Policy Mar 11 2026

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Unknown: Hello, everybody.

SPEAKER_13: I just wanted to give you a little update.

SPEAKER_13: Brandon Rose has been fighting traffic to get here,

SPEAKER_13: and he just pulled in, so we're going to wait a couple of minutes for him to come in.

Unknown: Hello, everyone.

Unknown: Good evening, and welcome to the Policy Committee and Special Board Meeting of March 11th,

SPEAKER_13: 2026.

SPEAKER_13: This room is equipped with a safety alarm.

SPEAKER_13: If the alarm sounds, please leave in an orderly manner via the exits to the lobby or behind the dais.

SPEAKER_13: Assemble in front of the building and wait to hear the all-clear announcement from security before reentering.

Unknown: This meeting is being recorded and can be accessed on SMUD's website.

Unknown: Please remember to unmute your microphone when speaking in order that our virtual attendees may hear you.

SPEAKER_13: The microphone will display a green indicator light when the mic is on.

Unknown: For members of the public attending in person who wish to speak at this meeting,

SPEAKER_13: please fill out a speaker's request form located on the table outside this room and hand it to SMUD's security.

Unknown: Members of the public attending this meeting virtually who wish to provide verbal comments during the committee meeting

SPEAKER_13: may do so by raising the raise hand feature in Zoom,

SPEAKER_13: or you can press star nine when you're dialed into the telephone toll-free number.

SPEAKER_13: At the time when public comment is called.

Unknown: Technical support staff will enable the audio for you when your name is announced during the public comment period.

Unknown: You may also submit written comments by emailing them to publiccommentatsmud.org.

Unknown: Written comments will not be read into the record,

SPEAKER_13: but will be provided to the board electronically and placed into the record of the meeting if received within two hours after the meeting ends.

SPEAKER_13: Chief Legal Officer, please conduct the roll call.

SPEAKER_13: Director Kurth.

Unknown: Director Rose.

SPEAKER_06: Here.

SPEAKER_13: Chair Herber.

SPEAKER_06: Here.

Unknown: Director Rose and Chair Herber are present.

SPEAKER_06: Director Kurth is absent.

SPEAKER_06: Also present are directors.

SPEAKER_06: Bowie Thompson, Fishman, Sanborn, and President Tamayo.

Unknown: And Director Kurth wanted me to let everybody know that he and his wife are traveling to a conference tonight,

SPEAKER_13: and he is listening in so he can hear all of the comments and the presentations,

SPEAKER_13: and he hopes that the commenters will find a moment to chat with him about their comments whenever it's convenient for them.

SPEAKER_13: So while Director Kurth will not be here tonight,

SPEAKER_13: we have the rest of us who are going to begin with item number one on tonight's agenda,

Unknown: which is to discuss the process and principles for renewable energy development.

Unknown: Oh, you know, I should say who the presenters are.

SPEAKER_13: That was on the next page.

SPEAKER_13: But John Olson is the Director of Energy Trading and Contracts.

SPEAKER_13: Emily Bikini is the Director of Safety, Environmental, and Real Estate Services.

SPEAKER_13: And Amanda Beck is the Manager of Project Development and Renewable Generation.

Unknown: John.

SPEAKER_13: Thank you, Director Herber.

Unknown: Thank you for the opportunity to sit down tonight and have a conversation about renewable energy development.

SPEAKER_11: The staff here are excited to have this conversation.

SPEAKER_11: And I'm going to kick it off, and then we're each going to talk about some areas.

SPEAKER_11: I'll start with conversation around how SMUD procures renewable energy projects in general,

SPEAKER_11: from SMUD projects to third-party projects.

SPEAKER_11: Emily will then take over and talk a little bit about environmental leadership.

SPEAKER_11: And then Amanda will finish it up with a deep dive into our principles for renewable energy development

SPEAKER_11: and some key projects that kind of show how they've been working.

Unknown: So when you look at how SMUD procures renewable energy as far as being part of our overall portfolio,

SPEAKER_11: there's kind of three ways that a project would come into our portfolio.

SPEAKER_11: The first is SMUD-specific develop projects,

SPEAKER_11: and that's all the way through engineering, procurement, and construction.

SPEAKER_11: And what that means is SMUD has in the entire process, and we end up owning that specific project.

SPEAKER_11: It's managed throughout the entire life cycle with construction contracts,

SPEAKER_11: and SMUD is in control and manages the land design, permitting, interconnection, and contracting model.

SPEAKER_11: And this is important to see as a comparison to, say, third-party projects.

SPEAKER_11: And then SMUD itself is actually responsible for the CEQA process,

SPEAKER_11: which is the California Environmental Quality Act.

Unknown: Then there is SMUD-developed projects that result in a PPA with a third party,

SPEAKER_11: but SMUD has the land interest.

SPEAKER_11: In that case, we do the contracting, and it's really, think about it's a method of acquisition.

SPEAKER_11: So in the first one, we're owning it.

SPEAKER_11: In the second one, we have the land interest, but we're doing a PPA,

SPEAKER_11: a power purchase agreement with a third party to be able to manage or to own that asset.

SPEAKER_11: So it's really about the level or the management or the acquisition is what's different.

SPEAKER_11: In this case, though, because SMUD has the land interest,

SPEAKER_11: SMUD manages the land design, permitting, interconnection, and contracting model.

SPEAKER_11: And SMUD is still responsible for CEQA because we have the land side of it.

Unknown: The big difference with when you go to a third party is, well, I'll back up ASAP, excuse me.

SPEAKER_11: When you go to a third party, there's a number of ways you can engage with a third party.

SPEAKER_11: They can be unsolicited offers.

SPEAKER_11: Our staff is consistently working with developers and partners and across basically the entire west,

SPEAKER_11: but specifically in California, on what are some possible opportunities.

SPEAKER_11: And so we're well known with the developers.

SPEAKER_11: The developers have an understanding of who SMUD is.

SPEAKER_11: Once in a while, they'll come up, I've got a good idea, and they bring us an unsolicited offer.

SPEAKER_11: That's one methodology.

SPEAKER_11: The second methodology is we can do something very structured and we go out for a request for proposal,

SPEAKER_11: and we'll have a very detailed list of what we want to be able to be looked at.

SPEAKER_11: And at that point, everybody will issue a formal response to that,

SPEAKER_11: and then we'll go through a process of grading those or prioritizing them on their responses.

SPEAKER_11: So solicited and unsolicited is the big difference there.

Unknown: And then I guess there's another component, an existing project with an expired PPA.

SPEAKER_11: So in an example, it could be a project that is coming end of life.

SPEAKER_11: It might be one of ours that we want to repower, or it could be somebody else's that they're not going to do anything further with it.

SPEAKER_11: So like our Geyser's projects that we brought forward last time, that's not a new project.

SPEAKER_11: It's managed with a PPA, but we brought it forward because someone else didn't do the PPA.

SPEAKER_11: So that would be the example.

SPEAKER_11: And here's the big difference from the first two, is the third party in this case manages the land design permitting interconnection

SPEAKER_11: and proposes a contract to SMUD.

SPEAKER_11: All of the same events and all of the same specifications happen.

SPEAKER_11: It's just who's in charge of those.

SPEAKER_11: In a third party PPA, it's the third party.

SPEAKER_11: When SMUD has land interest, it's SMUD.

Unknown: And then the county, in a third party case, the county or the city is the lead agency when it comes to CEQA, not SMUD in that case.

Unknown: I think it's important to understand a few timelines of what would be done over the years.

SPEAKER_11: I'm going to go all the way back to 2003 and talk about environmental leadership where it really started, came into form for SMUD, and that's through SD7.

SPEAKER_11: So that was adopted a long time ago, around 2003.

SPEAKER_11: And I'm going to jump forward quite a bit to 2021 when SMUD adopted, or the zero carbon plan was approved in 2021.

SPEAKER_11: And in August of 2021, so that was April, in August of 2021, the principles for renewable energy development were included for PPAs for SMUD developed projects.

SPEAKER_11: So we had these principles and we formalized them as part of our process in August of 2021.

Unknown: In September of 2023, SD7 was updated to include wording that includes minimizing impacts on tribal and culture resources.

SPEAKER_11: So what I think you're seeing here is a progression of how we've evolved over time with these.

SPEAKER_11: It's hard to be perfect every moment along the way.

SPEAKER_11: And as we get smarter, we make adjustments.

SPEAKER_11: And I think this is what this timeline kind of shows.

SPEAKER_11: In October of 23, the principles for renewable energy development were included in PPAs for third party projects at that point.

SPEAKER_11: And then in October of 2024, SD7 was updated to include enhancing regional biodiversity.

SPEAKER_11: So again, SD7 has continued to evolve.

SPEAKER_11: How we are managing our counterparties and our development has continued to evolve.

SPEAKER_11: Is there any questions from anybody on that so far?

SPEAKER_11: I just wanted to do a test.

SPEAKER_11: Okay.

Unknown: Specifically around SD7, I think it's a good place to just kind of level set for everybody to know what we're talking about when we say strategic direction 7, environmental leadership.

SPEAKER_11: There's a couple of key components to that.

SPEAKER_11: And the first one is to conduct business and affairs and operations in a sustainable manner by continuously improving pollution prevention,

SPEAKER_11: minimizing environmental impacts, including tribal and other cultural impacts, conserving resources, enhancing regional biodiversity,

SPEAKER_11: and promoting equity within SMUD's diverse communities.

SPEAKER_11: And I'm reading the line for line for a very specific reason, not because you can't read it yourself,

SPEAKER_11: but I think it's really good to hear these words of specifically what these principles, or excuse me, what SD7 is really all about.

SPEAKER_11: And the second item is about providing leadership and innovation to improve air quality to reduce greenhouse gas emissions.

SPEAKER_11: Third item is promote efficient use of energy by our customers.

SPEAKER_11: And fourth one is advance the electrification of vehicles, buildings, and equipment.

SPEAKER_11: And lastly, attract and build partnerships with customers, communities, policy makers, the private sector, and other stakeholders.

SPEAKER_11: So that is what SD7 is.

SPEAKER_11: It's about environmental leadership.

Unknown: My last slide is a little bit about the governance process on how a renewable project progresses.

