Okay, back from recess and madam clerk can f you could call item 5. Motionordsering submitted to the voters [inaudible] renewable Green House Gas energy to provide information regarding leckric power and [inaudible] election to be held november three, 2015 this is for the November Ballot and called the Korean Energy right to know act. It does 2 things, sets a clear definition what we mean by clean energy consistent with state law and lets the public know how much electricity comes either pg and e or clean pow r3 4 f1er using clean, green renewable we are consistent with the Legal Definition in state law. The ballot misher will informerate payers how much of electricity is coming from Nuclear Power. When san franciscan choose their Energy Provider we can make a informed choice about where the electricity comes from. We know all most a quarter of pg and e lickticity comes from Nuclear Power plant. This shows pge and e is committed to Nuclear Power. Today we have a technical amendment to site code section 399. 30 that guvens San Franciscos electoral production. This makeatize clear San Francisco will comply with state law in how we describe electricity as clean, green renewable and Green House Gas free. We have staff presentations today from jason freed as well as the sfpuc clean power sf director Michael Himes and [inaudible] from the department of environment and [inaudible] is also here from the department of the environment. Why dont we go next to staff presentations unless the Committee Members have comments to say . Seeing none well go to mr. Freed. Mr. Freed if you talk about the ballot measure and the impact on clean power sf program and also how the pg and e measure put out by [inaudible] would impact clean power sf. Happy to do so. Jason freed extech officer. For the past 6 years and have helped to [inaudible] hap tee make comments today about the 2 measures or the one measure in front of you today as well as the measure in front of the voter ozthen ballot. First off one of the things i wanted to bring up is go solar sf is a clean Green Renewable Program by pretty much every definition you have out sthr. We have 3500 roof tops 11 mega watts occur because nof good fram. Under the ballot measure you have you can consider that a clean green program, g [inaudible] under the ibew measure the roof top solar isnt considered clean and green because [inaudible] do not fall under category 1 especially residential roof tops. Not through the fault of pge or the residential yurz but the meters are not of the grade and quality you need to get the category one certification restrictive in the measure but not restrictive in this measure. If cca takes over and run a go Solar Program it woulden be able to call it a clean green source. Some other things to keep in mind when dealing with energy, it is a complicated issue, that is what i learned over the last 6 years and had the staff who gave me a good education how to understand all these issues. Whether you get a example of the [inaudible] you haveyou need to make last mr minutes decisions. You shut down the Power Generation and replace it something else. You may need to go out and use a category 3 Renewable Energy credit in order to get that generation to be state compliant under renewable standards. [inaudible] all of a sudden we vashort period because of the emergency situation where we cant do that if you want to take a example of consumer information, if you go to the overhead, this is pge power. These resourceerize Green House Gas free and renewable. The nuclear large hide roand renewable is clumped in the definition of Green House Gas free or renewable and that is because what the state law allows. Nuclear and hide rowere not considered renewable by state standards. Lets say we take [inaudible] under the measure we would only be able to say we were 22 percent Green House Gas gree or renewable and cant take cred further the other 32 percent pge takes. Whaum a consumer perspective when you show a bill to them and what the ballot measure does is say you need to present things the same way pge does. We could present under the ballot measure to be voted on, we would present this same chart and say here is your choiceism here is our energy mix and that is determined. [inaudible] or you can have pge mix and dpro you get the same definitions and expressions of what is going on and it is a good way fwr consumers to understand what is going on. If you have something restrictive we may not be able to call our energy mix the same. Because of the restrictions in the ibew ballot measure so that is important to take into consideration when consumers make a choice is which choice do you they want. What is the impact be . You would end up a few more people choosing not to par tis pot because they get confused. They would stay with pge in realty based on everything we are looking to do is a greener mix and produce less green house emissions than pge provides. You would get people think they are being greenjure not and opt out of the program which impacts our ability to our buildout plan. The program is looking to have a light and dreep green program. We want to talk about it the same way pge is. The other part i wanted to add in here how would that benefit pge . More people that choose to opt out of our program it means they keep those customers so it benefits them by having the generational line items stay with them. Thank you one of the other things that potentially that i wanted to bring up another example how things can get confusing, in august of 2013 we were on the verge of trying to get a program laurched, it does want but we were working with a Energy Provider who was going to offer us a mix of energy that was 25 percent wind, 75 percent large hide ronot frauj hetch hetchy. If you use the state standsered that is 100 percent ghg free. Under the other ballot not in front of you today, the ibew one, you call that 25 percent ghg free assuming the wind came from category one Renewable Energy credit and that isnt a