WEBVTT 00:00:00.000 --> 00:00:08.880 Unknown: Thank you. 00:00:30.000 --> 00:00:32.000 Unknown: Thank you. 00:01:00.000 --> 00:01:02.000 Unknown: Thank you. 00:01:30.000 --> 00:01:32.000 Unknown: Thank you. 00:02:00.000 --> 00:02:02.000 Unknown: Thank you. 00:02:30.000 --> 00:02:32.000 Unknown: Thank you. 00:03:00.000 --> 00:03:02.000 Unknown: Thank you. 00:03:30.000 --> 00:03:32.000 Unknown: Thank you. 00:04:00.000 --> 00:04:02.000 Unknown: Thank you. 00:04:30.000 --> 00:04:32.000 Unknown: Thank you. 00:05:00.000 --> 00:05:02.000 Unknown: Thank you. 00:05:30.000 --> 00:05:32.000 Unknown: Thank you. 00:06:00.000 --> 00:06:02.000 SPEAKER_02: Thank you. 00:06:30.000 --> 00:06:32.000 SPEAKER_02: Thank you. 00:07:00.000 --> 00:07:02.000 SPEAKER_02: Thank you. 00:07:30.000 --> 00:07:32.000 SPEAKER_02: Thank you. 00:08:00.000 --> 00:08:02.000 SPEAKER_02: Thank you. 00:08:30.000 --> 00:08:32.000 SPEAKER_02: Thank you. 00:08:32.000 --> 00:08:36.000 SPEAKER_02: We will turn it on over to Tsaribar. 00:08:36.000 --> 00:08:38.000 SPEAKER_01: Thank you so much. 00:08:39.000 --> 00:08:41.000 Unknown: Thank you. 00:08:41.000 --> 00:08:43.000 SPEAKER_01: Great to see you all here tonight. 00:08:43.000 --> 00:08:45.000 SPEAKER_01: I'm truly honored to introduce our two presenters 00:08:45.000 --> 00:08:47.000 SPEAKER_01: tonight. 00:08:47.000 --> 00:08:51.000 SPEAKER_01: Not only because they are UC Davis grads, but more 00:08:51.000 --> 00:08:53.000 Unknown: importantly, go Aggies. 00:08:53.000 --> 00:08:59.000 SPEAKER_01: More importantly, they are industry experts in the 00:08:59.000 --> 00:09:03.120 Unknown: And I'm really excited about the two topics they'll be presenting. 00:09:03.519 --> 00:09:06.799 Unknown: First is on air quality in Sacramento. 00:09:06.799 --> 00:09:11.220 SPEAKER_01: And the second is an update on Senate Bill 100 studies, 00:09:11.220 --> 00:09:13.700 SPEAKER_01: achieving the state's decarbonization goals. 00:09:13.860 --> 00:09:18.240 SPEAKER_01: So I'd like to share just a little bit background about our presenters 00:09:18.519 --> 00:09:20.080 SPEAKER_01: and the topics they'll be discussing. 00:09:20.539 --> 00:09:26.700 SPEAKER_01: So first, our first presenter will be Dr. Alberto Ayala, who's Executive Director 00:09:26.700 --> 00:09:30.160 SPEAKER_01: of the Sacramento Metropolitan Air Quality Management District, 00:09:30.660 --> 00:09:33.080 SPEAKER_01: also known as the Air Quality District. 00:09:33.500 --> 00:09:40.700 Unknown: Dr. Ayala is an internationally recognized expert on air quality, climate science and policy. 00:09:41.240 --> 00:09:47.280 Unknown: He brings more than 30 years of experience spanning industry, government, and academia, 00:09:47.860 --> 00:09:51.460 SPEAKER_01: including leadership roles as Deputy Executive Officer 00:09:51.460 --> 00:09:55.580 SPEAKER_01: at the California Air Resources Board, Professor of Engineering 00:09:56.000 --> 00:10:01.780 Unknown: at the West Virginia University, and Design Engineer at Teledyne Ryan Aeronautical. 00:10:02.080 --> 00:10:04.780 Unknown: He's a mechanical engineer by training. 00:10:05.500 --> 00:10:11.620 SPEAKER_01: Dr. Ayala holds a bachelor's, a master's, and a doctorate degree at UC Davis. 00:10:11.620 --> 00:10:18.660 SPEAKER_01: And he serves on numerous boards and academic advisory committees and is published extensively. 00:10:19.660 --> 00:10:23.300 Unknown: So a little bit about the topics Alberto will be discussing. 00:10:23.779 --> 00:10:30.099 SPEAKER_01: So the Air Quality District's mission is to achieve state and federal clean air and climate goals 00:10:30.740 --> 00:10:36.159 Unknown: by tracking air quality every day, reducing pollution through programs and incentives, 00:10:36.620 --> 00:10:39.819 Unknown: and ensuring local businesses follow clean air rules. 00:10:40.439 --> 00:10:46.859 SPEAKER_01: So as an air quality regulator and expert, Dr. Ayala will educate us on the difference 00:10:46.859 --> 00:10:53.099 SPEAKER_01: between criteria pollutants that affect human health versus greenhouse gas emissions 00:10:53.459 --> 00:10:54.779 SPEAKER_01: that have global impacts. 00:10:55.159 --> 00:11:00.639 Unknown: He'll share that SMUD's thermal power plants are a beneficial energy source in our region. 00:11:01.659 --> 00:11:03.199 Unknown: They have a good compliance history. 00:11:03.899 --> 00:11:06.039 Unknown: They help with regional decarbonization. 00:11:06.479 --> 00:11:11.639 Unknown: And they only make up about 1 to 3% of our criteria pollutant inventory in Sacramento. 00:11:12.099 --> 00:11:17.479 Unknown: He'll highlight that the air quality concerns in Sacramento are cars, trucks, 00:11:17.959 --> 00:11:22.319 SPEAKER_01: heavy duty vehicles, off-road equipment, and wood-burning stoves. 00:11:23.120 --> 00:11:28.080 SPEAKER_01: He'll emphasize the importance of SMUD's electrification programs to emission reduction 00:11:28.780 --> 00:11:29.920 SPEAKER_01: and improve air quality. 00:11:30.820 --> 00:11:36.680 SPEAKER_01: And he'll commence men on our progress we've made and encourage us to continue to partner together 00:11:37.180 --> 00:11:41.600 Unknown: with the Air District as well as others on the energy transition. 00:11:42.800 --> 00:11:48.460 Unknown: And then our second presenter will be Dr. Liz Gill, who's the program manager 00:11:48.460 --> 00:11:52.420 SPEAKER_01: for the Electricity Resources Analysis Branch at the CEC. 00:11:53.500 --> 00:11:58.180 Unknown: Dr. Gill manages CEC's reliability, electricity modeling, 00:11:58.580 --> 00:12:01.259 SPEAKER_01: and distributed energy resource analysis teams. 00:12:02.060 --> 00:12:07.120 Unknown: Previously, she was a special advisor and then Chief of Staff to Chief Chair Gunda. 00:12:08.120 --> 00:12:17.080 Unknown: She joined the CEC in 2019 to serve as the technical lead on the 2021 SB100 Joint Agency Report. 00:12:17.879 --> 00:12:22.980 Unknown: And prior to the CEC, she was the grid policy director at the Center 00:12:23.139 --> 00:12:26.580 SPEAKER_01: for Energy Efficiency and Renewable Technologies. 00:12:27.300 --> 00:12:31.520 Unknown: She holds a doctorate in chemical engineering from UC Davis. 00:12:32.620 --> 00:12:35.560 Unknown: So a little bit about the topics that Dr. Gill will cover. 00:12:36.259 --> 00:12:43.960 Unknown: SB100 established a landmark policy requiring renewable energy and zero carbon resource supply, 00:12:44.320 --> 00:12:49.460 Unknown: 100% of electric retail sales by 2045. 00:12:50.519 --> 00:12:54.879 SPEAKER_01: It requires the CEC, the California Public Utilities Commission, 00:12:55.280 --> 00:13:00.960 Unknown: and the California Air Resources Board to submit a report to the legislature every four years. 00:13:01.680 --> 00:13:08.540 Unknown: The SB100 Joint Agency Report includes several areas, policy review in the areas of technical, 00:13:09.019 --> 00:13:16.099 Unknown: safety, affordability, and reliability, reliability benefits and impacts, financial costs 00:13:16.099 --> 00:13:19.819 SPEAKER_01: and benefits, barriers and benefits of achieving the policy, 00:13:20.519 --> 00:13:23.559 Unknown: and alternative scenarios, costs and benefits of each. 00:13:24.399 --> 00:13:31.719 Unknown: Dr. Liz Gill will present the 2025 SB100 Joint Agency Report draft results and the latest studies. 00:13:32.219 --> 00:13:38.379 Unknown: So as we listen to our panel experts, I want to highlight, as was mentioned 00:13:38.379 --> 00:13:43.179 SPEAKER_01: in the April zero carbon plan update, that we have an integrated resource plan, 00:13:43.559 --> 00:13:48.139 Unknown: otherwise known as the IRP, process that is kicking off in October. 00:13:48.879 --> 00:13:53.299 Unknown: So the information we're hearing tonight is great groundwork for that process. 00:13:53.980 --> 00:13:57.820 Unknown: So do be thinking about that process as we listen to our presenters. 00:13:58.860 --> 00:14:03.200 Unknown: And last but not least, I just wanted to thank all the speakers for joining us here tonight. 00:14:04.100 --> 00:14:07.919 Unknown: Thanks so much for taking time out of your day, your busy lives to be here. 00:14:08.779 --> 00:14:11.679 Unknown: And possibly navigating that Highway 50 closure. 00:14:12.720 --> 00:14:17.879 SPEAKER_01: And we sincerely appreciate the collaboration and sharing your knowledge tonight. 00:14:18.179 --> 00:14:21.200 Unknown: So with that, I'd like to invite Dr. Alberto Ayala. 00:14:21.759 --> 00:14:22.059 SPEAKER_01: Thank you. 00:14:29.580 --> 00:14:33.980 Unknown: Oh, there you go. 00:14:34.259 --> 00:14:35.000 SPEAKER_04: Somebody's got them. 00:14:35.059 --> 00:14:35.460 SPEAKER_04: Thank you. 00:14:36.460 --> 00:14:38.420 SPEAKER_04: Well, thank you for the invitation. 00:14:38.420 --> 00:14:41.519 SPEAKER_04: It's always, always such a pleasure to come before you. 00:14:41.519 --> 00:14:49.360 SPEAKER_04: And I really appreciate you wanting to spend a few minutes talking about air quality 00:14:49.360 --> 00:14:55.440 SPEAKER_04: and specifically the progress, obviously, that together we are making. 00:14:56.220 --> 00:15:01.280 SPEAKER_04: We are such a fan of SMUD and some of the things you're doing with the zero carbon plan. 00:15:01.280 --> 00:15:04.840 SPEAKER_04: We're just happy to continue to support you to the extent that we can. 00:15:04.840 --> 00:15:11.920 SPEAKER_04: So I'm going to provide some brief remarks and obviously we'll stick around for Q&A 00:15:11.920 --> 00:15:13.340 SPEAKER_04: and discussion. 00:15:13.399 --> 00:15:19.340 SPEAKER_04: So perhaps before we get into the specifics, and I have a brief presentation, 00:15:19.340 --> 00:15:24.300 SPEAKER_04: but maybe it's a good idea to frame the conversation. 00:15:24.620 --> 00:15:28.740 SPEAKER_04: I'm going to show you evidence that suggests 00:15:28.740 --> 00:15:32.300 SPEAKER_04: that our air quality hasn't been better in the last 25 years. 00:15:32.299 --> 00:15:35.099 SPEAKER_04: It's remarkable what the Sacramento region has achieved. 00:15:35.419 --> 00:15:39.399 SPEAKER_04: And clearly, I'm going to make the point that you have played a key role. 00:15:39.799 --> 00:15:41.219 SPEAKER_04: But obviously we're not there yet. 00:15:41.419 --> 00:15:45.240 SPEAKER_04: The fact that we're celebrating progress doesn't mean that our job is done. 00:15:45.240 --> 00:15:47.039 SPEAKER_04: And we understand that. 00:15:47.039 --> 00:15:52.059 SPEAKER_04: There's still major sources of air pollution, as was discussed earlier. 00:15:52.479 --> 00:15:56.839 SPEAKER_04: Transportation by far is going to continue to be the lion's share 00:15:56.839 --> 00:16:00.519 SPEAKER_04: of what we call conventional air pollution as well as carbon pollution, 00:16:00.759 --> 00:16:04.960 Unknown: greenhouse gases or climate change pollutants, whatever we want to call them. 00:16:05.819 --> 00:16:07.840 SPEAKER_04: Obviously, every source of pollution matters. 00:16:07.840 --> 00:16:11.299 SPEAKER_04: This is not to say that anybody's going to get a free pass. 00:16:11.299 --> 00:16:16.620 SPEAKER_04: But at the same time, it's instructive to keep things in perspective, especially because we know 00:16:16.620 --> 00:16:23.019 SPEAKER_04: that getting to the 90% of reductions is the easy part, is catching the last 10%. 00:16:23.019 --> 00:16:26.639 SPEAKER_04: Whether it's transportation sector, whether it's industrial pollution, 00:16:26.639 --> 00:16:28.740 SPEAKER_04: whether it's your power plants. 00:16:28.759 --> 00:16:32.159 SPEAKER_04: It's getting that last 10% is going to be the key. 00:16:32.159 --> 00:16:38.240 SPEAKER_04: And I think that's why I'm just so delighted that we have such a good partnership, 00:16:38.580 --> 00:16:42.440 SPEAKER_04: not only between our agencies, but some of our other partners in the region. 00:16:42.659 --> 00:16:43.419 SPEAKER_04: Next slide, please. 00:16:45.360 --> 00:16:49.320 Unknown: So when I talk about Sacramento region, I think it's important, particularly for SMUD, 00:16:49.320 --> 00:16:52.759 SPEAKER_04: because in our world, it's the multi-county region. 00:16:53.360 --> 00:16:58.279 Unknown: And this matters because the evidence that I'm going to show you next 00:16:58.699 --> 00:17:00.579 SPEAKER_04: applies to this large region. 00:17:01.240 --> 00:17:07.039 SPEAKER_04: And again, to me, it's remarkable that we got this big area in the capital region 00:17:07.339 --> 00:17:12.220 SPEAKER_04: to actually meet and attain the National Immunocorrelation Standards, 00:17:12.220 --> 00:17:14.019 SPEAKER_04: as we call it, attainment of the standards. 00:17:14.399 --> 00:17:15.539 SPEAKER_04: And how do we know this? 00:17:15.539 --> 00:17:17.519 SPEAKER_04: Well, we obviously have evidence. 00:17:17.519 --> 00:17:23.839 SPEAKER_04: We collect monitoring data day in, day out, 24-7, 365 a day. 00:17:24.240 --> 00:17:32.480 SPEAKER_04: But recently, we have seen a very helpful technology development in the availability 00:17:32.480 --> 00:17:36.279 SPEAKER_04: of these portable sensors that people go online and then buy them for a couple hundred bucks. 00:17:36.859 --> 00:17:40.359 SPEAKER_04: And what's great for us is that they are willing to share the information with us. 00:17:40.639 --> 00:17:44.199 SPEAKER_04: What that means is Sacramento and in general, California, 00:17:44.720 --> 00:17:49.659 SPEAKER_04: we are one of the most densely monitored areas in the country, if not the world. 