Sep 05, 2024 Utilities Commission

IT'S CALLED TO ORDER,

[00:00:02]

[PLEDGE OF ALLEGIANCE]

OKAY, ROLL CALL LISA.

[ROLL CALL]

VICE PRESIDENT MCGUIRE.

HERE.

SECRETARY SCOTT.

PRESENT.

COMMISSIONER SHANNON.

HERE.

COMMISSIONER CORDERO.

HERE.

WE HAVE A QUORUM.

OKAY.

OKAY, NOW WE'RE TO

[1. 24-54741 Recommendation to excuse President Rainey from the August 19, 2024 Prop 218 Public Hearing.       Suggested Action: Approve recommendation. ]

AND ITEM NUMBER ONE IS TO, EXCUSE ME, FROM THE AUGUST 19TH, UM, 2024 MEETING ON PROP TWO 18 TEAM HEARING.

ANY PUBLIC COMMENTS? ANY COMMISSIONER'S COMMENTS? DO I HAVE, OH, I GOT A MOTION TO APPROVE.

SECOND BY KEVIN, A SECOND BY COMMISSIONER MCGUIRE.

ALL THOSE IN FAVOR? AYE.

AYE.

AYE.

ANY OPPOSITION? OKAY, WE HAVE NONE.

N NEXT IS

[2. 24-54742 Recommendation to approve August 15, 2024 Board meeting and August 19, 2024 Prop 218 Public Hearing minutes.       Suggested Action: Approve recommendation. ]

APPROVE THE TRANSFER OF FUNDS.

ITEM TWO, OH, WHERE AM I? OH, APPROVE.

AUGUST 15TH, BOARD MEETING AND AUGUST 19TH, PROPOSITION TWO 18 HEARING MINUTES.

ANY PUBLIC COMMENTS? ANY COMMISSIONER'S COMMENTS? DO I HAVE A MOTION AND A SECOND MOTION TO APPROVE? OKAY.

SECOND, I MEAN, UH, THE MOTION TO APPROVE IS MCGUIRE AND SECOND IS COMMISSIONER SHANNON.

ALL THOSE IN FAVOR? AYE.

AYE.

AND ANY OPPOSITION? HEARING NONE, IT CARRIES.

ITEM NUMBER THREE,

[3. 24-54743 Recommendation to approve Transfer of Funds for September 5, 2024.       Suggested Action: Approve recommendation. ]

UH, FOUR TRANSFER OF FUNDS.

ANY PUBLIC COMMENTS? TRANSFER OF FUNDS? CHRIS, ARE THEY TOO GENERAL? THIS IS TO VARIOUS FUNDS.

SO THERE'S MANY, MANY, MANY FUNDS IN THE CITY, AND SO LIKE WE HAVE TO PAY FOR OUR SHARE OF LIKE, TECHNOLOGY AND INNOVATION.

UM, SO WHEN WE PROVIDE, UH, WHEN DOWNTOWN, UH, DEPARTMENTS PROVIDE SERVICES TO THE UTILITIES, WE TRANSFER FUNDS FROM THE WATER, GAS, AND SEWER FUNDS TO, TO THOSE FUNDS TO COVER OUR COSTS.

IT, IT SHOULD BE ITEM NUMBER THREE.

THERE'S A BREAKDOWN.

IT'S BROKEN DOWN BY FUNDS AND THEN WHERE THE MONEY GOES TO, UH, DIANE, YOU'RE SHOWING HER.

OKAY.

THANK YOU.

DID YOU SHOW HER DIANE? OKAY.

AND, AND TO FURTHER ANSWER YOUR QUESTION, THERE, THERE ARE TIMES WHEN WE DO TRANSFER MONEY TO THE GENERAL FUND.

UH, THIS MONTH IS NOT ON THERE.

UM, BUT, UH, WE USUALLY DO THAT.

BRENDA, IS IT QUARTERLY? OKAY.

DID YOU SEE IT? OKAY.

UH, ANY PUBLIC COMMENTS? ANY COMMISSIONER'S COMMENTS? DO I HAVE A MOTION AND A SECOND APPROVAL? SECOND SHANNON AND SECOND BY GLORIA.

COMMISSIONER CORDERO.

ALL IN FAVOR? AYE.

ANY OPPOSITION? HEARING NONE.

THE MOTION CARRIES.

ITEM NUMBER

[4. 24-54744 Recommendation to approve Retirement Order Nos. 6179 and 6180 for inventory items that are no longer being used during the current year.       Suggested Action: Approve recommendation. ]

ANY PUBLIC COMMENTS? ANY COMMISSIONER'S COMMENTS? DO I HAVE A MOTION? AND A SECOND? SECOND.

MOTION BY KEVIN AND SECOND BY COMMISSIONER SHANNON.

ALL OF THOSE IN FAVOR, AYE.

AYE.

ANY OPPOSITION? HEARING NONE, THE MOTION CARRIES.

NOW

[5. 24-54746 Authorize the General Manager to release AB 32 Cap-and-Trade Program revenues generated through California’s Cap-and-Trade Consignment Auction for Fiscal Year 2025 for qualifying Greenhouse Gas reducing programs and projects in compliance with the California Global Warming Solutions Act of 2006.       Suggested Action: Approve recommendation. ]

[00:05:01]

UH, MR. TONY FOSTER.

THANK YOU.

GOOD MORNING BOARD MEMBERS.

