Sustainability, City Light, Arts and Culture Committee 8/16/2024

Call to Order THE MEETING OF SUSTAINABILITY, CITY LIGHT, ARTS AND CULTURE COMMITTEE WILL COME TO ORDER. IT IS 9:31 A.M. I AM CHAIR OF THE COMMITTEE. WILL THE CLERK PLEASE CALL THE ROLL? >> [ ROLL CALL ] >> THERE ARE THREE MEMBERS PRESENT. >> THANK YOU. IF THERE IS NO OBJECTION, THE AGENDA WILL BE ADOPTED. HEARING NO OBJECTION. Public Comment THE AGENDA IS ADOPTED. WE WILL NOW OPEN THE HYBRID PUBLIC COMMENT PERIOD. PUBLIC COMMENTS SHOULD RELATE TO ITEMS ON TODAY'S AGENDA AND WITHIN THE PURVIEW OF THIS COMMITTEE. HOW MANY SPEAKERS ARE SIGNED UP TODAY? >> WE HAVE ZERO REMOTE SPEAKERS AND ONE IN PERSON SPEAKER. >> GREAT. EACH SPEAKER HAS TWO MINUTES. WE WILL START WITH THE ONE IN PERSON SPEAKER. QUICK REMINDER, PUBLIC COMMENTS ARE TWO MINUTES . WITHIN 10 SECONDS LEFT OF YOUR TIME, THE MIC , YOU WILL HEAR HR -- CHINE, AND YOUR MIC WILL BE MUTED. THE PUBLIC COMMENT PERIOD IS NOW OPEN. WE WILL BEGIN WITH THE FIRST SPEAKER. >> THE FIRST IN PERSON SPEAKER IS ALEX ZIMMERMAN. >> LET ME GET THE TIMER READY. >> ONE MOMENT. MY APOLOGIES. >> MY NAME IS ALEX IMMERMAN. A COME TODAY BECAUSE WHAT I SEE RIGHT NOW IN SEATTLE. FOR THE LAST 20 YEARS [ INAUDIBLE ] NOTHING TO DO WITH AMERICANS. THERE ARE FUNDAMENTAL CHANGES FOR THE LAST 20 YEARS. FOR THE LAST 10 YEARS THEY JUMP OUT TOTALLY. WE AS A PEOPLE, BY AND FOR THE PEOPLE. [ INAUDIBLE ] NOTHING TO AMERICA. AMERICAN CITY. A COUPLE OF DAYS AGO WE HAD A MOVIE COME TO MARKET, SEATTLE NUMBER ONE, STUPID, IDIOTIC CITY IN AMERICA. THIS IS WHY I COME AND SPEAK EVERY DAY HERE FOR MANY YEARS. SO GUYS, HOW CAN WE CHANGE THIS? HOW CAN WE BRING SEATTLE BACK TO AMERICAN CULTURE? WHAT IS ESTABLISHED FOR 250 YEARS? I HAVE A VERY SIMPLE.. WE NEED OPEN ROOM IN CITY HALL. FROM 9:00 TO 9:00 SO PEOPLE CAN COME AND SPEAK WITHOUT CONTROLLING THIS CHAMBER. BECAUSE THE CHAMBER WE HAVE RIGHT NOW HERE IS A PURE , IDENTICAL , I REPEAT, IDENTICAL TO GESTAPO. CITY CODE. YOU CHAIR OF THIS COUNCIL, IT IS YOUR DUTY , BY DEFINITION, TO BRING SEATTLE BACK TO NORMAL CULTURE ALL AMERICA. STOP THIS IDIOTIC SITUATION SO WE LOOK LIKE A GESTAPO FASCIST. STAND UP, AMERICA. STANDUP YOU. THANK YOU VERY MUCH. >> THANK YOU, MR. SIMMERMAN. -- ZIMMERMAN. MEMBERS OF THE PUBLIC ARE ENCOURAGED TO SIGN UP AT THE PODIUM OR EMAIL THE COUNCIL. ARE THERE ANY ADDITIONAL SPEAKERS? >> THERE ARE NOT. THAT WE WILL NOW PROCEED TO THE ITEMS A BUSINESS. PLEASE READ THE FIRST Res 32144: A resolution adopting the 2024 Food Action Plan ITEM INTO THE RECORD. >> AGENDA ITEM 1, RESOLUTION 32144, A RESOLUTION ADOPTING THE 2024 FOOD ACTION PLAN AND DIRECTING THE OFFICE OF SUSTAINABILITY AND ENVIRONMENT TO CONTINUE INTERDEPARTMENTAL COORDINATION, IMPLEMENTATION, AND MONITORING OF THE FOOD ACTION PLAN. FOR BREATHING, DISCUSSION AND POSSIBLE VOTE. >> THANK YOU. WOULD THE PRESENTERS PLEASE COME TO THE TABLE? ONCE READY, INTRODUCE YOURSELVES AND GET STARTED. >> GOOD MORNING, MEMBERS OF THE COMMITTEE AND MADAME CHAIR. I AM THE DIRECTOR OF THE OFFICE OF SUSTAINABILITY AND ENVIRONMENT. I AM JOINED BY OSC AND HSD. WE ARE HERE TO PRESENT ON THE FOOD ACTION PLAN. WITHOUT FURTHER ADO, I WILL JUMP INTO THE PRESENTATION. TODAY'S TOPIC IS TO DISCUSS THE UPDATED FOOD ACTION PLAN AND THE PROPOSAL FOR THE CITY COUNCIL TO EXPRESS SUPPORT OF AN UPDATED PLAN BY ADOPTING A RESOLUTION. WE ARE GOING TO REALLY BE TALKING ABOUT THE THEME OF HOW WE CREATE A HEALTHY AND ROBUST LOCAL FOOD SYSTEM THAT CONTRIBUTES TO A SUSTAINABLE AND LIVABLE CITY FOR EVERYONE IN OUR COMMUNITY. THIS IS AN AREA WHERE SEATTLE HAS NOW DECADES OF LEADERSHIP. I KNOW MEMBERS OF THIS COUNCIL, COUNCILMEMBER MORALES AND COUNCIL MEMBERS STRAUSS, YOU HAVE A WONDERFUL LEADER FOR A LONG TIME NOW. WE APPRECIATE YOUR LEADERSHIP AS WELL, MADAME CHAIR. WE WILL MOVE ON TO THE NEXT SLIDE. JUST AS A REMINDER, YOU HAVE SEEN THIS BEFORE. OSC WORKS TO ADVANCE THE ONE SEATTLE CLIMATE JUSTICE AGENDA. OUR FOOD WORK REALLY NESTS UNDER REDUCING CLIMATE POLLUTION. THERE IS A CLIMATE CHANGE AND POLLUTION ELEMENT TO OUR WORK, AS WELL AS THE HEALTHY RESILIENT COMMUNITIES. IF YOU HIT THE ANIMATION, YOU WILL SEE ALL OF THE POLICY AREAS. THE FOOD POLICY PROGRAMS NESTS UNDER THIS. THE ROLE OF OSC IN PARTNERSHIP WITH HSD IS TO COORDINATE THIS WORK ACROSS THE CITY AND WORK WITH OUR COMMUNITY. NEXT SLIDE. AND SO, THE FOOD ACTION PLAN THAT WILL BE DISCUSSED TODAY IS REALLY THE CITY'S SHARED VISION FOR OUR COMMUNITY ACROSS CITY DEPARTMENTS , AND IT IS OUR ROADMAP FOR EQUITABLE, SUSTAINABLE AND RESILIENT LOCAL FOOD SYSTEMS. IT OUTLINES OUR STRATEGIES AND ACTIONS TO INCREASE FOOD SECURITY, SUPPORT URBAN AGRICULTURE, LOCAL FOOD BUSINESSES AND PREVENT FOOD WASTE. BRIDGET AND SEAN WILL GET INTO THOSE STRATEGIES IN DEPTH. AGAIN, THIS IS AN AREA WHERE WE HAVE BEEN A LEADER. WE HAVE HAD A ACTION PLAN SINCE 2012. ALTHOUGH IT HAS NOT BEEN UPDATED SINCE THEN. THIS IS THE FIRST UPDATE IN QUITE SOME TIME. OSC AND HSD LED THE PROCESS TO MAKE SURE OUR PLAN REFLECTS OUR CHANGED CONTEXT AROUND THE POST COVID FOOD WORLD, ISSUES RELATED TO KITE -- CLIMATE RESILIENCE, AND ALSO EQUITY. SO FOR OVER 10 YEARS, THIS FOOD ACTION PLAN HAS BEEN THE BACKBONE FOR ALL OF OUR WORK. IT HAS LED TO A HIGHLY COORDINATED, EFFICIENT AND COLLABORATIVE SYSTEM THAT HAS YIELDED IMPACTFUL AND INNOVATIVE PROGRAMS ACROSS THE CITY. I WILL JUST NAME CHECK A COUPLE OF THEM. OF COURSE, THE FRESH BOOKS PROGRAM, WHICH PROVIDES VOUCHERS FOR OVER 12,000 HOUSEHOLDS FOR HEALTHY FRUITS AND VEGETABLES, FOOD RESCUE INNOVATION IN PARTNERSHIP WITH SPU TO PREVENT FOOD WASTE, THE PRESCHOOL PROGRAM THAT CREATES ACCESS FOR HEALTHY FOODS FOR 47 PRESCHOOLS AROUND THE CITY, AND SO MUCH MORE. WE WILL GET INTO THAT IN DEPTH. THE UPDATED 2024 PLAN IS A CONTINUATION OF THIS REALLY IMPORTANT WORK. AND SO, THE ACTION TODAY IS TO GO THROUGH THE FOOD ACTION PLAN, AND THEN THE ADOPTION OF A RESOLUTION THAT REALLY HELPS THE MAYOR, THE COUNCIL, COMMUNITY, DEPARTMENTS REALLY BE ON THE SAME PAGE AROUND THIS LONG-STANDING FRAMEWORK THAT GUIDES OUR INVESTMENTS AND OUR PROGRAMMING. AND SO, WITH THAT, I WILL HEAD OVER TO BRIDGET AND SEAN TO GIVE YOU AN OVERVIEW. >> THANK YOU. I WILL START BY SHARING SOME INFORMATION ON THE NEEDS AND OPPORTUNITIES WE ARE FACING IN OUR LOCAL FOOD SYSTEM RELATED TO FOOD INSECURITY, INFLATION AND THE IMPACT THAT FOOD HAS ON THE ENVIRONMENT. THIS IS A SMALL SNAPSHOT OF THE DATA WE CONSULTED AS THE UPDATED THE FOOD ACTION PLAN. WE KNOW THAT RIGHT NOW IN SEATTLE 10% OF ADULTS EXPERIENCE FOOD INSECURITY, BUT THE RATES ARE MUCH HIGHER FOR PEOPLE OF COLOR. FOOD INSECURITY MEANS NOT HAVING ENOUGH ACCESS TO FOOD OR FOOD OF ADEQUATE QUALITY TO MEET BASIC NEEDS. MEANWHILE, TODAY'S HIGH FOOD PRICES ARE MAKING IT EVEN HIGHER HARDER FOR LOWER INCOME AND FOOD INSECURE HOUSEHOLDS. DATA FROM THE CONSUMER PRICE INDEX SHOWS THAT FOOD PRICES ROSE 25% BETWEEN 2019 AND 2023. WE ARE SEEING THE IMPACT OF THIS IN REAL TIME IN OUR COMMUNITIES. FOOD BANKS AND MEAL PROGRAMS ARE EXPERIENCING EXTREMELY HIGH DEMAND. SEAN AND I JUST CONSOLED THE DATA FROM THE SNAP PROGRAM IN KING COUNTY AND ENROLLMENT IS UP 18% SINCE JANUARY 2022. LASTLY, FOOD OF FOOD WAYS HAVE MAJOR IMPACTS ON THE ENVIRONMENT . THE FOOD WE CONSUME IN SEATTLE MAKES UP 24% OF SEATTLE'S CONSUMPTION BASED GREENHOUSE GAS EMISSIONS. WE RECOGNIZE THESE ARE VERY COMPLEX ISSUES AND THE FOOD ACTION PLAN CANNOT SOLVE FOR ALL OF THESE PROBLEMS, WHICH ARE SYMPTOMATIC OF SOCIAL, ECONOMIC AND ENVIRONMENTAL ISSUES WE FACE NATIONALLY AND GLOBALLY . BUT WE CAN, AND DO, NEED TO ADDRESS THEM IN OUR CITY TO MINIMIZE IMPACTS ON RESIDENTS. FOR DECADES , AS THE DIRECTOR MENTIONED, THE CITY HAS INVESTED IN PROGRAMS TO ADDRESS THESE ISSUES. THE CORE FOOD PROGRAM TO FOCUS ON FOOD SECURITY AND ACCESS, FOOD WASTE PREVENTION AND URBAN AGRICULTURE, AND THEY ARE MANAGED BY THE FIRE DEPARTMENT YOU CAN SEE LISTED HERE. EACH REALLY IS BRINGING SPECIALIZED AND UNIQUE EXPERTISE TO THIS WORK. A KEY POINT WE WANT TO HAVE YOU TAKE AWAY FROM TODAY'S PRESENTATION IS THAT THE UPDATED PLAN LARGELY REFLECTS THIS EXISTING AND ONGOING WORK BY THESE DEPARTMENTS. IN ADDITION TO THESE CORE FOOD PROGRAMS I MENTIONED, WE ALSO HAVE ALIGNED PROGRAMS. THOSE PROGRAMS ME THAT THE FOOD IS NOT NECESSARILY THE PRIMARY FOCUS, BUT THE WORK IMPACTS THE LOCAL FOOD SYSTEM AND THE GOALS OF THE FOOD ACTION PLAN. WE HAVE ALIGNED PROGRAMMING IN OFFICES OF ECONOMIC DEVELOPMENT, LABOR STANDARDS AND PLANNING AND COMMUNITY DEVELOPMENT. I HAVE LISTED SOME OF THE ISSUE AREAS HERE THEY ARE LEADING RELATED TO SMALL BUSINESS SUPPORT, ZONING AND LABOR STANDARDS. BEFORE WE GET DEEPER INTO THE PLAN 'S CONTACT, WE WILL GO THROUGH A QUICK TIMELINE OF OUR PROCESS TO UPDATE IT. WE STARTED IN 2019, BUT WE HAD TO PAUSE DURING COVID. DURING THIS TIME, WE PIVOTED TO EMERGENCY RESPONSE EFFORTS. DURING COVID, HST AND OSC WORKED COLLABORATIVELY TO MANAGE OVER $31 MILLION IN THE ONE TIME INVESTMENTS IN FOOD SECURITY. IN LATE 2021, AS THE CITY TRANSITIONED INTO COVID RECOVERY, WE RESUMED THE UPDATE PROCESS AND STARTED TO REFRESH THE FRAMEWORK FOR THE UPDATED PLAN. THIS WORK INCLUDED A LITERATURE REVIEW, INTERVIEWS WITH SUBJECT MATTER EXPERTS , DEEP COMMUNITY ENGAGEMENT WITH OVER 250 COMMUNITY LEADERS, AND TWO RACIAL EQUITY TOOLKITS. IN 2022, WE BRIEFED APARTMENT DIRECTORS, THE SUBJECT -- CITY BUDGET OFFICE AND MAYORS OFFICE PRIOR TO THE PUBLIC COMMENT PERIOD ON AN EARLIER VERSION OF THE PLAN. DURING THIS TIME WE ALSO WORKED WITH THE OFFICE OF INTERGOVERNMENTAL RELATIONS TO ENGAGE WITH THE TRIBES AND GIVEN OPPORTUNITY FOR FEEDBACK FROM THEM . AFTER WE SUBMITTED THE DRAFT PLAN TO REFLECT THE PUBLIC COMMENT WE RECEIVED, WE DID ANOTHER ROUND OF REVIEW, AND THIS BRINGS US TO THIS YEAR, 2024. IN FACT, YESTERDAY WE HAD , THANK YOU COUNCILMEMBER WOO, YOU SAW THE OUTPOURING OF COMMUNITY PARTNERS WHO ARE AT THE HEART OF THIS WORK. TODAY WE PRESENT TO YOU FOR YOUR YOUR CONSIDERATION A RESOLUTION FOR ADOPTION. NOW WE'RE GOING TO GET INTO THE PLAN CONTENT. LIKE THE UPDATED FOOD ACTION PLAN , EXCUSE ME, LIKE THE ORIGINAL FOOD ACTION PLAN, THIS UPDATE IS A FIVE-YEAR CONTINUATION OF THAT ORIGINAL PLAN. WE HAVE THE SAME FOUR GOALS REPRESENTED IN THE UPDATE YOU SEE HERE. INCREASING COMMUNITY FOOD SECURITY, SUPPORTING LOCALLY GROWN AND TRADITIONAL FOODS, PREVENTING FOOD WAYS AND CLIMATE POLLUTION, AND ADVANCING EQUITABLE ECONOMY. TO ADVANCE THESE GOALS, YOU WILL SEE ON THE NEXT LINE THAT WE HAVE IDENTIFIED EIGHT STRATEGIC PRIORITIES. ALL OF THE ACTIONS IN THE UPDATED PLAN ARE ORGANIZED AROUND THESE CATEGORIES. SEAN AND I WILL NOW WALK YOU THROUGH EACH OF THESE AT A