND THEN THAT TAKES US TO
STEP NUMBER THREE, WHICH IS THAT
CREATION OF THE PREFERRED SYSTEM
PLAN PROCESS. AND WE USE
EXTENSIVE MODELING TO VALIDATE
THAT ALL OF THESE LOAD SERVING
ENTITIES ARE PUTTING TOGETHER
PLANS THAT ARE ACTUALLY GOING TO
REACH THE GOALS. AND THROUGH
THAT IS WHERE WE DO OUR
PROCUREMENT OVERSIGHT AND POLICY
GUIDANCE. AND SO, SO FAR, THE
PUBLIC UTILITIES COMMISSION HAS
PUT OUT OVER 18,800MW IN ORDERS
FOR THE LOAD SERVING ENTITIES TO
GO OUT THERE AND DO THAT
PROCUREMENT. AND I'LL AND I'LL
TOUCH ON SOME OF THE PROGRESS
WE'VE MADE ON THAT, TOO. SHORTLY
SO THE FINAL STEP, THE FOURTH
STEP IN EACH CYCLE IS
PROCUREMENT AND POLICY
IMPLEMENTATION. SO THE LOAD
SERVING ENTITIES ARE GOING OUT
THERE DOING RFAS REQUESTS FOR
OFFERS AND SOLICITATIONS IN
ORDER TO COME BACK AND SIGN
CONTRACTS. AND THE PUBLIC
UTILITIES COMMISSION MONITORS
THAT PROGRESS AND TAKES ACTION
AS NEEDED. AND SO JUST AN
EXAMPLE OF THAT ACTION AS NEEDED
IS, YOU KNOW, THROUGH THE
PREFERRED SYSTEM PLAN PROCESS.
WE HAD IDENTIFIED, NEEDS FOR
COMPLEX LONG LEAD TIME
RESOURCES, AND WE REALLY SAW
THAT LOAD SERVING ENTITIES WERE
STRUGGLING TO MEET THOSE
REQUIREMENTS. AND SO WE HAD
PROVIDED TWO EXTENSIONS TO THOSE
LOAD SERVING ENTITIES TO GIVE
THEM MORE TIME SO THAT THEY
COULD REMAIN IN COMPLIANCE WITH
THE ORDER. AND THEY CONTINUE TO
HAVE CHALLENGES WITH THAT
PROCUREMENT, WHICH WAS WHY IT
WAS SO IMPORTANT LAST YEAR TO
PUT FORTH THIS LEGISLATION TO
CREATE THIS TOOL, TO TRY AND
ADDRESS THIS ISSUE OF NOT BEING
ABLE TO PROCURE THESE LONG LEAD
TIME RESOURCES LIKE OFFSHORE
WIND, LONG DURATION ENERGY
STORAGE, ENHANCED GEOTHERMAL,
ETC. AND THEN, YOU KNOW, THIS
ADOPTED IRP PORTFOLIO IN
ADDITION TO INFORMING THE
DIRECTED PROCUREMENT LOAD,
SERVING ENTITIES Dð, IT ALSO
INFORMS TRANSMISSION PLANNING.
SO WE MAKE SURE TO SEND THIS
INFORMATION TO THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR, AND
IT GUIDES THEM IN THEIR
TRANSMISSION PLANNING WORK THAT
THEY CONDUCT TO ENSURE THAT
SUFFICIENT TRANSMISSION FOR THE
NEW CLEAN RESOURCES THAT WE'RE
EXPECTING ARE BEING ADDED TO THE
SYSTEM AT A SUFFICIENT PACE TO
BE ABLE TO BRING THOSE RESOURCES
TO THE CUSTOMERS. NEXT SLIDE,
PLEASE. SO NOW I'M GOING TO GO
INTO THE DETAILS OF THE CENTRAL
PROCUREMENT OPPORTUNITY IN AB
1373, WHICH WAS ADOPTED LAST
YEAR. AND TO UPDATE YOU ON OUR
PROGRESS, YOU'LL OBSERVE THAT
OFFSHORE WIND IS INCLUDED. BUT
AB 1373 DOES INCLUDE OTHER
RESOURCE TYPES, WHICH I'VE
MENTIONED LIKE ENHANCED
GEOTHERMAL, LONG DURATION ENERGY
STORAGE. SO I JUST WANT TO MAKE
THAT CLEAR THAT IT INCLUDES
OTHER RESOURCE TYPES AS WELL.
NEXT SLIDE. SO AB 1373 BECAME
LAW IN 2023 AND ORDERS THE
PUBLIC UTILITIES COMMISSION TO
ASSESS IF THERE IS A NEED FOR A
CENTRAL PROCUREMENT ENTITY ON
BEHALF OF ALL OF THESE LOAD
SERVING ENTITIES, AND FOR WHAT
QUANTITY AS WELL AS THE RESOURCE
TYPES. THE BILL ALLOWED THE
PUBLIC UTILITIES COMMISSION TO
DESIGNATE THE DEPARTMENT OF
WATER RESOURCES AS THAT ENTITY
TO CONDUCT THAT CENTRAL
PROCUREMENT. SO THE PROCESS THAT
WE HAVE BEEN LEVERAGING HAS
REQUIRED US TO FIRST MAKE A NEED
DETERMINATION. AND THAT HAD TO
BE FINALIZED BEFORE SEPTEMBER
1ST OF 2024, AND THEN WITH THE
ONCE THAT'S ADOPTED, THE PUBLIC
UTILITIES COMMISSION SENDS THAT
SOLICITATION REQUEST TO THE
DEPARTMENT OF WATER RESOURCES SO
THAT IT CAN INITIATE THE CENTRAL
PROCUREMENT PROCESS, WHICH WILL
INCLUDE THE SOLICITATIONS OR
REQUEST FOR OFFER PROCESSES FOR
THE RESOURCES THAT I'LL OUTLINE
IN THE UPCOMING SLIDES. IF
DEPARTMENT OF WATER RESOURCES
DOES PROCURE ON BEHALF OF THESE
LOAD SERVING ENTITIES, THE
PUBLIC UTILITIES COMMISSION IS
RESPONSIBLE FOR ALLOCATING THOSE
COSTS AND BENEFITS ACROSS ALL OF
THE LOAD SERVING ENTITIES.
ANOTHER PIECE OF THIS
LEGISLATION ALSO DOES GIVE
PUBLICLY OWNED UTILITIES THE
OPPORTUNITY TO OPT INTO CENTRAL
PROCUREMENT. SO WE DON'T HAVE,
YOU KNOW, REGULATORY AUTHORITY
OVER THEM, BUT THEY DO HAVE THE
OPPORTUNITY THROUGH THE
LEGISLATION TO OPT IN AND BE
ABLE TO TAKE ADVANTAGE OF THE
CENTRAL PROCUREMENT ENTITY,
BRINGING ON THESE COMPLEX
RESOURCES. NEXT SLIDE PLEASE. SO
NEXT, I'M GOING TO GIVE AN
OVERVIEW OF THE PROPOSED
DECISION THAT MAILED OUT FOR
COMMENT ON JULY 19TH. IT IS
IMPORTANT FOR ME TO BE CLEAR
THAT THIS IS A PROPOSED DECISION
FROM THE ADMINISTRATIVE LAW
JUDGE, AND THAT IT IS SUBJECT TO
STAKEHOLDER COMMENT, THE
OUTCOMES ARE, OF COURSE,
POTENTIALLY SUBJECT TO CHANGE
BASED ON THOSE COMMENTS FROM THE
STAKEHOLDERS, SO LOOKING BACK AT
THE PROCESS. SO FIRST, A RULING
WENT OUT BACK IN APRIL THAT
GARNERED DOZENS OF STAKEHOLDER
COMMENTS. WE ALSO RECEIVED REPLY
COMMENTS, AND WE USED ALL OF
THAT STAKEHOLDER IMPACT INPUT IN
ORDER TO CREATE THIS PROPOSED
DECISION. SO THE PROPOSED
DECISION ADDRESSES, LIKE I SAID
EARLIER, THE NEED DETERMINATION
ON THE TYPE OF RESOURCES AS WELL
AS THE AMOUNTS, AND I'LL GO INTO
THE DETAIL ON WHAT THOSE ARE. IT
ALSO ADDRESSES THE RELATIONSHIP
TO LOAD SERVING ENTITY
PROCUREMENT. SO IT REALLY
DESCRIBES HOW THE COMMISSION
WILL TAKE INTO ACCOUNT THIS
ADDITIONAL PROCUREMENT BEING
DONE BY AN ENTITY THAT'S NOT A
LOAD SERVING ENTITY. AND HOW IT
FEEDS INTO OUR MODELING, BECAUSE
IT WILL INFORM THE MODELING THAT
WE DO GOING FORWARD. IT ALSO
TALKS ABOUT THE PROCUREMENT
PROCESS. SO THE TIMELINE THAT
WE'RE EXPECTING DEPARTMENT OF
WATER RESOURCES TO DO THE
PROCUREMENT AS WELL AS
ALLOCATION OF BOTH THE COSTS AND
THE BENEFITS TO THOSE LOAD
SERVING ENTITIES, CUSTOMERS.
NEXT SLIDE PLEASE. SO FIRST I
WANTED TO TALK ABOUT THAT NEED
DETERMINATION PIECE. SO THE
PROPOSED DECISION MAKES A NEED
DETERMINATION FOR CERTAIN
RESOURCE TYPES FOR CONSIDERATION
FOR CENTRAL PROCUREMENT BASED ON
WHAT WAS PERMITTED IN ASSEMBLY
BILL 1373. THE PROPOSED DECISION
DEFINES THE NEED DETERMINATION
AS THE MAXIMUM VALUE TO BE
PROCURED BY THE CENTRAL
PROCUREMENT ENTITY FOR A GIVEN
RESOURCE TYPE OR ATTRIBUTE FOR
THOSE WHO ARE WHO ARE
PARTICIPATING AND WATCHING THIS
PROCESS IN THE LEGISLATURE LAST
YEAR, THAT WAS A KEY COMPONENT.
HAVING GUARDRAILS ON WHAT THE
DEPARTMENT OF WATER RESOURCES
WAS. WOULD WOULD POTENTIALLY GO
OUT AND PROCURE, AS A REMINDER,
DEPARTMENT OF WATER RESOURCES IS
NOT REQUIRED TO PROCURE THE FULL
AMOUNT OF ANY OF THESE
RESOURCES. THEY COULD EVEN
PROCURE AS LITTLE AS ZERO. BUT
THE GOAL IS THAT THEY DO THIS
PROCUREMENT. BUT THE REASON I
RAISED THAT IS, YOU KNOW, AS
ASSEMBLY MEMBER HART MENTIONED,
AS WELL AS ASSEMBLY CHAIR
PETRIE-NORRIS, THERE ARE A LOT
OF RATEPAYER IMPACTS TO THIS
PROCUREMENT. AND SO THOSE COSTS
WILL BE TAKEN INTO CONSIDERATION
BEFORE ANY KIND OF CONTRACTS ARE
FINALIZED. AND SO, AND THIS IS
REALLY AN AN IMPORTANT THING TO
NOTE BECAUSE AFFORDABILITY IS A
VERY KEY PART OF ANY KIND OF
PROCUREMENT THAT THE PUBLIC
UTILITIES COMMISSION IS
OVERSEEING. THE PROPOSED
DECISION ALSO FOCUSES ON
EMERGING TECHNOLOGIES THAT ARE
NOT ALREADY BEING PROCURED IN
LARGE QUANTITIES BY THE LOAD
SERVING ENTITIES. OFFSHORE WIND
IS A KEY EXAMPLE OF THAT. WE
HAVE NOT HAD ANY PROCUREMENT OF
OFFSHORE WIND AT THIS POINT,
WHICH IS WHY IT'S REALLY
IMPORTANT THAT WE HAVE THIS
MECHANISM TO SUPPORT US BEING
ABLE TO MOVE FORWARD ON THIS
RESOURCE. THIS IS AN IMPORTANT
POINT BECAUSE WE'RE NOT TRYING
TO HAVE DEPARTMENT OF WATER
RESOURCES TAKE OVER THE ROLE OF
UTILITIES, CCAS, ESPS, AND I
KNOW MANY PEOPLE ARE SENSITIVE
TO THAT FACT. SO THAT'S NOT WHAT
WE'RE DOING HERE. ALL OF THOSE
ENTITIES HAVE BEEN DILIGENTLY
PROCURING RESOURCES, BUT DUE TO
SOME OF THE COMPLEXITIES AND
COSTS OF THAT PROCUREMENT,
THEY'VE LARGELY BEEN PROCURING
SOLAR LITHIUM ION BATTERIES,
CONVENTIONAL GEOTHERMAL, ONSHORE
WIND, ETC. THESE ENTITIES WILL
CONTINUE TO DO THE MAJORITY OF
THE ELECTRICITY PROCUREMENT.
WE'RE FOCUSING ON KEY RESOURCES
THAT MODELING HAS DETERMINED WE
NEED TO REACH OUR GREENHOUSE GAS
EMISSION REDUCTION GOALS AND
MAINTAIN RELIABILITY THAT HAVE
NOT YET BEEN PROCURED. SO GOING
INTO THE NUMBERS OF THE NEED
DETERMINATION. SO THE FIRST WAS
UP TO ONE GIGAWATT OF ENHANCED
GEOTHERMAL RESOURCES AND
ENHANCED GEOTHERMAL. IT DIFFERS
FROM TRADITIONAL GEOTHERMAL
BECAUSE IT USES ADDITIONAL
TECHNOLOGIES TO USE MAN MADE
RESERVOIRS THAT ARE ABLE TO
CREATE GEOTHERMAL IN MORE AREAS.
IN CALIFORNIA, WHICH IS A REALLY
ADDED BENEFIT TO BRINGING THIS
BASELOAD TYPE OF RESOURCES TO
THE, TO THE GRID. NEXT IS LONG
DURATION ENERGY STORAGE. AND
THERE ARE TWO TYPES OUTLINED IN
THE PROPOSED DECISION. SO ONE IS
UP TO ONE GIGAWATT OF 12 HOUR
DURATION LONG DURATION ENERGY
STORAGE. THIS IS REALLY KEY, WE
HAVE BEEN SEEING A LOT OF
PROCUREMENT OF FOR OUR
BATTERIES, LITHIUM ION BATTERIES.
SOMETIMES ENTITIES WILL STACK
THOSE BATTERIES AND CALL THEM
EIGHT HOUR BATTERIES. THEY'RE
STILL FOUR HOUR BATTERIES. AND
SO WE WERE REALLY SPECIFIC THAT
THAT ONE GIGAWATT NEEDS TO BE OF
12 HOURS OR MORE DURATION, THE
NEXT IS ONE GIGAWATT OF
MULTI-DAY LONG DURATION ENERGY
STORAGE. SO I THINK MANY OF YOU
KNOW THAT THERE ARE TECHNOLOGIES
OUT THERE THAT ARE REALLY ABLE
TO PROVIDE ALMOST A SEASONAL
LEVEL OF ENERGY STORAGE. AND
THEN LAST BUT NOT LEAST, IS
OFFSHORE WIND. AND SO THE
PROPOSED DECISION OUTLINES UP TO
7.6GW OF OFF SHORE WIND AS PART
OF THE ROLE OF THE CENTRAL
PROCUREMENT ENTITY, THERE WILL
BE MORE OFFSHORE WIND TO
PROCURE. AND WE DO HOPE THAT OUR
LOAD SERVING ENTITIES ARE ABLE
TO DO THAT PROCUREMENT. BUT THIS
IS REALLY KICKING THINGS OFF TO
KICK OFF THE INDUSTRY. SO GOING
TO THE NEXT SLIDE. SO I JUST
WANT TO BRIEFLY TALK ABOUT THE
RELATIONSHIP TO ALL OF THAT LOAD
SERVING ENTITY PROCUREMENT. I
HAVE BEEN ALLUDING TO IT
THROUGHOUT THE PRESENTATION, BUT
IT IS AN IMPORTANT AND SENSITIVE
ISSUE, SO FOR THIS LOAD SERVING
ENTITIES. SO THE CCAS, THE
UTILITIES AND THE ELECTRIC
SERVICE PROVIDERS, THEY WILL NOT
BE ABLE TO OPT OUT OF THIS
PROCUREMENT. THIS IS A KEY PART
OF THE CENTRAL PROCUREMENT
ENTITY THAT WE ARE GOING TO BE
LEVERAGING THESE ECONOMIES OF
SCALE TO BRING ON LARGE, COMPLEX
RESOURCES WHERE RATEPAYERS WOULD
BENEFIT FROM THE ECONOMY OF
SCALE. THE IMPROVED FINANCING
COSTS, AS WELL AS THE
COORDINATED EFFORT OF CENTRAL
PROCUREMENT. THE CENTRAL
PROCUREMENT ENTITY WILL BE THAT
PROCUREMENT WILL BE CONSIDERED
DISTINCTLY, BUT COMPLEMENTARY TO
CURRENT AND FUTURE IRP
PROCUREMENT AND WHAT WE'LL BE
DOING SO THAT WE DID THIS
DECISION NOW BY SEPTEMBER. BUT
AS I SAID, WE HAVE A TWO YEAR
IRP PLANNING CYCLE PROCESS, AND
SO WE CAN DO FURTHER PROCUREMENT
THROUGH THE CENTRAL PROCUREMENT
ENTITY THROUGH THAT MODELING
PROCESS, GOING FORWARD. BECAUSE
THERE IS, A DURATION THAT'S
ALLOWED THROUGH THE, THE, THE
BILL. NEXT SLIDE PLEASE. SO THIS
SLIDE DETAILS MORE ON ON THE
TIMELINES FOR THE PROCUREMENT
PROCESS. SO THE PROPOSED
DECISION PROPOSES THAT
SOLICITATIONS BE CONDUCTED IN
MULTIPLE ROUNDS WITH THE INITIAL
SOLICITATION BEING FOR, THE FULL
NEED, DETERMINATION, QUANTITY
AND REMAINING SOLICITATIONS
BEING FOR ANY RESIDUAL QUANTITY
THAT HAS NOT BEEN PROCURED IN
THOSE INITIAL ROUNDS. SO WE
START WITH LONG DURATION ENERGY
STORAGE AND ENHANCED GEOTHERMAL
WITH TWO ROUNDS, AND OFFSHORE
WIND WILL GET THREE ROUNDS.
AFTER THE INITIAL SOLICITATION
OF THE ABOVE TWO CATEGORIES AND
THE SIZE AND SCOPE OF OFFSHORE
WIND DOES HAVE THAT ADDED
COMPLEXITY, AND THE EXPERIENCES
GARNERED FROM LONG DURATION
ENERGY STORAGE AND ENHANCED
GEOTHERMAL ARE REALLY GOING TO
SUPPORT A STRONG OFFSHORE WIND
SOLICITATION PROCESS. NEXT SLIDE.
SO THIS SLIDE JUST OUTLINES THE
NEXT STEPS. LIKE I MENTIONED
EARLIER, THE PROPOSED DECISION
WENT OUT FOR COMMENT ON JULY
19TH AND OUR INITIAL ROUND OF
COMMENTS CAME IN ON AUGUST 9TH.
AND WE HAD REPLIES THAT CAME IN
JUST YESTERDAY. REPLY. COMMENTS.
THE COMMENTS HAVE BEEN VERY
ROBUST. WE RECEIVED 41 COMMENTS
AND, 29 REPLY COMMENTS. AND SO
WE'RE REALLY GOING THROUGH ALL
OF THOSE, TO BE ABLE TO SEE, YOU
KNOW, ANY FEEDBACK THAT WE
RECEIVED ON THE PROPOSED
DECISION. AND THE PLAN IS FOR
THIS TO BE VOTED ON AT THE
AUGUST 22ND VOTING MEETING IN
ORDER TO MEET THE SEPTEMBER
FIRST STATUTORY DEADLINE. THANK
YOU. THANK YOU, ALL RIGHT,
BEFORE WE OPEN UP FOR QUESTIONS,
WE'RE GOING TO WELCOME OUR,
ADDITIONAL THREE PANELISTS.
WE'RE HEARING FROM A NUMBER OF
STAKEHOLDERS WHO ARE PLAYING A
ROLE IN BUILDING OUT
CALIFORNIA'S FLOATING OFFSHORE
WIND ECOSYSTEM. WE ARE WELCOMING
TYLER STUDDS FROM GOLDEN STATE
WIND. SAM COHEN FROM THE SANTA
YNEZ BAND OF CHUMASH INDIANS,
AND ROB HELMAND HOMELAND FROM
THE HUMBOLDT BAY HARBOR
DISTRICT. SO WELCOME. THANK YOU
SO MUCH FOR BEING HERE, MR.
STUDDS. WE'LL TURN IT OVER TO
YOU. GOOD AFTERNOON, AND THANK
YOU FOR THIS OPPORTUNITY. CHAIR
PETRIE-NORRIS TO ADDRESS YOU,
THIS IS AN IMPORTANT OPPORTUNITY
TO TALK ABOUT OFFSHORE WIND. I'M
TYLER STUDDS. I'M THE CEO OF
GOLDEN STATE WIND. WE ARE ONE OF
THE FIVE PROJECTS THAT WAS
AWARDED LEASES IN THE 2022
AUCTION. WE'RE A PRODUCT OF
OCEAN WIND'S A GLOBAL A GLOBAL
OFFSHORE WIND DEVELOPER
SPECIALIZING IN FLOATING
OFFSHORE WIND WITH OPERATIONAL
PROJECTS AROUND THE WORLD. AS
ONE OF THE FIRST FIVE LESSEES,
I'M GOING TO TALK TODAY ABOUT
WHAT'S ESSENTIAL FOR
ACCELERATING THESE PROJECTS.
THESE FIRST FIVE PROJECTS, AS
ESSENTIAL TO THE SUCCESS OF THE
INDUSTRY AS A WHOLE. GLOBALLY,
OFFSHORE WIND HAS BECOME A
COMPETITIVE, SCALABLE, POWERFUL
SOURCE OF RENEWABLE ENERGY. IT'S
A PROVEN TECHNOLOGY AND AN
ESTABLISHED GLOBAL MARKET. IN
CALIFORNIA, OFFSHORE WIND IS A
MASSIVE SOURCE OF LOCALLY
GENERATED RENEWABLE ENERGY,
CARBON FREE ELECTRICITY THAT CAN
BE DEVELOPED AT SCALE. THE
RESOURCE HAS EXCELLENT QUANTITY
AS WELL AS QUALITY QUANTITY IN
THAT IT IS COMPARABLE TO SOME OF
THE BEST SITES IN EUROPE, AND
IT'S QUALITY IS. IT BLOWS WHEN
IT'S NEEDED AND IT BALANCES OUT
SOLAR RESOURCES TOWARDS THE END
OF THE DAY AND IN THE EVENING,
OFFSHORE WIND CAN BE DEVELOPED
AND OPERATED RESPONSIBLY TO
ENSURE EQUITY AND ENVIRONMENTAL
STEWARDSHIP. THIS IS A NEW
INDUSTRY WITH A GENERATIONAL
OPPORTUNITY TO CREATE JOBS AND
GENERATE CLEAN ENERGY AT SCALE.
