Sep 25, 2024 Joint Sustainability Committee

[00:00:03]

AND WE'LL

[*This meeting is joined in progress]

ROHAN WOULD LIKE, NO, ACTUALLY AS THE CITY CLERK WOULD LIKE.

.

.

THANKS EVERYBODY.

UM, DO YOU MIND IF WE DO THE MINUTES AND THEN COME BACK? 'CAUSE I DO WANNA GIVE SCOTT THE CHANCE TO SAY WHAT HE WANTED.

SAY.

OKAY.

UM, MINUTES

[1. Approval of minutes from the August 28th, 2024 meeting of the Joint Sustainability Committee.]

WERE CIRCULATED.

IF FOLKS HAVE LOOKED AT THEM.

MAYBE WE CAN GET A MOTION.

I MAKE A MOTION.

OKAY.

THANKS.

SORRY.

WAS THAT HARRIS? DID WE HAVE, OKAY, THANKS.

YOU'RE A LITTLE QUIET, HARRIS, JUST SO YOU KNOW.

OKAY.

WE'VE GOT A MOTION AND A SECOND.

UH, WERE THERE ANY CHANGES OR ADDITIONS ANYBODY WANTED TO MAKE? OKAY.

ALL IN FAVOR OF ADOPTING THE MINUTES.

RAISE YOUR HAND.

UM, AND CHARLOTTE, YOUR CAMERA IS OFF.

SO RIGHT NOW YOUR COUNTED IS OFF THE DAIS, BUT IF YOU WANT TO TURN IT ON, THAT'S FINE.

MINUTES ARE ADOPTED.

OKAY.

AND WE GOT CHARLOTTE.

THANKS, CHARLOTTE.

GREAT.

UH, SCOTT, ARE YOU

[PUBLIC COMMUNICATION: GENERAL]

FOUR, TWO ITEMS TO TALK ABOUT.

ONE IS THE BODY, UH, CONCRETE OPPORTUNITY.

THAT WAS ONE OF THE STAFF, ONE OF THE RECOMMENDATIONS THAT CAME FROM A COUNCIL RESOLUTION EARLIER THIS YEAR.

I WANNA TRY TO BE SUPPORTIVE OF THIS COMMITTEE, AND ONE OF THE WAYS THAT I AM HOPING TO DO THAT IS BY MAKING CONTACT WITH E-P-A-E-P-A DOES HAVE A SPEAKER THAT COULD JOIN YOUR NEXT MEETING OR A FUTURE MEETING REMOTELY TO TALK ABOUT THE PROGRAM THAT'S PART OF THE INFLATION REDUCTION ACT.

IF YOU COULD PUT THAT UP ON THE SCREEN, PLEASE, I'D GREATLY APPRECIATE THAT.

THE ONE THAT YOU JUST HAD THAT HAS ALL THE, ALL THE VERBIAGE ON IT.

AND THIS PARTICULAR, OKAY.

THIS PARTICULAR OPPORTUNITY, I'VE BEEN AWAY FOR MOST OF THE SUMMER.

I HAVEN'T FOLLOWED IT, BUT, UH, ANYTIME THE EPA CAN GET INVOLVED, HOPEFULLY IT WILL FOCUS THE CONVERSATION IN A MORE EFFICIENT AND EFFECTIVE WAY THAN WHAT'S HAPPENING NOW IN THE CITY OF AUSTIN.

SO THAT'S ONE THING THAT YOU ALL CAN TALK ABOUT TONIGHT, OR BETWEEN NOW AND OCTOBER'S MEETING.

ANOTHER OPPORTUNITY IS THIS IDEA THAT THE CITY COUNCIL IN MARCH PUT TOGETHER A RESOLUTION TO ASK STAFF TO COME UP WITH A NEW PROGRAM, RESIDENTIAL INCENTIVE LANDSCAPING PROGRAM TO TRANSITION PEOPLE TO ELECTRIC AND COMMERCIAL.

COMMERCIAL, BY FAR, IS THE MOST DIFFICULT ONE.

I COMMUNICATED WITH STAFF FROM AUSTIN ENERGY TODAY.

THEY'RE LOOKING TO FIND OUT, UH, WHAT PROGRESS AND WOULD BE MADE.

MY QUESTION TO THEM IS, WILL YOU STOP INCENTING LEAF BLOWERS? WHICH NORMALLY THE INCENTIVE GOES ON THROUGH DECEMBER BECAUSE THAT PROGRAM RIGHT NOW IS JUST GIVING PEOPLE MONEY WITHOUT THE PERSON KNOWING THAT THEY'RE GONNA GET ANY MONEY, $15 OFF.

THERE'S NO ADVERTISEMENT IN THE STORE, THERE'S NO MARKETING THAT'S HAPPENING FROM AUSTIN ENERGY OUT TO THE COMMUNITY.

SO THIS WAS A POORLY PLANNED PROGRAM.

THIS IS MORE OF AN EUC MATTER IN TERMS OF THE CONVERSATION, AT LEAST BECAUSE I'VE BEEN TRYING TO LEAD THE CONVERSATION AND CERTAINLY IMPORTANT AND RELEVANT TO WHAT THE JOINT SUSTAINABILITY COMMITTEE IS DOING.

SO I HOPE YOU INFORM YOURSELF ON THIS OPPORTUNITY BY ASKING ME QUESTIONS TODAY, OR ASKING QUESTIONS OF STAFF ABOUT HOW REDUCING LANDSCAPING AND EMISSIONS CAN REDUCE CARBON EMISSIONS AND ALSO IT CAN IMPROVE AIR QUALITY.

SO THESE ARE OPPORTUNITIES THAT ARE PART OF RESOLUTIONS THAT YOU ALL HAVE PUT FORWARD.

I HOPE YOU'RE TRACKING THEM.

I HOPE YOU'RE ENGAGED.

I HOPE YOU'RE DOING WHAT YOU CAN INDIVIDUALLY TO REDUCE YOUR EMISSIONS FROM THESE OPPORTUNITIES DIRECTLY.

I'M HAPPY TO ANSWER ANY QUESTIONS.

THANKS, SCOTT.

UM, I'LL SAY IT'S A, IT'S A LITTLE HARD TO READ WHATEVER WE HAVE HERE.

DID YOU CIRCULATE THIS OR CAN YOU I HAVEN'T, YEAH, I HAD, I HAD SOME OTHER THINGS THAT I HAD TO DO.

YEAH, FAIR ENOUGH.

SO, YEAH,

[00:05:01]

BUT THE PROGRAM IS PART OF THE INFLATION REDUCTION ACT, AND THEY'RE GONNA TRY TO HELP CONTRACTS FROM THE FEDERAL GOVERNMENT TO TRANSITION, BUT THEY'RE GONNA ALSO TRY TO HELP COMMUNITIES WITHIN THE UNITED STATES, NOT ONLY FOR CONCRETE, BUT OTHER CONSTRUCTION MATERIALS THAT WOULD HAVE A LOWER EMBODIED CARBON LEVEL.

YEAH, GO AHEAD.

UH, YEAH, THANKS FOR BRINGING THIS UP.

I, I HAVE HEARD ABOUT THIS AND MAYBE THIS IS A POTENTIAL INVITATION TO COME SPEAK MORE ABOUT THIS AT OUR WORKING GROUP MEETING WHERE WE'VE BEEN DISCUSSING CONCRETE.

UM, THE QUESTION I HAVE IS MAYBE FOR NOW, MAYBE FOR LATER, BUT IT'S LIKE, YES.

AND HOW, YOU KNOW, HOW CAN WE PUSH AUSTIN TO USE THESE TYPES OF PRODUCTS GIVEN THAT, YOU KNOW, THERE IS STARTING TO BE MORE OF THIS STANDARDIZED LABELING.

UM, YEAH.

LIKE HOW DO WE, WHAT, WHAT DO WE DO SPECIFICALLY? BECAUSE I THINK OUR OBSERVATION HAS BEEN THAT, YOU KNOW, SOME OF THESE PRODUCTS EXIST, THE LABELING STARTING TO EXIST, AND WE HAVEN'T SEEN ACTION AS FAST AS WE LIKE.

SO WELCOME IDEAS ON HOW TO PUSH FOR THAT.

YEAH, CERTAINLY THE AUSTIN ENERGY GREEN BUILDING PROGRAM, WHICH IS A STANDALONE PROGRAM AND THE NATIONAL PROGRAM CALLED LEAD, THOSE TWO PROGRAMS, RATE BUILDINGS.

