Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, November 29, 2023
10:00am
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Los Angeles County
Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
City of West Hollywood
3rd Floor City Manager’s Conference room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda Agenda Page 1
item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS
The meeting agenda packets are bookmarked PDFs, which display a list of agenda items to the left of the page and allow you to click to view specific items within the packet. If viewing in your browser, click the "document outline" button in the upper left corner of the screen. If the PDF is downloaded, the bookmark panel (ribbon icon) appears on the left side of the screen.
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the October 25, 2023, Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. Review and Recommend Approval of the Proposed 2024 Legislative & Regulatory Policy Platform
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON JANUARY 24, 2024
Public Records: Public records that relate to any item on the open session agenda for a regular Board Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Board. Those documents are available for inspection at CPA Offices, 801 S. Grand Ave, Suite 400, Los Angeles, CA 90017 or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Legislative & Regulatory Committee
Subject: Approve Minutes from the October 25, 2023 Legislative & Regulatory Committee Meeting
Date: November 29, 2023
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Legislative & Regulatory Committee Item 1
MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, October 25, 2023, 4:00 p.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
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Los Angeles County Hall of Administration
Sybil Brand Conference Room 372
500 West Temple Street
Los Angeles, CA 90012
CALL TO ORDER & ROLL CALL
Committee Chair Deborah Klein Lopez called the meeting to order at 4:00 p.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 Remote
West Hollywood John Erickson Committee Member Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the June 28, 2023, Legislative & Regulatory Committee Meeting
Agenda Page 4
Legislative & Regulatory Committee Item 1
Motion: Committee Member Howorth, Manhattan Beach
Second: Committee Member Hicks, Carson
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Receive Legislative and Regulatory Update
Gina Goodhill, Sr. Director, Government Affairs, and Ted Bardacke, CEO, presented on the item. 2023 was marked by substantial legislative activity, encompassing key areas such as centralized energy oversight and decision-making, regionalization, offshore wind initiatives, transmission and distribution infrastructure development, and a drive for California to assume a leadership role in clean energy initiatives. AB 1373, which passed, established a new central procurement entity; CPA took a neutral position on the bill after a number of concerns about the impact to CCA autonomy were addressed. A regionalization bill did not move forward in the legislature, but several state agencies, including the CPUC and the CEC, support the creation of a non-profit agency in 2024 to establish the foundational work for a regional western electricity grid. A new bill also aims to repurpose offshore oil production areas for offshore wind turbines, and large companies will be required to disclose all Greenhouse Gas (GHG) emissions starting in 2026. Staff will aid large company suppliers in CPA’s service territory to report emissions or transition to 100% Clean energy.
In response to Committee Member Hicks’ question about upcoming state elections, staff indicated they are monitoring influential changes in leadership, notably Senator Steven Bradford and Assemblymember Chris Holden. Chair Klein Lopez inquired about the CPA-sponsored AB 1538 and the GHG emissions reporting audit process. Ms. Goodhill clarified that once the CPUC finalizes the minimum requirements for new reliability, staff will reassess the concept to see if a similar bill would be viable. The California Air Resources Board will collect and verify GHG emissions data from independent auditors.
3. Provide Input on CPA’s Draft 2024 Legislative & Regulatory Policy Platform Ms. Goodhill presented suggested changes to the Legislative & Regulatory Policy Platform, which cover transmission and distribution planning, regionalization, building decarbonization, and fair rates for CPA customers. Ms. Goodhill also discussed a recently passed bill which seeks to determine electricity rates based on income; CPA is assessing how best to engage in the decision making at the CPUC level. Mr. Bardacke noted that implementation can be challenging and while the bill is intended to benefit low-income customers, it can negatively impact middle-income households in energy-efficient homes.