WE ARE HERE TO PRESENT A BRIEF OVERVIEW OF THE CALIFORNIA CAP AND TRADE PROGRAM AS IT RELATES TO NATURAL GAS UTILITIES AND OUR ENERGY AND WATER EFFICIENCY PROGRAMS. THE MERGER OF GAS AND WATER HAS BROUGHT ABOUT SIGNIFICANT POSITIVE CHANGES TO OUR OPERATIONS AND THE PROGRAMS THAT WE OFFER TO THE COMMUNITY ON AB 32 MATTERS.

THIS BOARD SHOULD NOW BE INCLUDED IN THE REVIEW AND APPROVAL OF PROJECTS FUNDED BY AN IMPORTANT REVENUE STREAM GENERATED BY OUR GAS BUSINESS OPERATIONS TEAM.

WE'RE HERE TODAY, DENNIS AND I SAW HEATHER COME IN HERE, SO, UM, THROUGH THE CALIFORNIA AIR RESOURCES BOARD CONSIGNMENT AUCTION PROGRAM.

SO LET'S DIG IN THE CALIFORNIA AIR RESOURCES BOARD OR CARB IMPLEMENTS AND ENFORCES THE CAP AND TRADE PROGRAM PURSUANT TO A BROAD EMISSIONS REDUCTION MANDATE SET UP BY THE STATE LEGISLATURE IN ASSEMBLY BILL 32.

THE CAP AND TRADE PROGRAM COVERS SOURCES RESPONSIBLE FOR APPROXIMATELY 85% OF THE STATE'S GREENHOUSE GAS EMISSIONS.

THIS AMOUNTS TO AROUND 450 COVERED ENTITIES ACROSS THE ELECTRIC GENERATION, LARGE INDUSTRIAL AND FUEL SUPPLY INDUSTRIES.

COVERED ENTITIES ADMIT 25,000 OR MORE METRIC TONS OF CARBON DIOXIDE EQUIVALENTS ANNUALLY.

THEY MUST REPORT VERIFIED EMISSIONS DATA TO CAR ANNUALLY.

THE CAP OF CAP AND TRADE WAS SET BY CARB AFTER DETERMINING WHAT THE STATE SUBMISSIONS WERE IN 1990 AND COLLECTING DATA ON EMISSIONS OVER SEVERAL YEARS.

THROUGH THIS DATA CARB DECIDED THAT THE CAP SHOULD DECLINE APPROXIMATELY 3% EACH YEAR THROUGH 2020 AND APPROXIMATELY 5% EACH YEAR THROUGH 2030.

TO HELP MEET CALIFORNIA'S GHG REDUCTION GOALS.

CAP AND TRADE IS DESIGNED TO ACHIEVE THE FOLLOWING CLIMATE MITIGATION GOALS.

NUMBER ONE, REALIZING GHGS EMISSIONS TARGETS THROUGH A STRICT CAP ON EMISSIONS THAT DECREASE EACH YEAR.

NUMBER TWO, MINIMIZING ECONOMIC IMPACT ON CONSUMERS AND THE ECONOMY BY ALLOWING EMISSIONS TRADINGS IN AN OPEN MARKET.

NUMBER THREE, PROVIDING FLEXIBILITY FOR ENTITIES IN ACHIEVING COMPLIANCE.

AND NUMBER FOUR, GENERATING REVENUE FOR UTILITY RATE PAYERS AND ADDITIONAL STATEWIDE GHG EMISSIONS REDUCTION EFFORTS THROUGH CREDIT AUCTIONS.

SO UNDER THE PROGRAM CARB SETS DECLINING CAP ON STATEWIDES EMISSIONS.

ALL COVERED ENTITIES ARE REQUIRED TO REDUCE GHG THAT CAN BE ATTRIBUTABLE TO THEIR OPERATIONS.

AND IF AN ENTITY EXCEEDS THE CAP CARB ESTABLISHED, THEN THEY HAVE TO BUY ALLOWANCES TO EMIT THROUGH ONE OF CARBS MARKET AUCTIONS.

AS A REMINDER, EACH YEAR THE CAP DECLINES, WHICH MEANS THAT WE ARE NOW ALLOWED TO EMIT FEWER AND FEWER EMISSIONS THROUGH OUR OPERATIONS EACH YEAR.

AND IF WE, UH, DO NOT, THEN WE HAVE TO BUY MORE AND MORE ALLOWANCES ON THE CARVED MARKET.

THIS GRAPH REPRESENTS THE ALLOWANCES, THE FREE ALLOWANCES GIVEN TO LONG BEACH, SO ABOUT FREE ALLOWANCES TO EASE RATE PAYERS INTO THE COST OF THE PROGRAM.

CARB GIVES EACH COVERED ENTITY FREE ALLOWANCES TO OFFSET COMPLIANCE COSTS.

THESE FREE ALLOWANCES ARE REDUCED EACH YEAR, AND THAT'S THE OVERALL REDUCTION OF ALL THE BARS YOU SEE THERE.

SOME, SOME OF THE FREE ALLOWANCES GO DIRECTLY TO PURCHASING OUR OFFSET, OUR COMPLIANCE CREDITS.

THE BLUE PART, SOME OF THE FREE ALLOWANCES MUST BE SOLD AT AUCTION.

THE ORANGE PART, THE DECLINING BLUE PART MEANS CUSTOMERS PAY MORE AND MORE ON THEIR BILLS BECAUSE LESS WE CAN APPLY TO OFFSET THEIR BILLS.