THIS BUILDING IS RATED AND IF YOU GO TO THE FRONT DOOR THERE, YOU'LL SEE A PLAQUE THAT SHOWS MY INVOLVEMENT IN THAT EFFORT IN THE LATE NINETIES TO GET THIS RATED AND TO GET A HIGH GREEN BUILDING STANDARD.

BUT THROUGH GREEN BUILDING, YOU CAN ACHIEVE REDUCTIONS IN EMISSIONS, BOTH AT THE MANUFACTURING PROCESS AND IN THE PROCESS OF LAYING IT OUT, WHICH IS MORE IN THE MANUFACTURING PROCESS.

SO GETTING, CONNECTING WITH THE AUSTIN ENERGY'S GREEN BUILDING PROGRAM AND HOW LOW EMBODIED CONCRETE COULD WORK BY HAVING THEM INCENT IT MORE OR PROMOTE IT MORE, OR RATE IT HIGHER THE RATING SYSTEM, THAT'S ONE OPPORTUNITY THAT I WOULD ENCOURAGE YOU TO PURSUE.

THANKS.

WELL, THANKS, SCOTT.

I DEFINITELY LOOK FORWARD TO CONNECTING ABOUT THAT, UM, EPA SPEAKER OPPORTUNITY.

I, I THINK WE COULD USE THAT.

THANKS.

YOU'RE WELCOME.

I DID HAVE ONE QUESTION FOR YOU, JUST SO WE CAN BE CLEAR HERE.

IS IT YOUR OPINION THAT THE CURRENT, UH, ELECTRIC LANDSCAPING INCENTIVE IS NOT ACTUALLY CHANGING CUSTOMER BEHAVIOR? I THINK THAT'S WHAT YOU'RE SAYING, THAT IT'S KIND OF GIVING MONEY AT THE POINT THE CUSTOMER HAS ALREADY MADE A DECISION.

YES.

I DON'T HAVE ANY DATA TO SUPPORT THAT, BUT IN, IN LOOKING AT THE INFORMATION THAT WAS ALREADY PUBLICLY AVAILABLE, THAT WAS PART OF THE STAFF RESPONSE FROM AUGUST 2ND THAT INDICATED THAT THE MAJORITY, THE VAST MAJORITY OF PURCHASES AT THE BIG BOX RETAIL STORES.

AND WE, WE THINK EVEN THOUGH THEY'RE NOT PART OF THE, NECESSARILY THE AUSTIN ENERGY PROGRAM SUCH AS ACE HARDWARE BREEDING COMPANY, THE NUMBERS ARE SOMEWHERE IN THE 60 TO 70% RANGE FOR PEOPLE BUYING ELECTRIC LANDSCAPING EQUIPMENT WITHOUT NEEDING TO BE INCENTED, WITHOUT NEEDING THAT INCENTIVE.

SO, YES.

UM, JUST AS AN ASIDE, BUT I THINK IT'S RELEVANT.

BACK IN 2020, I CONTACTED MY HOME DEPOT CONTACT, WHO'S A STORE MANAGER, USED TO BE OVER AT THE MILLER REDEVELOP, BUT STILL IN THE AUSTIN NETWORK.

AND I SAID, CHECK WITH YOUR AREA MANAGER IF, IF YOU ALL ARE OPEN, I'M, I'M WILLING TO MANAGE ANOTHER ELECTRIC LAWNMOWER PROGRAM.

IT HAD BEEN FIVE YEARS BETWEEN THE LAST ONE AND THE MID 2010S.

AND THEY SAID, NO, WE'RE FINE.

THE MARKET'S ALREADY MATURE.

AND THEN WHEN I FOUND OUT ABOUT THE AUSTIN ENERGY PROGRAM, I DIDN'T UNDERSTAND WHY THEY THOUGHT THAT THAT WOULD BE AN EFFECTIVE WAY TO REDUCE EMISSIONS.

AND THERE'S A LOT OF WHAT YOU'D CALL FREE RIDERSHIP THERE, WHERE PEOPLE, OH, IT'S LESS THAN I THOUGHT, WALK HAPPILY OUT THE BIG BOX STORE.

SO ANSWER IS YES.

OKAY.

SO YOU'RE SAYING LET'S FIND A WAY TO USE THAT MONEY MORE EFFECTIVELY TO STILL PUSH THINGS FURTHER, BUT NOT JUST KIND OF WASTE THE MONEY.

YES.

'CAUSE WHAT I'M HEARING, AS YOU HEARD FROM MY TESTIMONY, THE ELECTRIC UTILITY COMMISSION IN THE SPRING, THEY SHOULD, THEY SHOULD HAVE ALREADY STOPPED THE REBATE, BUT THEY DID NOT.

THERE'S SOME INERTIA, THERE'S NOT THE ABILITY TO DO IT OR THERE'S NOT THE INTEREST TO DO IT.

BUT IF BOB KANE AND OTHERS SAID, STOP IT, THEN IT WOULD STOP.

AND HOPEFULLY THE UC CAN APPLY SOME CONTINUED SCRUTINY ON THIS ISSUE AT THEIR, AT THEIR COMING MEETINGS.

OKAY.

THANK YOU.

YOU'RE

[00:10:01]

ALRIGHT,

[3. Presentation on Solar for All program and the Solar Standard Offer – Tim Harvey, Austin Energy]

DO YOU HAVE SCOTT'S CONTACT INFO? YEAH.

OKAY.

THANKS FOR HAVING ME.

MY NAME'S TIM HARVEY.

I AM THE CUSTOMER RENEWABLE SOLUTIONS MANAGER AT AUSTIN ENERGY.

I'M GONNA BE TALKING ABOUT TWO PROGRAMS THAT ARE COMING UP, UM, WITH AUSTIN ENERGY, ONE SOLAR FOR ALL AND THE OTHER, UH, THE SOLAR STANDARD OFFER.

UH, NEXT SLIDE PLEASE.

UH, SO FIRST WE'LL START WITH STANDARD OFFER.

UM, SO, SO THE STANDARD OFFER IS AN APPROACH THROUGH WHICH WE WILL, UM, CITE COMMUNITY SOLAR PROJECTS ON CUSTOMER ROOFTOPS.

UM, YOU CAN SEE HERE THE COMMUNITY SOLAR PORTFOLIOS THAT WE HAVE TODAY, UH, AT PALMER EVENT CENTER, LA LOMA, AND THE BLUE GARAGE AND THE ORDER THEY WERE BUILT.

UH, AFTER THAT WE TRIED TO INCREASE THE SOLAR, THE COMMUNITY SOLAR CAPACITY THROUGH RFPS.

AND THOSE WERE NOT SUCCESSFUL BECAUSE THE PROPOSALS THAT WE GOT BACK WERE EITHER TOO HIGH IN PRICE OR THEY DIDN'T HAVE SITE CONTROL, OR THEY JUST WEREN'T VIABLE ON THE GRID.

UM, SO WE DON'T LIKE TO CONTINUALLY GO OUT FOR RFPS AND NOT AWARD PROJECTS.

UM, BUT WE DO WANT TO EXPAND THE COMMUNITY SOLAR PROGRAM.

SO WE'VE DEVELOPED THE SOLAR STANDARD OFFER IN COORDINATION WITH STAKEHOLDERS TO, UM, PROVIDE A MECHANISM THROUGH WHICH WE CAN EXPAND COMMUNITY SOLAR IN A NEW WAY.

NEXT SLIDE, PLEASE.

SO I'M GONNA RUN, RUN YOU THROUGH LIKE A CASE EXAMPLE JUST TO HELP YOU GET ORIENTED WITH HOW THE PROGRAM WOULD WORK.

SO SAY YOU HAVE A, UM, COMMERCIAL BUILDING OWNER THAT HAS TENANTS, THE TENANTS PAY THEIR OWN UTILITY BILLS.

SO THAT BUILDING OWNER IS TYPICALLY NOT GOING TO MOVE FORWARD WITH A SOLAR PROJECT BECAUSE, UM, WITHOUT THE STANDARD OFFER, YOU WOULD HAVE TO CONNECT THAT THE, THOSE SOLAR ARRAYS BEHIND THE TENANT METERS.

THEY WOULD THEN BENEFIT THE TENANTS THROUGH BILL SAVINGS, AND THE BUILDING OWNER WOULD NOT HAVE A DIRECT PATH TO, UM, RECEIVE THE, THE PAYBACK ON THEIR INVESTMENT.

SO THROUGH THE SOLAR STANDARD OFFER, THE BUILDING OWNER COULD APPROACH A, A PARTICIPATING CONTRACTOR, HAVE THEM BUILD THE SOLAR ARRAY ON THEIR ROOFTOP OR IN THEIR PARKING LOTS AND ATTACH IT IN FRONT OF THE METERS.