guarantee. They were talking about the fact we could have had 100 percent ghg makes and wouldnt be able to call it 100 percent ghg at that point. We wouldnt be able to call it renewable because the state doesnt allow large hydro renewable but call it ghg free like pge. Finally i want to get into thethere was a civil grand jury report that came out last week that talks about clean power sf is long last. It does very good discussions about unbundled and bundleed and what it means. I energy you to take a look at it. One of the recommendations is that the local officials including the mayor put the weight of the Office Behind the program. If we dont follow state standards and restrict to firmer stance we gonet r dont put clean power sf on full legs. I encourage you to follow what the civil grand jury and that is you put the full weight of the board behind this measure and support it and happy to answer questions if you have them. Okay, thank you. Seeing no question here from the committee well go on to mr. Himes. Good afternoon supervisors. Michael himes, San FranciscoPublic Utilities commission. Im just going to supplement actually the remarks that executive officer freed made. I thought his comments were spot on. Earlier today in response to request by the department of elections, our department submitted a letter addressing the potential impacts of the proposed Ballot Initiative regarding Renewable Energy. To highlight a couple points from that letter that sort is a addition to the points that mr. Freed made. First a observation about the potential impact of the measure is that it creates a new definition of renewable Green House Gas electricity that is inconsistent with state law. The proposed energy clean right act addresses the issue by tying the terms clean green to definitions in state law. Mr. Freed also referred to the issue around roof top solar and thought he captured that well. Additionally, the proposed initiative has the potential to increase cost to a cca program without necessarily providing additional environmental benefits. The issue here really is how narrow it defines clean green renewable Green House Gas free energy and can potentially restrict the pool of resources that a cca program may be able to purchase from and provide affordable competitive product to san franciscans. Finally, the proposed measure would increase Program Administrative cost by manitating notification requirements. Under state law the city already has to notify customers a minimum of 4 times of the programs terms and condition squz the opportunity to opt out of the program and this measure would add an additional notification requirement. We estimated the cost of that program to be about 135 thousand dollars. I think those are all the prepared remarks that i have. Im happy to answer any questions that you may have for me. Okay. Thank you and i dont see any questions. Mr. Rod riguez. After you can touch upon how clean power sf fits into had cities Climate Action plan. Chair avalos and supervisors [inaudible] department of environment. Thank you for the opportunity to share the departments comments about this measure today. First i would like to emphasize the importance of understanding sthra lot of clutter out in the market place when you think about going a supermarket or any store, there are many products that call them green. Departments bring residence and businesses should have accurate 2346rgz whether it is the cremical make chemical make upf cleaning products and accht information about power. Californias portfolio standard is the highest in the country mandating [inaudible] must be generated by eligible Renewable Resources by 2020. As we speak the California Legislature is debating senate bill 350 which this board and the mayor indicated support for and that among other things increase the port forelio from 33 to 50 percent by 2030. The department believes this is a important ingredient for San Francisco to reach as well as the state to reach its Green House GasEmission Reduction targets as stated in the past. One comments on the proposed measure that the department did review penl impacts. If the voters prove the ballot measure and we believe the cost for the department is very minimal in informing the public of the different mixes and happy to answer questions as well as my colleague [inaudible] is here with us. Thank you. Supervisor tang i have a question that can be answered by [inaudible] or puc. First ill say im a huge supporter of clean power sf and excited if we can launch this in the fall and think that both the Initiative Measure and ballot measure before us today are trying to achieve i think great goals which is inform our customers about where the true source of pow er is coming from. I think we all share the goal of providing 2 clee power the customers. One of the questions i have, i know go solar sf is sited as something that may not be included in the measure and the reference to category 3 for the general public, i know you reference california puc code 399. 16 so under sickz 3 of that porz thf code, what are some of the other categories that would fall under that . For example one of my concernicize potentially we can go outside california, we could obtain power that is potentially not clean and green so wonder if puc or [inaudible] can speak to that issue because i think is valid one the Initiative Measure was trying to address. Im happy to take a stab at that. So, under california state rules and the code that you cited the state created 3 sort of buckets or categories, we call buckets or proctcontunt categories. The first categories is a bundled Renewable Energy product. That means the purchases of the Renewable Energy acquired the energy with a Renewable Energy cred squt the underlying electricity prior to the generation of that electricity. It means the electricity was dlinch today the state of california. It doesnt mean the resource is located in the state, it could be located on the boarder, but under the law of category one resource