WEBVTT 00:00:00.000 --> 00:00:07.919 Unknown: plug 00:00:22.000 --> 00:00:23.920 Unknown: uh 00:04:00.000 --> 00:04:02.000 Unknown: Thank you. 00:04:30.000 --> 00:04:32.000 Unknown: Thank you. 00:05:00.000 --> 00:05:02.000 Unknown: Thank you. 00:05:30.000 --> 00:05:50.000 Unknown: Five seconds. 00:05:50.000 --> 00:05:52.000 Unknown: Greg's here. 00:05:52.000 --> 00:05:54.000 SPEAKER_10: Heidi's here. 00:05:54.000 --> 00:05:56.000 SPEAKER_10: Okay. 00:05:56.000 --> 00:06:10.000 Unknown: Good evening and welcome to the Energy Resources and Customer Services Committee and Special 00:06:10.000 --> 00:06:13.000 SPEAKER_10: Board Meeting of October 14th. 00:06:13.000 --> 00:06:16.000 SPEAKER_10: This meeting is being recorded and can be accessed on SMUD's website. 00:06:16.000 --> 00:06:20.199 SPEAKER_10: Please remember to unmute your microphone when speaking in order that our virtual attendees 00:06:20.199 --> 00:06:21.199 SPEAKER_10: may hear. 00:06:21.199 --> 00:06:25.399 Unknown: The microphone will display a green indicator light when the mic is on. 00:06:25.399 --> 00:06:29.480 SPEAKER_10: For members of the public attending in person that wish to speak at this meeting, please 00:06:29.480 --> 00:06:33.040 SPEAKER_10: fill out a speaker's request form located on the table outside this room and hand it 00:06:33.040 --> 00:06:34.680 SPEAKER_10: to security. 00:06:34.680 --> 00:06:38.959 SPEAKER_10: Members of the public attending this meeting virtually that wish to provide verbal comments 00:06:38.959 --> 00:06:44.360 SPEAKER_10: during the committee meeting may do so by using the raise hand feature in Zoom. 00:06:44.360 --> 00:06:47.800 SPEAKER_10: At the time the public comment is called, technical support staff will enable the audio 00:06:47.800 --> 00:06:51.120 SPEAKER_10: for you when your name is announced during the public comment period. 00:06:51.120 --> 00:06:56.439 SPEAKER_10: You may also submit written comments by emailing them to public comment at SMUD.org. 00:06:56.439 --> 00:07:01.000 SPEAKER_10: Written comments will not be read into the record but will be provided to the board electronically 00:07:01.000 --> 00:07:04.879 SPEAKER_10: and placed into the record of the meeting if received within two hours after the meeting 00:07:04.879 --> 00:07:06.379 SPEAKER_10: ends. 00:07:06.379 --> 00:07:08.720 SPEAKER_10: Chief legal officer, please conduct the roll call. 00:07:08.720 --> 00:07:09.720 Unknown: Dr. Sanborn? 00:07:09.720 --> 00:07:10.720 SPEAKER_08: Here. 00:07:10.720 --> 00:07:11.720 Unknown: Dr. Fishman? 00:07:11.720 --> 00:07:12.720 SPEAKER_08: Here. 00:07:12.720 --> 00:07:13.720 SPEAKER_08: Chair Buettomsen? 00:07:14.080 --> 00:07:15.080 SPEAKER_08: Present. 00:07:15.080 --> 00:07:16.680 SPEAKER_08: All committee members are present. 00:07:16.680 --> 00:07:18.480 SPEAKER_08: Also present are directors. 00:07:18.480 --> 00:07:19.480 SPEAKER_08: Rose Herber. 00:07:19.480 --> 00:07:21.360 Unknown: Perth and present Tamaya. 00:07:21.360 --> 00:07:22.360 Unknown: Okay. 00:07:22.360 --> 00:07:30.320 Unknown: So I am going to read something but just because I saw a bunch of people in the lobby. 00:07:30.320 --> 00:07:33.360 SPEAKER_10: Sometimes next door and social media is not correct. 00:07:33.360 --> 00:07:35.280 SPEAKER_10: That's my own personal commentary. 00:07:35.280 --> 00:07:38.800 SPEAKER_10: So I know there's lots of people inside and outside. 00:07:38.840 --> 00:07:44.319 SPEAKER_10: I wanted to be clear as to what is on the agenda and not on the agenda. 00:07:44.319 --> 00:07:50.600 SPEAKER_10: I know many people have reached out to the board, have posted that they think that we're 00:07:50.600 --> 00:07:52.720 SPEAKER_10: discussing data centers this evening. 00:07:52.720 --> 00:07:54.680 SPEAKER_10: It is not. 00:07:54.680 --> 00:07:56.960 SPEAKER_10: It's not an item that we can engage on. 00:07:56.960 --> 00:08:01.040 SPEAKER_10: It's not on our agenda. 00:08:01.040 --> 00:08:02.600 SPEAKER_10: We always allow public comments. 00:08:02.600 --> 00:08:06.480 SPEAKER_10: You're welcome to wait until the very end and comment as you wish. 00:08:06.480 --> 00:08:11.000 SPEAKER_10: But in terms of discussing anything tonight, data centers are not on the docket. 00:08:11.000 --> 00:08:13.560 Unknown: I also wanted to clear up. 00:08:13.560 --> 00:08:14.960 SPEAKER_10: I think some people are not aware. 00:08:14.960 --> 00:08:19.040 SPEAKER_10: We do have some information on our website that might be very helpful for people that 00:08:19.040 --> 00:08:21.759 SPEAKER_10: are not aware about our current data centers. 00:08:21.759 --> 00:08:28.680 SPEAKER_10: So I wanted to take this time to just briefly discuss SMUD's approach to large loads in 00:08:28.680 --> 00:08:34.639 SPEAKER_10: general so that the public here and those might be listening. 00:08:34.960 --> 00:08:39.319 SPEAKER_10: Data centers have been in our service territory for over two decades. 00:08:39.319 --> 00:08:42.319 SPEAKER_10: There are about 16 data centers in our service area today. 00:08:42.319 --> 00:08:46.919 SPEAKER_10: And they support vital services that our entire community relies on, including banking and 00:08:46.919 --> 00:08:47.919 SPEAKER_10: health care. 00:08:47.919 --> 00:08:53.360 SPEAKER_10: And just on a personal note, many of them are right by my house where I live. 00:08:53.360 --> 00:08:58.439 SPEAKER_10: While most attention focuses on massive hyperscale data centers booming in other parts of the 00:08:58.439 --> 00:09:02.360 SPEAKER_10: country, the Sacramento region is seeing a small number of data center inquiries and 00:09:02.360 --> 00:09:07.120 SPEAKER_10: projects without the same massive scale or volume that's seen throughout the rest of 00:09:07.120 --> 00:09:11.440 SPEAKER_10: the country, including Silicon Valley, Virginia or Texas. 00:09:11.440 --> 00:09:16.639 SPEAKER_10: We at SMUD, we don't make land use decisions for the development of data centers or other 00:09:16.639 --> 00:09:19.320 SPEAKER_10: large electrical load projects. 00:09:19.320 --> 00:09:24.200 SPEAKER_10: These decisions are made by local jurisdictions through open and public review processes, 00:09:24.200 --> 00:09:27.720 SPEAKER_10: including zoning, permitting and environmental review. 00:09:27.720 --> 00:09:31.240 SPEAKER_10: Once a project is approved, we're obligated to provide service. 00:09:31.240 --> 00:09:36.480 SPEAKER_10: We also have an obligation to our customers to keep rates affordable and the grid reliable 00:09:36.480 --> 00:09:37.480 SPEAKER_10: and safe. 00:09:37.480 --> 00:09:42.680 SPEAKER_10: That's why we provide technical expertise and consult very early on with potential large 00:09:42.680 --> 00:09:46.639 SPEAKER_10: electrical load customers, typically before a project is even submitted. 00:09:46.639 --> 00:09:51.440 SPEAKER_10: This early support and planning helps influence projects that maximize benefits for all customers. 00:09:51.440 --> 00:09:56.799 SPEAKER_10: For example, if a large electrical load customer can shift their usage outside of peak hours, 00:09:56.799 --> 00:10:01.159 SPEAKER_10: it minimizes the amount of energy we need to purchase during peak hours when the costs 00:10:01.159 --> 00:10:02.399 SPEAKER_10: are highest. 00:10:02.399 --> 00:10:05.519 SPEAKER_10: This keeps our rates low for all customers. 00:10:05.519 --> 00:10:11.240 SPEAKER_10: There's a lot more information, including a fact sheet and FAQs on our website at SMUD.org 00:10:11.240 --> 00:10:13.360 SPEAKER_10: forward slash large load projects. 00:10:13.360 --> 00:10:18.639 SPEAKER_10: I also want you to be aware that we'll be discussing large load, which is of interest 00:10:18.639 --> 00:10:24.959 SPEAKER_10: of people in discussing data centers on November 11th, so next month's meeting. 00:10:24.959 --> 00:10:28.839 SPEAKER_10: The agenda and presentation will be posted a week prior to the meeting, so you can review 00:10:28.839 --> 00:10:29.839 SPEAKER_10: those online. 00:10:30.160 --> 00:10:33.560 SPEAKER_10: We'll discuss SMUD's principles for serving large loads. 00:10:33.560 --> 00:10:37.600 SPEAKER_10: This includes reiterating SMUD's priorities and commitments, specifically our commitment 00:10:37.600 --> 00:10:43.160 SPEAKER_10: to ensuring other customers don't pay for the costs to serve these new large loads, 00:10:43.160 --> 00:10:46.120 SPEAKER_10: which includes and encompasses data centers. 00:10:46.120 --> 00:10:51.360 SPEAKER_10: That's how we've always approached serving new large electrical load customers, and we 00:10:51.360 --> 00:10:54.440 SPEAKER_10: will expand on that in November. 00:10:54.440 --> 00:10:59.000 SPEAKER_10: So tonight, actually on the agenda, we have two agenda items. 00:10:59.000 --> 00:11:04.559 SPEAKER_10: First we'll have a discussion about our IRP, our integrated resource plan, and that will 00:11:04.559 --> 00:11:06.039 SPEAKER_10: officially kick off that process. 00:11:06.039 --> 00:11:10.559 SPEAKER_10: It's a fairly long process, so tonight is the first of many. 00:11:10.559 --> 00:11:15.519 SPEAKER_10: We'll discuss the purpose of them, our approach, and talk about the timeline and public outreach 00:11:15.519 --> 00:11:16.519 SPEAKER_10: process. 00:11:16.519 --> 00:11:21.720 SPEAKER_10: The other agenda item is our Jackson-Bulk substation project. 00:11:21.720 --> 00:11:23.039 SPEAKER_10: Thank you all again for being here. 00:11:23.039 --> 00:11:27.159 SPEAKER_10: If you're interested in hearing the discussion about large loads and data centers, I encourage 00:11:27.159 --> 00:11:29.839 SPEAKER_10: you to come back on November 11th. 00:11:29.839 --> 00:11:36.839 SPEAKER_10: So tonight, item number one on tonight's agenda to kick us off for our 26-27 integrated resource 00:11:36.839 --> 00:11:44.719 SPEAKER_10: planning public process and provide our presentation, objectives, filing requirements, the history, 00:11:44.719 --> 00:11:48.639 SPEAKER_10: the key focuses of the IRP, and our community outreach. 00:11:48.639 --> 00:11:50.360 SPEAKER_10: Our presenter is Brian Smaughn. 00:11:50.360 --> 00:11:52.919 SPEAKER_10: He's the director of resource planning and settlements. 00:11:52.919 --> 00:11:54.679 Unknown: All right. 00:11:54.679 --> 00:11:55.679 SPEAKER_14: Thank you, Chair Buie-Thompson. 00:11:56.199 --> 00:11:58.079 SPEAKER_14: Good to see everyone here tonight. 00:11:58.079 --> 00:12:01.839 SPEAKER_14: Tonight, I guess again, my name is Brian Smaughn. 00:12:01.839 --> 00:12:06.359 SPEAKER_14: I'm the director of resource planning and settlements here at SMUD. 00:12:06.359 --> 00:12:11.759 SPEAKER_14: Tonight, excited to be here to kick off the public process to develop our next integrated 00:12:11.759 --> 00:12:13.919 SPEAKER_14: resource plan. 00:12:13.919 --> 00:12:20.279 SPEAKER_14: Through this process, we wish to engage with our board very heavily throughout this process, 00:12:20.279 --> 00:12:24.679 SPEAKER_14: but it's also very important to us to engage with the community. 00:12:24.679 --> 00:12:29.399 SPEAKER_14: We have a very comprehensive community engagement plan that we'll talk about later in this process. 00:12:29.399 --> 00:12:36.399 SPEAKER_14: So there's going to be a lot of time for us to really walk through the IRP, the assumptions, 00:12:36.399 --> 00:12:41.000 SPEAKER_14: the details, the tradeoffs, explore, pass forward from here. 00:12:41.000 --> 00:12:46.199 Unknown: And really at the end of this, we want to update our SD9 policy goals on the environmental 00:12:46.199 --> 00:12:48.479 SPEAKER_14: side, right? 00:12:48.480 --> 00:12:55.639 SPEAKER_14: It's also important to keep in mind as we kind of move ahead in this process to keep 00:12:55.639 --> 00:12:58.759 SPEAKER_14: focus on some of our core tenants, right? 00:12:58.759 --> 00:13:05.200 SPEAKER_14: Affordability is a big piece of what we do here as a community-owned and operated organization. 00:13:05.200 --> 00:13:13.560 SPEAKER_14: Our low rates relative to our IOU neighbors saves about $1.5 billion left in the economy 00:13:13.560 --> 00:13:17.840 SPEAKER_14: here, left in our customers' pockets maybe to spend on other things, right? 00:13:17.840 --> 00:13:23.280 SPEAKER_14: And technologies, electrification, maybe electrify their vehicle, right? 00:13:23.280 --> 00:13:26.040 SPEAKER_14: There's a lot of benefits to that affordability. 00:13:26.040 --> 00:13:31.759 SPEAKER_14: Low rates also incentivize electrification as well, right? 00:13:31.759 --> 00:13:36.639 SPEAKER_14: So more dollars in our customers' pockets to electrify, but also maintaining affordable 00:13:36.639 --> 00:13:42.879 SPEAKER_14: rates is critical to decarbonizing the areas in our economy that provide so much in the 00:13:42.879 --> 00:13:48.559 SPEAKER_14: way of poor air quality and also greenhouse gas emissions. 00:13:48.559 --> 00:13:54.259 SPEAKER_14: On the reliability side, you know, that's absolutely critical as well as a utility here, 00:13:54.259 --> 00:13:55.259 SPEAKER_14: electric utility. 00:13:55.259 --> 00:13:59.480 SPEAKER_14: Anytime our customers flip that light switch, we want to be there for them, right? 00:13:59.480 --> 00:14:01.639 SPEAKER_14: That's absolutely critical. 00:14:01.639 --> 00:14:05.899 SPEAKER_14: Provides much in the way of really powering the region. 00:14:05.899 --> 00:14:09.919 SPEAKER_14: Everything that goes on here in Sacramento starts with electricity, right? 00:14:09.919 --> 00:14:15.519 SPEAKER_14: You think about the hospitals, the airports, grocery stores, right? 00:14:15.519 --> 00:14:21.319 SPEAKER_14: Right here, SMUD, or the family in the morning that turns on the power for the morning, right? 00:14:21.319 --> 00:14:22.319 SPEAKER_14: Starts that coffee. 00:14:22.319 --> 00:14:23.439 SPEAKER_14: Really gets the day going. 00:14:23.439 --> 00:14:29.039 SPEAKER_14: So reliability is another key pillar for us as part of this process. 00:14:29.039 --> 00:14:34.639 SPEAKER_14: So we really need to make sure we maintain reliable service for our customers. 00:14:34.639 --> 00:14:36.959 SPEAKER_14: That leaves sustainability, right? 00:14:36.959 --> 00:14:38.379 SPEAKER_14: We do want to be sustainable. 00:14:38.399 --> 00:14:44.779 SPEAKER_14: We have been environmental leaders in energy over the last many decades. 00:14:44.779 --> 00:14:51.759 SPEAKER_14: And so we need to really take a look at our path going forward, seeing how we can balance 00:14:51.759 --> 00:14:57.259 SPEAKER_14: these three key pillars, right, as part of the IRP. 00:14:57.259 --> 00:15:05.179 Unknown: And again, we're just kicking off the public process tonight. 