[00:00:02]
[CALL MEETING TO ORDER]
ALL RIGHT.UH, IT IS 6:07 PM CALLING TO ORDER THIS MEETING OF THE RESOURCE MANAGEMENT COMMISSION, TUESDAY, SEPTEMBER 15TH, 2026.
UM, BEFORE WE GET STARTED, I WANT TO ACKNOWLEDGE WE HAVE A NEW COMMISSIONER, UH, JOINING US, UH, FOR THE FIRST MEETING TONIGHT.
UM, HERE TO MY LEFT, UH, REPRESENTING DISTRICT SIX YAEL GLASER.
WOULD YOU WANT TO JUST INTRODUCE YOURSELF BRIEFLY? SURE.
UM, I WORK AT THE UNIVERSITY OF TEXAS.
UM, I AM A RESEARCH SCIENTIST THERE IN THE WEBER ENERGY GROUP, SO I WORK WITH DR. MICHAEL WEBER, AND WE DO A LOT OF ENERGY RESOURCE, WATER, SUSTAINABILITY, ALL THOSE THINGS.
SO I'M VERY EXCITED TO BE HERE AND LOOKING FORWARD TO THE MEETING.
UM, THE, DO WE HAVE ANY, UH, SPEAKERS SIGNED UP FOR PUBLIC COMMENT? I DON'T SEE ANY ON THE, ON THE PAGE, SO WE DON'T, UH,
[1. Approve the minutes of the Regular Called Resource Management Commission Meeting on August 18, 2026. ]
OKAY.SO THE FIRST ITEM OF BUSINESS IS THE APPROVAL OF THE MINUTES FROM THE AUGUST MEETING.
DO I HAVE A SECOND? UH, COMMISSIONER COOK, UM, VICE CHAIR, ROBBINS COMMISSIONER COOK BEACH TO IT BY MILLISECOND.
UM, IS THERE ANY DISCUSSION AROUND THE MINUTES FROM LAST MONTH'S MEETING? HEARING NONE.
ALL IN FAVOR OF ADOPTING THE MINUTES FROM THE AUGUST 18TH, 2026 MEETING.
PLEASE RAISE YOUR HAND IF YOU'RE ON CAMERA.
YOU NEED YOUR CAMERA ON OR ON? GREAT.
UH, 1, 2, 3, 4, 5, 1, 2, 3, 4, 5, 6.
UM, THE MINUTES ARE ADOPTED, 6 0 1 AND JUST, UH, FOR, UH, REFERENCE, YOU, YOU DON'T NEED TO HAVE ATTENDED THE MEETING TO, TO VOTE, UH, FOR THE ON, UH, TO ADOPT THE MINUTES.
UM, MINUTES ARE ADOPTED NONETHELESS.
UM, WE HAVE A FAIRLY MEATY, UH, AGENDA TONIGHT.
UM, I'M GONNA GO THROUGH, UH, JUST, WE HAVE A COUPLE OF STAFF BRIEFINGS.
SO, UH, AND THEN A COUPLE OF, UH, ACTION ITEMS RELATED TO THOSE STAFF BRIEFINGS.
[2. Staff briefing on highlights of Austin Water’s 2026 Q2 Report on Water Management Strategy Implementation by Kevin Kluge, Water Conservation Division Manager, Austin Water.]
ITEM NUMBER TWO, WHICH IS HIGHLIGHTS OF AUSTIN WATERS 2026 Q2 REPORT.I'M THE WATER CONSERVATION MANAGER FOR AUSTIN WATER.
AND THIS AGENDA ITEM IS A BRIEFING ON THE SECOND QUARTER WATER MANAGEMENT STRATEGY IMPLEMENTATION REPORT THAT AUSTIN BRINGS TO YOU EVERY THREE MONTHS.
SO THIS AGAIN, IS THE SECOND QUARTER, SO IT ENCOMPASSES THE TIME PERIOD AT BEGINNING OF APRIL TO THE END OF JUNE.
SO THE SPRING TIME PERIOD, THE FULL QUARTERLY REPORT IS IN YOUR PACKET AS A BACKGROUND MATERIAL.
WHAT I'M GONNA PROVIDE TODAY IS JUST FIVE SLIDES HITTING THE HIGHLIGHTS, BUT I AM AVAILABLE TO ANSWER ANY QUESTIONS FROM THE REPORT, EITHER AT THIS MEETING OR AT A LATER DATE IF YOU WANNA SEND THOSE QUESTIONS IN.
SOME OF THE HIGHLIGHTS FROM THE SECOND QUARTER OF THIS YEAR.
UH, FIRST OF ALL, WE HAD A LOW QUARTERLY WATER USE REPORT.
AGAIN, THIS IS APRIL THROUGH JUNE, SO IT'S NOT HIGH TO BEGIN WITH, BUT IT WAS ACTUALLY LOWER THAN PREVIOUS YEARS, AND THAT'S GENERALLY DUE TO ABOVE AVERAGE RAINFALL IN THAT TIME PERIOD AND BELOW AVERAGE TEMPERATURES AND WATER CONSERVATION ACTIVITIES.
SO IT WAS A LITTLE LESS WATER USE THAN IN PREVIOUS YEARS.
IN THE SECOND QUARTER, OUR WATER LOSS MITIGATION EFFORTS, UH, WERE REALLY, UH, ILLUSTRATED THROUGH DOING 51,000 FEET OF MAIN INSPECTION.
SO, UH, THAT'S ONE OF THE WAYS, UH, ONE OF THE IMPORTANT WAYS THAT WE, UH, UTILIZE TO FIND LEAKS.
WE HAD THREE RECLAIMED WATER PROJECTS MOVING INTO THE CONSTRUCTION PHASE.
IF YOU KNOW THE TIMELINE OF CONSTRUCTIONS, IT TAKES QUITE A WHILE TO GET THROUGH ENGINEERING AND THROUGH PROCUREMENT.
SO WE'RE HAPPY TO HAVE THREE OF THOSE RECLAIMED CIP PROJECTS GOING INTO CONSTRUCTIONS.
THEN ON THE FOURTH BULLET, IT MENTIONS THAT THE JD POWER CORPORATION, YOU MAY BE FAMILIAR WITH THEM MORE WITH CARS.
I THINK THEY DO, UH, CUSTOMERS SATISFACTION SURVEYS FOR CARS, AND THAT YOU MAY SEE THAT ON TV.
[00:05:01]
ALSO DOES THAT FOR WATER UTILITIES.SO EVERY QUARTER THEY SEND OUT SURVEYS TO FIVE OR 600 CUSTOMERS IN AUSTIN AND ASK 'EM ABOUT VARIOUS THINGS ABOUT THEIR WATER UTILITY.
AND WE ARE, UH, DELIGHTED THAT IN Q2 JD POWERS REPORTED TO US THAT WE ARE NUMBER THREE OUT OF 92 UTILITIES ACROSS THE NATION, UH, IN TERMS OF AWARENESS OF WATER CONSERVATION PROGRAMS. SO WE ARE HAPPY TO, TO SEE THAT NOW, YOU KNOW, EVERY QUARTER CHANGES.
UH, SO IT MAY NOT BE NUMBER THREE NEXT TIME, BUT WE'RE HAPPY THAT, UH, WE ARE BECOMING KIND OF EMBEDDED IN THAT UPPER ECHELON OF WATER UTILITIES.
AND THEN OUR AQUIFER STORAGE AND RECOVERY STRATEGY IS MOVING FORWARD WITH, UH, A COUNCIL AUTHORIZATION TO DO SOME FIELD TESTING IN EASTERN TRAVIS COUNTY.
THIS, THIS SLIDE SHOWS I, I APOLOGIZE FOR INTERRUPTING, BUT, UM, I WANNA ASK A QUESTION ABOUT AQUIFER STORAGE AND RECOVERY.
IT'S A GREAT THING CONCEPTUALLY, BUT IN AN AREA WHERE WE HAVE, UM, IF I UNDERSTAND TEXAS WATER LAW CORRECTLY, OTHER PEOPLE CAN STICK A STRAW INTO THE SAME PLACE AND TAKE OUT WATER.
WHAT HAPPENS? HOW DO WE PROTECT WATER THAT YOU'RE TRYING TO STORE IN AN AQUIFER FROM OTHER PEOPLE LIKE DATA CENTERS, UM, FROM TRYING TO CAPTURE THAT WATER? YOU WANNA TAKE THAT ONE? YEAH.
I'M ACTING, UM, ASSISTANT DIRECTOR FOR ENVIRONMENTAL PLANNING AND DEVELOPMENT SERVICES FOR AUSTIN WATER.
UH, AND I AM, UH, OVER THE GROUP THAT DOES THE WATER FORD, UH, PLAN AND THE, UM, THE IMPLEMENTATION OF THE RECOMMENDATIONS FOR THAT.
UH, SO ONE OF THE KEY THINGS THAT WE'RE GONNA BE DOING AS PART OF DOING FIELD TESTING AND DEVELOPING A PILOT AND EXPLORING, UH, AQUIFER STORAGE AND RECOVERY, UH, AND TAKING IT THROUGH THESE NEXT STEPS THAT WE'VE BEEN AUTHORIZED TO DO, IS TO, UM, ALLOT WORK ON THOSE KINDS OF ISSUES AND MAKE SURE THAT WE HAVE ADEQUATE, UM, UM, CONTROL OF THE WATER AND ACCESS TO THE WATER THAT WE'VE ADDRESSED, THOSE KINDS OF CONCERNS.
AND SO THAT WE CAN BE ASSURED THAT THE WATER THAT WE PUT DOWN WILL BE AVAILABLE TO US AND BE ABLE TO BE ACCESSED WHEN WE NEED TO BRING THAT WATER OUT.
SO IT'S, IT'S PART OF, UH, YOU KNOW, WHAT KINDS OF USES WOULD BE AVAILABLE, UH, FOR THE LAND ABOVE, YOU KNOW, ON THE SURFACE ABOVE THE WATER THAT WE'RE STORING THAT WE WOULD NEED TO MAKE SURE THAT WE, UM, FULLY UNDERSTAND.
AND, UM, OTHER PROJECTS THAT HAVE BEEN DONE, LIKE THE SAN ANTONIO WATER SYSTEM, THEY HAVE A PROJECT CALLED H TWO OAKS, UH, THAT THEY HAVE, UM, WHERE THEY STORE WATER IN AN AQUIFER STORAGE, UM, RECOVERY, UM, SYSTEM.
AND THEY HAVE, UM, ACREAGE ABOVE THAT.
AND THEY CONTROL THE, UH, THE WATER UNDERNEATH THAT AND MAKE SURE THEY UNDERSTAND WHERE IT IS AND, AND THAT THEY CONTROL THE ACCESS TO THAT.
SO, YOU KNOW, WE'RE LEARNING FROM OTHERS AND, UM, IT'S, IT IS SOMETHING THAT'S VERY IMPORTANT AND WE'LL BE INCORPORATING THE, THE NEED TO MAKE SURE WE CONTROL THAT, UM, AS PART OF OUR PROJECT.
'CAUSE I THOUGHT THAT WAS A REAL STUPID QUESTION.
UM, IS IT, IS IT LEGALLY POSSIBLE TO PREVENT DIRECTIONAL DRILLING FOR WATER? UH, I AM NOT SURE ABOUT, UM, MAYBE ONE MORE THING TO LOOK AT.
YEAH, I AGREE THAT, YOU KNOW, WE WOULD, WE WOULDN'T WANNA HAVE THAT VULNERABILITY THAT SOMEBODY COULD COME IN AND SIT ON THE EDGE OF YOUR FENCE OF, OF YOUR, YEAH.
SURFACE FENCE LINE AND MM-HMM
ALRIGHT, ANY OTHER QUESTIONS? NO, NO, PLEASE CONTINUE.
UH, THIS SLIDE SHOWS THE WATER USE OR THE PER PERSON WATER USE, OR GALLONS PER CAPITA DAILY IS ANOTHER, ANOTHER WAY TO SAY THAT FOR AUSTIN, OR THE LAST, I DON'T KNOW HOW MANY QUARTERS BACK TO 2019, IF YOU LOOK AT THIS CHART ON THE FAR RIGHT SIDE, THAT'S THE, UH, 2026 QUARTERS, THE FIRST AND SECOND QUARTERS, THE VERTICAL BARS REPRESENT THE PER PERSON WATER USE IN THAT QUARTER, AVERAGED IN THAT QUARTER.
AND THE STRATA IN THOSE BARS IS THE WATER USE FOR DIFFERENT TYPES OF CATEGORIES BY AUSTIN WATER.
UH, THE PER PERSON WATER USE FOR Q2 WAS ONE 17, UH, WHICH IS PRETTY LOW.
I THINK THIS IS PROBABLY THE LOWEST
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IN THAT SERIES OF, UH, OF DATA HERE FOR Q2.SO IT'S, IT'S A LOW PER PERSON WATER USE.
AND, UH, COUPLED WITH THE Q1, WHICH IS THE WINTER, UH, WE HAVE AN AVERAGE PER PERSON WATER USE FOR THE FIRST HALF OF THE YEAR OF 115 GPCD.
AND YOU CAN SEE IN THIS CHART, IN PAST YEARS, OUR AVERAGE GP CDS HAVE BEEN ABOUT ONE 30, UH, 1 28, 1 33 GOING BACK.
SO, UH, WE'RE HAPPY TO SEE THAT THAT WATER USE PER PERSON WATER USE IS, IS GOING DOWN OVER THE LAST SEVERAL YEARS.
SO WE HOPE THAT IT WILL CONTINUE TO LESSEN THE, UH, IN THE NEXT TWO QUARTERS.
THE NEXT SLIDE, AND THIS IS A SECOND VERSION OF THAT, THAT SAME DATA, THE PER PERSON WATER USE, BUT INSTEAD OF VERTICAL BARS, WE HAVE LINES.
UM, SO IT JUST ALLOWS YOU TO, UH, RUN YOUR EYE FROM LEFT TO RIGHT TO SEE HOW WATER USE CHANGES BY DIFFERENT CATEGORIES ACROSS YEARS AND WITHIN A YEAR.
THE TOP BLUE LINE IS THE SINGLE FAMILY RESIDENTIAL, AND YOU'LL SEE ON THE LEFT HAND SIDE, THE LEFT HAND YEARS, I GUESS, UM, THAT THERE'S SOME PRETTY STEEP SPIKES IN Q3, WHICH IS THE SUMMER MONTHS, UM, THAT REALLY DROVE A LOT OF WATER USE, UM, THAT, THAT Q3 PERIOD.
BUT AS YOU SEE, AS YOU LET YOUR EYE RUN OVER TOWARDS THE RIGHT, YOU CAN SEE THAT THOSE PEAKS IN THE SUMMER HAVE LESSENED OVER THE LAST SEVERAL YEARS.
UM, WE HOPE THAT THAT CONTINUES.
SO SOME OF THE TAKEAWAYS AND SOME OF THE NEXT STEPS GOING INTO Q3, AND WE'RE ALMOST AT THE END OF THE THIRD QUARTER, AT THE END OF SEPTEMBER.
IT'LL BE THE END OF THE THIRD QUARTER, UH, TAKEAWAYS, LOWER WATER USE IN Q2, UM, WITH THE POTENTIAL OF, UH, SUPER EL NINO OR A STRONG EL NINO GOING INTO THE FALL AND WINTER, UH, THEN MAKE LAKES MAY REMAIN FULL, UH, GOING TO THE SPRING, WHICH IS SOMETHING NEW, UH, FOR US.
WE HAVEN'T EXPERIENCED THAT IN THE LAST SEVERAL YEARS TO HAVE A, A SPRING WITH LAKES BEING FULL.
UH, ONE OF THE INTERESTING THINGS IS NOW ADAPTING OUR MESSAGE, HOW TO ENCOURAGE CONSERVATION IN A TIME OF PLENTY.
IT'S ONE THING WHEN YOUR LAKES ARE 50% FULL TO SAY WE NEED TO SAVE WATER, BUT IT IT REQUIRES DIFFERENT, UH, LANGUAGE WHEN, UH, THOSE LAKES ARE A HUNDRED PERCENT FULL.
AND THEN FINALLY, AT, THROUGHOUT THE END OF THIS FISCAL YEAR, WHICH ENDS AT THE END OF THIS MONTH, WE WILL BE IMPLEMENTING, UM, ALL OF THE RECOMMENDATIONS FROM A PREVIOUS PLAQUE AND VEATCH REPORT ON WATER LOSS.
SO CURRENTLY, 24 OF THOSE, OF THE 32 RECOMMENDATIONS ARE COMPLETE, AND WE'RE STILL WORKING TO FINISH UP THOSE FINAL RECOMMENDATIONS FROM THAT.
IT WAS A RATHER LARGE REPORT, UH, FROM BLACK AND VEATCH ABOUT WATER LOSS MITIGATION.
AND THAT ENDS MY BRIEFING FOR Q2, AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS NOW OR AT A LATER TIME.
UM, ARE THERE QUESTIONS FROM COMMISSIONERS? YES.
COM UH, WE'LL START WITH THE VICE CHAIR ROBBINS, I SEE YOUR HAND THERE, AND THEN WE'LL GO TO COMMISSIONER SILVERSTEIN.
UM, I, UH, JUST HAVE A FEW COMMENTS.
UH, THERE ARE NOT THAT PROFOUND, BUT, UH, ONE, UM, THIS IS JUST MY OPINION, BUT WE'RE LEAKING 17% OF OUR WATER THROUGH PIPES.
THAT SEEMS TO BE A HUGE AQUIFER, IF YOU'LL CALL IT THAT, THAT WE'RE NOT TAPPING VERY WELL.
AND I PERSONALLY WOULD LIKE TO SEE THAT ADDRESSED BEFORE AUSTIN SPENDS A BILLION AND A HALF DOLLARS, UH, ON AN AQUIFER STORAGE SYSTEM THAT MIGHT PROVIDE US WITH A FEW MONTHS OF SPARE WATER IN A DROUGHT.
UH, SECONDLY, I, I'M, I HOPE, I HOPE I AM WRONG, BUT WHEN YOU SHOWED THE, UH, GRAPHS OF THE PER CAPITA USAGE, UM, I'D LIKE TO THINK THIS IS DUE TO A CONSERVATION ETHIC,
[00:15:01]
AND PROBABLY SOME OF IT IS, BUT SOME OF IT MIGHT BE DUE TO THE INCREASING COSTS FROM YEAR TO YEAR.AND FINALLY TO ADDRESS, UH, COMMISSIONER SILVER, UH, STEIN'S CONCERNS WITH HER BACKGROUND AND ENERGY.