SPEAKER_11: So if we start over on the left side, remember I said that we get solicited and unsolicited offers?

SPEAKER_11: So for those unsolicited offers and those relationships that we've developed with the developers,

SPEAKER_11: we'll give them the principles as early as we can in the relationship.

SPEAKER_11: So most of the time, they'll have them ahead of time.

SPEAKER_11: So that is a key item so that anything they bring to us comes through the filter of the principles of renewable energy.

SPEAKER_11: But there are times, as a brand new developer or a brand new project, and it comes to us,

SPEAKER_11: the moment that proposal comes to us, we will give them the principles of renewable energy development.

SPEAKER_11: When that proposal does hit us, then Emily's group, they do a complete initial screening to say,

SPEAKER_11: does this look like it's going to be something that we can fit within our values and our virtues,

SPEAKER_11: and they make a decision yes or no.

SPEAKER_11: And so these first three kind of go simultaneously, and SMUD will provide those principles, again,

SPEAKER_11: as I stated, to the developer at that point in time.

SPEAKER_11: And that's really the latest it can happen.

SPEAKER_11: So what I want to say, it's an important caveat in here, is most of the time, or a large percentage of the time,

SPEAKER_11: they already have them, but the fail safe is, as soon as someone submits something to us,

SPEAKER_11: we're going to make sure that they get the principles as a copy.

Unknown: Once then SMUD's environmental staff confirms alignment with these principles as part of their checklist of

SPEAKER_11: items, does this proposal that they've submitted, does this align with the principles, and do we go forward?

SPEAKER_11: And then we get to what we call the letter of intent, and really, the letter of intent allows you to have a deeper conversation.

SPEAKER_11: The grand majority of them are non-binding.

SPEAKER_11: Once in a while there would be something binding, but then if it's going to be binding, it goes to a higher level of approvals.

SPEAKER_11: So most of the time, it's generally, here's the framework we'd like to do.

SPEAKER_11: It really allows you to get serious about the conversation.

SPEAKER_11: So, again, the board would know about anything that was binding.

SPEAKER_11: If it's not binding, it just allows us to be able to further conversations.

SPEAKER_11: So that is the next step in the process that we would like to have deeper conversations.

SPEAKER_11: And then the next is developer submits plan for how they will meet the principles.

SPEAKER_11: So, sometimes these can happen at the same time.

SPEAKER_11: Sometimes there's some feedback loops and there's some time in between, but specifically the developers have to provide us with a specific list

SPEAKER_11: on how they're going to meet the principles with the project that they've submitted.

Unknown: Next in line is completing contract negotiations.

SPEAKER_11: So we've gone through a lot of time, to be honest with you, from where I started to where I'm at right now.

SPEAKER_11: This could be several years.

SPEAKER_11: So I've really fast forwarded to completing these contract negotiation terms.

SPEAKER_11: But that is where we have finalized and we have something that's ready.

SPEAKER_11: At this point, it's already been through the lens of the principles of renewable energy development.

SPEAKER_11: We have looked at it.

SPEAKER_11: We've compared it to other options at that point.

SPEAKER_11: It's a contract that staff believes is ready for board to make for consideration to approve up or down.

SPEAKER_11: And at that point in time, we would bring that to the board and the SMUD considers the PPA.

SPEAKER_11: And part of that presentation will be specifically how this project meets the principles of renewable energy development.

SPEAKER_11: At that point, in this case, if it's voted down or delayed or something, we would kind of handle that process.

SPEAKER_11: But in this case, assume that the approval is happening.

SPEAKER_11: If there's anything material that changes between the time that you approve a PPA and the time it goes live or COD, commercial delivery,

SPEAKER_11: anything that's material changes have to be approved by the board.

SPEAKER_11: And that could be scope, time, megawatts, price, just anything material about that has got to come back to the board for approval as an amendment to the contract.

Unknown: And that is how PPAs will go through the process.

Unknown: I'm going to pass it to Emily, who will be talking about the environmental attributes.

Unknown: Thanks, John.

Unknown: Good evening.

SPEAKER_04: Emily Bikini, I'm the director for safety, environmental, and real estate services.

Unknown: She broke it.

SPEAKER_11: I pushed the wrong button.

Unknown: Did you push that?

SPEAKER_10: I don't know.

SPEAKER_04: Thank you.

SPEAKER_04: I don't know what exactly I pushed.

SPEAKER_04: Okay.

SPEAKER_04: This is the slide I want to talk to.

SPEAKER_04: So I'm going to talk a little bit about how project development aligns with the land use or entitlement process.

SPEAKER_04: Regardless of whether it's a SMUD led project or a third party led project, either developer is going to be working on project siting.

SPEAKER_04: They're going to start out looking to see where willing land sellers might be located, understand how close those project sites are to existing resources like transmission lines,

Unknown: and then get an initial screening of what kind of environmental constraints may be present on the site.

SPEAKER_04: If the developers are feeling pretty positive, then they'll move forward and conduct some environmental and technical studies,

SPEAKER_04: going to be looking at things like a wetland delineation to understand what kind of biological constraints might be on site,

SPEAKER_04: also undertaking things like a geotechnical study to understand and help inform the next phase, which would be the project engineering,

SPEAKER_04: where they can take the data that's collected from the technical studies and incorporate that into the project design.

SPEAKER_04: At about that time, the developer has enough information about the project that they're going to start their environmental review process.

SPEAKER_04: And then the lead agency, again, whether that's SMUD or another county or city, will start the California Environmental Quality Act review process.

SPEAKER_04: Included in that environmental review is an opportunity for the public to provide input and feedback on the project.

Unknown: And then ultimately, the lead agency will determine whether to approve the environmental review for the project and then the project in and of itself.

SPEAKER_04: Again, the SMUD board would only consider projects for which we are developing where we have a land interest,

SPEAKER_04: and then the city or county in which the project is located, they would be the lead agency for those other third-party developed projects.

Unknown: And then after the CEQA process is completed, then the project will start to work through their land entitlement process,

SPEAKER_04: getting any sort of building or grading permits, tree permits that might be needed to move forward.

Unknown: All right. I want to talk a little bit more about Strategic Direction 7.

SPEAKER_04: So SMUD has a long history of environmental leadership through our board's SD7, the first part of which is shown under this slide.

SPEAKER_04: John showed the entire text of the SD a few slides ago.

SPEAKER_04: And then under the board's direction, we use this environmental leadership process to drive the process we follow to pursue renewable energy projects.

Unknown: As John mentioned, the Strategic Direction 7 has been updated several times.

SPEAKER_04: Most recently in 2023, we added the language, including tribal and other cultural impacts to the SD.

SPEAKER_04: This effort signaled that SMUD understands the important value that potential cultural and tribal cultural resources provide,

SPEAKER_04: and an increased awareness of what might be present at our project sites and how our projects may impact those resources.

SPEAKER_04: Then in 2024, we added the phrase, enhancing regional biodiversity, which asked staff to consider how we would go beyond,

SPEAKER_04: how we would look for projects, renewable energy projects that go beyond environmental leadership and may have a beneficial impact on the environment through biodiversity enhancement.

Unknown: The environmental services team supports both SMUD developed projects and power purchase agreement projects in conducting environmental review.

SPEAKER_04: We have internal databases that we query to understand what kind of biological resources may be present on the project site.

Unknown: We also query a program called Transect, which provides additional information on biological resources, again, things like bird nests, locations, endangered species habitat.

Unknown: Transect also provides us with some information on local land use permitting.

Unknown: We query the California Historic Resource Information Center.

SPEAKER_04: This database provides information on cultural and tribal cultural resources.

SPEAKER_04: And then we also request a sacred lands file search from the California Native Heritage Commission.

SPEAKER_04: These databases evolve over time as additional information becomes available and is shared with the managers of those databases.

Unknown: For third party PPAs, we'll also look to see whether or not CEQA has been prepared for those projects.

SPEAKER_04: If so, we would look to see and understand if the project would have any significant and unavoidable impacts, what mitigation measures need to be incorporated to reduce significant impacts to a less than significant level, any areas of controversy, and how tribal consultation has occurred.

Unknown: At this stage, we could rule out a project if we found the potential for impacts that would be out of alignment with Strategic Direction 7.

SPEAKER_04: This next slide provides an overview of the general California Environmental Quality Act, or CEQA, process.

SPEAKER_04: First, the intent of CEQA is public disclosure.

Unknown: We want to inform the public and the decision makers about the potential impacts associated with the project so that they can use that information to make that decision.

SPEAKER_04: There are about 20 different environmental areas analyzed in a CEQA document that range from biological resources to traffic and transportation to mineral resources.

Unknown: The analysis is condition specific based off of the resources present and what the project impacts look like to dictate the level of review that would be required.

SPEAKER_04: An example of this, we rarely see projects that would have an impact on mineral resources, one that would result in the loss of availability of a locally important mineral resource, so our mineral sections tend to be pretty succinct.

SPEAKER_04: If the mitigation measures won't reduce an impact to less than significant, then the lead agency needs to consider a statement of overriding considerations.

Unknown: That essentially states that the benefits of the project outweigh the impacts that it would cause.

Unknown: We've done that at SMUD for our Solano IV project.

SPEAKER_04: We have a statement of overriding considerations specific to air quality impacts.

SPEAKER_04: The analysis determined that emissions generated during construction activities for a couple of months during construction would exceed the applicable thresholds, but the long-term benefit of this zero carbon project would override that short-term air quality impact.

Unknown: As part of the California Environmental Quality Act process, tribal consultation is required.

Unknown: This was most recently required under Assembly Bill 52, which was passed in 2014.

Unknown: That requires, again, lead agencies to have meaningful consultation with California Native American tribes.

Unknown: SMUD regularly consults with four tribes here in Sacramento County.

SPEAKER_04: The Wilton Rancheria, the Ione Band of Miwok Indians, the United Auburn Indian Community, and the Shingle Springs Band of Miwok Indians.

SPEAKER_04: We also reach out to local tribes if the projects are located in Solano or El Dorado counties.

Unknown: Additionally, we have regular meetings with those four tribes at a cadence of their choosing to discuss both projects and other SMUD activities.