00:15:05.179 --> 00:15:10.120 SPEAKER_14: It's really tonight's about kind of the what, the when, the why, the how of the IRP. 00:15:10.120 --> 00:15:14.039 SPEAKER_14: So there's not much detail here, but we're talking about the process and really why we 00:15:14.039 --> 00:15:18.599 SPEAKER_14: need to update the integrated resource plan. 00:15:18.599 --> 00:15:23.059 SPEAKER_14: Our current IRP was adopted in 2021. 00:15:23.059 --> 00:15:25.779 SPEAKER_14: That's our 2030 zero carbon plan, right? 00:15:25.779 --> 00:15:30.000 SPEAKER_14: And today, as we've been discussing the last year, there's a lot of conditions that have 00:15:30.000 --> 00:15:33.539 SPEAKER_14: changed with that IRP. 00:15:33.539 --> 00:15:38.679 SPEAKER_14: Costs for one have increased so rapidly the last five or six years. 00:15:38.679 --> 00:15:43.199 SPEAKER_14: Solar went up two to three times what it was in 2020. 00:15:43.199 --> 00:15:44.740 SPEAKER_14: Wind has doubled. 00:15:44.740 --> 00:15:47.459 SPEAKER_14: Geothermal costs have doubled as well. 00:15:47.459 --> 00:15:50.659 SPEAKER_14: Storage two to three times what it cost in 2020. 00:15:50.659 --> 00:15:56.699 SPEAKER_14: So there's a lot of challenges with that current IRP. 00:15:56.699 --> 00:16:02.459 SPEAKER_14: Also mentioned the lack of new emerging clean technologies, right? 00:16:02.460 --> 00:16:07.920 SPEAKER_14: Those technologies that needed to address the remaining 10 percent of our emissions. 00:16:07.920 --> 00:16:10.639 SPEAKER_14: We thought about long duration energy storage. 00:16:10.639 --> 00:16:13.780 SPEAKER_14: We thought about carbon capture, hydrogen fuel, right? 00:16:13.780 --> 00:16:18.720 SPEAKER_14: Those are things that are not quite ready at scale at the price needed for us here to 00:16:18.720 --> 00:16:20.580 SPEAKER_14: maintain affordable rates. 00:16:20.580 --> 00:16:26.800 Unknown: And so we'll go through this process and really update the assumptions and really look at 00:16:26.800 --> 00:16:28.980 SPEAKER_14: several paths forward. 00:16:29.000 --> 00:16:34.279 SPEAKER_14: As I mentioned on the intro slide there, we will be engaging with the community. 00:16:34.279 --> 00:16:36.980 SPEAKER_14: We have a very comprehensive outreach plan. 00:16:36.980 --> 00:16:39.100 SPEAKER_14: Our corporate comms team has been working on that. 00:16:39.100 --> 00:16:42.480 SPEAKER_14: We'll share some more about that later in the slide deck. 00:16:42.480 --> 00:16:45.120 SPEAKER_14: We're also including industry in this process. 00:16:45.120 --> 00:16:52.840 SPEAKER_14: We have the energy and environmental economics consultants, also known as E3, to help support 00:16:52.840 --> 00:16:55.000 SPEAKER_14: this IRP development. 00:16:55.000 --> 00:16:58.220 SPEAKER_14: They've been part of the last two IRP developments. 00:16:58.240 --> 00:17:05.500 SPEAKER_14: And so they're very familiar with SMUD, our board, our desires, the community as well. 00:17:05.500 --> 00:17:07.360 SPEAKER_14: And they're familiar with our system. 00:17:07.360 --> 00:17:09.200 SPEAKER_14: And that helps a lot in this process. 00:17:09.200 --> 00:17:15.620 SPEAKER_14: They'll also be part of discussions with the public as part of that community outreach 00:17:15.620 --> 00:17:18.299 SPEAKER_14: process. 00:17:18.299 --> 00:17:25.460 SPEAKER_14: We'll touch more on the actual what as part of that community outreach later in this deck. 00:17:25.539 --> 00:17:32.460 SPEAKER_14: At the end of this process, as Chair Buie-Thompson mentioned, this is a pretty long process. 00:17:32.460 --> 00:17:39.420 SPEAKER_14: We're shooting out to April to really end this process with a board adopted IRP. 00:17:39.420 --> 00:17:45.620 SPEAKER_14: And at that time, we'll follow up with updating our Strategic Direction IX policy goals. 00:17:45.620 --> 00:17:47.940 SPEAKER_14: That's a typical process. 00:17:47.940 --> 00:17:54.380 SPEAKER_14: Align internal policy goals with the IRP that's adopted by the board. 00:17:54.380 --> 00:17:59.920 SPEAKER_14: And the final act is really to file that IRP with the California Energy Commission, 00:17:59.920 --> 00:18:02.220 SPEAKER_14: no later than September 2027. 00:18:02.220 --> 00:18:04.220 SPEAKER_14: That kind of closes the cycle. 00:18:09.820 --> 00:18:17.860 SPEAKER_14: I thought I'd share some historical perspective on planning forward. 00:18:17.860 --> 00:18:22.860 SPEAKER_14: You know, SMUD has had a great history of planning forward. 00:18:22.859 --> 00:18:29.859 SPEAKER_14: My colleague Joyce Hribar had sent me this 10-year look back in 1946 to 1956. 00:18:29.859 --> 00:18:32.979 SPEAKER_14: Thanks, Joyce. 00:18:32.979 --> 00:18:40.899 SPEAKER_14: This 10-year look back again summarized a lot of what happened between 1946 and 1956. 00:18:40.899 --> 00:18:46.979 SPEAKER_14: But it also had some forward-looking nuggets in this report. 00:18:46.979 --> 00:18:50.939 SPEAKER_14: At the time, SMUD's general manager was James E. McCaffrey. 00:18:50.940 --> 00:18:56.140 SPEAKER_14: And that first 10-year period was a stretch of enormous growth in the region, presenting 00:18:56.140 --> 00:19:03.860 SPEAKER_14: the growing need for more electricity, but also the need for forward-looking planning. 00:19:03.860 --> 00:19:06.019 SPEAKER_14: Population locally was about 400,000. 00:19:06.019 --> 00:19:13.299 SPEAKER_14: Our economy included large farming operations, food processing plants, railroad shops, government 00:19:13.299 --> 00:19:19.460 SPEAKER_14: air-based installations, lumber retailers, and state government facilities, as well as 00:19:19.460 --> 00:19:24.860 SPEAKER_14: the residences that employed those areas. 00:19:24.860 --> 00:19:28.240 SPEAKER_14: In SMUD's first 10 years of operation, our customers tripled. 00:19:28.240 --> 00:19:35.220 SPEAKER_14: Peak loads grew by 228 percent to about a whopping 220 megawatts. 00:19:35.220 --> 00:19:38.880 SPEAKER_14: Today it's about 3,300 megawatts peak load. 00:19:38.880 --> 00:19:42.660 SPEAKER_14: Energy demand grew by 175 percent. 00:19:42.660 --> 00:19:47.900 SPEAKER_14: And seeing the need for more electricity back then, in 1952, we said, hey, we need something 00:19:47.900 --> 00:19:48.900 SPEAKER_14: more, right? 00:19:48.900 --> 00:19:53.060 SPEAKER_14: We plan the 40-year contract for the Central Valley project. 00:19:53.060 --> 00:19:58.860 SPEAKER_14: That's a Bureau of Reclamation project, hydro project here in California. 00:19:58.860 --> 00:20:03.580 SPEAKER_14: 290,000 kilowatt hours at about $4 a megawatt hour. 00:20:03.580 --> 00:20:08.740 SPEAKER_14: So really great deal by today's standards. 00:20:08.740 --> 00:20:14.100 SPEAKER_14: Also planners identified the need to expand our system to support growth in the region, 00:20:14.099 --> 00:20:20.419 SPEAKER_14: constructing the North City substation in 1950, South City substation in 1953, the 00:20:20.419 --> 00:20:26.500 SPEAKER_14: Alberta substation in 1954, and drawing lines between those substations and other existing 00:20:26.500 --> 00:20:34.699 SPEAKER_14: subs really to support the delivery of energy and to support the growth in the region. 00:20:34.699 --> 00:20:41.419 SPEAKER_14: And I'll note, you know, kind of the biggest, you know, example of just looking forward 00:20:42.180 --> 00:20:44.340 SPEAKER_14: is the development of the UART. 00:20:44.340 --> 00:20:51.220 Unknown: At that time, someone had the idea to look east, right, look into the Sierras to build 00:20:51.220 --> 00:20:55.620 SPEAKER_14: the Upper American River project. 00:20:55.620 --> 00:21:03.180 SPEAKER_14: In 1955, we issued an $85 million bond to fund the first phase of that very valuable 00:21:03.180 --> 00:21:04.180 SPEAKER_14: project. 00:21:04.180 --> 00:21:12.580 SPEAKER_14: Between four hydro plants, 206 megawatts, and in 1956, we received our federal permits 00:21:12.580 --> 00:21:14.700 SPEAKER_14: to build that project. 00:21:14.700 --> 00:21:20.660 Unknown: And in 1957, we broke ground on construction and the rest is history, right? 00:21:20.660 --> 00:21:26.660 SPEAKER_14: It's probably the greatest asset we have in our portfolio today is the UART. 00:21:26.660 --> 00:21:28.660 SPEAKER_14: Clean, low cost, and reliable. 00:21:29.620 --> 00:21:32.100 Unknown: So that's kind of a fun look back in time. 00:21:43.620 --> 00:21:50.019 SPEAKER_14: Most recently, our resource planning activities have been guided by SD9, right, our Strategic 00:21:50.019 --> 00:21:52.460 SPEAKER_14: Direction 9. 00:21:52.460 --> 00:22:00.059 SPEAKER_14: This directive has all of our major policy goals focused on energy supply but also electrification, 00:22:00.059 --> 00:22:01.059 SPEAKER_14: right? 00:22:01.059 --> 00:22:08.059 Unknown: In 2004, SD9 was established and we set many goals throughout the year and achieved many 00:22:08.059 --> 00:22:09.059 SPEAKER_14: goals. 00:22:09.059 --> 00:22:16.380 SPEAKER_14: In 2010, we're the first California utility to be 20% renewable. 00:22:17.300 --> 00:22:23.420 SPEAKER_14: In 2008, we set a goal for 90% below 1990 level GHG by 2050. 00:22:23.420 --> 00:22:29.700 Unknown: And while that was great, we said, hey, we need kind of a milestone marker in between 00:22:29.700 --> 00:22:37.500 SPEAKER_14: those two points and we set a 2020 goal to get us on track to that 2050 target. 00:22:37.500 --> 00:22:44.180 Unknown: 2018, we went through a public process to develop our net zero 2040 goal. 00:22:44.180 --> 00:22:50.259 SPEAKER_14: A million metric tons in our energy supply in 2040 offset by electrification of a million 00:22:50.259 --> 00:22:54.460 SPEAKER_14: metric tons again in 2040. 00:22:54.460 --> 00:22:59.660 SPEAKER_14: Most recently, our board adopted our 2021 IRP and that was a zero carbon plan. 00:22:59.660 --> 00:23:03.019 SPEAKER_14: And we knew at that time that plan was going to be challenging. 00:23:03.019 --> 00:23:07.340 SPEAKER_14: We all shook our heads and said, yeah, it's going to be a moonshot goal, right? 00:23:07.340 --> 00:23:10.980 SPEAKER_14: That's aspirational, but let's see what we can do to try to achieve it. 00:23:10.980 --> 00:23:16.019 SPEAKER_14: And so since then, we've been on this path to try to achieve as much as we can within 00:23:16.019 --> 00:23:19.860 SPEAKER_14: our guardrails. 00:23:19.860 --> 00:23:25.019 SPEAKER_14: So the question now is, you know, where do we go from here? 00:23:25.019 --> 00:23:27.620 SPEAKER_14: I think that's the natural question, right? 00:23:27.620 --> 00:23:35.299 SPEAKER_14: With all the challenges and the plan today, you know, the idea is really to explore various 00:23:35.299 --> 00:23:40.259 SPEAKER_14: paths going forward, given the kind of the realities that we're living in today, high 00:23:40.259 --> 00:23:48.460 SPEAKER_14: cost, lacking new technology, but also focusing on the benefits of electrification in the 00:23:48.460 --> 00:23:53.379 SPEAKER_14: region. 00:23:53.379 --> 00:23:56.919 SPEAKER_14: And some folks may not be familiar with an integrated resource plan. 00:23:56.919 --> 00:23:59.259 SPEAKER_14: So I thought this could be helpful. 00:23:59.259 --> 00:24:01.980 SPEAKER_14: Just walking through what an IRP is. 00:24:02.980 --> 00:24:09.940 Unknown: An IRP is a long-term utility planning study, typically looking 10 plus years ahead and 00:24:09.940 --> 00:24:13.779 SPEAKER_14: evaluating paths to meet our customers' demand, right? 00:24:13.779 --> 00:24:18.380 SPEAKER_14: We want to look at the demand of our customers, how is that growing over time, and what types 00:24:18.380 --> 00:24:22.299 SPEAKER_14: of resources can we meet that demand with? 00:24:22.299 --> 00:24:28.140 SPEAKER_14: Or perhaps maybe it's demand side programs with our customers. 00:24:28.140 --> 00:24:33.340 SPEAKER_14: So looking at those things and then evaluating the tradeoffs between the paths. 00:24:33.340 --> 00:24:40.660 SPEAKER_14: And really keeping into focus that reliability, affordability, and sustainability goal of 00:24:40.660 --> 00:24:43.259 SPEAKER_14: the organization. 00:24:43.259 --> 00:24:48.020 SPEAKER_14: Also good to point out that these plans have a limited shelf life, right? 00:24:48.020 --> 00:24:52.259 SPEAKER_14: Things can change pretty rapidly as they have the last five years. 00:24:52.259 --> 00:24:59.099 SPEAKER_14: We need to be prepared to adjust and kind of change our course periodically. 00:24:59.099 --> 00:25:04.539 SPEAKER_14: These IRPs also help us from a strategic perspective. 00:25:04.539 --> 00:25:11.099 SPEAKER_14: We use these IRPs to change our policy goals in SC9 as I previously mentioned. 00:25:11.099 --> 00:25:15.500 SPEAKER_14: And last but not least here, an IRP helps us meet our statutory requirement with the 00:25:15.500 --> 00:25:18.259 SPEAKER_14: California Energy Commission. 00:25:18.259 --> 00:25:25.779 SPEAKER_14: We have to supply a compliant IRP per Senate Bill 350 once every five years. 00:25:25.779 --> 00:25:32.259 SPEAKER_14: Our last filing of this ECP was in 2022 and our next filing date is no later than September 00:25:32.259 --> 00:25:35.539 SPEAKER_14: 2027. 00:25:35.539 --> 00:25:40.140 SPEAKER_14: And one last mention here is that IRP has to be board adopted through a public process, 00:25:40.140 --> 00:25:41.140 SPEAKER_14: right? 00:25:41.140 --> 00:25:43.420 SPEAKER_14: So that's very important to point out here. 00:25:43.420 --> 00:25:50.580 SPEAKER_14: That's part of why we want to engage with the public, right? 00:25:50.580 --> 00:25:53.420 SPEAKER_14: So that's what an IRP is. 00:25:53.420 --> 00:25:55.980 SPEAKER_14: It's also good to know what an IRP is not. 00:25:55.980 --> 00:26:00.779 SPEAKER_14: An IRP is not a definitive roadmap to achieve our goals. 00:26:00.779 --> 00:26:03.660 SPEAKER_14: As I pointed out, assumptions can change and will change, right? 00:26:03.660 --> 00:26:09.180 SPEAKER_14: And we need to be able to adjust to that and kind of chart our way as we deal with those 00:26:09.180 --> 00:26:10.180 SPEAKER_14: realities. 00:26:10.940 --> 00:26:18.860 Unknown: IRP is also not a substitute for ongoing organizational decisions nor is it a playbook for specific 00:26:18.860 --> 00:26:21.900 SPEAKER_14: projects or programs. 00:26:21.900 --> 00:26:30.180 SPEAKER_14: For example, the IRP is going to say we need so much wind, so much solar, so much geothermal. 00:26:30.180 --> 00:26:34.580 SPEAKER_14: During implementation and execution, we'll go out and try to survey, you know, where's 00:26:34.580 --> 00:26:40.140 SPEAKER_14: the best cost resource out there, lowest environmental impacts, meets our policy needs, and so on. 00:26:41.100 --> 00:26:44.500 SPEAKER_14: So that's more of an implementation thing. 