00:17:49.959 --> 00:17:51.779 SPEAKER_04: And that is great, because why? 00:17:51.859 --> 00:17:52.839 SPEAKER_04: Information is power. 00:17:52.980 --> 00:17:53.799 SPEAKER_04: Data is power. 00:17:53.799 --> 00:17:59.339 SPEAKER_04: We cannot manage our air pollution problem if we don't measure the air pollution in our air. 00:17:59.519 --> 00:18:00.240 SPEAKER_04: Next slide, please. 00:18:01.259 --> 00:18:02.700 Unknown: So here's the evidence. 00:18:02.700 --> 00:18:08.500 SPEAKER_04: If you look at, let's see, on the left is ozone concentrations in our ambient air. 00:18:08.500 --> 00:18:10.559 SPEAKER_04: Again, the entire multi-county region. 00:18:11.059 --> 00:18:14.099 Unknown: And on the right, you have PM, particle pollution. 00:18:14.660 --> 00:18:20.220 Unknown: This is a trend line over the last 25 years of monitoring in the Sacramento region. 00:18:20.579 --> 00:18:22.279 SPEAKER_04: Okay? Never mind the details. 00:18:22.700 --> 00:18:25.360 SPEAKER_04: There's some oscillations which are normal. 00:18:25.700 --> 00:18:32.019 SPEAKER_04: But what I want you to focus on is the trend of those two lines trending down. 00:18:32.019 --> 00:18:34.900 SPEAKER_04: That's exactly the kind of progress we want to see. 00:18:35.400 --> 00:18:40.640 SPEAKER_04: And the fact that think about where Sacramento was, what Sacramento was 25 years ago. 00:18:41.339 --> 00:18:44.819 Unknown: If you were cars, for your people, our economy was not what it is today, 00:18:45.220 --> 00:18:47.120 Unknown: we want to continue this progress. 00:18:47.199 --> 00:18:52.879 SPEAKER_04: And clearly working with SMUD, you have such a leading role in our region to continue to thrive 00:18:52.879 --> 00:18:57.979 SPEAKER_04: and achieve our multiple economic and environmental goals. 00:18:58.399 --> 00:18:59.899 SPEAKER_04: But we can do this together. 00:19:00.059 --> 00:19:01.500 SPEAKER_04: I think that's the key. 00:19:01.500 --> 00:19:02.259 SPEAKER_04: Next slide, please. 00:19:03.459 --> 00:19:06.219 Unknown: But obviously, there's more to the story. 00:19:06.399 --> 00:19:11.199 Unknown: Regional air quality is very important, but it's not the whole story. 00:19:11.919 --> 00:19:15.699 SPEAKER_04: We do know that we have communities that are disproportionately impacted. 00:19:16.059 --> 00:19:22.720 SPEAKER_04: And this is where Assembly Bill 617, community reputation comes into being seven years ago. 00:19:23.220 --> 00:19:26.000 Unknown: And you are working very closely with us on this. 00:19:26.000 --> 00:19:32.100 SPEAKER_04: Because it's broad recognition that while regional air quality has improved, again, 00:19:32.100 --> 00:19:36.039 SPEAKER_04: there are actual communities in our region that need a little more help. 00:19:36.519 --> 00:19:40.600 SPEAKER_04: And what I'm going to say about AB 617 is there's different elements to it. 00:19:40.599 --> 00:19:45.919 SPEAKER_04: But the most important is the state requires us to develop an emission reduction plan, 00:19:46.500 --> 00:19:48.980 SPEAKER_04: which we have, and we thank you for the help. 00:19:48.980 --> 00:19:50.619 Unknown: I'm going to talk about it in a minute. 00:19:50.899 --> 00:19:53.599 Unknown: But before I move on, I do have to acknowledge one of the things 00:19:53.599 --> 00:19:55.899 SPEAKER_04: that I worry most about is the climate crisis. 00:19:56.439 --> 00:19:58.639 SPEAKER_04: I mean, clearly, it's not going away. 00:19:59.019 --> 00:20:06.279 Unknown: Clearly, the current political landscape in D.C. where fossil fuel energy is okay, 00:20:06.619 --> 00:20:11.559 SPEAKER_04: is now going to lead us in a good direction. 00:20:11.799 --> 00:20:20.559 SPEAKER_04: I asked our IT staff to add to our website, if you're familiar with our AQI, 00:20:20.660 --> 00:20:26.740 SPEAKER_04: right below it is the global mean concentration of CO2. 00:20:27.639 --> 00:20:30.720 Unknown: And that matters because that's really the indicator where we are. 00:20:31.279 --> 00:20:32.920 Unknown: And this is not today. 00:20:32.920 --> 00:20:35.700 SPEAKER_04: This is a couple days ago when I was putting together the slides. 00:20:35.720 --> 00:20:38.880 SPEAKER_04: But we're at 428 parts per million. 00:20:39.960 --> 00:20:46.120 SPEAKER_04: The Paris Agreement of 2015 committed the world to 350 parts per million. 00:20:46.819 --> 00:20:49.819 Unknown: So we're way past where we should have been. 00:20:50.460 --> 00:20:55.559 SPEAKER_04: And the question for all of us should be, did we hit the point of no return? 00:20:55.860 --> 00:20:58.080 SPEAKER_04: Did we hit the point where we're just not going to be able 00:20:58.080 --> 00:21:01.519 SPEAKER_04: to bring back the balance that the planet needs? 00:21:02.420 --> 00:21:04.779 SPEAKER_04: Unfortunately, it's not us that are going to see the effects. 00:21:05.819 --> 00:21:09.680 Unknown: It's maybe not even our children, but it's the generations that will come. 00:21:10.259 --> 00:21:13.940 SPEAKER_04: And unfortunately, again, it's going to be a matter of the rich and the poor countries. 00:21:13.940 --> 00:21:17.759 SPEAKER_04: The rich countries are going to pay their way out of the problem. 00:21:18.299 --> 00:21:22.220 SPEAKER_04: And then the countries that have fewer resources are going to be the ones 00:21:22.220 --> 00:21:24.519 SPEAKER_04: that are going to see the brunt of the impact. 00:21:25.440 --> 00:21:27.740 Unknown: Let us continue to work together and hope that things change 00:21:27.740 --> 00:21:29.460 SPEAKER_04: so that we can try to get back on track. 00:21:29.460 --> 00:21:30.259 SPEAKER_04: Next slide, please. 00:21:30.259 --> 00:21:37.559 SPEAKER_04: So our community selected by the state is down in Sacramento, Florin. 00:21:38.059 --> 00:21:42.900 Unknown: And the green boundary is the designated community. 00:21:43.220 --> 00:21:44.059 Unknown: Why that matters? 00:21:44.059 --> 00:21:48.440 SPEAKER_04: Because you've got some of your power plants within the boundary. 00:21:48.980 --> 00:21:53.240 Unknown: And when you have emission sources within the AB 617 community, 00:21:53.660 --> 00:21:56.180 Unknown: the expectation is that we take additional action. 00:21:56.180 --> 00:22:00.380 SPEAKER_04: And again, we thank you for helping us with community engagement. 00:22:00.380 --> 00:22:04.980 SPEAKER_04: We've had a tour of your power plant for the community because they wanted to see. 00:22:04.980 --> 00:22:06.140 Unknown: They don't have to listen to us. 00:22:06.140 --> 00:22:06.980 SPEAKER_04: They don't have to listen to you. 00:22:06.980 --> 00:22:09.680 SPEAKER_04: Why don't you come out and actually see what is taking place? 00:22:10.160 --> 00:22:15.940 SPEAKER_04: I think that's the way that we develop trust, the way that we engage the community in the way 00:22:15.940 --> 00:22:19.160 SPEAKER_04: that AB 617 is expecting us and the way that we make progress. 00:22:19.160 --> 00:22:19.820 SPEAKER_04: So thank you for that. 00:22:19.820 --> 00:22:22.400 SPEAKER_04: Next slide, please. 00:22:23.000 --> 00:22:24.259 Unknown: It's all about electrification. 00:22:24.500 --> 00:22:28.759 SPEAKER_04: And our community emission reduction plan, the commitment that we made, 00:22:29.100 --> 00:22:33.840 Unknown: has got a number of strategies, including the electrification strategies that you see here. 00:22:34.120 --> 00:22:39.160 SPEAKER_04: And again, thank you because you are the ones that teed up us working together 00:22:39.160 --> 00:22:42.440 SPEAKER_04: on electrification of appliances, which absolutely is key. 00:22:42.800 --> 00:22:50.320 SPEAKER_04: Not only in terms of the general clean energy transition, but using gas appliances 00:22:50.319 --> 00:22:54.200 SPEAKER_04: in the home leads to poor indoor air quality. 00:22:54.579 --> 00:22:58.099 Unknown: And in some cases, we do know that the concentrations in the home, 00:22:58.519 --> 00:23:03.480 Unknown: when you don't have good ventilation or a hood, can be even higher than outside pollution, right? 00:23:03.539 --> 00:23:07.039 SPEAKER_04: But it's a little known fact because as air quality agencies, 00:23:07.039 --> 00:23:09.759 SPEAKER_04: our authority stops at the front door. 00:23:10.319 --> 00:23:14.899 Unknown: And if you're a private residence, that's your private world, right? 00:23:14.899 --> 00:23:16.439 SPEAKER_04: So it's a difficult one. 00:23:16.439 --> 00:23:18.059 SPEAKER_04: It's a difficult nut to crack. 00:23:18.059 --> 00:23:21.759 SPEAKER_04: And I think electrification of appliances is going to be absolutely key 00:23:21.759 --> 00:23:24.259 SPEAKER_04: to give us a chance to make progress. 00:23:24.259 --> 00:23:25.079 SPEAKER_04: Next slide, please. 00:23:26.799 --> 00:23:29.159 Unknown: We're celebrating the progress, October 7. 00:23:29.159 --> 00:23:33.559 SPEAKER_04: And again, thank you for committing to work with us and many of our partners here. 00:23:33.559 --> 00:23:38.639 SPEAKER_04: I mean, to me, this is remarkable because look at the collection of organizations 00:23:38.639 --> 00:23:40.559 SPEAKER_04: that come together with a common goal, right? 00:23:40.960 --> 00:23:44.839 SPEAKER_04: And this is how we are going to continue progress in the Sacramento region. 00:23:44.839 --> 00:23:48.339 SPEAKER_04: So thank you for being such an integral part of our partnership. 00:23:48.339 --> 00:23:49.119 SPEAKER_04: Next slide, please. 00:23:51.159 --> 00:23:51.919 Unknown: All right. 00:23:51.919 --> 00:23:57.059 SPEAKER_04: So now specifics, just to kind of conclude and get to some information 00:23:57.059 --> 00:24:02.579 SPEAKER_04: about your zero carbon plan and the remaining power plans that you are going to have 00:24:02.579 --> 00:24:04.259 SPEAKER_04: to continue to operate for good reason. 00:24:04.319 --> 00:24:05.220 SPEAKER_04: So next slide. 00:24:05.759 --> 00:24:09.959 Unknown: So here's the pollution that we track. 00:24:10.359 --> 00:24:13.740 SPEAKER_04: There's many other pollutants, but these are the two most important ones. 00:24:14.279 --> 00:24:18.180 SPEAKER_04: NOX is important because it contributes to ozone. 00:24:19.220 --> 00:24:23.279 Unknown: And particles, again, are important because it's PM. 00:24:23.279 --> 00:24:29.099 SPEAKER_04: Its exposure to PM leads to adverse health effects. 00:24:29.539 --> 00:24:33.039 SPEAKER_04: And when you look at what we call the inventory, the pie chart, 00:24:33.039 --> 00:24:36.299 SPEAKER_04: this is basically an accounting of all the sources. 00:24:36.299 --> 00:24:39.759 SPEAKER_04: And you see that when it comes to NOX is cars, is transportation sector. 00:24:40.160 --> 00:24:41.200 Unknown: We have too many of them. 00:24:41.519 --> 00:24:42.519 SPEAKER_04: We drive them a lot. 00:24:42.920 --> 00:24:47.440 Unknown: And unfortunately, even as internal combustion engines have gotten really clean, 00:24:47.740 --> 00:24:50.120 Unknown: there is still combustion coming out of them, obviously. 00:24:50.120 --> 00:24:56.360 SPEAKER_04: And you can see the contribution from your power plants being about 3% of the NOX. 00:24:56.360 --> 00:24:58.660 SPEAKER_04: On the PM side is a similar story. 00:24:59.000 --> 00:25:00.160 SPEAKER_04: We have other sources. 00:25:00.600 --> 00:25:06.819 SPEAKER_04: But really from an emission standpoint, power plants are, and I'll tell you in a minute why, 00:25:06.819 --> 00:25:08.840 SPEAKER_04: but power plants are not a significant contributor. 00:25:08.840 --> 00:25:09.600 SPEAKER_04: Next slide, please. 00:25:10.039 --> 00:25:12.079 SPEAKER_04: The story is similar for greenhouse gases. 00:25:12.139 --> 00:25:15.079 SPEAKER_04: The share of the pie grows a little. 00:25:15.619 --> 00:25:19.659 Unknown: But again, you can see that this is the state inventory for greenhouse gases that comes 00:25:19.659 --> 00:25:20.919 SPEAKER_04: out of the Air Resources Board. 00:25:21.339 --> 00:25:23.480 Unknown: And again, transportation is going to be the lion's share. 00:25:23.480 --> 00:25:27.599 SPEAKER_04: That is where we use most of the fossil fuel that keeps us moving. 00:25:27.599 --> 00:25:32.079 SPEAKER_04: And that's why the emphasis the state has put on electrifying the transportation sector. 00:25:32.379 --> 00:25:36.459 SPEAKER_04: We have to do more than just get EVs to replace internal combustion 00:25:36.819 --> 00:25:39.680 SPEAKER_04: because congestion solves a problem, right, as we have seen it. 00:25:40.100 --> 00:25:43.900 SPEAKER_04: But we have to start with the EV revolution first. 00:25:44.120 --> 00:25:44.539 SPEAKER_04: Next slide. 00:25:45.539 --> 00:25:48.079 Unknown: I asked my staff to put this together. 00:25:48.079 --> 00:25:50.539 SPEAKER_04: I'm big on putting things in perspective. 00:25:50.539 --> 00:25:56.279 SPEAKER_04: So what we did here is we are presenting four pollutants, NOX, PM, methane, 00:25:56.400 --> 00:25:59.559 SPEAKER_04: which last time I was in front of you, we talked a little bit about, 00:25:59.559 --> 00:26:01.559 SPEAKER_04: and then CO2, carbon dioxide. 00:26:02.039 --> 00:26:08.039 Unknown: And what I asked my engineers is to do a simple comparison in terms of the emissions 00:26:08.039 --> 00:26:13.619 SPEAKER_04: that come from your power plants to a typical car, which is about a 12, 13-year-old car, 00:26:13.919 --> 00:26:16.839 SPEAKER_04: and then a brand new car, a model year 2026. 00:26:17.419 --> 00:26:19.579 SPEAKER_04: So the blue is the typical car. 00:26:19.960 --> 00:26:23.179 Unknown: The red columns are the newer car. 00:26:23.179 --> 00:26:25.519 SPEAKER_04: And then the green is your consumer's power plant. 