AND THE VALUE PROPOSITION IS
CLEAR, BUT IT IS BY NO MEANS
GUARANTEED. THERE'S AN URGENCY
FOR SUSTAINED, UNWAVERING
COMMITMENT TO ADVANCE THIS
IMPORTANT RESOURCE. SO TO START,
AS A PERSPECTIVE ON WHAT IS
NEEDED, WHEN I WANT TO TALK AT A
HIGH LEVEL ABOUT THE TIMING AND
TIMELINE OF THESE PROJECTS, A
NUMBER OF SPEAKERS HAVE ALREADY
MENTIONED THE DECEMBER 2022
AUCTION, AND THAT OUR LEASES
BECAME EFFECTIVE JUNE 1ST OF
2023 UNDER THE BOEM REGULATIONS.
WE HAVE FIVE YEARS TO COMPLETE,
PERMITTING AND SUBMIT A
CONSTRUCTION OPERATION PLAN. THE
PERMITTING REVIEW TIME FRAME
WILL TAKE UP TO TWO AND A HALF
YEARS. AND THEN PRIOR TO THAT,
WHEN WE ARE FOLLOWING THAT, ONCE
WE ARE APPROVED, OUR
CONSTRUCTION OPERATION PLANS
WILL GO TO CLOSE FINANCING AND
BEGIN CONSTRUCTION BY IDEALLY
THE END OF THIS DECADE TO BRING
PROJECTS ONLINE. BY THE EARLY
2030S. SO A KEY SUCCESS FACTOR
FOR OFFSHORE WIND IN THE US AND
AROUND THE WORLD HAS BEEN
CONSISTENT, STRONG STATE
LEADERSHIP THAT IS CERTAINLY THE
CASE HERE AS WELL. AND I WANT TO
HIGHLIGHT TO DATE OR THINGS THAT
ARE OUR FOCUS FOR TODAY ARE
PROCUREMENT, PERMITTING AND
PORTS. AND WITH TIME, I'LL KEEP
WITH THE P'S AND TALK ABOUT
PEOPLE. SO OFFSHORE WIND
PROJECTS ARE LARGE, CAPITAL
INTENSIVE AND HAVE LONG
DEVELOPMENT TIMELINES FOCUSING
ON PROCUREMENT FIRST AND
FOREMOST. SO BANKABLE PPAS TO
SECURE FINANCING WITH
CREDITWORTHY OFF TAKERS ARE A
CORNERSTONE OF BUILDING THESE
LARGE, CAPITAL INTENSIVE
PROJECTS. AS MR. TESFAI JUST
MENTIONED, AB 1373 ESTABLISHES
THAT FOUNDATION FOR CENTRAL
PROCUREMENT, AND WE THANK THE
LEGISLATURE FOR YOUR LEADERSHIP
TO PASS. 1373 THE RECENT
PROPOSED DECISION RECOMMENDS IT
ESTABLISHES THE NEED FOR
PROCUREMENT AT 7.6GW. SO THE
CENTRAL PROCUREMENT IS A CORE
TOOL TO DRIVE THE MARKET
TRANSFORMATION THAT IS NEEDED TO
DELIVER OFFSHORE WIND ENERGY AT
SCALE. THAT IS NOT ONLY ONE TO
PROVIDE FINANCING WITH
CREDITWORTHY OFF TAKERS, WHICH
IS ESSENTIAL, BUT ALSO TO
PROCURE IT AT SCALE TO JUSTIFY
INVESTMENTS IN ENABLING
TECHNOLOGIES AND ENABLE
INFRASTRUCTURE SUCH AS PORTS AND
TRANSMISSION. SO, SIMILAR TO
CALIFORNIA'S INVESTMENT IN THE
PAST IN GROWING CLEAN ENERGY
RESOURCES, INDUSTRIES LIKE SOLAR
AND STORAGE SIMILARLY CAN BE
DONE WITH CENTRAL PROCUREMENT.
NOW TO PROCURE AT SCALE TO
PROVIDE A SUFFICIENT QUANTITY
AGAIN TO JUSTIFY THE INVESTMENT
IN THE RESOURCE AND INVESTMENT
IN THE INFRASTRUCTURE, BUT ALSO
TO SET A TRAJECTORY FOR DRIVING
DOWN COSTS OVER TIME. WE
RECOMMEND THAT THE PROPOSED
DECISION BE ADOPTED, AND THAT IS
A CRITICAL TOOL TO ENABLING THIS
RESOURCE TO GO FORWARD,
PERMITTING. SO OFFSHORE WIND
PROJECTS ARE SUBJECT TO RIGOROUS
MULTIYEAR ENVIRONMENTAL REVIEW
UNDER BOTH NEPA AND CEQA, IT IS
ESSENTIAL TO ENSURE TIMELY
DEVELOPMENT OF OFFSHORE WIND
THAT THE STATE HAS A
COORDINATED, COMPREHENSIVE AND
EFFICIENT REVIEW AND APPROVAL
PROCESS THAT INCLUDES TIMEFRAMES
AND MILESTONES. THE AB 525
PERMITTING ROADMAP ESTABLISHES A
NOTIONAL PERMITTING PROCESS THAT
WOULD COMMIT THE STATE TO
DEFINING THE KEY ROLES OF
AGENCIES PROVIDING CRITICAL
TIMEFRAMES AND FORUM FOR
ADDRESSING ANY POTENTIAL
DISAGREEMENTS OR ISSUES ALONG
THE WAY. WE BELIEVE AS AN
INDUSTRY THAT THIS IS CRITICAL
TO IMPLEMENT THESE
RECOMMENDATIONS AS A CORE
COMPONENT OF DEVELOPING THAT
KEY, PERMITTING PATHWAY. NOTHING
AT THE MOMENT, NOTHING NEW IS
RECOMMENDED TO BE NEEDED.
IMPLEMENTING THE RECOMMENDATIONS
OF 525 IS CRITICAL, SPECIFICALLY
THAT FEDERAL AND STATE AGENCIES
ENTER INTO MOUS AS SOON AS
POSSIBLE THAT ESTABLISH SHARED
TIMELINES, AGENCY ROLES AND
JURISDICTIONS. COMMUNICATION
PROTOCOLS AND DISPUTE RESOLUTION
RESOLUTION PROCESSES.
ADDITIONALLY, IT'S CRITICAL TO
ENSURE THAT THERE IS ADEQUATE
AND SUFFICIENT FUNDING TO STATE
AGENCIES TO BE ABLE TO PERFORM
THOSE ROLES THROUGH TIME AND TO
BE ABLE TO CONDUCT THOSE
RIGOROUS ENVIRONMENTAL REVIEWS
IN A TIMELY MANNER. DELAYS IN
THE PERMITTING PROCESS WILL HAVE
EQUAL DELAYS TO THE PROJECT
TIMELINES, AND BEING ABLE TO
COME ONLINE PORTS, THE
IMPORTANCE OF PORT
INFRASTRUCTURE, THE CONSTRUCTION
OFFSHORE WIND IS CRITICAL.
WITHOUT PORTS, OFFSHORE WIND
DOES NOT HAPPEN. THE CRITICAL
NEED, FIRST AND FOREMOST IS
DEVELOPING STAGING AND
INTEGRATION PORTS. THESE ARE
LARGE PORTS WHERE COMPONENTS
WILL BE DELIVERED AND LAID OUT.
WHERE THE FOUNDATIONS WILL BE
ANCHORED AT THE KEY SIDE AND
INSTALL AT THE TOWERS, AND
TURBINES AND BLADES WILL BE
INSTALLED AT THE PORT SIDE.
THESE PORTS ARE NOT CURRENTLY
AVAILABLE IN CALIFORNIA, AND
THERE IS NO SUBSTITUTE FOR THE
SERVICES THAT THEY PROVIDE. SO
THE TWO KEY FOCUSES HERE ARE I'M
SURE WE'LL HEAR ABOUT PORT OF
HUMBOLDT, AS WELL AS THE PORT OF
LONG BEACH. THESE ARE TWO KEY
SITES FOR THE ESTABLISHMENT OF
STAGING AND INTEGRATION PORTS.
AGAIN, THERE IS NO SUBSTITUTE
FOR THESE PORTS IN CALIFORNIA,
IN 2022, THE LEGISLATURE
APPROVED INCLUDED $45 MILLION TO
FUND PORT DEVELOPMENT. THAT
MONEY IS CRITICAL TO BE DEPLOYED
NOW TO ENABLE PORTS TO BE
DEVELOPED. I SAY THIS
SPECIFICALLY FOR THE PORT OF
LONG BEACH. THEY HAVE BEEN
SELF-FUNDING THEIR EFFORTS TO
DATE SO FAR TO ADVANCE THE PIER
NGUYEN PROJECT, AND IT'S
CRITICAL THAT THIS MONEY GETS
OUT THE DOOR AS QUICKLY AS
POSSIBLE, AND IDEALLY BEFORE THE
END OF THIS YEAR. SO WE WELCOME
THE LEGISLATURE TO PROVIDE
DIRECTION TO THE ENERGY
COMMISSION TO ENSURE THAT THAT
FUNDING GETS DEPLOYED AS SOON AS
POSSIBLE. RECENTLY, OCEAN WINDS
HAD THE PLEASURE OF HOSTING A
DELEGATION OF CALIFORNIA
LEGISLATORS TO ONE OF ITS PORTS
IN SCOTLAND, DEVELOPING AND
SUPPORTING DEVELOPMENT OF ITS
MORAY EAST PROJECT. MORAY WEST
PROJECT. THEY SAW FIRST HAND THE
SIZE OF THE COMPONENTS, BLADES,
TOWERS AND THE CELLS AND THE
SCALE OF PORTS NEEDED TO DEPLOY
THEM. WE HAD THE BENEFIT ALSO OF
HAVING A ROUNDTABLE WITH LOCAL
GOVERNMENT TO UNDERSTAND WHAT
HAD WORKED FOR THEM AND THEIR
EXPERIENCES DEVELOPING PORTS,
AND ONE MESSAGE WAS CLEAR THAT
THEY WISHED THEY HAD STARTED
EARLIER. SO KEY TOOLS TO MOVE
FORWARD ARE TO ENSURE THAT $45
MILLION GETS OUT THE DOOR, AND
ALSO THAT WE AS VOTERS CAN PASS
THE CLIMATE BOND. AND THANK YOU
FOR YOUR LEADERSHIP. ALSO IN
GETTING THAT TO THE POINT WHERE
IT'S GOING TO VOTE. SO LAST
PEOPLE. SO PROJECTS ARE BUILT BY
PEOPLE. I SAY THIS OFTEN AND I
SAY THIS TO MY TEAM THAT IN
ADDITION TO BEING REALLY GOOD AT
WHAT WE DO IN OUR SPECIFIC
ACCOUNTABILITIES, IT'S CRITICAL
TO THE SUCCESS OF OUR PROJECT.
AND INDUSTRY, OF HOW WE WORK
TOGETHER THROUGH CONDUCTING
DIRECT, OPEN, HONEST
CONVERSATIONS THAT WE ACHIEVE
JUST, EQUITABLE AND SUSTAINABLE
OFFSHORE WIND PUT INTO PRACTICE.
WE HAVE NOW DEDICATED STAFF
MEMBERS FOR TRIBAL ENGAGEMENT,
FISHERIES ENGAGEMENT AND LOCAL
COMMUNITY ENGAGEMENT, I OFTEN
SAY THAT WE HAVE TWO EARS AND
ONE MOUTH, AND THAT SHOWS THAT
WE'RE PRIORITIZING IT REALLY IS
A REFERENCE TO HOW WE PRIORITIZE
LISTENING AND UNDERSTANDING WHAT
ARE THE CHALLENGES WE NEED TO
MEET AND HOW WE ADDRESS THEM, I
REALLY APPRECIATE THIS
OPPORTUNITY TO SPEAK TO YOU, AND
I THINK LOOK FORWARD TO
CONTINUING TO WORK TOGETHER TO
HELP ADVANCE OFFSHORE WIND AS A
CRITICAL SOURCE OF MEETING
CALIFORNIA'S GOALS AND DRIVING
JOBS AND ECONOMIC DEVELOPMENT.
THANK YOU. THANK YOU, MOVING TO
OUR NEXT SPEAKER, MR. COHEN.
THANK YOU, GOOD AFTERNOON. MY
NAME IS SAM COHEN. I'M THE
GOVERNMENT AFFAIRS AND LEGAL
OFFICER FOR THE SANTA YNEZ BAND
OF CHUMASH INDIANS. WE'VE HAD
SORT OF AN AMBIVALENT
RELATIONSHIP WITH THE OCEAN FOR
THE LAST TEN YEARS. WE STARTED
WITH THE MARINE LIFE PROTECTION
ACT, WHICH WE THOUGHT WASN'T
GOING ANYWHERE UNTIL
THEN-GOVERNOR SCHWARZENEGGER
DECIDED TO MAKE THAT HIS LEGACY.
AND HE STARTED IN LOMPOC OF ALL
PLACES, AND HE CUT OFF FISHING
RIGHTS AND THEN HEADED NORTH AND
CUT OFF FISHING RIGHTS FOR TRIBE
AFTER TRIBE UNTIL HE FINALLY GOT
TO HUMBOLDT, ACTUALLY. AND THE
HUMBOLDT TRIBES ARE FIERCE, AND
THEY DISRUPTED THE MEETING. THEY
THREW A CHAIR THROUGH THE WINDOW
AND THEY SAID, YOU HAVE TO MAKE
EXCEPTIONS FOR TRIBES TO HAVE
SUBSISTENCE FISHING. SO THEN
THEY, THE FISH AND GAME
COMMISSION, WENT SOUTH BACK TO
SOUTHERN CALIFORNIA, WHERE THEY
CUT OFF OUR FISHING RIGHTS
AGAIN. BUT AT THAT TIME WE HAD A
DIRECTOR OF THE CALIFORNIA
NATURAL RESOURCES AGENCY, JOHN
LAIRD, WHO IS GOOD ENOUGH TO
GIVE US FOR CHUMASH MARINE
PROTECTED AREAS, ACTUALLY, STATE
MARINE CONSERVATION AREAS IN THE
CHANNEL ISLANDS, WHICH IS THE
TRADITIONAL HOME OF THE CHUMASH
PEOPLE. AROUND THE SAME TIME,
THEY STARTED ON THE CHUMASH
HERITAGE, NATIONAL MARINE
SANCTUARY. WE ONLY HEAR GREAT
THINGS ABOUT IT TODAY, BUT AT
THE BEGINNING, THE ACTUAL COUNTY
OF SAN LUIS OBISPO OPPOSED IT.
REMEMBER, THEY HAD A REPUBLICAN
MAJORITY AND THEY WERE CRUSHING
IT. ALL RIGHT. SO AT THE FIVE
YEAR REVIEW, OUR NEW CONGRESSMAN,
SALUD CARBAJAL, ASKED THE SANTA
YNEZ CHUMASH TO INTERVENE AND
GET THIS BACK ON TRACK. AND I AM
PLEASED TO SAY THAT HOPEFULLY
BEFORE NOVEMBER FIFTH, WE WILL
HAVE A CHUMASH HERITAGE NATIONAL
MARINE SANCTUARY. BUT AS IF WE
WEREN'T BUSY ENOUGH ALONG CAME
OFFSHORE WIND AND OF COURSE THEY
HAD TO START IN MORRO BAY. ALL
RIGHT, NOW MORRO ROCK IN MORRO
BAY IS LIKE ONE OF THE TOP TWO
MOST SACRED SITES FOR ALL THE
CHUMASH PEOPLE AND SOME OF THE
SALINIAN PEOPLE. AS WELL. SO WE
WERE INSTANTLY ALARMED. SO OUR
TOP PRIORITY NOW IS RESPONSIBLE
DEVELOPMENT OF OFFSHORE WIND AND
THE PROTECTION OF TRIBAL
CULTURAL RESOURCES. THEY PUSHED
THE OFFSHORE WIND TURBINES 16
MILES OFF FROM THE COAST. BUT IT
MAY NOT BE ENOUGH, AND WE'RE
GOING TO HAVE TO WORK ON THAT.
OUR CURRENT MODEL FOR PROTECTION
OF CULTURAL RESOURCES IS TRIBAL
MONITORS. IT'S LAND BASED,
RIGHT? TRIBAL MONITORS LOOK AT
EVERY SHOVEL YOU PICK UP AND SEE
IF THERE'S TRIBAL CULTURAL
RESOURCES. WHAT? WE NEED A NEW
MODEL, BECAUSE NOW WE'RE DOING
UNDERWATER SURVEYS. RIGHT. AND
SO WE NEED NEW TRIBAL EXPERTS
THAT WE HAVE TO HIRE RIGHT IN
WHO CAN LOOK AT THE DATA IN REAL
TIME. SO SANTA YNEZ CHUMASH HAS
SET UP THE SANTA YNEZ CHUMASH
OCEANOGRAPHIC INSTITUTE AND HAS
HIRED ITS FIRST MARINE ECOLOGIST
AND ITS FIRST UNDERSEA
ARCHEOLOGIST. BUT THE VIABILITY
OF THE INSTITUTE WILL RELY ON
CONTRIBUTIONS FROM THE OFFSHORE
WIND LEASE HOLDERS. JUST AS THE
DEVELOPERS PAY FOR TRIBAL
MONITORS WHEN THEY'RE WORKING ON
LAND. ALL RIGHT, THE ALTERNATIVE
TO NOT HAVING TRIBAL UNDERWATER
MONITORS IS FOR THE TRIBES TO
REJECT THE DATA. ALL RIGHT, SO
WHAT? THERE IS NO POINT OF DOING
FIVE YEARS OF UNDERWATER SURVEYS
WHEN THE TRIBES REJECT THE DATA
BECAUSE THEY WERE NOT THEY DID
NOT PARTICIPATE IN COLLECTION OF
THE DATA AND REAL TIME REVIEWS.
SO WE ASK YOUR ASSISTANCE. THEY
CALL THESE COMMUNITY BENEFIT
AGREEMENTS. THEY CALL THEM
TRIBAL BENEFIT AGREEMENTS. WE
USED TO CALL THEM MONITORING
CONTRACTS ON LAND. AND WE HAVE
REACHED OUT TO ALL THREE OF THE
MORRO BAY LEASES AND WE WILL
CONTINUE TO TRY TO GET SOME SORT
OF STRUCTURE ESTABLISHED. THANK
YOU. THANK YOU. OUR FINAL
SPEAKER, MR. HOLLAND, THANK YOU
FOR BEING HERE. THANK YOU FOR
HAVING ME. IT'S AN HONOR TO BE
HERE, IN THE PAST TWO AND A HALF
YEARS OF MANAGING HUMBOLDT'S
PROJECTS TO DEVELOP A HEAVY LIFT
MARINE TERMINAL IN HUMBOLDT BAY.
I'VE HAD THE HONOR OF STANDING
BEFORE SEVEN DIFFERENT TRIBAL
GOVERNMENTS, MULTIPLE COMMUNITY
GROUPS. THAT LED TO ONE OF THE
TRIBES ASKING ME TO SUPPORT THEM
IN A RESOLUTION THAT THE STATE
WAS ENTERTAINING ABOUT MISSING
AND MURDERED INDIGENOUS PEOPLE.
SO I CAME AND MARCHED ON THE
CAPITOL WITH MULTIPLE TRIBES.
AND YOU KNOW THAT ULTIMATELY
SOMEHOW LED TO ME GOING TO
NORWAY TWICE TO PRESENT AT
CONFERENCES THERE AND TO SEE THE
FIRST OFFSHORE WIND TURBINES TO
EVER BE DEPLOYED IN THE WORLD
THAT HAD BEEN IN THE WATER FOR
OVER TEN YEARS, GO BACK TO
NORWAY AGAIN AND SEE THE FIRST
TIME EVER THAT A WIND TERMINAL
WAS TOWED FROM THE OCEAN BACK
INTO A PORT TO BE REPAIRED. SO
IT'S BEEN AN INCREDIBLE JOURNEY
AND IT'S AN HONOR TO BE HERE
BEFORE YOU. I WANT TO OPEN BY
TALKING ABOUT LAND BASED WIND
TURBINES VERSUS OCEAN WIND
TURBINES. SO RIGHT NOW, THE
LARGEST WIND TURBINE IN THE
WORLD IN THE OCEAN, THE
CURRENTLY EXISTS NOT TALKING
ABOUT FUTURE WIND TURBINES, THE
ONE THAT'S CURRENTLY THE LARGEST
IN THE WORLD IN THE OCEAN IS
MORE THAN TWICE THE SIZE OF WIND
TURBINES THAT ARE CURRENTLY ON
LAND, AND THAT WILL ALWAYS BE
THE CASE. LAND BASED WIND
TURBINES WILL ALWAYS BE SMALLER,
AND PROBABLY MORE THAN TWICE AS
SMALL AS OCEAN BASED TURBINES.
AND THE REASON COMES DOWN TO
TRANSPORTATION. SO REALLY LARGE
LAND BASED WIND TURBINES, YOU
HAVE TO MOVE THE BLADES ONE AT A
TIME BY TRUCK, AND THERE'S JUST
AN UPPER LIMIT OF HOW LONG THEY
CAN BE BEFORE YOU CAN'T MOVE
THEM ANYMORE. BUT IF YOU
MANUFACTURE THAT EQUIPMENT IN A
PORT, THEN YOU CAN MOVE
EVERYTHING BY SHIP AND YOU CAN
GET REALLY MUCH LARGER EQUIPMENT
ONTO SHIPS AND MOVE IT AROUND.
THE PRICE YOU HAVE TO PAY IS
THAT ALL OF YOUR MANUFACTURING
FACILITIES HAVE TO BE IN PORTS.
AND RIGHT NOW, IN THE US, WE'RE
NOT MANUFACTURING WIND TURBINES
IN PORTS. AND SO WE'RE TALKING
ABOUT COMPLETELY RECONFIGURING
NOT ONLY OUR ENERGY SYSTEM, BUT
OUR PORT INFRASTRUCTURE TO
SUPPORT ENERGY. AND THAT
REQUIRES CUSTOM TERMINALS. SO WE
CAN'T JUST MODERATELY MODIFY
EXISTING PORT TERMINALS. WE'RE
TALKING ABOUT COMPLETELY
CREATING NEW PORT TERMINALS. SO
THIS REQUIRES PUBLIC
INFRASTRUCTURE. IN THE CASE OF
HUMBOLDT BAY IS A GOOD EXAMPLE.
OUR SITE HAS 160 PLUS ACRES OF
TERMINAL AREA. THE WHARVES OR
THE DOCKS OR THE LARGE CONCRETE
DOCKS TAKE UP LESS THAN 8% OF
THAT TOTAL, BUT THEY CONSTITUTE
OVER TWO THIRDS OF THE TOTAL
COST OF THOSE WHARVES ARE
ENTIRELY IN STATE WATERS,
MANAGED BY THE HUMBOLDT BAY
HARBOR DISTRICT IN TRUST ON
BEHALF OF THE STATE SINCE THE
1970S. SO WHAT WE'RE TALKING
ABOUT IS $1 BILLION OF
INVESTMENT IN THIS PORT
INFRASTRUCTURE, THE VAST
MAJORITY OF WHICH IS ON STATE
LANDS, IN STATE WATERS AND SO,
THAT'S, PUBLIC INFRASTRUCTURE
THAT IS REQUIRED TO ENABLE THE
DEVELOPMENT OF OFFSHORE WIND TO
MEET THAT TIMELINE. WE HAVE TO
INITIATE THIS PUBLIC INVESTMENT
EARLY IN THE TIMELINE SO THAT
THE PRIVATE SECTOR CAN COME IN
BEHIND AND DO A LOT OF
INVESTMENT THAT THEY REQUIRE.
BUT THAT FOUNDATIONAL PUBLIC
INFRASTRUCTURE INVESTMENT ON
STATE LANDS IN WATERS OF THE
STATE IS REALLY THE CRITICAL
FIRST STEP. AND THAT STORY OF
HUMBOLDT BAY IS COMMON TO ALL OF
THE PORTS OF CALIFORNIA. ALL OF
THE WHARVES, WHICH IS THE
MAJORITY OF THESE COSTS THAT
WE'RE TALKING ABOUT IN PORTS ARE
GOING TO BE IN THE WATERS OF THE
STATE, MANAGED ON BEHALF OF THE
STATE BY THESE PORT AUTHORITIES.
