1 00:02:36,250 --> 00:02:38,250 >> we are all here. 2 00:02:38,828 --> 00:02:40,828 We will get started. 3 00:02:41,263 --> 00:02:43,263 Ashley will start the meeting. 4 00:02:44,990 --> 00:02:46,100 She needs to make sure both systems are going. 5 00:02:47,370 --> 00:02:49,370 We have to be quiet while she is 6 00:02:49,806 --> 00:02:51,874 doing that so we don't overlap. Good to go? 7 00:02:51,874 --> 00:02:53,874 Great. 8 00:02:53,943 --> 00:02:55,943 Welcome everybody here today to 9 00:02:57,446 --> 00:03:00,248 our really important roundtable discussion. Thank 10 00:03:01,817 --> 00:03:03,817 thank you all for coming. 11 00:03:04,754 --> 00:03:07,389 Grad you could make it to the beautiful public works building. 12 00:03:08,491 --> 00:03:10,491 I want to go around the table to 13 00:03:10,993 --> 00:03:13,328 see who we are and our association so we know everyone 14 00:03:15,298 --> 00:03:17,298 that is here and get into the 15 00:03:17,767 --> 00:03:19,767 objectives for the meeting and 16 00:03:23,639 --> 00:03:26,408 presentations. >> I never get to be first. City attorney for the city of 17 00:03:27,143 --> 00:03:29,143 bend. 18 00:03:29,512 --> 00:03:31,512 Ian lighthouser. 19 00:03:34,884 --> 00:03:36,884 >> scott jones, human rights and 20 00:03:37,530 --> 00:03:39,530 equity commission chair. 21 00:03:39,889 --> 00:03:41,889 >> franzosa city councilor. 22 00:03:42,725 --> 00:03:45,160 >> mike rhymely bend city councillor. 23 00:03:46,963 --> 00:03:48,963 David burger local 290 and also 24 00:03:51,401 --> 00:03:53,403 state building trades knowledge steve platt city council. 25 00:03:53,403 --> 00:03:55,403 Nor guise bend. 26 00:03:55,638 --> 00:03:58,173 >> chair of the environment and climate committee. 27 00:04:00,810 --> 00:04:02,144 >> megan perkins bend city council lower. 28 00:04:03,113 --> 00:04:06,810 Mayor of bend. >> CHAIRMAN Of bend economic 29 00:04:07,917 --> 00:04:10,652 development board. Allen spector cascade natural 30 00:04:11,955 --> 00:04:13,955 gas. 31 00:04:15,826 --> 00:04:18,270 Alisa dunlap specific power. Arielle mendez. 32 00:04:19,529 --> 00:04:21,529 Chair of affordable housing 33 00:04:22,198 --> 00:04:23,932 advisory committee. Central oregon builders 34 00:04:25,669 --> 00:04:27,570 association. cassie lacey city manager's 35 00:04:27,771 --> 00:04:29,771 office. 36 00:04:30,974 --> 00:04:32,974 Eric king, city manager. 37 00:04:33,710 --> 00:04:35,778 >> thanks everyone for being here. How this will work. 38 00:04:36,346 --> 00:04:37,646 This is a round table discussion. 39 00:04:40,517 --> 00:04:42,785 This is to bring different stakeholders to the table to 40 00:04:43,186 --> 00:04:45,186 listen to presentations and get 41 00:04:45,322 --> 00:04:47,322 your feedback and ideas. 42 00:04:51,361 --> 00:04:52,762 For council this is a listening mode mostly today. 43 00:04:54,597 --> 00:04:56,597 If we have clarifying or 44 00:04:56,633 --> 00:04:58,702 informational questions jump in. We want to hear from the folks 45 00:04:58,702 --> 00:05:00,702 at the table. 46 00:05:01,438 --> 00:05:03,500 We have an opportunity for utility providers to share 47 00:05:04,374 --> 00:05:06,750 information with us so they have presentations. 48 00:05:07,110 --> 00:05:09,110 They will have unput on the two 49 00:05:09,746 --> 00:05:10,947 questions we are talking about today. 50 00:05:13,216 --> 00:05:16,118 Those are input on exemptions to the fee and implementation 51 00:05:16,420 --> 00:05:18,420 timeline and approach. 52 00:05:19,590 --> 00:05:21,224 We will have the presentations first. 53 00:05:22,326 --> 00:05:25,294 Each utility provider will give the presentation and hold 54 00:05:25,696 --> 00:05:28,640 questions until the end. We will take questions focusing 55 00:05:30,467 --> 00:05:32,869 on information and clarity from utility providers. 56 00:05:36,390 --> 00:05:38,390 We will get into the individual 57 00:05:38,108 --> 00:05:40,743 stakeholders your ideas and thoughts on these topics. 58 00:05:41,578 --> 00:05:44,470 We will discuss that after the presentations are done. 59 00:05:44,348 --> 00:05:46,348 There are a lot of us. 60 00:05:47,952 --> 00:05:50,920 If you want to respond or ask a question or give input please 61 00:05:51,889 --> 00:05:53,456 stand up your card so I can see you. 62 00:05:55,590 --> 00:05:56,526 I will make sure we get to everybody. 63 00:05:58,896 --> 00:06:01,297 I will call on folks if we need to draw that information out. 64 00:06:02,499 --> 00:06:05,135 Not a time council will deliberate or decide anything today. 65 00:06:07,371 --> 00:06:10,306 We are gathering information to feed into a work session on APRIL 22. 66 00:06:11,509 --> 00:06:13,476 Council will have time to deliberate, make decisions about 67 00:06:13,677 --> 00:06:15,677 the future of this policy. 68 00:06:15,946 --> 00:06:17,914 A lot of it is based on information we are given today. 69 00:06:20,718 --> 00:06:22,718 That is what we are doing today. 70 00:06:23,454 --> 00:06:25,922 I will throw it back to cassie for background how we got here 71 00:06:27,192 --> 00:06:29,826 and then presentations from utilities. 72 00:06:31,950 --> 00:06:33,396 >> thank you. Information I will share is 73 00:06:33,397 --> 00:06:35,397 background information. 74 00:06:37,134 --> 00:06:39,569 Essentially information that I shared in memo last week. 75 00:06:39,670 --> 00:06:42,272 I will be brief so we can move to discussion. Background. 76 00:06:44,476 --> 00:06:46,376 City has been working on broader program to encourage 77 00:06:47,445 --> 00:06:49,445 electrification of buildings in 78 00:06:50,715 --> 00:06:52,715 bend to achieve climate action 79 00:06:53,784 --> 00:06:56,520 goals over last year and-a-half. Climate fee today we have been 80 00:06:57,540 --> 00:06:59,540 focusing on for the last few 81 00:06:59,157 --> 00:07:01,157 months is part of the 82 00:07:01,659 --> 00:07:03,659 disincentive and incentive 83 00:07:04,162 --> 00:07:06,162 component of rural work plan. 84 00:07:08,866 --> 00:07:10,866 We will create incentives using 85 00:07:11,636 --> 00:07:13,636 to encourage the electrification 86 00:07:13,905 --> 00:07:15,905 using proceeds of fee and 87 00:07:17,308 --> 00:07:19,276 exploring additional monetary incentives. 88 00:07:24,749 --> 00:07:27,151 The city is expanding more robust program to share 89 00:07:28,653 --> 00:07:30,653 information about electrifying 90 00:07:32,490 --> 00:07:34,490 buildings or upcoming work a 91 00:07:35,660 --> 00:07:37,928 workshop series is coming up APRIL 29. 92 00:07:37,962 --> 00:07:40,697 We have consequent ones for the next three months. 93 00:07:44,302 --> 00:07:46,302 In the last part of the plan 94 00:07:46,771 --> 00:07:48,771 monitoring landscape for policy 95 00:07:48,840 --> 00:07:50,840 levers for reducing gas use as 96 00:07:51,443 --> 00:07:53,430 well in the future. background. 97 00:07:53,778 --> 00:07:55,778 Key steps so far. 98 00:07:56,381 --> 00:07:58,381 Policy development process. 99 00:07:58,416 --> 00:08:00,951 Council direction to pursue fee incentive program in APRIL last year. 100 00:08:03,188 --> 00:08:05,188 Work sessions with the council 101 00:08:05,857 --> 00:08:08,492 in AUGUST, OCTOBER and DECEMBER focusing on potential fee, 102 00:08:10,762 --> 00:08:12,762 analysis on costs impacts of 103 00:08:13,532 --> 00:08:15,532 electrifying homes. 104 00:08:15,934 --> 00:08:18,136 Engagement options for incentives and fees. 105 00:08:18,904 --> 00:08:21,639 In DECEMBER and FEBRUARY we shared calculation and approach 106 00:08:22,407 --> 00:08:25,242 to fee design. FEBRUARY council gave staff 107 00:08:26,111 --> 00:08:27,645 direction to pursue fee as proposed. 108 00:08:31,490 --> 00:08:33,318 They set fee level at reduced rate which we will talk about in 109 00:08:33,318 --> 00:08:35,318 a minute. 110 00:08:35,621 --> 00:08:37,621 At that meeting they directed 111 00:08:38,790 --> 00:08:40,790 staff to convene this roundtable 112 00:08:42,627 --> 00:08:44,662 to focus on fee exemptions and timeline for file major policy 113 00:08:44,963 --> 00:08:46,963 decisions we need council to 114 00:08:47,265 --> 00:08:49,467 give direction on to get the fee policy complete. 115 00:08:51,570 --> 00:08:53,570 I will share a quick overview of 116 00:08:55,140 --> 00:08:57,140 the proposed fee structure. 117 00:08:58,877 --> 00:09:00,877 Social cost of carbon multiplied 118 00:09:05,651 --> 00:09:07,651 by net lifetime by gas appliance 119 00:09:09,855 --> 00:09:11,855 correlated to said of house. 120 00:09:13,326 --> 00:09:15,326 Damages from carbon dioxide. 121 00:09:16,595 --> 00:09:18,595 It takes into account the amount 122 00:09:19,464 --> 00:09:21,464 of carbon gas appliance produces 123 00:09:23,702 --> 00:09:25,702 over lifetime of apappliance 124 00:09:27,773 --> 00:09:30,642 minus carbon alternative electric appliance would emit 125 00:09:34,130 --> 00:09:35,780 that is the net carbon impact of gas appliance. 126 00:09:37,850 --> 00:09:40,819 Tier is multiplier to acts for lower or higher energy use 127 00:09:42,354 --> 00:09:44,656 carbon emissions from smaller or larger houses. 128 00:09:49,595 --> 00:09:51,595 We established three tiers. 129 00:09:52,665 --> 00:09:54,665 Lowest is homes 1600 square feet 130 00:09:55,134 --> 00:09:57,134 or less. 131 00:10:00,840 --> 00:10:02,840 That is 65% tier factor. 132 00:10:04,110 --> 00:10:06,110 1600 or 3,000 is average. 133 00:10:06,412 --> 00:10:08,412 That is 100%. 134 00:10:12,351 --> 00:10:14,619 This doesn't get adjusted. Greater than thousand square 135 00:10:17,423 --> 00:10:20,240 feet they are 150%. One additional adjustment to base line fee. 136 00:10:23,129 --> 00:10:25,129 What council directed in 137 00:10:25,898 --> 00:10:27,999 FEBRUARY to adjust to 20% of calculated value. 138 00:10:29,836 --> 00:10:31,836 This wases to minimize 139 00:10:32,572 --> 00:10:34,773 additional cost impact of fee on new construction recognizing we 140 00:10:37,710 --> 00:10:40,245 want to continue supporting housing goals and help meet city 141 00:10:41,914 --> 00:10:44,820 climate goals as well. This final slide is table of 142 00:10:44,917 --> 00:10:46,351 what would become the fee schedule. 143 00:10:48,554 --> 00:10:49,922 Fee is established per appliance. 144 00:10:50,623 --> 00:10:52,623 Each piece of equipment has 145 00:10:53,493 --> 00:10:55,695 dollar value varying over the three tiers based on the tier 146 00:10:55,695 --> 00:10:57,695 factor. 147 00:10:57,797 --> 00:11:00,232 New home being built these are the amounts that would have to 148 00:11:02,680 --> 00:11:04,680 be paid for each of the pieces 149 00:11:04,137 --> 00:11:06,137 of equipment. 150 00:11:06,873 --> 00:11:09,741 For single house add together to get total fee based on what the 151 00:11:09,809 --> 00:11:11,809 present in the house. 152 00:11:11,911 --> 00:11:14,880 From this table you can see an average size home all gas 153 00:11:16,916 --> 00:11:19,510 equipment total fee would be over $2,000. 154 00:11:19,919 --> 00:11:21,919 Amounts correlated to relative 155 00:11:23,690 --> 00:11:26,258 energy use of equipment that is why gas furnaces are majority of 156 00:11:26,359 --> 00:11:28,359 fee by quite a bit. 157 00:11:28,762 --> 00:11:30,762 That is summary of fee overview. 158 00:11:32,432 --> 00:11:34,432 I will now passover to utility 159 00:11:34,734 --> 00:11:36,734 presenter to hear from pacific 160 00:11:39,239 --> 00:11:41,239 power then cec and then cascade 161 00:11:41,741 --> 00:11:43,741 natural gas. 162 00:11:46,580 --> 00:11:48,580 >> I am alisa dunlap. 163 00:11:50,851 --> 00:11:52,184 I will wait until she pulls up the slides. 164 00:11:53,153 --> 00:11:55,153 I spoke with council a couple 165 00:11:55,155 --> 00:11:57,155 months ago. 166 00:11:57,524 --> 00:12:00,590 my presentation will be briefer. That doesn't mean the rest of 167 00:12:00,600 --> 00:12:02,600 you shouldn't ask me questions. 168 00:12:03,697 --> 00:12:06,132 Feel free to ask detailed questions as we get into the 169 00:12:07,734 --> 00:12:09,734 roundtable discussion. 170 00:12:10,304 --> 00:12:12,304 Overview of pacific power. 171 00:12:13,473 --> 00:12:15,908 We serve 600,000 customers across oregon. 172 00:12:16,642 --> 00:12:18,642 Primarily rural utility. 173 00:12:20,347 --> 00:12:23,315 We have service territory, very small portion of portlands and 174 00:12:24,417 --> 00:12:26,417 then here in central oregon as 175 00:12:29,756 --> 00:12:32,291 well as out on the coast. Breaking it down to 176 00:12:32,926 --> 00:12:34,926 infrastructure that serves city 177 00:12:35,162 --> 00:12:37,162 of bend. 178 00:12:37,765 --> 00:12:39,966 We have seven existing substations. 179 00:12:44,738 --> 00:12:46,738 It is where high voltage power 180 00:12:48,876 --> 00:12:51,678 comes in to be stopped down to voltages to serve the homes 181 00:12:51,779 --> 00:12:53,779 abbusinesses. 182 00:12:53,948 --> 00:12:55,948 There are seven substations. 183 00:12:57,551 --> 00:13:00,187 Five are planned or have been upgraded in the last two to 184 00:13:00,187 --> 00:13:03,155 three years. Two more are plan understand the 185 00:13:08,296 --> 00:13:10,296 next two years to be upgraded. 186 00:13:11,131 --> 00:13:13,131 We submitted plans for 187 00:13:13,133 --> 00:13:15,502 additional substation in southeast bend within the next five years. 188 00:13:16,604 --> 00:13:18,710 Why do I tell about infrastructure? 189 00:13:19,773 --> 00:13:21,773 Here is what is existing. 190 00:13:22,509 --> 00:13:24,509 What is existing is tapped out. 191 00:13:25,579 --> 00:13:28,148 We are actively trying to keep up with growth and vitality of 192 00:13:29,917 --> 00:13:31,917 the region much like the city is 193 00:13:33,354 --> 00:13:36,560 building roads and sewer to expand serve growing needs of the community. 194 00:13:38,260 --> 00:13:40,260 We are trying to expand the grid 195 00:13:40,427 --> 00:13:42,427 to support the growth. 196 00:13:43,164 --> 00:13:45,164 Here are details on what growth 197 00:13:46,934 --> 00:13:48,668 looks like in bend. This growth chart council saw 198 00:13:51,506 --> 00:13:54,750 before, but this represents 3% growth rate expansion 199 00:13:54,750 --> 00:13:56,750 year-over-year. 200 00:13:56,644 --> 00:13:58,345 The reason the line at the bottom does not start at the 201 00:13:59,647 --> 00:14:01,647 same spot is because the 202 00:14:03,151 --> 00:14:05,151 baseline of where we sit for eye 203 00:14:06,587 --> 00:14:08,587 electrical capacity and load has 204 00:14:08,589 --> 00:14:11,158 grown year-over-year and it is getting high here is and higher. 205 00:14:15,630 --> 00:14:17,630 Bend is second highest growth. 206 00:14:19,700 --> 00:14:21,401 Behind redmond. Bend 3%. 207 00:14:23,171 --> 00:14:25,172 Redmond 4.3%. Portland is far behind the 208 00:14:27,508 --> 00:14:29,508 growth of central oregon. 209 00:14:30,345 --> 00:14:32,345 This is our compliance chart. 210 00:14:32,981 --> 00:14:35,849 You have seen this before. Hb2021 I will give overview. 211 00:14:37,352 --> 00:14:39,686 I am sure my colleagues will speak to this regulation. 212 00:14:41,723 --> 00:14:43,723 State law passed in 2021. 213 00:14:48,730 --> 00:14:50,730 It requires investor owned 214 00:14:52,567 --> 00:14:55,102 utilities to meet targets. 80% baseline by 2030. 215 00:14:57,806 --> 00:14:59,206 This is projection of emissions reductions. 216 00:15:01,409 --> 00:15:03,944 We are in active rfp for renewable resources for oregon. 217 00:15:04,812 --> 00:15:06,680 I have good news to report on that front. 218 00:15:07,983 --> 00:15:10,485 I thought I wouldn't be able to provide updates until the end of 219 00:15:10,485 --> 00:15:12,485 the year. 220 00:15:12,921 --> 00:15:14,388 We will have preliminary results available this summer. 221 00:15:15,657 --> 00:15:18,492 Something I committed to city staff and council to provide 222 00:15:19,794 --> 00:15:22,329 updates because this is sort of key piece of how you are going 223 00:15:24,990 --> 00:15:25,599 about making these policy decisions. 224 00:15:27,200 --> 00:15:29,300 As soon as I have preliminary results available I will share 225 00:15:29,204 --> 00:15:31,204 those with council. 226 00:15:32,908 --> 00:15:34,908 This will be the first rfp for 227 00:15:35,900 --> 00:15:37,900 renewable resources since the 228 00:15:37,846 --> 00:15:40,470 changes to federal production tax credits. 229 00:15:46,210 --> 00:15:47,855 I would be remiss if I did not say in from structure is needed 230 00:15:50,250 --> 00:15:51,959 to bring infrastructure to the region. 231 00:15:52,861 --> 00:15:55,396 Transmission lines and those take years to build. 232 00:15:57,466 --> 00:16:00,301 We are kind of working in all of these phases concurrently trying 233 00:16:01,370 --> 00:16:03,370 to meet the target that are 234 00:16:07,308 --> 00:16:09,308 currently set in oregon law. 235 00:16:10,145 --> 00:16:12,145 Lastly, things to consider. 236 00:16:13,782 --> 00:16:15,850 Infrastructure as the community continues to grow. 237 00:16:17,453 --> 00:16:19,821 Where will additional substations go as we need them 238 00:16:21,230 --> 00:16:23,230 or other utilities need them? 239 00:16:24,193 --> 00:16:26,594 I put in here just a land calculation so we need three to 240 00:16:28,300 --> 00:16:30,300 five acres for a substation. 241 00:16:30,199 --> 00:16:32,199 We are going to need city 242 00:16:33,235 --> 00:16:35,470 support on finding places to put the infrastructure. 243 00:16:37,539 --> 00:16:39,942 I will say electrical infrastructure is not most 244 00:16:39,942 --> 00:16:41,942 exciting. 