WEBVTT 00:00:00.000 --> 00:00:28.560 Unknown: Thank you. 00:04:30.000 --> 00:04:53.920 Unknown: Let's do the 30 second count. 00:04:53.920 --> 00:04:59.400 Unknown: Okay, that was five seconds. 00:04:59.400 --> 00:05:02.040 SPEAKER_15: Not 30, but that's okay. 00:05:02.040 --> 00:05:07.860 Unknown: Good evening, everyone, and welcome to the policy committee and special board meeting 00:05:07.860 --> 00:05:11.639 SPEAKER_15: of September 9, 2026. 00:05:11.639 --> 00:05:14.300 SPEAKER_15: This room is equipped with a safety alarm. 00:05:14.300 --> 00:05:22.319 SPEAKER_15: If the alarm sounds, please leave in an orderly manner via the exits to the lobby or behind 00:05:22.319 --> 00:05:23.600 SPEAKER_15: the dais. 00:05:23.600 --> 00:05:30.240 SPEAKER_15: Assemble in front of the building and wait to hear the all clear announcement from security 00:05:30.240 --> 00:05:32.920 SPEAKER_15: before reentering. 00:05:32.920 --> 00:05:38.980 SPEAKER_15: This meeting is being recorded and can be accessed on SMUD's website. 00:05:38.980 --> 00:05:45.780 SPEAKER_15: Please remember to unmute your microphone when speaking in order that our virtual attendees 00:05:45.780 --> 00:05:47.420 SPEAKER_15: may hear. 00:05:47.420 --> 00:05:54.580 SPEAKER_15: The microphone will display a green light when the microphone is on. 00:05:54.580 --> 00:06:00.280 SPEAKER_15: For members of the public attending in person who wish to speak at this meeting, please 00:06:00.280 --> 00:06:07.720 SPEAKER_15: fill out a speaker request form located on the table outside of this room and hand it 00:06:07.720 --> 00:06:10.600 SPEAKER_15: to SMUD's security. 00:06:10.600 --> 00:06:15.700 SPEAKER_15: Members of the public attending this meeting virtually who wish to provide a verbal comment 00:06:15.699 --> 00:06:23.560 Unknown: during the committee meeting may do so by using the raise hand feature in Zoom or pressing 00:06:23.560 --> 00:06:33.279 SPEAKER_15: star 9 when dialed into the telephone toll-free number at the time when public comment is 00:06:33.279 --> 00:06:34.620 SPEAKER_15: called. 00:06:34.620 --> 00:06:39.599 SPEAKER_15: Technical support staff will enable the audio for you when your name is announced during 00:06:39.599 --> 00:06:42.899 SPEAKER_15: the public comment period. 00:06:42.899 --> 00:06:51.519 SPEAKER_15: You may also submit written comments by emailing them to public comment at SMUD.org. 00:06:51.519 --> 00:06:58.179 SPEAKER_15: Written comments will not be read into the record but will be provided to the board electronically 00:06:58.179 --> 00:07:05.699 Unknown: and placed into the record of the meeting if received within two hours after the meeting 00:07:05.699 --> 00:07:07.419 SPEAKER_15: ends. 00:07:07.419 --> 00:07:10.579 SPEAKER_15: Chief legal officer, please conduct the roll call. 00:07:10.579 --> 00:07:11.579 Unknown: Director Kurz? 00:07:11.579 --> 00:07:12.579 SPEAKER_05: Here. 00:07:12.579 --> 00:07:13.579 Unknown: Director Rose? 00:07:13.579 --> 00:07:14.579 SPEAKER_05: Here. 00:07:14.579 --> 00:07:15.579 Unknown: Chair Herber? 00:07:15.579 --> 00:07:16.579 Unknown: Here. 00:07:16.579 --> 00:07:17.579 SPEAKER_05: All committee members are present. 00:07:17.579 --> 00:07:22.139 SPEAKER_05: Also present are directors Fishman, Sanborn and present Tamayo. 00:07:22.139 --> 00:07:23.139 Unknown: Wonderful. 00:07:23.139 --> 00:07:24.139 SPEAKER_15: Okay. 00:07:24.139 --> 00:07:32.180 SPEAKER_15: Well, this first item tonight is something that the board and the board at Ad Hoc Committee 00:07:32.180 --> 00:07:38.539 SPEAKER_15: has been working on with the community and lots of environmental groups. 00:07:38.540 --> 00:07:46.040 SPEAKER_15: And so we're really excited to see what you all have come up with. 00:07:46.040 --> 00:07:54.420 SPEAKER_15: This is item number one, to discuss the monitoring report for strategic direction 7, which is 00:07:54.420 --> 00:08:05.020 SPEAKER_15: environmental leadership, and to discuss with possible amendment, strategic direction 7, 00:08:05.020 --> 00:08:07.580 SPEAKER_15: environmental leadership. 00:08:07.620 --> 00:08:13.139 SPEAKER_15: So in other words, we may make a few changes to it. 00:08:13.139 --> 00:08:20.860 SPEAKER_15: Please welcome Emily Bikini, who is our director of safety, environmental and real estate. 00:08:20.860 --> 00:08:22.500 Unknown: Good evening. 00:08:22.500 --> 00:08:24.539 Unknown: Thank you, Chair Herber. 00:08:24.539 --> 00:08:29.620 SPEAKER_00: My name is Emily Bikini and I'm the director of safety, environmental and real estate services. 00:08:29.620 --> 00:08:34.980 SPEAKER_00: I'm here tonight to provide a report on how SMUD's actions in 2025 demonstrate compliance 00:08:34.980 --> 00:08:40.539 SPEAKER_00: with strategic direction 7, environmental leadership, and provide an update on SMUD's 00:08:40.539 --> 00:08:45.100 SPEAKER_00: process and principles for renewable energy development, which includes a proposed update 00:08:45.100 --> 00:08:47.940 SPEAKER_00: to SD7. 00:08:47.940 --> 00:08:49.700 SPEAKER_00: Here's the SD7 language. 00:08:49.700 --> 00:08:53.060 SPEAKER_00: It's been pretty consistent for the past several years. 00:08:53.060 --> 00:08:59.200 SPEAKER_00: But I do want to point out in 2024 we added some new language to part A, the phrase enhancing 00:08:59.200 --> 00:09:01.180 SPEAKER_00: regional biodiversity. 00:09:01.179 --> 00:09:07.539 SPEAKER_00: And I'll be able to speak to some of the work we've done in that space this year. 00:09:07.539 --> 00:09:11.620 SPEAKER_00: One of the key areas for which we demonstrate environmental leadership is in reducing our 00:09:11.620 --> 00:09:13.579 SPEAKER_00: greenhouse gas emissions. 00:09:13.579 --> 00:09:21.379 SPEAKER_00: For 2025, our greenhouse gas emissions were approximately 1.477 million metric tons. 00:09:21.379 --> 00:09:27.299 SPEAKER_00: This is a decrease of 215,000 metric tons from 2024 emissions. 00:09:27.299 --> 00:09:32.679 SPEAKER_00: The graph on the left presents the trend going back to 2015, which was an especially 00:09:32.679 --> 00:09:35.740 SPEAKER_00: severe drought year. 00:09:35.740 --> 00:09:42.639 SPEAKER_00: Fluctuation and total emissions year to year are primarily due to changes in hydroelectricity 00:09:42.639 --> 00:09:48.759 SPEAKER_00: production, increases or decreases in customer demand, and the availability to purchase low 00:09:48.759 --> 00:09:50.539 SPEAKER_00: carbon power. 00:09:50.539 --> 00:09:55.639 SPEAKER_00: As we continue to purchase greater quantities of zero and lower emissions power, we expect 00:09:55.639 --> 00:09:59.679 SPEAKER_00: our emissions to meet customer demand to decrease. 00:09:59.679 --> 00:10:03.960 SPEAKER_00: The table on the right provides our greenhouse gas emissions from our thermal plants and 00:10:03.960 --> 00:10:09.600 SPEAKER_00: specified power purchases, which is primarily calpine setter. 00:10:09.600 --> 00:10:16.000 SPEAKER_00: Overall emissions accounting for the net wholesale adjustment decreased approximately 13% from 00:10:16.000 --> 00:10:26.360 SPEAKER_00: 1.692 million metric tons in 2024, again to 1.477 million metric tons in 2025. 00:10:26.360 --> 00:10:30.519 SPEAKER_00: Emissions decreased from all of our thermal facilities, while emissions associated with 00:10:30.519 --> 00:10:38.840 SPEAKER_00: the specified power purchases increased by approximately 10%. 00:10:38.840 --> 00:10:43.460 SPEAKER_00: This slide shows a couple of the efforts in 2025 we undertook to minimize environmental 00:10:43.460 --> 00:10:45.879 SPEAKER_00: impacts and conserve resources. 00:10:45.919 --> 00:10:51.200 SPEAKER_00: In early 2025, the invasive golden mussel was found in the lower San Joaquin River and 00:10:51.200 --> 00:10:54.179 SPEAKER_00: upper Sacramento-San Joaquin Delta. 00:10:54.179 --> 00:10:59.840 SPEAKER_00: We promptly began implementing a robust mussel monitoring and inspection program at our Rancho 00:10:59.840 --> 00:11:06.120 SPEAKER_00: Seiko Lake and increased our monitoring effort up at our upper American River Project hydro 00:11:06.120 --> 00:11:07.779 SPEAKER_00: facilities. 00:11:07.779 --> 00:11:13.340 SPEAKER_00: We received a grant of a little over $91,000 from the California Department of Fish and 00:11:13.340 --> 00:11:19.960 SPEAKER_00: Wildlife, which allowed us to purchase a solar and battery powered boat cleaning system 00:11:19.960 --> 00:11:24.259 SPEAKER_00: that our guests to Rancho Seiko Lake can use to clean their boats, which will prevent the 00:11:24.259 --> 00:11:28.100 SPEAKER_00: introduction of golden mussels at Rancho Seiko Lake. 00:11:28.100 --> 00:11:34.080 Unknown: 2025 was the first full year of implementing our habitat conservation plan. 00:11:34.080 --> 00:11:39.980 SPEAKER_00: The environmental services team reviewed 364 projects that were located either near a sensitive 00:11:39.980 --> 00:11:46.080 SPEAKER_00: biological resource in an area that has naturally occurring asbestos or in an area that has 00:11:46.080 --> 00:11:49.080 SPEAKER_00: a special soil management plan. 00:11:49.080 --> 00:11:56.620 SPEAKER_00: Of those projects, avoidance and minimization measures were prescribed for 43% because of 00:11:56.620 --> 00:11:59.060 SPEAKER_00: their potential to have an impact. 00:11:59.060 --> 00:12:05.300 SPEAKER_00: Then we completed 48 projects using our habitat conservation plan to minimize or mitigate 00:12:05.299 --> 00:12:11.719 SPEAKER_00: impacts on federally listed species in accordance with the conditions of the HCP, again reinforcing 00:12:11.719 --> 00:12:16.079 SPEAKER_00: our commitment to responsible environmental stewardship. 00:12:16.079 --> 00:12:20.959 SPEAKER_00: The warehouse team had a remarkable year with the Investment Recovery and Sustainable Solutions 00:12:20.959 --> 00:12:21.959 SPEAKER_00: Program. 00:12:21.959 --> 00:12:30.859 SPEAKER_00: They generated $1.1 million from recycling materials and diverted 957 tons from the landfill. 00:12:30.860 --> 00:12:37.960 SPEAKER_00: This effort also helped avoid approximately 5,200 metric tons of greenhouse gas emissions 00:12:37.960 --> 00:12:43.300 SPEAKER_00: by being able to reuse materials instead of producing new raw materials. 00:12:43.300 --> 00:12:48.000 SPEAKER_00: Warehouse material specialists saved over $2 million by implementing their circular 00:12:48.000 --> 00:12:56.139 SPEAKER_00: economy model, which allowed where they redeployed, reused, repurposed or recycled equipment. 00:12:56.139 --> 00:13:02.819 SPEAKER_00: We recycled 388 wood reels and received 74 of those back with new wire. 00:13:02.819 --> 00:13:13.259 SPEAKER_00: Then we were able to recycle or reuse 2,245 wood pallets keeping them out of the landfill. 00:13:13.259 --> 00:13:19.179 SPEAKER_00: In the spirit of enhancing regional biodiversity, our internal biodiversity and habitat conservation 00:13:19.179 --> 00:13:24.620 SPEAKER_00: working group remained active throughout 2025 with members coordinating on initiatives to 00:13:24.620 --> 00:13:27.940 SPEAKER_00: support enhanced regional biodiversity. 00:13:27.940 --> 00:13:33.340 SPEAKER_00: Our Pine Hill Preserve Restoration Project, a partnership with state and federal agencies, 00:13:33.340 --> 00:13:40.139 SPEAKER_00: Sac State and multiple SMUD departments, won the 2025 North American Pollinator Protection 00:13:40.139 --> 00:13:45.860 SPEAKER_00: Campaign's Electric Power Award for its right of way management practices supporting rare 00:13:45.860 --> 00:13:52.060 SPEAKER_00: and endemic species in addition to supporting pollinators and wildlife. 00:13:52.059 --> 00:13:56.859 SPEAKER_00: We launched a first of its kind nature-based carbon solutions and biodiversity feasibility 00:13:56.859 --> 00:14:02.739 SPEAKER_00: study that will allow us to understand the potential for land-based carbon storage that 00:14:02.739 --> 00:14:10.779 SPEAKER_00: will co-benefit ecosystems on land owned or managed by SMUD. 00:14:10.779 --> 00:14:15.759 SPEAKER_00: And then we also joined the Regional Power in Nature Initiative, a collaborative effort 00:14:15.759 --> 00:14:19.979 SPEAKER_00: to support the state's 30 by 30 program. 00:14:19.980 --> 00:14:26.700 SPEAKER_00: The Sacramento Tree Foundation distributed 11,203 shade trees as part of its Sacramento 00:14:26.700 --> 00:14:32.500 SPEAKER_00: shade program serving 2,695 customers. 00:14:32.500 --> 00:14:37.340 SPEAKER_00: This was an increase of 155 customers compared to 2024. 00:14:37.340 --> 00:14:44.659 SPEAKER_00: A total of 4,164 trees were planted in under-resourced communities, which was an increase of 28 trees 00:14:44.659 --> 00:14:47.639 SPEAKER_00: compared to 2024. 00:14:47.659 --> 00:14:53.620 SPEAKER_00: The total carbon captured either stored in biomass or avoided associated with these trees 00:14:53.620 --> 00:14:59.539 SPEAKER_00: is estimated at 34,000 at 44 metric tons. 00:14:59.539 --> 00:15:05.740 SPEAKER_00: And then in the fall of 2025, we piloted a program distributing native shrubs. 00:15:05.740 --> 00:15:10.319 SPEAKER_00: This is an opportunity for us to engage with residents in multifamily units that may have 00:15:10.319 --> 00:15:15.299 SPEAKER_00: limited space or renters who aren't able to plant trees on the property that they're 00:15:15.299 --> 00:15:17.620 SPEAKER_00: living on. 00:15:17.620 --> 00:15:24.060 SPEAKER_00: Working with the local vendor, Cornflower Farms, we were able to provide 50 shrubs in 00:15:24.060 --> 00:15:26.580 SPEAKER_00: 2025. 00:15:26.580 --> 00:15:32.240 SPEAKER_00: And then last but not least, our Avian Protection Program upgrades were made to 53 poles in 00:15:32.240 --> 00:15:39.000 SPEAKER_00: 2025 to make our overhead facilities safer for birds and more reliable for our customers. 00:15:39.000 --> 00:15:44.799 SPEAKER_00: Avian mitigation projects included adding avian protection guards, flight diverters, 00:15:44.799 --> 00:15:46.639 SPEAKER_00: or pole reframing. 00:15:47.159 --> 00:15:52.199 Unknown: Additionally, we were able to install three nest platforms on wood poles along the garden 00:15:52.199 --> 00:15:59.039 SPEAKER_00: highway and relocate osprey nests, which again, increases system reliability and helps support 00:15:59.039 --> 00:16:01.639 SPEAKER_00: the local osprey population. 00:16:03.639 --> 00:16:09.720 SPEAKER_00: In 2025, we invested over 4.6 million in community-based partnerships and programs. 00:16:09.720 --> 00:16:15.799 SPEAKER_00: Brian is going to cover a couple of these projects in his presentation of SD9, but I'm 00:16:15.799 --> 00:16:20.000 SPEAKER_00: going to speak to our partnership with the Volunteers of America. 00:16:20.000 --> 00:16:26.120 SPEAKER_00: We partner with them and they provide services to unhoused individuals in unsafe situations 00:16:26.120 --> 00:16:28.039 SPEAKER_00: near our infrastructure. 00:16:28.039 --> 00:16:33.479 SPEAKER_00: Through this partnership, a VOA social worker connected with 200 individuals experiencing 00:16:33.479 --> 00:16:39.679 SPEAKER_00: homelessness and connected them to general services, clothing and hygiene supplies, and 00:16:39.679 --> 00:16:45.279 SPEAKER_00: education on being safe around our facilities. 00:16:45.279 --> 00:16:50.000 SPEAKER_00: We also partnered with the American River College's Native American Resource Center 00:16:50.000 --> 00:16:54.839 SPEAKER_00: to support Native students and strengthen relationships with local tribes. 00:16:54.839 --> 00:17:01.039 SPEAKER_00: As a major sponsor of the American Indian Summer Institute, we provided funding and 00:17:01.039 --> 00:17:06.160 SPEAKER_00: employee engagement opportunities, including hands-on demonstrations for students at our 00:17:06.160 --> 00:17:12.359 SPEAKER_00: East Campus Operations Center, led by staff from distribution system operations, warehouse, 00:17:12.359 --> 00:17:16.159 SPEAKER_00: network substations, and line. 00:17:16.159 --> 00:17:20.799 SPEAKER_00: And SMUD also helps support the Elder in Residence Program, which provides opportunities for 00:17:20.799 --> 00:17:32.959 SPEAKER_00: tribal elders to share traditional cultural practices and ecological knowledge with students. 00:17:32.959 --> 00:17:37.799 SPEAKER_00: To promote the efficient use of energy by our customers, we proactively reach out to 00:17:37.799 --> 00:17:44.159 SPEAKER_00: our residential and commercial customers through our building electrification and 00:17:44.159 --> 00:17:46.399 SPEAKER_00: energy efficiency programs. 00:17:46.399 --> 00:17:51.200 SPEAKER_00: As part of our Advanced Home Solutions Program, hundreds of homeowners attended quarterly 00:17:51.200 --> 00:17:58.480 SPEAKER_00: energy education courses and hundreds of trusted contractors in our SMUD contractor network, 00:17:58.480 --> 00:18:02.200 SPEAKER_00: joined weekly office hours and monthly webinars. 00:18:02.200 --> 00:18:06.519 SPEAKER_00: These events help to educate our customers and contractors about the benefits of all 00:18:06.519 --> 00:18:10.759 SPEAKER_00: electric appliances and energy efficiency. 00:18:10.759 --> 00:18:15.359 SPEAKER_00: This program has supported the installation of over 25,000 heat pumps for both space and 00:18:15.359 --> 00:18:22.119 SPEAKER_00: water heating since 2018, including almost 5,000 in 2025. 00:18:22.119 --> 00:18:26.799 SPEAKER_00: Last year, we increased outreach with targeted email campaigns, bill inserts, and digital 00:18:26.799 --> 00:18:30.400 SPEAKER_00: advertising as part of our Go Electric campaign. 00:18:30.400 --> 00:18:36.840 SPEAKER_00: These efforts help us to reach more customers with the benefits of energy efficiency upgrades. 00:18:36.840 --> 00:18:41.960 SPEAKER_00: We also launched Zero Home, an on-lane tool that lets customers understand how they can 00:18:41.960 --> 00:18:47.280 SPEAKER_00: make their homes more energy efficient and reduce their carbon footprint. 00:18:47.280 --> 00:18:51.600 SPEAKER_00: Customers simply enter their address and Zero Home creates a personalized model of their 00:18:51.600 --> 00:18:57.920 SPEAKER_00: home and identifies potential electrification improvements that will reduce energy use and 00:18:57.920 --> 00:19:02.160 SPEAKER_00: lower bills. 00:19:02.160 --> 00:19:07.200 SPEAKER_00: Our transportation electrification portfolio includes outreach to residences and incentives 00:19:07.200 --> 00:19:11.720 SPEAKER_00: for both residential and commercial electric vehicle chargers. 00:19:11.720 --> 00:19:17.740 SPEAKER_00: Our goal is to have our vehicle electrification programs reduce transportation-related greenhouse 00:19:17.740 --> 00:19:24.440 SPEAKER_00: gas emissions by 1 million metric tons by 2030, which would be the equivalent of electrifying 00:19:25.200 --> 00:19:27.880 SPEAKER_00: 288,000 vehicles. 00:19:27.880 --> 00:19:32.600 SPEAKER_00: Brian is going to talk a little bit more about those wins in his presentation. 00:19:32.600 --> 00:19:36.600 SPEAKER_00: But I also want to share the work that we've done in reducing emissions generated by our 00:19:36.600 --> 00:19:38.000 SPEAKER_00: fleet. 00:19:38.000 --> 00:19:43.600 SPEAKER_00: This is being accomplished through alternative fuel usage, idle reduction, and vehicle electrification 00:19:43.600 --> 00:19:46.160 SPEAKER_00: where the technology is available. 00:19:46.160 --> 00:19:50.840 SPEAKER_00: Through these efforts, we've been able to increase our electric vehicle miles driven, 00:19:50.839 --> 00:19:56.279 SPEAKER_00: reduce our greenhouse gas emission reductions, reduce our total fossil fuel emissions, and 00:19:56.279 --> 00:19:57.879 SPEAKER_00: increase our fuel economy. 00:19:57.879 --> 00:20:02.839 SPEAKER_00: You can see the numbers by which we've done that on the slide there. 00:20:02.839 --> 00:20:08.519 SPEAKER_00: We've also been continued to work to replace gas and diesel powered handheld equipment 00:20:08.519 --> 00:20:14.319 SPEAKER_00: with equivalent electric or battery powered tools when they are available, such as trimmers, 00:20:14.319 --> 00:20:16.119 SPEAKER_00: blowers, and generators. 00:20:16.119 --> 00:20:22.359 SPEAKER_00: By researching market availability and capitalizing on technological improvements, we've achieved 00:20:22.359 --> 00:20:28.000 SPEAKER_00: a 98% hand tool electrification in 2025. 00:20:28.000 --> 00:20:30.919 SPEAKER_00: So that completes my report out on SD7. 00:20:30.919 --> 00:20:34.479 SPEAKER_00: Before I transition to the next part of my presentation, I want to pause to see if there 00:20:34.479 --> 00:20:36.479 SPEAKER_00: are any questions. 00:20:36.479 --> 00:20:43.199 Unknown: It doesn't seem like there are yet. 00:20:43.440 --> 00:20:47.160 SPEAKER_15: One thing I did want to call out and say thank you. 00:20:47.160 --> 00:20:56.920 SPEAKER_15: I know Director Sanborn and myself and I think Director Fishman participated in a group really 00:20:56.920 --> 00:21:07.440 SPEAKER_15: working hard to help folks change out their gas powered equipment to electric. 00:21:07.440 --> 00:21:14.440 SPEAKER_15: And I'm glad to see that SMUD is at 98% because that was really important to us. 00:21:14.440 --> 00:21:16.440 Unknown: Yeah, go ahead. 00:21:16.440 --> 00:21:21.360 Unknown: Yeah, it was funny because we were just, Director Fishman and I were just at the celebration 00:21:21.360 --> 00:21:27.360 SPEAKER_06: of 30 years of the Sacramento Regional Air District event and I was talking to a couple 00:21:27.360 --> 00:21:32.680 SPEAKER_06: of folks about, and Councilmember Guerra about this because he's on the Air Board, that we 00:21:32.680 --> 00:21:39.880 SPEAKER_06: banned the sale of these gas powered handheld equipment two years ago but they're still 00:21:39.880 --> 00:21:45.039 SPEAKER_06: being used a lot and maybe that's something that we could partner with the parks departments 00:21:45.039 --> 00:21:50.759 SPEAKER_06: and others to educate them how we did it and show them how we did it and kept the cost 00:21:50.759 --> 00:21:55.560 SPEAKER_06: down and trained everybody and all of that because I think the first generation of that 00:21:55.560 --> 00:22:00.320 SPEAKER_06: equipment was kind of sketchy and the batteries maybe didn't work as long and so forth as 00:22:00.319 --> 00:22:04.480 SPEAKER_06: they do now but I just think it's a wonderful thing that we've done it and it would be great 00:22:04.480 --> 00:22:09.839 SPEAKER_06: to share the information with other folks in the community. 00:22:09.839 --> 00:22:10.839 Unknown: Yes. 00:22:10.839 --> 00:22:23.759 SPEAKER_06: I'll send information about this through the board office and we can decide if we would 00:22:23.759 --> 00:22:29.159 SPEAKER_12: follow up or not but they still have a map of where every tree that SMUD has helped plant 00:22:29.160 --> 00:22:35.000 SPEAKER_12: sits relative to people's homes and whatnot and there's now a public website where you 00:22:35.000 --> 00:22:41.920 SPEAKER_12: can put in your address, describe where the tree is, how big it is, what species of tree 00:22:41.920 --> 00:22:45.880 SPEAKER_12: it is and it will give you a breakdown of how much carbon it has captured, how much 00:22:45.880 --> 00:22:51.480 SPEAKER_12: rain, storm water runoff it has prevented, a ton of different and how much it's worth, 00:22:51.480 --> 00:22:56.320 SPEAKER_12: how much value it's added to your home so there's just a ton of information out there. 00:22:56.319 --> 00:23:01.799 SPEAKER_12: It would be fun to kind of try to quantify some of what the now more than half a million 00:23:01.799 --> 00:23:06.079 SPEAKER_12: trees that we've planted over the years, what the value is to that. 00:23:06.079 --> 00:23:09.119 SPEAKER_12: So I'll send that on through the board office and we can decide if we want to follow up 00:23:09.119 --> 00:23:10.119 SPEAKER_12: or not. 00:23:10.119 --> 00:23:11.119 SPEAKER_15: Thank you. 00:23:11.119 --> 00:23:12.119 SPEAKER_15: Thank you. 00:23:12.119 --> 00:23:14.119 SPEAKER_15: Director Fishman was that Anne Thanker? 