Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 27, 2024
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
LA County Sanitation Districts
Joint Administration Office
Conference Room D
1955 Workman Mill Road
Whittier, California
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 February 28, 2024 Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. 2024 California Legislative Update
3. Provide Direction to Staff on whether CPA should take a Support Position on Assembly Bill 1176 and, if so, Recommend that the Board of Directors Approve a Support Position On Assembly Bill 1176.
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON APRIL 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 February 28, 2024 Legislative & Regulatory Committee Meeting
Date: March 27, 2024
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, February 28, 2024, 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
Clean Power Alliance
Executive Conference Room
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
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
CALL TO ORDER & ROLL CALL
Acting Chair Cedric Hicks called the meeting to order at 10:04 a.m. and the Clerk of the Board conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Chair Absent Carson Cedric Hicks Committee Member Remote
Los Angeles
County Lindsey Horvath Committee Member Remote
Manhattan Beach Amy Howorth Committee Member Absent
West Hollywood Chelsea Byers
Alternate Committee
Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the November 29, 2023, Legislative & Regulatory Committee Meeting
Motion: Committee Member Byers, West Hollywood
Agenda Page 4
Legislative & Regulatory Committee Item 1
Second: Chair Hicks, Carson
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Oral Update from CPA Staff
Gina Goodhill, Sr. Director, Government Affairs reported on CPA’s Lobby Day held on February 21 and thanked Chair Hicks and Directors Klein Lopez, and Erickson for attending. CCAs were involved in 57 meetings and interacted with 25 legislators and staff. CPA held meetings with assembly members, senators, and senior staff in attendance. Ms. Goodhill noted that CPA staff spent less time explaining what a CCA is, and more time discussing policy issues, including how CPA can contribute to moving policies forward. Ms. Goodhill shared some takeaways from the meetings, noting that there is more interest in understanding hydrogen technology and its role in the future as well as a possibility that the state may not pursue the Climate Bond. Many legislators expressed interest in working together to achieve the state’s ambitious climate goals while ensuring reliability and affordability.
Mr. Bardacke discussed climate bonds, concluding that there is a possibility that the current climate bond may be associated with affordability and can therefore be prioritized by legislators. Chair Hicks complemented Lobby Day and stated that a common concern with hydrogen is determining how it will be governed and expressed interest in ensuring CPA is involved in the development of such a policy.
In response to Committee Member Horvath’s question on legislators involved in the Climate Bond efforts, Mr. Bardacke explained that although the bill was sponsored by Senator Ben Allen and Assemblymember Eduardo Garcia, bonds are ultimately discussed with the governor, and legislators Maguire and Rivas would lead the efforts on the Senate and Assembly side respectively, with the Chair of the Assembly Natural Resources Committee Isaac Bryan also playing a role. Ms. Goodhill added that Assemblymember Zbur is interested in finding out how to incorporate more energy initiatives into the bond. Committee Member Horvath also emphasized getting clarity on how CPA wants to manage hydrogen as legislation is developed at the state level.
3. Receive Update on Proposed Income-Graduated Fixed Charges and Related Legislative Proposals and Provide Direction to Staff
Gina Goodhill, Sr. Director, Government Affairs presented on the Income-Graduated Fixed Charges and AB 1999, which would repeal the fixed charge provisions under AB 205 and replace it with a $5 fixed charge for CARE customers and a $10 fixed charge for all other residential customers.
Chair Hicks expressed concern that those in higher income brackets may be adversely affected by the legislation; if CPA does not take a formal position, it can suggest generalized support for the bill’s concept of limiting fixed charges.
Committee Member Horvath added that any proposal would require income verification, which is challenging, and access to income information also remains unclear. Committee Member Horvath also noted that the proposal can cause division at the Board level; monitoring the proposal is most appropriate at this time given the lack of information. Mr. Bardacke informed the Committee that the CPUC plans to release a proposed decision on the issue before the end of the legislative Agenda Page 5
Legislative & Regulatory Committee Item 1
session, which can add more clarity and could prompt CPA to take a position. The Committee recommended monitoring the bill’s progress prior to taking a position.
COMMITTEE MEMBER COMMENTS
Upon request from the Committee, Mr. Bardacke provided an update on the onboarding of the three new cities, La Canada-Flintridge, Lynwood, and Port Hueneme; the CPUC responded with requests for additional information, which CPA provided, and the CPUC will respond by the end of March.
ADJOURN
Chair Hicks adjourned the meeting at 10:55am.
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: 2024 California Legislative Update
Date: March 27, 2024
RECOMMENDATION
Receive and File.
BACKGROUND/DISCUSSION
In the first few months of the 2024 legislative session, 2,144 new bills were introduced, a decrease from the record 2,681 bill that were introduced in 2023. Roughly 60-70 of these are energy bills that could impact CPA and that staff will track with its trade association, CalCCA. Because this is the second year in a two-year legislative session, these new bills are in addition to hundreds of others that were introduced in 2023 and are still moving through the legislative process.