245 00:16:43,780 --> 00:16:45,213 It comes with controversy. As we build out to support 246 00:16:46,480 --> 00:16:48,480 community we need support of the 247 00:16:48,584 --> 00:16:50,718 city. Existing load growth trend. 248 00:16:51,887 --> 00:16:53,887 This is highest growing region. 249 00:16:55,491 --> 00:16:57,692 Bend is behind redmond as second highest community. 250 00:17:00,329 --> 00:17:02,330 We have a large interconnectionqued for new users. 251 00:17:03,499 --> 00:17:04,966 A lot of projects in the pipeline. 252 00:17:06,969 --> 00:17:09,437 That is all going to be strained as we move forward. 253 00:17:10,172 --> 00:17:12,907 That pushes the need for additional infrastructure to be 254 00:17:14,644 --> 00:17:16,644 built and support for that. 255 00:17:18,814 --> 00:17:20,480 Lastly, on compliance. Hb2021. 256 00:17:21,651 --> 00:17:23,651 The reason that rfp is so 257 00:17:24,487 --> 00:17:27,356 important to give us market costs what renewable energy is 258 00:17:27,990 --> 00:17:29,990 going to cost. 259 00:17:32,194 --> 00:17:33,862 Within hb2021 there is affordability cost off-ramp. 260 00:17:34,563 --> 00:17:36,563 Meaning if the costs are 261 00:17:37,200 --> 00:17:39,200 determined to be too high for 262 00:17:40,269 --> 00:17:42,269 customers, utilities are able to 263 00:17:43,439 --> 00:17:45,541 push outcome appliance dates to preserve affordability for 264 00:17:45,541 --> 00:17:47,541 customers. 265 00:17:47,576 --> 00:17:49,611 That is something that is unknown at the moment. 266 00:17:51,800 --> 00:17:53,800 I think I would be remiss if I 267 00:17:53,182 --> 00:17:55,182 didn't say there is discussion 268 00:17:56,886 --> 00:17:58,886 about the oregon legislature in 269 00:18:00,290 --> 00:18:02,290 2027 potentially pivoting to 270 00:18:04,930 --> 00:18:06,940 different emissions reductions models or regulations. 271 00:18:07,630 --> 00:18:09,264 If that does change we will certainly continue to engage 272 00:18:10,466 --> 00:18:13,302 with city staff on what compliance with whatever the new 273 00:18:14,938 --> 00:18:17,139 thing is or if we are on the current path we will continue to 274 00:18:19,309 --> 00:18:21,309 engage with the community. 275 00:18:22,378 --> 00:18:23,712 With that I am finished with my presentation. 276 00:18:24,681 --> 00:18:26,615 >> thank you. Is there anyone with a question 277 00:18:26,749 --> 00:18:29,184 at this point about that information she presented? 278 00:18:32,322 --> 00:18:34,322 >> I have a question. 279 00:18:35,425 --> 00:18:36,692 You talked about affordability off-ramp. 280 00:18:39,662 --> 00:18:41,662 It is widely publicized 281 00:18:41,931 --> 00:18:43,931 renewable energy solar and wind 282 00:18:47,704 --> 00:18:50,272 is less expensive than gas, coal, nuclear. 283 00:18:51,908 --> 00:18:54,109 How do you judge that? That affordability? 284 00:18:56,790 --> 00:18:58,790 How will that be judged? 285 00:19:00,116 --> 00:19:02,852 What will the all tentative be for emission free energy. 286 00:19:06,656 --> 00:19:08,656 If you don't hit affordability 287 00:19:10,560 --> 00:19:12,328 you buy more expensive power? >> I am unclear on your 288 00:19:13,263 --> 00:19:15,331 question. Right now the current rfp open 289 00:19:17,267 --> 00:19:19,267 for renewable resources I am 290 00:19:22,339 --> 00:19:24,573 aware we have solicited bids for wind, solar and battery. 291 00:19:27,511 --> 00:19:29,679 All of those would go towards hb2021 compliance. 292 00:19:30,180 --> 00:19:32,348 I don't know the pricing. That is not public. 293 00:19:33,416 --> 00:19:35,416 We are soliciting bids. 294 00:19:36,753 --> 00:19:39,656 when we see the pricing against the market and whatever else is 295 00:19:41,291 --> 00:19:43,291 available in our resource 296 00:19:44,127 --> 00:19:46,896 portfolio, we will make cost affordability calculations at that point. 297 00:19:48,832 --> 00:19:50,832 All of these things have to be 298 00:19:52,136 --> 00:19:53,569 approved by the oregon public utility commission. 299 00:19:54,872 --> 00:19:57,740 When we go into present the rfp results, at that point we can 300 00:19:59,430 --> 00:20:01,430 point to market conditions that 301 00:20:01,545 --> 00:20:03,545 say, yes, these are affordable. 302 00:20:04,480 --> 00:20:07,160 Here is the compliance pathway we are currently on. 303 00:20:07,885 --> 00:20:09,885 We expect everything to move 304 00:20:10,421 --> 00:20:12,421 forward as shown in that slide 305 00:20:14,240 --> 00:20:16,427 or, no, we need to make adjustments what is coming back 306 00:20:16,427 --> 00:20:18,427 from the market. 307 00:20:19,263 --> 00:20:21,263 We can't tax customers in a way 308 00:20:22,766 --> 00:20:25,680 to make power unaffordable. >> demand is also rising. 309 00:20:27,471 --> 00:20:29,471 You talked bend is in a growth 310 00:20:30,274 --> 00:20:32,274 phase and demand is increasing 311 00:20:32,743 --> 00:20:34,743 here. 312 00:20:35,379 --> 00:20:38,348 >> anyone else with a question? >> I have a question. 313 00:20:42,386 --> 00:20:44,386 According to your slide from 314 00:20:45,222 --> 00:20:47,222 29-30 you go from 30% to 80%. 315 00:20:48,826 --> 00:20:51,561 That is 50% increase in renewables. You have rfp out. 316 00:20:52,630 --> 00:20:54,630 What is currently available in 317 00:20:54,298 --> 00:20:56,298 that one year period that is 318 00:20:58,903 --> 00:21:00,770 going to make your portfolio 50% more? 319 00:21:01,172 --> 00:21:03,273 >> we had question about this last time, too. 320 00:21:05,343 --> 00:21:07,343 I anticipate when this rfp 321 00:21:08,646 --> 00:21:10,915 results comes to fruition and we have nor information that compliance chart will look 322 00:21:10,915 --> 00:21:13,750 different. We will have more renewable 323 00:21:14,586 --> 00:21:16,586 energy resources available in 324 00:21:17,355 --> 00:21:18,989 years prior to 2029. I don't think it is going to 325 00:21:20,525 --> 00:21:22,525 stay the way it is right now 326 00:21:22,827 --> 00:21:24,270 with significant cliff from 29 to 30. 327 00:21:27,231 --> 00:21:29,499 This is our best guess based on what we know of market 328 00:21:34,539 --> 00:21:35,797 conditions absence the current rfp. 329 00:21:37,509 --> 00:21:39,709 >> you were talking about the growth. 330 00:21:40,878 --> 00:21:43,347 Maybe I didn't understand. Growth doesn't show what you are 331 00:21:44,382 --> 00:21:46,382 going to have to make up for not 332 00:21:47,151 --> 00:21:49,151 having in gas and utilities 333 00:21:50,188 --> 00:21:52,188 which is more than 30% growth. 334 00:21:54,459 --> 00:21:57,160 Is that accounted for? >> natural gas will remain a 335 00:22:02,600 --> 00:22:05,202 part of the electric mix. It is coal that can know longer 336 00:22:07,272 --> 00:22:09,272 serve oregon customers in 2030. 337 00:22:09,674 --> 00:22:11,674 >> what I am saying the growth 338 00:22:12,760 --> 00:22:14,760 and demand you are going to have 339 00:22:14,713 --> 00:22:16,713 to provide to bend. 340 00:22:19,184 --> 00:22:22,152 >> from potential move from gas. Bend is very high growth rate. 341 00:22:24,880 --> 00:22:26,657 I think to do that type of calculation that is very much 342 00:22:26,958 --> 00:22:28,958 getting in the weeds. 343 00:22:29,600 --> 00:22:30,361 I try to keep this high level as possible. 344 00:22:31,763 --> 00:22:33,763 I am happy to run those numbers. 345 00:22:33,965 --> 00:22:36,700 I did run a few of the numbers based on the fee presented from 346 00:22:38,937 --> 00:22:40,937 staff at the last discussion. 347 00:22:41,600 --> 00:22:43,600 We can talk about that if we 348 00:22:43,208 --> 00:22:45,943 need to get into the details. >> what was on the slide is 349 00:22:46,812 --> 00:22:49,113 right now without the policy in place? 350 00:22:50,382 --> 00:22:52,830 >> right. >> something different if policy 351 00:22:53,510 --> 00:22:54,418 was in place? >> yes. 352 00:22:55,554 --> 00:22:56,887 >> we have two other presentations. 353 00:22:58,957 --> 00:23:00,957 I don't want to spend 40 to 50 354 00:23:02,994 --> 00:23:04,995 minutes so we can have discussion. 355 00:23:06,198 --> 00:23:08,933 >> lisa, how much growth is driven by residential and how 356 00:23:11,737 --> 00:23:13,737 much driven buy outs 357 00:23:24,449 --> 00:23:27,840 buy out side residential. >> most of the growth in 358 00:23:28,200 --> 00:23:30,788 residential is coming from multifamily housing which is 359 00:23:31,223 --> 00:23:33,223 already electrified. 360 00:23:34,626 --> 00:23:36,626 Those are significant. 361 00:23:38,664 --> 00:23:39,997 They are on par with a small manufacturer. 362 00:23:40,766 --> 00:23:42,330 >> thank you. >> mike. 363 00:23:42,801 --> 00:23:44,680 >> I was going to ask the same question. 364 00:23:45,470 --> 00:23:47,500 >> that worked out well. Garrett. 365 00:23:47,873 --> 00:23:49,873 >> does the timeline for 366 00:23:52,244 --> 00:23:54,779 expansion of infrastructure include land use or how long it 367 00:23:55,647 --> 00:23:57,647 takes to build substation. 368 00:23:58,617 --> 00:23:59,984 >> I don't think I laid out a timeline. 369 00:24:01,530 --> 00:24:03,388 >> three to five acres is how much land we need for 370 00:24:03,388 --> 00:24:05,388 substation. 371 00:24:06,725 --> 00:24:08,725 I used to say you could builds a 372 00:24:09,161 --> 00:24:11,290 substation in three years. That is rocket speed. 373 00:24:12,131 --> 00:24:14,131 It does take the land use 374 00:24:14,233 --> 00:24:16,434 process along with ordering long lead materials. 375 00:24:16,769 --> 00:24:19,637 You could probably still do it in three years. 376 00:24:22,575 --> 00:24:23,908 More like four to five years for a substation. 377 00:24:27,713 --> 00:24:30,150 >> any other questions? >> thank you for the 378 00:24:30,150 --> 00:24:32,150 presentation. 379 00:24:34,530 --> 00:24:36,530 Any strategies that can meet new 380 00:24:38,925 --> 00:24:40,859 demand without transmission? Large load flexibility is a huge 381 00:24:45,231 --> 00:24:47,231 opportunity we have when we have 382 00:24:48,340 --> 00:24:50,340 cold snaps and heat waves how we 383 00:24:50,937 --> 00:24:53,772 can keep the heat on. They don't meet the multiyear 384 00:24:54,740 --> 00:24:57,609 infrastructure upgrades. >> we have robust demand 385 00:24:57,910 --> 00:24:59,910 response program that is rolled 386 00:25:00,446 --> 00:25:01,880 out to commercial and industrial first. 387 00:25:03,182 --> 00:25:05,250 It came to bend last summer as residential program. 388 00:25:08,421 --> 00:25:10,622 We are heavily encouraging energy efficiency. 389 00:25:14,427 --> 00:25:16,427 Those are two major ways we can 390 00:25:17,630 --> 00:25:18,597 curb the need for transmission infrastructure. 391 00:25:19,899 --> 00:25:22,501 It is necessary to get power from renewable energy resources 392 00:25:27,740 --> 00:25:29,740 not related here or next to a 393 00:25:31,678 --> 00:25:33,678 load to serve the load. 394 00:25:33,880 --> 00:25:35,880 >> moving to 395 00:25:36,749 --> 00:25:39,368 moving to cc next. Your presentation. Thank 396 00:25:41,521 --> 00:25:44,256 thank you, lisa. >> brent ten pas. 397 00:25:44,891 --> 00:25:46,859 Central electric cooperative. We appreciate the opportunity to 398 00:25:47,127 --> 00:25:49,127 be here today. 399 00:25:51,498 --> 00:25:54,299 I also want to acknowledge cassie and her accessibility and 400 00:25:55,168 --> 00:25:57,269 reaching out in good conversations with her. 401 00:26:00,407 --> 00:26:02,740 Very good productive transparent conversations. 402 00:26:04,577 --> 00:26:06,577 Thank you, cassie. 403 00:26:07,881 --> 00:26:10,850 If pacific power is a rural utility, central electric is 404 00:26:13,753 --> 00:26:15,387 very, very rural cooperative utility. 405 00:26:16,957 --> 00:26:18,957 I will give you brief background 406 00:26:20,494 --> 00:26:22,494 who we are in my day-to-day 407 00:26:23,530 --> 00:26:25,530 there are sometimes a lack of 408 00:26:25,766 --> 00:26:27,766 awareness who cec is and who we 409 00:26:29,870 --> 00:26:31,870 are in our mission to serve the 410 00:26:36,776 --> 00:26:38,776 greater area. 411 00:26:42,116 --> 00:26:44,116 The co opin the 1940s through 412 00:26:45,519 --> 00:26:47,519 the rural electrification 413 00:26:50,557 --> 00:26:53,292 administration in the f dr administration ranchers and 414 00:26:54,610 --> 00:26:56,610 farmers borrowed 240,000 and 415 00:26:57,598 --> 00:26:59,966 started to build the system themselves. That has grown over the years. 416 00:27:03,670 --> 00:27:05,670 We have a 5300 square file 417 00:27:08,740 --> 00:27:10,743 service territory across five counties, tri-counties. 24 substations. 418 00:27:14,470 --> 00:27:16,470 We are currently grading to 419 00:27:17,484 --> 00:27:19,484 construct a new substation for 420 00:27:19,887 --> 00:27:21,887 the stevens ranch development. 421 00:27:23,570 --> 00:27:25,570 We have 24 substations. 422 00:27:26,460 --> 00:27:28,460 4,000 miles of energized 423 00:27:30,831 --> 00:27:32,831 powerlines. 424 00:27:33,133 --> 00:27:34,534 There is a snapshot of service territory. 425 00:27:37,438 --> 00:27:39,806 If you go west you are looking at the ski resort. 426 00:27:43,644 --> 00:27:45,644 East to iz, about 40 miles east 427 00:27:46,146 --> 00:27:48,146 of palina. 428 00:27:49,490 --> 00:27:51,490 North of madras. 429 00:27:54,288 --> 00:27:57,230 As far south as brothers and I forget that little town out there. 430 00:27:59,760 --> 00:28:02,396 We go pretty far south to hampton. 431 00:28:04,999 --> 00:28:06,999 The yellow you see is 432 00:28:07,301 --> 00:28:08,768 unincorporated or unallocated territory. 433 00:28:09,670 --> 00:28:11,670 If you are in the yellow area 434 00:28:11,672 --> 00:28:13,672 you have a choice to connect 435 00:28:14,175 --> 00:28:16,175 with cec or pacific power. 436 00:28:18,980 --> 00:28:20,980 Everything that you see there in 437 00:28:21,820 --> 00:28:23,820 pink is pacific power. 438 00:28:25,453 --> 00:28:26,686 That is a snapshot as of the end of 2025. 439 00:28:30,925 --> 00:28:32,925 We are primarily residential 440 00:28:33,628 --> 00:28:35,628 irrigation frankly has slowly 441 00:28:35,730 --> 00:28:37,730 been declining over the years 442 00:28:39,334 --> 00:28:41,868 for drought, farming, ranching, second and third generations 443 00:28:42,603 --> 00:28:44,805 don't want to do it. Change in our make up. 444 00:28:47,709 --> 00:28:49,709 We have commercial. 445 00:28:50,745 --> 00:28:52,212 Also our largest number is the st. Charles hospital. 446 00:28:53,982 --> 00:28:56,251 At the time it was constructed it was so far out it was in the 447 00:28:56,251 --> 00:28:58,251 service territory. 448 00:28:58,586 --> 00:29:00,586 That is an idea of growth over 449 00:29:02,624 --> 00:29:04,624 the decades. 450 00:29:04,792 --> 00:29:06,792 Zero in on the city of bend. 451 00:29:09,970 --> 00:29:11,865 Red line is the border. Pink is again pacific power. 452 00:29:12,834 --> 00:29:15,803 Yellow would be unallocated. All of that growth on the east 453 00:29:15,904 --> 00:29:17,904 tsai 454 00:29:23,878 --> 00:29:25,878 on east sideis service territory. 455 00:29:27,516 --> 00:29:29,516 7500 members in the city of 456 00:29:30,117 --> 00:29:32,886 bend. We will touch on it later. 457 00:29:33,755 --> 00:29:35,755 With growth we will nearly 458 00:29:35,824 --> 00:29:37,824 double the number of members 459 00:29:39,894 --> 00:29:41,894 within the city of bend. 460 00:29:42,630 --> 00:29:44,630 We purchase our power through 461 00:29:44,633 --> 00:29:47,434 bonneville power administration which managed columbia river 462 00:29:49,700 --> 00:29:51,700 power system. 463 00:29:52,400 --> 00:29:54,400 We purchase power through 464 00:29:56,278 --> 00:29:58,146 generation cooperative pngc. Fuel mix is pretty clean 465 00:30:01,716 --> 00:30:03,716 depending on the water year 89 466 00:30:05,787 --> 00:30:07,787 to 93 to 94% emission free. 467 00:30:08,657 --> 00:30:10,657 We have 13% nuclear. 468 00:30:12,694 --> 00:30:14,694 Within that 13% of nonspecified 469 00:30:15,464 --> 00:30:17,464 market purchases you will see 470 00:30:19,534 --> 00:30:21,534 some small wind and solar. 471 00:30:22,571 --> 00:30:24,571 Most of those market purchases 472 00:30:27,576 --> 00:30:29,576 are more carbon intensive. 473 00:30:33,648 --> 00:30:35,648 This is important to highlight. 474 00:30:35,684 --> 00:30:37,684 Bpa is tier rate to balance low 475 00:30:41,156 --> 00:30:42,423 cost federal power with regional. 476 00:30:44,860 --> 00:30:46,961 Public utilities, municipal utilities or co-ops. 477 00:30:49,365 --> 00:30:51,298 We are coming to end of 20 year contract. 478 00:30:54,403 --> 00:30:56,403 That tier 1 power for $40 479 00:30:57,806 --> 00:30:59,806 megawatt comes off hydro system 480 00:31:03,979 --> 00:31:06,114 as well as bpa columbia generating in washington. 481 00:31:09,818 --> 00:31:11,818 It is stable and predictable. 482 00:31:14,423 --> 00:31:16,423 Tier 2 power is $70 a megawatt. 483 00:31:19,128 --> 00:31:21,128 All of the growth we are 484 00:31:21,997 --> 00:31:23,997 experiencing falls under tier 2. 485 00:31:26,235 --> 00:31:28,235 It is more carbon intensive 486 00:31:28,971 --> 00:31:30,971 which impacts overall resource. 487 00:31:34,110 --> 00:31:36,770 Power costs 52% of our operating budget. 488 00:31:39,582 --> 00:31:41,582 Bpa power is rising in cost. 489 00:31:42,518 --> 00:31:44,518 Last year they implemented 19% 490 00:31:44,720 --> 00:31:47,455 increase for customers over three years. 491 00:31:52,228 --> 00:31:53,662 Cec had to go out and raise its rates just over 9%. 