The Committee emphasized the importance of discussing and presenting any bill involving the California Environmental Quality Act (CEQA) to the Board. The Committee voiced support for regionalization policy platform changes and discussed ways to strengthen safeguards in this context. In response to Chair Klein Lopez’s question about regionalization concerns, staff clarified that some concerns include a loss of local control and the involvement of an out-of-state workforce, even though regionalization would yield cost savings and increase access to reliability resources. The Committee provided input on the specific wording of the Agenda Page 5
Legislative & Regulatory Committee Item 1
building decarbonization policy platform changes. Committee Member Kampalath emphasized the need to align decarbonization with energy efficiency goals.
Following a discussion regarding the bill mandating income-based rates, Committee Members noted concern for how the legislature passed the bill but commended staff for their knowledge of the bill and their diligent attention to the matter. Following a suggestion from Committee Member Howorth, staff agreed to reevaluate the language regarding “fair rates” and noted it will continue to monitor the bill and provide updates to the Committee and the Board.
COMMITTEE MEMBER COMMENTS
Committee Members Howorth and Hicks thanked staff for their professionalism and hard work.
ADJOURN
Chair Klein Lopez adjourned the meeting at 5:15 p.m.
Agenda Page 6
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: CPA's Proposed 2024 Legislative & Regulatory Policy Platform Date: November 29, 2023
RECOMMENDATION
Review and recommend approval of the proposed 2024 Legislative & Regulatory Policy Platform.
BACKGROUND
In November 2018, CPA’s Board of Directors adopted a Legislative & Regulatory Policy Platform to serve as a framework for CPA’s advocacy and policy efforts. CPA staff have used the platform to pursue actions at the regulatory levels with the understanding that they are taking actions in the best interest of the organization, member agencies, and customers.
In February 2023, CPA’s Board of Directors adopted a revised Legislative & Regulatory Policy Platform and along with a new protocol to allow CPA to respond to legislation and policy matters more quickly and effectively. The protocol allows CPA staff to take bill positions on most bills using the Board approved Policy Platform as guidance, rather than seeking Board approval for each bill position. For bills that fall outside the scope of the platform, bills that are likely to attract high-profile supporters and detractors, bills that would raise taxes, or bills that would knowingly put CPA at odds with its member Agenda Page 7
Legislative & Regulatory Committee Item 2
agencies, CPA presents a proposed position to the CPA Board of Directors and its Legislative & Regulatory Committee before taking a position.
In October 2023, staff presented a draft 2024 Policy Platform to the Legislative & Regulatory Committee and solicited feedback. The draft 2024 policy platform has been modified based on committee feedback and the identification of a new issue of interest to CPA and its members, as noted in the discussion below.
DISCUSSION
This proposed platform includes new or expanded principles to address the following issues:
1. Transmission and distribution planning
2. Interconnection timelines
3. Regionalization
4. Building decarbonization
5. Fair rates for CCA customers
6. Treatment of CEQA Reforms
7. Governance as an element of local control and autonomy Transmission and Distribution Planning: The CAISO has estimated that California will need to build an estimated $30 billion in new transmission capacity by 2040 to achieve the state’s renewable and zero-carbon electricity goals. This need is made even more monumental by the slow timelines of completing new transmission lines, which often take 10 years or more. The proposed principle 2e would provide clear guidance to CPA staff when it engages in policy discussions geared at expediting transmission and distribution.
Interconnection Timelines: Delayed and abandoned electrical projects are a growing problem for communities throughout California, with hundreds of projects delayed ranging from service extensions for new affordable housing units, to hookups for new electrical charging stations. These delays threaten California’s ability to respond to the climate and housing crises; prevent Californians from accessing important critical services; and harms Agenda Page 8
Legislative & Regulatory Committee Item 2
communities by increasing project costs and reducing job opportunities. The proposed principle 5e would provide clear guidance to CPA staff when it engages in policy discussions geared at reducing interconnection timelines.
Regionalization: A unified electricity market in the Western United States can be a crucial part of ensuring that California can meet its clean energy and affordability goals while also maintaining reliability. The proposed principle 2g would establish principles for staff to articulate when they engage in policy discussions geared at the creation of a regional energy market and/or grid. Language regarding the principle of state control over energy policy goals has been strengthened based on committee feedback at its October meeting.
