Mar 19, 2026 Utilities Commission

UH, DO WE HAVE ANY PUBLIC COMMENTS? PERFECT.

ALL THOSE IN FAVOR SAY AYE.

RECEIVE AND FILE THE BAY DELTA ISSUES REPORT.

ANY OPPOSED? THANK YOU.

UH, ITEM NUMBER TWO,

[2. 26-54629 Recommendation to receive and file the Bay-Delta Issues report. Suggested Action: Approve recommendation. ]

IN ORDER TO HEAR, UH, THIS PRESENTATION MADE, PLEASE HAVE A MOTION TO RECEIVE AND FILE.

AND A SECOND.

OF THAT NUMBER, IT'S STILL A REALLY GOOD NUMBER.

SO CALL ON RANDALL ECK, MANAGER OF BAY DELTA PROGRAM.

GOOD MORNING AGAIN.

GOOD MORNING, AND GOOD MORNING.

AND PRESIDENT SCOTT, UH, MEMBERS OF THE COMMISSION.

I, I GAVE A PREVIOUS PRESENTATION ON THE STATE PROJECT TODAY.

UH, BUT, UH, UH, ANATOL ASKED ME TO FOCUS IN ON WHAT ARE SOME OF THE RISK AND RESILIENCY EFFORTS THAT METROPOLITAN AND OTHER AGENCIES ARE UNDERTAKING NOW TO, UH, DELIVER YOUR WATER THROUGH THE, UH, SACRAMENTO, SAN JOAQUIN, UH, BAY DELTA INTO THE STATE WATER PROJECT AND DOWN THE SYSTEM.

SO, I'M GONNA BRIEFLY JUST, I HAVE A, A MAP HERE TO SHOW YOU WHERE THE, THE DELTA IS NOT MOVING FORWARD.

HERE.

I HIT THE, RIGHT, THERE WE GO.

SORRY.

UH, SORRY.

I HAVE A MAP TO SHOW YOU WHERE THE, THE DELTA IS.

WE'RE GONNA GO OVER SOME OF THE METROPOLITAN'S, UH, BOARD POLICIES JUST REAL QUICKLY, AND THEN WE'LL GET INTO THE, UH, INTO THOSE EFFORTS.

HERE'S AN OVERVIEW.

THIS IS NORTHERN CALIFORNIA WITH THE DELTA IN THE CENTER.

WATER STARTS UP IN THE NORTHERN WATERSHEDS UP THERE AT THE TOP OF THE PICTURE, THE SACRAMENTO RIVER AND FEATHER RIVER.

FROM THERE, WATER COMES DOWN THOSE TWO MAIN RIVERS INTO THE DELTA, AND IT PUTS KIND OF A PLUG OF FRESH WATER, UH, AT, ON THE LEFT SIDE OF THE PICTURE THERE TO HOLD OUT THE OCEAN WATER WANTING TO COME IN.

WATER ALSO COMES UP FROM THE NORTH, UH, UH, GOING NORTH ON THE SAN JOAQUIN RIVER.

AND, AND COMES IN.

MOST OF OUR SUPPLIES COME THROUGH THE CENTER PART OF THE DELTA, AND THERE IS SOME SUPPLIES COMING FROM THE NORTH OR FROM THE SOUTH THERE.

SO, IN EFFECT, THERE'S THREE PATHWAYS TO GET WATER TO THE STATE AND FEDERAL PUMPS AFTER IT GETS IN THE STATE.

AND FEDERAL PUMPS, AS YOU KNOW, IT GOES INTO, UH, A SMALL, UH, RESERVOIR CALLED BETHANY CORE BAY, AND THEN INTO THE CALIFORNIA AQUEDUCT AND INTO THE CENTRAL VALLEY PROJECT.

IN 2016, UH, THE METROPOLITAN BOARD, UH, PURCHASED FIVE ISLANDS IN THE DELTA FOUR IN THE CENTER PART OF THE DELTA.

UH, THIS WAS PART OF THE, UH, CALIFORNIA WATER FIX, UH, EFFORT, UH, THE ALIGNMENT OF THAT WATER FIX AND TO ASSIST IN SOME OF THE TUNNEL PORTAL SITES.

SECONDARILY, IT WAS TO ASSIST IN SOME OF THE, UH, EFFORTS TO REDUCE SUBSIDENCE IN DELTA, UH, AND HABITAT RESTORATION.

IN 2021, THE METROPOLITAN BOARD SOLD CHIPS ISLAND OUT.

THERE'S ON THE LEFT SIDE THE GREEN LITTLE, UH, ISLAND ON THE LEFT SIDE TO THE DEPARTMENT OF WATER RESOURCES FOR HABITAT MITIGATION.

SO OVER THE YEARS, THE APPROACHES TO PROVING THE DELTA HAS CHANGED.

WE, I REFERRED TO THIS AS THE EARLIER APPROACH, THAT IF YOU DID HAVE AN EVENT IN A DELTA WHERE, WHERE THERE WAS A, A, A SEISMIC EVENT, SOME OF THE ISLANDS WENT DOWN.

REMEMBER, THESE ISLANDS ARE ALL BELOW SEA LEVEL.

UH, SOME, SOME ARE 20 FEET, SOME ARE FIVE FEET BELOW SEA LEVEL.

BUT IF YOU HAD AN EVENT WHERE SOME OF THOSE ISLANDS FAILED, THAT OCEAN WATER, UH, CAME IN.

THAT CONCEPT WAS WE WOULD JUST DO THIS EMERGENCY FRESHWATER PATHWAY, AND IT WAS A POST-EVENT REPAIR APPROACH.

UM, AND WE ONLY REPAIRED ONE OF

[00:05:01]

THOSE THREE PATHWAYS.

AGAIN, WE WORKED WITH THE DEPARTMENT OF WATER RESOURCES, THE CORPS OF ENGINEERS, TO PUT ROCK STOCKPILES THROUGHOUT THE DELTA.

AND SOME OF THESE WAREHOUSES, AS YOU'VE SEEN ALONG WITH THAT, AS YOU'LL REMEMBER, IT WAS SOME PEOPLE REFERRED TO IT AS A TWIN TUNNEL PROJECT, ALSO NAMED THE CALIFORNIA WATER FIX PROJECT.

THAT WAS A PROJECT WHERE WE HAD TWO TUNNELS UNDERNEATH THE DELTA.

IT WENT UNDERNEATH THE METROPOLITAN ISLANDS AND WENT DOWN TO THE CLIFTON COURT FORAY TO DELIVER WATER.

SINCE THAT TIME, UH, WHEN GOVERNOR NEWSOM CAME IN, HE DECIDED TO SWITCH THE TIN WIND TUNNELS TO A SINGLE TUNNEL PROJECT.

IT WAS RENAMED THE CALIFORNIA WATER FIX IN 2019.

THE BIGGEST EFFECT OF THAT WAS TWO THINGS.

ONE IS THEY CHANGED THE ALIGNMENT.

THE ALIGNMENT IS NOT UNDER THE, UNDER, THE DELTA IS MOVED OUTSIDE THE DELTA, AND SECONDLY, IT WAS A SMALLER SIZE.

SO NOW, IN EFFECT, 80% OF THE WATER WILL CONTINUE TO GO THROUGH THE MAIN PART OF THE DELTA, EVEN WITH A DELTA CONVEYANCE PROJECT.

SO THE NEED FOR RELIABLE DELTAS IS STILL VERY, VERY IMPORTANT.

OVER THE YEARS, WE'RE, WE'RE CONTINUING TO WORK ON ENHANCEMENTS TO TRY TO SHORE UP THOSE TWO, UH, PATHWAYS.

NOT ALL THREE, BUT AT LEAST TWO OF 'EM.

AND WE'RE DOING, AND THAT'S SOME OF THE EFFORTS THAT I'M GONNA TALK ABOUT, UH, TODAY.

UH, OVERALL, THESE ARE COMPLIMENTARY ACTIONS.

UH, I'VE HEARD SOME PEOPLE REFER TO AS THE DELTA CONVEYANCE PROJECT, AS THE LIFE INSURANCE POLICY AND LIFE INSURANCE PLAN.

IT BASICALLY IS, IS MADE TO DEAL WITH THESE FUTURE, UH, EXTREMES WHERE YOU GET BIG SLUGS OF WATER COMING IN AND BE ABLE TO TAKE THAT FROM NORTH TO SOUTH.

OTHERWISE, IT'S JUST GOING TO GO OUT TO THE OCEAN.

WHEREAS SOME OF THESE ENHANCEMENTS IN THE DELTA OR DAILY WORKHORSE, SOME PEOPLE REFER TO THAT AS THE ENHANCED FRESHWATER PATHWAY, BUT THAT'S VITAL FOR MOVING OUR BASE SUPPLIES.

REMEMBER, THAT'S ABOUT A 30 MILE AREA.

THAT'S ESSENTIAL.

SO HERE'S OUR BOARD POLICIES AS DIRECTOR CORDERO, AND THESE ARE UPDATED IN 2022.

UM, THE BOTTOM LINE IS TO SUPPORT A SUSTAINABLE BAY DELTA, ADDRESS THE RISK ASSOCIATED IN THE DELTA, INCLUDING SEISMIC SEA LEVEL RISE, AND TO INVEST IN ACTIONS THAT PROMOTE, UH, RESILIENCY OF, OF THESE EFFORTS.

SO HERE'S SOME OF THOSE EFFORTS, AND YOU SEE, I THINK I SHOWED YOU THIS PICTURE.

THIS IS WHAT THE DELTA LOOKS LIKE TODAY.

YOU HAVE PEOPLE OUT THERE AND BOATS, FARMERS OUT THERE ON THEIR LANDS AND, AND, AND WORK ON SOME OF THE LEVEES.

UM, WHAT WE TRIED TO DO, AND I I SIMPLIFIED THIS SOMEWHAT, THERE'S A NUMBER OF RISKS IN THE DELTA, BUT THESE ARE THE FOUR MAIN RISKS.

SO FLOOD, SEA LEVEL RISE, ECOSYSTEM, AND SUBSIDE.

SO OUR EFFORTS ARE RELATED TO EACH OF THOSE.

WHAT CAN WE DO TO REDUCE THE RISK, IMPROVE THE RELIABILITY, AND TO ENHANCE SOME OF THE, UH, UM, IT TAKES MONEY TO DO SOME OF THESE THINGS AND ENHANCE THE REVENUE ON SOME OF THIS AS WELL.

OVER THE LAST ALMOST 20 YEARS NOW, WE'VE BEEN WORKING WITH THE STATE AND FEDERAL AGENCIES EXPERTS THROUGHOUT THE WORLD TO DO COMPREHENSIVE SEISMIC AND GEOTECHNICAL RISKS TO UNDERSTAND REALLY WHAT THOSE LEVEES, THOSE LEVEES, WHAT THEY CAN WITHSTAND, AND WHAT IS THE COST TO REPAIR 'EM.

UH, WE'VE BEEN WORKING WITH THE DEPARTMENT OF WATER RESOURCES SO FAR.

WE'VE GOT $90 MILLION OF GRANT MONEY TO IMPROVE, UH, THE LEVIES ON METROPOLITAN ISLANDS.

THIS IS ONE OF THE METROPOLITAN ISLANDS YOU SEE HERE.

WE'VE DONE OVER 15 MILES OF IMPROVEMENTS AND ARE, UM, CONTINUING LOOKING FOR MORE AND MORE GRANTS FROM THE DEPARTMENT TO CONTINUE THAT.

UM, THE, THOSE IMPROVEMENTS ON THOSE EXPERTS TO LOOK AT, UH, HOW CAN WE, UH, UNDERSTAND IF WE HAVE AN ISSUE ON ONE OF THESE ISLANDS.

CURRENTLY, WE PATROL THE ISLANDS EVERY DAY.

SO I HAVE A SUPERINTENDENT WILL GO OUT AND VISUALLY LOOK AT THESE LEVEES, BUT THAT'S ALMOST A POST-EVENT LOOK.

SO IF YOU SEE A CRACK, THEY'LL CALL US.

AND, AND WE'LL GET OUT THERE.

THIS IS ABLE TO, WE'RE ABLE TO SEE STUFF HAPPEN WEEKS, IF NOT MONTHS BEFORE THESE LE LEVEES MOVE SLOWLY.

AND WE'RE TESTING OUT THESE IN A PILOT PROJECT RIGHT NOW.

WE ACTUALLY, UH, WE WERE FORTUITOUS.

THERE WAS AN EARTHQUAKE ABOUT SIX MONTHS AGO UP NEAR THERE.

AND WE HAD THIS IN PLACE AND WE WERE ABLE TO UTILIZE THAT TO FIND OUT WITH IT.

THIS SECTION THAT WE HAD IN IT HAD, YOU KNOW, WE COULD SEE IT MOVE AND WE COULD DETERMINE IF THERE WAS ANY ISSUES.

WAS THERE ANY WATER SEEPAGE UNDERNEATH IT, ALL THAT STUFF.

SO THIS IS A REALLY INTERESTING TECHNOLOGY, NOT JUST FROM THE ABILITY TO UNDERSTAND HOW THE LEVEES ARE MOVING AND GET OUT THERE EARLY, BUT ALSO IT CAN REDUCE OUR COST OF, UH, STAFFING AND INSPECTIONS

[00:10:01]

AS WELL.

WE'VE TAKEN ALL THIS DATA.

WE'RE WORKING WITH THE STATE DEPARTMENT OF WATER RESOURCES AND THE LOCAL RECLAMATION DISTRICTS ON A NEW LEVEE DESIGN.

THE CURRENT DESIGN THAT'S OUT THERE DOES IS NOT SEISMIC RESILIENT AND IS NOT SEA LEVEL RISE RESILIENT.

WE BELIEVE WE HAVE DESIGN THAT CAN MEET THOSE.

IT'S, IT'S NOT, IT'S FAIRLY SIMPLE.

YOU JUST WIDEN THE TOW BERMS. WE, UH, UH, WIDEN THE TOP THERE TO PREVENT SOME EROSION.

UM, AND WE INCREASE THE FREEBOARD FOR SEA LEVEL RISE, ALL THAT.

REMEMBER, THIS IS ON A PEAT SOIL, SO IT'S ALMOST LIKE BEING ON A WATERBED.

SO YOU KIND OF GOTTA BALANCE BOTH SIDES OF THE LEVEE.

BUT WE BELIEVE WITH ALL THESE SCIENTIFIC STUDIES, SEISMIC STUDIES THAT WE CAN, THIS IS A RESILIENT PROOF.

WE DID SOME ANALYSIS BASED ON THE RECENT, UH, LEVY IMPROVEMENTS WE'VE DONE.

AND IF WE JUST IMPROVED THOSE TWO PATHWAYS THAT ARE ESSENTIAL FOR WATER SUPPLY TO THE STATE AND FEDERAL WATER PROJECTS, THE COST OF THAT IS 400 TO $700 MILLION, JUST FOR COMPARISON PURPOSES, ALTHOUGH IT'S NOT NEEDED FOR OUR SUPPLIES.

IF YOU WANTED TO DO THE WHOLE DELTA, THAT'S 500 MILES OF LEVIES IN THE DELTA, IT WOULD BE ABOUT THREE TO $5 BILLION.

WE'RE WORKING RIGHT NOW.

ACTUALLY JUST GOT OUT OF A MEETING YESTERDAY.

THE DEPARTMENT OF WATER RESOURCES HAS GIVEN US A GRANT TO DO A LEVEE SETBACK.

SO IT'S KIND OF A MULTI-BENEFIT PROJECT.

THIS IS AN ANIMATION OF WHAT IT COULD LOOK LIKE OR WILL LOOK LIKE.