THE IMPACT ON THE BILL IS COMPOUNDED BY THE OVERALL REDUCTION IN THE TOTAL FREE ALLOWANCES.

THE STATE'S INTENT IS TO SHIFT MORE AND MORE OF THE CAP AND TRADE CO COMPLIANCE COSTS TO CUSTOMERS AS A WAY TO INCENTIVIZE LESS GAS CONSUMPTION BY MAKING IT MORE EXPENSIVE.

BY CONTRAST, THE INCREASING ORANGE PARTS MEANS WE GENERATE MORE AND MORE REVENUE FOR OUR EFFICIENCY PROGRAMS. THE IMPACT ON THESE REVENUE INCREASE IS SEEN ON THE NEXT SLIDE.

THIS LINE GRAPH REPRESENTS THE PRICE PER CREDIT AT AUCTION OVER TIME.

AS YOU CAN SEE, WHEN OUR COMPLIANCE OBLIGATIONS BEGAN IN 2015, THE PRICE PER CREDIT WAS ABOUT $13 AT OUR LAST AUCTION.

THE CREDIT PRICE, UH, THE CREDIT AUCTION PRICE WAS

[00:10:01]

GENERALLY, THE CREDIT PRICE AT AUCTION INCREASES EACH YEAR AND WE'RE REQUIRED.

WE ARE REQUIRED TO SELL MORE AND MORE FREE ALLOWANCES AT AUCTION.

WHAT DOES THIS MEAN IN REVENUES, UH, FOR OUR EFFICIENCY PROGRAMS? WELL, THEY GO UP .

THE REVENUES INCREASE EACH YEAR.

WE BEGIN, WHEN WE BEGAN COMPLIANCE IN 2015, THAT YEAR'S AUCTION REVENUE WAS UNDER $2 MILLION A DAY.

OUR ANNUAL REVENUES ARE ABOUT $10 MILLION ANNUALLY.

AND INCREASING HOW THESE REVENUES ARE ALLOCATED IS THE TOPIC OF THE NEXT SEVERAL SLIDES.

SO SINCE 2015, REVENUES FROM THESE PROGRAMS HAVE BEEN USED FOR A VARIETY OF GROUNDBREAKING ENERGY EFFICIENCY PROGRAMS, ALL TARGETED TO PRODUCING GHG EMISSIONS.

HERE ARE SOME EXAMPLES.

STREETLIGHT CONVERSIONS TO LED CREATIONS OF EV CHARGING STATIONS, ENERGY EFFICIENT APPLIANCE, UH, REBATE PROGRAMS, DIRECT INSTALL PROGRAMS FOR WATER CONSERVATION CREDIT TO CUSTOMERS TO MITIGATE THE JANUARY, 2023 NATURAL GAS STRIKE PROCUREMENT OF CITY OWNED SOLAR CANOPIES, ENERGY EFFICIENT HVAC AND ROOFING SYSTEMS. IN FISCAL YEAR 25, THIS IS THE FIRST TIME SIGNIFICANT FUNDS WERE EXPLICITLY ALLOCATED TO LONG BEACH UTILITY DEPARTMENT PROJECTS.

THE FIRST FOUR BULLETS OUTLINE THESE PROJECTS, RESIDENTIAL ENERGY EFFICIENCY REBATES, MULTIFAMILY NATURAL GAS APPLIANCE, REBATES, RESIDENTIAL AND MULTIFAMILY, DIRECT INSTALL OF WATER AND ENERGY EFFICIENT APPLIANCES.

THE LAST, UH, BAR THERE, THE LAST COLUMN OR ROW THERE REPRESENTS, UH, OTHER BENEFITS FROM THESE REVENUES, LIKE THE CONVERSION OF BUCKET TRUCKS FROM GAS AND DIESEL TO ELECTRIC.

HERE ARE SOME OTHERS IN THE FISCAL 25 ALLOCATION.

PUBLIC FACING EV CHARGING STATIONS, ENERGY EFFICIENT HVAC AND LIBRARIES AND SOLAR UPGRADES AT PD LED LIGHTING CONVERSION AT PARKS.

GENERALLY THERE IS A 50 50 SPLIT BETWEEN THE CITY AND THE UTILITY DEPARTMENT PROJECTS.

NOW I'LL PASS THE MIC TO MY COLLEAGUE, UH, JOEY VASCAR RIZZO FOR MORE DETAIL IN HOW AB 32 FUNDS SUPPORT LONG BEACH UTILITY, WATER, AND ENERGY EFFICIENCY PROJECTS.

THANKS, TONY.

I'LL JUST ASK YOU GEORGE.

THANKS.

UM, GOOD MORNING, UH, COMMISSIONERS.

UM, AS TONY MENTIONED, UH, THE LIST OF, UH, UM, PENDING FY 25 PROJECTS, UH, FOR, UM, FOR US TO BE FUNDED FOR OUR DIRECT INSTALL PROGRAMS AS WELL AS OUR SINGLE FAMILY AND MULTIFAMILY, UH, DEVICE REBATES ARE, UM, SOME OF THE THINGS THAT I'LL BE TALKING ABOUT TODAY AND ALSO A LITTLE BIT MORE OF THE BACKGROUND OF THE PROGRAMS THAT WE RUN.