SO THE HUMBOLDT BAY HEAVY LIFT
MARINE TERMINAL PROJECT, SO FAR,
WE'VE RECEIVED $426 MILLION IN
FEDERAL GRANTS FOR THE
CONSTRUCTION OF THIS SITE,
ANOTHER 8 MILLION FROM MÀ FOR
PERMITTING AND DESIGN, AND 10.5
MILLION FROM THE CALIFORNIA
ENERGY COMMISSION, WHICH PUTS
HUMBOLDT FAR AHEAD OF THE OTHER
PORTS. AS FAR AS FUNDING GOES,
WHICH HAS GIVEN US A HEAD START
IN PERMITTING AND DESIGN. SO
WE'RE WELL INTO THAT PROCESS. WE
COULD BE AS CLOSE TO A YEAR AWAY
FROM FINALIZING ALL OF OUR
PERMIT CEQA AND NEPA, AND OF
THAT TOTAL 450 MILLION, WE HAVE
DEDICATED 70 MILLION OF THAT TO
COMMUNITY BENEFITS DIRECTLY IN
HUMBOLDT BAY. SO ENVIRONMENTAL
RESTORATION TRAIL PROJECTS FOR
RESIDENTS OF THE NEIGHBORHOODS
NEAR THE PROJECT SITE, A
COMMUNITY BENEFIT PROGRAM
EXPLICITLY TARGETING RESIDENTS
WITHIN THREE MILES OF THE SITE.
TRIBES AND FISHERMEN, AND A LOT
MORE. SO TO ZOOM OUT A LITTLE
BIT, IN ORDER FOR OFFSHORE WIND
TO HAPPEN, AS MY COLLEAGUE
INDICATED, PORT PROJECTS ARE
CRITICAL, BUT THERE'S REALLY
GOING TO BE THREE TYPES OF PORT
TERMINALS THAT ARE NEEDED. ONE,
WE HAVE TO MAKE THE PARTS. SO
THOSE ARE MANUFACTURING
FACILITIES IN PORTS, MAKING THE
BLADES THE NACELLES, THE TOWERS,
THE FLOATING FOUNDATIONS,
WHEREVER THOSE ARE MANUFACTURED,
SAY THE BLADES ARE MANUFACTURED
IN SAN FRANCISCO TOWERS AND
MANUFACTURED IN SAN DIEGO,
WHEREVER THOSE ARE MANUFACTURED,
ALL OF THOSE PARTS HAVE TO END
UP ON SHIPS, AND ALL OF THOSE
SHIPS HAVE TO END UP IN A SINGLE
LOCATION SO THAT IT CAN ALL BE
ASSEMBLED. THAT IS THE STAGING
AND INTEGRATION FACILITY. SO YOU
NEED A LOT OF AREA WHERE THE
PARTS CAN BE PICKED UP OFF THE
SHIP AND LAID DOWN IN A LARGE
YARD, AND THEN YOU NEED THE
STRONGEST WHARVES TO EVER BE
CONSTRUCTED IN NORTH AMERICA TO
LIFT ALL OF THIS STUFF UP. AND
BUILD THE WIND TURBINES IN THE
WATER OF A PROTECTED BAY. AND
THEN FROM THERE IT CAN BE TOWED
OUT TO SEA. THEN THE THIRD TYPE
OF PORT TERMINAL THAT'S REQUIRED
ARE THOSE THAT HOST THE SHIPS
THAT DO OPERATION AND
MAINTENANCE OF THE EFFECTIVELY
POWER PLANTS IN THE OCEAN. ALL
THREE OF THOSE ARE IMPORTANT,
BUT WITHOUT STAGING AND
INTEGRATION. THAT SECOND PORT
TERMINAL TYPE, YOU REALLY JUST
CAN'T HAVE OFFSHORE WIND. SO OF
COURSE WE WANT THE PARTS
MANUFACTURED IN CALIFORNIA, BUT
THEORETICALLY THEY COULD BE
MANUFACTURED IN OTHER PORTS
THROUGHOUT THE PACIFIC AND
SHIPPED TO THE STAGING
INTEGRATION SITES AS I ANALYZE
THIS AND SEE IT MORE, WE REALLY
NEED TO INVEST EARLY WITH PUBLIC
MONEY INTO THE STAGING
INTEGRATION SITES TO ENABLE
PRIVATE FUNDING IN THE
MANUFACTURING AND OPERATION, AND
MAINTENANCE FACILITIES. EACH OF
THOSE THREE TYPES OF PORT
FACILITIES REQUIRE DIFFERENT
TIMELINES. THEY HAVE DIFFERENT
NEEDS AND DIFFERENT LEVELS OF
CRITICALITY. AND JUST TO
CONCLUDE HERE ON TIMELINE, THE
PERMITTING AND DESIGN PROCESS
FOR A PORT TERMINAL PROJECT OF
THIS MAGNITUDE IS IN THE 3 TO 6
YEAR RANGE. THEN YOU HAVE AN
ADDITIONAL 3 TO 6 YEARS OF
CONSTRUCTION. SO WE'RE TALKING
ABOUT HUNDREDS OF NEW PILES
BEING DRIVEN. AND WHATEVER BAY
YOU'RE WORKING IN CALIFORNIA,
THERE'S GOING TO BE LIMITED
WINDOWS WHERE YOU CAN DO PILE
DRIVING TO AVOID IMPACTS TO
ENDANGERED SPECIES. IN HUMBOLDT
BAY, THERE'S ONLY A THREE AND A
HALF MONTH WINDOW WHERE WE CAN
DO PILE DRIVING. SO EVEN UNDER
THE BEST CASE SCENARIO, WE'RE
TALKING ABOUT THREE YEARS OF
CONSTRUCTION MINIMUM FOR JUST
THE PHASE ONE OF THE PROJECT.
RIGHT NOW, WE'RE ON TRACK TO BE
OPERATIONAL IN HUMBOLDT BAY AS
EARLY AS 2030, AND WE'RE VERY
SUPPORTIVE OF ALL OF THE OTHER
PORT PROJECTS BEING PROPOSED IN
ALL OF THE OTHER PORTS OF
CALIFORNIA. WE DO NOT SEE THE
OTHER PORTS OF CALIFORNIA AS
COMPETITION. WE OPERATE UNDER A
PHILOSOPHY THAT THERE'S ENOUGH
WIND TO GO AROUND WHAT THERE'S
NOT ENOUGH TO GO AROUND RIGHT
NOW IS MONEY. SO ALL OF THE
PORTS NEED PUBLIC INVESTMENT.
THANK YOU. THANK YOU. AND THANK
YOU TO ALL OF OUR PANELISTS, I
THINK, FOR SETTING A REALLY
ROBUST FOUNDATION FOR OUR
DISCUSSION AND QUESTIONS. I'LL
GO AHEAD AND OPEN IT UP FOR
MEMBER QUESTIONS. ASSEMBLY.
PARDON. ASSEMBLY MEMBER BENNETT
AND WE'RE WELCOMING ASSEMBLY
MEMBER BENNETT IS, THE CHAIR OF
THE ASSEMBLY'S BUDGET
SUBCOMMITTEE ON NUMBER FOUR ON
THE CLIMATE CRISIS. RESOURCES,
ENERGY AND TRANSPORTATION. THANK
YOU FOR JOINING US. THANK YOU,
THREE QUICK QUESTIONS. ONE, JUST
TWO OF THEM ARE JUST, YOU KNOW,
VERY BASIC AS WE SAW, THE
TEMPERATURE CHARTS INDICATING
TEMPERATURES GOING UP, IS THAT
LIKELY TO INCREASE WIND OR
DECREASE WIND, MAKE THE WIND
MORE ERRATIC. WHAT CAN YOU TELL
US ABOUT WHAT SHOULD WE BE
EXPECTING 50 YEARS DOWN THE ROAD
IN TERMS OF WIND? AND I'LL TAKE
BOTH EXPERTS HERE. RIGHT. I'LL
JUST JUMP IN. GO AHEAD, I GUESS
THE SHORT ANSWER IS WE DON'T
KNOW. THAT'S WHAT I THOUGHT.
THERE ARE. YEAH THERE ARE, THERE
ARE, BUT THERE IS. BUT THERE IS
RESEARCH AND SCIENCE, UNDERWAY
TO ADDRESS THAT QUESTION. GREAT.
OKAY. AND THEN THE SECOND THING
IS FOR THE CPUC, YOU TALKED
ABOUT REPLY COMMENTS. WHAT'S A
REPLY COMMENT VERSUS A COMMENT.
OH SURE, AND GOOD TO SEE YOU
AGAIN. YOU KNOW, WE SPEND A LOT
OF TIME ON THIS TOPIC LAST
SESSION, SO ALL THE PARTIES
SUBMIT THEIR INITIAL COMMENTS
AND THEN THEY GET TO SEE WHAT
EVERYONE ELSE HAS SAID AND REPLY
TO THEM. SO, LET'S SAY, YOU
KNOW, ONE, ONE PARTY OR
STAKEHOLDER MADE A COMMENT ABOUT
WHAT THEY THOUGHT SOMETHING IN
THE DECISION WAS IF SOMEONE
DISAGREED WITH THAT, THEY HAVE
ONE MORE BITE AT THE APPLE, TO
MAKE ANOTHER COMMENT. THANK YOU.
AND THEN, JUST I THINK PROBABLY
FOR HUMBOLDT, BUT I, I KNOW
WE'RE ALL FOCUSED. RIGHT NOW ON
GETTING THESE THINGS CONSTRUCTED
AND GETTING THE PORT
INFRASTRUCTURE THAT WE NEED. HOW
ABOUT THE ISSUE OF OPERATION AND
MAINTENANCE OF ALL OF THESE? IS
THAT PART OF YOUR PLANNING AND
DEVELOPMENT ALSO, OR IS THAT
GOING TO BE A LATER STAGE OR
LATER PHASE IN THIS PROCESS? AND
IF THE IF YOU COULD ADDRESS THAT
ALSO WE'D APPRECIATE THAT. YEAH.
THANK YOU, SHORT ANSWER IS YES.
IT'S PART OF OUR CURRENT PLANS.
OPERATION AND MAINTENANCE REALLY
FALLS INTO TWO CATEGORIES. ONE
IS THE DAY TO DAY OPERATION
MAINTENANCE, WHICH REQUIRES
SPECIALIZED VESSELS TO COME AND
GO FROM PORTS WITH SPECIALISTS
THAT GO OUT TO SEA. AND I THINK
MY COLLEAGUE COULD PROBABLY
SPEAK TO THAT BETTER. THE SECOND
AND MORE COMPLICATED TYPE OF
OPERATION MAINTENANCE IS WHEN A
TURBINE NEEDS TO BE TOWED BACK
INTO PORT TO HAVE A MAJOR
COMPONENT REPLACED, AND BOTH
LONG BEACH AND HUMBOLDT'S
PROJECTS ARE PERFECTLY SUITED TO
DO THAT. IN ADDITION, COULD ALSO
SUPPORT THE FIRST TYPE GREAT IN
TERMS OF TIMING FOR WHEN O&M
BASES WILL BE SITED. THEY'RE
TYPICALLY LATER IN THE PROJECT
DEVELOPMENT CYCLE. SO I THINK AS
WAS MENTIONED MULTIPLE TIMES,
THE STAGING INTEGRATION PORTS
ARE MISSION CRITICAL, RIGHT NOW.
O&M PORTS HAVE SMALLER
FOOTPRINTS, ARE LESS COMPLEX TO
DEVELOP, AND CAN BE TYPICALLY
SITED AND LATER IN THE
DEVELOPMENT CYCLE. GREAT. THANK
YOU. PLEASED TO BE JOINED BY THE
CHAIR OF OUR SELECT COMMITTEE ON
OFFSHORE WIND ENERGY IN
CALIFORNIA. THANK YOU. ASSEMBLY
MEMBER ARDIS FOR BEING HERE.
THANK YOU. AND THANK YOU SO MUCH,
CHAIR, FOR HOSTING THIS HEARING.
AND TO ALL OF THE PANELISTS AND
MY COLLEAGUES, THIS IS TRULY A
KITCHEN TABLE ISSUE IN MY
COMMUNITY BECAUSE I LIVE IN
MORRO BAY. I WENT TO HSU. WE
HAVE FAMILY WHO ARE INTIMATELY
CONNECTED WITH TULUWAT ISLAND AS
WELL. AND SO A LOT OF
CONVERSATION AROUND, SHOULD
OFFSHORE WIND HAPPEN. IS
OFFSHORE WIND THE RIGHT WAY TO
GO? WHAT'S GOING TO HAPPEN TO
THE ENVIRONMENT? AND SO A LOT OF
WHERE MY EFFORTS HAVE BEEN HAVE
BEEN AROUND TALKING ABOUT THE
WHY OF OFFSHORE WIND AND HOW WE
HAVE FACED EXTREME HEAT,
ATMOSPHERIC RIVERS, THE DANGERS,
THE TRUE DANGERS OF OIL AND GAS
THAT WE CAN'T GET AWAY FROM IF
WE DON'T INVEST INTO NEW
TECHNOLOGIES. OFFSHORE WIND
BEING CRITICALLY IMPORTANT AS
ONE OF THOSE TECHNOLOGIES AND SO
I'M VERY OPTIMISTIC FOR THE
FUTURE OF OFFSHORE WIND IN
CALIFORNIA. AND ALSO WANT TO
APPRECIATE THAT WE HAVE TO KEEP
SCIENCE AT THE HEART OF THIS,
THAT WE HAVE TO KEEP TRIBAL
NATIONS AT THE HEART OF THIS,
THAT WE HAVE TO KEEP LOCAL
COMMUNITIES AND THEIR NEEDS AT
THE HEART OF WHAT WE'RE DOING.
AND SO WE WERE VERY PROUD TO
BRING 3.6 MILLION TO THE OPC TO
SET UP THE SCIENCE MONITORING
ENTITY PROUD, AND WANT TO THANK
OUR PARTNERS IN THE WIND
INDUSTRY FOR SUPPORTING AB 2537
TO BUILD A COMMUNITY CAPACITY
BUILDING FUND, AND I THINK WE'RE
CLOSE TO GETTING THAT OVER THE
HUMP. I WANT TO THANK MY
COLLEAGUES WHO HAVE BEEN
CHAMPIONS ON THE PORT SIDE, AND
GLAD THAT THE 45 MILLION CAME.
ALSO SIGNED ON TO SUPPORT THAT
45 MILLION. BUT WAS WONDERING,
AND I KNOW IT'S NOT THE SPECIFIC
FOCUS OF THIS HEARING, FOR MR.
COHEN, BUT ALSO FOR MR. STUDDS,
IF YOU CAN. YOU MENTIONED MR.
STUDDS AROUND EQUITY AND
ENVIRONMENT, AND MR. COHEN
AROUND, WHAT RESPONSIBLE
DEVELOPMENT LOOKS LIKE. AND IF
BOTH OF YOU COULD EXPAND A
LITTLE BIT, MAYBE, MR. COHEN
FIRST, IF THERE'S ANYTHING ELSE
YOU CAN SHARE WITH US AROUND
YOUR THINKING ON RESPONSIBLE
DEVELOPMENT. AND I KNOW YOU
MENTIONED THE OCEAN MONITORING
IS AN ABSOLUTE MUST. AND THEN
MAYBE, MR. STUDDS, AROUND EQUITY
AND ENVIRONMENT AND YOUR
THINKING ON THAT. WELL AT THE
OUTSET, NATIONAL MARINE
SANCTUARIES DON'T GO WELL WITH
OFFSHORE WIND. ACTUALLY, NO
UNDERWATER STRUCTURES ARE LEGAL
IN A NATIONAL MARINE SANCTUARY.
ISOLATED CABLES CAN GET AN ARMY
CORPS PERMIT IN A NATIONAL
MARINE SANCTUARY. BUT, THREE
LEASES OF PULLING, MAYBE 70
CABLES, THAT'S A LOT OF VIOLENCE
TO A NATIONAL MARINE SANCTUARY.
SO WE WERE FORCED TO LOWER THE
NORTHERN BOUNDARY OF THE
NATIONAL MARINE SANCTUARY, TO
BELOW, DIABLO CANYON TO GET TO
TAKE ADVANTAGE OF THAT
INFRASTRUCTURE. SO, SO THAT THAT
WAS OUR CONTRIBUTION TO MAKING
IT WORK. WE WOULD LIKE TO
PARTICIPATE IN THESE UNDERWATER
SURVEYS, BECAUSE IF THE BOAT
GOES OUT FOR THREE MONTHS AND
COMES BACK WITH THREE MONTHS OF
DATA, AND WE'VE FOUND AN
UNDERWATER VILLAGE, WELL, THAT'S
JUST WAY TOO LATE. ALL RIGHT. WE
NEED TO BE ABLE TO HAVE REAL
TIME MONITORING OF THE
UNDERWATER SUBMERSIBLE. AND
THERE'S ALSO GOING TO BE THE
WHEN THE CABLES HIT LAND,
THEY'RE ACTUALLY THEY'RE
ACTUALLY GOING TO NEED ACTUAL
MONITORS. SO THE TRIBE IS TRYING
TO GEAR UP WITH THE NECESSARY,
ONE, MARINE ECOLOGISTS AND
UNDERWATER ARCHEOLOGISTS SO THAT
WE CAN BE PART OF THAT PROCESS.
AND WE I DON'T I DON'T KNOW IF
IT'S CUTE OR NOT, BUT IT'S THE
SENIORS. CHUMASH OCEANOGRAPHIC
INSTITUTE. YEAH SO WE SAID. SO
WHAT IS RESPONSIBLE? OFFSHORE
WIND DEVELOPMENT REQUIRES A
NUMBER OF COMPONENTS, INCLUDING
A COMMITMENT TO DOING BEST
AVAILABLE SCIENCE IN THE
PERMITTING PROCESS, IMPLEMENTING
AND FOLLOWING A RIGOROUS
PERMITTING AND ENVIRONMENTAL
REVIEW PROCESS, AND AN
UNWAVERING, SUSTAINED COMMITMENT
TO DOING BROAD OUTREACH AND
EDUCATION TO ENSURE THAT THERE
IS CLEAR UNDERSTANDING OF
IMPACTS THAT WE ARE
UNDERSTANDING HOW BEST TO AVOID
AND MINIMIZE AND MITIGATE THOSE
IMPACTS. I'LL GIVE 2 OR 1
EXAMPLE OF HOW WE'VE GONE ABOUT
THAT, OUR WE'VE LISTENED LOUD
AND CLEAR TO TRIBAL MEMBERS AND
MY GRATEFUL FOR MY CONVERSATIONS
WITH MR. COHEN THAT HAVE HELPED
US UNDERSTAND HOW BEST WE
ADDRESS SOME OF THESE CAPACITY
ISSUES. SO WE'RE DOING THAT IN
THREE WAYS. NUMBER ONE, AS AN
INDIVIDUAL DEVELOPER, WE'VE
APPROPRIATED SOME MONEY TO
COMPENSATE FOR MEETING TIME,
THAT IS KIND OF FIRST AND
FOREMOST FOR OUR OUTREACH
ENGAGEMENT. NUMBER TWO, WE ARE
LOOKING COLLECTIVELY AS THE
OFFSHORE WIND INDUSTRY AND
DEVELOPERS AT HOW WE CAN BUILD
BROADER CAPACITY TO SUPPORT
TRIBAL PARTICIPATION IN THE
PERMITTING PROCESS. IT IS A LONG
AND DETAILED PROCESS. IF DONE
RIGHT, AND WE WANT TO MAKE SURE
THEY HAVE A FORMAL ROLE TO PLAY.
WE WANT TO MAKE SURE THAT THEY
HAVE THE CAPACITY AND ABILITY TO
MEANINGFULLY AND PRODUCTIVELY
PARTICIPATE IN THAT. AND NUMBER
THREE, AS MR. COHEN MENTIONED,
WE WANT TO CREATE OPPORTUNITIES
FOR TRIBES TO PARTICIPATE IN THE
PERMITTING AND REVIEW OF
PROJECTS AS WELL. THAT INCLUDES
PROVIDING TRAINING TO TRIBAL
MONITORS FOR BOTH REVIEW OF
OFFSHORE DATA. WE ALSO ON THE
EAST COAST OCEAN WINDS, HAVE
DEVELOPED A TRAINING PROGRAM TO
TRAIN TRIBAL MEMBERS TO BE
PROTECTED SPECIES OBSERVERS,
WHICH ARE REQUIRED TO BE LOCATED
ON OUR SURVEY VESSELS. OUR
SURVEY VESSEL IS CURRENTLY DOING
SURVEYS IN OUR FEDERAL LEASE
AREA. RIGHT NOW WITH PROTECTED
SPECIES OBSERVERS. THOSE
TRAININGS WOULD ALLOW TRIBAL
MEMBERS TO GAIN THOSE
QUALIFICATIONS TO PARTICIPATE IN
CONDUCTING THOSE SURVEYS. SO
THAT'S THOSE ARE A CORE
COMPONENT, NUMBER TWO, WE
CONDUCTED A TOUR OF OUR
GEOPHYSICAL SURVEY VESSEL IN THE
PORT OF HUENEME IN EARLY JULY.
THIS WAS A DAY LONG EVENT
ATTENDED BY TRIBAL MEMBERS. THE
STATE LANDS COMMISSION, COASTAL
COMMISSION, ENERGY COMMISSION,
BOEM AND BESSIE AND LABOR. IT
WAS AN OPPORTUNITY TO PROVIDE
INFORMATION ABOUT THE TECHNOLOGY
ITSELF, WHICH IS SOMEWHAT
COMPLEX, AND THERE'S A LOT OF
MISINFORMATION OUT THERE. WE'RE
ABLE TO PROVIDE A TOUR TO HELP
FOLKS UNDERSTAND WHAT IS THE
TECHNOLOGY, HOW IS IT USED, HOW
IS IT BEING ENVIRONMENTALLY AND
RESPONSIBLY PERMITTED AND
OPERATED AND ULTIMATELY, WHAT IS
ITS IMPORTANT ROLE TO THE
PERMITTING AND DESIGN OF
SUSTAINABLE AND RESPONSIBLE
OFFSHORE WIND? SO IT WAS AN
INCREDIBLE INVESTMENT OF
RESOURCES OF OUR TIME, AND THAT
WAS WELL WORTH IT. IN TERMS OF
HAVING THAT BROAD LEVEL OF
ENGAGEMENT TO DEMYSTIFY
TECHNOLOGY AND HELPING TO BRING
EVERYBODY ALONG ON THE SAME PAGE
TO ENSURE THAT IT'S UNDERSTOOD
AND IT IS ABLE TO GO FORWARD
EXPEDITIOUSLY. SO BRIEFLY, FOR
OUR PORT, THANK YOU. THANK YOU,
MR. COHEN. THANK YOU, MR. SETH,
FOR PORT COMMISSIONER, IS THERE
I MEAN, YOU'RE VERY MUCH ON THE
FRONT END OF THIS, BUT ANY TIPS
FOR COMMUNITIES THAT ARE JUST
STARTING THE CONVERSATION? I
KNOW HUMBOLDT AND LONG BEACH
NEED TO GO FIRST, FOR OBVIOUS
REASONS THAT WE'VE TALKED ABOUT,
BUT THERE WILL BE OTHER PORTS,
AS YOU MENTIONED, DEVELOP ACROSS
THE STATE OF CALIFORNIA. ANY
TIPS AS THEY'RE BEGINNING TO
THINK ABOUT HOW THEY MIGHT
ENGAGE AND BUILD CAPACITY TO
ENGAGE IN THESE CONVERSATIONS?