492 00:31:54,930 --> 00:31:56,930 We are starting cost service 493 00:31:57,533 --> 00:31:59,533 analysis to look at what to do 494 00:31:59,636 --> 00:32:01,636 for this year and the following 495 00:32:09,712 --> 00:32:11,712 year to match that. 496 00:32:11,881 --> 00:32:13,881 Organic growth which I touched 497 00:32:14,717 --> 00:32:17,485 on we have seen increase 10% membership and we expect that 498 00:32:18,221 --> 00:32:20,221 again over the next five years. 499 00:32:22,826 --> 00:32:24,826 This is not just bend, but it is 500 00:32:25,895 --> 00:32:27,895 also for us northwest redmond 501 00:32:28,640 --> 00:32:30,640 and sisters which is entirely in 502 00:32:30,500 --> 00:32:33,135 our service territory. Obviously greatest growth is in 503 00:32:35,138 --> 00:32:37,138 the steven road development. 504 00:32:38,341 --> 00:32:41,243 Also the multi-unit housing is driving upload as well. 505 00:32:41,978 --> 00:32:44,460 You also have library there and just the other residential that 506 00:32:44,814 --> 00:32:46,814 is growing there. 507 00:32:48,840 --> 00:32:50,840 We understand there is nearly 508 00:32:50,920 --> 00:32:52,920 7500 homes that will pretty much 509 00:32:53,223 --> 00:32:55,223 double our service meters just 510 00:32:55,859 --> 00:32:57,859 within the city of bend over the 511 00:33:03,967 --> 00:33:05,967 next few years. 512 00:33:06,360 --> 00:33:08,360 One of the things to touch on. 513 00:33:08,805 --> 00:33:10,805 Resource adequacy is an 514 00:33:11,740 --> 00:33:13,740 increasing challenge. 515 00:33:13,476 --> 00:33:15,476 Over last two years multiple 516 00:33:18,415 --> 00:33:20,749 headlines about potential blackouts, 9 giga watt shortfall 517 00:33:23,153 --> 00:33:24,987 in that generation online not keeping pace with that shortfall. 518 00:33:27,900 --> 00:33:29,900 Put it into perspective. 519 00:33:32,229 --> 00:33:35,197 9 gigawatts would be like nine 1,000-megawatt power plants. 520 00:33:40,670 --> 00:33:42,605 State of oregon uses almost 7 gigawatts. Throw in peak load. 521 00:33:44,975 --> 00:33:46,975 That is almost 9 gigawatts there 522 00:33:49,179 --> 00:33:51,179 to put example to that. 523 00:33:52,516 --> 00:33:54,516 It's growing and resource 524 00:33:55,252 --> 00:33:57,252 adequacy is becoming ever 525 00:33:58,121 --> 00:34:00,121 increasing issue as well as the 526 00:34:09,660 --> 00:34:11,801 cost for power is soaring. The data centers receive much of 527 00:34:14,571 --> 00:34:16,106 the attention and blame for soaring energy demand. 528 00:34:19,760 --> 00:34:21,744 They are playing a role in it. Pacific northwest is 529 00:34:21,978 --> 00:34:23,978 experiencing great growth as we 530 00:34:25,216 --> 00:34:28,840 also see here in central oregon. Greater electrification of homes 531 00:34:29,720 --> 00:34:32,656 including heating, air-conditioning, water heating, 532 00:34:33,424 --> 00:34:35,424 adoption of electric vehicles. 533 00:34:37,795 --> 00:34:39,795 The other thing contributes is 534 00:34:40,864 --> 00:34:42,999 retirement of coal and less efficient natural gas that are 535 00:34:44,268 --> 00:34:47,103 not replaced. Demand is outgrowing what is 536 00:34:47,738 --> 00:34:49,738 coming online. 537 00:34:51,842 --> 00:34:54,777 Then you have the thorny knot of transmission constraints. 538 00:34:56,313 --> 00:34:58,382 How will you import these firm resources into the state of 539 00:34:58,382 --> 00:35:00,382 oregon? 540 00:35:02,453 --> 00:35:04,555 The permitting and construction, everything that goes into 541 00:35:04,555 --> 00:35:06,555 construction. 542 00:35:08,192 --> 00:35:10,560 Those are all issues as my colleague has to work through 543 00:35:12,163 --> 00:35:14,163 just to have transmission to 544 00:35:14,932 --> 00:35:17,367 bring in and import that kind of power. 545 00:35:18,969 --> 00:35:20,436 We took a serious hit just last month. 546 00:35:21,439 --> 00:35:23,439 Many of you MAY be following 547 00:35:27,278 --> 00:35:29,646 what is happening with the federal system and lawsuits 548 00:35:30,548 --> 00:35:32,548 going on for over a decade. 549 00:35:35,987 --> 00:35:37,987 A federal judge injunction 550 00:35:38,489 --> 00:35:40,357 issued to alter operations of bpa system. 551 00:35:43,761 --> 00:35:45,761 Bottom line is that from APRIL 552 00:35:46,330 --> 00:35:48,330 into summer, they are now going 553 00:35:48,899 --> 00:35:50,899 to buy pass generations. 554 00:35:51,502 --> 00:35:53,690 Losing several hundred average megawatt. 555 00:35:54,380 --> 00:35:56,380 That is going to be lost for 556 00:35:57,508 --> 00:36:00,277 public power that is pretty much overnight a 6% increase in costs 557 00:36:01,779 --> 00:36:03,779 of power on top of what we just 558 00:36:04,849 --> 00:36:06,849 now have to deal with with the 559 00:36:08,252 --> 00:36:09,786 three year 19% increase in power. 560 00:36:13,324 --> 00:36:14,558 How are we meeting future demand? 561 00:36:16,600 --> 00:36:18,600 First and foremost we are going 562 00:36:22,660 --> 00:36:24,660 to promote efficient electricity 563 00:36:25,203 --> 00:36:27,938 use to reduce tier 2 power performs to keep rates low. 564 00:36:30,241 --> 00:36:32,743 We have never as co-op engaged in fuel switching. 565 00:36:33,278 --> 00:36:35,278 We believed that members know 566 00:36:35,813 --> 00:36:38,348 what is best as far as meeting their energy needs. 567 00:36:39,751 --> 00:36:42,719 what we have done over the decades we have very robust 568 00:36:44,122 --> 00:36:46,122 energy efficiency program as 569 00:36:47,326 --> 00:36:49,660 well as rebates and inspections to help guide other members 570 00:36:50,280 --> 00:36:52,280 through energy choices to really 571 00:36:54,766 --> 00:36:56,766 if they choose to electrify and 572 00:36:57,469 --> 00:36:59,469 go with high efficiency 573 00:37:00,105 --> 00:37:02,274 appliances to maintain affordability and responsible 574 00:37:02,274 --> 00:37:04,274 energy use. 575 00:37:07,579 --> 00:37:10,548 You know, we cannot afford to stand idly by and basically have 576 00:37:12,684 --> 00:37:14,684 bpa dictate to us what is 577 00:37:16,188 --> 00:37:18,188 happening on tier 2. 578 00:37:19,424 --> 00:37:21,424 Through our co-op we are looking 579 00:37:22,427 --> 00:37:24,427 at battery solar in the culver 580 00:37:25,797 --> 00:37:27,797 area among 25 members who wants 581 00:37:29,167 --> 00:37:31,167 to opt-in to help reduce tier 2 582 00:37:31,470 --> 00:37:34,438 reliance on bpa. We have also signed two 583 00:37:37,476 --> 00:37:39,760 different power purchasing agreements wind and solar to 584 00:37:42,314 --> 00:37:44,314 help diversify our portfolio. 585 00:37:48,153 --> 00:37:50,153 We are not seeing a lot of cost 586 00:37:53,626 --> 00:37:55,359 savings from tier 2. Marginal difference than tier 2. 587 00:37:58,664 --> 00:38:00,664 At the end in wrapping up, as 588 00:38:00,732 --> 00:38:02,166 not for profit member owned utility. 589 00:38:04,200 --> 00:38:06,200 Our mission is to provide 590 00:38:07,639 --> 00:38:10,408 electricity to members at lowest cost. Fulfilling that mission is more 591 00:38:13,645 --> 00:38:15,645 difficult as we look at growth 592 00:38:19,785 --> 00:38:21,452 how the energy industry is evolving. 593 00:38:23,550 --> 00:38:25,550 We don't have full appreciation 594 00:38:25,457 --> 00:38:27,892 for what the understanding what those potential financial 595 00:38:30,162 --> 00:38:32,162 impacts would be for members. 596 00:38:33,499 --> 00:38:36,301 We know more load coming on increases tier 2 costs and 597 00:38:37,369 --> 00:38:39,369 increases infrastructure costs 598 00:38:39,572 --> 00:38:41,572 sizing things appropriately. 599 00:38:43,809 --> 00:38:46,440 We are looking at the substation stevens ranch with hopefully 600 00:38:46,450 --> 00:38:48,246 construction time of three years. 601 00:38:50,549 --> 00:38:52,549 It will cost about $13 million. 602 00:38:54,119 --> 00:38:56,354 we are thinking about second substation to help meet the 603 00:38:59,558 --> 00:39:01,558 energy needs in southeast bend. 604 00:39:01,727 --> 00:39:04,362 I will answer questions. >> questions? 605 00:39:04,897 --> 00:39:06,897 Councilor mendez. 606 00:39:08,660 --> 00:39:10,660 >> thank you. 607 00:39:10,802 --> 00:39:13,238 You said over 90% current mix is carbon emission free. 608 00:39:14,106 --> 00:39:17,750 Could you describe what the future expansion looks like in 609 00:39:20,112 --> 00:39:21,346 terms of carbon emission profile. 610 00:39:24,717 --> 00:39:26,751 >> cec or bpa? >> cec. 611 00:39:28,354 --> 00:39:30,354 >> that growth under tier 2 will 612 00:39:30,723 --> 00:39:32,723 be more carbon intensive. 613 00:39:34,460 --> 00:39:36,460 I can't put a number on it. 614 00:39:39,399 --> 00:39:41,800 We are proactive with wind and solar to shave some of that off. 615 00:39:42,969 --> 00:39:44,436 As well through energy efficiency. 616 00:39:45,938 --> 00:39:47,938 We have a challenge. 617 00:39:53,112 --> 00:39:55,800 Potentially that solar with the battary storage in culver could 618 00:39:55,982 --> 00:39:58,951 help as well. >> steve. >> you talked about challenges 619 00:39:59,719 --> 00:40:02,321 with transmission in the area of local and in the area. 620 00:40:02,989 --> 00:40:05,560 You have city council and staff here listening. 621 00:40:07,126 --> 00:40:09,126 How can we best help? 622 00:40:09,228 --> 00:40:10,729 >> we have two different challenges. 623 00:40:13,799 --> 00:40:15,799 Our challenge is bpa. 624 00:40:15,868 --> 00:40:17,868 Bpa is the transmission provider 625 00:40:18,538 --> 00:40:19,805 for almost all of pacific northwest. 626 00:40:21,808 --> 00:40:24,109 To give you example of the transmission constraints we have 627 00:40:27,313 --> 00:40:29,313 been experiencing in the primary 628 00:40:30,150 --> 00:40:31,884 area lack of transmission surface capacity. 629 00:40:34,187 --> 00:40:36,187 We have spent over 10 years 630 00:40:39,759 --> 00:40:41,759 lobbying bpa to increase size of 631 00:40:43,596 --> 00:40:45,596 ponderosa substation. 632 00:40:46,399 --> 00:40:48,399 As well construct bonanza 633 00:40:48,802 --> 00:40:50,536 substation to step down that high voltage power. 634 00:40:51,538 --> 00:40:53,172 we have finally gotten to a tipping points. 635 00:40:54,908 --> 00:40:56,242 They are moving forward with funding. 636 00:40:58,712 --> 00:41:01,513 I can tell you that timeline has already been pushed out a couple 637 00:41:02,150 --> 00:41:04,150 more years. 638 00:41:04,840 --> 00:41:06,840 We have gone from looking at 639 00:41:07,487 --> 00:41:09,487 potentially having that online 640 00:41:09,656 --> 00:41:11,656 in 2029 to maybe 2032. 641 00:41:15,228 --> 00:41:18,970 As those involved in edco know. We have to turn people and 642 00:41:19,399 --> 00:41:21,399 industry away due to those 643 00:41:22,136 --> 00:41:24,136 constraints. 644 00:41:25,372 --> 00:41:27,773 I liken bpa to naval aircraft carrier trying to turn it around. 645 00:41:28,976 --> 00:41:30,976 That is the challenge we have 646 00:41:31,512 --> 00:41:33,512 when it comes to transmission. 647 00:41:35,216 --> 00:41:37,216 >> thank you. 648 00:41:40,854 --> 00:41:43,756 Final question then cascade. >> I think you have similar 649 00:41:45,590 --> 00:41:46,526 problems with distribution system. 650 00:41:47,895 --> 00:41:49,895 How is the distribution system 651 00:41:50,264 --> 00:41:52,264 impacted when people choose to 652 00:41:53,934 --> 00:41:56,803 put solar on their roof as well as plugging in electric vehicle 653 00:41:57,204 --> 00:41:59,204 and all of that stuff? 654 00:42:00,174 --> 00:42:02,174 I have solar on my roof. 655 00:42:03,110 --> 00:42:05,110 My bill is minimal. 656 00:42:06,313 --> 00:42:07,747 How does that help or harm the distribution? 657 00:42:09,350 --> 00:42:11,385 What is the status of the distribution network. 658 00:42:11,385 --> 00:42:13,385 >> two answers. 659 00:42:13,988 --> 00:42:15,988 It is interesting because 660 00:42:17,224 --> 00:42:19,224 believe 661 00:42:19,293 --> 00:42:21,293 residential rates are low. 662 00:42:24,732 --> 00:42:27,500 We do not have a lot of solar. 45, $50,000 investment how low 663 00:42:29,360 --> 00:42:30,804 our rates are it didn't pencil out. 664 00:42:31,772 --> 00:42:33,373 Those that pay that premium for solar. 665 00:42:35,543 --> 00:42:38,780 When it comes to increasing load, electric vehicles, 666 00:42:39,480 --> 00:42:41,481 charging at home, fully electrifying homes. 667 00:42:42,883 --> 00:42:44,883 What we have to do with the new 668 00:42:45,185 --> 00:42:46,553 developments is resize infrastructure. 669 00:42:47,488 --> 00:42:50,457 One of the biggest concerns was if the city was looking at 670 00:42:53,600 --> 00:42:55,796 putting in natural gas rights in legacy neighborhoods that would 671 00:43:01,350 --> 00:43:03,350 be very problematic for cec 672 00:43:05,640 --> 00:43:07,640 because the other imagine from 673 00:43:08,743 --> 00:43:10,100 structure was not built to ham that load. 674 00:43:12,914 --> 00:43:15,882 Members pay for infrastructure upgrades. Line extension the member has to 675 00:43:17,385 --> 00:43:19,385 pay out of pocket to do that. 676 00:43:20,989 --> 00:43:23,957 It just comes down to knowing where and when that load is 677 00:43:24,192 --> 00:43:26,192 increasing and making sure we 678 00:43:26,894 --> 00:43:28,428 have the right infrastructure in place. 679 00:43:29,631 --> 00:43:31,131 I can't give you a specific answer to that question. 680 00:43:32,166 --> 00:43:34,166 I don't know if that helps. 681 00:43:34,369 --> 00:43:36,369 >> it does, yes. 682 00:43:37,405 --> 00:43:39,405 >> so we will move next to 683 00:43:40,909 --> 00:43:43,644 cascade natural gas. We do want to make sure we have 684 00:43:43,644 --> 00:43:45,644 time for discussion. 685 00:43:47,148 --> 00:43:49,683 There are slides from cng in that discussion. 686 00:43:51,185 --> 00:43:53,185 Starting the background slides 687 00:43:54,222 --> 00:43:56,222 and pause for questions and get 688 00:43:56,691 --> 00:43:58,691 into that. 689 00:44:00,528 --> 00:44:02,528 >> I will invite my colleague to 690 00:44:10,605 --> 00:44:12,605 start the presentation. 691 00:44:12,907 --> 00:44:14,341 >> good afternoon. Don moore. 692 00:44:15,100 --> 00:44:16,977 Region director for cascade natural gas. 693 00:44:18,460 --> 00:44:21,150 I support operations teams across oregon and washington. 694 00:44:21,750 --> 00:44:24,618 I grew up central oregon. I live here in bend. 695 00:44:28,590 --> 00:44:30,558 This is my first roundtable. I saw a roundtable on the invite 696 00:44:31,920 --> 00:44:32,726 and all of the city of bend information. 697 00:44:33,929 --> 00:44:36,130 Yet I was surprised when I walked in the room to see the 698 00:44:38,200 --> 00:44:40,200 table in this configuration. 699 00:44:40,202 --> 00:44:43,137 We appreciate the dialogue we have had with the city of bend. 700 00:44:43,438 --> 00:44:45,438 We want to continue discussions 701 00:44:45,841 --> 00:44:48,100 with the city what a well designed ordinance MAY look 702 00:44:48,100 --> 00:44:50,100 like. 703 00:44:50,812 --> 00:44:52,812 Specifically we want to ensure 704 00:44:54,490 --> 00:44:56,490 guardrails on housing 705 00:44:56,351 --> 00:44:58,351 affordability and energy 706 00:44:58,420 --> 00:45:01,155 reliable and path wades to recognize cascade investment in 707 00:45:02,691 --> 00:45:04,691 energy efficiency and low carbon 708 00:45:05,194 --> 00:45:07,194 solutions like renewable natural 709 00:45:07,829 --> 00:45:09,829 gas and dual fuel systems. 710 00:45:10,566 --> 00:45:12,934 If the proposal today doesn't take that into consideration we 711 00:45:15,737 --> 00:45:18,573 need to be realistic on the demand on the constrained system 712 00:45:19,842 --> 00:45:21,842 and environmental impact of 713 00:45:22,911 --> 00:45:25,880 generating that electricity. If the city policy does not 714 00:45:26,515 --> 00:45:28,515 account for that it MAY cause 715 00:45:30,719 --> 00:45:32,719 more problems than it solves. 716 00:45:33,188 --> 00:45:35,657 We hope to work with rather than against bend. 717 00:45:36,958 --> 00:45:38,958 We have a legal obligation to 718 00:45:39,562 --> 00:45:41,562 serve customers in bend and we 719 00:45:41,864 --> 00:45:43,864 think we can make a compelling 720 00:45:44,900 --> 00:45:46,900 case for keeping natural gas as 721 00:45:50,539 --> 00:45:53,174 pardon of the bend energy mix. We have been serving central 722 00:45:53,809 --> 00:45:55,809 oregon since 1960s. 723 00:45:57,513 --> 00:46:00,810 We have 62000 customers here in central oregon, 11 communities. 724 00:46:08,791 --> 00:46:10,125 To the far north madras and far south shamalt. 725 00:46:10,826 --> 00:46:12,826 We have 35 local employees 25 726 00:46:18,467 --> 00:46:20,769 are bargain unit employees. Partners at pacific power and 727 00:46:21,537 --> 00:46:23,537 central oregon electric 728 00:46:24,373 --> 00:46:26,373 mentioned resource adequacy. 729 00:46:26,576 --> 00:46:29,411 Cascade is not at odds with either of those utilities. 730 00:46:31,581 --> 00:46:33,581 In fact, inner dependence 731 00:46:34,450 --> 00:46:36,450 between natural gas and electric 732 00:46:36,519 --> 00:46:38,519 utilities is only increasing. 733 00:46:39,756 --> 00:46:41,756 We have sourced a study. 734 00:46:42,125 --> 00:46:44,125 Pacific northwest utilities 735 00:46:46,729 --> 00:46:48,729 conference committee regional 736 00:46:49,650 --> 00:46:51,650 forecast 2025 to 2035. 737 00:46:51,467 --> 00:46:53,467 It lays out in stark terms that 738 00:46:55,138 --> 00:46:57,138 the pacific northwest energy 739 00:46:57,306 --> 00:46:59,306 system is constrained. 