00:23:14.119 --> 00:23:15.119 SPEAKER_15: Yes. 00:23:15.119 --> 00:23:16.519 SPEAKER_15: Yes, she talked to me about it too. 00:23:16.519 --> 00:23:22.759 SPEAKER_15: I think it would be a wonderful thing to do is to quantify what has come from that work. 00:23:22.759 --> 00:23:25.679 Unknown: Yes, Director Sanborn, did you? 00:23:26.039 --> 00:23:27.440 Unknown: Yes, there was one other question. 00:23:27.440 --> 00:23:28.440 SPEAKER_06: I'm sorry. 00:23:28.440 --> 00:23:34.640 SPEAKER_06: The feasibility report on nature-based solutions, when do we expect to see that? 00:23:34.640 --> 00:23:35.640 SPEAKER_00: Great question. 00:23:35.640 --> 00:23:39.640 SPEAKER_00: Josh will be coming to the Strategic Policy Committee. 00:23:39.640 --> 00:23:41.920 SPEAKER_00: Sorry, that's not the right name. 00:23:41.920 --> 00:23:46.320 SPEAKER_00: The Strategic Development Committee on November 11th, Josh Langdon will be here to provide 00:23:46.320 --> 00:23:47.720 SPEAKER_00: an update on that study. 00:23:47.720 --> 00:23:48.720 SPEAKER_00: Great. 00:23:48.720 --> 00:23:49.720 Unknown: Thank you. 00:23:49.720 --> 00:23:50.720 Unknown: Yes, Brandon. 00:23:50.759 --> 00:23:58.039 Unknown: And in terms of this, this is the slide we're on, vehicle electrification work. 00:23:58.039 --> 00:24:03.279 SPEAKER_09: Maybe next year we can get a little bit more information about where the status of the 00:24:03.279 --> 00:24:07.519 SPEAKER_09: fleet changes actually are versus these really large emission reductions, because I'd be 00:24:07.519 --> 00:24:15.000 SPEAKER_09: really curious to see exactly where our light and heavy duty fleets stand in terms of that 00:24:15.000 --> 00:24:16.000 SPEAKER_09: transition. 00:24:16.000 --> 00:24:22.480 SPEAKER_09: Often we periodically will do a separate board committee item just on fleet electrification, 00:24:22.480 --> 00:24:26.480 SPEAKER_09: but we don't do it every year, so just something to think about in the future. 00:24:26.480 --> 00:24:27.480 Unknown: Okay. 00:24:27.480 --> 00:24:28.480 SPEAKER_15: Take that back. 00:24:28.480 --> 00:24:30.119 Unknown: Thank you. 00:24:30.119 --> 00:24:32.680 SPEAKER_15: Any other questions? 00:24:32.680 --> 00:24:34.680 SPEAKER_15: Seeing none, please proceed. 00:24:34.680 --> 00:24:35.680 Unknown: Great. 00:24:35.680 --> 00:24:36.680 SPEAKER_00: Thank you. 00:24:36.680 --> 00:24:40.119 SPEAKER_00: So next I'd like to provide you with an update on the work staff has undertaken since our 00:24:40.119 --> 00:24:44.599 SPEAKER_00: March Policy Committee, where we discussed SMUD's process and principles for renewable 00:24:44.599 --> 00:24:46.480 SPEAKER_00: energy development. 00:24:46.480 --> 00:24:50.279 SPEAKER_00: As an outcome of that meeting, as you mentioned, Chair Herber, an ad hoc committee was formed 00:24:50.279 --> 00:24:55.399 SPEAKER_00: to review those processes and principles, and staff worked with several local environmental 00:24:55.399 --> 00:25:00.599 SPEAKER_00: coalition representatives and solar developers to right size our processes. 00:25:00.599 --> 00:25:05.599 SPEAKER_00: An outcome of this work is ultimately wrapped up in a proposed revision to SD7, but first 00:25:05.599 --> 00:25:08.799 SPEAKER_00: I want to share more on those efforts. 00:25:08.799 --> 00:25:13.359 SPEAKER_00: So from March through August, staff held multiple meetings with environmental coalition representatives 00:25:13.359 --> 00:25:18.359 SPEAKER_00: and solar project developers to collaborate on these changes to our renewable energy 00:25:18.359 --> 00:25:20.919 SPEAKER_00: development procedures and policies. 00:25:20.919 --> 00:25:25.119 SPEAKER_00: This slide shows the organizations and individuals that we worked with, and we want to thank 00:25:25.119 --> 00:25:27.159 SPEAKER_00: them again for being a part of this process. 00:25:27.159 --> 00:25:31.759 Unknown: Additionally, I want to thank staff from our renewable project development team and energy 00:25:31.759 --> 00:25:36.359 SPEAKER_00: contracts who worked with me and others from the environmental services team to develop 00:25:36.359 --> 00:25:39.319 SPEAKER_00: the proposed changes. 00:25:39.319 --> 00:25:42.819 SPEAKER_00: There were a couple of areas we focused on as part of this process. 00:25:42.819 --> 00:25:47.779 SPEAKER_00: First we saw the need to update our principles for renewable energy development, the first 00:25:47.779 --> 00:25:53.500 SPEAKER_00: update being adding procurement to that title, so that it was clear that this work applies 00:25:53.500 --> 00:25:57.579 SPEAKER_00: to both SMUD developed projects and power purchase agreement projects. 00:25:57.579 --> 00:26:01.500 SPEAKER_00: Second, we needed to formalize and update the process that the environmental services 00:26:01.500 --> 00:26:06.179 SPEAKER_00: team undertook when reviewing projects and ensure that there was transparency around 00:26:06.179 --> 00:26:07.740 SPEAKER_00: those results. 00:26:07.740 --> 00:26:11.839 SPEAKER_00: And we wanted to make sure the process followed by the energy contracts team clearly included 00:26:12.000 --> 00:26:16.959 SPEAKER_00: that principles document along with our environmental screening process. 00:26:16.959 --> 00:26:21.000 SPEAKER_00: All of this work was captured by the proposed change to SD7, which I will share with you 00:26:21.000 --> 00:26:22.959 SPEAKER_00: in a minute. 00:26:22.959 --> 00:26:28.119 SPEAKER_00: This SD7 change will allow for the board and the public to understand how PPA projects 00:26:28.119 --> 00:26:35.480 SPEAKER_00: meet the principles for renewable energy procurement and development prior to contract execution. 00:26:35.480 --> 00:26:40.259 SPEAKER_00: As a reminder, the principles for renewable energy procurement and development, also known 00:26:40.299 --> 00:26:45.980 SPEAKER_00: as PREP, and probably what I'll use for the rest of the presentation, is a SMUD document 00:26:45.980 --> 00:26:51.500 SPEAKER_00: that outlines SMUD's commitment to developing and procuring carbon free renewable energy 00:26:51.500 --> 00:26:57.539 SPEAKER_00: as a matter that supports the community, protects the environment, including tribal and cultural 00:26:57.539 --> 00:27:01.539 SPEAKER_00: resources, and respects human rights. 00:27:01.539 --> 00:27:08.539 SPEAKER_00: Updates to the PREP included again clarity around that these principles apply to the 00:27:10.859 --> 00:27:13.379 SPEAKER_00: PPA projects. 00:27:13.379 --> 00:27:18.019 SPEAKER_00: We've also added language around transparency and community engagement, including with 00:27:18.019 --> 00:27:20.559 SPEAKER_00: the authority having jurisdiction. 00:27:20.559 --> 00:27:25.680 SPEAKER_00: We've clarified that consultation with local tribes is required, and we've streamlined 00:27:25.680 --> 00:27:31.099 SPEAKER_00: the sustainable communities language so that it focuses on measurable outcomes. 00:27:31.099 --> 00:27:38.099 SPEAKER_00: The principles document will also be posted on SMUD.org as soon as the website is updated. 00:27:39.059 --> 00:27:43.179 SPEAKER_00: Specific to the environmental screening process, we've always had an internal process, but 00:27:43.179 --> 00:27:46.779 SPEAKER_00: we now captured that work in a formal process document. 00:27:46.779 --> 00:27:50.779 SPEAKER_00: The objective of the environmental screening is to understand how a potential project could 00:27:50.779 --> 00:27:57.339 SPEAKER_00: impact the environment, focusing on biological resources, impacts to tribal or cultural resources, 00:27:57.339 --> 00:27:59.579 SPEAKER_00: and impacts on agriculture. 00:27:59.579 --> 00:28:03.980 SPEAKER_00: We've developed a rubric that we can use to categorize and score impacts. 00:28:03.980 --> 00:28:09.819 SPEAKER_00: Under this process, we will be reviewing habitat connectivity and how the project under review 00:28:09.819 --> 00:28:14.059 SPEAKER_00: could impact adjacent habitat that may be sensitive or protected. 00:28:14.059 --> 00:28:18.660 SPEAKER_00: This clarifies that for PPA projects, we expect the developer to communicate updates on their 00:28:18.660 --> 00:28:24.860 SPEAKER_00: permitting process, including any concerns raised by the authority having jurisdiction, 00:28:24.860 --> 00:28:28.319 SPEAKER_00: and it requires a site visit for local projects. 00:28:28.319 --> 00:28:32.740 SPEAKER_00: This screening process happens right at the beginning of a project review and will allow 00:28:32.779 --> 00:28:39.539 SPEAKER_00: us to ensure that the project is on track to align with SMUD's values. 00:28:39.539 --> 00:28:43.740 SPEAKER_00: For the power purchase agreement procurement process, this is an internal process used 00:28:43.740 --> 00:28:48.539 SPEAKER_00: by energy contracts, and it clarifies the requirement again to document and share how 00:28:48.539 --> 00:28:54.500 SPEAKER_00: the project aligns with the PREP, along with following our environmental screening process. 00:28:54.500 --> 00:28:59.740 SPEAKER_00: Again, these were already part of the process, but their document has been updated to explicitly 00:28:59.740 --> 00:29:01.420 SPEAKER_00: require them. 00:29:01.900 --> 00:29:07.019 Unknown: Additionally, the environmental coalition asked that we post information on PPA projects 00:29:07.019 --> 00:29:12.740 SPEAKER_00: that would come to the board 30 days prior to its approval or to its review. 00:29:12.740 --> 00:29:18.000 SPEAKER_00: We agree to the concept and believe that we'll be able to accommodate the request or something 00:29:18.000 --> 00:29:22.460 SPEAKER_00: very close to it, but we're still working internally on the logistics of how to ensure 00:29:22.460 --> 00:29:29.259 SPEAKER_00: transparency around how SMUD is applying its principles without making risky public disclosures, 00:29:29.259 --> 00:29:34.539 SPEAKER_00: creating unnecessary governance delays, or weakening SMUD's market position. 00:29:37.059 --> 00:29:41.279 SPEAKER_00: This slide provides an overview of our governance process for renewable projects. 00:29:41.279 --> 00:29:42.539 SPEAKER_00: This slide may look familiar. 00:29:42.539 --> 00:29:48.940 SPEAKER_00: We shared a version of it back in March, but we've provided updates shown in red. 00:29:48.940 --> 00:29:53.180 SPEAKER_00: Walking through those updates, first again, the principles document will be posted on 00:29:53.180 --> 00:29:55.180 SPEAKER_00: SMUD.org. 00:29:55.180 --> 00:30:02.980 SPEAKER_00: They had all been shared with developers previously, but now they'll be available for everyone. 00:30:02.980 --> 00:30:07.180 SPEAKER_00: After a developer submits their proposal, the environmental team will screen the project 00:30:07.180 --> 00:30:11.900 SPEAKER_00: following our formalized process and rubric, along with understanding any concerns that 00:30:11.900 --> 00:30:15.860 SPEAKER_00: may come from the authority with jurisdiction. 00:30:15.860 --> 00:30:21.740 SPEAKER_00: After the developer receives our principles and before the contract negotiations are complete, 00:30:21.740 --> 00:30:26.059 SPEAKER_00: the environmental services team will review how the project aligns with the principles 00:30:26.059 --> 00:30:30.120 SPEAKER_00: based off of information that we're receiving from the developer on how they can or cannot 00:30:30.120 --> 00:30:31.880 SPEAKER_00: achieve those. 00:30:31.880 --> 00:30:36.059 SPEAKER_00: Energy contracts will document how the project aligns or doesn't align with the PREP and 00:30:36.059 --> 00:30:39.539 SPEAKER_00: will bring that information to the board for its consideration. 00:30:39.539 --> 00:30:43.660 SPEAKER_00: And then SMUD staff will monitor alignment with the principles, including review of more 00:30:43.660 --> 00:30:48.140 SPEAKER_00: detailed plans as they become available and those outcomes. 00:30:48.140 --> 00:30:51.860 SPEAKER_00: If there's a material change, then we would come back to the board with an amendment to 00:30:51.860 --> 00:30:54.940 SPEAKER_00: the PPA. 00:30:54.940 --> 00:30:59.980 SPEAKER_00: And again, the way that we've captured all of this work is through the addition of item 00:30:59.980 --> 00:31:06.580 SPEAKER_00: F, which is bolded and underlined to SD7, which says that we will address SMUD's principle 00:31:06.580 --> 00:31:09.420 SPEAKER_00: for renewable energy development and procurement. 00:31:09.420 --> 00:31:11.820 Unknown: I said that wrong. 00:31:11.820 --> 00:31:16.100 SPEAKER_00: Renewable energy procurement and development. 00:31:16.099 --> 00:31:19.579 SPEAKER_00: One additional item we'd like the board to become aware of is that coming out of this 00:31:19.579 --> 00:31:23.699 SPEAKER_00: work, we recognize the value of continuing to work with the environmental community on 00:31:23.699 --> 00:31:24.699 SPEAKER_00: our efforts. 00:31:24.699 --> 00:31:27.740 SPEAKER_00: And so we'll be piloting an environmental forum. 00:31:27.740 --> 00:31:31.579 SPEAKER_00: This will allow us to continue our dialogue, increase awareness of what may be happening 00:31:31.579 --> 00:31:36.699 SPEAKER_00: in the environment locally, allow for streamlined communications, and ultimately improve the 00:31:36.699 --> 00:31:40.139 SPEAKER_00: environmental outcomes on SMUD projects. 00:31:40.139 --> 00:31:45.379 SPEAKER_00: We're working to bring a facilitator on board, the person that worked with SMUD through our 00:31:45.380 --> 00:31:51.340 SPEAKER_00: UARP negotiations, and we'll be engaging in future conversations with the environmental 00:31:51.340 --> 00:31:57.580 SPEAKER_00: forum on upcoming efforts, including our integrated resources plan. 00:31:57.580 --> 00:32:02.420 SPEAKER_00: And with that, I'm asking the board to approve or accept the monitoring report for Strategic 00:32:02.420 --> 00:32:08.620 SPEAKER_00: Direction 7 and approve the proposed revisions to Strategic Direction 7. 00:32:08.620 --> 00:32:09.660 SPEAKER_15: Thank you, Emily. 00:32:09.660 --> 00:32:12.220 SPEAKER_15: Do we have questions from Emily? 00:32:12.220 --> 00:32:17.620 SPEAKER_15: We have several people who want to speak, but before we move to that, are there any 00:32:17.620 --> 00:32:19.779 SPEAKER_15: specific questions? 00:32:19.779 --> 00:32:22.940 SPEAKER_15: Yes, Director Kurth. 00:32:22.940 --> 00:32:24.940 Unknown: Thank you. 00:32:24.940 --> 00:32:25.940 SPEAKER_04: Impressive work. 00:32:25.940 --> 00:32:29.420 SPEAKER_04: I think this meets the goals that we've had so far that we're aware of. 00:32:29.420 --> 00:32:31.380 SPEAKER_04: Appreciate that. 00:32:31.380 --> 00:32:35.220 SPEAKER_04: One question always worried about the cost of things. 00:32:35.220 --> 00:32:44.339 SPEAKER_04: What's the cost of implementing this process on the proposals that come through to us? 00:32:44.339 --> 00:32:48.900 SPEAKER_00: That's a really good question, and I don't think we've captured those costs thus far. 00:32:48.900 --> 00:32:58.500 SPEAKER_00: We've just kind of incorporated the work into part of our greater efforts. 00:32:58.500 --> 00:33:04.500 SPEAKER_00: The environmental review process initially takes probably a day, especially including 00:33:04.500 --> 00:33:09.779 SPEAKER_00: a site visit, maybe longer with a site visit, but that's something we could look into more 00:33:09.779 --> 00:33:11.740 SPEAKER_00: and get back to the board on. 00:33:11.740 --> 00:33:18.619 SPEAKER_04: Yeah, that and I would add to that, what's the time it takes? 00:33:18.619 --> 00:33:25.140 SPEAKER_04: How long is this going to take to implement and will that affect the delivery of projects? 00:33:25.140 --> 00:33:27.460 SPEAKER_04: And if so, how much? 00:33:27.460 --> 00:33:30.980 SPEAKER_00: It doesn't appear that it's going to affect the timeline for delivery of projects. 00:33:30.980 --> 00:33:36.299 SPEAKER_00: We can incorporate this as part of the contract negotiation process. 00:33:36.299 --> 00:33:40.019 SPEAKER_00: The environmental screening, though, we think is going to take four to six weeks to do all 00:33:40.019 --> 00:33:45.180 SPEAKER_00: the background work and run all the reports and get information from all the agencies 00:33:45.180 --> 00:33:46.180 SPEAKER_00: we reach out to. 00:33:46.180 --> 00:33:47.180 Unknown: Thanks. 00:33:47.180 --> 00:33:48.900 SPEAKER_00: But again, that's within the larger work. 00:33:48.900 --> 00:33:53.460 SPEAKER_04: Things that need to be done, but these projects also have a tremendous benefit. 00:33:53.460 --> 00:34:01.180 SPEAKER_04: I mean, in round numbers, every solar panel prevents about two pounds of CO2 per day. 00:34:01.180 --> 00:34:06.180 SPEAKER_04: And so the longer these things go before they're delivered, the more CO2 we dump. 00:34:06.180 --> 00:34:07.180 Unknown: Thanks. 00:34:07.180 --> 00:34:09.139 SPEAKER_15: Thank you. 00:34:09.139 --> 00:34:14.460 SPEAKER_15: Any other questions before we go to public comment? 00:34:14.460 --> 00:34:19.579 SPEAKER_15: Seeing none, thank you, Emily, and we'll take some public comment now. 00:34:19.579 --> 00:34:25.819 SPEAKER_15: Our first speaker will be Kate Kelly with Defenders of Wildlife. 00:34:25.819 --> 00:34:31.119 SPEAKER_15: And we're actually going to give her five minutes just because she has kind of led the 00:34:31.119 --> 00:34:42.579 SPEAKER_15: effort with the environmental groups meeting up with our staff and our ad hoc group also 00:34:42.579 --> 00:34:43.579 SPEAKER_15: joined in. 00:34:43.579 --> 00:34:46.139 Unknown: But welcome, Kate. 00:34:46.139 --> 00:34:48.420 SPEAKER_17: Thank you, Kate Kelly, on behalf of Defenders of Wildlife. 00:34:48.420 --> 00:34:49.820 SPEAKER_17: And I appreciate the extra time. 00:34:49.820 --> 00:34:53.619 SPEAKER_17: I think that's the reward for running all of the doodles over the last however many 00:34:53.619 --> 00:34:54.619 SPEAKER_17: months. 00:34:54.619 --> 00:35:01.340 SPEAKER_17: We're here this evening because we asked to work collaboratively with you in March. 00:35:01.340 --> 00:35:05.860 SPEAKER_17: And what you saw today is some of the products of that collaboration. 00:35:05.860 --> 00:35:13.059 SPEAKER_17: And for that, we are grateful for the opportunity to work with staff, the transparency, the 00:35:13.059 --> 00:35:17.780 SPEAKER_17: thoughtful conversations, the frank conversations that we had. 00:35:17.780 --> 00:35:23.340 SPEAKER_17: And we're grateful for the work of the ad hoc committee working on this as well. 00:35:23.340 --> 00:35:26.700 SPEAKER_17: As a result of that, we've got some great products that have come out of this, updated 00:35:26.700 --> 00:35:33.060 SPEAKER_17: principles that clearly address the third-party projects, environmental screening procedure 00:35:33.060 --> 00:35:39.060 SPEAKER_17: that's been codified so we can all understand what the process is, and adjustments to procurement 00:35:39.060 --> 00:35:43.220 SPEAKER_17: process in response to Director Kerr's question about cost. 00:35:43.220 --> 00:35:45.140 Unknown: I'm going to flip that question. 00:35:46.019 --> 00:35:50.099 SPEAKER_17: This is actually cost savings because when you get involved in a bad project that falls 00:35:50.099 --> 00:35:54.339 SPEAKER_17: out of your portfolio because it's not viable for a variety of reasons that could have been 00:35:54.339 --> 00:35:57.819 SPEAKER_17: caught by these processes, that's expensive. 00:35:57.819 --> 00:36:02.920 SPEAKER_17: You've lost time, you've lost staff money, and your portfolio's been blown up. 00:36:02.920 --> 00:36:07.500 SPEAKER_17: So this is a cost savings work of getting good projects up front so that you have certainty 00:36:07.500 --> 00:36:11.219 SPEAKER_17: in your process so that you can build your portfolio. 00:36:11.219 --> 00:36:14.579 SPEAKER_17: So for all of those things, we think that this has begun a good process and we've gotten 00:36:14.579 --> 00:36:16.340 SPEAKER_17: some good products out of it. 00:36:16.340 --> 00:36:21.460 SPEAKER_17: We do have a couple items, because we always do, that still need work. 00:36:21.460 --> 00:36:24.059 SPEAKER_17: Emily spoke to one of them, which is the 30 days thing. 00:36:24.059 --> 00:36:29.259 SPEAKER_17: And to be absolutely clear, we're not asking for the whole financial package to be released. 00:36:29.259 --> 00:36:36.779 SPEAKER_17: We're asking for location, technology, basic project information to be posted 30 days in 00:36:36.779 --> 00:36:37.779 SPEAKER_17: advance. 00:36:37.779 --> 00:36:42.500 SPEAKER_17: You know, within the principles, there is a standard requiring the developer doing community 00:36:42.500 --> 00:36:43.500 SPEAKER_17: engagement. 00:36:43.500 --> 00:36:45.860 SPEAKER_17: It's not material that they would be engaging with the community. 00:36:45.860 --> 00:36:49.179 SPEAKER_17: I was like telling them where the project is and how many megawatts of solar or whatever 00:36:49.179 --> 00:36:50.179 SPEAKER_17: it is. 00:36:50.179 --> 00:36:52.619 SPEAKER_17: So it's not like super squirrel secret stuff. 00:36:52.619 --> 00:36:57.300 SPEAKER_17: This is stuff that should be easily available and is probably likely available in the very 00:36:57.300 --> 00:36:59.139 SPEAKER_17: immediate community. 00:36:59.139 --> 00:37:03.219 SPEAKER_17: We just want it to be on the SMUD website in advance, the board means that there's better 00:37:03.219 --> 00:37:06.079 SPEAKER_17: informed decision making there. 00:37:06.079 --> 00:37:10.840 SPEAKER_17: The other item that we've asked for is on community engagement. 00:37:10.840 --> 00:37:14.680 SPEAKER_17: The principles direct that responsibility to the developer. 00:37:14.680 --> 00:37:20.120 SPEAKER_17: We argue that SMUD has a role in that as well, to at a minimum verify the information that 00:37:20.120 --> 00:37:27.039 SPEAKER_17: you're getting from the developer as to the host community's concerns and input on a project 00:37:27.039 --> 00:37:29.079 Unknown: and not rely on that. 00:37:29.079 --> 00:37:33.260 SPEAKER_17: You can't advocate your responsibility to have all the information you need to make 00:37:33.260 --> 00:37:39.600 SPEAKER_17: a decision on a project to the developer who may have conflicts of interest. 00:37:39.619 --> 00:37:43.319 SPEAKER_17: And unfortunately one of the best examples of that is your letter of termination to Desiree 00:37:43.319 --> 00:37:49.559 SPEAKER_17: on Coyote where you state that it was represented by the seller that there was buy-in from the 00:37:49.559 --> 00:37:55.920 SPEAKER_17: key stakeholders and yet the key stakeholders were the litigants on the project. 00:37:55.920 --> 00:38:01.319 SPEAKER_17: So it's an easy thing to avoid and we ask that you work further on trying to develop 00:38:01.319 --> 00:38:05.179 SPEAKER_17: a process so that you can also check in with the community to make sure that you know what 00:38:05.179 --> 00:38:07.159 SPEAKER_17: you're getting involved in. 00:38:07.159 --> 00:38:10.319 SPEAKER_17: But again thank you for the time and effort that everyone put into it. 00:38:10.319 --> 00:38:11.319 SPEAKER_17: We appreciate it. 00:38:11.319 --> 00:38:16.679 SPEAKER_17: We hope that this is going to be an iterative process both through the technical environmental 00:38:16.679 --> 00:38:21.879 SPEAKER_17: form process but also in working with your communities early on so that you're getting 00:38:21.879 --> 00:38:23.399 SPEAKER_17: the information that you need. 00:38:23.399 --> 00:38:29.239 SPEAKER_17: You know there's a significant difference between engagement to seek meaningful input 00:38:29.239 --> 00:38:33.920 SPEAKER_17: and that kind of conversation versus just doing a PR event. 00:38:33.920 --> 00:38:37.680 SPEAKER_17: Everybody hates the PR event with the posters and the cookies. 00:38:37.680 --> 00:38:39.480 SPEAKER_17: Don't do that to the communities. 00:38:39.480 --> 00:38:42.760 SPEAKER_17: Come back and have those kind of conversations where you can really hear what they think. 00:38:42.760 --> 00:38:46.400 Unknown: And with that I see I've got a couple minutes, almost a minute left, I'm happy to answer 00:38:46.400 --> 00:38:48.360 SPEAKER_17: any questions that you have. 00:38:48.360 --> 00:38:51.960 SPEAKER_17: And again thank you. 00:38:51.960 --> 00:38:53.519 SPEAKER_15: Can we allow that? 00:38:53.519 --> 00:38:59.320 SPEAKER_15: I'm curious the 30-day window. 