Unknown: In regards to outreach with other stakeholders, SMUD goes above and beyond what's required under CEQA.

Unknown: We reach out to landowners and tenants located within at least 500 feet of a project site to inform them of the project.

SPEAKER_04: We might increase that outreach depending on how close the nearest neighbor is just to make sure that the surrounding community has an understanding of the project.

SPEAKER_04: We also have copies of our CEQA document available online at smud.org.

SPEAKER_04: We have hard copies available at both CSC, the Customer Service Center, and our East Campus Operations Center.

SPEAKER_04: And we publish notices in Sacramento Bee and other local newspapers.

SPEAKER_04: And so now I'm going to transfer to Amanda, who will walk us through our principles.

Unknown: Let's see if I can get this.

SPEAKER_05: Okay. Well, thanks, everyone.

SPEAKER_05: So again, my name is Amanda Beck. I'm the Manager of Renewable Development at SMUD.

SPEAKER_05: I'm going to talk about our principles for renewable energy development.

SPEAKER_05: So just a little bit of history on this.

SPEAKER_05: You know, SMUD's been developing projects for many, many years.

SPEAKER_05: And we've used these principles really in our development process, though just not written down.

SPEAKER_05: So the attempt here in 2021 was to take really what our siting process was, what we thought was important, what our goals were as part of SD7, and build that out for renewable development.

SPEAKER_05: So looking at the siting of renewable development, how that's done, the design of those projects, how it's constructed, and then into operations, how we manage those projects long-term with those principles.

SPEAKER_05: So there's six principles. I'm going to walk through each one.

SPEAKER_05: And just to back up a little bit, those principles were created internal to SMUD.

SPEAKER_05: We had a variety of team members throughout the organization, highly matrixed team, legal and environmental, and our energy trading contracts teams, and our transmission operations teams,

SPEAKER_05: really to get a robust understanding of how we did development and make sure we got all the stakeholders engaged.

SPEAKER_05: We also engaged with some folks from Defenders of Wildlife in conversation where we took some of the siting principles that were developed as part of the energy commissions process and built those into our thinking as we were developing these principles.

SPEAKER_05: So the first principle is a land use principle. This is really intended for development.

SPEAKER_05: So the idea here is to prioritize siting on previously developed lands, but where we have limited resource for previously developed lands.

SPEAKER_05: And previously developed lands could be industrial, it could be commercial, it could be farming, right, for those properties.

SPEAKER_05: So we do have limited resource, so we go out, we look very hard at and ensure that those previously developed lands, that we're looking for those first.

Unknown: And if we can't find those previously developed lands, or even on those previously developed lands, the intent here is to ensure there's avoidance and minimization of impacts to sensitive resources.

SPEAKER_05: So cultural resources, biological resources, wetlands, and of course the tribal resources.

Unknown: So the intent with providing this up front to our developers, as John was talking about, is really to get them thinking how we think about siting.

SPEAKER_05: That you want to do all your surveys first and then do your design based on those surveys with avoidance and minimization built into that planning.

Unknown: So then if there's a, you know, avoidance, minimization, the next thing is mitigation.

SPEAKER_05: We like to see where developers and ourselves are really thinking about what are the things that we can do engaging with our stakeholders, engaging with our, and understanding what our impacts might be.

SPEAKER_05: What are the things we can do to help include mitigation measures as part of a project?

Unknown: So that's the intent here. It's really to give that full, robust understanding for developers of how we look at how they should be siting projects.

Unknown: Okay. So the next principle is another land use principle.

SPEAKER_05: So this is once you've cited a project, it's really trying to get the thinking around how do you design that project and how do you construct that project and plan for that to ensure that the techniques that you're using, the equipment that you're using,

Unknown: is ultimately will help to restore ecosystem function through establishment of native vegetation.

SPEAKER_05: So some of the things that are included here are restricting use of herbicides and pesticides,

Unknown: identifying opportunities for grazing or for vegetation management, planting a pollinator habitat on the sites, or seeding with native vegetation and the right timing for that during construction.

SPEAKER_05: So we look for that in the sustainable plans that John was mentioning when he was talking.

Unknown: We look for those ideas and those considerations as part of those plans.

SPEAKER_05: So another key component here, and you see it on the slide, is really we know that agriculture and siting and solar, they're both large land users and both very, very important in California and throughout the United States.

Unknown: So when we're looking at projects that we're looking at agricultural lands, even if they're disturbed, the intent here is to impart a desire for agricultural lands to continue to stay agricultural.

SPEAKER_05: So that may not be the exact same land use, but there's some opportunities through grazing, sheep grazing, planting a pollinator habitat to support surrounding land uses, dry crop farming, where we can continue to do some dry cropping.

SPEAKER_05: That's something we're looking at.

Unknown: Also, we have a desire to, if there's opportunities to grow food under those panels, that is something that is ultimately sort of a great opportunity for us.

SPEAKER_05: I haven't seen that quite yet, but we're hoping for it.

SPEAKER_05: So that's the second principle.

Unknown: Okay.

SPEAKER_05: So now we're kind of getting into the, like, where land use design and construction, the third principle is really talking about sort of further understanding of how those projects are designed and what construction practices will be used and the equipment that's going to be purchased.

SPEAKER_05: So there's employing design for construction practices that minimize ground disturbance to the maximum extent possible.

SPEAKER_05: The idea here is as much as possible to ensure that there's a preservation for topsoil to ensure long-term ecosystem health.

Unknown: So there's lots of different equipment, racking that you can use.

SPEAKER_05: There's lots of different ways you can grade a project site.

Unknown: But if you're making choices, equipment choices, that allow for the contour of the land, the projects to follow the contour of the land, it gives you a better opportunity for grading.

Unknown: So that's the intent here, is to get our developers thinking about how do you better ensure those contours are followed and you're minimizing the grading so that you're not having to take off topsoil and not utilize that later in the process.

SPEAKER_05: So that's the third principle.

SPEAKER_05: Now we're getting into really during construction.

SPEAKER_05: So this principle is a requirement for a plan for sustainable life cycle management of construction materials and project components during construction and operation.

SPEAKER_05: So this really speaks to life cycle management for waste during construction.

SPEAKER_05: There is a lot of waste on a construction site.

SPEAKER_05: The intent here is to have a target of at least 75% diversion of the materials on a project site.

SPEAKER_05: And that's during construction and in operation.

SPEAKER_05: So that includes solar panels.

SPEAKER_05: So we've seen where our contractors are building those requirements now into their contracts with their subcontractors.

SPEAKER_05: And we're seeing some good benefit here with removal of those waste streams.

SPEAKER_05: Okay.

Unknown: The next principle, Principle 5, is a sustainable regional workforce principle.

SPEAKER_05: So this, you know, when SMUD, when we issued our zero carbon plan, the idea was to bring the region along with us, the community along with us, give opportunities to the community to be able to engage with these projects.

SPEAKER_05: And so this speaks to how do we get projects, how do we get opportunities for jobs that are well paid jobs on these projects for, in particular for folks in our historically underserved community.

SPEAKER_05: So looking at our sustainable communities map and ensuring that we've got a pathway for our contractors to engage with our regional workforce program and engage with the labor that's going to come on the ground.

SPEAKER_05: And the labor that's going to come onto a site to give pathways for those folks to come onto a project site.

SPEAKER_05: So we've had some good success here.

SPEAKER_05: I'll talk a little bit more about it when I talk about the specific projects.

SPEAKER_05: But we are seeing some pathways on our Country Acres project and some success in internships, direct internships and apprenticeships on the projects.

Unknown: Our last principle is our sustainable materials and equipment principle.

SPEAKER_05: So this principle is about sourcing materials from equipment from companies that have human rights policies and the statement of supply chain ethics.

SPEAKER_05: So this is one of the more difficult principles to manage.

SPEAKER_05: But there are some programs, there's a solar supply chain traceability protocol that was issued that when we review sustainable communities plans or the plans that come in, that we ensure that we've got, they're referencing some of the tracing protocols that are included in the industry.

SPEAKER_05: And that there's the language about those traceability programs are included in the subcontracts that are being issued and the contracts are being issued for the projects.

SPEAKER_05: So the materials and the equipment that are being purchased, that they're being purchased from vendors that have supply chain ethics in mind when they're in their production.

SPEAKER_05: And there's a traceability protocol to be able to ensure that there's affidavits and certifications that those contractors are meeting those obligations.

SPEAKER_05: Okay. So that was our last principle.

SPEAKER_05: Now I'm just going to talk a little bit about some of the projects that we've utilized this, you know, the principles on.

SPEAKER_05: John talked about the first project that we, the first project that we employed the principles, formal principles on in the contracting was the Country Acres Project.

SPEAKER_05: So that was a self-developed project. So a lot of the siting requirements were included, those first two principles were included as we were planning and designing.

Unknown: But the contract was issued with this as an obligation to ensure the principles were met.

SPEAKER_05: There was a sustainable communities plan that was prepared and did meet those requirements.

SPEAKER_05: So a couple kind of interesting things that have come out of that.

SPEAKER_05: So one of the mitigations for that project helped to establish a property called Raccoon Creek Conservation Area.

SPEAKER_05: It's a 4,245-acre conservation area. It's about five times the size of the Central Park in New York, largest in our region.

SPEAKER_05: And the mitigation as part of that project was a key component to being able to complete that acquisition.

Unknown: It's created, as I said, pathways for some local jobs.

SPEAKER_05: We have a program through, there's an electrician pre-apprenticeship program that's in partnership with the Northern California Construction Training Organization.

SPEAKER_05: There's about 54 individuals who have been through that.

Unknown: There's a direct opportunity for those folks to work in unions, helps them get better opportunities to work in unions.

SPEAKER_05: And gives them a great pathway to be able to work on a project like of this type.

SPEAKER_05: We also have seen some internships for local students.

SPEAKER_05: We've seen some from Sac State and some of our local community colleges where people are working on that project site.

Unknown: So next project is our Drake Creek project. It's a 160-megawatt battery project.

SPEAKER_05: This project is cited on former nuclear property.

SPEAKER_05: So it's actually interconnected to our Rancho Seco 2 project, which was a solar project that we commissioned back in 2021.