740 00:47:01,644 --> 00:47:03,578 Now in the pacific northwest winter peak exceeds summer peak. 741 00:47:08,651 --> 00:47:10,651 When it gets really cold you 742 00:47:11,487 --> 00:47:14,289 need additional BTUs cascade provides. 743 00:47:16,920 --> 00:47:18,920 Extreme weather in JANUARY 14, 744 00:47:19,462 --> 00:47:22,130 2024 affected northwest including bend. 745 00:47:24,300 --> 00:47:26,300 During that 24 hour period 746 00:47:32,709 --> 00:47:34,709 during one hour period 607 he -- 747 00:47:37,747 --> 00:47:39,615 70% of the energy gas came from natural gas. 748 00:47:41,170 --> 00:47:42,751 It is leaned on to provide capacity. 749 00:47:44,187 --> 00:47:46,187 That is there. 750 00:47:47,724 --> 00:47:50,226 Industry leaders in the 10 year forecast stressed urgency for 751 00:47:51,628 --> 00:47:53,628 coordination and investment in 752 00:47:54,264 --> 00:47:56,264 both natural gas and electric 753 00:47:56,566 --> 00:47:58,602 resources. Regional collaboration is 754 00:47:58,602 --> 00:48:01,503 essential. I believe you MAY not want 755 00:48:05,976 --> 00:48:07,976 natural gas but you need it. 756 00:48:08,178 --> 00:48:10,178 There is an interest and 757 00:48:10,247 --> 00:48:13,216 understanding local impact of emissions. Resource it is important to step 758 00:48:13,850 --> 00:48:15,850 back to understand the relative 759 00:48:19,656 --> 00:48:21,656 amount of emissions resource is 760 00:48:22,159 --> 00:48:24,927 from 2023 oregon department environmental quality. 761 00:48:28,732 --> 00:48:30,732 35% of all emissions in 2023 762 00:48:31,340 --> 00:48:33,340 transportation. 763 00:48:33,870 --> 00:48:35,870 29% electricity, 15% natural 764 00:48:35,973 --> 00:48:37,973 gas. 765 00:48:40,143 --> 00:48:42,512 3.4% of all emissions in 2023 were attributed to gas 766 00:48:42,713 --> 00:48:44,713 distributed by cascade. 767 00:48:46,160 --> 00:48:48,160 That is a small amount, cascade 768 00:48:48,952 --> 00:48:50,953 is investing in low carbon solutions. 769 00:48:53,557 --> 00:48:55,557 Like rmg and dual fuel systems. 770 00:48:57,861 --> 00:48:59,861 I will ask my colleague cole to 771 00:49:01,231 --> 00:49:03,231 share information about those 772 00:49:17,810 --> 00:49:18,681 investments. >> don, quick introduction. 773 00:49:21,685 --> 00:49:24,200 I am manager of industrial SERVICEs cascade natural gas 774 00:49:28,759 --> 00:49:30,126 focusing on renewable natural gas development. 775 00:49:31,796 --> 00:49:33,796 I have experience working at 776 00:49:34,197 --> 00:49:36,566 combination electric and gas utility and electric cooperative. 777 00:49:37,501 --> 00:49:40,336 That being said, I want to introduce you to some of the 778 00:49:42,730 --> 00:49:44,730 efforts cascade is doing. In 779 00:49:46,277 --> 00:49:48,277 addition to energy efficiency. 780 00:49:49,413 --> 00:49:51,413 Investments in participation r&d 781 00:49:53,451 --> 00:49:56,860 through gas technology. Renewable natural gas. 782 00:50:01,250 --> 00:50:03,250 Biogas is existing resource 783 00:50:03,294 --> 00:50:04,627 whether or not used or not is a good question. 784 00:50:07,231 --> 00:50:09,231 It is through decomposition of 785 00:50:11,100 --> 00:50:13,603 organic materials in landfills, waste water treatment, 786 00:50:15,206 --> 00:50:18,108 agricultural sites and so forth. Really we have avenues to 787 00:50:19,944 --> 00:50:21,944 repurpose this biogas. 788 00:50:24,749 --> 00:50:26,749 Refined upgraded to meet utility 789 00:50:26,851 --> 00:50:29,619 specifications and utilized in utility transportation. 790 00:50:30,922 --> 00:50:33,423 We make investments in renewable natural gas and we will discuss 791 00:50:36,461 --> 00:50:38,461 those shortly. 792 00:50:38,529 --> 00:50:40,529 Cascade renewable natural gas 793 00:50:40,865 --> 00:50:42,865 efforts are depicted here. 794 00:50:44,350 --> 00:50:46,350 Three projects renewable natural 795 00:50:46,437 --> 00:50:47,871 gas and two projects under development. 796 00:50:51,709 --> 00:50:52,976 One is locally at the knot landfill. 797 00:50:57,810 --> 00:50:58,716 Cascade will own and operate the natural gas plant to use that 798 00:50:59,217 --> 00:51:01,217 resource in the community. 799 00:51:01,319 --> 00:51:03,319 We are looking forward to the 800 00:51:04,689 --> 00:51:07,558 opportunity to capture that, refine and utilize for benefit 801 00:51:08,293 --> 00:51:10,293 of customers. 802 00:51:12,130 --> 00:51:14,130 Cascade efforts in renewable 803 00:51:17,200 --> 00:51:18,736 natural gas are landfills and wastewater treatment plant being. 804 00:51:22,240 --> 00:51:24,141 We have voluntary renewable gas program you can receive supply 805 00:51:26,770 --> 00:51:28,770 of 806 00:51:29,681 --> 00:51:31,681 gas that can help us drive our 807 00:51:33,418 --> 00:51:35,418 efforts in this emerging 808 00:51:35,620 --> 00:51:37,254 technology space. Additionally in bend we are 809 00:51:40,250 --> 00:51:41,392 working on dual fuel heat pump system program. 810 00:51:44,620 --> 00:51:46,620 This is trying to understand is 811 00:51:46,131 --> 00:51:47,665 utilization of dual fuel heat pumps. 812 00:51:48,767 --> 00:51:50,767 Can this be better system that 813 00:51:50,936 --> 00:51:53,471 can benefit both electric and natural gas companies 814 00:51:54,206 --> 00:51:56,206 alleviating demand constraints 815 00:51:56,208 --> 00:51:57,942 existing or future demand constraints. 816 00:51:59,578 --> 00:52:01,578 While also leveraging heating 817 00:52:05,483 --> 00:52:08,190 cooling for customers more cost-effective both summer and 818 00:52:08,487 --> 00:52:10,955 winter. We believe it has great 819 00:52:14,960 --> 00:52:16,494 opportunity to benefit both constrainted grid and meet 820 00:52:17,963 --> 00:52:19,963 customer needs in local area and 821 00:52:21,133 --> 00:52:23,133 expanded service territories. 822 00:52:23,335 --> 00:52:25,335 >> I will ask to pause and check 823 00:52:32,244 --> 00:52:34,244 in with questions so far. 824 00:52:35,481 --> 00:52:37,481 R and g this is a time to ask 825 00:52:39,218 --> 00:52:41,218 questions before the policy. 826 00:52:44,123 --> 00:52:46,123 >> your colleague said 3.4% of 827 00:52:46,993 --> 00:52:48,993 all emissions. 828 00:52:49,361 --> 00:52:50,540 Attributed to cascade natural gas. 829 00:52:55,501 --> 00:52:57,501 Does that include emissions 830 00:52:58,470 --> 00:53:00,400 attributed to distribution leaks? 831 00:53:01,173 --> 00:53:03,173 >> when you say distribution. 832 00:53:03,242 --> 00:53:05,242 These emissions are to the 833 00:53:07,613 --> 00:53:09,714 volumes we provide new customers customers. 834 00:53:11,584 --> 00:53:13,584 In use molecules we report on. 835 00:53:13,986 --> 00:53:16,421 When you talk about transportation can you provide 836 00:53:17,923 --> 00:53:19,923 more context? 837 00:53:20,459 --> 00:53:22,459 >> I am hearing no. 838 00:53:23,729 --> 00:53:25,296 Would not account for distribution leaks? 839 00:53:27,900 --> 00:53:30,869 >> I can answer that question. >> so we can make sure it is on 840 00:53:33,390 --> 00:53:35,390 the recording. 841 00:53:35,308 --> 00:53:37,742 Systems emissions. >> I didn't hear that. 842 00:53:39,278 --> 00:53:41,278 >> it is called system emissions 843 00:53:42,248 --> 00:53:44,248 and gas distributed. 844 00:53:44,850 --> 00:53:46,500 >> other questions. Sarah. 845 00:53:49,488 --> 00:53:51,690 >> I am curious about results of dual fuel heat pump. 846 00:53:52,224 --> 00:53:54,960 What data you expect to share and what that would be shared 847 00:53:56,395 --> 00:53:58,597 with the community. >> reference there the gas 848 00:53:58,597 --> 00:54:00,165 technology institute is project partner. 849 00:54:01,667 --> 00:54:03,667 They are active in utility 850 00:54:05,380 --> 00:54:07,140 industry for pilots and research and development opportunities. 851 00:54:07,140 --> 00:54:09,140 Presentation that was presented 852 00:54:10,410 --> 00:54:13,245 a few weeks ago at a large industry conference. 853 00:54:14,280 --> 00:54:17,116 Publicly available. Preliminary findings can be 854 00:54:17,650 --> 00:54:20,185 referenced now then full findings anticipated to be in 855 00:54:22,989 --> 00:54:24,989 about a year. 856 00:54:27,160 --> 00:54:29,862 Looking to utilize over a full calendar year to understand how 857 00:54:31,431 --> 00:54:34,320 they operate for our customers. >> mike. >> can you talk about the full 858 00:54:39,372 --> 00:54:41,372 cost to deliver r and g to 859 00:54:42,442 --> 00:54:44,442 capital plus deliver recompared 860 00:54:45,512 --> 00:54:47,512 to cost of natural gas. 861 00:54:50,830 --> 00:54:52,485 What is magnitude. >> renewable gas is more 862 00:54:52,485 --> 00:54:54,485 expensive. 863 00:54:55,889 --> 00:54:57,322 We are to comply with regulations. 864 00:54:59,259 --> 00:55:01,259 At time of evaluations it was 865 00:55:01,895 --> 00:55:03,862 most cost-effective to meet obligations. 866 00:55:03,896 --> 00:55:05,896 Scope and scale. 867 00:55:06,599 --> 00:55:09,401 My understanding based on previous analysis. 868 00:55:10,637 --> 00:55:12,637 [Inaudible] 869 00:55:12,939 --> 00:55:14,740 Higher offsetting needs for gas supply. 870 00:55:16,420 --> 00:55:18,420 Those equivalent volumes on 871 00:55:19,212 --> 00:55:21,380 board injecting are serving needs of environmental 872 00:55:23,150 --> 00:55:25,150 requirements and offsetting 873 00:55:25,852 --> 00:55:27,852 natural gas volumes we would 874 00:55:28,922 --> 00:55:31,824 typically source from fossil fuel. >> steve. >> I am interested in the 875 00:55:32,590 --> 00:55:34,590 landfill capture locally. 876 00:55:34,594 --> 00:55:36,762 How it is flared off. Two questions. 877 00:55:41,680 --> 00:55:42,568 How many homes could be heated using that? 878 00:55:45,710 --> 00:55:48,400 What is expected timelie to get usable renewable natural gas off 879 00:55:48,241 --> 00:55:50,241 that site? 880 00:55:53,413 --> 00:55:55,715 >> if you don't mind pivoting back one slide. 881 00:55:57,551 --> 00:55:59,551 In state of oregon customers in 882 00:56:03,624 --> 00:56:05,458 last evaluation last year 672 terms. 883 00:56:08,610 --> 00:56:10,296 Anticipated injecting 2.5 million terms. 884 00:56:11,565 --> 00:56:13,565 3700 homes worth of gas 885 00:56:15,169 --> 00:56:17,203 associated with our volumes there. 886 00:56:17,738 --> 00:56:19,738 As far as lifespan. 887 00:56:21,608 --> 00:56:24,428 I will acknowledge the fact the knot landfill is scheduled to close. 888 00:56:25,713 --> 00:56:28,548 That is to move forward with this opportunity, this plant 889 00:56:29,650 --> 00:56:31,650 will utilize gas continually 890 00:56:32,319 --> 00:56:34,989 generated over the lifetime which we are involved for 20 891 00:56:34,989 --> 00:56:36,989 year period. 892 00:56:37,191 --> 00:56:39,826 There will be renewable natural gas sourced from that site for 893 00:56:41,996 --> 00:56:43,996 at least the next 20 years. 894 00:56:47,401 --> 00:56:49,903 >> 3700 homes off that site? >> that's correct. >> thanks. 895 00:56:50,371 --> 00:56:52,371 >> any other questions? 896 00:56:54,108 --> 00:56:56,776 >> go ahead. >> my understanding r and g from 897 00:56:59,613 --> 00:57:01,613 a variety of feedstocks. 898 00:57:07,540 --> 00:57:09,540 Dairyman neurojects withdairyman now 899 00:57:13,261 --> 00:57:15,261 dairy and man new. 900 00:57:17,365 --> 00:57:19,365 Is cascade uses environmental 901 00:57:19,433 --> 00:57:22,680 attributes from that gas? >> you are correct in the fact 902 00:57:23,471 --> 00:57:25,471 that different r and g sources 903 00:57:26,440 --> 00:57:28,976 have different carbon intensity associated with them. 904 00:57:29,277 --> 00:57:31,811 Company is not involved with anything with dairy. 905 00:57:32,780 --> 00:57:34,780 Reason is most of those projects 906 00:57:36,851 --> 00:57:38,851 are sourced in the low carbon 907 00:57:39,921 --> 00:57:41,921 fuel standard in transportation 908 00:57:42,123 --> 00:57:44,591 industry bigger financial driver. 909 00:57:47,962 --> 00:57:49,962 Federally mandated. 910 00:57:50,765 --> 00:57:52,765 For purposes of compliance in 911 00:57:55,300 --> 00:57:57,300 oregon more carbon agonotic. 912 00:57:57,171 --> 00:58:00,107 Not necessarily focusing on larger investments with dairy 913 00:58:02,310 --> 00:58:03,710 facility with large digester to to be installed. 914 00:58:04,479 --> 00:58:06,280 Not something we are currently involved in. 915 00:58:06,881 --> 00:58:09,516 Not saying won't be involved in the future depending on the 916 00:58:09,951 --> 00:58:11,951 state policies. 917 00:58:12,120 --> 00:58:14,120 >> if cascade gets involved in 918 00:58:14,756 --> 00:58:16,756 the future those attributes 919 00:58:16,858 --> 00:58:18,858 don't help with the cpp 920 00:58:19,694 --> 00:58:22,530 compliance is that correct understanding? 921 00:58:22,530 --> 00:58:25,660 Depending how we are involved with the project we have 922 00:58:27,268 --> 00:58:30,204 different structures. Carbon compliance could be 923 00:58:31,940 --> 00:58:33,940 sourced and utilized if we are 924 00:58:38,246 --> 00:58:41,148 involved with that project. Methane, raw gas and environment 925 00:58:42,830 --> 00:58:44,830 tell attributes associated. 926 00:58:44,619 --> 00:58:46,619 >> anyone else with a question? 927 00:58:49,124 --> 00:58:51,124 What I will ask cascade to do. 928 00:58:51,660 --> 00:58:53,961 Next slides are general feedback. Skip to implementation to make 929 00:58:55,300 --> 00:58:57,300 sure we get on record your 930 00:58:58,700 --> 00:59:00,334 feedback on implementation timeframe and exemptions that 931 00:59:01,169 --> 00:59:03,270 are two things we are discussing today. 932 00:59:04,673 --> 00:59:06,673 Move to that slide and whoever 933 00:59:08,944 --> 00:59:11,646 is presenting on that slide for implementation timeframe. 934 00:59:13,515 --> 00:59:15,716 >> I would be glad to speak to that. 935 00:59:17,190 --> 00:59:19,190 Alyn spector from cascade natural gas. 936 00:59:20,356 --> 00:59:22,523 I appreciate the opportunity to speak at round table about 937 00:59:24,359 --> 00:59:26,359 potential ways to avoid 938 00:59:26,662 --> 00:59:28,729 unintended consequences of a potential fee. 939 00:59:29,598 --> 00:59:31,699 First, we feel strongly especially after hearing 940 00:59:33,435 --> 00:59:35,435 feedback of electric utilities 941 00:59:36,605 --> 00:59:38,605 that until compliance is 942 00:59:39,700 --> 00:59:41,700 demonstrated with hb2021 there 943 00:59:41,577 --> 00:59:43,577 is no guarantee it is going to 944 00:59:43,812 --> 00:59:46,681 reduce carbon emissions. To put this in place. 945 00:59:49,840 --> 00:59:51,619 We would ask that at the very least pacific power will have results this summer. 946 00:59:53,622 --> 00:59:56,557 That is critical information and they are able to meet their 947 00:59:57,660 --> 01:00:00,295 goals, the ordinance shouldn't move forward. 948 01:00:00,295 --> 01:00:02,295 Likewise, we have been working 949 01:00:03,332 --> 01:00:05,332 with the city with the dual fuel 950 01:00:07,436 --> 01:00:09,904 pilot we put together that pairs electric heat pump and gas 951 01:00:10,105 --> 01:00:12,105 furnace to allow each to do what 952 01:00:12,308 --> 01:00:14,308 they do best. 953 01:00:16,780 --> 01:00:17,378 Full findings integrated in MARCH 2027. 954 01:00:18,514 --> 01:00:20,916 We would love to have that pilot complete and provide that data 955 01:00:22,885 --> 01:00:24,886 to the city to help inform what moves forward. 956 01:00:26,722 --> 01:00:29,491 If the ordinance does pass we encourage the city explore this 957 01:00:31,227 --> 01:00:33,828 as multiyear pilot program. Implementation phased in overtime. 958 01:00:34,630 --> 01:00:37,320 I think it is very important to pay attention to impacts to 959 01:00:39,135 --> 01:00:41,803 energy costs, to demand on grid for resource adequacy. 960 01:00:42,438 --> 01:00:44,438 Impacts to carbon to make sure 961 01:00:45,741 --> 01:00:48,143 we are avoiding unintended consequences. 962 01:00:49,545 --> 01:00:52,214 Because some of this analysis that the city had shared in 963 01:00:53,716 --> 01:00:55,716 previous discussion showed 964 01:00:57,419 --> 01:00:58,687 potential for carbon to increase. 965 01:01:01,524 --> 01:01:03,524 at least until such time as 966 01:01:05,928 --> 01:01:07,928 pacific power was meeting hb 967 01:01:08,300 --> 01:01:10,300 hb2021. 968 01:01:11,134 --> 01:01:13,134 Language also mandate that it be 969 01:01:13,769 --> 01:01:15,769 discontinued if there are 970 01:01:17,840 --> 01:01:19,840 resource adequacy issues, 971 01:01:20,576 --> 01:01:21,843 targets not met or increases observed. 972 01:01:23,613 --> 01:01:25,847 We know the city would be transparent on this. 973 01:01:28,151 --> 01:01:29,985 We want to re-enforce revenue allocation should be transparent 974 01:01:35,124 --> 01:01:37,759 to the public. Modifications to strengthen 975 01:01:38,962 --> 01:01:40,396 ordinance avoid unintended consequences. 976 01:01:41,130 --> 01:01:43,130 Like we said, it is very 977 01:01:43,967 --> 01:01:46,936 important to consider utility's capacity to meet state carbon 978 01:01:50,206 --> 01:01:52,206 goals, look from a full fuel 979 01:01:54,277 --> 01:01:56,277 cycle electric and gas gas 980 01:01:57,113 --> 01:01:59,148 perspective as well. Pacific power ability to meet 981 01:02:02,819 --> 01:02:04,819 2021 or looking electric fuel 982 01:02:04,821 --> 01:02:06,821 mix as r and g is put into our 983 01:02:06,823 --> 01:02:08,823 planning documents and shown to 984 01:02:11,761 --> 01:02:13,362 comply with cpp, we ask that be taken into consideration when 985 01:02:13,797 --> 01:02:15,364 you are looking at incremental carbon. 