00:38:59.320 --> 00:39:06.240 SPEAKER_15: You know I'm guessing developers are not going to tell you where they want to do this 00:39:06.240 --> 00:39:12.720 SPEAKER_15: until they have you know a signed deal with SMUD. 00:39:12.720 --> 00:39:14.760 SPEAKER_15: Somebody else could buy the land. 00:39:14.760 --> 00:39:17.600 SPEAKER_15: I mean what do you do with those concerns? 00:39:17.600 --> 00:39:22.840 SPEAKER_17: Well as I read the principles that we've been working on is the developer's responsibility 00:39:22.840 --> 00:39:28.320 SPEAKER_17: to do that in community engagement as part of bringing a project to SMUD for consideration 00:39:28.320 --> 00:39:30.600 SPEAKER_17: of a PPA. 00:39:30.600 --> 00:39:36.760 SPEAKER_17: So that's already occurring and should be known within the community before you enter 00:39:36.760 --> 00:39:38.840 SPEAKER_17: into a PPA. 00:39:38.840 --> 00:39:45.000 Unknown: Kate, anybody else have any questions for Kate? 00:39:45.000 --> 00:39:49.039 SPEAKER_15: Seeing none, thank you very much for being here tonight. 00:39:49.039 --> 00:39:55.080 SPEAKER_15: The next person that we have is Shawn Wirth from the Sierra Club. 00:39:55.080 --> 00:39:58.000 Unknown: Good evening. 00:39:58.000 --> 00:40:05.880 SPEAKER_08: I want to take the opportunity to thank the leadership on the board, particularly directors 00:40:05.880 --> 00:40:11.639 SPEAKER_08: Tamayo, Sam Byrne and Herber for having the ad hoc committee directing staff to do this. 00:40:11.639 --> 00:40:17.360 SPEAKER_08: I want to thank staff, particularly Ammon, Kathleen, Emily, Amanda, Chad for tolerating 00:40:17.360 --> 00:40:18.360 SPEAKER_08: all this. 00:40:18.360 --> 00:40:23.480 Unknown: Definitely had a Chad's wheelhouse but he was very gracious at listening to considerations 00:40:23.480 --> 00:40:25.719 SPEAKER_08: that would make his job more difficult. 00:40:25.759 --> 00:40:35.239 SPEAKER_08: And I just want to present a contrary look at the cost and time issue here. 00:40:35.239 --> 00:40:37.839 SPEAKER_08: This whole thing was about due diligence. 00:40:37.839 --> 00:40:42.599 SPEAKER_08: It was about taking all of these processes and doing it as effectively as possible to 00:40:42.599 --> 00:40:47.119 SPEAKER_08: find those early pitfalls to avoid expensive mistakes in the future. 00:40:47.119 --> 00:40:51.599 SPEAKER_08: There was no effort at all to increase the complexity for the purposes of drawing out 00:40:51.599 --> 00:40:53.279 SPEAKER_08: the timeline or creating more expense. 00:40:53.279 --> 00:40:54.279 SPEAKER_08: It was quite the opposite. 00:40:54.800 --> 00:40:58.320 SPEAKER_08: It was to simplify it, find those problems early on. 00:40:58.320 --> 00:41:01.400 SPEAKER_08: I think that the work product does a really good job of that. 00:41:01.400 --> 00:41:05.680 SPEAKER_08: I also think the work product is part of a longer iterative process. 00:41:05.680 --> 00:41:08.920 SPEAKER_08: We did our very best effort, staff did their very best effort. 00:41:08.920 --> 00:41:09.920 SPEAKER_08: Things can change. 00:41:09.920 --> 00:41:16.040 SPEAKER_08: Things like AI centers could go in that might require a new look at some of the processes. 00:41:16.040 --> 00:41:20.120 SPEAKER_08: We want to continue that dialogue and continue trying to do that in the future. 00:41:20.120 --> 00:41:21.880 SPEAKER_08: So I'm mostly here to thank you. 00:41:21.880 --> 00:41:26.119 SPEAKER_08: I also agree with Kate that there are two adjustments that would be very helpful. 00:41:26.119 --> 00:41:30.000 SPEAKER_08: That 30-day additional time to look at the... 00:41:30.000 --> 00:41:31.440 SPEAKER_08: You need time to look at stuff. 00:41:31.440 --> 00:41:33.400 SPEAKER_08: This is right before it's going to be approved. 00:41:33.400 --> 00:41:34.400 SPEAKER_08: Another due diligence thing. 00:41:34.400 --> 00:41:39.079 SPEAKER_08: And in terms of outreach to the community, you've got to trust but verify. 00:41:39.079 --> 00:41:44.519 SPEAKER_08: I mean, I was in real estate for my professional life and I trusted everybody, but I verified 00:41:44.519 --> 00:41:45.519 SPEAKER_08: everything. 00:41:45.519 --> 00:41:46.519 Unknown: Thank you. 00:41:46.519 --> 00:41:49.920 SPEAKER_08: Thank you very much. 00:41:49.920 --> 00:41:54.559 SPEAKER_15: Next up we have David Wright with 350 Sacramento. 00:41:54.559 --> 00:41:56.519 Unknown: Hi, everybody. 00:41:56.519 --> 00:42:00.240 Unknown: I'm David Wright. 00:42:00.240 --> 00:42:08.000 SPEAKER_18: And again, I want to echo the thanks that the previous two people have expressed to 00:42:08.000 --> 00:42:13.440 SPEAKER_18: SMUD as staff and for the work together with the environmental groups. 00:42:14.440 --> 00:42:22.639 SPEAKER_18: 350 Sacramento's hope is that this will result in speedy and secure procurement and development 00:42:22.639 --> 00:42:29.720 SPEAKER_18: of clean renewable energy and avoid any more coyote creeks. 00:42:29.720 --> 00:42:37.360 SPEAKER_18: I do think that what's been presented here tonight is a little bit incomplete. 00:42:37.360 --> 00:42:46.880 SPEAKER_18: We would definitely endorse greater public transparency about projects before, you know, 00:42:46.880 --> 00:42:53.720 SPEAKER_18: four days before the meeting when they're going to be reviewed in public as it would 00:42:53.720 --> 00:42:57.559 SPEAKER_18: normally happen now. 00:42:57.559 --> 00:43:04.519 SPEAKER_18: And if the developer doesn't have their ducks in a row, 30 days in advance of that action 00:43:04.519 --> 00:43:12.719 SPEAKER_18: date, that doesn't seem like they've done their work properly. 00:43:12.719 --> 00:43:25.800 SPEAKER_18: So I'm going to ask that you tonight and the board on next Thursday defer action on SD7, 00:43:25.800 --> 00:43:37.000 SPEAKER_18: the report on SD7 until October until we have some things in writing about that transparency. 00:43:37.000 --> 00:43:45.240 SPEAKER_18: And I also note that the principles document, the PREP-D, was not included in the public 00:43:45.240 --> 00:43:48.200 SPEAKER_18: meeting materials tonight. 00:43:48.199 --> 00:43:56.039 SPEAKER_18: So I assume that the members of the committee were able to see that, but the public has 00:43:56.039 --> 00:43:57.960 SPEAKER_18: not been able to see that. 00:43:57.960 --> 00:44:05.839 SPEAKER_18: And so in the interests of full public information and transparency and good public process, 00:44:05.839 --> 00:44:11.439 SPEAKER_18: I would recommend deferring action on SD7 until October. 00:44:12.440 --> 00:44:20.039 SPEAKER_18: Lastly, I would like to see a meeting scheduled on NDA's non-disclosure agreements. 00:44:20.039 --> 00:44:24.320 SPEAKER_18: I feel like these things have gone way too far. 00:44:24.320 --> 00:44:31.480 SPEAKER_18: There needs to be more attention to the public's right to information. 00:44:31.480 --> 00:44:36.639 SPEAKER_18: You are a public agency and you're owned by your customers. 00:44:36.639 --> 00:44:40.480 SPEAKER_18: And it's your first responsibilities to them. 00:44:40.800 --> 00:44:42.519 Unknown: Okay, you have to do good business. 00:44:42.519 --> 00:44:48.079 SPEAKER_18: And there may be some things that are valid to withhold for a period of time in the interests 00:44:48.079 --> 00:44:51.639 SPEAKER_18: of facilitating business. 00:44:51.639 --> 00:44:58.639 SPEAKER_18: But I think the other side of that balance needs to be weighed more clearly and more 00:44:58.639 --> 00:44:59.639 SPEAKER_18: publicly. 00:44:59.639 --> 00:45:03.880 Unknown: There have to be limits on how far these NDAs go. 00:45:03.880 --> 00:45:05.719 SPEAKER_18: And I'd like to see a meeting about that. 00:45:05.719 --> 00:45:06.719 SPEAKER_18: Thank you. 00:45:07.599 --> 00:45:11.279 SPEAKER_15: Thank you for your comments, David. 00:45:11.279 --> 00:45:17.359 SPEAKER_15: Next up is Luce Lim from the Environmental Council of Sacramento. 00:45:17.359 --> 00:45:18.359 SPEAKER_15: Welcome. 00:45:18.359 --> 00:45:19.359 Unknown: Thank you. 00:45:19.359 --> 00:45:20.359 Unknown: Good evening, everyone. 00:45:20.359 --> 00:45:22.119 SPEAKER_02: My name is Luce Lim. 00:45:22.119 --> 00:45:25.399 SPEAKER_02: I'm the policy staff for ECOS. 00:45:25.399 --> 00:45:29.639 SPEAKER_02: I want to echo my colleagues here put it really well. 00:45:29.639 --> 00:45:35.159 SPEAKER_02: But formally on behalf of ECOS, I'd like to thank you all for the work that you've all 00:45:35.159 --> 00:45:40.879 SPEAKER_02: committed to and really carried out over the past few months and are committing to 00:45:40.879 --> 00:45:46.279 SPEAKER_02: carrying forward to continue engaging with the environmental community. 00:45:46.279 --> 00:45:52.839 SPEAKER_02: And just really emphasize how important early and effective engagement and incorporation 00:45:52.839 --> 00:45:58.199 SPEAKER_02: of public input to the degree that you can publish information. 00:45:58.199 --> 00:45:59.719 SPEAKER_02: It's just so important. 00:45:59.719 --> 00:46:01.699 SPEAKER_02: It's what gains trust with the community. 00:46:01.699 --> 00:46:07.379 SPEAKER_02: And it's really what's necessary to avoid significant opposition and delays further 00:46:07.379 --> 00:46:08.379 SPEAKER_02: down the process. 00:46:08.379 --> 00:46:10.339 SPEAKER_02: So thank you so much. 00:46:10.339 --> 00:46:13.460 SPEAKER_15: Thank you for your comments, Luce Lim. 00:46:13.460 --> 00:46:19.179 SPEAKER_15: Next up is Tim Washburn with Third Act Sacramento. 00:46:19.179 --> 00:46:21.659 SPEAKER_15: Welcome. 00:46:21.659 --> 00:46:22.899 SPEAKER_07: Thank you, board members. 00:46:22.899 --> 00:46:30.500 SPEAKER_07: And I, too, appreciate the support that this board and staff have given us to go through 00:46:30.500 --> 00:46:32.460 SPEAKER_07: this process. 00:46:32.460 --> 00:46:42.099 SPEAKER_07: I want to preface my specific comment on the policy with some observations about the emerging 00:46:42.099 --> 00:46:50.179 SPEAKER_07: local, state, and national debate about the advancement of large-scale data centers and 00:46:50.179 --> 00:46:51.179 SPEAKER_07: artificial intelligence. 00:46:51.179 --> 00:46:56.460 SPEAKER_07: And then I'll swing back to say how I think is relevant to this discussion. 00:46:56.460 --> 00:47:03.500 SPEAKER_07: So first of all, I think we need to slow down and take time to consider the tradeoffs 00:47:03.500 --> 00:47:11.460 SPEAKER_07: that are involved in large load, as you call it, or the mega-scale data centers and the 00:47:11.460 --> 00:47:17.139 SPEAKER_07: rapid advancement of the frontiers of artificial intelligence that are clearly causing a lot 00:47:17.139 --> 00:47:20.619 SPEAKER_07: of anxiety for all of us. 00:47:20.619 --> 00:47:25.360 SPEAKER_07: Toward that end, slowing down, my organization has submitted a letter to the B. We expect 00:47:25.360 --> 00:47:30.920 SPEAKER_07: it to be published on Sunday, calling upon Sac County and its incorporated cities to 00:47:30.920 --> 00:47:40.320 SPEAKER_07: follow the lead of Seattle and adopt a 12-month pause in permitting large-scale data center 00:47:40.320 --> 00:47:45.039 SPEAKER_07: projects in order to give us time to consider these tradeoffs. 00:47:45.039 --> 00:47:50.280 SPEAKER_07: At the local level, it means time to develop best management practices on how we're going 00:47:50.280 --> 00:47:55.720 SPEAKER_07: to manage the adverse environmental effects of these kind of projects. 00:47:55.720 --> 00:48:00.840 SPEAKER_07: For SMUD, it means taking time for the large load policy to be developed to ensure that 00:48:00.840 --> 00:48:07.440 SPEAKER_07: ratepayers don't bear the cost and liability of these kinds of projects, and equally importantly, 00:48:07.440 --> 00:48:13.240 SPEAKER_07: giving you time to complete your integrated resource plan to tell us all how could these 00:48:13.240 --> 00:48:20.120 SPEAKER_07: large load projects affect, for example, our effort to achieve carbon neutrality. 00:48:20.440 --> 00:48:27.400 SPEAKER_07: How much large load development can we accommodate before we have to reset our carbon-neutral 00:48:27.400 --> 00:48:28.719 SPEAKER_07: goals? 00:48:28.719 --> 00:48:35.199 SPEAKER_07: And then also, it'll give us time to see how actors at the state and federal level grapple 00:48:35.199 --> 00:48:41.000 SPEAKER_07: with the guardrails we clearly need to manage these developments. 00:48:41.000 --> 00:48:43.639 SPEAKER_07: So back to the policy. 00:48:43.639 --> 00:48:49.480 SPEAKER_07: We've developed a screening tool, and we've talked about having an advisory group, which 00:48:49.480 --> 00:48:57.119 SPEAKER_07: group I believe would have significant competence in taking that screening tool and looking 00:48:57.119 --> 00:49:03.360 SPEAKER_07: at the landscape in the county and determining what is our actual capacity for accommodating 00:49:03.360 --> 00:49:05.119 SPEAKER_07: solar array here. 00:49:05.119 --> 00:49:09.480 SPEAKER_07: Because that's going to influence what you tell us about how we're going to accommodate 00:49:09.480 --> 00:49:13.039 SPEAKER_07: the large load and still meet our carbon neutrality goals. 00:49:13.039 --> 00:49:19.119 SPEAKER_07: And I would like to see that information incorporated into the IRP, a realistic estimate of what 00:49:19.119 --> 00:49:24.559 SPEAKER_07: we think our capacity is for solar array development and procurement in our service 00:49:24.559 --> 00:49:25.559 SPEAKER_07: area. 00:49:25.559 --> 00:49:29.960 SPEAKER_07: And I think the advisory group that's being suggested here has the competence and the 00:49:29.960 --> 00:49:34.799 SPEAKER_07: knowledge in terms of mapping the landscape of the county to help determine what that 00:49:34.799 --> 00:49:39.880 SPEAKER_07: capacity is and communicate it to the land use agencies as they then have to grapple 00:49:39.880 --> 00:49:45.839 SPEAKER_07: with the trade-off of moving forward with large load and meeting carbon neutrality. 00:49:45.839 --> 00:49:46.839 SPEAKER_07: Thank you. 00:49:47.320 --> 00:49:49.440 SPEAKER_15: Thank you, Mr. Washburn. 00:49:49.440 --> 00:49:56.440 SPEAKER_15: Next up is Gabriel Katani with Save Coyote Creek Coalition. 00:49:56.440 --> 00:49:57.440 Unknown: Hello. 00:49:57.440 --> 00:49:59.320 Unknown: I'm Gabrielle. 00:49:59.320 --> 00:50:01.280 SPEAKER_01: Good evening. 00:50:01.280 --> 00:50:06.960 SPEAKER_01: First of all, thank you so much for the opportunity to comment. 00:50:06.960 --> 00:50:14.559 SPEAKER_01: And I want to start by thanking SMUD for the work that you have done to revise your policies 00:50:14.559 --> 00:50:19.159 SPEAKER_01: and make stronger environmental protections. 00:50:19.159 --> 00:50:22.480 SPEAKER_01: I know these changes didn't happen overnight. 00:50:22.480 --> 00:50:29.679 SPEAKER_01: And I especially appreciate your willingness that we've seen from SMUD staff and leadership 00:50:29.679 --> 00:50:37.000 SPEAKER_01: to listen to the concerns of the community and work towards meaningful change. 00:50:37.000 --> 00:50:43.360 Unknown: I'm here because of my experience with the Save Coyote Creek campaign. 00:50:43.360 --> 00:50:49.079 SPEAKER_01: And I do think that there are two additional things that can make these policies even stronger. 00:50:49.079 --> 00:50:54.280 SPEAKER_01: And I am glad to have already heard from public comments and even from your own staff that 00:50:54.280 --> 00:50:55.800 SPEAKER_01: these are already on your mind. 00:50:55.800 --> 00:50:58.000 SPEAKER_01: So that's great. 00:50:58.000 --> 00:51:06.160 SPEAKER_01: First I would like to encourage SMUD to build that 30-day public comment policy to build 00:51:06.160 --> 00:51:12.680 SPEAKER_01: that into the process for proposed projects at a very early stage. 00:51:12.679 --> 00:51:16.759 SPEAKER_01: This isn't really like asking the public to approve a reject a project. 00:51:16.759 --> 00:51:22.319 SPEAKER_01: It's simply creating an opportunity for people to see what is being proposed while there 00:51:22.319 --> 00:51:28.480 SPEAKER_01: is still time to identify any problems or community concerns and hopefully provide useful 00:51:28.480 --> 00:51:33.039 SPEAKER_01: information before any major decisions have been made. 00:51:33.039 --> 00:51:42.559 Unknown: Second, I would like to encourage SMUD to make meaningful community outreach a priority. 00:51:42.559 --> 00:51:49.360 SPEAKER_01: And importantly, I think that outreach should be conducted by SMUD rather than the project 00:51:49.360 --> 00:51:54.199 SPEAKER_01: developer, or they should at least be heavily involved. 00:51:54.199 --> 00:52:00.400 SPEAKER_01: Developers have an understandable interest in seeing their project move forward. 00:52:00.400 --> 00:52:05.679 SPEAKER_01: So they shouldn't be the sole party responsible for engaging communities. 00:52:05.679 --> 00:52:11.079 SPEAKER_01: I think SMUD is in a much better position to serve as a neutral conveyor and making 00:52:11.079 --> 00:52:16.199 SPEAKER_01: sure that communities are actually informed and create genuine opportunities for people 00:52:16.199 --> 00:52:20.239 SPEAKER_01: to ask questions and raise concerns. 00:52:20.239 --> 00:52:25.840 SPEAKER_01: I believe that ultimately this ultimately benefits SMUD as much as it benefits the communities 00:52:25.840 --> 00:52:31.679 SPEAKER_01: because people are much more likely to understand and participate constructively in a process 00:52:31.679 --> 00:52:34.679 SPEAKER_01: that they feel like they've been included in. 00:52:34.679 --> 00:52:40.920 SPEAKER_01: That's really what we learned from Coyote Creek, a project that raised significant concerns 00:52:40.920 --> 00:52:46.680 SPEAKER_01: about the loss of intact ecosystems moved forward without any kind of early community 00:52:46.680 --> 00:52:49.240 SPEAKER_01: engagement. 00:52:49.240 --> 00:52:55.159 SPEAKER_01: We really appreciate that SMUD has listened since then and is willing to work with our 00:52:55.159 --> 00:52:57.320 SPEAKER_01: coalition to improve their policies. 00:52:57.320 --> 00:53:00.159 SPEAKER_01: So thank you so much. 00:53:00.159 --> 00:53:03.840 SPEAKER_15: Thank you for your comments. 00:53:03.840 --> 00:53:09.920 SPEAKER_15: General Counsel, do we have any virtual attendees who want to speak? 00:53:10.920 --> 00:53:12.400 Unknown: Okay. 00:53:12.400 --> 00:53:15.920 SPEAKER_15: Now we have the opportunity for board members to speak. 00:53:15.920 --> 00:53:20.280 SPEAKER_15: We'll start first with Director Fishman, then Director Sanborn. 00:53:20.280 --> 00:53:23.400 Unknown: I do have a question for you. 00:53:23.400 --> 00:53:27.680 SPEAKER_12: I'm wondering if you can bring up your presentation again and go to slide 15. 00:53:27.680 --> 00:53:34.159 SPEAKER_12: It sort of shows a – it's not really a timeline, but it's the process. 00:53:34.159 --> 00:53:37.960 SPEAKER_12: That one. 00:53:38.000 --> 00:53:48.639 SPEAKER_12: At what point in that process would a potential project go public? 00:53:48.639 --> 00:53:57.519 SPEAKER_00: We see and receive PPAs on a variety of projects in a variety of stages of project development. 00:53:57.519 --> 00:54:04.519 SPEAKER_00: Meaning this is a new project, a green field project. 00:54:10.960 --> 00:54:18.199 SPEAKER_00: And this also depends on the county or location in which the project is located. 00:54:18.199 --> 00:54:25.880 SPEAKER_00: In some cases, counties require a PPA to be signed before they'll start and work through 00:54:25.880 --> 00:54:28.200 SPEAKER_00: the environmental review process. 00:54:28.200 --> 00:54:29.200 SPEAKER_12: Okay. 00:54:29.200 --> 00:54:34.320 SPEAKER_12: So this would not happen necessarily concurrent with the environmental planning with the Land 00:54:34.320 --> 00:54:35.320 SPEAKER_12: Use Authority, correct? 00:54:35.320 --> 00:54:36.320 SPEAKER_12: That's correct. 00:54:36.320 --> 00:54:41.240 SPEAKER_12: This would be before they get to the CEQA process. 00:54:41.240 --> 00:54:45.760 SPEAKER_12: And I understand that the timing of things can change dramatically, right? 00:54:45.760 --> 00:54:47.559 SPEAKER_12: There's no set times for these. 00:54:47.559 --> 00:54:51.400 SPEAKER_12: But roughly how long do you think that process would take? 00:54:51.400 --> 00:54:58.400 SPEAKER_12: From the time the developer submits a proposal to the time that it would come to the board? 00:54:58.400 --> 00:55:05.400 Unknown: I'm going to phone a friend and ask Chad to speak on behalf of the contracting process. 00:55:08.720 --> 00:55:11.599 SPEAKER_11: Chad Adair manages the energy contracts team. 00:55:11.599 --> 00:55:15.559 SPEAKER_11: So it depends is the answer. 00:55:15.559 --> 00:55:20.639 SPEAKER_11: Because as Emily stated, projects can come in in a number of different ways. 00:55:20.639 --> 00:55:27.000 SPEAKER_11: This process, depending on the complexity, can take anywhere from, I would say, six months 00:55:27.000 --> 00:55:32.960 SPEAKER_11: as an ideal if you have just a rapid everything, all the ducks are in a row, just an awesome, 00:55:32.960 --> 00:55:34.440 SPEAKER_11: perfect process. 00:55:34.440 --> 00:55:37.759 SPEAKER_11: It can take two years to negotiate a deal. 00:55:37.759 --> 00:55:40.199 SPEAKER_11: Depends on where it is in the development life cycle. 00:55:40.199 --> 00:55:42.819 SPEAKER_11: So it just depends on the project. 00:55:42.819 --> 00:55:48.000 SPEAKER_11: As far as the publicly available, you know, when it goes public, that also depends. 00:55:48.039 --> 00:55:53.559 SPEAKER_11: As Emily was stating, it depends on the authority having jurisdiction, whether CEQA has started. 00:55:53.559 --> 00:55:56.320 SPEAKER_11: If CEQA has started, then the project is public. 00:55:56.320 --> 00:55:56.719 SPEAKER_11: Right? 00:55:56.719 --> 00:56:02.599 SPEAKER_11: So if we then by the time we get to the PPA approval process, CEQA is out there, the public 00:56:02.599 --> 00:56:05.960 SPEAKER_11: knows about it, there's been a ton of different engagement. 00:56:05.960 --> 00:56:12.960 SPEAKER_11: Going forward, I don't see how except maybe in some very rare instances where we can be 00:56:13.960 --> 00:56:20.960 SPEAKER_11: in a position to present a PPA to you in the future with these principles where it hasn't 00:56:21.240 --> 00:56:26.340 SPEAKER_11: at least started the CEQA process if it's a project in California. 00:56:26.340 --> 00:56:30.039 SPEAKER_11: We do sometimes procure projects that are outside of California so it will be a different 00:56:30.039 --> 00:56:36.079 SPEAKER_11: states CEQA type process or say the federal government's NEPA process. 00:56:36.079 --> 00:56:37.320 SPEAKER_11: So it depends. 00:56:37.320 --> 00:56:39.699 SPEAKER_11: But there's different ways projects can go public. 00:56:39.859 --> 00:56:41.980 SPEAKER_11: There's an interconnection queue. 00:56:41.980 --> 00:56:46.779 SPEAKER_11: Sometimes there's going to be aspects of the project that are already public. 00:56:46.779 --> 00:56:50.179 SPEAKER_11: Now they keep some of that information confidential. 00:56:50.179 --> 00:56:56.419 SPEAKER_11: So you kind of have to work to connect some dots to view it in an interconnection queue 00:56:56.419 --> 00:56:57.019 SPEAKER_11: process. 00:56:57.019 --> 00:57:00.619 SPEAKER_11: But that's one of the earliest ways projects will go public is through the interconnection 00:57:00.619 --> 00:57:01.980 SPEAKER_11: queue process. 00:57:01.980 --> 00:57:05.619 SPEAKER_11: But there's different ways projects will become public. 00:57:05.619 --> 00:57:11.259 SPEAKER_11: Because going forward, by the time we get to a board approval for a PPA, most likely 00:57:11.259 --> 00:57:16.259 SPEAKER_11: everything as Ms. Kelly mentioned earlier, most everything is going to be public by that 00:57:16.259 --> 00:57:16.739 SPEAKER_11: point. 00:57:19.500 --> 00:57:21.460 SPEAKER_12: Thank you. 00:57:21.460 --> 00:57:22.460 SPEAKER_15: Director Sanborn? 00:57:22.460 --> 00:57:25.460 SPEAKER_15: I was going to defer you to it. 00:57:25.460 --> 00:57:29.019 Unknown: Oh, I didn't hear that. 00:57:29.019 --> 00:57:34.019 SPEAKER_16: So you were deferring to me. 00:57:34.900 --> 00:57:43.500 SPEAKER_16: You know, I actually am very supportive of the 30-day window before it actually comes 00:57:43.500 --> 00:57:44.500 SPEAKER_16: to a board meeting. 