SHE MAY KIND OF RECALL THAT BACK, UH, IN THE 1950S, 1960S, THERE ACTUALLY WAS A, UH, SCANDAL, UH, WHERE, UH, SMALL, UH, OIL FIELD HOLDERS WERE DRILLING SLANTED WELLS INTO MAJOR OIL FIELD, UH, HOLDERS.
UM, I'M SURPRISED NO ONE EVER MADE A MOVIE OUT OF IT, BUT, UM, IT, IT WAS AN INTERESTING HISTORICAL EPISODE.
UM, MR. KLUGE, I THINK, UM, MAYBE, I KNOW IN THE PRESENTATION, IN THE BACKUP, THERE'S MORE INFORMATION, MORE, MORE DETAIL AROUND THE WATER LOSS, UM, MEASURES.
AND, UM, MAYBE YOU CAN GIVE US A 32ND KIND OF OVERVIEW OF, OF WHAT AUSTIN WATER IS DOING TO, UM, WHITTLE DOWN THAT 17%, UM, WATER LOSS.
YOU, I KNOW YOU MENTIONED ABOUT THE, THE 51,000 LINEAR FEET OF LEAK DETECTION, BUT MAYBE IF YOU COULD GIVE US JUST A LITTLE BIT MORE ABOUT WHAT'S GOING ON WITH THAT.
SO CERTAINLY THAT IS SOMETHING WE RECOGNIZE AS A, THAT IS, IS SOMETHING BIG TO TACKLE.
UM, REGARDLESS OF ALL THE WATER CONSERVATION ACTIVITIES TO DO THAT, WE HAVE A NUMBER OF ACTIVITIES, BOTH THE, CERTAINLY THE, UH, LEAK DETECTION I HAD MENTIONED BEFORE THAT'S IMPORTANT, BUT LAST SUMMER WE GOT A, A SIGNIFICANT LOAN FROM THE WATER DEVELOPMENT BOARD TO REPLACE A LOT OF THE, I'M GONNA HAVE TO SAY, NON-TECHNICAL PLASTIC PIPES.
I KNOW THERE'S AN ENGINEER WHO'D HAVE A MUCH BETTER DESCRIPTION OF THIS PARTICULAR TYPE OF PIPE.
UM, BUT IT'S A PIPE THAT HAD BEEN PUT IN THE PAST AND IS FOUND TO BREAK MORE OFTEN.
SO THAT'S A BIG EFFORT THAT'S BEEN GOING ON SINCE LAST YEAR, UH, TO REPLACE ALL THOSE PIPES AND TO REALLY LEAN INTO REPLACING, SORRY, THE, THE SERVICE LINE PIPES, THE, THE PIPE THAT GOES FROM THE MAIN TO THE HOUSE.
UM, YOU KNOW, IN YEARS PAST THAT THERE MAY NOT HAVE BEEN A LARGE EMPHASIS ON REPLACING THOSE WHILE WORKING ON THE MAINS, BUT WE'VE DETERMINED THAT THAT'S ANOTHER SOURCE OF LEAKAGE.
SO WE'RE REALLY LEANING INTO REPLACING THOSE SERVICE LINES.
UM, COMMISSIONER SILVERSTEIN, DID YOU WANNA, OKAY.
UM, YEAH, RELATED TO THAT, LOOKING AT THE, THE BACKGROUND REPORT, UM, IT LOOKS LIKE A LOT OF THE LARGE DIAMETER TRANSMISSION LINES LEAK DETECTION WAS FROM AUSTIN WATER STAFF, AND FOR THE SMALLER ONES IT WAS FROM CONTRACTED WORK.
CAN YOU JUST EXPLAIN A LITTLE BIT MORE, LIKE, IS THAT A, A CAPACITY ISSUE ON Y'ALL SIDE? IS THAT LIKE A, ARE THEY TECHNICALLY DIFFERENT AND YEAH.
CAN YOU JUST EXPLAIN THAT? RIGHT.
AND, AND THIS IS ON, UM, SLIDE, I THINK 12 THAT IT IS REFERRING TO, BUT IT, IT'S A CHART THAT SHOWS THE LINEAR FEET OF SMALL DIAMETER LEAK DETECTION EFFORTS.
AND ON THE LEFT HAND SIDE IN, IN Q2 AND Q3 OF 2025, THERE ARE SOME PRETTY TALL BARS, BLUE BARS, AND THAT'S SHOWING, UH, LINEAR FEET BEING DONE BY CONTRACTED, UH, COMPANIES.
AND THEN THAT DROPS OFF AND YOU JUST SHOW WELL, THANK YOU, DAVID.
UH, JUST SHOW, UM, GREEN, SHORT GREEN BARS ON THE RIGHT THERE.
AND THAT'S LEAK DETECTION EFFORTS BEING DONE BY AUSTIN WATER STAFF.
AND THE QUESTION IS, WHAT HAPPENED TO ALL THE CONTRACTED, UH, LEAK DETECTION? WELL, THAT IS GOING TO RESUME IN EARLY 2027.
UH, IT'S NOT A MATTER OF CONSTRUCTION OR ENGINEERING.
IT'S A MATTER OF, UH, CONTRACT PROCUREMENT, AND THEY'RE WORKING THROUGH THAT AND HAVING TO RECURE A NEW CONTRACT FOR THAT.
SO, UH, UNFORTUNATELY THAT WE DON'T HAVE THAT CONTRACTED, UH, LEAK DETECTION GOING ON NOW, BUT IT WILL BE IN EARLY 2027.
OTHER QUESTIONS? YES, COMMISSIONER SILVERSTEIN.
[00:20:01]
CHAIR ROBBINS WANTS TO STAY ON THIS TOPIC FOR A SECOND, SO LET'S LET HIM, OKAY, GO AHEAD.PAUL, IN, I'M GOING FROM MEMORY HERE, BUT IN 2024, I BELIEVE AUSTIN REPLACED APPROXIMATELY SEVEN AND A HALF MILES OF HEIGHT.
UNFORTUNATELY, WE HAD MORE THAN, WE HAVE MORE THAN 3,900 MILES.
AND IN FORT WORTH, MY LIMITED INFORMATION IS THAT THEY'RE PLANNING ON REPLACING, UH, ALL OF THEIR CAST IRON PIPE.
UH, THEY'RE, UH, BEYOND THE POLYBUTYLENE SERVICE LINES CAST IRON IS THE MOST FRAGILE MATERIAL, THE MOST PROBLEMATIC IN GENERAL, AND THEY HAVE A PLAN TO REPLACE IT ALL OVER A PERIOD OF YEARS.
AUSTIN DOES NOT, UH, IT'S A LOT OF MONEY AND I DON'T WANT TO BE HYPERCRITICAL, I'M JUST SAYING WE NEED TO ADDRESS THIS BEFORE WE GET INTO AQUIFER STORAGE.
CAN I MAKE OH, OH, ONE POINT, GO RIGHT AHEAD.
UH, THERESA LUS, UH, AUSTIN WATER.
YEAH, I JUST WANNA MAKE A POINT ABOUT WHEN WE ARE LOOKING AT, UH, REPLACING MAINS AND WE DO, UH, REPLACE, UM, CAST IRON MAINS WHEN NEEDED, AND THEY ARE THE MOST, UM, BREAK PRONE MAINS THAT WE HAVE.
AND WE HAVE QUITE A BIT OF CAST IRON MAINS, ESPECIALLY IN THE OLDER PARTS OF OUR SYSTEM.
UH, BUT WE HAVE, UH, A PROGRAM WHERE WE IDENTIFY MAINS THAT ARE, HAVE BREAK HISTORIES AND WE, UH, PRIORITIZE AND TARGET, UM, REPLACING THOSE.
SO WE, WE MAY NOT, UM, REPLACE A PIECE OF CAST IRON MAIN THAT'S CONTINUING TO, YOU KNOW, UM, PROVIDE SERVICE AND IS NOT HAVING LEAKING ISSUES.
UH, BUT WE WERE KIND OF SPREADING OUR DOLLARS AROUND AND, UM, TARGETING THOSE THAT ARE, HAVE, UH, HAD BREAK HISTORY AND, UH, HAVE A, UH, AN ISSUE WITH LEAKING.
SO I JUST WANTED TO MAKE THAT POINT TO, TO MAKE THE COMMISSION AWARE THAT, THANK YOU.
COMMISSIONER LUKI, I BELIEVE, I BELIEVE THAT YOU DO THE BEST WITH WHAT YOU HAVE.
I'M SIMPLY CONTRASTING WHAT'S GOING ON TO THE LARGE EXPENDITURE OF AQUIFER STORAGE.
I I WAS CURIOUS ABOUT THE RECLAIMED WATER PROJECTS.
HOW LONG IS THOSE CONSTRUCTION PHASES GONNA TAKE? I BELIEVE, UM, FOR THE, THE THREE THAT MOVED INTO, UM, CONSTRUCTION PHASES, I SEE, AND THIS IS ON, ON SLIDE 16, BUT THOSE THREE HAVE AN EXPECTED COMPLETION DATE OF Q4 2027.
ONE IS Q2 OF 2027, AND ONE IS Q4 OF 2027.
UM, I, YOU, I'M SURE RECALL THAT I HAVE NOT BEEN SHY ABOUT NAGGING YOU IN THE PAST ABOUT WATER LOSSES.
AM AM I CORRECT IN THINKING THAT THE TERM NON-REVENUE WATER IS, IS, IS THE EUPHEMISM FOR LEAKAGE, BY THE WAY? THE VAST MAJORITY OF THAT WOULD BE LEAKAGE OR WATER LOSS IN INR WATER LOSS MINES.
UM, BUT, BUT ON THE WHOLE, I THINK THIS IS GREAT PROGRESS AND I WANTED TO SAY THANK YOU.
ESPECIALLY HAVING CRAB, HAVING THE, THE PROGRESS THAT YOU'RE MAKING, GETTING THROUGH THAT BLACK AND VEATCH REPORT, WHICH HAD A LOT OF STUFF.
AND, UM, I AM THRILLED TO SEE YOU EMBRACING ALL THOSE RECOMMENDATIONS AND GETTING AFTER 'EM.
NO, ANY OTHER QUESTIONS OR COMMENTS? AND GREAT JOB AT GETTING, UH, AUSTIN WATER CUSTOMERS TO KNOW ABOUT CONSERVATION NUMBER THREE IN THE, IN THE COUNTRY.
[3. Staff Briefing regarding Austin Water’s proposed Fiscal Year 2026-2027 GoPurple Pilot Incentive for alternative onsite water reuse systems and reclaimed water connections by Katherine Jashinski, Supervising Engineer, Austin Water. ]
UH, ITEM NUMBER THREE IS STAFF BRIEFING, UH, ON AUSTIN WATERS.[00:25:02]
GO PURPLE PILOT INCENTIVE.UM, AND WE HAVE, UH, MS. JASINSKI JOINING US VIRTUALLY.
CAN YOU HEAR ME OKAY? YES, WE CAN GO AHEAD.
UM, ARE THEY, THEY ARE NOT UP YET.
UM, WE'LL BRING UP ITEM THREE ON THE, UH, ON THE SCREEN.
I'M A SUPERVISING ENGINEER WITH OUR WATER REUSE TEAM IN AUSTIN WATER.
AND I'LL BE GIVING THE BRIEFING ON ONSITE REUSE AND CENTRALIZED RECLAIMED.
THESE ARE STRATEGIES WITHIN OUR WATER FORWARD, UH, WATER SUPPLY PLAN THAT ARE, UM, AIMED AT EXPANDING RECYCLED WATER USE THROUGHOUT AUSTIN FOR THINGS.
UM, NON-DRINKING WATER NEEDS LIKE IRRIGATION, TOILET FLUSHING, COOLING, UM, ARE THE, ARE THE MAIN USES.
WE HAVE BRANDED, UH, THIS KIND OF PROGRAM RELATED TO EXPANDING RECYCLED WATER USE, UH, AS OUR GO PURPLE PROGRAM.
UM, AND JUST AS A REMINDER, AND, UH, IT'S CALLED GO PURPLE BECAUSE PURPLE IS THE INDUSTRY COLOR FOR RECYCLED WATER PIPING.
UM, AND SO THE GO PURPLE PROGRAM WAS ADOPTED IN ORIGINALLY IN MARCH OF 2024, SO IT'S JUST OVER TWO YEARS OLD AT THIS POINT.
UM, AND THE PROGRAM IS A COMPREHENSIVE PROGRAM, WHICH INCLUDES, UH, CODE CHANGES FOR ONSITE WATER REEF AND RECLAIMED WATER CONNECTIONS.
THESE ARE, UM, UH, THE, THE CODE CHANGES THAT WENT INTO EFFECT IN 2024 WERE AIMED AT LARGE DEVELOPMENT PROJECTS.
THOSE THAT HAVE 250,000 SQUARE FEET ARE MORE OF GROSS FLOOR AREA COMMERCIAL AND MULTIFAMILY PROJECTS.
SO THAT'S LIKE AN APARTMENT WITH, UH, YOU KNOW, OVER 200 UNITS IN IT OR AN OFFICE BUILDING FOR A THOUSAND EMPLOYEES.
YOU KNOW, KIND OF THAT, THAT'S A SCALE OF, UM, THESE NEW CODE REQUIREMENTS.
UH, THE PROGRAM ALSO INCLUDES AFFORDABILITY STRATEGIES FOR REUSE PROJECTS, AND THAT'S THE SUBJECT OF THE RCA THAT IS BEFORE YOU THIS EVENING.
THAT'S THE GO PURPLE PILOT INCENTIVE PROGRAM WHERE THE UTILITY COST PARTICIPATES, UM, WITH THESE PROJECTS TOWARDS THE COST OF INSTALLING, UH, DUAL PLUMBING AND, UM, EXPAND, UH, BUILDING OUT RECLAIMED MAINS, UM, THAT THE CITY WILL THEN OWN AND OPERATE.
AND THEN ALSO INSTALLING ONSITE WATER REUSE SYSTEMS. AND THEN FINALLY, THERE IS A, A COMMUNITY BENEFIT CHARGE THAT WENT INTO EFFECT, UM, WHICH ADDS 15 CENTS PER THOUSAND GALLONS, UM, USED TO EVERY UTILITY RATE PAYERS BILL TO FUND.
UH, THE MAJORITY OF THAT MONEY GOES TO, UH, EXPANDING THE RECLAIMED WATER IPE NETWORK.
AND I HAVE A SLIDE SHOWING THAT LATER.
THE, THE EXTENT OF THAT NETWORK, UM, AND THEN ALSO THE REMAINDER GOES TOWARDS THE, UH, INCENTIVE PROGRAM.
UH, CONTRARY TO THE TITLE OF THE SLIDE, THIS SLIDE IS ACTUALLY SHOWING, UM, THE NUMBER OF LARGE DEVELOPMENT PROJECTS, UH, UH, AND SMALL DEVELOPMENT PROJECTS THAT HAVE COME IN FOR SITE DEVELOPMENT PERMITS.
UH, UH, FROM THE PERIOD OF APRIL, 2024 TO MARCH, 2026, WE DID A TWO YEAR LOOK BACK.
SO 56, UH, NEW PROJECTS CAME IN AND HAD TO COMPLY WITH THE CODE REQUIREMENTS.
20 OF THOSE WERE RECLAIMED WATER PROJECTS, MAKING PROVISIONS TO CONNECT TO THE RECLAIMED WATER SYSTEM.
36 WERE FURTHER THAN 500 FEET FROM THE RECLAIMED WATER SYSTEM, SO THEY WEREN'T CLOSE ENOUGH TO BE ABLE TO CONNECT.
UM, AND SO THEY WERE REQUIRED TO INSTALL ONSITE WATER REUSE SYSTEMS. UM, HOWEVER, THERE ARE EXEMPTIONS WITHIN THE CODE.
SO IF YOU HAVE 50% ONSITE AFFORDABLE HOUSING WITHIN YOUR DEVELOPMENT, THAT IS AT 60 TO 80% MFI, UH, THE AFFORDABILITY, UH, UH, KIND OF METRIC FOR THOSE YOU ARE EXEMPT FROM THE GO PURPLE CODE REQUIREMENTS.
WE HAD SEVEN OF THOSE PROJECTS.
THEY WERE GRANDFATHERED PROJECTS THAT, YOU KNOW, BEGAN BEFORE THE CODE WENT INTO INFECT.
AND THEN FIVE PROJECTS PAID, UH, THE FEE IN LIEU OF INSTALLING AN ONSITE WATER REUSE SYSTEM.
SO THOSE PROJECTS CAN CHOOSE TO DUAL PLUM THEIR BUILDING, UH, AND BE WHAT WE CALL RECLAIMED READY.
UM, SO THEY SET UP THEIR DEVELOPMENT TO BE ABLE TO ACCEPT PURPLE PIPE WHEN WE, WHEN WE EXTEND IT TO, UM, NEW AREAS OF THE CITY.
AND THEN THEY ALSO PAY A FEE, UH, TO AUSTIN WATER THAT GOES INTO BUILDING MORE RECLAIM MAINS THROUGHOUT THE CITY.
AND SO ON AVERAGE, UH, EACH YEAR WE'RE PERMITTING
[00:30:01]
10 RECLAIMED WATER PROJECTS AND 10 ONSITE WATER REUSE PROJECTS, UM, OVER THE LAST TWO YEARS.THIS TABLE IS SHOWING THE INCENTIVE ACTIVITY FOR THAT SAME TWO YEAR PERIOD.
UM, STARTING ON THE LEFT, THE REBATES FOR RECLAIMED MAINS EXTENSIONS, WE DIDN'T HAVE ANY APPLICANTS IN THE LAST TWO YEARS.
UM, AND THAT REBATE, UM, WHAT THAT COVERS IS THAT FOR THESE LARGE DEVELOPMENT PROJECTS, THE CODE REQUIREMENT IS THAT IF YOU'RE WITHIN 500 FEET OF A RECLAIMED WATER SYSTEM, YOU'RE REQUIRED TO BUILD UP TO 500 OF FEET OF MAINE TO GET TO YOUR PROPERTY SO THAT YOU CAN DUAL PULL YOUR BUILDING AND CONNECT, UM, AND USE THAT, THAT RECLAIMED WATER.
UM, SO THIS REBATE, UM, IT COVERS THE COST THAT, SO FOR THE DEVELOPER, THEY PAY FOR THE FIRST 250 FEET OF THE MAIN EXTENSION.
AND THEN FOR ANYTHING BEYOND THAT, AUSTIN WATER WILL PAY FOR UP TO 50% OF THAT REMAINING LENGTH OF PIPE THAT THEY'RE INSTALLING.