986 01:02:16,967 --> 01:02:18,967 In terms of utility system. 987 01:02:20,360 --> 01:02:22,438 It is critical that before this ordinance is forwarded that 988 01:02:24,708 --> 01:02:26,708 there be an analysis of winter 989 01:02:28,110 --> 01:02:30,110 peak impacts to ensure that 990 01:02:31,915 --> 01:02:34,483 displaced demand can be met by the electric utilities. 991 01:02:36,987 --> 01:02:38,754 Keeping an eye on potential off raches. 992 01:02:42,993 --> 01:02:44,560 The electric utilities experience infrastructure 993 01:02:45,195 --> 01:02:47,529 constraints. If the intent of this ordinance 994 01:02:49,232 --> 01:02:51,232 to reduce carbon, pathways for 995 01:02:54,604 --> 01:02:56,604 low efficiency electric 996 01:02:57,674 --> 01:02:59,674 equipment be eliminated. 997 01:03:00,177 --> 01:03:02,177 So in terms of exemptions. 998 01:03:04,348 --> 01:03:06,348 I'm sure a lot of folks at the 999 01:03:06,416 --> 01:03:09,352 table have feedback. We would love to see an 1000 01:03:10,200 --> 01:03:12,200 exemption for affordable housing 1001 01:03:13,900 --> 01:03:15,625 and housing for first time home buyers, understanding that bend 1002 01:03:17,561 --> 01:03:19,328 is struggling with housing affordability issues. 1003 01:03:21,932 --> 01:03:23,933 I think that just as members of the community we want to make 1004 01:03:25,136 --> 01:03:27,136 sure the folks that work in bend 1005 01:03:29,173 --> 01:03:30,940 are able to live in bend as well. 1006 01:03:34,780 --> 01:03:36,790 Have potential delays on the exemption for the fee. 1007 01:03:36,947 --> 01:03:39,349 If there are impacts to development or if there is 1008 01:03:41,318 --> 01:03:44,153 delays that result from infrastructure constraints for 1009 01:03:46,560 --> 01:03:48,791 incremental electric demand. Making sure infrastructure can 1010 01:03:50,628 --> 01:03:52,495 be built out to meet demand displaced by gas. 1011 01:03:53,464 --> 01:03:55,464 If we are able to comply with 1012 01:03:56,366 --> 01:03:58,366 the climate protection program, 1013 01:03:58,936 --> 01:04:00,117 there is a risk of of 1014 01:04:02,239 --> 01:04:04,239 risk of redone dancy 1015 01:04:04,275 --> 01:04:06,275 in design of ordinance. 1016 01:04:06,910 --> 01:04:08,910 If we are in good faith 1017 01:04:10,815 --> 01:04:12,782 complying with cpp fee remain dormant unless we are not able 1018 01:04:13,417 --> 01:04:15,719 to make compliance. The other piece. 1019 01:04:17,121 --> 01:04:20,900 Gas plays a critical role in resource adequacy. 1020 01:04:20,858 --> 01:04:22,858 Gas and electric system work 1021 01:04:23,494 --> 01:04:25,494 together very effective way. 1022 01:04:29,934 --> 01:04:32,802 We ask dual fuel and emergency back up health and safety value 1023 01:04:37,508 --> 01:04:39,508 to homeowners to have that dual 1024 01:04:40,111 --> 01:04:41,411 fuel system except in the fee. Reductions. 1025 01:04:43,247 --> 01:04:45,247 Backing off the incremental 1026 01:04:49,654 --> 01:04:51,654 carbon from amount of r and g in 1027 01:04:52,690 --> 01:04:55,559 system through integrated resource plan. 1028 01:04:57,962 --> 01:04:59,962 Really what we are saying is we 1029 01:05:00,131 --> 01:05:02,131 can't afford to have the fee 1030 01:05:02,533 --> 01:05:04,533 raising energy costs and carbon. 1031 01:05:05,269 --> 01:05:07,269 That just means making sure that 1032 01:05:07,472 --> 01:05:09,472 this is done the right way, that 1033 01:05:09,741 --> 01:05:11,741 the correct analysis goes into 1034 01:05:15,113 --> 01:05:17,113 the design of the ordinance and 1035 01:05:18,716 --> 01:05:20,716 that until carbon targets are 1036 01:05:20,919 --> 01:05:22,919 met, electrification targets are 1037 01:05:27,859 --> 01:05:30,694 met, this fee lie dormants. It is not decarbonization. 1038 01:05:32,897 --> 01:05:34,198 As previous city presentations have shown. 1039 01:05:37,436 --> 01:05:39,436 There is a risk for some path 1040 01:05:39,437 --> 01:05:41,437 ways with lower efficiency 1041 01:05:42,173 --> 01:05:44,173 equipment until the targets met 1042 01:05:45,777 --> 01:05:47,777 with 2021, carbon MAY increase. 1043 01:05:48,680 --> 01:05:51,516 Keep that in mind. We feel like ordinance should be 1044 01:05:55,520 --> 01:05:57,520 delayed until 2021 can be met. 1045 01:06:00,580 --> 01:06:03,270 We want to avoid duplicate fees by waiving charge if in compliance with climate 1046 01:06:05,630 --> 01:06:07,630 protection and delaying 1047 01:06:07,699 --> 01:06:10,367 ordinance until hybrid study complete. We are glad to continue to work 1048 01:06:14,840 --> 01:06:16,840 with the city to help forward 1049 01:06:18,343 --> 01:06:20,978 decarbonization solutions. We appreciate the time. 1050 01:06:21,947 --> 01:06:23,947 >> that is a good transition to 1051 01:06:26,818 --> 01:06:28,652 the discussion around these two categories, cascade gave input 1052 01:06:31,823 --> 01:06:34,525 to implementation timeline and exception. Cassie has a couple slides. 1053 01:06:36,361 --> 01:06:38,361 I want folks to give perspective 1054 01:06:38,764 --> 01:06:41,198 on those two things as well. What are the things on the list 1055 01:06:42,934 --> 01:06:45,670 you you agree or disagree with? What should the city do in these 1056 01:06:47,473 --> 01:06:49,473 two areas. 1057 01:06:49,975 --> 01:06:51,309 Cassie will get us starting with exemptions. 1058 01:06:53,440 --> 01:06:55,440 >> two topics we are looking for 1059 01:06:56,381 --> 01:06:58,381 input on. 1060 01:07:00,953 --> 01:07:02,953 Exceptions and implementation. 1061 01:07:05,757 --> 01:07:07,250 Exemptions we have three topics or ideas. 1062 01:07:08,727 --> 01:07:10,795 Some came up from our utility presenters and other discussions 1063 01:07:11,897 --> 01:07:13,631 with the council or community members. 1064 01:07:16,402 --> 01:07:17,702 The three topics we would like feedback on. 1065 01:07:19,738 --> 01:07:21,706 Whether there should be exemption for deed restricted 1066 01:07:25,440 --> 01:07:27,440 affordable housing, homes with 1067 01:07:27,179 --> 01:07:29,814 dual fuel heat pumps and homes using renewable natural gas. 1068 01:07:32,418 --> 01:07:34,418 I think conversation on 1069 01:07:34,453 --> 01:07:36,588 renewable natural gas as we thought about this in the last 1070 01:07:37,323 --> 01:07:39,323 week. 1071 01:07:43,196 --> 01:07:45,196 It feels it MAY be challenging 1072 01:07:45,464 --> 01:07:47,464 to exempt a single home. 1073 01:07:48,734 --> 01:07:50,902 More broadly should there becomedation for use of 1074 01:07:51,671 --> 01:07:54,339 renewable natural gas on individual home basis or 1075 01:07:55,541 --> 01:07:57,541 potentially as cascade proposed 1076 01:07:59,450 --> 01:08:01,346 that it would be factored into the fee equation. 1077 01:08:02,748 --> 01:08:04,748 The mix of the fee equation and 1078 01:08:06,552 --> 01:08:07,853 then it would be adjusted system-wide. 1079 01:08:10,356 --> 01:08:12,356 Those are the three ideas. 1080 01:08:13,192 --> 01:08:15,192 Affordable housing, rng and 1081 01:08:17,630 --> 01:08:19,698 other additional ideas from round table participants. 1082 01:08:20,990 --> 01:08:22,990 >> for our participants. 1083 01:08:24,203 --> 01:08:26,400 If you want to comment on these ideas, present your own ideas 1084 01:08:27,340 --> 01:08:29,441 this is the point to get that conversation started. 1085 01:08:30,943 --> 01:08:32,943 We have committee folks, 1086 01:08:33,450 --> 01:08:35,450 affordable housing committee. 1087 01:08:35,114 --> 01:08:37,683 I can guess what you might want to say. 1088 01:08:38,217 --> 01:08:40,217 Whoever wants to start us off. 1089 01:08:40,620 --> 01:08:42,620 We are gathering information. 1090 01:08:44,324 --> 01:08:45,690 We are all respectful of every one's position. 1091 01:08:46,859 --> 01:08:48,859 We want to hear conflicting 1092 01:08:49,262 --> 01:08:51,262 positions how to deliberator on 1093 01:08:52,432 --> 01:08:54,866 this to be pick. Garrett, kick us off. 1094 01:08:57,704 --> 01:09:00,406 >> deed restricted affordable housing look at ami target 1095 01:09:01,674 --> 01:09:03,674 knowing bend's housing crisis is 1096 01:09:04,978 --> 01:09:06,978 around the entire. 1097 01:09:09,783 --> 01:09:11,783 I am throwing that out there for 1098 01:09:13,119 --> 01:09:15,454 consideration. >> other thoughts? 1099 01:09:17,824 --> 01:09:19,824 No, we shouldn't have 1100 01:09:21,961 --> 01:09:24,530 have the exemptions. 1101 01:09:26,499 --> 01:09:29,401 We want to hear it all. >> mandy. >> the affordable housing 1102 01:09:31,738 --> 01:09:33,907 committee does want an exemption for deed restricted affordable 1103 01:09:33,907 --> 01:09:35,907 housing. 1104 01:09:38,144 --> 01:09:40,144 I would agree with garrett that 1105 01:09:40,347 --> 01:09:43,215 maybe we should extend that just because we do have a problem 1106 01:09:45,252 --> 01:09:47,252 with our middle housing as 1107 01:09:48,555 --> 01:09:49,889 well-being more affordable in bend. 1108 01:09:52,159 --> 01:09:54,159 >> can you both expand? 1109 01:09:54,194 --> 01:09:56,194 Quantify what you mean by middle 1110 01:09:57,130 --> 01:09:59,130 housing what that looks like. 1111 01:09:59,433 --> 01:10:01,000 >> I will throw it up there 120% is our preference. 1112 01:10:04,171 --> 01:10:06,171 Open to conversation on that. 1113 01:10:06,973 --> 01:10:09,800 >> that is online with what we end up with as well. 1114 01:10:09,343 --> 01:10:11,343 >> other thoughts? 1115 01:10:13,280 --> 01:10:16,140 I know people have them. >> general question. 1116 01:10:16,550 --> 01:10:18,550 Are we talking about what could 1117 01:10:19,850 --> 01:10:21,850 be done with the fee if there is 1118 01:10:22,789 --> 01:10:24,757 a fee imposed to help offset that? 1119 01:10:25,192 --> 01:10:28,270 >> not today. Revenue is going to be spent 1120 01:10:28,929 --> 01:10:30,929 that is a separate conversation. 1121 01:10:30,998 --> 01:10:32,998 If that helps you think about 1122 01:10:34,468 --> 01:10:36,936 the exemption feel free free to 1123 01:10:37,437 --> 01:10:39,437 expand on that. 1124 01:10:39,640 --> 01:10:41,640 >> environment and climate 1125 01:10:43,344 --> 01:10:45,913 committee supports exemption deed restricted affordable 1126 01:10:45,913 --> 01:10:48,282 housing. Most is all electric. 1127 01:10:48,282 --> 01:10:50,282 This 1128 01:10:51,485 --> 01:10:53,485 this is a signal from ecc to 1129 01:10:53,854 --> 01:10:55,854 remove barriers to affordable 1130 01:10:56,190 --> 01:10:58,190 housing as bend needs more. 1131 01:11:00,561 --> 01:11:03,396 I can go down the list for dual fuel equipment. 1132 01:11:04,598 --> 01:11:06,598 Ecc does not support exemption. 1133 01:11:07,535 --> 01:11:10,203 We support fee reduction for mixed fuel heating systems. 1134 01:11:12,239 --> 01:11:13,907 We think adding heat pump should be acknowledged. 1135 01:11:18,679 --> 01:11:20,679 We don't want to create loophole 1136 01:11:21,549 --> 01:11:23,549 where you don't pay a fee. 1137 01:11:25,219 --> 01:11:28,122 You can adjust settings so gas kicks in at 50 . 1138 01:11:28,122 --> 01:11:30,122 That would be a gas system. 1139 01:11:32,590 --> 01:11:34,594 We want to have the rate be conservative reflecting 1140 01:11:35,290 --> 01:11:37,290 continued gas use and 1141 01:11:38,232 --> 01:11:40,299 recognizing the contribution of electric heat pump. 1142 01:11:43,337 --> 01:11:45,337 In terms of rng we do not 1143 01:11:45,406 --> 01:11:47,741 support exemption or reduction for rng. 1144 01:11:50,811 --> 01:11:53,647 It is simply injected into the gas apply with other fuels. 1145 01:11:56,384 --> 01:11:58,618 Rng is important and useful. It should be prioritized for 1146 01:12:00,888 --> 01:12:02,888 more hard to electrify sectors 1147 01:12:03,724 --> 01:12:05,726 such as heavy industry and transportation and not 1148 01:12:06,494 --> 01:12:08,494 residential buildings that are 1149 01:12:09,397 --> 01:12:12,299 easier to electrify. >> all right. 1150 01:12:13,267 --> 01:12:14,468 Other thoughts? Sarah. 1151 01:12:15,770 --> 01:12:17,770 >> I guess I was going to second 1152 01:12:19,507 --> 01:12:21,507 the comment around ami level 1153 01:12:22,343 --> 01:12:24,343 also 80 and 120 from chamber 1154 01:12:25,790 --> 01:12:27,614 perspective work force housing band is important to focus on. 1155 01:12:28,149 --> 01:12:30,149 One other thing we are talking 1156 01:12:30,985 --> 01:12:32,985 about and this is not pertaining 1157 01:12:33,521 --> 01:12:35,521 to multi-family per se defining 1158 01:12:36,558 --> 01:12:38,558 what that looks like because in 1159 01:12:44,532 --> 01:12:46,532 some instances like quad or 1160 01:12:47,680 --> 01:12:49,680 duplex or quadplex. 1161 01:12:49,237 --> 01:12:51,237 What that looks 1162 01:12:52,774 --> 01:12:55,642 looks like to ensure builders are aware of that. 1163 01:12:58,790 --> 01:13:00,790 >> when we talked about the fee 1164 01:13:00,248 --> 01:13:02,248 not applying to large 1165 01:13:02,584 --> 01:13:04,218 multi-family developments. Is there ability to be clear in 1166 01:13:06,488 --> 01:13:08,889 our code what that means and what this would apply to? 1167 01:13:09,424 --> 01:13:11,424 >> it is something we plan to 1168 01:13:12,494 --> 01:13:14,828 bring to the council on APRIL 22 because that question. 1169 01:13:15,130 --> 01:13:17,130 we have heard from the council 1170 01:13:17,966 --> 01:13:19,633 we don't want to apply to multi-family. 1171 01:13:20,936 --> 01:13:23,904 Where is that cut off? We entered discussions with 1172 01:13:26,408 --> 01:13:29,143 staff this week to define those. We will talk about it with the council. 1173 01:13:29,344 --> 01:13:31,344 I would rather wait. 1174 01:13:35,484 --> 01:13:37,484 We are actively discussing it. 1175 01:13:37,519 --> 01:13:39,519 I would like to wait. 1176 01:13:39,755 --> 01:13:41,288 >> they are flagging for clarity. 1177 01:13:42,924 --> 01:13:44,924 >> in the definitions what the 1178 01:13:45,560 --> 01:13:48,396 code is applicable to where that would be defined and we will 1179 01:13:48,697 --> 01:13:50,697 include that in the discussion 1180 01:13:52,768 --> 01:13:54,769 on the 22nd. >> scott. 1181 01:13:54,903 --> 01:13:56,903 >> thanks. 1182 01:13:58,600 --> 01:14:00,942 Human rights commission would support deed restricted 1183 01:14:01,476 --> 01:14:03,476 affordable housing exemption 1184 01:14:03,979 --> 01:14:06,180 along with affordable housing advisory committee recognizing 1185 01:14:07,816 --> 01:14:09,816 to be fair and equitable with 1186 01:14:11,120 --> 01:14:13,120 that middle range up to 120%. 1187 01:14:13,489 --> 01:14:16,457 Just wanted to emphasize that from our perspective. 1188 01:14:21,463 --> 01:14:23,463 Thank you. 1189 01:14:27,703 --> 01:14:29,703 >> go ahead. 1190 01:14:29,805 --> 01:14:31,805 >> affordable housing. 1191 01:14:32,741 --> 01:14:34,741 We think the vast majority of 1192 01:14:36,145 --> 01:14:38,145 affordable housing is already 1193 01:14:38,213 --> 01:14:41,182 all electric or multi-family that is do nothing addition to 1194 01:14:41,750 --> 01:14:43,750 the policy. 1195 01:14:46,388 --> 01:14:48,389 From my perspective the looming equity issue I see around 1196 01:14:49,258 --> 01:14:51,258 expanding fossil-fuel network 1197 01:14:52,328 --> 01:14:54,328 and this is in the oregon state 1198 01:14:55,764 --> 01:14:57,764 energy strategy. 1199 01:14:58,367 --> 01:15:00,367 Risks of having gas asset and 1200 01:15:02,400 --> 01:15:04,272 having homeowner middle or low income or renter sadeled with 1201 01:15:04,807 --> 01:15:06,807 getting gas out of the house 1202 01:15:08,978 --> 01:15:10,712 that is equity crisis on the horizon. 1203 01:15:13,582 --> 01:15:14,849 Anything to reduce fossil fuel expansion. 1204 01:15:15,952 --> 01:15:18,920 two-thirdses gas bill today are maintenance and that is not going away. 1205 01:15:20,623 --> 01:15:22,623 It is important we neat goals 1206 01:15:23,993 --> 01:15:25,993 today. 1207 01:15:27,363 --> 01:15:29,363 I want everybody to be cognizant 1208 01:15:30,266 --> 01:15:31,933 the more we build out the fossil-fuel. 1209 01:15:34,337 --> 01:15:36,337 More we take to electric fiit is 1210 01:15:39,776 --> 01:15:41,776 going to disproportionately hit 1211 01:15:42,311 --> 01:15:44,613 people least able to deal with that. 1212 01:15:46,616 --> 01:15:48,784 Multi fuel equipment cascade pilot is good example. 1213 01:15:51,287 --> 01:15:53,287 There are many combinations dual 1214 01:15:55,791 --> 01:15:57,791 fuel house. 1215 01:15:58,528 --> 01:16:00,528 Different heat pumps. 1216 01:16:00,830 --> 01:16:03,598 Set points tweaked differently by different renters. 1217 01:16:04,767 --> 01:16:06,767 The range of outcomes is huge. 1218 01:16:09,306 --> 01:16:10,872 As city is considering that, be conservative and realistic. 1219 01:16:11,741 --> 01:16:13,741 Not every house is switching 1220 01:16:15,111 --> 01:16:16,311 from gas to electric at 35 . 1221 01:16:18,147 --> 01:16:21,490 Realistic carbon benefit is more marginal when we think in 1222 01:16:25,756 --> 01:16:28,624 practice how dual fuel systems are rolled out. Renewable natural gas. 1223 01:16:32,950 --> 01:16:34,950 Last time I was at industry 1224 01:16:35,832 --> 01:16:38,330 conference in nashville we had lunch or dinner with three 1225 01:16:38,134 --> 01:16:40,570 separate clients. They were all talking about a 1226 01:16:40,570 --> 01:16:42,570 cool project. 