00:26:44.500 --> 00:26:49.140 Unknown: An IRP also is not a guarantee of outcomes. 00:26:49.140 --> 00:26:53.500 SPEAKER_14: And so we cannot perfectly predict the future, especially when we're looking 10 plus years 00:26:53.500 --> 00:26:54.500 SPEAKER_14: down the road, right? 00:26:54.500 --> 00:27:02.220 SPEAKER_14: This is kind of just opening the door to seeing what's before us as part of this IRP. 00:27:02.220 --> 00:27:06.140 SPEAKER_14: Last but not least, an IRP is not a rate-making process. 00:27:06.140 --> 00:27:08.940 SPEAKER_14: We're not here to set rates as part of this process. 00:27:08.940 --> 00:27:11.340 SPEAKER_14: We're looking more long-term. 00:27:11.340 --> 00:27:19.299 SPEAKER_14: We do have the rates process coming in mid-2027 that will address the rates for the year 2028 00:27:19.299 --> 00:27:20.299 SPEAKER_14: and 2029. 00:27:26.299 --> 00:27:32.460 Unknown: And as we go through this process, we'll evaluate and consider a number of key variables in 00:27:32.460 --> 00:27:34.580 SPEAKER_14: the IRP. 00:27:34.580 --> 00:27:36.019 SPEAKER_14: Load growth is certainly one, right? 00:27:36.019 --> 00:27:39.099 SPEAKER_14: We need to understand how our loads may grow over time. 00:27:39.099 --> 00:27:41.539 SPEAKER_14: There's a lot of policy around electrification. 00:27:41.539 --> 00:27:45.379 SPEAKER_14: So how does that increase our load into the next decade? 00:27:45.379 --> 00:27:48.339 SPEAKER_14: And we'll be able to look out past 2030, right? 00:27:48.339 --> 00:27:55.740 SPEAKER_14: There's a lot of expected load growth as policy increases on the electrification front. 00:27:55.740 --> 00:27:59.980 SPEAKER_14: So understanding how those things will increase our load will be extremely important. 00:28:00.980 --> 00:28:06.220 SPEAKER_14: We'll be able to evaluate what types of resources might help meet that demand, right, into the 00:28:06.220 --> 00:28:10.099 SPEAKER_14: next decade here. 00:28:10.099 --> 00:28:13.019 SPEAKER_14: At what prices, at what costs, at what volumes, right? 00:28:13.019 --> 00:28:17.059 SPEAKER_14: We'll have to take a best guess at what might be available. 00:28:17.059 --> 00:28:23.140 SPEAKER_14: On the emerging technology front, what can we reasonably expect from new technology? 00:28:23.140 --> 00:28:26.940 SPEAKER_14: What's available when, just as we did in the previous IRP? 00:28:27.940 --> 00:28:34.500 Unknown: We'll also have to consider local air quality contributors as well as greenhouse gas emissions, 00:28:34.500 --> 00:28:35.500 SPEAKER_14: right? 00:28:35.500 --> 00:28:37.980 SPEAKER_14: We want to understand the economy-wide picture. 00:28:37.980 --> 00:28:41.180 SPEAKER_14: I think that's going to be important as part of this. 00:28:41.180 --> 00:28:48.860 Unknown: We also want to think about our thermal generation and how that fits within the transition to 00:28:48.860 --> 00:28:51.740 SPEAKER_14: affordable and reliable transition, right? 00:28:51.740 --> 00:28:54.860 SPEAKER_14: We heard from the California Energy Commission last month. 00:28:54.859 --> 00:28:59.899 SPEAKER_14: They talked about the need to maintain thermals during the transition, right? 00:28:59.899 --> 00:29:04.819 SPEAKER_14: That seems to be the best way to maintain affordable rates and reliable power while 00:29:04.819 --> 00:29:09.539 SPEAKER_14: continuing to add clean energy technologies to the grid. 00:29:09.539 --> 00:29:14.939 Unknown: We also have to consider state policy on decarbonization. 00:29:14.939 --> 00:29:24.819 SPEAKER_14: We know the state has goals to be 90 percent clean energy by 2035, 95 by 2040, and 100 00:29:24.819 --> 00:29:26.700 SPEAKER_14: by 2045. 00:29:26.700 --> 00:29:30.139 SPEAKER_14: What does that path look like? 00:29:30.139 --> 00:29:35.299 SPEAKER_14: How much faster can we potentially move in certain areas? 00:29:35.299 --> 00:29:40.099 SPEAKER_14: We also need to understand how our customers will continue to adopt DERs at their homes 00:29:40.099 --> 00:29:46.700 SPEAKER_14: and businesses and how things like load flex programs and other demand response programs 00:29:46.700 --> 00:29:51.019 SPEAKER_14: can help reduce peak energy needs. 00:29:52.019 --> 00:29:56.220 Unknown: Lastly here, affordability and community resiliency. 00:29:56.220 --> 00:29:58.539 SPEAKER_14: What's the best path for our communities, right? 00:29:58.539 --> 00:30:05.460 SPEAKER_14: That's really what we need to ask here as a community organization, balancing affordability, 00:30:05.460 --> 00:30:12.220 SPEAKER_14: reliability, and sustainability. 00:30:12.220 --> 00:30:17.039 SPEAKER_14: With that, I think some big questions we're really trying to answer here are what does 00:30:17.039 --> 00:30:23.759 SPEAKER_14: our decarbonization path look like considering the challenges today, high cost, lacking 00:30:23.759 --> 00:30:27.720 SPEAKER_14: new technology that completely decarbonize? 00:30:27.720 --> 00:30:33.359 SPEAKER_14: How do we maintain reliable service and affordable power but still continuing to try to achieve 00:30:33.359 --> 00:30:35.079 SPEAKER_14: our goals in decarbonization, right? 00:30:35.079 --> 00:30:36.759 SPEAKER_14: We haven't left those goals out. 00:30:36.759 --> 00:30:38.559 SPEAKER_14: We still want to try to decarbonize. 00:30:38.559 --> 00:30:43.879 SPEAKER_14: We just need to see the paths to get there. 00:30:43.880 --> 00:30:53.160 SPEAKER_14: What levers do we have to maybe minimize the cost to our customers and keep rates affordable? 00:30:53.160 --> 00:30:56.680 SPEAKER_14: What major generation and grid investments are needed in the coming years? 00:30:56.680 --> 00:31:03.520 SPEAKER_14: Is there something 10, 13 years down the road that we need to start thinking about? 00:31:03.520 --> 00:31:04.920 SPEAKER_14: Is there a transmission need? 00:31:04.920 --> 00:31:13.400 SPEAKER_14: Is there how much generation do we need to build to serve the future of the grid here? 00:31:13.400 --> 00:31:15.720 SPEAKER_14: How do distributed energy resources fit in with that? 00:31:15.720 --> 00:31:18.120 SPEAKER_14: We talked about that on the previous slide too. 00:31:18.120 --> 00:31:21.280 SPEAKER_14: That's an important piece. 00:31:21.280 --> 00:31:25.800 SPEAKER_14: Last but not least here is where should we focus our customers' dollars? 00:31:25.800 --> 00:31:33.560 SPEAKER_14: Where do we get the most value for our customers as part of this work? 00:31:33.560 --> 00:31:39.240 SPEAKER_14: We're at the tail end of the presentation here, focused on schedule, community outreach, 00:31:39.240 --> 00:31:42.600 SPEAKER_14: and then we'll close out. 00:31:42.599 --> 00:31:48.599 SPEAKER_14: The schedule here, as we promised back in April, we kicked off the IRP in the October 00:31:48.599 --> 00:31:49.839 SPEAKER_14: timeframe. 00:31:49.839 --> 00:31:52.879 SPEAKER_14: That's where we're at here today, October 14th. 00:31:52.879 --> 00:31:57.719 SPEAKER_14: We'll follow up with about four subsequent committee board committee meetings to continue 00:31:57.719 --> 00:32:00.119 SPEAKER_14: the discussion. 00:32:00.119 --> 00:32:05.719 SPEAKER_14: We'll have a lot of information to share throughout this process. 00:32:05.719 --> 00:32:11.639 SPEAKER_14: Meanwhile, between December and March, we'll be kicking off the community outreach and 00:32:11.640 --> 00:32:13.880 SPEAKER_14: engagement plan. 00:32:13.880 --> 00:32:20.240 SPEAKER_14: Really looking to get the breadth of feedback from our customer base here in Sacramento, 00:32:20.240 --> 00:32:21.240 SPEAKER_14: our customers. 00:32:21.240 --> 00:32:27.200 SPEAKER_14: We really want to make sure we're reaching out as wide as we can go to really get everyone's 00:32:27.200 --> 00:32:30.280 SPEAKER_14: priorities in the IRP. 00:32:30.280 --> 00:32:35.640 SPEAKER_14: In April, we'll ask the board to adopt an IRP at the end of the process and file that 00:32:35.640 --> 00:32:39.960 SPEAKER_14: IRP with the energy commission no later than 2027. 00:32:40.960 --> 00:32:44.680 Unknown: Meanwhile, we'll continue having discussions with the community. 00:32:44.680 --> 00:32:50.400 SPEAKER_14: Just as we had with the zero carbon plan, we'll continue having virtual forums, community 00:32:50.400 --> 00:32:53.559 SPEAKER_14: meetings and the like. 00:32:53.559 --> 00:32:59.360 SPEAKER_14: Keep the discussions going as part of this even post IRP adoption. 00:32:59.360 --> 00:33:05.160 SPEAKER_14: A little bit more on the community outreach and communications plan, again, focused between 00:33:05.160 --> 00:33:08.200 SPEAKER_14: December and March. 00:33:08.279 --> 00:33:15.200 SPEAKER_14: The goal is to inform the public about the key IRP topics, the scenarios, the trade-offs. 00:33:15.200 --> 00:33:21.200 SPEAKER_14: Really try to inform and educate the community about the IRP and some of the most important 00:33:21.200 --> 00:33:24.039 SPEAKER_14: things that are included. 00:33:24.039 --> 00:33:27.319 SPEAKER_14: We also want to gather community input on the priorities. 00:33:27.319 --> 00:33:33.200 SPEAKER_14: Again, we want to hear from all of our customers on this IRP. 00:33:33.200 --> 00:33:38.720 SPEAKER_14: The goal last year is to really balance, get a balance of broad and highly targeted 00:33:38.720 --> 00:33:42.840 SPEAKER_14: outreach to garner a wide range of inputs. 00:33:42.840 --> 00:33:49.440 SPEAKER_14: To do that, we'll use large presentations such as virtual forums, but targeted presentations 00:33:49.440 --> 00:33:55.600 SPEAKER_14: as well to the business community, the environmental community and other key nonprofit organizations. 00:33:55.600 --> 00:34:01.319 Unknown: We'll also reach out to neighborhood associations in each ward. 00:34:01.319 --> 00:34:05.599 SPEAKER_14: We have about 14 plus meetings planned in each ward as part of this. 00:34:05.599 --> 00:34:17.159 SPEAKER_14: As well as targeted outreach to special populations such as young adults and social justice organizations. 00:34:17.159 --> 00:34:24.840 SPEAKER_14: To do all that, we'll continue using a multi-pronged communications and outreach plan. 00:34:24.840 --> 00:34:29.400 SPEAKER_14: Our communications team has gotten really good at this through rate processes, through 00:34:29.400 --> 00:34:34.320 SPEAKER_14: past IRP processes and does a fantastic job at outreach here. 00:34:34.320 --> 00:34:41.840 Unknown: Again, we'll focus on community engagement using web, digital and social media. 00:34:41.840 --> 00:34:47.400 SPEAKER_14: There's an IRP website on smud.org today that's live. 00:34:47.400 --> 00:34:53.960 SPEAKER_14: Gives our customers an opportunity to go out and stay informed, look at past presentations, 00:34:53.960 --> 00:35:00.000 SPEAKER_14: look at the schedule forward to make sure they're part of the process here. 00:35:00.000 --> 00:35:05.559 Unknown: We'll also be developing marketing and public relations material. 00:35:05.559 --> 00:35:09.360 SPEAKER_14: We're prepared to communicate outward. 00:35:09.360 --> 00:35:12.199 SPEAKER_14: Last but not least is communicating inwards, right? 00:35:12.199 --> 00:35:17.079 SPEAKER_14: Making sure our internal community is also along for this journey. 00:35:17.079 --> 00:35:21.159 SPEAKER_14: There's a lot of folks internally that don't really touch the IRP, so making sure they're 00:35:21.159 --> 00:35:28.920 SPEAKER_14: informed is also key to the process here. 00:35:28.920 --> 00:35:31.359 SPEAKER_14: That brings me to my final slide for tonight. 00:35:31.359 --> 00:35:33.799 SPEAKER_14: I just want to highlight the next steps. 00:35:33.799 --> 00:35:36.359 SPEAKER_14: December 9 is our next board meeting. 00:35:36.359 --> 00:35:38.279 SPEAKER_14: It will be the policy committee meeting. 00:35:38.279 --> 00:35:43.119 SPEAKER_14: That's the second IRP committee meeting to date. 00:35:43.119 --> 00:35:49.559 SPEAKER_14: We'll review some of the foundational IRP elements, some ZEEC CP learnings and progress to date. 00:35:49.559 --> 00:35:55.320 SPEAKER_14: We'll look at some of the scenarios that we wish to explore throughout this process. 00:35:55.320 --> 00:36:03.480 Unknown: We'll also have more details about the community outreach timeline at that time. 00:36:03.480 --> 00:36:08.279 SPEAKER_14: Following the December 9 meeting, we'll kick off the neighborhood association meetings 00:36:08.279 --> 00:36:11.279 SPEAKER_14: as well as some of the other outreach that's going on. 00:36:11.279 --> 00:36:16.360 SPEAKER_14: A lot of that material on December 9 will be probably revisited with those neighborhood 00:36:16.360 --> 00:36:22.240 SPEAKER_14: associations, but we'll be able to have a dialogue, answer questions, gather feedback, 00:36:22.240 --> 00:36:24.280 SPEAKER_14: that sort of thing. 00:36:24.280 --> 00:36:27.240 SPEAKER_14: That's really the next steps here with IRP. 00:36:27.240 --> 00:36:32.720 SPEAKER_14: My final slide, so I'd be happy to answer any questions that folks may have here. 00:36:32.720 --> 00:36:41.320 Unknown: Thank you, Chair Buie Thompson. 00:36:41.320 --> 00:36:49.760 SPEAKER_00: I appreciate you kind of laying out the decision-making process that the board will be going through 00:36:49.760 --> 00:36:59.720 SPEAKER_00: and the fact that we will be getting public input to make decisions about our integrated resource plan. 00:36:59.720 --> 00:37:06.640 SPEAKER_00: My only comment is December is a terrible month to go to neighborhood association meetings. 00:37:06.639 --> 00:37:16.480 SPEAKER_00: Usually, they're either canceled because of the holidays or they've got a lot of other things to do. 00:37:16.480 --> 00:37:24.960 SPEAKER_00: So I know it's just beginning then, but I just want to point out that it's very important that 00:37:24.960 --> 00:37:33.839 SPEAKER_00: neighborhood association meetings that are well attended are the ones that we want to go to in December 00:37:33.840 --> 00:37:40.240 SPEAKER_00: might be a difficult time just saying. 00:37:40.240 --> 00:37:44.039 SPEAKER_14: Appreciate the feedback, Director Herber. 00:37:44.039 --> 00:37:53.440 SPEAKER_14: I imagine if we need to reschedule, I think we would go ahead and do that and just make sure that we're staying in tune with these folks. 00:37:53.440 --> 00:37:56.680 SPEAKER_14: I don't know if there's anything else to add here. 00:37:56.680 --> 00:38:00.240 SPEAKER_14: Thank you. 00:38:00.240 --> 00:38:00.760 Unknown: Good evening. 