WE'RE GONNA START THE PROJECT, HOPEFULLY THE SUMMERTIME.

IT'S A SHORT SEGMENT ON A LEVEE, BUT IT, IT, IT SHOWS HOW WE CAN IMPROVE HABITAT AND IMPROVE THE LEVEES.

AT THE SAME TIME.

IT'S JUST ANOTHER CROSS-SECTIONAL VIEW OF WHAT IT WILL EVENTUALLY LOOK LIKE.

WE'RE ALSO WORKING WITH THE STATE WATER BOARD TO LOOK AT THE ACCURACY OF OUR DIVERSIONS ONTO THE ISLANDS.

UH, THIS WAS A REQUIREMENT UNDER SENATE BILL 88 LOOKING AT, WE'VE INSTALLED PHYSICAL METERS ON ALL OF THE FOUR ISLANDS DIVERSIONS.

THERE'S ABOUT 20 DIVERSIONS PER ISLAND, AND WE'RE WORKING WITH THEM, UH, WITH THE COALITION OF, UH, DELTA LANDOWNERS ON THIS OPEN ET IT'S BASICALLY A SATELLITE THAT GOES OVER AND TELLS YOU THE EVARO TRANSPIRATION OF YOUR PLANTS.

ALL THIS DATA GOES INTO THE STATE BOARD 'CAUSE WE DO HAVE A WATER, RIGHT? AND WE'RE TRYING TO LOOK AT THE ACCURACY OF THIS.

POTENTIALLY IN THE FUTURE, IF WE DO FOLLOWING THAT, WE COULD FOLLOW THE LAND DURING CRITICAL PERIODS AND, AND GIVE THAT WATER BACK TO FISHERY, UM, INTEREST OR, UH, OR PRODUCE SOME REVENUE OFF OF IT AS WELL.

UH, ONE OF THE RECENT BIG ISSUES IS NUTRI.

YOU CAN SEE UP IN THE UPPER RIGHT HAND CORNER, UH, THOSE ARE PRODUCE A LOT MORE OFFSPRING THAN, UH, BEAVERS DO.

SO IT'S A BIG NUISANCE IN THE DELTA.

WE HAVE NOT DETECTED ANY ON OUR ISLANDS, BUT WE DO HAVE SOME STATIONS TO, TO SEE IF THEY'RE, THEY'RE THERE.

AND THEN, AS YOU KNOW, THE GOLDEN MUSSEL, THAT'S ANOTHER ONE OF THOSE THREE MUSCLES THAT YOU'VE, YOU'VE HEARD ABOUT.

THIS IS THE LATEST HERE, AND WE'RE WORKING INTERNALLY AND WITH THE STATE AND FEDERAL INTEREST.

THIS IS JUST ONE OF OUR STAFF GOING OUT TO THE END OF ONE OF OUR DOCKS.

HE PUT A CINDER BLOCK AT THE END OF THE DOCK, AND HE IS LOOKING AT IT TO SEE IF THERE'S ANY, UH, MUSCLES ATTACHED TO IT.

SO FAR THERE HASN'T BEEN, BUT WE EXPECT IT TO BE 'CAUSE IT'S, WE SEE IT COMING THROUGHOUT THE SYSTEM AND THIS, LOOKING AT WHAT TYPES OF TECHNOLOGY CAN WE, UH, IMPLEMENT OUT THERE.

SO NOT ONLY ARE WE LOOKING AT FROM A METROPOLITAN STANDPOINT, HOW WOULD IT AFFECT THE STATE WATER PROJECT AND IT EVENTUALLY GET DOWN THROUGHOUT THE SYSTEM, BUT ALSO HOW DOES IT AFFECT EVEN SOME OF THE LOCAL AGRICULTURAL DIVERSIONS.

SO ALL THIS TAKES MONEY, RIGHT.

AND WE'RE GETTING A PRETTY GOOD SENSE.

WE'RE GOOD.

GOOD.

WE'RE, WE'RE GETTING GOOD ON THE GRANT SIDE OF IT, BUT ONE OF THE THINGS OUR BOARD ASKS US TO LOOK INTO IS WHAT OTHER REVENUES, AND HERE'S ONE OF THESE OTHER REVENUE SOURCES.

SO WHAT THIS PROJECT IS, IS YOU TAKE CO2, THE OFF GAS OF INDUSTRIAL PROCESSES, AND YOU STORE IT UNDERNEATH THE GROUND.

IT JUST SO HAPPENS TO BE THAT THE ISLANDS AT METROPOLITAN OWNS IS ONE OF THE BEST PLACES IN CALIFORNIA TO DO THAT.

WE HAVE THREE ROCK FORMATIONS SEPARATED BY 2000 FEET OF DIRT THAT WE CAN STORE OVER OF 341 MILLION METRIC TONS.

THAT WAS ANALYSIS DONE BY LAWRENCE LIVERMORE LAB.

THEY DID THAT ANALYSIS FOR US.

AND THEN THEM WORKING WITH THE DELTA CONSERVANCY AND A FINANCIAL EXPERT SAID THAT IF YOU DID A MEDIUM SIZED PROJECT, YOU JUST STORED 1 MILLION METRIC TON PER YEAR UNDER METROPOLITAN AND SILENCE, IT COULD MAKE UP TO $250 MILLION PER YEAR.

THAT NUMBER IS, IS PRETTY LARGE TO ME.

SO I'M JUST GONNA SAY IF WE CAN DO 10%

[00:15:01]

IT, YOU KNOW, FROM A, FROM A STANDPOINT OF PAYING FOR THOSE SILENCE, PAYING FOR SOME OF THE LEVY IMPROVEMENTS UP IN THE DELTA.

THIS IS A, A CONCEPT UNDER DISCUSSION RIGHT NOW, AND WE'RE GONNA BE SLOWLY BRINGING IT TO THE METROPOLITAN BOARD AS WE GET MORE AND MORE INFORMATION.

AND WE WANNA DO THIS SLOW BECAUSE THIS IS A, THIS IS A BIG EFFORT.

UM, I DO HAVE A VIDEO HERE, BUT I'M NOT SURE IT'S GONNA WORK.

AND IF IT DOESN'T, I'LL, I'LL JUST GO THROUGH IT.

UH, I WAS UP ON OUR ISLANDS, UH, YESTERDAY.

UM, THIS IS ONE OF THE PONDS ON THE ISLANDS, AND WE'RE RIGHT NOW, UH, CONCEPT IS TO PRODUCE, UH, FISH NATIVE SPECIES UP THERE.

UM, WE'RE ACTUALLY USING A NUMBER OF THE PONDS ON OUR ISLANDS, AND WE'RE DOING RESEARCH RIGHT NOW IN PILOT PROJECTS.

UH, BUT THE GOAL IS TO EVENTUALLY GET TO AN AGENCY, MOU, WHICH WE'RE VERY CLOSE.

WE SHOULD BE, UH, WITHIN WEEKS OF SIGNING THAT, AND THEN EVENTUALLY FULL PRODUCTION.

SO THE GOAL HERE IS CAN WE PRODUCE DELTA SMT ON OUR ISLAND? WE ACTUALLY STARTED AT 500 DELTA SMELT.

WE SHOWED THAT TO THE BOARD A COUPLE YEARS AGO.

MORE RECENTLY.

WE'RE UP TO IN THE THOUSANDS OF DELTA SMELT ON A RESEARCH TEST RIGHT NOW.

UM, WHY IS IT IMPORTANT? BECAUSE THE STATE AND FEDERAL WATER PROJECTS ARE REGULATED BY DELTA SMELL UPWARDS OF 400,000 ACRE FEET PER YEAR IF YOU, THAT COMES OUT TO OVER A MILLION HOUSEHOLDS OF WATER USE FOR OVER A MILLION HOUSEHOLDS.

SO IF WE CAN PROVIDE SOME FLEXIBILITY BY PRODUCING MORE DELTA SMELL IN THOSE NUMBERS, WE CAN HOPEFULLY HAVE POTENTIALLY A WATER SUPPLY BENEFIT FROM DOING THIS EFFORT.

I'LL SEE IF THIS VIDEO WORKS, IF NOT SOUND STILL.

SO THIS IS JUST ONE OF THE EFFORTS, UH, OUT THERE.

I'LL JUST GO THROUGH.

THEY'RE STARTING WITH THESE SMALL CONTAINERS HERE.

THIS IS FOLKS FROM, UH, FROM, UH, UC, DAVIS, AND OUR STAFF THAT ARE OUT THERE.

UH, YEAH, THERE WE GO.

THEY'RE OUT THERE JUST DOING SOME RESEARCH ON THE PROJECT IN THE LABS.

THIS IS DELTA MT.

I WON'T GO THROUGH IT ANY, UH, ANYMORE, BUT THEY'RE ACTUALLY, IT'S, IT IS REALLY INTERESTING TO GO OUT THERE AND THEY'RE, THEY'RE STARTING, UH, THIS PROCESS AND UNDERSTANDING THE SPECIES AND WHAT CAN, HOW CAN SURVIVE.

UH, THESE ARE SOME SMALL PONDS, QUARTER ACRE PONDS THAT WE DEVELOPED.

THEY'RE CIRCLED BY THESE TULEY.

AGAIN, WE STARTED OFF BY PUTTING THESE DELTA SMELLED IN THESE SMALL CONTAINERS.

YOU CAN SEE OFF TO THE LEFT, TESTING THEM, SEE HOW MANY SURVIVE.

WE HAD OVER 90% SURVIVABILITY NOW TO THESE LARGER THINGS.

AND NOW TO THE OPEN PONDS.

THIS WAS JUST A COUPLE WEEKS AGO.

WE'RE ACTUALLY PUTTING THESE FISH INTO THOSE LARGER QUARTER ACRE PONDS.

REMEMBER, WE HAVE EIGHT ACRE PONDS, 20 ACRE PONDS ON THESE ISLANDS.

SO YOU COULD REALLY PRODUCE A LOT OF SMELL, BUT WE'RE NOT THERE YET.

WE'RE, WE'RE MORE OF THE TESTING PHASE.

IN ADDITION TO THAT, IF YOU PUT FOOD, IF YOU PUT FISH OUT THERE, YOU GOTTA PUT FOOD OUT THERE.

SO WE'RE TESTING THESE FLOATING WETLANDS.

WE'RE GONNA ACTUALLY GIVE A DIRECTOR TOUR, UH, THIS COMING NEXT WEEK.

AND, UH, I ASKED MY STAFF TO SHOW HOW MUCH FOOD YOU CAN PRODUCE FROM THESE FLOATING WETLANDS JUST VERSUS REGULAR WATER.

SO THEY'RE GONNA, THEY'RE GONNA KIND HAVE A SHOW AND TELL OUT THERE HOW YOU'LL, YOU'LL BE ABLE TO DO THAT.

IN ADDITION, WE GOT A $20.9 MILLION GRANT FROM THE DELTA CONSERVANCY TO REVERSE SUBSIDENCE ON ONE OF OUR ISLANDS CALLED WEB TRACK.

THE CONCEPT THERE IS, IS TO DO WETLANDS AND RICE FARMING.

RICE FARMING IS TO HELP OUT ON THE REVENUE SIDE AS WELL.

SO, AGAIN, STOP SUBSIDENCE CREATED HABITAT, GENERATE REVENUE, AND REDUCE DIVERSIONS DURING, UH, CRITICAL PERIODS.

CURRENTLY, MOST OF THE DELTA, A LARGE PART OF THE DELTA IS CORN FARM.

AND THAT'S WHAT'S HAPPENING, IS IT'S REDUCING THE LEVEL OF THE LAND.

THIS IS PEAT SOILS, THE STUFF YOU GET DOWN AT LOWE'S AND HOME DEPOT AND ABOUT AN INCH OF THAT.

SO GOES AWAY EVERY YEAR.

SO YOU CAN IMAGINE, EVEN SINCE METROPOLITAN HAS OWNED THE ISLANDS, 2017, YOU KNOW, WE, WE HAVE A SIGNIFICANT PORTION OF THAT LAND HAS GONE DOWN.

SO HOW CAN WE STOP THAT? THIS IS ONE AVENUE TO KEEP THE SOIL WET THROUGH STOPPING CORN FARMING TO SOME WET CROPPING, UH, SUCH AS RICE.

RICE WILL ALSO GENERATE MORE REVENUE AS WELL.

AND IT'LL HELP FROM AN ENGINEERING STANDPOINT, REDUCE THE PRESSURE ON THE LEVEES.

UM, THE ECOSYSTEM BENEFITS, WE'RE WORKING TO DIVERT THE WATER DURING THE NON FISH MIGRATION PERIODS AND

[00:20:01]

ALSO HELP, UH, REDUCE SOME OF THAT, UH, WATER SAVINGS.

AND IT, THERE'S ANOTHER VIDEO, BUT WE'RE GONNA SKIP IT HERE.

UM, THAT, THAT GOES THROUGH THAT WHOLE PROCESS.

IF YOU HAVE A CHANCE, IT'S ONLY, I, I'M SURE THEY'LL POST, IT'S ONLY ABOUT A MINUTE, BUT IT SHOWS THE BENEFITS OF THE PROJECT AND, UH, WHERE IT'S GOING.

SO ALL THIS IS TAKES PARTNERSHIPS THROUGHOUT THE SYSTEM.

IN FACT, IF YOU'RE, THAT'S WHAT I SAW YESTERDAY OUT THERE.

YOU'RE A BIRD PERSON.

IT'S REALLY EXCITING.

I'M AN ENGINEER.

I'M NOT REALLY A BIRD PERSON, BUT IT'S PRETTY EXCITING 'CAUSE THEY'RE REALLY, REALLY LOUD.

I MEAN, YOU ALMOST HAVE TO YELL AT THE PERSON YOU'RE TALKING TO WHEN THEY'RE, WHEN THEY'RE OUT THERE FLYING.

BUT YOU CAN SEE SOME OF THESE AGENCIES.

THIS IS NOT METROPOLITAN ALONE.

IT REALLY TAKES ALL THESE AGENCIES WORKING TOGETHER TO DO THIS AND, AND TO MAKE THESE THINGS WORK OUT THERE.

UM, AGAIN, THESE ARE THE RESILIENCY INITIATIVES.

MODERN LEVIES, NEW, UH, REALTIME, UH, MONITORING, UH, TO REDUCE, UH, FLOOD AND SEISMIC RISKS, DELTA SUPPLEMENTATION TO HELP OUT ON THE FISHERY AND THE RESTORATION AND SUBSIDE CONTROL AS WE JUST SPOKE THERE, UH, PRESIDENT SCOTT, I'D BE HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU, RANDALL NUN ECK, IT'S ALWAYS GREAT TO HAVE YOU HERE AND, AND TO HEAR, UH, ALL THE KNOWLEDGE THAT YOU HAVE AND ALL THE, ALL THE THINGS THAT ARE GOING ON.

UM, ARE THERE ANY PUBLIC COMMENTS, ANY COMMISSIONER COMMENTS? THAT WAS GREAT, RANDALL.

THANK YOU SO MUCH.

UM, I, I EVEN LEARNED SOME, SOME THINGS EVEN THOUGH I, I HEAR THIS PROBABLY MUCH MORE THAN ANYBODY ON, ON THIS SIDE.

UM, SO THANK YOU FOR THAT.

I, I GREATLY APPRECIATE IT.

IT, IT MAKES ME REALLY PROUD OF OUR, OF OUR, OF OUR ORGAN, OF THE AGENCY THAT I THINK WE HAVE.

WE ARE VERY COMPREHENSIVE IN IN THE WORK THAT WE DO OUT THERE.