AND AUSTIN ENERGY WOULD THEN PAY THAT BUILDING OWNER DIRECTLY FOR THE SYSTEM PRODUCTION, OR A, A BUILDING OWNER COULD WORK WITH A THIRD PARTY WHO IS WILLING TO PROVIDE THAT BUILDING OWNER WITH A ROOF LEASE OR PARKING LOT LEASE.

UM, SO THEY WOULD GET EXTRA REVENUE THAT WAY, AND THEN THE THIRD PARTY WOULD BUILD THE SYSTEM THROUGH A PARTICIPATING CONTRACTOR, AND THEN THE THIRD PARTY COULD GET A DIRECT PAYBACK FOR, UM, THE, THE SYSTEM THAT THEY OWN.

SO THIS OPENS UP A WHOLE NEW MARKET SECTOR IN AUSTIN THAT'S VIRTUALLY UNTAPPED.

UM, BUT IT ALSO COULD WORK ON, ON ANY TYPE OF COMMERCIAL BUILDING.

THEN, UM, AFTER AUSTIN ENERGY PROCURES THAT ENERGY THROUGH THE, THROUGH THE RATE IT, WE WOULD INCORPORATE IT INTO THE COMMUNITY SOLAR PROGRAM THROUGH WHICH WE WOULD BE ABLE TO OFFER SUBSCRIPTIONS TO, UH, RESIDENTIAL CUSTOMERS WHO NORMALLY WOULDN'T BE ABLE TO DO SOLAR FOR ANY VARIOUS REASONS.

MAYBE THEY DON'T HAVE UPFRONT CAPITAL, OR MAYBE THEY DON'T EVEN HAVE A ROOFTOP, THEY'RE A RENTER OR SOMETHING LIKE THAT.

UH, NEXT SLIDE PLEASE.

SO THE DESIRED OUTCOMES, UM, OF THIS PROGRAM ARE TO HAVE A MODEL THROUGH WHICH WE CAN EXPAND COMMUNITY SOLAR, UM, AND, AND DO IT IN A WAY THAT'S SCALABLE AND REPLICABLE, UM, IN A WAY THAT WE WOULD NOT HAVE TO CAP AT SOME POINT.

UM, WE ARE LOOKING TO INCREASE OUR LOCAL RENEWABLE ENERGY PRODUCTION AND INCREASE, UM, DEVELOPER PARTICIPATION IN COMMUNITY SOLAR, UM, SUBSCRIPTIONS ALSO, UM, ENABLE, UM, BILL SAVINGS FOR LOW INCOME, UH, CUSTOMERS THROUGH THE COMMUNITY SOLAR PROGRAM.

NEXT SLIDE.

UM, I'LL, I'LL GO AHEAD BEFORE WE GO ON TO THE NEXT SLIDE.

[00:15:01]

UM, BUT THE INTENT OF AUSTIN ENERGY IS TO ALIGN THE, UH, RATE FOR SOLAR STANDARD OFFER WITH OUR AVOIDED COST.

SO THAT'S NOT ONLY OUR MARKET PRICE AT THE AUSTIN ENERGY NODE, BUT ALSO AVOIDED COST THAT WE RECEIVE FOR ANCILLARY SERVICES, AS WELL AS TRANSMISSION SAVINGS THAT WE GET FOR GENERATING, WE BA ARE BASICALLY LOWERING OUR LOAD DURING FOUR CP.

SO, UM, WE, WE DO AN ANALYSIS ALREADY ON AN ANNUAL BASIS FOR THE VALUE OF SOLAR, AND WE WOULD USE THAT SAME ANALYSIS, UM, TO CALCULATE THE STANDARD OFFER.

THE ONLY DIFFERENCES IS THAT THE STANDARD OFFER WOULD NOT INCLUDE SOCIETAL BENEFITS.

UM, BY KEEPING IT TO OUR AVOIDED COST, THAT'S WHAT ALLOWS US TO SCALE IT COMPLETELY.

IT, IT, WE WILL NOT HAVE TO THROTTLE THAT PROGRAM.

UM, WE WILL PAUSE IT AT 20 MEGAWATTS TO MAKE SURE THAT WE'RE, UM, WE HAVE ALL THE OPERATIONS, UM, ALIGNED AND EFFICIENT.

WE MAY HAVE TO MAKE SOME ADJUSTMENTS THERE, BUT THAT WOULD ONLY BE A, A PLANNED TEMPORARY PAUSE WHILE WE MAKE, UM, NEEDED ADJUSTMENTS AND THEN WE WOULD RELEASE IT AGAIN.

SO THAT'S THE STANDARD OFFER.

UM, AND WE ARE HOPING TO BRING THAT RATE TO COUNCIL IN OCTOBER.

UM, IT ALSO HAS A POTENTIAL RESIDENTIAL COMPONENT TO IT, AND WE WILL START STAKEHOLDER MEETINGS TO EXPLORE THAT IN DECEMBER.

AND THEN, UM, TARGETING A, THE LAUNCH OF A RESIDENTIAL OFFERING IN JANUARY OF 2026, UH, WITH THE RESIDENTIAL OFFERING, WE'LL NEED TO EXPLORE, UM, SOME MORE ELABORATE CONSUMER PROTECTION, UH, FOR THEM.

AND WE WANT TO LOOK AT POTENTIAL OWNERSHIP FLIP MODELS THERE.

AND, UM, ALSO POTENTIALLY A WAY TO INCORPORATE THE REVENUES FROM COMMUNITY SOLAR, UM, INTO THAT TO, TO HELP PROVIDE A, A HIGHER BENEFIT FOR A RESIDENTIAL SOLAR HOST.

OKAY.

NOW ONTO THE SOLAR FOR ALL GRANT.

THIS IS A GRANT, UM, THAT WE'VE RECEIVED FROM THE EPA OR WE'RE RECEIVING, I SHOULD SAY.

UM, WE ARE PART OF A COALITION OF STATE, OR SORRY, UH, CITIES AND AND TERRITORIES WITHIN TEXAS, UH, THAT WENT AFTER THE $7 BILLION EPA GRANT.

WE WERE AWARDED, UM, ONE OF THE HIGHEST, UH, GRANTS AT $250 MILLION FOR THE STATE OF WHICH AUSTIN ENERGY.

AND, SORRY, THIS SLIDE ISN'T UPDATED.

UM, AUSTIN ENERGY WILL BE RECEIVING $31.59 MILLION, UM, THROUGH THIS PROGRAM.

UH, YOU CAN GO TO THE NEXT SLIDE.

I THINK WE'RE, WE'RE, WE WILL BE, UM, TARGETING A NUMBER OF BENEFITS FOR THE COMMUNITY, INCLUDING, OF COURSE, ENVIRONMENTAL, BUT ALSO, UH, HOUSEHOLD SAVINGS.

SO, UM, I, AND I'LL GO INTO THE DETAILS OF THAT IN A MINUTE, BUT, UM, EQUITABLE ACCESS, THIS WILL BE A VERY MUCH A LOW INCOME, UM, FOCUSED PROGRAM AND RESILIENCY, BENEFITS, COMMUNITY OWNERSHIP AND WORKFORCE DEVELOPMENT.

SO NEXT SLIDE, I'LL GO THROUGH HOW THAT'S ALL GONNA WORK.

UM, SO THE MODEL WILL, UM, HAVE AUSTIN ENERGY, UM, FIRST ENGAGING THE COMMUNITY THROUGH COMMUNITY BENEFIT ORGANIZATIONS.

WE WILL, UM, GO OUT INTO THE COMMUNITY, PRESENT OUR PROPOSED MODEL, GET FEEDBACK FROM THE COMMUNITY ON BARRIERS THAT THEY MAY HAVE AND WORK TO ADDRESS THOSE BARRIERS BEFORE WE SOLIDIFY OUR APPROACH.

SIMULTANEOUSLY, WE'LL BE DOING, UM, TECHNOLOGY STUDIES TO UNDERSTAND THE VALUE OF BATTERIES, SO LOOKING TO IDENTIFY WHAT THE AVOIDED COST TO THE UTILITY CAN BE FOR THE PROPER AND OPTIMAL USE OF BATTERIES.

UM, ALSO SIMULTANEOUSLY WE WILL START A WORKFORCE DEVELOPMENT, UM, INITIATIVE THAT WILL TARGET DIS OR DISADVANTAGED COMMUNITIES, PROVIDE SCHOLARSHIPS FOR TRAINING AND, UM, START TO BUILD UP THAT WORKFORCE THAT WILL HELP TO INSTALL THESE SYSTEMS. ONCE WE'VE IDENTIFIED OUR PROGRAM PATH, UM, THEN WE'LL GO OUT TO RFP.