VERY HIGH LEVEL TO GIVE YOU A SENSE OF WHAT THEY ADDRESS. THE FIRST STRATEGIC PRIORITY IS COMMUNITY FOOD SECURITY. THIS FOCUSES ON ACCESS TO NUTRITIOUS, AFFORDABLE AND CULTURALLY RELEVANT FOOD. THE ACTIONS IN THIS CATEGORY INCLUDE ALL OF OUR EXISTING FOOD PROGRAMS THAT ARE OFFERED IN PLACES WHERE SEATTLE RESIDENTS OF ALL AGES ARE ALREADY ACCESSING SERVICES LIKE PRESCHOOLS, SCHOOLS, HEALTHCARE, AND COMMUNITY ORGANIZATIONS. STRATEGIC PRIORITY NUMBER TWO IS LAND ACCESS IN USE . THIS IS ABOUT FOCUSING ON EXISTING WORK TO ENABLE COMMUNITY GROUPS TO GROW FOOD ON PUBLIC GREEN SPACES. SOME EXISTING EXAMPLES OF THIS INCLUDE OUR P-PATCH, BEACON FOOD FOREST AND THE REINDEER URBAN FARM AND WETLAND. STRATEGIC PRIORITY NUMBER THREE IS FOCUSED ON FOOD RELATED EDUCATION AND TRAINING. THE ACTIONS IN THIS CATEGORY LEVERAGE OUR EXISTING FOOD PROGRAMS TO PROVIDE CULTURALLY RELEVANT AND EXPERIENTIAL FOOD AND NUTRITION EDUCATION. WE OFTEN SEE MANY COMMUNITY LED GRANT PROGRAM FUNDED BY THE CITY THAT HAVE A STRONG FOOD AND NUTRITION EDUCATION COMPONENT. STRATEGIC PRIORITY NUMBER FOUR IS FOCUSED ON THE LOCAL FOOD ECONOMY. THIS CATEGORY IS LEVERAGING THE CURRENT EFFORTS TO SUPPORT FOOD PROJECTS THAT PROMOTE EQUITABLE ECONOMIC DEVELOPMENT AND TECHNICAL ASSISTANCE PROVIDED BY OFFICE OF ECONOMIC DEVELOPMENT TO SO MANY SMALL FOOD BUSINESSES. SOME OF THEM WERE AT THE EVENT YESTERDAY SERVING UP AMAZING SMALL BITES. THIS CATEGORY IS ALSO AROUND REFERENCING THE EXISTING LABOR LAWS IN SEATTLE AND PROTECTIONS FOR LOW-WAGE WORKERS, INCLUDING FOOD SERVICE WORKERS. THERE IS APPROXIMATELY 23,000 FOOD SERVICE WORKERS IN THE CITY. I WILL TURN IT OVER TO JOHN. >> THANKS, BRIDGET. STRATEGIC PRIORITY NUMBER FIVE IS FOCUSED ON LOCAL SUPPLY CHAINS. IT IS AN ESPECIALLY IMPORTANT TOPIC SINCE COVID BEGAN. THE CITY WORK IN THIS AREA INCLUDES CURRENT EFFORTS TO SUPPORT LOCAL FOOD SYSTEM INFRASTRUCTURE AND TO SHIFT FOOD PURCHASING TWO MORE LOCALLY GROWN, ENVIRONMENTALLY SUSTAINABLE AND EQUITABLY PURCHASED FOOD. STRATEGIC PRIORITY NUMBER SIX FOCUSES ON PREVENTING FOOD WASTE , ALL ACTIONS IN THIS CATEGORY ARE LED BY SEATTLE PUBLIC UTILITIES AND FOCUS ON THEIR EFFORTS TO PREVENT FOOD WASTE FOR RESIDENCES AND BUSINESSES. THIS SECTION ALSO INCLUDES ACTIONS FOCUSED ON FOOD RESCUE . FOOD RESCUE IS ABOUT INCREASING THE QUANTITY OR QUALITY OF DONATED FOOD GOING TO PEOPLE IN NEED, WHILE THE SAME TIME, REDUCING OVERALL FOOD WASTE THAT GOES INTO GARBAGE OR COMPOST. STRATEGIC PRIORITY NUMBER SEVEN IS ABOUT REDUCING CLIMATE POLLUTION ASSOCIATED WITH THE FOOD SYSTEM. THE ACTIONS IN THIS CATEGORY LEVERAGE THE CITY'S EXISTING PROGRAMS FOR CLIMATE ACTION THROUGH EFFORTS LIKE SHIFTING FOOD SPENDING IN OUR PROGRAMS REVIEWED BETTER FOR THE ENVIRONMENT AND FOR THE CLIMATE. OSC, HST AND SPU HAVE TEAMED UP FOR FUNDING OPPORTUNITIES TO SUPPORT FUTURE EXPANSION OF THIS WORK WITH EXTERNAL RESOURCES. STRATEGIC PRIORITY NUMBER EIGHT, OUR FINAL PRIORITY, IS FOOD ACTION PLAN STEWARDSHIP ACTIONS IN THIS CATEGORY FOCUS ON CITY EFFORTS LIKE PERFORMANCE TRACKING , STRONG INTERDEPARTMENTAL COLLABORATION, CONTINUOUS IMPROVEMENT, PURSUING EXTERNAL FUNDING, AND CONTINUING TO MONITOR AND ACT ON FEDERAL AND STATE POLICY. WE ARE GETTING TO THE END OF THE PRESENTATION PRACTICE A FEW SLIDES LEFT. THE FOLLOWING TWO SLIDESHOW SCREENSHOTS FROM INTERACTIVE FOOD ACTION PLAN MAP THAT OSC AND THE FOOD ACTION PLAN INTERDEPARTMENTAL TEAM ARE DEVELOPING. THE MAP WILL ENABLE USERS TO LEARN ABOUT SITE LOCATIONS THE CITY SUPPORTED FOOD WORK. USERS WILL BE ABLE TO FILTER LOCATIONS BY STRATEGIC PRIORITY AND APPLY DIFFERENT MAP LAYERS, SUCH AS COUNCIL DISTRICTS. THE MAPS IT SHOULD BE AVAILABLE FOR PUBLIC USE BY 2025. HERE'S AN EXAMPLE OF FOOD SECURITY SERVICES DISPLAYED OVER THE RACIAL AND SOCIAL EQUITY INDEX. FOR EXAMPLE, PURPLE DOTS ON THIS MAP REPRESENT FOOD BANKS AND MEAL DISTRIBUTION SITES. YOU CAN SEE THE SITES ARE IN ALL PARTS OF SEATTLE, BUT ARE CONCENTRATED IN THE AREAS OF HIGHEST EQUITY PRIORITY. ALL THE SITE LOCATIONS ON THIS MAP ARE RELATED TO COMMUNITY FOOD SECURITY, WHICH IS STRATEGIC PRIORITY NUMBER ONE. THE NEXT LINE SHOWS COMMUNITY GARDENING AND FARMING SITES, WHICH ARE RELATED TO STRATEGIC PRIORITY NUMBER TWO ON LAND USE AND ACCESS. FOR EXAMPLE, GREEN DOTS ON THIS MAP REPRESENT A BEPS FOR. THAT RUNS IN ALL PARTS OF SEATTLE, BUT CONCENTRATED IN THE AREAS OF HIGHEST EQUITY OF PRIORITY. WE'RE AIMING FOR THESE MAPS TO BE FINISHED AND READY FOR USE BY NEXT YEAR. WE WANT TO END WITH A FEW NEXT STEPS FOR THE NEAR TERM. WE WILL CONTINUE STEWARDSHIP AND DELIVERY OF THE CITY'S CORE FOOD PROGRAMS, AND WE WILL ALSO CONTINUE DEVELOPING THE MAPS WE JUST LOOKED AT WORK UP AN ONLINE DASHBOARD TO REPORT PROGRESS ON THE PLAN. WE WILL CONTINUE OUR INTERDEPARTMENTAL COLLABORATION, WHICH INCLUDES LOOKING FOR NEW OUTSIDE FUNDING TO SUPPORT THE PRIORITIES. A FEW OF THE PROJECTS WILL BE FOCUSING ON EVEN MORE TO INCLUDE VALUES BASED FOOD PURCHASING, FOOD RESCUE INNOVATION, AND ACTIVATING PUBLIC SPACE FOR NEW COMMUNITY GARDENING. THAT IS THE END OF OUR PRESENTATION. THANK YOU FOR YOUR TIME . EVEN THOUGH THE UPDATED FOOD ACTION PLAN IS A CONTINUATION OF EXISTING WORK, WE THINK IT IS A GREAT OPPORTUNITY TO HIGHLIGHT THE CITY'S COMMITMENT TO THESE IMPORTANT ISSUE AREAS AND ACKNOWLEDGE OUR COMMUNITY PARTNERS, WHO HAVE BEEN CHAMPIONS OF THIS PLAN. IF THERE'S TIME, WE ARE HAPPY TO TAKE QUESTIONS OR COMMENTS. >> GRADE. THANK YOU SO MUCH. COLLEAGUES, ANY QUESTIONS OR COMMENTS? COUNCILMEMBER STRAUSS. >> THANK YOU CHAIR WOO. THANK YOU FOR THIS GREAT PRESENTATION. WHAT I FIND INTERESTING IS WHERE YOU WERE LEAVING OFF WITH THE MAPS. THE INFORMATION. FOOD SECURITY IS REALLY IMPORTANT. ONE OF THE FIRST BUDGET AMENDMENTS I PUT FORWARD WAS ABOUT A FRESH BOX AND EXPANDING OUR ACCESS. IT LEVERAGES THE EBT SYSTEM AND PROVIDES ACCESS TO FRESH FOOD IN THE FARMERS MARKETS. IN THESE LAST FOUR YEARS, I HAVE TALKED TO PEOPLE ABOUT FRESH BOX AND HOW THEY CAN GET SIGNED UP FOR THEM. THE BIGGEST QUESTION IS WHERE TO USE THEM. IT IS NOT REALLY EASY TO ACCESS INFORMATION UNTIL NOW. WITH YOUR NEW MAP. THIS IS REALLY EXCITING, BECAUSE AS I AM LOOKING AT THIS, YOU CAN USE IT FOR RECREATIONAL , IN THAT SENSE, BUT YOU CAN ALSO USE IT FOR MEETING YOUR BASIC NEEDS AND EVERYTHING IN BETWEEN. SOMEBODY REALLY SMART TO ME SAID, IF YOU WANT SOMEBODY TO DO SOMETHING, COME TO THE ACTIVITY, MAKE SURE THERE IS FREE FOOD. THIS IS BEYOND JUST FOOD ACCESS. THIS IS ABOUT COMMUNITY BUILDING, ABOUT A LOT OF DIFFERENT PEOPLE COMING AROUND THE SAME TABLE . THERE'S A LOT YOU CAN GET DONE WITH GOOD FOOD ON THE TABLE. IT BRINGS THESE PEOPLE TOGETHER. IT BRINGS GOOD CONVERSATION. IS SET UP A REALLY GOOD ATMOSPHERE FOR TAKING ON BIG NEW PROJECTS OR HAVING DEEPER RELATIONSHIPS WITHIN THE COMMUNITY. THAT IS WHAT I WAS A BIT STUNNED BY WHAT I WAS HAVING THE BRIEFING WITH YOU EARLIER. I DON'T HAVE ANY QUESTIONS, BECAUSE HE SPENT HALF AN HOUR OR MORE TALKING THROUGH THIS PLAN. I JUST WANTED TO HIGHLIGHT THIS, BECAUSE IT ALLOWS SOMEBODY TO QUICKLY GO TO ONE PLACE AND HAVE ALL THE INFORMATION THEY NEED, RATHER THAN TRYING TO NAVIGATE THE CITY WEBSITE, WHICH I KNOW WE HAVE A NEW I.T. DIRECTOR, I REALLY LIKED THE LAST DIRECTOR, BUT IT WAS NOT AN ALL IN ONE PLACE. NOW IT IS. BIG CONGRATULATIONS TO YOU. AN IMPORTANT STEP FORWARD. BRIDGET, WHEN YOU WERE PRESENTING, IT IS A SMALL BIT, BUT IMPORTANT, WHERE TALKING TO THE SNOQUALMIE TRIBE USED THE TERM ENGAGEMENT RATHER THAN CONSULTATION. MY COLLEAGUES ARE PROBABLY TIRED OF ME TALKING ABOUT THE DIFFERENCE BETWEEN CONSULTATION AND ENGAGEMENT AND THE FACT THE CITY DOESN'T HAVE A FORMAL WAY TO CONSULT GOVERNMENT TO GOVERNMENT WITH FEDERALLY RECOGNIZED TRIBES. I WANTED TO HIGHLIGHT THAT BECAUSE IT IS AN IMPORTANT DISTINCTION. VERY IMPRESSED WITH ALL OF YOUR WORK. THANK YOU FOR THE HALF AN HOUR BRIEFING. I WON'T TAKE ANY MORE OF OUR COMMUNAL TIME BECAUSE I'VE ALREADY ASKED AND HAVE HAD A DEEP CONVERSATION. THANK YOU. >> THANK YOU. COUNCILMEMBER MORALES. >> [ INAUDIBLE ] IN PARTICULAR, WE HAVE BEEN WORKING ON FOOD SECURITY FOR 10, 15 YEARS NOW. THERE WAS A TIME WHEN CITY LEADERS WERE ASKING WHY THE CITY NEEDED A FOOD ACTION PLAN. I THINK IT IS A REALLY SIGNIFICANT STEP TO DEMONSTRATE THAT WE NOT ONLY HAVE ONE, BUT WE'RE TAKING THE TIME TO UPDATE IT AND MAKE SURE WE ARE REALLY ADDRESSING IT IN EVERY WAY POSSIBLE AS A MUNICIPALITY THE FACT THAT WE HAVE CONTINUED AND GROWING FOOD INSECURITY IN THE CITY . REALLY, USING THIS ACTION PLAN AS AN OPPORTUNITY TO SEE WHAT EACH OF OUR DIFFERENT DEPARTMENTS CAN DO TO ADDRESS THOSE NEEDS, WHETHER IT IS FOOD RESCUE OR ELIMINATING AS MUCH AS POSSIBLE FOOD WASTE FROM OUR WASTE STREAM. I REALLY WANT TO THANK ALL OF YOU FOR THIS WORK. IT IS IMPORTANT FOR MANY DIFFERENT REASONS. NOT THE LEAST OF WHICH IS THAT COMMUNITY FOOD SECURITY REALLY DOES TAKE INVESTMENT AND THE WILL FROM A MUNICIPALITY TO MAKE SURE THAT OUR SPEAKERS ARE GETTING SERVED. IT IS NOT JUST ABOUT THE EMERGENCY FOOD SYSTEM, WHICH WAS NEVER INTENDED TO BE A REGULAR WEEKLY GROCERY TRIP FOR PEOPLE, IT WAS REALLY INTENDED TO BE EMERGENCY, AND SO, ALL THESE OTHER PIECES WE ARE WRAPPING AROUND THIS ARE IMPORTANT TO MAKE SURE WE HAVE ACCESS TO P-PATCHES AND COMMUNITY GARDENS AND ALL THE OTHER RESOURCES SUPPORTING THE FARM TO PRESCHOOL PROGRAM SO THAT OUR SMALLEST SEATTLEITES GET ACCESS TO THIS. ALL THESE COMPONENTS CONTRIBUTE TO GREATER FOOD SECURITY. THE CITY OF SEATTLE WAS NOT DOING THIS WORK IN THIS WAY 10 OR 12 YEARS AGO. I AM REALLY EXCITED WE ARE IN THIS SPACE. I'M PROUD TO HAVE BEEN PART OF DRAFTING THE ORIGINAL FOOD ACTION PLAN . I LOOK FORWARD TO WORKING WITH ALL OF OUR CITY DEPARTMENTS TO MAKE SURE WE CONTINUE DOING THIS. THANK YOU FOR WHAT YOU ARE DOING. APPRECIATE IT. THANK YOU, CHAIR, FOR HAVING THIS PRESENTATION. >> THANK YOU. I LOVE THE ENERGY IN THE COMMUNITY AT THE FOOD ACTION PLAN CELEBRATION . HE WAS SO AMAZING TO SEE SO MANY RESERVATION -- RESERVATIONS. TRIBES, SMALL BUSINESSES, RESTAURANTS GATHERED . SO EXCITED AND HAPPY. IN MANY CULTURES, ESPECIALLY MY CULTURE, I AM CHINESE, FOOD IS A LOVE LANGUAGE. WITH MY WORK WITH FOOD AND MEALS IS HOW WE ENGAGE WITH OUR NEIGHBORS. I GO TO P-PATCHES AND HAVE MET PEOPLE WHO ARE UNHOUSED, BUT THEY CHOOSE TO LIVE NEAR THEM BECAUSE THEY CAN COME AND COOK AND BRING FRESH FOOD FROM THE GARDENS AND BE HEALTHY AND CONNECTED TO COMMUNITY. IT IS A POWERFUL -- FOOD IS MEDICINE. I HAVE SO MUCH GRATITUDE FOR YOUR WORK. THANK YOU FOR YOUR LEADERSHIP AND PUTTING TOGETHER THIS PLAN. THE INTERDEPARTMENTA L COLLABORATION ESPECIALLY. AND JUST A WELL-THOUGHT-OUT COMMUNITY ENGAGEMENT. JUST AMAZING