UM, AND SO THE BENEFIT TO THE UTILITY IS THAT, UM, IN ADDITION TO OUR CAPITAL IMPROVEMENT PROJECTS THAT, UM, KEVIN HAD JUST MENTIONED, AND I HAVE A SLIDE SHOWING KIND OF THE, UH, AN ACCOUNTING OF OUR, OUR CAPITAL IMPROVEMENT PROJECTS FOR RECLAIM MAIN EXPANSION AND A, AND A SUBSEQUENT SLIDE.
BUT THIS IS AN ADDITIONAL, UH, METHOD FOR US TO BE ABLE TO HAVE MORE RECLAIMED MAINS BUILT THROUGHOUT THE CITY, UM, THROUGH THIS COST PARTICIPATION WITH THE DEVELOPERS WHO ARE DOING THE DESIGN ENGINEERING, PROJECT MANAGEMENT, AND ULTIMATELY THE CONSTRUCTION OF THOSE MAINS.
THE SECOND COLUMN IS REBATES FOR ONSITE RE SYSTEMS. SO IF YOU ARE VOLUNTARILY INSTALLING AN ONSITE WATER REUSE SYSTEM ARE GOING ABOVE AND BEYOND CODE, UM, YOU KNOW, OFF OFFSETTING MORE PORTABLE WATER USE THAN, THAN THE CODE REQUIRES, YOU CAN QUALIFY FOR THIS REBATE.
UH, WE DIDN'T HAVE ANY APPLICANTS, UH, FOR THAT, UM, PROGRAM EITHER, OR THAT REBATE EXPEDITING EXPEDITED BUILDING PERMIT REVIEW.
UH, THAT REBATE WILL FUND UP TO $36,000, UH, PER PROJECT FOR THE COST OF GOING THROUGH THE EXPEDITED BUILDING PLAN REVIEW PROCESS TO HELP THESE PROJECTS JUST GET FROM, YOU KNOW, DESIGN TO CONSTRUCTION A LITTLE BIT QUICKER.
WE HAD TWO, UM, TWO PROJECTS, UH, WERE AWARDED THAT REBATE, AND I THINK THE TOTAL WAS JUST AROUND $63,000 FOR BOTH OF THOSE.
UM, NOT CHARGING IMPACT FEES FOR NON-POTABLE METERS.
THIS IS ACTUALLY NOW A STATE REQUIREMENT.
DURING THE LAST LEGISLATIVE SESSION, UH, THE STATE PASSED A BILL THAT SAID, UH, UTILITIES HAVE TO, UM, CHARGE REDUCED CONNECTION FEES, IMPACT FEES, CAPITAL RECOVERY FEES, UM, FOR PROJECTS THAT ARE IMPLEMENTING CONSERVATION AND REUSE.
AND SO IF YOU HAVE A RECLAIMED WATER METER OR A A METER THAT'S JUST THERE TO BACK UP YOUR ONSITE REUSE SYSTEM, WE DON'T ASSESS IMPACT FEES FOR THAT.
AND EVERY PROJECT, IT'S KIND OF BAKED INTO OUR REVIEW PROCESS.
SO EVERY PROJECT IS JUST GETTING THAT.
THEY MAY NOT EVEN REALIZE THAT THEY'RE GETTING IT, UM, BUT THEY AREN'T BEING ASSESSED IMPACT FEES FOR THOSE METERS.
AND THEN ASSISTANCE WITH THE PACE PROGRAM, THE PACE THE PROPERTY ASSESS CLEAN ENERGY PROGRAM, THAT'S ACTUALLY A PROGRAM THAT IS, UM, MANAGED THROUGH THE TRAVIS COUNTY PACE AUTHORITY.
UH, IT GIVES LOW INTEREST LOANS FOR WATER CONSERVATION AND WATER REUSE INITIATIVES.
UM, AND OUR AUSTIN WATER, UM, OFFERS STAFF RESOURCES TO HELP YOU FILL OUT THAT APPLICATION.
UH, WE DIDN'T HAVE ANY TAKERS ON THAT THIS LAST YEAR, SO THESE LAST TWO YEARS EITHER.
UM, THIS SLIDE IS SHOWING, UH, THE ONSITE WATER REUSE SYSTEM PERMITTING ACTIVITIES SPECIFICALLY.
SO, UM, YOU KNOW, I SAID WHEN I SAID THAT WE HAD LIKE ABOUT 10 ONSITE WATER REUSE SYSTEMS BEING PERMITTED PER YEAR, THIS SLIDE IS SHOWING WHICH OF THOSE 20 PROJECTS HAVE MOVED FORWARD INTO THE BUILDING PERMIT CONSTRUCTION PHASE, UM, OF THEIR PROJECTS.
AND YOU CAN SEE IN THE FIRST LINE, THERE'S 14 OF THOSE HAVE GOTTEN, UM, BUILDING PERMITS APPROVED ESSENTIALLY TO START CONSTRUCTING THEIR BUILDINGS AND THEIR ONSITE REUSE SYSTEMS, OR FIVE IN THE FIRST YEAR, NINE IN THE SECOND YEAR.
UH, THE ANTICIPATED WATER SAVINGS WAS ACTUALLY HIGHER IN THE FIRST YEAR.
UH, WE JUST HAD ONE REALLY BIG PROJECT.
UM, THE APPLE CAMPUS UP ON PAR LANE, UM, INSTALLED A, A REALLY LARGE REUSE SYSTEM FOR THEIR ENTIRE CAMPUS.
BUT OVERALL, WE'RE ANTICIPATING WHEN THESE SYSTEMS COME ONLINE, WE'LL BE SAVING 74.1 MILLION GALLONS PER YEAR.
UM, IN THE SECOND YEAR, WE HAD OUR FIRST
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PROJECTS ELECT TO PAY THE, UH, FEE IN LIEU OF INSTALLING THE ONSITE WATER REUSE SYSTEM.UM, AND SO WE GOT $682,720 THAT WE CAN REINVEST IN, UM, BUILDING OUT THE, THE RECLAIMED WATER NETWORK.
UH, ANOTHER THING RELATED TO THE ONSITE WATER USE, UH, PROGRAM IS THAT WE ARE WORKING ON AN OPERATOR TRAINING AND CERTIFICATION PROGRAM.
THESE ONSITE WATER REUSE SYSTEMS ARE, UM, RELATIVELY NEW TO THE INDUSTRY, ESPECIALLY THE SYSTEMS THAT ARE BRINGING WATER INDOORS FOR TOILET FLUSHING.
UM, AND SO WE ARE WORKING TO DEVELOP A LOCAL WORKFORCE TO BE ABLE TO HAVE OPERATORS OF THESE ONSITE SYSTEMS. UM, AND SO WE HAVE A PUBLISHED, UH, PARTNERING WITH THE WATER RE ASSOCIATION.
WE'VE PUBLISHED A TRAINING MANUAL, UM, AT THE END OF LAST YEAR.
WE'RE WORKING ON A CERTIFICATE EXAM THAT WILL ACCOMPANY THE TRAINING MANUAL.
UM, IT'S, UH, BEEN A BIT DELAYED SINCE THE SLIDE WAS CREATED.
WE'RE NOW TARGETING KIND OF THE BEGINNING OF, UH, 2027.
UM, AND WE HELD A WORKSHOP THIS SUMMER WITH SOME, UH, SOME TRADE GROUPS, INDUSTRY GROUPS THAT ARE LIKE IN WORK, UM, ADJACENT TO THE ONSITE REUSE SYSTEM.
SO PLUMBING TRADE GROUPS, UM, SEPTIC, UH, MAINTENANCE GROUPS, FACILITIES MANAGEMENT GROUPS TO GET FEEDBACK ON, UH, A TRAINING COURSE THAT WILL ACCOMPANY THE, UH, MANUAL.
UM, AND THEN WE HAVE IDENTIFIED A, A FUNDING PARTNER WITH CAPITAL AREA WORKFORCE SOLUTIONS.
THEY HAVE A PROGRAM FOR UPSKILLING EXISTING TRADES LIKE PLUMBERS AND, UH, ALL THOSE, YOU KNOW, TRADES I JUST MENTIONED, UH, TO GET THIS NEW CERTIFICATION, UH, WHEN IT BECOMES AVAILABLE.
UH, AND OUR GOAL WAS TO HAVE THE FORCE READY FOR FALL OF 2026.
UM, THAT MAY ALSO GET PUSHED TO EARLY 2027.
UM, BUT WE'RE, YOU KNOW, WE'RE CLOSE TO HAVING THAT THAT FINALIZED.
UH, I JUST WANTED TO, WE JUST WANTED TO MENTION ONE, UH, REALLY BIG ONSITE SYSTEM THAT IS AT 90% DESIGN.
THAT'S THE UNIVERSITY OF TEXAS IS DESIGNING A WASTEWATER MINING, UM, PROJECT.
SO THEY HAVE SUCH A HIGH RECLAIMED WATER DEMAND WITHIN THEIR UTILITY SYSTEMS, THEIR, UH, COOLING TOWERS AND THEIR BOILER SYSTEMS, UM, THAT THEY ARE NEEDING TO TAKE EXTRACT WASTEWATER FROM OUR COLLECTION SYSTEM AND TREAT IT IN A, UH, A RECLAIMED WATER PLANT THAT THEY WILL OWN AND OPERATE ON THEIR CAMPUS AND USED TO OFFSET POTABLE WATER THAT'S CURRENTLY BEING USED IN THEIR COOLING SYSTEMS. AND SO ONCE THAT'S OPERATIONAL, THAT WILL SAVE US 280 MILLION GALLONS PER YEAR.
YEAH, THIS SLIDE AND THE LAST SLIDE ARE RELATED TO THE RECLAIMED WATER NETWORK.
ON THE LEFT, YOU'LL SEE A MAP OF OUR CENTRALIZED, UH, RECLAIMED WATER SYSTEM AS IT WAS IN 2005.
UM, WE HAVE TWO SOURCES FOR THAT WATER.
ONE IS THE SOUTH AUSTIN REGIONAL WASTEWATER TREATMENT PLANT, AND ONE IS THE WALNUT CREEK WASTEWATER TREATMENT PLANT.
AND THEY, UH, YOU CAN SEE ADDITIONALLY, OR INITIALLY THE WALNUT SYSTEM WAS JUST FEEDING NORTH OF THE RIVER AND THE SAR SOUTH AUSTIN REGIONAL SYSTEM WAS FEEDING, UH, AREAS SOUTH OF, OF THE RIVER.
UM, AND TODAY ON THE RIGHT HAND SIDE, THE MAP IS JUST SHOWING HOW WE'VE BUILT THAT OUT, UM, TO INTERCONNECT THOSE TWO SYSTEMS. THEY'RE NOT TECHNICALLY INTERCONNECTED, BUT THAT'S ONE OF THE PROJECTS IN THE NEXT, THAT WILL BE COM COMPLETED IN THE NEXT, UM, COUPLE OF YEARS TO IN INTERCONNECT THE TWO SYSTEMS. UM, AND WE HAVE BUILT OUT A LOT OF OTHER MAINES THROUGH DOWNTOWN, THROUGH BOTH OUR OWN CAPITAL IMPROVEMENT, UH, PLAN, AS WELL AS WITH PARTNERING WITH PRIVATE DEVELOPMENT TO EX EXTEND MAINES MAINS.
UM, AND THEN THE NE NEXT SLIDE, THIS IS THE LIST OF, UH, CIP PROJECTS THAT WE HAVE.
THE FIRST SECTION IS COMPLETING THE CORE, THAT'S WHAT I WAS MENTIONING, WHERE WE'RE INTERCONNECTING THE NORTH AND SOUTH SYSTEM TO ADD MORE, UH, RESILIENCY AND REDUNDANCY TO THE RECLAIMED WATER SYSTEM SO THAT WATER CAN COME FROM BOTH DIRECTIONS.
UM, WE HAVE PROJECTS IN CONSTRUCTION, A BI, A NORTH RECLAIMED LOOP MAIN THAT'S GONNA HELP, UM, SERVE A LOT OF THE EXPANSION GOING ON AT THE AIRPORT RIGHT NOW.
AND ALL OF THOSE NEW FACILITIES ARE BEING DUAL PLUMBED TO ACCEPT RECLAIMED WATER, UH, THE FALL WALL LANE CAPITAL RENEWAL PROJECT,
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UM, AND CREEK FIELDS, UH, THAT LINE GOT WASHED OUT BY SOME FLOODING YEARS AGO, AND WE'RE SO SORT OF REPLACING THAT LINE.AND THEN WE HAVE A LOT OF MORE PROJECTS IN DESIGN, UM, LISTED OVER HERE.
AND SO THE, THE DESIGN IS KIND OF THE FIRST STAGE, AND THEN THEY'LL GO OUT TO BID, AND THEN IT'LL TAKE US SEVERAL YEARS TO CONSTRUCT THOSE.
UM, BUT YOU CAN SEE A LOT OF THE MONEY THAT WE ARE, UM, COLLECTING THROUGH THE GO PURPLE PROGRAM IS BEING REINVESTED IN THESE SPECIFIC PROJECTS.
AND BELIEVE THAT'S THE LAST SLIDE.
UM, WE'LL START WITH QUESTIONS.
ARE THERE QUESTIONS FROM THE COMMISSIONERS? GO AHEAD.
UH, COMMISSIONER SILVERSTEIN, THANK YOU FOR THIS REPORT.
UM, A YEAR OR TWO AGO WHEN YOU FIRST SHARED THIS GO PURPLE PROGRAM WAS GETTING STARTED AND THE RMC WAS CONCERNED ABOUT THE COST OF THE PROGRAM.
AND, AND I WONDERED IF NOW THAT WE'RE TOO, AND, AND THE FACT THAT AT THE TIME IT WAS A VERY LIMITED TAKE UP, WHICH I'M HAPPY TO SEE HAS INCREASED SIGNIFICANTLY SINCE WE FIRST THOUGHT ABOUT IT SINCE WE FIRST HEARD ABOUT IT.
UM, IS IN YOUR VIEW, IS THIS ON THE WAY TO BEING A, IS IT NOW OR IS IT ON THE WAY TO BEING A SUCCESSFUL PROGRAM? AND AND WHAT CRITERIA SHOULD YOU AND WE BE USING TO EVALUATE ITS EFFECTIVENESS AND SUCCESS, PLEASE, INCLUDING, UM, WHAT'S THE COST BENEFIT OF IT? BECAUSE RIGHT NOW, I MEAN, 74.1 MILLION GALLONS IS, IS LITERALLY A DROP IN THE BUCKET COMPARED TO THE TOTAL AMOUNT OF WATER Y'ALL ARE MANAGING.
SO GIVE US SOME PERSPECTIVE PLEASE ON, ON SORT OF WHERE THIS IS GOING AND HOW WE CAN TELL WHETHER, UM, WHETHER IT'S DOING WHAT WE ALL WANT IT TO DO TO BE SUCCESSFUL, PLEASE.
UM, I DO THINK THAT WE ARE STILL VERY EARLY ON IN THE PROGRAM AND I THINK, UM, THE PERSPECTIVE, UH, YOU KNOW, AT THE WATER UTILITY IS THAT WE'RE, UH, WE'RE AT THE BEGINNING OF THE BEGINNING AND, AND THIS IS ESPECIALLY AS IT RELATES TO ONSITE REUSE, UH, AND DUAL PLUMBING AND BRINGING, YOU KNOW, RECYCLED WATER INTO BUILDINGS, THAT'S STILL FAIRLY NEW INDUSTRY PRACTICE.
AND, UM, WE ARE REALLY TRYING TO CHANGE THE WAY THAT BUILDINGS ARE DESIGNED.
UM, AND THAT INVOLVES A LOT OF VARIOUS, YOU KNOW, UH, STAKEHOLDERS AND PROCESSES AND, UM, TO BE ABLE TO KIND OF JUST CHANGE AN ENTIRE INDUSTRY TO BE ABLE TO WHO'S, YOU KNOW, USED TO DESIGNING, UH, BUILDINGS ONE WAY, NOW HAVING TO FIGURE OUT HOW TO DESIGN AND IMPLEMENT AND, AND FIND SPACE FOR, UH, THESE NEW TYPES OF SYSTEMS. UM, AND YOU KNOW, LIKE ONE PIECE OF, UH, JUST LIKE ANECDOTALLY THING THAT WE'VE HEARD RECENTLY IS THAT, YOU KNOW, SOME OF THESE PROJECTS HAVE GOTTEN THROUGH THE DESIGN PHASE AND NOW THEY'RE GOING OUT TO BID AND THEY'RE GETTING SORT OF EXORBITANT BIDS ON DUAL PLUMBING COSTS BECAUSE THE CONTRACTOR'S LIKE, WELL, I'VE NEVER DONE THAT BEFORE, AND I JUST, EH, I'M JUST GONNA, YOU KNOW, NOT, IT'S GONNA BE EXPENSIVE 'CAUSE I'M PROBABLY GONNA MESS IT UP, OR I DON'T, YOU KNOW, WHATEVER THE REASONS ARE.
I THINK THAT WE ARE AT, AT EVERY KIND OF STAGE OF LIKE THESE BUILDINGS BEING BUILT, THERE IS RESISTANCE TO CHANGE.
AND SO I THINK THAT WILL WORK ITSELF OUT OVER TIME.
AND WHEN THAT TIME IS, I, I DON'T KNOW THAT ANYONE KNOWS RIGHT NOW, UM, I SORT OF THINK ABOUT LIKE WHEN ELEVATORS STARTED BEING REQUIRED IN BUILDINGS, YOU KNOW, PEOPLE WERE LIKE, WHAT IS THIS THING I HAVE TO PUT IN MY BUILDING AND MAINTAIN? UH, EVENTUALLY NOW, YOU KNOW, ELEVATORS ARE JUST STANDARD.
UM, HOW LONG DID THAT TAKE TO KIND OF GET OVER THAT HURDLE? AND IS THIS COMPLETELY LIKE ANALOGOUS? I'M NOT SURE.
UM, BUT I DO THINK I, I, THE UPTAKE REALLY ISN'T VERY HIGH YET, BUT I DO KNOW WITH LIKE SOME OF THESE, UM, RECLAIMED WATER PROJECT, I THINK WE'LL START SEEING MORE RECLAIMED, MAIN REBATE APPLICATIONS.