00:26:26.159 --> 00:26:29.440 Unknown: I think this makes sense because again, we're comparing emissions. 00:26:29.799 --> 00:26:35.059 Unknown: The environment doesn't care where they come from, where there's a car, a power plant, a stove. 00:26:35.440 --> 00:26:39.980 Unknown: And we're comparing that as a function of the energy, the usable energy that we get 00:26:39.980 --> 00:26:43.460 SPEAKER_04: out of the fossil fuel because ultimately that is why we are combusting. 00:26:43.460 --> 00:26:45.240 SPEAKER_04: And you can see the result. 00:26:45.320 --> 00:26:52.200 SPEAKER_04: And it's remarkable and it makes a lot of sense because gas turbines are really, really efficient. 00:26:53.160 --> 00:26:55.680 Unknown: An internal combustion engine is not. 00:26:56.680 --> 00:27:01.799 Unknown: And humans who are driving those engines are terrible because we're always, 00:27:02.299 --> 00:27:06.900 Unknown: every time we step on the accelerator, that's why we get this kind of pollution. 00:27:06.900 --> 00:27:10.279 SPEAKER_04: So again, I just wanted to present this just to kind of put things in perspective. 00:27:10.279 --> 00:27:16.160 SPEAKER_04: It is important to deal with any remaining source of combustion emissions. 00:27:16.860 --> 00:27:18.600 Unknown: But we have to be reasonable about this. 00:27:18.600 --> 00:27:21.920 SPEAKER_04: And again, I hope this makes the point. 00:27:21.920 --> 00:27:22.380 SPEAKER_04: Next slide. 00:27:23.180 --> 00:27:25.420 Unknown: Can you go back to that slide? 00:27:25.780 --> 00:27:30.140 Unknown: I just want to make sure I understand this. 00:27:30.820 --> 00:27:41.440 SPEAKER_07: What you're saying is that a typical car is going to produce that much pollution in the blue 00:27:41.860 --> 00:27:47.740 SPEAKER_07: and that our power plants are going to produce the green pollution. 00:27:48.340 --> 00:27:50.000 SPEAKER_07: And is that over a year? 00:27:50.000 --> 00:27:51.260 SPEAKER_07: Is that a month? 00:27:52.180 --> 00:27:53.460 SPEAKER_07: What's the timeline? 00:27:53.519 --> 00:28:00.099 SPEAKER_04: So this is the amount of pollution that comes from the three sources that you listed 00:28:00.700 --> 00:28:02.940 SPEAKER_04: as a function of the energy output. 00:28:03.619 --> 00:28:10.259 Unknown: So the energy output of an internal combustion engine goes to move the car. 00:28:10.940 --> 00:28:15.859 SPEAKER_04: The energy output of your turbine gas plants is to generate the power, right? 00:28:16.400 --> 00:28:19.160 Unknown: This is a good way to compare things because otherwise, 00:28:19.160 --> 00:28:20.559 SPEAKER_04: how do you compare a power plant to a car? 00:28:20.879 --> 00:28:26.279 Unknown: But if we consider how much energy we're getting out of that amount of fuel, 00:28:26.480 --> 00:28:31.000 SPEAKER_04: which ultimately, again, that's the reason we use natural gas for your turbines 00:28:31.000 --> 00:28:37.440 SPEAKER_04: and gasoline for our cars, this is an apples to apples way to compare them. 00:28:38.039 --> 00:28:43.039 Unknown: And I'm glad that is catching your attention because you wouldn't think so, right? 00:28:43.039 --> 00:28:46.319 SPEAKER_04: I mean, the power plant is huge, so you think there's a lot of pollution. 00:28:47.039 --> 00:28:50.299 Unknown: But again, if we look at this in a way that can be an apples to apples, 00:28:50.879 --> 00:28:53.619 SPEAKER_04: and this makes a lot of sense just from an engineering standpoint, 00:28:53.759 --> 00:28:56.919 SPEAKER_04: turbines are really efficient, internal combustion engines are not. 00:28:56.919 --> 00:28:57.919 SPEAKER_04: Thank you. 00:28:57.919 --> 00:28:58.639 SPEAKER_04: And you see it here. 00:28:59.139 --> 00:28:59.559 SPEAKER_04: Next slide. 00:29:01.000 --> 00:29:06.859 Unknown: We talked about conventional pollution and green gas gases, and Joyce made the point. 00:29:07.279 --> 00:29:10.659 SPEAKER_04: Conventional pollutions obviously have a health impacts, 00:29:11.119 --> 00:29:13.319 Unknown: and green gas gases have a global impact. 00:29:13.319 --> 00:29:17.000 SPEAKER_04: Now, it gets a little tricky because there's some interaction between the two. 00:29:18.039 --> 00:29:21.579 SPEAKER_04: We know that ozone, which is a conventional air pollutant, 00:29:21.859 --> 00:29:23.740 Unknown: does contribute to the warming effect. 00:29:24.299 --> 00:29:25.879 Unknown: Particles also have a role. 00:29:26.279 --> 00:29:32.500 SPEAKER_04: So while there's not a one-to-one correlation, it is good to think 00:29:32.500 --> 00:29:36.839 SPEAKER_04: about the very tight nexus between the two because most of these emissions, 00:29:37.000 --> 00:29:40.899 SPEAKER_04: one or the other, come from our use of fossil fuels. 00:29:41.259 --> 00:29:44.580 SPEAKER_04: And the way we get the energy out of that fossil fuel, nine out of ten times, 00:29:44.580 --> 00:29:48.660 SPEAKER_04: is we're going to burn it in an engine of some sort, right? 00:29:49.060 --> 00:29:52.900 Unknown: So we are very interested as an equality agency to participate 00:29:52.900 --> 00:29:56.780 SPEAKER_04: in the clean energy transition because again, if we can solve one, 00:29:57.300 --> 00:29:59.580 Unknown: we have the co-benefit of solving the other problem. 00:30:00.120 --> 00:30:00.620 Unknown: Next slide. 00:30:03.060 --> 00:30:10.360 Unknown: We commend and applaud your zero carbon plan, and as amazing and remarkable, that is, 00:30:10.759 --> 00:30:17.319 Unknown: our role is to continue to explore innovations in terms of cleaner technology that could fit 00:30:17.319 --> 00:30:19.639 SPEAKER_04: within the framework of your zero carbon plan. 00:30:19.959 --> 00:30:22.959 SPEAKER_04: What I mean by that is we have linear generators. 00:30:22.959 --> 00:30:28.000 SPEAKER_04: Everybody's talking about data centers, and we should be, but it's important 00:30:28.039 --> 00:30:34.459 Unknown: to understand linear generators relative to diesel gensets are 90% cleaner. 00:30:35.460 --> 00:30:41.579 Unknown: And we like them because we don't let the enemy, we don't let the perfect be the enemy 00:30:41.579 --> 00:30:45.620 SPEAKER_04: of the good, meaning, yeah, these are not zero emissions, they're not electric, 00:30:45.960 --> 00:30:47.220 Unknown: but they're 90% cleaner. 00:30:47.720 --> 00:30:51.059 Unknown: So if we're going to develop data centers in the region, which we are, 00:30:51.700 --> 00:30:53.779 Unknown: this is the kind of technology we want to see. 00:30:54.700 --> 00:30:59.480 Unknown: Thermal batteries, the peak energy development that many of you attended, 00:30:59.840 --> 00:31:03.759 Unknown: those are great developments, and obviously, you've heard me talk about hydrogen 00:31:03.759 --> 00:31:07.480 SPEAKER_04: in the past, we're going to continue to speak about hydrogen because we do think 00:31:07.900 --> 00:31:09.799 Unknown: that it presents a unique opportunity for us. 00:31:09.799 --> 00:31:10.559 SPEAKER_04: Next slide, please. 00:31:11.160 --> 00:31:12.039 Unknown: Now I'm getting to the end. 00:31:12.400 --> 00:31:19.839 SPEAKER_04: This is simply just to hopefully provide some inspiration because what you see here, 00:31:19.839 --> 00:31:26.279 SPEAKER_04: every dot is a project that we have a direct hand on that is related to hydrogen. 00:31:26.779 --> 00:31:31.799 Unknown: Whether making the gas, making the fueling availability of the gas so you can put it 00:31:31.799 --> 00:31:34.899 SPEAKER_04: in an engine or in a car, whatever, or both. 00:31:35.019 --> 00:31:40.000 SPEAKER_04: And you can see without getting into the detail that the number of dots is increasing, 00:31:40.359 --> 00:31:44.059 SPEAKER_04: and that's what we want to see because every one of these dots is going 00:31:44.059 --> 00:31:45.480 SPEAKER_04: to present an opportunity for the future. 00:31:46.180 --> 00:31:52.759 Unknown: And if you listen to what the state loan range planning has to say, hydrogen has to play a role. 00:31:53.539 --> 00:31:56.940 Unknown: And we are trying to understand what is the proper role 00:31:56.940 --> 00:31:59.180 SPEAKER_04: for the hydrogen in the Sacramento region. 00:31:59.680 --> 00:32:00.319 Unknown: Next slide. 00:32:01.200 --> 00:32:04.579 Unknown: And this is my last slide in terms of information. 00:32:04.579 --> 00:32:06.200 SPEAKER_04: This is the latest development. 00:32:06.200 --> 00:32:09.019 SPEAKER_04: We're going to procure this power unit. 00:32:09.019 --> 00:32:11.279 SPEAKER_04: It's essentially a fuel cell inside it. 00:32:11.919 --> 00:32:13.819 Unknown: It's mobile, as you can see it. 00:32:13.819 --> 00:32:15.619 SPEAKER_04: So we're going to pull that around. 00:32:16.099 --> 00:32:19.599 Unknown: And it's going to require hydrogen, and it's going to be zero power. 00:32:19.960 --> 00:32:20.779 Unknown: Why are we doing this? 00:32:21.579 --> 00:32:22.539 Unknown: To raise awareness. 00:32:22.879 --> 00:32:24.200 Unknown: Because people still don't know. 00:32:24.779 --> 00:32:29.079 Unknown: There's still a lot of misinformation and confusion about hydrogen and fuel cells 00:32:29.079 --> 00:32:29.759 SPEAKER_04: and how does that work. 00:32:29.779 --> 00:32:33.740 SPEAKER_04: Well, you know, we're going to take this to festivals and farmers markets 00:32:33.740 --> 00:32:38.839 SPEAKER_04: and community meetings and let people kick the tires and see what the future holds. 00:32:38.839 --> 00:32:44.099 SPEAKER_04: And we think that this is a good investment of some modest dollars. 00:32:44.099 --> 00:32:49.579 SPEAKER_04: And if it catches somebody's attention and they understand what the role of hydrogen is, 00:32:49.640 --> 00:32:52.019 SPEAKER_04: then more power to the technology. 00:32:52.140 --> 00:32:52.579 SPEAKER_04: Next slide. 00:32:53.180 --> 00:32:54.059 Unknown: Elberto. 00:32:54.099 --> 00:32:54.440 SPEAKER_10: Yes. 00:32:54.599 --> 00:32:57.900 SPEAKER_10: I'll be glad to put a trailer hitch on my hydrogen-powered car. 00:32:57.900 --> 00:32:58.319 SPEAKER_10: There you go. 00:32:58.879 --> 00:33:00.539 SPEAKER_10: And pull that thing wherever you need it to go. 00:33:00.539 --> 00:33:02.279 SPEAKER_10: Thank you. 00:33:02.279 --> 00:33:02.679 SPEAKER_04: Thank you. 00:33:02.679 --> 00:33:03.619 SPEAKER_04: I appreciate that. 00:33:03.939 --> 00:33:05.220 SPEAKER_04: It actually has two roles. 00:33:05.419 --> 00:33:06.299 SPEAKER_04: It provides power. 00:33:07.500 --> 00:33:09.740 Unknown: And it charges EVs as well. 00:33:10.079 --> 00:33:12.659 SPEAKER_04: So, anyways, this is my concluding slide. 00:33:12.659 --> 00:33:17.939 SPEAKER_04: Again, I can thank you for what you do, for who you are and what you stand for. 00:33:18.439 --> 00:33:22.480 SPEAKER_04: Your clean energy transition is also our solution to our pollution. 00:33:22.659 --> 00:33:23.139 SPEAKER_04: So thank you. 00:33:23.139 --> 00:33:26.980 SPEAKER_04: We're here to continue to partner and do what we can to support you. 00:33:27.179 --> 00:33:27.439 SPEAKER_04: Thank you. 00:33:28.059 --> 00:33:28.259 Unknown: Thank you. 00:33:28.259 --> 00:33:28.759 Unknown: Dr. Ayala. 00:33:28.759 --> 00:33:35.799 Unknown: We really appreciate your partnership for many, many years 00:33:35.799 --> 00:33:38.539 SPEAKER_02: from the Sacramento Metro Area District. 00:33:38.539 --> 00:33:39.080 SPEAKER_02: So thank you. 00:33:39.600 --> 00:33:42.240 SPEAKER_02: Any questions for Dr. Ayala? 00:33:43.360 --> 00:33:45.120 Unknown: Yeah, I guess I have. 00:33:46.380 --> 00:33:46.880 Unknown: Sure. 00:33:46.880 --> 00:33:52.500 SPEAKER_05: So the, we're all dedicated to cleaning the air as best we can. 00:33:52.500 --> 00:33:56.920 SPEAKER_05: And I know a lot of these regulations get handed out by elected officials. 00:33:56.920 --> 00:34:00.360 SPEAKER_05: And they're usually pretty prescriptive into what you're supposed to do 00:34:00.800 --> 00:34:04.300 SPEAKER_05: and how you're supposed to do it. 00:34:04.960 --> 00:34:09.700 Unknown: If you didn't have those sort of mandates, what would you be spending money on? 00:34:09.700 --> 00:34:14.320 SPEAKER_05: Where do we get the most return on investment for improving air quality? 00:34:17.019 --> 00:34:22.220 Unknown: Well, again, if we think of the biggest source, it's transportation. 00:34:22.759 --> 00:34:30.259 Unknown: If I had my way, all the money would go to incentivized EVs, right? 00:34:30.259 --> 00:34:32.919 SPEAKER_04: And let me footnote that. 00:34:33.759 --> 00:34:40.239 Unknown: The federal administration has been very efficient rolling back standards. 00:34:40.899 --> 00:34:43.559 Unknown: So now there's a huge gap that has been created. 00:34:44.319 --> 00:34:46.480 Unknown: We are going to need money to fill it. 00:34:46.980 --> 00:34:50.919 SPEAKER_04: And California, again, is leading the nation in terms of EV adoption. 00:34:51.740 --> 00:34:55.619 SPEAKER_04: Here in the Sacramento region, unfortunately, we're lagging behind. 00:34:55.619 --> 00:34:57.700 SPEAKER_04: We're Sacramento A, so we're not quite as good. 00:34:57.700 --> 00:34:59.360 SPEAKER_04: But again, it would be transportation. 00:34:59.960 --> 00:35:01.880 SPEAKER_04: Because again, that's the biggest source of air pollution. 00:35:02.680 --> 00:35:04.280 SPEAKER_05: Okay. Thanks. 