YESTERDAY TO SEE SO MANY PEOPLE SO EXCITED. I GREW UP IN SOUTH SEATTLE, A BIG FOOD DESERT. AND REMEMBER AS A KID GOING TO MY LOCAL COMMUNITY CENTER FOR BROWNBAG LUNCHES AND GOING TO THE ELEMENTARY SCHOOL TO GET A MEAL FOR BREAKFAST AND LUNCH. ESPECIALLY FOR YOUNG PEOPLE, BEING HUNGRY IS THE FOUNDATION OF, YOU KNOW, HAVING FOOD AND BEING SET FOR YOUR DAY IS REALLY IMPORTANT. I MOVE THAT THE COMMITTEE ADOPT RESOLUTION 32144. IS THERE A SECOND? >> SECOND. >> MOVED AND SECONDED TO ADOPT RESOLUTION 32144. ANY FURTHER COMMENTS? WILL THE CLERK CALL THE ROLL? >> [ ROLL CALL ] >> THERE ARE THREE IN FAVOR AND NONE OPPOSED IT >> THE MOTION CARRIES. RECOMMENDATION TO ADOPT THE RESOLUTION WILL BE SENT TO THE CITY COUNCIL. THANK YOU. THIS WILL PROBABLY BE HEARD, NOT AT THE NEXT COUNCIL MEETING, BUT THE WEEK AFTER THAT MEETING. THANK YOU FOR ALL YOUR WORK. I LOOK FORWARD TO SEEING WHAT HAPPENS NEXT AND TO HEAR UPDATES OF THE PLAN. THANK YOU. >> THANK YOU SO MUCH. >> WE WILL MOVE ON TO THE NEXT ITEM OF BUSINESS . BUT FIRST, I WANT TO ACKNOWLEDGE WE HAVE A GROUP OF STUDENTS HERE FROM THE DOWNTOWN SCHOOL. YOU ARE JUNIORS. WELCOME . THANK YOU FOR JOINING US TODAY. I HOPE YOU ARE LEARNING A BUNCH . WE JUST TALKED ABOUT THE FOOD ACTION PLAN. IF YOU WANT ME MORE ABOUT THE PLAN, IT IS ON -- YOU CAN GO TO OUR CALENDAR. THE AGENDAS ARE THERE, AND YOU CAN SEE THE PLAN. IT IS VERY COMPREHENSIVE AND COVERS A LOT Res 32146: A resolution relating to the City’s participation in the State of Washington’s Clean Fuels Standard Program OF GROUND. WE WILL MOVE ON TO THE NEXT ORDER OF BUSINESS. WILL THE CLERK PLEASE READ THE SECOND ITEM INTO THE RECORD? >> AGENDA ITEM 2, RESOLUTION 32146, A RESOLUTION RELATED TO THE CITY'S PARTICIPATION IN THE STATE OF WASHINGTON'S CLEAN FUEL STANDARD PROGRAM PROMULGATED UNDER REVISED CODE OF WASHINGTON 78.535.005 ACKNOWLEDGING AND APPROVING THE CITY UP AS PARTICIPATION IN THE PROGRAM AND ACKNOWLEDGING THE INTERDEPARTMENTAL MEMORANDUM OF AGREEMENT REGARDING CITY OF SEATTLE ADMINISTRATION OF WASHINGTON STAY CLEAN FUEL STANDARD PROGRAM FOR BREATHING, DISCUSSION AND POSSIBLE THOUGH. >> GO AHEAD AND INTRODUCE YOURSELVES AND BEGIN WHEN YOU'RE READY. >> THANK YOU SO MUCH. I AM THE GENERAL MANAGER AND CHIEF EXECUTIVE OFFICER FOR SEATTLE CITY LIGHT. >> GOOD MORNING. I AM THE PARTNERSHIP AND POLICY ADVISOR ON SEATTLE CITY LIGHT. >> GOOD MORNING. DIRECTOR OF ELECTRIFICATION AND STRATEGIC TECHNOLOGIES FOR THE -- SEATTLE CITY LIGHT. >> I AM CHIEF CUSTOMER OFFICER AT SEATTLE CITY LIGHT. >> I AM THE CITY FLEET DIRECTOR. >> I AM THE STREETCAR PROGRAM MANAGER FOR THE SEATTLE DEPARTMENT OF PUBLIC/TRANSPORTA TION. >> I AM THE MANAGER OF SPU FACILITIES. >> GOOD MORNING , CHAIR WOO AND COUNCIL MEMBERS. TODAY WE'RE HERE TO PRESENT AN EXCITING NEW PROGRAM EL PROGRAM. THIS IS THE RESULT OF STATE LEGISLATION THAT WAS ADOPTED IN 2021 TO REDUCE CARBON EMISSIONS FROM THE TRANSPORTATION SECTOR. IT IS A COMPLICATED REGULATORY MECHANISM DEVELOPED AND MINISTERED BY THE WASHINGTON DEPARTMENT OF ECOLOGY. I'M SO PROUD OF MICHAEL, TO MY RIGHT , UNDER THE LEADERSHIP OF DAVID , AND THE TEAM FOR WORKING TO THOROUGHLY UNDERSTAND THE PROCESS NEEDED FOR DEVELOPING A PATH FORWARD FOR CITY LIGHT AND OUR OTHER CITY PARTNERS TO MAKE USE OF THESE FUNDS AND BRINGING THIS OPPORTUNITY FORWARD TO YOU TODAY. I AM CONFIDENT THAT THEY HAVE THIS SORTED. THEY HAVE WORKED THIS THROUGH AND HAVE AN EFFECTIVE PLAN. WHAT YOU NEED TO KNOW AND LEARN TODAY IS THAT WE HAVE WORKED COLLABORATIVELY WITH OUR CITY PARTNERS, THE DEPARTMENT OF TRANSPORTATION, FINANCE AND ADMINISTRATIVE SERVICES AND PUBLIC UTILITIES WHO ARE HERE TODAY AND THANK YOU TO DEVELOP A ONE SEATTLE APPROACH , AND MOST IMPORTANTLY, BECAUSE OF THE CLEAN ENERGY PORTFOLIO, WE CAN GENERATE REVENUE TO SPEND ON IMPORTANT INVESTMENTS TO DO OUR PART TO REDUCE CARBON EMISSIONS FROM THE TRANSPORTATION SECTOR IN SEATTLE. TODAY YOU WILL LEARN HOW THE PROGRAM WORKS , THE OTHER DEPARTMENTS PARTICIPATING AND CITY LIGHTS ROLE AND RESPONSIBILITIES. THE RESOLUTION PLANNED FOR A VOTE IN TWO WEEKS DOES NOT MAKE ANY DECISION REGARDING SPECIFIC INVESTMENTS WITH THE REVENUE GENERATED, BUT IT SETS THE CITY UP FOR SUCCESSFUL PARTICIPATION IN THESE IMPACTFUL PROGRAMS. I WILL NOW TURN IT OVER TO OUR TEAM AT CITY LIGHT. >> THANK YOU. LET ME SEE IF I CAN GET THIS ON FULLSCREEN. OKAY. THANKS AGAIN FOR HAVING US. I AM MICHAEL. I WANT TO ACKNOWLEDGE THE SUPPORT FROM OUR SIBLING DEPARTMENTS IN ADVANCING THIS PROGRAM, AND THANKS TO CITY LIGHT LEADERSHIP FOR SUPPORTING ME IN THIS. IT IS A BIG UNDERTAKING, BUT TOGETHER, WE ARE MAKING A LOT OF AWESOME PROGRESS ON THIS. BY THE END OF THIS JOURNEY, YOU ARE ALL GOING TO BE EXPERTS IN THE CLEAN FUEL STANDARD. BEAR WITH ME. WILL WALK THROUGH A PRETTY COUPLE GET A PROGRAM, BUT I FEEL CONFIDENT BY THE END YOU CAN TELL YOUR FRIENDS AND FAMILY ABOUT THIS. VERY QUICKLY, HERE IS THE AGENDA TODAY . WHAT I WANT TO EMPHASIZE IS THE KEY COMPONENTS OF THE RESOLUTION THAT YOU WILL ULTIMATELY BE VOTING ON , WHICH IS TO APPROVE AND ACKNOWLEDGE THE CITY UP AS PARTICIPATION IN THE CLEAN FUEL STANDARD, ACKNOWLEDGE CITY LIGHT AS THE PROGRAM ADMINISTRATOR, WHICH WE WILL TALK ABOUT WHY THAT IS THE CASE, ACKNOWLEDGE OUR ABILITY TO TRANSACT CREDITS ON BEHALF OF OTHER DEPARTMENTS, AND FINALLY, ACKNOWLEDGE THE MEMORANDUM OF AGREEMENT, WHICH IS WHY WE HAVE OUR PEERS AT THE TABLE TODAY. SO DISTILLING THIS PROGRAM INTO A SINGLE SLIDE IS WHAT YOU SEE HERE. ESSENTIALLY, THE CFS IS DESIGNED TO ADDRESS CLIMATE CHANGE AND POLLUTANTS THE COME FROM A TRANSPORTATION SECTOR. THE WAY IT DOES THIS IS BY INCENTIVIZING CLEANER FUELS THAT CAN HELP DISPLACE DIRTY OR FOSSIL FUELS. IN DOING SO, IT REWARDS THOSE CLEANER FUELS THROUGH CREDITS, AND THEN THE CREDIT OWNERS MAY MONETIZE THOSE CREDITS. I AM GOING TO WALK THROUGH THE NEXT FEW SLIDES WITH THE KEY COMPONENTS OF THE CLEAN FUEL STANDARD. IT IS IMPORTANT TO START WITH THE HAWAII. RIGHT NOW, TRANSPORTATION IS THE LARGEST SOURCE OF GREENHOUSE GAS EMISSIONS IN THE STATE, AS YOU CAN SEE IN THIS VISUALIZATION FROM DEPARTMENT OF ECOLOGY . THERE'S A BIT OF A LAG, HENCE THE 2019 VALUES BUT ALSO, TRANSPORTATION EMISSIONS ARE THE SINGLE LARGEST SOURCE IN THE CITY, RUNNING ABOUT TWO THIRDS. SIMPLY PUT, WE CANNOT ACHIEVE OUR STATE AND CITY CLIMATE CHANGE GOALS IF WE DO NOT HAVE SPECIFIC MEANS TO ADDRESS THOSE TRANSPORTATION EMISSIONS. IN ADDITION, AS WE KNOW, IT IS NOT JUST GREENHOUSE GAS EMISSIONS COME FROM THE BURNING OF FOSSIL FUELS, IT IS ALSO VARIOUS CO-POLLUTANTS SUCH AS DIESEL, PARTICULATE MATTER, THESE HAVE DIRECT IMPACTS ON OUR COMMUNITIES IN SEATTLE WHEN WE USE THESE TRANSPORTATION FUELS. THE CLEAN FUEL STANDARD OR CFS IS ONE OF THE TOOLS IN THE STATE, AND NOW THE CITY PORTFOLIO, THAT WE CAN USE TO ADDRESS THE CLIMATE CHANGE IMPACTS AND POLLUTION IMPACTS OF TRANSPORTATION FUELS. IT DOES SO BY FOCUSING ON THE LIFECYCLE OF A FUEL USED IN TRANSPORTATION SYSTEMS. TO BE CLEAR, IT DOESN'T FOCUS ON VEHICLES, IT DOESN'T FOCUS ON THE TRIP NOT TAKEN, IT IS DESIGNED TO FOCUS ON THE FUELS WE PUT INTO TRANSPORTATION AND USES, SUCH AS CARS, SCHOOL BUSES, OFF-ROAD EQUIPMENT. THINK ABOUT LUGGAGE HANDLING EQUIPMENT , THINGS AT THE AIRPORT. ANYTHING THAT USES TRANSPORTATION FUEL FALLS UNDER THE PURE VIEW OF THIS PROGRAM. IT DOES SO BY FOCUSING ON THE CARBON INTENSITY OF THE LIFECYCLE. YOU CAN SEE ON THIS IMAGE, CRADLE-TO-GRAVE. IN THIS CASE, FOR GASOLINE, IT IS FROM THE OIL WELL UNTIL IT IS BURNED IN THE VEHICLE. YOU WILL HEAR ME SAY CARBON INTENSITY QUITE A BIT. IT IS IMPORTANT TO UNDERSTAND THIS CONCEPT, BECAUSE YOU HAVE LIQUID FUELS, THIS ALSO REGULATES NATURAL GAS. AS YOU CAN IMAGINE, THOSE LOOK VERY DIFFERENT AS A GAS AND LIQUID AND HOW THEY ARE USED. IT IS LOOKING AT THE CARBON CONTENT PER UNIT OF ENERGY OF THAT FUEL. WHAT THIS PROGRAM IS GOING TO DO, IT SETS IN LAW, IT SAYS THE CI, THE CARBON INTENSITY OF EVERY FUEL BY 2038 MUST BE REDUCED BY 20% OF 2017 LEVELS. WE HAVE SOME NUMBERS TO HELP YOU PUT THAT INTO CONCRETE VIEWS. THESE WERE THE CI FOR GASOLINE AND DIESEL, THE BIG FUELS THAT ARE IMPORTANT TO SEATTLE . AND THIS WAS IN 2017. IN 2038, THE CARBON CONTENT OF THAT FUEL MUST BE REDUCED BY THAT AMOUNT. HENCE, THE 20% REDUCTION. IF YOUR FUEL IS DELIVERED IN A SPECIFIC YEAR, AND IT IS NOT MEETING THE CI DESIGNATED A LAW, THAT IS WHERE THE THRUST OF THE PROGRAM COMES INTO BEING. ANOTHER WAY TO VISUALIZE THIS IS THIS CHART. YOU WILL SEE ON THE X ACCESS IS TIME AND ON Y IS A PERCENTAGE REDUCTION IN THE CARBON INTENSITY OF THOSE FUELS. THIS IS PRESCRIBED IN LAW. YOU CAN SEE THAT 2038 IS WHEN THE LEGISLATIVE MANDATE IS A 20% REDUCTION. THAT WAS PUSHED UP TO 2034, WHICH THEY ARE ALLOWED TO DO. WE ARE ACHIEVING THIS IN STAY EVEN FASTER. WHEN YOU DELIVER FUEL ABOVE THAT CI, IF YOU DELIVER GASOLINE AND YOU ARE NOT MEETING THAT, YOU GENERATE A DEFICIT. DEFICITS ARE BAD. WHEN YOU DELIVER A FUEL THAT IS LOWER THAN THAT CI, YOU GENERATE A CREDIT. CREDITS ARE GOOD. THE MAIN THRUST, IF YOU HAVE A CREDIT, YOU ARE IN A GOOD SPOT, YOU IF YOU ARE IN A DEFICIT, A VAST. AT THE END OF THE CALENDAR YEAR YOU CAN'T HAVE ANY DEFICITS. THERE ARE SOME EXCEPTIONS. THAT IS TO INTERNALIZE THAT, CREDITS AND DEFICITS IS THE BIG ASK OF YOU. THAT IS HOW THE CITY WILL REALLY BENEFIT FROM THE PROGRAM. >> MAY ASK A QUESTION? OR WOULD YOU PREFER TO WAIT UNTIL THE END? >> WE WAIT UNTIL THE END? >> FANTASTIC. >> SO WHAT DO YOU DO WITH THE CREDITS AND DEFICITS? YOU WANT TO AVOID A DEFICIT. FOSSIL FUEL PRODUCERS AND IMPORTERS ARE LOOKING TO THE ACTIONS ON THE LEFT TO TRY TO MEET THE CARBON INTENSITY OF THAT GIVEN YEAR. IF YOU CANNOT MEET THAT CI, YOU KNOW, IF MARATHONER BP COULDN'T DO WHAT THEY NEED TO DO, THEY HAVE TO TURN TO THE MARKET TO BUY CREDITS. CITY LIGHT AND USERS OF CITY LIGHT ELECTRICITY, LIKE OUR DEPARTMENTS, WILL GENERATE THESE CREDITS. THAT MEANS FOSSIL FUEL COMPANIES WILL BUYER CREDITS, AND IN TURN, PROVIDING ADDITIONAL REVENUE TO INVEST. I HAVE TALKED SO FAR ABOUT THE CI OF FOSSIL FUEL, BUT WHAT DOES IT MEAN FOR CITY LIGHTS ELECTRICITY? AS MENTIONED, THE CLEAN ENERGY PORTFOLIO LENDS US TO HAVING ONE OF THE LOWEST IN THE STATE. IN FACT, WE ARE THE SECOND LOWEST. THE FIRST IS A STRAIGHT ZERO, WHICH ONLY OTHER ENTITY HAS. YOU CAN SEE BY TWO ORDERS OF MAGNITUDE, CITY LIGHT ELECTRICITY IS SO CLEAN THAT THAT MEANS WHEN WE DISPLACE A UNIT OF FOSSIL FUEL, WE ARE GENERATING SIGNIFICANT CREDITS BECAUSE OF OUR INVESTMENTS IN CLEAN ENERGY PORTFOLIO. INTERN, THOSE INVESTMENTS WILL BE PASSED ON TO OUR CUSTOMERS BECAUSE OF THIS PROGRAM. ONE FINAL NOTE ON THE OVERVIEW OF THE PROGRAM. EQUITABLE AND JUST OUTCOMES ARE CRUCIAL TO THIS PROGRAM. THEY ARE LEGISLATED INTO IT. YOU CAN SEE HERE IS A SNAPSHOT OF SEATTLE FROM THE CUMULATIVE IMPACTS ANALYSIS TOOL THAT THE WASHINGTON STATE DEPARTMENT OF HEALTH RUNS. IN ADDITION TO MEETING THOSE REQUIREMENTS, CITY LIGHT AND TENDS TO FAR EXCEED THEM IN ENSURING THAT THE BURDENS BORNE BY CERTAIN COMMUNITIES BECAUSE OF TRANSPORTATION SYSTEM IMPACTS, BE IT HEALTH, MOBILITY, ECONOMIC, CITY LIGHT INTENDS TO EXCEED THOSE IN MEETING THE LETTER OF THE LAW AND MATCHING OUR OBLIGATIONS TO OUR CUSTOMERS AND DELIVERING CLEAN, RELIABLE, AFFORDABLE ELECTRICITY. OKAY. YOU HAVE A MAIN WORKING OF THIS PROGRAM. NOW WE'RE GOING TO TALK ABOUT ACTUALLY HOW IT STARTS IMPACTING THE CITY AND SOME OF THE DEPARTMENTS. IN A DISTILLED MANNER, IF YOU, AS THE DEPARTMENT, OWN OR RUN A FUELING DISPENSATION -- SORRY, FUEL SUPPLY EQUIPMENT. YOU DISPENSE ELIGIBLE FUEL, YOU ARE ELIGIBLE TO DIVERSITY IN THE PROGRAM. 