AND I THINK WE WILL HAVE DATA IN THE COMING YEARS OF LIKE, HOW MUCH DID WE CONTRIBUTE? HOW MANY LINEAR FEET OF MAINE DID THE CITY GET TO TAKE OVER FROM THAT PROGRAM? AND THEN HOW MANY GALLONS OF WATER ARE THOSE PARTICULAR PROJECTS SAVING? AND THAT MIGHT BE A GOOD, YOU KNOW, METRIC TO LOOK AT, UM, WHEN WE HAVE MORE DATA AND MORE TIME.
UM, IF, IF IT HELPS IN THE ENERGY EFFICIENCY WORLD, WE WOULD CALL THIS A MARKET TRANSFORMATION PROGRAM.
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SO YOU, I DON'T KNOW IF YOU GUYS USE THAT TERM, BUT, BUT FEEL FREE TO, TO TO, TO WAVE IT AROUND BECAUSE IT MEANS SOMETHING THAT YOU'RE, THAT YOU'RE TRYING TO TRAIN PEOPLE TO DO AND, AND YOU THINK IT'S GONNA WORK, BUT YOU JUST NEED THE TECHNOLOGY AND THE SCALE TO, AND, AND TO, TO GET IT OVER THAT, THAT HUMP.UM, IN, WHEN WE HEAR FROM YOU A YEAR FROM NOW, ARE THERE SPEC, HOW MANY YEARS DO, DO YOU HAVE A GUESS AS TO SORT OF HOW MANY YEARS IT'S GONNA TAKE BEFORE YOU, YOU CAN WALK IN AND SAY, BOY, THIS, THIS PROGRAM IS NAILING IT, AND AT WHAT POINT DO, DO WE PASS THAT AND, AND YOU START HOLDING UP NUMBERS THAT SAY, WE'VE GOT THIS MUCH TAKE UP AND THE CONTRACTORS KNOW WHAT THEY'RE DOING AND, AND THIS IS WELL ACCEPTED AND HERE IS HOW, HOW MUCH OF THE COST OF THE PROGRAM THAT WE ARE COVERING.
I MEAN, I DON'T EXPECT YOU TO CRUSH THE BENEFIT COST ANALYSIS IN THE NEXT TWO OR THREE YEARS, BUT MM-HMM
IF IF THERE'S A WAY THAT, THAT WE CAN START SEEING PROGRESS IN TERMS OF THE IMPACTS RELATIVE TO THE INVESTMENT, THAT WOULD BE PRETTY GREAT.
THAT, UM, I DON'T KNOW THAT I HAVE A, I COULD KIND OF GUESS, BUT I THINK IT WOULD BE A GUESS.
UM, AND MAYBE THERE ARE, YOU KNOW, LIKE YOU SAID, MARKET TRANSFORMATION OR SOMEONE WITH MORE EXPERIENCE ON, IN AN, AND AN ACTUALLY WHEN YOU, THE ENERGY SECTOR ANALOGY IS A GOOD ONE BECAUSE THEY, YOU DEFINITELY, WE KIND OF ARE MIMICKING LIKE ONSITE ENERGY GENERATION HERE IN A WAY.
AND THEY ARE, YOU KNOW, 10 YEAR, AT LEAST 10 YEARS AHEAD OF US.
UM, WELL, AUSTIN, I'M LOOKING AT SOME PEOPLE HERE AT AUSTIN ENERGY WHO KNOW A LOT ABOUT ENERGY EFFICIENCY AND WOULD PROBABLY BE HAPPY TO TALK TO YOU ABOUT AND SEE IF THERE'S ANY ANALOGIES THEY CAN DUST OFF AND, AND, AND TRANS TRANSFERABLE INSIGHTS AND OPPORTUNITIES THAT COULD HELP YOU WITH, WITH THE STUFF YOU'RE TACKLING.
OTHER QUESTIONS OR COMMENTS? I HAVE ONE.
I, UM, VERY EXCITED ABOUT THE, THE EXPANSION OF, UH, RECLAIMED WATER.
UM, UH, I LIVE IN WINDSOR PARK AND WE'VE HAD THAT RE RECLAIMED WATER TOWER ON 51ST STREET NOW FOR A REALLY LONG TIME.
AND SO WE'VE BEEN VERY AWARE OF ITS AVAILABILITY.
I'M CURIOUS, UM, ON, ON A NEIGHBORHOOD NOTE, WE'VE IDENTIFIED A PARK THAT'S NOT BEEN DEVELOPED AT ALL AND WE WANNA PLANT A BUNCH OF TREES AND THINGS OUT THERE, AND WE'RE TRYING TO DETERMINE HOW, IF THERE'S ANY ACCESS TO RECLAIMED WATER NEAR THAT, THAT LOCATION, WHERE DO WE GO IN THE CITY TO FIND THAT OUT? YEAH, YOU WOULD COME, YOU WOULD COME TO THE WATER UTILITY AND THERE'S AN INITIAL KIND OF, UH, SERVICE ASSESSMENT, UH, KIND OF APPLICATION THAT WE HAVE THAT KIND OF GIVES YOU A PICTURE OF LIKE HOW CLOSE IS THE SYSTEM.
AND THEN, YOU KNOW, IT GIVES YOU KIND OF LIKE A GENERAL, GENERAL, UM, KIND OF HOW, HOW, HOW CLOSE ARE YOU, UH, IF YOU WANNA MOVE BEYOND THAT INTO LIKE FIGURING OUT, UM, WHAT KIND OF INFRASTRUCTURE WOULD BE NEEDED TO GET TO YOUR PROJECT, YOU PROBABLY THEN WOULD HIRE AN ENGINEER TO DO THAT ASSESSMENT FOR YOU.
BUT INITIALLY WE CAN GIVE YOU A, YOU KNOW, A, A PRETTY, YOU KNOW, HIGH LEVEL PICTURE OF LIKE, HOW, HOW CLOSE ARE YOU TO THE SYSTEM.
AND, UM, YOU SAID THAT AND JUST CONTACT THE UTILITY DIRECTLY AND MM-HMM
OKAY, COMMISSIONER SILVERSTEIN, ONE, ONE ADDITIONAL QUESTION THAT SORT OF BRIDGES BETWEEN YOUR REPORT ON AN AND AND THE INCENTIVES AND THE RESOLUTION ON THE PILOT INCENTIVE PROGRAM.
WHEN WE TALK ABOUT THE INCENTIVE TOTAL IN THIS CASE, YOU'RE GONNA BE ASKING FOR $4 MILLION OR YOU ARE ASKING FOR $4 MILLION AND YOU TALKED ABOUT INDIVIDUAL, OH, THERE YOU ARE.
UM, THE, WHEN YOU TALKED ABOUT INDIVIDUAL INCENTIVES, DO YOU HAVE THEM IN SPECIFIC BUCKETS OR IS THE, THE INCENTIVE TOTAL, UH, TRANSFERABLE OR USABLE FOR ANY KIND OF IN INCENTIVE WITHIN THE ONSITE WATER RE WITHIN THE WATER REUSE OR POTABLE WATER OFFSET PROGRAM? OH, THERE'S SPECIFIC, YEAH, THEY, THEY BELONG IN SPECIFIC BUCKETS AND, UH, I DON'T, KEVIN KLUGE WE NORMALLY REPORT, I THINK WE JUST DIDN'T INCLUDE ANY INCENTIVES THAT WERE AWARDED THIS QUARTER 'CAUSE THERE WERE NONE.
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BUT ANYTIME WE DO AWARD, UM, INCENTIVES, WE WILL REPORT IN THAT QUARTERLY MANAGEMENT STRATEGY REPORT.WHAT WAS THE INCENTIVE FOR WHAT, HOW MUCH WATER DID IT SAY? I I, AND WHAT IS, WHAT IS, I'M NOT, I'M SORRY.
I'M NOT TRYING TO ASK ABOUT INDIVIDUAL INCENTIVES SO MUCH AS TO SUGGEST THAT IF YOU'RE GROWING A PROGRAM AND YOU, YOU, OUR PEOPLE ARE BRINGING IN DIFFERENT KINDS OF PROJECTS, YOU PROBABLY DON'T WANT TO LIMIT, YOU CAN ONLY USE THIS MUCH MONEY FOR MAIN EXTENSION OR THIS MUCH MONEY FOR REPLACEMENTS, OR THIS MUCH MONEY FOR THAT KIND OF INCENTIVE, YOU PROBABLY WANT AS MUCH FLEXIBILITY AS YOU CAN WITHIN THE TOTAL INCENTIVE POT TO BE ABLE TO BE MOST RESPONSIVE TO WHATEVER APPLICATIONS YOU GET.
NOW, MAYBE YOU'RE ALREADY DOING THAT AND I JUST ASKED THE QUESTION POORLY AND, AND NO, I, YEAH, I MISUNDERSTOOD YOU.
I I, I SEE WHAT YOU'RE SAYING NOW.
YEAH, SO WE'RE, WE'RE JUST REPORTING WHAT HAS BEEN BUDGETED FOR.
WE DO HAVE THE ABILITY TO, UM, INCREASE THAT OR GO BEYOND THAT IF WE HAVE NEED.
UM, YOU KNOW, WE DON'T, WE HAVEN'T ANTICIPATED, UH, A NEED BEYOND THAT, BUT WE DO, WE DO HAVE FLEXIBILITY, UH, WITHIN OUR OVERALL BUDGET TO, UH, INCREASE THAT IF NEEDED.
UH, HEY, UH, I WAS JUST CURIOUS IF YOU COULD TALK A LITTLE BIT MORE ABOUT THE, UM, THE WATER MINING PROJECT.
IS THAT SOMETHING LIKE, WAS THERE, THAT'S NOT PART OF THE PURPLE PIPE INCENTIVE, RIGHT? IS THAT LIKE SOMETHING THAT AUSTIN WATER PARTNERED WITH UT ON? OR, AND LIKE, ARE THERE, IS THERE OPPORTUNITY, LIKE IF THAT'S SUCCESSFUL, IS THERE OPPORTUNITY TO LIKE MANDATE THAT AT OTHER, I MEAN THERE'S PROBABLY LIMITED CAMPUSES THE SIZE OF APPLE OR UT, BUT YOU KNOW, LIKE IS THAT A THING THAT YOU GUYS COULD REQUIRE, LIKE NEW DEVELOPMENTS HAVE TO DO THIS LEVEL? 'CAUSE IT SEEMS LIKE A DEEPER THING THAN THE MM-HMM
UM, AND THE FIRST IS, SO YEAH, IT'S DEFINITELY SEPARATE GOAL INCENTIVES AND THEY HAVEN'T APPLIED FOR ANY GO PURPLE INCENTIVES FOR THAT PROJECT.
UH, WHAT'S UNIQUE ABOUT THAT PROJECT IS THAT THEY, UM, HAVE, THERE IS A, THERE ARE COMPANIES OUT THERE THAT ARE, YOU KNOW, THIRD PARTY, THEY'RE CALLED DESIGN BUILD OPERATORS OF THESE WASTEWATER MINING PROJECTS SPECIFICALLY.
AND THEY HAVE FIGURED OUT A PARTICULAR BUSINESS MODEL THAT THEY MARKET TO UNIVERSITIES, LARGE TECH CAMPUSES, UM, AND THEY FIGURED OUT THE FUNDING, UH, IT'S, IT'S CALLED LIKE A WATER PURCHASE AGREEMENT.
SO OSTENSIBLY THERE'S NO UPFRONT COST TO THE, UH, YOU KNOW, THE USER AND, UH, THEY, THE WAY THAT THE COMPANY MAKES THEIR MONEY BACK IS BY SELLING THE, YOU KNOW, SELLING UT APPLE WATER, UM, AT A, A BETTER RATE THAN THEY HAVE TO PAY FOR BOTH POTABLE AND RECLAIMED WATER.
SO THEY'VE SORT OF FIGURED THAT OUT.
IT'S A PRIVATE THING AND WE, WE PARTNER WITH THESE PROJECTS BECAUSE THEY NEED OUR WASTEWATER, UM, TO MAKE THEM WORK.
UH, BUT WE'RE NOT SUPER PRIVY TO LIKE THE FINANCIAL ASPECT OF IT.
AND FROM WHAT WE UNDERSTAND, YOU, YOU DO NEED TO BE LIKE A REALLY LARGE, UH, KIND OF CAMPUS.
THERE HAS TO BE LIKE A VOLUMETRIC THRESHOLD AND YOU HAVE TO HAVE LIKE A, THE SOURCE HAS TO BE REALLY CLOSE TO THE NEED.
AND SO, UM, IT, IT, IT, I THINK IT WOULD BE HARD TO REQUIRE, UM, ANY INDIVIDUAL KIND OF PROJECT DO THIS BECAUSE IT'S SO SITE SPECIFIC.
BUT AS WE'RE LOOKING TOWARDS, UM, YOU KNOW, FUTURE REGULATIONS AND CODE REQUIREMENTS, UM, YOU KNOW, ESPECIALLY RELATED TO ONSITE REUSE IS THIS, UM, MAYBE THERE'S A CODE REQUIREMENT FOR A LARGE INDUSTRIAL CAMPUS TO HAVE A HIGHER PERCENTAGE OF WATER OFFSET, AND THIS COULD BE ONE OF THE OPTIONS THAT THEY CONSIDER OR, YOU KNOW, COLLECT MORE STORM WATER OR SOMETHING LIKE THAT.
UM, SO I THINK IT IS, YEAH, IT'S, IT, IT IS AN OPPORTUNITY, BUT IT IS KIND OF SITE SPECIFIC.
AND SO, UM, WE DEFINITELY ARE LIKE, YOU KNOW, THESE ARE, THEY'RE VERY FEW OF THESE IN THE COUNTRY TOO, AND SO WE'RE JUST GETTING EXPERIENCE WITH THEM NOW, BUT WE WILL, YOU KNOW, KIND OF BE MONITORING, UM, HOW APPLICABLE ARE, ARE THESE LIKE PROJECTS TO, UM, EVERY CUSTOMER.
AND THEN ALSO DO WE NEED TO REQUIRE SOMETHING LIKE THIS IF THE, THERE'S A MARKET FOR IT AND IT'S ALREADY, YOU KNOW, LIKE WE DIDN'T REQUIRE THESE PROJECTS AND THEY KIND OF CAME TO US.
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HAVE BEEN SUCCESSFUL, AT LEAST, YOU KNOW, GETTING THROUGH THE APPROVAL PROCESS.ANY OTHER QUESTIONS ON THIS TOPIC? TOPIC? OKAY.
THANK YOU SO MUCH FOR THAT, UH, PRESENTATION.
AND, UM, THIS WILL LEAD US RIGHT INTO, UH, THE NEXT ITEM
[4. Recommend approval authorizing a resolution authorizing Austin Water to continue the GoPurple pilot incentive program and issue incentives on a pilot basis during Fiscal Year 2026-2027 for alternative onsite water reuse systems and reclaimed water connections for new commercial, mixed use and multi-family developments in the total aggregate amount of $4,000,000, not to exceed $1,500,000 per project for affordable housing projects exempt from the GoPurple reuse requirements and not to exceed $500,000 per project for all other projects. Funding in the amount of $4,000,000 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Water.]
ON OUR AGENDA, WHICH IS, UH, AN ACTION ITEM TO RECOMMEND, UH, AUTHORIZING, UM, AUSTIN WATER TO CONTINUE GO PURPLE.PILOT INCENTIVE, UM, IS THERE IS AN RCA IN THE BACKUP, UM, IT WAS MENTIONED THAT IT WAS, UH, $4 MILLION AND THIS IS FOR, UM, NEW COMMERCIAL MIXED USE MULTIFAMILY.
IS THERE SOMEONE, DO, DO YOU WANT TO SPEAK, IS THERE SOMEONE TO SPEAK TO THIS OR SHOULD I JUST READ IT? OKAY, CATHERINE, CERTAINLY AVAILABLE TO QUESTION.
SO THE RCA IS IN THE PACKET AND, UH, THE ACTION IS TO, UM, AUTHORIZE AN, UH, CONTINUATION WITH $4 MILLION.
AND THIS IS FOR NEW COMMERCIAL MIXED USE IN MULTIFAMILY DEVELOPMENTS.
UM, NOT TO EXCEED $1.5 MILLION PER PROJECT FOR AFFORDABLE HOUSING PROJECTS THAT ARE EXEMPT FROM THE GO PURPLE REUSE REQUIREMENTS AND NOT TO EXCEED 500,000 PER PROJECT FOR ALL OTHER PROJECTS.
UM, THE FUNDING IS AVAILABLE, UH, IN THE FISCAL 26 27 OPERATING BUDGET.
SO IF THERE ARE QUESTIONS ON THAT, UH, YES, UH, VICE CHAIR ROBBINS AND THEN COMMISSIONER COOK.
AM I UNDERSTANDING I'VE ASKED THIS QUESTION TWO SEPARATE TIMES IN TWO SEPARATE YEARS.
UH, THE $500,000 INCENTIVE, UH, THIS IS FOR PEOPLE THAT ARE ALREADY REQUIRED TO HOOK UP.
SOME OF THE, SOME OF THE INCENTIVES, THE RECLAIM MAIN EXTENSION REBATE THAT PAYS FOR A PORTION OF THE COST TO INSTALL THE MAIN, UM, AND THEN THE REC OR THE EXPEDITED BUILDING PLAN REBATE GOES TO THESE PROJECTS IF THEY CHOOSE TO GO THROUGH THE EXPEDITED BUILDING PLAN REVIEW PROCESS.
THE, AND THEN, YEAH, SO THOSE ARE THE, AND THEN THERE'S THE CO THE CODE, THE, YOU KNOW, THE STATE LAW NOW THAT IS LIKE WE HAVE TO GIVE IMPACT FEE CREDITS, REDUCED IMPACT CONNECTION FEES TO, UM, PROJECTS THAT ARE IMPLEMENTING WATER CONSERVATION AND REUSE.
IS THERE A SPECIFIC AMOUNT THAT YOU ARE REQUIRED TO REDUCE HOOKUPS WITHIN THE, THIS, THE LANGUAGE OF THE BILL, THERE WAS NOT A SPECIFIC REQUIREMENT.
UH, IT WAS JUST UTILITIES HAVE TO COME UP WITH A, A METHOD TO, UM, DISCOUNT THESE CONNECTION FEES AND THAT THE STATE LEGISLATURE WILL EVALUATE, UM, THESE, AND THEY KIND OF LEFT IT UP TO ALL THE UTILITIES TO IMPLEMENT IT IN A WAY THAT THEY COULD, AND THEY WILL BE REEVALUATING IT OVER TIME, IS MY UNDERSTANDING AND BE LOOKING AT WHAT UTILITIES ARE DOING.
I'M GONNA MAKE A STATEMENT NOW.