WE PLAN TO, UM, TO WORK WITH A THIRD PARTY THROUGH A POWER PURCHASE AGREEMENT AND A PERFORMANCE CONTRACT FOR SOLAR AND BATTERIES.

AND WE WILL HAVE THAT THIRD PARTY INSTALL OR IN, IN COORDINATION WITH LOCAL

[00:20:01]

SO WE'RE TARGETING 2,500 RESIDENTIAL HOMES AND ALSO 50, UM, EITHER MULTIFAMILY AND OR, UM, COMMUNITY RESILIENCE HUBS, UM, TO, UH, INSTALL 20 MEGAWATTS OF SOLAR AND 35 MEGAWATTS WITH 40 MEGAWATT HOURS OF BATTERIES ON ALL THOSE FACILITIES.

IN THE EVENT OF A GRID FAILURE FOR THAT FIRST 15 YEARS, UH, THE, THE HOST CUSTOMER WILL HAVE ACCESS TO THAT.

SO FOR RESILIENCY PURPOSES, UM, THE HOST CUSTOMER WILL ALSO RECEIVE AN UPFRONT INCENTIVE TO HOST THE SYSTEM.

AND AT THE END OF THE 15 YEAR PERIOD, THE HOST CUSTOMER WILL, UM, RECEIVE OWNERSHIP OF THE SOLAR AND THE MAINTAINED SOLAR AND BATTERY SYSTEM FOR NO COST.

UM, DURING THAT TIME, ALL OF THAT ENERGY'S FEEDING INTO THE COMMUNITY SOLAR PROGRAM, THROUGH WHICH IT IS EXCLUSIVELY OFFER OFFERED TO LOW INCOME CUSTOMERS.

UH, LOW INCOME PARTICIPANTS WILL NOT ONLY RECEIVE GREEN ENERGY THROUGH THE PROGRAM, BUT ALSO GUARANTEED 20% BILL SAVINGS FOR 15 YEARS.

UM, SO THAT IS THE PROGRAM IN A NUTSHELL.

UM, WE, WE EXPECT THAT THE COMMUNITY SOLAR CAPACITY WILL BE ENOUGH TO HAVE 3000 SUBSCRIPTIONS TO THAT, TO THAT, UH, PROGRAM.

ANY QUESTIONS ABOUT THE STANDARD OFFER AND OR SOLAR FOR ALL? GO AHEAD.

THANKS SO MUCH FOR THE PRESENTATION AND CONGRATS ON GETTING THE, THE GRANT.

UM, THANKS.

IF YOU'RE GOING OUT FOR THIS AS A PPA, UM, AND YOU'RE DOING BATTERIES AND SOLAR, WHERE DO THE BENEFITS OF SOMETHING LIKE ENERGY ARBITRAGE GO TO THIS? IS THAT, SO AM ASKING THAT IN THE RIGHT WAY? YEAH, NO, THAT'S GOOD.

THAT'S A GREAT QUESTION.

UM, IT, ENERGY ARBITRAGE WOULD, WOULD BE ONE OF THE CONSIDERED APPROACHES TO OPTIMIZING THE BATTERY USAGE.

SO THE UTILITY IS GOING TO CONTROL THOSE BATTERIES, UM, AND ONLY DOWN TO A CERTAIN DEPTH OF DISCHARGE BECAUSE WE, YOU KNOW, PART OF THAT'S FOR RESILIENCY JUST IN CASE SOMETHING HAPPENS, A TREE FALLS.

UM, BUT, AND, AND, AND AT THE EDGE OF AN EXPECTED EVENT, WE WOULD, YOU KNOW, NOT USE THOSE BATTERIES TO THE EXTENT THAT WE COULD HAVE THE MOST POWER IN THOSE BATTERIES FOR RESILIENCY PURPOSES FOR THOSE CUSTOMERS.

BUT ON A NORMAL SUNNY DAY, UM, WE'RE GONNA BE LOOKING AT THINGS LIKE ENERGY ARBITRAGE, UM, PRICE CHASING.

SO WE'RE, YOU KNOW, ESSENTIALLY, UM, DEPLOYING THOSE DURING PEAK TIMES FOUR, CP AVOIDANCE, UM, YOU KNOW, THINGS LIKE THAT.

THEY'RE, THEY'RE THOSE DIFFERENT OPERATIONAL, UM, UM, PROFILES THAT YOU CAN DO FOR BATTERIES TO GET THE MOST VALUE OUT OF THEM.

SO I GUESS, YEAH, THAT'S ACTUALLY A, A GREAT ANSWER, UM, AND RIGHT, BECAUSE RESILIENCY IS ONE OF THOSE BENEFITS, BUT I ACTUALLY WAS THINKING SPECIFICALLY ABOUT COST, RIGHT? LIKE IF, YOU KNOW, SO IF, IF THIS IS A PRIVATE DEVELOPER THAT'S DOING THIS AND THEY'RE STORING ENERGY AND THEN SELLING THAT BACK MAYBE THROUGH THE PPA, I DON'T KNOW HOW YOU'RE ENVISIONING DOING THIS.

YEAH, SO THE PPA IS TO PURCHASE THE SOLAR ENERGY AND A PERFORMANCE CONTRACT IS FOR THE BATTERIES.

OKAY.

SO WE GET, WE GET THAT RETURN, UM, THE AVOIDED COST BY AVOIDING COST ON THE MARKET.

SO AUSTIN ENERGY GETS THAT.

UM, AND THEN THE PERFORMANCE CONTRACT KIND OF PAYS FOR THOSE THAT, THAT ABILITY TO CREATE THOSE AVOIDED COSTS.

THEN THE, THE GRANT WILL GO DOWN, GO TO BUY DOWN THE PPA AND THE PERFORMANCE CONTRACT TO THE EXTENT OF AUSTIN ENERGY'S AVOIDED COST, AND THAT'S IT.

SO WE'RE IN IT TO OUR AVOIDED COST, THE PPA OR THE, THE GRANTS ON TOP OF THAT TO MAKE IT ALL POSSIBLE.

AND WE'RE DOING AS MUCH AS WE CAN.

SO IT, RIGHT NOW, OUR INITIAL PROJECTIONS ARE 3000 CUSTOMERS, 20 MEGAWATTS AND 30 MEGAWATTS OF BATTERIES.

BUT THAT COULD BE MORE OR LESS, IT DEPENDS ON, UM, WHAT THAT ANALYSIS IS GONNA SHOW US AND WHAT OUR ACTUAL AVOIDED COSTS ARE ON THE GRID.

THANKS.

I SEE THERE'S A HAND RAISE ONLINE.

YEAH, GO AHEAD, ALBERTA.

YES.

I HAD A COUPLE OF QUESTIONS AROUND THE, UH, SOLAR FOR ALL.

AND SO YOU SAID THAT THERE WOULD BE 2,500, UM, UH, I GUESS WHAT HOMES THAT YOU WOULD TARGET FOR LOWER INCOME PEOPLE, IS THAT CORRECT? 2,500 HOMES IN DISADVANTAGED

[00:25:01]

AND SO THEY MAY OR MAY NOT BE LOW INCOME, BUT THE SOLAR PRODUCED WILL GO TO LOW INCOME.

I'M SORRY, SAY THAT AGAIN, THE LAST PART AGAIN? YEAH, SO, SO THE HOME ITSELF MIGHT NOT BE OWNED BY A LOW INCOME HOMEOWNER, BUT THE SOLAR ENERGY THAT WE PURCHASE FROM THAT WILL GO TO A LOW INCOME CUSTOMER THROUGH THE COMMUNITY SOLAR PROGRAM.

SO WOULD THAT MEAN THAT PEOPLE WHO ARE RENTING WOULD GET THE SOLAR ENERGY? I'M TRYING TO UNDERSTAND HOW THAT WORKS IF IT'S NOT FOR THE HOME ITSELF.

YEAH.

SO THROUGH THE COMMUNITY SOLAR PROGRAM, IT COULD BE ANY LOW INCOME QUALIFIED CUSTOMER IN THE CITY.

THEY COULD BE A RENTER OR THEY COULD BE ON, YOU KNOW, IN, IN AFFLUENT PART OF TOWN.

BUT IF THEY'RE LOW INCOME QUALIFIED, THEN THEY WILL HAVE ACCESS TO PARTICIPATE IN THE PROGRAM.