SPEAKER_05: And we're now adding a battery to it, but we're citing that battery on land that is part of the former nuclear facility.

SPEAKER_05: They're kind of right behind the towers.

SPEAKER_05: And the plan here is the principles were included in that contract.

Unknown: We're waiting to receive that final sustainable communities plan.

SPEAKER_05: We have seen an initial draft, but we're waiting for the final.

SPEAKER_05: And we're actively engaging with that developer to ensure that there's compliance with the principles when they give us that final draft.

Unknown: The next three projects are third-party PPA.

SPEAKER_05: So there's the Grace Orchard Solar Project.

SPEAKER_05: So that is a project that's cited in Riverside County.

SPEAKER_05: The principles are included in there for contracting.

SPEAKER_05: Right now, that project is still in the sequel process.

SPEAKER_05: It's supposed to be completed in Q3 of 2026.

SPEAKER_05: So as you kind of saw on John's timeline, those sustainable communities plan that plan that took apply with the renewables,

SPEAKER_05: the principles for renewable energy development is forthcoming.

SPEAKER_05: And the teams are really engaged in ensuring that there's compliance there.

Unknown: The Hatchet Ridge Wind Project.

SPEAKER_05: So this is a project that's a wind project in Shasta County.

SPEAKER_05: So this one's been operating.

SPEAKER_05: So I think John was explaining how different procurement methods are ways that we procure.

SPEAKER_05: But this was a good opportunity.

SPEAKER_05: The project's been operating since 2010.

Unknown: And when we looked at how that project was designed and developed,

Unknown: Pattern Energy is the owner of that project.

SPEAKER_05: They, as part of the development, they planted over 62,000 trees as part of a reforestation effort.

SPEAKER_05: They made significant investments in the local region through education and community benefit funds.

SPEAKER_05: And these projects are pretty big opportunities for local communities to have revenues that would support the local region and schools.

Unknown: The last project I'm going to talk about is the Sun Zia Project.

SPEAKER_05: So this one's a very, very large development, wind development, and a 500 kV transmission line that goes from New Mexico where the wind decided to Arizona.

SPEAKER_05: So this project has a variety of, as you can imagine, that expanse, a variety of requirements.

SPEAKER_05: But I think one of the ones that, a couple that stood out to us, they're working on back conservation,

SPEAKER_05: with Bat Conservation International, and a local saguaro cactus grower to plant over 15,000 agave,

SPEAKER_05: and saguaros to benefit bats and birds, and other wildlife.

SPEAKER_05: And they're purchasing and restoring 1,100 acre property along the Rio Grande that will be donated to the National Wildlife Refuge System.

Unknown: So in closing, I think we've talked a lot about our process, talked a lot about our PPAs, talked about our environmental process, talked about these principles.

SPEAKER_05: We've evolved over time, and I think as John always says, we reserve the right to get better.

SPEAKER_05: And that is really, as we think about these principles, we're looking at them on a regular basis.

SPEAKER_05: We're looking at the projects.

SPEAKER_05: We're looking to ensure that their projects are meeting these requirements.

Unknown: But we know there's always opportunity to learn, take the lessons learned, and make revisions to our process.

SPEAKER_05: So that's where I'm going to close, and I'm happy to take any questions.

Unknown: Well, thank you for a very detailed presentation.

SPEAKER_13: We appreciate that.

SPEAKER_13: I don't know if any board members have a question.

SPEAKER_13: Maybe, yes, Director Sanborn.

Unknown: Thank you.

SPEAKER_07: Thank you so much for laying this all out.

SPEAKER_07: So I think everybody knows now what our process is today.

SPEAKER_07: I had mentioned to you, I mean, years ago when I found out that solar panels often have PFAS sprayed on them to keep the dust off, just checking.

SPEAKER_07: Is that anything that we, because I worry that those, if they do have PFAS, if we are not making sure they don't have PFAS, that that could end up poisoning the soil and not being able to use the agricultural land as ag in the future, or find out that we've contaminated it inadvertently.

Unknown: Not that they are required to label that they have PFAS on it.

SPEAKER_07: That's a whole other problem I'm trying to solve through legislation.

SPEAKER_07: But, yeah, if you could speak to that.

Unknown: We do look at the technical capability for projects when they come in and we're doing design review.

SPEAKER_05: We do look at the solar module technical specifications.

Unknown: We will know what's available in those technical specifications, if that's helpful.

Unknown: So do they tell you, because I don't think they have to tell you that there's PFAS on the panels.

Unknown: I have not seen PFAS listed on the solar module specifications.

SPEAKER_05: I haven't seen it listed on my mascara either, and apparently it's in there.

SPEAKER_07: I think it's one of those things to look at for contracting and making sure that they've certified that it's not on there.

SPEAKER_07: Because I do worry that that would be a problem for us down the road, because the science gets better and then they find it later.

SPEAKER_07: So just to bring that up, because that's under the sustainable material side of things.

SPEAKER_07: And then it says that the material has, anything has to come back to the board for approval in the process if it's materially different than what was agreed to.

SPEAKER_07: And I think we're going to talk later about, you know, board discussions about this later.

SPEAKER_07: But I do wonder if there's times when the board might want to know when things are happening at certain parts of the process as it goes through.

SPEAKER_07: So that's something we can talk about later.

SPEAKER_07: But I thank you very much.

SPEAKER_07: I think hopefully this was very helpful to people to know how we do this.

SPEAKER_07: Thanks.

SPEAKER_07: Yes, I think it's very helpful.

SPEAKER_13: And I have a question.

SPEAKER_13: I'm curious about what kind of discussion is held when we're thinking about owning a project or just getting a PPA.

SPEAKER_13: Because obviously we have more control if it's a SMUD owned project than if it's a third party.

SPEAKER_13: But from what you've listed up there, there's kind of a balance between the two.

SPEAKER_13: What goes into making that decision?

Unknown: I'll start and John can add.

SPEAKER_05: So for the developed projects where we're self-developing, we have a lot more control, as you said, on land use decisions, environmental review.

SPEAKER_05: And when the engineering around a project, right?

SPEAKER_05: So the contracting really comes down to affordability.

SPEAKER_05: What makes the most sense?

SPEAKER_05: And there's a variety of things we consider.

SPEAKER_05: So for instance, at a certain point, the investment tax credit wasn't available for SMUD if we were self-developing.

SPEAKER_05: It wasn't available for us.

Unknown: So that benefit, that significant benefit, made it a lot more sense for us to do a power purchase agreement.

SPEAKER_05: So even though we self-developed, it still made sense to do a power purchase agreement.

SPEAKER_05: We do now have a little bit more opportunity to do EPC on projects and self-construct and own them.

SPEAKER_05: That said, it's still a question of what makes the most sense for our rate payers from an affordability perspective.

SPEAKER_05: So that discussion happens.

SPEAKER_05: We do level A's cost of energy calculations, level A cost of storage calculations for both of those different contracting methods and net present value calculations for those.

SPEAKER_05: So really to look at what makes the most sense.

Unknown: The good thing is that with these principles and with the contracting and the way that we're doing that,

SPEAKER_05: we can keep the ethos, the intent of how we would do a project all the way through the contracting regardless,

SPEAKER_05: whether it's an EPC or whether it's a power purchase agreement.

SPEAKER_05: So that is, hopefully that answers the question.

Unknown: I'll just add a couple things to that.

SPEAKER_11: I think that the spirit of what Amanda said is exactly spot on.

SPEAKER_11: And it's not even just like, it's by project.

SPEAKER_11: You're really looking at what the evaluation at this given project, is this better to own, is this better to do PPA for, what's the cost of money.

SPEAKER_11: And at the end of the day, Amanda is amazing at her job, but there's a limited amount of resources for Amanda.

SPEAKER_11: And so really getting a diverse portfolio, not only of technology, but a diverse portfolio of ownership types is probably in the best interest.

SPEAKER_11: And ultimately, we'll be trying to evaluate those tradeoffs between what does it mean to own it, what does it mean to contract for it.

SPEAKER_11: But the key takeaway should be, regardless of the methodology or the commercial model, you should have the expectations that the principles have been met regardless.

SPEAKER_11: That's the takeaway.

Unknown: Very good. Thank you.

SPEAKER_13: Director Tamayo and then President Fishman.

Unknown: Oh, I'm sorry, the other way around.

Unknown: Thank you. Great presentation and provides a lot of real context and clarity, I think.

SPEAKER_14: Are you aware of any other utilities that have a similar set of principles that guide their renewable development?

SPEAKER_14: And sort of the other answer to your question is, what kind of reaction have we been getting from the renewable development community and are they excited about this?

SPEAKER_14: Are they going, oh my God, what are they doing?

SPEAKER_14: How would you characterize that?

Unknown: Amanda can kind of jump in as well.

SPEAKER_11: I do think that from using the principles is SMUD's chance to really get out their values at that moment.

SPEAKER_11: And each organization, different organizations might have slightly different values.

SPEAKER_11: But I do think within California, there's, I don't know anybody specifically that uses this, here's our list, kind of like what we do.

SPEAKER_11: But I do think they have dialogue because I think when you're talking to the developers, developers want to have a successful project as well.

SPEAKER_11: And so they try to troubleshoot as much as they can.

SPEAKER_11: And this is really, this works in coordination with them to be able to do it.

SPEAKER_11: At the same time, they're trying to get a deal done too.

SPEAKER_11: So they're trying to narrow it.

SPEAKER_11: I think it's the principles are a really good use to be able to make sure that we're aligned.

SPEAKER_11: It provides that alignment.

SPEAKER_11: I don't know if there's any necessarily any big shock or anything that's this is out of line or different or anything, if that's what you're looking for.

SPEAKER_14: I guess it's akin sort of in some ways to a PLA that we enact with some construction projects.

SPEAKER_14: It sort of sets out expectations ahead of time.

Unknown: Amanda, do you have anything to add?

Unknown: Only that, you know, I think there are, you know, in a previous life as a developer outside of SMUD, there was a variety of things that you needed to submit to various utilities.

SPEAKER_05: You know, wetland surveys, cultural surveys, biological surveys as part of your applications when you submitted.