YEAH. THANK YOU. I CONCUR WITH
WITH BOTH OF THEIR TESTIMONIES
ON THE TOPIC. DEVELOPING IN
PORTS ISN'T NEW, SO THERE'S LOTS
OF PORT TERMINALS THAT HAVE BEEN
DEVELOPED THROUGHOUT CALIFORNIA
FOR THE PAST 30 YEARS. AND SO
IT'S LIKE ANY PROCESS OF
DEVELOPING A BIG PORT TERMINAL,
YOU HAVE TO ENGAGE WITH THE
COMMUNITY EARLY AND OFTEN START
WITH THE TRIBES. AND THAT'S A
LOT OF CONVERSATIONS. AND MY
EXPERIENCE SO FAR. EACH TRIBE
WANTS TO BE COMMUNICATED WITH
INDEPENDENTLY. SO LUMPING YOU
KNOW, TRIBES TOGETHER IS
TYPICALLY NOT A GOOD APPROACH.
AND EACH ONE OF THOSE GROUPS HAS
DIFFERENT INTERESTS. AND SO IT
TAKES YOU KNOW, IT TAKES REAL
COMMITMENT FROM THE BEGINNING TO
WANT TO ENGAGE WITH PEOPLE AND
UNDERSTAND, WHAT PEOPLE'S
CONCERNS ARE AND HOW THOSE CAN
BE ALLEVIATED. THERE'S ALSO THE
DIFFICULT REALITY THAT WHEN
YOU'RE TALKING ABOUT A BIG
INDUSTRIAL PORT FACILITY,
THERE'S NOT A LOT OF ROOM FOR
CREATIVITY. SO, YOU KNOW, A LOT
OF PEOPLE WANT TO DO MEETINGS
WITH MAPS ON THE WALL AND STICKY
DOTS AND GET REALLY DEEPLY
INVOLVED. BUT, YOU KNOW, IT'S
LIKE A 6000 SF WHARF HAS GOT TO
BE IN A SPECIFIC SPOT, AND
THERE'S NOT A LOT OF ROOM TO
MOVE IT AROUND, SO I THINK BEING
HONEST WITH PEOPLE, RIGHT UP
FRONT IS AN IMPORTANT PART OF
THAT AS WELL. THANKS YEAH. THANK
YOU. AND ASSEMBLY MEMBER PAPAN
IS THE CHAIR OF THE ASSEMBLY'S
WATER PARKS AND WILDLIFE
COMMITTEE. THANK YOU SO MUCH FOR
JOINING US. THANK YOU FOR HAVING
ME, MADAM CHAIR, AND THANK YOU
FOR YOUR WORK ON THIS, AND I DO
COME TO YOU FRESH OFF THE HEELS
OF THE RELEASE OF THE PORT
SELECT COMMITTEE REPORT, WHICH
HAS BEEN MANY MONTHS IN THE
MAKING, AND, I FEEL QUITE,
OPTIMISTIC THAT THE PORTS WILL
STEP UP TO EMBRACE THIS NEW
CHALLENGE. AND, IT'S QUITE
EXCITING STUFF, BUT I CAN
APPRECIATE THE RESTRICTED
FOOTPRINT AND I VERY MUCH THANK
YOU FOR YOUR TESTIMONY, BECAUSE
IT WAS VERY VIVID IN HOW TIGHT
THIS IS GOING TO BE AND WHAT'S
REALLY GOING TO BE EXPECTED OF
OUR PORTS. AND I AGREE WITH YOU.
THE PORTS DO WORK TOGETHER IN
THEIR ENDEAVORS. SO EVEN THOUGH
THERE'S COMPETITION AMONG THE
PORTS, THEY CERTAINLY WORK
TOGETHER. I HAVE JUST ONE QUICK
QUESTION. I WON'T TAKE UP TOO
MUCH TIME. WE'VE TALKED A LITTLE
BIT ABOUT COORDINATING,
PERMITTING AND PERHAPS MAYBE
EVEN SOME CONSOLIDATION ALONG
THE WAY. WE'LL SEE WHAT HAPPENS,
BUT MY QUESTION IS, AND I DON'T
KNOW WHO'S PROBABLY MORE ADEPT,
I'M LOOKING MORE AT THESE
REGULATORY FOLKS. IS THERE HOW
MUCH OF THE PERMITTING PROCESS
DO YOU THINK COULD HAPPEN
CONCURRENTLY? BECAUSE
ULTIMATELY, AS YOU SO ELOQUENTLY
STATED, WE'VE GOT A SHORTAGE OF
MONEY. AND SO MY FEELING IS IF
WE CAN KIND OF DO SOME OF THIS
WORK, EITHER IN A CONSOLIDATED
FASHION OR CONCURRENTLY WILL
THAT ULTIMATELY SAVE US SOME
MONEY? YOU DON'T HAVE TO ANSWER
THE MONEY PART. I'M THINKING
ABOUT THE MONEY PART, BUT AND WE
HAVE A LOVELY CHART I SAW IN IN
THIS WONDERFUL REPORT THAT WAS
ISSUED. BUT I'M JUST WONDERING,
CAN YOU ELABORATE A LITTLE BIT
ON THE ABILITY TO, TO DO THINGS
CONCURRENTLY? WELL, I THINK, AND
I'M JANA GAGNON, SENIOR ADVISOR
FOR OFFSHORE WIND IN THE NEWSOM
ADMINISTRATION, I THINK THAT,
PERMITTING WILL BE HAPPENING
CONCURRENTLY. AND SO THE THERE
WILL BE OVERLAPS BETWEEN THE
WIND FARMS, THE PORTS, THE
TRANSMISSION, THE SUPPLY CHAIN
PIECES, AND THAT PERMITTING IT
DOESN'T LINE UP IN A IN A, YEAH,
IN A LINEAR FASHION. IT WILL BE
OVERLAPPING. SO, THE AB 525
STRATEGIC PLAN FOR OFFSHORE WIND
ENERGY AND THAT CHART, THAT
WHERE THAT CHART COMES FROM,
OUTLINES THE BEGINNINGS OF THE
STRUCTURE THAT'S BEEN UTILIZED
IN CALIFORNIA IN THE PAST TO
COORDINATE, THOSE PERMITTING
CYCLES AND, AND ADDRESS WHERE
THEY'RE HAPPENING
SIMULTANEOUSLY. AND SO THE WORK
IN FRONT OF US IS TO IMPLEMENT,
TAKE THE NEXT STEP ON THAT PLAN
AND TO REALLY LOOK DEEPLY AT
THAT STRUCTURE AND MAKE SURE WE
UNDERSTAND ALL THE LESSONS
LEARNED FROM HOW THE DESERT
ROUTE WAS, WAS IMPLEMENTED IN
THE PAST, AND BENEFITS REALIZED
IN THAT SPACE. AND, MAKE SURE
THAT THE PERMITTING EXPERTS ON
THE STATE SIDE HAVE A REAL
OPPORTUNITY TO DESIGN, THE NEXT
ITERATION OF A COORDINATED
STRUCTURE THAT WILL WORK. AND I
CAN SPEAK TO THE TRANSMISSION
PERMITTING COMPONENT. SO THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION DOES THE PERMITTING
FOR THE ON LAND TRANSMISSION. SO
NOT THE TURBINES THEMSELVES, AND
THERE ARE TWO IMPORTANT THINGS.
SO ONE, WE ARE CLOSELY TRACKING
THE CALIFORNIA INDEPENDENT
SYSTEM OPERATORS TRANSMISSION
PLANNING PROCESS. I THINK, YOU
KNOW, THAT THERE WERE TWO LINES
THAT WERE IDENTIFIED THERE. AND
SO NOW, THERE WILL BE A
SOLICITATION PROCESS TO IDENTIFY
WHO WILL BE DEVELOPING THOSE.
AND SO WE ARE CLOSELY MONITORING
THAT AND IN COORDINATION WITH
THE SYSTEM OPERATOR. AND THEN IN
TANDEM TO ALL OF THAT, THE
PUBLIC UTILITIES COMMISSION
RIGHT NOW IS GOING THROUGH WHAT
I'VE BEEN CALLING LIKE A ONE
INCH GENERATION ONCE IN A
GENERATION UPDATE TO OUR
TRANSMISSION PERMITTING PROCESS,
AND I SAY THAT BECAUSE THE LAST
TIME WE UPDATED IT WAS AROUND
1995, AND SO WE'RE EXPECTING THE
FINAL UPDATES TO THAT TO HAPPEN
EARLY NEXT YEAR. SO, WELL, IN
ADVANCE OF THIS WHOLE ALL OF
THIS WORK AND SO THAT WILL
SUPPORT OFFSHORE WIND. IT WILL
ALSO SUPPORT ALL THE OTHER
RESOURCE TYPES AS WELL THAT NEED
NEW TRANSMISSION. SO WE'RE YOU
KNOW, THANKS TO SOME
LEGISLATION, WE'RE ABLE TO KICK
OFF THAT WORK IN ADVANCE AND GET
SOME BIG STRIDES DONE SOON. I'LL
JUST BUILD ON THIS TO SAY THAT
THE CONCURRENT REVIEWS ARE
ESSENTIAL. I WOULD FOR
PARTICULARLY STATE AND FEDERAL
REVIEW OF OFFSHORE WIND
PROJECTS. WHAT'S CRITICAL IS
THAT THE STATE PROCESS RESOLVES
AND COMPLETES. AT THE SAME TIME,
OUR FEDERAL REVIEW IS COMPLETE
TO ENSURE THAT OUR PROJECTS ARE
ABLE TO MOVE AHEAD
EXPEDITIOUSLY. SO THE
RECOMMENDATIONS OF FY 25, IN
TERMS OF IMPLEMENTING THOSE MOUS
BETWEEN AGENCIES THAT HAVE
TIMELINES, ROLES,
RESPONSIBILITIES, IT'S CRITICAL
THAT THOSE GET MATCHED UP TO THE
FEDERAL PERMITTING TIME FRAME
THAT IS ADMINISTERED BY BOEM.
AND I'LL JUST ECHO THANK YOU SO
MUCH FOR THE EDUCATION, AS IT
WERE. AND I'LL JUST ECHO THAT
THAT ASSUMES WE GET ALL THE
INPUT FROM ALL THE STAKEHOLDERS
AND WHATNOT. AND I APPRECIATE
THOSE EFFORTS. THANK YOU. THANK
YOU, MADAM CHAIR. AND I THINK
MR. HOLMAN WANTED TO ALSO
RESPOND TO THAT, I BELIEVE.
YEAH, YEAH. YES THANK YOU, I'LL
JUST LET YOU KNOW THAT VERY
PRODUCTIVE MEETINGS ARE
OCCURRING BETWEEN THE PORT OF
HUMBOLDT, THE PORT OF LONG BEACH
AND BOEM TO IDENTIFY WHERE OUR
VARIOUS PROJECTS BEGIN AND END,
BECAUSE THEY WILL HAVE DIFFERENT
CEQA DOCUMENTS, DIFFERENT NEPA
DOCUMENTS. AND THERE IS SOME
OVERLAP BETWEEN HOW A TURBINE IS
MANUFACTURED, TRANSPORTED, AND
THEN CONNECTED AND THOSE ARE
REALLY DIFFERENT PROJECTS AT
DIFFERENT ENDS. AND ONE OF THE
IMPORTANT CONCLUSIONS THAT WE'VE
ALL COME TO IS THE PORT OF
HUMBOLDT PROJECT CAN PRODUCE
WIND TURBINES THAT CAN BE TOWED
TO MORRO BAY OR HUMBOLDT, OR
FUTURE OREGON LEASE AREAS, OR
FUTURE CALIFORNIA LEASE AREAS,
AS WELL AS LONG BEACHES AND SO
THE RELATIONSHIP BETWEEN THE
PORTS AND THE OFFSHORE WIND
FARMS ISN'T A DIRECT 1 TO 1
RELATIONSHIP. IT'S A COMPLEX
WEB. AND SO WE HAVE TO DEFINE
THE BOUNDARIES OF THESE VARIOUS
PROJECTS, EVEN THOUGH THEY HAVE
SOME OVERLAP. AND THAT KIND OF
COORDINATION IS REALLY
IMPORTANT. TRYING TO LUMP THEM
ALL INTO SOME MEGA CEQA
DOCUMENT, I THINK WOULD BE A
MISTAKE, BECAUSE THEY'RE REALLY
INDEPENDENT PROJECTS THAT HAVE
SO MANY INDEPENDENT PARTS THAT
THEY CAN'T BE MERGED INTO A
SINGLE THING. BUT I CAN TESTIFY
SO FAR THE PERMITTING PROCESS IS
GOING REALLY WELL. THANK YOU.
THANK YOU. ASSEMBLY MEMBER WOOD.
THANK YOU, MADAM CHAIR. I JUST
FIRST OF ALL, BEFORE I ASK
QUESTIONS AND I HAVE A FEW SO
YOU CAN GIVE ME THE HOOK
WHENEVER YOU NEED TO. OKAY I
JUST WANT TO COMMEND YOU AND
YOUR STAFF FOR PUTTING THIS
TOGETHER. THE COMPREHENSIVE
NATURE, NATURE AND THE WAY THIS
IS LAID OUT IN A VERY LOGICAL
MANNER, A LOT OF INFORMATION FOR
PEOPLE TO DIGEST. I'VE BEEN
STUDYING THIS FOR THREE YEARS
NOW, AND TODAY I LEARNED A LOT
JUST FROM THE WAY THIS WAS PUT
TOGETHER. SO THANK YOU. I THINK
THIS IS A REAL SERVICE TO THE
COMMITTEE, TO THE COMMITTEES AND
TO THE TO THE INDUSTRY AND OUR
STATE GOVERNMENT FOR, FOR THIS
PROCESS HERE TODAY. SO THANK
YOU. WELL, THANK YOU. I
APPRECIATE THAT. AND ONCE AGAIN,
AS WE AS WE SAID, BUT SOME OF
OUR COLLEAGUES WERE NOT HERE,
KATHLEEN CHEN IS OUR SCIENCE
FELLOW AND SHE'S BEEN A
TREMENDOUS PART OF OUR TEAM OVER
THE COURSE OF THIS SESSION AND
HAS TAKEN THE LEAD ON THIS
HEARING AS WELL AS A NUMBER OF
OTHERS. SO THANK YOU, KATHLEEN.
AS SOMEONE WHO LOVES SCIENCE, I
CAN'T CAN'T THANK YOU ENOUGH. SO
I'M GOING TO KIND OF GO
BACKWARDS A LITTLE BIT BECAUSE
WE TALKED A LITTLE BIT. WE WERE
TALKING A LITTLE BIT ABOUT
TRANSMISSION AND SO, AND THEN
THERE IS A SEQUENCE, THERE IS A,
THERE IS A METHOD TO MY MADNESS
HERE, BUT, BUT JUST ABOUT THREE
WEEKS AGO, A REPORT WAS RELEASED
BY THE BOSTON CONSULTING GROUP
CALLED UNLOCKING CALIFORNIA'S
CLIMATE AMBITION. AND IN THAT
REPORT, ONE OF THE THINGS THAT
WAS NOTABLE TO ME WAS THAT, AND
I WILL QUOTE FROM THE REPORT, SO
THIS IS NOT ME. IT'S NOT
PARAPHRASING ON THE ELECTRIC
SIDE, AVERAGE DEVELOPMENT
TIMELINES FOR MAJOR ELECTRIC
TRANSMISSION, $50, $50 MILLION
OR MORE HAVE NEARLY DOUBLED OVER
THE LAST DECADE, FROM
APPROXIMATELY SIX YEARS TO NOW,
11 YEARS. WE'RE GOING IN THE
WRONG DIRECTION NOW. I KNOW
THERE ARE EFFORTS TO TRY TO REIN
THIS IN A BIT, BUT WHEN YOU
START LOOKING AT TIMELINES HERE
AND ALL THE TIMELINES THAT ARE
BEING DISCUSSED, 11 YEARS IS 20,
35 AND WE'VE HEARD FROM THE
BEGINNING WE WERE GOING TO HAVE
2.5GW BY 2030, AND THEN AT A
PREVIOUS HEARING, IT WAS 2032,
THE PUC, PROCUREMENT DECISION
THAT HASN'T BEEN FINALIZED,
CALLS FOR 7.6GW TO COME ONLINE
AT 2035 TO 2030 TO BEYOND THAT.
AND SO THERE ARE THINGS THAT
DON'T LINE UP HERE. AND WE'VE
GOT WE'VE GOT AN INCREDIBLE
DEVELOPMENT THAT HAS TO HAPPEN
AT PORTS. WE HAVE TO HAVE BUILD
OUT OF THE INFRASTRUCTURE. WE
HAVE TO HAVE A LOT OF
ENVIRONMENTAL. WHAT ARE WE GOING
TO DO AROUND THE TRANSMISSION
PIECE OF THIS? BECAUSE I'VE
TRAVELED TO PORTUGAL, I WENT TO
DUBAI LAST YEAR, I WAS SHOCKED
WHEN SOMEBODY HEARD I WAS FROM
CALIFORNIA AND CAME UP TO ME AND
SAID, THANK YOU FOR 1373. I'M
LIKE, WHO THE HECK ARE YOU? AND
AND WE GOT INTO A DISCUSSION
BECAUSE THE OVERWHELMING THEME
THROUGHOUT EUROPE AND OTHER
PARTS OF THE WORLD WHO IN IN
THIS IS THAT THERE IS NO
TRANSITION TO COMPLETELY GREEN
ENERGY WITHOUT TRANSMISSION. AND
EVEN IN SCOTLAND, THEY ARE
PUTTING THEY'RE PUTTING ALL
THESE, THESE WINDMILLS TOGETHER
AND THE TRANSMISSION PIECE ISN'T
COMPLETE. AND SO MY FEAR IS THAT
AS I HEAR THESE TIMELINES FOR
THE BUILD OUTS, THAT WE'RE GOING
TO HAVE, THE ABILITY TO GENERATE
POWER AND A ROBUST PORT
OPERATION, AND WE'RE STILL GOING
TO BE FIGURING OUT THE
TRANSMISSION PIECE. SO CAN YOU
SAY SOMETHING TO COMFORT ME
HERE? BECAUSE I DON'T I HAVEN'T
BEEN FEELING IT, QUITE FRANKLY,
I DO PERSONALLY. BUT YOU KNOW,
JUST IN GENERAL, I THINK YOU
KNOW, MY CONCERNS. THIS ISN'T
NEW. YEAH. SO TWO PIECES, ONE I
ALREADY REFERRED TO, AND I'LL
GIVE MORE DETAIL ABOUT THE
UPDATES TO THE GENERAL ORDER,
BUT I WANTED TO ACTUALLY FIRST
START, ON THERE HAS BEEN AN
UPDATED MEMORANDUM OF
UNDERSTANDING BETWEEN THE
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR, THE PUBLIC UTILITIES
COMMISSION, AND THE CALIFORNIA
ENERGY COMMISSION IN ORDER TO
BETTER DOVETAIL THE PROCESS OF
PROCUREMENT AND TRANSMISSION
PLANNING AND SO, THROUGH THE
COORDINATION OF INTEGRATED
RESOURCES PLANNING PROCESS AND
THE KAISER'S TRANSMISSION TPP
TRANSMISSION PLANNING PROCESS
WILL BE ABLE TO BETTER INFORM
THE CAISO ABOUT THE ACTUAL
PROJECTS THAT THE LOAD SERVING
ENTITIES ARE BUYING, SO THAT THE
TRANSMISSION IS SPECIFICALLY
READY FOR THOSE PROJECTS. AND
THAT WILL ACTUALLY INCLUDE NOT
JUST INPUT FROM THE AGENCIES,
BUT IT'S INFORMATION THAT IS
BEING GENERATED FROM THE LOAD
SERVING ENTITIES DOING THE
PROCUREMENT THEMSELVES. AND
THAT'S A KEY UPDATE, ANOTHER
PART OF THAT THAT I WANTED TO
MENTION, NOT MY NEWS OR, YOU
KNOW, TO SHARE OR TO, TO, TO
TOUT AS MY OWN ACCOMPLISHMENT.
BUT THE PUBLIC OR THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR
RECENTLY ADOPTED THEIR
INTERCONNECTION PROCESS
ENHANCEMENTS, PACKAGE. AND SO
THEY FILED THAT AT FERC ON
AUGUST 1ST, WHICH REALLY DOES,
PLAY A KEY PART IN HOW OUR
TRANSMISSION PLANNING PROCESS IS
GETTING GENERATION CONNECTED TO
TRANSMISSION. AND SO FERC WILL
BE CONSIDERING THAT AND
HOPEFULLY APPROVING THAT PACKAGE
OF ENHANCEMENTS THAT TIES
GENERATION LIKE OFFSHORE WIND
AND OTHER RESOURCES TO THE
TRANSMISSION. AND THEN THE FINAL
PIECE THAT I WANTED TO HIGHLIGHT
IS THIS UPDATE TO THE GENERAL
ORDER. 131, WE'RE EXPECTING THAT
TO BE APPROVED IN JANUARY OF
NEXT YEAR. AND THIS IS A KEY
PART ON, UPDATING WHAT THESE
TRANSMISSION TIMELINES LOOK LIKE
FOR THE PERMITTING PROCESSES,
FOR THOSE NOT FAMILIAR, WE NOT
ONLY DO WE ISSUE THE PERMIT,
WHICH ALLOWS FOR, YOU KNOW, THE
COST RECOVERY FROM RATEPAYERS,
BUT ALSO INCLUDES THAT SEQUA
PROCESS. AND SO THERE ARE A LOT
OF ENHANCEMENTS THERE THAT WE'RE
REALLY PROUD OF. AND GETTING
STAKEHOLDER COMMENT ON RIGHT NOW
THAT WILL BE ADOPTED EARLY NEXT
YEAR. WELL, IN ADVANCE OF THE
NEED FOR THE OR WELL IN ADVANCE
OF THESE LINES COMING THROUGH
THE PERMITTING PROCESS, JUST A
FURTHER INFORMATION ABOUT THE
NEXT STEPS. SO I HAD MENTIONED
THERE ARE THE TWO LINES THAT THE
CAISO HAS APPROVED, THOSE WILL
NOW GO THROUGH A SOLICITATION
PROCESS THAT THE CAISO MANAGES
SO THAT YOU CAN ACTUALLY
IDENTIFY WHO THAT TRANSMISSION
OWNER IS GOING TO BE, THAT'S
WHERE WE TALK ABOUT COST
GUARDRAILS, SOME COST
GUARDRAILS. THAT WILL BE PART OF
THAT PROCESS. BUT THEN ALSO
INFORMATION ABOUT HOW TO KEEP
THAT TRANSMISSION PROJECT ON
TRACK. AND THERE ARE A LOT OF
VARIABLES. THERE'S PERMITTING,
BUT THERE'S ALSO FINANCING,
CONSTRUCTION, ALL OF THOSE
ELEMENTS THAT GET BUILT INTO
THOSE PROPOSALS, AND WE ARE
WORKING VERY CLOSELY TO TRACK
THAT WITH THE CAISO SO THAT WE
ARE READY TO RECEIVE THOSE
APPLICATIONS AND MOVE ON THEM
EXPEDITIOUSLY. SO, WHILE YOU
HAVE AN MOU AND THIS ISN'T JUST
OFFSHORE WIND, THIS IS
EVERYTHING. EVERYTHING HERE,
WHILE YOU HAVE AN MOU AND THE
THREE AGENCIES ARE WORKING
TOGETHER, WHO'S THE CAPTAIN OF
THE SHIP? AND THAT'S KIND OF THE
POINT OF THE, OF THE STUDY HERE
IS THAT, THAT, WHO IS IN WHO IS
IN CHARGE TO MAKE SURE THAT ALL
OF THESE THINGS ARE ACTUALLY
WORKING? OR ARE YOU ALL RELYING
ON ONE ANOTHER BECAUSE WHERE IS
THE COMMAND AND CONTROL, SO TO
SPEAK? YEAH, SO WE EACH OF OUR
AGENCIES HAS YOU KNOW, A SKILL
LIKE A KEY SKILL SET THAT WE
BRING TO THE TABLE. AND ALL OF
THE PRINCIPALS ARE COORDINATING
ON A WEEKLY BASIS. SO OUR
PRESIDENT, OUR PRESIDENT, THE
CEO OF THE CAISO, THE CHAIR OF
THE ENERGY COMMISSION, MEET ON A
WEEKLY BASIS TO TALK ABOUT HOW
ARE WE MOVING THIS WORK FORWARD.