00:57:44.500 --> 00:57:46.500 SPEAKER_16: And I know I've spoken to staff. 00:57:46.500 --> 00:57:51.340 SPEAKER_16: It's really working out sort of the details on what makes sense. 00:57:51.340 --> 00:57:59.420 SPEAKER_16: I think that what Kate has proposed, a very simple set of information about, okay, where 00:57:59.420 --> 00:58:00.420 SPEAKER_16: is it? 00:58:00.420 --> 00:58:01.420 SPEAKER_16: What's the technology? 00:58:01.420 --> 00:58:03.460 SPEAKER_16: That sort of thing. 00:58:03.460 --> 00:58:09.579 SPEAKER_16: Those are all things that we would expect would already have been shared with the community. 00:58:09.579 --> 00:58:14.900 SPEAKER_16: So I don't see that that would be any sort of impediment. 00:58:14.900 --> 00:58:19.740 SPEAKER_16: No, nothing that's covered by an NDA. 00:58:19.740 --> 00:58:29.220 SPEAKER_16: It's not the proprietary stuff that they want to protect. 00:58:29.220 --> 00:58:32.820 SPEAKER_16: So I'm very supportive of that. 00:58:32.820 --> 00:58:37.300 SPEAKER_16: And I know that you're still working on, okay, how does that get worked out? 00:58:37.300 --> 00:58:42.860 SPEAKER_16: So that's one of the expectations that we'll have is that as this moves forward, that that 00:58:42.860 --> 00:58:48.140 SPEAKER_16: will be incorporated in our procedure. 00:58:48.140 --> 00:58:57.860 SPEAKER_16: And then as far as the community engagement, I also agree that we need to be able to evaluate 00:58:57.860 --> 00:58:59.380 SPEAKER_16: how well they're doing. 00:58:59.380 --> 00:59:05.579 SPEAKER_16: I don't necessarily think that we should be responsible for doing the community engagement. 00:59:05.579 --> 00:59:14.980 SPEAKER_16: But I do, will be held responsible for, you know, as an organization, if it's ineffective 00:59:14.980 --> 00:59:21.740 SPEAKER_16: community engagement, that's going to be pretty evident by the time it gets to the board. 00:59:21.739 --> 00:59:30.939 SPEAKER_16: And the implementation of this will be judged, at least by me, like, okay, if they didn't 00:59:30.939 --> 00:59:41.899 SPEAKER_16: do good community engagement, and then that comes and bites us once it gets to the board 00:59:41.899 --> 00:59:50.659 SPEAKER_16: or like right at that 30 day, if it's very clear that they didn't do good community engagement, 00:59:50.659 --> 00:59:54.579 SPEAKER_16: that would not meet my expectations of how this is supposed to work. 00:59:54.579 --> 01:00:02.019 SPEAKER_16: So I'm hoping that we have a mechanism to be maybe participating in some of their community 01:00:02.019 --> 01:00:07.819 SPEAKER_16: engagement, but at least also evaluating are they really doing it. 01:00:07.819 --> 01:00:16.500 SPEAKER_16: So I don't expect that we'd take full ownership of their effort to do that. 01:00:17.500 --> 01:00:27.940 Unknown: The result of it is, I think, what we're going to be holding staff responsible for at the 01:00:27.940 --> 01:00:30.980 SPEAKER_16: end if it wasn't good enough. 01:00:30.980 --> 01:00:34.539 SPEAKER_16: So that's my expectation. 01:00:34.539 --> 01:00:45.659 SPEAKER_16: One of the comments was about the integrating the large load considerations into our IRP. 01:00:45.659 --> 01:00:54.019 SPEAKER_16: And I just wanted to point out that we've delayed a discussion, sort of a separate discussion 01:00:54.019 --> 01:01:01.899 SPEAKER_16: about our large load policy, and it's already been recognized by our CEO that we really 01:01:01.899 --> 01:01:05.420 SPEAKER_16: needed to do that in the context of the IRP. 01:01:05.420 --> 01:01:13.059 SPEAKER_16: So that is something that we're already planning to do because it just makes sense because 01:01:13.059 --> 01:01:19.900 SPEAKER_16: we can't really have a realistic IRP unless we're thinking about how those large loads 01:01:19.900 --> 01:01:26.699 SPEAKER_16: are going to affect us. 01:01:26.699 --> 01:01:31.820 SPEAKER_16: I will say, though, that I am very pleased that we've made a lot of progress. 01:01:31.820 --> 01:01:39.340 SPEAKER_16: I think that this is a much better framework for us to be evaluating the impacts of these 01:01:39.340 --> 01:01:41.900 SPEAKER_16: projects early on in the process. 01:01:41.900 --> 01:01:48.940 SPEAKER_16: And I think that we're going to end up with a much smoother process overall because the 01:01:48.940 --> 01:01:55.500 SPEAKER_16: expectations and the requirements that we're placing on the developers that want to do 01:01:55.500 --> 01:01:56.539 SPEAKER_16: business with us. 01:01:56.539 --> 01:01:58.220 SPEAKER_16: So I want to thank staff. 01:01:58.220 --> 01:02:07.300 SPEAKER_16: I want to thank the folks from the environmental community that participated, put a lot of 01:02:07.300 --> 01:02:13.420 SPEAKER_16: time and effort and thought and thank you for your contributions on what makes sense. 01:02:13.420 --> 01:02:22.140 SPEAKER_16: So anyway, thanks and also thanks to Director Herber and Director Sanborn for participating 01:02:22.140 --> 01:02:23.140 SPEAKER_16: in the ad hoc. 01:02:23.140 --> 01:02:27.620 SPEAKER_16: So thank you very much to everybody who helped bring this forward. 01:02:27.620 --> 01:02:30.340 SPEAKER_16: I'm not supportive of delaying this. 01:02:30.340 --> 01:02:36.620 SPEAKER_16: I think we're better off just having this as a policy with the understanding that there's 01:02:36.619 --> 01:02:42.420 SPEAKER_16: certain things that we expect to be incorporated in how this gets implemented. 01:02:42.420 --> 01:02:43.579 SPEAKER_16: Thank you. 01:02:43.579 --> 01:02:48.099 SPEAKER_15: Thank you, Mr. President, Director Fishman and then Director Sanborn. 01:02:48.099 --> 01:02:54.940 Unknown: Emily, I'm just having just a moment here, spitballing some thoughts. 01:02:54.940 --> 01:02:59.900 SPEAKER_12: So that's when I get dangerous, so reel me in. 01:02:59.900 --> 01:03:04.819 SPEAKER_12: I'm a little loathe to tell a developer you have to go public with some information about 01:03:04.820 --> 01:03:08.340 SPEAKER_12: your project now because we're going to come to the board in 30 days or less. 01:03:08.340 --> 01:03:09.340 SPEAKER_12: So you have to. 01:03:09.340 --> 01:03:11.920 SPEAKER_12: I don't want to do that. 01:03:11.920 --> 01:03:16.380 SPEAKER_12: But I am willing to say maybe we ought to tell developers we're not going to go to the 01:03:16.380 --> 01:03:21.940 SPEAKER_12: board until 30 days after you start the CEQA process. 01:03:21.940 --> 01:03:30.400 SPEAKER_12: So my question for you is, I guess, if most of our projects already are past that threshold, 01:03:30.420 --> 01:03:35.360 SPEAKER_12: is there an issue with either writing that into the policy or at least making that an 01:03:35.360 --> 01:03:39.920 SPEAKER_12: understanding that that's going to be what we do? 01:03:39.920 --> 01:03:40.920 SPEAKER_00: That's a great question. 01:03:40.920 --> 01:03:47.160 SPEAKER_00: So I do want to say, and, Chad, feel free to supplement, as part of the updated PREP, 01:03:47.160 --> 01:03:52.400 SPEAKER_00: we have included a piece that requires the developer have that community engagement. 01:03:52.400 --> 01:03:57.200 SPEAKER_00: So we haven't seen how all of these pieces necessarily line up yet. 01:03:57.199 --> 01:04:00.639 SPEAKER_00: We haven't had a project to run through this from start to finish. 01:04:00.639 --> 01:04:03.699 SPEAKER_00: So some of that will occur. 01:04:03.699 --> 01:04:07.839 SPEAKER_00: And I don't think we need to tie it to the CEQA process because it's already captured 01:04:07.839 --> 01:04:09.639 SPEAKER_00: in the PREP document. 01:04:09.639 --> 01:04:10.639 Unknown: Okay. 01:04:10.639 --> 01:04:11.639 Unknown: Thank you. 01:04:11.639 --> 01:04:12.639 SPEAKER_06: You can go back. 01:04:12.639 --> 01:04:13.639 Unknown: Okay. 01:04:13.639 --> 01:04:14.639 SPEAKER_06: Yes. 01:04:14.639 --> 01:04:15.639 SPEAKER_06: Thank you, Emily. 01:04:15.639 --> 01:04:18.639 SPEAKER_06: And thank you again to the public and to everybody who participated in this. 01:04:18.639 --> 01:04:23.159 SPEAKER_06: We deeply, deeply appreciate that you spent that much time and you've been so thoughtful 01:04:23.159 --> 01:04:26.039 SPEAKER_06: and to our staff, too. 01:04:26.079 --> 01:04:32.800 SPEAKER_06: I do find it ‑‑ I think we did not include this, the principles in the packet because 01:04:32.800 --> 01:04:34.759 SPEAKER_06: they might change over time. 01:04:34.759 --> 01:04:36.960 SPEAKER_06: Is this a plan, do, check, adjust sort of thing? 01:04:36.960 --> 01:04:38.920 SPEAKER_06: Is that why it wasn't in the packet? 01:04:38.920 --> 01:04:39.920 SPEAKER_06: I'm just curious. 01:04:39.920 --> 01:04:43.880 SPEAKER_06: That was raised. 01:04:43.880 --> 01:04:45.960 SPEAKER_00: I think that was just an oversight. 01:04:45.960 --> 01:04:48.480 SPEAKER_00: It's going to ultimately be published at SMUD.org. 01:04:48.480 --> 01:04:50.320 SPEAKER_00: The website is just not ready to take it yet. 01:04:50.320 --> 01:04:55.960 SPEAKER_00: So there's nothing ‑‑ we expect that it's in a final form for all intensive 01:04:55.960 --> 01:05:01.400 SPEAKER_00: purposes and if we were to be making any updates to it, assuming the board approves 01:05:01.400 --> 01:05:05.840 SPEAKER_00: the language to add it to SD7, we would be coming back to the board if we were going 01:05:05.840 --> 01:05:07.720 SPEAKER_00: to change or update that language. 01:05:07.720 --> 01:05:12.559 Unknown: Well, just for me, it just seems a little odd that we're approving a principle. 01:05:12.559 --> 01:05:19.000 SPEAKER_06: Well, we're approving the environmental ‑‑ the changes to the environmental policy. 01:05:19.000 --> 01:05:23.840 SPEAKER_06: But if it's our approval of the document and it's not in the packet, that feels odd for 01:05:23.840 --> 01:05:24.840 SPEAKER_06: the public. 01:05:24.840 --> 01:05:25.840 SPEAKER_06: I understand that comment. 01:05:25.840 --> 01:05:27.280 Unknown: If I can chime in on this. 01:05:27.280 --> 01:05:29.280 SPEAKER_05: Yeah, I thought there was a legal reason. 01:05:29.280 --> 01:05:38.840 SPEAKER_05: If the board wants to go forward with the revisions to SD7, the board packet will be 01:05:38.840 --> 01:05:45.559 SPEAKER_05: posted on Friday and we can include in that the principles as part of the board packet 01:05:45.559 --> 01:05:46.559 SPEAKER_05: for next week. 01:05:46.559 --> 01:05:48.240 Unknown: It would be great. 01:05:48.240 --> 01:05:49.240 SPEAKER_06: Thank you. 01:05:49.240 --> 01:05:51.320 Unknown: Hopefully that helps. 01:05:51.320 --> 01:05:52.320 SPEAKER_06: Thank you. 01:05:53.320 --> 01:05:57.840 Unknown: I just ‑‑ when I first got on the board, I remember hearing about the business council 01:05:57.840 --> 01:05:59.960 SPEAKER_06: and I thought why don't we have an environmental council? 01:05:59.960 --> 01:06:05.360 SPEAKER_06: Why don't we have environmental folks have the same sort of elevated access to our staff 01:06:05.360 --> 01:06:07.519 SPEAKER_06: and input to what we do? 01:06:07.519 --> 01:06:10.880 SPEAKER_06: And I'm sorry we had to go through the situation we did in order to get to this place, but 01:06:10.880 --> 01:06:15.800 SPEAKER_06: I do really strongly believe that this is the right thing to do permanently and that 01:06:15.800 --> 01:06:21.880 SPEAKER_06: it is going to save us money in the long term if we have community engagement early and 01:06:21.880 --> 01:06:26.400 SPEAKER_06: understanding and we have a lot of really smart people in this county and sometimes 01:06:26.400 --> 01:06:27.400 SPEAKER_06: they point out things. 01:06:27.400 --> 01:06:32.680 SPEAKER_06: I know we talked in the ad hoc about how we learned things from the folks. 01:06:32.680 --> 01:06:35.240 SPEAKER_06: I mean, it's just a better way to go. 01:06:35.240 --> 01:06:41.800 SPEAKER_06: So I just strongly encourage us to keep that forum like we do for the business community. 01:06:41.800 --> 01:06:47.800 SPEAKER_06: And increasing our transparency to me is very, very important and I know our new CEO has 01:06:47.800 --> 01:06:49.640 SPEAKER_06: spoken to that as well. 01:06:49.639 --> 01:06:56.519 SPEAKER_06: So I just want to say thank you and I strongly support everything, Director President DeMile 01:06:56.519 --> 01:07:00.239 SPEAKER_06: said and moving it tonight. 01:07:00.239 --> 01:07:02.239 SPEAKER_15: Director Rose. 01:07:02.239 --> 01:07:07.119 Unknown: Yes, thank you. 01:07:07.119 --> 01:07:12.799 SPEAKER_09: I do want to also thank the committee for their time and work on this. 01:07:12.799 --> 01:07:17.199 SPEAKER_09: A lot of this that we're seeing, especially on the slide here, is things that should generally 01:07:17.199 --> 01:07:19.799 SPEAKER_09: already be happening. 01:07:19.799 --> 01:07:24.919 SPEAKER_09: And so I feel like this is sort of our third try to get this right over the last eight 01:07:24.919 --> 01:07:25.919 SPEAKER_09: years. 01:07:25.919 --> 01:07:28.039 SPEAKER_09: So I think it's a step in the right direction. 01:07:28.039 --> 01:07:31.759 SPEAKER_09: I was going to ask what Director Samberg just said, seeing the document. 01:07:31.759 --> 01:07:36.039 SPEAKER_09: So I would definitely like to actually take a look at it and find writing the language 01:07:36.039 --> 01:07:37.039 SPEAKER_09: in. 01:07:37.039 --> 01:07:41.359 SPEAKER_09: I guess my question would be, is this a document that we think the board would review on like 01:07:41.359 --> 01:07:45.960 SPEAKER_09: an annual basis? 01:07:45.960 --> 01:07:52.320 SPEAKER_09: Would it be sort of a staff policy document once it's approved? 01:07:52.320 --> 01:07:58.119 SPEAKER_06: Could be brought back every year with the environmental policy, too. 01:07:58.119 --> 01:08:05.720 Unknown: I guess my overarching thought is some ability to track it, at least for the first year and 01:08:05.720 --> 01:08:07.199 SPEAKER_09: make sure the process is working. 01:08:07.199 --> 01:08:11.079 SPEAKER_09: I have some concern. 01:08:11.079 --> 01:08:15.760 SPEAKER_09: There's a balancing act there between the developer and wanting to lock up land and 01:08:15.760 --> 01:08:20.600 SPEAKER_09: not getting ‑‑ not overpaying for something or having somebody come and buy it out for 01:08:20.600 --> 01:08:23.960 SPEAKER_09: a new and then have a new domain to get it and pay 50% more. 01:08:23.960 --> 01:08:25.960 SPEAKER_09: So just there's a balance there. 01:08:25.960 --> 01:08:32.720 SPEAKER_09: I just want to make sure we're finding that correct balance, though I'm supportive. 01:08:32.720 --> 01:08:39.280 Unknown: So Emily, I don't remember ‑‑ sorry, Lori, CEO. 01:08:39.280 --> 01:08:43.720 SPEAKER_20: I don't remember if we had ‑‑ I know we were going to post it on some of the dog 01:08:43.720 --> 01:08:48.440 SPEAKER_20: and not have it necessarily as part of SD7 language so that way it was easier to update. 01:08:48.440 --> 01:08:52.880 SPEAKER_20: But I think it was something that we said we would review with the board annually. 01:08:52.880 --> 01:08:54.119 SPEAKER_20: That was my understanding as well. 01:08:54.119 --> 01:08:59.159 SPEAKER_00: And I do plan to report out on progress that we make as part of the SD7 report every year. 01:08:59.159 --> 01:09:00.159 SPEAKER_00: Okay. 01:09:00.159 --> 01:09:01.159 SPEAKER_09: That's good. 01:09:01.159 --> 01:09:05.360 SPEAKER_09: The only other couple other things I wanted to mention a question to, I did ‑‑ I agreed 01:09:05.360 --> 01:09:10.640 SPEAKER_09: with ‑‑ on the cost question, this saves costs in the long run. 01:09:10.680 --> 01:09:16.480 SPEAKER_09: I think this is part of business as usual as well, making sure projects are coming through 01:09:16.480 --> 01:09:18.760 SPEAKER_09: that are good. 01:09:18.760 --> 01:09:24.400 SPEAKER_09: I do wonder ‑‑ this definitely has a Sacramento County focus. 01:09:24.400 --> 01:09:29.240 SPEAKER_09: We put plenty of thought into these distant PPAs. 01:09:29.240 --> 01:09:31.480 SPEAKER_09: We have a project in the Mojave. 01:09:31.480 --> 01:09:35.240 SPEAKER_09: We did one down in Imperial with Navajo Nation years back. 01:09:35.240 --> 01:09:40.360 SPEAKER_09: So I wanted to make sure ‑‑ this is a good balance for both near and far projects. 01:09:41.119 --> 01:09:45.399 SPEAKER_00: We do think it's a good balance. 01:09:45.399 --> 01:09:52.799 SPEAKER_00: And we did consider projects in Sacramento, in the state, and then also outside of the state. 01:09:52.799 --> 01:09:53.799 SPEAKER_09: Okay. 01:09:53.799 --> 01:09:55.519 SPEAKER_09: Perfect. 01:09:55.519 --> 01:10:00.799 SPEAKER_09: And then just the last thing, in terms of just trying to keep control of these projects, 01:10:00.799 --> 01:10:04.279 SPEAKER_09: right, you saw with Cody Creek, it just went off the rails. 01:10:04.279 --> 01:10:10.000 SPEAKER_09: What was said to the board years back turned out to not be entirely true. 01:10:10.000 --> 01:10:14.199 SPEAKER_09: As the environmental review progressed, the impacts got worse and worse, and we had no 01:10:14.199 --> 01:10:20.279 SPEAKER_09: ability to comment on it at risk of litigation. 01:10:20.279 --> 01:10:22.800 SPEAKER_09: So it's definitely a challenge. 01:10:22.800 --> 01:10:27.560 SPEAKER_09: So hopefully this will avoid those problems in the future as well. 01:10:27.560 --> 01:10:30.039 SPEAKER_09: And then I also would echo Director Sanborn the idea. 01:10:30.039 --> 01:10:33.880 SPEAKER_09: We brought it up just informally over the years, the environmental council makes a lot 01:10:33.880 --> 01:10:37.560 SPEAKER_09: of sense as we do with our business advisory council, the BACT. 01:10:37.560 --> 01:10:41.600 SPEAKER_09: So those are my thoughts and comments, and thank you, everybody, for being here. 01:10:41.600 --> 01:10:45.800 Unknown: Are there any more comments from ‑‑ yes, Director Kerr? 01:10:45.800 --> 01:10:46.800 SPEAKER_04: Yes, thank you. 01:10:46.800 --> 01:10:49.080 SPEAKER_04: And I too want to thank everyone who worked on this. 01:10:49.080 --> 01:10:53.960 SPEAKER_04: This is a good policy enhancement for us, and I'm looking forward to it. 01:10:53.960 --> 01:11:02.520 SPEAKER_04: One of the assumptions in all of this is that because of SMUD's agreement to a power purchase 01:11:02.520 --> 01:11:06.520 SPEAKER_04: agreement, the project then becomes constructible. 01:11:06.520 --> 01:11:11.680 SPEAKER_04: And so this is a construction‑related activity. 01:11:11.680 --> 01:11:17.000 SPEAKER_04: What happens when someone just comes to us and says, hey, we're a generator and we want 01:11:17.000 --> 01:11:19.280 SPEAKER_04: to sell you renewable power? 01:11:19.280 --> 01:11:26.040 Unknown: Would it be part of this system if they have an existing generation facility? 01:11:26.040 --> 01:11:30.760 Unknown: Or would that be separate then? 01:11:30.760 --> 01:11:35.880 SPEAKER_00: This would be specific for renewable energy, so not for a thermal generation. 01:11:35.880 --> 01:11:41.039 SPEAKER_00: But if someone came to us with an existing wind project, we would still work through 01:11:41.039 --> 01:11:42.440 SPEAKER_00: this process. 01:11:42.440 --> 01:11:48.159 SPEAKER_00: We may be coming to the board to say this doesn't align with all of the principles because, 01:11:48.159 --> 01:11:52.480 SPEAKER_00: for example, they couldn't meet the sustainable communities requirement because the project 01:11:52.480 --> 01:11:54.720 SPEAKER_00: has already been built. 01:11:54.720 --> 01:12:01.840 SPEAKER_00: But we would highlight those exceptions to the principles through that process. 01:12:02.840 --> 01:12:07.199 SPEAKER_00: The process, regardless of whether it's a built project or not, Chad brings the project 01:12:07.199 --> 01:12:14.720 SPEAKER_00: to my team, my team reviews it, we'll work through the whole process here. 01:12:14.720 --> 01:12:18.560 SPEAKER_00: It's a little easier if it's already a built project because impacts are ‑‑ 01:12:18.560 --> 01:12:22.640 Unknown: Yeah, there's not much decision. 01:12:22.640 --> 01:12:25.760 SPEAKER_04: We can't influence the project very much after it's built. 01:12:25.760 --> 01:12:26.760 SPEAKER_04: Exactly. 01:12:26.760 --> 01:12:27.760 Unknown: Appreciate that. 01:12:27.760 --> 01:12:28.760 SPEAKER_04: Thank you. 01:12:29.760 --> 01:12:34.920 Unknown: And now I get a chance to comment on this stuff. 01:12:34.920 --> 01:12:43.079 SPEAKER_15: I do want to thank Director Sanborn and Director Tamayo for taking the time to go to the meetings 01:12:43.079 --> 01:12:47.560 SPEAKER_15: with our staff and work through different things. 01:12:47.560 --> 01:12:49.600 SPEAKER_15: Also want to thank the public. 01:12:49.600 --> 01:12:54.320 SPEAKER_15: It's really great to have you working with us. 01:12:54.319 --> 01:13:05.199 SPEAKER_15: We know that we needed something to change after the last development that went off the 01:13:05.199 --> 01:13:06.759 SPEAKER_15: rails. 01:13:06.759 --> 01:13:13.119 SPEAKER_15: And I believe that this is going to put us in a much better place. 01:13:13.119 --> 01:13:15.920 SPEAKER_15: I like the transparency. 01:13:15.920 --> 01:13:20.159 SPEAKER_15: I like the communication with the neighborhoods. 01:13:20.159 --> 01:13:28.960 SPEAKER_15: I like the ability for people to know what's going on and not find out, you know, the last 01:13:28.960 --> 01:13:34.599 SPEAKER_15: couple of days before the project comes forward to be approved. 01:13:34.599 --> 01:13:37.039 SPEAKER_15: I don't think there's a reason to wait. 01:13:37.039 --> 01:13:44.599 SPEAKER_15: I do want to see us go ahead and adopt this if it's possible. 01:13:44.600 --> 01:13:50.039 SPEAKER_15: But overall, I think staff did a really great job and so did the public. 01:13:50.039 --> 01:13:52.920 SPEAKER_15: And lo and behold, even the board members. 01:13:52.920 --> 01:13:57.840 SPEAKER_15: So thank you for that. 01:13:57.840 --> 01:14:07.920 SPEAKER_15: So now what is the board's pleasure in terms of are we going to bring it forward or hold 01:14:07.920 --> 01:14:13.840 SPEAKER_15: off or do people have comments about that? 01:14:14.079 --> 01:14:21.239 SPEAKER_06: I'd recommend to just go on to the consent agenda, but along with the actual full document, 01:14:21.239 --> 01:14:24.640 SPEAKER_06: the principles attached and the full board packet. 01:14:24.640 --> 01:14:25.640 Unknown: Okay. 01:14:25.640 --> 01:14:27.800 SPEAKER_15: I definitely would agree. 01:14:27.800 --> 01:14:30.560 SPEAKER_15: I'm not seeing any disagreement. 01:14:30.560 --> 01:14:31.560 SPEAKER_15: Okay. 01:14:31.560 --> 01:14:37.480 SPEAKER_15: Well, then, Chief Legal Officer, you know where we all stand with this. 01:14:37.480 --> 01:14:39.600 SPEAKER_15: And thank you again for coming out. 01:14:39.600 --> 01:14:41.079 SPEAKER_15: You're welcome to stay. 01:14:41.079 --> 01:14:44.279 SPEAKER_15: There's more good news. 01:14:44.279 --> 01:14:49.880 SPEAKER_15: We're going to move on to item number two, which is to discuss the monitoring report 01:14:49.880 --> 01:14:56.960 SPEAKER_15: for strategic direction number nine, which involves resource planning. 01:14:56.960 --> 01:14:58.519 Unknown: All right. 01:14:58.519 --> 01:14:59.519 SPEAKER_19: Great. 01:14:59.519 --> 01:15:02.199 SPEAKER_19: Thank you, Chair Herber. 01:15:02.199 --> 01:15:03.199 SPEAKER_19: Great group out here tonight. 01:15:03.199 --> 01:15:04.600 SPEAKER_19: Good to see everyone here. 01:15:04.920 --> 01:15:10.800 SPEAKER_19: Tonight I have the pleasure of presenting the highlights of SD9, which is our resource 01:15:10.800 --> 01:15:13.400 SPEAKER_19: planning directive here at SMUD. 01:15:13.400 --> 01:15:17.440 SPEAKER_19: It's a very far-reaching directive for the organization. 01:15:17.440 --> 01:15:22.079 SPEAKER_19: I might brag that it's actually the widest-reaching SD here at SMUD. 01:15:22.079 --> 01:15:26.120 SPEAKER_19: So really there's a lot of folks here at SMUD that contribute to this work. 01:15:26.120 --> 01:15:30.840 SPEAKER_19: So I just want to say thank you to all the SMUD Army out there that are really working 01:15:30.840 --> 01:15:35.000 SPEAKER_19: every day towards these goals and their jobs here. 01:15:35.000 --> 01:15:41.360 SPEAKER_19: I also want to thank the board members, our seven-member board of directors here at SMUD. 01:15:41.360 --> 01:15:43.000 SPEAKER_19: They're out in the community. 