has to deliver into state of california. Product content category 2 is also resource that could be out of state but by definition has to deliver energy into the state of california and it can be formed and shaped thmpt idea is you can buy a predictable amount of energy according to demand needs and delivered to the state of california. What is in the actual code it says firmed and shape, what does that mean . The idea is Renewable Resources are extremely variable. You cant dispatch them is the term we use in the electric industry to meet demand in real time. Specifically im referring to a subset of Renewable Energy but probably the most abundant and that is solar and wind. Those resources generate when the wind is blowing and sun is shining. We all use electricity at various times of the day and when we turn on the lights we expect it to boo on. Wind and solar may not generate when we need it. The idearetail electricity providers have to match the sources of energy to the demand as close as they can in real time. We do that by arranging the energy with the grid operator. The idea of firming and shape sg you produce a specific amountf Renewable Energy and that energy is delivered into the grid but you can using all the resources in the grid shape it . Into a profile that supports your consumers demand. The same amount of Renewable Energy is produced from that product as from the product content in category one product and the product conitant cat tent 3. Renewable yeents are merely documentation that a given amount of Renewable Energy is generated and delivered to the grid. Okay. So, then just going back to my question, for category 3 that is the only category where potentially we would go outside of the state unless it is on the boarder and delivered within california but that is the category where potentially we could purchase Renewable Energy credits . The category 3 are sort of the most liquid, they are the most easily traded. It doesnt have to be a out of state resource though. Bucket 3 category 3 recks are also produced in california. The idea is that when you buy a Renewable Energy credit you bought it separate from the underlying electricity. When i described category 1, by definition you have to buy the Renewable Energy credit with the lickticity. Product 3, that energy can be sold to a 3rd party and acquire the underlying wenewable Energy Credit attribute. It is a way to address the varability of renewable and originally intended to spur the market for Renewable Energy. In whati know we cant anticipate the future but in what situations would we want to utilize category 3 . Um, for Community Choice aggregation program, we are approaching resources today with a focus just on product content category 1 resources. Product conitant category 3 is really sort of a resource that would allows us to fill gaps. I think mr. Freed referred to emergency situations where we may a contract with a particular resource that for some reason goes off line but we were expecting and really needed the Renewable Energy to be produced to meet our overall content objectives. The bucket 3 resource provides flexibility in times where our product content category 1 resource isnt available and to fill in sort of the small percentages of Renewable Energy short falls that might occur because of a mismatch of supply and demand. Generally speaking, under state rules the state rps is structured to limit the number of unbundled racks, it is capped. Can you state for the record what that cap is . It is believe 15 percent of the rps requirement for the retail seller and think today that is in the range of 5 percent of the overall sales. Okay. 5 percent. And i fully understand if we had to use category 3 and if it is outside california it doesnt necessarily mean it is Unclean Energy and that there are situations where we may need to utilize that. I think my concern just stems from i think what sparked the measure in the first place or what i believe to be one of the underlying reasons for the Initiative Measure is make sure it is truly clean power and we are disclosing the right information to the customers. My last question is just what steps can puc take as we launch clean power sf just to guarantee that it is clean power and that potentially wree not utilizing certain categories where we purchase Renewable Energy credits that may not come from clean sources. Ya. Well, as i mentioned before we rin the process now of developing a request for offers for our initial power supply for clean power sf launch and that request for offers will only ask potential suppliers to deliver the bucket 1 category 1 resources to the city to supply its cca program. Under the program all resources that sell energy to resale seller have to be certified by the state and they also have to track the Renewable Energy credits they initiate with a state Accounting System called regius. All of the projects and energy we transact with for the cca program are tracked in regius and we can retire certificates and account for specific serial numbers generated. When i talk about certificates these are category one resources. Every bucket relies on Renewable Energy credits. That is the way that we are and all retail sellers verify they received what they need and we are also required to report that to the state so they can verify that we complied with the minimum state requirements. Okay, thank you. Thank you very much. So, we can open up the item for public comment. Any member of the public like to comment, please come forward. Good afternoon again supervisors [inaudible] eric burke representing San Francisco green party [inaudible] and also San Francisco clean energy advocates. So, specifically to what supervisor tang was just asking about, the keywe heard the details technically of what Renewable Energy credits are. The key with the measure being promoted by pge alleys is not whether renewable crediterize good or bad, the key is that ballot measure states that the sate city of San Francisco cant buy those credits