SO AND THEN, OF COURSE, IN
COORDINATION WITH THE GOVERNOR'S
OFFICE AND IN PARTICULAR WITH
GINA ON OFFSHORE WIND. OKAY,
OKAY. ALL RIGHT. WELL, THANK
YOU. AND THANK YOU I APPRECIATE
THAT. THANK YOU. GOING, AND
FIRST OF ALL, AND I ALSO WANT TO
SAY I VERY MUCH APPRECIATE
SEEING THE PROPOSED DECISION FOR
7.6 THE, THE THAT SENDS A REALLY
STRONG MESSAGE TO INDUSTRY, I
BELIEVE, WHO ARE LOOKING TO
POTENTIALLY INVEST BILLIONS OF
DOLLARS HERE AND WITHOUT THE
POTENTIAL PROCUREMENT, THAT
MAKES IT REALLY DIFFICULT TO
ATTRACT INVESTORS. AND SO THAT
IS A CRITICAL, CRITICAL
DECISION. AND SO I HOPE THAT IS
A FORMALLY ADOPTED, COMING UP
HERE. BUT THAT'S A THAT'S A HUGE
SIGNAL, I THINK, TO, TO, TO
INDUSTRY. SO I'M VERY, VERY
GRATEFUL FOR THAT. THANK YOU.
THANK YOU FOR THAT, THE $45
MILLION FOR PORTS, THAT IS
APPROVED NOW, AND ACTUALLY IT
WAS APPROVED AND NOW IT'S
STAYING IN AT SOME POINT, WE, WE
STRUGGLE IN CALIFORNIA SOMETIMES
TO GET MONEY OUT THE DOOR, AND
THE PORTS ARE GOING TO NEED THIS
MONEY, LIKE, RIGHT AWAY. HOW ARE
HOW ARE WE GOING TO GET THE
MONEY OUT THE DOOR IN A TIMELY
MANNER, AND I AND I AND I SAY
THIS IN ALL SERIOUSNESS, THERE
ARE INSTANCES I CAN GIVE YOU. I
CAN GIVE YOU EXAMPLE AFTER
EXAMPLE OF HOW MONEY'S BEEN
ALLOCATED AND TAKES ONE YEAR,
TWO YEARS OR LONGER FOR THE
MONEY TO GET OUT THE DOOR. SO
CAN YOU GIVE US SOME IDEA OF
WHEN THE MONEY IS ACTUALLY GOING
TO GET OUT THE DOOR SO THEY CAN
GO TO USE FOR THE PORT
DEVELOPMENT THAT'S SO
DESPERATELY NEEDED NOW, SO I'LL
RESPOND BY SAYING THAT THAT
PROGRAM LIVES AT THE CALIFORNIA
ENERGY COMMISSION, THAT THAT IT
WAS UNDERWAY LAST YEAR. SO IT IS
IT IS FULLY UNDERWAY. MY MOST
RECENT, UNDERSTANDING OF THEIR
TIMELINE IS THAT THE, THAT THE
FUNDING OPPORTUNITY WILL BE
ANNOUNCED IN SEPTEMBER, TIME
FRAME, AND THEN THE PROCESS
ROLLS FROM THERE, ACCORDING TO
THEIR, THEIR GRANT MAKING
PROCESSES THAT ARE MORE TYPICAL,
I CAN TELL YOU THAT IT IS A
FOCUS TO TAKE A LOOK AT THAT, TO
SEE IF THERE ARE WAYS TO IMPROVE
THE TIME FRAME THERE. BUT IT IS
IT IS DEFINITELY, A TOPIC OF
DISCUSSION. AND I GUESS THE
POINT IS THAT EACH OF THESE
THINGS THAT TAKE LONGER, FURTHER
DELAYS THE ABILITY TO ACTUALLY
SEE THE SUCCESS THAT WE ALL WANT
TO SEE HAPPEN. SO I JUST PUT
THAT PUT THAT OUT THERE, AND,
AND THANK YOU. THANK YOU FOR
THAT. AND SO AND THEN MY FINAL
COUPLE OF QUESTIONS HERE IS, FOR
WITH MR. BOREN. AND THANK YOU
FOR BEING HERE AND I WANT TO AND
I ALSO IN PREFACE TO THAT, I
WANT TO I WANT TO COMPLIMENT THE
LEASEHOLDERS, CERTAINLY. AND I
KNOW I DON'T HAVE DIRECT
RELATIONSHIPS WITH THE, THE, ALL
THE LEASEHOLDERS, BUT I
CERTAINLY DO, WITH THE ONES IN
OUR AREA. AND I KNOW THAT THEY
HAVE BEEN WORKING. THEY HAVE
TRIBAL LIAISON PEOPLE ON THE
GROUND IN THE COMMUNITIES
WORKING WITH INDIVIDUAL TRIBES.
AND I THINK THAT'S A REALLY
IMPORTANT, CRITICAL, STEP. AND I
THINK THERE IS SOME PROGRESS
THERE. AND, AND AS, AS MR.
HOLMLUND SAID, EVERY TRIBE IS
DIFFERENT, EVERY THEY ARE AN
INDIVIDUAL GOVERNMENTS. AND SO
EVERYTHING AND THEIR NEEDS ARE
DIFFERENT. AND SO I COMMEND THE
LEASEHOLDERS FOR THAT, I WANT TO
KNOW WHAT, WHAT BOEM IS DOING IN
THAT IN THAT REGARD, BECAUSE I
HAVE HEARD, AND SOME OF IT'S
ANECDOTAL, IS THAT THERE HAS
BEEN SOME CONCERN THAT THE
FEDERAL GOVERNMENT HASN'T TAKEN
THAT LEVEL OF INTEREST AND
ATTENTION THAT THAT SOME OF THE
LEASE HOLDERS HAVE DONE. SO CAN
CAN YOU TELL ME WHAT BOEM IS
DOING IN THIS REGARD? THANK YOU
FOR THAT. ASSEMBLY MEMBER WOOD.
AND I'LL SAY, YOU KNOW, FROM A
LOAN PERSPECTIVE, YOU KNOW, THE
LESSEES ARE DOING IT BECAUSE,
YOU KNOW, WE HAD IT AS A
CONDITION ON THE LEASE. YOU
KNOW, THOSE THOSE TRIBAL
LIAISONS THAT ARE REQUIRED. YOU
KNOW, ONE OF THE THINGS THAT WE
REALLY DID PUSH THE BOUNDARY
HERE IN CALIFORNIA. AND, YOU
KNOW, WE HAVE A NATIVE AMERICAN
TRIBE COMMUNICATION PLAN, WHICH
IS A REQUIREMENT OF THE LEASE,
WHICH, YOU KNOW, IT DOES NOT
ALLEVIATE GÓMEZ RESPONSIBILITY
FOR OUR TRUST, RESPONSIBILITY
FOR THAT GOVERNMENT TO
GOVERNMENT CONSULTATION. BUT
WHAT IT DOES IS IT IT OPENS THE
LINES OF COMMUNICATION BETWEEN
THE TRIBES AND THE LESSEES SO
THAT THEY CAN HAVE THAT DIALOG,
BECAUSE WHAT WE LEARNED IN THE
PAST FROM THE EAST COAST IS, YOU
KNOW, ONCE A LEASE HAPPENED AND
BEFORE CONSTRUCTION OPERATION
PLAN CAME IN, YOU KNOW, THERE
WAS NO DIALOG. AND OUR INTENT IS
THAT BY HAVING THE LESSEES
MAKING SURE THEY'RE
COMMUNICATING WITH THE TRIBES,
THAT THEY'RE THAT THE TRIBES ARE
GOING TO HAVE AN INPUT INTO
THAT, INTO THE DEVELOPMENT OF
THE PLAN. SO WHEN THE
CONSTRUCTION OPERATION PLAN
COMES IN, IT'S NOT GOING TO BE
SOMETHING THAT HASN'T BEEN SEEN
BEFORE. SO IT REALLY IS AN
OPPORTUNITY THAT WE THINK THAT
THE TRIBES ARE GOING TO BE ABLE
TO KIND OF SHAPE THE DEVELOPMENT
OF THAT PROJECT AS IT MOVES
FORWARD. SO, YOU KNOW, I THINK
THAT, AGAIN, YOU KNOW, IN
PARTNERSHIP WITH THE STATE OF
CALIFORNIA, YOU KNOW, WE WERE
IMPLEMENTING THAT REQUIREMENT
INTO THE LEASE. AND I THINK IT'S
WORKING OUT WELL. BUT I JUST
WANT TO REITERATE, YOU KNOW, WE
STILL HAVE OUR FEDERAL TRUST
RESPONSIBILITIES WITH THE
TRIBES. YOU KNOW, THIS
COMMUNICATION THAT WE HOPE
IMPROVES THE PROCESS, IMPROVES
THE PRODUCT OF A CONSTRUCTION
AND OPERATION PLAN. YOU KNOW,
WE'RE STILL MAINTAINING AND
CONTINUING TO CONSULT WITH THE
TRIBES THROUGHOUT THE PROCESS.
AND, YOU KNOW, WE'RE LOOKING TO
BUILD AND THERE'S WE CAN ALWAYS
IMPROVE AS WE MOVE FORWARD. AND
I THINK AS WE LOOK TOWARDS, YOU
KNOW, ROUND TWO POTENTIAL
LEASING FOR CALIFORNIA, YOU KNOW,
WE'RE LOOKING AT, YOU KNOW,
IMPROVING THE PROCESS EVEN MORE.
AND YOU KNOW, MAKING SURE THAT
WE HOPEFULLY BRING THE TRIBES IN
EARLY EVEN EARLIER INTO THE
PROCESS SO THAT WE CAN START
LOOKING AT YOU KNOW, WHAT ROUND
TWO FOR CALIFORNIA WOULD LOOK
LIKE. AND SO WE'RE YOU KNOW, I
THINK THAT, YOU KNOW, LIKE I
SAID, WE'RE WE'RE NOT PERFECT IN
THAT WE ARE TRYING TO IMPROVE
AND HOPEFULLY, YOU KNOW, IN
PARTNERSHIP WITH THE WITH THE
TRIBES, WE CAN DEVELOP A PROCESS
THAT WORKS WELL FOR EVERYONE
MOVING FORWARD. WELL THANK YOU.
I, I WOULD SAY THAT,
CALIFORNIA'S FIRST PEOPLE LIVE
IN SMALL COMMUNITIES, I THINK,
THEY HAVE BEEN IN MANY WAYS
OVERWHELMED BY THE COMPLEXITY OF
THE SCALE OF THESE, THESE
PROJECTS AND THEIR PREVIOUS,
DEALINGS WITH EXTRACTIVE
TECHNOLOGIES. INDUSTRIES HAVE
MADE THEM CAUTIOUS, TO SAY THE
LEAST. AND DESERVEDLY SO. AND
SO, I JUST DON'T THINK I CAN
EMPHASIZE ENOUGH THAT WE'RE
TALKING ABOUT FEDERAL WATERS
HERE, AND, AND, AND, AND
ATTENTION, TRUE ATTENTION TO NOT
JUST FEDERALLY RECOGNIZED TRIBES,
BUT THERE ARE A LOT OF OTHER
TRIBES THAT THAT, HAVE TIES Tð
TIES TO THESE WATERS. AND SO
ANYTHING YOU CAN DO TO HELP WORK
WITH THEM IN COLLABORATION, AND
NOT JUST CONSULTING, BUT IN
COLLABORATION, THAT IS A REALLY
CRITICAL THING. AND I CAN'T
ENCOURAGE THAT ENOUGH. SO THANK
YOU. AND THANK YOU, MADAM CHAIR.
ASSEMBLY MEMBER ZEBRA. SO FIRST
OF ALL, I WANT TO THANK YOU,
ASSEMBLY MEMBER PETRIE-NORRIS,
FOR BRINGING THIS GROUP
TOGETHER. I THINK IT'S
IMPRESSIVE, AS I THINK THE FIRST
TIME WE'VE ACTUALLY HAD SINCE
I'VE BEEN HERE, OBVIOUSLY, WHICH
IS A SHORT AMOUNT OF TIME, THIS
KIND OF FOCUS ON OFFSHORE WIND,
WHICH I, AS YOU KNOW, I THINK IS
SUCH AN IMPORTANT PART OF, US
MEETING OUR CLEAN ENERGY FUTURE,
I'VE BEEN AS YOU KNOW, VERY
FOCUSED ON A NUMBER OF ISSUES
RELATED TO OFFSHORE WIND AND
MAKING IT A REALITY. AND I
THINK, DOVETAILING ON SOME OF
WHAT ASSEMBLYMEMBER WOOD HAS
SAID, ONE OF THOSE AREAS IS
RELATED TO THE ENTITLEMENT
TIMEFRAMES THAT ARE NECESSARY TO
DO ALL OF THE THINGS WE NEED TO
DO TO MAKE OFFSHORE WIND A
REALITY. THE ENTITLEMENT WITH
RESPECT TO THE PORTS, THE
ENTITLEMENT AT THE FEDERAL LEVEL
WITH RESPECT TO THE FACILITIES
THEMSELVES, THE ENTITLEMENT
RELATED TO, RELATED TO THE,
GETTING THAT POWER FROM THE FROM
THE, FROM THE PROJECTS TO THE
TRANSMISSION ON LAND
TRANSMISSION, THE ON LAND
TRANSMISSION, ALL OF THAT. AND
SO THAT'S SOMETHING THAT I AM
CONCERNED ABOUT IN PART BECAUSE
WE'VE GOT SUCH A TIGHT TIME
FRAMES IN TERMS OF OUR GOALS,
AND WE'RE SEEING THOSE TIME
FRAMES JUST IN THE TIME I'VE
BEEN HERE, MOVED BACK PRETTY
SIGNIFICANTLY ALREADY, I GUESS
ONE QUESTION I HAD IS, HOW ARE
YOU, PROJECTING OUT ENTITLEMENT?
YOU KNOW, ONE OF THE THINGS I
USED TO BE A LAND LEASE LAWYER,
AND ONE OF THE THINGS I USED TO
DO WHEN I'D START A PROJECT IS
I'D BASICALLY TAKE ON A SINGLE
PROJECT. I'D START WITH AN
ENTITLEMENT PLAN AND LOOK AT
EVERYTHING I HAD TO DO FROM
BEGINNING TO END, AND PROJECTING
OUT WHAT THOSE TIME FRAMES WERE
AND HOW THE VARIOUS ENTITLEMENTS
THAT YOU NEEDED BY VARIOUS STATE
AND FEDERAL AND LOCAL AGENCIES,
HOW THOSE DOVETAILED WITH EACH
OTHER AND HOW AND WHETHER THOSE
COULD BE DONE TOGETHER OR THEY
HAD TO BE DONE SERIATIM BECAUSE
YOU NEEDED SOME BEFORE YOU COULD
MOVE ON THE OTHERS. I NÓ 525 HAS
REQUIRED SOME STRATEGIC PLANNING
AT THE AT THE CEC, BUT SORT OF
WHERE DO WE STAND IN SORT OF
REALLY UNDERSTANDING WHETHER
SOME OF THESE TIMEFRAMES CAN BE
MET? YOU KNOW, WE LOOK AT, THE
PROJECTION THAT ON I'M SORRY
THAT ON ONSHORE WIND THAT WE'D
HAVE THE FIRST, THE FIRST
PROPOSED DECISION ON PROCUREMENT
TO BE ONLINE, PROJECTED ONLINE
BY 2035 TO 2037. BUT, YOU KNOW,
OBVIOUSLY WHEN YOU LOOK AT THAT,
IT'S SORT OF THERE NEEDS TO BE
BY 20, BY THIS 20, 30, YOU KNOW,
FOR THE OFFSHORE WIND ONLINE FOR
2035, THERE'S A LOT OF VARIABLES
THAT ACTUALLY NEED TO BE
ANSWERED IN ORDER TO HAVE THAT
THAT PROCUREMENT DECISION RUN
EFFECTIVELY. SO I GUESS THE
FIRST QUESTION, TO, TO MISS
TESFAI. DID I PRONOUNCE THAT
RIGHT? YES. THANK YOU, IS SORT
OF HAVE YOU DONE SORT OF. WHERE
IS THAT PLANNING OCCURRING IN
TERMS OF THAT KIND OF
ENTITLEMENT PLANNING, OR IS THAT
NOT HAPPENED YET, OR IS IT
HAPPENING AT SOME POINT IN THE
FUTURE? A LOT OF THE STUDY FOR
THAT WORK HAS OCCURRED IN THE AB
525 PLAN, AND WHAT WE'RE DOING
THROUGH THE PROCUREMENT PROCESS,
THOUGH, AND THE SOLICITATIONS
THAT THE DEPARTMENT OF WATER
RESOURCES, YOU KNOW, IF THE
DECISION IS APPROVED, WILL WILL
GO THROUGH WILL INCLUDE
REQUIREMENTS, THOUGH, IN THE
SOLICITATIONS. AND SO THAT WILL
BE SOMETHING THAT THE
LEASEHOLDERS WILL HAVE TO BE
ABLE TO PROVIDE AS PART OF THEIR
BIDS, TO BE ABLE TO SHOW,
ABILITY TO MEET TIMELINES, COST
CONTAINMENT MEASURES. THOSE ARE
ALL THINGS THAT END UP GOING
INTO THE SOLICITATION PROCESS
AND THAT CAN BE REVIEWED IN
ADDITION TO THAT, YOU KNOW, AB
1373 INCLUDED THE, OPPORTUNITY
TO CREATE A PROCUREMENT GROUP SO
THAT THERE ARE ALSO STAKEHOLDERS
THAT ARE ABLE TO, YOU KNOW, HAVE
SOME INSIGHT INTO THE
SOLICITATION PROCESSES AS WELL.
AND SO, THOSE ENTITIES WILL BE
ABLE TO PROVIDE SOME FEEDBACK TO
US. WE ARE TRYING TO, YOU KNOW,
EVALUATE THE BIDS, SEE WHICH
BIDS ARE BEST. AND ALL OF THOSE
ELEMENTS WILL BE INCLUDED AS
WELL, BECAUSE WE ARE LEARNING
FROM, THE CHALLENGES THAT THE
EAST COAST HAS HAD IN THE
DEVELOPMENT PROCESSES AND ALL OF
THESE TIMELINE VARIABLES. AND SO
IT'S REALLY IMPORTANT TO INCLUDE
THAT IN THE SOLICITATION
PROCESS. SO YOU CAN CLEARLY SEE
HOW EACH OF THE DIFFERENT
LEASEHOLDERS, BECAUSE THEY'RE
NOT DOING THE EXACT SAME THING
AT THE EXACT SAME TIME, BUT HOW
EACH OF THEM PLANS TO BE ABLE
TO, MAINTAIN CONTROL OF THE
DIFFERENT ENTITLEMENTS THAT THEY
NEED TO GET, AND THEN IN
ADDITION TO THAT, AND I'LL LET,
I'LL LET MISS CANNON SPEAK TO,
ALL THE DIFFERENT ENVIRONMENTAL
PERMITTING THAT'S ALSO OCCURRING
THAT HAS BEEN PLANNED FOR AND
STUDIED AS PART OF THE AB 525
PROCESS. NICE TO SEE YOU. NICE
TO A TERRIFIC
QUESTION. I THINK, THERE'S REAL
SORT OF ALTITUDES OF ANSWER TO
IT. THERE ARE, THERE ARE
CONSOLIDATED TIMELINES THAT WE,
THAT, THAT ARE AS IN, IN THE AB
FIVE, TWO FIVE STRATEGIC PLAN,
THAT TEND, THAT TEND TO SORT OF
JUST PLOT OUT WHERE WE THINK
THESE THINGS ARE HEADED, I THINK
CALIFORNIA, AND WITH YOUR HELP
HAS DONE AN EXTRAORDINARY JOB OF
SETTING UP THE PILLARS OF THAT
ARE THAT ARE NECESSARY FOR THESE
TIMELINES TO BECOME A LITTLE BIT
MORE REAL AND A LITTLE BIT MORE,
IN SYNC WITH ONE ANOTHER. AND
AND WE HEARD IT FROM MR. STUDDS,
AND WE HEARD IT FROM OTHERS LIKE
THE, THE PORTS, THE PROCUREMENT,
THE PEOPLE, AND THE PERMITTING.
THOSE ARE ALL THINGS THAT ARE
GOING TO HELP THESE TIMELINES
TIGHTEN UP. I THINK THERE IS
OPPORTUNITY TO LEAN INTO SOME OF
THE BROADER INFRASTRUCTURE,
TIMELINE WORK THAT'S HAPPENING
AT THE FEDERAL LEVEL AND AT THE
STATE LEVEL. SO AT THE FEDERAL
LEVEL, THERE'S THE FAST 41
DASHBOARD. THOSE THAT THE
FEDERAL PERMITTING IMPROVEMENT
STEERING COUNCIL. AND THEN ON
THE STATE LEVEL, THERE'S THE
INFRASTRUCTURE STRIKE TEAM AND
BOTH OF THOSE FRAMEWORKS ARE ARE
EXCITING FOR THEIR ABILITY TO
INCREASE TRANSPARENCY INTO THE
TIMELINES, TO SYNC UP THE
TIMELINES AND TO AND TO FURTHER
CREATE PARTNERSHIPS BETWEEN THE
IN THE FEDERAL AND STATE AND
TRIBAL SPACES THAT ARE NEEDED TO
MAKE THESE THINGS REAL, ONE OF
THE QUESTIONS I HAD, FOR EXAMPLE,
ON THE PROCUREMENT IS, HOW ARE
YOU GOING TO DEAL WITH SOME OF
THE COST UNCERTAINTIES IN TERMS
OF HOW THE PORTS ARE GOING TO BE
FINANCED? SO WE'VE GOT A
PROJECTION FROM THE CEC THAT
THE, THAT THE THAT THE RANGE OF
PORTS COULD COST MORE THAN $12
BILLION. WE'VE ONLY, YOU KNOW,
THERE'S SOME AMOUNT OF FUNDING
THAT'S BEEN PROVIDED TO
HUMBOLDT. HOPEFULLY THERE WILL
BE SOME FUNDING THAT COMES
THROUGH THE CLIMATE BOND IF IT'S
APPROVED BY THE VOTERS, AND THEN
THERE'S SOME FEDERAL FUNDING
THAT IS ACTUALLY BEING LEVERAGED
THROUGH, THROUGH THE CLIMATE
BOND AND OTHER OTHER FUNDING
SOURCES. BUT IT'S A BIG QUESTION
MARK, SORT OF IN WHO'S GOING TO
PAY THAT $12 BILLION AND TO WHAT
EXTENT, LEASE HOLDERS ARE GOING
TO BE ABSORBING PART OF THAT IS
THAT WHAT IS THE CURRENT
THINKING IN TERMS OF PROVIDING
CERTAINTY, BECAUSE IT SEEMS TO
ME THAT LEASE HOLDERS NEED TO
KNOW THOSE THINGS IN ORDER TO
ENGAGE IN THE PROCUREMENT
PROCESS. I THINK THAT THAT YOU
NAMED THE ACTIVITIES THAT ARE
PARTICULARLY UNDERWAY, IN THAT
SPACE, I THINK I WOULD JUST ADD
THAT WHAT WE'VE SEEN ON THE EAST
COAST AND WHAT WE'VE SEEN MORE
BROADLY IN EUROPE IS THAT THE
PUBLIC FINANCING PIECE OF PORT
PROJECTS FOR PARTICULARLY FOR
OFFSHORE WIND, IS 50 TO 70% OF A
PROJECT AND THE PRIVATE SECTOR
INVESTMENT IS 30 TO 50% OF THE
PROJECT. AND THAT SORT OF HELD
TRUE ACROSS THE BOARD. AND SO,
SO WHERE PROJECTS ARE ABLE TO
ACCESS THIS FEDERAL, THE FEDERAL
FUNDING IN PARTICULAR, AND, YOU
KNOW, REALLY CREDIT TO THE BIDEN
ADMINISTRATION AND BIDEN-HARRIS
ADMINISTRATION FOR PRIORITIZING
THESE, THESE KINDS OF PROJECTS
AT THIS TIME THAT I THINK A
COMBINATION OF FEDERAL FUNDING,
A COMBINATION OF STATE FUNDING,
WHAT THAT LOOKS LIKE TO BE
DETERMINED BASED ON THESE, ON
THESE THINGS THAT ARE IN MOTION,
AND THEN THE PRIVATE SECTOR WILL
NEED TO, WILL NEED TO ENGAGE.