WE HAVE SUCH GREAT STAFF.

AND IF YOU LOOK AT THE KEY RISK MITIGATION EFFORTS, I REMEMBER A, A BOARD MEMBER WHO'S NO LONGER AROUND.

UM, SHE'S OFF NOW, BUT SHE SAID, YOU KNOW, YOU EITHER TALKING ABOUT THE DELTA, SHE SAID, YOU EITHER GET PEOPLE FROM FACT OR FEAR IN A WAY.

I THINK YOU GET 'EM FROM BOTH.

YEAH.

AND IT'S NOT TRYING TO SCARE PEOPLE, BUT WHEN YOU LOOK AT THINGS LIKE FLOOD AND SEISMIC, YOU KNOW, SEA LEVEL RISE, UH, YOU KNOW, SUBSIDENCE, THOSE ARE BIG ISSUES.

AND SO THERE'S FACTS AND THERE'S FEAR, WHICH PUT THOSE TOGETHER.

AND I THINK THERE'S A REALLY GOOD REASON TO CONTINUE TO DO WHAT WE DO.

AND I KNOW THIS BOARD HAS BEEN VERY SUPPORTIVE OF THAT.

UM, I KNOW WE HAVE OPPONENTS.

I KNOW WE HAVE PEOPLE THAT ARE, THAT ARE NOT ON BOARD ON THIS.

WE'VE HEARD THEM AT METROPOLITAN.

BUT I HAVE TO SAY THAT I THINK METROPOLITAN'S DONE A REALLY GOOD JOB OF TAKING INTO CONSIDERATION, UM, THE, YOU KNOW, WILDLIFE AND FISH, UM, ENVIRONMENT, THE TRIBAL INTERESTS, AND AS WELL AS, UH, THE ENVIRONMENT AND DISADVANTAGED COMMUNITIES AS WELL.

SO, UH, I'M VERY, VERY PROUD OF THE FACT THAT OUR STAFF HAS DONE THAT.

I WANNA THANK YOU FOR YOUR GOOD WORK.

UM, THIS WAS A GREAT VIDEO.

GAVE ME A GREAT PRESENTATION.

APPRECIATE THE OPPORTUNITY.

THANK YOU FOR THAT.

I ECHO ALL THOSE REMARKS AND I UNDERSTAND, UH, WELL THIS IS, UH, NUMBER TWO OF THREE PRESENTATIONS, UH, THAT, THAT YOU'VE MADE FOR US.

I UNDERSTAND YOU'RE NOT GONNA BE HERE FOR THE THIRD, UH, SO SORRY TO HEAR THAT.

WE'LL MISS YOU.

BUT THANK YOU SO MUCH.

THIS HAS BEEN VERY EDUCATIONAL.

IT'S, IT'S GREAT FOR US TO HEAR THIS.

UH, SO WE HAVE A, UH, MOTION AND A SECOND TO RECEIVE AND FILE ALL THOSE IN FAVOR.

PLEASE SAY AYE.

THREE, UH, AUTHORIZE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO AMEND AGREEMENT UT 1544 WITH PARTNERS FOR GOOD PUBLIC.

ANY OPPOSED? THANK YOU.

UH, AGENDA ITEM NUMBER

[3. 26-54630 Recommendation to authorize the General Manager to execute all documents necessary to amend Agreement UT-1544 with Partners for Public Good for Phase II of the Procurement Harmonization initiative, to increase the contract amount by $165,000, for a revised total amount not to exceed $240,000, and extend the term by six months. Suggested Action: Approve recommendation. ]

SAY IT AGAIN, PARTNERS FOR PUBLIC GOOD FOR PHASE TWO OF THE PROCURE INITIATIVE.

UH, IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A SECOND? SECOND.

UH, AND COLIN, STEPHANIE , PLEASE FOR THE PRESENTATION.

GOOD MORNING COMMISSIONERS.

I AM HERE TO PRESENT A TOPIC OF IT'S EVERYONE'S FAVORITE PROCESS PROCUREMENT.

UM, SO A COUPLE OF MONTHS AGO WE BROUGHT TO YOU, UM, AN AGREEMENT WITH PARTNERS FOR PUBLIC GOOD.

I'M GONNA GIVE YOU A BRIEF BACKGROUND ON, UM, ON EVERYTHING RELATED TO PPG.

UM, IN 2025, UH, LONG BEACH PUBLIC UTILITIES PARTNERED WITH PPG PARTNERS FOR PUBLIC GOOD TO EVALUATE AND IDENT IDENTIFY IMPROVEMENTS IN DEPARTMENTAL PROCUREMENT PRACTICES.

AND THE REASON WHY WE, UH, MOVED FORWARD WITH PPG WAS BECAUSE, UH, THE FOLKS ON THAT TEAM HAD PREVIOUSLY WORKED ON THE CITY'S EXTREME PROCUREMENT MAKEOVER.

SO THEY'RE ALREADY FAMILIAR WITH OUR CITY SYSTEMS AND ERP AND, UH, THE CITY'S

[00:25:01]

ORIGINAL POLICIES THAT WERE IN PLACE.

AND, UH, THOSE FOLKS CAME FROM THE HARVARD KENNEDY SCHOOL'S, UH, GOVERNMENT PERFORMANCE LAB.

AND THAT WAS PRETTY RECENT.

I THINK IT ENDED JUST A FEW YEARS AGO.

SO THEY, THEY'RE FREED UP NOW, AND THEY WERE IN AN INCUBATOR IN, UM, THE HARVARD KENNEDY BUSINESS SCHOOL.

AND THEN THEY, UM, ARE NOW A NONPROFIT, UM, THAT HELPS MULTIPLE AGENCIES WHEN IT COMES TO PROCUREMENT, COMPETITIVE PROCUREMENT, STRATEGIC PROCUREMENT, THE GOAL WAS TO ASSESS THE POLICIES, PROCESSES, AND GOVERNANCE FOLLOWING THE MERGER.

AND SO, UH, IT'S BROKEN UP IN TWO PHASES, BUT THAT WASN'T THE ORIGINAL PLAN.

SO WHAT WE IDENTIFIED WAS IN THIS PHASE, THIS, IT, IT BECAME MORE OF A DISCOVERY.

THE, THERE WAS AN ASSESSMENT THAT IDENTIFIED SEVERAL OPPORTUNITIES TO STRENGTHEN OUR PROCUREMENT OPERATIONS.

AS YOU CAN SEE IN THE IMAGES HERE, UH, THEY CAME, THEY COME FROM DIFFERENT PARTS OF, OF THE COUNTRY, UM, AND THEY COME IN PERSON.

THIS IS AT OUR GAS CAMPUS, AND WE DID A PROCESS MAPPING WORKSHOP.

IT INVOLVED MANY FOLKS THROUGHOUT THE DEPARTMENT AS WELL AS OUR, UH, CITY ATTORNEY, MARSHA YDA, WHO PARTICIPATED IN THE PROCESS.

AND SO THIS IS ALL THE WORK THAT HAPPENS BEHIND THE SCENES.

WHEN WE COME TO YOU TO, TO THE BOARD TO APPROVE ANY TYPE OF PROCUREMENT, UM, AGREEMENT.

A LOT OF WHAT WE DO, YOU GUYS DON'T GET TO SEE.

AND, UM, IT'S REALLY IMPORTANT FOR ALL OF US TO, TO BE CONFIDENT IN, IN HOW WE PROCURE IN, UH, ENGAGING WITH VENDORS AND ENSURING WE HAVE THAT TRANSPARENCY.

BECAUSE ONE OF THE THINGS I ALWAYS PREACH IS THE FINANCIAL STEWARDSHIP OF RATE PAYER DOLLARS.

SO IT'S REALLY IMPORTANT THAT WE'RE GOING THROUGH, UM, THE COMPETITIVE PROCUREMENT PROCESS IN A VERY STRATEGIC AND THOUGHTFUL WAY.

SO IN, IN THIS, UM, PROCESS MAPPING WORKSHOP, YOU'RE ABLE TO CLARIFY PROCUREMENT, GOVERNANCE AND AUTHORITY, REDUCE DUPLICATIVE WORKFLOWS ACROSS DIVISIONS, STANDARDIZED PROCUREMENT TOOLS AND TEMPLATES, IMPROVE COORDINATION WITH CITY PURCHASING, STRENGTHEN STRATEGIC PROCUREMENT PLANNING.

AND SO THE OUTCOME OF THAT WAS, AS YOU CAN SEE, ALL OF US WERE IN THE ROOM.

IT WAS, UH, TWO DAYS, ABOUT TWO DAYS THAT WE WORKED TOGETHER AND WE ESTABLISHED, UH, CROSS-DEPARTMENT ALIGNMENT AND READINESS TO IMPLEMENT IMPROVEMENT.

SO WHEN WE WALKED INTO THE ROOM, THERE WAS A LOT OF SKEPTICISM AND UNCERTAINTY OF WHERE THIS WOULD GO.

AND ON THE LAST DAY, I FELT, AND I THINK A LOT OF OTHER FOLKS, UM, WHO WERE INVOLVED, THESE WERE THOSE THAT ARE MOST INVOLVED IN PROCUREMENT, FELT A SENSE OF REVITALIZED ENERGY TO MOVE TOWARDS A COMMON GOAL.

SO WHAT WE'RE PROPOSING TODAY IS TO, UM, HAVE A PHASE TWO WHERE WE IMPLEMENT, UH, ITEMS FROM THE DISCOVERY THAT WE IDENTIFIED.

UH, PPG WOULD BE ABLE TO HELP US ESTABLISH A STRATEGIC PROCUREMENT FUNCTION RATHER THAN BEING REACTIVE.

UH, WE CAN BE MORE PROACTIVE IN LONG-TERM PLANNING WITH, UM, CONTRACTUAL AGREEMENTS.

AND THIS WOULD HELP US DEFINE GOVERNMENT GOVERNANCE STRUCTURE AND OPERATING MODEL.

UM, ALSO WE WOULD, UH, DELIVER TARGETED PROCUREMENT IMPROVEMENTS SUCH AS STREAMLINING THE PROCESS AND AS WELL AS THE PROCUREMENT TOOLS IMPLEMENT PRIORITY IMPROVEMENTS THROUGH DESIGN SPRINTS AND BUILDING INTERNAL CAPACITY, WHICH WOULD, UH, INVOLVING EQUIPPING STAFF WITH TOOLS IN THE FRAMEWORK TO SUSTAIN IMPROVEMENTS IN THE LONG TERM.

I, I WANNA TELL A LITTLE FUNNY STORY.

IT'S NOT HERE IN MY SLIDES, BUT I WAS TALKING TO SOME FOLKS WHO DO THE PROCUREMENT, WHICH IS MORE ADMINISTRATIVE FUNCTIONS, AND I ASKED A QUESTION, WHO TAUGHT YOU HOW TO DO PROCUREMENT? AND EVERY PERSON SAID SOMEONE DIFFERENT, WHETHER THAT PERSON IS NO LONGER HERE OR THEY WERE SELF-TAUGHT.

AND SO IT, IT WAS VERY INTERESTING BECAUSE IT'S JUST ONE OF THOSE THINGS WHERE, UH, THEN YOU HAVE A DIVERSITY OF THOUGHT.

AND SO COMING TOGETHER AND GETTING ALIGNMENT WAS, WAS VERY, UM, TELLING OF WHERE WE COULD POTENTIALLY SEE OURSELVES IN THE FUTURE AND GIVING, UH, STAFF WHAT THEY NEED TO GET THEIR JOBS DONE.

AND SO IN THIS IMAGE, WHAT WE'RE SHOWING IS THE INVOLVEMENT ALL HANDS ON DECK.

UM, WE HAVE FOLKS IN OPERATIONS WHO HAVE NEEDS AND THEY GO TO OUR ADMIN STAFF AND TELL ADMIN STAFF WE HAVE A NEED.

AND THEN ADMIN STAFF GOES TO FINANCE AND SAYS, DO WE HAVE THE BUDGET? UM, AND THEN WE GO, YOU KNOW, WORK WITH A VENDOR AND, YOU KNOW, WE'LL GO THROUGH THE PROCUREMENT PROCESS.

AND, AND THE LAST PART OF THAT IS WORKING WITH MARSHA.

AND, UM, AND SO IT'S REALLY IMPORTANT THAT WE HAVE EVERYONE'S BUY-IN AND INVOLVEMENT IN THIS.

SO, UM, THIS, THIS STRATEGIC ALIGNMENT IN WOULD PROMOTE SUSTAINABLE FINANCIAL MANAGEMENT, OPERATIONAL EFFICIENCY, IMPROVED PROCUREMENT ACCOUNTABILITY, AND STRONGER ORGANIZATIONAL RESILIENCE, WHICH WOULD ALL CONTRIBUTE TOWARDS, UM, A BALANCED BUDGET.

WITH THAT, UM, I RECOMMEND THAT THE, UH, WE AUTHORIZE THE, I GUESS, ASSISTANT GENERAL MANAGER TODAY, UH, TO EXECUTE

[00:30:01]

ALL DOCUMENTS NECESSARY TO AMEND AGREEMENT UT 1544 WITH PARTNERS FOR PUBLIC GOOD FOR PHASE TWO OF THE PROCUREMENT HARMONIZATION INITIATIVE, INCREASE THE CONTRACT AMOUNT BY $165,000 FOR A REVISED TOTAL AMOUNT NOT TO EXCEED $240,000 AND EXTEND THE TERM BY SIX MONTHS.

HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU, STEPHANIE.

UH, ARE THERE ANY PUBLIC COMMENTS? UH, ANY COMMISSIONER COMMENTS? THANK YOU FOR THE PRESENTATION.

I, I TOTALLY SUPPORT THIS, BUT WHEN YOU'RE DONE AND, AND I DON'T KNOW WHERE DONE IS, AIR QUOTES I GUESS, BUT, UM, HOW DO YOU MEASURE THE SUCCESS OF THIS PROGRAM AND, AND IMPLEMENTING THESE TYPE OF CHANGES HERE? I THINK THAT'S A REALLY GREAT QUESTION.

UM, I THINK IT'S MULTIPLE THINGS.

WE CAN MEASURE IT BY WHETHER WE FIND SAVINGS, POTENTIALLY IN IDENTIFYING, UM, IMPROVEMENTS IN CONTRACT RENEGOTIATIONS.

I THINK IT'S ALSO MEASURING, UM, QUANTITIES IN, IN THE VOLUME OF TRANSACTIONS THAT WE HAVE FROM THE FINANCIAL STANDPOINT.

BUT I THINK THE THING THAT WE CAN'T MEASURE IN DATA, BUT WE CAN MEASURE IN THE QUALITY IS, UM, THE ABILITY TO WORK TOGETHER.

SO FEELING LIKE A SENSE OF SUPPORT AND, UH, COLLABORATION.

I GUESS YOU MEASURE THAT WITH HAPPINESS.

, GREAT RESPONSE.

ANY OTHER COMMENTS? STEPHANIE, THANK YOU.

UM, THE CROSS DEPARTMENT ALIGNMENT, I THINK STANDS OUT VERY CLEARLY, SO THANK YOU FOR THAT GOOD WORK.

I, I THINK IT'S EXCELLENT AND I SUPPORT THIS AS WELL.

GOOD JOB.

UH, I, I'LL JUST SAY I SHARE YOUR ENTHUSIASM AND EXCITEMENT FOR PROCUREMENT.

UH, IT'S, IT'S NOT SOMETHING THAT MOST PEOPLE, I THINK, SHARE ENTHUSIASTIC FEELINGS FOR OR HAPPINESS FOR.

UM, BUT, UH, IT, IT'S SUPER IMPORTANT.