00:35:04.280 --> 00:35:05.920 SPEAKER_05: And thanks for everything you're doing for us. 00:35:06.039 --> 00:35:06.539 SPEAKER_05: Appreciate it. 00:35:07.220 --> 00:35:13.480 SPEAKER_02: And Dr. Ayala, didn't the governor just approve a new $3,500 rebate for EVs in California? 00:35:13.480 --> 00:35:17.000 SPEAKER_02: So that's just come back online because I know the feds got rid of it. 00:35:17.000 --> 00:35:20.579 SPEAKER_02: And that really, we saw a big drop in our EV sales. 00:35:20.579 --> 00:35:24.259 SPEAKER_02: And I felt bad for the car dealers who had invested in the EVs. 00:35:24.259 --> 00:35:26.840 SPEAKER_02: And then hopefully now that will help pick it up. 00:35:26.840 --> 00:35:32.059 SPEAKER_04: My first EV incentive, which is what the governor's calling the program, it's excellent. 00:35:32.199 --> 00:35:36.639 SPEAKER_04: Because it fills the gap that the federal government has left on purpose. 00:35:37.219 --> 00:35:39.440 Unknown: But most importantly, it really makes it easy for people 00:35:39.440 --> 00:35:41.500 SPEAKER_04: because you're putting the incentive on the hood, right? 00:35:41.500 --> 00:35:43.619 SPEAKER_04: So you don't have to worry about filling out applications or anything. 00:35:43.619 --> 00:35:46.259 SPEAKER_04: You just walk in, get your car, and they'll give you the rebate. 00:35:46.259 --> 00:35:47.099 SPEAKER_04: That is really important. 00:35:47.099 --> 00:35:50.440 SPEAKER_04: Make it easy for consumers to adopt the technology. 00:35:50.860 --> 00:35:52.299 Unknown: Thank you for explaining that. 00:35:52.299 --> 00:35:52.799 SPEAKER_02: That's great. 00:35:53.159 --> 00:35:53.340 Unknown: Yeah. 00:35:53.759 --> 00:35:54.139 Unknown: Thank you. 00:35:54.440 --> 00:35:54.940 Unknown: Great. 00:35:54.940 --> 00:35:56.019 SPEAKER_04: I mean, you're out of time. 00:35:56.019 --> 00:36:00.199 SPEAKER_07: Yeah, I want to thank you for being here. 00:36:00.199 --> 00:36:05.900 SPEAKER_07: I want to thank you for your knowledge and your leadership and the community. 00:36:06.340 --> 00:36:11.599 SPEAKER_07: I'm curious, and this may not be something that you'll have the answer to, 00:36:12.000 --> 00:36:19.139 SPEAKER_07: but I know that we have put, I've read about it over and over, measurements, 00:36:19.139 --> 00:36:27.819 SPEAKER_07: equipment that can measure air quality, you know, around our plants or other places. 00:36:28.539 --> 00:36:38.059 SPEAKER_07: What would you tell us about the pollution that our plants are producing? 00:36:39.019 --> 00:36:40.019 Unknown: That's a great question. 00:36:40.380 --> 00:36:41.840 SPEAKER_04: Director, thank you for raising it. 00:36:42.340 --> 00:36:47.320 SPEAKER_04: I've told your staff before, and I'm going to tell you directly again, 00:36:47.920 --> 00:36:52.059 SPEAKER_04: you don't need to go through the trouble of doing fence line monitoring. 00:36:53.000 --> 00:37:00.139 SPEAKER_04: Why? Because we have a very dense network of sensors as well as our regulatory stations, 00:37:00.759 --> 00:37:07.239 SPEAKER_04: and most importantly, because of the years of work that the agency has undertaken, 00:37:07.599 --> 00:37:11.119 SPEAKER_04: we have a good understanding how air pollution in a region gets distributed. 00:37:11.619 --> 00:37:15.059 Unknown: So if you want to know what your impact on your power plant is, we can tell you right away. 00:37:15.119 --> 00:37:17.579 SPEAKER_04: You don't need to put a fence line monitor. 00:37:18.079 --> 00:37:23.039 Unknown: Now, this is probably not what you're expecting from an air quality regulator, right? 00:37:23.459 --> 00:37:26.599 Unknown: But see, that's why it's important to really have the science down, 00:37:26.979 --> 00:37:29.259 Unknown: to really have the facts, to really have the information. 00:37:30.539 --> 00:37:30.939 Unknown: Thank you. 00:37:33.179 --> 00:37:34.059 Unknown: Alberto, thank you. 00:37:34.460 --> 00:37:40.920 SPEAKER_10: I just want to be really clear about, you know, the whole kind of concept behind your presentation. 00:37:42.179 --> 00:37:47.000 SPEAKER_10: Our power plants are generally pretty efficient, especially when compared to an individual 00:37:48.019 --> 00:37:50.679 SPEAKER_10: internal combustion engine vehicle, especially an older one. 00:37:51.679 --> 00:37:58.719 SPEAKER_10: And we can have more bang for the buck in terms of reducing air pollution, carbon, particulate matter, 00:37:58.919 --> 00:38:03.219 SPEAKER_10: the whole gamut by electrifying more transportation in particular, 00:38:03.299 --> 00:38:10.500 SPEAKER_10: but even other building functions, water heating, indoor cooking, and heating and ventilation, 00:38:12.139 --> 00:38:16.739 SPEAKER_10: by electrifying, as long as people are still willing to do that if the price is reasonable. 00:38:18.539 --> 00:38:23.639 SPEAKER_10: So, again, I'm kind of making a little bit of a leap here, 00:38:23.719 --> 00:38:28.379 SPEAKER_10: but our power plants, because they're efficient, can actually help us reduce our gas fired power plants. 00:38:28.539 --> 00:38:34.480 SPEAKER_10: Can actually help us reduce air pollution and carbon output if we apply those incentives 00:38:34.480 --> 00:38:40.760 SPEAKER_10: and make it easy for people to electrify their transportation and other uses. 00:38:42.519 --> 00:38:43.720 Unknown: Completely agree. 00:38:44.220 --> 00:38:49.260 SPEAKER_04: And to be balanced and fair, so let me just say this as well, 00:38:50.700 --> 00:38:57.640 SPEAKER_04: because I show you how much cleaner your turbine power plants are to a relative car. 00:38:58.480 --> 00:39:00.140 Unknown: Relative to a typical car. 00:39:00.840 --> 00:39:05.720 Unknown: But that's not to say that we shouldn't be thinking about what to do with your turbines. 00:39:07.119 --> 00:39:09.720 SPEAKER_04: There is something very important that you can do, 00:39:09.920 --> 00:39:12.460 SPEAKER_04: because at the end of the day, combustion is combustion, right? 00:39:12.460 --> 00:39:13.579 SPEAKER_04: So let's just be clear. 00:39:14.320 --> 00:39:17.660 Unknown: SP 1350, I'd be remiss if I didn't throw that at you, right? 00:39:17.660 --> 00:39:21.260 SPEAKER_04: I mean, the state is already envisioning that in the future, 00:39:21.559 --> 00:39:25.940 Unknown: if you want to continue to reduce your carbon footprint as well as conventional pollution, 00:39:26.260 --> 00:39:29.059 Unknown: start thinking about coal firing with hydrogen, right? 00:39:29.940 --> 00:39:34.400 SPEAKER_04: And if you can get to a future where eventually you replace all the natural gas with hydrogen, 00:39:34.900 --> 00:39:39.480 Unknown: right, you got zero carbon pollution and very little conventional pollution, 00:39:39.480 --> 00:39:45.179 SPEAKER_04: because the same technology that cleans up your natural gas exhaust can be put to use 00:39:45.179 --> 00:39:48.019 SPEAKER_04: to clean up the exhaust from a hydrogen burning turbine. 00:39:48.480 --> 00:39:54.099 SPEAKER_04: So there's already a light at the end of the tunnel that can guide, you know, 00:39:54.299 --> 00:39:56.019 SPEAKER_04: 2030 is like four years now, right? 00:39:56.019 --> 00:39:59.159 SPEAKER_04: So you're going to need to update the 2030's carbon plan in two. 00:39:59.159 --> 00:40:02.299 SPEAKER_04: I don't know what you want to call the next one, but maybe those are the kinds of things 00:40:02.299 --> 00:40:03.400 SPEAKER_04: that we need to start thinking about. 00:40:04.159 --> 00:40:04.500 Unknown: Thank you. 00:40:05.839 --> 00:40:09.440 Unknown: To basically keep our rates low and help everybody electrify transportation 00:40:09.440 --> 00:40:10.380 SPEAKER_02: as quickly as possible. 00:40:11.199 --> 00:40:13.239 SPEAKER_02: Okay. Very good. 00:40:13.239 --> 00:40:13.779 SPEAKER_02: And I want... 00:40:14.199 --> 00:40:15.779 SPEAKER_02: Glenn, I have a question. 00:40:16.639 --> 00:40:23.940 SPEAKER_09: So you meant you referred to the high density of monitors that we have in our community. 00:40:24.860 --> 00:40:31.000 SPEAKER_09: What are some of the key stories that that's told us as to who's most impacted 00:40:31.000 --> 00:40:33.319 SPEAKER_09: and where that pollution is coming from? 00:40:33.920 --> 00:40:36.460 SPEAKER_09: Or does it tell us where the pollution is coming from? 00:40:36.460 --> 00:40:43.539 SPEAKER_04: It does. And maybe just to note, the reason we saw the kind of popularity 00:40:43.539 --> 00:40:46.739 SPEAKER_04: with the sensors was wildfires, right? 00:40:47.179 --> 00:40:50.199 SPEAKER_04: You may remember the times when we were impacted very heavily, 00:40:50.199 --> 00:40:52.779 SPEAKER_04: and that's when people started buying their own because they wanted... 00:40:53.140 --> 00:40:56.440 Unknown: They didn't want to know what the regulatory station was telling them. 00:40:56.440 --> 00:40:58.180 SPEAKER_04: They wanted to know what was happening in their home. 00:40:59.240 --> 00:41:05.660 Unknown: And the story that is telling us is, again, that now you've got citizen science, 00:41:05.660 --> 00:41:11.820 SPEAKER_04: if you want to call it, or the power of the masses, because now people don't rely 00:41:11.820 --> 00:41:13.660 SPEAKER_04: on just our network. 00:41:13.720 --> 00:41:19.120 SPEAKER_04: They have a monitor that is telling them what is the equality around their home, 00:41:19.120 --> 00:41:20.120 SPEAKER_04: and that's really what matters. 00:41:20.120 --> 00:41:21.180 SPEAKER_04: So that's the story. 00:41:21.579 --> 00:41:26.759 SPEAKER_04: The second story is we can be much more surgical in our recommendations 00:41:26.759 --> 00:41:32.819 SPEAKER_04: when we are impacted by anything, wildfires or any other type of event, 00:41:32.819 --> 00:41:34.619 SPEAKER_04: because now we have the information, right? 00:41:34.619 --> 00:41:37.619 SPEAKER_04: So we can be very surgical, and we've done this. 00:41:38.079 --> 00:41:41.759 Unknown: We can tell people, hey, Folsom, you've got some pollution coming your way. 00:41:41.759 --> 00:41:45.699 SPEAKER_04: You've got two hours, you know, issue an alert, whatever. 00:41:45.879 --> 00:41:47.219 SPEAKER_04: I mean, we've done that in the past. 00:41:47.619 --> 00:41:55.439 SPEAKER_04: So again, is technology being put to use in a way that allows us to do much more 00:41:55.439 --> 00:41:58.019 SPEAKER_04: than what we could with our regulatory network? 00:41:58.519 --> 00:42:01.899 Unknown: Okay, I don't see any more questions. 00:42:01.899 --> 00:42:05.339 SPEAKER_02: I would say one of the things I know that smud's done is electrified our 00:42:05.339 --> 00:42:08.559 SPEAKER_02: landscaping equipment, which I know is a big polluter, right? 00:42:08.559 --> 00:42:13.619 SPEAKER_02: And people still come around my house with the blowers, the HOA, and, oh, my gosh, 00:42:13.619 --> 00:42:16.619 SPEAKER_02: those things really, you can smell the emissions. 00:42:16.819 --> 00:42:23.079 SPEAKER_02: And again, it could us to our state government, because the solution 00:42:23.579 --> 00:42:26.940 SPEAKER_04: to our climate crisis is electrify everything that you can. 00:42:27.500 --> 00:42:29.739 Unknown: And the things that you cannot electrify for good reason, 00:42:30.039 --> 00:42:31.699 Unknown: let's use the cleanest combustion possible. 00:42:32.119 --> 00:42:35.380 Unknown: And lawn and garden equipment are absolutely totally doable. 00:42:35.859 --> 00:42:37.699 Unknown: Yep. Very good. 00:42:37.699 --> 00:42:38.779 SPEAKER_02: Well, thank you so much. 00:42:38.839 --> 00:42:41.119 SPEAKER_02: Really appreciate your presentation coming all the way out here. 00:42:41.699 --> 00:42:43.000 SPEAKER_02: And again, your partnership. 00:42:43.299 --> 00:42:44.159 SPEAKER_02: This is teamwork. 00:42:45.079 --> 00:42:45.719 Unknown: Thanks again. 00:42:45.719 --> 00:42:50.599 SPEAKER_02: Okay. So now we're going to invite up Dr. Liz Gill, the branch manager 00:42:51.399 --> 00:42:54.259 Unknown: of reliability analysis branch at the energy commission. 00:42:54.259 --> 00:42:58.579 SPEAKER_02: So thank you for coming east and visiting us today. 00:42:58.699 --> 00:42:59.259 SPEAKER_02: All right. 00:42:59.259 --> 00:43:00.419 SPEAKER_02: Thank you for having me. 00:43:00.819 --> 00:43:04.299 SPEAKER_11: So again, or good evening. 00:43:04.519 --> 00:43:08.679 SPEAKER_11: My name is Liz Gill, and I'm the branch manager for the electricity resources analysis branch 00:43:08.679 --> 00:43:10.059 SPEAKER_11: at the California Energy Commission. 00:43:10.059 --> 00:43:13.579 SPEAKER_11: We just renamed our branch because we do a little bit more than reliability. 00:43:14.199 --> 00:43:19.099 SPEAKER_11: My team focuses on reliability, electricity system modeling. 00:43:19.219 --> 00:43:25.880 SPEAKER_11: We did the electricity system modeling for the long time forthcoming next SB100 report. 00:43:26.299 --> 00:43:28.860 SPEAKER_11: And we also focus on distributed energy resources. 00:43:29.319 --> 00:43:31.840 SPEAKER_11: I'm also a proud SMUD customer. 00:43:31.980 --> 00:43:36.099 SPEAKER_11: My husband and I are looking at moving, and SMUD being the utility is actually a factor. 00:43:36.099 --> 00:43:41.400 SPEAKER_11: So yeah. All right. 00:43:41.400 --> 00:43:45.780 SPEAKER_11: So today I'm going to walk through some of our modeling results assessing the state's clean 00:43:45.780 --> 00:43:46.820 SPEAKER_11: electricity goals. 00:43:47.380 --> 00:43:49.920 SPEAKER_11: These were presented at a workshop in February. 00:43:50.039 --> 00:43:54.940 SPEAKER_11: And I'll be nicely, I think, building on Dr. Alberto's presentation. 