99 OUT OF 100 TIMES THAT WILL BE AN EV CHARGING STATION OF SOME SORT. WANT TO EMPHASIZE THAT OTHER FUELS MAY BE ELIGIBLE, BUT AT SOME POINT, THE CITY MAY GET INVOLVED WITH GREEN HYDROGEN . THAT IS A STORY FOR ANOTHER TIME. I WANT TO MAKE SURE WE ACKNOWLEDGE THE DIFFERENT FUELS ELIGIBLE. FOR THE MOST PART, WE WILL TALK ABOUT ELECTRICITY. IF YOU ARE AN OWNER OR MANAGER OF A CHARGING STATION, YOU WILL LIKELY PARTICIPATE IN THE PROGRAM. THE OUTCOMES WILL BE MET THROUGH INVESTMENTS IN DECARBONIZING THE TRANSPORTATION SECTOR. I WANT TO EMPHASIZE THAT ALL DEPARTMENTS ARE ELIGIBLE TO PARTICIPATE, BUT ELECTRIC UTILITIES LIKE CITY LIGHT FACE SPECIFIC REQUIREMENTS IN LAW AND RULES THAT NECESSITATE A DIFFERENT APPROACH FOR US. BECAUSE WE ARE A FUEL PROVIDER, WE ARE GENERATING AND DELIVERING ELECTRICITY, THE LAW PLACES SPECIFIC REQUIREMENTS ON CITY LIGHT, WHICH I WILL DEPICT ON A LATER SLIDE IN A SUMMARY TABLE. IN ADDITION, BECAUSE RIGHT NOW WE ARE THE PRIMARY INVESTOR IN CHARGING STATIONS FOR THE CITY, BOTH OWNED AND OPERATED BY THE CITY, AS WELL AS INCENTIVIZING PRIVATE OWNERSHIP, THE LAW PLACES ADDITIONAL OBLIGATIONS ON US. THIS LIST HERE SUMMARIZES SOME OF THOSE, INCLUDING, BUT NOT LIMITED TO, ADDITIONAL REPORTING, AND SOME OF THAT REPORTING IS PRETTY COMPREHENSIVE. NAMELY AROUND HOW WE USE THE FUNDS . ON THOSE FUNDS, THE LAW SAYS ELECTRIC UTILITIES MUST SPEND THEM IN CERTAIN WAYS. THOSE REQUIREMENTS DO NOT APPLY TO OUR SIBLING DEPARTMENTS. THEY JUST APPLY TO CITY LIGHT. FINALLY, BECAUSE OF THE COMPLEXITY OF THE PROGRAM AND THE POINTS I JUST MENTIONED, IT BEHOOVES US AND NECESSITATES THAT CITY LIGHT ADMINISTERS THIS PROGRAM ON BEHALF OF OUR SIBLING DEPARTMENTS. BUT AS WE WILL TALK ABOUT IN A LITTLE BIT, THROUGH THE MEMORANDUM OF AGREEMENT DONE IN A COLLABORATIVE, TRANSPARENT AND ACCOUNTABLE MANNER. THE BIG TOPIC IS HOW WE USE THESE REVENUES. THIS IS FOR ELECTRIC UTILITIES WHAT IS PRESCRIBED IN THE LAW. THE WAY I LIKE TO TALK ABOUT IT IS THAT THERE ARE TWO BUCKETS. IN JUST THE LAST MONTH OR SO, DEPARTMENT OF ECOLOGY FINALLY FINALIZED THE REQUIREMENTS. THE FIRST BUCKET MUST BE SPENT ON TRANSPORTATION ELECTRIFICATION ACTIVITIES. THAT IS PRETTY BROAD. IT IS REALLY UP TO THE ELECTRIC UTILITY TO DEFINE THAT. IN OUR CASE, WE HAVE AN AWESOME STRATEGIC DOCUMENT THAT YOU WILL ALL BE DISCUSSING AT THE END OF THE YEAR. OF THAT 50%, 30% MUST DIRECTLY AND MEANINGFULLY BENEFIT HIGHLY IMPACTED COMMUNITIES AND VULNERABLE POPULATIONS. CIRCLING BACK TO THE EQUITY AND JUST OUTCOMES LIED I HAD EARLIER. THE OTHER 50% , THE OTHER BUCKET, MUST BE SPENT ON A PRESCRIBED LIST OF INVESTMENTS CODEVELOPED BY THE STATE DEPARTMENT OF ECOLOGY IN WASHINGTON DISPUTE -- STATE DEPARTMENT OF TRANSPORTATION. THESE REQUIREMENTS ONLY APPLY TO ELECTRIC UTILITIES LIKE CITY LIGHT. OTHER CITY DEPARTMENTS WILL NOT FACE THESE . THEY HAVE MUCH MORE FLEXIBILITY IN HOW THEY USE REVENUES FROM THEIR RESPECTIVE CREDITS. WHAT YOU SEE HERE IS A SUMMARY OF THE FOUR ELIGIBLE INVESTMENTS THAT THE TWO STATE AGENCIES HAVE PROVIDED ELECTRIC UTILITIES. THESE INVESTMENTS ARE RELATED TO OUR RESIDENTIAL CREDITS. THINK ABOUT SINGLE FAMILY HOMES OR SMALL CONDO BUILDINGS. NONRESIDENTIAL CREDITS ARE NOT SUBJECT TO THESE, BUT RESIDENTIAL CREDITS, BY FAR, WILL BE THE BULK OF OUR CREDIT BANK. REALLY QUICKLY, THAT INCLUDES THE PROVISION OF NEW OR USED EMISSION VEHICLES FOR COMMUNITY-BASED ORGANIZATIONS OR ORGANIZATIONS THAT SUPPORT THOSE SPECIFIC COMMUNITIES. THE SECOND ONE IS ANYTHING RELATED TO CHARGING STATIONS. IF IT HAS SOMETHING TO DO WITH AN ELECTRICAL VEHICLE CHARGING STATION, THE LAW IS PREMISES OF SPENDING MONEY ON THAT. THE THIRD IS EXPANDING GRID CAPACITY AND INVESTING IN GRID MONETIZATION -- MODERNIZATION TO SUPPORT THE NEW ELECTRICITY DEMAND THAT COMES FROM ELECTRIFYING THE TRANSPORTATION SECTOR. THIS IS A SIGNIFICANT UNDERTAKING. WE KNOW IN ORDER TO MEET THIS, WE HAVE TO CONTINUE INVESTING IN THE SYSTEM. THANKFULLY, THE CFS ALLOWS US TO USE REVENUES TO DO JUST THAT. FINALLY, WE ARE ALLOWED TO PARTNER WITH PUBLIC AND PRIVATE FLEET OWNERS TO HELP THEM CONVERT THEIR EXISTING FLEETS AND FUTURE FLEETS IN 20 EMISSION ALTERNATIVES. THIS HERE IS JUST A SUMMARY TABLE THAT SHOWS WHAT I HAVE DESCRIBED IN THE PREVIOUS SLIDES ABOUT THE ADDITIONAL REGULATORY BURDEN AND LEGAL OBLIGATIONS THAT CITY LIGHT FACES IN PARTICIPATING IN THIS PROGRAM VERSUS COMPARED TO OUR SIBLING DEPARTMENTS. IN A NUTSHELL, THIS REALLY RESULT IN US WANTING TO TAKE THE LEAD IN HELPING ADMINISTER THIS PROGRAM AND BEARING THE COSTS AND OBLIGATIONS, AND ALSO ALLOWING OUR SIBLING DEPARTMENTS TO MAXIMALLY BENEFIT FROM THEIR RESPECTIVE INVESTMENTS AND TE. I'M HAPPY TO WALK THROUGH WHAT SOME OF THESE MIGHT BE AT A LATER TIME. HERE IS WHERE, YOU KNOW, WHAT I JUST TALKED ABOUT IS THE WORK THAT WE HAVE TO DO TO GET TO THE BENEFIT. THIS IS THE BENEFIT. THIS IS SPECIFICALLY FOR CITY LIGHT. THIS IS JUST A DEPICTION OF WHAT WE WILL SEE BY SPENDING THE REVENUES FROM SELLING THE CREDITS FROM THIS PROGRAM. WANT TO DRAW YOUR ATTENTION TO THE LOWER RIGHT, WHICH IS THE OPPORTUNITY TO INVEST IN GRID INVESTMENTS THAT BENEFIT OUR SYSTEM AND ALLOW US TO CONTINUE MAKING INVESTMENTS AND DECARBONIZING VARIOUS SECTORS AND MEETING CLIMATE CHANGE OBLIGATIONS. SO WHAT ARE WE DOING RIGHT NOW AND IN THE PAST TO BE IN COMPLIANCE WITH THE PROGRAM? THIS IS WHAT COMPLIANCE LOOKS LIKE. I WILL SPEND A LOT OF TIME ON IT. BUT IT IS, THANKFULLY, A POSITIVE FEEDBACK LOOP WHERE THE MORE WE COMPLY, THE MORE REVENUE WE GENERATE, WHICH WE THEN ARE IN MORE COMPLIANCE WITH. ALL DEPARTMENTS ARE CURRENTLY DOING THIS. CITY LIGHT HAS BEEN DOING IT. WERE BRINGING ALONG OUR PEERS SO THEY CAN BE IN COMPLIANCE. BUT THIS IS DISTILLED HOW WE MEET THE PROGRAM. I'M HAPPY TO REPORT THAT WE HAVE AN A+ IN COMPLIANCE. WE ARE DOING EVERYTHING WE HAVE BEEN ASKED. IN FACT, WERE ALSO HELPING DEPARTMENT OF ECOLOGY FIGURE OUT NO NOVEL ASPECTS OF THIS PROGRAM DUE TO THE NATURE OF SEATTLE'S INNOVATIVE INVESTMENTS AND HOW OUR PEER DEPARTMENTS ARE ALSO PARTICIPATE IN THE PROGRAM. VERY QUICKLY, WE HAVE SUCCESSFULLY REGISTERED ALL THE CHARGERS WE HAVE SO FAR AND ON AN ONGOING BASIS. WE ARE REPORTING THE ELECTRICITY THAT WE ARE DISPENSING FROM THOSE CHARGERS. THOSE INCLUDE OUR CITY LIGHT PUBLICLY OWNED CHARGERS. WE HAVE REGISTERED THE ASTRONAUT STREETCAR. WE HAVE ALSO BEGUN REGISTERING THE SPU CHARGERS AND ARE IN THE PROCESS OF GETTING THE ELECTRIC VEHICLES AS PART OF THE MOTOR POOL REGISTERED. WE HAVE TO USE TELEMATICS. WE WILL BE THE FIRST ENTITY IN THE STATE THAT USES TELEMATICS FOR A FLEA. WERE LEADING THE CAUSE AND HELPING ECOLOGY FIGURE THIS OUT. WE SUBMITTED OUR ANNUAL REPORT. WE HAVE SIX ACTUALLY GENERATED NONRESIDENTIAL AND RESIDENTIAL CREDIT. WE ARE IN GOOD SHAPE. SO HOW ARE WE DOING THIS IN A ONE SEATTLE MANNER? HOW ARE WE APPROACHING IT WITH THE MULTIPLE DEPARTMENTS INVOLVED? THIS IS A VISUAL DEPICTION OF WHAT WE ARE INITIALLY APPROACHING THIS AS. I WILL GO THROUGH IT, BUT I JUST WANT TO EMPHASIZE THAT WE ARE DOING IT IN A COLLABORATIVE MANNER. THE PEERS AT THIS TABLE HAVE BEEN GENEROUS WITH THEIR TIME AND PATIENCE AND COLLABORATION. IT HAS RESULTED IN, I THINK A -- FOR THE MOST PART, A WELL COORDINATED EFFORT. AS THIS PROGRAM EVOLVES, WE AIM TO BRING IN MORE OF THE EXECUTIVE, AS WELL AS ENGAGE CITY COUNCIL AS WE NAVIGATE THIS PROGRAM. THIS IS WHAT WE ARE THINKING RIGHT NOW. SPECIFICALLY, AS I MENTIONED BEFORE, ONE OF THE ELEMENTS IS ACKNOWLEDGING THE MEMORANDUM OF AGREEMENT. WE SPENT, I WOULD SAY, MOST THE 2020 FOR DRAFTING THIS MOA SO NOW AND INTO THE FUTURE, DEPARTMENTS LISTED HERE AND AT THE TABLE, CITY LOT, SDOT AND FUTURE DEPARTMENTS THAT MAY JOIN, IF THEY DO GET INVOLVED IN OWNING OR OPERATING THEIR OWN CHARGING STATIONS OR WHATEVER ELIGIBLE FUEL DISPENSATION EQUIPMENT, THAT THIS DOCUMENT IS A LIVING ONE THAT CAN BRING IN FOLKS SO THAT MOVING FORWARD, WE HAVE A CLEAR UNDERSTANDING OF HOW TO MEET , KNOWING WE SUCCESSFULLY -- NOT ONLY SUCCESSFULLY COMPLIED, BUT SUPPORTING EACH OTHER AS A HIGHLY DYNAMIC INDUSTRY EVOLVES. ON THE LIST OF SOME OF THE ACTIVITIES CAPTURED IN THE MOA. IN SUMMARY, THERE GENERALLY HOW WE ALL WILL ENSURE THAT WE SUCCESSFULLY COMPLY WITH THE PROGRAM. NEXT STEPS. AS I MENTIONED BEFORE, THIS IS WHAT IS IN THE CFS RESOLUTION PUT BEFORE YOU. WE ASK COUNCIL TO APPROVE AND ACKNOWLEDGE THE PARTICIPATION AND CLEAN FUEL STANDARD AND TO ACKNOWLEDGE THE ROLE OF CITY LIGHTS AS PROGRAM ADMINISTRATOR ON BEHALF OF THE CITY. THE ABILITY TO TRANSACT THOSE CLEAN FUEL CREDITS ON BEHALF OF OTHER DEPARTMENTS, INCLUDING OURSELVES. FINALLY, THE INTERDEPARTMENTAL MOA. THIS IS JUST A LIST OF THE NEXT STEPS RELATED TO THIS PROGRAM FOR BOTH CITY LIGHT AND CITYWIDE. WITH THAT, I AM HAPPY TO ANSWER ANY QUESTIONS, AND ALSO, WE'RE LUCKY TO HAVE OUR PEERS HERE IF YOU WANT TO ASK ANY QUESTIONS PERTAINING TO THEIR RESPECTIVE DEPARTMENT. THANK YOU. >> THANK YOU. COLLEAGUES, ANY QUESTIONS OR COMMENTS? COUNCILMEMBER STRAUSS. >> DID I HAVE A TELL? >> MAY BE. >> FAIR ENOUGH. I SPOKE LAST TIME. IF SOMEBODY ELSE WANTS TO GO FIRST . I AM NOT A PANELIST YET. I CAN'T SEE ANYONE ELSE. >> I THINK YOU ARE THE ONLY PERSON. >> FANTASTIC. WITH THAT PRESENTATION, I CAN WAITED TO MY FAMILY WHEN I GO HOME TODAY. NO FURTHER QUESTIONS. TAKING YOU UP ON YOUR OFFER IF ANY OTHER DEPARTMENTS WANT TO TALK ABOUT HOW YOUR DEPARTMENT IS PARTICIPATING , BENEFITS, DRAWBACKS, CHALLENGES OR OPPORTUNITIES. >> AS THE FLEET MANAGER FOR THE CITY, I THINK THIS PROGRAM WILL SERVE US REALLY WELL. ONLY TALK ABOUT THE NEED FOR THE COST OF THE INFRASTRUCTURE TO PUT INTO SUPPORT OUR FLEET AND THE ELECTRIFICATION OF THE FLEET, WE NEED THAT. WE NEED THAT KIND OF REVENUE. ALSO ON THE COST OF ELECTRIC