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          METROTV 60S, PLEASE. 
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IT. THIS MEETING IS BEING HELD PURSUANT TO CARRY 611826 AND COUNCIL RULE FIVE EIGHT READ IN 
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FULL. GOOD AFTERNOON EVERYBODY. THANK YOU FOR JOINING US TODAY FOR THE PARKS AND SUSTAINABILITY 
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COMMITTEE. I AM CHAIR KHALIL BATSHON. I'M JOINED HERE WITH MY VICE CHAIR, COUNCILWOMAN BETSY RUBY. I'M IN CHAMBERS. I HAVE COUNCILMAN JP LINENGER. I HAVE COUNCILWOMAN JOSIE RAYMOND. I HAVE COUNCILWOMAN CRYSTAL BASS. AND ALSO JOINING US TODAY IS COUNCILMAN ANDREW OWEN. WE HAVE THE OFFICE OF SUSTAINABILITY CLEAN ENERGY UPDATE WITH SAMATA. SO. OH, AND I'M SORRY, I DID NOT 
          [00:20:02]
RECOGNIZE MY APOLOGIES. COUNCILWOMAN MARILYN PARKER WHO IS JOINING US VIRTUALLY TODAY. 
          SO THANK YOU FOR BEING HERE, MARILYN. SAMARA, DO YOU HAVE A PRESENTATION FOR US? AWESOME. 
          THANK YOU. PLEASE EVERYBODY, JUST INTRODUCE YOUR NAME AND YOUR TITLE AND YOU CAN BEGIN. 
          GOOD AFTERNOON, COUNCIL MEMBERS. MY NAME IS SUMITA RAO, AND I SERVE AS THE EXECUTIVE DIRECTOR FOR THE MAYOR'S OFFICE OF SUSTAINABILITY. AND I'M JOINED TODAY BY MY COLLEAGUE, ZACH TYLER. I'LL LET YOU INTRODUCE YOURSELF, ZACH TYLER, I WORK AS THE ENERGY MANAGER FOR LOUISVILLE METRO GOVERNMENT WITH FACILITIES AND FLEET. THANK YOU FOR THE OPPORTUNITY TO PRESENT TODAY. OUR GOAL TODAY IS TO LAY OUT A ROADMAP FOR HOW WE'RE GOING TO ACHIEVE, OR HOW WE'RE HOPING THE BEST STRATEGY IS TO ACHIEVE OUR CLEAN ENERGY 100% CLEAN ELECTRICITY BY 2030. GOAL. 
          SO THE AGENDA TODAY IS TO QUICKLY REVIEW LOUISVILLE'S 100% CLEAN ENERGY RESOLUTION, WHICH IS THE IMPETUS FOR THIS WORK. NEXT, WE'D LIKE TO TALK ABOUT ALL OF THE DIFFERENT OPTIONS THAT WE'VE ASSESSED THAT WILL HELP US MAKE PROGRESS TOWARDS THIS GOAL, AS WELL AS A CURRENT STATUS OF WHERE WE WHERE WE SEE EACH OF THESE STRATEGIES BEING FEASIBLE AND APPLICABLE TO, TO OUR PATHWAY. AND THIRD, WE'RE GOING TO FINISH IT OFF WITH JUST A SUMMARY OF WHAT WE THINK IS PROBABLY THE MOST ACHIEVABLE AND VIABLE PATHWAY TOWARDS ACHIEVING THIS GOAL BY 2030. SO FIRST, TO START US OFF WITH LOUISVILLE'S 100% CLEAN ENERGY RESOLUTION IN 2021. METRO COUNCIL, WITH THE SUPPORT OF COMMUNITY MEMBERS, A LOT OF WHOM ARE PRESENT TODAY. I WANT TO JUST RECOGNIZE EVERYBODY HERE. METRO