AND THAT'S UNDER THE SOLAR FOR ALL PROGRAM OR THE COMMUNITY PROGRAM? IT'S, IT'S THE, IT'S THE SOLAR FOR ALL PROGRAM, BUT WE UTILIZE OUR COMMUNITY SOLAR MODEL TO HELP FACILITATE IT.

SO THIS, THIS, THIS IS NOT ACTUALLY PUTTING SOLAR PANELS ON HOMES.

IT IS, THEY'RE JUST, THE HOMES ARE NOT NECESSARILY LOW INCOME.

WE'RE, THEY'RE ALL IN DISADVANTAGED COMMUNITIES.

AND IF THEY, AND IF THEY BELONG TO A LOW INCOME CUSTOMER, THEN THAT LOW INCOME CUSTOMER CAN GET THE 20% BILL SAVINGS THROUGH THE COMMUNITY SOLAR PROGRAM.

SO, AND THEN THEY WOULD ALSO GET THE OWNERSHIP AT THE END OF THE 15 YEAR PERIOD.

SO IS THERE A COST FOR THE HOMEOWNER? NO, THERE'S NO COST.

AND IN FACT, WE'LL PAY THEM TO HOST THE SYSTEM AND UPFRONT.

OKAY.

SO I GUESS WHAT I AM CONFUSED AND CONCERNED ABOUT IS THAT WHAT I HEAR YOU SAYING IS THAT THESE COULD GO TO AFFLUENT PEOPLE WHO LIVE IN SOME OF THE GENTRIFIED NEIGHBORHOODS AT THIS POINT, AND THAT THEY CAN GET THE SOLAR PANELS FROM THEIR HOUSE AND THEN THEY CAN BE STEERED TO SOME LOW INCOME PERSON.

IT'S, CAN IT, CAN IT WORK THAT WAY? AM I, AM I PUTTING THE, UH, UH, DOTTING THE I'S CORRECTLY THERE? IF IT'S IN A DISADVANTAGED COMMUNITY? THAT'S WHAT I SAY, IT'S IN A DISADVANTAGED COMMUNITY.

LIKE SAY FOR EXAMPLE, UH, MONIS, SO YOU KNOW, THEY HAVE MILLION DOLLAR HOMES NEXT TO REALLY RUN DOWN OR VERY LOW INCOME HOMES, AND I WON'T SAY RUN DOWN, BUT LOW INCOME HOMES.

SO THIS CAN GO, I, I DON'T, I DON'T KNOW.

I, I'M, I REALLY AM NOT COMFORTABLE WITH THAT, BUT IT'S, SINCE YOU GUYS HAVE ALREADY MADE THAT DECISION, YOU KNOW, I'M JUST WEIGHING IN FROM THAT PERSPECTIVE.

I THINK IT'S, WE'RE HAPPY TO HEAR YOU CALLED PATERNALISTIC.

IF NOTHING ELSE, WE'RE HAPPY TO HEAR ALL PERSPECTIVES AND WE HAVEN'T TOTALLY, UM, DIALED IN THE PROGRAM.

THAT'S WHY WE'RE DOING THE COMMUNITY ENGAGEMENT AND, AND YOUR OPINION COUNTS AND SO DOES EVERYONE ELSE'S.

AND SO WE, WE ARE HAPPY TO HAVE THAT FEEDBACK AND WE DO UNDERSTAND THAT CHALLENGE AND WE WILL, UM, REQUIRE THAT OUR THIRD PARTY TARGET NOT ONLY LOW INCOME, BUT ALSO MEDICALLY VULNERABLE, UM, AS MUCH AS POSSIBLE.

BUT I GUESS MY CONCERN IS WHY ISN'T THIS, IT JUST SEEMS TO ME TO BE SUCH A SIMPLE THING AND NOW IT'S VERY CONVOLUTED AND, AND HAS THE POTENTIAL, IN MY VIEW, VIEW FOR CORRUPTION.

WHY COULDN'T WE, I MEAN, WHY DOESN'T AUSTIN ENERGY JUST SAY WE ARE GONNA TARGET 2,500 LOW INCOME HOMEOWNERS AND PUT IT ON THEIR ROOF? I THINK IT'S A LITTLE BIT MORE COMPLEX THAN THAT.

WELL, YEAH, I GUESS, OKAY, WE CAN WE'LL CONSIDER THAT, BUT WE, BUT WE NEED TO GET INTO DETAILS ABOUT HOW, WHAT THAT APPROACH LOOKS LIKE.

WE'RE HAPPY TO DO THAT.

BUT THIS IS JUST THE, THE INITIAL PROPOSAL THAT WE HAVE TO THE EPA THAT WON US THE AWARD RGO.

UM, JUST BUILDING OFF OF THAT, WHY, WHY ISN'T THAT THE LIKE DEFAULT APPROACH THAT AUSTIN ENERGY IS TAKING? BECAUSE FIRST OF ALL, I BELIEVE THAT 2,500 HOME, UH, LOW INCOME HOMES WOULD BE HARD TO TARGET, UM, TO FIND HOMES THAT ARE VIABLE, UNSHADED GOOD FOR SOLAR HOMES.

NOW THAT SAID, WE REALIZED THAT THERE COULD BE POTENTIAL UPGRADES NEEDED, AND THAT WILL BE SOMETHING THAT WE BUILD IN AS WELL.

UM, YOU KNOW, POTENTIALLY ROUTING THEM THROUGH, UM, PROGRAMS THAT CAN HELP THEM WITH ROOF UPGRADES AND INCORPORATING, UM, SERVICE REBUILDS INTO THE MODEL.

BUT WE,

[00:30:01]

WE WANT TO, UM, BE SUCCESSFUL.

WE ALSO THINK THAT THERE'S POTENTIAL, IF WE'RE SUCCESSFUL, UM, AT, AT, UM, DEPLOYING THIS MODEL, ESPECIALLY IN THE EARLY YEARS, THAT WE COULD POTENTIALLY GET ACCESS TO OTHER UNUSED FUNDS THROUGHOUT THE PROGRAM.

JUST TO FOLLOW UP, SO WOULD, WOULD THINGS LIKE ROOF REPAIRS OR LIKE STRUCTURAL RETROFITS BE PART OF THE PLAN FOR THIS PROGRAM? THEY, THERE ARE PROGRAMS OUT THERE FOR THOSE KIND OF THINGS, AND WE WOULD TRY TO UTILIZE THOSE PROGRAMS, BUT, UM, THE, THE GRANT ITSELF IS NOT FOR, YOU KNOW, HOME REBUILDING AND ROOF REPAIRS AND THINGS LIKE THAT.

SO WE'RE TRYING TO TARGET THAT GRANT MONEY IN THE WAY THAT THE EPA DIRECTED.

UM, SO THAT'S, THAT'S OUR INITIATIVE.

THAT SAID, WE DO WANT TO HELP TO FACILITATE THAT.

WE ALSO, WHILE WE'RE AT THESE HOMES WE'LL BE DOING, IF THEY QUALIFY AND ARE NEEDED, WE'LL BE DOING, UH, FREE WEATHERIZATION AS WELL.

UM, AND ALL OF THIS IS AT NO COST TO THE CUSTOMERS.

AND LET ME JUST FOLLOW UP.

SO IN 15 YEARS WHEN IT EXPIRES, IF YOU'RE IN AN AFFLUENT HOME, THEN YOU HAVE A SOLAR RETROFITTED ROOF, CORRECT? YES.

YOU WERE A COMMUNITY SOLAR HOST FOR 15 YEARS AND THAT'S WHAT YOU GET FOR THAT.

OTHER QUESTIONS, HARRIS, GO AHEAD.