SO YOU MAY BE FAMILIAR WITH SOME OF OUR OUTDOOR AND INDOOR PROGRAMS HERE.

UH, VERY POPULAR LAWN AND GARDEN, UH, PLANT PARKWAY, NATIVE PLANT PARKWAY, AS WELL AS OUR DIRECT INSTALL GARDENS PROGRAM.

UM, BUT WE'RE GONNA BE FOCUSING MORE ON THE, UM, HOME ENERGY EFFICIENCY REBATE PROGRAM TODAY.

THE, UH, DIRECT INSTALL APPLIANCES PROGRAM, OUR CERTIFIED BLUE PROGRAM, AND OUR REBUILDING TOGETHER LONG BEACH PROGRAM.

UH, TWO OF THOSE ARE, UM, POTENTIAL NEW PROGRAMS FOR MAYBE FY 25, OR EXCUSE ME, FY 26 AND FY 27 FOR A NEW ROUND OF CARB FUNDING.

YOU CAN GO AHEAD AND NEXT SLIDE.

THANKS, GEORGE.

UM, SO OUR DIRECT INSTALL APPLIANCES, I THINK I CAME TO THE BOARD ASKING, UM, FOR PERMISSION TO USE MONEY, I GUESS YOU COULD SAY, UM, TO, FOR THIS PROGRAM.

AND IT WAS MAINLY FOR OUR, UH, MULTIFAMILY AND SINGLE FAMILY, UM, CUSTOMERS.

THOUGH IT IS A, UH, CITYWIDE, EXCUSE ME, A UTILITY WIDE, UH, PROGRAM.

WE DO, UH, PRIORITIZE PEOPLE THAT ARE IN DISADVANTAGED COMMUNITIES OR ARE INCOME QUALIFIED FOR THEM TO RECEIVE THESE, UH, DIRECT INSTALL DEVICES.

UH, WHAT HAPPENS IS A CONTRACTOR WILL COME IN, UM, THEY'LL REVIEW ALL THE INEFFICIENT DEVICES IN AND ON THE PROPERTY, AND THEN THEY'LL PROVIDE A LIST OF DEVICES THAT THEY CAN IN, UH, THEN INSTALL FOR THE SINGLE FAMILY OR THE MULTIFAMILY TENANT.

THE HISTORY OF THESE, UH, TWO PROGRAMS GOES BACK TO ABOUT 2019, I BELIEVE, UH, WHEN WE FIRST STARTED WITH OUR MULTIFAMILY PROGRAM.

UM, THAT WAS BENEFICIAL TO BOTH THE TENANT AND TO THE OWNER.

UM, BECAUSE OF RANGING IN PRICES AND TENANTS AREN'T ABLE TO REALLY DO TOO MUCH ON A, UH, RETROFITTING AND PLUMBING, UH, IMPROVEMENT SIDE, THEY WOULD NEED THE ACTUAL OWNER TO MAKE THAT DECISION.

SO BUILDING THAT RAPPORT WITH BETWEEN A TENANT AND THE UTILITY AS WELL AS THE OWNER, UM, WAS VERY SUCCESSFUL.

UM, AND THE OTHER ONE WAS OUR SINGLE FAMILY PROGRAM,

[00:15:01]

UM, AND THEN THE BENEFIT OF BOTH OF THESE PROGRAMS FOR THIS DIRECT INSTALL MULTIFAMILY SINGLE FAMILY IS WE'RE, UM, UH, PARTNERED WITH EDISON TO, UH, USE THEIR SHARED CONTRACTOR SERVICES.

UM, SO NOT ONLY ARE THE, UH, OWNERS AND THE CUSTOMERS GETTING THE, UH, DEVICES FOR WATER AND GAS, BUT THEY'RE ALSO GETTING ELECTRIC DEVICES AS WELL.

GO AHEAD.

AND SO WHAT I'M SAYING, UH, PRIORITIZING PROGRAM AREAS, UH, WHAT TONY HAD SPOKE ABOUT.

UM, AND, UH, FOR THE AB UH, 2006, UH, GOVERNOR RULING, UM, THERE WAS ALSO AN ADDITIONAL REQUIREMENT THAT, UH, SB 5 35 AND AB 1550, WHICH IS, UH, REPRESENTED ON THE MAP ON THE FAR LEFT, UM, SHOWS ALL THE AREAS THAT THE, THE CALIFORNIA EPA HAVE DEFINED AS, UH, CENSUS TRACKS THAT ARE LOW INCOME OR DISADVANTAGED COMMUNITIES.

SO THE RULES OF SPENDING MONEY FOR, UH, THESE, UH, CARB FUNDS ACTUALLY REQUIRE THAT WE SPEND, UH, 35% OF THOSE FUNDS INSIDE OF THAT, UH, SHADED OR BLUE OR DARK BLUE AREAS.

SO PRIORITIZING MEANING THAT WE NEED TO SPEND MONEY IN THOSE AREAS AND WE'RE LOOKING TO MAKE SURE THAT WE DO SO WE'RE, UM, COOPERATING WITH ALL THE RULES OF SPENDING THAT MONEY.

UM, THE MAP ON THE RIGHT IS MORE OF AN EXAMPLE OF, UH, THE PILOT PROJECT THAT WE DID WITH METROPOLITAN AND THE ALLIANCE FOR WATER EFFICIENCY.