COUNCIL PASSED A RESOLUTION FOR 100% CLEAN ENERGY, AND THAT WAS A THREE PART RESOLUTION. THE FIRST GOAL WAS 100% CLEAN AND RENEWABLE ELECTRICITY FOR LOUISVILLE METRO GOVERNMENT OPERATIONS BY 2030. THE SECOND PART WAS 100% CLEAN ENERGY FOR LOUISVILLE METRO GOVERNMENT OPERATIONS BY 2035. AND THE DISTINCTION HERE IS THAT THE FIRST ONE IS FOCUSED ON OUR ELECTRICITY USE ACROSS LOUISVILLE METRO. THE SECOND ONE EXTENDS THAT TO ALSO INCLUDE HEATING AND COOLING AND TRANSPORTATION. AND THEN THE LAST GOAL IS 100% CLEAN ENERGY COMMUNITY WIDE BY 2040. SO THE GOAL FOR TODAY'S PRESENTATION IS TO KIND OF FOCUS ON THAT FIRST 2030 GOAL. BEFORE WE DIVE INTO THAT, JUST A QUICK EXPLANATION OF WHAT WE MEAN BY 100% CLEAN RENEWABLE ELECTRICITY. SO TYPICALLY CLEAN RENEWABLE ELECTRICITY MEANS THAT THE PRODUCTION OF THIS ELECTRICITY DOES NOT RESULT IN GREENHOUSE GAS EMISSIONS OR IS EMISSIONS NEUTRAL. THERE IS NO SIGNIFICANT CURRENT OR FUTURE THREAT TO LIFE IN THE NATURAL ENVIRONMENT. THAT THIS ENERGY SOURCE IS REPLENISHED ON A HUMAN TIME SCALE, AND SOME EXAMPLES OF ENERGY SOURCES ARE SOLAR, WIND, GEOTHERMAL, TIDAL, BIOMASS, AND HYDROPOWER. AND WHEN WE'RE TALKING ABOUT 100%, WHAT THAT MEANS IS THAT ALL OF THE ENERGY OR ELECTRICITY THAT WE WOULD BE USING IN ONE YEAR WOULD ESSENTIALLY BE GENERATED FROM CLEAN AND RENEWABLE SOURCES. SO NOW FOR A REVIEW OF ALL OF THE OPTIONS THAT WE HAVE TOWARDS MEETING THIS GOAL. IN 2021. SOON AFTER THAT RESOLUTION WAS PASSED, LOUISVILLE METRO GOVERNMENT COMMISSIONED A STUDY THROUGH THE NATIONAL RENEWABLE ENERGY LAB, WHICH IS ONE OF SEVERAL NATIONALLY FEDERALLY FUNDED NATIONAL LABORATORIES THAT ASSIST WITH CLEAN ENERGY GOALS. SO WE BASICALLY COMMISSIONED THEM TO EXPLORE ALL THE DIFFERENT OPTIONS THAT EXISTED FOR US TO MEET THIS GOA. 
          AT THE HIGHEST LEVEL, IT COMES DOWN TO A PRETTY SIMPLE DEMAND SUPPLY EQUATION. SO THIS IS GOING TO ULTIMATELY REQUIRE US REDUCING ENERGY DEMAND AS MUCH AS POSSIBLE, WHILE SIMULTANEOUSLY INCREASING CLEAN ENERGY SUPPLY. SO A SIMPLE EXAMPLE OF THIS WOULD BE IF WE WERE USING 100 UNITS OF ELECTRICITY IN A YEAR, WE WOULD NEED TO PRODUCE 100 UNITS OF CLEAN ELECTRICITY IN ORDER TO SAY THAT WE'VE ACHIEVED THIS GOAL. BUT IF WE WERE ABLE TO REDUCE THAT DEMAND AND USE 70 UNITS OF ELECTRICITY, WE WOULD ONLY NEED TO PRODUCE 70 UNITS OF CLEAN ELECTRICITY TO BE ABLE TO MEET OUR 100% GOAL. SO THE DEMAND SIDE IS USUALLY A LOT MORE COST EFFECTIVE THAN THE CLEAN ENERGY