YEAH, I JUST WANT TO, UH, ECHO ALBERTA'S CONCERNS, UM, BECAUSE THE WAY YOU MAKE IT SOUND IS JUST LIKE, 'CAUSE I LIVE OFF EAST MLK, RIGHT? EAST AIRPORT, WHICH TRADITIONALLY HAS BEEN, YOU KNOW, A LOT OF DISADVANTAGED COMMUNITIES AND, UH, YOU KNOW, IN, IN RECENT DECADES HAS BECOME MORE, UH, MORE GENTRIFIED FOR LACK OF A BETTER, MORE POLITICALLY CORRECT TERM, RIGHT? AND SO IT'S LIKE, YEAH, TRADITIONALLY THIS AREA HAS, YOU KNOW, BIT DISADVANTAGED, BUT NOW IF YOU HAVE ALL THESE MILLION DOLLAR HOMES AND MILLION DOLLAR DUPLEXES THAT BASICALLY QUALIFY FOR FREE SOLAR, WHO ARE WE REALLY DOING A SERVICE TO? YOU KNOW, IF YOU'D BE DOING A SERVICE TO ALL OF THE LOW INCOME CUSTOMERS THAT ARE SUBSCRIBING TO THAT AND GETTING 20% BILL DISCOUNTS, RIGHT? BUT WHO IS GETTING LIKE THE LONG TERM EQUITY HERE TO ME IS THE QUESTION, RIGHT? LIKE, WE SHOULDN'T JUST BE LIKE, OH, THESE PEONS ARE JUST GETTING A FEW SAVINGS HERE AND THERE, THEY SHOULD BE HAPPY, RIGHT? LIKE, WHY AREN'T WE INVESTING IN THEIR EQUITY, UH, AND MAKING THAT A PRIORITY? YOU KNOW, WE HEAR THAT AND, AND SO, YOU KNOW, MAYBE THE CHALLENGE, MAYBE ONE OF THE CHALLENGES OF THE COMMUNITY IS TO IDENTIFY THE HOUSING STOCK THAT WE SHOULD BE TARGETING.

BUT, YOU KNOW, THIS IS JUST, LIKE I SAID, THIS IS JUST THE INITIAL, UM, APPROACH THAT WE USE TO GET THE GRANT.

AND EVEN THE EPA WANTS US, AND ESPECIALLY THE EPA, WANTS US TO ENGAGE WITH THE COMMUNITY TO IDENTIFY THE BEST APPROACH THAT'S GOING TO SERVE THE COMMUNITY IN THE BEST WAY.

AND THAT'S OUR INTENT.

THAT'S WHAT WE WANT TO DO.

GO AHEAD, .

WHAT IS A GOVERNANCE OF THIS PROGRAM LOOK LIKE? IS THERE LIKE A STEERING COMMITTEE? IS THERE SOME KIND OF COMMUNITY ADVISORY GROUP? DO YOU HAVE LIKE CBOS INVOLVED IN DECISION MAKING THAT THAT WILL BE PART OF THE, UM, THE CBO, UM, ENGAGEMENT AND, AND THE COMMUNITY ENGAGEMENT? I BELIEVE WE, WE NEED TO SET UP SOMETHING LIKE THAT.

UM, NONE OF THAT'S BEEN TOTALLY, UM, SUSSED OUT.

AGAIN, WE DON'T EVEN HAVE THE MONEY YET.

UM, BUT WHEN WE DO, WE'LL START TO STAFF UP, WE'LL START TO ENGAGE CBOS AND THEN THE COMMUNITY AND, AND WORK TOWARDS THAT.

BUT I LIKE THAT SUGGESTION.

WHO, WHO HAS BEEN, UM, ENGAGED TO DATE IN TERMS OF COMMUNITY BASED ORGANIZATIONS? UH, WITH THE DEVELOP OF IT, THE DEVELOPMENT OF IT.

WE, UM, WE WORKED WITH PODER SOME ON THAT, AND, UH, WE HAVE ALSO WORKED IN THE PAST WITH, UH, TERI AND SIGN AND ENGAGE THE COMMUNITY AND, AND, UM, PARTICULAR COMMUNITY ENGAGEMENTS TO SEE WHAT THEIR NEEDS WERE AROUND SOLAR.

AND SO THAT HAS INFORMED THE INITIAL DESIGN OF THIS PROGRAM TO DATE IS, SO ARE THOSE ORGANIZATIONS LIKE FORMALLY, UH, PROJECT PARTNERS FOR THIS GRANT? WE HAVE NO FORMAL PROJECT PARTNERS AT AT THE MOMENT BECAUSE WE DON'T HAVE THE MONEY YET, BUT WE WILL HAVE SOON.

BUT, BUT AS PART OF YOUR GRANT APPLICATION, DID YOU IDENTIFY LIKE, WE'RE GONNA WORK WITH THESE ORGANIZATIONS? THEY, THEY AND, AND MANY OTHERS? YEAH,

[00:35:07]

AND, UM, I GUESS ONE QUESTION I HAVE IS, I KNOW THAT YOU'RE INITIALLY THINKING THAT YOU WOULD TARGET DISADVANTAGED COMMUNITIES, UM, AND I'M LOOKING AT THE MAP AND I, I THINK THAT LIKE, I THINK THERE'S A LOT LACKING FROM THIS, THIS MAP.

LIKE IT ACTUALLY LOOKS LIKE A GOOD PORTION OF THE MONTOPOLIS COMMUNITY IS NOT INCLUDED, LIKE WHAT'S EAST OF MONTOPOLIS, UH, DRIVE, FOR EXAMPLE.

SO I GUESS MY QUESTION IS, IS THE DOOR OPEN FOR ALLOWING, UM, HOSTS THAT ARE NOT IN THOSE MAPPED OUT? ONLY IF THEY'RE LOW INCOME QUALIFIED? IF THEY'RE LOW INCOME, YES.

YEAH.

OKAY.

YEAH, I GUESS I'LL JUST ADD MY 2 CENTS.

I WOULD, I WOULD LOVE TO SEE THE PROGRAM BE, YOU KNOW, FULLY SERVING LOW INCOME AND ALLOW FOLKS IN OTHER AREAS, UM, THAT ARE NOT, YOU KNOW, IN THE, I THINK IT'S THE GRAY SHADED AREAS ON THAT MAP THAT ARE, YOU KNOW, DESIGNATED AS, AS DISADVANTAGED.

UM, AND, AND I THINK THAT LEAVES A LOT OF LOW INCOME CUSTOMERS OUT.

SO I THINK THERE'S, THERE'S OPPORTUNITY THERE TO, YOU KNOW, YOU MENTIONED THAT ONE OF THE CHALLENGES MIGHT BE FINDING ENOUGH HOMES, AND I THINK IF WE SPREAD OUT ACROSS THE WHOLE SERVICE AREA, THAT PROBABLY, YOU KNOW, I THINK OBVIOUSLY THAT WOULD, THAT WOULD INCREASE THE NUMBER.

YOU KNOW, I THINK THERE'S PROBABLY A LOT IN SOUTH AUSTIN TOO THAT ARE NOT ON THE DISADVANTAGED COMMUNITY, BUT MIGHT BE LOW INCOME.

SO YEAH, I THINK THERE'S OPPORTUNITY THERE.

OTHER QUESTIONS BEFORE WE LET TIM GO HOME? YEAH, GO AHEAD.

UH, JUST QUESTION ABOUT THE COMMUNITY ENGAGEMENT PLAN.

IS THAT SOMETHING THAT'S ALREADY BEEN STRUCTURED? NO, FRANKLY, LIKE THE, THE, THE, UM, APPLICATION PERIOD FOR THIS WAS VERY SHORT.

THE EPA KNOWS THAT THIS IS A UNIQUE GRANT.

A LOT OF TIMES GRANTS HAVE TO BE FULLY FLESHED BEFORE THEY ARE EVEN SUBMITTED.

BUT THE EPA IS SAYING, NO, WE WANT YOU TO ENGAGE THE COMMUNITY, DEVELOP THE PLAN WITH THE COMMUNITY.

SO WE'RE GETTING THERE, BUT WE HAVEN'T EVEN HAD A CHANCE TO STAFF UP AND, AND REALLY, YOU KNOW, FLESH OUT ALL THESE PLANS.

THINKING ABOUT THE CONCERNS THAT HAVE BEEN BROUGHT UP TODAY, DO YOU HAVE, UM, IDEAS ON WHAT THAT COMMUNITY ENGAGEMENT WOULD LOOK LIKE, ESPECIALLY FROM THOSE THAT ARE IN THESE COMMUNITIES THAT COULD BE SERVICED? YOU KNOW, HONESTLY, COMMUNITY ENGAGEMENT, WHILE I'VE BEEN A PART OF IT, IT'S NOT MY FORTE AND WE WANT TO WORK WITH PEOPLE WHO KNOW COMMUNITY ENGAGEMENT.

UM, YOU KNOW, WE, WE'VE CONSULTED WITH, WITH PEOPLE INCLUDING THE OFFICE OF SUSTAINABILITY AND, UM, OTHERS IN THE CITY.

BUT, YOU KNOW, I THINK, I THINK WE NEED TO BUILD THOSE TEAMS AND DEVELOP THAT AND THAT WILL COME.

UM, BUT WE, WE REALLY CAN'T DO TOO MUCH UNTIL WE GET MONEY TO STAFF UP AND HAVE THE RESOURCES TO DO IT.

THANK YOU.

AND GO AHEAD, ROD.

GO.