01:15:43.000 --> 01:15:48.360 SPEAKER_19: They're educating our customers about the offerings we have, the goals we have, some 01:15:48.360 --> 01:15:53.480 SPEAKER_19: of the rates we have, you know, really trying to improve the life and comfort of some of 01:15:53.480 --> 01:15:55.319 SPEAKER_19: our customers through our program. 01:15:55.319 --> 01:16:00.400 SPEAKER_19: So thank you to our board as well for your hand in the progress report here tonight. 01:16:01.840 --> 01:16:08.279 Unknown: First, I want to cover our emissions for the year. 01:16:08.279 --> 01:16:12.360 SPEAKER_19: We saw this in Director Emily Bikini's presentation. 01:16:12.360 --> 01:16:19.880 SPEAKER_19: But our emissions for retail sales in 2025 were about 1.4 million metric tons to meet, 01:16:19.880 --> 01:16:21.079 SPEAKER_19: again, customer load. 01:16:21.079 --> 01:16:24.800 SPEAKER_19: So those are emissions associated with meeting our retail sales. 01:16:24.800 --> 01:16:30.800 SPEAKER_19: So that orange row there on the table on the left. 01:16:30.800 --> 01:16:35.199 SPEAKER_19: That result was slightly higher than what we could have planned for the year. 01:16:35.199 --> 01:16:40.560 SPEAKER_19: So on SC9, we like to describe some of the big impacts to our emissions for the year. 01:16:40.560 --> 01:16:42.520 SPEAKER_19: And thankfully, they're relatively small. 01:16:42.520 --> 01:16:44.199 SPEAKER_19: We've seen them much larger than this. 01:16:44.199 --> 01:16:48.199 SPEAKER_19: But our hydro underperformed by about 6%. 01:16:48.199 --> 01:16:51.320 SPEAKER_19: That's a big swing variable in our portfolio. 01:16:51.320 --> 01:16:55.560 SPEAKER_19: We know it's really up to the whim of weather, right, whether or not we get that rain or 01:16:55.560 --> 01:16:58.039 SPEAKER_19: that snowpack, right, throughout the year. 01:16:58.039 --> 01:17:03.800 SPEAKER_19: And so that increased our emissions by about 53,000 metric tons for the year. 01:17:03.800 --> 01:17:05.720 SPEAKER_19: Wind variability as well. 01:17:05.720 --> 01:17:13.079 SPEAKER_19: We had a lower production from our wind portfolio in 2025 as well, increasing our emissions 01:17:13.079 --> 01:17:19.439 SPEAKER_19: by about 82,000 metric tons of greenhouse gas emissions. 01:17:19.439 --> 01:17:24.279 SPEAKER_19: So had those things kind of gone our way, our emissions could have been about 1.3 million 01:17:24.279 --> 01:17:25.880 SPEAKER_19: metric tons. 01:17:25.880 --> 01:17:31.960 SPEAKER_19: Anytime hydro doesn't show up, any time other variable energy resources don't show up, we 01:17:31.960 --> 01:17:36.199 SPEAKER_19: have to go out and procure more power to kind of backfill that power, right. 01:17:36.199 --> 01:17:41.800 SPEAKER_19: And typically that's going to be run the thermal plants more or by market purchases. 01:17:41.800 --> 01:17:46.079 SPEAKER_19: Either those usually come with an emission intensity factor, right. 01:17:46.079 --> 01:17:53.560 SPEAKER_19: So again, our emissions for the year in 2025 were 1.47. 01:17:53.560 --> 01:18:00.840 SPEAKER_19: But again, had hydro and wind delivered about to plan, we could have been a little bit lower. 01:18:00.840 --> 01:18:07.560 SPEAKER_19: Now some highlights across the year, across the portfolio I should say, include the expansion 01:18:07.560 --> 01:18:09.680 SPEAKER_19: of new renewable resources. 01:18:09.680 --> 01:18:15.240 SPEAKER_19: We added 151 megawatts of solar and wind generation. 01:18:15.240 --> 01:18:21.960 SPEAKER_19: We also continue to push on almost nearly 1,000 megawatts of new renewable and storage 01:18:21.960 --> 01:18:28.159 SPEAKER_19: projects committed to come online between 2026 and 2030. 01:18:28.159 --> 01:18:34.520 SPEAKER_19: Our customers continue to add clean distributed solar and storage to their homes and businesses 01:18:34.520 --> 01:18:39.199 SPEAKER_19: as well as participate in our load flex programs. 01:18:39.199 --> 01:18:45.520 SPEAKER_19: And we saw a big increase in electric vehicles and homes and the associated greenhouse gas 01:18:45.520 --> 01:18:48.000 SPEAKER_19: emission reductions. 01:18:48.000 --> 01:18:53.439 SPEAKER_19: Our community impact plan, our sustainable communities initiative and our income qualified 01:18:53.439 --> 01:19:00.399 SPEAKER_19: offerings all continue to support some of our customers that need more support in the 01:19:00.399 --> 01:19:02.439 SPEAKER_19: clean energy transition. 01:19:02.439 --> 01:19:10.000 SPEAKER_19: I'll kind of go into each one of these areas as we step through this presentation. 01:19:10.000 --> 01:19:18.279 SPEAKER_19: Based on the utility scale side of things, since 2022 we've added about 441 megawatts 01:19:18.279 --> 01:19:21.520 SPEAKER_19: of new renewable carbon free resources. 01:19:21.520 --> 01:19:26.039 SPEAKER_19: In 2025 the Sulu house solar project joined the portfolio. 01:19:26.039 --> 01:19:31.000 SPEAKER_19: It's a 50 megawatt solar project here in Sacramento County. 01:19:31.000 --> 01:19:36.640 SPEAKER_19: We also brought online a power purchase agreement, hatchet ridge for some additional wind. 01:19:36.640 --> 01:19:39.800 SPEAKER_19: That project is out in Shasta County. 01:19:39.920 --> 01:19:47.760 SPEAKER_19: We also completed the power plant retooling project or as we like to call it the turn 01:19:47.760 --> 01:19:49.720 SPEAKER_19: down project. 01:19:49.720 --> 01:19:53.320 SPEAKER_19: That's an interesting project that doesn't generate anything but allows that unit to 01:19:53.320 --> 01:19:59.560 SPEAKER_19: be more flexible, reducing fuel commodity by somewhere between $10 to $12 million a 01:19:59.560 --> 01:20:05.320 SPEAKER_19: year, reducing emissions at that project by about 100,000 metric tons. 01:20:05.319 --> 01:20:10.599 SPEAKER_19: As we highlighted in the April presentation to the board on the ZCP on the utility scale 01:20:10.599 --> 01:20:16.799 SPEAKER_19: update, we are looking at other retooling options at several of our other thermal plants. 01:20:16.799 --> 01:20:19.119 SPEAKER_19: More to come on that soon. 01:20:19.119 --> 01:20:25.719 Unknown: Of late, 2026 we had the sun Zia wind project join the portfolio. 01:20:25.719 --> 01:20:29.119 SPEAKER_19: It's 150 megawatts of wind. 01:20:29.119 --> 01:20:35.559 SPEAKER_19: The largest solar and storage project to date for smud country acres is currently under 01:20:35.559 --> 01:20:42.920 SPEAKER_19: construction with an online date planned for 2027 as well as the dry creek BES project 01:20:42.920 --> 01:20:45.079 SPEAKER_19: down at ranch of Saco. 01:20:45.079 --> 01:20:48.319 SPEAKER_19: Also expected to come online in 2027. 01:20:48.319 --> 01:20:50.800 SPEAKER_19: A lot of progress in this area. 01:20:50.800 --> 01:20:56.359 SPEAKER_19: Total about 1433 megawatts between 2022 and 2030. 01:20:56.359 --> 01:21:02.399 SPEAKER_19: We're also on track to meeting the state's requirements for renewables portfolio standard, 01:21:02.399 --> 01:21:04.799 SPEAKER_19: which is a 60% standard by 2030. 01:21:04.799 --> 01:21:08.960 SPEAKER_19: The last thing I'll mention here is there are cost pressures. 01:21:08.960 --> 01:21:14.799 SPEAKER_19: We talked about the significant cost pressures on utility scale resources in April. 01:21:14.799 --> 01:21:18.880 SPEAKER_19: That's really kind of a head wind that we're dealing with at this time. 01:21:18.880 --> 01:21:19.880 Unknown: Yeah. 01:21:19.880 --> 01:21:20.880 Unknown: Director Rose. 01:21:20.880 --> 01:21:31.680 Unknown: Online dates, memory serves a half-serve raised income online until the last day of the year. 01:21:31.680 --> 01:21:32.680 SPEAKER_19: That's correct. 01:21:32.680 --> 01:21:34.520 SPEAKER_19: Yeah, nearly the last day. 01:21:34.520 --> 01:21:35.520 SPEAKER_19: You're right. 01:21:35.520 --> 01:21:41.520 SPEAKER_09: I know it's a really, really big, some of these, some of them coming out in the beginning of 01:21:41.520 --> 01:21:45.520 SPEAKER_09: the year, so you don't realize it's kind of it for a while. 01:21:45.520 --> 01:21:46.520 SPEAKER_09: Good point. 01:21:46.520 --> 01:21:52.160 SPEAKER_09: So, since we've been in the Zia, we've queried the present of the ISO here in June. 01:21:52.160 --> 01:21:57.880 SPEAKER_09: Are we actually getting our full delivery of our portion of that Zia project at this point? 01:21:57.880 --> 01:22:00.000 SPEAKER_19: To my knowledge, we are. 01:22:00.000 --> 01:22:02.680 SPEAKER_19: I haven't looked too much at the hourly delivery. 01:22:02.680 --> 01:22:03.680 SPEAKER_19: I don't know if John's... 01:22:03.680 --> 01:22:04.680 SPEAKER_19: After they're taking it at just. 01:22:04.680 --> 01:22:05.680 SPEAKER_09: Okay. 01:22:05.680 --> 01:22:06.680 SPEAKER_09: Okay. 01:22:06.680 --> 01:22:07.680 SPEAKER_09: That was a little bit of a question mark when we actually start seeing that production as 01:22:07.680 --> 01:22:08.680 SPEAKER_09: well. 01:22:08.680 --> 01:22:09.680 SPEAKER_09: Sure. 01:22:09.680 --> 01:22:10.680 SPEAKER_09: Good question. 01:22:10.680 --> 01:22:11.680 SPEAKER_09: Good. 01:22:11.680 --> 01:22:12.680 SPEAKER_19: Thank you. 01:22:12.680 --> 01:22:13.680 Unknown: Okay. 01:22:13.680 --> 01:22:14.680 Unknown: Okay. 01:22:15.680 --> 01:22:16.680 Unknown: All right. 01:22:16.680 --> 01:22:17.680 Unknown: All right. 01:22:17.680 --> 01:22:18.680 Unknown: Next slide here. 01:22:18.680 --> 01:22:20.680 Unknown: This is a new one. 01:22:20.680 --> 01:22:27.480 SPEAKER_19: This probably doesn't look familiar to anyone, but this slide was created to address some 01:22:27.480 --> 01:22:30.760 SPEAKER_19: of the discussions we had in April. 01:22:30.760 --> 01:22:34.640 SPEAKER_19: The progress slide we had shared was a megawatt-based slide. 01:22:34.640 --> 01:22:39.560 SPEAKER_19: I think the discussion here was like, what would that be in terms of greenhouse gas emissions 01:22:39.560 --> 01:22:40.560 SPEAKER_19: avoided, right? 01:22:40.560 --> 01:22:46.520 SPEAKER_19: So we produced this slide here to try to address that discussion and those questions. 01:22:46.520 --> 01:22:52.960 SPEAKER_19: If we focus on the graph here between 2022 and 2025, as we mentioned on the previous 01:22:52.960 --> 01:22:57.960 SPEAKER_19: slide, we added 441 megawatts of wind, solar, geothermal, right? 01:22:57.960 --> 01:23:05.720 SPEAKER_19: Between that time period, the generation from those resources is estimated to avoid about 01:23:05.720 --> 01:23:11.240 SPEAKER_19: 700,000 metric tons of greenhouse gas emissions annually. 01:23:11.240 --> 01:23:20.159 SPEAKER_19: Between 2026 and 2030, we're adding an additional 992 megawatts of clean resources, increasing 01:23:20.159 --> 01:23:26.400 SPEAKER_19: that 700 metric tons avoided annually to about 1.3 million metric tons. 01:23:26.400 --> 01:23:33.800 SPEAKER_19: I will note that the 992 megawatts between 2026 and 2030, nearly half of that is actually 01:23:33.800 --> 01:23:37.320 SPEAKER_19: in storage, so it doesn't produce energy, right? 01:23:37.320 --> 01:23:41.039 SPEAKER_19: It can store clean energy, but doesn't necessarily produce it. 01:23:41.039 --> 01:23:48.840 SPEAKER_19: So that's why, you know, you might ask, like, why wouldn't the emission reductions be higher, 01:23:48.840 --> 01:23:49.840 SPEAKER_19: right? 01:23:49.840 --> 01:23:53.440 SPEAKER_19: But because a lot of it is storage, yes. 01:23:53.440 --> 01:24:00.320 SPEAKER_12: Real quick, Brian, we've already added 151 megawatts, and we're adding another 992 between 01:24:00.320 --> 01:24:01.320 SPEAKER_12: now and 2030. 01:24:01.840 --> 01:24:07.199 SPEAKER_12: I just want to point out our peak demand is about 3,000 megawatts, and so we're adding 01:24:07.199 --> 01:24:11.259 SPEAKER_12: a significant amount of capacity, but it's intermittent. 01:24:11.259 --> 01:24:13.399 SPEAKER_12: It doesn't always produce, obviously. 01:24:13.399 --> 01:24:17.079 SPEAKER_12: Solar doesn't produce at night, or when it's really, really cloudy, wind doesn't always 01:24:17.079 --> 01:24:18.159 SPEAKER_12: blow. 01:24:18.159 --> 01:24:23.039 SPEAKER_12: So it's, I mean, it sounds like a huge amount of power, but in terms of how much it actually 01:24:23.039 --> 01:24:26.039 SPEAKER_12: is going to produce, it's not that much. 01:24:26.039 --> 01:24:27.039 SPEAKER_19: That's correct, yeah. 01:24:28.039 --> 01:24:32.760 SPEAKER_19: You know, with respect to things like geothermal, obviously that's a very dense energy resource, 01:24:32.760 --> 01:24:33.760 SPEAKER_19: right? 01:24:33.760 --> 01:24:37.720 SPEAKER_19: 90% capacity factor solar, 25% capacity factor, yeah. 01:24:37.720 --> 01:24:42.600 SPEAKER_19: So this is kind of, you know, giving you a sense of nameplate capacity, but sure, the 01:24:42.600 --> 01:24:44.840 SPEAKER_19: production by technology type will vary. 01:24:44.840 --> 01:24:45.840 SPEAKER_19: Good point. 01:24:49.840 --> 01:24:50.840 SPEAKER_06: Yes. 01:24:50.840 --> 01:24:55.560 SPEAKER_06: I want to clarify, because we've had it reported it's going to be very difficult to hit our 01:24:55.560 --> 01:24:57.520 SPEAKER_06: zero by 2030. 01:24:57.520 --> 01:25:02.240 SPEAKER_06: The way that chart is laid out, it looks like we're hitting it. 01:25:02.240 --> 01:25:11.240 Unknown: Yeah, so the, that's kind of where I was going with next, is that orange point on the graph. 01:25:11.240 --> 01:25:16.280 SPEAKER_19: You know, it's labeled as 2030 estimated SD7 emissions. 01:25:16.280 --> 01:25:21.280 SPEAKER_19: So that's kind of where we think we will be in 2030, which is somewhere around 1.2 million 01:25:21.280 --> 01:25:25.200 SPEAKER_19: metric tons. 01:25:25.239 --> 01:25:28.399 SPEAKER_19: The 700,000 has occurred already, right? 01:25:28.399 --> 01:25:30.399 SPEAKER_19: So we've had that through 2025. 01:25:30.399 --> 01:25:36.679 SPEAKER_19: And so it's, from here it's an incremental 600,000 metric tons decrease. 01:25:36.679 --> 01:25:44.399 SPEAKER_19: And so where that gets us to is about 1.2 million metric tons in 2030, excuse me. 01:25:44.399 --> 01:25:46.760 SPEAKER_19: There's some other things going on here too with this graph. 01:25:46.760 --> 01:25:48.479 SPEAKER_19: There's load growth. 01:25:48.479 --> 01:25:49.840 SPEAKER_19: That's a big part of it. 01:25:49.840 --> 01:25:55.800 SPEAKER_19: We anticipate a pretty significant amount of new transportation load due to our electrification 01:25:55.800 --> 01:25:57.680 SPEAKER_19: efforts. 01:25:57.680 --> 01:26:00.239 SPEAKER_19: So that increases our loads. 01:26:00.239 --> 01:26:02.239 SPEAKER_19: That increases our emissions. 01:26:02.239 --> 01:26:07.720 SPEAKER_19: But on a net basis, when you think about the emissions reduced on the transportation side, 01:26:07.720 --> 01:26:09.840 SPEAKER_19: it's a gain, right? 01:26:09.840 --> 01:26:17.119 SPEAKER_19: So that's also one of those kind of, one of the aspects of this that comes into play. 01:26:17.119 --> 01:26:21.279 SPEAKER_06: So just for the graphic though, because the way it looks to me, it looks like we're hitting 01:26:21.279 --> 01:26:22.279 SPEAKER_06: the goal. 01:26:22.279 --> 01:26:23.279 SPEAKER_06: But that's not the goal. 01:26:23.279 --> 01:26:25.079 SPEAKER_06: The goal is higher than that. 01:26:25.079 --> 01:26:26.079 Unknown: Yeah. 01:26:26.079 --> 01:26:29.760 SPEAKER_19: So we have, on the area chart we have emissions avoided. 01:26:29.760 --> 01:26:35.359 SPEAKER_19: But then the little kind of orange striped diamond is where we think our emissions are 01:26:35.359 --> 01:26:37.920 SPEAKER_19: going to end up in 2030. 01:26:37.920 --> 01:26:44.559 SPEAKER_19: So the emissions result in 2030 are estimated right around 1.2 million metric tons. 01:26:44.560 --> 01:26:57.840 Unknown: All right. 01:26:57.840 --> 01:27:01.720 SPEAKER_19: Transitioning to the customer side of things. 01:27:01.720 --> 01:27:08.240 SPEAKER_19: This is clean distributed energy resources as well as load flex programs. 01:27:08.240 --> 01:27:13.960 SPEAKER_19: On the customer solar side of things, our customer behind the meter solar increased 01:27:13.960 --> 01:27:19.840 SPEAKER_19: by about 9% year over year bringing total solar in the region behind the meter solar 01:27:19.840 --> 01:27:22.439 SPEAKER_19: to over 450 megawatts. 01:27:22.439 --> 01:27:29.279 SPEAKER_19: I think we can recall back to maybe 2020, 2021, we're more in the 200 megawatt range. 01:27:29.279 --> 01:27:35.560 SPEAKER_19: So again, our customers continue pitching in and adding solar to their homes and businesses. 01:27:35.560 --> 01:27:40.779 SPEAKER_19: On the storage side, we saw almost a doubling of the storage capacity at customer sites 01:27:40.779 --> 01:27:43.099 SPEAKER_19: incentivized by our programs. 01:27:43.099 --> 01:27:53.579 SPEAKER_19: Saw 17 megawatt growth year over year bringing total storage at customer sites to over 35 01:27:53.579 --> 01:27:54.579 Unknown: megawatts. 01:27:54.579 --> 01:27:59.420 SPEAKER_19: On the flexible demand front, these are the programs here listed. 01:27:59.420 --> 01:28:05.300 SPEAKER_19: My energy optimizer, partner, partner plus, peak conserved, that's our new ACLM, air conditioning 01:28:05.300 --> 01:28:10.639 SPEAKER_19: load management program as well as our commercial power direct program. 01:28:11.000 --> 01:28:17.400 SPEAKER_19: These programs help us reduce the need for power at peak, reducing costs, but also reducing 01:28:17.400 --> 01:28:20.640 SPEAKER_19: emissions at those highest emitting hours. 01:28:20.640 --> 01:28:25.640 SPEAKER_19: This program to really help us in that way provide capacity, reduces the need for capacity 01:28:25.640 --> 01:28:27.400 SPEAKER_19: at peak as well. 01:28:27.400 --> 01:28:34.119 SPEAKER_19: In total, we've got about 70 megawatts in this portfolio here growing about 27% year 01:28:34.119 --> 01:28:35.119 SPEAKER_19: over year. 01:28:35.279 --> 01:28:40.279 SPEAKER_19: So great job by our customers continuing to participate in our programs here. 01:28:45.119 --> 01:28:52.720 SPEAKER_19: Now on the electrification side of things, we took some big steps in this area as well. 01:28:52.720 --> 01:28:54.760 SPEAKER_19: We had a good discussion last night. 01:28:54.760 --> 01:29:01.119 SPEAKER_19: Dr. Alberto Ayala from the Sacramento Metro Air Quality Management District was out and 01:29:01.119 --> 01:29:08.039 SPEAKER_19: really highlighted the importance of electrification in Sacramento. 01:29:08.039 --> 01:29:14.319 SPEAKER_19: Really highlighted that the air quality is very impacted by transportation and that really 01:29:14.319 --> 01:29:20.319 SPEAKER_19: the key here is to keep the economic signal to electrify buildings, to electrify homes. 01:29:20.319 --> 01:29:25.119 SPEAKER_19: By SMUD's role, that of course is providing affordable rates. 01:29:25.119 --> 01:29:29.079 SPEAKER_19: The more we can keep affordable rates, the more impact we can have across the economy 01:29:29.079 --> 01:29:36.800 SPEAKER_19: with respect to the electrification of buildings and transportation. 01:29:36.800 --> 01:29:46.000 SPEAKER_19: On the building side, total equivalent all-electric homes, top 27,000, emissions reduced, equaled 01:29:46.000 --> 01:29:50.720 SPEAKER_19: over 150,000 metric tons. 01:29:50.720 --> 01:29:55.640 SPEAKER_19: And on a couple of notables here on the left here, income-qualified residential gas to 01:29:55.640 --> 01:30:01.000 SPEAKER_19: electric conversions equaled 571 individuals. 01:30:01.000 --> 01:30:05.480 SPEAKER_19: Total residential gas to electric conversions, nearly top 5,000 units. 01:30:05.480 --> 01:30:10.200 SPEAKER_19: So a lot of great work going on on the building electrification side. 01:30:10.200 --> 01:30:17.440 SPEAKER_19: On the transportation side, we saw EV vehicles registered in the region exceed 76,000. 01:30:17.440 --> 01:30:23.640 SPEAKER_19: I believe that was a 23% increase year-over-year in electric vehicles. 01:30:23.640 --> 01:30:32.640 SPEAKER_19: Total emissions reduced are now nearly 245,000 metric tons annually. 01:30:32.640 --> 01:30:41.280 SPEAKER_19: Some notables on the transportation side, we helped electrify 610 customers on the income-qualified 01:30:41.280 --> 01:30:43.760 SPEAKER_19: side of things. 01:30:43.760 --> 01:30:50.640 SPEAKER_19: And in total, we installed over 2,600 home chargers and EV circuits through our programs 01:30:50.640 --> 01:30:51.640 SPEAKER_19: and incentives. 01:30:52.640 --> 01:30:55.400 SPEAKER_19: I'll also mention EV rate credit. 01:30:55.400 --> 01:30:59.440 SPEAKER_19: We have 47% participation rate right now. 01:30:59.440 --> 01:31:05.820 SPEAKER_19: For anyone that's listening that's here in this room or maybe at home, it's important 01:31:05.820 --> 01:31:07.960 SPEAKER_19: to look at that EV rate credit. 01:31:07.960 --> 01:31:14.240 SPEAKER_19: If we have a cent and a half reduction in our rates, if you charge your vehicle between 01:31:14.239 --> 01:31:17.159 SPEAKER_19: 12 a.m. and 6 a.m. 01:31:17.159 --> 01:31:25.000 SPEAKER_19: So an additional credit on your bill during those hours on our already pretty low rates 01:31:25.000 --> 01:31:26.000 SPEAKER_19: overnight. 01:31:26.000 --> 01:31:27.000 SPEAKER_19: So do look into that. 01:31:27.000 --> 01:31:30.159 SPEAKER_19: That helps us kind of manage the EV load. 01:31:30.159 --> 01:31:35.679 SPEAKER_19: Really kind of pulls it off the peak and puts it where we can better manage it on the system. 01:31:35.679 --> 01:31:40.800 Unknown: All right. 01:31:40.800 --> 01:31:46.159 SPEAKER_19: So on to customer resiliency and community benefits. 01:31:46.159 --> 01:31:51.600 SPEAKER_19: We had a great presentation several weeks ago by Dr. Webster and Director Tara Porter 01:31:51.600 --> 01:31:53.239 SPEAKER_19: on the customer side. 01:31:53.239 --> 01:31:59.680 Unknown: They presented the detailed community impact plan presentation highlighting all the great 01:31:59.680 --> 01:32:03.560 SPEAKER_19: things that we're doing in this area of the plan. 01:32:03.560 --> 01:32:07.880 SPEAKER_19: As a community organization, this work is very near and dear to SMUD staff and we have 01:32:07.880 --> 01:32:13.880 SPEAKER_19: teams focused on improving the lives of some of our customers that need our help the most. 01:32:13.880 --> 01:32:19.039 SPEAKER_19: Through our community impact plan, sustainable communities initiative and our income qualified 01:32:19.039 --> 01:32:25.440 SPEAKER_19: programs, we've widened our reach by providing clean energy outreach and education, workforce 01:32:25.440 --> 01:32:33.199 SPEAKER_19: development programs and incentives while partnering with many community-based organizations 01:32:33.199 --> 01:32:36.600 SPEAKER_19: to achieve our goals in this area. 01:32:36.600 --> 01:32:43.480 SPEAKER_19: Through our community impact plan, we installed over 2,700 energy efficiency and electrification 01:32:43.480 --> 01:32:45.960 SPEAKER_19: measures in the Meadowview neighborhood. 01:32:45.960 --> 01:32:52.039 SPEAKER_19: That work was funded through partnership with Congresswoman Doris Matsui via a matching grant 01:32:52.039 --> 01:32:57.400 SPEAKER_19: to electrify these homes again in the Meadowview neighborhoods. 01:32:57.400 --> 01:33:01.840 SPEAKER_19: Total homes electrified were equal to about 300 homes there. 01:33:01.840 --> 01:33:06.079 SPEAKER_19: So a lot of great work there in Meadowview. 01:33:06.079 --> 01:33:13.619 SPEAKER_19: So through our SHINE program, we awarded $534,000 to 22 local nonprofits for projects 01:33:13.619 --> 01:33:20.319 SPEAKER_19: focused on energy efficiency, building electrification, community education and demonstration of clean 01:33:20.319 --> 01:33:25.859 SPEAKER_19: energy technology and other vital community services. 