SUPPLY SIDE, WHICH IS WHY THAT'S A VERY IMPORTANT PART OF THE EQUATION. AND IT IS A FIRST IS A STRATEGY THAT WE PRIORITIZE FIRST. ON THE CLEAN ENERGY SUPPLY SIDE, THAT WAS THE MAIN FOCUS OF THE NREL STUDY. AND THEY BASICALLY CONTEXTUALIZED OUR OPTIONS IN IN THE CONTEXT OF OUR UTILITY REGULATORY ENVIRONMENT, BECAUSE THAT REALLY DETERMINES WHAT OPTIONS WE HAVE COMPARED TO MAYBE OTHER CITIES OR ENTITIES ACROSS THE COUNTRY. SO IN KENTUCKY, WE HAVE A STATE REGULATED, PRIVATELY OWNED, 
          [00:25:06]
INVESTOR OWNED MONOPOLY UTILITY. AND THAT MEANS THAT WE ARE, YOU KNOW, THERE ARE CERTAIN OPTIONS THAT WE HAVE AS A LOUISVILLE METRO GOVERNMENT TO PROCURE CLEAN ELECTRICITY AND OTHERS THAT MIGHT NOT BE ACHIEVABLE FOR US. SO THE CONTEXT FOR THIS IS WAS PROVIDED ON THE SCALE OF WORKING WITH THE UTILITY TO WORKING ON OPTIONS THAT DON'T INVOLVE THE UTILITY. AND I'LL KIND OF JUST TALK THROUGH HIGH LEVEL WHAT THESE OPTIONS ARE, AND THEN WE CAN IN FUTURE SLIDES KIND OF GO A LITTLE BIT MORE IN DETAIL. BUT THE FIRST OPTION IS TO WORK WITH LOUISVILLE GAS AND ELECTRIC'S EXISTING GREEN TARIFF PROGRAMS. AND BECAUSE LG IS A STATE REGULATED MONOPOLY, THEY PRETTY MUCH HAVE THE THERE THE SOLE THE SOLE UTILITY WITH THE AUTHORITY TO PRODUCE AND SELL ELECTRICITY IN THIS AREA. AND THEY DO HAVE OPTIONS FOR CUSTOMERS LIKE US TO BE ABLE TO BUY CLEAN ELECTRICITY FROM THEM, AND THAT IS THROUGH THEIR GREEN TARIFF PROGRAMS. SO THAT IS SOMETHING THAT WE ARE ACTIVELY EXPLORING TO SEE WHAT OPTIONS THERE ARE. AND WE'LL TALK A LITTLE BIT MORE ABOUT SOME OF THE PROS AND CONS THERE. ON THE NEXT SLIDE. THE SECOND OPTION IS A VIRTUAL POWER PURCHASE AGREEMENT. ALSO SIMILAR IS SOMETHING CALLED RENEWABLE ENERGY CERTIFICATES. AND THAT'S AN OPTION WHERE IF YOU'RE UNABLE TO FIND AN OPTION ON YOUR GRID THAT THAT YOU CAN PURCHASE, THEN YOU CAN FINANCIALLY SUPPORT THE GENERATION OF CLEAN ENERGY INFRASTRUCTURE ON A DIFFERENT GRID ELSEWHERE. AND BECAUSE OF YOUR FINANCIAL CONTRIBUTION, YOU CAN BASICALLY CLAIM THAT YOU ARE HELPING OFFSET YOUR ELECTRICITY USE BY SUPPORTING THE GENERATION OF CLEAN ENERGY ELSEWHERE. SO THIS IS AN OPTION THAT HAS NOT TYPICALLY BEEN THE HIGHEST PRIORITY, BECAUSE WE DON'T NECESSARILY WANT TO CLAIM. WE DON'T THINK THAT IT'S THE INTENT OF THE GOAL TO CLAIM THAT WE'RE MEETING OUR GOALS BY, FOR EXAMPLE, BUYING RENEWABLE ENERGY CERTIFICATES FROM A SOLAR FARM IN CALIFORNIA. THAT'S REALLY NOT MEETING THE INTENT OF THE GOAL. 