IT'S ONE OF THOSE FOUNDATIONAL ITEMS THAT ALLOWS, UH, A BUSINESS LIKE THIS, UH, AN ENTERPRISE LIKE THIS TO GET STUFF DONE.

'CAUSE IF YOU DON'T HAVE THE STUFF YOU NEED TO BUILD THE STUFF THAT YOU'RE TRYING TO BUILD TO MAKE IT BETTER, YOU JUST, IT'S NOT GONNA GO ANYWHERE.

SO A HUNDRED PERCENT.

UM, THIS IS LONG OVERDUE AND, AND HAPPY TO HEAR THAT WE'RE FOLLOWING A MODEL THAT IS, UH, WORKING FOR THE CITY OF LONG BEACH AND, AND, UH, TOTALLY IN FAVOR OF IT.

SO THANK YOU.

SO SEEING NO MORE COMMENTS, UH, WE HAVE A MOTION AND A SECOND.

ALL THOSE IN FAVOR, PLEASE SAY AYE.

ADOPT SPECIFICATIONS NUMBER UD 2 6 3 0 6, AN AWARD CONTRACT TO FAR WEST CORROSION CONTROL COMPANY TO FURNISH AND DELIVER CORROSION CONTROL AND CATHODIC PROTECTION SUPPLIES AND SOLUTIONS FOR ONGOING MAINTENANCE AND SUPPORT OF THE LONG BEACH PUBLIC UTILITIES DEPARTMENTS NATURAL GAS PIPELINES.

ANY OPPOSED? THANK YOU.

MOTION PASSES.

MOVING ON.

AGENDA ITEM NUMBER FOUR,

[4. 26-54631 Recommendation to adopt Specifications No. UD-26-306 and award a contract to Farwest Corrosion Control Company to furnish and deliver Corrosion Control and Cathodic Protection Supplies and Solutions for ongoing maintenance and support of the Long Beach Public Utilities Department’s natural gas pipelines in an annual amount not to exceed $200,000 for a period of one year, with the option to renew for two additional one-year periods, subject to a maximum annual increase of 5 (five) percent, for a not-to-exceed amount of $210,000 for the first renewal period and a not-to-exceed amount of $220,500 for the second renewal period, and authorize the General Manager to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. Suggested Action: Approve recommendation. ]

IN ORDER TO HEAR THE PRESENTATION, MAY I HAVE A MOTION PLEASE? THANK YOU.

GOOD MORNING COMMISSIONERS.

UM, HERE TO PRESENT, UH, AGENDA ITEM U 26 3 6.

GUESS WE'LL CONTINUE THE PROCUREMENT DISCUSSION AS THIS KIND OF RELATES TO WHAT, UH, STEPHANIE WAS TALKING ABOUT.

SO THIS, UH, CONTRACTS TO FURNISH AND DELIVER CORROSION CONTROL AND CLOUD PROTECTION SUPPLIES AND SOLUTIONS.

THIS NEXT SLIDE TALKS ABOUT, UM, LOW BACKGROUND ON OUR GAS INFRASTRUCTURE.

OUR DEPARTMENT OPERATES OVER NINE MILES OF ACTIVE NATURAL GAS SEAL PIPELINE INSTALLATIONS DATING AS FAR AS BACK AS THE 1940S, OVER HALF OF THESE ACTIVE PIPELINES WERE INSTALLED OVER 50 YEARS AGO, AND MANY OF OUR RECENT EXCAVATIONS SHOW THAT PIPE IS IN PRETTY GOOD CONDITION.

TO YOUR RIGHT THERE, IT'S, UH, EXCAVATION PERFORMED IN 2025.

AS YOU CAN SEE, WHEN WE EXPOSED THE BARE PIPE, THERE'S VERY LITTLE SIGN OF, UH, RUSTS OR PITTING, WHICH INDICATES THAT, UH, PIPE WAS INSTALLED IN PRETTY GOOD UTILIZING QUALITY, CORROSION PROTECTION.

THAT'S NOT TO SAY THAT ALL THE PIPE WE HAVE IS IN THIS GOOD CONDITION, AND A LOT OF IT DEPENDS ON, UM, CONSTRUCTION METHODS AND TYPES OF PRODUCTS WE USE.

BACK THEN, THE LIFE OF THE SEAL PIPELINES REALLY DEPENDENT ON THE SYSTEM WE EMPLOY, WHETHER THAT'S PASSIVE ACTIVE, UH, SACRIFICIAL SYSTEMS FOR OUR PIPELINE.

TALK MORE ABOUT THESE SYSTEMS, UH, FOR PROTECTING THE PIPE.

WE HAVE TWO, AS I MENTIONED, A PASSIVE, WHICH INCLUDES, UH, WRAP PRODUCT AND COATINGS.

IN THE MIDDLE, THERE'S THE, UH, BRIDGE CROSSING UTILIZING A PIPE WRAP TO PROTECT OUR PIPELINE.

AND TO THE RIGHT ON THE TOP

[00:35:01]

AND BOTTOM, THE BROWN COLOR, THAT'S OUR EPOXY COATING IN THE MIDDLE.

AS A PLASTIC POLY WRAPPED THAT TYPICALLY FOR A SMALL PIECE OF STEEL AND WELL JOINTS, WE FOUND THAT MO UH, FOR THE MOST PART, A LOT OF THESE PRODUCTS ARE PERFORMING WELL IN TERMS OF PROTECTING OUR SHIP PIPELINE.

THE SECOND PART OF THE SYSTEM IS AN ACTIVE SYSTEM, UH, WHICH OF ANOS AND RECTIFIER ANOS, THAT'S THE PICTURE IN THE MIDDLE WITH THE WIRES TYPICALLY CALL SACRIFICIAL ANOS.

UH, WHICH MEANS THAT THESE ANOS, UM, ERODES IN LU SEAL PIPELINE, WHICH ALLOWS OUR PIPELINE TO CONTINUE TO REMAIN ITS, UH, STRUCTURAL INTEGRITY.

AND THE OTHER SYSTEM IS A RECTIFIER, WHICH IS MOST OF OUR, UH, SYSTEM ARE PROTECTED BY RECTIFIER.

IT'S IN SIMPLE TERMINOLOGY.

SOMEONE MANY YEARS AGO FIGURED OUT THAT CORROSION IS A ELECTROCHEMICAL PROCESS, AND THEY FIGURED OUT THAT IF YOU APPLY CERTAIN ELECTRON CURRENT TO IT, IT WOULD SIGNIFICANTLY REDUCE THE CORROSION RATES.

AND THAT BOX RIGHT THERE IS BASICALLY, UH, DOES ALL THAT AND WE CONNECT IT TO OUR SYSTEM IN ORDER TO, UH, PROCURE ALL THESE ITEMS TO PROTECT OUR SEWER PIPELINE.

UH, WE WENT THROUGH A PROCUREMENT, UH, PROCESS AND HERE'S A SUMMARY OF THAT PROCESS.

IT WAS AN ITB AND WE HAD 41 POTENTIAL VENDORS THAT WERE NOTIFIED OF THE 41 14 RESPECTIVE BIDDERS DOWNLOADED.

AND FOUR BITS, UH, WERE RECEIVED AND REVIEWED.

AND FAR WEST WAS THE, THE LOWEST, UH, QUALIFIED BIDDER.

IN SUMMARY, WE'RE RECOMMENDING, UH, BOARD TO ADOPT CERTIFICATION UD 26 3 0 6, AND AWARD A CONTRACT TO FAR WESTS CORROSION COMPANY AND TO FURNISH AND DELIVER CORROSION CONTROL AND CONDUCT PROTECTION SUPPLIES AND SOLUTIONS FOR ONGOING MAINTENANCE AND SUPPORT OF THE LONG BEACH PUBLIC UTILITY DEPARTMENT NATURAL GAS PIPELINE, THE ANNUAL AMOUNT NOT TO EXCEED 200,000 FOR THE PERIOD OF ONE YEAR.

THE OPTION TO RENEW FOR TWO ADDITIONAL ONE YEAR PERIODS, SUBJECT TO MAXIMUM ANNUAL INCREASE OF 5% OR NOT TO EXCEED THE AMOUNT OF 210,000 FOR THE FIRST RENEWAL.

AND THEN 2 25 FOR THE SECOND RENEWAL.

AUTHORIZE THE GENERAL MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO THE CONTRACT, INCLUDING ANY NECESSARY SUBSEQUENT COMMITMENTS.

THAT CONCLUDES THE PRESENTATION QUESTIONS FOR MYSELF.

THANK YOU MR. VO.

ARE THERE ANY PUBLIC COMMENTS? COMMENTS? THANK YOU.

ANY COMMISSIONER COMMENTS? GO AHEAD.

I'M GONNA SHOW MY IGNORANCE HERE.

UM, WE HAVE 900 MILES OF ACTIVE NATURAL GAS PIPELINE, CORRECT? SO, ON, ON YOUR SLIDE, UM, TWO, JUST JUST SO I CAN UNDERSTAND IT, THE SECOND BULLET, OVER HALF OF THE PIPELINES WERE INSTALLED OVER 50 YEARS AGO, AND RECENT EXCAVATION SHOWED THAT PIPE, THAT PIPE IS IN GOOD CONDITION.

IS THERE ONE PIPE THAT YOU'RE REFERRING TO? JUST SECTIONS OF THE PIPE.

SO WE HAVE A LOT OF MAINTENANCE AND JUST, UH, NEW INSTALLATIONS AND IN ORDER TO SAW, WE TAKE UP HOE AND TIE INTO EXISTING PIPE.

THIS IS ONE OF THOSE TIE-INS LOCATION.

AND DURING THE TIME WE EXPOSED THE PIPE AND WE NOTICED THAT ALL THESE PIPES, EVEN THOUGH IT SAW IN 1950 EXHIBIT, VERY GOOD, UH, CONDITION.

JUST FOR MY KNOWLEDGE, HOW DO WE, UM, HOW DO WE MONITOR 900 MILES OF, SO, UH, WE HAVE A CATHAR PROTECTION SYSTEM WHERE WE HAVE STATIONS ALL AROUND THE CITY TO MEASURE THESE WE CALL POTENTIALS.

IT'S JUST THE DATA IN THE EROSION WORLD.

IT HAS A CERTAIN PARAMETERS, UH, SET BY ZA TO MONITOR.

AND BASED ON THOSE DATA, IT TELLS YOU THAT IT'S IT'S IN A GOOD CONDITION.

AND IF IT'S, IF IT'S LOW, WE GO AND FIGURE OUT WHAT'S CAUSING THAT LOWER NUMBER, WHETHER WE EXCAVATE TO FIND OUT IF IT'S CORROSION OR THE SYSTEM IS NOT DOING A GOOD JOB.

GREAT.

WE'LL ADDRESS THAT.

I MAY HAVE MISSED, YOU MAY HAVE ALREADY SAID THAT, BUT I APPRECIATE THAT.

THANK YOU ASKING QUESTION.

ANY OTHER COMMENTS? ALRIGHT, GREAT.

FIVE, AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A SCHEDULE ONE TRANSACTION BASED NATURAL GAS STORAGE SERVICE AGREEMENT AND ANY NECESSARY AMENDMENTS ACCORDING TO THE LONG-TERM MASTER SERVICES CONTRACT WITH SOUTHERN CALIFORNIA GAS COMPANY.

KA UH, WE'VE GOT A MOTION AND A SECOND.

ALL THOSE IN FAVOR OF AWARDING THE CONTRACTS.

[5. 26-54632 Recommendation to authorize the General Manager to enter into a Schedule I, Transaction-Based Natural Gas Storage Service Agreement and any necessary amendments according to the long-term Master Services Contract with the Southern California Gas Company, for natural gas storage capacity rights in an amount not to exceed $1,891,578, for a period from April 1, 2026 to March 31, 2027. Suggested Action: Approve recommendation. ]

IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? THANK YOU.

SECOND, SECOND CALL ON TONY FOSTER, PLEASE.

ALL GOOD MORNING, COMMISSIONERS.

THIS PRESENTATION PROVIDES AN OVERVIEW OF LONG BEACH UTILITIES NATURAL GAS STORAGE STRATEGY AND THE PROPOSED RENEWAL OF OUR AGREEMENT WITH SOUTHERN CALIFORNIA

[00:40:01]

GAS COMPANY STORAGE PLAYS A CRITICAL ROLE IN MAINTAINING SYSTEM RELIABILITY, MANAGING PRICE VOLATILITY, AND ENSURING WE CAN MEET CUSTOMER, CUSTOMER DEMANDS DURING PEAK PERIODS.

TODAY, WE'LL WALK THROUGH HOW STORAGE WORKS, WHY IT IS ESSENTIAL, AND THE TERMS OF THE PROPOSED AGREEMENT.

SO NATURAL GAS STORAGE INVOLVES INJECTING GAS INTO UNDERGROUND RESERVOIRS, PRIMARILY DEPLETED OIL AND GAS FIELDS FOR LATER USE.

THESE FACILITIES ACT AS A RESERVE, ALLOWING UTILITIES TO STORE GAS WHEN IT IS AVAILABLE AND WITHDRAW IT WHEN IT IS NEEDED.

IN CALIFORNIA, HERE IN SOUTHERN CALIFORNIA, THERE ARE 12 SUCH STORAGE FIELDS.

THEY ARE A FOUNDATIONAL COMPONENT OF MAINTAINING SUPPLY RELIABILITY ACROSS THE STATE.

STORAGE INVOLVES STORAGE, SERVES SEVERAL STRATEGIC PURPOSES.

IT PROVIDES INSURANCE AGAINST SUPPLY DISRUPTIONS, SUPPORTS PEAK WINTER DEMAND, AND STABILIZES SYSTEM OPERATIONS THROUGHOUT THE YEAR.

ECONOMICALLY, IT ALLOWS US TO PURCHASE AND INJECT GAS DURING LOWER COST SUMMER PERIODS AND WITHDRAW IT DURING HIGHER COST WINTER MONTHS, REDUCING EXPOSURE TO PRICE SPIKES AND PROTECTING CUSTOMERS FROM VOLATILITY.

THIS SLIDE DEFINES KEY STORAGE TERMS. FREE GAS CAPACITY REFERS TO AN AN AVAILABLE SPACE FOR INJECTION WHILE GAS AND STORAGE IS THE USABLE INVENTORY.

CUSHION GAS IS A PERMANENT INVENTORY NEEDED TO MAINTAIN PRESSURE AND IRREVOCABLE IRRE RECOVERABLE GAS REMAINS TRAPPED IN THE FORMATION.

TOGETHER, THESE DIVINE WHAT IS KNOWN AS WORKING GAS, WHICH IS THE PORTION WE ACTIVELY MANAGE AND RELY ON OPERATIONALLY.

THIS EXAMPLE ILLUSTRATES THE FINANCIAL VALUE OF STORAGE.

SO LET'S GO BACK TO OUR FAMOUS JANUARY, 2023 EXAMPLE.

DURING THAT MONTH WITH A SEVERE PRICE SPIKE, LONG BEACH UTILITIES WITHDREW APPROXIMATELY 302,000 DECATHERM FROM STORAGE AT AN AVERAGE COST OF 7 71 PER DECATHERM.

DISPLACING MARKET PURCHASES PRICED AT NEARLY $47 PER DECATHERM, RESULTING IN AN APPROXIMATELY $4.5 MILLION SAVINGS, UH, IN A SINGLE MONTH TO OUR CUSTOMERS.

IN OTHER WORDS, HIGH COST INDEX PRICE.