AND, MR. HOMELAND WILL KNOW MORE
ABOUT THIS THAN, THAN I, BUT
WHERE WE'VE SEEN THIS AROUND THE
WORLD, IS IT IT CAN BE A
COMBINATION OF TENANTS AND
DEVELOPERS THAT, THAT TOGETHER
COMBINE TO, TO BRING THAT
PRIVATE SECTOR PIECE. I HAVE
SOME OTHER QUESTIONS, BUT I'LL
ASK, YEAH, I'D ACTUALLY LIKE I
WAS GOING TO ASK YOU IF, WITH
THE CHAIR'S PERMISSION, SO WHEN
I LOOK AT SORT OF THE THREE
SOLICITATIONS, ONE IS GOING TO
BE AGAIN, BEGIN IN 2027. IT JUST
SORT OF SEEMS LIKE A LOT OF
THOSE PIECES, A LOT OF
INFORMATION NEEDS TO BE MADE
MORE CERTAIN BEFORE THE
SOLICITATIONS GO OUT. SO, I'M
JUST WONDERING IF YOU COULD SORT
OF SPEAK TO THE SORT OF THE
THINGS THAT YOU NEED IN ORDER TO
PARTICIPATE IN THE PROCUREMENT
PROCESS. ABSOLUTELY. AND I WILL
ACKNOWLEDGE THAT THE PARAMETERS
OF THE PROCUREMENT PROCESS, IN
TERMS OF THE SOLICITATION
CRITERIA HAVE NOT BEEN DEFINED
YET, BUT I THINK FROM THE
PROJECT STANDPOINT HERE,
CERTAINLY THE CERTAINTY AND
EXISTENCE OF A PORT TO DEPLOY
THE PROJECT, STAGING THE
INTEGRATION PORT IS CRITICAL.
NOT ONLY IS THAT, THAT IS AN
ENABLING AND FOUNDATIONAL
REQUIREMENT FOR US TO PROCEED,
BUT IT ALSO HELPS US TO
UNDERSTAND WHAT ARE THE COST OF
USING THAT AND WHAT WHERE WILL
WE BE GETTING OUR TECHNOLOGIES?
HOW WILL WE BE DEPLOYING THEM
AND ASSEMBLING THEM? I'LL JUST
ADD ONE CLARIFICATION ON HOW
THOSE COSTS GET OR DON'T GET
INCLUDED IN OUR PRICE, THE
EXAMPLE I'LL USE IS FROM
MASSACHUSETTS, THE NEW BEDFORD
MARINE COMMERCE TERMINAL WAS
PAID FOR WITH $100 MILLION IN
STATE BONDS. THAT $100 MILLION
IS NOT INCLUDED INTO THE COST OF
ELECTRICITY, THE PRICE OR THE
COST OF A DEVELOPER. LEASING
THAT PORT IS, I THINK, THE
BUSINESS MODEL OF THE PORTS IN
CALIFORNIA HAS YET TO BE
DETERMINED. BUT I THINK THAT
PRINCIPLE WILL HOLD TRUE. IS
THAT WE WILL NOT BE PUTTING ON
THE RATE BASE THE MULTIPLE
BILLIONS OF DOLLARS NEEDED TO
BUILD THE PORTS. BUT OUR COST TO
USE THE PORTS WILL. SO TO
FURTHER ANSWER YOUR QUESTION,
THOUGH, WHAT DO WE NEED? WE
IDEALLY NEED TO HAVE FULLY
ADVANCED ON THE DESIGN AND
PERMITTING OF OUR PROJECTS. THAT
IS AN ESSENTIAL, YOU KNOW,
PROJECT VIABILITY CRITERIA.
HAVING HAD A SUFFICIENT DESIGN
PROJECT DESIGN ENVELOPE, THAT'S
THE BASIS OF WHAT WE'RE
PERMITTING. WE NEED TO HAVE THE
ABILITY TO CONNECT TO THE GRID.
ANOTHER KEY ELEMENT OF ENABLING
PROJECTS TO GO FORWARD. SO, FOR
WHAT MAKES A PROJECT VIABLE,
HAVING PERMITS, HAVING HAVING A
SITE, HAVING PERMANENCE, HAVING
ACCESS TO THE GRID AND HAVING A
PPA. THANK YOU. I HAVE JUST ONE
MORE JUST SORT OF QUICK SET OF
QUESTIONS AND THAT RELATES TO
THE, TO THE PROCUREMENT TARGET
OF 7.6GW. SO I WAS HAPPY TO SEE
THAT THAT NUMBER LANDED WHERE IT
WAS, I STILL THOUGH, HAVE
CONCERNS FROM HAVING SPOKEN TO A
LOT OF FOLKS IN THE SPACE ABOUT
WHETHER OR NOT MORE CERTAINTY IS
NECESSARY IN ORDER TO ACHIEVE
SOME OF THE OTHER GOALS THAT WE
WANT TO THAT AT LEAST I'D LIKE
TO SEE HAPPEN. AND THAT IS
BRINGING MORE OF THE JOBS
RELATED AND THE PROMISE OF
OFFSHORE WIND INTO THE STATE OF
CALIFORNIA. THE THINGS THAT AB
THREE WAS FOCUSED ON, AND SO,
YOU KNOW, WHAT I'VE HEARD IS
WE'RE GOING TO HAVE, YOU KNOW,
THE FOLKS THAT MANUFACTURE THE
TURBINES AND THE COMPONENT PARTS
WILL BE MAKING DECISIONS ABOUT
WHETHER OR NOT THOSE
MANUFACTURING FACILITIES ARE
LOCATED HERE IN CALIFORNIA. SOME
OF THAT IS BASED UPON THEIR
CERTAINTY OF SORT OF NOT ONLY
THE NEAR TERM, PROCUREMENT
CERTAINTY, BUT ALSO THE OTHER 20
OR 18GW THAT IS PROJECTED IN OUR
GOALS. AND SO, I GUESS THE
QUESTION IS, ARE YOU THINKING
ABOUT THAT SET OF ISSUES AS
YOU'RE SETTING THE PROCUREMENT
TARGETS AND SORT OF WHAT COMES
AFTER THE 7.6? OR IS THIS SORT
OF WHERE IT IS AT THE CURRENT
STATE AND WHAT ARE YOU HEARING
FROM? AND HAVE YOU EVEN ENGAGED
WITH THE WITH THE WITH THE FOLKS
THAT MANUFACTURE THE COMPONENTS
ABOUT WHETHER OR NOT THIS IS
GIVING THEM ENOUGH CERTAINTY?
YEAH, SO A COUPLE OF DIFFERENT
THINGS THERE, WITH THE 7.6GW OR
WITH AB 1373, YOU KNOW, WE DO
HAVE THIS AUTHORITY, FOR I THINK
UNTIL ABOUT 2035. AND SO THERE
ARE OTHER OPPORTUNITIES FOR US
TO USE THE CENTRAL PROCUREMENT
MECHANISM FOR MORE PROCUREMENT.
OTHER TYPES OF PROCUREMENT AS
WELL. AND SO WE DID THIS FIRST
DECISION, YOU KNOW, WAS DUE BY
SEPTEMBER FIRST. BUT THIS WHOLE
PROCESS IS GOING TO BE
INTEGRATED INTO THE TWO YEAR IRP
CYCLE. AND SO WE WILL BE ABLE TO
THROUGH THAT EXISTING WORK
CYCLE, INCLUDE ADDITIONAL, BUT
IN ADDITION TO THAT, YOU KNOW,
AS I MENTIONED EARLIER, WE HAVE
OVER 40 LOAD SERVING ENTITIES
DOING PROCUREMENT FOR THE STATE.
AND SO THEY WILL ALSO, YOU KNOW,
AS WE LEARN FROM THIS INITIAL
PROCUREMENT THROUGH THE
DEPARTMENT OF WATER RESOURCES,
THERE WILL BE A LOT OF LEARNINGS
FOR ALL THOSE LOAD SERVING
ENTITIES SO THAT THEY CAN ALSO
DO, OUR CONTINUED ADDITIONAL
PROCUREMENT. SO, YOU KNOW, BOEM
HAS TALKED ABOUT ADDITIONAL
LEASE SALES OCCURRING IN THE
STATE. AND SO OR, YOU KNOW, OFF
OF OUR COAST. AND SO THERE'S
REALLY A GROWTH OPPORTUNITY HERE
TO KICK START THIS INDUSTRY
THROUGH CENTRAL PROCUREMENT. BUT
THEN ALSO THERE WILL BE A LOT OF
A LOT MORE GROWTH HAPPENING
THROUGH OUR OTHER LOAD SERVING
ENTITIES FOR PROCUREMENT TOO.
AND I KNOW THAT THEY ARE EAGERLY
EXPLORING THAT WORK. FOR
EXAMPLE, A NUMBER OF CCAS HAVE
BANDED TOGETHER, CREATED, A TYPE
OF MOU WITH THE CADMO PROJECT
OFF OF THE STATE WATERS IN ORDER
TO BE ABLE TO LEARN MORE ABOUT
OFFSHORE WIND AND BUILD MORE OF
THEIR CAPACITY TO DO PROCUREMENT
THEMSELVES FOR OFFSHORE WIND.
AND SO I THINK THOSE ARE JUST
SOME OF THE KEY PARTS. I THINK
ANOTHER THING THAT I WANTED TO,
REFERENCE, THOUGH, IS, YOU KNOW,
CREATING GUARDRAILS FOR
RATEPAYERS. AND SO I MENTIONED
THERE WILL BE THE PROCUREMENT
GROUP THAT, YOU KNOW, HAS
STAKEHOLDERS BEING ABLE TO
PARTICIPATE AND KIND OF GET AN
IDEA OF WHAT THESE SOLICITATIONS
ARE LOOKING LIKE, HOW THEY'RE
BEING FORMED, AS WELL AS THE
BIDS COMING IN. BUT THERE'S ALSO
A KEY PART OF THE PROCESS WHERE,
YOU KNOW, ONCE DEPARTMENT OF
WATER RESOURCES DOES THE
PROCUREMENT, THE ACTUAL
CONTRACTS COME BACK TO THE
PUBLIC UTILITIES COMMISSION FOR
OVERSIGHT FOR FINAL APPROVAL,
WHICH IS THIS IS A PROCESS WE
ALREADY GO THROUGH WITH THE
INVESTOR OWNED UTILITIES AS THEY
COME TOGETHER WITH BUNDLED
PROCUREMENT PLANS WITH ALL OF
THEIR RESOURCES. BUT SO THAT'S
JUST ANOTHER OVERSIGHT
OPPORTUNITY FROM THE PUBLIC
UTILITIES COMMISSION, WHICH WAS
REALLY KEY AS AB 1373 WAS COMING
TOGETHER AND MAKING SURE THAT WE
HAVE THAT THAT OVERSIGHT OVER
THE CONTRACTS AND THE PRICING. I
JUST WANTED TO ASK MR. STUDDS,
IF IN YOUR CONVERSATIONS,
OBVIOUSLY, YOU'RE STARTING TO
THINK ABOUT POTENTIALLY,
ESPECIALLY AS YOU'RE GOING
THROUGH YOUR ENVIRONMENTAL
REVIEW OF, SOME OF WHERE YOU'D
BE PROCURING SOME OF THESE, SOME
OF THE PARTS, OBVIOUSLY. IS IT
YOUR SENSE THAT THE PROCUREMENT
TARGET THAT WAS APPROVED IS
GIVING THESE MANUFACTURERS
ENOUGH COMFORT THAT THEY'RE
THINKING ABOUT LOCATING THE
MANUFACTURING FACILITIES IN
CALIFORNIA? OR DO WE HAVE TO BE
DOING MORE? I WOULD SAY THAT
ESTABLISHING A MOUNT TO BE NEEDS
DETERMINATION OF 7.6 7.6GW IS AN
IMPORTANT TO ESTABLISHING THE
MARKET. IT IS NOT THE MECHANISM
ITSELF THAT INCENTIVIZES
SUPPLIERS TO LOCATE. IT MAKES
THEM PAY ATTENTION FOR SURE. I
WOULD SAY THAT IT IS SIGNED PPAS
THEMSELVES, WHICH ARE REALLY THE
GOLD STANDARD OF THAT, THAT
DRIVE THE SUPPLY CHAIN. THAT
BEING SAID, FLOATING FOUNDATIONS
ARE THE BEST OPPORTUNITY WE HAVE
TO FOR DOING ANYTHING LOCALLY.
THEY ARE SIGNIFICANT AMOUNT OF
STEEL, LARGE, CUMBERSOME AND NOT
IDEALLY SUITED TO TRANSPORT OVER
LONG DISTANCES FOR A VARIETY OF
REASONS, NOT THE LEAST OF WHICH
IS THERE'S VERY FEW VESSELS THAT
ARE CAPABLE OF DOING THAT, SO IT
PRESENTS A GREAT OPPORTUNITY
FOR, AT THE VERY LEAST, ASSEMBLY
OF LOCAL PARTS WITHIN PORTS THAT
HAS THE ABILITY TO DRIVE JOBS
WITHIN THE PORTS THEMSELVES,
WHICH IN TURN CREATES AN
INNOVATION ECOSYSTEM AROUND THAT.
SO RIGHT NOW, FOR PROJECTS
ENABLING TO BE GOING FORWARD,
THAT PROVIDES, I THINK, US TO
THINK ABOUT HOW CAN WE BE DOING
AS MUCH LOCALLY AS WE CAN AND,
AND FLOATING FOUNDATIONS PROVIDE
THE BEST OPPORTUNITY FOR DOING
THAT? WELL, I'M LOOKING FORWARD
TO THE ENERGY COMMISSION'S
COMPLETION OF THE AB THREE
REPORT, SO I KNOW WE'LL BE
LEARNING A LOT MORE ABOUT THAT,
BUT THANK YOU. I THINK THAT WAS
VERY HELPFUL. I THINK THE LAST
THING I'M GOING TO SAY IS, YOU
KNOW, I'M HOPING AND I SEE THIS
ALREADY SORT OF, WEAVING ITS WAY
INTO DOCUMENTS I'M SEEING ABOUT
OFFSHORE WIND. BUT I'M HOPING
THAT ALL OF THE AGENCIES CAN
START THINKING, IN ADDITION TO
THE TRADITIONAL THINGS THEY
THINK ABOUT, WHICH IS, YOU KNOW,
MAKING SURE THAT WE'RE DOING THE
BEST FOR THE RATEPAYERS, MAKING
SURE THAT WE'RE ACHIEVING OUR
ENVIRONMENTAL GOALS, ALL OF
THAT. BUT WE CAN ALSO START
THINKING ABOUT THE WORKFORCE
MORE. I THINK THAT TO ME THAT
THIS IS A KEY COMPONENT AND ONE
OF THE KEY BENEFITS, I THINK,
YOU KNOW, SOME OF WHAT HAS BEEN
DISCUSSED WITH RESPECT TO THE
TRIBAL NATIONS ABOUT MAKING SURE
THAT THEY ARE PARTICIPATING IN
THESE PROJECTS, BECAUSE THAT IS
PART OF THE PROMISE OF THIS. AND
GIVING THE TRIBAL NATIONS THE
CERTAINTY THAT THEY NEED, TO, TO
BE ENGAGED WITH THESE THINGS,
BUT ALSO BRINGING THESE JOBS
INTO THE STATE OF CALIFORNIA. I
MEAN, IT'S IT IS ONE OF THE ONE
OF THE PROMISES AND ONE OF THE
BIG POTENTIALS THAT WE HAVE HERE
IN THE STATE OF CALIFORNIA. AND
ONE OF THE THINGS I THINK WE
DON'T DO VERY WELL OFTEN IS
REALLY AS WE'RE STARTING, AS WE
TRY TO ACHIEVE OTHER OBJECTIVES,
IS MAKING SURE THAT WE'RE
ACTUALLY WORKING OUT, WATCHING
OUT FOR OUR WORKFORCE, BRINGING
HIGH SKILLED, HIGH WAGE JOBS
INTO THE STATE. AND SO I'M
HOPING THAT YOU'LL BE THINKING
ABOUT THAT AND ALWAYS HAVE A
BULLET POINT IN ADDITION TO THE
OTHERS THAT YOU TRADITIONALLY
HAVE ON THESE, AS YOU DO THIS.
AND THEN THE LAST THING I'LL
SORT OF SAY IS, I JUST WANT TO
THANK ASSEMBLYMEMBER
PETRIE-NORRIS, FOR HER
LEADERSHIP ON THE CLIMATE BOND
AND THE $475 BILLION THAT WORKED
ITS WAY IN THERE FOR THE PORT
INFRASTRUCTURE, THAT WOULD NOT
HAVE HAPPENED HAD IT NOT BEEN
FOR HER ADVOCACY, I KNOW THAT
BECAUSE BECAUSE I HAD BEEN
WORKING SO HARD ABOUT THAT. AND,
AND I THINK THE ASSEMBLYWOMAN
UNDERSTOOD HOW IMPORTANT THIS IS
TO MAKE SURE THAT ONE OF THE P'S
THAT YOU IDENTIFIED IS ACTUALLY
THAT WE'RE PROVIDING MORE
CERTAINTY AND WE'RE MOVING
AHEAD, AND SO I JUST WANTED TO
THANK YOU AND PUBLICLY RECOGNIZE
THAT THAT IMPORTANT ROLE THAT
YOU PLAYED. WELL, THANK YOU,
ASSEMBLY MEMBER ZEBRA. AND
CERTAINLY APPRECIATE YOUR
LEADERSHIP AND YOUR PARTNERSHIP
ON THIS AS WELL, ALL RIGHT. I
TOO HAVE A BUNCH OF QUESTIONS,
SO I WANT TO START, I WANT TO
START WITH, WITH A COUPLE OF
QUESTIONS ABOUT THE PORT. SO AS
WE SAID, WE'VE GOT SOME
AMBITIOUS GOALS, 2.22 TO 5GW BY
2030. I THINK THAT'S STILL THE
GOAL, 25GW BY 2045, 2030 IS
LITERALLY AROUND THE CORNER. I
WAS REALLY PLEASED TO HEAR YOU
SAY IN YOUR OPENING COMMENTS
THAT YOU DO BELIEVE HUMBOLDT IS
ON TRACK TO BE OPERATIONAL BY
2030. CAN YOU HELP US UNDERSTAND
KIND OF WHAT ARE THE KEY
MILESTONES FROM NOW TO 2030 TO
MAKE THAT A REALITY? WHAT ARE
THE KEY RISKS AND WHAT CAN WE
WHAT CAN WE DO, IF ANYTHING, TO
HELP DE-RISK THAT PLAN AND HELP
YOU ENSURE SUCCESS? YEAH, IT'S A
GREAT QUESTION, A LOT OF THINGS
COME TO MIND, ESPECIALLY JUST
HEARING THIS CONVERSATION. SO
FAR. THE KEY IS AT SOME POINT IN
THE NEXT SIX MONTHS, ARE GOING
TO BE RELEASING $45 MILLION FOR
PORTS FOR OFFSHORE WIND. THE
SAME AGENCY HAS IDENTIFIED THAT
THERE'S $12 BILLION NEEDED IN
PORT INFRASTRUCTURE INVESTMENTS.
MY ESTIMATE IS TWO THIRDS OF
THAT COST IS GOING TO BE IN THE
WATERS OF THE STATE OF
CALIFORNIA, WHICH IS ABOUT 8
BILLION. 45 MILLION IS LESS THAN
HALF A PERCENT OF 8 BILLION. SO
WE'RE A LONG WAY FROM FUNDING
THE CRITICAL PUBLIC
INFRASTRUCTURE COMPONENTS OF
THIS ON STATE LANDS AND STATE
WATERS. SO FUNDING, I THINK, IS
THE PRIMARY CONSTRAINT AT THE
MOMENT. THEN, YOU KNOW, THE
COMPLEXITY OF SUPPLY CHAIN, YOU
KNOW, AND THAT'S, YOU KNOW, I
THINK MR. STUDS HAS EXPLAINED
THAT REALLY WELL, THAT THERE'S
GOT TO BE CONFIDENCE FROM THE
PRIVATE SECTOR OF WHERE TO, YOU
KNOW, PLANT THEIR MANUFACTURING
FACILITIES. AND A LOT HAS TO
COME BEFORE THAT, SO I THINK IT
STARTS WITH MONEY. AND THEN AT
LEAST FROM THE PORTS PERSPECTIVE,
SUPPLY CHAIN AND HOW THAT'S ALL
GOING TO COME TOGETHER. HAVING
DONE 20 YEARS OF DEVELOPMENT,
YOU KNOW, PERMITTING BIG
DEVELOPMENT PROJECTS, PERMITTING
IS JUST A SLOG. IT JUST TAKES,
YOU KNOW, CONSTANT EFFORT,
THERE'S ALWAYS TALK OF
STREAMLINING. I'VE DONE A LOT OF
BIG HOUSING PROJECTS, AND
THERE'S ALWAYS BEEN TALK OF
STREAMLINING THE PERMITTING
PROCESS FOR HOUSING. IN THE
MEANTIME, WHILE YOU'RE WAITING
FOR THAT STREAMLINING TO OCCUR,
YOU JUST GOT TO KEEP PUSHING
THROUGH THE PERMITTING. AND SO,
I DON'T KNOW WHAT CAN BE DONE TO
CHANGE THE PERMITTING, BUT I,
YOU KNOW, I HESITATE TO SAY
THIS, BUT I DON'T KNOW THAT
ANYTHING NEEDS TO DO IF
NOTHING'S DONE, PERMITTING WILL
GO LIKE IT ALWAYS GOES. IT'LL
TAKE LONGER THAN ANYBODY WANTS
IT TO, BUT IT'LL IT'LL WORK OUT.