UH, THEY DID A STUDY ON LONG BEACH IDENTIFYING AREAS THAT ARE, UH, LOOKING AT THEIR HOUSEHOLD BURDEN INDICATOR, UM, LOOKING AT THEIR ANNUAL, UH, SALARIES VERSUS WHAT THEIR, THEIR COSTS OF WATER ARE FOR THEM.

AND IT'S GOOD TO SEE THAT THE, THE 2006, EXCUSE ME, THE 2016 AND 2012 RULING FROM AB UH, 1550 AND SB 5 35 ARE VERY SIMILAR TO WHAT, UH, UH, THE ALLIANCE FOR WATER EFFICIENCY PROVIDED US IN THAT STUDY.

AND THEN, SORRY, THE RED DOTS ARE ACTUALLY THE ACTUAL AREAS WE'VE INSTALLED.

UH, THAT INITIAL SINGLE FAMILY DIRECT INSTALL PROGRAM.

YOU CAN GO TO THE NEXT SLIDE, GEORGE.

SO, UM, COUPLING WITH OUR, UH, DIRECT INSTALL PROGRAM, WE ALSO HAVE, UH, DEVICES PROGRAMS, AND DENNIS AND HEATHER HAVE BEEN BUILDING THIS FROM SCRATCH.

AND IT'S, WHAT'S GREAT ABOUT THIS PROGRAM IS IF YOU, IF YOU DON'T WANT THE THINGS THAT ARE BEING DIRECTLY INSTALLED FOR YOU FOR FREE, YOU HAVE AN OPTION TO CHOOSE OTHER DEVICES THAT ARE GAS EFFICIENT SAVING.

SO SOME OF THESE THINGS ON HERE, YOU KNOW, LIKE A NATURAL GAS POOL HEATER OR A NATURAL GAS FIREPLACE INSERT, THINGS THAT ARE NOT SO NORMAL, I GUESS YOU COULD SAY ARE STILL AN OPTION FOR PEOPLE TO USE THIS CAR FUNDING AND APPLY FOR A DEVICE REBATE.

UH, SO FAR, UH, SINCE, UH, FISCAL YEAR 2021, IT WAS A SLOW START, BUT AS YOU CAN SEE WHERE THE GROWTH OF THE PROGRAM HAS COME OUT TO BE ABOUT $126,000 THAT WE PAID OUT LAST YEAR.

AND SO FAR WE'RE AT ABOUT $43,000.

UM, BUT USUALLY THE BIGGEST CHUNK OF, UH, DEVICE REBATES COME IN CLOSER TO THE NOVEMBER AND DECEMBER TIME WHEN EVERYBODY REMEMBERS THAT THEY NEED TO REPLY FOR A REBATE.

UM, SO WE'RE EXPECTING THOSE NUMBERS TO BE, UH, EQUAL OR HOPEFULLY HIGHER.

BUT ALONG WITH THIS, UM, THE SINGLE FAMILY PROGRAM RIGHT NOW, AS TONY MENTIONED, WE ALSO HAVE THE MULTIFAMILY ASPECT OF IT.

SO FOR FY 25, WE'RE LOOKING TO EXPAND THAT PROGRAM INTO MULTIFAMILY AND DECIDE ON WHICH DEVICES ARE BEST FOR, BEST SUITED FOR THOSE TENANTS.

GO TO THE NEXT SLIDE.

OKAY.

AND THEN THESE, THESE NEXT COUPLE SLIDES ARE MORE OF THE, UH, THE PROGRESSION OF HOW WE WANT TO USE SOME OF THE CARB FUNDS.

AND ONE OF THE BIGGEST THINGS IS REP HAVING REPRESENTATION FOR OUR COMMERCIAL SECTOR.

UH, RIGHT NOW, THE, THE WATER SIDE OF UTILITIES DOES WHAT'S CALLED A CERTIFIED BLUE PROGRAM, AND WE HAVE STAFF THAT GO OUT AND DO AN IN, UH, A WATER EFFICIENCY AUDIT TO EACH OF THE COMMERCIAL CUSTOMERS TO SEE IF THEY ARE ONE, HAVING, HAVING EFFICIENT PRACTICES WITH LIKE WASH DOWN TYPE EFFECTS TO MAKE SURE EVERYTHING IS HEALTH AND SAFETY APPROVED.

ALSO, ALL OF THEIR, UM, TOILETS AND ICE MACHINES AND AERATORS AND THINGS THAT USE WATER, UH, ON A DAILY BASIS ARE HIGH EFFICIENCY.

AND IF THEY'RE NOT, THEN WE DIRECT THEM TO THE WEBSITES AND SOURCES THAT THEY CAN GET FUNDING TO, UH, REPLACE THOSE DEVICES AND, UH, HAVE A HIGHER EFFICIENCY.

SO WHAT WE'D LIKE TO DO IS HAVE THAT SAME OPPORTUNITY ON THE GAS SIDE, UM, NOT ONLY FOR THE, FOR ALL LIKE THE GAS THAT IS USED, UH, NATURAL GAS THAT IS USED INSIDE OF RESTAURANTS, BUT EVEN MORE OF AN EXPANSION LOOKING INTO COMMERCIAL BUILDINGS AND HOTELS, KITCHENS THAT ARE IN RESTAURANTS AND HOAS WITH THE COMMON POOL PUMP TYPE SITUATION, POOL HEAT SITUATION.

SO THAT'S THE HOPE THAT, UH, WE CAN GO INTO IN FY 26.