1227 01:16:44,240 --> 01:16:46,240 It was not the same project. 1228 01:16:46,776 --> 01:16:48,776 I would expect gas utilities 1229 01:16:48,845 --> 01:16:51,460 looking at the small pool of available projects. 1230 01:16:54,170 --> 01:16:56,170 We shouldn't be hedging bets 1231 01:16:57,287 --> 01:16:59,287 that cascade will meet all 1232 01:16:59,789 --> 01:17:00,990 compliance goals through rng alone. 1233 01:17:03,160 --> 01:17:05,294 Public utility commission has not acknowledge would long-range 1234 01:17:06,930 --> 01:17:08,930 planning to comply with cpp. 1235 01:17:11,134 --> 01:17:12,968 City of bend should be cognizant of that. 1236 01:17:15,500 --> 01:17:16,205 >> allen for your long-range plan. 1237 01:17:17,700 --> 01:17:19,700 When do you think that will go 1238 01:17:19,309 --> 01:17:21,309 through the process and be 1239 01:17:22,579 --> 01:17:24,579 complete for you and your plans? 1240 01:17:26,830 --> 01:17:28,830 >> I might defer to my colleague 1241 01:17:32,523 --> 01:17:34,523 on that. 1242 01:17:34,691 --> 01:17:36,259 >> context when you say commission recognition. 1243 01:17:39,129 --> 01:17:41,129 Can you clarify how you view 1244 01:17:42,320 --> 01:17:44,320 that? 1245 01:17:45,200 --> 01:17:46,769 >> cascade was making insufficient supporting 1246 01:17:48,172 --> 01:17:50,172 assumptions about cost. 1247 01:17:51,709 --> 01:17:53,709 They do not think cost 1248 01:17:54,211 --> 01:17:56,211 assumptions are realistically 1249 01:17:58,820 --> 01:18:00,820 guaranteeing low rates. 1250 01:18:00,684 --> 01:18:02,684 How does cascade resolve that if 1251 01:18:06,991 --> 01:18:09,859 it is 90% of compliance portfolio? 1252 01:18:15,766 --> 01:18:17,935 >> that is a specific question. >> what I am looking for is 1253 01:18:17,935 --> 01:18:19,935 timelines. 1254 01:18:20,237 --> 01:18:22,372 That is what we are talking about today. 1255 01:18:24,208 --> 01:18:26,643 Implementation timelines. When is pacific power going to 1256 01:18:26,944 --> 01:18:29,450 comply? Timelines for you all. 1257 01:18:30,347 --> 01:18:32,749 We know there are specific places and back and forth. 1258 01:18:35,586 --> 01:18:37,220 What is the expectation when we get to the point where you have 1259 01:18:39,123 --> 01:18:41,123 a plan that is the thing you are 1260 01:18:41,225 --> 01:18:43,225 implementing? 1261 01:18:43,494 --> 01:18:45,494 >> absolutely. 1262 01:18:47,765 --> 01:18:50,134 Best cost options of rng. Timeline I can't speak to that 1263 01:18:50,134 --> 01:18:53,360 todays. I will be glad to follow up with 1264 01:18:53,671 --> 01:18:56,539 the city with more detail. What I will say the projects 1265 01:18:58,476 --> 01:19:00,476 that we are discussing today. 1266 01:19:00,978 --> 01:19:02,646 There are three that are fully operational right now. 1267 01:19:04,916 --> 01:19:06,916 It is more than hypothetical. 1268 01:19:07,552 --> 01:19:09,552 In terms how that is going to be 1269 01:19:10,721 --> 01:19:12,823 utilized for cpp compliance we continue to have those 1270 01:19:13,691 --> 01:19:16,660 conversations with regulators. If it is a priority of 1271 01:19:17,495 --> 01:19:19,495 communities that is for 1272 01:19:19,664 --> 01:19:21,999 compliance that is something we would take back to integrated 1273 01:19:23,634 --> 01:19:25,634 resource planning team. 1274 01:19:25,870 --> 01:19:27,870 We would start that conversation 1275 01:19:28,139 --> 01:19:30,139 to work with the city to 1276 01:19:32,944 --> 01:19:34,944 incorporate that in a way that 1277 01:19:37,150 --> 01:19:39,850 is satisfactory to the city and regulators. We would be happy to continue 1278 01:19:40,840 --> 01:19:42,840 those discussions. 1279 01:19:44,789 --> 01:19:46,523 >> for councilors to gather information. 1280 01:19:47,292 --> 01:19:49,292 We are not at the same level 1281 01:19:49,594 --> 01:19:51,594 many of you are. 1282 01:19:53,198 --> 01:19:55,198 When you talk in acronyms, I ask 1283 01:19:55,266 --> 01:19:58,203 that you take it on a level we can understand. 1284 01:19:58,203 --> 01:20:00,203 >> I apologize. 1285 01:20:04,242 --> 01:20:06,242 >> that is okay. 1286 01:20:07,211 --> 01:20:08,845 We haven't heard from david or john. 1287 01:20:10,148 --> 01:20:12,148 You don't have to if there is 1288 01:20:12,751 --> 01:20:14,751 anything to add. 1289 01:20:16,821 --> 01:20:18,821 >> I will go ahead. 1290 01:20:19,624 --> 01:20:21,992 Local 290 would support deed restriction for affordable 1291 01:20:22,427 --> 01:20:24,427 housing. 1292 01:20:26,364 --> 01:20:28,364 120 ami. 1293 01:20:29,401 --> 01:20:31,401 Obviously we are in full support 1294 01:20:32,637 --> 01:20:34,637 homes with dual fuel equipment. 1295 01:20:34,806 --> 01:20:37,775 I have had it in my homes in central oregon since 2002. 1296 01:20:39,277 --> 01:20:41,712 They work great. They both supply when the 1297 01:20:44,115 --> 01:20:46,115 temperatures are low and gas can 1298 01:20:47,753 --> 01:20:49,620 make up that difference. When the heat pumps can't. 1299 01:20:50,154 --> 01:20:51,489 They work very well in this climate. 1300 01:20:53,525 --> 01:20:56,294 That is something that needs to be thought of, too. 1301 01:21:00,232 --> 01:21:02,232 Dual fuel projects like that are 1302 01:21:02,601 --> 01:21:04,601 different in different climate. 1303 01:21:05,704 --> 01:21:07,704 This climate supports the good 1304 01:21:08,707 --> 01:21:10,707 dual fuel program. 1305 01:21:10,742 --> 01:21:12,742 Mild climates not so much. 1306 01:21:13,946 --> 01:21:15,946 We have pretty decent winters, 1307 01:21:17,116 --> 01:21:19,116 not this year. 1308 01:21:19,318 --> 01:21:20,751 Renewable natural gas we support 100%. 1309 01:21:22,488 --> 01:21:24,488 To think in the future to add to 1310 01:21:25,900 --> 01:21:27,859 that just because technologies change and things change. 1311 01:21:28,927 --> 01:21:30,927 What might be available changes 1312 01:21:34,833 --> 01:21:36,833 is there might be hydrogen mix 1313 01:21:37,669 --> 01:21:39,669 in natural gas to do the same 1314 01:21:41,173 --> 01:21:43,173 thing to reduce carbon of the 1315 01:21:43,709 --> 01:21:46,344 gas. >> john. >> can we go back. 1316 01:21:47,746 --> 01:21:49,746 There was a stat about the 1317 01:21:51,250 --> 01:21:53,250 impact of carbon from cascade 1318 01:21:53,752 --> 01:21:55,752 natural gas presented that 1319 01:21:56,488 --> 01:21:58,488 showed that 15% emissions from 1320 01:21:59,658 --> 01:22:02,427 natural gas versus 29% from electricity. 1321 01:22:04,163 --> 01:22:06,163 Can you help us understand that? 1322 01:22:07,133 --> 01:22:09,133 It makes it stand like the 1323 01:22:09,435 --> 01:22:11,435 impact of electricity has twice 1324 01:22:16,750 --> 01:22:19,100 the carbon outputna natural gas is that twice supply coming from 1325 01:22:22,415 --> 01:22:25,116 electricity versus natural gas? How do we understand. 1326 01:22:26,252 --> 01:22:29,220 >> I will share sources for the study to provide more information. 1327 01:22:30,623 --> 01:22:32,623 Some of it does pertain to 1328 01:22:33,260 --> 01:22:35,260 scaling the delivery of gas 1329 01:22:36,950 --> 01:22:38,950 versus delivery of electricity 1330 01:22:40,232 --> 01:22:43,100 looking at the fuel mix of the electric system today. 1331 01:22:43,970 --> 01:22:45,970 Looking at the direct use of 1332 01:22:48,141 --> 01:22:50,141 natural gas versus the use of 1333 01:22:50,309 --> 01:22:51,610 nonrenewable energy for electric generation. 1334 01:22:52,612 --> 01:22:54,813 There are multiple factors that go into that. 1335 01:22:55,782 --> 01:22:57,782 I would be very happy to make 1336 01:22:57,984 --> 01:22:59,984 sure -- there is a link to the 1337 01:23:01,521 --> 01:23:04,356 source on the slides now up on the city website. 1338 01:23:06,259 --> 01:23:08,259 >> in the deq study from oregon. 1339 01:23:08,661 --> 01:23:11,396 Good question. >> I guess that's still trying 1340 01:23:13,320 --> 01:23:16,100 to process what you are saying. However, I guess in terms what 1341 01:23:18,404 --> 01:23:20,404 is asked in exemptions here. 1342 01:23:24,310 --> 01:23:26,545 Conversations at bdad support exemptions around deed 1343 01:23:27,146 --> 01:23:29,146 restricted affordable housing we 1344 01:23:29,649 --> 01:23:31,649 believe the housing crisis is 1345 01:23:32,452 --> 01:23:34,452 real and we want to support ways 1346 01:23:34,821 --> 01:23:37,123 to offset that impact to homeowners. 1347 01:23:38,291 --> 01:23:40,291 We support continuing to do 1348 01:23:40,293 --> 01:23:42,294 projects dual fuel proof of concept. 1349 01:23:43,563 --> 01:23:45,563 There needs to be more data to 1350 01:23:46,399 --> 01:23:49,340 support the fee structure and outcomes that that ultimately 1351 01:23:50,336 --> 01:23:52,336 gets passed to the home owners. 1352 01:23:54,474 --> 01:23:56,474 Those are the discussions we 1353 01:23:58,745 --> 01:24:00,790 have. >> garrett. 1354 01:24:01,381 --> 01:24:03,381 >> there is a lot of action at 1355 01:24:03,683 --> 01:24:05,683 the state to reduce fears to 1356 01:24:06,987 --> 01:24:08,987 building certain housing types, 1357 01:24:09,923 --> 01:24:12,224 condos in the triplex, fourplex and beyond. 1358 01:24:12,759 --> 01:24:15,728 Maybe consideration for exemptions to hold off on those 1359 01:24:17,664 --> 01:24:19,866 housing types to begin with to let progress play out to see if 1360 01:24:21,735 --> 01:24:23,735 we can bring to market rather 1361 01:24:24,370 --> 01:24:25,337 than adding hurdle to development. 1362 01:24:26,973 --> 01:24:28,841 >> something to separate by housing types. 1363 01:24:29,943 --> 01:24:31,943 Other thoughts on exemptions. 1364 01:24:32,212 --> 01:24:34,212 If you think of one later we 1365 01:24:35,182 --> 01:24:36,382 will come back to you. Sarah. 1366 01:24:37,851 --> 01:24:39,851 >> a couple comments about the 1367 01:24:41,755 --> 01:24:43,956 stranded asset for exemptions of ami's of housing. 1368 01:24:46,560 --> 01:24:49,495 All homes will be dual fuel. Infrastructure will be laid for 1369 01:24:50,970 --> 01:24:52,970 gas and electricity because of 1370 01:24:52,990 --> 01:24:54,990 the nature of the choice issue. 1371 01:24:58,539 --> 01:25:00,606 I think that eliminates concept of stranded asset. 1372 01:25:02,576 --> 01:25:04,576 Think about this broadly when we 1373 01:25:06,800 --> 01:25:09,480 think about what that ami exemption would look like. >> thank you. 1374 01:25:11,418 --> 01:25:13,850 I think to make sure we are grounding for anyone watching. 1375 01:25:14,488 --> 01:25:16,488 We are talking about one time 1376 01:25:17,825 --> 01:25:19,825 fee at beginning of new 1377 01:25:22,162 --> 01:25:24,162 construction. 1378 01:25:25,432 --> 01:25:27,100 These exemptions at time of new construction. 1379 01:25:29,503 --> 01:25:31,503 Final thoughts on exemptions 1380 01:25:34,241 --> 01:25:36,542 before implementation timeline. Robin. 1381 01:25:40,781 --> 01:25:42,781 >> I wanted to add that ecc only 1382 01:25:43,951 --> 01:25:45,951 supports one exemption deed 1383 01:25:46,520 --> 01:25:49,220 restricted affordable housing. We want to limit exemption. 1384 01:25:51,326 --> 01:25:53,326 Every exemption reduces 1385 01:25:53,360 --> 01:25:55,360 emissions that this has. 1386 01:25:55,663 --> 01:25:57,663 Every exemption adds 1387 01:25:58,299 --> 01:26:00,299 administrative burden to the 1388 01:26:01,569 --> 01:26:04,400 policy, additional tracking, calculations, enforcement. 1389 01:26:05,740 --> 01:26:08,275 We have had 20% of the snowpack in deschutes. 1390 01:26:09,110 --> 01:26:11,110 We need more climate action now. 1391 01:26:11,846 --> 01:26:13,947 Those exemptions limit impact of the policy. 1392 01:26:15,316 --> 01:26:17,316 We advocate for less exemptions. 1393 01:26:20,855 --> 01:26:22,855 >> thank you for that. 1394 01:26:23,357 --> 01:26:25,357 >> one consideration not voiced 1395 01:26:26,227 --> 01:26:28,227 is winter heating via electric 1396 01:26:28,963 --> 01:26:31,465 is more demand than summer. If there are developments that 1397 01:26:34,436 --> 01:26:36,436 cannot meet that incremental 1398 01:26:37,472 --> 01:26:39,472 development that regards large 1399 01:26:40,808 --> 01:26:42,808 upgrades by electric utilities 1400 01:26:42,844 --> 01:26:44,844 they would penalize and delay 1401 01:26:45,880 --> 01:26:47,880 while that infrastructure is 1402 01:26:48,549 --> 01:26:50,549 built out gas resource adequacy 1403 01:26:51,853 --> 01:26:54,221 to mead that and get that up and running sooner. >> final thought? 1404 01:26:58,226 --> 01:27:00,226 >> I had other ideas. 1405 01:27:00,595 --> 01:27:02,595 >> any home that has natural gas 1406 01:27:04,933 --> 01:27:07,202 that is going to include solar. Put an exemption on home that 1407 01:27:07,202 --> 01:27:09,202 has that. 1408 01:27:10,605 --> 01:27:12,605 Another one could be any home 1409 01:27:15,443 --> 01:27:18,178 that for the future behind every appliance has both gas and electric. 1410 01:27:18,913 --> 01:27:20,913 What they choose now can be 1411 01:27:21,182 --> 01:27:23,784 whatever service they want. It could be changed at any point. 1412 01:27:26,187 --> 01:27:28,187 Not extra cost down the road. 1413 01:27:28,490 --> 01:27:30,490 it is already available and 1414 01:27:30,659 --> 01:27:33,527 built into the home. >> thoughts on those ideas? 1415 01:27:34,396 --> 01:27:37,332 >> one thing on solar. Ecc we touched on that in our 1416 01:27:37,332 --> 01:27:39,332 last meeting. 1417 01:27:40,636 --> 01:27:42,636 If we want to add solar to the 1418 01:27:42,938 --> 01:27:45,873 conversation we don't want exemption but reduced fee in calculation. 1419 01:27:46,341 --> 01:27:48,341 That would be based on the size 1420 01:27:48,844 --> 01:27:50,611 of the system and size of the house. 1421 01:27:54,316 --> 01:27:56,316 As we know with the grid being 1422 01:27:56,618 --> 01:27:58,618 dirty, these local renewable 1423 01:27:58,820 --> 01:28:00,820 emissions could really support 1424 01:28:01,123 --> 01:28:03,123 to make that grid cleaner. 1425 01:28:03,392 --> 01:28:06,160 We don't want it as exemption. You could have one panel on your 1426 01:28:07,960 --> 01:28:08,562 home and that would eliminate the fee. 1427 01:28:10,165 --> 01:28:13,134 We want to acknowledge addition of solar because we think it is 1428 01:28:14,870 --> 01:28:16,870 an important part of this 1429 01:28:17,639 --> 01:28:20,341 conversation, a reduction. >> brennan. 1430 01:28:22,511 --> 01:28:24,511 >> reiterate robin's point as 1431 01:28:25,347 --> 01:28:27,347 well and when we consider 1432 01:28:27,883 --> 01:28:29,883 exemptions look in totality. 1433 01:28:30,286 --> 01:28:32,920 What can realistically be administered by a team of two in 1434 01:28:32,988 --> 01:28:35,756 the city. Back to sarah's point. 1435 01:28:42,231 --> 01:28:44,231 I want to push back on the idea 1436 01:28:46,100 --> 01:28:48,569 stranded assets are a stranded issue. 1437 01:28:49,738 --> 01:28:51,738 Affordable single family housing 1438 01:28:52,274 --> 01:28:54,274 built all electric in bend and 1439 01:28:54,710 --> 01:28:57,645 sisters and many others. Good proof of concept gas is 1440 01:28:58,514 --> 01:29:00,948 only utility you don't need to live in a house. 1441 01:29:01,350 --> 01:29:03,985 >> thank you. Final thoughts on exemptions 1442 01:29:05,755 --> 01:29:07,755 before implementation? 1443 01:29:08,257 --> 01:29:10,257 >> to echo sarah's point. 1444 01:29:10,559 --> 01:29:12,961 In talking to builders how fee is per equipment. 1445 01:29:13,495 --> 01:29:15,495 All infrastructure is brought 1446 01:29:15,598 --> 01:29:17,598 out to new construction gas and 1447 01:29:18,000 --> 01:29:20,000 electric to convert in the 1448 01:29:22,171 --> 01:29:24,171 future so we don't run into risk 1449 01:29:24,440 --> 01:29:25,974 of stranded asset. >> allen. 1450 01:29:27,443 --> 01:29:28,943 To the point of limited staff to administer this. 1451 01:29:30,479 --> 01:29:32,479 That is why and talking about 1452 01:29:34,183 --> 01:29:37,152 the fuel mix today not being decarbonized on electric tsai. 1453 01:29:40,890 --> 01:29:42,890 That is why it is important to 1454 01:29:47,396 --> 01:29:49,396 have this fee lie dormant until 1455 01:29:51,467 --> 01:29:53,467 the carbon intentionally of 1456 01:29:53,969 --> 01:29:55,237 electricity and gas when that switches. 1457 01:29:57,273 --> 01:30:00,242 Then the fee can take effect. >> next topic. 1458 01:30:02,211 --> 01:30:04,412 When should this be in effect. Timeline, considerations there 1459 01:30:05,715 --> 01:30:07,715 which you have given us in your 1460 01:30:09,452 --> 01:30:11,452 presentation which I took notes 1461 01:30:11,621 --> 01:30:13,889 on. >> implementation timeline 1462 01:30:15,124 --> 01:30:17,124 looking for feedback on 1463 01:30:17,794 --> 01:30:19,361 effective date of fee. Starting point date we would 1464 01:30:21,164 --> 01:30:24,660 like to put out would go into effect JANUARY 1, 2028. 1465 01:30:26,169 --> 01:30:28,169 Some of the things that we 1466 01:30:31,400 --> 01:30:33,108 thought of when we were thinking about appropriate timeline. 1467 01:30:33,643 --> 01:30:35,643 Pacific power's compliance for 1468 01:30:36,279 --> 01:30:38,279 house bill 2021. 1469 01:30:39,649 --> 01:30:41,649 Part was based on understanding 1470 01:30:42,952 --> 01:30:44,952 that pacific power has rfp open 1471 01:30:45,255 --> 01:30:47,255 this year that might take to 1472 01:30:48,525 --> 01:30:50,727 ends of year for costs to give information about compliance 1473 01:30:50,727 --> 01:30:52,727 timelines. 