I WAS JUST GONNA SAY, HAVE YOU, HAVE Y'ALL ENGAGED WITH THE, UM, EQUITY ACTION TEAM OR WITH THE EX EQUITY OFFICE IN GENERAL? AND, AND IF NOT, THAT'S A, THAT'S A POTENTIAL PATHWAY FOR YOU ALL.

OKAY.

ALRIGHT.

UM, I, I TRUST THAT WE'LL, WE'LL GET THE ANNOUNCEMENT HERE WHEN THAT STAKEHOLDER PROCESS, I THINK YOU'VE HEARD THAT WE, WE'VE GOT SEVERAL PEOPLE THAT PROBABLY WOULD LIKE TO ENGAGE IN THAT.

SHIRLEY DID, DID I SEE.

WE'LL TAKE ALL THE HELP WE CAN GET.

YEAH.

OKAY.

YEAH, I THINK IT'S, IT'S EXCITING AND, AND EVEN IF, UH, FOLKS HAVE INITIAL CONCERNS, IT SOUNDS LIKE AUSTIN ENERGY'S VERY OPEN, SO WE SHOULD, UM, APPLY OURSELVES TO PARTICIPATING IN THE PROCESS.

UM, TIM, JUST SINCE WE DO HAVE A RESOLUTION, UM, POSTED ON THE STANDARD OFFER, I KNOW YOU DIDN'T, YOU KNOW, PRESENT THE DETAILS OF THE, THE RATE HERE TODAY, BUT I KNOW WE'VE BEEN TALKING ABOUT USING THAT, THAT MONEY, UM, FOR THE RESIDENTIAL PORTION AND JUST WANT EVERYBODY TO HEAR, SO WE'RE ON THE SAME PAGE, THAT THE INTENTION IS THAT WHEN RESIDENTIAL IS ADDED TO THE HOSTING

[00:40:02]

IS THAT, YOU KNOW, KIND OF WHERE YOU'RE, THAT IS SOMETHING THAT WE WANT TO EXPLORE WITH STAKEHOLDERS? YES.

OKAY, GREAT.

THANK YOU.

I APPRECIATE YOU COMING DOWN.

THANK YOU.

ALRIGHT, ARE WE GONNA,

[4. Presentation on the International Energy Conservation Code (IECC) 2024 Update – Heidi Kasper, Austin Energy]

THANK YOU HEIDI.

WE'RE GONNA HEAR NOW ABOUT THE 2024 INTERNATIONAL ENERGY CONSERVATION CODE.

HI, UH, SO THOSE OF YOU WHO DO NOT KNOW ME, I AM HEIDI CASPER.

I'M THE DIRECTOR OF GREEN BUILDING AND EMERGING TECHNOLOGIES AT AUSTIN ENERGY.

UM, SO THE CITY OF AUSTIN IS IN THE PROCESS OF ADOPTING NEW TECHNICAL CODES.

ONE OF THOSE IS THE INTERNATIONAL ENERGY CONSERVATION CODE DEVELOPMENT SERVICES IS LEADING THAT OVERALL EFFORT, BUT MY TEAM IS, UM, LEADING AS THE TECHNICAL EXPERTS ON THE ENERGY PIECE.

UM, IT WILL EVENTUALLY GET BROUGHT TO COUNCIL, UM, HOWEVER, IT'S GONNA GET BROUGHT BY DEVELOPMENT SERVICES DEPARTMENT, AND WE DON'T HAVE A COUNCIL DATE YET.

SO, UM, NEXT SLIDE.

I'LL START WITH, UM, OUR OUTREACH PROCESS AND WHERE WE'RE AT.

SO WE STARTED WORKING ON OUTREACH BACK IN THE SPRING.

UM, WE'VE PRIMARILY BEEN ALIGNING THAT WITH DEVELOPMENT SERVICES, UM, AND USING A SPEAK UP AUSTIN PAGE, WE'VE ANNOUNCED IT AT OUR, UM, SEMINARS THAT WE PUT ON.

UM, DONE A NUMBER OF PRESENTATIONS, UM, PUT OUT THE WORD THROUGH SOCIAL MEDIA, EMAILS AND NEWSLETTERS.

WE MAILED IT OUT TO APPROXIMATELY, UM, 235 INDIVIDUALS REPRESENTING SOME 157 DIFFERENT ORGANIZATIONS.

WE DID END UP WITH SOME THOUSAND, LIKE ON THE OVER A THOUSAND VIEWS ON THE PAGE.

UM, AND ABOUT 55 COMMENTS.

UM, AND WE'RE NOW GOING THROUGH BOARDS AND COMMISSIONS PROCESS.

NEXT SLIDE.

IN TERMS OF THE FEEDBACK THAT WE GOT, UH, SO THERE'S A RESIDENTIAL PORTION TO THE CODE AND A COMMERCIAL PORTION.

UM, GENERALLY THE COMMENTS WERE FAIRLY UNIFORM.

THE VAST MAJORITY OF COMMENTS WERE IN SUPPORT OF ADOPTING THE CODE.

AND THEY WERE ALSO VERY INTERESTED IN US ADOPTING AN EV READINESS APPENDIX AND AN ELECTRIC APPENDIX APPENDICES.

UM, BOTH OF WHICH WE HAD PROPOSED.

WE DID RECEIVE, UM, SOME FEEDBACK ON AFFORDABILITY CONCERNS, AND I WILL TALK ABOUT OUR AFFORDABILITY IMPACT ANALYSIS LATER ON IN THE PRESENTATION.

WE ALSO RECEIVED A FAIR AMOUNT OF FEEDBACK ON WATER HEATERS.

SO WE HAVE PROPOSED AN AMENDMENT TO THE PUBLISHED CODE THAT WOULD ADD A SPACE REQUIREMENT FOR WATER HEATERS, A THREE FOOT BY THREE FOOT BY SEVEN FOOT SPACE.

THE IDEA BEING THAT IF YOU WANTED TO SWITCH FROM, UM, SAY AN ELECTRIC RESISTANCE WATER HEATER OR A TANKLESS GAS WATER HEATER NOW TO A HEAT PUMP WATER HEATER, THOSE TAKE UP MORE SPACE.

SO THAT WOULD ALLOW FOR THE SPACE.

IN TERMS OF SOME OF THE FEEDBACK, WE, UM, ALSO HEARD THAT WE WANTED A, UH, STAKEHOLDERS WANTED A DC FAST CHARGING COMPLIANCE FOR, TO HELP MEET THE ELECTRIC READINESS, UH, SORRY, EV READINESS COMPONENT IN THE COMMERCIAL CODE.

AND WE HAVE ADDED THAT BASED ON THAT FEEDBACK ON THE WATER HEATING.

WE ORIGINALLY HAD AN EXEMPTION FOR, UM, EXTERIOR GAS, UH, TANKLESS GAS WATER HEATERS.

WE WEREN'T SURE HOW TO ADD A SPACE REQUIREMENT TO THAT.

WE'VE ACTUALLY REMOVED THAT BASED ON STAKEHOLDER FEEDBACK BECAUSE WE DON'T WANT TO INADVERTENTLY INCENTIVIZE PUTTING THOSE ON THE EXTERIOR OF YOUR HOME.

WE THOUGHT THAT THAT DID NOT WORK VERY WELL.

AND YURI, UM, OTHER THINGS, UH, SO WE DID HAVE SOME STAKEHOLDERS THAT WANTED US TO GO FURTHER ON EV READINESS AND REQUIRE CHARGING STATIONS.

WE ARE NOT, UH, MOVING FORWARD WITH THAT AT THIS POINT.

UM, BOTH FROM A, AN AFFORDABILITY CONTEXT.

AND WE THINK THAT THE MARKET WILL PROBABLY, UM, INCENTIVIZE PUTTING THE CHARGING STATIONS IN WHEN WE HAVE THE RIGHT AMOUNT OF VEHICLES.

SO WE'RE FOCUSED ON THE EV CAPABILITY AND EV READINESS, GETTING THE INFRASTRUCTURE IN PLACE.

SO, UM, BECAUSE THAT'S THE PART THAT'S CHEAPER TO DO UPFRONT.

NEXT SLIDE.

UM, SO I WILL GO QUICKLY OVER SOME OF THE SIGNIFICANT CHANGES IN THIS CODE, STARTING WITH RESIDENTIAL.

THE RESIDENTIAL CODE IS ADDING AN ADDITIONAL ENERGY EFFICIENCY

[00:45:01]

UM, THIS IS SOMETHING THAT'S BEEN IN THE COMMERCIAL CODE.

IT HAS A SORT OF A VARIETY OF DIFFERENT ABOVE PRESCRIPTIVE CODE OPTIONS.