01:33:25.859 --> 01:33:32.559 SPEAKER_19: On the workforce development front, we continued to partner with our local workforce training 01:33:32.560 --> 01:33:38.000 SPEAKER_19: and education partners, including Northern California construction training, the Kazoomis 01:33:38.000 --> 01:33:43.160 SPEAKER_19: River College, grid alternatives, Salvation Army and many more. 01:33:43.160 --> 01:33:47.800 SPEAKER_19: Through these partnerships, we provide workforce training and clean energy technologies to 01:33:47.800 --> 01:33:52.320 SPEAKER_19: individuals and under-resourced communities. 01:33:52.320 --> 01:33:59.200 SPEAKER_19: Between 2022 and 2026, we've had over 21,000 individuals from our community go through 01:33:59.519 --> 01:34:03.439 SPEAKER_19: more sponsored workforce training programs with our partners. 01:34:03.439 --> 01:34:09.319 SPEAKER_19: This work continues to provide the needed workforce to continue pushing clean energy 01:34:09.319 --> 01:34:15.359 SPEAKER_19: technologies in the region, but also has a lasting impact on individuals participating 01:34:15.359 --> 01:34:16.359 SPEAKER_19: in these programs. 01:34:16.359 --> 01:34:22.059 SPEAKER_19: I have a few kind of anecdotes from folks that have gone through the programs. 01:34:22.059 --> 01:34:28.380 SPEAKER_19: One individual hired by the utility partners of America to work on the meter replacement 01:34:28.380 --> 01:34:35.180 SPEAKER_19: project in 2025 was hired onto SMUD as a meter tech apprentice because of this valuable 01:34:35.180 --> 01:34:40.340 SPEAKER_19: experience that he gained through that UPA partnership and work experience. 01:34:40.340 --> 01:34:44.340 SPEAKER_19: Another individual that had graduated from our electrician apprenticeship with Northern 01:34:44.340 --> 01:34:50.819 SPEAKER_19: California construction training went on to pursue higher education in electrical engineering, 01:34:50.819 --> 01:34:55.119 SPEAKER_19: prompted by our workforce development program. 01:34:55.260 --> 01:34:59.760 SPEAKER_19: These stories are really a testament to our workforce development efforts and are so much 01:34:59.760 --> 01:35:03.159 SPEAKER_19: more than providing job training. 01:35:03.159 --> 01:35:08.859 SPEAKER_19: It's the life-altering aspect of this that we are so enthusiastic about. 01:35:08.859 --> 01:35:15.720 SPEAKER_19: The last thing I'll point out here are the income-qualified progress through our Clean 01:35:15.720 --> 01:35:16.899 SPEAKER_19: Cars for All program. 01:35:16.899 --> 01:35:23.220 SPEAKER_19: We supported the growth of clean electric vehicles with the installation of 610 EV 01:35:23.220 --> 01:35:25.500 SPEAKER_19: circuits and chargers. 01:35:25.500 --> 01:35:29.699 SPEAKER_19: Through our partnership with the Habitat for Humanity and Grid Alternatives, we supported 01:35:29.699 --> 01:35:36.199 SPEAKER_19: 54 solar and battery storage installations for income-qualified customers, enabling these 01:35:36.199 --> 01:35:39.659 SPEAKER_19: customers to participate in our virtual power plant program. 01:35:39.659 --> 01:35:47.900 SPEAKER_19: Great job getting those individuals electrified, providing green energy, and engaged in our 01:35:47.900 --> 01:35:49.900 SPEAKER_19: low flex programs. 01:35:49.899 --> 01:36:03.119 Unknown: On this last slide, the 344 EV circuits, what does that mean? 01:36:03.119 --> 01:36:13.279 SPEAKER_19: That is running chargers to the circuit box, a lot of that, so preparing a home for charging 01:36:13.279 --> 01:36:14.279 SPEAKER_19: a vehicle. 01:36:14.279 --> 01:36:19.000 SPEAKER_19: And then, of course, the EV chargers as well. 01:36:19.000 --> 01:36:20.000 SPEAKER_19: Okay. 01:36:20.000 --> 01:36:21.000 Unknown: Go ahead. 01:36:21.000 --> 01:36:22.000 Unknown: Thank you. 01:36:22.000 --> 01:36:26.640 SPEAKER_19: That brings me to my last slide. 01:36:26.640 --> 01:36:31.159 SPEAKER_19: Just to wrap it up here, we continue to make progress towards SD9 goals. 01:36:31.159 --> 01:36:37.380 SPEAKER_19: We are cognizant of some of the headwinds, as we talked about back in April in this portfolio. 01:36:37.380 --> 01:36:42.340 SPEAKER_19: But the zero-carbon energy supply continues to build. 01:36:42.340 --> 01:36:50.380 SPEAKER_19: Again, we added 151 megawatts of solar and wind in 2025, nearly a gigawatt expected 01:36:50.380 --> 01:36:53.180 SPEAKER_19: to come online between now and 2030. 01:36:53.180 --> 01:36:57.739 SPEAKER_19: We're on track to meeting the state renewable portfolio standard goals. 01:36:57.739 --> 01:37:00.900 SPEAKER_19: We continue to evaluate emerging technology. 01:37:00.900 --> 01:37:06.860 Unknown: Electrification, GSE savings continue, as well as those criteria pollutants that are 01:37:06.860 --> 01:37:09.779 SPEAKER_19: being reduced as we electrify. 01:37:09.779 --> 01:37:17.579 SPEAKER_19: Our resiliency and community benefits continue to benefit the community at large. 01:37:17.579 --> 01:37:24.539 SPEAKER_19: And our distributed energy programs and incentives continue to engage with our customers and 01:37:24.539 --> 01:37:29.219 SPEAKER_19: expand clean, distributed energy resources in our territory. 01:37:29.219 --> 01:37:35.300 SPEAKER_19: So with that, I'll go ahead and ask the board to accept or request the board to accept the 01:37:35.300 --> 01:37:39.420 SPEAKER_19: staff's report on SD9 for 2025. 01:37:39.420 --> 01:37:40.539 SPEAKER_15: Thank you, Brian. 01:37:40.539 --> 01:37:45.300 SPEAKER_15: Are there questions? 01:37:45.300 --> 01:37:46.300 SPEAKER_15: President Tamayo? 01:37:46.300 --> 01:37:47.300 Unknown: Yeah. 01:37:47.300 --> 01:37:54.579 SPEAKER_16: I'm looking at the slide that you have on emissions avoided. 01:37:54.579 --> 01:37:57.980 SPEAKER_16: On my version, it's, yeah, that's the one. 01:37:57.979 --> 01:38:09.059 SPEAKER_16: So we've got estimated emissions at about what was that? 01:38:09.059 --> 01:38:10.059 SPEAKER_16: 1.2 million? 01:38:10.059 --> 01:38:11.059 SPEAKER_16: 1.3 million? 01:38:11.059 --> 01:38:12.059 SPEAKER_16: 1.2 million. 01:38:12.059 --> 01:38:16.739 SPEAKER_19: Those are the emissions that we expect that we'll still have, correct? 01:38:16.739 --> 01:38:17.739 SPEAKER_16: Correct. 01:38:17.739 --> 01:38:18.739 SPEAKER_16: Yeah. 01:38:18.739 --> 01:38:29.460 SPEAKER_16: So the avoided emissions, you know, by adding all these renewables is 1.3. 01:38:29.460 --> 01:38:37.739 SPEAKER_16: So that we're very short of our zero carbon then. 01:38:37.739 --> 01:38:41.380 SPEAKER_16: I mean, am I interpreting this incorrectly? 01:38:41.380 --> 01:38:45.219 SPEAKER_16: Because it seems like it's about 50%. 01:38:45.219 --> 01:38:46.219 SPEAKER_19: That's correct. 01:38:46.219 --> 01:38:47.219 SPEAKER_19: Yeah. 01:38:47.220 --> 01:38:55.300 SPEAKER_19: So we're on the build out today meeting the state standard for renewable procurement 01:38:55.300 --> 01:38:56.300 SPEAKER_19: standards. 01:38:56.300 --> 01:39:03.140 SPEAKER_19: 60% with our large hydro gets us to about 1.2 million in 2030. 01:39:03.140 --> 01:39:04.140 SPEAKER_19: Yes. 01:39:04.140 --> 01:39:08.659 SPEAKER_19: So we are a ways away from zero in 2030. 01:39:08.659 --> 01:39:11.260 Unknown: All right. 01:39:11.260 --> 01:39:16.300 Unknown: I mean, I understand the load is growing. 01:39:16.380 --> 01:39:22.739 SPEAKER_16: We have, you know, more electrification of homes and buildings and cars. 01:39:22.739 --> 01:39:29.699 SPEAKER_16: But as far as what our actual percentage, it's really far short of our 2030. 01:39:29.699 --> 01:39:36.140 SPEAKER_16: And I understand that we've had significant headwinds in the last few years. 01:39:36.140 --> 01:39:37.140 SPEAKER_16: Yeah. 01:39:37.140 --> 01:39:38.140 Unknown: Yeah. 01:39:38.140 --> 01:39:42.820 SPEAKER_19: We do, as we talked about in April, we do still anticipate being somewhere with these 01:39:42.819 --> 01:39:47.979 SPEAKER_19: committed resources somewhere around 80% carbon free. 01:39:47.979 --> 01:39:50.739 SPEAKER_19: So I do want to kind of remind folks of that. 01:39:50.739 --> 01:39:59.819 SPEAKER_16: So this is not including then our large hydro and other that we own and also? 01:39:59.819 --> 01:40:02.979 SPEAKER_19: The orange result for 2030. 01:40:02.979 --> 01:40:09.340 SPEAKER_19: So that kind of diamond shaped thatched mark there in 2030. 01:40:09.340 --> 01:40:15.819 SPEAKER_19: That does include the benefit of our large hydro and all the other resources in our portfolio. 01:40:15.819 --> 01:40:20.579 Unknown: Hang on just a second. 01:40:20.579 --> 01:40:23.100 SPEAKER_15: We have Director Sanborn and then? 01:40:23.100 --> 01:40:24.100 SPEAKER_15: Thanks. 01:40:24.100 --> 01:40:26.260 SPEAKER_06: This is what I was trying to get at with this slide. 01:40:26.260 --> 01:40:30.380 SPEAKER_06: I just feel like we have to be really transparent about where we are. 01:40:30.380 --> 01:40:32.539 SPEAKER_06: And I don't feel like this slide demonstrated that. 01:40:32.539 --> 01:40:35.100 SPEAKER_06: And it wasn't totally clear at the presentation. 01:40:35.100 --> 01:40:38.819 SPEAKER_06: But we also have the renewable standards, which are the state standards of what. 01:40:38.819 --> 01:40:41.500 SPEAKER_06: And then there's carbon free, which is our goal. 01:40:41.500 --> 01:40:44.899 SPEAKER_06: Zero carbon versus their definition of renewable. 01:40:44.899 --> 01:40:45.979 SPEAKER_06: We're going to get closer. 01:40:45.979 --> 01:40:52.659 SPEAKER_06: So 80% about towards zero carbon by 2030 with today's information. 01:40:52.659 --> 01:40:55.579 SPEAKER_06: Is that what I'm hearing? 01:40:55.579 --> 01:40:56.579 SPEAKER_19: That's correct. 01:40:56.579 --> 01:40:57.579 SPEAKER_19: Yeah. 01:40:57.579 --> 01:41:04.539 SPEAKER_19: So this result you see here, about 1.2 million metric tons gets you about 80% carbon free 01:41:04.539 --> 01:41:07.059 SPEAKER_19: on a retail sales basis. 01:41:07.060 --> 01:41:08.820 SPEAKER_19: So we're way short. 01:41:08.820 --> 01:41:09.820 Unknown: Okay. 01:41:09.820 --> 01:41:11.620 SPEAKER_06: I just want to make sure. 01:41:11.620 --> 01:41:15.900 SPEAKER_06: We should just be really clear where we are and tell people this is where we are. 01:41:15.900 --> 01:41:16.900 SPEAKER_06: It's going to be really hard. 01:41:16.900 --> 01:41:17.900 SPEAKER_06: We've got a lot of headwinds. 01:41:17.900 --> 01:41:19.700 SPEAKER_06: We've got tariffs all over the place. 01:41:19.700 --> 01:41:22.660 SPEAKER_06: It's hard work. 01:41:22.660 --> 01:41:24.340 SPEAKER_06: And we've made huge progress though. 01:41:24.340 --> 01:41:25.340 SPEAKER_06: So thank you. 01:41:25.340 --> 01:41:26.340 Unknown: Director Rose. 01:41:26.340 --> 01:41:36.340 SPEAKER_09: So the question is if we have 80% carbon free and we're somewhere between around 1.4 million 01:41:36.340 --> 01:41:40.659 SPEAKER_09: and so you multiply that by five. 01:41:40.659 --> 01:41:49.100 SPEAKER_09: So our base carbon emissions would be somewhere around 6 million. 01:41:49.100 --> 01:41:51.980 SPEAKER_09: How can we have that many carbon emissions and be so carbon free? 01:41:51.980 --> 01:41:54.220 SPEAKER_09: I guess is the core question. 01:41:54.220 --> 01:41:55.220 Unknown: Yeah. 01:41:55.220 --> 01:42:05.940 SPEAKER_19: So our retail sales are about say 11 million today. 01:42:05.939 --> 01:42:17.019 SPEAKER_19: So if you're 80% carbon free of 11 million, I'm not quite prepared to do that on the 01:42:17.019 --> 01:42:18.019 SPEAKER_19: spot here. 01:42:18.019 --> 01:42:23.219 SPEAKER_19: I guess let me say this regarding the presentation though and it will echo President Tomayo's 01:42:23.219 --> 01:42:24.219 SPEAKER_09: comments. 01:42:24.219 --> 01:42:29.500 SPEAKER_09: A lot of these numbers, right, you have up there avoided emissions in terms of greenhouse 01:42:29.500 --> 01:42:31.219 SPEAKER_09: gases. 01:42:31.220 --> 01:42:37.780 SPEAKER_09: Like I know we go through about 11,000 gigawatt hours per year which was shown on the slide 01:42:37.780 --> 01:42:42.420 SPEAKER_09: in the SD7 presentation where we showed that. 01:42:42.420 --> 01:42:46.100 SPEAKER_09: It's that zigzagging line. 01:42:46.100 --> 01:42:51.260 SPEAKER_09: And so we had these numbers in this presentation at least in terms of gigawatt hours, right? 01:42:51.260 --> 01:42:54.140 SPEAKER_09: And then when we're listing the power projects, we're listing them in the equivalent homes 01:42:54.140 --> 01:42:55.140 SPEAKER_09: powered. 01:42:55.140 --> 01:42:58.659 Unknown: And it's like I really want to know how many gigawatt hours we have and how many of those 01:42:58.659 --> 01:43:01.739 SPEAKER_09: are carbon free or low carbon. 01:43:01.739 --> 01:43:08.300 SPEAKER_09: So we could definitely see some room to make the slides a little bit clearer in future 01:43:08.300 --> 01:43:10.340 SPEAKER_09: years to tell that story. 01:43:10.340 --> 01:43:11.340 SPEAKER_09: Right? 01:43:11.340 --> 01:43:14.019 Unknown: Yeah, I appreciate it. 01:43:14.019 --> 01:43:18.979 SPEAKER_19: Yeah, I'd say with that chart, we thought we were doing a pretty good job at laying 01:43:18.979 --> 01:43:23.819 SPEAKER_19: out the story here but we'll take the feedback and do better next time. 01:43:23.819 --> 01:43:27.340 SPEAKER_19: Appreciate it. 01:43:27.340 --> 01:43:30.659 SPEAKER_15: And then to Tamaio and then Director Fish. 01:43:30.659 --> 01:43:32.900 Unknown: No, he doesn't. 01:43:32.900 --> 01:43:33.900 SPEAKER_15: Okay, Director Fish. 01:43:33.900 --> 01:43:38.420 SPEAKER_15: I want to ask the same question maybe with a different way to make sure that I understand 01:43:38.420 --> 01:43:42.300 SPEAKER_12: it. 01:43:42.300 --> 01:43:47.819 SPEAKER_12: When we talk about 80 percent or whatever, we're not comparing it to a given year. 01:43:47.819 --> 01:43:57.220 SPEAKER_12: So let's say whatever year we benchmark, we produced 100 units of carbon and then in 2030 01:43:57.220 --> 01:43:58.900 SPEAKER_12: we're only going to produce 20. 01:43:58.900 --> 01:44:00.539 SPEAKER_12: That's not what we're saying. 01:44:00.539 --> 01:44:08.539 SPEAKER_12: We're saying that in 2030, all of the power that we produce, only 20 percent of it is 01:44:08.539 --> 01:44:11.420 SPEAKER_12: going to come from carbon producing resources. 01:44:11.420 --> 01:44:12.420 SPEAKER_12: Is that correct? 01:44:12.420 --> 01:44:13.420 Unknown: That's correct. 01:44:13.420 --> 01:44:15.020 SPEAKER_12: And that's if the number is 80. 01:44:15.020 --> 01:44:17.060 SPEAKER_12: It might be more than that, whatever that number is. 01:44:17.060 --> 01:44:18.060 SPEAKER_12: Yeah, that's correct. 01:44:18.060 --> 01:44:19.060 SPEAKER_19: Yeah. 01:44:19.060 --> 01:44:22.940 SPEAKER_19: And the other thing to think about too is the hydro, how that swings this picture. 01:44:22.940 --> 01:44:26.820 SPEAKER_19: That could be 300,000 one way, 300,000 the other way. 01:44:26.819 --> 01:44:32.819 SPEAKER_19: So here we've assumed that this is under normal circumstances. 01:44:32.819 --> 01:44:34.819 SPEAKER_19: And so there's a number of things that could happen. 01:44:34.819 --> 01:44:41.019 SPEAKER_19: Load growth, more load growth than expected, less load growth than expected, delay of projects. 01:44:41.019 --> 01:44:44.739 SPEAKER_19: There's all kinds of things that can change that result. 01:44:44.739 --> 01:44:53.179 SPEAKER_19: Plus or minus several hundred thousand metric tons in 2030. 01:44:53.179 --> 01:44:55.380 SPEAKER_15: Any other questions for Brian? 01:44:56.300 --> 01:45:00.619 Unknown: Seeing none, we do have a public comment. 01:45:00.619 --> 01:45:08.579 SPEAKER_15: And so I would like to welcome to the microphone David Wright with 350 Sacramento. 01:45:08.579 --> 01:45:10.859 SPEAKER_15: And you don't have to adjust the microphone. 01:45:10.859 --> 01:45:12.420 SPEAKER_15: They'll take care of that for you. 01:45:12.420 --> 01:45:13.420 SPEAKER_18: Oh, great. 01:45:13.420 --> 01:45:14.420 Unknown: Thank you. 01:45:14.420 --> 01:45:18.260 SPEAKER_18: David Wright. 01:45:18.260 --> 01:45:19.900 SPEAKER_18: It's a very interesting presentation. 01:45:19.899 --> 01:45:22.539 SPEAKER_18: And I appreciate it. 01:45:22.539 --> 01:45:27.299 SPEAKER_18: And I appreciate all the work that you all are doing. 01:45:27.299 --> 01:45:33.339 SPEAKER_18: It's fantastic, the scope of things that you do. 01:45:33.339 --> 01:45:41.619 SPEAKER_18: I do worry, and I hear some of that worry reflected in board comments, I worry about 01:45:41.619 --> 01:45:43.339 SPEAKER_18: the zero carbon achievement. 01:45:43.339 --> 01:45:49.619 Unknown: I mean, you have been very public about the zero carbon goal, right? 01:45:49.619 --> 01:45:53.420 SPEAKER_18: 2030 arrives and you're far from it. 01:45:53.420 --> 01:45:55.579 SPEAKER_18: That's going to be embarrassing. 01:45:55.579 --> 01:46:01.380 SPEAKER_18: I really want you to achieve that goal. 01:46:01.380 --> 01:46:02.659 SPEAKER_18: So I have questions. 01:46:02.659 --> 01:46:06.939 SPEAKER_18: I just have a lot of questions. 01:46:06.939 --> 01:46:12.539 SPEAKER_18: I'm wondering if batteries are an energy dense resource. 01:46:12.539 --> 01:46:16.380 SPEAKER_18: I wonder if batteries have a high capacity factor. 01:46:16.380 --> 01:46:23.819 SPEAKER_18: Could they be something that maybe would be a possibility to increase your amount of 01:46:23.819 --> 01:46:27.940 SPEAKER_18: carbon free energy? 01:46:27.940 --> 01:46:31.579 SPEAKER_18: Only 17 megawatts of battery storage so far. 01:46:31.579 --> 01:46:37.739 SPEAKER_18: That seems pretty tiny. 01:46:37.739 --> 01:46:47.539 SPEAKER_18: And even if residences are not partnering with SMUD on their batteries where the energy 01:46:47.539 --> 01:46:52.939 SPEAKER_18: goes, SMUD still benefits from the reduction in load, right? 01:46:52.939 --> 01:47:03.579 SPEAKER_18: So programs to encourage residential batteries and commercial batteries, that's an avenue. 01:47:03.579 --> 01:47:06.859 SPEAKER_18: Having some batteries, maybe tariffs are a problem there. 01:47:06.859 --> 01:47:12.939 SPEAKER_18: So maybe schedule your big purchase for 2029. 01:47:12.939 --> 01:47:17.979 SPEAKER_18: I don't know. 01:47:17.979 --> 01:47:23.739 SPEAKER_18: And then what's the relative cost of battery energy versus geothermal? 01:47:23.739 --> 01:47:30.340 SPEAKER_18: I'm wondering if the headwinds for geothermal are not so great as some of the other headwinds 01:47:30.340 --> 01:47:33.019 SPEAKER_18: that you're talking about. 01:47:33.020 --> 01:47:40.100 SPEAKER_18: So there was a very interesting presentation on geothermal here not so long ago. 01:47:40.100 --> 01:47:43.860 SPEAKER_18: It seemed like it was somewhat cost effective. 01:47:43.860 --> 01:47:51.980 SPEAKER_18: I mean you're looking at more expensive forms of energy for those non daytime solar and 01:47:51.980 --> 01:47:55.020 SPEAKER_18: wind times, right? 01:47:55.020 --> 01:47:58.060 SPEAKER_18: So questions. 01:47:58.060 --> 01:47:59.700 SPEAKER_18: Thank you. 01:47:59.700 --> 01:48:01.180 SPEAKER_15: Thank you, David. 01:48:01.180 --> 01:48:02.820 SPEAKER_15: All right. 01:48:02.819 --> 01:48:06.179 SPEAKER_15: Next up, do we have any digital comments? 01:48:06.179 --> 01:48:19.059 SPEAKER_15: Yes, one comment from John. 01:48:19.059 --> 01:48:20.739 SPEAKER_15: Are you there, John? 01:48:20.739 --> 01:48:21.739 Unknown: I am there. 01:48:21.739 --> 01:48:23.019 SPEAKER_15: Can you hear me? 01:48:23.019 --> 01:48:25.699 SPEAKER_15: Now we can, yes. 01:48:25.699 --> 01:48:30.699 SPEAKER_10: Good evening, Chairwoman, board and committee members. 01:48:30.699 --> 01:48:32.219 SPEAKER_10: My name is John Weber. 01:48:32.220 --> 01:48:38.579 SPEAKER_10: And I just had a suggestion that might be helpful to really explore and do a feasibility 01:48:38.579 --> 01:48:41.579 SPEAKER_10: project on floating solar. 01:48:41.579 --> 01:48:48.900 SPEAKER_10: Besides the benefits of the direct renewable energy generation, you get a double whammy 01:48:48.900 --> 01:48:50.579 SPEAKER_10: with floating solar. 01:48:50.579 --> 01:48:54.180 SPEAKER_10: You reduce the evaporation from the reservoirs. 01:48:54.180 --> 01:49:00.260 SPEAKER_10: So some reservoirs can lose 50% of the water through evaporation every year. 01:49:00.260 --> 01:49:05.500 SPEAKER_10: So if you were able to save even a portion of that, you would have more hydropower and 01:49:05.500 --> 01:49:08.579 SPEAKER_10: also more water for the community. 01:49:08.579 --> 01:49:14.900 SPEAKER_10: So really look into floating solar behind some or all of your dams that it's viable. 01:49:14.900 --> 01:49:15.900 SPEAKER_10: Thank you very much. 01:49:15.900 --> 01:49:17.460 SPEAKER_10: Have a good evening. 01:49:17.460 --> 01:49:19.260 SPEAKER_15: Thank you for your comments. 01:49:19.260 --> 01:49:20.260 Unknown: Okay. 01:49:20.260 --> 01:49:29.340 SPEAKER_15: Item number three is to discuss the contract award for civil annual construction services. 01:49:29.380 --> 01:49:34.619 SPEAKER_15: And our presenter is Joe Scofield, the deputy general counsel. 01:49:34.619 --> 01:49:40.420 Unknown: Deputy general counsel, Joe Scofield, as of April, corporate legal, which is the area 01:49:40.420 --> 01:49:44.420 SPEAKER_13: that I direct, I guess, took over procurement. 01:49:44.420 --> 01:49:47.739 SPEAKER_13: So I'm giving you a procurement to talk about. 01:49:47.739 --> 01:49:50.659 SPEAKER_13: I guess we started out with buying renewable energy. 01:49:50.659 --> 01:49:52.380 SPEAKER_13: Then we moved on to planning energy. 01:49:52.380 --> 01:49:54.699 SPEAKER_13: Now we're going to talk about building stuff. 01:49:54.699 --> 01:49:57.900 SPEAKER_13: So this is for civil annual construction. 01:49:57.899 --> 01:50:00.659 SPEAKER_13: It's a term that didn't leap off the page for me. 01:50:00.659 --> 01:50:06.859 SPEAKER_13: But it basically is fundamental construction activities that you expect people to do when 01:50:06.859 --> 01:50:08.379 SPEAKER_13: they have a hard hat on. 01:50:08.379 --> 01:50:14.579 SPEAKER_13: Pouring some concrete, installing some rebar, putting some fences up, grading a site. 01:50:14.579 --> 01:50:19.379 SPEAKER_13: Not like installing transformers, not building buildings, none of the high profile stuff 01:50:19.379 --> 01:50:22.379 SPEAKER_13: that you oftentimes would go to like a groundbreaking for. 01:50:22.379 --> 01:50:27.539 SPEAKER_13: But day in, day out foundational work that's critical to SMUD's success, both in a maintenance 01:50:27.539 --> 01:50:30.300 SPEAKER_13: perspective and in a construction perspective. 01:50:30.300 --> 01:50:32.340 SPEAKER_13: Is that okay? 01:50:32.340 --> 01:50:38.140 Unknown: Yeah, talk about that, Eric Poff. 01:50:38.140 --> 01:50:43.399 SPEAKER_13: But you wouldn't be able to install that transformer if the concrete pad hadn't been installed by 01:50:43.399 --> 01:50:46.340 SPEAKER_13: your civil construction people. 01:50:46.340 --> 01:50:49.180 SPEAKER_13: It all fits seamlessly together. 01:50:49.180 --> 01:50:53.380 Unknown: Can we move off this embarrassing slide? 01:50:54.380 --> 01:50:57.779 SPEAKER_13: Actually go one more slide if you wouldn't mind. 01:50:57.779 --> 01:51:01.460 SPEAKER_13: So this is a really expensive contract. 01:51:01.460 --> 01:51:04.140 SPEAKER_13: We came to two weeks ago for $250 million. 01:51:04.140 --> 01:51:06.940 SPEAKER_13: We're going to ask for $150 million. 01:51:06.940 --> 01:51:11.859 SPEAKER_13: A lot of thought went into how can we design this procurement to save SMUD as much money 01:51:11.859 --> 01:51:13.500 SPEAKER_13: as we possibly could. 01:51:13.500 --> 01:51:19.420 SPEAKER_13: So one of the key things that we decided to do was to get as much granular information 01:51:19.420 --> 01:51:22.900 SPEAKER_13: about the pricing that was coming from each of the proposers as we could. 01:51:22.899 --> 01:51:27.420 SPEAKER_13: We had them break down labor into multiple different categories and subcategories. 01:51:27.420 --> 01:51:32.339 SPEAKER_13: We had them break out their pricing on weekly and daily rentals of different kinds of equipment. 01:51:32.339 --> 01:51:34.539 SPEAKER_13: We had them break out all their markups. 01:51:34.539 --> 01:51:38.099 SPEAKER_13: We had them get really deep into supplies. 01:51:38.099 --> 01:51:41.299 SPEAKER_13: And we'll talk a little bit later about why that was successful. 