SPEAKER_05: So they're, you know, in that role, we understood that we were getting evaluated on the criteria.

SPEAKER_05: So, you know, I think there are other utilities that have that use environmental criteria.

SPEAKER_05: So hopefully that answers the question.

Unknown: The other question I would have is on timing.

SPEAKER_14: I mean, we have these principles so that we end up with a project that with a good result, right?

SPEAKER_14: That's obviously the, but it also has to be, it has to happen in sequence so that we're not requiring a potential developer to spend a lot of money up front and then find out, oh, you're washing out because you're not meeting these criteria or it's going to be more expensive down the line than you thought.

SPEAKER_14: So it's just, it seems like we're doing an appropriate easing into the process, right?

SPEAKER_14: Take this step, spend this little bit of money, take the next step, spend a little bit more money, take this step, spend a little bit more money in time, and then we get to a place where it's like, okay, now we're in the CEQA process and we can go forward.

SPEAKER_14: Am I characterizing that reasonably well?

Unknown: That the timing is set up okay?

SPEAKER_14: I mean, I think so.

SPEAKER_05: John can add too, but I think the first two principles are really land use principles.

SPEAKER_05: Those principles are, they're not out of alignment with what developers should be doing in order to get a project through permitting.

SPEAKER_05: Okay.

SPEAKER_05: I mean, it's very challenging to permit a project in California.

Unknown: You have to take all of those things into account to ensure and design projects that are thinking about avoiding and minimization of impacts.

SPEAKER_05: So they're really not out of alignment with what they should be doing as a good steward of the land, as a developer.

Unknown: I think the, so we're just really telling them that we care a lot about that and we want to make sure that they're thinking about it.

SPEAKER_05: Okay.

SPEAKER_14: Thank you.

Unknown: Mr. President?

SPEAKER_13: Yeah, thank you.

SPEAKER_15: So looking at slide six on our PPA governance process, where is the first opportunity for the public to be aware of what this project is and what potential impacts it might have?

Unknown: If I can ask a clarifying question, when you say public, are you talking about the broader group or when would be bringing this forward from a SMUD perspective?

SPEAKER_11: Well, I'm asking if any of the steps leading up to our formal consideration, the Board's formal consideration of the PPA, are there any of those steps that include reaching out to stakeholders in the PPA?

SPEAKER_15: Or stakeholders in the community?

SPEAKER_15: For instance, environmental groups, like early on in the process of, hey, this is being proposed.

Unknown: This is the information that we have.

SPEAKER_15: Do you have other information that we should consider?

SPEAKER_11: Okay.

SPEAKER_11: I'll kick it off and then I'm going to probably ask Emily to talk about CEQA in a second.

SPEAKER_11: So perspective of most developers, and I'm going to say this at a generality because I'm sure there's specific cases where this is not the case, but most developers, to get a successful project, they know there's going to have to be some level of outreach.

SPEAKER_11: And especially if they've done their initial steps of just trying to do some of the identification, like even the database kind of searches, they're going to say this has got possibilities, this doesn't.

SPEAKER_11: If they see something there that they need to engage on, they're probably going to do that.

SPEAKER_11: So we would certainly encourage folks to get, or developers, to get involved locally whenever possible, as early as possible, to be able to make sure that there is good alignment along the way.

SPEAKER_11: But the first, to answer your question more succinctly about the first time it's really a public process, I'm going to pass it to Emily to talk about CEQA.

Unknown: Thanks, John.

SPEAKER_04: This gets back to more this slide, when the project is going through the environmental review process, and through that, or as part of that process, is completing their California Environmental Quality Act, their CEQA review, and the public outreach portions of that process.

SPEAKER_04: That's typically fairly far along in the development process. They have a really good understanding of what the project is, where it's going to be located, what the impacts are going to be.

SPEAKER_04: But there is that opportunity there during the public review period.

Unknown: I would just add, you know, good development, you're reaching out to stakeholders before you're doing the design work.

SPEAKER_05: So, you know, you're going to do your environmental review at site level, wetland studies, cultural studies, I talked, they only talked about biological studies.

SPEAKER_05: You're going to be doing your engineering. But those are just some of the considerations that are on the ground.

SPEAKER_05: You've also got to talk to your community that's surrounding, your adjacent landowners.

SPEAKER_05: You know, we look at neighborhood associations. So there's, look at, you know, a variety of different environmental organizations that we want to talk to, to see if there are any concerns.

SPEAKER_05: Talking to tribes as part of that development. So you're really, the way that we, that projects are developed, good development includes all of that stakeholder engagement up front, really well before you get to CEQA.

Unknown: Regardless of the CEQA process, where does what you were just describing, where does that fit into the timeline that's shown on slide six?

Unknown: The type of sort of preliminary engagement with the community.

Unknown: Slide six, I think we want.

SPEAKER_13: Yeah, you're on the right slide here.

SPEAKER_12: So there's probably a portion of that. By the time a developer submits a proposal, they've done the best practices by the developers that Amanda just described.

SPEAKER_11: That's all happening probably to the left of this bullet, of this point. So that's happening prior to that.

SPEAKER_11: By good developers. I'm not saying it happens every time, but that's what those next steps will prove out.

SPEAKER_11: But there's the engagement, the expectation of developer, and it's really in the developer's best interest to do that, because they don't want failed projects either.

SPEAKER_11: And they know what the formula for failed projects are is a lack of engagement.

SPEAKER_11: So they should be enticed. I'm not saying that you just let them say they're going to do that.

SPEAKER_11: My point is, good developers will be doing those things.

SPEAKER_11: Amanda, maybe you want to comment on how you do that from a self-developed project? Because it should be similar.

Unknown: Yeah, I mean, so when we initiate a project, one of the first things we prepare is a big stakeholder list, and that includes internal and external stakeholders.

SPEAKER_05: We may have had projects in that area in the past, so we know some of those stakeholders.

SPEAKER_05: So we start having meetings where we sit down with the local jurisdiction, we get information from them about, are there other stakeholders that we need to be talking to.

SPEAKER_05: And then we start scheduling meetings and really get information.

SPEAKER_05: We do briefings on projects where we lay out what we're planning.

SPEAKER_05: We may have, depending on how far we are in the design review and in the studies, we may, so we like to wait on working with the environmental groups until we know what's actually on the ground.

SPEAKER_05: So we want to get all those wetland studies and cultural studies and biological studies done so at least we know what's there.

SPEAKER_05: So when we present, do those briefings, we have those discussions.

SPEAKER_05: So we time the stakeholder engagement to happen before we do engineering and finalize our engineering, and we try to incorporate that into the design of that.

SPEAKER_05: Thank you.

Unknown: Yes, Director Sanborn.

SPEAKER_13: Thanks. Just playing off that for a minute.

SPEAKER_07: And I always said when we go for 2030, we have to keep the public with us.

SPEAKER_07: And to keep the public with us, I think they need to feel included.

SPEAKER_07: And relying on a C Corp that answers to investors about what's happening with our projects, I don't want to leave it up to chance that they're going to be good actors, I guess, is what I'm hearing we're hoping will happen.

SPEAKER_07: But there's no guarantee of it unless we require it, right?

Unknown: And I thank you for bringing that up because as I was talking, I'm thinking it maybe made the wrong choice of words.

SPEAKER_11: So we expect developers to be doing those things, but sometimes we don't know what's happening until a proposal shows up.

SPEAKER_11: At that point in time, that's when we'd given the principles.

SPEAKER_11: We work very hard to create those things downstream and work with good developers that have shown this is how they engage with communities.

SPEAKER_11: And the goal here truly would be to get a relationship with those developers and have the principles in their hands years before they're bringing us a project.

SPEAKER_11: It just, this is a very concise timeframe of like if something shows up, what would you do?

SPEAKER_11: And so I think what you're highlighting is exactly what we need them to do.

SPEAKER_11: We expect of them to do.

SPEAKER_11: But sometimes if something shows up, this is where the funnel gets tighter, I guess, is what I'm trying to say.

SPEAKER_07: Well, I guess, are we hoping they're going to do it and are we asking them or are we requiring them?

SPEAKER_11: I probably want to think about what that means.

SPEAKER_11: The requirement is around the principles.

SPEAKER_11: So if the principles layer these things out, then we're going to meet that.

SPEAKER_11: Or an engagement standpoint. I don't know, maybe Mandak might help me here a little bit.

SPEAKER_05: Yeah, I would just say that the principles currently don't have an obligation for community engagement.

Unknown: That's what I'm going to do. Okay. Thank you.

SPEAKER_13: That's a problem.

SPEAKER_13: Did anybody else want to say anything?

SPEAKER_13: Okay. Then seeing no one, we would thank the panel for your very excellent presentation.

SPEAKER_13: I think we now better understand what the process is and where the different touch points are for input.

SPEAKER_13: And at this time, to allow for a more efficient public comment period,

SPEAKER_13: we've granted 15 minutes for a public comment presentation.

SPEAKER_13: It will be Kate Kelly.

SPEAKER_13: The presentation from representatives of the following 10 organizations.

SPEAKER_13: Defenders of Wildlife, Sacramento 350, Sierra Club Motherlode Chapter, Sacramento Audubon Society,

SPEAKER_13: the Environmental Council of Sacramento, Central Valley Bird Club, California Four Wheel Drive Association, Inc.,

SPEAKER_13: Third Act Sacramento, California Native Plant Society, California State Parks Rangers Association.

Unknown: And by having Kate make this presentation, she is not representing all of those groups,

SPEAKER_13: but the ideas from all of those groups wrapped together.

SPEAKER_13: And so with that, let me introduce Kate Kelly.

Unknown: Thank you, Chair Herbert. Can everyone hear me okay?

Unknown: Yes, great. Thank you for this evening.

SPEAKER_03: Greetings to the board and staff.

SPEAKER_03: I appreciate your time this evening and the opportunity to discuss this.

SPEAKER_03: As the Chair introduced us, I'm speaking behalf of this environmental coalition.

SPEAKER_03: This is a coalition of local, regional, and national environmental organizations and recreation organizations.

SPEAKER_03: Collectively, we have decades of experience working on renewable energy projects, policy and siting issues.