LOCAL GAS WAS EFFECTIVELY AVOIDED AND REPLACED WITH SIGNIFICANTLY LOWER COST GAS THAT HAD BEEN STORED AND SECURED IN ADVANCE.

THIS DEMONSTRATES HOW STORAGE DIRECTLY MITIGATES PRICE VOLATILITY AND REDUCES CUSTOMER COSTS.

MOVING ON TO OUR AGREEMENT.

THE PROPOSED AGREEMENT WITH SO-CAL GAS ESTABLISHES OUR STORAGE CAPACITY INJECTION AND WITHDRAWAL RIGHTS AND ASSOCIATED COSTS.

UNDER THIS AGREEMENT, LONG BEACH UTILITIES WOULD HAVE ACCESS TO UP TO 849,845 DECATHERM OF STORAGE CAPACITY.

THE TOTAL ANNUAL COST IS APPROXIMATELY 1.89 MILLION, WHICH IS INCORPORATED INTO OUR GAS FUND FINANCIAL PLANNING AND SUPPORTS SYSTEM RELIABILITY AND OPERATIONAL FLEXIBILITY.

SO IT'S IMPORTANT TO NOTE THAT STORAGE IS A SUPPLEMENTARY SUPPLY SOURCE.

THE MAJORITY OF OUR GAS PORTFOLIO IS SECURED THROUGH LONG-TERM PREPAID CONTRACTS WITH ADDITIONAL SUPPLY FROM LOCAL PRODUCTION AND SPOT MARKET PURCHASES.

STORAGE COMPLIMENTS THESE SOURCES BY PROVIDING FLEXIBILITY TO BALANCE SEASONAL DEMAND AND RESPOND TO MARKET OR OPERATIONAL DISRUPTIONS.

THIS CHART ILLUSTRATES THE SEASONAL NATURE OF GAS DEMAND WITH HIGHER USAGE IN THE WINTER MONTHS.

AND LOWER DEMAND IN SUMMER STORAGE ENABLES US TO SHIFT SUPPLY ACROSS THESE PERIODS, INJECTING DURING THE LOW DEMAND MONTHS AND WITHDRAWING DURING PEAK DEMAND, ENSURING SYSTEM BALANCE, RELIABILITY, AND COST EFFICIENCY THROUGHOUT THE YEAR.

LET'S BRING IT ALL HOME.

IN SUMMARY, NATURAL GAS STORAGE REMAINS A CRITICAL COMPONENT OF LONG BEACH UTILITIES GAS SUPPLY PORTFOLIO.

IT ENHANCES RELIABILITY, MITIGATES MARKET RISK, AND DELIVERS MEASURABLE COST SAVINGS TO OUR CUSTOMERS.

PROPOSED AGREEMENT CONTINUES A LONGSTANDING ESSENTIAL STRATEGY ALIGNED WITH OUR BUSINESS PLAN AND OPERATIONAL OBJECTIVES.

[00:45:02]

STAFF RECOMMENDS AUTHORIZING THE GENERAL MANAGER, ACTING GENERAL MANAGER TO EXECUTE A ONE YEAR RENEWAL OF THE NATURAL GAS STORAGE AGREEMENT, THE SOCAL GAS MAPLE FIRST, FIRST 2026 THROUGH MARCH 31ST, 2027 IN AN AMOUNT NOT TO EXCEED 1.89 MILLION.

THIS AGREEMENT ENSURES CONTINUED ACCESS TO STORAGE CAPACITY NECESSARY FOR RELIABILITY, PRICE STABILITY, AND OPERATIONAL FLEXIBILITY.

THIS CONCLUDES MY REPORT AND I'M HAPPY TO ENTERTAIN ANY QUESTIONS.

THANK YOU, TONY.

I'M SURE WE'LL HAVE A COUPLE QUESTIONS.

UM, ANY PUBLIC COMMENTS? ALRIGHT, ANY COMMISSIONER COMMENTS TO TONY? THANK YOU.

IT'S CRITICAL WORK.

CAN YOU GIVE ME JUST A SENSE FOR LAST YEAR'S CONTRACT, WAS IT MUCH HIGHER, MUCH LOWER, ABOUT THE SAME? WHERE WHERE ARE WE? IT'S ABOUT THE SAME.

IT GOES UP UP MARGINALLY ABOUT THE COST OF THE INFLATIONARY CPI INDEX EVERY YEAR.

SO THE STORAGE VOLUMES WERE ABOUT THE SAME.

THE PRICE PER UNIT VOLUME HAS GONE UP JUST SLIGHTLY.

AND, AND THEN WITH EVERYTHING CRAZY GOING ON IN THE WORLD TODAY, ARE WE SEEING A SPIKE IN THE NATURAL GAS PRICES? IS IT CONSTANT? IS IT GOING DOWN? WHERE ARE WE SURPRISINGLY CONSTANT, IF NOT A LITTLE BELOW AVERAGE.

WE WERE BRACED FOR ALL KINDS OF THINGS HAPPENING WITH, YOU KNOW, GLOBAL ACTIVITY.

UM, BUT THE, THE US MARKET, UM, AND EVEN WEATHER VOLATILITY IN THE EAST HAS NOT REALLY AFFECTED US HERE.

IT HAS IN THE PAST WE'RE WATCHING, BUT THIS STORAGE AND OUR NEAR FULL CAPACITY OF STORAGE REALLY PROVIDES A BUFFER AGAINST THAT VOLATILITY.

AND I GUESS MY FINAL QUESTION IS, WHERE ARE WE IN STORAGE CAPACITY? ARE, DO WE, IF PRICES REMAIN LOW, DO WE JUST KEEP IT IN STORAGE AND NOT PUMP IT OUT? THAT'S EXACTLY CORRECT, YES.

UH, WE TRY TO KEEP THE AVERAGE STORAGE PRICE VOLUME AS LOW AS POSSIBLE FOR THESE NEEDED PERIODS.

OUR WINTER PERIOD, UH, DRAW DOWN, UH, IT, IT DOES BRING IT DOWN SLIGHTLY.

UM, BECAUSE DURING REALLY COLD DAYS, OUR PREPAY, UH, CONSUMPTION OR PREPAY SUPPLIES ARE NOT SUFFICIENT TO MEET CITY DEMAND.

SO WE'LL DRAW DOWN SLIGHTLY WITH LOCAL PRICES.

THE INDEX PRICES WE JUST KEEP INJECTING TO HAVE THAT BANK ACCOUNT OF GAS SHOULD WE NEED IT.

SO, SO THIS ISN'T A USER OR LOSE IT, THIS IS 1.8 WOULD BE YOUR MAXIMUM ANTICIPATED PURCHASING.

SO IF YOU DON'T SPEND THAT, THAT MONEY WOULD COME BACK TO THE GENERAL FUND OR WHAT I MEAN TO THE GAS.

RIGHT.

THAT IS A, YOU USE IT, YOU HAVE THAT CAPACITY ON SOCAL, SOCAL GAS'S STORAGE NETWORK, WE THINK OF ALISO, BUT IT'S ACTUALLY A NETWORK OF, UH, STORAGE FACILITIES.

SO, UH, WE RESERVE THE CAPACITY ON THAT NETWORK AND WE ACTUALLY DO USE IT EACH YEAR, NOT JUST, UM, UNSPENT MONEY.

INACTIVATED REVENUE.

SURE.

ANY OTHER COMMENTS? I JUST HAVE A THANK YOU, TONY.

THAT WAS GREAT.

I HAVE A QUESTION.

UM, SO I'M ASSUMING THAT OTHER, OTHER, UM, ORGANIZATIONS, AGENCIES DO THIS VERY SIMILAR THING WITH SOUTHERN SOUTHERN CALIFORNIA GAS? THAT'S CORRECT.

THIS STORAGE, UH, IS LEASED OUT TO MANY OTHER, UH, UTILITIES.

VERNON HAS SPACE ON THIS, THE SYSTEM.

UM, SOCAL GAS USES ITS OWN SYSTEM, BUT THEY OF COURSE DON'T CHARGE THEMSELVES THIS WHAT THEY WOULD CHARGE US, RIGHT.

SO YEAH, THAT PLAYS INTO OUR, WHEN WE'RE DOING OUR MONTHLY PRICING.

BUT YES, UH, IT'S USED BY OTHERS.

OTHER LARGE INDUSTRIAL USES HAVE STORAGE ON THAT SYSTEM AS WELL.

I THINK THAT WAS MY QUESTION.

IF, IF THERE WERE ANY COMMERCIAL INDUSTRIAL THAT HAD THEIR OWN GAS STORAGE AS OPPOSED TO WITHIN SOUTHERN CALIFORNIA GASES STORAGE? YES.

UM, WELL MANY CONTRACT WITH SOCAL GAS FOR THAT STORAGE CAPACITY.

VERY FEW HAVE THEIR OWN STORAGE.

ANY ADDITIONAL COMMENTS? UH, I JUST HAVE ONE QUESTION.

MAYBE I'M NAIVE ABOUT THIS.

UM, THE ONE YEAR CONTRACTS THAT WE DO, IS THERE, IS THERE NOT AN OPTION TO DO LONGER TERM CONTRACTS OR ARE THOSE RISKY? ARE, HOW DOES THAT WORK? UM, THIS IS MANDATED BY THE, THE SOCAL GAS STORAGE TARIFF AND ALSO CPUC REGULATES WHAT THEY CHARGE YEAR OVER YEAR.

SO WE COULD EXPLORE, UH, ENTERING INTO LONGER TERM STORAGE CONTRACTS WITH THAT WOULD DIFFER FROM HOW THE TARIFF IS CURRENTLY STRUCTURED.

I KNOW WE'VE BEEN QUITE SUCCESSFUL WITH OUR PREPAY PROGRAM.

YES.

UH, I DON'T, I JUST DIDN'T KNOW IF THAT TRANSLATED TO STORAGE AS WELL.

IT'S KIND OF A SEPARATE, UH, FUNCTIONALITY THAT WE, THAT WE DEAL WITH, BUT IT'S TYPICALLY ON A YEAR OVER YEAR BASIS.

SO WE HAVE A MOTION AND A SECOND TO APPROVE, UH, THE AGREEMENT.

UH, ALL THOSE IN FAVOR, PLEASE SAY AYE.

SIX, ADOPT RESOLUTION NUMBER UT 1 5 4 8 AUTHORIZING THE GENERAL MANAGER TO EXECUTE

OPPOSED? PERFECT.

THANK YOU, TONY.

MOVING ON TO ITEM NUMBER

[6. 26-54633 Recommendation to adopt Resolution No. UT-1548 authorizing the General Manager to execute a contract and any necessary documents, including subsequent amendments, with the Institute of Gas Technology (GTI Energy), to conduct a study on decommissioning natural gas pipelines in the City of Long Beach and draft a report summarizing existing state laws governing the future planning of energy infrastructure in California, including natural gas pipeline infrastructure, in a total amount not to exceed $95,000, for a period of nine (9) months. Suggested Action: Approve recommendation. ]

[00:50:01]

CONTRACT AND ANY NECESSARY DOCUMENTS INCLUDING SUBSEQUENT AMENDMENTS WITH THE INSTITUTE OF GAS TECHNOLOGY, GTI ENERGY TO CONDUCT A STUDY ON DECOMMISSIONING NATURAL GAS PIPELINES IN THE CITY OF LONG BEACH AND DRAFT A REPORT SUMMARIZING EXISTING STATE LAWS GOVERNING THE FUTURE PLANNING OF ENERGY INFRASTRUCTURE IN CALIFORNIA, INCLUDING NATURAL GAS PIPELINE INFRASTRUCTURE.

IN ORDER TO HEAR THE PRESENTATION, MAY I PLEASE HAVE A MOTION? THANK YOU.

AND A SECOND.

SECOND.

GOOD MORNING COMMISSIONERS.

CALL ON DIANA TANG FOR THE PRESENTATION.

GOOD MORNING.

AND I'D LIKE TO ACTUALLY INCLUDE KELLY KLIMA FORUM, RAND CORPORATION WHO'LL BE CO-PRESENTING WITH ME ON A COUPLE SLIDES HERE, UM, THROUGHOUT THE PRESENTATION.

THANK YOU SO MUCH FOR ALLOWING US TO, UM, COME BEFORE YOU WITH A RECOMMENDATION TO ENTER INTO AN AGREEMENT WITH GTI TO STUDY LONG-TERM NATURAL GAS PLANNING IN CALIFORNIA.

AS MANY OF US HAVE HEARD, CALIFORNIA HAS AMBITIOUS CLIMATE CHANGE POLICIES, UM, STARTING BACK IN, UM, REALLY THE 1990S, BUT BY 2006, THE STATE HAD ADOPTED AB 32, WHICH BECAME OUR, UM, PREEMINENT AND FOUNDATIONAL CLIMATE CHANGE, UM, FRAMEWORK FROM WHICH WE ALL WORK.

SO AB 32 ESTABLISHED GREENHOUSE GAS REDUCTION TARGETS AND THE PROGRAM THAT WE HAVE ALL KNOWN AS CAP AND TRADE, ALTHOUGH IN ITS LATEST REITERATION, IT'S, UM, BEING RENAMED CAPITAL INVEST AFTER 2030.

UM, AB 32 BECAME EFFECTIVE IN 2015.

AND SINCE THEN WE'VE BEEN ADMINISTERING THE POLICY AS WELL AS, UM, LEARNING ABOUT NEW POLICIES THAT COME FORTH AND WORKING TO ACHIEVE THOSE AS WELL.

UM, SOME OF THOSE INCLUDE AB 1279 AND 2002, I'M SORRY, 2022, WHICH MANDATES NET ZERO GREENHOUSE GAS EMISSION BY 2045.

THAT'S A VERY, VERY AMBITIOUS GOAL.

SB 1221 FOLLOWED IN 2024.

AND AUTHORIZES NEIGHBORHOODS SCALE DEEP CARBONIZATION PILOTS.

SO WHAT DOES THAT MEAN? UM, THAT NEIGHBORHOOD SCALE DECARBONIZATION PILOTS MEANS PULLING NATURAL GAS PIPELINE OUT OF THE GROUND AND MOVING THOSE CUSTOMER ACCOUNTS COMPLETELY ONTO ELECTRICITY, WHETHER THAT'S, UM, SOUTHERN CALIFORNIA EDISON IN OUR AREA, OR IF SOMEHOW A HOME BECOMES COMPLETELY SOLAR, SELF-EFFICIENT, UM, THAT'S THE TYPE OF CHANGE THAT WE'RE LOOKING AT IN CALIFORNIA.

AB 1221 IS ADMINISTERED BY THE CPUC, AND SO THEY'RE PRIMARILY LOOKING IN CPUC AREAS.

THAT INCLUDES AREAS LIKE PG E OR SO CALGAS.

IT DOES NOT INCLUDE AREAS, UM, SUCH AS THE CITY OF LONG BEACH BECAUSE WE ARE NOT REGULATED BY THE CPUC FOR THESE TYPES OF PURPOSES.

NEVERTHELESS, OUR OWN CITY COUNCIL HAS ADOPTED A NUMBER OF THEIR OWN AMBITIOUS CLIMATE CHANGE POLICIES.

AND SO IN RECOGNITION OF, UM, THE INDUSTRY DISCUSSION AND STATEWIDE CLIMATE CHANGE ADAPTATION EFFORTS, UM, WE ARE, UH, MONITORING THIS VERY CLOSELY AND AWARE OF HOW IT MAY OR MAY NOT APPLY HERE IN LONG BEACH, WHICH IS, UM, A LITTLE BIT ABOUT WHAT WE'LL GET INTO NEXT.