1474 01:30:54,164 --> 01:30:56,465 We might get information sooner. That is interesting 1475 01:30:57,901 --> 01:30:59,901 consideration. 1476 01:31:07,377 --> 01:31:09,645 Another one is ideas implementation of OCTOBER 2026 1477 01:31:16,486 --> 01:31:19,221 that becomes mandatory APRIL of 2027 legislative session next year. 1478 01:31:20,857 --> 01:31:22,857 We did hear from pacific power 1479 01:31:24,694 --> 01:31:26,694 today there is potential rumors 1480 01:31:29,433 --> 01:31:31,433 of changes to greenhouse gas 1481 01:31:33,360 --> 01:31:35,305 bill 2021 which would have significant impact on how fee is 1482 01:31:35,305 --> 01:31:37,840 calculated. Anything in the legislative 1483 01:31:40,343 --> 01:31:43,790 session we need time to accommodate. 1484 01:31:46,149 --> 01:31:48,149 >> this is the starting place. 1485 01:31:48,452 --> 01:31:50,687 Happy to hear about the timeline or other considerations. 1486 01:31:50,687 --> 01:31:52,956 Thinking about the the things and 1487 01:31:53,490 --> 01:31:55,257 when the fee should be in effect. 1488 01:31:55,559 --> 01:31:57,559 Our next topic. 1489 01:31:59,463 --> 01:32:01,463 I want to acknowledge 5:30 P.M. 1490 01:32:01,999 --> 01:32:03,232 If not done at 6:00 we will keep going. 1491 01:32:05,402 --> 01:32:08,170 If you can stay, that is great. If you have to leave at 6:00 1492 01:32:11,542 --> 01:32:13,542 tell me so I can call on you. 1493 01:32:15,779 --> 01:32:18,114 Who wants to kickoff on implementation ideas or 1494 01:32:24,888 --> 01:32:26,990 thoughts. >> pacific power does not have timeline. 1495 01:32:28,859 --> 01:32:30,859 We will keep staff and council 1496 01:32:32,363 --> 01:32:35,231 appraised of changes in the regulatory compliance and go 1497 01:32:36,734 --> 01:32:38,969 over anything in the legislative session to impact gas emissions 1498 01:32:38,969 --> 01:32:40,969 for us. 1499 01:32:41,305 --> 01:32:43,305 >> thank you for that. 1500 01:32:44,508 --> 01:32:46,508 >> I think my thought would be 1501 01:32:47,545 --> 01:32:49,545 that if I believe council's 1502 01:32:49,947 --> 01:32:51,947 intent is to reduce carbon, 1503 01:32:53,951 --> 01:32:55,951 right, in the city? 1504 01:32:55,953 --> 01:32:58,922 Until pacific power gets to where they reduce emissions. 1505 01:33:00,758 --> 01:33:02,959 They say they can meet that goal around 2029 or 30. 1506 01:33:05,763 --> 01:33:07,763 I ask it be pushed out until 1507 01:33:10,401 --> 01:33:12,401 2029 or 30 medical 1508 01:33:17,174 --> 01:33:19,376 30 or until they prove they met that goal. 1509 01:33:20,645 --> 01:33:23,413 >> we are wants to participate in the pilot program. 1510 01:33:24,482 --> 01:33:26,482 I would love to have that play 1511 01:33:26,884 --> 01:33:29,653 out, study data prior to fee being imposed. 1512 01:33:31,422 --> 01:33:33,290 Happy to get into more depth what we envision from pilot. 1513 01:33:34,892 --> 01:33:37,861 we haven't had chance to do that in two minutes to council. 1514 01:33:44,201 --> 01:33:46,736 Open to questions. >> policymaking is not perfect. 1515 01:33:47,806 --> 01:33:50,774 We are never going to make decisions in a vacuum. 1516 01:33:52,610 --> 01:33:54,610 If it is ongoing pilot or pilot 1517 01:33:56,247 --> 01:33:58,247 that might happen in the future, 1518 01:33:58,349 --> 01:34:00,349 hb2021 or climate protection or 1519 01:34:01,986 --> 01:34:03,720 building code update or speculation on legislative 1520 01:34:05,890 --> 01:34:07,457 session or new federal administration. 1521 01:34:08,493 --> 01:34:10,394 Something dynamic that is nature of the things. 1522 01:34:11,496 --> 01:34:13,496 At some point we have to stop 1523 01:34:13,565 --> 01:34:15,565 collecting data and do something 1524 01:34:19,370 --> 01:34:20,471 because we are in a vacuuming of leadership. 1525 01:34:22,407 --> 01:34:24,407 We are backsliding since the 1526 01:34:25,276 --> 01:34:27,276 first inventory. 1527 01:34:27,779 --> 01:34:28,959 Bend admissions have gone up 20%. 1528 01:34:33,885 --> 01:34:35,452 We are headed for bad wildfire season. 1529 01:34:36,855 --> 01:34:38,222 We have to just try something at some point. 1530 01:34:40,692 --> 01:34:43,395 This is already a very modest option. 1531 01:34:43,395 --> 01:34:45,395 Originally the restriction was 1532 01:34:45,730 --> 01:34:47,730 on the table. 1533 01:34:47,799 --> 01:34:49,799 It is scaled back the level of 1534 01:34:50,435 --> 01:34:52,435 action because of concerns from 1535 01:34:54,139 --> 01:34:55,773 affordable housing and economic development. 1536 01:34:57,542 --> 01:34:59,542 We need to remember climate 1537 01:35:01,460 --> 01:35:03,460 action is being go stewards of 1538 01:35:03,448 --> 01:35:05,448 environment be with healthy air. 1539 01:35:06,618 --> 01:35:09,587 That makes bend economically viable. We need to try something and 1540 01:35:09,988 --> 01:35:12,656 check in on policy. That is good development. 1541 01:35:14,726 --> 01:35:16,726 We think the city should do that 1542 01:35:18,130 --> 01:35:19,897 to make sure it is not having unintended consequences. 1543 01:35:20,832 --> 01:35:22,832 Some are wrong and useful. 1544 01:35:24,335 --> 01:35:27,710 We need to try to collect real data and tweak things down the 1545 01:35:28,206 --> 01:35:31,175 road. april 2027. >> what day. 1546 01:35:31,376 --> 01:35:33,376 >> in line with the building 1547 01:35:33,578 --> 01:35:35,578 codes update for developers to 1548 01:35:38,283 --> 01:35:40,283 have single compliance calendar. 1549 01:35:41,987 --> 01:35:43,987 >> ecc recommends start day JULY 1, 2027. 1550 01:35:44,389 --> 01:35:46,389 We do not think we should wait 1551 01:35:49,628 --> 01:35:51,962 until JANUARY 1, 2028 primarily due to speculation of legislative session. 1552 01:35:53,599 --> 01:35:55,599 If anything comes up in that 1553 01:35:56,101 --> 01:35:58,101 legislative session we could 1554 01:36:01,400 --> 01:36:03,375 delay and amend as needed. We need climate action now. 1555 01:36:05,311 --> 01:36:07,746 I want to note based on, david, your point. 1556 01:36:09,114 --> 01:36:11,348 These appliances can last up to 20 years. 1557 01:36:14,286 --> 01:36:16,789 If we install electric now or gas now, those will last for 20 1558 01:36:16,789 --> 01:36:18,789 years. 1559 01:36:26,432 --> 01:36:27,999 In that 20 year lifespan we are assuming pacific power could 1560 01:36:28,767 --> 01:36:30,767 change drastically. 1561 01:36:31,971 --> 01:36:33,971 We want to build smart from the 1562 01:36:34,440 --> 01:36:36,440 start knowing these systems last 1563 01:36:36,442 --> 01:36:38,442 quite awhile. 1564 01:36:39,145 --> 01:36:41,579 >> sarah. >> we would land with garrett 1565 01:36:43,116 --> 01:36:44,316 and the conversations around the pilot. 1566 01:36:46,386 --> 01:36:49,200 When I look at forming opinion on implementation of this. 1567 01:36:52,458 --> 01:36:54,458 I think about north star housing 1568 01:36:54,894 --> 01:36:57,262 affordabilities. 53% of the people working in 1569 01:36:57,363 --> 01:36:59,363 bend don't live in bend. 1570 01:36:59,666 --> 01:37:01,967 That is something we need to do something about. 1571 01:37:04,300 --> 01:37:06,271 Yesterday we were at park side place. We are making progress. 1572 01:37:07,640 --> 01:37:09,441 We can't hold gas on that kind of progress. 1573 01:37:10,810 --> 01:37:13,245 That is my lens I am coming from trying to balance with the 1574 01:37:15,581 --> 01:37:17,200 concerns that we are talking about with climate. - 1575 01:37:17,850 --> 01:37:19,850 I think it is important that we 1576 01:37:21,687 --> 01:37:23,422 have a lot of different policymaking at the city 1577 01:37:23,956 --> 01:37:25,956 sometimes happens in silos. 1578 01:37:28,294 --> 01:37:30,796 We have the home hardening building 327 expedited that 1579 01:37:35,268 --> 01:37:37,268 makes sense to expedite from 1580 01:37:37,871 --> 01:37:40,472 wildlife, wildfire prevention, tree code conversation, natural 1581 01:37:41,700 --> 01:37:43,700 gas fee code conversation. 1582 01:37:45,645 --> 01:37:48,347 All of these things are tiny chunks of affordabilities. 1583 01:37:50,416 --> 01:37:52,416 Time and space to sequence some 1584 01:37:53,186 --> 01:37:55,721 of those decisions in a manner that makes sense and affects 1585 01:37:56,122 --> 01:37:58,991 affordability and what we do for the community is something I 1586 01:38:01,161 --> 01:38:03,161 support and members support. 1587 01:38:05,365 --> 01:38:07,866 I guess I will leave it at that. I would love to hear more about 1588 01:38:09,136 --> 01:38:11,136 the pilot at garrett. 1589 01:38:12,639 --> 01:38:14,639 >> did you have a question? 1590 01:38:16,576 --> 01:38:17,910 >> cassie, I want to set for the room. 1591 01:38:18,878 --> 01:38:20,546 Building code update coming in right here. 1592 01:38:22,949 --> 01:38:25,884 Can you tell us to explain the effect of that building code in 1593 01:38:27,954 --> 01:38:29,954 terms of installation of new 1594 01:38:32,459 --> 01:38:33,759 equipment into homes in the hvac world. 1595 01:38:36,960 --> 01:38:37,696 >> if a building codes person wants to jump in. 1596 01:38:41,101 --> 01:38:43,101 I will take a stab at it. 1597 01:38:43,703 --> 01:38:45,703 Improves energy efficiency with 1598 01:38:46,339 --> 01:38:48,339 new construction by 30%. 1599 01:38:50,177 --> 01:38:52,177 I think that is maybe all I can 1600 01:38:52,913 --> 01:38:55,748 say confidently. Anything to add from the building people? 1601 01:38:57,117 --> 01:38:59,117 >> what I am trying to get at. 1602 01:38:59,653 --> 01:39:01,653 In most cases a c unit installed 1603 01:39:03,457 --> 01:39:04,657 in a home will require a heat pump. 1604 01:39:05,926 --> 01:39:07,326 >> thank you for reminding me about that part. 1605 01:39:08,762 --> 01:39:10,762 Another part of the code 1606 01:39:11,832 --> 01:39:13,566 air-conditioning installed it has to be heat pump to ensure 1607 01:39:15,602 --> 01:39:17,602 any home with air-conditioning 1608 01:39:19,439 --> 01:39:21,541 which is many of them have a heat pump. 1609 01:39:23,877 --> 01:39:26,746 Gas furnace sets up for duel fuel options that will have an 1610 01:39:26,914 --> 01:39:29,248 impact as well. >> I am asking that question 1611 01:39:30,884 --> 01:39:32,884 because I do acknowledge 1612 01:39:33,287 --> 01:39:35,322 affordability and agree with sarah it is my north star as 1613 01:39:35,322 --> 01:39:37,322 well. 1614 01:39:39,260 --> 01:39:41,260 That is a way to really avoid a 1615 01:39:41,829 --> 01:39:43,829 large portion of al lakarstify. 1616 01:39:46,867 --> 01:39:48,867 That is $1,500 bucks in cost. 1617 01:39:49,503 --> 01:39:51,503 Three quarters of fee goes away 1618 01:39:52,390 --> 01:39:54,574 when this drops into our laps here in APRIL next year. 1619 01:39:58,913 --> 01:40:00,346 I think that helps with affordability. 1620 01:40:01,315 --> 01:40:03,315 >> until we make decision on the 1621 01:40:05,152 --> 01:40:07,152 dual fuel systems. 1622 01:40:07,654 --> 01:40:09,256 If someone puts in gas furnace cost would be there. 1623 01:40:10,457 --> 01:40:12,457 It could be automatically 1624 01:40:13,661 --> 01:40:16,462 driving more electric systems if people put it in for sure. 1625 01:40:20,835 --> 01:40:22,835 >> thank you. 1626 01:40:24,238 --> 01:40:25,705 >> I will go to you and then to garrett. 1627 01:40:26,574 --> 01:40:28,574 >> a couple members of committee 1628 01:40:29,210 --> 01:40:31,311 that were concerned about the layering on of fees. 1629 01:40:32,914 --> 01:40:34,914 If we go route of exemption for 1630 01:40:39,220 --> 01:40:41,220 up to 1:20 A.M. I, there is less 1631 01:40:43,591 --> 01:40:44,858 concern because it was the hardening. 1632 01:40:48,196 --> 01:40:50,697 We want to reduce barriers for affordable middle. 1633 01:40:52,166 --> 01:40:54,166 >> garrett pilot program could 1634 01:40:55,403 --> 01:40:58,371 you explain we are in the world of timeline. 1635 01:41:01,800 --> 01:41:03,800 What do you mean? 1636 01:41:03,444 --> 01:41:05,444 >> the time limited aspect study 1637 01:41:05,913 --> 01:41:07,913 at least a year to collect the 1638 01:41:09,450 --> 01:41:12,252 energy use data to understand the grid impacts. Construction data collection. 1639 01:41:14,256 --> 01:41:16,256 This is what I vision how this 1640 01:41:16,758 --> 01:41:18,258 comes to life. Three members of production builders now. 1641 01:41:19,827 --> 01:41:21,827 We hope to do this at scale. 1642 01:41:22,697 --> 01:41:24,697 Willing in upcoming projecs to 1643 01:41:25,633 --> 01:41:27,501 identify select homes to have a side by sides comparison 1644 01:41:28,570 --> 01:41:30,570 building all electric next to 1645 01:41:30,939 --> 01:41:33,674 all gas. The reason that selecting homes 1646 01:41:35,844 --> 01:41:37,844 in same project matters. 1647 01:41:38,379 --> 01:41:40,379 All projects are different. 1648 01:41:41,449 --> 01:41:43,449 Same land two different products 1649 01:41:44,152 --> 01:41:47,121 best way to collect data. Alongside high efficient 1650 01:41:47,122 --> 01:41:48,889 electric equipment was mentioned. 1651 01:41:51,826 --> 01:41:53,930 We have high performance builders. 1652 01:42:00,702 --> 01:42:02,200 One has offered to be a consultant. 1653 01:42:04,390 --> 01:42:05,272 We want to look at climate goals. 1654 01:42:06,908 --> 01:42:08,908 Here is time line. 1655 01:42:10,646 --> 01:42:13,314 Our members talked like quickest two years to get homes 1656 01:42:14,490 --> 01:42:15,482 identified, built, sold and study. 1657 01:42:16,384 --> 01:42:19,153 Two to three is roughly what we are thinking with city support 1658 01:42:20,254 --> 01:42:22,254 and permitting process. 1659 01:42:24,326 --> 01:42:26,326 We could get closer to two. 1660 01:42:26,661 --> 01:42:29,430 Also, a piece I missed with home selection we need diverse 1661 01:42:31,466 --> 01:42:33,466 selection of homes. 1662 01:42:34,636 --> 01:42:36,636 Townhome, single story detached, 1663 01:42:37,239 --> 01:42:39,907 two-story detached how it contributes to emissions and 1664 01:42:43,812 --> 01:42:45,713 what affordability looks like in direct costs. 1665 01:42:46,882 --> 01:42:48,882 >> what you are saying policy 1666 01:42:49,885 --> 01:42:51,885 would not apply city-wide two to 1667 01:42:52,120 --> 01:42:54,120 three years only in certain ways 1668 01:42:54,990 --> 01:42:56,990 as we study data before going 1669 01:42:57,392 --> 01:42:58,893 city-wide? >> yes. 1670 01:43:03,665 --> 01:43:06,340 I tried to make as brief as possible. >> I understood it. 1671 01:43:06,340 --> 01:43:07,468 Mandy. >> brief question. 1672 01:43:10,873 --> 01:43:13,740 Why would you not look retroactively at information 1673 01:43:14,576 --> 01:43:16,477 there are houses and buildings and data. 1674 01:43:19,281 --> 01:43:21,281 why would you need to builds 1675 01:43:22,284 --> 01:43:24,284 homes, wait timeframes versus 1676 01:43:24,320 --> 01:43:26,320 identifying the homes. 1677 01:43:26,556 --> 01:43:28,556 >> one of the challenges with 1678 01:43:28,691 --> 01:43:30,792 development costs it is sourced regionally not specifically to 1679 01:43:30,893 --> 01:43:33,194 bend. We have unique codes. 1680 01:43:36,265 --> 01:43:38,265 To do here to collect local data 1681 01:43:41,270 --> 01:43:43,270 would be most impact 1682 01:43:45,574 --> 01:43:48,443 impact full. Second part of question. 1683 01:43:48,844 --> 01:43:50,780 >> why won't you identify locally? 1684 01:43:52,140 --> 01:43:54,140 >> that is comparing variables. 1685 01:43:55,618 --> 01:43:57,152 All electric home built here and here. 1686 01:43:59,210 --> 01:44:01,210 There are different costs 1687 01:44:01,900 --> 01:44:03,491 associated with that because of difference in pieces of land. 1688 01:44:07,863 --> 01:44:09,863 Side by sides with gas and and 1689 01:44:10,833 --> 01:44:12,133 electric home we control the variables. 1690 01:44:14,537 --> 01:44:16,537 >> any other questions on that 1691 01:44:16,706 --> 01:44:18,706 or ideas? 1692 01:44:19,208 --> 01:44:21,209 Councilor mendez. >> we heard concern about 1693 01:44:24,447 --> 01:44:26,447 delaying until we have more sent 1694 01:44:27,950 --> 01:44:29,484 on the pathway to complying with hb2021. 1695 01:44:30,887 --> 01:44:32,887 We talk about importance of 1696 01:44:35,792 --> 01:44:37,792 comparing high efficiency to low 1697 01:44:38,861 --> 01:44:40,861 efficiency electrification. 1698 01:44:41,831 --> 01:44:43,831 Council had a preference for 1699 01:44:52,108 --> 01:44:53,542 high efficiency electric appliances. 1700 01:44:58,581 --> 01:45:00,581 To what extent does 2021 1701 01:45:03,620 --> 01:45:05,620 compliance the efficiency of the 1702 01:45:05,788 --> 01:45:07,788 electrical appliances 1703 01:45:08,324 --> 01:45:10,324 implemented? 1704 01:45:11,928 --> 01:45:13,928 >> even with -- with low 1705 01:45:14,297 --> 01:45:16,297 efficiency equipment, pacific 1706 01:45:16,733 --> 01:45:18,733 power not in compliance with 1707 01:45:20,236 --> 01:45:22,236 2021 is a very big problem. 1708 01:45:22,572 --> 01:45:24,106 High emission electricity and quantity consumed is high 1709 01:45:26,509 --> 01:45:29,111 because of low efficiency. Efficient equipment the concern 1710 01:45:30,213 --> 01:45:32,948 goes down because it should be less energy used in total since 1711 01:45:36,419 --> 01:45:38,821 that is used efficiency. Electricity used is dirty. 1712 01:45:39,623 --> 01:45:41,623 The concern is still there. 