VEHICLES. SIMILAR. WE'RE ALWAYS TRYING TO FIGURE OUT HOW TO PIECE THIS TOGETHER TO ADVANCE OUR ELECTRIFICATION EFFORTS FOR THE FLEET. I THINK THIS IS REALLY WELCOME. I THINK THE STATE HAS GRADED THIS PROGRAM, AND WE ARE DEVELOPING A GREAT RELATIONSHIP BETWEEN OUR TWO DEPARTMENTS , ALL THESE DEPARTMENTS AT THE TABLE, TO MAKE IT HAPPEN. THE CITY -- IN THE FLEET OPERATION, WE HAVE OVER 500 CHARGING STATIONS. WE JUST PUT INTO SEVERUS THE 500th ELECTRIC VEHICLE, SIGNIFICANT MILESTONE FOR OUR ACTIVITIES HERE. I AM HAPPY ABOUT IT. >> HOW MANY FORD LIGHTNING DO WE HAVE? >> YOU PUT ME ON THE SPOT. 17. PROBABLY MORE THAN THAT. OVER 20. >> THAT'S GREAT. >> AS FAR AS SPU, I WOULD SECOND THE COMMENTS CHRIS MADE. WE APPRECIATE COLLABORATING. WE THINK THIS IS REALLY GREAT PARTNERSHIP. WE HAVE A SMALLER NUMBER OF ELECTRIC VEHICLE CHARGERS, ABOUT 77 RIGHT NOW, BUT WE CONTINUE TO BUILD OUT THAT INFRASTRUCTURE. LOOKING FORWARD TO REPORTING THAT WITH YOU. >> I WILL ECHO MY COLLEAGUES AS WELL. THE STREETCAR IS FULLY OWNED AND FULLY ELECTRIC. CORE PART OF THE LOW EMISSIONS NETWORK. REALLY EXCITED TO PARTICIPATE IN THIS. WE ARE ALWAYS LOOKING TO DIVERSIFY FUNDING OPPORTUNITIES AND REINVEST. THANK YOU. >> FANTASTIC. IF I MIGHT TRY TO DIGEST THE 27 SLIDES AND ABOUT 10 WORDS, IT IS MY UNDERSTANDING THAT WITH THE STATE PROGRAM THAT IS RUNNING, A FUEL PRODUCER, IF THEY DON'T MEET THE STANDARDS, THEY HAVE TO PAY US MONEY. OR THE HAVE TO PAY MONEY INTO THE CREDITS FOR THE UTILITIES THAT ARE ALREADY OVER ACHIEVING WHEN THEY RECEIVE MONEY BECAUSE THEY ARE OVER ACHIEVING. YOU ARE SAYING IT IS BAD . YOU GET A POINT, IT'S GOOD. FROM THERE, WE THEN GET TO USE THIS FUNDING IN VERY SPECIFIC CATEGORIES. I WILL USE TRANSPORTATION AS ONE EXAMPLE. FROM THERE, WE GET TO BUILD INFRASTRUCTURE AND MAKE OUR TRANSPORTATION NETWORK CLEANER. >> YOU CAN HAVE MY JOB. >> THAT IS DISTILLED. I WILL EMPHASIZE IS NOT JUST CITY LIGHT WHO IS GENERATING THESE CREDITS. IF YOU ARE A PRODUCER OF RENEWABLE GASOLINE, IF YOU GENERATE BIODIESEL, YOU ARE ALSO ELIGIBLE. YOU'RE NOT GENERATING NEARLY AS MANY CREDITS AS CITY LIGHT WITH CLEAN FUEL. ALSO, ELECTRIC VEHICLES APPLY PROVIDERS. THE COMPANY THAT RUN PRIVATE NETWORKS LIKE ELECTRIFY AMERICA, THE BRICK GREEN CHARGING STATIONS, THEY ARE ALSO ELIGIBLE, BUT BY FAR, CITY LIGHT, BECAUSE OF HER CLEAN ELECTRICITY AND THE AWESOME EFFORTS OF OUR RESIDENTS, BUSINESSES AND ELECTRIFYING, WE WILL HAVE ONE OF THE LARGEST PORTFOLIOS OF CREDITS TO SELL. FOSSIL FUEL IMPORTERS OR PRODUCERS ARE GOING TO LOOK TO US AS THEY CAN MAKE A PRETTY EASY TRANSACTION TO COVER THEIR DEFICITS. BUT YES, YOUR SUMMARY IS SPOT ON. >> THANKS. IT WAS BECAUSE YOU BRIEFED ME EARLIER. I WILL JUST SAY THAT WE ARE AHEAD OF THE CURVE BECAUSE HE BEEN ON A PATHWAY TO CARBON NEUTRALITY FOR A VERY LONG TIME. WE WERE AHEAD OF THE CURVE PREVIOUSLY, WHICH PUTS US IN A REALLY GOOD POSITION RIGHT NOW. ONE THING A LOT OF FOLKS IN THE GENERAL PUBLIC, ALL 140,000 PEOPLE WATCHING THE SEATTLE CHANNEL MIGHT NOT KNOW, IS THAT WE ALREADY HAVE BIOFUEL PRODUCERS HERE IN WASHINGTON, WHETHER IT IS FOR AVIATION OR FOR FISHING FLEETS. I HAVE BEEN TRYING TO GET MORE BIOFUEL FOLKS TO COME SERVE OUR FISHING FLEET BECAUSE WE HAVE THE LARGEST FISHING FLEET IN THE NORTH PACIFIC IN THE BERING SEA. SO IT IS A GREAT OPPORTUNITY. I DON'T HAVE ANOTHER QUESTION FOR YOU. BUT JUST TO BRING THAT AWARENESS THAT BIOFUELS IS NOT A FUTURE CONCEPT, IT IS A NOW CONCEPT. WE HAVE PIPELINES IN THE PORT RUNNING TO THE AIRPORT, TO USE BIOFUEL SPECIFICALLY. THIS IS AN EXCITING MOMENT , AND ALSO COMPLEMENTS TO SEATTLE CITY LIGHT FOR BEING AHEAD OF THE CURVE SO WE CAN GET MORE CREDITS. THANK YOU. >> COUNCILMEMBER MORALES. THANKS FOR THE PRESENTATION. I WANT TO CONGRATULATE ALL OF YOU ON THE DEPARTMENT OF ENERGY GRANTS THAT WILL SUPPORT SOME OF THIS WORK AS WELL. I HAVE A QUESTION ABOUT THE INVESTMENTS IN INFRASTRUCTURE. I KNOW A LOT OF THIS IS ABOUT ELECTRIC VEHICLE CHARGING FOR CITY FLEETS. BUT WE ALSO KNOW THAT THERE IS PUBLIC INFRASTRUCTURE NEEDED. I JUST WANT TO CLARIFY THAT THIS INVESTMENT COULD ALSO BE USED FOR THAT INFRASTRUCTURE INVESTMENT . AND THEN, THIS MAY BE A TANGENTIAL QUESTION, BUT I AM INTERESTED TO KNOW ABOUT , PARTICULARLY FOR THE PUBLIC INFRASTRUCTURE, HOW WE ARE CONTEMPLATING STANDARDIZING THAT, BECAUSE AS YOU MENTIONED, THERE ARE PRIVATE COMPANIES THAT ARE INSTALLING EQUIPMENT TO, AND WE ALL KNOW THAT PART OF THE CHALLENGE FOR FOLKS WHO ARE INTERESTED IN PURCHASING ELECTRIC VEHICLES IS THE CHARGING CAPACITY, OR LACK THEREOF. BUT THE STANDARDIZATION OR LACK THEREOF IS ALSO AN ISSUE. I'M WONDERING IF YOU COULD TALK ABOUT THAT A LITTLE BIT. >> EXCELLENT QUESTIONS I'M HAPPY TO KICK IT OFF AND TURN TO MY COLLEAGUES IF THEY WANT TO ADD ANYTHING MORE. TO YOUR FIRST QUESTION , COUNCILMEMBER MORALES, THOUGH WE DIDN'T TALK ABOUT IT TODAY, I AM HAPPY TO TALK ABOUT IT LATER TO SHOW WHAT WE ARE INITIALLY THINKING FOR INVESTMENT PORTFOLIO FROM THIS PROGRAM. IT WILL ALIGN WITH OUR STRATEGIC INVESTMENT PLAN. THIS COUNCIL PASSED AND APPROVED WHAT I CALL , I BELIEVE IN LATE 2019. WERE WORKING ON THE NEXT ONE, WHICH WILL BE PRESENTED TO YOU AT THE END OF THIS YEAR. THE MAIN COMPONENTS OF THAT PLAN, WHICH WILL BE REFLECTED IN OUR INVESTMENTS FROM THE CLEAN FUEL STANDARD, ARE IN PUBLIC CHARGING INFRASTRUCTURE. THAT CAN INCLUDE, BUT IS NOT LIMITED TO, OUR FAST CHARGERS, THE AWESOME CURBSIDE LEVEL TWO PROGRAM, WHICH I BELIEVE HE PRESENTED TO YOU, AND IT ALSO INCLUDES MULTIFAMILY DWELLING. IT INCLUDES POTENTIALLY A FUTURE WORKPLACE CHARGING PROGRAM, SINGLE-FAMILY CHARGING FOR LOW INCOME HOUSEHOLDS OR HOUSEHOLDS IN HIGHLY IMPACTED COMMUNITY NEIGHBORHOODS. THAT IS A HIGH LEVEL. YOU'RE RIGHT THAT THIS IS AN OPPORTUNITY TO INVEST IN PUBLIC FLEETS. BUT BY AND LARGE, WE WILL INVEST THESE REVENUES IN INFRASTRUCTURE THAT SERVED THE PUBLIC. >> I WILL JUMP ONTO THAT. COUNCILMEMBER STRAUSS EARLIER SEVERE HEAD OF THE CURVE AND SOME OF THESE AREAS. I WOULD EMPHASIZE WHAT MICHAEL DISCOVERED WITH BEING AHEAD OF THE CURVE BECAUSE OF THE ACTIONS THE COUNCIL TOOK FOUR YEARS AGO WHEN THE APPROVED THE TRANSPORTATION ELECTRIFICATION STRATEGIC INVESTMENT PLAN. MAKING INVESTMENTS IN THE SPACE FOR FOUR YEARS ALREADY THANKS TO THAT. MANY OF THE AREAS MICHAEL COVERED ARE ACTUALLY COMING BACK TO COUNCIL LATER THIS YEAR WITH AN UPDATE TO THAT PLAN . WE HAVE BEEN CONDUCTING SIGNIFICANT COMMUNITY OUTREACH TO UPDATE THE PLAN, BRING ENGAGEMENT INTO THE CORE OF THAT. WE HAVE THE FRAMEWORK. WE HAVE BEEN MAKING THESE INVESTMENTS. THIS IS AN ADDITIONAL FUNDING STREAM TO CHANNEL THROUGH THAT TO CONTINUE TO EXPAND . TO YOUR SECOND QUESTION ON STANDARDS, WHICH IS A VERY GOOD ONE, THERE HAS BEEN POSITIVE DEVELOPMENTS AROUND STANDARDIZATION ACROSS NORTH AMERICA. MOST RECENTLY, WITH UPDATES TO THE NORTH AMERICAN CHARGING STANDARD. SOME REALLY NICE STREAMLINING IMPACTS FROM THAT WE HAVE BEEN COLLABORATED WITH INDUSTRY GROUPS , WITH THE NATIONAL LEVEL ELECTRIC POWER RESEARCH INSTITUTE, PACIFIC NORTHWEST REGIONAL LABS AND OTHERS. AT THE REGIONAL LEVEL, WE COLLABORATE CLOSELY WITH ALL THE CHARGING PROVIDERS. THE THIRD-PARTY ELECTRIC VEHICLE INFRASTRUCTURE PROVIDERS, WE COLLABORATE WITH THEM SO THE CUSTOMERS HAVE A SEAMLESS EXPERIENCE . IN MANY CASES, WE ARE INCENTIVIZING INSTALLATION OF THIRD-PARTY CHARGES AS WELL. WE WANT TO BRIDGE THE GAP THAT EXISTS. THAT IS VERY MUCH FRONT CENTER FOR OUR STRATEGIES AND PLANS. >> WERE GOING TO NEED TO DEVELOP A LOT OF CHARGING. PROJECTING 12,000 PUBLICLY AVAILABLE CHARGING PORTS BY 2030. AND SO, THIS WILL BE A SOURCE TO SUPPORT CONSTRUCTION, OWNERSHIP AND OPERATION. WE WILL ALSO USE THIS IN CONJUNCTION WITH OTHER INVESTMENTS WE WILL MAKE, OTHER FEDERAL GRANT AND STATE GRANT OPPORTUNITIES WE ARE ACTIVELY PURSUING. OF COURSE, WHAT IS IN THE TRANSPORTATION, THAT WILL ALSO HELP TO SUPPORT THIS. >> I AM GLAD TO KNOW THAT WE HAVE LONG BEEN THINKING ABOUT THAT AND HAVE A PLAN FOR SUPPORTING INDIVIDUAL VEHICLES . BUT I'M ALSO INTERESTED TO KNOW HOW WILL WE USE THIS TO INVEST IN BROADER PUBLIC TRANSIT SYSTEMS . WE KNOW , IF THE GOAL IS TO REDUCE EMISSIONS AND TO IMPROVE TRANSPORTATION IN GENERAL, WE'RE GOING TO HAVE TO ALSO REDUCE THE NUMBER OF SINGLE VEHICLES ON THE ROAD. CAN YOU TALK A LITTLE BIT ABOUT HOW THIS RELATES TO OUR TRANSIT STRUCTURE , INFRASTRUCTURE? >> THEIR MULTIPLE LEVELS TO THAT. ONE OF THE BROADER COLLABORATION LEVEL IS THE CITY TRANSPORTATION ELECTRIFICATION BLUEPRINT, WHICH ADDRESSES SOME OF THE ASPECTS YOU ARE TALKING ABOUT AND FITS ELECTRIC CHARGING WITHIN THE BROADER STRUCTURE OF HOW WE GET MORE PEOPLE OUT OF PERSONALLY OWNED VEHICLES IN THE FIRST PLACE AND REDUCE MILES TRAVELED. A NUMBER STRATEGIES ACROSS THE CITY THAT WE COLLABORATE WITH SUSTAINABILITY AND ENVIRONMENT AND OTHERS ON. FOR OUR DIRECT ROLE IN INVESTMENTS AT CITY LIGHT, WE ALSO HAVE BEEN BUILDING PARTNERSHIPS WITH TRANSIT PROVIDERS SINCE THE IMPLEMENTATION OF THE INVESTMENT PLAN FOUR YEARS AGO. RIGHT AT THE BEGINNING OF THAT, WE HEARD THOSE CONCERNS FROM THE COMMUNITY ABOUT TRANSIT , NUMBER ONE, HOW TO ELECTRIFY TRANSIT AND EXPAND ACCESS. FOR OUR PLAN, WE HAVE BEEN CENTERING ON ELECTRIFYING TRANSIT. THAT STARTED WITH PARTNERSHIPS WITH KING COUNTY METRO, WASHINGTON STATE FERRY. METRO IS CURRENTLY OPERATING 40 BATTERY ELECTRIC BUSES THROUGHOUT THE SERVICE TERRITORY AND SEATTLE. WE PARTNERED WITH THEM ON THE DEVELOPMENT OF THAT BASE. ALSO, RESEARCH AND BRINGING TECHNOLOGY INNOVATION. WE BROUGHT NATIONAL LABS AND FUNDING TO THAT. WE DEVELOPED NEW TECHNOLOGIES THAT ACTUALLY SUPPORT TRANSIT ELECTRIFICATION . EARLIER THIS YEAR, THERE WAS A GROUNDBREAKING ON THE NEXT BUS ELECTRIFICATION OF THEIR INTERIM BASE, WHICH WILL SOON OPERATE ON AN ADDITIONAL 100 BATTERY ELECTRIFIED BUSES. METRO IS COMMITTED TO THEIR ENTIRE FLEET. IT OPERATES OUT OF TUKWILA, WHICH IS IN OUR TERRITORY. WE HAVE BEEN WORKING DEEPLY WITH THEM. WASHINGTON STATE FERRY WILL ELECTRIFY THE VERY FIRST BATTERY ELECTRIC FERRY IN THE REGION OPERATING BETWEEN BAINBRIDGE ISLAND. WE ACTUALLY GOT SOME FUNDING FROM THE STATE LOOKING AT INNOVATIVE SOLUTIONS TO CHARGE THEIR. WE HAVE A MEMORANDUM OF UNDERSTANDING WITH THE FERRY SYSTEM AS WELL ON SUPPORTING THAT ELECTRIFICATION. WE ARE WORKING WITH ALL OF THE DIFFERENT TRANSIT PROVIDERS AS WE GO ALONG THIS. WORKING MORE BROADLY ACROSS THE CITY ON THE OVERALL STRATEGY FOR HOW TO REDUCE VEHICLES MILES TRAVELED AS MUCH AS POSSIBLE AND ELECTRIFY WHAT IS LEFT ON THE ROADS TO ADDRESS THOSE TRANSPORTATION EMISSIONS. >> THANK YOU VERY MUCH. >> THANK YOU. THIS IS ALL VERY TECHNICAL. I'M GRATEFUL FOR YOUR EXPERTISE. THANK YOU SO MUCH FOR BEING