00:43:55.480 --> 00:44:00.500 SPEAKER_11: And I'll also put a particular focus on the role of the gas fleet, 00:44:00.500 --> 00:44:03.820 SPEAKER_11: particularly as we move towards those GHG targets. 00:44:04.900 --> 00:44:10.539 SPEAKER_11: So California has, as you know, has pretty aggressive economy-wide decarbonization goals 00:44:11.019 --> 00:44:15.259 SPEAKER_11: and achieving these goals will lead to substantial improvements in air quality. 00:44:15.880 --> 00:44:22.119 SPEAKER_11: So the chart on the left here shows the 2022 GHG emissions by sector compared 00:44:22.119 --> 00:44:26.400 SPEAKER_11: to the CARB scoping plan scenario in 2045. 00:44:27.039 --> 00:44:29.619 SPEAKER_11: So the electricity sector is the green bar. 00:44:29.719 --> 00:44:33.599 SPEAKER_11: We see that that reduces down to about 8 MMT per year. 00:44:34.219 --> 00:44:40.860 SPEAKER_11: And then the top three kind of blue-purple colors are transportation, industrial, 00:44:40.860 --> 00:44:48.019 SPEAKER_11: and buildings, which make the largest contributions to GHG emissions and must reduce the most 00:44:48.019 --> 00:44:51.219 SPEAKER_11: in order for us to reach our economy-wide goals. 00:44:52.159 --> 00:44:58.860 Unknown: Then on the right, we have some familiar charts that we just saw, but these are statewide. 00:44:59.340 --> 00:45:05.559 Unknown: So we have 2023 annual NOx and PM2.5 emissions by sector. 00:45:06.180 --> 00:45:10.620 SPEAKER_11: You can see the transportation in dark blue, which contributes 00:45:10.620 --> 00:45:16.539 SPEAKER_11: to over half the NOx emissions in the state, and then industrial in purple, 00:45:16.539 --> 00:45:19.840 SPEAKER_11: which contributes over half the PM2.5 emissions. 00:45:20.440 --> 00:45:25.579 SPEAKER_11: And then electricity is the sliver there in dark green, which you can see accounts 00:45:25.659 --> 00:45:33.539 SPEAKER_11: for about 1 and then 1.5% of PM2.5 and NOx respectively. 00:45:34.779 --> 00:45:35.980 SPEAKER_11: All right, next slide, please. 00:45:36.480 --> 00:45:42.739 Unknown: All right, so reduction in those heaviest emitting sectors, transportation, 00:45:42.980 --> 00:45:46.319 SPEAKER_11: industry, buildings relies on a few strategies. 00:45:46.900 --> 00:45:50.139 SPEAKER_11: As we know, the biggest one of those is electrification. 00:45:50.819 --> 00:45:56.659 SPEAKER_11: So while we make significant reductions in GHG emissions in the power sector, 00:45:56.659 --> 00:46:02.719 SPEAKER_11: the electric grid really plays an even bigger role for those economy-wide goals. 00:46:02.719 --> 00:46:09.799 SPEAKER_11: It means that having an affordable, reliable, and safe power sector in parallel 00:46:09.799 --> 00:46:15.000 SPEAKER_11: with doing those GHG emissions we'll be making is essential for promoting that electrification 00:46:15.000 --> 00:46:18.579 SPEAKER_11: that we really need for those economy-wide goals. 00:46:18.579 --> 00:46:22.779 SPEAKER_11: And naturally, we'll be increasing our demand for electricity, 00:46:22.779 --> 00:46:28.139 SPEAKER_11: which puts additional emphasis on some of these aggressive clean energy resource builds 00:46:28.139 --> 00:46:29.880 SPEAKER_11: that we'll be looking at. 00:46:30.659 --> 00:46:31.860 SPEAKER_11: Next slide, please. 00:46:32.420 --> 00:46:40.500 Unknown: All right, so currently 67% of our state's retail sales of electricity come 00:46:40.599 --> 00:46:47.420 SPEAKER_11: from renewable and zero carbon resources to reach our SB 1020 and SB 100 goals. 00:46:47.780 --> 00:46:55.000 SPEAKER_11: This will increase to 90% by 2035 and 100% by 2045 respectively. 00:46:55.460 --> 00:46:58.500 SPEAKER_11: And then really to reach our economy-wide GHG targets, 00:46:58.500 --> 00:47:02.800 SPEAKER_11: we're looking at going even more aggressive than SB 100. 00:47:03.280 --> 00:47:05.500 Unknown: Next slide, please. 00:47:06.159 --> 00:47:11.680 Unknown: All right, so focusing in on how our gas plant has been operating 00:47:11.680 --> 00:47:17.380 SPEAKER_11: in this phase of the transition, this slide shows a heat map of gas generation 00:47:17.380 --> 00:47:22.280 SPEAKER_11: in 2022, so the X-axis is days of the year, 00:47:22.280 --> 00:47:25.599 SPEAKER_11: and then the Y-axis is the hours of the day. 00:47:26.160 --> 00:47:29.640 SPEAKER_11: So the green color shows low generation, 00:47:29.640 --> 00:47:35.059 SPEAKER_11: and then the orange-red color shows the highest generation that we see on the grid. 00:47:36.200 --> 00:47:41.619 SPEAKER_11: You can see that we've really reduced gas gen in the spring months, so those kind of big patches 00:47:41.619 --> 00:47:45.880 SPEAKER_11: of green that we see in the middle left side of the chart. 00:47:46.440 --> 00:47:50.960 Unknown: Although if you look carefully at the legend, you'll see that the lowest 00:47:50.960 --> 00:47:52.740 SPEAKER_11: that we see is two gigawatts. 00:47:53.220 --> 00:47:55.200 SPEAKER_11: Please remember, this will be important later. 00:47:55.200 --> 00:47:56.559 SPEAKER_11: There might be a quiz at the end. 00:47:58.000 --> 00:48:02.059 Unknown: And so most of those reductions are really during the day. 00:48:02.059 --> 00:48:03.740 SPEAKER_11: That's when we have a lot of solar online. 00:48:03.740 --> 00:48:06.280 SPEAKER_11: We have, you know, so much that we have curtailment. 00:48:06.920 --> 00:48:10.960 Unknown: However, in the evening, particularly in the summer months, 00:48:11.300 --> 00:48:15.320 SPEAKER_11: we've needed significant capacity to meet those peak hours. 00:48:15.880 --> 00:48:18.140 SPEAKER_11: And so this chart is from 2022. 00:48:18.260 --> 00:48:23.660 SPEAKER_11: I think some of us might remember living through a particular heat event that happened in 2022. 00:48:23.980 --> 00:48:27.760 SPEAKER_11: Some of us still have bad dreams about it. 00:48:28.320 --> 00:48:30.440 SPEAKER_11: And there is good news with this. 00:48:31.780 --> 00:48:37.460 SPEAKER_11: Since 2022, we've had pretty massive deployment of battery storage, 00:48:37.880 --> 00:48:42.100 SPEAKER_11: and we've already seen a reduction in gas generation by 20%. 00:48:42.559 --> 00:48:47.699 SPEAKER_11: So a lot of that peaking that we're needing for the grid, while we still need those gas plants, 00:48:47.699 --> 00:48:51.619 SPEAKER_11: the batteries are doing a lot more of the heavy lifting than they were able to previously 00:48:51.619 --> 00:48:53.239 SPEAKER_11: because they're on the grid. 00:48:53.239 --> 00:48:56.079 SPEAKER_11: Next slide, please. 00:48:57.920 --> 00:48:58.259 SPEAKER_11: All right. 00:48:58.259 --> 00:49:02.579 SPEAKER_11: So moving on to our SB100 results. 00:49:03.420 --> 00:49:04.219 SPEAKER_11: Next slide. 00:49:04.799 --> 00:49:05.579 Unknown: All right. 00:49:05.579 --> 00:49:10.559 SPEAKER_11: So this is great that you guys will be starting your IRP process pretty soon because the modeling 00:49:10.559 --> 00:49:15.239 SPEAKER_11: that we do, the analysis that we do for SB100 is very similar to the type 00:49:15.239 --> 00:49:18.219 SPEAKER_11: of analysis that you do for an IRP. 00:49:19.119 --> 00:49:25.179 SPEAKER_11: So we take our inputs about our system, our policy targets, future demand, 00:49:25.699 --> 00:49:30.239 SPEAKER_11: resource availability, resource cost projections, and then we feed it all 00:49:30.239 --> 00:49:37.340 SPEAKER_11: into a capacity expansion model, which helps develop a cost-optimal future resource build. 00:49:37.680 --> 00:49:41.260 SPEAKER_11: I put that in quotes because there's a lot of factors that can go into what's the most optimal. 00:49:42.120 --> 00:49:48.579 SPEAKER_11: Because of the simplifications that are needed for this model, we also test those portfolios 00:49:48.579 --> 00:49:53.920 SPEAKER_11: to make sure that it meets our reliability and our GHG targets in a production cost model. 00:49:53.920 --> 00:49:58.180 SPEAKER_11: And then I have a few notes on the process before we jump in. 00:49:58.780 --> 00:50:03.800 SPEAKER_11: The first is that it has been a very long multi-agency process. 00:50:04.000 --> 00:50:06.800 SPEAKER_11: We kicked this off in 2022. 00:50:07.519 --> 00:50:10.860 SPEAKER_11: We've had multiple workshops on different aspects of the report. 00:50:11.340 --> 00:50:15.920 SPEAKER_11: We do cover more than the analysis and the scenarios. 00:50:15.920 --> 00:50:20.440 SPEAKER_11: We also cover kind of like our progress to date on reaching our SB100 goals. 00:50:21.140 --> 00:50:24.960 SPEAKER_11: And the results that I'm presenting are pre-OBA. 00:50:25.600 --> 00:50:30.220 SPEAKER_11: So they still have the IRA tax credits included in the results. 00:50:30.760 --> 00:50:33.680 SPEAKER_11: Directionally, the results are the same. 00:50:34.260 --> 00:50:41.860 SPEAKER_11: There are more recent modeling does show a little bit higher levels of firm, clean firm resources, 00:50:41.860 --> 00:50:45.640 SPEAKER_11: so resources that didn't have tax credits pulled away from them. 00:50:46.240 --> 00:50:50.440 SPEAKER_11: Our most recent results also don't show as much hydrogen. 00:50:50.600 --> 00:50:54.680 SPEAKER_11: 45B really drove the selection of those hydrogen resources. 00:50:55.320 --> 00:50:59.200 SPEAKER_11: And overall, the biggest impact is really that costs are higher. 00:50:59.719 --> 00:51:03.779 SPEAKER_11: But directionally, in order to reach our goals, portfolios should look very similar. 00:51:04.579 --> 00:51:09.059 Unknown: And then finally, a draft report will be released soon. 00:51:09.059 --> 00:51:14.639 SPEAKER_11: I don't know how soon, hopefully very soon, but I can't give you a date. 00:51:14.639 --> 00:51:14.939 SPEAKER_11: All right. 00:51:15.279 --> 00:51:17.059 SPEAKER_11: So next slide, please. 00:51:18.879 --> 00:51:19.159 SPEAKER_11: All right. 00:51:19.159 --> 00:51:21.159 SPEAKER_11: So we can jump into some charts. 00:51:21.659 --> 00:51:28.059 SPEAKER_11: So this slide shows the system capacity over the model time horizon. 00:51:28.739 --> 00:51:35.320 SPEAKER_11: So this scenario includes CPUC jurisdictional, LSE, IRP plans, 00:51:35.900 --> 00:51:42.719 SPEAKER_11: as well as supply plan resources from POUs, existing resources on the grid, 00:51:43.119 --> 00:51:47.480 SPEAKER_11: and then what the model selected through that cost optimization. 00:51:48.139 --> 00:51:57.320 SPEAKER_11: So what we see is nearly 100 gigawatts of solar being added, 45 gigawatts of storage, 00:51:57.880 --> 00:52:03.200 SPEAKER_11: around 50 gigawatts of total wind, 1.6 gigawatts of CCS. 00:52:03.200 --> 00:52:09.160 SPEAKER_11: And I will add that Sutter was one of the available resources in the model, and it'd get picked up. 00:52:09.160 --> 00:52:13.640 SPEAKER_11: So overall, this represents a tripling of the grid capacity. 00:52:13.860 --> 00:52:19.500 SPEAKER_11: It says basically a doubling from 2030, but it's a tripling of grid capacity from today. 00:52:20.220 --> 00:52:22.160 SPEAKER_11: And this is really driven by two things. 00:52:22.780 --> 00:52:26.260 SPEAKER_11: First is the electrification that we talked about earlier. 00:52:26.260 --> 00:52:30.280 SPEAKER_11: That's really going to help us meet those economy-wide carbonization goals. 00:52:31.080 --> 00:52:36.660 Unknown: And then the second is the sector GHG target based on the scoping plan. 00:52:36.660 --> 00:52:38.780 SPEAKER_11: It's about 8 million metric tons. 00:52:38.780 --> 00:52:44.920 SPEAKER_11: In the first SB100 report, we are looking at about 24 million metric tons for the electric grid. 00:52:44.920 --> 00:52:49.380 SPEAKER_11: So it's quite a bit more aggressive than SB100 by itself. 00:52:51.180 --> 00:52:52.120 SPEAKER_11: Next slide, please. 00:52:52.319 --> 00:52:54.619 SPEAKER_11: All right. 00:52:54.619 --> 00:52:59.259 SPEAKER_11: So this chart shows the annual generation from that same scenario. 00:52:59.900 --> 00:53:03.519 SPEAKER_11: So it's showing the gigawatt hours per year from each resource type. 00:53:05.019 --> 00:53:11.759 SPEAKER_11: Overall, generation increases significantly to meet, again, that new electrification load. 00:53:12.440 --> 00:53:17.920 Unknown: This increase is met by renewables and zero carbon resources. 00:53:18.880 --> 00:53:24.320 Unknown: At the same time, if you look at those top two bars, so that yellow bar and that, like, 00:53:24.700 --> 00:53:31.240 SPEAKER_11: gray-brown bar right below it, those are gas generation and unspecified imports. 00:53:31.780 --> 00:53:36.460 SPEAKER_11: Those are the two pieces that are the biggest contributors to our GHG emissions 00:53:36.460 --> 00:53:42.740 SPEAKER_11: in the power sector, and they've reduced significantly over that time horizon in order 00:53:42.740 --> 00:53:45.960 SPEAKER_11: to meet that 8-MMT GHG target. 00:53:45.960 --> 00:53:48.559 SPEAKER_11: Next slide, please. 00:53:48.559 --> 00:53:50.699 SPEAKER_11: All right. 00:53:50.699 --> 00:53:53.720 SPEAKER_11: So digging into this in a little bit more detail, 00:53:54.220 --> 00:53:59.420 SPEAKER_11: we can see how that gas utilization changes by 2045. 00:53:59.920 --> 00:54:05.139 SPEAKER_11: So we looked at that kind of heat map of 2022. 00:54:05.519 --> 00:54:07.900 SPEAKER_11: Here we see some pretty significant changes. 00:54:08.519 --> 00:54:11.740 SPEAKER_11: This chart represents a typical summer day. 00:54:12.119 --> 00:54:15.480 SPEAKER_11: So this is one of those days on that chart where it would have been, like, bright. 