I AM, AND I HAVE SAID THIS TWO OTHER TIMES, AND IN COMPLETE AND TOTAL SUPPORT OF WHAT YOU ARE DOING, AND I AM IN SUPPORT OF THE PART OF THIS THAT DEALS WITH AFFORDABLE HOUSING.
IT CAUSES ME UNEASE TO CONTINUE TO APPROVE SOMETHING THAT, UH, THE, THE NEW CUSTOMERS ARE ALREADY REQUIRED TO DO.
UM, IN MY HUMBLE OPINION, AND YOU ALL ARE ASKING MY HUMBLE OPINION,
UH, COMMISSIONER COOK, UM, YOU MAY HAVE SAID IT IN A PREVIOUS, LIKE THE LAST TIME YOU WERE HERE, BUT, UM, OR EVEN EARLIER AND I JUST MISSED IT.
IS THE, THE APPLE PROJECT THAT MADE THAT LIKE PRODUCED 50 MILLION OR 60 MILLION
[01:00:01]
GALLONS A YEAR OF WATER SAVINGS, WAS THAT, HOW, HOW DID, DID WE GIVE THEM AN INCENTIVE TO DO THAT OR WAS THAT LIKE A MARKET THING? LIKE, UH, LIKE THE UT'S CAMPUS? YEAH, NO, GOOD QUESTION.THEY ACTUALLY DID, UH, APPLY FOR AND QUALIFY FOR $500,000.
UM, THEY WERE A VOLUNTARY PROJECT.
UM, I HAD ANOTHER, UH, THOUGHT THAT I WAS GONNA SAY, UM, BUT THEY, THE, THE REASON I'M NOT REPORTING IT HERE IS 'CAUSE THEY APPLIED THAT'S RIGHT.
THEY APPLIED FOR IT, YOU KNOW, MORE THAN TWO YEARS AGO.
SO THAT'S WHY IT'S NOT ON THE TABLE, BUT YES.
UM, SO IF WE WANT, LIKE IN THEORY, I DON'T KNOW HOW I FEEL ABOUT GIVING LIKE SOMEONE LIKE APPLE, LIKE I DON'T KNOW HOW MUCH THEY NEED $500,000 OF THE CITY'S MONEY, BUT IF, UM, IF, UM, YOU KNOW, THERE'S A SIMILAR PROJECT IN THE FUTURE THAT COULD SAVE 50 MILLION GALLONS OF WATER, DO YOU THINK A $500,000 INCENTIVE IS LIKE SUFFICIENT TO, TO GARNER THAT? NO, I MEAN, THE, WHAT WAS REPORTED TO US BY APPLE IS THAT THAT PROJECT COSTS $17 MILLION.
UM, SO, YOU KNOW, $500,000 IS JUST, YOU KNOW, A TINY PORTION OF THAT.
UM, WHILE IT CERTAINLY HELPED, I GUESS IN THIS INSTANCE IT WAS, UH, YOU KNOW, ONLY COVERING A SMALL PORTION OF THE, THE TOTAL COST TO IMPLEMENT THE PROJECT AND IS WHAT, YOU KNOW, THE, THE POTABLE SAVINGS ARE WELL BEYOND, BEYOND WHAT OUR CODE REQUIRED PROJECTS WOULD BE, UM, PROVIDING.
UM, I THINK THAT'S ALL I GOT RIGHT NOW, BUT THANK YOU.
UM, QUESTION ABOUT THE, JUST SORT OF THE NOMENCLATURE.
SO THIS IS A PILOT, UM, BUT IT'S, IT'S ENTERING ITS THIRD YEAR.
SO WHAT KINDS OF LEARNINGS AND CHANGES HAVE, HAVE YOU MADE OR ARE BEING CONSIDERED, UM, BASED ON THE, THE KNOWLEDGE THAT YOU'VE GOTTEN OVER THE LAST TWO YEARS OF, OF THIS PROGRAM TO WHERE IT CAN BE SOMETHING THAT'S, YOU KNOW, BEYOND A, BEYOND A PILOT PER SE? YEAH, GOOD QUESTION.
AND I THINK A LAW DEPARTMENT ALSO ASKS LIKE HOW LONG WE WOULD CALL IT A PILOT FOR
UH, IF WE'RE, OUR INTENT IS TO CONTINUE IT, YOU KNOW, FOR MULTIPLE YEARS, IS IT, WHEN IS IT NOT A, A PILOT? UM, IT'S, THAT'S SIMILAR TO THE QUESTION, UH, THAT WAS ASKED EARLIER.
WHERE IS, HOW, HOW LONG DOES THIS, YOU KNOW, AT WHAT POINT DO WE DECIDE WE DON'T NEED THESE ANYMORE BECAUSE THE MARKET HAS BEEN TRANSFORMED? UH, AND I DON'T KNOW THAT I HAVE AN ANSWER, UH, ON THAT.
BUT IT IS A GOOD QUESTION, SOMETHING TO THINK ABOUT.
DO YOU NEED A MOTION? UH, WELL PROBABLY YES.
I WAS GONNA SEE IF THERE ARE ANY OTHER COMMENTS OR QUESTIONS ON, ON THIS ITEM.
I THINK MAYBE LIKE PAUL, I THINK THE COMMISSIONER SILVERSTEIN'S COMMENT ABOUT THIS IS LIKE A MARKET TRANSFORMATION.
IT DOES SEEM LIKE THERE'S A SEMANTIC THING HERE WHERE IT'S LIKE, IF YOU THINK ABOUT IT AS LIKE, AUSTIN WATER IS HELPING SUBSIDIZE A MARKET TRANSFORMATION AS OPPOSED TO LIKE, THIS IS A PILOT PROGRAM TO LIKE TEST SOMETHING OUT, THEN MAYBE IT LIKE FEELS LIKE THE MONEY IS BEING BETTER SPENT THAN LIKE PAYING PEOPLE TO DO SOMETHING THAT THEY HAVE TO DO ALREADY.
I DON'T KNOW, PAUL, IF THAT HELPS YOU SLEEP AT NIGHT OR NOT
UH, THERE'S GOTTA BE A TIME WHEN THIS PHASE IS OVER.
I, I DON'T WANNA BE UNSUPPORTIVE, BUT I FEEL VERY UNEASY ABOUT CONTINUING TO DO THIS.
I IS THERE SOME WAY THAT WE CAN EITHER REWORD THIS OR ADD ON, UH, OUR RESERVATIONS TO COUNCIL ABOUT WHEN THIS PILOT ENDS THERE, THERE IS A, THE RCA WILL WOULD GO AS IS.
SO IT'S, IT'S AN UP OR DOWN VOTE ESSENTIALLY.
UM, I BELIEVE THERE'S A MECHANISM TO ADD A RESOLUTION OR ADD A FOR AMENDMENT OR SOMETHING LIKE, NO, I DON'T THINK WE CAN AMEND THE RCA, BUT IS THERE,
[01:05:01]
I DON'T KNOW.I'M LOOKING AT OUR STAFF LIAISON TO SEE IF THERE'S, UM, SOME SORT OF A MECHANISM THAT SAYS WE CAN, THE RMC ADDS THIS COMMENTARY ALONG WITH OUR VOTE ON THIS ITEM.
YEAH, YOU COULD ADD IT TO THE MINUTES.
LIKE WE CAN REFLECT THAT IN THE MINUTES, BUT IT'S NOT GO TO THE COUNCIL AS PART OF THE RCA.
THANK YOU FOR THAT CLARIFICATION.
YEAH, SO I THINK THE ANSWER IS, IS NO, IT'S AN, IT'S A STRICT UP OR DOWN VOTE.
I SEE CITY COUNCIL CHANGING THEIR, THEIR VOTES ALL THE TIME.
WE'RE NOT, WE CERTAINLY HAVE THE POWER TO MAKE A RECOMMENDATION.
IT WOULD HAVE, OF COURSE IT WOULD HAVE TO BE SEPARATE FROM THIS, BUT NO, WE DO INDEED HAVE THE OPTION, AND I THINK WE'VE DONE IT BEFORE.
UH, WE CAN MAKE A SEPARATE RECOMMENDATION ON THIS TOPIC.
UM, AS FOR THE ITEM THAT IS BEFORE US TONIGHT ON TONIGHT'S AGENDA, UH, WHICH IS ITEM NUMBER FOUR, WE WILL VOTE UP OR DOWN ON ITEM FOUR AS IT IS WRITTEN.
AND IF YOU WANT TO MAKE ANOTHER RECOMMENDATION FOR CONSIDERATION AT NEXT MONTH'S MEETING ON THIS TOPIC, UM, WE'RE CERTAINLY, YOU KNOW, THAT'S CERTAINLY WITHIN OUR, OUR PURVIEW TO DO.
UM, I'M GONNA TAKE ONE MORE COMMENT FROM, UH, FROM THE COMMISSIONERS AND THEN WE'VE GOTTA MOVE ON.
UM, BUT I WILL GO TO COMMISSIONER SILVERSTEIN AND THEN I SEE COMMISSIONER KENARD AND THEN WE'LL MOVE ON.
I, I APPRECIATE COMMISSIONER ROBBINS RESERVATIONS, BUT LET'S GO BACK TO THE POINT THAT WE ARE TWO YEARS INTO A PILOT SLASH MARKET TRANSFORMATION PROGRAM.
AND AS MS. JASINSKI MADE VERY CLEAR, THERE ARE STILL A LOT OF TRANSFORMATION TO BE MADE AND THERE'S A LOT OF CONTRACTORS AND OTHER BARRIERS OUT THERE IN THE MARKET TO IMPLEMENTING THIS.
SO WHILE I AM SYMPATHETIC WITH THE FACT THAT IF THEY'RE REQUIRED TO DO THIS, WE SHOULDN'T BE BRIBING THEM, BUT ON THE OTHER HAND, IT IS NOT CHEAP TO DO THIS THIS EARLY IN A MARKET TRANSFORMATION EFFORT.
THERE ARE STILL SIGNIFICANT COSTS THAT MAKE DOING THIS HARDER AND MORE EXPENSIVE, EVEN IF YOU ARE REQUIRED TO DO IT.
AND SO MY INCLINATION WOULD BE WE, AND THAT WAS PART OF WHY I WAS ASKING MS. HINKY, I'M GONNA GET YOUR NAME RIGHT, SOONER OR LATER, I APOLOGIZE FOR GARBLING IT.
UM, I, I THINK WE CONTINUE TO ASK FOR WHAT ARE THE BARRIERS AND HOW DO WE, HOW DO YOU, HOW DO WE SUPPORT YOU IN REDUCING THOSE BARRIERS? BUT AS LONG AS SUBSTANTIVE BARRIERS LIKE CONTRACTORS NOT KNOWING HOW TO ACT TO DO THIS EXIST, I THINK IT IS OUR OBLIGATION TO SUPPORT THESE NEW ADOPTION OF RELATIVELY NEW TECHNOLOGIES WITH SOME LEVEL OF INCENTIVE.
AND I FULLY SUPPORT THIS MAINTAINING THE INCENTIVE AS WRITTEN AND, AND ENCOURAGE AUSTIN WATER AND MS. HINKY IN PARTICULAR TO COME BACK TO US WITH REGULAR REPORTS ON WHAT'S WORKING, WHAT ISN'T WORKING, HOW ARE WE CHANGING OUR STRATEGY TO MAKE MARKET IMPLEMENTATION AND PICK UP MORE EFFECTIVE OR TO RETARGET OR REDEFINE THE NATURE OF THE INCENTIVES TO MAKE THEM MORE IMPACTFUL WHERE THEY'RE NEEDED MOST.
I'M GONNA GO TO COMMISSIONER KENARD.
YEAH, THAT THAT'D BE JUST A VERY QUICK CLARIFICATION AND APOLOGIES FOR, FOR BEING LATE.
I HAD A MEETING THAT OVERRUN, UM, THE ACTION ITEM WE'RE, WE'RE VOTING ON TONIGHT.
IS THAT JUST THE CONTINUED RECOMMENDATION TO, TO COUNCIL FOR, FOR APPROVING THIS, UH, THIS PROGRAM? THE RECOMMENDATION? I, I'M, YES.
THE RECOMME, I'M A LITTLE, I'M A LITTLE CONFUSED ABOUT WHAT THE, BUT PARTLY BASED ON, UM, UH, BY SARAH ROBBINS', UH, CONCERNS A LITTLE CONFUSED ABOUT WHAT IT IS THAT WE'RE GONNA BE MOVING TO.
IT IS WHAT THE ACTION ITEM TONIGHT IS THE RECOMMENDATION FOR COUNCIL ACTION, WHICH IS A RESOLUTION AUTHORIZING AUSTIN WATER TO CONTINUE THE GO PURPLE PILOT INCENTIVE PROGRAM AND ISSUE INCENTIVES IN THOSE AMOUNTS.
FOUR, $4 MILLION, ONE AND A HALF MILLION PER PROJECT FOR AFFORDABLE HOUSING.
UM, YEAH, THAT'S, THAT'S WHAT, OKAY.
AND THEN WE CAN, WE CAN THEN, NEXT TIME WE CAN THINK ABOUT A ISSUING SOME SORT OF, UH, RESERVATION REGARDING THE, HOW LONG IT CONTINUES AS A PILOT PROGRAM OR WHATEVER THE LANGUAGES THAT WE, WE DISCOVER FOR THE NEXT MEETING.
VICE CHAIR ROBBINS IN ONE MINUTE, PLEASE.
[01:10:01]
I'M QUITE SURE THAT IN OUR PAST WE HAVE INDEED, UH, ADDED OUR OPINIONS TO OUR CAS, AND I BELIEVE IT IS ARBITRARY THAT, UH, STAFF IS TELLING US WE CANNOT DO THIS.I'M QUITE CERTAIN THAT WE CAN, AND I WOULD LIKE TO ADD OUR COMMENTARY TO THIS.
LET'S MAKE SURE THAT WE REFLECT THAT IN THE MINUTES.
I JUST WANTED TO GET THE LANGUAGE RIGHT.
IS THAT NOT THE CASE? ARE THESE, THESE HOUSING PROJECTS THAT THEN THE AFFORDABLE HOUSING INCENTIVE, THE FIVE UP TO $500,000 IS GOING TOWARDS, THEY'RE NOT EXEMPT FROM THE REUSE REQUIREMENT? I, I THINK I CAN CLARIFY IF I MAY.
SO PROJECTS THAT ARE EXEMPT, UM, THEY HAVE A HIGHER, UM, FUNDING LEVEL FOR THE INCENTIVE PROGRAM.
THEY QUALIFY FOR UP TO $1.5 MILLION PER PROJECT.
PROJECTS THAT ARE NOT EXEMPT AND DO HAVE TO IMPLEMENT SOME SORT OF, UH, REUSE, THEIR MAXIMUM CAP IS $500,000 PER PROJECT.
SO THE EXEMPT IS NOT THE REQUIREMENT TO PUT IN PURPLE PIPE.
IT'S EXEMPT FROM REQUIREMENT EVERYTHING TO SPEND THE 1.5 OR WHAT, WHAT, WHAT IS THE EXEMPTION THAT WE'RE TALKING ABOUT? YEAH, SO THOSE, THOSE ARE THE PROJECTS THAT PROVIDE 50% ONSITE AFFORDABLE HOUSING.
THEY ARE EXEMPT FROM DOING ANY GO PURPLE CODE REQUIREMENTS, NO DUAL PLUMBING, NO CONNECTING OR RECLAIM, NO ONSITE REUSE.
IF THEY VOLUNTARILY CHOOSE TO DO WHAT THE CODE IS REQUIRING, THEY CAN QUALIFY FOR UP TO $1.5 MILLION TO DO THAT VOLUNTARILY.
AND THEN THE 500,000, I THINK IS WHAT YOU'RE ASKING, RIGHT, IS FOR PER PROJECT IS FOR ALL OTHER PROJECTS, INCLUDING THOSE THAT ARE NOT EXEMPT, RIGHT? MM-HMM
WHICH ARE STILL AFFORDABLE, LOW INCOME HOUSING PROJECTS, OR NOT NECESSARILY? NOT NECESSARILY.
I THINK I, YEAH, MAYBE IT'S JUST MY OWN PERSONAL CONFUSION.
UM, I'M GOING TO ASK FOR A MOTION TO MOVE.
WE HAVE A MOTION TO ADOPT THE RCA.
UM, ALL IN FAVOR OF THE RCA FOR GO PURPLE.
AND ANY ABSTENTION LOUDLY, PLEASE SHOW
SHOW VICE CHAIR ROBINS LOUDLY ABSTAINING.
THANK YOU VERY MUCH, UH, FOR THAT LIVELY DISCUSSION.
I THINK THAT WAS VERY, UH, PRODUCTIVE.
[5. Recommend approval authorizing issuance of non-contractual rebates for Austin Energy Customer Energy Solutions (CES) during Fiscal Year 2026-27 that exceed the FY2027 City Manager’s spending authority for multifamily, commercial, and residential programs that support solar and other distributed energy resources, energy efficiency, and beneficial electrification. Funding: $23,475,000 is available in the Operating Budget of Austin Energy.]
NEXT ITEM ON OUR AGENDA IS A RECOMMEND APPROVAL AUTHORIZING ISSUANCE OF NON-CONTRACTUAL REBATES FOR AUSTIN ENERGY CUSTOMER ENERGY SOLUTIONS, UM, DURING FISCAL YEAR 26 27 THAT EXCEED THE FISCAL YEAR 2027 CITY MANAGERS SPENDING AUTHORITY.AND THIS IS FOR, UH, MULTIFAMILY COMMERCIAL, RESIDENTIAL PROGRAMS THAT SUPPORT SOLAR AND OTHER DISTRIBUTED ENERGY RESOURCES, ENERGY EFFICIENCY AND BENEFICIAL ELECTRIFICATION.
ELECTRIFICATION FOR $23,475,000.
DO WE HAVE ANYONE WANTING TO SPEAK TO THAT OR DO WE WANNA HAVE QUESTIONS ON THIS? SEE MR. GENESEE APPROACHING THE PODIUM.
GOOD EVENING CHAIR AND RMC COMMISSIONERS.
RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS.
AND AS YOU SEE BEFORE YOU ON ITEM FIVE, UH, THIS IS AN RCA FOR WHAT WE CALL AGGREGATE AUTHORITY.
UM, AS YOU CAN READ IN THE BACKUP, IT STARTED IN, UH, SEPTEMBER 6TH, 2024 AND CONTINUED IN 2025 AND, UH, ALSO IN 2020, UH, SIX.