AND THEN LAST BUT NOT LEAST, AB 1207, UM, APPROVED LAST YEAR, EXTENDS CAP AND TRADE, RENAMES IT CAP AND INVEST AFTER 2030.

SO WE CAN EXPECT THIS PROGRAM TO CONTINUE FOR QUITE A WHILE.

ALRIGHT, UM, SO WHY LONG-TERM NATURAL GAS PLANNING IS NECESSARY? WELL, AS YOU HEARD FROM FROM KA AND UM, OTHERS FROM OUR THAT HAVE PRESENTED BEFORE THIS COMMISSION, NATURAL GAS IS, UM, A FOSSIL FUEL.

IT'S A COMMODITY THAT WE IN LONG BEACH AND EVERYWHERE ELSE IN THE COUNTRY, USE FOR HEATING, FOR BATHING, FOR COOKING, UM, FOR A NUMBER OF USES FOR A VERY LONG TIME.

UM, NATURAL GAS IS AN ENERGY SOURCE.

ELECTRICITY ALSO PROVIDES ENERGY.

AND SO THERE ARE DIFFERENT WAYS THAT ENERGY CAN BE PRODUCED, BUT FOR A LONG TIME NATURAL GAS, UM, IS, HAS BEEN A, A HUGE, UM, PART OF THAT PORTFOLIO AND IT IS ARGUABLY ONE OF THE MORE AFFORDABLE, UM, OPTIONS FOR, FOR ENERGY FOR US AS A NATURAL GAS DISTRIBUTION AGENCY AND PLANNING CONSIDERATIONS.

LONG-TERM PLANNING CONSIDERATIONS INCLUDE POTENTIAL PIPELINE DECOMMISSIONING STRATEGIES, WHAT THAT MEANS, UM, COSTS SAFETY, UM, CONTINUED DELIVERY FOR THOSE SERVICES THAT NEED IT.

UM, WHAT DOES ELECTRIFICATION OF BUILDINGS AND NEIGHBORHOODS MEAN? WE ARE NOT AN ELECTRIC PROVIDER.

UM, BUT IF WE WERE REQUIRED TO DECOMMISSION FOR ANY, ANY PURPOSE, UM, AS A PUBLICLY OWNED UTILITY, WE, WE BELIEVE THAT IT IS, UM, OUR RESPONSIBILITY TO APPROPRIATELY COMMUNICATE TO OUR CUSTOMERS, WHICH ARE ALSO OUR RESIDENTS, UM, WHAT THEIR OTHER ENERGY SOURCES WOULD BE.

AND RIGHT NOW THAT IS ELECTRIFICATION.

AND THEN OF COURSE THAT INCLUDES A NUMBER OF LONG-TERM INFRASTRUCTURE INVESTMENT DECISIONS, BOTH, BOTH PRE-ME AND POST METER.

AND WHAT PRE-ME MEANS IS, IS ALL OF US ISLAM

[00:55:01]

BEACH UTILITIES IS PRE-ME.

POST METER IS ANYTHING INSIDE THE PRIVATE PROPERTY.

AND SO, UM, THE BURDEN OF THOSE COSTS ARE VERY DIFFERENT.

PRE-ME IS ISLAM BEACH UTILITIES.

POST METER IS THE INDIVIDUAL RATE PAYER THEMSELVES AND BOTH ARE IMPACTED IN ANY DECISIONS THAT ARE MADE, UM, WHEN IT COMES TO NATURAL GAS DECOMMISSIONING.

AND THEN, UM, OF COURSE THE IMPACT ON UTILITY OPERATIONS AND RIGHT PAIR COSTS.

SO JUST A LITTLE BIT ABOUT NATURAL GAS TRENDS IN LONG BEACH.

WE ARE ON A DOWNWARD TREND.

UM, SINCE 1990S, NATURAL GAS CONSUMPTION HAS DECLINED FOR ABOUT APPROXIMATELY 32%.

THIS IS, UM, BASED ON A NUMBER OF FACTORS INCLUDING MORE ENERGY EFFICIENT PRODUCTS, UM, IN GENERAL, UM, INTEREST BY OUR CUSTOMER BASE TO BECOME CLEANER, GREENER, AND ELECTRIFY.

THAT, UM, IS A BIG THEME IN CALIFORNIA CLIMATE POLICIES.

AND SO AS, AS A RESULT, UM, WE ARE SEEING DECREASES IN NATURAL GAS CONSUMPTION OVER TIME.

UM, THIS BOARD HAS HEARD US BRING FORTH A NUM UH, A COUPLE OF, UM, RESEARCH PARTNERSHIPS.

LAST SUMMER.

YOU APPROVED A NON-DISCLOSURE AGREEMENT WITH SCE TO ALSO EXPLORE DECOMMISSIONING OF OUR PIPELINE SYSTEM.

WE HAVE SHARED OUR DATA WITH THEM, THEY HAVE SHARED SOME INFORMATION BACK.

UM, THAT, THAT PROJECT IS KIND OF STALLED, UM, FOR THE MOMENT AND WE ARE NOT MOVING FORWARD.

BUT PRIOR TO OUR WORK WITH SCE, WE HAD PARTNERED WITH THE RAND CORPORATION, WHICH IS WHY KELLY IS HERE WITH US TODAY TO DO EXTENSIVE STUDY OF POTENTIAL DECOMMISSIONING AT VILLAGES OF CABRILLO IN THE LONG BEACH, UM, NATURAL GAS SYSTEM.

THAT LOCATION WAS CHOSEN BECAUSE IT IS A FAIRLY CONFINED CAMPUS.

UM, THE POPULATION IS KNOWN.

IT HAS, UM, A VERY, UM, COHESIVE MANAGEMENT STRUCTURE AND IT'S AT THE END OF A NATURAL GAS, UM, DISTRIBUTION PIPELINE.

SO TAKING THAT SEGMENT OUT OF OUR SYSTEM WOULD NOT LEAVE ANYONE ELSE STRANDED.

NEVERTHELESS, UM, THROUGH ALL OF THE RESEARCH ON THAT, THAT PROJECT HAS ALSO NOT MOVED FORWARD, UM, FOR A NUMBER OF FACTORS, COST BEING ONE OF THEM.

UM, AND SO WE CONTINUE TO STUDY THE WORK, UM, ALONG WITH THE CALIFORNIA ENERGY COMMISSION, RAND GTI, THE CALIFORNIA PUBLIC UTILITIES COMMISSION AND SOUTHERN CALIFORNIA EDISON.

HOWEVER, UM, NONE OF THESE STUDIES HAVE TRULY LOOKED AT THE ENTIRE CITY OF LONG BEACH NATURAL GAS DISTRIBUTION IN ITS ENTIRETY.

UM, WE HAVE A LOT OF DATA AND STATISTICS OUT THERE ON, ON DECOMMISSIONING IN GENERAL.

AND THEN WE HAVE SOME DATA, UM, SPECIFIC TO VILLAGES OF CABRIA.

BUT VILLAGES OF CABRIA IS NOT YOUR AVERAGE, UM, SINGLE FAMILY HOME.

UM, NOR IS IT A TYPICAL MULTIFAMILY HOUSING DEVELOPMENT SUCH AS LIKE WHAT YOU MIGHT SEE IN DOWNTOWN LONG BEACH.

SO PRO BEFORE MOVING FORWARD IN THIS CONVERSATION, WE FELT THAT IT WAS IMPORTANT TO GET ACTUAL DATA AND STATISTICS SPECIFIC TO LONG BEACH AND THAT COULD BE GENERALIZED TO THE AVERAGE SINGLE FAMILY, UM, HOME, BOTH ON THE PRE-ME SIDE, SO FOR LONG BEACH UTILITIES AND THEN WHAT IT MIGHT ACTUALLY LOOK LIKE FOR OUR CUSTOMER ON THE POST METER SIDE SO THAT THEY'RE INFORMED AS WE MOVE FORWARD IN THIS RESEARCH AND UNDERSTANDING, UM, HOW STATE CLIMATE, STATE AND CITY CLIMATE POLICIES MIGHT AFFECT US AND OUR CUSTOMERS.

SO WITH THAT, I'LL TURN IT OVER TO KELLY TO TALK A LITTLE BIT ABOUT THE RAND STUDY BECAUSE, UM, TODAY'S REQUEST TO CONTINUE THIS WORK WITH GTI REALLY STEMMED FROM A LOT OF, UM, THE INFORMATION THAT WE GLEANED, UM, FROM, FROM THIS WORK THAT WE'VE DONE WITH THE RAND CORPORATION ABOUT FOUR YEARS AGO NOW.

SO KELLY KLIMA FROM RAND.

THANK YOU FOLKS.

SO I'D LIKE TO TELL YOU A LITTLE BIT ABOUT THIS STUDY.

IT WAS FUNDED BY THE CALIFORNIA ENERGY COMMISSION, WHICH YOU HEARD AS ONE OF THE EARLIER PARTNERS FOR THIS EFFORT, FUNDED FOR ABOUT A MILLION DOLLARS OVER THE COURSE OF 2021 TO 2023 WITH THE REPORT FINALIZED IN 2024.

SO FOR THIS STUDY, WE WERE ON CONTRACT TO, AS YOU SAW WITH SOME OF THE LAWS PRIOR TO AV, UM, OR SORRY, SB UH, 1221 AND SOME OF THE OTHERS COMING OUT.

WE WERE ASKED TO TAKE A LOOK AT LOW HANGING FRUIT STRATEGIC LOCATIONS.

CPUC AND CEC HAD BELIEVED THAT THERE MIGHT BE SOME PLACES WHERE EVERYBODY WOULD BE IN AGREEMENT AND IT WOULD SAVE MONEY AND LIFE WOULD BE FANTASTIC IF WE JUST DECOMMISSIONED NATURAL GAS INFRASTRUCTURE.

WE, UH, WEREN'T SURE ABOUT THAT BRAND.

DOES A LOT OF PUBLIC POLICY RESEARCH AND WE HAVE BEEN FUNDED FOR FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS FOR MANY YEARS TO ANSWER THESE SORTS OF TOUGH QUESTIONS.

WILL IT ACTUALLY SAVE MONEY? SO FOR OUR STUDY, WE SAID FIRST WE TOOK A LOOK AT UNDERSTANDING DIRECTLY COMMUNITY STAKEHOLDER PREFERENCES.

AS DIANA HAD

[01:00:01]

MENTIONED, THERE'S PREME AND POST METER COSTS.

PREME WOULD FALL ON THE UTILITY, POST METER FALLS ON THE BUILDING OWNER OR THE UTILITY RATE PAYER.

AND THESE FOLKS, THESE ARE GONNA BE A LARGE BURDEN POTENTIALLY BECAUSE THINK ABOUT IT, YOU HAVE TO SWITCH OUT YOUR STOVE AND IF IT'S A NATURAL GAS STOVE TO HAVE COMPARABLE LEVEL OF COOKING, YOU NEED AN INDUCTION STOVE.

THEN YOU ALSO HAVE TO SWITCH OUT ALL OF YOUR POTS AND PANS AND YOUR WALKS AND EVERYTHING ELSE THAT YOU HAVE, RIGHT? SO THERE'S A LOT OF DIFFERENT PIECES THAT GO INTO THIS.

ALSO, MANY BUILDINGS WOULD NEED, UM, ELECTRIFICATION UPDATES, UH, IN ORDER TO BE ABLE TO SUPPORT THAT NEW INFRASTRUCTURE.

SO WE WORKED WITH COMMUNITY STAKEHOLDERS THROUGHOUT THE PROCESS IN LONG BEACH AS WELL AS THE CITY OF SANTA MONICA.

THESE AREAS WERE CHOSEN BECAUSE THEY WERE DISADVANTAGED, UH, VULNERABLE COMMUNITIES PER WHAT IS, UH, THE REGULATORY EFFORTS FOR CALIFORNIA.

AND ALSO IN LONG BEACH.

WE WERE REALLY INTERESTED BECAUSE THERE'S AN AIR QUALITY EFFECT HERE FROM THE PORT WHERE LOCAL AIR QUALITY'S NOT REALLY THAT GREAT.

SO THERE'S A LARGE INTEREST IN MAYBE NATURAL GAS INFRASTRUCTURE.

IF YOU REMOVE THAT, IT COULD IMPROVE INDOOR AIR QUALITY AND IMPROVE PEOPLE'S LIVES, REDUCE ASTHMA, ET CETERA, ET CETERA.

SO AS WE DID THIS, WE WORK WITH CENTURY VILLAGES OF CABRILLO.

WE HAD A VIRTUAL WORKSHOP DURING COVID AND THEN AN IN-PERSON WORKSHOP AT THE SITE, UH, I BELIEVE IS IN 2022.

UH, THROUGH THAT, UH, WE ALSO SYNERGIZE THIS WITH SOME WORK FROM GTI AS WELL AS OTHERS.

IN LOOKING AT HYDRAULIC MODELING, THE CONCEPT OF IF YOU DECOMMISSION A LARGE AREA OF PIPE, THERE JUST WON'T BE ENOUGH GAS IN THE SYSTEM TO FLOW CORRECTLY.

SO YOU'RE GOING TO HAVE TO PUT THINGS CALLED PRESSURE BETTERMENT SYSTEMS ON IN ORDER TO ALLOW THAT NATURAL GAS TO FLOW.

AND IT'LL ALSO HAVE UPSTREAM EFFECTS ON PEOPLE OUTSIDE OF THE AREA THAT IS BEING DECOMMISSIONED.

SO THE SPILLOVER EFFECTS SEEING THIS MOVING FORWARD.

WHAT WE FOUND WITH THE COMMUNITY WERE A COUPLE THINGS.

ONE, THAT ELECTRIFICATION IS NOT ALWAYS THE PREFERRED OPTION.

UM, BUT WE WERE ASKED TO TRY TO FOCUS ON THAT AS AN ALTERNATIVE.

SO WE DID DUE DILIGENCE ON OUR RESEARCH AND FOCUSED ON THAT.

THE COST ALLOCATION IS A MAJOR CONCERN.

THE BUILDING OWNERS WERE VERY INTERESTED.

THE RENT PAIRS WERE VERY INTERESTED IN HOW MUCH ADDITIONAL MONEY THEY WOULD BE PAYING, UH, TO PAY FOR THIS EQUIPMENT AND HOW MUCH MORE THEY'D BE WILLING TO PAY ON THEIR ELECTRICITY BILL.

FOR THE SITE SPECIFIC PILOT PROJECT WE CREATED FOR CENTURY VILLAGES AT CABRILLO, WE TOOK A BUILDING THAT ALREADY HAD ALL THE ELECTRICITY UP TO DATE AND ALL THEY'RE GONNA HAVE TO DO IS GO IN AND LIKE SWITCH OUT SOME STOVES AND SWITCH OUT SOME DRYERS AND SUCH.

IN THIS, THIS WAS JUST ITSELF OVER $3 MILLION APPROXIMATELY FOR THIS PARTICULAR EFFORT.

AND THE, UH, UTILITY BILLS DID GO UP BY ABOUT A HUNDRED DOLLARS A MONTH, UH, SLIGHTLY DIFFERENT FOR YOUR CARE AND FAIR RATE PAYERS.

THESE SORTS OF EQUITY IMPACTS MUST BE CAREFULLY EVALUATED.

THE RESIDENTS AT THESE BUILDINGS WERE WILLING TO CONSIDER THIS IF ADDITIONAL INCENTIVES WERE PROVIDED LIKE OFFSETS ON THEIR MONTHLY REPAIR BILL, OR IF THEY GOT AIR CONDITIONING, FOR EXAMPLE, ADDED TO THEIR UNITS.

THAT COMMUNITY ENGAGEMENT IS ESSENTIAL IN TRANSITION PLANNING.