00:38:00.960 --> 00:38:02.160 SPEAKER_05: My name is Crystal Richardson. 00:38:02.160 --> 00:38:05.760 SPEAKER_05: I'm the interim director for community relations outreach and support. 00:38:05.760 --> 00:38:07.160 SPEAKER_05: Thank you for that comment. 00:38:07.160 --> 00:38:13.120 SPEAKER_05: I did just want to share, yes, we totally understand the challenges that may take place in December. 00:38:13.120 --> 00:38:15.080 SPEAKER_05: December is just our starting point. 00:38:15.080 --> 00:38:19.960 SPEAKER_05: What we've learned is some of our neighborhood association and groups only meet on a quarterly basis. 00:38:19.960 --> 00:38:27.880 SPEAKER_05: So if we weren't able to, December might be our only opportunity to not have to ask them to hold a special meeting. 00:38:27.880 --> 00:38:32.079 SPEAKER_05: We want to make sure that we're making this easy for our customers and communities. 00:38:32.079 --> 00:38:35.480 SPEAKER_05: We're trying to push into meetings they may already have scheduled. 00:38:35.480 --> 00:38:40.280 SPEAKER_05: So I don't anticipate we'll see a lot happening in December, but that really is our starting point. 00:38:40.280 --> 00:38:44.880 SPEAKER_05: We'll be working with our organizations on what makes the best sets for them. 00:38:44.880 --> 00:38:48.880 SPEAKER_05: Thank you. 00:38:48.880 --> 00:38:51.280 Unknown: Go ahead. 00:38:51.280 --> 00:38:52.680 SPEAKER_19: Brian, thank you. 00:38:52.680 --> 00:38:57.480 SPEAKER_19: I know this is a very high level presentation at this point, and there's much more detail behind it. 00:38:57.480 --> 00:39:04.079 SPEAKER_19: When I look at the multi-prong communication and outreach slide, there's a lot of ways that we're presenting information to the public. 00:39:04.079 --> 00:39:07.280 SPEAKER_19: I don't see as much how we're listening to the public. 00:39:07.280 --> 00:39:10.579 SPEAKER_19: And I know that in each of these meetings, it's a give and take. 00:39:10.579 --> 00:39:16.880 SPEAKER_19: But I just want to make sure that we're also offering the public the opportunity to speak and that we're going to listen. 00:39:16.880 --> 00:39:20.179 SPEAKER_19: So I just would want to put that out there. 00:39:20.179 --> 00:39:20.880 SPEAKER_19: Back up, Crystal. 00:39:20.880 --> 00:39:24.079 SPEAKER_19: Come on. 00:39:24.079 --> 00:39:26.079 SPEAKER_05: Hello, Crystal Richardson again. 00:39:26.079 --> 00:39:27.079 SPEAKER_05: I just wanted to share, yes. 00:39:27.079 --> 00:39:29.880 SPEAKER_05: That is the most important part of this process for us. 00:39:29.880 --> 00:39:40.279 SPEAKER_05: We're going to be developing consistent questions that we can ask of every group we meet with so that we're getting consistent feedback, as well as some of our larger meetings that you saw. 00:39:40.279 --> 00:39:53.079 SPEAKER_05: We're going to be taking wide feedback, packaging every bit of feedback we get back, and bringing that to the board for your review, along with the IRP team so they can utilize that in their development. 00:39:53.079 --> 00:39:54.079 SPEAKER_19: Thank you. 00:39:54.079 --> 00:40:02.380 SPEAKER_19: The other thing that I would maybe ask at least that we consider is somehow working with the four agency partnership. 00:40:02.380 --> 00:40:10.480 SPEAKER_19: So SACRT, SACOG, and the Air Quality Management District to include their input and bring them along on this as well. 00:40:10.480 --> 00:40:13.679 SPEAKER_19: Whatever that looks like, if it's staff level, that's fine. 00:40:13.679 --> 00:40:18.279 SPEAKER_19: But I think that's important as well. 00:40:18.279 --> 00:40:20.679 SPEAKER_10: Heidi? 00:40:21.279 --> 00:40:30.079 SPEAKER_04: So in the outreach, are we including, I'm assuming, our new environmental working group as part of this immediate feedback? 00:40:30.079 --> 00:40:31.579 SPEAKER_04: Okay, good. 00:40:31.579 --> 00:40:46.679 SPEAKER_04: And then the goals of the state and what we're required to do for the IRP are different than our goals, which were just in the paper yesterday talking about how hard it's going to be to hit zero carbon by 2030, because quite frankly, we've had $400 million of grants removed. 00:40:46.679 --> 00:40:51.079 SPEAKER_04: We've had FAA say we can't build our windmills the way we wanted to. 00:40:51.079 --> 00:40:52.079 SPEAKER_04: We just found that out. 00:40:52.079 --> 00:41:00.779 SPEAKER_04: So it's getting, and we just approved last night, a million and a half dollars of increased spending because we have a 25% tariff on copper. 00:41:00.779 --> 00:41:07.179 SPEAKER_04: So I mean, these costs are having a huge impact in our ability to do what we hope to do. 00:41:07.179 --> 00:41:12.179 SPEAKER_04: And I just want to make it clear to everybody, we are not stopping trying. 00:41:12.179 --> 00:41:20.179 SPEAKER_04: When we said we were going to do a moonshot, we said if we miss, we're still going to land amongst the stars, but we're going to give it everything we've got. 00:41:20.179 --> 00:41:23.179 SPEAKER_04: But we've hit a lot of headwinds. 00:41:23.179 --> 00:41:37.179 SPEAKER_04: And I'm really excited about this, and I hope that we also maybe set up something where the public can see the questions that have been asked and then answered, and so everybody can see everything, and they may not ask the same question over and over again. 00:41:37.179 --> 00:41:41.179 SPEAKER_04: Maybe if they also have a way to request that we come to them. 00:41:41.179 --> 00:41:45.179 SPEAKER_04: So it may not be just some people on our list, but there's always new groups popping up. 00:41:45.179 --> 00:41:47.179 SPEAKER_04: So that's just another suggestion. 00:41:47.179 --> 00:41:48.179 SPEAKER_04: Thanks again. 00:41:48.179 --> 00:41:50.179 SPEAKER_04: I'm really excited to get into this. 00:41:50.179 --> 00:41:51.179 Unknown: Great. 00:41:51.179 --> 00:41:52.179 SPEAKER_14: Thanks, Director Samborn. 00:41:52.179 --> 00:41:53.179 SPEAKER_14: Good ideas. 00:41:53.179 --> 00:41:56.179 Unknown: Brandon, Rob? 00:41:56.179 --> 00:41:58.179 SPEAKER_10: Dave's got his mic on. 00:41:58.179 --> 00:41:59.179 SPEAKER_18: All right. 00:41:59.179 --> 00:42:02.179 SPEAKER_18: So, yeah, thank you very much, Brian. 00:42:02.179 --> 00:42:12.179 SPEAKER_18: Amongst the groups that I'd like us to particularly seek out would be some of the environmental justice advocacy groups. 00:42:12.179 --> 00:42:15.179 SPEAKER_18: I think that they have an important perspective. 00:42:15.179 --> 00:42:21.179 SPEAKER_18: So, you know, if you need me to point you in some directions, I think that would be really important. 00:42:21.179 --> 00:42:22.179 SPEAKER_18: So, thanks. 00:42:26.179 --> 00:42:28.179 Unknown: Do we have some public comment? 00:42:28.179 --> 00:42:36.179 SPEAKER_17: I'll say a few things. 00:42:36.179 --> 00:42:39.179 SPEAKER_17: I don't necessarily have it all spelled out. 00:42:39.179 --> 00:42:41.179 SPEAKER_17: I'll say this. 00:42:41.179 --> 00:42:52.179 SPEAKER_17: Nothing has been set by this board in terms of our integrated resource planner 2030 targets, despite what's been in the media. 00:42:53.179 --> 00:43:06.179 SPEAKER_17: Part of that, and we've been saying this for at least six months now, the IRP process is going to help guide us and really help us be data driven and really be strategic with every dollar that we're spending. 00:43:06.179 --> 00:43:08.179 SPEAKER_17: We all see the headwinds. 00:43:08.179 --> 00:43:10.179 SPEAKER_17: We understand today's politics. 00:43:10.179 --> 00:43:16.179 SPEAKER_17: And we're going to have to be very careful about how we align our policy goals. 00:43:17.179 --> 00:43:34.179 SPEAKER_17: For me, my commitment to clean energy remains the same, but I have to live in the political reality where one-fifth of our customers are on our low income rate, and we have somewhere between $20 million and $40 million of people behind at any given time. 00:43:34.179 --> 00:43:43.179 SPEAKER_17: So, we do have to be sensitive about that and balance that, and that's one of the hard parts about being elected official that we'll get there. 00:43:44.179 --> 00:43:53.179 SPEAKER_17: I have some technical questions, and I think that the analysis is going to help with that. 00:43:53.179 --> 00:44:04.179 SPEAKER_17: We know we probably have sodium ion batteries coming forth en masse at a considerably lower cost, right? 00:44:04.179 --> 00:44:08.179 SPEAKER_17: Like one-quarter of the cost of battery technology today. 00:44:09.179 --> 00:44:19.179 SPEAKER_17: One of the things I'll be curious to learn about as we look at the analysis, and E3 is a consultant, and quite honestly, I think they're amongst the best, if not the best, doing this work in the business. 00:44:19.179 --> 00:44:21.179 SPEAKER_17: But what are those saturations, right? 00:44:21.179 --> 00:44:28.179 SPEAKER_17: If you can build, you know, we're doing mostly four and eight hour battery stay, but if you get up to 12 and 24 hours, what does that look like? 00:44:29.179 --> 00:44:32.179 SPEAKER_17: And I've talked about this in our previous 2030 updates. 00:44:32.179 --> 00:44:39.179 SPEAKER_17: How did we then deal with the exceptional events where we have fog for three weeks? 00:44:39.179 --> 00:44:55.179 SPEAKER_17: Do we do a different type of accounting, but do we say, okay, we're at extremely high carbon reduction levels, but we know once every 20 years, we're going to have some weird weather pattern that we need to deal with and the lights have to stay on. 00:44:56.179 --> 00:45:12.179 SPEAKER_17: And so I'll be curious to have to look at this analysis so we can start to get a feel for what the real policy will look like and how we can move forward and how we can do the most possible, given the reality. 00:45:13.179 --> 00:45:25.179 SPEAKER_17: My question, Brian, is when do we expect to see some initial data and results that you would share potentially with the board, and then when would that be presented? 00:45:25.179 --> 00:45:28.179 SPEAKER_17: Is that that December or February timeframe? 00:45:29.179 --> 00:45:31.179 Unknown: Good question, Director Rose. 00:45:31.179 --> 00:45:34.179 SPEAKER_14: That'll be the February timeframe. 00:45:34.179 --> 00:45:35.179 Unknown: Okay. 00:45:35.179 --> 00:45:39.179 SPEAKER_14: Yeah, that's when we'll start sharing some of the scenarios analysis. 00:45:39.179 --> 00:45:47.179 SPEAKER_14: In December, we'll give you a preview of the scenarios we want to evaluate, and then in February, we'll come back with the analysis. 00:45:47.179 --> 00:45:48.179 SPEAKER_14: Okay. 00:45:48.179 --> 00:46:02.179 SPEAKER_17: Because when we went through the 2018 IRP, we spent about nine months on it, and I would question if we get something in mid-February, if we'll be prepared to make any kind of a decision by mid-April board meeting. 00:46:02.179 --> 00:46:23.179 SPEAKER_17: Just in reality, I would expect us to have lots of questions, and I know we're committed to the community input as well, and they are definitely highly technical experts in the community that are going to want to and will be happy to accept their feedback on what input should be put in that analysis. 00:46:23.179 --> 00:46:30.179 SPEAKER_17: So just FYI, I think the timeframe might need to go out a little bit longer in reality, and we'll say that right up front. 00:46:31.179 --> 00:46:45.179 Unknown: And then the only one of the other things I did jot it down is I'm very curious how when we sort of get to the end of this, how are we going to stack up against CPUC, the Public Utilities Commission, and their procurement process and their procurement orders. 00:46:46.179 --> 00:47:03.179 SPEAKER_17: I know there's literally tens of thousands of different types of resources that the investor and utilities have been ordered to procure, so I will definitely be curious to keep an eye on how we're comparing to the other utilities in the state as we move forward with that. 00:47:04.179 --> 00:47:16.179 SPEAKER_17: And I think my comments I said even back in last month, I suppose, thinking about the gigawatt hours, we've made a lot of progress. We've purchased an enormous amount of renewables. 00:47:17.179 --> 00:47:26.179 SPEAKER_17: But really looking at that hour by hour, the 8760, is what really matters and what gigawatts do we have for which hours, and quite honestly, what are their carbon intensity? 00:47:27.179 --> 00:47:35.179 SPEAKER_17: I'm hoping that the analysis will really get into that level of detail, probably get into 15 minutes or less intervals. 00:47:36.179 --> 00:47:46.179 SPEAKER_17: But I think it will give us a much better idea, where do we really stand in terms of carbon reduction? Where are the times of date challenges and time of year challenges that we really have to deal with? 00:47:47.179 --> 00:48:02.179 SPEAKER_17: And the Energy Commission speaker who was here, I guess last month, that's when I had to walk here, in my office, I think that work is also, which is mostly by E3, has given us good guideposts as well about where we probably need to be. 00:48:03.179 --> 00:48:11.179 SPEAKER_17: Not only to meet just our own goals, which are aggressive, but the state also continues to have aggressive goals that we will continue to have to meet. 00:48:12.179 --> 00:48:20.179 SPEAKER_17: And quite honestly, everything that we purchase or are committed to purchase is still helping us meet those state goals. 00:48:21.179 --> 00:48:29.179 SPEAKER_17: I think at this point, pretty much, but we would say no regrets purchases. We would need to buy this stuff anyway to meet the state's mandates in the long run as well. 00:48:30.179 --> 00:48:35.179 SPEAKER_17: That's a lot of me talking. I look forward to hearing everybody's comments. Thank you. 00:48:35.179 --> 00:49:02.179 SPEAKER_17: Second bite at the apple here. So what I'm particularly interested in is one, that we get the information about the different scenarios and how they balance the affordability, reliability, and our continuing desire to move towards zero carbon. 00:49:02.179 --> 00:49:11.179 SPEAKER_18: You know, as quickly as we can with those other constraints in mind. And those are going to be some difficult decisions I anticipate. 00:49:12.179 --> 00:49:28.179 SPEAKER_18: So not just that information for us, but I really want the community to have an opportunity to at least have access to those so that when they're sharing their opinions with us, they're better informed as to what the kinds of trade-offs are. 00:49:28.179 --> 00:49:38.179 SPEAKER_18: I'm interested in seeing what various members of the community have to say about those trade-offs. 00:49:39.179 --> 00:49:49.179 SPEAKER_18: And I think some people are going to be focused on affordability and some people are going to be focused on our zero carbon. 