SO WHAT THIS, WHAT THIS DOES ESSENTIALLY IS STREAMLINE THE PROCESS FOR PAYING, UM, REBATES AND INCENTIVES TO CONTRACTORS
[01:15:01]
AND TO CUSTOMERS THAT WOULD EXCEED THE, UM, THE CITY MANAGER, UH, AUTHORITY, UH, FOR AN INDIVIDUAL PROJECT.UH, BEFORE WE HAD THIS PASSED, UH, SOMETIMES IT WOULD TAKE, THERE WOULD BE DELAYS IN GETTING CO CONTRACTORS AND CUSTOMERS PAID.
AND WE IMPLEMENTED THIS IN ORDER TO STREAMLINE THE PROCESS AND NOT HAVE TO TAKE INDIVIDUAL PROJECTS, UH, TO THE COMMISSIONS AND TO COUNCIL IN ORDER TO GET APPROVED.
ALL OF THE BACKUP AND INDIVIDUAL, UH, PROJECT DATA IS AVAILABLE AND REPORTED TO BOTH THE RMC AND THE EUC ON A MONTHLY BASIS.
SO YOU'RE NOT LOSING ANY OF THIS DATA, YOU'RE JUST HELPING STREAMLINE THE PROCESS IN ORDER TO GET CONTRACTORS AND CUSTOMERS PAID EXPEDITIOUSLY.
AND JUST AS ANOTHER CLARIFICATION, UM, THIS IS FOR THE BUDGET THAT'S ALREADY APPROVED, UM, AS PART OF THE $2 MILLION, UM, AUSTIN ENERGY BUDGET AS PART OF THE $6.6 BILLION, UH, CITY OF AUSTIN BUDGET.
SO, UH, WITH THAT, I WILL TAKE ANY QUESTIONS.
UM, QUESTION, WHAT IS THE, UH, CITY MANAGER'S SPENDING AUTHORITY? IS IT VARIOUS, DEPENDING ON THE TYPE OF PROJECT OR THE TYPE OF REBATE? NO, IT'S A FIXED, I THINK 74,000.
SO THIS WOULD BE FOR REBATES ABOVE AND NOW EXCEEDING THAT, EXCEEDING THAT.
SO, AND LAST YEAR WE DID SOLAR.
SO THIS YEAR, UM, AND YOU'LL, YOU'LL NOTE IT, IT'S ALWAYS RIGHT AFTER THE BUDGET HAS PASSED, BECAUSE THEN WE ACTUALLY TRIED TO TIE IT TO THE BUDGET PROCESS AND WE FOUND WE COULDN'T DO THAT.
SO IT'S AN, IT'S AN ACTION DELIBERATELY TIMED FOR RIGHT AFTER THE BUDGET HAS PASSED, COMING IN AND SAYING, HEY, CAN WE HAVE, UH, APPROVAL, UH, FOR THIS AGGREGATE AUTHORITY AND IN, IN ORDER TO STREAMLINE THE PAYMENT OF INCENTIVES TO CONTRACTORS AND CUSTOMERS.
OTHER QUESTIONS? COMMISSIONER SILVERSTEIN? UM, DID RAFAEL, DID YOU HAVE YOUR HAND UP? I SHOULD LET YOU GO FIRST.
I'VE BEEN, I'VE BEEN SORT OF, I GET HER EYESIGHT FIRST, BUT YOU, UH, SO THANK YOU.
UM, DOES THIS, WHAT'S A NON-CONTRACTUAL REBATE? MEAN? IT, IT JUST MEANS A REBATE THAT'S NOT COVERED SPECIFICALLY IN A CONTRACT.
IN OTHER WORDS, A CUSTOMER THAT JUST PARTICIPATES IN A PROGRAM AND BY VIRTUE OF PARTICIPATING IN THE PROGRAM, THEY DON'T HAVE TO SIGN A CONTRACT TO PARTICIPATE IN THE PROGRAM, BUT THEY'RE ELIGIBLE FOR AN INCENTIVE BASED ON THAT WOULD, OKAY.
LIKE A SOLAR CUSTOMER WHO USES A PARTICIPATING CONTRACTOR HAS THEIR SOLAR PROJECT COMPLETED, AND JUST BY USING A PARTICIPATING CONTRACTOR IN OUR PROGRAM IS ELIGIBLE FOR A REBATE IF THEY APPLY FOR THE REBATE.
IN SOME PAST MEETINGS, OUR AGENDA HAS HAD FOUR OR FIVE OR MORE SPECIFIC, WILL YOU APPROVE THIS REBATE APPLICATION ELEMENT, ITEM, WHATEVER YOU CALL IT.
DOES THIS COVER ALL OF THOSE OR DO WE STILL GET SOME OF THEM? NO, IF THEY WOULD EXCEED THE, YOU DON'T GET THEM WITH THE PASSAGE OF THIS BECAUSE THEY WOULD BE ON A REPORT THAT YOU WOULD GET SEPARATELY ALONG WITH YOUR MONTHLY REPORTS THAT GO TO THE RMC.
DOES THIS, WOULD THIS INCLUDE MONIES FOR THE SOLAR FOR ALL GRANT? UH, WELL, SOLAR FOR, YOU KNOW, UM, WHICH IS SIMPLY MEAN.
I GOT THE IMPRESSION THAT, THAT EPA HAD RELEASED THE CASH.
THE EPA HAS NOT NOT RELEASED THE CASH TO MY KNOWLEDGE.
SO LET'S TALK ABOUT MONTHLY REPORTS, BECAUSE WE GET A RENEWABLE ENERGY PROGRAMS REPORT EVERY MONTH, BUT WE'VE NEVER GOTTEN SQUAT ABOUT.
UM, AND, BUT THIS IS ONLY ABOUT AGGREGATES IN, IN TERMS OF WHAT ARE THE TOTAL NUMBERS WE NEVER SEE.
HERE ARE THE NUMBER OF, HERE ARE THE INDIVIDUAL ALL PROJECTS THAT WE APPROVED AND HERE'S HOW MUCH WE PAID OUT FOR EACH OF THEM.
SO TALKING ABOUT A MONTHLY REPORT IS, IS KIND OF A LOT OF HAND WAVING CONSIDERING HOW LITTLE DATA WE'RE GETTING IN THIS, IT WOULD BE A, AND THIS DOES NOT INCLUDE ANYTHING ON ENERGY EFFICIENCY, DEMAND RESPONSE OR BATTERIES, WHICH YOU IMPLY WOULD BE INCLUDED IN THIS.
SO I'M ASKING YOU EXPLICITLY A WILL WE, CAN WE GET AS A CONDITION, AS MY CONDITION FOR, FOR VOTING FOR THIS WOULD BE, WE GET MUCH MORE DETAILED REPORTS EVERY MONTH THAT INCLUDE A LIST OF EVERY, THAT INCLUDE A THOROUGH LIST OF EVERY ENERGY, RENEWABLE ENERGY
[01:20:01]
PROGRAM GRANT OR, OR REBATE OR WHATEVER YOU CALL IT WITH THE PROJECT WITH SUB RECIPIENT AND THE DOLLARS THAT THEY RECEIVE.AND I ALSO WANNA SEE THE SAME THING FOR ALL THE ENERGY EFFICIENCY.
I MEAN, IT DOESN'T HAVE TO BE THIS HOUSE GOT A HOME, HOME, HOME ENERGY AUDIT AND THIS HOUSE GOT A HEAT PUMP, BUT I'D SURE LIKE TO SEE MORE DETAIL ABOUT HOW MANY HEAT PUMPS DO WE GIVE OUT.
SO YOU'LL BE PLEASED TO KNOW AS PART OF THIS, MAYBE IT'S NOT AS CLEAR FOR ANY PROJECTS THAT EXCEED THE COUNCIL AUTHORITY.
YOU WOULD GET AN INDIVIDUAL, UH, AN ITEMIZED REPORT ON A PROJECT BY PROJECT BASIS OF THOSE PROJECTS.
RCA CAN, CAN WE GET AN AGGREGATE REPORT ON ENERGY EFFICIENCY, DEMAND RESPONSE AND BATTERY STORAGE? I, THAT IS AT LEAST THIS LEVEL OF DETAIL EVERY MONTH.
LET ME, LET ME SHARE THAT, UH, SEPARATELY, NOT TIED TO THIS ITEM AT ALL, BUT SEPARATELY WE ARE WORKING, UH, CURRENTLY USING THE REPORT YOU'RE GETTING FOR SOLAR AS A MODEL.
WE ARE WORKING TO GET ALL THE OTHER PARTS OF THE PORTFOLIO TO THAT SAME, UH, FORMAT, IF YOU WILL, AS A TEMPLATE.
SO WE'VE TAKEN THE SOLAR FORMAT AS A TEMPLATE AND WE'RE APPLYING IT TO THE OTHER PARTS OF THE PORTFOLIO.
SO YOU SHOULD SEE THAT IN THE NEXT, YOU KNOW, COUPLE OF MONTHS IF NOT SOONER.
WELL IF YOU OPEN THIS WITH YOU'LL BE PLEASED TO KNOW THAT, SO THANK YOU.
OKAY, OTHER QUESTIONS? COMMISSIONER SCHWARTZ, DID YOU HAVE A QUESTION? YES.
SO THIS DO, THIS WAS APPROVED THE LAST FIVE FISCAL YEARS, IS THAT CORRECT? YEAH, IT WAS APPROVED BRIT, YES.
IS ANYTHING DIFFERENT FROM WHAT IT WAS, UH, LAST TIME? THE, THE ONLY THING THAT'S, UH, DIFFERENT IS THE AMOUNT NOW.
IT'S REALLY ACROSS THE WHOLE PORTFOLIO AND IN THE PAST IT'S ONLY APPLIED TO CERTAIN PARTS OF THE PORTFOLIO.
SO WE'RE ACTUALLY TRYING TO BE, UH, MORE COMPREHENSIVE AND ALSO MORE, UM, STREAMLINING OF ALL REBATES AND INCENTIVES ACROSS THE PORTFOLIO.
SO WHAT, WHICH TYPES OF, I THINK, I THINK IT'S IN HERE, BUT I WAS JUST KIND OF HAVING TROUBLE FOLLOWING.
SO IT INCLUDES THE DEMAND RESPONSE OR DISTRIBUTED ENERGY RESOURCES, REBATES IN ADDITION TO YEAH.
THE SECOND PAGE OF THE RCA HAS A BREAKDOWN BY, UH, PARTS OF THE BUDGET, UH, FY 27 BUDGET, SO 6.7 MILLION FOR MULTIFAMILY AND COMMERCIAL PROGRAMS, 8.5 MILLION FOR RESIDENTIAL PROGRAMS AND 8.2 MILLION FOR SOLAR PROGRAMS. AND THEN THE SPECIFIC PROGRAMS ARE LISTED IN THE MIDDLE.
OTHER QUESTIONS ON THIS ITEM? I'LL ENTERTAIN A MOTION.
IS THERE A MOTION TO ADOPT THIS RCA? I'LL MOVE TO ADOPT THE RCA.
IS THERE A SECOND? I'LL SECOND.
UM, ALL IN FAVOR OF ADOPTING THE RCA.
ALL IN FAVOR OF ITEM FIVE APPROVAL AUTHORIZING ISSUANCE OF NON-CONTRACTUAL REBATES FOR AUSTIN ENERGY CUSTOMER ENERGY SOLUTIONS THAT EXCEED THE CITY MANAGER SPENDING AUTHORITY.
1, 2, 3, 4, 5, 6, 7 IN THE ROOM.
UM, THE, UH, THE ITEM IS ADOPTED.
ALRIGHT, MOVING ON TO ITEM NUMBER SIX.
OH, NO, WHERE, WHERE AM I? ITEM SIX? YES.
[6. Discussion and recommendation regarding a Resource Reliability Study. ]
ITEM NUMBER SIX, WHICH IS DISCUSSION AND RECOMMENDATION REGARDING A RESOURCE RELIABILITY STUDY.UM, AND IS THIS COMMISSIONER SILVERSTEIN, COMMISSIONER FARMER WHO'S GONNA TAKE THE LEAD ON THIS? YOU YOU INTRODUCE IT AND I'LL OFFER SOME ADDITIONAL COMMENTARY.
UM, SORRY, I THINK THIS MADE THE CUT TONIGHT, BUT, UM, YEAH, SO I GUESS THIS IS BASICALLY ASKING CITY COUNCIL TO, UH, DO A STUDY LOOKING AT ALTERNATIVE, UH, METHODS AND STRATEGIES AND TECHNOLOGIES FOR THE, UH, RELIABILITY RISK THAT WAS POSED.
UM, I GUESS THAT WAS EARLIER THIS YEAR, UM, WHEN COUNCIL VOTED.
I MEAN, THERE'S LIKE SOME LANGUAGE GYMNASTICS BECAUSE
[01:25:01]
WE'RE NOT SUPPOSED TO SAY NATURAL GAS OR PEAKER PLANT IN THIS COMMISSION.SO I THINK WE CAN JUST LIKE SAY THAT SO THAT WE CAN SAY THAT WE'RE NOT SAYING THAT.
UM, SO BASICALLY THIS'S JUST LIKE ASKING COUNSEL TO LOOK INTO ALTERNATIVES.
UM, I KNOW THERE IS SOME, UH, THERE WAS SOME BACK AND FORTH ABOUT, LIKE, THIS WAS DONE DURING THE RESOURCE GEN PLAN AND THERE WAS SOME, SOME OF THIS WAS DONE PRIOR TO THAT, BUT NONE OF THAT WAS MADE PUBLIC.
SO, AND THEN IT WAS, YOU KNOW, WE DIDN'T GET ANY OF THE DETAILS ON IT.
SO BASICALLY IT'S, AND I THINK THAT THE, UH, BACKUP THAT COMMISSIONER SILVERSTEIN HAS POSTED, UH, PAINTS A PRETTY CLEAR PICTURE THAT AT LEAST LIKE IN MY ESTIMATION AND THE ESTIMATION OF THIS, UH, STUDIES AND, UH, YOU KNOW, LEVELIZED COST OF ENERGY OPTIONS, THAT THERE ARE, UH, BETTER, CHEAPER, CLEANER WAYS THAT ARE MORE CONSISTENT WITH OUR, UM, CLIMATE EQUITY PLAN.
UM, I KNOW LIKE WE HAD, I THINK LAST MONTH OR THE MONTH BEFORE WE HAD A UPDATE ON THE RENEWABLE ENERGY, UH, OR, OR LIKE DECARBONIZATION OF OUR GEN, UH, WITHIN THE CITY.
AND IT SEEMS LIKE AUSTIN ENERGY IS, YOU KNOW, LIKE COMMENDABLY MAKING STRIDES IN THAT, BUT IS ALSO WAY BEHIND ON THEIR GOALS.
AND SO GIVEN THAT, COULD YOU SPEAK UP PLEASE? YES.
IS COULD THE MICROPHONE, I'M TOO FAR FROM THE MIC.
UM, BASICALLY JUST LIKE, IT SEEMS LIKE THERE ARE BETTER OPTIONS, SO WE WANT TO, UH, HAVE SOME HOMEWORK DONE ON THAT, OR SEE THE HOMEWORK THAT WAS ALREADY DONE ON THAT AND UNDERSTAND WHY IT IS THAT WE'RE SPENDING A BILLION DOLLARS ON A NEW GAS PLANT WHEN WE'RE ALREADY BEHIND ON OUR RENEWABLE ENERGY GOALS.
AND THERE ARE, UH, SEEMINGLY CHEAPER, MORE SUSTAINABLE OPTIONS THAT ARE MORE IN LINE WITH THE CITY AND UTILITIES MANDATE FOR DECARBONIZING.
UM, THE, MY MOTIVE IN CO-SPONSORING THIS WITH COMMISSIONER FARMER IS THAT WE KNOW THAT AUSTIN HAS SIGNIFICANT RESOURCE NEEDS GOING FORWARD.
WE KNOW THAT WE HAVE SIGNIFICANT RELIABILITY NEEDS, AND WE KNOW THAT A PORTFOLIO OF DIVERSE RESOURCES IS NEEDED TO MEET THEM.
WE ALSO KNOW THAT, UM, AUSTIN HAS SIGNIFICANT AFFORDABILITY CHALLENGES THAT ARE GETTING WORSE EVERY YEAR, EVERY DAY, UM, WITH RECENT WORLD EVENTS AND VERY CRITICALLY THE PRICES, THE, THE, AS AS WE KNOW THE PUBLIC AND, AND THE COMMISSIONS HAVE NOT RECEIVED ANY DETAILED INFORMATION ON THE COST OF THE GAS PLANT THAT THE, THE CITY COUNCIL HAS APPROVED TO, TO MEET THAT NEED.
THAT WAS JUSTIFIED IN THE 20 24 25 AUSTIN ENERGY RESOURCE PLAN.
THE DATA IN THAT RESOURCE PLAN WERE PREMISED ON OPTIMISTICALLY 2024 PRICES AT BEST.
THE WORLD HAS CHANGED SIGNIFICANTLY SINCE THEN.
THE GOAL OF THIS VERY BRIEF HANDOUT IS TO REMIND US THAT, THAT THE COST OF A GAS PEAKER HAVE INCREASED SIGNIFICANTLY, AS HAS THE WAIT TIME FOR BOTH TURBINE DELIVERY AND TRANSFORMERS, WHILE UTILITY SCALE SOLAR, SOLAR AND STORAGE AND STANDALONE STORAGE ARE RELATIVELY FLAT OR HAVE GONE DOWN IN THAT PERIOD.
AND, AND SO, AND WE KNOW THAT ENERGY EFFICIENCY AND DEMAND RESPONSE ARE EQUALLY VALID AND, AND FRANKLY, LOWER COST RESOURCES THAT MATERIALLY IMPROVE RESILIENCE AND AFFORDABILITY AND EQUITY.
SO THIS IS NOT INTENDED TO TRASH A GAS PLANT.
IT IS INTENDED TO SAY THE CONDITIONS AND AND FINANCIAL ASSUMPTIONS ON WHICH THE GAS PLANT ACQUISITION WAS BASED HAVE MATERIALLY CHANGED IN THE LAST TWO YEARS.
AND IT IS TIME TO DO AN INDEPENDENT REASSESSMENT BASED ON THE SIGNIFICANT CHANGES IN COST AND, AND RESOURCE DELIVERY CAPABILITIES TO MAKE SURE THAT AUSTIN, THIS 400 MEGAWATTS IS NOT THE LAST 400 MEGAWATTS WE'RE GONNA NEED.
IT'S GONNA KEEP GOING UP EVERY YEAR.