00:54:16.760 --> 00:54:20.920 SPEAKER_11: Orange-red in the middle of the day, a lot of gas burn. 00:54:22.000 --> 00:54:28.119 SPEAKER_11: In 2045, our model is showing very little gas and imports across the summer. 00:54:28.720 --> 00:54:33.220 SPEAKER_11: So those long summer days allow us to charge up our storage fleet, 00:54:33.500 --> 00:54:38.539 SPEAKER_11: which then can meet those summer peaks, and the evening time is not quite as significant 00:54:38.539 --> 00:54:41.840 SPEAKER_11: as what we'll see in the winter chart that we'll look at next. 00:54:43.099 --> 00:54:44.039 SPEAKER_11: Next slide, please. 00:54:45.039 --> 00:54:46.039 Unknown: All right. 00:54:46.039 --> 00:54:50.920 SPEAKER_11: So in contrast, this is a typical 2045 winter day. 00:54:51.420 --> 00:54:56.659 SPEAKER_11: So in winter, we have much shorter days, which means that we have less time to charge 00:54:56.739 --> 00:54:58.619 SPEAKER_11: that storage fleet with the solar. 00:54:59.000 --> 00:55:02.539 SPEAKER_11: So instead of having that, like, 12, 13 hours throughout the number of hours 00:55:02.539 --> 00:55:04.719 SPEAKER_11: in the summer days, we really only have, you know, 00:55:04.719 --> 00:55:07.099 SPEAKER_11: seven to eight hours to charge the storage. 00:55:08.099 --> 00:55:15.759 SPEAKER_11: So the model uses the gas overnight to meet that overnight and early morning loads, 00:55:16.219 --> 00:55:20.099 SPEAKER_11: which has also increased significantly over the time horizon. 00:55:20.259 --> 00:55:23.880 SPEAKER_11: Because of all the electrification, we have to meet our economy-wide goals. 00:55:25.000 --> 00:55:28.460 SPEAKER_11: So kind of pulling back on the dynamics that we see in the modeling, 00:55:30.559 --> 00:55:36.779 Unknown: the total annual gas utilization is really heavily driven down by that GHG target, 00:55:37.019 --> 00:55:41.580 SPEAKER_11: which basically gives us a budget of how much gas we can use in a year. 00:55:42.400 --> 00:55:48.519 SPEAKER_11: The model then uses that budget where it's most valuable, which is when it's most expensive 00:55:48.820 --> 00:55:51.019 SPEAKER_11: and hardest to deploy clean energy. 00:55:51.620 --> 00:55:57.000 SPEAKER_11: So as we get closer to, like, a zero GHG emission scenario, 00:55:57.460 --> 00:56:02.500 SPEAKER_11: you start to see this exponential increase in cost and resource build 00:56:02.940 --> 00:56:05.280 SPEAKER_11: with today's projections for resource costs. 00:56:05.920 --> 00:56:10.320 SPEAKER_11: So you either need more expensive, clean, firm resources 00:56:11.100 --> 00:56:14.780 Unknown: or even greater increases in solar and storage. 00:56:14.900 --> 00:56:19.540 SPEAKER_11: And so I think as Alberto said, it's that last 10%, that becomes much more challenging. 00:56:19.940 --> 00:56:24.140 SPEAKER_11: And then each percent that you go down, it gets even more so. 00:56:24.140 --> 00:56:27.380 SPEAKER_11: All right, next slide, please. 00:56:27.960 --> 00:56:33.900 Unknown: All right, so we see this dynamic play out in the combustion retirement scenario. 00:56:34.380 --> 00:56:39.300 SPEAKER_11: So this slide shows a number of scenarios that we ran for the SB100 report. 00:56:39.360 --> 00:56:43.559 SPEAKER_11: I just want to focus on one scenario in this black box. 00:56:44.599 --> 00:56:49.680 SPEAKER_11: The rest of the scenario results are available on our webpage for the workshop results, 00:56:49.680 --> 00:56:51.820 SPEAKER_11: if anyone's interested in the rest of them. 00:56:51.820 --> 00:56:57.180 SPEAKER_11: So this combustion resource retirement scenario forces the retirement 00:56:57.180 --> 00:57:01.420 SPEAKER_11: of all combustion resources on California's electric grid. 00:57:01.900 --> 00:57:06.599 SPEAKER_11: So it's 35 gigawatts of gas and 1.5 gigawatts of biofuels. 00:57:07.400 --> 00:57:14.740 SPEAKER_11: In order to meet those overnight loads, the model selects another 135 gigawatts of resources. 00:57:14.980 --> 00:57:18.659 SPEAKER_11: So that's on top of the 310 gigawatts that we already have on the grid, 00:57:19.380 --> 00:57:23.280 SPEAKER_11: including 5 gigawatts of hydrogen fuel cells, because again, 00:57:23.280 --> 00:57:26.720 SPEAKER_11: it needs those firm resources for those overnight loads. 00:57:27.480 --> 00:57:32.980 SPEAKER_11: Solar and storage, really kind of the key driver here is that that solar 00:57:32.980 --> 00:57:39.359 SPEAKER_11: and storage become less effective as we get into those marginal GHG emissions 00:57:39.399 --> 00:57:43.839 SPEAKER_11: that we're reducing, and so you have to build greater amounts of them in order 00:57:43.839 --> 00:57:47.859 SPEAKER_11: to achieve the same reduction as you might have earlier in the transition. 00:57:48.659 --> 00:57:55.519 Unknown: And then in total, the costs are about $10 billion per year higher in this scenario 00:57:55.519 --> 00:57:59.179 SPEAKER_11: in 2045 compared to that reference scenario that we looked at earlier. 00:57:59.679 --> 00:58:02.800 Unknown: Next slide, please. 00:58:03.400 --> 00:58:08.239 Unknown: All right, so now a couple of caveats on the modeling. 00:58:08.699 --> 00:58:15.219 SPEAKER_11: This might get a little bit into the weeds, but we run a zonal or a regional statewide model, 00:58:15.940 --> 00:58:19.639 SPEAKER_11: so it doesn't account for local transmission constraints. 00:58:19.920 --> 00:58:25.719 SPEAKER_11: Although we are working to improve the granularity of this model for reasons 00:58:25.719 --> 00:58:29.359 SPEAKER_11: that I'm about to explain, it becomes exponentially more important 00:58:29.440 --> 00:58:32.000 SPEAKER_11: to include these factors as we decarbonize. 00:58:33.000 --> 00:58:37.179 SPEAKER_11: So this is where the quiz is on the gas heat map slide. 00:58:37.779 --> 00:58:42.319 SPEAKER_11: So going back to that, it showed that the lowest gas burn that we have on the system today, 00:58:43.219 --> 00:58:47.299 SPEAKER_11: even when we're exporting and curtailing renewables, was 2 gigawatts. 00:58:48.019 --> 00:58:53.080 SPEAKER_11: So those 2 gigawatts weren't running purely for economic reasons. 00:58:53.640 --> 00:58:58.640 SPEAKER_11: They're running to provide other grid services like voltage support or to be in position 00:58:58.640 --> 00:59:00.519 SPEAKER_11: for local reliability support. 00:59:01.280 --> 00:59:04.260 SPEAKER_11: I'm really not the expert on these elements, 00:59:04.300 --> 00:59:06.500 SPEAKER_11: but an engineer can probably explain them better. 00:59:07.660 --> 00:59:14.940 SPEAKER_11: And so these are the types of things that weren't essential to capture previously 00:59:15.260 --> 00:59:19.980 SPEAKER_11: because we are so dependent on gas for energy and capacity anyway. 00:59:20.679 --> 00:59:25.539 SPEAKER_11: But now as we get into this late phase of the transition, they're essential to understand 00:59:25.539 --> 00:59:29.920 SPEAKER_11: and to start to incorporate into these modeling exercises where we're kind of looking 00:59:29.920 --> 00:59:31.360 SPEAKER_11: at our future portfolios. 00:59:32.119 --> 00:59:37.720 Unknown: So here you can see that our model, the reason why I bring this up is you can see 00:59:37.720 --> 00:59:42.159 SPEAKER_11: that our model is showing no gas burn for multiple months in the year. 00:59:42.779 --> 00:59:47.199 SPEAKER_11: So it's saving all of those GHG emissions in that budget for winter, 00:59:47.500 --> 00:59:51.480 SPEAKER_11: some of the shoulder months, and mostly saving it for overnight. 00:59:52.339 --> 00:59:55.420 SPEAKER_11: So it's not to say that this portfolio and the way 00:59:55.420 --> 00:59:58.339 SPEAKER_11: that this portfolio operates isn't achievable. 00:59:58.339 --> 01:00:02.639 SPEAKER_11: You could certainly cite resources to provide those grid resources 01:00:02.639 --> 01:00:05.079 SPEAKER_11: or those grid services in the places that they're needed, 01:00:05.500 --> 01:00:07.539 SPEAKER_11: but they're not included in this study. 01:00:08.079 --> 01:00:12.259 SPEAKER_11: And we really need further analysis to really understand how 01:00:12.259 --> 01:00:18.400 SPEAKER_11: to displace those marginal emissions from gas generation as we move into the 2030s, 01:00:18.779 --> 01:00:22.079 SPEAKER_11: particularly into the late 2030s and into the 2040s. 01:00:23.440 --> 01:00:24.779 SPEAKER_11: All right. 01:00:24.779 --> 01:00:25.639 SPEAKER_11: Next slide, please. 01:00:26.139 --> 01:00:28.059 Unknown: All right. 01:00:28.059 --> 01:00:29.360 SPEAKER_11: So we're getting to the end. 01:00:29.360 --> 01:00:32.320 SPEAKER_11: So these are the trends that we presented at the workshop. 01:00:32.599 --> 01:00:34.219 SPEAKER_11: I'll highlight just a few. 01:00:34.739 --> 01:00:39.339 SPEAKER_11: The biggest thing we want to highlight is the need for clean firm resources 01:00:39.339 --> 01:00:42.319 SPEAKER_11: that are available for summer and winter peaks. 01:00:42.959 --> 01:00:48.419 SPEAKER_11: We, of course, need lots of solar wind storage for across the year, 01:00:48.899 --> 01:00:52.639 SPEAKER_11: but in winter we really need those firm resources to reduce gas generation 01:00:53.199 --> 01:00:55.099 SPEAKER_11: and meet electrification-driven loads. 01:00:55.599 --> 01:01:00.659 SPEAKER_11: I've heard that you've been briefed on geothermal and CCS, which our model is picking 01:01:01.460 --> 01:01:04.619 SPEAKER_11: up as we move further towards 2045. 01:01:04.619 --> 01:01:05.440 SPEAKER_11: So that's great to hear. 01:01:06.379 --> 01:01:07.699 SPEAKER_11: Next slide, please. 01:01:09.859 --> 01:01:14.420 Unknown: And then gas gen drops significantly across all of the scenarios, 01:01:14.920 --> 01:01:18.199 SPEAKER_11: but the plants are retained for reliability. 01:01:18.460 --> 01:01:23.480 SPEAKER_11: So that's not to say that we can't retire gas, but we'll need to be thoughtful with the plan 01:01:23.480 --> 01:01:27.920 SPEAKER_11: for reducing that marginal gas generation and for the capacity in general. 01:01:27.920 --> 01:01:31.220 SPEAKER_11: Next slide, please. 01:01:31.720 --> 01:01:33.159 SPEAKER_11: All right. 01:01:33.159 --> 01:01:34.960 SPEAKER_11: So this is my last slide. 01:01:34.960 --> 01:01:41.039 SPEAKER_11: So we did a statewide study, and this includes some considerations for individual utilities. 01:01:41.720 --> 01:01:45.280 SPEAKER_11: So my last point is that this is a statewide model. 01:01:45.780 --> 01:01:51.980 SPEAKER_11: It doesn't include individual utilities explicitly, and it really assumes less friction 01:01:51.980 --> 01:01:57.000 SPEAKER_11: and that the goals are met as a state, which will ultimately be more optimal 01:01:57.079 --> 01:02:02.199 SPEAKER_11: than if we just add each individual utility's portfolios that they're planning together. 01:02:03.000 --> 01:02:05.280 SPEAKER_11: And so this is a couple of things. 01:02:05.920 --> 01:02:11.380 SPEAKER_11: This points to larger footprints lead to more optimal portfolios and dispatch. 01:02:11.380 --> 01:02:17.739 SPEAKER_11: I think that's a kind of common understanding, and we're seeing this play out with EIM and EDAM, 01:02:17.940 --> 01:02:20.559 SPEAKER_11: and now moving forward with the pathways proposal. 01:02:21.480 --> 01:02:27.619 Unknown: On the other end, how individual utilities approach these goals will be impacted 01:02:27.619 --> 01:02:32.519 SPEAKER_11: by local priorities, so whether they're more ambitious targets, 01:02:33.079 --> 01:02:38.259 SPEAKER_11: maybe different risk tolerances or preferences for specific resources. 01:02:39.159 --> 01:02:44.400 SPEAKER_11: Additionally, the local constraints are, while they're important for the statewide portfolio, 01:02:44.400 --> 01:02:48.980 SPEAKER_11: which is why we're moving to include those better in our analysis moving forward, 01:02:49.539 --> 01:02:53.460 SPEAKER_11: they're even more important for the individual utility that needs to make sure 01:02:53.460 --> 01:02:56.800 SPEAKER_11: that that energy is deliverable to their customers. 01:02:57.460 --> 01:03:02.639 SPEAKER_11: So these constraints could lead to preferences for locally cited resources, 01:03:03.219 --> 01:03:09.400 SPEAKER_11: repowering gas plants, we talked about hydrogen earlier, CCS, transmission upgrades, 01:03:10.059 --> 01:03:13.820 SPEAKER_11: and those solutions are really dependent on the utility-specific needs, 01:03:13.820 --> 01:03:16.820 SPEAKER_11: and I'm certainly not qualified to speak to those. 01:03:17.700 --> 01:03:19.640 SPEAKER_11: All right, next slide. 01:03:21.500 --> 01:03:24.700 SPEAKER_11: All right, and with that, I will, I'm happy to take any questions. 01:03:25.840 --> 01:03:28.300 Unknown: Thank you, Dr. Gail, appreciate it. 01:03:28.300 --> 01:03:31.700 SPEAKER_02: Does any of my colleagues have some questions? 01:03:34.019 --> 01:03:37.500 Unknown: Thank you for the presentation and the information. 01:03:37.500 --> 01:03:41.460 SPEAKER_10: It sort of parallels and dovetails with what we heard from Alberto. 01:03:42.139 --> 01:03:47.139 SPEAKER_10: I guess my question is on storage because the scenario relies heavily on that. 01:03:47.139 --> 01:03:48.980 SPEAKER_10: We're already seeing the benefits of that. 01:03:49.940 --> 01:03:56.659 SPEAKER_10: Are there, and again, maybe this is, I'm not sure if this is something you can answer, 01:03:56.940 --> 01:04:04.380 SPEAKER_10: are there new storage technologies, I mean, aside from lithium ion and maybe even other, 01:04:04.380 --> 01:04:08.940 SPEAKER_10: you know, aside from other battery technologies that we're looking at 01:04:08.940 --> 01:04:10.940 SPEAKER_10: or that are sort of out there? 