MINUTES
MEETING of the Legislative & Regulatory Committee of the Clean Power Alliance of Southern California
Wednesday, February 23, 2022, 10:00 a.m.
The Legislative & Regulatory Committee conducted this meeting in accordance with California Governor Newsom’s Executive Order N-29-20 and COVID-19 pandemic protocols.
CALL TO ORDER & ROLL CALL
Committee Chair Lindsey Horvath called the meeting to order at 10:00 a.m. and Interim Clerk of the Board, Raynette Tom, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Member Remote Carson Cedric Hicks Committee Member Remote
West Hollywood Lindsey Horvath Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from January 26, 2022, Legislative & Regulatory Committee Meeting
Motion: Committee Member Lopez, Agoura Hills
Second: Committee Member Hicks, Carson
Vote: Item 1 was approved by a roll call vote.
REGULAR AGENDA
2. Recommend Support Position on AB 1814 in the 2021/2022 California Legislative Session and HR 6662 in the 117th Congressional Session
Gina Goodhill, Policy Director, provided an overview of the item. AB 1814 would allow Community Choice Aggregators (CCAs) to submit applications to the California Public Utilities Commission (CPUC) to receive funding to administer their own transportation electrification programs. There would be coordination between the Investor Owned Utilities (IOUs) and the CCAs to avoid duplication, but CCAs would be able to scope their own programs and strategically tailor them to their needs. The bill was recently introduced and does not yet have official support or opposition, but staff anticipates that IOUs will not support the bill. The second bill, Clean Power Alliance Legislative & Regulatory Committee Page 2 of 3 February 23, 2022 Minutes
HR 6662, would require the U.S. Department of Energy and U.S. Department of Housing and Urban Development to develop a program to authorize up to $50 million a year to public housing agencies, local governments, or nonprofit organizations to support EV car sharing services. Public housing residents face significant barriers to reliable and affordable transportation. As currently written, the bill would not provide CCAs with direct access to the funds but complements CPA’s goal of equitable access to clean energy. In response to a question from Committee Member Lopez regarding possible opposition to AB 1814, Ms. Goodhill noted that the bill would create some competition for funding between IOUs and CCAs. Mr. Bardacke noted a new bill, SB 1287, was recently introduced, that could be financially problematic for CCAs. Staff is still evaluating its impact, but if an immediate position on the bill is necessary, staff would have to present the bill position directly to the Board.
Motion: Committee Member Hicks, Carson
Second: Committee Member Lopez, Agoura Hills
Vote: Item 2 was approved by a roll call vote.
3. Resource Adequacy Reform Update
CC Song, Director, Regulatory Affairs, provided a presentation on Resource Adequacy (RA) including background information; CPA principles for RA reform; and a summary of proposals. Although RA was designed to ensure sufficient capacity to meet system-wide gross peak, resources on the grid have become increasingly variable and energy-limited. Under CPUC direction, CalCCA and Southern California Edison (SCE) submitted a joint proposal where Load Serving Entities (LSEs) would provide a portfolio with sufficient energy to meet both its load and storage charging needs. The CPUC opted for an alternate proposal and directed working groups to develop implementation details around a “slice-of-day” framework for RA compliance in 2024. Ms. Song reviewed three principles that guided CPA’s engagement and evaluation process and presented two proposals:
(i) a 24-hourly slice proposal and (ii) a 2-slice proposal. Ms. Song reviewed pros and cons for each. The 24-hourly slice proposal requires each LSE, monthly, to demonstrate enough capacity to meet its load profile in all 24 hours on the CAISO’s worst day. The 2-slice framework requires each LSE, monthly, to demonstrate it has enough capacity to meet its share of CAISO gross peak and net peak. Ms.
Song reviewed how each measures up to CPA’s guiding principles and noted that the 24-hour slice more accurately values renewable resources and provides visibility into an individual LSE’s resource mix’s ability to meet demand. The 2-slice proposal’s renewable resource valuation would be based on a methodology that heavily discounts solar and wind capacity contribution and does not appropriately value their contribution to the grid and will not be as durable. The CPUC’s decision does not provide sufficient time for thoughtful implementation. Ms. Song discussed support for the two proposals. Amongst CalCCA membership, one group of CCAs supports the adoption of a 24-hourly slice proposal with a deferred implementation until 2025. Another smaller group supports the 2-slice proposal as a temporary bridge while a more durable framework can be developed. Ms. Song stated that CPA does not support the latter proposal because it would be confusing to adopt one proposal and then have to adjust to a new framework in a year’s time. CPA staff will continue to work with CalCCA staff to develop comments on the Workshop Report expected in March and will keep the committee apprised of the proceeding and identify potential opportunities for engagement.
Clean Power Alliance Legislative & Regulatory Committee Page 3 of 3 February 23, 2022 Minutes
Committee Member Hicks asked about concerns regarding existing systems that the CPUC and CAISO would need to update and how that would be addressed.
Matt Langer, COO, clarified that the delay in the modified 24-hourly proposal addresses the need for these agencies to implement system updates. Committee Member Lopez asked how TOU rates can affect the net and gross peaks. Mr.
Langer specified that under the 24-hourly slice proposal they can change more significantly; but the CPUC will have to agree to change the peak hours they use for measurement. In response to Chair Horvath’s question regarding the Provider of Last Resort (POLR), Ms. Song explained that should the CPUC in a separate decision determine that the POLR may service customers in transition for longer than 60 days, it may have to procure more resources depending on the length of time authorized.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Horvath adjourned the meeting at 10:50 a.m.