00:49:49.179 --> 00:50:07.179 SPEAKER_18: I want to make sure that there's an understanding or at least available information so that people can see that there's some significant trade-offs unless somebody waves a magic wand and we don't have to make any trade-offs. 00:50:08.179 --> 00:50:20.179 SPEAKER_18: So hopefully we'll have a very robust body of information being shared with the public in January through March timeframe. 00:50:20.179 --> 00:50:46.179 SPEAKER_18: And I also agree with Director Rose that it seems, you know, I understand that the April adoption is, to me it seems like a goal, but it seems kind of rushed given that we need to get that information out there and have a discussion amongst ourselves and also with staff, 00:50:46.179 --> 00:50:52.179 SPEAKER_18: but also hearing informed opinions from the public. 00:50:53.179 --> 00:51:05.179 SPEAKER_18: So anyway, that's – and I'll end with saying that I still am very committed to moving as rapidly as we can to the 2030 carbon plan, 00:51:05.179 --> 00:51:17.179 SPEAKER_18: but I represent an area where it really does make a difference if your bill goes up $5 or $10. So I want to keep that in mind as well. So thank you. 00:51:21.179 --> 00:51:28.179 Unknown: Brian, President DeBain raises a good point. Why April for the adoption when it's not due to the CEC until September? 00:51:28.179 --> 00:51:51.179 SPEAKER_19: Yeah, I guess one thing we considered was the rate process that kicks off in June, I believe, June or July. So providing some separation between those two processes. You know, both the processes are pretty heavy with public outreach and discussions with you all. 00:51:52.179 --> 00:51:57.179 SPEAKER_14: So that was kind of the consideration here with the schedule, major consideration. 00:51:58.179 --> 00:51:59.179 SPEAKER_19: And that's a tough reason for me. Thank you. 00:51:59.179 --> 00:52:02.179 SPEAKER_19: Well, you have to complete the IRP to know what possible risks. 00:52:02.179 --> 00:52:03.179 SPEAKER_10: Yes. 00:52:03.179 --> 00:52:06.179 Unknown: Any other comments? 00:52:06.179 --> 00:52:23.179 SPEAKER_10: I did want to kind of reiterate what I've heard from the board and what we talked about during the pre-brief is that we need to start communicating costs. So when we say $100 million, when we say $10 million, I'll just reiterate for the public. 00:52:23.179 --> 00:52:44.179 Unknown: $10 million is half a percent. $20 million is a percentage. And these projects are hundreds of millions of dollars. We also have set a constraint which does not mean that we can't overturn it, but we have a policy that we have rate increases at the cost of living, essentially inflation. 00:52:44.179 --> 00:52:56.179 SPEAKER_10: So I just want to remind the public of that. That doesn't mean that we as a board can't say we're going to increase rates anyways, but there is a process to that. 00:52:56.179 --> 00:53:13.179 SPEAKER_10: So I just, as we discuss large load in November, be it data center or some other manufacturing, there's only a few levers. So I would like for us to continually remind people that we don't have a lot of levers. 00:53:13.179 --> 00:53:25.179 SPEAKER_10: So that's grants, loans, large load, and rates. Operational efficiency has been done. Thank you, SMUD staff, by the way. 00:53:25.179 --> 00:53:42.179 SPEAKER_10: So I think that throughout this process, we just need to remind people that we can't just put it on the backs of ratepayers, that we have very limited options should we continue on this path of not, obviously, we have to meet our mandates. 00:53:42.179 --> 00:53:53.179 SPEAKER_10: But if we go above that, there is a cost. So either we generate it with people paying us more or we increase rates. There's not a lot of options. 00:53:53.179 --> 00:54:11.179 SPEAKER_10: And I think that's something when speaking to the public, they don't quite always grasp that any new project, unless grants or somebody else pays for it, i.e. large load, there's very few options left, and one is rates. 00:54:12.179 --> 00:54:27.179 SPEAKER_10: So I think we just need to keep reminding people in any of our communication what those options are, because it seems that it sometimes does not materialize when people realize it's a pretty straight math equation when it comes to rate increases. 00:54:28.179 --> 00:54:53.179 Unknown: Yeah, that's great, great comments, Chair Buie-Thompson. That's correct. As we go through the scenarios analysis, we'll be able to share the potential rate impact. Again, this isn't the rate process, but we'll be able to show average system rates, the deltas between the scenarios we're looking at and just how much more some of these more aggressive cases may be. 00:54:54.179 --> 00:55:08.179 SPEAKER_14: And you're right, there are only so many ways we can fund revenue requirement increases, right? So we'll have to be very intentional and real about out looking at those future costs, right? Thank you. 00:55:08.179 --> 00:55:35.179 Unknown: Let's see, so that was item number one, thank you. So we do have speakers for item number one. So let's see. So we have three, and I'll call them all so they know to queue just in case they might be outside. So first is Herman. I can't read your last handwriting. Can you say it? 00:55:35.179 --> 00:55:56.179 SPEAKER_10: It would be first. David Wright and Christina Alvarez are all here to speak on item number one. So whoever is in the area first, they're probably just in the other room. So we will wait a second. But any of the three for item number one, whoever gets to. 00:55:57.179 --> 00:56:10.179 SPEAKER_10: Oh, we can do those. Okay, so we have people online. Or actually, Herman, okay, you're here. We'll take you first for item number one. And you have three minutes. 00:56:10.179 --> 00:56:39.179 SPEAKER_10: Thank you, members of the committee. My name is Herman Baraona. All the H's are silent. It's a promise I made to my father. So I'm here to represent the Sacramento Environmental Justice Coalition. We're a network of faith-based institutions, nonprofits, and community organizations that are very interested in figuring out how we get included in these very important conversations like the IRB. 00:56:40.179 --> 00:56:58.179 Unknown: We see a lot of contradictions in the way that this is set up. We have plenty of faith-based institutions that would love to hear from you, mainly in Tagalog, Spanish, and other languages. And if we can set for accommodations for that, that would be important. 00:56:59.179 --> 00:57:25.179 SPEAKER_12: Just south Sacramento alone, we have six churches that are very interested in hearing about your plan to keep rates low, and of course, to decarbonize by 2030. Very interesting tension. But we are also concerned that the draw from large loads, like from data centers, not only are going to cost you a lot of resources, 00:57:25.179 --> 00:57:49.179 SPEAKER_12: but we know that in south Sacramento and north Sacramento, highly impacted communities will see the terrible effects of these major companies. We're worried about the situation in the north highlands, and the drought that will take us. They expand that hyper data center there, and everything else that is being discussed potentially for the Valley. 00:57:49.179 --> 00:58:13.179 SPEAKER_12: Our folks in Placer County are also asking us the same questions. What are we going to do about these conditions? So I think the IRB could be a very good tool to get everybody involved in a very meaningful way, not just your usual organizations, but groups that are deeply concerned about the affordability crisis in this whole county. 00:58:13.179 --> 00:58:35.179 SPEAKER_12: You have a two point something billion dollar budget. We understand you have to figure that out responsibly. But we also know that a lot of your funding goes to organizations that don't need it. You're essentially subsidizing businesses. So if we can figure that out also, everybody carries the cost. Hopefully it will benefit the rate payers even better. Thank you. 00:58:36.179 --> 00:58:45.179 Unknown: Thank you. And then Mr. Wright, David. 00:58:45.179 --> 00:58:54.179 Unknown: Good evening, Chair Blue Thompson and the committee and members of the board. I'm representing 350 Sacramento. 00:58:55.179 --> 00:59:07.179 SPEAKER_13: We look forward to participating in the IRB public process. We definitely want to be involved very fully. And thank you for that. 00:59:07.179 --> 00:59:25.179 SPEAKER_13: It is a disappointment to see what looks like a retreat from the zero carbon plan. I hear you saying that we are going to continue to try as much as we can to get there. 00:59:26.179 --> 00:59:41.179 Unknown: But I'm just not feeling the energy like there was. I feel like the emergency part of the climate emergency has been forgotten or dropped back in people's awareness. 00:59:41.179 --> 00:59:57.179 SPEAKER_13: I do want to encourage all of us, I don't think the current headwinds are going to last. So we need to be ready to move forward when those headwinds are no longer hitting us. 00:59:57.179 --> 01:00:10.179 SPEAKER_13: And I think along those lines, you have a lot of customers who are willing to help shoulder these loads. And maybe we're forgetting that. There's a lot of people who want to put in batteries. 01:00:10.179 --> 01:00:26.179 SPEAKER_13: There are a lot of people who want to put in solar. Solar and batteries. That would be perfect for SMUD. Right? So a lot of people are driving electric cars. A lot of those electric cars will be able to be batteries for people. 01:00:26.179 --> 01:00:34.179 SPEAKER_13: They won't have to buy a separate battery. And you'll be able to connect those to the grid. So there is a lot of potential. 01:00:35.179 --> 01:00:48.179 SPEAKER_13: And let's not forget all of those new up and coming things. Maybe you can find a data center that will have such enormous batteries that it will not have to have generators. 01:00:49.179 --> 01:01:03.179 Unknown: And then you could use to help share their battery capabilities when they didn't need them. Anyway, that's pie in the sky, maybe. But maybe it's possible. Thank you. 01:01:05.179 --> 01:01:09.179 Unknown: And then we have Christina Alvarez. 01:01:09.179 --> 01:01:24.179 Unknown: Hi. Good afternoon or evening. 01:01:24.179 --> 01:01:40.179 Unknown: My name is Christina Alvarez, and I'm a community organizer here in Sacramento. I'm Del Paso Boulevard with the Semirando Semillas Day Labor Workers Center, as well as an ally with Third Act and SACIJC, Sacramento Environmental Justice Coalition. 01:01:40.179 --> 01:02:09.179 Unknown: And we want to be included in the IRP process. When most workers and families are a paycheck away from homelessness, if there's a chance that anything will have any damage or effect on our air quality or water quality or increased just the urban heat effect, then we are asking to take more time or the necessary time to really look into that and to really listen to that. 01:02:10.179 --> 01:02:19.179 SPEAKER_11: And to the people and community that will be directly impacted with the outcome and the development of that process. Thank you. 01:02:22.179 --> 01:02:30.179 SPEAKER_10: I'll take the online people I wanted to line up the next three so that they know to come. Trevor, maybe... 01:02:31.179 --> 01:02:35.179 Unknown: Gillette? Gillette Ma? 01:02:36.179 --> 01:02:41.179 SPEAKER_10: So, Trevor, with Gillette Ma, possibly. Casey... 01:02:42.179 --> 01:02:52.179 Unknown: Yeah, these are all... Oh, so should we... Oh, yeah, we still have one more item. Okay. So, was there anybody else in the overflow room for item number one? I forgot, because the rest are all public comment. 01:02:53.179 --> 01:02:55.179 SPEAKER_10: Okay. Anybody else? Okay. 01:02:56.179 --> 01:02:59.179 SPEAKER_10: Oh, so one person for agenda item one. 01:02:59.179 --> 01:03:00.179 SPEAKER_10: Yes. 01:03:00.179 --> 01:03:01.179 SPEAKER_08: Okay. 01:03:01.179 --> 01:03:03.179 SPEAKER_08: It's 350 Sacramento. 01:03:06.179 --> 01:03:11.179 Unknown: Hi. Yeah, my name is Rosie Yacovin. I'm a volunteer with 350 Sacramento. 01:03:12.179 --> 01:03:21.179 SPEAKER_06: Looking forward to engaging on this process. Glad to hear the word electrification so many times in a presentation. And yeah, the words climate emergency. 01:03:21.179 --> 01:03:37.179 SPEAKER_06: These were part of what brought us to the 2030 goal. And it's still a climate emergency. And that climate emergency is not just threatening, but actually impacting your biggest source of power. 01:03:38.179 --> 01:03:42.179 SPEAKER_06: Right? It is actually currently impacting hydroelectric. 01:03:43.179 --> 01:03:51.179 Unknown: And so, you know, it is something to think about when you're thinking about the future. We can't just think about 10 years. 01:03:53.179 --> 01:04:03.179 Unknown: We're impacting your ability to generate power when we don't have a snowpack. Right? Okay. 01:04:03.179 --> 01:04:22.179 SPEAKER_06: So, moving on, it was also great to learn that the about Senate Bill 350 and that we're having a board adopted public process, which was preempted by saying that we're backing off from 2030 publicly before engaging this process. 01:04:23.179 --> 01:04:29.179 Unknown: I hope that 2030 is one of the scenarios, at least for comparison as we move forward. 01:04:30.179 --> 01:04:48.179 Unknown: And then in terms of engagement, I heard environmental working group and the four whatevers with SACOG and RT, but every entity that has had to file a climate action plan. So that's Sacramento County, city of Sacramento, city of Elk Grove. 01:04:49.179 --> 01:05:10.179 SPEAKER_06: They have all referenced how much GHGs, the city, county, etc, etc, are going to be saving with the 2030 plan. So whatever scenario gets adopted here, feels like they need to be engaged as well because it changes their capacity to meet their goals. 01:05:13.179 --> 01:05:16.179 Unknown: Yeah, I think that's it. Thank you very much. 01:05:17.179 --> 01:05:20.179 Unknown: Thanks. That was the only one online for item 1? 01:05:20.179 --> 01:05:21.179 SPEAKER_10: Yes, that was the only one. 01:05:21.179 --> 01:05:40.179 SPEAKER_06: Okay, great. So we are moving on to number 2, is to discuss adopting the California Environmental Quality Act CEQA Mitigated Negative Declaration for the Jackson Bulk Substation Project and adopting the Mitigation Monitoring Reporting Program and then Approve the Project. 