01:04:12.340 --> 01:04:14.340 SPEAKER_11: Yeah, that's a good question. 01:04:14.340 --> 01:04:19.820 SPEAKER_11: So our model doesn't really care what the technology is behind it, 01:04:20.659 --> 01:04:28.300 SPEAKER_11: and it's assuming the lithium, I think it's assuming the lithium ion costs projections, 01:04:28.619 --> 01:04:30.699 SPEAKER_11: but there are certainly other technologies out there. 01:04:30.699 --> 01:04:34.300 SPEAKER_11: I've heard about the sodium, I think sodium ion technology, 01:04:34.300 --> 01:04:39.139 SPEAKER_11: and they've got the facility that's going to be in, or is in Sacramento. 01:04:40.099 --> 01:04:42.859 SPEAKER_11: And then for the long-duration energy storage in our model, 01:04:42.859 --> 01:04:48.379 SPEAKER_11: we actually have this weird, like almost hybrid of different technologies 01:04:48.379 --> 01:04:52.940 SPEAKER_11: because we, there's, I think, so much uncertainty across different technologies 01:04:52.940 --> 01:04:57.420 SPEAKER_11: that we kind of make an assumption for like a generic long-duration energy storage. 01:04:57.420 --> 01:05:00.379 SPEAKER_11: So you're actually, I'm not a great person to answer this question, 01:05:00.379 --> 01:05:06.299 SPEAKER_11: but we know that we need storage, and whatever technology it ends up being, that's great. 01:05:06.300 --> 01:05:08.300 SPEAKER_11: Thank you. 01:05:08.300 --> 01:05:10.300 Unknown: Sure, go ahead. 01:05:10.300 --> 01:05:14.300 Unknown: Thank you so much, Dr. Gill, for being here tonight. 01:05:14.300 --> 01:05:23.300 SPEAKER_07: I had just a question about one of your slides that talked about the future, 01:05:23.300 --> 01:05:31.300 SPEAKER_07: and gas plants would still be kept for reliability. 01:05:31.300 --> 01:05:38.300 SPEAKER_07: Who makes those decisions about, you know, which gas plants would be, 01:05:38.300 --> 01:05:42.300 Unknown: you know, would close and which would be open to run? 01:05:42.300 --> 01:05:43.300 SPEAKER_07: Yeah. 01:05:43.300 --> 01:05:44.300 SPEAKER_11: How does that work? 01:05:44.300 --> 01:05:48.300 Unknown: That is a great question, and it's a complicated question, too. 01:05:48.300 --> 01:05:55.300 Unknown: So for a gas plant to remain open, it needs to have a utility or a load-serving entity 01:05:55.300 --> 01:05:57.300 SPEAKER_11: that will sign a contract with it. 01:05:57.300 --> 01:06:05.300 SPEAKER_11: And so that's ultimately the driver for whether a gas plant is staying open for economic reasons. 01:06:05.300 --> 01:06:11.300 SPEAKER_11: There's, you know, specific cases where, for example, in the California ISO system, 01:06:11.300 --> 01:06:18.300 SPEAKER_11: they will study a gas plant to determine if it's needed, if it can close for system, 01:06:18.300 --> 01:06:23.300 SPEAKER_11: or under system reliability purposes, or specifically local reliability. 01:06:24.300 --> 01:06:28.300 SPEAKER_11: So, for example, if there is an area that was very constrained with local reliability, 01:06:28.300 --> 01:06:33.300 SPEAKER_11: if there's not resources or a plan there to be able to replace that gas plant, 01:06:33.300 --> 01:06:39.300 SPEAKER_11: then they may force that plant to stay open and have a reliability must-run contract with it. 01:06:39.300 --> 01:06:44.300 SPEAKER_11: So ultimately, it's the contracts in the market that's deciding what plants stay open 01:06:44.300 --> 01:06:46.300 SPEAKER_11: and which ones might close. 01:06:46.300 --> 01:06:51.300 SPEAKER_11: But if it's needed for specific reliability reasons, 01:06:51.300 --> 01:06:54.300 SPEAKER_11: it might be the market operator that keeps it there. 01:06:54.300 --> 01:07:03.300 SPEAKER_11: Not to say that utilities couldn't formulate their plans in order to reduce that need. 01:07:03.300 --> 01:07:05.300 Unknown: Thank you. 01:07:05.300 --> 01:07:07.300 Unknown: Anybody else? 01:07:07.300 --> 01:07:09.300 SPEAKER_02: Okay. 01:07:09.300 --> 01:07:15.300 SPEAKER_02: Well, on a slightly different tangent, I hope that we're focusing on also recycling of all these batteries 01:07:15.300 --> 01:07:17.300 SPEAKER_02: and wind blades and everything else. 01:07:17.300 --> 01:07:20.300 SPEAKER_02: I don't know if the Energy Commission focuses on that at all, 01:07:20.300 --> 01:07:23.300 SPEAKER_02: but that is like my day job, and it seems like batteries are... 01:07:23.300 --> 01:07:27.300 SPEAKER_02: We're putting battery walls at SMUD right now at record pace in people's homes, 01:07:27.300 --> 01:07:30.300 SPEAKER_02: and when they have to take them off, they call us and say, 01:07:30.300 --> 01:07:31.300 SPEAKER_02: what do we do with it? 01:07:31.300 --> 01:07:35.300 SPEAKER_02: And just like they did with solar panels, and we say, we don't know. 01:07:35.300 --> 01:07:37.300 Unknown: That is a good question. 01:07:37.300 --> 01:07:42.300 SPEAKER_11: That's certainly not something that my division works with, 01:07:42.300 --> 01:07:48.300 SPEAKER_11: but our research and development division, I think, has done some grants in the past 01:07:48.300 --> 01:07:52.300 SPEAKER_11: and have focused on the reuse of batteries, 01:07:52.300 --> 01:07:56.300 SPEAKER_11: and I believe that there's some work going on at CalRecycle. 01:07:56.300 --> 01:07:57.300 SPEAKER_11: Maybe that's solar. 01:07:57.300 --> 01:07:58.300 SPEAKER_11: Really not. 01:07:58.300 --> 01:08:00.300 SPEAKER_11: No, I would encourage the state to do something. 01:08:00.300 --> 01:08:01.300 SPEAKER_02: I would just... 01:08:01.300 --> 01:08:02.300 SPEAKER_02: Yeah, yeah. 01:08:02.300 --> 01:08:05.300 SPEAKER_02: ...something to take back because we need those materials to make the next generation as well. 01:08:05.300 --> 01:08:06.300 SPEAKER_02: Yes. 01:08:06.300 --> 01:08:08.300 SPEAKER_02: And we need to have a place to bring them 01:08:08.300 --> 01:08:13.300 SPEAKER_02: because right now they're hazardous waste, and people don't have the money to manage them. 01:08:13.300 --> 01:08:16.300 SPEAKER_02: And we do have a speaker from the audience, 01:08:16.300 --> 01:08:18.300 SPEAKER_02: so we'll go ahead and have one speaker slip. 01:08:18.300 --> 01:08:20.300 SPEAKER_02: Go ahead and call John Weber. 01:08:22.300 --> 01:08:23.300 Unknown: Welcome, John. 01:08:24.300 --> 01:08:27.300 Unknown: Good evening, Chair, Board, and committee members. 01:08:27.300 --> 01:08:33.300 SPEAKER_06: First off, I'd like to say excellent presentations to both of our presenters. 01:08:33.300 --> 01:08:36.300 SPEAKER_06: And then regarding the Air District presentation, 01:08:36.300 --> 01:08:41.300 SPEAKER_06: the sale of new gas leaf blowers was banned over two and a half years ago. 01:08:41.300 --> 01:08:45.300 SPEAKER_06: These old leaf blowers are still being used. 01:08:45.300 --> 01:08:50.300 SPEAKER_06: What is the Air District doing to ban the operation of these leaf blowers? 01:08:51.300 --> 01:08:58.300 Unknown: And regarding the CEC presentation, on slide number four states, 01:08:58.300 --> 01:09:02.300 SPEAKER_06: nuclear is a zero-carbon resource, which is incorrect. 01:09:02.300 --> 01:09:07.300 SPEAKER_06: The whole nuclear fuel cycle emits greenhouse gases at every step, 01:09:07.300 --> 01:09:12.300 SPEAKER_06: including mining, milling, converting, enriching, and fuel fabrication. 01:09:13.300 --> 01:09:18.300 SPEAKER_06: One study shows lifetime CO2 emissions of the complete nuclear process chain 01:09:18.300 --> 01:09:30.300 SPEAKER_06: from cradle to grave of an advanced reactor is 151 grams of CO2 per kilowatt hour. 01:09:30.300 --> 01:09:36.300 SPEAKER_06: Burning natural gas, as our first presentation stated, is 200 grams per kilowatt hour. 01:09:36.300 --> 01:09:39.300 SPEAKER_06: So it's almost comparable to natural gas. 01:09:39.300 --> 01:09:44.300 SPEAKER_06: Our own Rancho Seiko plant closed 37 years ago 01:09:44.300 --> 01:09:49.300 SPEAKER_06: and still has a carbon footprint maintaining and guarding the waste. 01:09:49.300 --> 01:09:53.300 SPEAKER_06: Please correct the slide, and thank you for both presentations. 01:09:54.300 --> 01:09:57.300 Unknown: Thank you. I appreciate your comments. 01:09:57.300 --> 01:10:01.300 Unknown: Do we have any comments online? 01:10:01.300 --> 01:10:03.300 Unknown: I don't see any hands now. 01:10:03.300 --> 01:10:08.300 SPEAKER_02: Okay. Well, with that, I think we are finished with this presentation, 01:10:08.300 --> 01:10:11.300 SPEAKER_02: but I do want to thank our speakers very much for coming, 01:10:11.300 --> 01:10:13.300 SPEAKER_02: and we learned a lot and appreciate you. 01:10:17.300 --> 01:10:21.300 Unknown: And thank you for all you do every day for all of us in this field. 01:10:21.300 --> 01:10:24.300 SPEAKER_02: So with that, we'll move to agenda item number two, 01:10:24.300 --> 01:10:29.300 SPEAKER_02: which is to discuss authorizing submission of a SMUD round six grant application 01:10:29.300 --> 01:10:35.300 SPEAKER_02: for a California Strategic Growth Council Transformative Climate Communities Program grant 01:10:35.300 --> 01:10:39.300 Unknown: and authorize the CEO to negotiate and execute the name 01:10:39.300 --> 01:10:43.300 SPEAKER_02: of Sacramento Municipal Utility District, a grant recipient contract 01:10:43.300 --> 01:10:46.300 SPEAKER_02: with the state of California, as well as other grant documents, 01:10:46.300 --> 01:10:50.300 SPEAKER_02: including but not limited to agreements, amendments, and requests for payment 01:10:50.300 --> 01:10:53.300 SPEAKER_02: necessary to facilitate the grant participation. 01:10:53.300 --> 01:10:56.300 SPEAKER_02: That was a lot, James. So we'll turn it over to you now. 01:10:56.300 --> 01:10:59.300 SPEAKER_02: And thank you so much for reading the intro. 01:10:59.300 --> 01:11:04.300 SPEAKER_00: From time to time, we do come across these grants that require that we get authorization prior to submission. 01:11:04.300 --> 01:11:08.300 SPEAKER_00: And so we appreciate going through that. 01:11:08.300 --> 01:11:12.300 SPEAKER_00: I must say that as I was listening to our previous presenters, 01:11:12.300 --> 01:11:17.300 SPEAKER_00: I kind of crossed out the opening comment that I wanted to make to start my presentation several times 01:11:17.300 --> 01:11:20.300 SPEAKER_00: because it was, oh, that one's better. That one's better. That one's better. 01:11:20.300 --> 01:11:25.300 SPEAKER_00: I settled on the focus on what do we need to do to keep our rates low 01:11:25.300 --> 01:11:28.300 SPEAKER_00: and electrify everything as quickly as possible. 01:11:28.300 --> 01:11:32.300 SPEAKER_00: And we heard a lot of really exciting conversations about the technologies 01:11:32.300 --> 01:11:36.300 SPEAKER_00: and the generation portfolio. But I'm here to ask for authorization 01:11:36.300 --> 01:11:38.300 SPEAKER_00: around the Transformative Climate Communities grant. 01:11:38.300 --> 01:11:45.300 SPEAKER_00: And this is a specific funding grant that is focused on funding to support 01:11:45.300 --> 01:11:51.300 SPEAKER_00: the most impacted communities from pollution and to reduce greenhouse gas emissions 01:11:51.300 --> 01:11:54.300 SPEAKER_00: and local air pollution for those communities specifically. 01:11:54.300 --> 01:11:58.300 SPEAKER_00: This is the sixth round of this funding. 01:11:58.300 --> 01:12:02.300 SPEAKER_00: The award for an individual award is up to $27.5 million. 01:12:02.300 --> 01:12:05.300 SPEAKER_00: There's going to be three awards across the state. 01:12:05.300 --> 01:12:07.300 SPEAKER_00: And the application is due on September 30th. 01:12:07.300 --> 01:12:11.300 SPEAKER_00: So we're actually in the throes of it right now, working with project partners, 01:12:11.300 --> 01:12:15.300 SPEAKER_00: reaching out, engaging with communities and community benefit organizations, 01:12:15.300 --> 01:12:19.300 SPEAKER_00: regional partners and peers to put together the best portfolio of projects 01:12:19.300 --> 01:12:24.300 SPEAKER_00: to bring these dollars to our community to help fund a number of the initiatives 01:12:24.300 --> 01:12:26.300 SPEAKER_00: that we were just hearing about. 01:12:27.300 --> 01:12:30.300 SPEAKER_00: A couple of key notes about this particular funding opportunity 01:12:30.300 --> 01:12:35.300 SPEAKER_00: is that it is a very geographically focused grant opportunity. 01:12:35.300 --> 01:12:38.300 SPEAKER_00: It's limited to a five-square-mile area. 01:12:38.300 --> 01:12:42.300 SPEAKER_00: So the idea here is not to peanut butter the funding across a very large area. 01:12:42.300 --> 01:12:45.300 SPEAKER_00: It's really to look in at the needs of a specific community, 01:12:45.300 --> 01:12:50.300 SPEAKER_00: understand the pollution opportunities and GHG reduction opportunities 01:12:50.300 --> 01:12:53.300 SPEAKER_00: within that community and deliver on that value. 01:12:53.300 --> 01:12:56.300 SPEAKER_00: The other element here is that this is not a single project 01:12:56.300 --> 01:12:58.300 SPEAKER_00: that's going to win the grant opportunity. 