UM, AND YOU HAVE TO GET TO A CERTAIN NUMBER OF POINTS, BUT IT GIVES BUILDERS FLEXIBILITY ON HOW TO GET THERE.

IT INCLUDES THINGS LIKE HEAT PUMP, WATER HEATERS, UM, ADDITIONAL ENVELOPE, UH, EFFICIENCY, ET CETERA.

SO IT GIVES THEM SOME FLEXIBILITY TO CHOOSE THE BEST WAY TO GET THERE.

MOST AFFORDABLY FOR THEIR PROJECT, WE'RE REQUIRING DEMAND RESPONSE CONTROLS, UH, FOR ELECTRIC WATER HEATERS WITH AN EXCEPTION THAT ALLOWS FOR TIMERS.

RIGHT NOW THE CODE REQUIRES TIMERS AND ALLOWS DEMAND RESPONSE AS, UH, AN EXCEPTION.

SO WE'RE KIND OF FLIPPING IT AS WE MOVE TOWARD, UM, A FULL DEMAND RESPONSE PROGRAM FOR WATER HEATERS.

BATHROOM EXHAUST FANS WILL REQUIRE CONTROLS TO REMOVE MOISTURE, UM, TRYING TO ADDRESS HUMIDITY AT THE SOURCE.

AIR LEAKAGE REDUCTION, THAT IS HOW LEAKY YOUR BUILDING ENVELOPE IS, HAS BEEN, IS BEING TIGHTENED UP.

SO REDUCING FROM FIVE AIR CHANGES TO FOUR, THE PRESCRIPTIVE ATTIC INSTALLATION DOES SEEM A LITTLE BIT COUNTER, SO WE'RE REDUCING IT FROM R 49 TO R 38.

UM, THIS IS PART OF THE PUBLISHED CODE AND IT WAS PART OF A SUITE OF NEGOTIATION AT THE NATIONAL LEVEL AMONGST HOME BUILDERS, UM, ENVIRONMENTAL GROUPS IN TERMS OF WHAT WOULD BE THE MOST COST EFFECTIVE WAY TO ADD EFFICIENCY.

AND SO WE LOOKED AT THIS FROM AN ENERGY MODELING STANDPOINT IN OUR CLIMATE ZONE, AND THERE'S A LOT OF COST SAVINGS TO NOT REQUIRING THAT R 49.

UM, IT DOESN'T ACTUALLY HAVE A HUGE IMPACT HERE ON A EFFICIENCY, AND WE GET, IT GETS THE BUY-IN OF THE BUILDERS ON ALL THE OTHER EFFICIENCY THINGS THAT ARE BEING BROUGHT IN WITH THIS NEW CODE.

SO IT DOES SEEM A LITTLE COUNTER, BUT, UM, THAT WAS PART OF THAT CONSENSUS AGREEMENT AT THE NATIONAL LEVEL.

WE WERE INVOLVED IN THAT AND WE THINK WE SHOULD STICK BY IT.

UM, AGAIN, AS I MENTIONED, ADOPTION OF ELECTRIC READINESS AND EV READINESS APPENDICES.

I WILL BREAK OUT A LITTLE BIT MORE ON THOSE SPECIFICALLY LATER SINCE THOSE HAVE BEEN THE, UM, BIGGEST TOPIC OF, UH, INTEREST COMMERCIAL.

UH, NEXT SLIDE.

IN THE COMMERCIAL CODE, THERE'S A REQUIREMENT FOR RENEWABLE ENERGY SYSTEMS. UM, IT'S FAIRLY LIMITED.

IT'S 0.75 WATTS PER SQUARE FOOT FOR THE LARGEST THREE FLOORS.

SO RECOGNIZING THAT AS YOU GET TALLER, YOU DON'T GET MORE ROOF SPACE.

SO WE'RE BASING IT ON THE LARGEST THREE FLOORS.

UM, AND IT APPLIES TO BUILDINGS OVER 10,000 SQUARE FEET.

THERE'S AN ENERGY STORAGE SYSTEM READINESS REQUIREMENT.

THIS IS ALSO BASED ON YOUR LARGEST THREE FLOORS, AND IT'S INTENDED TO ALIGN WITH THE RENEWABLE ENERGY SYSTEM REQUIREMENT.

HOWEVER, WE'RE NOT REQUIRING BATTERIES OR STORAGE SYSTEM BE PUT IN NOW, JUST THAT YOU PLAN FOR IT AND HAVE SPACE, UM, AIR LEAKAGE REDUCTIONS, UH, AGAIN, UM, FOR COMMERCIAL BUILDINGS AND TESTING IS BEING REQUIRED FOR GROUPS.

R AND I, RESIDENTIAL AND INDUSTRIAL USES UPDATES TO THE HVAC EFFICIENCY TABLES.

THESE JUST ALIGN WITH FEDERAL STANDARDS.

THERE'S A, UH, PASS BEING INTRODUCED.

THIS IS THE TOTAL SYSTEM PERFORMANCE RATIO PATH.

IT ALLOWS FOR TRADE-OFFS.

SO IN COMMERCIAL BUILDINGS, YOU MIGHT HAVE A LOT OF DIFFERENT, UH, MECHANICAL SYSTEMS. AND SO THIS ALLOWS YOU, INSTEAD OF HAVING TO MEET, UH, AN EFFICIENCY REQUIREMENT ON EACH INDIVIDUAL PIECE OF EQUIPMENT, YOU CAN DO SOME TRADE-OFFS.

AS LONG AS THE OVERALL PACKAGE OF MECHANICAL EQUIPMENT, UM, MEETS THAT STANDARD.

THERE HAVE, AS I MENTIONED, THERE'S AN ADDITIONAL EFFICIENCY SECTION IN THE COMMERCIAL CODE ALREADY.

THERE HAVE BEEN UPDATES THAT TO THAT SECTION.

UM, PROVIDING MORE OPTIONS AND ALLOWING A BIT MORE FLEXIBILITY.

AND AGAIN, ON THE COMMERCIAL SIDE, AN ELECTRIC READY, EV READY AND DEMAND RESPONSE APPENDICES.

NEXT SLIDE.

SO ON THE ELECTRIC VEHICLE READINESS FOR COMMERCIAL, THERE'S A TABLE.

IT VARIES BY, UM, BUILDING TYPE.

WE ARE, UM, THE, THE HIGHEST REQUIREMENT IS FOR MULTIFAMILY BECAUSE WE BELIEVE MOST PEOPLE CHARGE AT HOME AND WANT TO CHARGE AT HOME.

SO, UM, FOR MULTIFAMILY, IT IS SET AT, UM, 35% EV CAPABLE AND 5% EV READY.

EV CAPABLE IS ESSENTIALLY YOUR CAPACITY AND YOUR CONDUIT.

SO WE NEED SPACE AND YOUR PANELS, WE NEED CONDUITS SO THAT YOU CAN GET THE WIRING THERE LATER.

EV READY ADDS THE WIRING AND THE OUTLET, UM, FOR RESIDENTIAL CODE, UH, FOR ONE AND TWO FAMILY DWELLINGS.

ANY EV CAPABLE EV READY OR, UM, A CHARGING STATION WILL WORK.

AGAIN, ON COMMERCIAL, YOU CAN TRADE THESE OFF.

SO IF YOU PUT IN SOMETHING BETTER THAN EV CAPABLE OR EV READY, YOU DON'T HAVE TO ADD, THEN

[00:50:01]

THAT WOULD JUST COUNTER IT.

UM, UNDER RESIDENTIAL CODE, THAT ALSO APPLIES TO MULTIFAMILY FOUR STORIES AND LESS.

AND THERE WE ARE LOOKING FOR, UM, EV CAPABLE FOR 40%, SO ADDING SOME PARITY TO THE MULTIFAMILY, UM, UNDER THE COMMERCIAL CODE.

SO IT'S, IT'S 40% OVERALL FOR BOTH OF THOSE.

NEXT SLIDE.

ELECTRIC READINESS.

ESSENTIALLY ON THE ELECTRIC READINESS, WE ARE LOOKING TO ADD ELECTRIC INFRASTRUCTURE, SO OUTLETS AND, UH, BRANCH CIRCUITS IN YOUR PANELS FOR COMBUSTION HEATING, WATER HEATING, COOKING, AND CLOSED DRYING.

UM, AND THAT APPLIES, UH, REALLY BOTH, UH, UNDER COMMERCIAL AND RESIDENTIAL.

COMMERCIAL, YOU SEE A FEW DIFFERENT, UH, WAYS OF THAT SHOWING UP.