THE TIMING OF ALL OF THESE RESOURCE AND RELIABILITY AND RESILIENCE CHALLENGES ARE GOING TO CHANGE.
AND WE NEED THE MAXIMUM FLEXIBILITY AND CAPABILITY AND DIVERSITY OF RESOURCES TO BE ABLE TO SERVE THOSE RELIABILITY NEEDS EFFECTIVELY.
SO WHAT WE ARE DOING WITH THIS
[01:30:01]
IS WITH RESOLUTION IS ASKING THE COUNCIL TO APPROVE AND DIRECT AUSTIN ENERGY TO HIRE AN INDEPENDENT CONSULTANT TO DO A QUICK REASSESSMENT OF WHAT ARE THE CURRENT COSTS OF DOING THIS AND GIVEN CURRENT CO COMPARATIVE COSTS AND PORTFOLIO CONSTRUCTION OPPORTUNITIES, DO WE HAVE ADDITIONAL OPTIONS FOR AUSTIN ENERGY.I'M NOT SAYING STOP THE GAS PLANT SOMETIMES I WANNA SAY THAT, BUT I AM SAYING IS WE NEED THIS CITY TO UNDERSTAND ALTERNATIVES AND, AND IN CASE SOMETHING ELSE, LIKE THE REAL WORLD AND TURBINE DELIVERY DATE DELAYS STOP THE GAS PLANT FOR US, WE NEED TO KNOW WHAT OUR ALTERNATIVES ARE AND HOW AN ALTERNATE PORTFOLIO CONSTRUCTION COULD SERVE OUR CITY AND OUR EQUITY AND AFFORDABILITY AND RESILIENCE AND DECARBONIZATION GOALS MORE EFFECTIVELY.
COMMENTS OR QUESTIONS FROM THE COMMISSION? UM, COMMISSIONER SCHWARTZ, SO QUICK QUESTION REALLY QUICK.
I THINK THE, THE FIRM THAT DID THE THIRD PARTY STUDY, I GUESS THAT WAS EARLY 24, 20 23 FOR AUSTIN ENERGY WHEN THEY WERE PREPARING THE GEN PLAN WAS CALLED ASCEND ANALYTICS.
IS THAT, I WAS JUST WONDERING IF YOU'RE WE'RE SORT OF ASKING THEM TO RERUN THE SIMULATION THAT THEY DID AND AE WAS RELYING ON WHEN THEY, WHEN WE WENT THROUGH THAT PROCESS.
IS THAT KIND OF WHAT WE'RE LOOKING AT? AND I GUESS NOT SPECIFICALLY THEM IN PARTICULAR, BUT I NOTICED HERE IT MENTIONS AN OUT-OF-STATE TECHNICAL CONSULTANT.
DO THEY FIT THAT OR WE ARE WE ASKING FOR A NEW ANALYSIS THAT DOESN'T, THAT'S LIKE A DIFFERENT DIMENSION? UM, YES.
COSTS HAVE CHANGE SO MARKEDLY THAT IT NEEDS TO BE, UM, IT NEEDS TO BE AN INDEPENDENT UP TO DATE THING AND, AND IT COULD BE THAT A CENTER OR YEL D I'M SORRY, COMMISSIONER, WOULD YOU LIKE TO TALK TO US COMMISSIONER GLASER ABOUT YOUR EXPERIENCE WITH THIS ANALYSIS? YES.
SO THE GROUP AT UT AUSTIN AND THE WEBER ENERGY GROUP DID A STUDY AS WELL.
UM, SO WE LIKE, PROBABLY I WOULDN'T BE INVOLVED, BUT THERE WOULD COULD BE OTHERS AT THE UNIVERSITY THAT COULD DO AN ASSESSMENT BASED ON CURRENT DATA.
UM, BUT KEEP IN MIND, PRICES ON MANY THINGS CAN CHANGE YEAH.
UM, AND I DON'T, I CAN'T KEEP TRACK OF ALL THE TARIFFS AND THINGS LIKE THAT FOR THE SOLAR PANELS AND SO, AND SO THERE COULD BE ISSUES THERE AS WELL.
BUT WE, YOU KNOW, THE UNIVERSITY, AN ACADEMIC STUDY CAN BE DONE AS WELL.
AND THIS IS NOT INTENDED TO BE A HIGH END HIGH DOLLAR SOUP TO NUTS TECHNICAL STUDY IN THE DEPTH THAT THE AUSTIN ENERGY G GENERATION PLAN WENT TO THAT HAD AS, AS WE SAW YEARS, LIKE A YEAR AND A HALF IN PREPARATION AND, AND A LOT OF MASSAGING AND CONSULTATION AND ANALYSIS AND REANALYSIS.
THIS IS IN MY MIND, JUST MEANT TO BE A, HEY, THINGS HAVE CHANGED A LOT, LET'S DO A QUICK REASSESSMENT TO SEE IF WE NEED TO BROADEN THE SPECTRUM OR IF WE NEED TO REOPEN THE STUDY FOR THE, THE GENERATION PLAN.
BECAUSE THINGS HAVE CHANGED SO MUCH THAT IT IS NO LONGER IN OUR BEST INTEREST AS A CITY AND AS A PUBLIC UTILITY TO DO THIS VERSUS, OKAY, THINGS HAVEN'T CHANGED THAT MUCH AND WE SHOULD, WE SHOULD STICK TO THE PLAN.
BUT MY GUESS IS LOOKING AT AFFORDABILITY ISSUES AND LOOKING AT HOW, HOW GAS TURBINE AND DELIVERY AVAILABILITY AND COST COSTS HAVE CHANGED AND GAS PRICES HAVE CHANGED.
I THINK PROBABLY, UM, I SUSPECT THAT, THAT EVEN A RELATIVELY CASUAL STUDY WOULD FIND THAT THERE IS NEED FOR, FOR SUMMARY REEXAMINATION.
AND AS I UNDERSTAND IT, THE, THE 5 75 WAS FROM TWO AND A HALF YEARS AGO, RIGHT? SO THE RELIABILITY RISK HOURS HAVE CHANGED A A LOT, I THINK.
AND THEY NEVER, UTILITY NEVER REDID THAT ANALYSIS.
IT DEPENDS ON HOW MANY DATA CENTERS YOU ASSUME AND WHETHER THEY'RE FLEXIBLE, CURTAIL, IT'S A WHOLE CONE OF UNKNOWN FEATURE.
BUT YEAH, THANK YOU FOR THE WORK ON THIS.
IT SEEMS LIKE WHEN, YOU KNOW, WHEN THE UTILITY WAS GOING THROUGH THE, THE PEAKER PLANT VOTE, IT SEEMED LIKE IT WAS REALLY SURPRISING THAT THEY HAD, THAT THERE HADN'T BEEN MORE ENGAGEMENT, I GUESS WITH A, A NON-NO ENERGY BODY JUST GIVEN.
NOT THAT IT WAS TWO YEARS THAT HAD PASSED, BUT GIVEN HOW
[01:35:01]
DRAMATICALLY ERCOT IN THE WHOLE GRID HAS SHIFTED THAT, THAT THAT HADN'T HAPPENED.SO THIS SEEMS LIKE A GREAT IDEA TO ME.
VICE CHAIR ROBBINS, I DON'T THINK THIS HAS BEEN MOVED IN SECONDED YET.
UH, IF, IF I'M, WE'RE ALREADY TALKING ABOUT IT, SO IT'S OKAY.
UH, I'D LIKE TO, UH, MOVE THAT THIS BE PASSED.
I WOULD ALSO SECOND, JUST BEFORE YOU CONTINUE, IS THERE A SECOND? YEAH, YEAH, YEAH.
UH, COMMISSIONER SILVERSTEIN, PLEASE GO AHEAD, PAUL.
UH, I GUESS I JUST WANTED TO, UH, MAKE A COUPLE QUICK POINTS.
ONE IS THAT, UH, THIS REALLY DOES NEED TO BE INDEPENDENT.
UM, AND I HAVE NOT CALLED EITHER THE FINANCIAL SERVICES DEPARTMENT OR THE CITY'S, UH, I KNOW THEY'VE CHANGED THEIR NAME, BUT THE CITY SUSTAINABILITY OFFICE, UH, TO ASK IF THEY WERE GOING TO BE, UH, A PART OF THE, UH, THE PANEL.
BUT I, UM, THE OFFICE OF CLIMATE ACTION AND RESILIENCE, EXCUSE ME.
I REALLY THINK THAT WE NEED TO FIGURE OUT A WAY TO, UH, MAKE THIS AN INDEPENDENT, UH, DECISION ON THIS CONSULTANT INDEPENDENT OF THE UTILITY.
UM, AND ALSO REGARDING THE, UM, THE COST THAT WAS ALLUDED TO A FEW, UH, SECONDS AGO.
UH, I'M GONNA HAZARD A GUESS THAT THAT'S NOT GONNA BE THE FINAL COST.
IT IS AN EDUCATED GUESS THAT WHAT THE REAL COST WILL BE IS WHAT IT WILL BE FIVE OR SEVEN YEARS FROM NOW.
THAT IT MAY NOT BE A, THE COST THAT WE ARE THINKING THAT IT IS NOW.
SO INSTEAD OF $2,500 A KILOWATT ESTIMATED, IT COULD, THAT COULD GO UP WITH INFLATION OR DEMAND FOR THE PRODUCT.
DON'T BE SURPRISED IF THAT DOES NOT HAPPEN.
COMMISSIONER SILVERSTEIN? UM, I, I'D LIKE TO OFFER A FRIENDLY AMENDMENT TO THE RESOLUTION.
AND ON PAGE TWO, THE TOP, BE IT FURTHER RESOLVED, I'D LIKE TO ADD ITEM SEVEN, ENERGY EFFICIENCY.
LOOK, MS. GOODWIN, ONLY TWO WORDS.
DO YOU, SO LIKE THIS, THE VERSION, LIKE YOU EDITED THE VERSION YEAH.
LIKE FULL BUT, BUT LIKE MORE COMPREHENSIVELY.
DO YOU, WHICH I HAVE LIKE QUEUED UP TO SEND TO MS. GOODWIN, DOES THAT COVER THAT? I, I AM MAKING THIS RECOMMENDATION ON THE, THIS FRIENDLY AMENDMENT ON THE FLY, BUT WOULD IT BE BETTER, LIKE YOU HAD ALREADY, WE HAD A BACK AND FORTH AND YOU HAD ALREADY LIKE A BUNCH.
THIS IS THE VERSION THAT I PRINTED FROM THE, THIS THAT'S IN THE PACKAGE.
AND I AM MODIFYING THE VERSION IN THE PACKAGE OKAY.
WITH A NUMBER AND TWO WORDS TO THE TOP, BE IT RESOLVED ON PAGE TWO OF THIS RESOLUTION.
I GUESS WHAT I'M ASKING IS LIKE, IT WAS NOT IN, IT WAS MY ERROR THAT IT WASN'T INCLUDED PREVIOUSLY AND IT SHOULD BE INCLUDED NOW.
SO THE, THE VERSION THAT'S IN OUR PACKET IS NOT THE VERSION THAT YOU SENT ME.
IT WAS THE PREVIOUS VERSION SO THAT YOUR EDITS DID NOT GET REFLECTED IN THE PACKET.
SO THE, SO I HAVE, I CAN FORWARD THIS TO THIS GOOD WAY, AND THEN WE CAN, IF WE'RE GONNA VOTE ON IT, THEN WE'RE GONNA HAVE TO READ IT INTO THE RECORD IN ITS ENTIRETY.
IF, IF THIS IS NOT THE VERSION THAT I EDITED, WE SHOULD, WE SHOULD PULL
[01:40:01]
IT DOWN AND DO IT NEXT WEEK, NEXT NEXT MONTH.THAT'S WHAT I WAS THINKING TO MAKE SURE THAT WE GET THE CORRECT VERSION BECAUSE I DID NOT REALIZE THAT I THOUGHT YOU HAD TAKEN EVERYTHING AND SENT IT.
I DIDN'T REALIZE THAT YOU HAD SENT THE ORIGINAL VERSION.
I SENT THE ORIGINAL VERSION BEFORE YOU SENT ME THAT.
SO, UM, I THINK IT'S STILL, UM, WORTHWHILE TO HAVE A DISCUSSION SURE.
TO CONTINUE THE DISCUSSION ON THIS.
AND THEN WE CAN, WE CAN RESUB WE CAN SUBMIT A MODIFIED VERSION MM-HMM
AND VOTE ON IT NEXT MONTH RATHER THAN VOTING ON IT THIS MONTH.
AND I, I HAVE, UM, A QUESTION I DO SEE COMMISSIONER KENARD, UM, BUT JUST REAL QUICK IS, UH, THE EITHER VERSION OF THIS RECOMMENDATION, UH, HAS IT BEEN SHARED WITH THE AUSTIN ENERGY, UH, DEPARTMENTS OR THE STAFF TO, FOR THEIR COMMENT AND INPUT ON IT? UM, I KNOW MS. EVERHART REACHED OUT ABOUT IT, UM, AND I DIDN'T GET BACK TO YOU ABOUT THAT, I APOLOGIZE.
UH, JUST THAT IT, LIKE THIS HAD BEEN DONE.
FOR THE RESOURCE MANAGEMENT OR THE RE YEAH.
AND THAT HAD BEEN TAKEN INTO CONSIDERATION WITH ALL OF THIS.
UM, THERE WERE JUST A, A FEW THINGS WHEN I, I WENT AND WATCHED THE PRESENTATION TO THE ELECTRIC UTILITY OVERSIGHT COMMITTEE ON THIS, AND THERE, THERE WERE THINGS THAT SEEMED TO BE KIND OF IN, UH, LIKE CONTRADICTORY BETWEEN THE, SOME OF THE, SOME OF THE FACTS OR SOME OF THE STATEMENTS IN THE RECOMMENDATION.
AND I JUST THINK THAT, UH, AS IT'S GOOD PRACTICE TO SHARE IT IN GOOD FAITH AND IN THE SPIRIT OF BEING COLLABORATIVE OF WE THINK THIS IS WHAT NEEDS TO HAPPEN.
WE, WE HEAR ALL THE ASSUMPTIONS THAT WE'RE WORKING ON, UH, UNDER, UM, DO YOU AGREE WITH THAT? IS THERE THINGS THAT ARE, YOU KNOW, MAYBE WE, MAYBE SOME OF THEM AREN'T CORRECT.
CAN WE GET TO A PLACE WHERE WE'RE KIND OF IN LINE WITH IT? NOT SAYING THAT, YOU KNOW, IT'S GONNA BE WHAT AUSTIN ENERGY SAYS, BUT, UM, I JUST LIKE TO HAVE, AS YOU KNOW, AS A MATTER OF, UM, TO HAVE, AS SHARING IT AND ASKING FOR FEEDBACK ON IT.
AND MAYBE THERE CAN BE A DIALOGUE OR Q AND A.
UM, BUT JUST SO THAT WE HAVE SORT OF ALL SIDES, UM, IN ORDER TO MAKE THE MOST INFORMED DECISION, AT LEAST THAT'S WHAT I LIKE TO DO FOR MY VOTE.
AND I THINK THAT'S THE INTENTION OF BRINGING IT FORTH, LIKE I BRINGING FORTH AS A DRAFT, LIKE TO, FOR DISCUSSION NOW, IS THE, THAT'S THE THOUGHT.
AND I THINK IT'S PERFECTLY, UM, REASONABLE TO, TO, YOU KNOW, REQUEST IN WRITING, REQUEST FEEDBACK IN WRITING THAT COULD HAPPEN IN BETWEEN THE MEETINGS OR REQUEST A BRIEFING OR, UM, SOME KIND OF A Q AND A, BUT JUST SO THAT WE, WE DO GET THEIR SORT OF PERSPECTIVE ON IT AND THEN WE CAN DECIDE WHAT WHAT MAKES MOST SENSE TO DO.
UH, COMMISSIONER KENARD, THANKS VERY MUCH.
THIS IS, UM, THIS IS AWESOME AND I THINK THIS WILL BE A REALLY USEFUL EXERCISE.
I JUST WANTED TO MAKE A COUPLE OF COMMENTS ABOUT, UM, SCOPE.
UH, AND I KNOW THERE'S SOME LANGUAGE IN THERE IN TERMS OF, UH, SORT OF ASPECTS THAT NEED TO BE COVERED AT A MINIMUM, AND THAT, THAT THAT'S AWESOME.
BUT I OFTEN WITH THESE CONSULTATION TASKS, THEY CAN EXPAND TO FILL THE AVAILABLE BUDGET OR WHATEVER IT HAPPENS TO BE, THE DELIMITING, UH, SORT OF CRITERIA.
AND I, I JUST WANT JUST TO NOTE THAT WE SHOULD ARRANGE THIS IN A WAY, WAY TO MAXIMIZE THE LIKELIHOOD OF IT ACTUALLY HAPPENING.
BECAUSE AT SOME LEVEL YOU COULD JUST, YOU COULD HAVE A, A REPORT THAT SAYS, WELL GUESS WHAT? GAS TURBINE PRICES HAVE HAVE DOUBLED IN THE LAST TWO YEARS.
THAT'S A REALLY IMPORTANT FIT.
THAT'S PROBABLY WHAT THE NUMBER WILL BE APPROXIMATELY.
UH, AND I CAN TELL YOU THAT FOR FREE RIGHT NOW.
UH, BUT YEAH, SO IT'S JUST THAT OBSERVATION ON, ON ON SCOPE AND, AND FEASIBILITY OF IT BEING SORT OF CONDUCTED IN A TIMELY MANNER AND ALL THE REST OF IT.
YEAH, SO I'M VERY SUPPORTIVE OF STUDIES.
SO, UM, I JUST WANNA MAKE ONE POINT ON GAS PEAKERS.
SO GAS PEAKERS IS MY UNDERSTANDING.
THEY'RE THERE FOR PEAK HOURS, SO THEY'RE NOT RUNNING VERY OFTEN.
THEY'RE THERE WHEN WE HAVE HIGH DEMAND TO FIX THE LOAD, UM, SITUATION THERE, WHICH MEANS, BECAUSE THEY'RE NOT GONNA RUN A LOT, THE DOLLAR PER MEGAWATT HOUR IS GOING TO BE HIGHER.
SO THAT'S WHY IT'S MORE EXPENSIVE THAN THE OTHER ONES.
FOR EXAMPLE, UTILITY SCALE SOLAR AND ALL THE REST ARE GONNA BE RUNNING MORE OFTEN.
SO THAT'S KIND OF WHERE THIS, UH, COST CHA UH, VARIABILITY IS COMING FROM.