HERE. I TEND TO VOTE IN FAVOR OF THIS RESOLUTION BECAUSE, DURING THE STATE PROGRAM, ALIGNED WITH OUR COMMIT TO COMBAT CLIMATE CHANGE AND IMPROVE AIR QUALITY FOR RESIDENTS. I WAS HOPING YOU COULD TALK MORE ABOUT, WHEN IT COMES TO LOCAL COMMUNITIES AND COMMUNITY MEMBERS, WHAT WILL THEY SEE COME OUT OF THIS FROM OUR PARTNERSHIP WITH THE STATES? YOU MENTIONED 30% ON FLIGHT 15 , MUST BE SPENT ON EQUITABLE INVESTMENTS. THE OTHER 50% WILL BE PROJECTS WITH THE STATE. WHAT COULD THE CONSTITUENCY GET OUT OF THIS CLASS >> THAT IS AN EXCELLENT QUESTION. THE OTHER HALF OF MY JOB, AS I MENTIONED AT THE BEGINNING, AS THE PARTNERSHIP SIDE. I SEE MY ROLE AS MEETING COMMUNITY WHERE THEY ARE AND WHAT INVESTMENTS CITY LIGHT IN THE CITY CAN MAKE REGARDING CLEAN ENERGY, CLEAN TRANSPORTATION, AND BUILDING ON A LOT OF THE THINGS MY COLLEAGUE DAVID JUST SAID. AND SO, RIGHT NOW AS PART OF THE DEVELOPMENT, THE PLAN IS BEING BUILT BY COMMUNITIES. WE ARE IN COMMUNITY RIGHT NOW IN PARTNERSHIP WITH EITHER COMMUNITY-BASED ORGANIZATIONS OR MEMBERS OF THE COMMUNITIES WE WANT TO PRIORITIZE , VULNERABLE POPULATIONS, BIPOC, LOW INCOME. THEY ARE BUILDING THE REPORT FOR THE INVESTMENTS THEY WOULD LIKE TO SEE. AND SO, CFS IS GOING TO BOTH SUPPORT THAT AND , THOUGH MY MANAGER IS NOT HERE TODAY, SHE AND I HAVE TALKED ABOUT WAYS IN WHICH WE CAN EMPOWER COMMUNITIES OVER SOME OF THE REVENUES THAT THEIR UTILITY IS GENERATED. TO ANSWER YOUR QUESTION, THERE ARE A NUMBER OF POSSIBILITIES, BUT WHAT OUR COMMITMENT IS TO OUR CUSTOMERS AND COMMUNITIES IS THAT THE INVESTMENTS THEY WANT, WE WILL FIND THROUGH THIS PROGRAM. PART OF THAT IS ALSO WORKING ON GREATER ACCOUNTABILITY. HOW DO THEY WANT US TO SHOW UP AFTER EACH OF THESE INTERACTIONS TO SHOW WE ARE DOING WHAT WAS ASKED OF US? THAT MIGHT BE PUBLIC CHARGING. IT IS GOING TO BE CERTAINLY MUCH BIGGER INVESTMENTS IN TRANSIT. THAT MIGHT BE IN COMMUNITY VEHICLES SHARE PROGRAMS. THESE ARE SOME OF THE HINTS THAT WHAT MAY BE COMING AT THE END OF THE YEAR. WE ARE LEADING WITH PARTNERSHIPS AND DELIVERING PROJECTS THAT THE COMMUNITY WANTS. >> THANK YOU. >> ENGAGEMENT, NOT CONSULTATION. >> THANK YOU. OKAY. I MOVE THAT THE COMMITTEE ADOPT RESOLUTION 32146. DO I HAVE A SECOND? >> SECOND. >> IT IS MOVED AND SECONDED TO ADOPT RESOLUTION 32146. ANY FURTHER COMMENTS? SEEN DONE. -- SEEING NINE. WILL THE CLERK PLEASE CALL THE ROLL? >> [ ROLL CALL ] >> FOUR IN FAVOR. >> THE MISSION CARRIES. RECOMMENDATION WILL BE SENT TO THE FULL CITY COUNCIL. THINK YOU SO MUCH FOR BEING HERE TODAY AND FOR YOUR VERY COMPREHENSIVE EXPLANATION. >> THANK YOU. >> WE WILL NOW MOVE ON TO THE CB 120856: An ordinance relating to the City Light Department LAST ITEM OF BUSINESS. WILL THE CLERK READ THE ITEM INTO THE RECORD? >> [ ORDINANCE BEING READ ] >> THANK YOU FOR BEING HERE. WHEN YOU'RE READY, PLEASE BEGIN. >> THANK YOU. I WILL HAVE THE TEAM INTRODUCE THEMSELVES, AND THEN WE WILL DIVE IN. >> GOOD MORNING. FINANCIAL PLANNING. >> CITY LIGHT CHIEF FINANCIAL OFFICER. >> THANK YOU, T. THE ORDINANCE BEFORE YOU TODAY IMPLEMENTS THE CITY LIGHT RATE PATH ADOPTED IN THE 2025-2030 STRATEGIC PLAN. THANK YOU FOR YOUR SUPPORT OF THE PROPOSED RATE INCREASE RECOMMENDED BY THE RECOMMENDED PANEL. EVERY SHARE DURING DELIBERATIONS ON THE 2025-2030 STRATEGIC PLAN, THE NEW RATES ARE BUILT ON A FOUNDATION OF RESPONSIBLE FINANCIAL PLANNING, PARTICULARLY AS WE FACE HIGHER POWER COSTS , THE IMPACT OF PROVIDING COMPETITIVE WAGES , AND HIGHER PRICES FOR WIRES, POLES, TRANSFORMERS AND OTHER MATERIALS. WE ALSO CONTINUE OUR COMMITMENT TO AFFORDABILITY FOR ALL CUSTOMERS, INCLUDING A PLEDGE TO INCREASE ENROLLMENT IN OUR UTILITY DISCOUNT PROGRAM. FINALLY, WE ARE COMMITTED TO PROVIDING NEW PRICING OPTIONS TO HELP CUSTOMERS MANAGE THEIR ENERGY BILLS THROUGH EFFICIENT USE OF OUR PRODUCTS AND SERVICE. I AM NOW GOING TO HAND IT OFF TO OUR STAFF TO WALK YOU THROUGH HOW THE SPECIFIC RATES FOR EACH CUSTOMER, CLASS ARE CALCULATED. SOME RATE DESIGN CHANGES, AND FINALLY, WHAT THE BILL IMPACTS ARE TO THE VARIOUS CUSTOMER CLASSES FOR 2025 AND 2026. >> AGAIN, I AM MANAGER OF FINANCIAL PLANNING AND RATES. I DID NOT HAVE MY MICROPHONE ON BEFORE. THIS LEGISLATION SETS RETAIL RATES FOR CITY LIGHT CUSTOMERS FOR 25 AND 26. OUR PRESENTATION TODAY INCLUDES RATES SETTING BACKGROUND AS WELL AS THE PROPOSED RATES. IN ADDITION TO RETAIL RATES, THIS LEGISLATION ALSO UPDATE THE EXISTING LARGE CUSTOMER SOLAR PROGRAM , WHICH IS FOR CUSTOMERS WITH SOLAR ARRAYS OVER 100 KILOWATTS. THIS IS WHAT IS LARGER THAN WHAT IS ALLOWED TO PARTICIPATE IN THE NET METERING PROGRAM. THE UPDATE EXPANDS ELIGIBILITY TO INCLUDE OTHER TYPES OF RENEWABLE GENERATION. IT ALSO INCREASES THE MAXIMUM SIZE FROM TWO MEGAWATTS TO FIVE MEGAWATTS. IN ADDITION, WE ARE CHANGING THE EXPORT RATE , WHICH IS THE RATE WE PAY TO CUSTOMERS FOR ANY ENERGY EXPORTED TO THE GRID. IT IS BEING CHAINED FROM A FLAT ANNUAL RATE TO A MONTHLY RATE THAT WERE FAIRLY COMPENSATES CUSTOMERS FOR THE VALUE OF ENERGY THEY DELIVER TO THE GRID. LASTLY, THIS LEGISLATION SETS THE 25 AND 2026 NET WHOLESALE REVENUE PLANNING VALUES, WHICH ARE USED IN THE RATE STABILIZATION ACCOUNT MECHANISM. THESE VALUES ARE PULLED DIRECTLY FROM THE FINANCIAL STRATEGIC PLAN. THE STRATEGIC PLAN THAT WAS JUST ADOPTED ENDORSES A SIX-YEAR SYSTEM AVERAGE RATE INCREASE. JUST TO TIE IT INTO THE BUDGETING AND RATESETTING, THE FINANCIAL ASSUMPTIONS FOR THE FIRST TWO YEARS PROVIDE THE SPINNING TARGETS FOR THE DEVELOPMENT OF THE BUDGET . ALSO, THE REVENUE REQUIREMENTS FOR THE DEVELOPMENT OF RETAIL RATES, WHICH WE ARE TALKING ABOUT TODAY. EVEN THOUGH WE HAVE A 5.4% INCREASE SET IN THE RATE PATH, NOT ALL CUSTOMERS WILL SEE THEIR RATES INCREASE BY EXACTLY THAT DUE TO THE RATESETTING PROCESS. THE RATESETTING PROCESS HAS THREE PRIMARY STEPS, SHOWN IN THE TABLE. THE FIRST IS DETERMINING THE REVENUE REQUIREMENT, WHICH IS THE TOTAL AMOUNT OF REVENUE CITY LIGHT NEEDS TO COLLECT FROM ALL CUSTOMERS THROUGH RETAIL RATES. THIS IS IN ORDER TO MEET FINANCIAL TARGETS. AS I MENTIONED, THIS IS DEVELOPED AS PART OF THE STRATEGIC PLAN PROCESS. THE SECOND STEP IS THE COST OF SERVICE WERE CITY LIGHT DIVIDES CUSTOMERS INTO DIFFERENT RATE CLASSES , WHICH IS ILLUSTRATED IN THE DONUT CHART IN THE MIDDLE. THE BLUE SHADES ARE COMMERCIAL CUSTOMERS, WHICH MAKE UP ROUGHLY 60% OF THE REVENUE REQUIREMENT. COMMERCIAL CUSTOMERS ARE COMPOSED OF FOUR GENERAL SERVICE RATE CLASSES, AND THESE ARE SHOWN IN THE CHART STARTED WITH SMALL GENERAL SERVICE IN THE LIGHT BLUE, AND GOING CLOCKWISE WE HAVE MEDIUM, LARGE AND HIGH DEMAND. THE LIGHTING CUSTOMERS. AS PART OF THE COST OF SERVICE PROCESS, VARIOUS COSTS THAT MAKE UP THE REVENUE REQUIREMENT ARE THEN ASSIGNED TO THE CUSTOMER CLASSES. WE WILL HAVE A COUPLE OF FLIES AND TALK ABOUT THAT IN MORE DETAIL. THE THIRD STEP IS RATE DESIGN. THIS IS WHERE WE CREATE A SCHEDULE OF RATES FOR EACH CUSTOMER CLASS TO RECOVER THEIR SHARE OF ASSIGNED COSTS. AS A NOT-FOR-PROFIT MUNICIPAL UTILITY, THE GOALS IN COLLECTING REVENUE ARE TO COVER ALL OF OUR COSTS AND COLLECT IN SUCH A WAY THAT EACH CUSTOMER PAYS THEIR FAIR SHARE. THIS GRAPHIC SHOWS A HIGH LEVEL SUMMARY OF THE OPERATIONS IN OUR PRIMARY COST OF SERVICE CATEGORIES. THE CHART ARE IN THREE PRIMARY CATEGORIES THE FIRST IS ENERGY COST, THE COST OF PRODUCING AND PURCHASING ENERGY AND BRINGING IT TO THE SERVICE TERRITORY. THE SECOND CATEGORY IS THE DELIVERY COST, OFTEN REFERRED TO AS DISTRIBUTION COSTS. THESE ARE THE COST OF RELIABLY DELIVERING POWER TO CUSTOMERS THROUGH OUR VAST NETWORK OF DELIVERY INFRASTRUCTURE. THE THIRD CATEGORY IS CUSTOMER SERVICE, WHICH IS THE COST OF METERING, BILLING AND PROVIDING OVERALL CUSTOMER SERVICE. THE TAKE AWAY IS THAT THERE ARE DIFFERENT METHODS FOR ASSIGNING COSTS TO DIFFERENT CATEGORIES OF SERVICE. THE COST INCREASES IN DIFFERENT AREAS, AS WELL AS CHANGES TO CONSUMPTION PROFILES OF THE CUSTOMER CLASSES, WILL RESULT IN DIFFERENT SIZES OF RATE INCREASES FOR DIFFERENT CUSTOMER CLASSES. THIS SLIDE SHOWS ANOTHER VIEW OF THE COST OF SERVICE. THE CHART ON THE LEFT SHOWS THE TOTAL COST TO MAKE UP THE REVENUE REQUIREMENTS BROKEN OUT INTO THE PRIMARY CATEGORIES. THE ENERGY COSTS MAKE UP 52%, DELIVERY COSTS MAKE UP 36%, AND CUSTOMER COSTS MAKE UP THE REMAINING 12%. EACH OF THESE WILL BE ASSIGNED TO A CUSTOMER CLASS BASED ON DIFFERENT CRITERIA. THE SECOND CHART SHOWS THE ASSIGNED COST FOR EACH CUSTOMER CLASS, WHICH IS ALSO THE REQUIREMENT. THE FEES AND CHARGES ARE DESIGNED SEPARATELY TO COLLECT REVENUE REQUIREMENT FOR EACH CUSTOMER CLASS, BUT FOR ILLUSTRATIVE PURPOSES, THE CHART ON THE RIGHT SHOWS HOW THE TOTAL REVENUE IS RECOVER. ENERGY CHARGES ARE THE MOST COMMON, AND THEY REPRESENT THE COST PER UNIT ENERGY PROVIDED. WE OFTEN REFER TO THIS IN KILOWATT HOUR. THE VAST MAJORITY, OR 86%, IS CURRENTLY THROUGH THE ENERGY CHARGES. DEMAND CHARGES REFLECT A CHARGE FOR A PEAK USE DURING A BILLING CYCLE AND PROVIDE AN INCENTIVE FOR CUSTOMERS TO FLATTEN OUT THEIR LOW PROFILE. CITY LIGHT HAS DEMAND CHARGES FOR ITS MEDIUM, LARGE AND HIGH DEMAND GENERAL SERVICE CUSTOMERS. THE AMOUNT OF THE TOP OF THE REVENUE COLLECTED FROM THE CUSTOMER CHARGE. ONE OF THE TAKEAWAYS FROM THIS CHART IS THAT RATE DESIGN DETERMINES HOW THE REVENUE IS COLLECTED, AND NOT HOW MUCH REVENUE IS COLLECTED. THE LESS REVENUE COLLECTED FROM THE CUSTOMER AND DEMAND CHARGES, THE MORE REVENUE NEEDS TO BE COLLECTED FROM THE ENERGY CHARGES, AND VICE VERSA. THIS TABLE SHOWS OUR COST OF SERVICE RESULT IN TERMS OF AVERAGE INCREASES TO EACH CUSTOMER CLASS. THIS CAN BE INTERPRETED AS THE AVERAGE BILL INCREASES FOR EACH CUSTOMER CLASS. THERE ARE MANY DIFFERENT FACTORS THAT CAN IMPACT WHY DIFFERENT CLASSES HAVE INCREASES ABOVE OR BELOW THAT 5.4% SYSTEM AVERAGE. I MENTIONED THE PROPORTIONAL INCREASES IN ENERGY DELIVERY AND CUSTOMER COSTS, AS WELL AS THE CHANGING IN THE CONSUMPTION PROFILES. A LOT OF MOVING PIECES GOING TO COST OF SERVICE. IT MIGHT BE WORTH NOTING THAT CITY LIGHT HAS HAD INCREASES ABOVE AND BELOW THE SYSTEM AVERAGE WILL WITHIN THESE RAGES BEFORE. FOR TODAY, WE'RE GOING TO GO OVER THE HIGH LEVEL DRIVERS FOR EACH CLASS AND WHY THEY ARE ABOVE OR BELOW THE SYSTEM AVERAGE. BEFORE WE START THAT, THERE IS ONE CHANGE IN THE COST OF SERVICE SPECIFICALLY WORTH CALLING OUT SINCE IT IMPACTS MOST OF THE CUSTOMER CLASSES. THAT IS A REVISED ALLOCATION OF OUR CUSTOMER SERVICE COSTS TO BETTER REFLECT THE ACTUAL TIME AND RESOURCES BEING SPENT TO SERVE EACH CLASS. THIS CUSTOMER COST PROPORTIONALLY INCREASED A LITTLE BIT MORE FOR NONRESIDENTIAL CUSTOMERS THAN IT DID FOR RESIDENTIAL CUSTOMERS. THAT WILL BE A THEME AS WE WALK THROUGH THIS TABLE. MOVING QUICKLY, STARTING WITH