          SO, BUT BUT VPAS AND RENEWABLE ENERGY CERTIFICATES DO MAKE SENSE WHEN YOU HAVE A PROJECT THAT'S REGIONAL, THAT'S MAYBE BRINGING A LOT OF IMPACT, EITHER TO YOUR LOCAL COMMUNITY OR TO YOUR STATE. SO THAT'S DEFINITELY A PART OF THE STRATEGY AND CAN BE VERY COST EFFECTIVE. THE THIRD OPTION IS UTILITY AND POLICY ADVOCACY. SO OUTSIDE OF WORKING DIRECTLY WITH YOUR UTILITY, WE DON'T HAVE DIRECT CONTROL OVER, YOU KNOW, THE GENERATION PLAN THAT THAT OUR UTILITY HAS OR HOW THEY PLAN FOR CLEAN ENERGY GENERATION. BUT WE CAN ALWAYS AS A CUSTOMER AND AS A LOCAL GOVERNMENT ADVOCATE WITH THE PUBLIC SERVICE COMMISSION AND DIRECTLY WITH LGA TO MAKE MORE CLEAN ENERGY OPTIONS AVAILABLE. SO THAT'S SOMETHING THAT WE CONTINUE TO DO. WE DON'T HAVE DIRECT INFLUENCE, BUT IT IS SOMETHING THAT'S THAT'S A PATHWAY THAT WE ARE INVOLVED IN. 
          AND THEN THE LAST TWO ARE OPTIONS THAT DO NOT INVOLVE THE UTILITY. SO TECHNICALLY IT IS POSSIBLE FOR LOUISVILLE TO MUNICIPALIZE, WHICH MEANS EITHER BUYING THE ELECTRIC UTILITY OR STARTING A NEW SEPARATE MUNICIPALLY OWNED UTILITY. SO IN THIS SITUATION, BECAUSE WE HAVE BEEN, YOU KNOW, ANALYZING ALL OF THESE OPTIONS AND TRYING TO DO OUR DUE DILIGENCE ON EVERY SINGLE OPTION THAT'S AVAILABLE. TO MEET THIS GOAL, WE COMMISSIONED A STUDY TO EXPLORE MUNICIPALIZATION FOR LOUISVILLE METRO GOVERNMENT LOADS ONLY TOWARDS THAT 2030 GOAL. THE REASON WE DID NOT DO A FULL, COMMUNITY WIDE MUNICIPALIZATION STUDY IS BECAUSE THAT WOULD HAVE BEEN MUCH MORE EXPENSIVE THAN WE HAD FUNDS FOR AT THE TIME, SO WE STARTED WITH KIND OF THE SMALLER SCOPE STUDY THAT WAS FOCUSED ON OUR 2030 GOAL, AND THE RESULT OF THAT STUDY WAS ESSENTIALLY THAT IT WOULD BE VERY EXPENSIVE AND ALSO NOT FEASIBLE WITHIN THE 2030 TIMEFRAME. SO WE COMPLETED THAT STUDY. IT'S AVAILABLE TO SHARE, BUT IT'S NOT SOMETHING THAT WE'RE ACTIVELY PURSUING AT THIS TIME. AND THEN NOW WE CAN TALK A LITTLE BIT KIND OF MORE ABOUT THESE OPTIONS. AND I KNOW THAT THERE'S A LOT OF INFORMATION ON THIS SLIDE. WE'RE HAPPY TO SHARE THAT SEPARATELY. 
          BUT THE INTENT IS TO GENERALLY GIVE YOU A HIGH LEVEL VIEW OF ALL THE DIFFERENT OPTIONS AND SOME OF THE PROS AND CONS. SO FIRST, AGAIN ON THE ENERGY DEMAND REDUCTION SIDE, THAT IS OUR PRIMARY PRIORITY. AND IT'S BECAUSE FIRSTLY THERE ARE NO REGULATORY CONSTRAINTS THAT PREVENT US FROM DOING AS MUCH ENERGY EFFICIENCY AS WE'D LIKE TO DO. MANY OF THESE STRATEGIES ARE REALLY LOW COST OR NO COST, WHICH MAKES THEM LOW HANGING FRUIT AND VERY COST EFFECTIVE TO DEPLOY, AND VERY EFFECTIVE IN REDUCING THE AMOUNT OF ENERGY DEMAND. AND, YOU KNOW, THE CLEANEST KILOWATT IS THE ONE THAT ISN'T USED. SO THAT'S WHY THAT'S SOMETHING THAT WE ARE PRIORITIZING. AND ALSO THEY HAVE SUBSTANTIAL AND RELIABLE PAYBACK. AS ZACH WILL TALK ABOUT A LITTLE BIT MORE IN A SECOND. THE DOWNSIDE OR THE CON IN THIS SITUATION IS THAT SOMETIMES 