01:05:41.179 --> 01:05:51.179 SPEAKER_10: We have Emily Bikini. She is the Director of Safety, Environmental and Real Estate Services. 01:05:52.179 --> 01:05:59.179 Unknown: Great. Thank you for that introduction, Chair Buie-Thompson. My name is Emily Bikini. I am the Director of Safety, Environmental and Real Estate Services. 01:05:59.179 --> 01:06:15.179 Unknown: And I'm here tonight to ask you to discuss adopting the California Environmental Quality Act or CEQA Mitigated Negative Declaration for the Jackson Bulk Substation Project along with adopting the Mitigation Monitoring and Reporting Program and Approving the Project. 01:06:16.179 --> 01:06:32.179 SPEAKER_02: So the Jackson Bulk Substation Project is a bulk substation. It's one of our large substation sites. It will be constructed on a 44-acre parcel in eastern Sacramento County, just southeast of the corner of Jackson and Excelsior Roads. 01:06:33.179 --> 01:06:40.179 SPEAKER_02: The project also includes about 6 miles of new overhead line, either new or reconstructed overhead line. 01:06:41.179 --> 01:06:57.179 SPEAKER_02: And then this project will be used to serve planned development that's proposed along the Jackson corridor. Sacramento County just approved a master plan for a community of 5,900 acres on that north side of Jackson. 01:06:57.179 --> 01:07:15.179 SPEAKER_02: So that's what this substation will serve. We also have a soil storage site on this property that we will continue to use. That allows us to temporarily store soil so that we don't have to dispose of it in a landfill and then purchase it for future use. 01:07:16.179 --> 01:07:28.179 SPEAKER_02: Anything that's not used for construction will be graded for drainage improvements. We expect the construction of the project will start sometime after 2030 and it will take about three years to construct. 01:07:30.179 --> 01:07:38.179 Unknown: We did prepare an initial study, mitigated negative declaration for this project. That was the environmental review document that was prepared. 01:07:39.179 --> 01:07:49.179 SPEAKER_02: There were potentially significant impacts on the six environmental resources listed on this slide. The impacts are all construction related. 01:07:50.179 --> 01:08:02.179 Unknown: And so we were able to use or apply mitigation measures that would reduce those impacts to a less than significant level. These are our typical mitigation measures like pre-construction surveys, 01:08:03.179 --> 01:08:11.179 Unknown: air quality measures like watering down disturbed soils, things that we typically do during our project construction. 01:08:12.179 --> 01:08:24.180 Unknown: We followed our regular public review process with a draft initial study, mitigated NEGDEC. We have a 30-day public comment period. This document was published at the beginning of May. 01:08:25.180 --> 01:08:35.180 SPEAKER_02: We have the document, the notices of the document posted in the Sacramento Bee and then also mailed to landowners within proximity of the project components. 01:08:36.180 --> 01:08:46.180 SPEAKER_02: We have a hard copy of the ISM&D available at our customer service center and also at our East Campus Operations Center and the documents available online at smud.org. 01:08:47.180 --> 01:08:57.180 Unknown: We had a virtual public meeting on May 18th and one member of the public attended. And then our final ISM&D was posted on our website on October 5th. 01:08:57.180 --> 01:09:16.180 SPEAKER_02: During that public review process, we received five comment letters. The Central Valley Flood Protection Board and the Sacramento area sewer district both commented, but their comments didn't have any, did not address any environmental analysis that we had conducted. 01:09:17.180 --> 01:09:27.180 SPEAKER_02: California Department of Fish and Wildlife and Defenders of Wildlife commented on the document. They provided comments on our biological section, our biological resources section. 01:09:28.180 --> 01:09:40.180 Unknown: And while these comments didn't change the conclusions that were presented in the ISM&D, we did make some changes to our mitigation measures in the final ISM&D as a reflection of those comments. 01:09:41.180 --> 01:09:47.180 SPEAKER_02: Could you be a little more specific about what their concerns were and how we mitigated them? 01:09:48.180 --> 01:10:03.180 Unknown: Sure. So there is a Swainson Sock nest on the project site. And so some of their concern was around construction timing and what our strategy was going to be to avoid or minimize impacts on that nest. 01:10:04.180 --> 01:10:09.180 SPEAKER_02: So we're helping make sure the Swainson Socks will live on? 01:10:10.180 --> 01:10:14.180 SPEAKER_04: Yep. We've got a mitigation strategy in place that will address that. 01:10:16.180 --> 01:10:24.180 Unknown: Wilton Rancheria also provided comments on both the biological resources section and the tribal cultural resources section. 01:10:25.180 --> 01:10:36.180 Unknown: Again, their comments didn't change the conclusions that we made in the ISM&D, but we did make some changes to the mitigation measure and the sections in response to their comments. 01:10:39.180 --> 01:10:46.180 Unknown: On to our tribal consultation process. Wilton Rancheria was the only tribe that requested consultation for this project. 01:10:47.180 --> 01:10:56.180 SPEAKER_02: We met with them on multiple occasions and had regular communication with them over email. They were also able to participate in our pedestrian survey of the project site. 01:10:57.180 --> 01:11:06.180 Unknown: They provided input on the tribal cultural resources section and the mitigation measure. They provided a lot of context around tribal activities in the area. 01:11:07.180 --> 01:11:14.180 Unknown: And then we closed that consultation in late September, but we were not able to reach mutual agreement with them. 01:11:15.180 --> 01:11:24.180 Unknown: Reaching mutual agreement is something that typically happens through a CEQA process, but there is also the option that that agreement won't be met. 01:11:25.180 --> 01:11:31.180 SPEAKER_02: And the point of disagreement was around our mitigation measure specific to monitoring activities. 01:11:32.180 --> 01:11:37.180 SPEAKER_02: So they requested full-time monitoring, and we only planned to have spot-check monitoring. 01:11:38.180 --> 01:11:50.180 Unknown: We include mitigation measures for full-time monitoring when there are known tribal cultural resources within our project site or near our project site, or when there's pervasive evidence that those resources could occur. 01:11:51.180 --> 01:12:01.180 Unknown: For this site, the information that Wilton Rancheria provided wasn't specific enough, wasn't site specific to... 01:12:02.180 --> 01:12:07.180 Unknown: I'm sorry, wasn't site specific around finding those resources in our area. 01:12:08.180 --> 01:12:15.180 Unknown: The information that they shared was that the project site was part of a 300-square-mile tribal cultural landscape. 01:12:16.180 --> 01:12:21.180 Unknown: They had a tribal village about 10 miles away, and they used the Jackson corridor. 01:12:22.180 --> 01:12:27.180 Unknown: That corridor had also been used by Native peoples moving from the valley up into the foothills. 01:12:27.180 --> 01:12:31.180 SPEAKER_02: So just... 01:12:32.180 --> 01:12:35.180 Unknown: So people understand the difference. 01:12:36.180 --> 01:12:41.180 SPEAKER_10: I had asked actually to give the example of a previous project where they were able to pinpoint. 01:12:42.180 --> 01:12:51.180 SPEAKER_10: So for the hearing viewing public, 300-square-miles is a quarter or a third of SMUD's territory, just so people understand. 01:12:52.180 --> 01:12:58.180 SPEAKER_10: And that we did have full-time monitoring when they were able to be more specific, correct? Do you want to talk about that? 01:12:59.180 --> 01:13:01.180 SPEAKER_02: That is absolutely correct. 01:13:02.180 --> 01:13:10.180 SPEAKER_02: When we have a tribal consultation process and the tribes share that they have resources in or around that area, then we have full-time monitoring. 01:13:11.180 --> 01:13:17.180 SPEAKER_02: When it's something as general as this, then we use spot-check monitoring. 01:13:18.180 --> 01:13:21.180 Unknown: I do... 01:13:22.180 --> 01:13:27.180 SPEAKER_04: What exactly do you mean by full-time monitoring? Is that somebody standing there while we're doing work? 01:13:28.180 --> 01:13:36.180 SPEAKER_04: Yes. So full-time monitoring would be a tribal monitor onsite eight hours a day, five days a week during ground-disturbing activities. 01:13:37.180 --> 01:13:39.180 SPEAKER_02: So it's over a period of about 18 months. 01:13:40.180 --> 01:13:42.180 Unknown: And do we pay for that? Do they pay for that? 01:13:42.180 --> 01:13:43.180 SPEAKER_04: We pay for that. 01:13:44.180 --> 01:13:51.180 SPEAKER_04: So that's the only thing? Because, I mean, if they wanted to stand there, I mean, I wouldn't care. It's just that we're paying. 01:13:52.180 --> 01:13:53.180 SPEAKER_04: Okay. 01:13:53.180 --> 01:14:00.180 Unknown: We do have a process in place that addresses inadvertent discovery protocol. 01:14:01.180 --> 01:14:09.180 SPEAKER_02: Because we do know that even though we may not see tribal culture resources on the surface, there's a potential that we find them when we start digging into the soil. 01:14:09.180 --> 01:14:11.180 SPEAKER_02: That's true for anywhere in Sacramento County. 01:14:12.180 --> 01:14:21.180 SPEAKER_02: To address that risk and to reduce that risk, we have a comprehensive program that includes mandatory training for all the construction crews... 01:14:24.180 --> 01:14:34.180 Unknown: I'm sorry, excuse me, monitoring and coordinated response protocols that address that unanticipated discoveries in addition to the spot-check monitoring. 01:14:35.180 --> 01:14:44.180 SPEAKER_02: So we're confident that if we're not paying them to be onsite full-time, our people, if they see something, they know what to look for and to stop and to call somebody in. 01:14:45.180 --> 01:14:46.180 SPEAKER_04: Exactly. 01:14:46.180 --> 01:14:47.180 SPEAKER_02: Okay. 01:14:47.180 --> 01:14:56.180 SPEAKER_02: If something was found during construction, they would stop. They would set up a 100-foot buffer, and then we would call an archeologist and a tribal representative to come and inspect the site. 01:14:57.180 --> 01:14:58.180 Unknown: Okay. Great. 01:14:58.180 --> 01:15:08.180 SPEAKER_04: And then based off the results of that, we would respond according to our inadvertent discovery plan, which could say, okay, there are resources now. We'll increase the monitoring effort. 01:15:09.180 --> 01:15:13.180 SPEAKER_02: Or here's how we'll protect this resource in perpetuity from future damage. 01:15:15.180 --> 01:15:22.180 Unknown: I wanted to clarify, because during the pre-brief, you mentioned it, so it is a mandatory training for everybody onsite. 01:15:23.180 --> 01:15:26.180 SPEAKER_10: And they're held to those requirements based on the training. 01:15:27.180 --> 01:15:32.180 SPEAKER_10: So every person that works goes through this mandatory training and is required to report. 01:15:33.180 --> 01:15:39.180 SPEAKER_10: We also have the spot-check in. Can you remind me what that spot-check frequency is? 01:15:40.180 --> 01:15:44.180 SPEAKER_10: Sure. Spot-checking monitoring is two times a week for half a day. 01:15:45.180 --> 01:15:46.180 Unknown: And that's Monday through Friday. 01:15:46.180 --> 01:15:47.180 SPEAKER_10: Monday. 01:15:47.180 --> 01:15:48.180 SPEAKER_10: They're only working Monday through Friday. 01:15:48.180 --> 01:15:49.180 SPEAKER_10: So it's... 01:15:49.180 --> 01:15:50.180 SPEAKER_10: It's a full day. 01:15:50.180 --> 01:15:52.180 SPEAKER_10: Full day a week split over two days. 01:15:52.180 --> 01:15:53.180 SPEAKER_10: Two days. 01:15:53.180 --> 01:15:57.180 SPEAKER_10: And that's the paid tribal representative that will come for those two days per week. 01:15:58.180 --> 01:15:59.180 Unknown: Absolutely. 01:15:59.180 --> 01:16:02.180 SPEAKER_10: Okay. And then Brandon, did you... I think Brandon had a question... Or someone had a question over here. 01:16:03.180 --> 01:16:04.180 SPEAKER_10: You're asking a question. 01:16:04.180 --> 01:16:05.180 SPEAKER_10: Okay. 01:16:05.180 --> 01:16:12.180 Unknown: I was just going to ask a little bit about spot monitoring, but I would assume there would be some strategy, right, when they're potentially grading the site, right? 01:16:12.180 --> 01:16:15.180 SPEAKER_17: I would assume that's the highest probability that you would find something. 01:16:15.180 --> 01:16:26.180 SPEAKER_17: But otherwise with a substation, right, you trench certain areas, but it's not like you're digging down deep at all times for a year and a half, right? 01:16:27.180 --> 01:16:35.180 SPEAKER_17: Right. The year and a half timeline is for the civil construction portion where that earthwork is happening. So, exactly. 01:16:36.180 --> 01:16:44.180 SPEAKER_17: So does it make more sense as opposed to saying on average that person is there, you know, twice a week for four hours, that they're there while it's being graded? 01:16:45.180 --> 01:16:55.180 SPEAKER_17: For that period of... That week or two period of time, I would guess, I don't know the construction schedule offhand, but... Like, should this be more detailed than that, or is it more detailed? 01:16:57.180 --> 01:17:06.180 Unknown: We expect earth moving activities to take place over that 18-month period. So they'll be grading and working in different areas throughout that full period. 01:17:07.180 --> 01:17:08.180 SPEAKER_02: I don't have the specifics. 01:17:08.180 --> 01:17:18.180 SPEAKER_02: So let me echo you've heard me say this many a time. Let's make sure we're being strategic and flexible and that we don't do what we always do, right? 01:17:19.180 --> 01:17:25.180 SPEAKER_17: Because we see that over time here. The staff just does what they always does. It's like, hey, I know they're not going to be grading for a year and a half. 01:17:26.180 --> 01:17:37.180 SPEAKER_17: Grading takes place quickly is the reality of it. And then there'll be more work, but let's at least be strategic about it and have some thought put into this as opposed to just doing what we always do. 01:17:39.180 --> 01:17:49.180 SPEAKER_17: The other thing I want to say about the training materials is we will work with Wilton Ranchery to have those training materials prepared. So they'll be providing that input. 