AND, YOU KNOW, THE OUTCOMES ARE
USUALLY GOOD. IMPACTS ARE
MINIMIZED. IMPACTS THAT DO OCCUR
ARE MITIGATED FOR. SO I THINK
OUR PERMITTING PROCESS IS
BUREAUCRATIC AND CUMBERSOME. BUT
IT RESULTS IN GOOD OUTCOMES. I
DON'T KNOW IF I'M ANSWERING YOUR
QUESTION, SO MUCH JUST TO SAY
THE STATE'S DONE A GREAT JOB OF
IDENTIFYING GOALS AND ENABLING A
LOT TO HAPPEN CONCURRENTLY, NOW
FUNDING IS REALLY THE NEXT
CRITICAL STEP. YES AS I
SOMETIMES SAY, WE HAVE BEEN
PRECEDED BY GENERATIONS OF
LAWMAKERS WHO GOT TO COME UP AND
SAY, YOU KNOW, IN 30 YEARS TIME,
WE'RE GOING TO DO SOMETHING
REALLY AMAZING AND REALLY HARD
AND NOW, LIKE, THAT'S THAT'S NOW.
AND SO IT'S ON US. THOSE CHIPS
ARE COMING DUE AND IT'S ON US,
YOU KNOW, ALL OF US TO ACTUALLY
DELIVER ON THAT AND MAKE THAT A
REALITY. OKAY. I WANT TO PICK UP
ON THE POINT THAT YOU MADE
ABOUT, THE THAT FUNDING RIGHT
NOW IS THE PRIMARY CONSTRAINT.
SO, AND, MISS, MISS GAGNON, YOU
SAID AS WELL THAT BASED ON WHAT
WE'VE SEEN ON THE EAST COAST,
YOU WOULD ANTICIPATE THAT 50 TO
70% OF THESE PORT PROJECTS ARE
GOING TO BE FINANCED THROUGH
PUBLIC DOLLARS. SO 12 BILLION,
THAT'S SIX TO WHAT IS THAT 8
BILLION? SIX TO. YEAH, EIGHT ISH
IS THAT YOUR ASSESSMENT OF WHAT
COLLECTIVELY THE STATE OF
CALIFORNIA AND IN PARTNERSHIP
WITH THE FEDERAL GOVERNMENT
NEEDS TO BE ABLE TO INVEST IN
PORT INFRASTRUCTURE IN ORDER FOR
US TO ACTUALLY MAKE THIS ALL
HAPPEN? YEAH, I THINK IT'S
USEFUL TO HAVE THOSE AGGREGATE
NUMBERS. AND IT'S ALSO TRUE THAT
EACH PROJECT IS GOING TO BE,
FINANCED IN A PARTICULAR WAY. I
THINK, THE VALUE PROPOSITION OF
MORE PUBLIC FUNDING FOR PORTS IS
MORE PUBLIC CONTROL OVER THE
ASSET. SO, SO DEPENDING ON HOW
THE STATE IS, YOU KNOW, WANTING
TO MOVE FORWARD WITH PORT
DEVELOPMENT AND MAKE SURE THAT
THESE REGIONS THAT ARE WHERE
OFFSHORE WIND IS MOVING FORWARD
IN CALIFORNIA, THE NORTHERN
CALIFORNIA AREA AND THE CENTRAL
COAST, MAKING SURE THAT THAT
THESE PROJECTS GO FORWARD APACE,
THAT DOES SUGGEST THAT MORE
PUBLIC FUNDING THAN LESS WILL
BE, WILL BE WARRANTED. WE'LL SEE
HOW PROPOSITION FOUR GOES
FORWARD. BUT I THINK THERE'S
CERTAINLY FEDERAL, AVENUES TO
THERE'S DIFFERENT COLORS OF
MONEY THAT DIFFERENT COLORS OF
PUBLIC MONEY THAT WE COULD THAT
WE MIGHT PURSUE AND, AND I'M
CAUTIOUSLY OPTIMISTIC ABOUT SOME
OF THOSE AS WELL. OKAY. AND
THAT'S GOOD TO HEAR AND I DO I
JUST I THINK FOR ALL OF US, I
THINK THAT WE REALLY NEED TO BE
VERY CLEAR EYED ABOUT WHAT IT'S
GOING TO TAKE AND WHAT ROLE THE
STATE IS GOING TO NEED TO PLAY.
I THINK THAT'S REALLY IMPORTANT
TO ENSURE THAT, YOU KNOW, OUR
PRIVATE PARTNERS UNDERSTAND WHAT
WHAT THEY'RE EFFECTIVELY
OBLIGATED FOR AND WHAT THEY'RE
NOT. AND I ALSO THINK IT'S
REALLY IMPORTANT THEN FOR, NOT
JUST, YOU KNOW, THE THREE OF US,
BUT THE ENTIRE LEGISLATURE TO
UNDERSTAND NØ, THIS IS
OBJECTIVELY THE AMOUNT OF MONEY
THE STATE OF CALIFORNIA IS GOING
TO NEED TO INVEST IN THIS SO
THAT THAT IS SOMETHING THEN THAT
GETS TAKEN INTO ACCOUNT, AND SO
I WOULD SAY THAT'S JUST A
REALLY, I THINK, IMPORTANT PIECE
FOR ALL OF US TO, TO GET ON THE
SAME PAGE ON AND TO BE REALLY
TRANSPARENT ABOUT. AND I WANT TO
JUST CREDIT ABBY THREE, THAT THE
SECOND PHASE, PORT READINESS
STUDY IS, IS UNDERWAY AND IT'S
DUE AT THE END OF 2026. AND SOME
OF THE, SOME OF THOSE TOPICS
ARE, ARE OBVIOUSLY GERMANE TO
THAT, TO THAT STUDY. YEAH. AND
THEN SO PICKING UP ON, ON
PERMITTING YOU MENTIONED THAT IN
YOUR RESPONSE. AND I KNOW MR.
SUDDES, YOU, YOU TOUCHED ON
THAT, AND I WANT TO MAKE SURE
THAT I UNDERSTOOD CORRECTLY WHAT
YOU SAID. SO WHEN YOU WERE
TALKING ABOUT PERMITTING, YOU
SAID THAT IT'S CRITICAL TO
IMPLEMENT THE RECOMMENDATIONS
THAT HAVE COME OUT OF THE AB.
525 STRATEGIC PLAN, AND YOU
HIGHLIGHTED THE NEED TO ENSURE
THAT THE POSITIONS TO ACTUALLY
EXECUTE THAT ARE FUNDED. DID I
UNDERSTAND YOU CORRECTLY WHEN
YOU SAID FROM YOUR PERSPECTIVE,
THERE ARE NO KIND OF URGENT
NEEDS IN THE PERMITTING SPACE
BEYOND DELIVERING ON THOSE
RECOMMENDATIONS? I WOULD SAY IF
WE HAD ONE ASK RIGHT NOW, IT
WOULD BE TO IMPLEMENT THOSE 525
RECOMMENDATIONS. OKAY, THERE'S
AN IMPORTANCE RIGHT AT PRESENT.
RIGHT NOW WE KNOW WITH A LOT OF
RELATIVE CERTAINTY, YOU KNOW,
WHAT ARE THE DEFINED GUIDELINES
AND PERMITTING TIMEFRAMES AND
WHAT WE NEED TO DO FOR IN THE
FEDERAL PERMITTING PROCESS. I
DON'T THINK WE CAN SAY WITH THE
SAME CONFIDENCE IN THE STATE
PERMITTING PROCESS. SO THAT
LEADS TO UNCERTAINTY BOTH FOR US
NOW, WHEN WE'RE PLANNING SURVEYS
FOR YEARS DOWN THE LINE, TO WHAT
STANDARDS AND TO WHAT REVIEW. SO
DEFINING THAT NOW PROVIDES US IF
WE KNOW EVEN IF IT'S MORE
RIGOROUS OR LONG, WE KNOW WE
HAVE TO DO IT. BUT IT'S HELPFUL
TO KNOW NOW. SO AGAIN, DEFINING
WHAT THOSE AGENCY ROLES AND
RESPONSIBILITIES ARE. THE
INTERFACES, THE TIMING AND
ENSURING THAT YOU'RE ABLE TO
HOLD TO THAT TIMING IS CRITICAL.
OKAY, UNDERSTOOD. ANYTHING ELSE
YOU'D ADD ON THE PERMITTING
FRONT OR TOUCHED ON IT ALREADY?
I CONCUR WITH ALL OF THAT. ONE
THING I WOULD LIKE TO POINT OUT
IS I WOULD URGE SOME CAUTION IN
OVER COMPARING PORTS OF WEST
COAST TO THE PORTS OF EAST COAST
AND THEIR FINANCE MODELS. OKAY,
EAST COAST DOING FIXED BOTTOM SO
THEIR VERTICAL INTEGRATION IS
OCCURRING IN THE OCEAN, NOT
REQUIRING PORT FACILITIES WITH
FLOATING OFFSHORE WIND. THERE'S
A WHOLE NOTHER LAYER OF PORT
FACILITIES REQUIRED HERE. AND SO
IT'S GOOD TO HAVE THE EAST COAST
TO COMPARE AGAINST. BUT THE
COUNTRIES OF NORTHERN EUROPE
WITH FLOATING OFFSHORE WIND ARE
ANOTHER PLACE TO LOOK. AND
COMPARING APPLES TO APPLES IS AN
IMPORTANT PART OF THAT ANALYSIS.
OKAY SO IF I UNDERSTAND WHAT
YOU'RE SAYING, IT'S THAT YOU
WOULD LIKELY EXPECT A LARGER
SHARE TO NEED TO COME FROM
PUBLIC FUNDING RELATIVE TO THE
EAST COAST COMPARISON. YES,
BECAUSE THE FLOATING FOUNDATIONS
NEED TO BE ASSEMBLED IN PORT
VERTICALLY, WHERE THEY CAN BE
DONE IN THE OCEAN WITHOUT A PORT
FACILITY IN THE EAST COAST. GOT
IT. OKAY. ALL RIGHT. THANK YOU.
I THINK THAT'S, YES. VALUABLE.
VALUABLE POINT OF CLARIFICATION,
I WANT TO TALK A LITTLE BIT
ABOUT COSTS, TOO. WE TALKED
ABOUT THE COST OF BUILDING THIS
STUFF, ABOUT COST TO RATEPAYERS,
BECAUSE I THINK THAT, ONE OF OUR
COLLEAGUES TALKED ABOUT
AFFORDABILITY IN HIS OPENING
REMARKS. I THINK IT'S CERTAINLY
BEEN FRONT AND CENTER FOR ALL OF
US. AS ELECTRICITY RATES
CONTINUE TO RISE, WE'RE KIND OF
REACHING REALLY A BREAKING POINT
FOR MANY CALIFORNIANS. AND IT'S
UNSUSTAINABLE. SO IT'S CERTAINLY
BEEN A FOCUS FOR OUR COMMITTEE
AND WILL CONTINUE TO BE AND
OFTENTIMES WHEN WE START TO TALK
ABOUT OFFSHORE WIND, PEOPLE DO
EXPRESS CONCERNS ABOUT, GOSH,
THIS IS AN EXPENSIVE RESOURCE.
HOW ARE WE GOING TO PAY FOR
THIS? AND SO I WOULD LOVE, YOU
KNOW, FIRST TO HEAR FROM FROM
CPUC, ALSO YOU KNOW, FROM FROM
GOLDEN STATE, HELP US PUT, THE
COST OF OR THE ANTICIPATED COST
OF FLOATING OFFSHORE WIND IN
CONTEXT WITH OTHER, YOU KNOW,
POTENTIAL RESOURCES AS WELL.
HELP US UNDERSTAND HOW YOU WOULD
EXPECT THOSE COSTS, PRESUMABLY
TO START TO DECLINE OVER TIME. I
CAN START, THERE STILL IS A LOT
OF UNCERTAINTY ABOUT THE OVERALL
COST OF OFFSHORE WIND AND, WE
HAVE SEEN THAT DEMONSTRATED IN
THE LACK OF PROCUREMENT THAT
WE'VE SEEN FROM THE LOAD SERVING
ENTITIES. RIGHT. SO, SOLAR, FOR
EXAMPLE, AS WELL AS FOR OUR
LITHIUM ION BATTERIES CONTINUE
TO BE CHEAPER. AND SO, BECAUSE
OF THE, THE NEED FOR LOOKING FOR
THE LOWEST COST RESOURCES AS WE
BRING ON SUCH LARGE VOLUMES,
THOSE CONTINUE TO BE WHAT THE
LOAD SERVING ENTITIES BRING ON,
BECAUSE THEY'RE VERY COGNIZANT
OF AFFORDABILITY AND TRYING TO
MAKE SURE THAT THEY CAN KEEP
RATEPAYER BILLS AS LOW AS
POSSIBLE, THAT BEING SAID, WE
HAVE IDENTIFIED IN OUR LONG TERM
PLANNING THAT WE NEED TO HAVE
OTHER RESOURCES OR MORE DIVERSE
RESOURCES ADDED TO OUR GRID TO
BE ABLE TO, COMPLEMENT THE LARGE
AMOUNT OF SOLAR AND OTHER TYPES
OF WIND RESOURCES, LIKE ONSHORE
WIND, FOR EXAMPLE, THAT WE HAVE
ON OUR SYSTEM, AND AS WELL AS,
YOU KNOW, BEING ABLE TO, DO THAT
AS WE REDUCE OUR GREENHOUSE GAS
EMISSIONS BECAUSE, AS YOU KNOW,
WE STILL HAVE GAS RESOURCES ON
OUR SYSTEM TO BE ABLE TO ENSURE
THAT RELIABILITY AND OFFSHORE
WIND, AS LONG AS AS WELL AS SOME
OF THE OTHER RESOURCES I
MENTIONED IN THE CENTRAL
PROCUREMENT, PROPOSED DECISION
LIKE GEOTHERMAL, WHICH ENHANCED
GEOTHERMAL, WHICH PROVIDES THAT
BASE LOAD, WHICH IS MORE AKIN TO
A RESOURCE LIKE NUCLEAR, AND
THEN WE ALSO HAVE IN THEIR LONG
DURATION ENERGY STORAGE, WILL BE
ABLE TO HELP HARNESS THESE
ADDITIONAL RESOURCES AND
LEVERAGE THEM BETTER, WHICH
MEANS THAT THE, FINANCIAL
BENEFITS ARE BETTER ABLE TO BE
USED AS WELL. RIGHT SO, YOU
KNOW, DURING THE MIDDLE OF THE
DAY WHEN WE HAVE A LOT OF SOLAR,
SOME OF THAT SOLAR, IF THERE
AREN'T ENOUGH BATTERIES OR LONG
DURATION ENERGY STORAGE
RESOURCES AVAILABLE, YOU KNOW,
DON'T END UP GETTING OPTIMIZED
TO BE USED DURING A TIME OF DAY,
WHEN THERE ARE OTHER RESOURCES
THAT WE END UP NEEDING, LIKE
GAS, BUT AT THE SAME TIME, WE
ARE VERY COGNIZANT OF THOSE
RATEPAYER IMPACTS. PART OF THE
GOAL OF CENTRAL PROCUREMENT IS
BEING ABLE TO LEVERAGE ECONOMIES
OF SCALE TO BRING DOWN THE PER
UNIT COST OF THOSE RESOURCES. SO
RATHER THAN HAVING, YOU KNOW,
LEASEHOLDERS TRYING TO CONTRACT
SEPARATELY WITH 40 DIFFERENT
LOAD SERVING ENTITIES, YOU KNOW,
THERE ARE ADDED COSTS WHEN
YOU'RE SPLITTING UP ALL OF THE
DIFFERENT SOLICITATIONS AND
CONTRACTS AND RISKS THAT YOU'RE
PUTTING TOGETHER. AND SO THE
GOAL, BY LEVERAGING AN ENTITY
LIKE THE DEPARTMENT OF WATER
RESOURCES TO DO THIS INITIAL
PROCUREMENT WORK, IS TO BE ABLE
TO LEARN, BUT THEN ALSO TO HAVE
THE ECONOMIES OF SCALE AND
OPTIMIZED FINANCING AS MUCH AS
POSSIBLE. I THINK I MENTIONED
EARLIER THAT THERE'S GOING TO BE
A COUPLE OF DIFFERENT STEPS OF
THE PROCESS. SO WE HAVE THIS
DECISION. DEPARTMENT OF WATER
RESOURCES WILL GO OUT, PUT, PUT
TOGETHER THE SOLICITATION WORK
WITH THE PROCUREMENT GROUP,
WHICH IS GOING TO HAVE
STAKEHOLDERS LOOKING MAKE
LOOKING AT THE COST ISSUES AND
HOW THE DETAILS OF THE
SOLICITATION ARE PUT TOGETHER.
SO I THINK AN EXAMPLE OF THAT
IS, YOU KNOW, WE SAW ON THE EAST
COAST THAT THERE WERE SOME
CONTRACTS THAT FAILED AND
RENEGOTIATION PROCESSES, AND
THERE WERE ISSUES THERE RELATED
TO GLOBAL SUPPLY CHAIN PRESSURES
AS WELL AS INFLATIONARY
PRESSURES THAT WERE HITTING ALL
DIFFERENT INDUSTRIES, BUT DID
IMPACT OFFSHORE WIND QUITE
ACUTELY. AND I THINK THAT AS, AS
THE SOLICITATION PROCESSES ARE
PUT TOGETHER AS WELL AS THE
EVENTUAL POWER PROCUREMENT OR
PPAS, YOU CAN PUT YOU KNOW,
APPROPRIATE INDEXES IN PLACE TO
BE ABLE TO HAVE SOME FLUCTUATION
FOR THOSE COSTS AND BE ABLE TO
MAKE SURE THAT THE LEASEHOLDERS
ARE ABLE TO PUT, YOU KNOW, THE
PROJECTS, GET THEM OFF THE
GROUND, BUT ALSO PROTECT
RATEPAYERS SO THAT YOU DON'T
HAVE SKYROCKETING COSTS THAT ARE
BEING EATEN BY RATEPAYERS, AND
SO THE LAST STEP OF THE PROCESS
THAT I WANT TO MAKE SURE TO
EMPHASIZE IS THAT THESE
CONTRACTS WILL EVENTUALLY COME
BACK TO THE PUBLIC UTILITIES
COMMISSION. THERE WILL BE WE
HAVE EXISTING PROCESSES IN PLACE
TO REVIEW POWER PURCHASE
AGREEMENTS. WE'VE BEEN DOING
THIS FOR DECADES AND BE ABLE TO
MAKE SURE THAT IN THE END, THESE
ARE THE, YOU KNOW, FAIR COSTS
FOR RATEPAYERS TO INCUR. BUT AS
I SAID, OFFSHORE WIND ALSO HELPS
TO OPTIMIZE OTHER RESOURCES ON
THE GRID, LIKE SOLAR AND
STORAGE, AND SO IT'S THAT
COMPLIMENT THAT REALLY HELPS US
GET THE MOST OUT OF ALL OF THE
RESOURCES ON THE GRID. I WOULD
LIKE TO ALLOW, YOU KNOW, GOLDEN
STATE WIND TO BE ABLE TO SHARE
THEIR EXPERIENCE AND
EXPECTATIONS, TOO. THANK YOU. I
THINK IT IS ESSENTIAL THAT WE AS
AN INDUSTRY AND I MEAN THIS
RENEWABLES WRIT LARGE AS WELL AS
OFFSHORE WIND, ARE ABLE TO
EFFECTUATE A TRANSITION TO ZERO
CARBON ENERGY SYSTEM IN AN
EQUITABLE, COST EFFECTIVE WAY.
THAT'S CRITICAL. WHAT THE PUC
HAS DONE WITH THIS PROPOSED
DECISION, I THINK, ESTABLISHES
THE CORE FRAMEWORK THAT ALLOW
FOR VISIBILITY AND SUFFICIENT
VOLUME IN THE INDUSTRY THAT SETS
UP A TRAJECTORY FOR COST
REDUCTIONS. THEY ARE UNDER NO
OBLIGATION TO ENTER A CONTRACT
WHICH PUTS ON US THE PRESSURE
AND OBLIGATION TO CREATE A COST
EFFECTIVE AND VALUABLE RESOURCE
THAT ULTIMATELY HAS VALUE TO
CALIFORNIA. WHEN I SAY VALUE, I
DISTINGUISH THAT FROM COST,
BECAUSE OBVIOUSLY WE AS AN
INDUSTRY ARE NOT ONLY DELIVERING
CLEAN ELECTRONS, WE ARE ALSO
HELPING TO BUILD JOBS AND DRIVE
ECONOMIC DEVELOPMENT. THAT THAT
VALUE IS CRITICAL. I WOULD SAY
ONE OTHER FEATURE AS WELL IS
THAT A MATURE SUPPLY CHAIN IS A
FEATURE OF AN INDUSTRY THAT HAS
DEVELOPED AND HAS LOWER COSTS ON
THE EAST COAST, THEY HAVE USED
THE OFFSHORE WIND SOLICITATION
PROCESS TO DRIVE INVESTMENTS IN
THE SUPPLY CHAIN, TO DRIVE
INVESTMENTS IN TIER ONE. YOU
KNOW, MANUFACTURERS AND
COMMUNITY BENEFITS THAT IS NOT
SOMETHING WE NEED TO DO THAT IN
CALIFORNIA, BUT WE NEED TO
FIGURE OUT A WAY TO DO THAT
WITHOUT ADDING THAT INTO THE
COST OF ENERGY. THAT MEANS,
AGAIN, INVESTMENTS IN PORTS AS A
LOCUS OF WHERE THOSE JOBS AND
ECONOMIC DEVELOPMENT AND SUPPLY
CHAIN GROWS. BUT THE STATE NEEDS
TO THINK CREATIVELY ABOUT HOW IT
IS GOING TO DELIVER AND
INCENTIVIZE THOSE IMPORTANT
ECONOMIC BENEFITS WITHOUT
INCREASING THE COST OF
ELECTRICITY. YES WE DO. CAN I
ADD ONE? OH, OF COURSE, YES,
PLEASE. JUST VERY IT'S A VERY
SMALL PIECE, BUT AS YOU PROBABLY
KNOW, THE FEDERAL, FLOATING
OFFSHORE WIND SHOT FROM THE
DEPARTMENT OF ENERGY HAS A
SPECIFIC GOAL OF DRIVING DOWN
THE COST BY 70% OVER AN
ACCELERATED TIMELINE FOR
FLOATING OFFSHORE WIND. AND THEY
ARE PUTTING RESOURCES INTO
TECHNOLOGY AND OTHER INNOVATIONS
THAT WILL HELP IN THAT
ACCELERATION. SO, SO I THINK,
MAKING SURE THAT WE ARE,
PARTNERING REALLY WELL WITH THAT
EFFORT IS GOING TO BE IMPORTANT.
YEAH. AND I SO APPRECIATE YOU
HIGHLIGHTING THAT. I THINK,
WE'RE AT A MOMENT WHERE WE'RE
FACING SOME INCREDIBLY SOME
OFTENTIMES DAUNTING CHALLENGES,
BUT IT'S ALSO REALLY AND TRULY A
HISTORIC OPPORTUNITY. AND I
THINK WE'VE SEEN UNDER THIS
ADMINISTRATION'S LEADERSHIP,
JUST THIS UNPRECEDENTED
INVESTMENT IN HELPING, YOU KNOW,
NOT JUST CALIFORNIA, BUT AMERICA
AND HOPEFULLY THE WORLD BUILD A
CLEAN ENERGY FUTURE. SO I DO
THINK IT'S AN EXCITING, REALLY
EXCITING MOMENT. YEAH, I HAVE A
FEW MORE QUESTIONS, BUT IN THE
INTEREST OF TIME, I'M GOING TO
FOLLOW UP ON THOSE OFFLINE AND
JUST CLOSE WITH WE'LL CALL IT
THE LIGHTNING ROUND. SO, I'D
LOVE TO HEAR JUST THE NUMBER ONE
THING. SO WHAT'S THE NUMBER ONE
THING THAT YOU NEED FROM
CALIFORNIA POLICYMAKERS IN THE
NEXT 12 MONTHS? A FINANCING
PLAN, LONG TERM FINANCING PLAN.