01:51:41.299 --> 01:51:45.099 SPEAKER_13: We also did a lot of work in trying to get as many people as possible to put proposals 01:51:45.099 --> 01:51:46.699 SPEAKER_13: in for this project. 01:51:46.699 --> 01:51:50.460 SPEAKER_13: It's a lot of money, so there's a huge incentive to do it anyway. 01:51:50.460 --> 01:51:54.659 SPEAKER_13: We used to get about three participants in our procurements on average. 01:51:54.659 --> 01:51:59.140 SPEAKER_13: We've been able to squeeze it up to about five, which is a huge success and probably 01:51:59.140 --> 01:52:00.420 SPEAKER_13: gets us a lot of money. 01:52:00.420 --> 01:52:04.739 SPEAKER_13: We had 11 participants propose on this project. 01:52:04.739 --> 01:52:08.460 SPEAKER_13: I'm not sure how many we've had that have equaled that, but it's a pretty impressive 01:52:08.460 --> 01:52:09.460 SPEAKER_13: number. 01:52:09.460 --> 01:52:15.819 SPEAKER_13: And we also decided we noticed that as contracts go on year to year and prices continue to 01:52:15.819 --> 01:52:19.739 SPEAKER_13: escalate, people come to us and they really want to get more money. 01:52:19.739 --> 01:52:24.380 SPEAKER_13: And there's tariffs as people were commenting, other financial pressures. 01:52:24.380 --> 01:52:28.500 SPEAKER_13: And unless there's an escalation mechanism in the contract itself, we're sort of left 01:52:28.500 --> 01:52:30.859 SPEAKER_13: with negotiating with people on one-offs. 01:52:30.859 --> 01:52:32.579 SPEAKER_13: And those don't always go that well for us. 01:52:32.579 --> 01:52:37.219 SPEAKER_13: We decided to put in a mechanism to gradually escalate things on an annual basis. 01:52:37.219 --> 01:52:40.219 SPEAKER_13: So we would have certainty, they would have certainty, and they wouldn't have to bake 01:52:40.219 --> 01:52:44.340 SPEAKER_13: and hire prices from the get-go knowing that they wouldn't, thinking they might not be 01:52:44.340 --> 01:52:45.739 SPEAKER_13: able to get the kinds of escalations. 01:52:46.659 --> 01:52:51.659 SPEAKER_13: So from a strategic perspective, the staff did a wonderful job on this procurement. 01:52:53.019 --> 01:52:53.619 SPEAKER_13: Next slide. 01:52:54.460 --> 01:52:56.779 SPEAKER_13: Sorry, back to the original slide. 01:52:57.939 --> 01:53:03.899 SPEAKER_13: So when we got the numbers in, they were not low. 01:53:04.139 --> 01:53:08.739 SPEAKER_13: The prices that were proposed by our contractors were pretty rough. 01:53:09.139 --> 01:53:12.019 SPEAKER_13: That's when the strategy came into effect. 01:53:12.100 --> 01:53:16.460 SPEAKER_13: We looked at all the detailed numbers on crafts and other things, and we really were able 01:53:16.460 --> 01:53:22.300 SPEAKER_13: to talk turkey with all the different proposers about why are you charging this much for this? 01:53:22.340 --> 01:53:23.740 SPEAKER_13: This is what we've seen in the market. 01:53:23.940 --> 01:53:27.540 SPEAKER_13: We had lots of market research so we could push back on those individual things. 01:53:28.780 --> 01:53:35.980 SPEAKER_13: And as a package, we were able to get the top two proposers to come down by over $5 million a year. 01:53:36.660 --> 01:53:37.900 SPEAKER_13: So collectively. 01:53:38.100 --> 01:53:38.940 SPEAKER_13: Think about that. 01:53:39.019 --> 01:53:44.059 SPEAKER_13: Over a five-year period, that would be it was over $17 million. 01:53:44.139 --> 01:53:44.939 SPEAKER_13: It's a lot of money. 01:53:45.139 --> 01:53:46.779 SPEAKER_13: That's more than a rate increase. 01:53:48.339 --> 01:53:53.179 SPEAKER_13: So can we go one more slide ahead, if you want to mind? 01:53:54.579 --> 01:53:55.299 SPEAKER_13: And one more. 01:53:56.259 --> 01:53:57.339 SPEAKER_13: So here's the ranking. 01:53:57.500 --> 01:54:02.979 SPEAKER_13: If you look at the top two, we have Sierra National Construction and Doug Veer Camp Construction. 01:54:03.459 --> 01:54:09.939 SPEAKER_13: And those two, we were able to come down that really huge amount of money that I just mentioned, 01:54:10.259 --> 01:54:11.859 SPEAKER_13: over $5 million a year. 01:54:12.219 --> 01:54:15.299 SPEAKER_13: And then the next ones who come down aren't quite as impressive. 01:54:15.539 --> 01:54:17.419 SPEAKER_13: And we negotiated hard with them too. 01:54:17.739 --> 01:54:19.939 SPEAKER_13: And this is where we ended up landing on the numbers. 01:54:24.539 --> 01:54:27.139 SPEAKER_13: Let me talk a little bit about how we ranked the... 01:54:27.140 --> 01:54:33.660 SPEAKER_13: ...confusion about the sample project. 01:54:34.500 --> 01:54:39.300 SPEAKER_13: We took all the different numbers I talked about, craft labor, supplies, materials. 01:54:39.740 --> 01:54:48.460 SPEAKER_13: We weighted those according to historical averages and how much money, how much each category we had used historically on jobs under this contract. 01:54:48.460 --> 01:54:49.860 SPEAKER_13: So we had a lot of historical data. 01:54:50.180 --> 01:54:54.140 SPEAKER_13: We have a pretty good sense going forward on how all that is going to come out. 01:54:54.220 --> 01:54:58.260 SPEAKER_13: And we were able to compare them all, apples to apples in that category. 01:54:58.500 --> 01:55:01.500 SPEAKER_13: In addition to that, we also did a sample project. 01:55:02.380 --> 01:55:10.539 SPEAKER_13: Coming up with a project that had 80% of the different cost categories in it, just to sort of a ground truth how we did the financial ranking. 01:55:10.820 --> 01:55:13.380 SPEAKER_13: So the vast majority of the ranking was the raw numbers. 01:55:13.539 --> 01:55:18.180 SPEAKER_13: The sample project was a relatively small thing, but it was kind of a vivid real world example. 01:55:18.300 --> 01:55:25.820 SPEAKER_13: It also was a way for us to test whether or not the proposers were understanding the nature of how SMUD would normally pitch a project. 01:55:25.820 --> 01:55:31.340 SPEAKER_13: So if they didn't do a very good job on understanding how our project should be built, then they didn't get as many numbers. 01:55:35.180 --> 01:55:37.300 Unknown: Hang on just a minute, Director Louie Thompson. 01:55:37.700 --> 01:55:41.020 SPEAKER_03: So I understand you use historical data. 01:55:41.500 --> 01:55:45.500 SPEAKER_03: You asked them to extrapolate based on this hypothetical project. 01:55:45.579 --> 01:55:56.739 SPEAKER_03: So when you actually look at SIB-LON compared to CIRA, it's a $10 million difference over a fairly large amount. 01:55:56.739 --> 01:56:00.260 SPEAKER_03: So when you look at percentages, I guess I don't see it as that dramatic. 01:56:00.539 --> 01:56:08.420 SPEAKER_03: I do feel that Doug Verkamp is significantly lower, but this is, there's many different types of tests I went through. 01:56:08.659 --> 01:56:14.619 SPEAKER_03: So based on what the task object is, it could depend, right? 01:56:14.619 --> 01:56:18.260 SPEAKER_03: It may not be that CIRA is the cheapest or Doug Verkamp. 01:56:18.579 --> 01:56:22.779 SPEAKER_03: This is the grouped hypothetical of what it could be. 01:56:22.779 --> 01:56:36.619 SPEAKER_03: So why, I guess my issue is when I was looking at past contracts is like in 2023 for the substation construction, we did $200 million and we chose four contractors. 01:56:36.939 --> 01:56:47.099 SPEAKER_03: You know, in 2025 for IT, which is a lot smaller, $50 million, over seven years, we chose 72 out of the 80 because we're hoping to get a competitive price. 01:56:47.099 --> 01:57:04.899 SPEAKER_03: And now that you know their baseline, what prohibits us from expanding it to five or four or what have you, because market conditions can change over the next three years and only having two vendors, I guess concerns me, especially if their technical scores are very close. 01:57:04.899 --> 01:57:08.859 SPEAKER_03: If you look at Mountain, it's very close to Van Camp. It's the same, right? 01:57:09.099 --> 01:57:13.939 SPEAKER_03: If you look at, you shortlisted five because you felt like they were qualified. 01:57:14.299 --> 01:57:16.619 SPEAKER_03: Their technical scores are very good. 01:57:17.699 --> 01:57:29.059 Unknown: Pricing can vary, but because projects can vary, wouldn't we always be getting the best price based on what they've already proposed? 01:57:29.339 --> 01:57:33.779 SPEAKER_03: So what would be the harm, I guess, in expanding from two to five? 01:57:34.500 --> 01:57:42.500 SPEAKER_03: Okay, so the technical scores are so close because that's really what I mean, pricing obviously is a consideration, but that's what we'll be evaluating by the task base. 01:57:42.899 --> 01:57:48.019 Unknown: I look at, are they equipped and able to do the work? 01:57:48.259 --> 01:57:54.059 Unknown: And the top five appear within points of each other. It drops significantly. 01:57:54.059 --> 01:57:59.579 SPEAKER_03: All the top five are equipped to do the work. They wouldn't have been the top five if we didn't think they could get the job done. 01:58:00.019 --> 01:58:07.100 SPEAKER_13: The pricing is weighted according to the historical averages in every single job category that we thought were important in putting the RFP together. 01:58:07.100 --> 01:58:13.579 SPEAKER_13: We work with the civil team to come up with five different labor categories. All the different kinds of equipment that are normally coming out. 01:58:13.899 --> 01:58:18.260 SPEAKER_13: So you design different projects based on what you actually need, you're right. 01:58:18.500 --> 01:58:20.739 SPEAKER_13: So they can vary from project to project. 01:58:20.859 --> 01:58:28.100 SPEAKER_13: The historicals over the last five years give us a pretty good picture of what the total amount of work is going to be overall over that period of time. 01:58:28.340 --> 01:58:38.460 SPEAKER_13: So I have a pretty high level of confidence that the rankings that you see and the amount of savings that you get over an annual period with just choosing the top two is going to be, 01:58:38.820 --> 01:58:44.660 SPEAKER_13: I believe the numbers were $2 million a year collectively, over going with the top five. 01:58:44.660 --> 01:58:47.700 SPEAKER_13: So if you had a three-year contract, it would be a $6 million savings. 01:58:47.980 --> 01:58:50.500 SPEAKER_13: If you had a five-year contract, it would be a $10 million savings. 01:58:53.780 --> 01:58:55.300 Unknown: Yeah, I think that's right. 01:58:55.539 --> 01:58:57.779 SPEAKER_13: Does that answer your question? 01:58:58.659 --> 01:59:01.820 Unknown: It's still, I mean, again, $6 million, $10 million. 01:59:03.340 --> 01:59:15.820 Unknown: It will be interesting to see, again, how it actually plays out because at the end of the day, they could end up being always the same two companies based on price, right? 01:59:16.220 --> 01:59:18.020 SPEAKER_03: But again, what's the issue? 01:59:18.020 --> 01:59:23.539 SPEAKER_03: If you're saying if we awarded the top five, we did task orders and the top two won most of the work anyway, would the pricing come out? 01:59:23.619 --> 01:59:29.460 SPEAKER_13: Well, it depends because it may not always be that they're always the lowest every time, right? 01:59:29.460 --> 01:59:32.340 SPEAKER_03: I mean, I'm sure there's some deviation that may be arrow or not. 01:59:32.340 --> 01:59:34.300 SPEAKER_03: The pricing is baked into the contract. 01:59:34.300 --> 01:59:39.180 SPEAKER_13: So when they put a task out, we use the numbers that were in the contract that was awarded. 01:59:39.180 --> 01:59:44.859 SPEAKER_13: So we have a pretty high level of confidence that arrow is going to cost fairly significantly more on bottom of your gear camp. 01:59:45.859 --> 01:59:49.739 Unknown: I'm taking arrow aside because previously we've had five. 01:59:50.219 --> 01:59:56.380 SPEAKER_03: So when you look at the pricing of Siblon, 271 is pretty close to Sierra, right? 01:59:56.380 --> 02:00:02.819 SPEAKER_03: Again, and Doug Verkamp may always come out on top because they are significantly less. 02:00:02.819 --> 02:00:09.699 SPEAKER_03: But again, when I look at technical scores and the deviation of price, I'm not, again, from the top award, Sierra National. 02:00:09.699 --> 02:00:14.019 SPEAKER_03: You kind of have to take Doug Verkamp out because they are 20, you know. 02:00:14.020 --> 02:00:20.220 SPEAKER_03: Arrow probably would not, but I'm looking at Mountain and Siblon who have very good technical scores 02:00:20.220 --> 02:00:27.300 SPEAKER_03: and in the same ballpark, give or take, five or ten million when you expand that over three years. 02:00:28.900 --> 02:00:36.740 SPEAKER_03: Again, I'm just, I'm looking at it as security, safety, having options, not putting all your eggs in two baskets. 02:00:37.739 --> 02:00:48.579 Unknown: And again, I would have to look in because I didn't see it to see specifically if Sierra and Doug across the board, every category was the lowest. 02:00:48.579 --> 02:00:51.579 SPEAKER_03: This is a conglomerate, so it's hard for me to tell. 02:00:51.579 --> 02:00:53.380 Unknown: So I guess... 02:00:53.380 --> 02:00:55.739 SPEAKER_03: There's variability from category to category. 02:00:55.739 --> 02:00:58.619 SPEAKER_13: And I could have broken that out more detailed before, if I thought you might want to. 02:00:58.619 --> 02:01:06.019 SPEAKER_13: There could be times where Mountain and Siblon could be the lowest based because it's not, you know, the $40 million difference. 02:01:06.020 --> 02:01:12.380 SPEAKER_03: It's not inconceivable that Siblon could come out, but we would use exactly the same rankings that we used here, like on a task. 02:01:12.380 --> 02:01:17.620 SPEAKER_13: So the odds of it coming out very similarly, what you're buying here, it seems very, very high to me. 02:01:17.620 --> 02:01:21.220 SPEAKER_13: But it's not inconceivable, you might have a task, it might go to somebody else once in a while. 02:01:21.220 --> 02:01:26.260 Unknown: And what would be the harm in that if we get the lowest price based on what is on the task? 02:01:26.260 --> 02:01:30.980 SPEAKER_03: To me, part of the strategy was to figure out a way to save somebody as much money as we could. 02:01:31.059 --> 02:01:37.299 SPEAKER_13: If you go with the two people who came down the most and are giving some of the best deal day in and day out, 02:01:37.299 --> 02:01:41.699 SPEAKER_13: and you're not giving the work to the folks who didn't come down as much, and I'll tell you right now, 02:01:41.699 --> 02:01:47.339 SPEAKER_13: Aeros, Siblon, and Mountain G did not come down as much as Sierra National and Doug Bierkamp. 02:01:47.339 --> 02:01:54.979 SPEAKER_13: You incentivize your contractors to propose things that are going to be maybe not quite as much in their self-interest as in our interest. 02:01:54.979 --> 02:01:57.659 SPEAKER_13: So, you know, negotiations are hard. 02:01:57.659 --> 02:02:04.259 SPEAKER_13: To me, awarding the top two sends a message to Aeros, for example, that maybe they can come down a little bit lower in price, 02:02:04.259 --> 02:02:06.259 SPEAKER_13: and they would be more likely to get a contract. 02:02:06.259 --> 02:02:13.459 SPEAKER_13: We do have the top two recommended, and I have high confidence from the civil team that they would be able to handle the work. 02:02:13.459 --> 02:02:20.379 SPEAKER_13: In fact, one member of the team told me that the top one could handle the work based on how effective Sierra has been on the job in the past. 02:02:21.380 --> 02:02:28.380 Unknown: But having at least two is a good idea, so you have a deep enough branch to make sure that you can mitigate for circumstances 02:02:28.380 --> 02:02:30.380 SPEAKER_13: or you have a really busy period of life. 02:02:34.380 --> 02:02:36.380 Unknown: Director Cirth. 02:02:36.380 --> 02:02:43.380 Unknown: Thanks. Just a suggestion, maybe when this contract comes back to us again sometime in the future, 02:02:44.380 --> 02:02:50.380 SPEAKER_04: we're kind of used to seeing a congruence between the price score and the actual price. 02:02:50.380 --> 02:02:57.380 Unknown: And so if I look up there, you know, Sierra National got 37 points on the price point, 02:02:57.380 --> 02:03:04.380 SPEAKER_04: and yet Underground Electric, who had a lower total price, got fewer points for their score. 02:03:05.380 --> 02:03:13.380 SPEAKER_04: And so I think that's partly what's triggering the confusion here, is why are these points not congruent to the bid price? 02:03:13.380 --> 02:03:19.380 Unknown: Well, you get more points for having a lower proposal. That way you get a higher ranking? 02:03:19.380 --> 02:03:24.380 Unknown: That's right. The lower the score, the higher the points, right? 02:03:24.380 --> 02:03:26.380 Unknown: The lower the price, the more points. 02:03:26.380 --> 02:03:42.380 Unknown: Yeah, so Sierra at about 263 million got 37 points, and Underground Electric got 33 points, even though their bid was 5 million lower. 02:03:47.380 --> 02:03:50.380 Unknown: Jesse, you want to explain that one? 02:03:51.380 --> 02:04:00.380 Unknown: It sounds like you didn't really use the proposed amount. You used a bucket comparison across likely work. 02:04:01.380 --> 02:04:10.380 Unknown: My supervisor is... 02:04:10.380 --> 02:04:20.380 SPEAKER_13: Or say Lund's price in Underground Electric, they got about the same score, but their price is 13 million apart. 02:04:20.380 --> 02:04:37.380 SPEAKER_04: The computator is running. It could very well be that that was part of the model project. 02:04:50.380 --> 02:04:54.380 Unknown: The problem is, the calculator is intuitive without a track. 02:05:03.380 --> 02:05:04.380 Unknown: Well... 02:05:16.380 --> 02:05:18.380 Unknown: Joe, is it seed? 02:05:19.380 --> 02:05:21.380 Unknown: I don't know if it's a typo, honestly. 02:05:21.380 --> 02:05:23.380 SPEAKER_20: Joe, is it because of the seed? 02:05:24.380 --> 02:05:29.380 SPEAKER_13: Well, the price points are the price points, so each of those categories should be ranked independently of each other. 02:05:29.380 --> 02:05:39.380 SPEAKER_13: The price point category includes 75% weighting on each individual price category, and 25% of the ranking was based on the model project. 02:05:39.380 --> 02:05:46.380 SPEAKER_13: So it's not impossible that the abstract is showing model project points as influencing the overall cost. 02:05:49.380 --> 02:05:51.380 Unknown: Or it could be a typo, I don't know. 02:05:51.380 --> 02:06:17.380 SPEAKER_13: So... 02:06:17.380 --> 02:06:23.380 SPEAKER_15: Joe, could you let the audience know what is happening in... 02:06:23.380 --> 02:06:25.380 SPEAKER_15: As we are in silence here? 02:06:25.380 --> 02:06:41.380 SPEAKER_15: What we have is, as a staff member is looking up and trying to figure out why the price points for Sierra National, which has a 37.54 price point, has more points than Siblon Reed, which has a lower price. 02:06:48.380 --> 02:06:59.380 SPEAKER_03: And you look at the math too, it's between 37.54 and 38, which stood for camp, but that's a $20 million difference, but that only equated to a .54 differential. 02:06:59.380 --> 02:07:13.380 SPEAKER_03: So there's math hinkiness not even just between Outback, but if you just look at Sierra versus Doug, that's, you know, to your point, they significantly decreased, but they only got a .55. 02:07:13.380 --> 02:07:16.380 SPEAKER_03: That seems pretty dramatic. 02:07:16.380 --> 02:07:24.380 SPEAKER_03: One of the team members walked me through one, the only thing that I can think of that explains that is the model project was 25% of the price points. 02:07:24.380 --> 02:07:35.380 SPEAKER_13: And what we asked each of the individual proposers to do is to tell us how they would staff the model project. 02:07:35.380 --> 02:07:45.380 SPEAKER_13: And if they staff the model project, let's say using more of a certain kind of craft or using more of a certain kind of equipment, they got lower price points if it didn't match up with how we would ordinarily do that. 02:07:46.380 --> 02:07:48.380 SPEAKER_13: So we had a project staffed. 02:07:48.380 --> 02:07:52.380 SPEAKER_13: In other words, if they didn't really understand what the work was supposed to be like. 02:07:52.380 --> 02:07:58.380 SPEAKER_13: So the true price point is reflective of that. 02:07:58.380 --> 02:08:00.380 Unknown: You want to stand up, please? 02:08:00.380 --> 02:08:04.380 SPEAKER_15: Please come forward and identify yourself. 02:08:04.380 --> 02:08:06.380 SPEAKER_04: What's there make sense to me? 02:08:06.380 --> 02:08:10.380 Unknown: Because there's just information that's not presented. 02:08:10.380 --> 02:08:13.380 Unknown: I'm Jesse Mays, procurement supervisor. 02:08:13.380 --> 02:08:22.380 SPEAKER_14: So underground, for example, the pricing piece was a total of 40 points. 02:08:22.380 --> 02:08:26.380 SPEAKER_14: A portion of that, as Joe mentioned, was for the sample project. 02:08:26.380 --> 02:08:30.380 SPEAKER_14: And they did not achieve any points for that piece. 02:08:30.380 --> 02:08:41.380 SPEAKER_14: So they only achieved the 33 out of the 35 possible for that portion of work. 02:08:41.380 --> 02:08:57.380 Unknown: And they put that, and my understanding from the team was that they put the price points, they put the model project into the price points because it showed a level of understanding of how they would actually build that project in a way that would use lower cost resources. 02:08:57.380 --> 02:09:14.380 SPEAKER_13: So it makes sense to me that Sierra National would have gotten more points if they were able to figure out how to design staffing and equipment for a project in a way that would yield lower overall costs just basically knowing how to do the job better. 02:09:14.380 --> 02:09:15.380 Unknown: Okay. 02:09:15.380 --> 02:09:16.380 SPEAKER_04: Thank you, Jesse. 02:09:16.380 --> 02:09:17.380 SPEAKER_04: That makes sense to me. 02:09:17.380 --> 02:09:20.380 SPEAKER_04: It's just distracting. 02:09:20.380 --> 02:09:21.380 SPEAKER_04: I agree. 02:09:21.380 --> 02:09:22.380 SPEAKER_04: The way it's presented. 02:09:22.380 --> 02:09:23.380 SPEAKER_13: They put me into vapor lock. 02:09:23.380 --> 02:09:26.380 Unknown: Thanks. 02:09:26.380 --> 02:09:27.380 Unknown: Okay. 02:09:27.380 --> 02:09:29.380 SPEAKER_15: Is that your last slide? 02:09:29.380 --> 02:09:31.380 SPEAKER_15: Oh, yes. 02:09:31.380 --> 02:09:34.380 SPEAKER_15: I wanted to make one point. 02:09:34.380 --> 02:09:44.380 SPEAKER_13: At the last meeting, it was postulated that Sierra National might have had an inadequacy of performance in 2018. 02:09:44.380 --> 02:09:47.380 SPEAKER_13: I think one or two board members might have questioned that. 02:09:47.380 --> 02:09:48.380 SPEAKER_13: We researched that. 02:09:48.380 --> 02:09:52.380 SPEAKER_13: It was not Sierra National that you were thinking of. 02:09:53.380 --> 02:09:59.380 SPEAKER_13: So by all accounts, Sierra National has been a very stand-up performer in all the contracts they worked on. 02:09:59.380 --> 02:10:02.380 SPEAKER_15: Thank you for checking into that. 02:10:02.380 --> 02:10:06.380 SPEAKER_15: Director Rose, did you want to? 02:10:06.380 --> 02:10:07.380 SPEAKER_09: One thing. 02:10:07.380 --> 02:10:11.380 SPEAKER_09: I pointed out the board meeting, the inconsistency between the price points. 02:10:11.380 --> 02:10:21.380 SPEAKER_09: So I would like to have an explanation, just an email, just a paragraph or two explaining the methodology and how that sample project is built into the total score. 02:10:21.380 --> 02:10:31.380 SPEAKER_09: My real question is, is it possible to include more contractors right in this? 02:10:31.380 --> 02:10:33.380 SPEAKER_09: Or do we require to use this to top two? 02:10:33.380 --> 02:10:35.380 SPEAKER_09: And are there repercussions for that? 02:10:35.380 --> 02:10:37.380 SPEAKER_09: There is no requirement to just do two. 02:10:37.380 --> 02:10:41.380 SPEAKER_13: You could do one, two, three, four, five. 02:10:41.380 --> 02:10:50.380 SPEAKER_13: You can't change the order because our process resulted in this being the ranking as all the standards that we published in the RFP were put out. 02:10:52.380 --> 02:11:09.380 Unknown: Again, the key thing to me is that if you pick the top two, our calculations are that you would have greater savings of money for SMUD by $2 million a year on average, assuming you did 20% allocation amongst all of them. 02:11:10.380 --> 02:11:23.380 SPEAKER_13: And if the overall price of Siblon Reed, for example, is slightly lower than the Sierra National one, but Sierra National knows how to staff it in a way that's more efficient, then they're going to save us money. 