01:17:50.180 --> 01:18:02.180 Unknown: Just to probably reiterate what Brandon was trying to say, I think the minimum would be twice a week, but there are ebbs and flows of peaks and valleys of construction. 01:18:02.180 --> 01:18:17.180 SPEAKER_10: So I would highly suggest for those peak periods where you know there's going to be higher possibility that maybe you move for those periods more than the minimum of two days a week. 01:18:18.180 --> 01:18:26.180 SPEAKER_10: This might help the tribes feel more comfortable because as Brandon stated, it's not hot and heavy for the 18 months, right? 01:18:26.180 --> 01:18:38.180 SPEAKER_10: There's rain, there's weather, there's just a timeline because I did follow up. I was at the air show this weekend with several members of the tribe and just trying to understand. 01:18:38.180 --> 01:18:53.180 SPEAKER_10: And they obviously would prefer full time, but it's very costly, especially over 18 months. But something of a happy medium when we know there's higher possibility. 01:18:53.180 --> 01:19:05.180 SPEAKER_10: Again, I'm one person, Brandon's another one, would suggest that you look at possibly more monitoring during these windows where there might be a higher possibility. 01:19:06.180 --> 01:19:16.180 SPEAKER_10: That may make them feel more comfortable. Granted, I know our training will be good, but these are people who do this consistently. This is what they do. 01:19:16.180 --> 01:19:27.180 SPEAKER_10: I know when I'm trained something, I try to absorb as much as possible, but this is their job. So having experts on site more often might be helpful. 01:19:27.180 --> 01:19:45.180 SPEAKER_10: It just seems the more we're talking about it, the main part is having them there when we're digging, right? I mean, what's the point of having them there for 18 months, even twice a week? 01:19:45.180 --> 01:20:00.180 SPEAKER_04: The main thing is that they're there when the earth is moving. That's when we might find something, and that's only in these windows. So I don't even understand. Yeah. Okay. Well, I think we're all on the same page. Well, you have our feedback. 01:20:00.180 --> 01:20:04.180 SPEAKER_04: Thank you. Thank you for that. 01:20:05.180 --> 01:20:17.180 Unknown: Continue. Alright, so with that, I'd like to request that the board consider adopting our initial study mitigated negative declaration, adopt the mitigation monitoring and reporting program and approve the project. 01:20:17.180 --> 01:20:29.180 Unknown: Is this for consent? Or are we, you should seek what's not. You should seek discussion. This is on discussion for tomorrow night's meeting. 01:20:29.180 --> 01:20:30.180 Unknown: Okay. 01:20:37.180 --> 01:20:56.180 SPEAKER_19: If we, I think you've heard that there's some concern about when the monitors are on site and spending those hours wisely. If we adopt and approve what you've got now, could you shift that timing within that framework, or do you need to rewrite this thing to include what we've been talking about? 01:20:56.180 --> 01:21:12.180 Unknown: What you would be approving tonight would be the spot check monitoring, but staff would agree to go back and look closer at the construction schedule and identify those high risk or those areas of where that more extreme gravity. 01:21:12.180 --> 01:21:13.180 SPEAKER_02: More activity. Yeah. Okay. 01:21:13.180 --> 01:21:15.180 SPEAKER_02: And schedule monitors accordingly. 01:21:15.180 --> 01:21:23.180 Unknown: So you have some flexibility within what we would be approving tomorrow night, assuming we do so, to take that direction and run with it? 01:21:23.180 --> 01:21:25.180 Unknown: We can always do more than what's in the document. 01:21:25.180 --> 01:21:26.180 SPEAKER_02: This is a minimum. 01:21:26.180 --> 01:21:27.180 SPEAKER_02: Okay. 01:21:27.180 --> 01:21:29.180 Unknown: Yes. Thank you. 01:21:29.180 --> 01:21:30.180 SPEAKER_10: Thank you. 01:21:32.180 --> 01:21:36.180 Unknown: Speakers on 2 online? I didn't get any cards for item number 2. 01:21:36.180 --> 01:21:38.180 SPEAKER_10: I do not see any hands now. 01:21:38.180 --> 01:21:54.180 SPEAKER_10: Okay. Okay. So we will have, we have public comment, and I didn't miss, because, sorry, I missed, there wasn't a check box. And so we will start public comment, but I will bring Erika Heramillo. 01:21:54.180 --> 01:21:57.180 SPEAKER_10: Who was here to speak on 1, so I apologize. 01:21:57.180 --> 01:22:00.180 SPEAKER_10: So you will speak first for public comment. 01:22:00.180 --> 01:22:02.180 SPEAKER_10: This one right here. 01:22:02.180 --> 01:22:04.180 Unknown: You don't have to touch the mic. 01:22:04.180 --> 01:22:05.180 SPEAKER_10: Here, we'll pick you up. 01:22:05.180 --> 01:22:08.180 SPEAKER_10: Thank you for coming back and circling back to me. 01:22:08.180 --> 01:22:14.180 SPEAKER_09: So my name is Eric, and I was born and raised here in Sacramento County. 01:22:14.180 --> 01:22:18.180 SPEAKER_09: I work for Sacramento County currently as a program planner. 01:22:18.180 --> 01:22:20.180 SPEAKER_09: I'm doing housing and homelessness stuff. 01:22:21.180 --> 01:22:35.180 Unknown: And one of the things about this item, one that you talked about with changing the plan for the 2030 goal, is that, although it's aspirational, setting goals like that actually gets us somewhere. 01:22:35.180 --> 01:22:47.180 SPEAKER_09: And I will just say from my own personal lived experience as a program planner, I just recently did a strategic plan for our housing implementation programs and funding for Sacramento County and behavioral health. 01:22:47.180 --> 01:22:56.180 Unknown: And had I not done that plan, I wouldn't know how to implement the programs, the goals that we're trying to succeed, the measures. 01:22:56.180 --> 01:23:01.180 SPEAKER_09: If I had not actually put something down on paper, I would be walking in blindly. 01:23:01.180 --> 01:23:03.180 Unknown: So I think retreating back. 01:23:03.180 --> 01:23:08.180 Unknown: And I think the public is very aware that the goals are aspirational for a reason. 01:23:08.180 --> 01:23:12.180 SPEAKER_09: There's no expectation that you actually reach that mark by that 2030 date. 01:23:13.180 --> 01:23:21.180 SPEAKER_09: My other concern is about the projections with, I believe it was 228% increase in 10 years. 01:23:21.180 --> 01:23:27.180 Unknown: You know, numbers are important, but I think for everyday citizens, how did you get there with that number? 01:23:27.180 --> 01:23:37.180 SPEAKER_09: You know, are the methods to calculate that are large data centers that are potentially expected to come online in Sacramento County included in those numbers? 01:23:38.180 --> 01:23:47.180 SPEAKER_09: I think it's important that the public understands how you got there because right now I think we're all really disappointed with the decision to retreat from that goal. 01:23:47.180 --> 01:24:06.180 SPEAKER_09: It actually makes us feel like our board is insecure, might not be the right word, but has fears and is not secure with the decision that they made not that long ago that the public supports and supported and still supports. 01:24:06.180 --> 01:24:27.180 Unknown: And also would like you guys to make sure that you include the community organizations that have come today, Sacramento Environmental Justice Coalition, 350 Sacramento, Third Act, Sacramento Area Congregations together and appreciate Dave Tamayo's recommendation to include those community organizations. 01:24:27.180 --> 01:24:52.180 SPEAKER_09: I think you're missing all the actual residents that are experiencing these impacts and the potential increases beyond what's already increasing in our utility bills if you guys don't actually get on the ground with everyday residents that are not in neighborhood associations, that are not in the environmental forum, are not in your business advisory committees. 01:24:52.180 --> 01:24:53.180 Unknown: So that's all. 01:24:53.180 --> 01:24:55.180 SPEAKER_09: Thank you very much and appreciate your guys' time. 01:24:57.180 --> 01:24:58.180 Unknown: Okay. 01:24:58.180 --> 01:24:59.180 SPEAKER_10: So public comments. 01:24:59.180 --> 01:25:03.180 SPEAKER_10: I will call Q people up in three so that they know. 01:25:03.180 --> 01:25:15.180 SPEAKER_10: So Trevor Gitma, possibly, Casey Shuff, John Weber, and then Pat Ferris. 01:25:15.180 --> 01:25:22.180 SPEAKER_10: So any of those people, any order that you queue up, whoever comes first can speak. 01:25:22.180 --> 01:25:24.180 Unknown: I'll have John with first. 01:25:24.180 --> 01:25:26.180 Unknown: He's on his way. 01:25:26.180 --> 01:25:40.180 SPEAKER_03: Okay. 01:25:40.180 --> 01:25:47.180 Unknown: John, you are happy to go. 01:25:47.180 --> 01:25:50.180 Unknown: Good evening, Chair, board and committee members. 01:25:50.180 --> 01:25:54.180 SPEAKER_01: I believe the board of directors are intelligent and thoughtful. 01:25:54.180 --> 01:25:58.180 SPEAKER_01: I've had good experiences with all SMUD employees I have interacted with. 01:25:58.180 --> 01:26:05.180 SPEAKER_01: Based on board member comments the last few months, it doesn't seem like the board is aware of what the employees are doing. 01:26:05.180 --> 01:26:14.180 SPEAKER_01: We all know that SMUD has an obligation to provide electricity, but it doesn't have an obligation to submit a DOE grant for a data center. 01:26:15.180 --> 01:26:23.180 SPEAKER_01: On March 31st, 2026 at 9.28 p.m. at night, an employee sent this email to a developer. 01:26:23.180 --> 01:26:29.180 Unknown: Wanted to share that we have successfully submitted our Spark grant concept paper today. 01:26:29.180 --> 01:26:37.180 SPEAKER_01: Your help and support were invaluable getting this across the finish line, and we're excited to see what's going to come next. 01:26:37.180 --> 01:26:50.180 SPEAKER_01: Please note that I strategically removed references to the new substation and only hinted at onsite generation and battery storage. 01:26:50.180 --> 01:27:01.180 SPEAKER_01: My strategy behind this adjustment is to give us needed time to develop those site-specific details more robustly with an eye towards including them in the full app. 01:27:01.180 --> 01:27:06.180 SPEAKER_01: Next steps, SMUD team will start rallying the full application next week. 01:27:06.180 --> 01:27:15.180 Unknown: On May 18th, 2026 at 6.29 in the evening, an employee sent this email to the developer. 01:27:15.180 --> 01:27:20.180 Unknown: Okay, a grand total of what we're able to include in the grant is $122 million. 01:27:20.180 --> 01:27:28.180 SPEAKER_01: We pick up points if we're greater than 50% match, so I calculated your match at 51%, $62 million. 01:27:28.180 --> 01:27:32.180 SPEAKER_01: I redid your match letter template to reflect this. 01:27:32.180 --> 01:27:35.180 SPEAKER_01: Attached is the grant-specific budget. 01:27:35.180 --> 01:27:46.180 SPEAKER_01: Embedded in each line item is the projected cost, which, of course, foresees an increase for things like steel and labor rates in the coming years. 01:27:46.180 --> 01:27:53.180 SPEAKER_01: Last but not least, my thanks for your flexibility and workability throughout this grant submission process. 01:27:53.180 --> 01:28:00.180 SPEAKER_01: We're accomplishing in six weeks the type of application that would otherwise take six months. 01:28:00.180 --> 01:28:03.180 Unknown: SMUD has an obligation to provide electricity. 01:28:03.180 --> 01:28:07.180 SPEAKER_01: It also has an obligation to its existing rate payers shareholders. 01:28:07.180 --> 01:28:18.180 SPEAKER_01: The best way to protect the existing customer is to create a separate tariff for new large load data centers that will ensure they pay up front for all transmission, 01:28:18.180 --> 01:28:22.180 SPEAKER_01: distribution, and generation needed for their project. 01:28:22.180 --> 01:28:31.180 SPEAKER_01: The creation of this new tariff needs to be totally transparent to the public and crafted with public input. 01:28:31.180 --> 01:28:32.180 SPEAKER_01: Thank you. 01:28:32.180 --> 01:28:33.180 SPEAKER_01: Thank you. 01:28:35.180 --> 01:28:53.180 Unknown: As Trevor here, or Casey Chuff, and then Pat Ferris, if they could queue up, and then Jerry Brinsfield also, and Michelle Anama, if they could make their way. 01:28:54.180 --> 01:28:55.180 Unknown: Do I just start talking? 01:28:55.180 --> 01:28:56.180 Unknown: No. 01:28:56.180 --> 01:28:57.180 Unknown: Okay. 01:28:57.180 --> 01:28:58.180 Unknown: My name is Casey Chuff. 01:28:58.180 --> 01:29:10.180 Unknown: I'm here today as an owner of this not-for-profit community-owned electric service. 01:29:10.180 --> 01:29:17.180 SPEAKER_03: As an owner, my understanding is that this board's responsibility is to protect our interests and wellbeing. 01:29:17.180 --> 01:29:32.180 SPEAKER_03: We are here collectively as the public tonight preemptively ahead of the November meeting regarding the large load data centers to show the community is actually here and cares about this topic. 01:29:32.180 --> 01:29:35.180 SPEAKER_03: And we will obviously be back in November. 01:29:35.180 --> 01:29:43.180 SPEAKER_03: In this case, large load data centers present many unknowns, yet they're pushed on us with little to no input. 01:29:44.180 --> 01:29:49.180 SPEAKER_03: There's a data center proposed for Depot Park with an estimated load of 50 megahertz. 01:29:49.180 --> 01:29:57.180 SPEAKER_03: This is located in City Council District 6, and I believe that is SMUD rep, Mr. Fishman. 01:29:57.180 --> 01:29:59.180 SPEAKER_03: You're currently up for reelection. 01:29:59.180 --> 01:30:08.180 SPEAKER_03: In a conversation I had with Dave Tamayo, my own board rep, about this data center, he said, no one lives around Depot Park, so noise won't be a problem. 01:30:08.180 --> 01:30:13.180 SPEAKER_03: Well, it's my understanding that large load, you can hear up to 10 miles away. 01:30:13.180 --> 01:30:18.180 Unknown: So I live within that 10 miles, and I'm pretty sure Dave does as well. 01:30:18.180 --> 01:30:25.180 Unknown: Large load data centers, or this one, is being proposed by Link Logistics. 01:30:25.180 --> 01:30:34.180 SPEAKER_03: And the company behind Link Logistics, of course, is Blackstone, a trillion-dollar company who deals in billions of dollars of real estate. 01:30:35.180 --> 01:30:43.180 SPEAKER_03: They own 274,000 rental housing units, have hundreds of billions in total real estate assets. 01:30:43.180 --> 01:30:53.180 Unknown: After acquiring Home Partners of America in 2021, they're taking on another private residential firm in 2024 for $3.5 billion. 