WE NEED TO SUCCESSFULLY PARTNER
WITH THE LESSEES SO WE CAN
EXPEDITE THEIR PROGRAM. AND
UNWAVERING COMMITMENT TO DRIVING
FORWARD THE INDUSTRY ON A CLEAR
TIME FRAME THAT HELPS US ACHIEVE
OUR PROJECT. TIMELINES IN
CALIFORNIA'S CLIMATE GOALS. YOU
KNOW, FROM THE FEDERAL
PERSPECTIVE, I THINK YOU KNOW
WHAT IS TO CONTINUE THE
PARTNERSHIP THAT WE HAVE WITH
CALIFORNIA ALL ALONG. I MEAN,
THIS STARTED IN 2016. IT'S BEEN
GREAT, A GREAT PARTNERSHIP. AND
I JUST THINK THAT, YOU KNOW, FOR
US TO ACHIEVE THE GOALS THAT
CALIFORNIA HAS, YOU KNOW, THAT
PARTNERSHIP NEEDS TO CONTINUE
ALL THE WAY THROUGH, YOU KNOW,
FINDING ADDITIONAL AREAS TO
WORKING TOGETHER TO FIGURE OUT
THE PERMITTING AND EVERYTHING
FORWARD. AND IT'S, YOU KNOW,
THAT'S REALLY WHAT FROM A
FEDERAL PERSPECTIVE, WHAT WE
NEED FROM CALIFORNIA. SO THANK
YOU AGAIN FOR HOLDING THIS
CONVENING. THERE'S NOT ONLY ONE,
BUT BUT ONE THAT COMES UP THAT
THAT I THINK, I SAID IT IN MY
OPENING COMMENTS, AND I THINK
THIS IS A REALLY INTERESTING
PIECE OF ALL THIS THAT DOESN'T
GET MAYBE ENOUGH AIRTIME IS, YOU
KNOW, WHEN WE TALK ABOUT
ECOSYSTEM ADAPTIVE MANAGEMENT
AND WE TALK ABOUT BUILDING OUT
THIS BIG INFRASTRUCTURE IN THE
OCEAN, CALIFORNIA HAS A, HAS
AMAZING EXPERTISE IN THE ABILITY
TO DO THIS REALLY WELL. AND
COMPATIBLY WITH THE ENVIRONMENT
AND WITH WITH, TRIBAL PRIORITIES
AND CULTURAL RESOURCES AND
LEANING INTO THAT NOT ONLY AS A,
AS A PART OF, YOU KNOW, DUE
DILIGENCE, DOING THINGS WELL,
BUT ALSO AS A PART OF THE
ECONOMIC DEVELOPMENT STORY IN
THESE REGIONS, IN CALIFORNIA,
WHERE THIS IS GOING FORWARD AND
ACROSS THE STATE AND WITH OUR
FEDERAL AND TRIBAL PARTNERS, IS
REALLY IMPORTANT. SO I KNOW
THAT'S NOT IT'S A IT'S A
AMORPHOUS SORT OF ASK. BUT I DO
THINK THAT WE TEND TO THINK
ABOUT ECOSYSTEM ADAPTIVE
MANAGEMENT AS IT RELATES TO THE
REGULATORY PIECE. WHEN WE HAVE
REALLY GOOD EXAMPLES, TOO, OF
SORT OF STEADY ECONOMIC GROWTH
AROUND RESEARCH AND INNOVATION
CLUSTERS. YOU KNOW, WHAT HAPPENS
WHEN YOU PUT A NATIONAL LAB
SOMEWHERE OR A SCRIPPS OR A
WOODS HOLE, SO THAT WOULD THAT'S
SOMETHING THAT THAT I THINK
DESERVES MORE THOUGHT,
PARTNERSHIP AND FOCUS. THANKS
YEAH. I WOULD SAY, FROM THE
PUBLIC UTILITIES COMMISSION
PERSPECTIVE, ANY NON RATEPAYER
SOURCES OF FUNDING THAT ARE ABLE
TO ENHANCE AFFORDABILITY OF, YOU
KNOW, NEW RESOURCES LIKE THESE.
SO, THAT'S JUST, YOU KNOW, ON MY
FRONTAL LOBE EVERY DAY, AND I'VE
BEEN TRYING TO MOVE THESE
RESOURCES FORWARD AND WILL
CONTINUE TO DO THAT, BUT ALWAYS
LOOKING FOR NON RATEPAYER
SOURCES OF FUNDING TO HELP
ENHANCE AFFORDABILITY. WELL,
THANK YOU AND JUST THANK YOU
ONCE AGAIN TO ALL OF OUR
PANELISTS. WE REALLY REALLY
APPRECIATE YOU BEING HERE. YOUR
EXPERTISE, YOUR INSIGHTS AND
YOUR ENGAGEMENT. AND LOOK
FORWARD TO CONTINUING TO PARTNER
WITH YOU AS, WE MEET THESE
CHALLENGES AND MAKE CALIFORNIA'S
OFFSHORE WIND GOALS A REALITY.
SO THANK YOU SO MUCH. AND I
THINK WITH THAT, WE'LL GO AHEAD
AND OPEN IT UP FOR PUBLIC
COMMENT. THANK YOU. THANK.
WELCOME. IF YOU'D LIKE TO. YES.
GREAT. IF YOU'D LIKE TO
PARTICIPATE IN PUBLIC COMMENT,
YOU CAN GO AHEAD AND APPROACH
THE MICROPHONE. AND WE JUST ASK
EVERYONE IF YOU CAN KEEP YOUR
COMMENTS TO ABOUT A MINUTE SO
EVERYONE HAS A CHANCE. THANK
YOU. GOOD AFTERNOON CHAIR MOLLY
CROWELL WITH AMERICAN CLEAN
POWER ASSOCIATION. WE REPRESENT
DIVERSE CLEAN ENERGY DEVELOPERS
IN THIS STATE, INCLUDING THE
FIVE CALIFORNIA LEASEHOLDERS. I
WANT TO THANK YOU ESPECIALLY FOR
PUTTING TOGETHER SUCH AN
EXCELLENT PANEL. THE QUALITY OF
THIS DISCUSSION WAS GREAT, ALSO
REALLY APPRECIATE WHAT YOU SAID
ABOUT BEING CLEAR EYED ABOUT
WHAT THIS INDUSTRY IS GOING TO
TAKE, BUT ALSO EMBRACING THIS AS
OUR MOMENT TO DO THE HARD, BIG,
INNOVATIVE THING IN THE FORM OF
OFFSHORE WIND. SO THANK YOU FOR
THAT. AND THANK YOU TO THE OTHER
MEMBERS ON THE DAIS HERE FOR
YOUR QUESTIONS. AND COMMENTS.
VERY MUCH APPRECIATE THAT. I
THINK, AS IT WAS VERY CLEAR
TODAY, THE SUPPORT OF THE STATE
IS GOING TO BE SO ESSENTIAL TO
THIS INDUSTRY. I THINK WE HEARD
PRIVATE INDUSTRY CAN'T DO IT
ALONE, BUT WE ARE BUILDING
MOMENTUM REALLY BIG THINGS THIS
YEAR WITH THE PROPOSED DECISION
IN CENTRAL PROCUREMENT.
TREMENDOUSLY IMPORTANT, AS IS
THE TPP APPROVAL AND THE
POTENTIAL FOR PORT FUNDING
THROUGH PROPOSITION FOUR, WE'RE
EXCITED TO CONTINUE TO BUILD ON
THAT MOMENTUM. I THINK AS YOU
HEARD FROM TYLER, THE INDUSTRY
IS HERE. YOU KNOW, INVESTING IN
COMMUNITIES, BUILDING OUT THEIR
TEAMS, EMBEDDING THEIR ENGAGING
WITH TRIBES, MAKING INVESTMENTS.
SO WE'RE SERIOUS AND LOOK
FORWARD TO A HEARING LIKE THIS
NEXT YEAR, WHERE WE'LL BE ABLE
TO SHOW EVEN GREATER PROGRESS
FROM BOTH THE STATE. SO THANK
YOU VERY MUCH. YEAH THANK YOU.
CHAIR I'M ADAM STERN, EXECUTIVE
DIRECTOR OF OFFSHORE WIND
CALIFORNIA. WE'RE A TRADE GROUP,
REPRESENTS THE OFFSHORE WIND
INDUSTRY IN OUR STATE. I WANT TO
THANK YOU, TOO, FOR HOLDING THIS
HEARING. IT'S TERRIFIC TO BRING
TOGETHER THE WITNESSES THAT YOU
HAD AND TO GET THE GREAT
QUESTIONS FROM THE ASSEMBLY
MEMBERS. I WANT TO JUST PUT OUT
A NOTION HERE THAT 2024 IS
REALLY SHAPING UP AS THE YEAR
THAT OFFSHORE WIND TOOK OFF IN
CALIFORNIA. IF YOU LOOK AT THE
RANGE OF DECISIONS AND POLICY
ADVANCES THAT HAVE BEEN MADE
THAT HAVE BEEN DISCUSSED IN THIS
HEARING AROUND PORTS,
TRANSMISSION, PROCUREMENT,
PERMITTING, ALL THE THINGS THAT
ARE NECESSARY, THE ESSENTIAL
NEXT STEPS FOR OFFSHORE WIND TO
BECOME REAL. THEY'RE THEY'RE
HAPPENING. AND WHILE WE HAVE A
LONG JOURNEY AHEAD, LOTS OF
REVIEWS, LOTS OF PERMITTING
APPROVALS THAT ARE GOING TO BE
NECESSARY, WE ARE CHANGING THE
CONVERSATION TO WHETHER OFFSHORE
WIND IS COMING TO CALIFORNIA,
BUT HOW IT'S GOING TO HAPPEN AND
THE DIALOG THAT YOU'VE CREATED
HERE IS A VERY IMPORTANT PART OF
THAT PROCESS. THE OVERSIGHT ROLE
THAT THE LEGISLATURE PLAYS IN
LOOKING AFTER THE PROGRAMS THAT
YOU'RE HELPING TO FUND IS
WONDERFUL TO SEE. AND I LOOK
FORWARD TO CONTINUED DISCUSSION
WITH YOU AND YOUR COLLEAGUES.
GOOD AFTERNOON, MADAM CHAIR, AND
MEMBERS. TATUM EKELER WITH
SAMPSON ADVISORS ON BEHALF OF
VINEYARD OFFSHORE, ONE OF THE
LEASE HOLDERS DEVELOPING A
PROJECT UP ON THE NORTH COAST,
JUST WANTED TO ECHO THE COMMENTS
OF MOLLY KROLL WITH AMERICAN
CLEAN POWER. REALLY THANK YOU
FOR YOUR LEADERSHIP. APPRECIATE
THE CONVERSATION TODAY. THANK
YOU FOR YOUR LEADERSHIP, TOO.
ASSEMBLY MEMBER WOOD. AND JUST
LOOK FORWARD TO THE CONTINUED
COLLABORATION ON THIS IMPORTANT
ENDEAVOR. GOOD AFTERNOON. THANK
YOU. CHAIR AND MEMBER WOODS, MY
NAME IS JADE CLEMENS. I'M THE
DIRECTOR AT ALTASEA, WHICH IS A
BLUE ECONOMY INNOVATION HUB
BASED IN THE PORT OF LOS
ANGELES. ALTASEA IS A STEADFAST
ADVOCATE FOR MARINE RENEWABLE
ENERGY AND PARTICULARLY
PROPONENT OF THE CO-LOCATION OF
OFFSHORE WIND AND OFFSHORE WAVE
DEVICES IN THE SAME PLACES AND
THE SYNERGIES THAT CAN DEVELOP
THERE, LAST YEAR, AL-TUSI
SPONSORED SB 605, WHICH IS NOW
LAW DIRECTING THE CEC TO COMPILE
REPORT ANALYZING THE FEASIBILITY
OF WAVE AND TIDAL ENERGY
ADOPTION AT SCALE IN THE STATE.
AS THE CEC IS PRESENTLY
CONDUCTING THIS WORK, THE
BENEFITS OF CO-LOCATION, NAMELY
CO-LOCATING OFFSHORE WIND AND
OFFSHORE WAVE DEVICES TOGETHER,
IS A KEY TOPIC OF INTEREST. WAVE
ENERGY DEVICES ARE TYPICALLY
SIGNIFICANTLY SMALLER THAN
OFFSHORE WIND TURBINES AND MAKE
CO-LOCATION PHYSICALLY QUITE
FEASIBLE. CO-LOCATION CAN REDUCE
COSTS, TIME TO DEPLOYMENT,
AMPLIFY COMMUNITY BENEFITS, AND
ALSO REDUCE ENVIRONMENTAL
IMPACTS. WE JUST URGE THE
LEGISLATURE IN THE STATE AND ALL
STAKEHOLDERS TO KEEP TOP IN MIND
THESE CO-LOCATION OPPORTUNITIES
AS OFFSHORE WIND IS DEPLOYED IN
THE STATE. OFFSHORE WIND IS ONE
PIECE OF THE PUZZLE. WE THINK
OFFSHORE WAVE IS ANOTHER, AND
STRATEGIC DEPLOYMENT OF THESE
MARINE RENEWABLE ENERGY DEVICES
ALONGSIDE ONE ANOTHER WILL HELP
ENABLE CALIFORNIA TO EFFICIENTLY
AND SUSTAINABLY GET TO NET ZERO.
THANK YOU. THANK YOU. SLOWER.
GOOD AFTERNOON, MEMBERS OF THE
COMMITTEE. MY NAME IS ALEXIS
FETTERMAN, SPEAKING ON BEHALF OF
BRIGHTLINE DEFENSE. FIRST AND
FOREMOST, WANT TO THANK YOU FOR
PUTTING ON THIS REALLY IMPORTANT
HEARING. DEFINITELY LEARNED A
LOT AND WANTED TO SHARE THAT.
BRIGHTLINE IS AN ENVIRONMENTAL
JUSTICE ORGANIZATION WITH DEEP
ROOTS IN THE SAN FRANCISCO
COMMUNITY, AND WE KNOW THAT SAN
FRANCISCO, ALONG WITH A LOT OF
REGIONS IN CALIFORNIA, IS
EXPERIENCING AND EXPERIENCING A
MAJOR AIR QUALITY CRISIS DUE TO
CLIMATE CHANGE AND THE FOSSIL
FUEL ENERGY SYSTEM AND WE SEE A
LOT OF HOPE IN OFFSHORE WIND AS
AN IMPORTANT TOOL TO SUPPORT A
CLEANER, HEALTHIER AND MORE
RELIABLE GRID AND TO DELIVER
MEANINGFUL BENEFITS SUCH AS
IMPROVED AIR QUALITY AND GOOD
PAYING JOBS FOR THE PROCESS. IN
CALIFORNIA TO BE SUCCESSFUL, WE
NOTE THAT COMMUNITIES MUST BE
ABLE TO LEAD THE WAY. AS MANY
PANELISTS TODAY SHARED,
COMMUNITY ENGAGEMENT WILL BE
INSTRUMENTAL TO THE SUCCESS OF
OFFSHORE WIND, BUT SIMPLY NAMING
THIS WILL NOT BE ENOUGH. IN OUR
WORK, WE HEARD DIRECTLY FROM
LOCAL COMMUNITY AND TRIBAL
LEADERS THAT THEY'RE INTERESTED
IN ENGAGING IN OFFSHORE WIND
DEVELOPMENT, BUT THAT THEY
SEVERELY LACK THE RESOURCES AND
TECHNICAL EXPERTISE. AND WITHOUT
THESE RESOURCES, ENGAGEMENT WILL
NOT BE POSSIBLE, WHICH WOULD
LEAD VERY LIKELY LEAD TO MAJOR
ISSUES, DELAYS OR OTHERWISE
IRRESPONSIBLE DEVELOPMENT. WE
STRONGLY URGE CALIFORNIA TO
CHOOSE THE PATH WHERE
COMMUNITIES CAN SHAPE AND
BENEFIT FROM OFFSHORE WIND, AND
THIS WILL REQUIRE VARIOUS
ACTIONS, INCLUDING PASSING AB
2537 BY ASSEMBLY MEMBER OTIS TO
ENSURE THERE IS DEDICATED
FUNDING FOR COMMUNITY CAPACITY
BUILDING FOR OFFSHORE WIND.
BRIGHTLINE LOOKS FORWARD TO
MAKING CALIFORNIA TO PARTNERING
WITH YOU ALL TO MAKE CALIFORNIA
A LEADER IN INCLUSIVE AND
EQUITABLE OFFSHORE WIND
DEVELOPMENT. THANK YOU SO MUCH.
THANK YOU. THANK YOU VERY MUCH,
MADAM CHAIR. MY NAME IS DAN
JACOBSON WITH ENVIRONMENT
CALIFORNIA. WE'RE THE SPONSORS
OF AB 25 AND AB THREE. AND SO
REALLY PROUD AND EXCITED TO SEE
THIS HEARING HAPPENING. I'M
REALLY GLAD THAT YOU STARTED IT
OFF. TALKING ABOUT CLIMATE
CHANGE AND THE IMPACTS. AND AS
ONE OF THE PRESENTERS TALKED
ABOUT ALL THE DIFFERENT P'S THAT
HE HAD, I WANTED TO FOLLOW UP ON
THAT MANTRA FIRST, POWER PLANTS.
IF WE REALLY WANT TO HAVE THE
IMPACT ON CLIMATE CHANGE THAT
WE'RE TALKING ABOUT, WE TALK
ABOUT CLOSING DOWN THE EXISTING
FOSSIL FUEL POWER PLANTS AS WE
RAMP UP THE EXISTING CLEAN
ENERGY ONES. TWO IS
PARTICIPATION AB 2537, WHICH THE
BRIGHT LINE SPEAKER JUST TALKED
ABOUT IS A CRITICAL BILL. WE'VE
GOT TO SEE THAT PASSED SO THAT
LOCAL COMMUNITIES HAVE THE FUNDS
TO BE ABLE TO PARTICIPATE. THREE
PUBLIC EDUCATION, THE LATEST
WORKFORCE DEVELOPMENT REPORT
THAT JUST CAME OUT FROM THE
STATE LANDS COMMISSION REALLY
FOCUSES THAT WE DO NOT HAVE THE
WORKFORCE TO BE ABLE TO DO THIS.
SO I AGREE WE NEED STAGING AND
INTEGRATION, BUT IF WE DON'T
HAVE ANYBODY TO BUILD THE
STAGING AND INTEGRATION PORTS,
THEN WE'RE STUCK. SO WE NEED
THAT THREE POTS OF MONEY. THANK
YOU. FIRST OF ALL I KNOW IT'S
STRETCHING A LITTLE BIT. THERE
POTS OF MONEY. BUT WE NEED THE
YOU KNOW THANK YOU FOR THE
INVESTMENT IN THE CLIMATE BOND.
NOW WE NEED TO PASS THAT. BUT
ALSO THE $45 MILLION HAS TO GET
OUT THE GROUND PRICE. LET ME
JUST SAY THIS. WE'RE TALKING A
LOT ABOUT PRICE PROTECTING
RATEPAYERS. I TOTALLY AGREE. BUT
LET'S ALSO NOT FORGET WHAT THE
PRICE OF INACTION IS. THE STATE
OF CALIFORNIA SPENDS BILLIONS OF
DOLLARS EVERY SINGLE YEAR
BECAUSE WE'RE STUCK IN A CLIMATE
CRISIS. GOODNESS GRACIOUS. THANK
GOODNESS WE HAVE A BILL LIKE AB
2368, WHICH WILL HELP PROTECT
RATEPAYERS. BUT THERE'S STILL
MORE OF THAT THAT WE NEED TO
LOOK AT. WHAT HAPPENS IF WE
DON'T DO THIS AND WE'VE GOT TO
THINK ABOUT THAT AS WE THINK
ABOUT PRICE. THANK YOU VERY
MUCH. THANK YOU. GOOD AFTERNOON.
IT'S NEVER GOOD TO FOLLOW DAN
JACOBSON NANCY KERSHNER
RODRIGUEZ WITH THE OCEANIC
NETWORK. AND WE ARE A NATIONAL
NONPROFIT FOCUSED ON THE SUPPLY
CHAIN AND THE BUILD OUT OF THE
SUPPLY CHAIN. OUR MEMBERSHIP IS
SORT OF ALL THE PEOPLE THAT YOU
HAD AT THE TABLE TODAY. BUT
ACROSS THE COUNTRY, WE HAVE
SPENT NOW A DECADE FOCUSING IN
ON THE CHALLENGES OF BUILDING A
DOMESTIC SUPPLY CHAIN, I JUST
WANT TO SAY TODAY THAT IT IS
EXCITING. THANK YOU SO MUCH FOR
HAVING THIS HEARING FOR ALL OF
YOU. AND THE OTHER MEMBERS HAVE
DONE AS LEADERS TO MOVE THIS
INDUSTRY FORWARD, KNOWING HOW
MUCH WORK THAT WE HAVE AHEAD. WE
AS AN ORGANIZATION ARE COMMITTED
TO CONTINUING TO SUPPORT THAT
WITH OUR POLICY WORK AND OUR
COLLABORATIVE EFFORTS. AND I
WANT TO REALLY ENCOURAGE YOU TO
CELEBRATE THE AWARD THAT WAS
GIVEN TO HUMBOLDT AND FOCUS IN
ON WHAT ELSE WE CAN, WHAT OTHER
CREATIVE WAYS WE CAN PUT MONEY
TOGETHER TO BUILD OUT THE PORTS
SYSTEM AND THE WORKFORCE THAT
WE'RE GOING TO NEED TO DO THIS.
SO THANK YOU. THANK YOU. GOOD
MORNING, CHAIR LAURA LANE ON
BEHALF OF THE CALIFORNIA
ASSOCIATION OF PORT AUTHORITIES.
SO ONE OF YOUR P'S, AND ON
BEHALF OF THE 11 PUBLIC PORTS IN
CALIFORNIA, JUST THANK YOU FOR
HAVING THIS HEARING TODAY. THANK
YOU FOR YOUR CONTINUED SUPPORT.
YOU KNOW, THIS IS GOING TO BE AN
OPERATION THAT'S GOING TO
REQUIRE ALL OF OUR PORTS FROM
STAGING INTEGRATION FROM
HUMBOLDT DOWN TO SAN DIEGO. THE
PORTS ARE READY TO STEP UP AND
BE A PART OF THIS. SO THANK YOU
FOR YOUR LEADERSHIP AND THANK
YOU FOR ALLOWING US TO BE HERE
TODAY. THANK YOU. WELL, WITH
THAT, THAT CONCLUDES THE
BUSINESS OF TODAY'S HEARING. I
JUST WANT TO THANK EVERYONE
AGAIN WHO PARTICIPATED. THANK
ALL OF OUR PANELISTS AND VERY
MUCH LOOK FORWARD TO CONTINUING
THIS CONVERSATION AND CONTINUING
THIS WORK IN THE MONTHS AND
YEARS AHEAD. WITH THAT, WE'RE
ADJOURNED.