RESIDENTIAL CUSTOMERS ON THE LEFT, RESIDENTIAL CUSTOMERS HAVE LOWER THAN AVERAGE INCREASES, PRIMARILY BECAUSE OF LOWER INCREASES TO THE CUSTOMER COST FOR REASONS I JUST NOTED. THEY ALSO HAD A SLIGHTLY LOWER AVERAGE INCREASE IN DISTRIBUTION COSTS. BOTH SMALL AND MEDIUM CUSTOMERS HAD INCREASES SLIGHTLY ABOVE AVERAGE, AND THAT WAS PRIMARILY FROM THE HIGHER ASSIGNED CUSTOMER COSTS. THE BIGGER INCREASE IN LARGE GENERAL SERVICE IS ALSO BEING DRIVEN BY THOSE ASSIGNED COST. BUT THE LARGEST DRIVER ALSO COMES FROM ADJUSTING FOR AN UNDER COLLECTION IN EXISTING RATES. WHAT IS HAPPENING HERE IS THAT, IN AGGREGATE, LARGE CUSTOMERS HAVE HAD A REDUCTION TO THEIR MONTHLY BILLING DEMAND, MEANING LESS REVENUE IS COMING IN FROM DEMAND CHARGES THAN ORIGINALLY ANTICIPATED IN THE LAST RATE CASE. IF WE THINK OF THESE AVERAGE RATE INCREASES AS A STEP UP, WHAT IS HAPPENING WITH LARGE CUSTOMERS IS THAT THE STARTING STEP HAS LOWERED, REQUIRING A HIGHER STEP UP TO RECOVER THEIR FAIR SHARE OF COSTS. WE AREN'T COLLECTING REVENUE THROUGH THE DEMAND CHARGES, WE NEED TO RAISE THE ENERGY RATES. HIGH DEMAND CUSTOMERS HAVE AN INCREASED INCREASE LOWER THAN THE SYSTEM AVERAGE RATE BECAUSE OF SLIGHTLY BELOW AVERAGE INCREASES TO BOTH ENERGY AND DISTRIBUTION COSTS. STREETLIGHTING HAS THE HIGHEST CHANGE PER KILOWATT HOUR, BUT STREETLIGHTS ARE TREATED A LITTLE BIT DIFFERENTLY THAN OTHER RATE CLASSES. IN ADDITION TO ALL THE COST FOR THE ENERGY AND DISTRIBUTION TO GET THE POWER TO THE STREETLIGHTS, STREETLIGHTS ARE ALSO DIRECTLY ASSIGNED COSTS OF THE INFRASTRUCTURE AND THE MAINTENANCE OF THE STREETLIGHTS. THESE COSTS ARE ONLY FOR STREETLIGHT SERVICE, SO THEY ARE ONLY ASSIGNED TO STREETLIGHT CUSTOMERS. CAPITAL WORK FOR STREETLIGHTS IS GROWN IN RECENT YEARS. THE RECOVERY OF THOSE INFRASTRUCTURE COSTS ARE THE PRIMARY DRIVERS FOR THEIR ENTIRE STREETLIGHT CUSTOMER RATES. THAT WAS A LOT FOR THE COST OF SERVICE RESULT. LOTS OF MOVING PIECES. NOW WE'RE READY TO MOVE ON TO RATE DESIGN. THE UTILITY AND THE CITY LIGHT REVIEW PANEL JOINTLY PRODUCE A RATE STRATEGY REPORT BACK IN 2019 AND A MAJOR DELIVERY OF THAT REPORT WAS REDEFINING EVERY DESIGN GOALS AND OBJECTIVES. THESE ARE SHOWN ON THE CHART ON THE RIGHT. THERE ARE EIGHT RATE DESIGN GOALS THE CITY LIGHT SHOULD BALANCE AS BEST AS POSSIBLE WHEN SETTING RATES. THIS RATE PROPOSAL ALSO ADVANCES THREE KEY STRATEGIES FROM THE 2019 STUDY . THAT IS INCLUDING ESTABLISHING AND GRADUALLY INCREASING A FIXED CUSTOMER CHARGE FOR ALL CUSTOMERS TO COVER THE COST OF METERING, BILLING AND CUSTOMER SERVICE, AND THE STRATEGY PROMOTES REVENUE SUFFICIENCY, DECARBONIZATION, AND RATES THAT ARE MORE COST BASED IN STABLE AND PREDICTABLE. >> CAN I ASK A QUESTION? >> THE SECOND IS RATES THAT ARE CHARGED IN DIFFERENT AMOUNTS DURING DIFFERENT PERIODS OF THE DAY. TIME AND USE RATE SUPPORT DECARBONIZATION, CUSTOMER TWICE, AND RATES THAT ARE COST-BASED. >> WE HAVE A QUESTION. >> THANK YOU, CHAIR. AND LOOKING AT THE RESOLUTION, AND YOU MENTIONED IT HERE, AND I'M SORRY TO INTERRUPT NOW, BUT I NEED TO GET CLARIFICATION. WE'RE GOING TO BILL ALL USAGE AT THE SAME RATE? IS THAT CORRECT? ALL USERS AT THE SAME RATE? >> NOT ALL CUSTOMER RATE CLASSES AT THE SAME RATE. >> THIS IS EFFECTIVE JANUARY 1, 2025 ALL KILLER WHALES WILL BE BILLED AT THE SAME RATE. YOU MENTIONED SOMETHING ABOUT CHANGING TO SAME RATE BILLING. CAN YOU CLARIFY? >> IN A COUPLE OF SLIDES WHEN THEY GET TO THE RESIDENTIAL RATE DESIGN, WE WILL COVER THAT. >> BUT WHAT DID YOU JUST SAY? >> THE SAME RATE FOR ALL KILOWATT HOURS IS ONLY SPECIFIC TO RESIDENTIAL CUSTOMERS. >> OKAY. WHY IS THAT? >> BECAUSE WE DESIGN RATES DIFFERENTLY FOR THE DIFFERENT CUSTOMER CLASSES. >> OKAY. >> SMALL GENERAL SERVICE AND MEDIUM GENERAL SERVICE ALSO HAVE THE SAME RATE FOR ALL KILOWATT HOURS AS WELL. >> ARE YOU GOING TO EXPLAIN WHY YOU DESIGN IT DIFFERENTLY FOR RESIDENTIAL CUSTOMERS? >> WE CAN GET TO THAT. >> OKAY. THANK YOU. >> THANK YOU FOR YOUR QUESTION. THE THIRD STRATEGY THAT WE ARE IMPLEMENTING IS PHASING OUT THE LEGACY TO BLOCK RESIDENTIAL RATE STRUCTURE AND GOING TO THE FIGHT ENERGY RATE FOR RESIDENTIAL CUSTOMERS AND HOW IT WILL SUPPORT TRANSPARENCY, REVENUE SUFFICIENCY, DECARBONIZATION, AND RATES THAT ARE MORE STABLE AND PREDICTABLE. THIS TABLE SUMMARIZES THE CHANGES IN RETAIL RATES. THE BLACK CHECKMARKS INDICATE THE RATE TYPES CURRENTLY BEING USED, AND THE GOLD INDICATES THE PROPOSED CHANGES. THE TWO STRUCTURAL CHANGES ARE MOVING AWAY FROM THE BLOCK ENERGY RATES FOR RESIDENTIAL CUSTOMERS AND OFFERING TIME AND USE RATES TO RESIDENTIAL AND SMALL AND MEDIUM GENERAL SERVICE CUSTOMERS. MOVING ON TO THE RESIDENTIAL RATE DESIGN. CITY LIGHT RESIDENTIAL CUSTOMERS ARE CURRENTLY ON A BLOCK STRUCTURE WHERE THEY PAY A LOWER AMOUNT FOR THE FIRST BLOCK IS CONSUMPTION IN A HIGHER AMOUNT FOR ALL OTHER CONSUMPTIONS. THAT IS THE CURRENT RATE STRUCTURE THAT WE HAVE BEEN WORKING WITH. THE CHART ON THE RIGHT SHOWS THAT RATES FOR THE FIRST BLOCK AND THE SECOND BLOCK SINCE 2014. CITY LIGHT HAS BEEN INTENTIONALLY GRADUALLY REDUCING THE DIFFERENTIAL BETWEEN THE FIRST AND SECOND BLOCK TO PROVIDE A SMOOTH TRANSITION AS WE MOVE TOWARDS THE FLAT RATE. THE BLOCK STRUCTURE IS OVER 30 YEARS OLD AND WAS ORIGINALLY SIZED ON ENGINEERING ESTIMATES BASED ON BASIC HOUSEHOLD INCOME AT THE TIME. THE OBJECTIVES WERE TO PROVIDE LOW-COST ELECTRICITY TO COVER ALL BASIC COUNSEL NEEDS WITH THE FIRST BLOCK. ALSO PROVIDING A SECOND HIGHER BLOCK TO PROVIDE A BETTER PRICING OF CLOSER TO MARGINAL COSTS AND BETTER PRICING FOR ENERGY EFFICIENCY. THE AVERAGE RATES 30 YEARS AGO WERE VERY LOW. THEY WERE SIGNIFICANTLY BELOW THE MARGIN . THEY NEEDED A STRONGER PRICE SIGNAL TO BE ABLE TO PROMOTE THAT ENERGY EFFICIENCY . THIS IS NO LONGER THE CASE. THE RATES HAVE GROWN, AS WELL AS MANY OTHER CHANGES WITHIN OUR HOUSING STOCKS AND ENERGY EFFICIENCY OVER THE LAST 30 YEARS. OUR PROPOSAL TO TRANSLATE TO A SINGLE ENERGY CHARGE AND GRADUALLY INCREASE THE CUSTOMER CHARGE WILL BETTER SUPPORT MANY OF THOSE REDESIGNED GOALS WE HAVE BEEN MAKING . WE MADE THESE CHANGES SLOWLY OVER TIME TO REALLY HELP MITIGATE THE IMPACT FOR CUSTOMERS. >> IT SEEMS TO ME WITH THE FLAT RATE YOU ARE STILL GOING TO BE DISPROPORTIONATELY IMPACTING LOWER INCOME HOUSEHOLDS . >> THAT IS AN EXCELLENT QUESTION. WE DO HAVE A SLIDE ADDRESSING THAT AS WELL. I WILL GET TO THAT. >> OKAY. THE NEXT TWO SLIDES HELP ILLUSTRATE HOW ARE CHANGES IN RATE DESIGN OVER TIME ARE MORE FAIRLY RECOVERING COSTS. THIS SLIDE SHOWS BOTH THE ESTIMATED AVERAGE MONTHLY COST TO SERVE IN THE COST RECOVERY FOR THREE EXAMPLE CUSTOMERS WITH DIFFERENT SIZE CONSUMPTION. THIS IS FOR THE YEAR 2019. FOR EACH EXAMPLE, THE COST TO SERVE IS BROKEN OUT IN COSTS IN BLUE, ENERGY COSTS IN GREEN, AND DISTRIBUTION COSTS IN GOLD. THE COST RECOVERY FOR EACH CUSTOMER IS BROKEN INTO REVENUE FROM THE CUSTOMER CHARGE IN BLUE AND REVENUE FROM THE ENERGY CHARGE IN GREEN. FOR THE AVERAGE CUSTOMER IN THE MIDDLE, THE COST TO SERVE AND TO COST TO RECOVER ARE PRETTY CLOSE. ONLY ABOUT A TWO DOLLAR DIFFERENCE. HOWEVER, IF YOU LOOK AT THE SMALL CUSTOMER SHOWN ON THE LEFT , WHERE UNDER COLLECTING BY $12 A MONTH, AND FOR THE LARGE CUSTOMER ON THE RIGHT, WHERE OVER COLLECTING BY $22 A MONTH. NOW IF WE GO TO THE NEXT SLIDE, WE WILL SEE WHERE WE ARE IN 2026. THIS CHART SHOWS THE PROPOSED RATES FOR 2026 . WHILE NOT PERFECT, THEY DO A BETTER JOB OF ALIGNING COSTS WITH RECOVERY. FOR THE SMALL CUSTOMER , THE OTHER COLLECTION IN 2019 OF $12 A DROPPED TO FOUR DOLLARS, AND FOR THE LARGE CUSTOMER, THE OVER COLLECTION OF $22 HAS DROPPED TO $22. FISHES WE'RE MOVING IN THE RIGHT DIRECTION IN TERMS OF COST RECOVERY. THIS SLIDE SHOWS THE BILL IMPACTS OF THE PROPOSED RESIDENTIAL RATES FOR FIVE EXAMPLE CUSTOMERS WITH DIFFERENT AMOUNTS OF CONSUMPTION. THE Y AXIS SHOWS AVERAGE MONTHLY BILL REPRESENT THE CURRENT 2024 BILL AND THE GREEN AREA OF THE TOP IS THE INCREASE FROM THE 2025 RATES AND THE BLUE AREA IS THE INCREASE FROM THE 2026 RATES. FOR EXAMPLE, THE CUSTOMER ON THE LEFT, WHICH IS LISTED AS AN APARTMENT WITH GAS HEAT, WILL HAVE THEIR MONTHLY BILLS INCREASE BY THREE DOLLARS IN 2025 , AND AN ADDITIONAL THREE DOLLARS IN 2026. SMALLER USE CUSTOMERS WILL HAVE A HIGHER PERCENTAGE INCREASE, BUT MOST ALL CUSTOMERS WILL HAVE A MONTHLY BILL INCREASE BETWEEN THREE DOLLARS AND FIVE DOLLARS EACH YEAR. IT IS IMPORTANT TO POINT OUT THE CUSTOMERS PARTICIPATE IN THE UTILITY DISCOUNT PROGRAM, WHICH OFFERS THE 60% DISCOUNT. WE WILL STILL THAT THEY WILL SEE THEIR BILLS GO UP BY LESS. MOVING ONTO TIME AND USE RATES. SOMETHING THE UTILITY IS EXCITED TO OFFER. THIS SHOWS THE STRUCTURE OF THE TIME AND USE ENERGY RATE THAT WILL BE AVAILABLE TO CUSTOMERS IN 2025. SOME OF YOU MAY RECALL THAT THE UTILITY ADOPTED TIME AND USE RATES FOR 2024, BUT WE HAVE NOT THE CUSTOMERS ON THEM AS WE CONTINUE TO WORK ON GETTING THAT TECHNOLOGY BACKBONE IN PLACE FOR A SUCCESSFUL DEPLOYMENT. WE KEPT THE SAME STRUCTURE THAT WAS ADOPTED IN 2024, WHICH IS A THREE PERIOD RATE THAT IS THE SAME FOR ALL MONTHS OF THE YEAR. THIS IS AN EXAMPLE FOR RESIDENTIAL CUSTOMERS. SMALL AND MEDIUM CUSTOMERS THAT WILL HAVE THE SAME OVERALL STRUCTURE, THE RATES WILL JUST BE SHIFTED DOWN. THE PEAK PRICE AND ORANGE GOES FROM 5:00 P.M. TO NINE A COPY HIM AND THE OFF-PEAK PRICE IN BLUE GOES FROM MIDNIGHT TO 6:00 A.M. ALL OTHER HOURS ARE MID-PEAK, WHICH IS SHOWN IN GOLD. THE PRICE DIFFERENTIAL IS SIMILAR TO WHAT WE HAD BEFORE, ABOUT A TWO TIMES THE PEAK -OFF-PEAK RATIO AND THE PEAK TO MID-PEAK RATIO IS ONLY A SMALL DIFFERENTIAL. THIS PROVIDES A STRONG PRICE SIGNAL TO SHIFT AS MUCH ENERGY AS POSSIBLE INTO THOSE LOW-COST OFFBEAT PERIOD HOURS WITH AN EXTRA INCENTIVE TO BE ABLE TO SHIFT DURING PEAK HOURS. FOR ADDED CONTEXT, THE BLACK LINE ON THE CHART IS THE DAILY LOAD SHAPE OF CITY LIGHT LOAD FOR JANUARY 12. THAT WAS THE DAY WE HAD THE HIGHEST SYSTEM PEAK IN OVER 30 YEARS. IT IS ONLY USED TO SHOW THE RELATIVE SHAPE OF LOAD ON THE COLDEST WINTER DAYS. WE SHOULD ALSO NOTE THAT SOMETIMES THOSE PEAKS CAN BE DUAL AS WELL. WE ANTICIPATE CUSTOMERS WILL BE ELIGIBLE TO OPT IN AND BE ENROLLED ON-TIME USE RATES IN MID 2025. >> -- COUNCILMEMBER, HOPEFULLY THEY SHOULD HELP ADDRESS YOUR QUESTION. SOME PEOPLE MAY BE UNDER THE IMPRESSION THAT LOW INCOME CUSTOMERS HAVE A MUCH LOWER CONSUMPTION SO THAT REDESIGNED WITH A HIGHER FIXED CHARGE DISPROPORTIONATELY IMPACT LOW INCOME CUSTOMERS. THIS IS ACTUALLY NOT THE CASE AT CITY LIGHT. ON THE CHART ON THE RIGHT, IT SHOWS THE >> SHOWS CONSUMPTION BY HOUSING TYPE AND INCOME. EACH VERTICAL LINE ON THE X AXIS IS THE INCOME BRACKET . THE Y AXIS IS THE AVERAGE DAILY CONSUMPTION IN KILOWATT HOURS. FOR EACH