          [00:30:01]
INSTALLING REALLY EFFICIENT INFRASTRUCTURE CAN HAVE A HIGHER UPFRONT COST, AND THAT CAN BE A CHALLENGE SOMETIMES. HOWEVER, LIKE I SAID, THEY DO HAVE RELIABLE PAYBACK, SO THEY ARE A GOOD INVESTMENT. SO ON THE CLEAN ENERGY SUPPLY SIDE, KIND OF AGAIN, STARTING WITH MAYBE OPTIONS, I'M SURE A LOT OF PEOPLE ARE THINKING ABOUT ROOFTOP SOLAR AS KIND OF LOW HANGING FRUIT OPTION. SO KIND OF STARTING WITH OUR BUILDINGS AND WORKING OUT OUTWARDS FROM THERE, WE CAN, OF COURSE, MAXIMIZE PUTTING SOLAR PANELS ON ALL OF OUR BUILDINGS AND CITY OWNED LAND AS MUCH AS POSSIBLE. THE BENEFITS OF THIS ARE THAT WE WOULD OWN THE ASSETS. IT DOES HAVE THE HIGHEST PAYBACK BECAUSE WE WOULD OWN THAT ASSET WE WOULD BASICALLY USE. ONCE THE EQUIPMENT IS PAID FOR, YOU'RE GETTING FREE ELECTRICITY THAT YOU CAN USE TO POWER ALL YOUR BUILDINGS, AND YOU CAN ALSO SELL SOME OF THAT EXCESS BACK TO THE GRID. YOU CAN'T REALLY SELL IT FOR A 1 TO 1 RATE, BECAUSE WE DON'T HAVE THAT NET METERING POLICY IN KENTUCKY, BUT YOU CAN GET SOME RATE OF RETURN FOR THAT. BUT SO THIS IS THIS IS AGAIN A STRATEGY THAT IS IMPORTANT TO US. IT IS. BUT WHEN WE'RE TALKING ABOUT GETTING TO 100% BY 2030, WE JUST DON'T HAVE THE ROOFTOP AVAILABILITY OR THE SPACE TO ACTUALLY GET ALL THE WAY THERE. JUST THROUGH ON SITE SOLAR. AND THERE'S ALSO A 45 KILOWATT LIMIT, WHICH WHICH MEANS THAT YOU CAN'T BUILD A SINGLE SOLAR FARM OR FIELD THAT'S, THAT'S THAT LARGE. SO THAT'S WHY THAT ALSO KIND OF CAN KIND OF LIMIT HOW MUCH YOU CAN BUILD THROUGH THAT METHOD. SO ROOFTOP OR GROUND MOUNTED SOLAR ARE GREAT OPTIONS. THEY ARE LIMITED JUST IN TERMS OF SCALABILITY. THE SECOND OPTION WOULD BE IF LOUISVILLE METRO GOVERNMENT WANTED TO BUY A LARGE TRACT OF LAND, AND MAYBE BUILD A LARGE SOLAR FARM ON THAT SEPARATELY, AND IT WOULDN'T BE DIRECTLY CONNECTED TO YOUR BUILDINGS LIKE BEHIND THE METER, LIKE SOLAR WOULD, BUT ESSENTIALLY YOU WOULD OWN THE LAND, YOU WOULD OWN THE ASSETS, BUT YOU WOULD HAVE TO SET YOURSELF UP AS A LARGE QUALIFYING FACILITY AND, AND BASICALLY GET SPECIAL PERMISSION, BECAUSE THEN YOU WOULD ALMOST ACT LIKE A SMALL UTILITY. AND BECAUSE OF THE MONOPOLY ENVIRONMENT, YOU WOULD HAVE TO GO THROUGH A REGULATORY PROCESS TO BE APPROVED FOR THAT. AND THE RATE AT WHICH YOU WOULD, YOU WOULD ULTIMATELY HAVE TO SELL THE CLEAN ELECTRICITY TO THE GRID, BECAUSE YOU'RE BASICALLY USING ELGIN'S DISTRIBUTION AND TRANSMISSION, AND THAT CAN BE A MUCH LOWER PAYBACK. SO IT'S NOT REALLY ECONOMICALLY FEASIBLE TO PURSUE THAT OPTION. SO THE NEXT OPTION WOULD BASICALLY BE TO WORK WITH OUR GRID AND GO THROUGH ONE OF THESE GREEN TARIFF OPTIONS. SO GREEN TARIFF OPTION ONE IS SOLAR SHARE FOR. AND THAT'S A RESIDENTIALLY FOCUSED PROGRAM. 