Building Decarbonization: Buildings are California’s second largest source of climate pollution, and CPA’s local reach code program is one effort to address that problem. The proposed revision to principle 3c would provide clear guidance to CPA staff when they engage on statewide building decarbonization standards, in addition to local codes. These policy goals have been refined based on committee feedback at its October meeting.
Fair Rates for CCA Customers: Based on wide-sweeping legislation passed in 2022 (AB 205, which also authorized the operating extension for the Diablo Canyon nuclear power plant), the CPUC is currently studying options for the implementation of a new income-graduated fixed charge, which would replace a portion of a customer’s volumetric charges that are assessed based on energy usage, with a fixed charge that would vary by income levels. This income-based fixed charge would have a direct effect on all customers of Investor-Owned Utilities, including CPA customers; in broad terms, low-income customers would see their bills go down while higher income customers would see their bills go up, even if those customers used the same amount of energy.
CPA has not developed a position on the broad policy question at hand. CPA’s rates and competitiveness levels are unlikely to be impacted as long as the CPUC remains true to Agenda Page 9
Legislative & Regulatory Committee Item 2
the legislative intent that the restructuring takes place entirely within delivery rates rather than touching on generation rates.
Due to the administrative complexity, privacy concerns, and potential for gaming or errors within the income determination process for the fixed charges, in addition to the overall policy question, the implementation of rate restructuring could become a legislative matter in addition to the ongoing proceeding at the CPUC. The proposed revision to principle 1a would more clearly allow CPA to engage in discussions at the CPUC and with legislators and the administration on this topic to ensure that CCA customers are treated fairly compared to non-CCA customers. The meaning of the word “fair” as it relates to rates and cost allocations has been clarified based on committee feedback at its October meeting.
Governance: CPA’s current policies allow non-elected Board Alternates to attend Closed Sessions. Authorization for that policy was provided for in SB 355 (2019, Portantino) with a sunset date of January 1, 2025 and would need to be extended by new legislation if CPA is to continue this practice. New language was added in 1d to highlight the continued importance of preserving CPA’s autonomy over its governance structure. This will allow CPA staff to pursue legislation to extend this sunset date so that non-elected Board Alternates can continue to attend Closed Sessions.
CEQA: Based on feedback from the committee at its October meeting, staff is proposing to add explicit language that any positions on bills seeking to modify CEQA would require Board approval.
ATTACHMENT
1. Proposed 2024 Legislative & Regulatory Policy Platform Agenda Page 10
Proposed
2024 Legislative and Regulatory Policy Platform
Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA); bills that would raise taxes; or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local level and reduce fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Agenda Page 11
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to unbundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges compared to unbundled customers. b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health are not disparately impacted by new regulations. c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
2. Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts. b. Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure carbon-free resources to meet or exceed the needs of CPA’s three product offerings and its long-term carbon-free procurement goal as required by SB 100 and other statutory or regulatory obligations.
c. Renewable Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations.
d. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
e. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements.
f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be Agenda Page 12
procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA to pursue demand response programs and opportunities for its customers.
b. Zero-emission vehicles: CPA will pursue administrative and legislative initiatives to promote electrification of the transportation sector in response to state and federal goals aimed at increasing the usage of zero emission vehicles. c. Building decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building decarbonization, primarily through electrification.
d. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability and adaptability that could protect against power outages and extreme heat. e. Distributed Energy Resources: CPA will pursue administrative and legislative initiatives that support the ability of CPA to offer and utilize distributed energy resources as part of its reliability, resiliency and community engagement strategies. f. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs.
b. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises.
Agenda Page 13
c. Workforce Development: CPA will pursue administrative and legislative initiatives that support workforce development with a focus on new stable, well-paying local jobs, and participation in a just transition to a low-carbon economy. d. Energy Equity: CPA will pursue administrative and legislative initiatives that supports increased access to clean energy technologies, clean energy and contracting jobs, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
e. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory.
Agenda Page 14