INCOME BRACKET, WE SHOW THE AVERAGE DAILY USE FOR BOTH SINGLE-FAMILY HOMES AND APARTMENTS. WITH THE DATA SHOWING IS THAT THERE IS ACTUALLY A VERY SLIGHT NEGATIVE CORRELATION BETWEEN INCOME AND USE. THE REAL MAJOR TAKE AWAY HERE IS THAT THERE IS A REAL WIDE RANGE OF CONSUMPTION AT ALL INCOME LEVELS. THERE IS REAL LIMITS TO WHAT REDESIGN CAN DO TO ACCOMPLISH AFFORDABILITY. THAT IS WHY THE MOST EFFICIENT METHODS TO BE ABLE TO PROVIDE AFFORDABILITY ARE ROBUST ASSISTANCE PROGRAMS SUCH AS THE NATION LEADING UTILITY DISCOUNT PROGRAM, WHICH OFFERS A 60% DISCOUNT TO ELIGIBLE CUSTOMERS. ENERGY EFFICIENCY ALSO HELPS ALL CUSTOMERS WITH AFFORDABILITY . CITY LIGHT IS EXTRA FOCUSED ON FINDING NEW WAYS TO DELIVER ENERGY EFFICIENCY PROGRAMS TO LOW INCOME CUSTOMERS, INCLUDING WEATHERIZATION PROGRAMS. MOVING ON QUICKLY TO COMMERCIAL DESIGN. THE CHANGES IN THE COMMERCIAL RATE DESIGN ARE NOT QUITE AS EXCITING AS THE RESIDENTIAL CHANGES. WE ARE KEEPING THE SAME STRUCTURE IN PLACE . WHAT WE'RE DOING IS INCREASING THE BASE SERVICE CHARGE THAT WE INTRODUCED IN 2023 TO ALL NONRESIDENTIAL CUSTOMERS, AS WELL AS MOVING FORWARD WITH THOSE OPT IN TIME USE RATES FOR SMALL AND MEDIUM CONSUMERS. FOR THE SAKE OF TIME, WERE JUST GOING TO SHOW THE COMMERCIAL RATES IN THE NEXT TWO SLIDES, BUT WE DID PROVIDE A COMPREHENSIVE LIST OF BILL IMPACTS AND TABLES IN THE APPENDIX FOR ADDITIONAL REFERENCE. JUST A QUICK OVERVIEW OF MEDIUM GENERAL SERVICE AND SMALL GENERAL SERVICE RATES. THIS IS A GOOD TIME TO INTRODUCE THE TOPIC OF NETWORK SERVICE CITY LIGHT HAS NETWORK SERVICE FOR HIS DOWNTOWN AREA , WHICH CONSISTS OF UNDER GROUNDING SERVICE WHERE EACH BUILDING IS OFF OF MULTIPLE FEEDERS. THE REDUNDANCY PROVIDES HIGH RELIABILITY FOR NETWORK CUSTOMERS, BUT ALSO COMES AT A MUCH HIGHER COST . THEREFORE, WE SPLIT NETWORK CUSTOMERS INTO THEIR OWN RATE CLASSES FOR MEDIUM , GENERAL SERVICE CUSTOMERS WHICH YOU CAN SEE ON THIS CHART, AND ALSO FOR LARGE GENERAL SERVICE CUSTOMERS, WHICH YOU WILL SEE ON THE NEXT SLIDE. THERE ARE ALSO RESIDENTIAL AND SMALL GENERAL SERVICE NETWORK CUSTOMERS, BUT THEIR LOAD AND THEIR ASSOCIATED COSTS MAKE UP A VERY SMALL AMOUNT OF THE NETWORK. SO THEY DON'T CURRENTLY HAVE SEPARATE NETWORK RATE CLASSES. NETWORK CUSTOMERS HAVE BOTH HIGHER DEMAND AND ENERGY CHARGES. OVERALL, THEIR AVERAGE RATE OF ROUGHLY 20% HIGHER THAN NON-NETWORK CUSTOMERS. AS FOR THE 2025 AND 2026 RATE CHANGES FOR SMALL AND GENERAL USE CUSTOMERS. WHERE INCREASING THAT CHARGE, FOR MEDIUM CUSTOMERS, DEMAND CHARGE IS INCREASED BY JUST A SMALL AMOUNT, AND THE REST OF THE REVENUE REQUIREMENT GETS COLLECTED THROUGH THAT HIGHER ENERGY CHARGE. FOR HIGH DEMAND, THE STORY IS SIMILAR TO MEDIUM CUSTOMERS. RECOVERING MORE OF THAT CUSTOMER SERVICE COST THROUGH THE CUSTOMER CHARGE AND MAKING SMALL CHANGES TO THE DEMAND CHARGE , THE REST OF THE REVENUE REQUIREMENT IS RECOVERED THROUGH ENERGY CHARGES. LARGE AND HIGH DEMAND CUSTOMERS ARE ALREADY ON DEFAULT TIME USE RATES. AND SO, ONE THING TO NOTE IS THAT WE MADE A SMALL INCREASE TO THE DIFFERENTIAL BETWEEN THEIR PEAK AND OFF-PEAK PRICING TO PROVIDE A STRONGER PRICE SIGNAL. THIS RESULTED IN A SMALL DIP IN THE OFF-PEAK RATE IN 2025. AGAIN, WE HAVE EXAMPLE BILL IMPACTS WERE LARGE AND HIGH DEMANDS -- DEMAND CUSTOMERS IN THE APPENDIX. WE WEREN'T GOING TO WALK THROUGH ALL THE BILL IMPACTS OF NONRESIDENTIAL CUSTOMERS, BUT I WILL SLOWLY SCHOOL -- SCROLL THROUGH FOR YOU TO SEE FOR REFERENCE. THAT IS ALL THE CONTENT TODAY. IN CLOSING, THESE RATES RECOVER THE REVENUE REQUIREMENT THAT WAS OUTLINED IN THE ADOPTED 2025 AND 2026 -- THROUGH 2030 STRATEGIC PLAN. IN ADDITION, THE RATE DESIGN CHANGES WE ARE MAKING HELP TO TRANSITION INTO MORE DYNAMIC RATE DESIGN OPTIONS FOR THE FUTURE. THE INDUSTRY IS CHANGING RAPIDLY, AND REDESIGN WILL BE INCREASINGLY IMPORTANT TO HELP KEEP ENERGY COSTS DOWN FOR CUSTOMERS. >> THANK YOU. THAT WAS A LOT. COLLEAGUES, I WANT TO LET YOU KNOW WE'RE NOT VOTING ON THIS TODAY. I BELIEVE WE WILL GET FURTHER BRIEFINGS . THEY WILL BE AVAILABLE FOR QUESTIONS FOR THE NEW -- NEXT TWO WEEKS. AND SO, DOES ANYONE HAVE ANY QUESTIONS? COUNCILMEMBER STRAUSS. >> AGAIN, IF SOMEBODY ELSE WANTS TO GO FIRST. IF WE COULD GO BACK TO SLIDE 14 . JUST SOME OBSERVATIONS. THAT I WOULD LOVE TO MEET WITH YOU AND GET INTO THIS DEEPER. THIS IS WHAT WE ARE TAKING REALLY LARGE STEP BACKWARDS AT A MUCH HIGHER LEVEL BEYOND JUSTICE POLICY. A TRAJECTORY THAT WE HAVE BEEN ON AT CITY LIGHT IS GETTING TO TIME OF USE RATES. WE KNOW THAT WHEN THE GRID IS AT FULL CAPACITY WHEN EVERYONE IS USING ELECTRICITY, WE HAVE TO GO BY IT, WHICH IS MORE EXPENSIVE, AND ACTUALLY COSTS OUR CUSTOMERS MORE IN THE LONG RUN AS COMPARED TO, WELL, USING IT WHEN IT IS NOT ON PEAK. WITH THE BATTERY TECHNOLOGY COMING ONLINE AND MORE SMART TECHNOLOGY, WHETHER IT IS WATER HEATERS OR DISHWASHERS OR WHATEVER TYPE OF ELECTRICAL MECHANISM YOU CAN PROGRAM TO OPERATE AT A CERTAIN TIME OF DAY, WE ARE ABLE TO FLATTEN THAT LOAD DEMAND THAT WOULD INCUR. AND SO, TO GET TO TIME OF USE RATES, WE HAVE TO SUNSET THE POLICY FROM 30 YEARS AGO, BECAUSE A POLICY FROM 30 YEARS AGO SETS UP A TWO TARIFF COST SYSTEM WITHIN THE SAME BRACKET. IF WE ARE HAVING BOTH OF THOSE THINGS AT THE SAME TIME, IT IS NOT GOING TO WORK. I KNOW WE'RE STILL A YEAR AWAY FROM BEING ABLE TO USE TIME OF USE RATES TO OPT IN, TWO YEARS TO OPT OUT. THAT IS THE POINT I WAS TRYING TO MAKE HERE. THIS IS AN IMPORTANT STEP ALONG THE WAY IN THE PROCESS WE HAVE BEEN ON FOR A LONG TIME. IF YOU WANT TO GO TO SLIDE 10, I THINK THAT EXEMPLIFIES THIS BETTER. IF WE WERE TRYING TO USE THOSE TIME OF USE RATES WHERE WE SAW THE THREE DIFFERENT BUCKETS, IF YOU WILL, AND THEN WE HAD THE SECOND BLOCK AND FIRST BLOCK ON HERE, IT WOULD CREATE A REALLY UNEVEN AND CUMBERSOME SYSTEM THAT WOULD BE EVEN LESS EQUITABLE AND LESS FORWARD THINKING. AND SO, I'M REALLY EXCITED ABOUT THIS. I'VE A LOT MORE GEEK QUESTIONS I WILL TAKE OUR TIME HERE TO GET INTO THAT. BUT REALLY EXCITED ABOUT THIS. TIME OF USE WILL BE REALLY IMPORTANT FOR US TO SHIFT OUR LOAD AND SAVE US MONEY AND BE MORE EFFICIENT WITH OUR ENERGY CONSUMPTION USE. THANK YOU. >> -- IF YOU WANT TO COMMENT ON THAT, PLEASE DO. >> THANK YOU. I JUST WANTED TO GO BACK TO SLIDE 14. WE HAVE AN AWESOME AUDIENCE HERE TODAY OF PEOPLE WERE GOING TO BE LEADING OUR CITY AT SOME POINT IN THE NOT-TOO-DISTANT FUTURE. I WANTED TO TAKE THE OPPORTUNITY TO USE THIS EXAMPLE MAYBE TO HELP EXPLAIN TO OUR PUBLIC WHERE WE ARE HEADED WITH TIME OF USE. IF WE LOOK AT THIS GRAPH, IT IS REALLY A FULL DAY. A FULL 24 HOURS. AT THE LEFT WE START AT 6:00 A.M., AND ON THE RIGHT WE END AT 6:00 P.M. -- 6:00 A.M. WITH THE BLACK LINE SHOWS IS HOW A NORMAL HOUSEHOLD USES ITS ENERGY. YOU ARE ASLEEP FROM MIDNIGHT UNTIL 6:00 , UNLESS YOU ARE TEXTING IN BED, YOU ARE AWOKEN AT 6:00 A.M. , OR MAYBE EARLIER TO GET READY FOR SCHOOL. AND YOU START TAKING A SHOWER AND BLOW DRY YOUR HAIR AND TURNING ON YOUR LIGHTS AND MAKING TOAST AND ALL THAT USES ELECTRICITY. THAT BUILDS UP OR GO TO SCHOOL AND GO TO WORK, NOW THE BUSINESSES OR SCHOOLS ARE TURNING ON THEIR LIGHTS, USING THEIR ENERGY. THEN WHAT HAPPENS IS THAT, AROUND 5:00, PARENTS COME HOME , AFTER SCHOOL ACTIVITIES AND MAC. EVERYONE COMES HOME, AND YOU REALLY START USING A TON OF ENERGY. THAT CURVE GOES WAY UP. WASHING AND DRYING CLOTHES, MAKING DINNER, BUBBLY YOUR PARENTS ARE DOING THAT, BUT YOU ARE USING A MICROWAVE. AS WE ALL START GOING TO BED, THAT USAGE GOES DOWN. WHAT HAPPENS IS, WHEN WE GET HOME FROM WORK OR SCHOOL, WE EITHER TURN ON THE HEAT OR THE AIR CONDITIONING IF IT IS IN THE SUMMER. WE DON'T HAVE ENOUGH ENERGY IN OUR SYSTEM TO SERVE THAT. SO WE HAVE TO GO BUY IT OFF THE ENERGY MARKET. THAT COSTS A TON OF MONEY. THAT COSTS EVERYONE. WHAT WE WANT TO DO WITH THIS TIME OF USE RATE IS DRIVE PEOPLE TO USE LESS ENERGY IN THAT PEAK TIME SO WE DON'T HAVE TO SPEND THE MONEY TO DO THAT. IT WORKS ACROSS ALL INCOME CLASSES . IT WAS REALLY A SURPRISE TO ME WHEN WE RAN THE INFORMATION FOR SLIDE 15. WE FOUND OUT THAT LOWER INCOME PEOPLE TEND TO USE MORE ENERGY , PROBABLY BECAUSE WHERE THEY LIVE IT IS LESS EFFICIENT . WE WANT TO DESIGN AND CONTINUE TO UTILIZE OUR PROGRAMS TO HELP INCREASE HOUSEHOLD EFFICIENCY, AND WE ALSO WANT TO CHANGE BEHAVIOR AT EVERY INCOME LEVEL TO HELP US SAVE MONEY. AND HELP OUR CUSTOMERS SAVE MONEY. I HOPE THAT MIGHT HELP. THE ONLY OTHER THING I WILL DO IS PUT IN A QUICK PLUG FOR HOW COOL IT IS TO WORK AT THE UTILITY . IF YOU WANT TO WORK OUTSIDE, WE HAVE A JOB FOR THAT. IF YOU LOVE MATH, WE HAVE A JOB FOR THAT. IF YOU LIKE TO MAKE VIDEOS TO DO COMMUNICATIONS, WE HAVE A JOB FOR THAT. I'M JUST POINTING THAT OUT. THANK YOU. >> CHAIR, MAY I CONTINUE THAT CONVERSATION? I WILL TAKE THAT A STEP FURTHER FROM THE LAST PRESENTATION WITH THE CEO. WHEN WE ARE MOVING INTO THE NEXT DECADE WITH SO MUCH MORE ELECTRICAL VEHICLES ON THE ROADS, IF EVERYONE IS CHARGING THOSE VEHICLES DURING THE DAYTIME, IT IS GOING TO BLOW THIS CURVE OUT OF THE WATER. THAT IS WHY WE NEED TO INCENTIVIZE PEOPLE IF THEY WANT TO HAVE A CHEAPER DRIVE TO WORK TO CHARGE THAT VEHICLE AT NIGHT, FLATTEN THAT CURVE. WILL ALSO ADD BETWEEN THE 5:00 AND 9:00, WE HAVE THE SECOND SHIFT OF ALMOST EVERY INDUSTRY COMING ONLINE. SO AS FOLKS ARE GOING HOME FROM SCHOOL OR WORK, THERE IS A SECOND SHIFT COMING BACK IN. SO THE FOLKS THAT CLEAN THE CITY HALL, THE FOLKS THAT ARE MAKING SURE OPERATIONS ARE STILL OCCURRING. THAT CONTRIBUTES TO THE SECOND SPIKE . SO MUCH GOING ON. WHAT IS REALLY CRITICAL ABOUT THIS IS , IN THE LAST PRESENTATION, THAT FORWARD-LOOKING POSITION OF HOW MUCH ELECTRICITY WE ARE USING, WE WOULD BE IN A LOT OF TROUBLE IF WE DON'T HAVE THIS TIME OF USE RATE. >> CORRECT. THANK YOU. I WILL ALSO PUT IN A PLUG THAT THE UTILITY SEEMS LIKE A REALLY COOL PLACE TO WORK. LOOK AT WHAT MICHAEL DID IN THE LAST PRESENTATION. HE WAS ABLE TO DISTILL VERY COMPLICATED INFORMATION IN A PRETTY SIMPLE AND STRAIGHTFORWARD WAY. BUT THAT TAKES A LOT OF INTELLIGENCE TO BE ABLE TO DO THAT. CHAIR, I AM DONE. >> THANK YOU. ANY OTHER QUESTIONS OR COMMENTS? I HAVE A LOT OF QUESTIONS, BUT I WILL REACH OUT FOR ADDITIONAL BRIEFINGS AND EMAILS . THANK YOU SO MUCH FOR BEING HERE. I LOOK FORWARD TO SEEING YOU NEXT COMMITTEE. THANK YOU EVERYONE FOR THIS DISCUSSION. SO -- THANK YOU. I WOULD LIKE TO PUT IN A PLUG FOR CITY HALL OPPORTUNITIES AS WELL . [ LAUGHTER ] PLEASE STICK AROUND. WE WOULD LOVE TO ANSWER ANY QUESTIONS YOU HAVE REGARDING WORKING HERE. WE HAVE REACHED THE END OF TODAY'S AGENDA. ANY FURTHER BUSINESS TO COME BEFORE THE COMMITTEE BEFORE WE ADJOURN? HEARING NO FURTHER BUSINESS . THE TIME IS NOW 11:18. WE ARE ADJOURNS. THANK YOU.