01:12:58.300 --> 01:13:02.300 SPEAKER_00: Historically, we can look back and see the grants that have won this. 01:13:02.300 --> 01:13:04.300 SPEAKER_00: It's coalitions of community members 01:13:04.300 --> 01:13:06.300 SPEAKER_00: and coalitions across those communities 01:13:06.300 --> 01:13:10.300 SPEAKER_00: and compelling projects across multiple sectors that are successful here. 01:13:10.300 --> 01:13:13.300 SPEAKER_00: For SMUD, our part is focused on electrification 01:13:13.300 --> 01:13:17.300 SPEAKER_00: with a number of community partners supporting those surrounding areas. 01:13:17.300 --> 01:13:21.300 SPEAKER_00: Importantly, often with these community benefit organizations 01:13:21.300 --> 01:13:24.300 SPEAKER_00: and community partners applying for the grant 01:13:24.300 --> 01:13:27.300 SPEAKER_00: and delivering on the grant is one of the most complex components 01:13:27.300 --> 01:13:29.300 SPEAKER_00: to actually bring these dollars here. 01:13:29.300 --> 01:13:32.300 SPEAKER_00: One of the things that we've been fortunate with at SMUD 01:13:32.300 --> 01:13:35.300 SPEAKER_00: is that we've developed quite a depth of grant delivery expertise 01:13:35.300 --> 01:13:37.300 SPEAKER_00: over recent years. 01:13:37.300 --> 01:13:39.300 SPEAKER_00: It puts us in a position where we can be the lead applicant 01:13:39.300 --> 01:13:42.300 SPEAKER_00: to help make sure that Sacramento is putting our best foot forward 01:13:42.300 --> 01:13:44.300 SPEAKER_00: and that we're doing everything possible to make sure 01:13:44.300 --> 01:13:47.300 SPEAKER_00: that we're bringing these dollars into our community. 01:13:47.300 --> 01:13:50.300 Unknown: For our side, when we think about what this would mean for SMUD, 01:13:50.300 --> 01:13:53.300 SPEAKER_00: we have a very meaningful element of scope in this project. 01:13:53.300 --> 01:13:57.300 SPEAKER_00: We look back and we had the Meadowview Electrification Project 01:13:57.300 --> 01:13:59.300 SPEAKER_00: that we were able to complete in recent years. 01:13:59.300 --> 01:14:02.300 SPEAKER_00: That was actually funded with support of Congresswoman Matsui 01:14:02.300 --> 01:14:06.300 SPEAKER_00: and funding from the federal government to bring that forward. 01:14:06.300 --> 01:14:08.300 SPEAKER_00: These external funding dollars are a great tool 01:14:08.300 --> 01:14:10.300 SPEAKER_00: to enhance that affordability 01:14:10.300 --> 01:14:12.300 SPEAKER_00: and make sure that we're accelerating electrification 01:14:12.300 --> 01:14:13.300 SPEAKER_00: while keeping those rates low. 01:14:13.300 --> 01:14:16.300 SPEAKER_00: This is a much bigger bucket, but we're just a piece of that pie. 01:14:17.300 --> 01:14:20.300 SPEAKER_00: With this funding, SMUD would be looking to electrify 01:14:20.300 --> 01:14:24.300 SPEAKER_00: roughly 200 additional residences in this community. 01:14:24.300 --> 01:14:27.300 SPEAKER_00: Some of our learnings from the Meadowview Project 01:14:27.300 --> 01:14:29.300 SPEAKER_00: were that we do come across a number of homes 01:14:29.300 --> 01:14:31.300 SPEAKER_00: that need panel upgrades, panel replacements, 01:14:31.300 --> 01:14:34.300 SPEAKER_00: whether that's Zinsco, whether that's panel expansions. 01:14:34.300 --> 01:14:36.300 SPEAKER_00: We're looking at the work being done 01:14:36.300 --> 01:14:38.300 SPEAKER_00: by our research and development department 01:14:38.300 --> 01:14:40.300 SPEAKER_00: to pull in funding for smart panels 01:14:40.300 --> 01:14:43.300 SPEAKER_00: to allow for additional electrification and panel upgrades. 01:14:43.300 --> 01:14:47.300 SPEAKER_00: We're also looking at our work with the Sacramento Tree Foundation 01:14:47.300 --> 01:14:50.300 SPEAKER_00: to have tree planting that will be spread out 01:14:50.300 --> 01:14:52.300 SPEAKER_00: from 2028 through 2031. 01:14:52.300 --> 01:14:55.300 SPEAKER_00: Then, importantly, box number four here, as I mentioned, 01:14:55.300 --> 01:14:57.300 SPEAKER_00: we're helping our communities bring these dollars forward 01:14:57.300 --> 01:15:01.300 SPEAKER_00: through our grant expertise and administration processes. 01:15:01.300 --> 01:15:03.300 SPEAKER_00: Then, as with all of these initiatives, 01:15:03.300 --> 01:15:06.300 SPEAKER_00: at the core of it is our customers and our communities, 01:15:06.300 --> 01:15:08.300 SPEAKER_00: and so that outreach, communication, and education 01:15:08.300 --> 01:15:10.300 SPEAKER_00: is a critical component that we'll be delivering 01:15:10.300 --> 01:15:12.300 SPEAKER_00: as part of this work. 01:15:13.300 --> 01:15:15.300 SPEAKER_00: Jumping on, the overall scope, 01:15:15.300 --> 01:15:18.300 SPEAKER_00: and you'll notice the asterisk here, 01:15:18.300 --> 01:15:21.300 SPEAKER_00: as I mentioned, we are in the throw of developing the application. 01:15:21.300 --> 01:15:24.300 SPEAKER_00: So the paint is still wet, so there's more up here 01:15:24.300 --> 01:15:26.300 SPEAKER_00: than what will be in the final application. 01:15:26.300 --> 01:15:28.300 SPEAKER_00: We're working with these partners to understand 01:15:28.300 --> 01:15:32.300 SPEAKER_00: which projects are eligible, how much funding is secured, 01:15:32.300 --> 01:15:35.300 SPEAKER_00: whether they're able to sign on for this grant. 01:15:35.300 --> 01:15:38.300 SPEAKER_00: But we have a number of the opportunities defined here. 01:15:38.300 --> 01:15:40.300 SPEAKER_00: You can see that transportation and mobility 01:15:40.300 --> 01:15:42.300 SPEAKER_00: is a key sector. 01:15:42.300 --> 01:15:44.300 SPEAKER_00: Electrification and clean energy is the primary 01:15:44.300 --> 01:15:47.300 SPEAKER_00: smud work, recycling and compost, urban greening, 01:15:47.300 --> 01:15:50.300 SPEAKER_00: tree planting, housing and community facilities, 01:15:50.300 --> 01:15:52.300 SPEAKER_00: health and food access. 01:15:52.300 --> 01:15:54.300 SPEAKER_00: So it really is a broad spectrum of opportunities. 01:15:54.300 --> 01:15:57.300 SPEAKER_00: It's not just the utility or the energy 01:15:57.300 --> 01:16:00.300 SPEAKER_00: or the emissions or the electrification. 01:16:00.300 --> 01:16:03.300 SPEAKER_00: This is the community coming together around important work 01:16:03.300 --> 01:16:06.300 SPEAKER_00: that will have a transformational impact on this area. 01:16:06.300 --> 01:16:09.300 SPEAKER_00: Again, $27.5 million for the particular opportunity, 01:16:09.300 --> 01:16:11.300 SPEAKER_00: should we win? 01:16:11.300 --> 01:16:13.300 SPEAKER_00: And so hopefully this is not the first time that I'll be talking 01:16:13.300 --> 01:16:14.300 SPEAKER_00: to you about this grant. 01:16:14.300 --> 01:16:16.300 SPEAKER_00: Hopefully I get to talk to you again about it 01:16:16.300 --> 01:16:18.300 SPEAKER_00: with the additional detail, the specific partners, 01:16:18.300 --> 01:16:19.300 SPEAKER_00: lots of fun images. 01:16:19.300 --> 01:16:22.300 SPEAKER_00: Today we're talking about the approval to submit. 01:16:22.300 --> 01:16:25.300 SPEAKER_00: That'll be submitted by the end of the month. 01:16:25.300 --> 01:16:29.300 SPEAKER_00: We expect interviews for finalists in the very early part of next year 01:16:29.300 --> 01:16:32.300 SPEAKER_00: with awards around spring of next year 01:16:32.300 --> 01:16:35.300 SPEAKER_00: and asking for authorization to accept the award 01:16:35.300 --> 01:16:37.300 SPEAKER_00: in the middle of next year. 01:16:37.300 --> 01:16:41.300 SPEAKER_00: And then the period of delivery will be between 28 and 32. 01:16:41.300 --> 01:16:43.300 SPEAKER_00: So this is something that we're really excited about 01:16:43.300 --> 01:16:45.300 SPEAKER_00: to really help move forward electrification, 01:16:45.300 --> 01:16:47.300 SPEAKER_00: accelerate it while keeping rates low 01:16:47.300 --> 01:16:53.300 SPEAKER_00: and having a very meaningful impact on our community. 01:16:53.300 --> 01:16:54.300 Unknown: Fantastic. 01:16:54.300 --> 01:16:56.300 SPEAKER_02: Dr. Herron? 01:16:56.300 --> 01:16:58.300 Unknown: You may have said this, James, 01:16:58.300 --> 01:17:01.300 SPEAKER_07: and I might have been reading something else, 01:17:01.300 --> 01:17:05.300 SPEAKER_07: but what made us choose this area? 01:17:06.300 --> 01:17:08.300 SPEAKER_00: So this area, we had deep engagement 01:17:08.300 --> 01:17:12.300 SPEAKER_00: with our community benefit organizations. 01:17:12.300 --> 01:17:15.300 SPEAKER_00: Also, there was a number of plans that were put together 01:17:15.300 --> 01:17:18.300 SPEAKER_00: by Sac City as an example that identified measures 01:17:18.300 --> 01:17:23.300 SPEAKER_00: that would help reduce GHG emissions in these areas. 01:17:23.300 --> 01:17:25.300 SPEAKER_00: And when we're looking at these opportunities, 01:17:25.300 --> 01:17:27.300 SPEAKER_00: it's not that this is all the work that we're doing. 01:17:27.300 --> 01:17:29.300 SPEAKER_00: What we're trying to do from a grant's perspective 01:17:29.300 --> 01:17:31.300 SPEAKER_00: is we're making sure that we're putting together 01:17:31.300 --> 01:17:34.300 SPEAKER_00: the most compelling package of products to secure those funds. 01:17:34.300 --> 01:17:36.300 SPEAKER_00: Because when we're helping accelerate dollars here, 01:17:36.300 --> 01:17:38.300 SPEAKER_00: we're freeing up bandwidth to use our dollars 01:17:38.300 --> 01:17:41.300 SPEAKER_00: in a broader sense to support the community. 01:17:41.300 --> 01:17:44.300 SPEAKER_00: So this particular area had the most robust set of projects 01:17:44.300 --> 01:17:47.300 SPEAKER_00: that we thought would be most competitive to win these dollars. 01:17:47.300 --> 01:17:50.300 SPEAKER_00: Got it. Thank you. 01:17:50.300 --> 01:17:53.300 Unknown: Dr. Kurtz district, yes? 01:17:53.300 --> 01:17:58.300 Unknown: He was very politely saying this because I got to him first. 01:17:58.300 --> 01:18:03.300 Unknown: James, don't leave tonight without me talking to you. 01:18:03.300 --> 01:18:05.300 SPEAKER_00: I'm happy. 01:18:05.300 --> 01:18:08.300 Unknown: I need to ask a question of our general counsel. 01:18:08.300 --> 01:18:12.300 SPEAKER_10: James mentioned partnering with Sac RT, which is my employer. 01:18:12.300 --> 01:18:17.300 SPEAKER_10: Do I need to recuse myself from this discussion and vote? 01:18:17.300 --> 01:18:19.300 Unknown: I do not believe so. 01:18:19.300 --> 01:18:21.300 SPEAKER_03: We can talk online afterwards. 01:18:21.300 --> 01:18:25.300 SPEAKER_03: We're not voting tonight, so this is just going to be on the consent calendar. 01:18:25.300 --> 01:18:27.300 SPEAKER_03: I can look at that. I don't believe so. 01:18:27.300 --> 01:18:30.300 SPEAKER_03: The money isn't going directly to RT, so probably okay. 01:18:30.300 --> 01:18:32.300 Unknown: I think it's fine. 01:18:32.300 --> 01:18:34.300 SPEAKER_10: Thank you. 01:18:34.300 --> 01:18:36.300 Unknown: Okay. Any other questions? 01:18:36.300 --> 01:18:38.300 SPEAKER_02: I'll just add to this. 01:18:38.300 --> 01:18:42.300 SPEAKER_08: Sorry, I just walked here from downtown because Freew is close. 01:18:42.300 --> 01:18:48.300 SPEAKER_08: But we've seen these grants. 01:18:48.300 --> 01:18:50.300 SPEAKER_08: They're very, very competitive. 01:18:50.300 --> 01:18:52.300 SPEAKER_08: You often don't get it in the first time, 01:18:52.300 --> 01:18:55.300 SPEAKER_08: but there's been at least one that I have watched over there 01:18:55.300 --> 01:18:58.300 SPEAKER_08: in support of my nonprofit role that we eventually did get. 01:18:58.300 --> 01:19:00.300 SPEAKER_08: So just to set expectations, if they come back and say, 01:19:00.300 --> 01:19:03.300 SPEAKER_08: we didn't get it, don't be surprised. 01:19:03.300 --> 01:19:06.300 SPEAKER_08: But it's certainly something that you can eventually get 01:19:06.300 --> 01:19:08.300 SPEAKER_08: if you're persistent with it. 01:19:08.300 --> 01:19:11.300 SPEAKER_08: So good luck. It's a wonderful project. 01:19:11.300 --> 01:19:14.300 SPEAKER_08: Hopefully we'll get it right off the bat with that said. 01:19:14.300 --> 01:19:15.300 SPEAKER_08: Thanks. 01:19:15.300 --> 01:19:18.300 Unknown: Yeah, it really kind of ties in nicely with the presentations 01:19:18.300 --> 01:19:20.300 SPEAKER_02: we just had and the need for this kind of grant. 01:19:20.300 --> 01:19:25.300 SPEAKER_02: And I don't know if anybody has any other thoughts on this or any, 01:19:25.300 --> 01:19:29.300 Unknown: but it seems to me that this is a no-brainer that we go give just after 01:19:29.300 --> 01:19:32.300 Unknown: give staff direction to go after this money. 01:19:32.300 --> 01:19:33.300 Unknown: Yeah? You okay? 01:19:33.300 --> 01:19:36.300 SPEAKER_02: All right. James, go get it. 01:19:36.300 --> 01:19:39.300 SPEAKER_02: Get or done. 01:19:39.300 --> 01:19:42.300 SPEAKER_07: Get or done. Thank you so much. 01:19:42.300 --> 01:19:43.300 SPEAKER_02: Let's see. 01:19:43.300 --> 01:19:46.300 SPEAKER_02: So the next item on the agenda is public comment for items, 01:19:46.300 --> 01:19:48.300 SPEAKER_02: not on the agenda. 01:19:48.300 --> 01:19:51.300 SPEAKER_02: Yeah, and we did not have any public comment for item, 01:19:51.300 --> 01:19:52.300 SPEAKER_03: agenda two. 01:19:52.300 --> 01:19:53.300 SPEAKER_03: At all, for two or anything. 01:19:53.300 --> 01:19:58.300 SPEAKER_02: And I don't see any hands raised for items on the agenda either. 01:19:58.300 --> 01:19:59.300 SPEAKER_03: Okay. Fantastic. 01:19:59.300 --> 01:20:02.300 SPEAKER_02: Since we haven't received any cards or any other comments, 01:20:02.300 --> 01:20:08.300 SPEAKER_02: then we will go ahead and close out our meeting. 01:20:08.300 --> 01:20:10.300 SPEAKER_02: So thank you so much for wonderful evening presentations. 01:20:10.300 --> 01:20:11.300 SPEAKER_02: Appreciate it.