1713 01:45:45,529 --> 01:45:47,529 Our analysis shows that using 1714 01:45:47,931 --> 01:45:50,299 today's mix even when pacific power homes some of the 1715 01:45:51,268 --> 01:45:53,569 equipment including high efficiency equipment over the 1716 01:45:54,738 --> 01:45:56,738 life cycle of the equipment 1717 01:45:57,507 --> 01:45:59,507 would still have like a higher 1718 01:46:01,211 --> 01:46:03,211 carbon impact using high 1719 01:46:07,500 --> 01:46:09,500 efficiency heat pump at today's 1720 01:46:13,757 --> 01:46:16,193 grid mix compared to gas. Grid mix still matters with high 1721 01:46:16,193 --> 01:46:18,193 efficiency. 1722 01:46:20,831 --> 01:46:23,666 It matters a lot with low efficiency. 1723 01:46:28,806 --> 01:46:30,439 From a cost perspective and grid perspective. 1724 01:46:31,441 --> 01:46:33,441 >> anything to add to that? 1725 01:46:36,780 --> 01:46:38,780 >> she did great job. 1726 01:46:39,316 --> 01:46:41,316 >> other ideas or information 1727 01:46:41,752 --> 01:46:43,752 that folks want us to know? 1728 01:46:43,854 --> 01:46:46,550 >> I would like to support the pilot programs. 1729 01:46:47,558 --> 01:46:49,558 Not only with all electric and 1730 01:46:51,195 --> 01:46:53,195 all gas, but adding possibly a 1731 01:46:54,798 --> 01:46:57,533 third which is a hybrid home whatever that MAY be, not just 1732 01:46:58,168 --> 01:47:00,403 one or the other. Different ways of doing that. 1733 01:47:01,906 --> 01:47:04,700 When you touched on the efficiencies, when you talk 1734 01:47:06,977 --> 01:47:08,611 about all electric home, most affordable housing currently 1735 01:47:09,546 --> 01:47:11,546 that I see being produced out 1736 01:47:13,617 --> 01:47:15,485 there is using the most horrible electric appliances. 1737 01:47:17,540 --> 01:47:19,540 That is something we need to 1738 01:47:20,191 --> 01:47:21,825 look at. >> great. 1739 01:47:24,228 --> 01:47:26,228 Other thoughts on this part of 1740 01:47:27,832 --> 01:47:30,466 the discussion? >> question about the pilot idea. 1741 01:47:32,770 --> 01:47:34,637 In addition to why not look retroactively? 1742 01:47:35,720 --> 01:47:37,720 If you have gone to the 1743 01:47:37,742 --> 01:47:40,577 neighbor's house and felt it is too cold or too hot compared to your house. 1744 01:47:41,746 --> 01:47:43,746 You know the baseline of what 1745 01:47:44,582 --> 01:47:46,582 you set the thermostat to makes 1746 01:47:47,719 --> 01:47:49,719 a difference if home are same 1747 01:47:49,921 --> 01:47:51,921 and right next to each other. 1748 01:47:52,323 --> 01:47:54,624 Puzzled why it would be so important two houses next to 1749 01:47:56,794 --> 01:47:58,794 each other. 1750 01:48:00,631 --> 01:48:02,632 How do we control for thermostat size? 1751 01:48:03,167 --> 01:48:05,167 >> we hope to have enough scale 1752 01:48:05,236 --> 01:48:07,300 to take average to calculate for energy use. 1753 01:48:08,206 --> 01:48:10,206 That is a big piece of that if 1754 01:48:11,109 --> 01:48:13,109 we want to study grid and 1755 01:48:13,878 --> 01:48:15,878 utility rates we track usage 1756 01:48:16,280 --> 01:48:18,582 data which we need help from utility friends at the end of 1757 01:48:20,251 --> 01:48:22,586 the room to do. At big enough scale we could 1758 01:48:25,657 --> 01:48:27,657 average that out. 1759 01:48:27,859 --> 01:48:30,527 One more piece. That came up in our conversations with members. 1760 01:48:32,464 --> 01:48:34,898 If the fees associated with individual piece of equipment. 1761 01:48:35,767 --> 01:48:37,767 If council or city wanted to see 1762 01:48:37,836 --> 01:48:40,470 that hybrid approach we are happy to do that. 1763 01:48:44,242 --> 01:48:46,610 If someone wanted to pay for gas fireplace upgrade we could do 1764 01:48:47,110 --> 01:48:49,110 home or two for that. 1765 01:48:51,716 --> 01:48:53,716 We are flexible and appreciate 1766 01:48:54,186 --> 01:48:56,754 feedback from the city. >> robin. >> ecc does not support pilot. 1767 01:48:58,550 --> 01:49:00,550 We don't think waiting three 1768 01:49:01,626 --> 01:49:03,626 years to have that pilot is good 1769 01:49:03,828 --> 01:49:05,963 use of time. With in that three years will be 1770 01:49:07,666 --> 01:49:10,567 thousands of homes that will not be potentially all electric 1771 01:49:10,836 --> 01:49:12,836 because of that. 1772 01:49:14,906 --> 01:49:16,139 We think it is part of a delay tactic. 1773 01:49:19,277 --> 01:49:21,277 We want to implement the policy 1774 01:49:21,379 --> 01:49:23,379 one year after passed. 1775 01:49:24,820 --> 01:49:26,817 Developers are used to having a new code one year after it is 1776 01:49:27,886 --> 01:49:29,886 passed they will have that one 1777 01:49:29,988 --> 01:49:31,988 year in order to implement this 1778 01:49:34,793 --> 01:49:36,793 new policy. 1779 01:49:36,862 --> 01:49:39,830 >> brennan. >> similar vein to robin. 1780 01:49:42,670 --> 01:49:44,869 80% of housing stock in next 20 years we kicked bucket two or 1781 01:49:47,439 --> 01:49:49,575 four years that is 20% of the housing stock city has done 1782 01:49:49,575 --> 01:49:51,676 nothing to push development towards all electric. 1783 01:49:53,679 --> 01:49:55,679 I think the city has relative 1784 01:49:56,480 --> 01:49:58,480 lehigh confidence this is the 1785 01:49:59,851 --> 01:50:01,851 climate solution we need in our 1786 01:50:02,588 --> 01:50:04,550 climate action plan strategy es2a. 1787 01:50:07,793 --> 01:50:09,793 Develop policies to limit fossil 1788 01:50:09,895 --> 01:50:11,895 fuel use in new construction. 1789 01:50:11,930 --> 01:50:13,930 We 1790 01:50:18,270 --> 01:50:20,270 >> you said before you were okay 1791 01:50:21,273 --> 01:50:24,208 building sunsets or check ins. What does that look like to you? 1792 01:50:25,511 --> 01:50:28,247 What are your ideas? >> staying in step with building 1793 01:50:28,247 --> 01:50:30,581 codes. Every three years.% 1794 01:50:32,518 --> 01:50:34,518 at end of two years city is done 1795 01:50:34,653 --> 01:50:36,653 collecting data the last year so 1796 01:50:37,523 --> 01:50:40,157 building codes is 2027. By 2029 city is done collecting 1797 01:50:42,995 --> 01:50:44,995 data and can look back. 1798 01:50:45,965 --> 01:50:47,965 How many people paid the fee, 1799 01:50:48,133 --> 01:50:50,100 did it impact housing production rate? 1800 01:50:52,204 --> 01:50:54,204 Look at that and make it into 1801 01:50:56,509 --> 01:50:58,900 effect with next building codes update 2030. 1802 01:51:02,810 --> 01:51:04,810 >> I want to ask brandt. 1803 01:51:08,870 --> 01:51:10,288 I heard from allen and elisa on timeline. Do you have thoughts on 1804 01:51:10,823 --> 01:51:12,823 implementation timeline. 1805 01:51:13,759 --> 01:51:15,759 >> not specific timeline. 1806 01:51:17,396 --> 01:51:19,396 >> thank you. 1807 01:51:19,665 --> 01:51:21,665 >> question for cassie. 1808 01:51:21,867 --> 01:51:23,301 The pilot and thousands of homes. 1809 01:51:24,570 --> 01:51:26,570 What were the assumptions that 1810 01:51:28,641 --> 01:51:30,641 were made about people going to 1811 01:51:30,843 --> 01:51:32,843 -- what percentage new homes 1812 01:51:33,579 --> 01:51:35,881 built would comply with the fee entirely or would comply with 1813 01:51:35,882 --> 01:51:37,882 some of it? 1814 01:51:38,284 --> 01:51:40,284 Trying to remember what the 1815 01:51:41,521 --> 01:51:43,521 calculation made or assumption? 1816 01:51:44,590 --> 01:51:46,590 How many people would pay fee at 1817 01:51:46,826 --> 01:51:48,826 20% level and how many would 1818 01:51:48,861 --> 01:51:50,861 forget it and go all electric. 1819 01:51:50,863 --> 01:51:53,165 >> I have our consultant on the line right now. 1820 01:51:56,202 --> 01:51:58,202 If you are listening daniel I 1821 01:52:02,800 --> 01:52:04,443 will ask if you have that data handy. 1822 01:52:08,348 --> 01:52:10,348 >> at 20% we expect 25% of homes 1823 01:52:16,890 --> 01:52:19,157 built to go electric. >> thank you. 1824 01:52:21,928 --> 01:52:23,928 >> quick follow up on that. 1825 01:52:24,397 --> 01:52:26,365 >> when you made that calculation and assumption were 1826 01:52:27,734 --> 01:52:29,734 you aware of the building code 1827 01:52:32,500 --> 01:52:34,500 change that councilor platt just 1828 01:52:34,207 --> 01:52:36,207 asked about if you put 1829 01:52:36,976 --> 01:52:38,811 air-conditioning in the house it has to be heat pump and not 1830 01:52:40,246 --> 01:52:42,246 stand alone air conditioner and 1831 01:52:42,516 --> 01:52:44,516 how that influences how many 1832 01:52:45,118 --> 01:52:47,219 people decide to go all electric because of the building code? 1833 01:52:49,222 --> 01:52:51,222 >> we are basing this off 1834 01:52:53,760 --> 01:52:56,195 willingness to adopt studies on electrification take don't 1835 01:52:57,264 --> 01:52:59,264 consider mandatory building code 1836 01:53:01,535 --> 01:53:04,470 that would be something else to take into consideration. 1837 01:53:04,938 --> 01:53:07,506 >> final thoughts on implementation? 1838 01:53:08,876 --> 01:53:10,876 Allen then garrett. 1839 01:53:11,745 --> 01:53:13,512 >> one thing I like about the multiyear pilot. 1840 01:53:15,150 --> 01:53:17,150 In addition to testing to make 1841 01:53:17,517 --> 01:53:19,517 sure carbon reductions are 1842 01:53:20,587 --> 01:53:22,354 achieved, affordability aspect. Is the resource adequacy. 1843 01:53:24,424 --> 01:53:26,424 That is so essential. 1844 01:53:26,526 --> 01:53:28,526 Allowing a few winters to pass, 1845 01:53:28,796 --> 01:53:30,796 looking at winter peak demand 1846 01:53:31,564 --> 01:53:33,564 and impacts to the end user, to 1847 01:53:34,167 --> 01:53:36,167 the homeowner, electric home, 1848 01:53:37,400 --> 01:53:39,872 gas home, hybrid home and compare if there are peak events 1849 01:53:41,642 --> 01:53:43,910 that take place, I think that is crucial especially since as we 1850 01:53:49,750 --> 01:53:52,552 said before we are a winter peaking region. >> garrett. 1851 01:53:54,121 --> 01:53:56,522 >> why letting the pilot play out would be helpful. 1852 01:53:58,725 --> 01:54:01,461 I talked in builders in washington as well. 1853 01:54:02,863 --> 01:54:04,863 There were supply change 1854 01:54:05,199 --> 01:54:07,199 challenges with appliance and 1855 01:54:08,102 --> 01:54:10,870 equipment providers. Giving runway for the market to 1856 01:54:11,710 --> 01:54:13,710 get that as well. 1857 01:54:14,141 --> 01:54:16,141 To sarah's point the layered 1858 01:54:17,177 --> 01:54:19,177 cost will impact builders. 1859 01:54:22,449 --> 01:54:24,449 >> if this wases to go in we do 1860 01:54:24,618 --> 01:54:26,519 a recommended date. Is the recommendation for you 1861 01:54:27,988 --> 01:54:29,956 all with the timeline and runway? 1862 01:54:34,295 --> 01:54:35,762 >> as much runway as possible. 2028. 1863 01:54:41,502 --> 01:54:43,502 >> any other thoughts? 1864 01:54:43,604 --> 01:54:45,604 >> cascade would like to request 1865 01:54:46,941 --> 01:54:48,742 that MAY be the study reincorporate future assumptions 1866 01:54:50,344 --> 01:54:52,344 of the electric supply costs. 1867 01:54:54,682 --> 01:54:56,682 We have heard both central 1868 01:54:56,684 --> 01:54:59,152 electric cooperative and pacific power have new information. 1869 01:55:01,188 --> 01:55:03,723 A lot of discussion on affordability as upfront cost. 1870 01:55:04,559 --> 01:55:06,560 How about ongoing cost for residents here. 1871 01:55:07,628 --> 01:55:10,497 More dollars spent on utility cost the more it will take away 1872 01:55:11,666 --> 01:55:13,666 from dollars available for 1873 01:55:15,970 --> 01:55:18,472 economy in the city of bend be. >> the city 1874 01:55:19,540 --> 01:55:21,775 city of bend. >> has staff thought about 1875 01:55:23,144 --> 01:55:25,144 recommendation of 2028 or mid 1876 01:55:25,480 --> 01:55:27,480 2027, would staff be interested 1877 01:55:28,716 --> 01:55:31,385 in doing check ins or how often would staff look at data to 1878 01:55:32,453 --> 01:55:34,210 update the fee as it goes forward. 1879 01:55:34,856 --> 01:55:36,856 >> any policy like this good 1880 01:55:42,130 --> 01:55:45,650 idea to have periodic check ins to scan for any issues. 1881 01:55:47,769 --> 01:55:49,769 one, check in I would recommend 1882 01:55:50,672 --> 01:55:52,672 is regardless of whether 2027 or 1883 01:55:56,644 --> 01:55:58,212 2028 or later is at certain period, one month before or 1884 01:56:04,519 --> 01:56:06,519 three months before check in to 1885 01:56:09,124 --> 01:56:11,124 recalibrate the fee calculation. 1886 01:56:11,526 --> 01:56:14,461 We need that information to make the calculation work. 1887 01:56:15,196 --> 01:56:16,412 I would definitely recommend that. 1888 01:56:18,333 --> 01:56:20,333 The cycle after that I think I 1889 01:56:20,368 --> 01:56:22,970 don't have a specific recommendation right now. 1890 01:56:23,905 --> 01:56:25,539 I can think about that for the 22nd. 1891 01:56:28,510 --> 01:56:30,510 It is a discussion with council. 1892 01:56:31,680 --> 01:56:33,680 Balancing the effort to have 1893 01:56:34,316 --> 01:56:36,316 enough time to have meaningful 1894 01:56:36,818 --> 01:56:38,818 data where you are not reviewing 1895 01:56:40,656 --> 01:56:43,424 too soon so the data does not have variation with being responsive. 1896 01:56:45,260 --> 01:56:47,260 Every couple years, I would 1897 01:56:47,960 --> 01:56:49,630 think. >> okay. 1898 01:56:50,398 --> 01:56:52,700 We have gotten a lot of good information from everyone. 1899 01:56:54,102 --> 01:56:56,102 I appreciate everyone here 1900 01:56:56,338 --> 01:56:59,306 sharing with us. We have heard different 1901 01:57:00,809 --> 01:57:02,809 perspective around urgency and 1902 01:57:03,712 --> 01:57:06,113 why delay might be desirable. I appreciate that. 1903 01:57:07,950 --> 01:57:10,251 I was going to ask eric taking notes and I have been taking 1904 01:57:10,252 --> 01:57:12,252 notes as well. 1905 01:57:12,321 --> 01:57:14,956 Does this reflect the top level things we will bring into the 1906 01:57:19,661 --> 01:57:21,662 work session and we will close it out. 1907 01:57:22,631 --> 01:57:24,631 >> I don't want to go through 1908 01:57:24,800 --> 01:57:26,800 each group said this. 1909 01:57:33,142 --> 01:57:35,900 General themes of other ideas. Housing mix. 1910 01:57:41,250 --> 01:57:43,250 120 ami expanding on that. 1911 01:57:48,457 --> 01:57:50,457 Input from utilities in terms of 1912 01:57:51,193 --> 01:57:54,620 calibrates with the metrics. >> we had a mix of support 1913 01:57:57,232 --> 01:57:59,567 versus not support for dual fuel heat pumps and renewable natural gas. 1914 01:58:01,270 --> 01:58:03,270 That is something to look for 1915 01:58:05,407 --> 01:58:07,407 direction on those different 1916 01:58:08,277 --> 01:58:10,277 things you have heard. 1917 01:58:11,147 --> 01:58:13,147 >> I heard a lot about pilot 1918 01:58:13,449 --> 01:58:15,449 program, wanting to try policy, 1919 01:58:16,952 --> 01:58:18,952 get it going sooner. 1920 01:58:20,122 --> 01:58:22,122 On the exemptions some sort of 1921 01:58:22,324 --> 01:58:24,324 talking about affordable housing 1922 01:58:26,128 --> 01:58:27,996 how we are going to exempt that potentially. 1923 01:58:28,864 --> 01:58:30,864 Cassie what you said is right. 1924 01:58:32,268 --> 01:58:34,268 Missed opinions on dual fuel and 1925 01:58:34,337 --> 01:58:36,337 rng and reductions or putting 1926 01:58:37,974 --> 01:58:39,374 things into calculation versus exemptions. 1927 01:58:40,243 --> 01:58:41,876 Those were all things we captured. 1928 01:58:42,979 --> 01:58:44,979 Around solar as well discussion 1929 01:58:45,381 --> 01:58:47,583 of that, too. We will bring all of that to 1930 01:58:47,583 --> 01:58:49,583 council. 1931 01:58:50,186 --> 01:58:52,621 I want to level set that staff is going to bring to council. 1932 01:58:54,557 --> 01:58:57,920 Some ideas are more intensive or might take more looking into 1933 01:58:58,294 --> 01:59:00,195 than others. Deed restricted affordable 1934 01:59:01,640 --> 01:59:02,931 housing is clear and straightforward. 1935 01:59:05,101 --> 01:59:07,200 Pilot program, megawatts solar are more involved. 1936 01:59:07,670 --> 01:59:09,670 We will ask staff to tell us 1937 01:59:11,400 --> 01:59:13,676 which of these could we do on the time line we want now pass 1938 01:59:15,511 --> 01:59:17,511 this in JUNE and which might not 1939 01:59:19,150 --> 01:59:21,150 be ready or available for fully 1940 01:59:21,217 --> 01:59:23,619 flushed ideas. We will discuss with council 1941 01:59:23,953 --> 01:59:26,488 what to do with that information and how to proceed. 1942 01:59:26,890 --> 01:59:28,890 Really good ideas to bring to 1943 01:59:30,293 --> 01:59:32,293 the table for our discussion on 1944 01:59:32,362 --> 01:59:34,998 the 22nd. Any other final thoughts from 1945 01:59:34,998 --> 01:59:36,998 council? 1946 01:59:37,834 --> 01:59:39,834 >> I took a lot of notes. 1947 01:59:40,904 --> 01:59:43,205 Thank you for your perspectives and your guidance. 1948 01:59:43,973 --> 01:59:45,808 >> appreciate everybody being here. 1949 01:59:48,110 --> 01:59:50,450 Being respectful and having a good back and forth. 1950 01:59:50,513 --> 01:59:53,382 >> if something comes to you that didn't come to your mind 1951 01:59:55,986 --> 01:59:57,986 today at the table send it to 1952 01:59:58,221 --> 02:00:00,221 cassie, make sure she gets that 1953 02:00:00,256 --> 02:00:02,256 if you had a good thought. 1954 02:00:04,327 --> 02:00:07,129 We still want to hear it or you are debriefing over coffee and 1955 02:00:07,397 --> 02:00:09,397 they give you an idea, send it 1956 02:00:11,334 --> 02:00:13,334 to us so we can think about 1957 02:00:13,403 --> 02:00:15,604 that. Perfectly on time. 1958 02:00:16,373 --> 02:00:18,807 Good job. 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