AND THEN THE NEXT SLIDE,

[00:20:01]

SO RIGHT NOW, THE WATER SIDE AS WELL AS UTILITIES, WE OFFER A LEAK REPAIR PROGRAM.

AND CURRENTLY THAT'S ACTUALLY A PILOT.

UM, WE'VE BEEN, UH, SUCCESSFUL IN ROUGHLY ABOUT 10 HOMES SO FAR THAT HAVE BEEN ACTIVE ONGOING LEAKS, SINGLE FAMILY HOMES, UM, THAT DON'T HAVE THE MEANS TO REPAIR THOSE, THOSE LEAKS.

SO WHAT WE'VE, UH, DEVELOPED ALONG WITH OUR, UM, NONPROFIT ORGANIZATION, REBUILDING TOGETHER LONG BEACH IS A PROGRAM THAT THEY ACTUALLY, UH, HELP US FIND THE PEOPLE THAT ARE, UH, IN NEED.

UM, THEY, UH, HELP US RUN ALL THE ADMINISTRATIVE COSTS.

THEY FIND THE NECESSARY PLUMBERS, THEY GO THROUGH ALL THE SCOPE OF WORK THAT WE REQUIRE AND ALL THE QUOTES THAT THE PLUMBERS REQUIRE AS WELL.

AND THEN THEY GO OUT AND ACTUALLY DO THE WORK.

SO COMMON EXAMPLE IS LIKE A MAIN LINE THAT WAS BROKEN, UM, AT A CUSTOMER'S HOME THAT REBUILDING TOGETHERS, PLUMBERS WENT OUT AND MADE THAT REPAIR.

IT'S COMPLETELY ZERO COST TO THE RESIDENT.

AND WITH THAT BENEFIT, WE WANT TO DO THE SAME THING ON THE GAS SIDE TOO.

SO WE'RE GOING TO START LOOK AT LOOKING AT HOW OFTEN WE, WE HEAR ABOUT GAS SHUTOFFS BECAUSE SOMEONE THAT HAS A BREAK, A BIG SAFETY CONCERN IS, IS ONE, GETTING THE GAS SHUTOFF, BUT THEN THE MORE CONCERN IS MAKING SURE SOMEONE ACTUALLY HAS THE, THE NATURAL GAS, UM, ACCESS AND THAT REPAIR CAN BE DONE AT, AT AN EFFICIENT PACE.

SO WE HOPE TO EXPAND, UH, THIS PROGRAM AS WELL INTO THE FUTURE.

UM, I THINK THAT IS THE LAST OF IT.

UM, BUT JUST FOR FROM TONY AND I, UM, OUR RECOMMENDATION FOR YOU ALL, UM, TO, TO AUTHORIZE THE GENERAL MANAGER TO RELEASE MONETARY REVENUES GENERATED THROUGH CALIFORNIA'S CAP AND TRADE PROGRAM, CONSIGNMENT AUCTION FOR FISCAL YEAR 2025 FOR QUALIFYING GREENHOUSE GAS REDUCING PROGRAMS AND PROJECTS IN COMPLIANCE WITH THE CALIFORNIA GLOBAL WARMING SOLUTIONS ACT OF 2006.

UM, MYSELF AND TONY ARE HERE TO ANSWER ANY QUESTIONS IF YOU HAVE ME.

THANK YOU.

ANY, UM, PUBLIC COMMENTS, ANY COMMISSIONER COMMENTS? UM, KEVIN, UH, COUPLE QUESTIONS QUICK FOR YOU.

UM, IS THERE A PUBLICLY AVAILABLE LISTING OF, UH, RESIDENCES THAT HAVE RECEIVED, UH, THESE IN EITHER REBATES OR DIRECT INSTALL? WE HAVE A, WE HAVE A LIST OF EVERYONE THAT'S RECEIVED A DEVICE REBATE, BUT FROM THE PUBLIC STANDPOINT, WE DON'T SHARE, UH, INDIVIDUAL CUSTOMER INFORMATION JUST FROM A, A DATA, UH, PRIVACY SITUATION.

OKAY.

JUST CURIOUS ABOUT THAT.

ANY OTHER COMMISSIONER'S COMMENTS? I THINK HE HAD ANOTHER, ANOTHER, I'VE GOT A COUPLE MORE FOR, UH, TONY, IF I COULD.

SO THE, YOUR GRAPH ON, UH, EMISSION ALLOWANCE REVENUES SHOWS US AT $10 MILLION FOR 2024, BUT WE'RE EXPENDING 5.2, WHAT CAN YOU RECONCILE THE DIFFERENCE? YEAH, YOU HAVE A GOOD EYE.

SO WE HAD TO PAY THE FUND BACK THAT, UH, UH, ASSISTANCE TO CUSTOMERS FOR THE JANUARY 20, UH, THREE SPIKE THAT WAS OUTSIDE OF WHAT THE ALLOCATED PROGRAM FUND SPENDING.

SO WE PUT THAT MONEY BACK INTO THIS POT OF MONEY FOR THESE EFFICIENCY PROGRAMS, UH, WITH THAT $10 MILLION.

SO THE REMAINDER AFTER THOSE EXPENDITURES OR WHAT WE'RE ALLOCATING FOR THIS YEAR, SO THAT WAS ALMOST 5 MILLION, 4.8 MILLION, SO, OKAY.

CORRECT.