01:30:53.180 --> 01:30:54.180 SPEAKER_03: You get the point. 01:30:54.180 --> 01:30:58.180 SPEAKER_03: There's a lot of money behind this, and a lot of money behind data centers. 01:30:58.180 --> 01:31:02.180 Unknown: So ultimately, we don't know the long-term effects. 01:31:02.180 --> 01:31:03.180 SPEAKER_03: They're being pushed on us. 01:31:03.180 --> 01:31:05.180 SPEAKER_03: We don't know what will happen. 01:31:05.180 --> 01:31:07.180 SPEAKER_03: We know that they use a lot of water. 01:31:07.180 --> 01:31:10.180 SPEAKER_03: We know that they use a lot of chemicals. 01:31:10.180 --> 01:31:18.180 SPEAKER_03: We know that they're primarily placed in black-brown poor neighborhoods, and those neighborhoods are already under stress. 01:31:18.180 --> 01:31:24.180 SPEAKER_03: They're very noisy, and that frequency can impact human and animal health. 01:31:24.180 --> 01:31:29.180 SPEAKER_03: They use most of the water indirectly, creating electricity. 01:31:30.180 --> 01:31:39.180 SPEAKER_03: What it comes down to also after I've heard your IRP is, y'all need money, and that money is potentially proposed by large load. 01:31:39.180 --> 01:31:43.180 SPEAKER_03: So either large load or our rates go up. 01:31:43.180 --> 01:31:55.180 SPEAKER_03: I don't think any of that makes sense, but I do want you to hear us as the public, and that we definitely have concerns here, long-term health concerns for our environment. 01:31:55.180 --> 01:31:56.180 SPEAKER_03: Thank you. 01:31:56.180 --> 01:32:00.180 Unknown: Is Trevor here? 01:32:00.180 --> 01:32:01.180 Unknown: Or Pat? 01:32:01.180 --> 01:32:02.180 SPEAKER_10: Paris? 01:32:02.180 --> 01:32:03.180 SPEAKER_10: Or Jerry? 01:32:03.180 --> 01:32:06.180 SPEAKER_10: Bridsfield? 01:32:06.180 --> 01:32:08.180 Unknown: Are you one of those? 01:32:08.180 --> 01:32:09.180 Unknown: I'm one of those. 01:32:09.180 --> 01:32:10.180 Unknown: Okay. 01:32:10.180 --> 01:32:11.180 Unknown: Did you want to go? 01:32:11.180 --> 01:32:15.180 SPEAKER_10: The other people are not here. 01:32:15.180 --> 01:32:19.180 SPEAKER_10: And then, so you're Pat, right. 01:32:19.180 --> 01:32:20.180 SPEAKER_10: Okay. 01:32:20.180 --> 01:32:32.180 SPEAKER_10: And then to queue up to if Trevor's still here, Michelle, Anama, Megan, Shumway, and Audra, Starett, if they could start making their way. 01:32:32.180 --> 01:32:36.180 SPEAKER_10: Okay, Pat. 01:32:36.180 --> 01:32:37.180 Unknown: Hello. 01:32:37.180 --> 01:32:46.180 SPEAKER_16: I'm Pat Farris, and I had some prepared remarks, and then I heard the really good presentations prior to this. 01:32:46.180 --> 01:32:50.180 SPEAKER_16: So I'm going to add Lib. 01:32:50.180 --> 01:33:10.180 Unknown: I had the great good fortune to coach several of the leaders in this organization at a time when there was a recognition of developing and emerging leaders as benefiting by such service. 01:33:10.180 --> 01:33:16.180 SPEAKER_16: So I know some very well, and I'm really grateful for that. 01:33:16.180 --> 01:33:33.180 SPEAKER_16: As a result of that, when I retired nine years ago, I paid attention to SMUD and your process and your decisions, and was thrilled by the 2030 commitment. 01:33:33.180 --> 01:33:43.180 SPEAKER_16: I was thrilled partially because since I retired nine years ago, I've been a full-time climate social justice activist. 01:33:43.180 --> 01:33:58.180 SPEAKER_16: So the decision that you made that was stellar, that provided leadership throughout the country for other utilities and other public entities, was thrilling to me. 01:33:59.180 --> 01:34:04.180 SPEAKER_16: I'm very concerned about any shift in that commitment. 01:34:04.180 --> 01:34:07.180 Unknown: I'm a businessman. 01:34:07.180 --> 01:34:11.180 SPEAKER_16: I was a businessman in my former life. 01:34:11.180 --> 01:34:14.180 SPEAKER_16: I retain that view. 01:34:14.180 --> 01:34:16.180 Unknown: I'm a realist. 01:34:16.180 --> 01:34:20.180 SPEAKER_16: I'm an idealist, and I have my feet on the ground. 01:34:20.180 --> 01:34:22.180 SPEAKER_16: I understand budgets. 01:34:22.180 --> 01:34:31.180 Unknown: I also understand that many times we human beings have a short-term review. 01:34:31.180 --> 01:34:34.180 Unknown: Ten years may seem like a long time. 01:34:34.180 --> 01:34:42.180 SPEAKER_16: I used to do strategic planning with businesses, and we did ten-year strategic plans. 01:34:42.180 --> 01:34:47.180 SPEAKER_16: Then I did five-year strategic plans with businesses. 01:34:47.180 --> 01:34:51.180 SPEAKER_16: When I retired, we were doing year and a half. 01:34:51.180 --> 01:34:58.180 Unknown: During this particular time, looking at ten years is crystal-walling. 01:34:58.180 --> 01:35:06.180 SPEAKER_16: When I look at ten years or twenty years, I see climate disasters that are amazing. 01:35:06.180 --> 01:35:18.180 Unknown: So when you're doing cost analysis, if you don't consider the cost of not acting as leaders, you're missing the boat. 01:35:18.180 --> 01:35:23.180 Unknown: I'm really looking forward to being a part of this IRP process. 01:35:23.180 --> 01:35:29.180 Unknown: I'm looking forward to having conversations, and I'm looking forward to providing input 01:35:29.180 --> 01:35:34.180 SPEAKER_16: as I learn much more about the details, because that's what I need to do, 01:35:34.180 --> 01:35:40.180 SPEAKER_16: to represent the people that I'm concerned about, the lesser-advantaged people, 01:35:40.180 --> 01:35:46.180 SPEAKER_16: the people who have a different color than I, the people who have difficult time paying bills, 01:35:47.180 --> 01:35:52.180 SPEAKER_16: and the people who will be impacted by the crisis that's coming. 01:35:52.180 --> 01:35:54.180 SPEAKER_16: So thank you very much. 01:35:54.180 --> 01:35:56.180 Unknown: Thank you. 01:35:56.180 --> 01:35:59.180 SPEAKER_10: Do we have Jerry, Trevor, or Michelle here? 01:35:59.180 --> 01:36:04.180 SPEAKER_10: You can just raise your hand if you're any of those people. 01:36:04.180 --> 01:36:08.180 SPEAKER_10: Okay, so no Jerry, no Trevor or Michelle. 01:36:08.180 --> 01:36:09.180 SPEAKER_10: Okay. 01:36:09.180 --> 01:36:11.180 SPEAKER_10: How about Megan? 01:36:11.180 --> 01:36:15.180 SPEAKER_10: Okay, Megan, come right up. 01:36:15.180 --> 01:36:16.180 Unknown: Good evening. 01:36:16.180 --> 01:36:21.180 SPEAKER_15: I'm Megan Shumway, and I'm representing the Sacramento Climate Coalition. 01:36:21.180 --> 01:36:27.180 Unknown: And we believe that when SMUD promised to work towards the carbon zero goal, 01:36:27.180 --> 01:36:32.180 SPEAKER_15: that that was a promise they would keep, despite changes in leadership 01:36:32.180 --> 01:36:38.180 Unknown: or difficulties that you encounter in trying to achieve that goal. 01:36:38.180 --> 01:36:46.180 Unknown: It's something we don't expect to see diluted in any way in your resolve to meet that goal. 01:36:48.180 --> 01:36:56.180 Unknown: You will find that you can meet your trifecta of, 01:36:56.180 --> 01:37:06.180 SPEAKER_15: I don't know if you want to call them goals or your outline for making your customers happy, 01:37:07.180 --> 01:37:12.180 SPEAKER_15: but you will find that you'll get affordability and sustainability definitely 01:37:12.180 --> 01:37:16.180 SPEAKER_15: by making the investments in the newer batteries, 01:37:16.180 --> 01:37:21.180 SPEAKER_15: the newer, more efficient batteries, and the virtual power plants. 01:37:21.180 --> 01:37:27.180 SPEAKER_15: And I think that you can still meet a lot of your carbon zero goals 01:37:27.180 --> 01:37:35.180 SPEAKER_15: and replace all those dirty power plants that are spewing out the carbon that is killing us 01:37:35.180 --> 01:37:38.180 SPEAKER_15: in no uncertain terms. 01:37:38.180 --> 01:37:43.180 SPEAKER_15: Climate change will kill us if we don't stop admitting carbon. 01:37:43.180 --> 01:37:47.180 SPEAKER_15: So we need to keep working towards that goal. 01:37:47.180 --> 01:37:51.180 Unknown: I may not be around to see that happen, because I'm old, 01:37:51.180 --> 01:37:58.180 SPEAKER_15: but I have grandchildren, and I expect a lot of you younger people will still be around, 01:37:58.180 --> 01:37:59.180 SPEAKER_15: maybe having white hair. 01:37:59.180 --> 01:38:03.180 SPEAKER_15: By the time you start to feel the worst effects of climate change, 01:38:04.180 --> 01:38:09.180 Unknown: we need to keep the goal of zero carbon and do what we can to get there. 01:38:09.180 --> 01:38:14.180 SPEAKER_15: And I think we can do it and still maintain efficiency and affordability. 01:38:14.180 --> 01:38:21.180 SPEAKER_15: You're not going to get people to electrify if it's not affordable, 01:38:21.180 --> 01:38:24.180 SPEAKER_15: and if you don't electrify, they're not going to meet that goal either. 01:38:24.180 --> 01:38:31.180 SPEAKER_15: So there's got to be a way, and you are supposed to be people who are the experts on energy. 01:38:32.180 --> 01:38:37.180 SPEAKER_15: We depend on you to find the solutions, 01:38:37.180 --> 01:38:44.180 Unknown: and we do everything we can to help you by engaging with you and writing to you, 01:38:44.180 --> 01:38:50.180 SPEAKER_15: making suggestions, making references to articles we read that maybe you didn't, 01:38:50.180 --> 01:38:54.180 Unknown: anything that would help this situation. 01:38:54.180 --> 01:39:00.180 SPEAKER_15: We really believe that you need to keep that carbon zero goal front and center 01:39:00.180 --> 01:39:04.180 Unknown: and with these data centers, it's the same story. 01:39:04.180 --> 01:39:07.180 Unknown: You need to make sure they're not emitting carbon, 01:39:07.180 --> 01:39:10.180 SPEAKER_15: and a lot of their backup energy is based on diesel, 01:39:10.180 --> 01:39:14.180 Unknown: and we'll actually make our entire situation worse. 01:39:14.180 --> 01:39:20.180 Unknown: We have to find ways and plans to make it work. 01:39:20.180 --> 01:39:21.180 Unknown: Thank you. 01:39:21.180 --> 01:39:23.180 Unknown: Thank you. 01:39:23.180 --> 01:39:24.180 SPEAKER_10: Okay. 01:39:24.180 --> 01:39:25.180 SPEAKER_10: Are you Audra? 01:39:25.180 --> 01:39:26.180 SPEAKER_10: Yes. 01:39:26.180 --> 01:39:27.180 SPEAKER_10: Perfect. 01:39:27.180 --> 01:39:29.180 SPEAKER_10: And I want to call some other people to start queuing up. 01:39:29.180 --> 01:39:33.180 SPEAKER_10: Audra, Devin LeCluse, Sam Kiesner, 01:39:33.180 --> 01:39:38.180 SPEAKER_10: and then if Jerry, Trevor, and Michelle are still around. 01:39:38.180 --> 01:39:40.180 SPEAKER_07: But Audra, you have three minutes. 01:39:40.180 --> 01:39:41.180 SPEAKER_07: Thank you. 01:39:41.180 --> 01:39:43.180 SPEAKER_07: My name is Audra Sterrett. 01:39:43.180 --> 01:39:44.180 SPEAKER_07: I want to say thank you. 01:39:44.180 --> 01:39:48.180 SPEAKER_07: Because of my SMUD service, I don't have the rolling blackouts 01:39:48.180 --> 01:39:52.180 SPEAKER_07: and frequent all-day power outages that my parents do in Cameron Park. 01:39:52.180 --> 01:39:55.180 SPEAKER_07: Trying to decide where to go in 100-degree weather 01:39:55.180 --> 01:39:58.180 SPEAKER_07: and worrying about the refrigerator and freezer storage. 01:39:58.180 --> 01:40:01.180 SPEAKER_07: Luckily, they don't have pets to be concerned about 01:40:01.180 --> 01:40:03.180 SPEAKER_07: and power outages like we do. 01:40:03.180 --> 01:40:09.180 SPEAKER_07: My concern is keeping costs affordable and keeping the power on, 01:40:09.180 --> 01:40:11.180 SPEAKER_07: which are also your concerns, 01:40:11.180 --> 01:40:15.180 SPEAKER_07: according to the helpful presentation about the IRP today. 01:40:15.180 --> 01:40:19.180 SPEAKER_07: I worry about the electric cars being pushed as an answer to our problems 01:40:19.180 --> 01:40:21.180 SPEAKER_07: and how much energy they draw. 01:40:21.180 --> 01:40:25.180 SPEAKER_07: I'm specifically standing at the moment against large data centers 01:40:25.180 --> 01:40:28.180 SPEAKER_07: that could use a large amount of our resources 01:40:28.180 --> 01:40:32.180 SPEAKER_07: and the known and unknown health problems that can be caused by the frequency. 01:40:32.180 --> 01:40:33.180 SPEAKER_07: Thank you. 01:40:36.180 --> 01:40:40.180 Unknown: So we have Devin LeCluse, Sam Kiesner. 01:40:40.180 --> 01:40:43.180 SPEAKER_10: If you do have someone online, maybe we can take them. 01:40:45.180 --> 01:40:46.180 Unknown: I'll see any hands. 01:40:46.180 --> 01:40:47.180 SPEAKER_10: Oh, okay. 01:40:47.180 --> 01:40:49.180 SPEAKER_10: I thought we had one person earlier. 01:40:49.180 --> 01:40:50.180 SPEAKER_10: Okay. 01:40:51.180 --> 01:40:53.180 Unknown: Do you see anybody coming? 01:40:53.180 --> 01:40:54.180 SPEAKER_10: Okay. 01:40:54.180 --> 01:40:57.180 SPEAKER_10: So last call, I'm going to call Devin LeCluse, Sam Kiesner, 01:40:57.180 --> 01:41:02.180 SPEAKER_10: Jerry Brinsfield, Trevor, and Michelle. 01:41:04.180 --> 01:41:05.180 SPEAKER_10: Do we have any other cards? 01:41:05.180 --> 01:41:07.180 SPEAKER_10: Any other people online? 01:41:07.180 --> 01:41:10.180 SPEAKER_08: I do not see any hands of anybody online. 01:41:10.180 --> 01:41:11.180 SPEAKER_08: Okay. 01:41:12.180 --> 01:41:15.180 SPEAKER_10: So if you weren't able to get your comments in, 01:41:15.180 --> 01:41:19.180 SPEAKER_10: they will be included if received in two hours. 01:41:19.180 --> 01:41:23.180 SPEAKER_10: Do we have some summary of committee direction items? 01:41:23.180 --> 01:41:24.180 SPEAKER_10: I believe we do. 01:41:29.180 --> 01:41:32.180 Unknown: Yeah, the only thing I have is that staff will consider ways 01:41:32.180 --> 01:41:36.180 SPEAKER_08: to align the monitoring activities on the Jackson-Boulkes substation project 01:41:36.180 --> 01:41:39.180 SPEAKER_08: to a time when construction activities are occurring onsite. 01:41:41.180 --> 01:41:43.180 Unknown: And then we'll now enter in a closed session 01:41:43.180 --> 01:41:48.180 SPEAKER_10: to discuss the following item, 01:41:48.180 --> 01:41:51.180 SPEAKER_10: which is conference with our labor negotiators. 01:41:51.180 --> 01:41:56.180 SPEAKER_10: Pursuant to section 549576 of the Government Code, 01:41:56.180 --> 01:41:59.180 SPEAKER_10: SMUD, designated representative Tiffany Arette, 01:41:59.180 --> 01:42:02.180 SPEAKER_10: Employee Relations, and Michelle Dunt, 01:42:02.180 --> 01:42:05.180 Unknown: Principal Employee Relations Analyst, 01:42:05.180 --> 01:42:08.180 SPEAKER_10: and our employee organization, 01:42:08.180 --> 01:42:10.180 SPEAKER_10: Public Safety Officers Association. 01:42:13.180 --> 01:42:15.180 Unknown: Thank you.