MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, May 24, 2023, 10:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
CPA Office
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
L.A. County Hall of Administration
Sybil Brand Conference Room 372
500 West Temple Street
Los Angeles, CA 90012
City of West Hollywood
City Manager’s Conference Room, 3rd Fl
8300 Santa Monica Blvd.
West Hollywood, CA 90069
CALL TO ORDER & ROLL CALL
Committee Chair Deborah Klein Lopez called the meeting to order at 10:15 a.m. and Gabriela Monzon, Board Clerk, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Chair Remote Carson Cedric Hicks Committee Member Remote
Los Angeles County Rita Kampalath Alternate Committee
Member Remote
Manhattan Beach Amy Howorth Committee Member Absent
West Hollywood John Erickson Committee Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from March 22, 2023, Legislative & Regulatory Committee Meeting
Motion: Committee Member Hicks, Carson
Second: Chair Klein Lopez, Agoura Hills
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Discuss Electricity Grid Regionalization and AB 538 and Provide Direction Gina Goodhill, Sr. Director, Government Affairs, and CC Song, Sr. Director, Regulatory Affairs, provided a presentation on electricity grid regionalization and Assembly Bill 538. California is currently a net energy importer and to achieve California’s climate goals, an additional 86 gigawatts of energy is required for the grid. Many states now are participating or considering participation in a Regional Transmission Operator (RTO). The Southwest Power Pool (SPP), an existing RTO, is establishing a new market called Markets+, which will have governance not specific to any state. If states other than California were to join SPP the reliability and cost benefits electricity customers currently enjoy from having access to imports could significantly diminish. There is a growing concern that if California continues with its current operational approach without adapting, it risks isolating itself, while other states may choose alternative options, resulting in fewer available resources for the state. Ms. Goodhill identified key supporters and opponents of regionalization across different communities. Opposing arguments against regionalization include concerns over less state control, increased federal oversight, job creation, and state-level decarbonization efforts. Ms. Goodhill reviewed the regionalization process and governance requirements outlined in AB 538.
Chair Klein Lopez asked about the distinctions between AB 538 and a similar bill that was introduced in 2018. Ted Bardacke, CEO, highlighted three changes in market dynamics that prompted the reintroduction of the regionalization bill. These included the shift of other states towards alternative options, increased reliability issues, and the necessity for a more regional approach to fulfill climate goals. Chair Klein Lopez inquired about CPA’s control over imported energy content. Ms. Song explained that while CPA currently imports energy from other states, the Federal Energy Regulation Commission (FERC) may have more influence over California’s decarbonization efforts. Matthew Langer, Chief Operating Officer, added that regionalization would introduce more out-of-state resources, but it would not impede CPA’s ability to meet customer demands for clean energy or to unclean resources. Committee Member Kampalath asked about CAISO’s authority over energy imported into California. Mr. Bardacke noted that the competition between SPP and CAISO to achieve regionalization is political and added that if state control becomes excessively stringent, it will become increasingly challenging to attract other states to join.
Committee Member Erickson expressed support for a regional approach and emphasized the importance of being aware of potential litigation risks associated with regionalization. Committee Member Hicks asked about increased transmission costs. Mr. Bardacke indicated that predicting costs is challenging when market participants remain unknown, but economic studies on regionalization indicate greater interregional trading and therefore an overall cost reduction. Committee Member Kampalath asked about specific opposition to regionalization stemming from environmental and labor groups. Ms. Goodhill indicated there are concerns regarding the prioritization of out-of-state resources and jobs. However, an amendment has recently been accepted that prioritizes in-state versus out-of-state development and the environmental justice community has not focused very much on the regionalization issue.
3. Review Senate Bill 420 and Assembly Bill 914 Related to Transmission Projects, CEQA Streamlining and Permit Streamlining for Existing Distribution Power Lines and Provide Direction on Policy Positions if Necessary
Ms. Goodhill provided an overview of Senate Bill (SB) 420 and Assembly Bill (AB) 914, which focus on expediting transmission, interconnection, and permitting timelines by making changes to the California Environmental Quality Act (CEQA) process. SB 420 proposes the designation of a lead agency responsible for nominating priority projects that align with grid reliability or clean energy targets.
SB 420 also involves the CAISO in identifying additional projects eligible for faster processing through the Electrical Transmission Projects Environmental Leadership Development. This would enable projects to complete the CEQA process within 270 days, significantly shorter than the potential 4-year timeline. SB 420 has the support of the California Community Choice Association (CalCCA) and the American Clean Power Association, and there is no known opposition to the bill. AB 914 aims to establish a 2-year time limit for state agencies to complete the CEQA review and either approve or deny an application for an electrical infrastructure project. If the 2-year timeline is exceeded, the bill mandates that a state agency must submit a report to the legislature detailing the reasons for the delay.
Chair Klein Lopez emphasized the importance of active engagement by CPA in CEQA-related bills. Committee Member Erickson expressed support for both SB 420 and AB 914. Staff agreed to bring a recommendation to the Committee for further discussion in the future.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 11:05 a.m.