UM, AND DID THEY, DID WE FIND THAT OUT IN AN AUDIT? HOW, HOW DID DISCOVER THAT? NO, UH, IT WAS REALLY JUST OUR INTERPRETATION OF THE REGS.

UM, THEY WERE QUITE BROAD AND THE, THE EXPENDITURES CAN BE DONE IN A NUMBER OF WAYS, BUT, UM, THE, THESE FUNDS ARE RELIED UPON BY MANY CITY DEPARTMENTS BESIDES OURSELVES.

AND IF WHEN WE SPENT THAT MONEY JUST ON THOSE LOW INCOME CUSTOMERS FOR THAT GAS BIKE REBATE, WE WERE SHORTING THE PROGRAMS THAT HAD ALREADY BEEN PLANNED.

SO WE THOUGHT IT WAS THE RIGHT THING TO DO TO MONEY BACK.

AND I THINK THE ISSUE WAS, UH, WHEN THE, UH, GAS BIKE HIT IN JANUARY OF 23, UH, THAT WAS AN UNPLANNED EXPENDITURE, AND SO THOSE FUNDS WOULD, WHICH WOULD NORMALLY GO TO THESE PROGRAMS, UH, WE SHIFTED TOWARDS THIS AND SO WE'RE JUST PUTTING THIS BACK IN.

UH, SO MOVING FORWARD WE CAN EXPECT, UM, NEXT YEAR, YES, 10 MILLION PLUS.

10 MILLION PLUS.

OKAY.

THE AUCTION PRICES STAY HIGH AND, UH, BASED ON THE TREND, UH, IT WILL BE IN EXCESS OF $10 MILLION.

AND THERE'S NO, THERE'S SOME VARIABILITY IN, IN HOW MUCH, UH, THE AUCTION PRICE DOES INCREASE EVERY YEAR.

YES, BUT I, I UNDERSTAND IT'S ALL BASED ON MARKET.

IS THERE ANY ALL BASED, ANY WAY TO PREDICT? NO, IT'S, UH, THE GEN THE TREND IN DENNIS CAN WEIGH IN IF YOU WISHES, BUT THE TREND IS A STEADILY UPWARD TREND.

BUT THERE ARE YEARS WHERE A VARIETY OF MARKET ANOMALIES OCCUR, WHERE THERE MIGHT BE A DIP IN THE, THE ACCELERATION OF THOSE PRICES.

BUT OH, YEAR OVER YEAR THEY HAVE INCREASED PRETTY STEADILY.

IS THAT ABOUT ACCURATE? YEAH, THAT'S,

[00:25:06]

UM, TWO MORE QUESTIONS.

YES.

UH, SO I KNOW RECENTLY, UH, SOMETIME THIS YEAR WE APPROVED, UH, MAYBE IT WAS EVEN LAST YEAR, UH, PURCHASING OF, UH, VEHICLES, FLEET ADDITIONS TO OUR FLEET.

UM, DID WE USE ANY OF THIS MONEY TOWARDS ELECTRIC VEHICLE PURCHASES? NOT IN THIS DEPARTMENT.

I DON'T THINK WE DID.

NO OTHER DEPARTMENTS ARE USI UTILIZING THAT MONEY, BUT WE DID NOT USE FOR THIS DEPARTMENT.

AND ARE WE UTILIZING ELECTRIC VEHICLES? WE, WE HAVE A FEW, BUT, UH, NOT MANY.

OKAY.

ALL RIGHT.

UH, AND THEN LASTLY, DOES CARB SUPPORT, UM, THAT WE'RE USING THIS MONEY OUTSIDE OF THE UTILITIES DEPARTMENT OR OTHER PARTS OF THE CITY? ARE WE CONSIDERED THE CITY OF LONG BEACH IN THEIR EYES? IS THAT HOW WE'RE ABLE TO YES, THEY DO SUPPORT IT.

SO EVERY YEAR WE SUBMIT A REPORT ABOUT HOW THESE CONSIGNMENT AUCTION FUNDS ARE ALLOCATED AND THAT REPORT IS REVIEWED BY CARB AND IF THEY HAVE ANY QUESTIONS THEY PUSH BACK.

BUT THE, THE GENERAL BROAD VIEW IS IF IT'S A GREENHOUSE GAS REDUCING ACTIVITY, UH, THAT BENEFITS THE RATE PAYERS, THEN THEY SUPPORT IT.

OKAY.

THANK YOU.

ANDY COMMISSIONERS, GLORIA RO, THANK YOU SO MUCH.

UM, MY QUESTION IS REGARDING, UM, NUMBER 13, IT'S THE, UH, NATURAL GAS APPLIANCE REBATE.

UM, THE FIRST THING IS, YOU MAY HAVE MENTIONED THIS, UH, BUT WHAT THE APPLICATION PROCESS IS IT? WHAT IS IT? SO IT'S ACTUALLY A APPLICATION THAT AN THE CUSTOMER, UH, NEEDS TO REVIEW, UH, THAT THE APPLIANCE IS HIGH EFFICIENCY FOR ONE.

UM, THAT CAN BE ON LIKE A, A TIER, UH, TIER ONE, TWO, OR THREE STANDARD FOR HIGHEST EFFICIENCY.

FOR EXAMPLE, IT'S FOR LIKE A DRYER.