The 2024 proposed legislation that is relevant to CPA spans the gamut and includes changes to open meetings under the Brown Act, measures to jumpstart offshore wind and hydrogen production, efforts to expand rooftop solar and other distributed energy resources, and many others. Primarily though, the bills that CPA will track can be organized into several distinct themes:
Affordability: Rising electricity costs that show no sign of slowing have spurred legislators to hold hearings and introduce legislation aimed at reducing customers’ electricity bills. Affordability bills make up most of the proposed legislation that staff will Agenda Page 13
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7 Legislative & Regulatory Committee Item 3
track. Most notably and previously discussed by the Legislative & Regulatory Committee is Assemblywoman Irwin’s Income Graduated Fixed Charge bill (AB 1999), however four other bills have been introduced that would also make changes to the income graduated fixed charge. Additional affordability bills focus on reducing costs for key customer segments, such as low-income customers, certain industrial customers, and customers who meet vulnerability thresholds. One of these bills would expand FERA eligibility and could be beneficial to CPA customers.
Building and Vehicle Decarbonization: Virtual power plants have captured legislators' interest this year, with four separate proposals being discussed to aggregate distributed energy resource technologies in order to advance demand response. CPA supports the growing interest in demand response, though will be tracking these bills closely to ensure that this technology can be promoted without resorting to mandates for load serving entities like CPA. Several bills have also been proposed to advance innovative models for electric vehicle (EV) charging. These include new requirements for curbside EV charging, and new certifications to ensure the functionality of publicly owned EV chargers.
Finding a balance between encouraging innovative advances to EV charging without resorting to new onerous requirements for local governments will be key.
Transmission, Distribution, and Infrastructure: While not as prominent as in 2023, infrastructure continues to be an issue of concern and discussion, with proposed legislation primarily focused on reducing timelines for transmission buildouts. Current bill proposals include exploring alternatives to current undergrounding requirements, expediting the infrastructure permitting process, and studying and investing in new technologies to increase reliability.
Climate Bond: The proposed “Climate Bond” continues to move forward through separate bills in the Assembly (AB 1567, Eduardo Garcia) and Senate (SB 867, Ben Allen), albeit for a smaller amount than was originally envisioned. As currently written, the bonds focus on expansion and protection of open spaces, water and land conservation, fire mitigation and other land use measures. To a lesser extent, the bill also includes Agenda Page 14
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8 Legislative & Regulatory Committee Item 3
funding for clean energy infrastructure such as new transmission lines, long-duration energy storage, and clean energy infrastructure. These types of investments are crucial to meeting the state’s clean energy goals, yet contribute to rising electricity costs. Funding some of these costs through a bond rather than through customer bills could be an innovative way to reduce the increasing cost of electricity bills.
Budget Deficit
Of ongoing concern is the sizeable budget shortfall that the Governor’s office forecasted, now estimated at between $38 billion to $53 billion. In an attempt to close the budget shortfall, the Governor’s office proposed various cuts and delays to program funding that had been allocated in the 2022/2023 budget, and the Senate released its own action plan to reduce $17 billion from the deficit through funding shifts, reductions, delays and deferrals. Collectively, these include proposals to delay residential solar and storage funding (SGIP funding); cuts to funding for the Regional Climate Resilience Program, which includes resiliency at critical facilities; and reductions to funding for the Equitable Building Decarbonization Program, which includes directly installing electric appliances in low-income households. As a result, many advocates are focused on preserving funds for programs that were promised in the 2022/2023 budget rather than advocating for bills or programs that require new funding.
ATTACHMENT
None.
Agenda Page 15
_
9 Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: AB 1176
Date: March 27, 2024
RECOMMENDATION
Provide direction to staff on whether CPA should take a support position on Assembly Bill 1176 and, if so, recommend that the Board of Directors approve a support position on Assembly Bill 1176.
BACKGROUND/DISCUSSION
AB 1176, authored by Assemblymember Rick Zbur and sponsored by ClimatePlan, would enact the Local Electrification Planning Act. This Act would require cities and counties, no later than January 1, 2028, to prepare and adopt a specific plan to identify the following goals:
1. Opportunities to expand electric vehicle charging and infrastructure, including for public fleets and heavy-duty vehicles
2. Opportunities to advance building decarbonization in new and existing buildings
3. Opportunities to expand zero-emission and renewable distributed energy resources including rooftop solar, community solar, microgrid and battery storage
4. In coordination with relevant load serving entities, identification of opportunities to advance grid infrastructure upgrades where they are needed Agenda Page 10
Legislative & Regulatory Committee ITEM 3
Cities or counties that have already adopted local decarbonization plans, such as a Climate Action Plan, may use their existing plan rather than creating a new one. However, the bill would not provide funding for cities that do not have such a plan. The bill would also require that all plans include policies to address the needs of disadvantaged communities and low-income households.
While earlier versions of the bill were opposed by the League of California Cities (Cal Cities), the bill was amended to give local governments increased flexibility in how they can meet the bill requirements. Cal Cities has since removed their opposition and is neutral on the bill. The current version is supported by CivicWell (formally the Local Government Commission), the Electric Vehicle Charging Association, California Environmental Voters, and others, and is opposed only by the County of Kern.
The bill’s goals around vehicle and building electrification preparedness are aligned with the goals outlined 3d, 3c, 3d, 3f, and 5d in CPA’s Policy Platform, and CPA has previously supported similar bills that advance electrification through planning. However, while none of CPA’s member agencies have currently taken a position on this bill, the new requirements for local governments may be difficult for some smaller cities. Therefore, CPA staff is seeking Committee direction on whether to recommend a Support position on this bill to the Board of Directors.
ATTACHMENT
1. 2024 Policy Platform
Agenda Page 8
Agenda Page 11
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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 12
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 procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
Agenda Page 13
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.
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.
Agenda Page 14
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 15