MOVING FORWARD, AND I'LL TURN THIS BACK TO DIANA NOW, NOW WE'RE LOOKING AT WITH SB 1221 LOOKING AT BROADER COMMUNITY LEVEL EFFORTS.

SO ALL THOSE PIECES WHERE WE PREVIOUSLY SET THEM ASIDE, UH, THESE PLACES WHERE WHEN YOU HAVE A LARGE AREA, YOU DON'T HAVE ENOUGH GAS, UH, POTENTIALLY GOING THROUGH THE SYSTEM AND IT HAS SPILLOVER EFFECTS ON OTHERS, THAT'S WHAT WE'RE SEEING WILL BE OCCURRING WITH SB 1221.

SO THERE'S A REAL NEED TO UNDERSTAND THE COSTS FOR THAT AND WHO WILL BE PAYING THEM.

SO THAT WAY WHEN IF, UH, THIS CONTINUES TO MOVE FORWARD AND WE ARE ASKED, UH, LONG BEACH TO DO THIS, WE'LL BE READY WITH THE DATA IN ORDER TO BE ABLE TO MAKE A GOOD CASE FOR HOW MUCH IT'S GONNA COST OUR UTILITY RATE PAYERS AND WHY.

THANK YOU KELLY, FOR THAT INFORMATION.

SO AS KELLY MENTIONED, UM, AND I THINK I, WE'VE HOPEFULLY IMPARTED IN UTILITY INFRASTRUCTURE TRANSITION CONSIDERATIONS ARE MANY, THEY'RE VARIED.

UM, EVERYONE PAYS ESSENTIALLY, UM, ESPECIALLY THE RIGHT PAYER AND IT IS AN ONGOING COST TO THEM.

UM, AS FOR A DISTRIBUTION ENTITY SUCH AS OURSELVES, THE TRANSITION WILL, WILL ALSO HAVE FINANCIAL IMPLICATIONS THAT ARE ONGOING AND POTENTIALLY IMPACT, UM, HOW WE MANAGE OUR SYSTEM ALSO.

SO ALL OF THOSE THINGS, UM, ARE, ARE, UM, FACTORS THAT WE'RE CONSIDERING IN LONG-TERM

[01:05:01]

NATURAL GAS PLANNING.

BUT OF COURSE, NO DECISION FOR ANY TRANSITION HAS BEEN MADE.

AND SO FOR NOW, OUR GOAL AND OUR PLAN IS TO MANAGE OUR NATURAL GAS DISTRIBUTION SYSTEM AS IT CURRENTLY IS IN THE GROUND TODAY.

UM, THIS IS JUST A QUICK SLIDE ON, UM, CONVERSATIONS YOU MAY HEAR IN THE COMMUNITY, UH, SUCH AS IF, IF NATURAL GAS USE CONTINUES TO DECREASE, AND IF WE DO, IF WE ARE ABLE TO RE REACH NET ZERO GREENHOUSE GAS EMISSIONS BY 2045, WHO WILL ACTUALLY PAY FOR DECOMMISSIONING OF FOSSIL FUEL BASED, UM, ENERGY SYSTEMS AND, AND HOW WILL THAT BE SPREAD ACROSS, UM, UTILITIES AND AND TO OUR CUSTOMERS.

THESE ARE BIG QUESTIONS WITHOUT ANY REAL ANSWERS AT THE MOMENT.

UM, BUT SOMETHING THAT WE DO NEED TO, UM, TAKE INTO CONSIDERATION AND KNOW EXISTS, UM, AND IS A DIALOGUE THAT IS HAPPENING.

SO THAT BRINGS US TO GTI.

SO WHILE ALL OF THESE BIG QUESTIONS ABOUT NATURAL GAS SYSTEM PLANNING IS HAPPENING, WE AT LONG BEACH UTILITIES ARE FOCUSING ON OUR PRIMARY RESPONSIBILITY, WHICH IS OUR OWN RATE PAYERS HERE IN LONG BEACH AND THE AFFORDABILITY OF OUR SYSTEM FOR THEM.

UM, FOR THIS I'LL BRING UP TONY FOSTER.

TONY HAS BEEN WORKING VERY CLOSELY WITH GTI AND AS MENTIONED GTI WAS A PARTNER IN THE RAND STUDY.

AND SO THIS IS TAKING WORK THAT THEY'VE ALREADY DONE AND EXPANDING IT AND DELVING DEEPER SO THAT WE HAVE MORE DATA AND STATISTICS TO WORK WITH TONY.

ALRIGHT, THANK YOU, UH, DIANA AND THANK YOU DR.

KLIMA.

SO, AS DIANA SAID, TO SUPPORT THIS PLANNING EFFORT, LONG BEACH UTILITY PROPOSES PARTNERING WITH GTI ENERGY TO DEVELOP DECISION SUPPORT FRAMEWORKS TAILORED TO LONG BEACH UTILITIES GAS SYSTEM GT'S TEAM INCLUDES.

WE HAVE A MEMBER HERE, DR.

ENRIQUE LOPEZ DROGE, A PROFESSOR IN THE CIVIL, UH, AND ENVIRONMENTAL ENGINEERING DEPARTMENT, AND THE GARRICK INSTITUTE FOR RISK SCIENCES AT UCLA.

HIS AND THEIR EXPERTISE IN PROBABILISTIC RISK ASSESSMENT AND INFRASTRUCTURE RESILIENCE STRENGTHENS THE ANALYTICAL FOUNDATION OF THIS WORK.

THE PROJECT WILL EVALUATE SYSTEM CONFIGURATION, INFRASTRUCTURE CONDITION, ELECTRIFICATION, FEASIBILITY, AND THE COST OF POTENTIAL STRATEGIES FOR PIPELINE RETIREMENT.

IT WILL ALSO A ASSESS LIFECYCLE COSTS, CUSTOMER AFFORDABILITY IMPACTS AND EQUITY CONSIDERATIONS.

THE OBJECTIVE IS TO PROVIDE THIS BOARD AND OTHER POLICY MAKERS WITH A DATA-DRIVEN ANALYTICAL TOOL THAT CAN INFORM FUTURE INFRASTRUCTURE POLICY DECISIONS.

SO THE PROPOSAL BEFORE YOU IS A SOLE SOURCE JUSTIFICATION, AND IT IS STRUCTURED AS A SOLE SOURCE PROCUREMENT BECAUSE THE WORK BUILDS DIRECTLY ON AN ANALYTICAL PLATFORM.

GTI IS ALREADY DEVELOPING AND HAS ALREADY DEVELOPED THROUGH A CALIFORNIA ENERGY COMMISSION RESEARCH PROJECT.

THAT PROJECT PROJECT IS CREATING A PROBABILISTIC MODELING FRAMEWORK USED TO EVALUATE INFRASTRUCTURE INVESTMENT DECISIONS UNDER UNCERTAINTY.

SO RATHER THAN DEVELOPING A NEW MODEL FROM SCRATCH, LONG BEACH WOULD EXPAND THIS PLATFORM USING LOCAL DATA SUCH AS OUR GAS SYSTEM CONFIGURATION, BUILDING CHARACTERISTICS, AND INFRASTRUCTURE COSTS.

THIS ALLOWS THE CITY TO LEVERAGE ROUGHLY $1.6 MILLION IN PRIOR RESEARCH AND ACCELERATE DEVELOPMENT OF A LONG BEACH SPECIFIC PLANNING TOOL.

'CAUSE THE MODELING FRAMEWORK IS PROPRIETARY TO GTI.

NO OTHER FIRM HAS ACCESS TO THE UNDERLYING ARCHITECTURE NEEDED TO PERFORM THIS WORK WITHOUT DUPLICATING A SIGNIFICANT PRIOR RESEARCH EFFORT.

THAT CONCLUDES OUR REPORT, AND WE'RE HAPPY TO TAKE ANY QUESTIONS.

THANK YOU TONY, AND THANK YOU DIANA, AND THANK YOU DR.

KLIMA.

UH, ARE THERE ANY PUBLIC COMMENTS? CHAIR RECOGNIZES PETE MARSH WITH THE LA CLIMATE REALITY PROJECT.

WELCOME, PETE.

THANK YOU SO MUCH, PRESIDENT SCOTT.

UH, COMMISSIONERS, UH, FELLOW COMMUNITY MEMBERS.

UH, SO I'M, UH, PETE MARSH.

I'M THE, UH, OWNER OF VECTOR GREEN POWER, A SOLAR CONTRACTOR AND BUILDING ELECTRIFICATION CONSULTANT HERE IN LONG BEACH.

UM, I ALSO DO A LOT OF PRO BONO WORK WITH US GREEN BUILDING COUNCIL, AMERICAN INSTITUTE OF ARCHITECTS, UH, AND A NUMBER OF GROUPS, UH, THAT

[01:10:01]

ARE WORKING ON THE CLEAN ENERGY TRANSITION.

UH, AND I FOCUS ESPECIALLY ON OUR BUILDINGS, WHICH ARE SERVED BY YOUR PIPE PIPELINES.

UH, I'M A CLIMATE HAWK.

UH, I SERVE ON OUR CITY'S CLIMATE RESILIENT, SUSTAINABLE CITY COMMISSION.

I SERVE ON THE SCHOOL DISTRICT'S, UH, CLIMATE AND SUSTAINABILITY TASK FORCE.

I'M A CURRENT, UH, PARTICIPANT IN LEADERSHIP LONG BEACH WITH DAN AND WITH, UH, MARSHA, WHO'S NOT HERE TODAY.

UH, SO DEEPLY INVESTED IN THE COMMUNITY.

UH, I'M HERE TO EXPRESS MY PERSONAL AND CLIMATE REALITY PROJECTS, STRONG SUPPORT FOR THIS INTENTIONAL AND, UH, EVIDENCE-DRIVEN AND AGGRESSIVE DECOMMISSIONING OF OUR 1900 MILES OF GAS DISTRIBUTION PIPELINE.

WE HAVE SOMETHING AROUND, UH, ONE 10000TH OF THE MILES OF GAS DISTRIBUTION PIPELINE IN THE NATION HERE.

UM, I WANNA OPEN WITH AN IMPORTANT ACKNOWLEDGEMENT THAT YOU MIGHT NOT EXPECT FROM SOMEONE LIKE ME.

FOSSIL FUELS HAVE PROVIDED TREMENDOUS BENEFIT TO HUMANITY OVER THE LAST COUPLE OF CENTURIES.

UH, HUMAN POPULATION.

UM, THE ECONOMY, QUALITY OF LIFE EVEN HAVE INCREASED DRAMATICALLY AT A PACE NOT SEEN IN THOUSANDS OF YEARS PRIOR.

ON THE OTHER HAND, IN THE LAST HALF CENTURY, WE HAVE LEARNED THAT THIS, UH, OUR, OUR PRIMARY SOURCE OF ENERGY FOR THE LAST COUPLE OF CENTURIES HAS COME WITH SIDE EFFECTS THAT WE'RE, UH, JUST STARTING TO GRAPPLE WITH THE MAGNITUDE OF.

AND SO, UM, SO, UH, QUICK SUMMARY OF SOME OF THOSE SIDE EFFECTS EFFECTS.

GLOBAL GDP IS AROUND $130 TRILLION.

GOVERNMENTS SPEND A LITTLE OVER A TRILLION DOLLARS ANNUALLY IN DIRECT SUBSIDIES TO FOSSIL FUELS, EITHER SUPPLY OR CONSUMER SIDE.

AND WE EXPERIENCE OVER 6 TRILLION IN, UH, COSTS IMPOSED ON THE ECONOMY, ENVIRONMENTAL CLEANUP, ET CETERA.

UH, SO WE'RE IMPOSING A 6% TAX ON THE GLOBALLY ECONOMY, WHICH IS GROWING AS THE, UH, THE PACE OF, UH, CLIMATE POLLUTION INCREASES.

UH, WE EXPERIENCE EIGHT TO 10 MILLION PREMATURE DEATHS PER YEAR FROM JUST FROM THE RESPIRATORY AND HEALTH IMPACTS OF FOSSIL FUEL COMBUSTION, EIGHT TO 10 MILLION OUT OF OUR 8 BILLION HUMAN POPULATION, THAT'S ONE 10TH OF 1% OF HUMANITY DYING PREMATURELY EVERY YEAR, UH, BECAUSE OF WHERE WE ARE.

THE GOOD NEWS IS WE HAVE, UH, ZERO AND VERY LOW CARBON ENERGY TECHNOLOGIES ON THE SHELF BEING DEPLOYED AT RAPIDLY INCREASING AND MASSIVE SCALE OVER THE LAST DECADE.

THAT CAN ACTUALLY HELP US, UH, WITH ANOTHER TWO OR THREE DECADES OF SMART INVESTMENT, UH, SOLAR, WIND, HYDRO, UH, GEOTHERMAL AND NUCLEAR CAN POWER WELL OVER 80% OF THE US AND GLOBAL ECONOMIES AND DO IT WITH, UH, ZERO CARBON, ZERO, UH, OTHER, UH, CRITERIA POLLUTANTS.

SO, UH, MANY, UH, MANY PEER REVIEWED STUDIES, UH, AND OUR RECENT EXPERIENCE IN CALIFORNIA AND TEXAS, UH, CONFIRM THAT YES, THE GRID CAN HANDLE IT.

YOU KNOW, THAT'S ONE OF THE BIG CONCERNS.

UH, ARE WE GONNA BREAK THE ELECTRICAL GRID? TODAY'S GRID, OF COURSE, WOULD NOT HANDLE 80% IN, UH, OF THE ECONOMY, BUT THE GRID IS, UH, GROWING WITH SMART INVESTMENT RAPIDLY AS WE SPEAK.

AND, UH, SOUTHERN CALIFORNIA EDISON IS ON RECORD SAYING, YES, THEIR GRID CAN HANDLE FULL ELECTRIFICATION LOCALLY.

YOU KNOW, AS IT HAPPENS OVER TIME.

UM, THE TREND LINE IS EXTREMELY CLEAR GLOBALLY.

INVESTMENT IN CLEAN ENERGY AND, UH, UH, WAS NEARLY DOUBLE THAT OF FOSSIL FUELS LAST YEAR, EVEN WITH THE HEADWINDS OF THE CURRENT THANK YOU, SIR, OF THE CURRENT ADMINISTRATION.

UH, SO THE NONPROFITS THAT I MENTIONED EARLIER STAND READY TO SUPPORT THE COMMISSION AND, UH, THE UTILITIES DEPARTMENT IN THAT VITAL COMMUNITY ENGAGEMENT THAT WAS DESCRIBED BY MS. TANG AND DR.

KLIMA.

UM, WE'D ALSO LIKE TO SUBMIT SOME STUDIES.

UM, DR.

KLIMAS, UH, COMMENTS INDICATED SOME CONCERN ABOUT, UH, ELECTRIFICATION, BOTH THE COST AND THE READINESS OF THE GRID.

UH, WE HAVE A LOT OF EVIDENCE THAT ACTUALLY IT'S NOT, UH, IT'S GONNA BE EXPENSIVE, BUT, UH, THE DELTA IN INVESTMENT BETWEEN BUSINESS AS USUAL VERSUS, UH, THE NEW PARADIGM IS NOT AS BAD AS WE THINK.

AND, UH, THE, THE COST OF DOING BUSINESS AS USUAL IS GOING TO GET, UM, BIGGER AND BIGGER.

SO, UM, THIS TRANSITION WILL RUN RESULT IN BETTER HUMAN HEALTH ENVIRONMENT AND A STRONGER ECONOMY.

PLEASE BE MORE AGGRESSIVE THAN YOU ARE COMFORTABLE WITH AS YOU WRESTLE THIS BEAST.