02:11:25.380 --> 02:11:27.380 Unknown: Director Sanborn? 02:11:27.380 --> 02:11:28.380 Unknown: Thank you. 02:11:28.380 --> 02:11:30.380 SPEAKER_06: Thank you for explaining all this. 02:11:30.380 --> 02:11:36.380 SPEAKER_06: I mean, I think these are all excellent questions, and it was helpful to go through all this in detail. 02:11:37.380 --> 02:11:44.380 Unknown: I still think that price-wise, those top two are it. 02:11:44.380 --> 02:11:59.380 Unknown: And if we don't need more than one, really, but we're going with two as backup, it doesn't make sense to me that we would reward the third one down to add them to this if they're way over price on the two on the top. 02:12:00.380 --> 02:12:07.380 SPEAKER_06: So I'm just throwing it out there, because otherwise, that's where I'm at. 02:12:08.380 --> 02:12:10.380 SPEAKER_15: Director Fishman? 02:12:10.380 --> 02:12:16.380 SPEAKER_15: Yeah, I had some initial concerns about the original contract as it was brought forward. 02:12:16.380 --> 02:12:28.380 SPEAKER_12: I still have some of those same concerns, but I appreciate that staff has reduced the total amount, which means we're going to come back to see this process again in a somewhat shorter period of time. 02:12:29.380 --> 02:12:34.380 SPEAKER_12: So again, we bring back that competitive bidding a little bit earlier. 02:12:35.380 --> 02:12:42.380 Unknown: There's still, I think, some occasional friction between our SEED program, which I think is very important. 02:12:42.380 --> 02:12:56.380 SPEAKER_12: We all support, and we want to support those small local businesses that qualify for SEED, and supporting organized labor and the contractors that hire and use union labor. 02:13:00.380 --> 02:13:08.380 Unknown: I just want to recognize that that friction exists, and there's no perfect solution to that. 02:13:09.380 --> 02:13:18.380 SPEAKER_12: I'm willing to go ahead and support this contract at the reduced amount, again, recognizing that we're going to come back and see this again a little bit sooner. 02:13:18.380 --> 02:13:21.380 SPEAKER_12: And I think overall that's a good thing. 02:13:22.380 --> 02:13:31.380 Unknown: And I'm sorry I forget the gentleman's name, but I just want to acknowledge that somebody from Sierra National is here in the audience and spoke to us last time. 02:13:31.380 --> 02:13:35.380 SPEAKER_12: Appreciate your presence and understand how this is important to you, and we get it. 02:13:36.380 --> 02:13:39.380 SPEAKER_12: So I'm willing to move forward. 02:13:42.380 --> 02:13:49.380 SPEAKER_15: Director Kurth or President Tumayo, you have your microphones on. Did you want to speak? 02:13:50.380 --> 02:13:52.380 Unknown: No? Okay. 02:13:52.380 --> 02:13:53.380 SPEAKER_16: Yes, thank you. 02:13:53.380 --> 02:13:54.380 SPEAKER_16: Okay. 02:13:55.380 --> 02:14:14.380 Unknown: What would be the downside of including, let's say, the top four or five bidders on this, just based on the order that we have here? 02:14:15.380 --> 02:14:22.380 Unknown: The biggest downside is probably that it would send a signal to bidders three, four, and five that they would get work out of this. 02:14:23.380 --> 02:14:32.380 SPEAKER_13: And the way that the rankings came out for this overall contract is probably a good indicator of how the rankings would come out on the individual task orders that would be awarded. 02:14:33.380 --> 02:14:45.380 SPEAKER_13: And it feels like it might not be super earnest to a contractor to give them a contract for three years worth of civil construction work, knowing that the odds of them getting work aren't super high. 02:14:46.380 --> 02:15:01.380 Unknown: And since we know that the top two contractors can handle the work, that their proposals would come out high on the task review, I'm not sure that it would, it doesn't feel like it's necessarily as in good faith as it would need folks that would be getting work anyway. 02:15:02.380 --> 02:15:16.380 Unknown: So you're saying it's just that you feel that it would be misleading to them by including them and giving them a chance and an opportunity. 02:15:17.380 --> 02:15:25.380 SPEAKER_03: Have you maybe asked them to say, if we were to expand to four or five, would you like to self-select out so that you never have a home? 02:15:26.380 --> 02:15:27.380 SPEAKER_03: I mean, that seems... 02:15:28.380 --> 02:15:29.380 SPEAKER_13: We did not ask them. 02:15:29.380 --> 02:15:39.380 SPEAKER_13: Okay. So I have a hard time saying we don't want to include more people because we may never give them work and they would feel bad about never getting work. 02:15:40.380 --> 02:15:46.380 Unknown: To me, that's not an insignificant factor. The other one is, frankly, if you look at the era of construction, their price is really, really high. 02:15:47.380 --> 02:15:57.380 SPEAKER_13: So if you expand the bidding pool to the highest proposer, then that sends a message to me that you may just go ahead and get a contract even though you're bidding really, really high prices. 02:15:58.380 --> 02:15:59.380 SPEAKER_13: So there's a lot of factors... 02:16:00.380 --> 02:16:09.380 SPEAKER_13: But at the end of the day, it's going to be the lowest task item in person. And if you look at CIRA and CIBLAN, for example, it's a $10 million, $9 million difference. 02:16:10.380 --> 02:16:18.380 SPEAKER_03: I've been on the other side as a bidder, and I've seen contracts change and expand, and we thought we were out of it. 02:16:18.380 --> 02:16:24.380 SPEAKER_03: And over the course of time and staffing changes and resources by having a larger... 02:16:25.380 --> 02:16:36.380 Unknown: I was on a project that we were... Deloitte was the highest, and we ended up being the last man standing, and we were very fortunate to have been included because the other bidders for this certain... 02:16:37.380 --> 02:16:43.380 SPEAKER_03: It was back in the day, it was PeopleSoft, but we ended up getting the work, and it was a small sliver. 02:16:43.379 --> 02:17:07.379 SPEAKER_03: So I'm just saying that I've been on the other side where, for whatever reason, our bids were higher, but through time and resources because the people that you thought you had are no longer with the firm, that having a larger pool gave the state of California more flexibility in those times where the people were doing other things in Southern California and they couldn't get resources. 02:17:07.379 --> 02:17:10.379 SPEAKER_03: Things change and things can happen. 02:17:11.379 --> 02:17:20.379 SPEAKER_03: I know, we've never said no to not be included because you just don't know when your number might be called up to the major leagues. 02:17:21.379 --> 02:17:30.379 SPEAKER_03: You may have been relegated to the minors, but weird things happen, and whether it's a million-dollar project or two million projects, that's jobs for people. 02:17:31.379 --> 02:17:47.379 SPEAKER_03: And when it comes to Mountain and Siblon, those are union-supporting contractors that even if it's just one out of three years, those are jobs that we, or me, I can speak for myself, value because of their principles. 02:17:48.379 --> 02:17:53.379 Unknown: So I just don't know any vendors that would be like, don't include us for the opportunity. 02:17:54.379 --> 02:18:11.379 Unknown: Fair. Another thing is if you have five contractors and you're putting together and reviewing tasks by all five each time you go out, or you're developing relationships with five companies when that takes staff time and takes management to do that. 02:18:12.379 --> 02:18:21.379 SPEAKER_13: So there are pluses and minuses, I suppose. If things bust or depart and unexpected things happen, it's conceivable that some work might go to some other contractors. 02:18:22.379 --> 02:18:27.379 Unknown: President Tumayo? And then Director Rose? 02:18:28.379 --> 02:18:45.379 Unknown: Well, I'd kind of like to test the water and see what other board members think about expanding the contract to include the top five rated bidders. 02:18:45.379 --> 02:18:56.379 SPEAKER_16: Well, should we start with Ward 1, or how do we want to do this? 02:18:56.379 --> 02:19:19.379 SPEAKER_15: I was going to say, for me, I had some questions on some of the methodology I'd like answered. I would be comfortable continuing this item and putting it with the Finance and Audit Committee next week and have more discussion at that time if anybody else is interested in doing that. 02:19:22.379 --> 02:19:23.379 Unknown: Go ahead, Rob. 02:19:23.379 --> 02:19:39.379 SPEAKER_15: To the question of the five, I can support that. I'm not sure the questions you need answered, but we definitely should get those done before the board meeting when we'd be voting on this. 02:19:40.379 --> 02:19:57.379 Unknown: Yeah. For me, I don't see any reason not to move forward. I think staff has done a really good job of squeezing to make sure that they're saving the most for SMUD. 02:19:58.379 --> 02:20:17.379 SPEAKER_15: I don't have as many questions about the ratings as others do. I think it's important that we have this contract so we can get going with building some of the things that we need to build. 02:20:17.379 --> 02:20:30.379 SPEAKER_15: And the fact that it's only gone from $2.50 now to $1.50, and we're going to be seeing it again in three years, I guess. 02:20:31.379 --> 02:20:45.379 Unknown: To me, I think staff has done their work well. And I don't see anything here that would make me not want to support staff's work and what they've done, but that's where I am. 02:20:47.379 --> 02:20:54.379 Unknown: Dido, Dr. Herver. 02:21:04.379 --> 02:21:06.379 SPEAKER_15: How about the rest of y'all? 02:21:07.379 --> 02:21:08.379 Unknown: In a worse way. 02:21:08.379 --> 02:21:23.379 SPEAKER_03: In my opinion, I think the most likely CRN for a camp will get a good chunk of the work. I guess I like opening to opportunities to more companies. I feel like it's a safety net to have more. 02:21:24.379 --> 02:21:35.379 SPEAKER_03: I mean, again, based on scoring, they will probably get a lion's share. But like I said, one small contractor too can make the difference in a group of people's lives. 02:21:35.379 --> 02:21:48.379 SPEAKER_03: And if we can include contractors that support union employees, and maybe they'll only get one out of the three years, but just having that chance, I think, is valuable. 02:21:54.379 --> 02:21:59.379 Unknown: Well, I would prefer that we expand it to five. 02:22:09.379 --> 02:22:11.379 Unknown: Brendan, Greg, Rob. 02:22:24.379 --> 02:22:27.379 Unknown: Well, so I'm not sure where we are, folks. 02:22:32.379 --> 02:22:39.379 Unknown: At this point, I feel like I need a little bit more time to think about this and maybe ask some questions that I haven't thought of and aren't going to come to me right now. 02:22:40.379 --> 02:22:49.379 SPEAKER_12: Joe, you've answered this a little bit already. What would the cost be to SMUD to expand this to the top five? 02:22:50.379 --> 02:22:59.379 SPEAKER_12: And I know that you can't know exactly how each of these jobs are going to come in, but in general, can you give us an estimate? 02:23:00.379 --> 02:23:06.379 SPEAKER_13: The fictional world would be, if you divided it up 20 percent each, and that would cost... 02:23:07.379 --> 02:23:08.379 SPEAKER_15: Would you have to do that? 02:23:08.379 --> 02:23:13.379 SPEAKER_13: You wouldn't have to. That would be one way to analyze how to talk about where the cost implications would be. 02:23:13.379 --> 02:23:20.379 SPEAKER_13: If you said it would be fictional and it would probably cost SMUD an additional $10 million over 10 years or $6 million over three years. 02:23:21.379 --> 02:23:23.379 SPEAKER_12: I'm sorry. I didn't hear the amount. You said... 02:23:23.379 --> 02:23:31.379 Unknown: Oh, I said if you fictionally allocated the work evenly across all five contractors, it would cost SMUD $6 million more over three years. 02:23:32.379 --> 02:23:38.379 SPEAKER_13: If the numbers came out the way that the rankings indicate that they probably would, then it might not save much at all. 02:23:39.379 --> 02:23:43.379 Unknown: Because we would allocate most of the work to the top two anyway. 02:23:44.379 --> 02:23:54.379 SPEAKER_13: But honestly, it's a lot of forecasting. These numbers indicate the top two folks based on efficiency and price. 02:23:55.379 --> 02:23:59.379 SPEAKER_13: That's been tried and true by historical numbers and by hard negotiation. 02:24:00.379 --> 02:24:07.379 SPEAKER_13: So if you did five, it would probably come pretty close to the top two, let's say 80 percent of the time. 02:24:07.379 --> 02:24:13.379 SPEAKER_13: It would just be speculation for you to indicate a price, honestly. 02:24:13.379 --> 02:24:14.379 SPEAKER_13: You're set. Thank you. 02:24:22.379 --> 02:24:24.379 Unknown: Anybody else have anything to say? 02:24:25.379 --> 02:24:33.379 Unknown: So I'm not seeing anybody. What do we do with this, Chief Legal Officer? 02:24:36.379 --> 02:24:39.379 Unknown: I may make one more comment, if I may. I'm not overstepping. 02:24:40.379 --> 02:24:44.379 SPEAKER_13: To me, the key thing about the two is really if you look at the price difference for number three, 02:24:45.379 --> 02:24:50.379 SPEAKER_13: the top two folks worked with us in very, very good faith and dropped their prices a lot. 02:24:51.379 --> 02:24:52.379 SPEAKER_13: The next three did not. 02:24:53.379 --> 02:24:57.379 SPEAKER_13: And it's hard to develop a good relationship with folks, bring their best to SMUD. 02:24:58.379 --> 02:25:03.379 SPEAKER_13: And we really encourage that in every way that we can think of, through relationship building, feedback to them, 02:25:04.379 --> 02:25:08.379 SPEAKER_13: but also sometimes not giving you as much work because you didn't come down, honestly. 02:25:09.379 --> 02:25:16.379 SPEAKER_13: And we have tight budgets. We have people who don't make the most money in our county, in our service territory. 02:25:17.379 --> 02:25:22.379 SPEAKER_13: So we worked really hard to develop a proposal that would save SMUD the most money to do the best work that we could. 02:25:23.379 --> 02:25:25.379 SPEAKER_07: Okay. Thank you. 02:25:26.379 --> 02:25:31.379 Unknown: Director Rosick suggested that we bring this back to the Finance Committee meeting next week. 02:25:32.379 --> 02:25:39.379 SPEAKER_05: We can certainly do that. At this point, I think, on the agenda, I would just discuss potential award. 02:25:40.379 --> 02:25:45.379 Unknown: I don't believe we have a clear direction from the board on which way, unless I missed it. 02:25:48.379 --> 02:25:54.379 SPEAKER_15: No, I think you are absolutely right. Do we have any digital comments? 02:25:56.379 --> 02:25:57.379 SPEAKER_05: I don't see any hands. 02:25:58.379 --> 02:26:03.379 SPEAKER_15: Okay. Then I think we will go ahead, if no one has any objections, 02:26:03.379 --> 02:26:11.379 SPEAKER_15: with Director Rose's suggestion to move this item to the Finance Committee. 02:26:12.379 --> 02:26:18.379 SPEAKER_15: We don't have a speaker that wanted the gentleman from the City of Ashmore. 02:26:19.379 --> 02:26:20.379 SPEAKER_16: I don't have a card. 02:26:21.379 --> 02:26:22.379 SPEAKER_16: He's not X. Okay. 02:26:24.379 --> 02:26:28.379 Unknown: Can I clarify, were there some questions? Director Rose, you wanted to have... 02:26:29.379 --> 02:26:33.379 Unknown: Oh, okay. So it's just an open conversation at the next Finance meeting. 02:26:34.379 --> 02:26:41.379 SPEAKER_15: Yeah. I mean, that will give time for others who might have questions to talk to staff, to see the methodology. 02:26:44.379 --> 02:26:47.379 SPEAKER_15: And obviously, we're not going to resolve this tonight. 02:26:47.379 --> 02:26:57.379 SPEAKER_15: So with that, we will go ahead and move this to the Finance Committee next week. 02:26:58.379 --> 02:27:02.379 SPEAKER_15: And thank you, Joe. We don't have any virtual discussions. 02:27:03.379 --> 02:27:12.379 SPEAKER_15: So we're going to move on to a really easy thing here, which is item number four, our board monitoring and staff linkage. 02:27:13.379 --> 02:27:22.379 SPEAKER_15: And the first slide tells us we're looking at delegation to the CEO. 02:27:23.379 --> 02:27:36.379 Unknown: Next slide. And basically, in a variety of ways, it appears that five board members think we have high compliance, and two board members did not respond. 02:27:37.379 --> 02:27:45.379 SPEAKER_15: Let's move on. The next one is a delegation to the CEO with respect to grants. 02:27:46.379 --> 02:27:57.379 SPEAKER_15: And here we have four board members who feel there's high compliance, one board member who feels there's medium. 02:27:58.379 --> 02:28:13.379 SPEAKER_15: And the comment was, there are many conceivable circumstances where providing, quote, advance notice, unquote, of the risks described in E would not be possible. 02:28:14.379 --> 02:28:30.379 SPEAKER_15: I would be happy with, quote, shall provide notice to the board as soon as possible if grant commitments create material, financial, reputational, or operational risk. 02:28:31.379 --> 02:28:40.379 SPEAKER_15: So that's the suggestion. Who's the board member who's made this suggestion? Would you like to speak to it? 02:28:41.379 --> 02:28:42.379 Unknown: That was me. 02:28:42.379 --> 02:28:44.379 Unknown: That was you, Greg. Okay. 02:28:44.379 --> 02:28:45.379 Unknown: What was I thinking? 02:28:45.379 --> 02:28:58.379 SPEAKER_12: No, I just think, you know, asking a lawyer to provide advance notice to us of something that she may not know about until after the fact, you know, it just seems like, you know, this gives her a little bit of flexibility. 02:28:59.379 --> 02:29:08.379 SPEAKER_12: And I think she completely understands that we still fully expect to hear about problems like this as soon as practical. 02:29:09.379 --> 02:29:18.379 Unknown: But, you know, it's also, I've been on the board almost 12 years. I don't think it's ever come up. So maybe I'm tilting a windmills. 02:29:23.379 --> 02:29:24.379 Unknown: Say what? 02:29:25.379 --> 02:29:26.379 Unknown: I would suggest you do that. 02:29:27.379 --> 02:29:28.379 SPEAKER_15: Okay. So... 02:29:28.379 --> 02:29:38.379 Unknown: I think there's even a possible reputational risk, especially if that has been an issue. Yeah, I like the suggestion. 02:29:38.379 --> 02:29:55.379 SPEAKER_06: I personally think it is a needed. I personally think that our CEO is going to come to us right away if there are any financial reputational or operational risks. 02:29:56.379 --> 02:30:03.379 SPEAKER_15: But, you know, if you want to add more words, I won't oppose it. 02:30:09.379 --> 02:30:21.379 Unknown: All right. With you, Chair Herber, and that I don't really think it's necessary. I think it's already said, give advance notice in the meeting room. 02:30:22.379 --> 02:30:28.379 Unknown: I think we can... I think it's safe to assume that our CEO would do that as soon as possible. 02:30:28.379 --> 02:30:39.379 SPEAKER_16: I'm fine with leaving it. I'm just saying it sort of boxes Laura in. I mean, she might come to us as soon as possible, and it's not in advance of the problem. 02:30:40.379 --> 02:30:43.379 SPEAKER_12: But, you know, it's fine. 02:30:44.379 --> 02:30:47.379 Unknown: Okay. All right. Well, thank you for your flexibility. 02:30:48.379 --> 02:30:56.379 SPEAKER_15: Moving on to BL14, it's delegation to the CEO with respect to products, services, and programs. 02:30:57.379 --> 02:31:11.379 Unknown: And here we have four board members who feel there's high compliance, one board member who feels that there's medium compliance. 02:31:12.379 --> 02:31:14.379 SPEAKER_15: Does anybody want to say anything? 02:31:17.379 --> 02:31:29.379 Unknown: Hearing nothing, then let's move on. Oh, do we have any digital comments? 02:31:30.379 --> 02:31:31.379 Unknown: No, we do not. 02:31:32.379 --> 02:31:42.379 SPEAKER_15: All right. Well, then I was just asked by the chair of the ERCS that we go ahead... 02:31:43.379 --> 02:31:44.379 SPEAKER_15: Finance and audit. 02:31:44.379 --> 02:31:55.379 Unknown: Oh, I thought you said ERCS. Okay. All right. Well, not only do we want to send that contract to the finance, but also the... 02:32:01.379 --> 02:32:05.379 SPEAKER_15: The work plans. See, I'm so tired, I can't even think. 02:32:05.379 --> 02:32:15.379 SPEAKER_15: So anyway, Brendan suggested that because it's getting late, and anybody... If there's no objections, then... 02:32:16.379 --> 02:32:21.379 Unknown: Okay. All right. Well, then let me just say that... 02:32:23.379 --> 02:32:29.379 SPEAKER_15: Do we have anyone who's asked to speak not on the agenda? 02:32:30.379 --> 02:32:31.379 Unknown: No, we're not. 02:32:31.379 --> 02:32:46.379 Unknown: Okay. I just want to remind folks that written comments received on items and out on the agenda will be included in the record if they are received within two hours of the end of this meeting. 02:32:47.379 --> 02:32:52.379 SPEAKER_15: And the last item is to provide a summary of committee direction. 02:32:53.379 --> 02:33:05.379 Unknown: So are we skipping the work plan? I did have a question about... that's related to the... 02:33:06.379 --> 02:33:23.379 SPEAKER_16: Our inability to schedule our offsite, and I wanted to see if there was any appetite for combining committee meetings to make room for that. 02:33:23.379 --> 02:33:38.379 SPEAKER_16: One would be, although I think... I was thinking of doing... combining the finance and audit with ERCS, but I don't think that... since we've just added something that I think will take some discussion. 02:33:38.379 --> 02:33:56.379 SPEAKER_16: Not going to do that. And then we were thinking about doing it in December and combining the finance and audit and policy committee, but that would end up being a three-hour, at least combined committee meeting. 02:33:57.379 --> 02:33:58.379 Unknown: Pardon me? 02:33:59.379 --> 02:34:01.379 SPEAKER_16: Yeah, we picked a date in February. 02:34:02.379 --> 02:34:14.379 Unknown: Well, I mean, there were dates that were in February, but I'm... we don't have a date in February available. I'm not available in the beginning of February. 02:34:15.379 --> 02:34:23.379 SPEAKER_16: So... yeah. So it's not going to work out in February. Anyway, I mean, it doesn't look like it's going to work out, so... 02:34:24.379 --> 02:34:33.379 Unknown: Well, I think we can discuss it at the finance committee meeting. I just think it's getting late, and it's hard to think. 02:34:34.379 --> 02:34:47.379 SPEAKER_15: You know, I personally feel like we should have a retreat away, and we shouldn't, you know, combine meetings, but that's just me, and we'll talk about it next time. 02:34:48.379 --> 02:35:00.379 SPEAKER_15: So, no, we're not going to talk about the board calendar or whatever it is. But we are going to hear the summary of committee direction. 02:35:01.379 --> 02:35:14.379 Unknown: And staff will include where our light and heavy duty fleet vehicles stand in terms of electrification. We'll provide additional information about the costs and time involved in implementing the principles for renewable energy development. 02:35:15.379 --> 02:35:31.379 Unknown: We'll include the principles for renewable energy development in the board packet for next week. Staff will provide additional information about the methodology and how the price points were calculated for the sample project in the civil annual construction RFP. 02:35:32.379 --> 02:35:38.379 SPEAKER_05: Staff will bring the civil annual construction services contract to the finance and audit committee next week, as well as the board work plan. 02:35:38.379 --> 02:35:48.379 SPEAKER_05: Okay. Thank you. And since there's no further business coming before this committee, we are adjourned.