SPEAKER_03: And collectively, we have reviewed hundreds of VIRs and shepherd projects through that process and been very familiar with it.

SPEAKER_03: So our comments are based on that background.

Unknown: We also represent biologists, cultural resource specialists.

SPEAKER_03: I am a land use and environmental planner, and so we built that into our comments.

SPEAKER_03: We are committed to renewable energy development and a clean future for California.

Unknown: We are also committed to SMUD being successful.

SPEAKER_03: And so tonight we are before you to work in partnership and in collaboration to try to find ways to make the next steps go even better.

SPEAKER_03: We have an elephant in the room, and I'm not here to talk about that elephant,

SPEAKER_03: but it is an example of things that we want to work to do better on so we don't have to see the elephant again.

Unknown: I think it's actually a coyote in the room.

SPEAKER_14: It is howling in the wind, but we're going to try not to howl too much about that.

Unknown: So we're here really to work in collaboration.

SPEAKER_03: We had a great meeting with your senior staff on Friday afternoon that ran into Friday evening, and it was a productive dialogue, and we really appreciate that.

Unknown: So tonight I'm going to cover a couple of topics why this matters, what we see SMUD's role can be, doing it right, and what we're asking, and requested outcomes.

SPEAKER_03: I did circulate out the slide deck yesterday to your board members.

SPEAKER_03: I know it's dense, and there's a lot of information there.

SPEAKER_03: So I'm going to try to hit the high tops, but while I'm doing my presentation, if you have clarifying questions, please stop and ask them so that we can have a good dialogue.

SPEAKER_03: I really appreciate the dialogue that you had just a bit ago with staff, and there were some very key questions there.

Unknown: So the why.

SPEAKER_03: Renewable energy in California and in the West is the largest consumer of acreage out there.

SPEAKER_03: It requires more acreages than housing.

SPEAKER_03: It is the biggest form of development that we're going to see in the next 20 to 30 years.

SPEAKER_03: As an example, a solar project is 10 acres per megawatt, wind about 40, geothermal about 25.

SPEAKER_03: So when we're talking about hundreds of gigawatts of renewable energy to meet California's SB100 goals, in total that would be somewhere between 1.4 and 3 million acres of new development in California.

SPEAKER_03: That is a ton.

Unknown: That all is going to have impacts and will require mitigation and really smart siding.

Unknown: Your zero carbon plan would be about 3,000 megawatts-ish, and there you've done quite a bit, you have a bit more to go.

Unknown: Your decisions on PPAs and on SMUD-built development have direct land use impacts.

SPEAKER_03: It's kind of interesting, you think you're a public utility and you're all about megawatts and reliability and service, but you're also a land developer.

SPEAKER_03: And you're also your decisions on PPAs are big land development decisions that have very direct impacts.

SPEAKER_03: So your principles and policies and procedures are key.

SPEAKER_03: Oh, thank you.

SPEAKER_03: I get so busy talking, I am not good at slides.

SPEAKER_03: I apologize.

Unknown: Your principles and policies matter and make a direct impact on those land use decisions.

SPEAKER_03: SMUD can be a leader.

SPEAKER_03: You've got great strategic seven, strategic direction seven, with some really key impacts of their minimizing environmental impacts, including tribal and cultural resources.

Unknown: But you also have a really important one here, which is track and build partnerships with customers, communities, policymakers and other stakeholders.

SPEAKER_03: And that was a core conversation that we were having a little bit ago, and we're going to talk about that a little bit more.

Unknown: So SMUD is in the opportunity of taking that direction, doing things right, so you write project, write location, write policies and practices, and write price.

Unknown: And that is an opportunity to provide leadership not only for your customers and your organization, but frankly, for renewable energy procurement in California.

SPEAKER_03: There was a good question about, well, is everyone else doing this thing?

SPEAKER_03: Do we have sort of things?

SPEAKER_03: And some are doing a good job.

SPEAKER_03: It's a little hot around, but SMUD as being a leader, certainly within the public utility side of it, is really the great opportunity to show what can be done.

Unknown: So there are current challenges, though, and there was this conversation a minute ago about where do we kind of fit public engagement into this process, and how does that fit in with power purchase agreements?

Unknown: That is the crux of the problem in some ways.

Unknown: Power purchase agreements are very frequently signed prior to a developer even filing a land use application with a county or city.

Unknown: So that power purchase agreement is set in place with an acreage, a location, megawatts, and a COD.

Unknown: That limits the ability of that local jurisdiction to be making informed decisions about that project.

Unknown: It also limits the CEQA review, and it also sets up a situation where that deal is already done before there's any public engagement and any public comment on that project or the potential implications for environmental, cultural, and community impacts.

Unknown: So the recommendations I'm making in the following pages looks at ways of trying to shift that a little bit to try to daylight that public engagement earlier before the PPA process so that we're not so locked in and it doesn't become a surprise to the community.

Unknown: That also ties in, having that kind of early engagement also goes into informed decision making.

Unknown: If there's engagement from the stakeholders, particularly the tribes and communities and the environmental community, you will have a better idea of what the resources are.

SPEAKER_03: And staff has been doing – we really appreciate that staff and Amanda's team has been coming to talk to us about their projects that they are thinking about are in the pipeline.

Unknown: That's very helpful, and we've been able to have some good dialogue.

SPEAKER_03: There are some developers that are working in your territory that have also reached out to our groups to have those early, early conversations pre-PPA, and those I think will make a stronger project and frankly, a more approvable project.

Unknown: In between all of this is sort of this transparency gap of things happening without clear public meetings and processes and opportunity for public review and comment.

SPEAKER_03: And then finally, institutional memory.

SPEAKER_03: And we're here today to talk about things that can be done to change and update your policies and procedures and your principles.

SPEAKER_03: You're doing a lot of these things ad hoc in practice on the fly, which is great, and adjusting to things that happen as they go on.

SPEAKER_03: But it needs to be written down and it needs to be developed into actual institutionalized policies, procedures, and practices because right now it's only as good as the institutional memory of the staff and the board.

SPEAKER_03: And frankly, the sting of the Coyote project, staff will change, the board will change, and Coyote will fade into the background.

SPEAKER_03: And so we don't want any of those lessons learned to get lost in the process.

SPEAKER_03: That's why we're recommending some updates to all of these things.

Unknown: We would like to see the principles revised and the policies and procedures for PPAs improved.

Unknown: I'm not going to go through all of this on the principles, but key points are we want to clearly apply to both SMUD projects and PPAs, and I understand from staff that they are doing that now, but the way the principles are currently written, it appears to only apply to development and not procurement of a PPA.

SPEAKER_03: We want to clearly, really clearly direct low conflict siting and require early environmental review and land use screening to clearly engage tribes early and early coordination with the county.

Unknown: The tribe coordination and coordination with the county are key, and if those had occurred on a troublesome project, that project would not have been a problem because those things would have been identified really early on that this is not a problem.

SPEAKER_03: That's not a project you want to move forward with.

Unknown: For the PPA process, and I'm going to get into it in more detail in the next slide, key things there, site visits.

SPEAKER_03: Again, if site visits are done, you're going to catch things that you're not going to get from a desktop review or based on the application materials from the developer.

Unknown: Locally, this doesn't need to be any elaborate thing.

Unknown: It simply is driving by a project, preferably multiple times, stopping and taking a look, looking around the area, getting a sense of what the landscape looks like, what the property is currently being used for, what are the neighbors like, that kind of thing.

Unknown: That's something that staff should do for every local project, and frankly, given the length of your PPAs, it's worth the Southwest ticket and rental car to go look at the projects that are outside of your area.

Unknown: For local projects, I also strongly encourage that the board go look at these things. Don't get surprised. Know what this thing looks like.

Unknown: Also, make use of Google Earth and Google Maps and Street View and all of that, but none of that is going to replace actually going out and taking a look.

Unknown: The key thing that we're also recommending is a developer get into a pre-application meeting with their local... I use the term land use authority.

Unknown: I know it's a mouthful. It is to capture the fact that it's mostly counties, but also BLM is land use authority, state lands commission is land use authority, so projects outside of this area for service, you may be getting into projects that have other land use authorities besides the local county.

SPEAKER_03: Each of those organizations will have a pre-application process that is available. The developer can meet with them ahead of time, find out what the issues and concerns are.

SPEAKER_03: It's super valuable. It's very common, and they can get a written letter from the county or the jurisdiction that they would then include in their proposal.

Unknown: At some point, you would have an idea of what the concerns were that communicated to the developer.

Unknown: Also, I would strongly recommend that staff follow up and talk to and build a relationship that they don't already have with that local jurisdiction.

Unknown: To have that candid conversation about what are your concerns, how big of a problem is this, is this something that could be addressed, is this something that's going to be an issue for you.

Unknown: The other key point for improving the process is including a public review period prior to PPA.

SPEAKER_03: This isn't about getting into the NAT's eyebrow of pricing of kilowatt hours. Is the community aware of issues? Do we have concerns?

SPEAKER_03: This would have picked up, for example, an issue with a project being located adjacent to a state park.

SPEAKER_03: Or that there are known resources out there that are not perhaps well talked about or well known.

SPEAKER_03: I just threw a bunch of stuff at you, so please stop me if you have any questions or if I'm talking too fast.

Unknown: So, the bullet about required developer complete pre-application review with land use authority, could you expand on what that step entails and what kind of information would be in that, please?

SPEAKER_15: Thank you for the question. I speak here now as having been a staff planner at cities and counties and been in those meetings.

SPEAKER_03: It is an informal meeting attended by planners, environmental review staff, typically also building law enforcement, engineering, all of those to have sort of a round table conversation.

SPEAKER_03: Like, here we've got this project, we want to do it, here's some things that we want to do, do you have concerns?

SPEAKER_03: Those meetings can last a couple hours and tend to really sort of sort out the initial bumps of a project.

SPEAKER_03: And I have been in meetings where we have very politely told the developer that you can continue to apply for this project, but you're going to have a lot of trouble.

SPEAKER_03: There's been other meetings where we've been able to tell them, yeah, there's things that we can work on, here's some issues, you need to maybe redesign this or think this through more, or you have a non-compliance over here, can you please think about that more?