THIS IS

[01:15:01]

NOT EASY.

WE SAW THE EVIDENCE OF WHAT YOU'RE DOING WITH WATER SUPPLIES, UH, ADMIRABLY, AND WE FACE THE SAME TYPE OF TASK HERE.

UM, YOU'LL LOOK BACK IN COMING DECADES AND WISH YOU HAD DONE MORE.

THANK YOU FOR YOUR LEADERSHIP.

THANK YOU, PETE.

ANY OTHER PUBLIC COMMENTS? GREAT.

DIANA, DID YOU NEED TO WRAP UP? ARE YOU GOOD? OKAY.

UM, SO WE, LET'S SEE.

OH, ANY COMMISSIONER COMMENTS? THANK YOU.

UM, THANK YOU, UH, PETE FOR, FOR BEING HERE, AND THAT WAS EXCELLENT.

I APPRECIATE THE WORK THAT YOU'RE DOING AT THE GROUND AND IN LONG BEACH.

GLAD YOU'RE LONG BEACH RESIDENT AND ALSO INVOLVED WITH LEADERSHIP LONG BEACH.

THAT'S GREAT.

UM, DIANA, THAT IS EXCELLENT.

I THINK IT'S, I'M REALLY SUPPORTIVE OF THIS.

UM, I THINK I, I LIKE THE FACT THAT I WANNA BE MORE AGGRESSIVE.

I THINK IT'S, IT'S REALLY, I WANNA LEARN ABOUT MORE ABOUT THIS.

UH, IT'S SUCH AN IMPORTANT, UH, ISSUE RIGHT NOW FOR US.

UM, YOU SAID SOMETHING ABOUT THE PROJECT HAS STALLED WITH EDISON.

SO WE'RE THE, WE'RE EDISON'S LARGEST CUSTOMER.

IS THERE ANY WAY WE CAN GET THAT BACK ON TRACK? WE'RE STILL SPEAKING WITH EDISON.

UM, BUT BEFORE WE, OR WE AS LONG BEACH UTILITIES WOULD REMOVE ANY EXISTING NATURAL GAS PIPELINE OUT OF THE GROUND, WE WOULD NEED TO DO OUR OWN STUDY, OF COURSE, BRING THE DECISION BEFORE THIS BOARD TO SEE IF THIS BOARD WOULD BE INTERESTED IN PULLING NATURAL GAS PIPELINE OUT OF THE GROUND, WHICH MEANS THAT WE WOULD BE TURNING OUR CUSTOMERS OVER TO CURRENTLY SOUTHERN CALIFORNIA EDISON FOR THEIR ENERGY USE.

UM, AND AT THIS POINT, UM, WE'VE REACHED, I SUPPOSE WE'VE REACHED A PLACE WHERE, UM, THAT DECISION IS UNABLE TO BE MADE WITH THE INFORMATION THAT HAS BEEN SHARED AGAIN, BECAUSE, UM, WHILE LONG BEACH UTILITIES IS, HAS NO REAL POSITION ON DECOMMISSIONING, OF COURSE, WE'RE TRYING TO, OUR GOAL IS TO MEET STATE CLIMATE POLICIES IN THE MOST RESPONSIBLE MANNER POSSIBLE, WHILE MAINTAINING AN AFFORDABLE ENERGY SOURCE FOR OUR CUSTOMERS.

AND OF COURSE, OUR SAFE AND RELIABLE NATURAL GAS PIPELINE SYSTEM FOR AS LONG AS WE MANAGE IT.

UM, AND RIGHT NOW WE DON'T HAVE ANY INFORMATION FROM EDISON THAT WOULD CAUSE US TO MAKE ANY CHANGES TO OUR NATURAL GAS DECOMMISSION, OR, I'M SORRY, OUR NATURAL GAS DISTRIBUTION SYSTEM DESPITE, UM, I, I THINK SOME AT EDISON'S INTEREST IN, IN DECOMMISSIONING.

SO I THINK I WAS A FEW STEPS BACK.

YOU'RE, YOU'RE, YOU'RE REALLY WAY AHEAD OF ME AND, AND I APPRECIATE THAT.

BUT, UM, WE ARE THE LARGEST CITY THEY SERVE.

THERE SHOULD BE SOME SORT OF, IF THEY WANT, IF EDISON WANTS TO DO THIS, AND I'M ASSUMING THEY'RE TALKING TO A LOT OF DIFFERENT AGENCIES AND CITIES, MUNICIPALITIES.

NO.

OH, REALLY? OKAY.

SO THEN WHAT CAN WE, HOW CAN WE GET THEM TO, UM, TO COME TO THE TABLE WITH MORE AND, AND MAYBE ARE WE DOING IT AT VILLAGES? ARE WE DOING A PILOT PROGRAM? ARE WE, YOU KNOW, I, I THINK EDISON WILL BECOME, UM, A PARTNER IN THE GTI WORK THAT WE'RE DOING.

SO RATHER THAN, THAN I SUPPOSE TO EXPLORE DECOMMISSIONING FROM, FROM THE WYOMING BEACH UTILITIES PERSPECTIVE, OUR FOCUS AGAIN IS ON THE SAFETY AND RELIABILITY OF OUR EXISTING NATURAL GAS PIPELINE DISTRIBUTION SYSTEM.

AND THEN THE CARETAKING AND, UM, ACCURATE INFORMATION SHARING WITH OUR CUSTOMERS, WHICH ARE COMMUNITY PARTNERS.

SO THAT IS OUR PRIMARY FOCUS.

AND THE GTI STUDY WILL HELP US DEVELOP A FRAMEWORK TO HAVE THOSE CONVERSATIONS WITH ACTUAL DATA AND STATISTICS.

AND I, I THINK THAT WILL PUT US IN A BETTER CON, UM, PLACE TO HAVE THAT CONVERSATION WITH EDISON.

UM, THE, THE PROJECT WITH EDISON REALLY WAS JUST A NON-DISCLOSURE AGREEMENT.

EDISON, OF COURSE, IS INTERESTED IN DECOMMISSIONING BECAUSE OF THE MARKET SHARE GROWS.

UM, AND WE NEED A LOT MORE DATA BEFORE, UM, WE'RE ABLE TO SIMPLY PULL PIPE OUT OF THE GROUND.

NATURAL GAS OUTAGES IN THE SAME WAY THAT SOMETIMES WE SEE ELECTRICAL OUTAGES.

SO, UM, I APPRECIATE ALSO THE GTI ENERGY STUDY WORK THAT'S BEING DONE, UM, SPECIFICALLY WITH THE EQUITY IMPACTS ON DISADVANTAGED COMMUNITIES.

AND I REALLY APPRECIATE, UM, UH, DR.

CLIMATE BEING HERE ALSO.

UM, THE GOOD WORK THAT'S BEING DONE, COMMUNITY OUTREACH IS GONNA BE EXTREMELY IMPORTANT IN THIS BECAUSE, UM, ALTHOUGH IT'S A GOOD THING, THERE'S A LOT OF TRUST ISSUES, ESPECIALLY WITH THE FIRES THAT HAVE HAPPENED.

AND I WOULD ASSUME THAT THERE'S GONNA BE A LOT OF QUESTIONS.

SO YOU'VE GOT THE FIRE, FIRE ISSUE, BUT YOU ALSO HAVE, WHAT ARE THE NEXT, WHAT'S THE NEXUS BETWEEN WATER THAT, YOU KNOW, IN TERMS OF GOING ELECTRIC AT A LARGER SCALE? THERE'S A, YOU KNOW, THE NEXUS BETWEEN WATER AND ELECTRICITY.

IS THERE AN ISSUE THERE? THE, THE ISSUE IS REALLY ENERGY RELIABILITY, UM, AND, UM, THE OPTIONS FOR, FOR THAT.

SO, UM, AGAIN, WE GO BACK TO NATURAL GAS BEING AN EXTREMELY AFFORDABLE AND RELIABLE SOURCE OF ENERGY.

WE DO NOT SEE

[01:20:01]

SO THIS STUDY IS GONNA HOPEFULLY PROVIDE A LOT OF ANSWERS TO A LOT OF THE QUESTIONS THAT ARE ON YOUR SLIDE.

HOW LONG, I MEAN, IT SAYS NINE MONTHS ON THE LETTER.

DO YOU ANTICIPATE THE STUDY TO BE COMPLETED IN NINE MONTHS? WHERE, WHERE DO YOU THINK THIS GOES AND WHAT ARE THE NEXT STEPS? THE STUDY IS A, A STUDY TO PROVIDE US, HOPEFULLY WITH A FRAMEWORK FOR DECISION MAKING.

I DON'T ENVISION THAT THE STUDY WILL PROVIDE US WITH ANY RECOMMENDATIONS FOR WHAT TO DO.

UM, BUT RIGHT NOW, UH, IN THE CONVERSATIONS THAT ARE BEING HAD AT THE CPC AND IN OTHER SPACES, AND YOU'LL LIKELY SEE MORE OF IT AS THE CPUC CONDUCTS COMMUNITY MEETINGS, UM, IN DIFFERENT AREAS OF THE STATE ABOUT DECOMMISSIONING THOSE PARTICULAR NEIGHBORHOODS.

THERE ARE A LOT OF QUESTIONS ABOUT WHAT DOES THAT MEAN FOR ME AS A CUSTOMER? AND THOSE, THE ANSWERS TO THOSE QUESTIONS WE DON'T HAVE YET, BUT WE BELIEVE THAT IT'S, UM, FUNDAMENTAL TO BEING ABLE TO ANSWER THOSE QUESTIONS BEFORE WE CAN EVEN GO OUT TO THE COMMUNITY SO THAT THEY HAVE SOME REAL INFORMATION THAT IS, UM, BASED ON DATA AND STATISTICS AND THE SYSTEM THAT SERVES THEM.

BECAUSE SOMETHING THAT, UM, MAY BE APPLICABLE TO SAN DIEGO PER SE, MAY NOT APPLY TO LONG BEACH BECAUSE, UM, SEMPRA ENERGY MANAGES PG E I'M SORRY, UM, SOCALGAS MANAGES, UM, THAT AREA DOWN THERE.

AND, AND THEIR SYSTEM IS FUNDAMENTALLY DIFFERENT THAN OURS IN, IN MANY WAYS.

ANY ADDITIONAL COMMENTS? I WOULD JUST SAY IT'S A REALLY IMPORTANT STEP FOR OUR CITY TO UNDERSTAND THE WHOLE CITY, NOT JUST A NEIGHBORHOOD.

AND SO I DEFINITELY SUPPORT THIS.

I, I SUPPORT IT AS WELL.

UH, IT'S IMPORTANT TO GATHER THE INFORMATION, UM, THAT IT'S GONNA TAKE TO GIVE THIS BOARD WARM FUZZIES, UM, MOVING FORWARD.

UM, IT'S, IT'S A BIG DEAL.

UM, IT'S, IT, IT, REASONABLE PEOPLE CAN, CAN DISAGREE ON IT, BUT, UH, IT, IT MAKES A LOT OF SENSE FOR THE FUTURE.

UM, HOWEVER, THERE IS SOME, YOU KNOW, REALLY CRITICAL, UM, INDIVIDUAL GROUND LEVEL, UH, CHANGES THAT ARE GOING TO NEED TO TAKE PLACE AND, AND CHANGE IS DIFFICULT FOR PEOPLE.

UM, AND, YOU KNOW, IT'S, I HATE TO PUT A, A BURDEN ON OUR RATE PAYERS, UM, UH, CUSTOMERS THAT, YOU KNOW, THEY'RE UNABLE TO, YOU KNOW, TO TAKE ON.

SO IT'S, THIS IS GREAT.

WE NEED STUDIES TO GET TO THE BOTTOM OF THESE QUESTIONS AND I SUPPORT IT.

SO THANK YOU VERY MUCH, UH, SEEING THIS AS A RESOLUTION.

UM, I'LL CALL ON DINA, PLEASE FOR A ROLL CALL.

VOTE VICE PRESIDENT CORDERO.

YES.

SECRETARY PARKIN.

COMMISSIONER MCGUIRE? YES, PRESIDENT SCOTT.

AYE, THANK YOU.

NUMBER SEVEN, RECEIVE AND FILE THE MARCH 5TH INFRASTRUCTURE COMMITTEE REPORT.

THE RESOLUTION PASSES.

UH, THANK YOU ALL FOR, FOR ATTENDING AND, AND, UH, AND SPEAKING.

AND THANK YOU AGAIN, PETE.

UH, OKAY, MOVING ON.

ITEM, UH,

[7. 26-54634 Recommendation to receive and file March 5, 2026 Infrastructure Committee report. Suggested Action: Approve recommendation. ]

UH, IN ORDER TO HEAR THE REPORT, MAY I PLEASE HAVE A MOTION? THANK YOU.

AND A SECOND, SECOND, I CALL ON SECRETARY PARKIN FOR THE REPORT.

ANY QUESTIONS? HOPEFULLY NONE.

I'M GONNA GIVE THE REPORT FROM THE MARCH 5TH INFRASTRUCTURE COMMITTEE MEETING.

UM, AL AUSTIN WAS A CHAIR, AND HE'S, UH, COMMISSIONER AUSTIN IS NOT PRESENT TODAY, SO BEAR WITH ME.

UM, ON MARCH 5TH, THE COMMITTEE RECEIVED A PRESENTATION ON GAS REGULATORY COMPLIANCE STAFF, PROVIDED AN OVERVIEW OF THE REGULATORY FRAMEWORK GOVERNING MUNICIPAL GAS BY GAS, ISMA PIPELINE, AND HAZARDOUS MATERIAL SAFETY ADMINISTRATION.

AND DISCUSSED, UH, JUST A TREMENDOUS AMOUNT OF WORK THAT THEY'RE DOING ON THE GAS SAFETY SYSTEM SIDE, UM, INCLUDING THE OPERATIONS AND MAINTENANCE MANUAL, THE DISTRIBUTION INTEGRITY MANAGEMENT PLAN, OPERATOR QUALIFICATION, THE DRUG TESTING, ALCOHOL PROGRAMS, ET CETERA.

IT, IT WAS REALLY, REALLY INFORMATIVE.

GREAT JOB BY STAFF.

I APPRECIATE ALL THE INFORMATION.

AND THEN WE ALSO RECEIVED ANOTHER GREAT PRESENTATION ON THE WATER SYSTEM OVERVIEW AND THE, UM, POTABLE WATER SYSTEM, OUR SUPPLY SOURCES, UM, DEMAND TRENDS, KEY INFRASTRUCTURE COMPONENTS AND GROUNDWORK WELLS, TREATMENT FACILITIES.

I MEAN, JUST A REALLY GOOD PICTURE OF ALL THE DIFFERENT THINGS AND HOW WE GET WATER AND OUR PUMPING CAPACITY, ET CETERA, AND, AND THE DIVIDE BETWEEN THE CITY OF THE MET WATER AND OUR WATER.

SO, UM, A LOT OF ISSUES THERE TOO.

SO JUST THANK YOU TO STAFF FOR A GREAT JOB.

UM, APPRECIATE IT.

AND THAT IS MY REPORT.

THANK YOU SO MUCH.

UH, I WOULD ECHO YOUR REMARKS.

IT WAS QUITE FASCINATING.

UH, LET'S SEE.

UH, DO WE HAVE ANY PUBLIC COMMENTS ON THAT ISSUE ON THE INFRASTRUCTURE COMMITTEE REPORT? ANY COMMISSIONER COMMENTS? SEEING

[01:25:01]

NONE.

ALL THOSE IN FAVOR, PLEASE SAY AYE.