UM, AND THOSE ARE SET ACTUALLY THROUGH, UM, TESTING THAT'S DONE WITH SOCAL GAS MAINLY, UM, A CUSTOMER APPLIES, UH, TO OUR APPLICATION ONLINE.

THEIR APPLICATION IS THEN REVIEWED.

UM, AND THEN WE DO OUR OWN DUE DILIGENCE TO MAKE SURE THAT EVERYTHING THAT THEY'RE APPLYING FOR IS HIGH EFFICIENCY.

UM, DEPENDING ON WHICH TYPE OF DEVICE THAT THEY'RE APPLYING FOR, IT MAY NEED TO GO THROUGH A PERMITTING PROCESS THROUGH THE CITY.

SO IF ANY PLUMBER COMES IN, UM, THE CUSTOMER THEMSELVES NEEDS TO SET UP A, UH, AN INSPECTION TO MAKE SURE THAT EVERYTHING WAS INSTALLED CORRECTLY.

ONCE THAT GETS APPROVED AND PROCESSED, UM, THEN THE CUSTOMER, UM, WILL RECEIVE APPROVAL FROM US AS WELL AS THE CITY AND THEN WE CAN GO AHEAD AND PROCESS A CHECK FOR THEM.

OKAY, GREAT.

UM, THE SECOND QUESTION IS THE HISTORICAL ACTIVITY, UM, IT'S GONE UP SUBSTANTIALLY.

WHAT WAS, WAS THAT MORE MONEY OR WAS IT THAT WE JUST DID A BETTER JOB OF GETTING THE INFORMATION OUT THERE? I THINK DENNIS AND HEATHER PROBABLY HAVE MORE OF A, A SAY ON THAT, BUT FROM MY PERSPECTIVE, I THINK IT'S, IT'S MARKETED MORE, BUT IF YOU JUST WANNA TALK ABOUT IT, GOOD.

THE NUMBER OF ALLOWANCES WE NEED TO SEND TO AUCTION INCREASES AND ALSO EACH YEAR THE PRICE INCREASES.

SO YOU PUT THOSE TWO TOGETHER AND THAT'S WHY YOU KEEP SEEING AN INCREASE OUTTA REVENUE.

OKAY, GREAT.

I THINK YOU MAY HAVE ALREADY MENTIONED THAT.

APPRECIATE THAT.

I HAD ANOTHER QUESTION ON THE APPLICATION PROCESS AND IT ESCAPED ME.

UM, MAKE ONE ADDITIONAL POINT, AND THIS WILL, UH, COMMENT ON YOUR LAST QUESTION AND YOUR QUESTION REGARDING THE ESTIMATE OF 10 MILLION PLUS, IF FOR SOME REASON THE AUCTION PRICES HAVE A DIP AGAIN, OR, UM, WE'RE UNSUCCESSFUL IN SELLING ALL OF OUR AUCTION, UH, UH, ALLOWANCES AT AUCTION.

THE ALLOCATIONS AREN'T MADE UNTIL WE RECEIVE THAT REVENUE.

SO WE DON'T BUDGET THINGS IN ADVANCE OF THOSE, THOSE FUNDS.

SO IT'S ALL ADJUSTED, BUT IF THINGS SAY ACCORDING TO TREND, THEY SHOULD GO UP.

OKAY.

MY LAST QUESTION WAS, AND I THINK, I THINK I KNOW THE ANSWER.

SO THIS RIGHT HERE, THE GAS APPLIANCES REBATES IS SPECIFICALLY FOR THOSE AREAS THAT WE'VE COVERED IN THE CITY THAT ARE QUOTE UNQUOTE DISADVANTAGED.

THERE, THESE JUST OPEN TO ALL THE, IT IS OPEN UTILITY SERVICE AREA.

OKAY.

SO THAT INCLUDES SIGNAL HILL AS WELL.

OH, OKAY.

GOOD.

GOOD TO KNOW.

OKAY, THANK YOU.

GOOD REPORT.

ANY OTHER COMMISSIONER'S COMMENT? OKAY.

UM, NEXT WE HAVE, DO, DO WE HAVE A MOTION? MOTION TO APPROVE? SECOND.

MOTION TO APPROVE BY COMMISSIONER UH, GLORIA ERO AND SECOND BY COMMISSIONER SHE ALL THOSE IN FAVOR? ANY OPPOSITION? HEARING NONE, THE MOTION CARRIES.

NOW

[ANNOUNCEMENTS]

NO ANNOUNCEMENTS THIS MORNING.

[00:30:01]

IS THERE

[PUBLIC COMMENT]

[CLOSED SESSION]

THANK YOU.

COMMISSIONER RAINEY, UH,

[ 24-54748 Pursuant to Paragraph (b) (1) of Section 54957 of the California Government Code and Charter Section 1403(2) regarding Public Employee Employment:  Appointment of General Manager ]

OKAY, IN THE CLOSED SESSION PURSUANT PARAGRAPH B ONE OF SECTION 54 9 5 7 OF THE CALIFORNIA GOVERNOR MIN CODE AND CHARTER SECTION 1403 DASH TWO REGARDING PUBLIC EMPLOYEE EMPLOYMENT, APPOINTMENT OF GENERAL MANAGER.

UM, ANY PUBLIC COMMENTS, HEARING, SEEING NONE.

HEARING NONE, THE BOARD WILL RECESS INTO CLOSED SESSION TO CLOSE SESSION AND THEN WE WILL RECONVENE AFTER

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