Unknown: It is that level of kind of conversation and results in a written document, also serves to get the county aware, I'm not going to use the county's just for simplicity, of there's a project out there so they don't get surprised.

SPEAKER_03: There's nothing worse than being staff and having a developer walk in with eight banker's boxes worth of an application and dropping it on your counter and saying we need this approved as quickly as possible.

SPEAKER_03: And so in the next bullet point, the application deemed complete, could you talk about what would be necessary for an application to be deemed complete?

SPEAKER_15: Yeah, that is under California planning law and it is the first step that happens after an application is submitted.

Unknown: The agency has 30 days to review that application and determine whether the materials in there are sufficient for them to begin their initial environmental review and initial review within the departments about the project.

SPEAKER_03: So they're going to be looking for, do we have a complete project description? Do we have the underlying reconnaissance level biological surveys, basic information?

Unknown: If I already blown my 15 minutes.

Unknown: I'm sorry, I know you gave me 15 minutes and we've got a good conversation going here, may I continue?

Unknown: I would say let's go ahead and have you finish.

SPEAKER_13: Okay, thank you. So the application even completed is that this is a complete application that we are ready to process and we can begin the CEQA process for you.

Unknown: That is something that gives you a good idea that this project is real and is likely to be permittable.

Unknown: Thank you.

Unknown: Oh, yes, Director Fishman.

SPEAKER_13: Back on the last slide, please, also. The last bullet point, 30-day public review prior to action on a PPA.

Unknown: I'm not sure how much, I mean often our PPA is certainly the price, but often even in terms of the deliverables and the timing and everything else, that's considered proprietary information.

Unknown: Exactly, but the location of the project, the megawatts and the technology should not be proprietary.

SPEAKER_03: No. Okay, so I just want to make clear that that's what you're talking about, not price, not terms of delivery. Okay, thank you.

SPEAKER_03: Although terms of delivery, I would look to Amanda and John to be checking this anyway. If they come in with a schedule that you just know is not feasible, I hope you would flag that at that point and not rely on that.

SPEAKER_03: I would like to remind you that you can do that in the community and tell you that there's no way that you can do an EIR in 45 days.

SPEAKER_03: Okay, so this is in response to John's slide six of your current process. I reordered a couple things and expanded a couple things.

SPEAKER_03: To move the due diligence, to really force due diligence early on and to build additional layers to make it more, to really clearly identify where and what's going to happen.

SPEAKER_03: Some key points is when the developer submits their proposal, they provide a draft plan of how they're going to comply with your principles.

Unknown: That gives you a chance, especially for developers who don't know that well, gives you a chance to figure out whether or not this is someone you can work with and if they truly understand what you're asking of them.

Unknown: Before the letter of intent, staff site visits required, early consultation with tribes in coordination with land use authorities, and to require that the developer provide the written response from the county on their pre-application mean.

SPEAKER_03: That, before a letter of intent, makes sure that you've got a viable project to really get into a conversation and negotiation on.

SPEAKER_03: And then for the PPA, the developer submits a full plan to comply with principles. The application has been deemed complete by the county.

SPEAKER_03: Again, recommended board site visit, a 30-day public review, and then for amendments, just public review and a hearing.

SPEAKER_03: So our request to deliverables, what we would really like to work with you and your staff is to update the principles, to update the procurement process, to look at some board best practices,

Unknown: and then make sure the board approval is clearly required and public review process is available so that projects are not a surprise.

Unknown: So our request to the board is to actively engage in this process, consider formation of an ad hoc committee, provide clear direction to staff to work with the coalition, schedule regular updates on progress,

SPEAKER_03: so that this can set the standard for publicly owned utilities and energy buyers statewide.

Unknown: Thank you. I appreciate your indulgence on the extra time. We look forward to working with you, and I'm happy to answer any questions.

Unknown: Thank you very much, Kate Kelly. Do we have any questions right now?

Unknown: Okay. Well, we say thank you very much again. We're now going to take some other public comment.

SPEAKER_13: I have a couple of cards that were filled out by folks who are in the meeting, and we'll go ahead and start with them.

SPEAKER_13: Just to ask that you keep in mind what Kate has said and have your comments cover other things that she may have missed or that you would like to stress.

SPEAKER_13: So the first person up is David Wright.

Unknown: Hi, everybody. I'm David Wright. Nice to see you all. Thank you for allowing this presentation tonight.

SPEAKER_00: I just wanted to say, as Representative 350 Sacramento and also personally, working with this coalition has been very impressive to me.

SPEAKER_00: We have a lot of experience in the environmental field, and the breadth and depth of the knowledge and experience and expertise of the people in this coalition is very impressive.

SPEAKER_00: And you're getting some great free consultation if you engage with them in this process. So I recommend that. I think that's all I have to say. Thanks.

SPEAKER_00: Thank you, David. Next up is Rick Cadena from 350 Sacramento.

Unknown: Thank you. I'm Rick Cadena, and I would like to thank staff for the very excellent presentation and also for their meeting with us last week.

SPEAKER_01: It was a very productive meeting as a preview to this presentation. I don't have a lot more to add for what Kate said. She has many years and has depth of knowledge and experience that we've appreciated in the coalition.

SPEAKER_01: And she very effectively, I think, expressed all of the comments and critiques that we've had. You know, we've been at this for three to four years now, and she's been at it for much longer than that.

SPEAKER_01: So I really appreciate what you had to say. I did want to emphasize a couple of things that she said. One, of course, is having early engagement with the public and the stakeholders.

SPEAKER_01: And that means not just the neighbors and the ones adjacent to where it's going to be developed, but the broader group, including this coalition, which has a wealth of information on Fauna and Florida and land use, that sort of thing.

Unknown: Also, as SD7 said, if you look at Section A to attract and build partnerships with customers, communities, policymakers and other stakeholders, I would also look at the policymakers because in many cases, particularly Coyote Creek, we know that the county was the most significant outside policymaker here.

SPEAKER_01: And they didn't really get a heads up until the PPA was signed, and they were tasked with the EIR preparation.

Unknown: But we know that the county's Climate Action Plan, and this is specifically Measure Greenhouse Gas O3, which the supervisors cited during their approval of the EIR,

SPEAKER_01: that calls specifically for working with SMUD to help identify suitable sites for renewable projects to help meet the zero carbon goals.

SPEAKER_01: So they're supposed to be working with SMUD now, looking at sites. And I don't think they're doing that. I don't think right now SMUD has a real good liaison with a team that is doing that.

SPEAKER_01: So I think that that needs to be reviewed, and I think we need to pursue that as a possibility of getting other policymakers out through the county, the city, and others who want to help SMUD and who have a lot of access to information on property and potential sites. Thank you.

Unknown: Thank you, Rick. Next up is Tim Washburn from Third Act.

Unknown: Thank you. Thank you, members of the board, Tim Washburn, Third Act. I also want to echo the comments of Rick and David about the experience, the capability of this group that's come together to help SMUD be successful in the Clean Energy Program.

SPEAKER_10: I mean, it is an asset to be taken advantage of. And I wanted to just speak personally about my experience in agency stakeholder relationships.

SPEAKER_10: I helped to form the Sacramento Area Flood Control Agency and was the agency council and director of planning for 30 years.

SPEAKER_10: And when we were first formed, of course, our goal was to work with the Army Corps of Engineers, Department of Water Resources to provide a high level of flood protection for Sacramento, which is regarded as the second most vulnerable flood community in the country next to New Orleans.

SPEAKER_10: And our first effort out of the box was to essentially pursue what was really the agency preferred plan, which to build the detention dam at the Auburn site. And we failed to gain the level of community support that we needed to advance that project.

SPEAKER_10: And at that point, SAFECA made a very significant decision to invest in stakeholder engagement with a lot of anxiety, let's face it, among the agency folks on my side of the table as to where is that leading?

Unknown: We don't have any experience with that. And we created the Lower American River Task Force, and we relied on that advisory ad hoc body of stakeholders to help us develop the flood control program that we're now, it's taken us a long time, but we're now nearly completing.

Unknown: That's providing the community with a level of protection that nobody thought was possible if you didn't build the detention dam at Auburn.

Unknown: And that is the experience that is bringing me here tonight to say, look, this is an opportunity for SMUD to take this advice, to carefully consider it, and to think about it as you try to kind of right the ship on these utility scale projects and be successful in your clean energy program.

SPEAKER_10: So I just wanted to relate my personal experience with it. And it's not the same for you, of course, but the principle, the idea of engagement and the taking in of ideas and the relying on people with goodwill, good experience and a desire to help you succeed is very important. Thank you.

SPEAKER_10: Thank you very much, and thank you for your public service, too. Those are all the cards I have for in person, but do we also, General Counsel, have people online?

Unknown: We do. First up is Sean Worth.

Unknown: Good evening. Thank you for letting me comment. I was part of the coalition that helped prepare the recommendations tonight, also hoping to be part of the ad hoc committee to make some of those recommendations reality in your principles.

SPEAKER_08: That coalition had two main goals in its origination. The first was to make sure that a project like Caddy Creek never happened again in the SMUD geography, and the second was to stop Caddy Creek from happening.

Unknown: Built into those suggestions and principles is a very careful reverse engineering of things that went wrong in this process to allow Caddy Creek to have gotten as far along as it did.

Unknown: There are some built-in fail safes there, like having early conservation with the county. The county would have made you guys aware early on there were some very difficult issues with tribal resources and biological resources, and that would have most likely gotten you to take another close look at it.

SPEAKER_08: The second goal, stopping Caddy Creek, Caddy Creek is still alive, and it's not an exaggeration that SMUD played a role in that, and we would hope in the future to work with SMUD to try to figure out a way that we don't have this catastrophic loss of a really important eco region in our area. Thank you.

Unknown: Thank you. And next up.

Unknown: Next up is Greta Lason.

Unknown: Hello. Can you hear me? Yes, we can hear you. Thank you. My name is Greta Lachin, and I'm an interested member of the public.

SPEAKER_02: I am a master gardener, although I don't speak for that organization tonight. That point is relevant because in my speeches I cited information about the incredibly slow growth rate of blue oaks at Caddy Creek.