SO JUST BE AWARE AND IT'S THERE TO SUPPORT US IN THE HOTTEST AFTERNOONS, UH, OF THE YEAR.
[01:45:01]
I WILL SAY ALSO, BASED ON OTHER THINGS, YOU KNOW, AUSTIN ENERGY DOES HAVE ALREADY ENERGY EFFICIENCY AND DEMAND RESPONSE PROGRAMS THAT THEY DO A GOOD JOB, I THINK, UM, GETTING OUT THERE IN THE PUBLIC.SO, UM, WE CAN DEFINITELY ALWAYS DO MORE.
UH, BUT JUST KEEP IN MIND THOSE ARE ALREADY THINGS THAT ARE HAPPENING ACTIVELY.
SO I'M JUST PUTTING ALL THAT OUT AND ALSO TO SAY I'M VERY SUPPORTIVE.
SO COMM YES, COMMISSIONER SILVERSTEIN, COMMISSIONER FARMER, AND I WILL GO BACK AND MAKE SURE THAT THESE CONSIDERATIONS AND MY PRIOR EDITS ARE INCORPORATED AND, AND ARE IN YOUR HANDS PROMPTLY BEFORE THE NEXT MEETING WHEN WE WILL VOTE ON IT.
UH, VICE CHAIR ROBBINS, UM, COMMISSIONER GLASER, UM, YOU WERE NOT AT OUR LAST MEETING WHEN WE WERE TALKING ABOUT, UH, ENERGY EFFICIENCY PROGRAMS. AND, UH, MR. GENESEE, UH, MADE A POINT THAT, WELL, I DON'T THINK I'M PARAPHRASING, BUT HE SAID, I'M NOT SURE WE CAN DO MUCH MORE WITH ENERGY EFFICIENCY BECAUSE WE'VE GOT ALL THE LOW HANGING FRUIT, UH, AT WHICH POINT SILVERSTEIN BUS INTO LAUGHTER AND ARGUED
AND YES, UH, BOTH, BOTH, UH, COMMISSIONER SILVERSTEIN AND MYSELF, UH, ARGUED, WELL, NO, THINGS HAVE CHANGED BECAUSE NOW THAT NEW POWER IS SO EXPENSIVE.
UH, AND, AND I MADE THE POINT, UH, I THINK A HAMSTER ON A TREADMILL WOULD BE MORE COST EFFECTIVE.
AND, UH, COMMISSIONER SILVERSTEIN PRACTICALLY FELL OUT OF HER CHAIR WITH LAUGHTER.
UH, THE POINT BEING THAT YES, THINGS REALLY HAVE CHANGED, UH, UM, AND WHILE YOU ARE CORRECT, THAT PEAK POWER THAT DOESN'T RUN MUCH IS GONNA COST MORE, IS GONNA COST WAY MORE THAN IT WOULD'VE THREE YEARS AGO.
ANY MORE DISCUSSION ON THIS ITEM FOR TONIGHT? NO.
YEAH, UNLESS ANYONE ELSE HAS ANY OTHER, YEAH, GO AHEAD.
YEAH, JUST, I KNOW, UH, ONE, ONE OR TWO OF THE REPORTS THAT WE'VE ASKED FOR, WE PUT A, UM, KIND OF PULLED OUT A THIN AIR DOLLAR AMOUNT OF WHAT, WHAT IT MIGHT COST SO THAT I GUESS THE CITY DEPARTMENT RECEIVING IT COULD HAVE SOME UNDERSTANDING.
I DON'T KNOW IF THAT'S REALISTIC HERE, BUT IF IT IS, MAYBE WE COULD CONSIDER IT.
WE, WE'LL TAKE A LOOK AT IT AND WE'LL CALL OUR, OUR, OUR NEW CONSULTANT FRIEND COMMISSIONER BLAZER FOR A SUGGESTION ON WHAT, AND I'LL CALL A COUPLE OF OTHER PEOPLE AND FIND OUT WHAT THIS KIND OF REPORT WOULD COST.
UM, I, I AM HOPEFUL THAT CONSULTANTS PRICES HAVEN'T INCREASED AS QUICKLY AS GAS TURBINE OR TRANSFORMER PRICES.
SO
THIS IS VERY HELPFUL CONVERSATION.
UM, SO HEARING NO FURTHER DISCUSSION ON THIS, WE'LL MOVE ON TO ITEM NUMBER SEVEN, UH, SEVEN AND EIGHT,
[Items 7 & 8]
I GUESS MAYBE FOR EXPEDIENCY, MAYBE WE CAN TAKE THOSE TOGETHER.PERHAPS I'LL TURN IT OVER TO COMMISSIONER SILVERSTEIN ON THE, UM, WORKING GROUPS.
THIS COLLEAGUES, THIS COMMISSION HAS AGREED TO SET UP, UM, AND PARTICIPATE IN TWO JOINT WORKING GROUPS WITH OUR FRIENDS AT THE EUC.
ONE OF THEM IS ON LOCAL STORAGE AND SOLAR PROCESSES FOR AT AUSTIN ENERGY AND CITY PERMITTING.
AND THE MEMBERS IN THE, THOSE OF YOU WHO HAVE SAID YOU WANNA BE PART OF THE LOCAL PROCESS GROUP INCLUDE COMMISSIONER LUKI, COMMISSIONER ROBBINS, COMMISSIONER SCHWARTZ, AND MYSELF.
WE HAVE A MAXIMUM OF FIVE THAT WE ARE ALLOWED TO HAVE BECAUSE OF QUORUM RULES.
SO IF ANYONE ELSE WANTS TO PARTICIPATE, SAY SO.
NOW, ONE PERSON, UM, WE ARE TALKING ABOUT YOU RECEIVED AN EMAIL FROM EUC COMMISSIONER BRADEN AND THAT THAT INCLUDED A PROPOSAL OF A, A DOODLE POLL AND THE, THE WORKING TIME FOR THAT NEXT MEETING, UM, COULD LIKELY BE THIS COMING MONDAY AT 11:00 AM AND, AND, UH, YOU WILL GET CONFIRMATION COMMISSIONER BRADEN HAS OFFERED TO
[01:50:01]
LEAD THIS GROUP.IN TERMS OF COORDINATION, IT WILL INCLUDE FOUR MEMBERS OF THE EUC FOUR FROM THE RMC AND SEVERAL STAKEHOLDERS FROM SOLAR AUSTIN, FROM FROM THE VARIOUS STAKEHOLDER AND INSTALLER GROUPS.
AND I THINK YOUR NEXT COMMUNICATION ON THIS WILL BE FROM COMMISSIONER BRADEN OF THE EUC.
AND THIS WILL MEET VIRTUALLY, UH, SO AS, AS WILL THE OTHER ONE.
THE SECOND GROUP IS THE LONG-TERM STORAGE GROUP.
AND THE LONG-TERM STORAGE GROUP WILL HAVE FOUR MEMBERS FROM THE EUC FIVE FROM THE RMC COMMISSIONER, LUKI SCHWARTZ, ME FARMER, AND COOK.
AND, UM, THERE WAS SOME CONFUSION I THINK BECAUSE WE DIDN'T, WE, THERE WERE TOO MANY EMAILS GOING ON.
IT LOOKED LIKE THEY WERE DUPLICATIVE IN TERMS OF TIMING.
SO I WILL, I HAVE, I HAVE OFFERED UNTIL SOMEONE HAS MORE TIME AND ENTHUSIASM THAN I, I WILL START WITH LEADING THIS, COORDINATING THIS GROUP.
AND IF SOMEBODY ELSE WANTS TO BUMP ME OUT OF THE WAY ONCE WE'RE GOING, THAT'S GREAT.
BUT I WILL BE SENDING OUT AN EMAIL IN THE TOMORROW, I HOPE WITH INFOR A PROPOSED, UM, DOODLE POLL FOR TIMING, A STARTER SET OF GOALS AND, UM, WORK PLAN FOR THE LONG-TERM STORAGE WORKING GROUP.
AND I HAVE ALSO PUT OUT A REQUEST TO, UM, AUSTIN ENERGY GENERAL MANAGER MARTIN, ASKING IF FOR COO OR WHATEVER HER TITLE IS, ASKING IF THERE IS ANYONE FROM STAFF WHOM SHE WOULD LIKE TO APPOINT TO JOIN US IN THIS.
BECAUSE, UM, I THINK THE MORE PEOPLE WHO CARE ABOUT THIS AND WANT TO PROCEED IN IT AND LEARN THE BETTER.
AND SO YOU WILL GET, UM, AN EMAIL FROM ME ON THAT AS WELL, AS WELL AS ONE FROM FROM COMMISSIONER BRADEN ON THE PROCESS GROUP.
AND WE WILL AND, AND AL'S EMAIL FOR THE LOCAL STOLLER AND STORAGE PROCESS WORKING GROUP WILL SIMILARLY INCLUDE A PROPOSED SET OF GOALS AND PROBLEM STATEMENT AND WORK PLAN.
AND, AND THE PURPOSE OF THE FIRST MEETING WILL BE TO FIX ALL OF THOSE THAT WE OFFER AS THE DRAFT, RATHER THAN WASTE ALL OUR TIME TRYING TO INVENT IT FROM SCRATCH.
ANY COMMENTS OR, OR VOLUNTEERS TO, TO PARTICIPATE IN THE, THANK YOU SO MUCH FOR PULLING THAT TOGETHER.
THESE ARE REALLY IMPORTANT, UM, THEMES AND I'M, I'M SO GLAD THAT THERE'S A DEDICATED AND CAPABLE GROUP, UM, COMMITTED TO IT.
UH, DO YOU THINK, OR WHEN DO YOU THINK, UH, EITHER OF THESE GROUPS WOULD HAVE, UM, KIND OF AN UPDATE FOR THE BROADER COMMISSION? THANK YOU FOR SAYING THAT.
'CAUSE I MEANT TO ADD THAT, UM, WE PROPOSE TO MEET ONCE A MONTH VIRTUALLY MM-HMM
AND WE PROPOSE TO HAVE THOSE BE TWO HOUR MEETINGS FOR, TO SORT OF MAXIMIZE EFFECTIVENESS AND THEN DO LOTS OF EMAIL EXCHANGES AND MAYBE A GOOGLE DOC OR TWO IN TO, TO, TO MOVE THINGS ALONG.
I AM HOPEFUL THAT WE CAN ANNOUNCE AT LEAST SOME PROGRESS IN THREE MONTHS AND, AND I'D LIKE TO BE SEEING ACTUAL WORK PRODUCTS OF SOME FORM WITHIN SIX.
THAT SCHEDULE PROPOSES TRUE FOR BOTH OF THOSE, THE ONCE A MONTH, TWO HOURS.
AND, AND, AND SO, UM, WHICH IS WHY ME SENDING OUT A FRESH DOODLE POLL IS IMPORTANT.
THE ONE THAT YOU ALREADY FILLED OUT FOR THE, THAT THAT I THINK EVERYBODY ASSUMED THAT THEY WERE FOR THE SAME GROUP.
UM, FOR LOCAL PRO SOLAR AND STORAGE PROCESS GROUP ACTUALLY WAS ONLY ASKING ABOUT ONE HOUR MEETING TIMES.
SO AL'S EMAIL TO YOU SHOULD PROBABLY CLARIFY, CAN YOU DO THIS FOR A TWO HOUR MEETING NEXT MONDAY AT 11 AND, AND IF YOU CAN'T, HE WILL SCRAMBLE AND REDO DOODLE.
ANYTHING ELSE ON THE WORKING GROUPS? WAS THERE, WERE YOU LOOKING FOR ONE MORE, UH, VOLUNTEER FOR THE SOLAR AND STORAGE? IF, IF YOU GUYS, IF SOMEBODY WANTS TO DO IT, I WOULD, IF I, I COULD SWITCH TEAMS, BUT I DON'T THINK I CAN DO TWO, UM, LIKE MORE.
IT'S ENJOY IF THERE'S MORE OF A NEED ON THAT ONE, YOU'RE IN.
OKAY, COMMISSIONER BRADEN, WE'LL BE THRILLED TO HAVE YOU.
[01:55:02]
GREAT.[9. Discussion regarding the status of the District Energy and Cooling. ]
IS, UH, DISCUSSION REGARDING STATUS OF DISTRICT ENERGY AND COOLING.THIS WAS REQUESTED BY COMMISSIONER SILVERSTEIN, MS. EVERHART, ANY NEWS? NOPE.
UM, IS, IS THERE, IS IS, IS AUSTIN ENERGY EVEN LIKE MAKING AN EFFORT TO BRING THIS TO AN END OR IS IT JUST GONE INTO THE DEEP FREEZE? UM, I BELIEVE OUR DEPUTY GENERAL MANAGER, LISA MARTIN, ANSWERED THAT QUESTION LAST TIME, BUT I DON'T REMEMBER THE ANSWER, SIR.
YEAH, SHE SAID IT WOULD BE END OF THE YEAR, END OF END OF THE YEAR FOR THE REPORT IS WHAT THEY'RE, THEY'RE AIMING FOR NOW IS, IS IT HELD UP ON THE CONSULTANT SIDE OR ON AUSTIN ENERGY SIDE? AND WE REMEMBER THAT WE ARE TALKING ABOUT THE REPORT AND NOT AUSTIN ENERGY'S DECISION WHAT TO DO WITH THE REPORT.
UH, SHE WAS ASKED THAT QUESTION THREE, THREE TIMES LAST MEETING, AND THE ANSWER WAS THEY HAD A LOT OF OTHER SHIFTING PRIORITIES AND THEY'RE HOPING TO GET THAT REPORT BY THE END OF THIS YEAR.
SO I DON'T THINK THERE'S GONNA BE ANOTHER UPDATE, UH, BEFORE THEN.
SO THAT'S KIND OF WHERE THAT IS.
UM, LET'S LEAVE IT ON THE AGENDA JUST IN CASE.
UH, I JUST WANNA MAKE A COUPLE POINTS ON THIS.
UM, THAT, UH, OTHER PRIORITIES IS NOT WHAT SHE TOLD US TO OUR FACES IN, UH, AT THE MAY MEETING AND, UH, OF LAST YEAR SHE TOLD US THAT IT'D BE READY IN OCTOBER.
AND THE OTHER, UH, POINT I WANNA MAKE, UH, THIS IS JUST, YOU KNOW, A FUN FACT FOR, UH, IF YOU'RE EVER ON JEOPARDY, IS THAT THE, UM, ACCORDING TO FIGURES THAT I RECEIVED FROM AUSTIN ENERGY IN 2025, THE DISTRICT CHILLING SYSTEM, UH, HAD A TOTAL VALUE OF ABOUT $239 MILLION.
SO THIS IS, WE'RE TALKING ABOUT A SUBSTANTIAL ASSET.
THAT'S THE POINT THAT I WANNA MAKE.
[FUTURE AGENDA ITEMS ]
THAT BRINGS US TO FUTURE AGENDA TOPICS.UM, WHAT DO WE HAVE MS. GOODWIN, UH, SO FAR FOR OUR OCTOBER MEETING? NOT A THING.
THE, BESIDES THE TWO ITEMS THAT ARE COMING BACK.
UM, ANOTHER ITEM I THINK I HAD REQUESTED WAS, UM, MR. GENESEE HAD OFFERED TO COME AND DO A BRIEFING AROUND THE CONVERSION OF ELECTRIC RESISTANCE HEATING AND YES.
INEFFICIENT ACS TO HEAT PUMPS IN MULTIFAMILY AND COMMERCIAL.
UM, SO IF WE COULD GET THAT BRIEFING IN OCTOBER, THAT WOULD BE AMAZING.
UM, I BELIEVE, UH, IT WAS ASKED TO DO A BRIEFING ON BASE POWER.
SOMEONE ASKED FOR A BASE POWER BRIEFING LAST TIME.
UM, SO THAT IS STILL SOMETHING THAT WE WOULD REQUEST.
AND THEN, UM, DAYTIME OF USE OF RATES, SORRY, I COULDN'T HEAR YOU.
UM, I KNOW THERE'S BEEN SOME PI THERE'S A PILOT OR A SMALL PROGRAM ON TIME OF USE AND IS BEEN A LOT OF INTEREST AROUND THAT IN TERMS ON THE KIND OF DE SORT OF DEMAND SIDE.
UM, AND, UH, I, I THINK IT WOULD BE VERY INSTRUCTIVE FOR THIS COMMISSION TO KNOW WHAT'S BEEN DONE IN THE PAST AND KIND OF WHAT THE, YOU KNOW, KIND OF SITUATION IS ON, OR THE THINKING IS, OR PERSPECTIVE ON TIME OF USE RATES.
COMMISSIONER OR VICE CHAIR, ROBBINS, UM, I WOULD LIKE TO PLACE, UH, CONTROL OF OUR AGENDA ON THE NEXT AGENDA.
UH, YOU, UM, CHAIR DAVIS, YOU HAD ASKED THAT WE NOT TAKE IT UP AT THIS MEETING BECAUSE THIS MEETING WAS SO BUSY.
I DID NOT ARGUE WITH YOU, BUT THIS IS A SERIOUS MATTER AND WE NEED TO DEAL WITH IT.
UH, AND WHAT HAPPENED EARLIER IN THIS MEETING
[02:00:02]
IS A GOOD EXAMPLE.UH, WE WERE TOLD THAT WE COULD NOT COMMENT ON AN RCA, WHICH PERSONALLY I DISAGREE WITH 'CAUSE I THINK WE'VE DONE IT BEFORE.
BUT EVEN IF I'M WRONG, THE FACT IS I WASN'T TOLD ABOUT, UH, THIS ITEM THAT I RECALL, UH, IN ADVANCE, IN ORDER TO WORD SUCH A, A SEPARATE, UH, COMMENT.
UH, MAYBE I'M NOT SAYING THIS RIGHT.
UH, IF, IF WE DON'T HAVE THE OPTION TO SPONTANEOUSLY OFFER A COMMENT TO COUNSEL, AND I BELIEVE WE DO, BUT IF I'M WRONG STILL, NO ONE ADVISED ME IN ADVANCE THAT THIS ITEM ON, UH, WATER WAS COMING UP SO I COULD NOT HAVE A SEPARATE ITEM WORDED FOR THIS MEETING.
THAT THIS IS ANOTHER PROBLEM WITH CONTROL OF OUR AGENDA.
OTHER, OTHER ITEMS FOR FUTURE AGENDA?
HEARING NONE, I'LL ENTERTAIN, I WILL ENTERTAIN A MOTION TO ADJOURN OR I CAN JUST ADJOURN.