Unknown: A University of California study showed that a tree that is seven inches in diameter is likely to be 100 years old. So the so-called replacement plan, planting acorns, was never possible.

Unknown: And thousands of oaks would have been sacrificed. Trees themselves sequester carbon. This isn't protecting the environment.

Unknown: There were two important things that SMUD did not do. No one from SMUD ever attended the public meetings, although they had apparently been invited to the meetings.

Unknown: And SMUD allowed the process to go forward long enough that the developer has apparently been able to attain the needed permits and authorizations. That makes it uncertain that the project won't go forward after all. And all of this is for a 30-year project life.

SPEAKER_02: I hope that the process that you put forward will take these points into account. Thank you for your time today.

Unknown: Thank you, Greta. Next up.

Unknown: I don't see any more hands at this time.

Unknown: Okay. Let me ask if we have any comments from board members now that we've heard from the public and staff. Yes, Mr. President.

Unknown: Yeah. First, I'd like to thank the coalition for their very thoughtful presentation and comments and also for meeting with staff last week.

SPEAKER_15: One thing I understand, I've talked to Paul Lau, our CEO, about ongoing discussions between staff and the coalition to try and see what things that we can do to accommodate some of the suggestions that are made and overall just improve our process.

SPEAKER_15: I'm particularly concerned about the timing of getting public input. Not that I don't have faith in our staff to be able to evaluate, but I think having a clear step where we want to make sure that the public has been informed about projects so that they have an opportunity to provide additional information or comments early on in the process.

SPEAKER_15: I would also like to thank the board for their support and for the work that they've done for this project, because as good as our staff are, maybe we missed something that really needs to be considered.

SPEAKER_15: I don't know if I would like to make sure that we have a clear understanding of what the policy changes are.

SPEAKER_15: I don't know if I would like to make sure that we have a clear understanding of what the policy changes are.

SPEAKER_15: I would also like to thank the direct staff to establish procedures that will accomplish the things that we're interested in accomplishing overall environmental protection and then also the more earlier and more meaningful public input.

SPEAKER_15: I think we've addressed a couple of your suggestions as far as ongoing staff discussion about the procedures and then also forming that ad hoc committee.

SPEAKER_15: I do plan to establish that. I'm looking forward to hearing what other comments that other board members have. Thank you.

SPEAKER_13: Director Sanborn.

Unknown: Thank you. I was, I guess, very impressed with the comments and the thoughtfulness that went into the recommendation. So I really want to sincerely thank all the people that put so much time into this.

SPEAKER_07: I do believe we all want to see SMUD achieve our goals. And there was nobody that doesn't want us to help be successful at achieving those goals, but parameters on them may be, you know, and community input is what I think you're looking for.

SPEAKER_07: And I just want to thank you all for the time you put in and how constructive you've been working with the staff. I heard the meeting was excellent.

SPEAKER_07: So thank you again, because it takes a community like ours to make things work. And that's why I said from the beginning, if we're going to achieve a goal that's the moonshot goal, we have to keep the community with us and we need the community's help in order to achieve it.

SPEAKER_07: So, yeah, if you recommend an ad hoc committee, I'd be happy to participate on it. And I just want to thank everybody for all their incredible comments and time.

Unknown: And as chair, I always get the last word. Oh, you're going to say something. Oh, no, that's okay. I'm sure you can't say anything better than me. No, I'm teasing.

SPEAKER_13: I guess I want to again thank the folks who came tonight and in particular, Kate Kelly. I do feel that information that was shared was insightful.

SPEAKER_13: And I really want to compliment you for having such an attitude of we want to make this better. You know, we want to work with you.

SPEAKER_13: To me, you know, the elephants are long gone and it's time for us just to have that real engagement with each other and to be able to say things out in the open and to have face to face communication.

SPEAKER_13: I'm one of the people who started the community engagement department here at SMUD and the 20 years that I worked here.

SPEAKER_13: And it is so true that, you know, the community really is the bedrock of everything that we do. We've made that be part of our DNA.

SPEAKER_13: And so to me, I think that's one area that could shift a little bit in terms of how we engage with the public.

SPEAKER_13: But as many of you know, SMUD directors don't get to tell staff what to do. We don't get to say, you know, we want you to A, B and C. We get to set policy.

SPEAKER_13: And that's why I think it is really important that we do have an ad hoc committee. And I supported the president when he brought that idea to me.

SPEAKER_13: And I also would be a member of it as as the chair of the policy committee.

SPEAKER_13: But most of all, I guess I think that we're all on this journey where we're trying to make things better. We're trying to learn from mistakes.

SPEAKER_13: And we're trying to put our best foot forward. And I believe that if we work together, which it really has shown that that's happening,

SPEAKER_13: that we'll be successful and we'll reach that 2030 zero carbon goal. So with that, I now turn it over to my vice chair, Brandon.

Unknown: I will be far briefer. One of the things I would like to see staff do is look at these principles, which I thought were very interesting and give us an analysis of what parts of these we can potentially implement in our day to day operations.

SPEAKER_09: The other thing I just want to do is I just want to thank the staff and for the presentations and the public and all the public comment and attendees both online and in person tonight. Thank you.

Unknown: Well, I guess one, it seems like, you know, it's we are moving forward with ongoing staff discussions and I'm hoping that will include consideration of the specific recommendations on on timing.

SPEAKER_15: You know, I don't know where we would land on on exactly what that would be, but sort of the spirit of increased opportunity for public input early on in the process.

SPEAKER_15: And then anyway, just sort of fitting into how we how we do business as a policy board.

SPEAKER_15: And then I also wanted to say that the ad hoc committee will be consistent with myself, director Herber and director Sanborn.

SPEAKER_15: Present Laura Lewis, Chief of the government affairs officer, the ad hoc committee who would be the chair of that committee.

SPEAKER_06: Would you be willing to serve? I'd be happy to. Okay.

SPEAKER_15: And the purpose of the committee would be to see what policy changes need to be made. Policy language changes to SD7.

SPEAKER_13: To reflect the concerns raised today? Yes. Okay.

SPEAKER_13: Seeing no further comments, the next item on the agenda is public comment for items not on the agenda. Have we received any?

Unknown: Do we have anybody online cards? And I do not see any hands raised. We're doing our work. Oh, I'm sorry. Yes.

SPEAKER_13: Next is the board work plan. Okay. I'll be pretty brief. For the next couple months, the things that I pulled out of our plans is we'll be considering their MOU with IBEW, which was ratified by the IBEW membership.

SPEAKER_15: And congratulations to Paul on that. Paul and all your staff, I know that was a difficult process. And thank you to IBEW for ratifying that.

SPEAKER_15: On April 7th, we're having a discussion about vehicle to grid. And then on April 8th, I'm sorry I didn't write down the committee names, but April 8th we'll be having our policy committee an update on our safety leadership.

SPEAKER_15: On the 14th, we'll be looking at our zero carbon plan update. On the 14th, we'll be considering an update to our solar and storage rate. And on the 15th, happy tax day, we're looking at our zero carbon plan update.

SPEAKER_15: And on, oh, I guess I indicated the wrong date earlier. And then on the 12th, May 12th, we'll be looking at our resource adequacy and summer readiness, which is always of interest. And I'll just conclude it there.

SPEAKER_15: And parking lot, currently we have a presentation plan for climate change impact on snowpack, upper American River project. And staff is looking at doing a memo on a general update on fusion. Any other ideas that the board direct to Fishman?

SPEAKER_15: Yeah, I sent an email to Paul and a few others on staff today just suggesting that maybe we take another look at the cap and trade program and how that's going to affect SMUD. There's some significant changes on tap. I read that one, we're looking at joining Washington's market. So that's going to have some impact just on that.

SPEAKER_14: But in talking with John briefly before this meeting, there's also some other changes, reduction in the number of credits we're getting. How's that going to impact our costs and our pricing and a lot of other things? So it doesn't have to be right away. Maybe after some of those changes are known. So we have a clear view of what's happening. But at some point this year, it'd be interesting to get another look at that.

Unknown: I'll leave it up to staff to decide when and how. I think it's a good topic for a meeting, but if it's a memo, that's fine too.

Unknown: Thank you.

Unknown: Director Sanborn.

SPEAKER_14: Yeah, I agree with the cap and invest and that one. But we are now, since the last meeting, in a war. And the Strait of Hormuz is closed for who knows how long.

SPEAKER_07: And I would love to get, if we don't have it as a general discussion here at the board, just get a memo from staff about where we are with our resources, how much prices are going up, how it's going to affect budget. But clearly that's been on my mind watching the news this week.

Unknown: And why I'm really glad we're going to zero carbon.

Unknown: Anything else? All right. Back to you, Chair.

SPEAKER_15: Okay. Thank you, Mr. President. So we are finished now with item number two. And we know that we don't have any folks online wanting to make public comment on items not on the agenda.

SPEAKER_13: So the last item is to, we do want folks to know that written comments received on items not on the agenda will be included in the record if they're received within two hours of the end of this meeting.

SPEAKER_13: And the last item on the agenda is to provide a summary of committee direction.

Unknown: So I have President Tamayo create an ad hoc committee consisting of President Tamayo, Director Sanborn, and Director Herber as the chair to discuss potential changes to Strategic Directive 7, environmental leadership.

Unknown: Staff will provide information to the board with respect to what changes that were proposed tonight that were able to implement. I believe that was Dr. Rose's request.

SPEAKER_06: Staff will provide information on the Cap and Invest program and how to provide information on changes to the Cap and Invest program and how they may impact SMUD.

SPEAKER_06: And we'll provide information about how the war with Iran will impact the cost of doing business.

SPEAKER_13: Okay. Well, thank you very much. And that is the end of our meeting tonight. Thank you all for coming.

SPEAKER_13: Can I just make one comment? I wanted to really thank Paul and his staff for being very responsive to our concerns about this and also very responsive to the community. Really appreciate, you know, and I know that you spent extra time right before, you know, at the very end of your week.

SPEAKER_15: Appreciate that in particular. But I know there's a lot of work going up to that. So thank you very much, Paul, to you and your team, and looking forward to seeing what else we might be able to do to fine tune this process. Thank you.

SPEAKER_15: Thank you and good night.