          SO THAT'S NOT ON THIS LIST. BUT GREEN TARIFF OPTION TWO IS A VERSION OF THAT PROGRAM FOR BUSINESSES. AND IN THIS SITUATION LG WOULD BUILD OUT THE ASSET. SO LOUISVILLE METRO WOULD NOT OWN IT. BUT THEY WOULD BASICALLY BUILD OUT THE SOLAR FARM, THEY WOULD MAINTAIN IT, AND THEN THEY WOULD THERE WOULD BE A COST POWER PURCHASE AGREEMENT WITH LOUISVILLE METRO ON HOW TO, YOU KNOW, PROCURE THAT ELECTRICITY. AND THAT CAN WE HAVE BEEN EXPLORING THAT OPTION WITH THEM. IT IS HIGHER COST FOR LOUISVILLE METRO AS ONE OF THE HIGHER COST OPTIONS TO BE ABLE TO DO THAT. BUT IT IS SOMETHING THAT WE'RE STILL CONSIDERING. AND THEN THE THIRD ONE IS THE GREEN TARIFF OPTION THREE. AND THIS IS WHEN LG WOULD BUILD, YOU KNOW, WOULD BUY SEVERAL ACRES OF LAND AND BUILD A LARGE SOLAR FARM ON IT. BECAUSE OF ECONOMIES OF SCALE, IT CAN BE A LOT MORE COST EFFECTIVE. AND THAT'S SOMETHING THAT MULTIPLE CUSTOMERS CAN BASICALLY GO IN AND PROCURE CLEAN ENERGY TOGETHER. A FEW YEARS AGO, THERE WAS AN ANNOUNCEMENT OF TOYOTA AND A FEW OTHER LARGE COMPANIES BASICALLY PARTICIPATING IN ONE OF THOSE DEALS. UNFORTUNATELY, FOR DIFFERENT REASONS, THAT DID NOT GO THROUGH, BUT THAT WOULD HAVE BEEN AN EXAMPLE OF A GREEN TARIFF. OPTION THREE, YOU KNOW, PROCESS. THE DOWNSIDE OF THAT IS CURRENTLY LG AND SORRY, LMG DOES NOT QUALIFY FOR THAT. WE ARE NOT CONSIDERED A LARGE ENOUGH CUSTOMER TO BE ABLE TO PARTICIPATE IN GREEN TARIFF OPTION THREE. SO EVEN THOUGH THE COST WOULD BE COMPETITIVE, WE DON'T REALLY HAVE A PATHWAY TO BE TO PARTICIPATE IN THAT. IT WOULD REQUIRE A SPECIAL CHANGE IN POLICY BY THE PUBLIC SERVICE COMMISSION TO BE ABLE TO PARTICIPATE IN THAT. AND THEN THAT BRINGS US TO THE LAST OPTION, WHICH IS, YOU KNOW, ONCE WE EXHAUST THE UTILITY OPTIONS, WE COULD AGAIN GO BACK TO THAT VIRTUAL POWER PURCHASE AGREEMENT OR RENEWABLE ENERGY CERTIFICATE OPTION. AND THOSE DO TEND TO BE THE LOWEST COST, BECAUSE IN THAT SITUATION YOU'RE NOT ACTUALLY FINANCING THE ENTIRE CONSTRUCTION OF THE SOLAR FACILITY, BUT YOU ARE A SMALL PART OF THAT FINANCING STACK, WHICH MEANS THAT, YOU KNOW, THE FACILITY MAY BE BUILT FOR A DIFFERENT CUSTOMER TO USE THE ELECTRICITY. HOWEVER, THE RENEWABLE ATTRIBUTES OF THAT RENEWABLE ENERGY CERTIFICATES CAN BE SOLD ON THE MARKET. AND 
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ULTIMATELY THAT'S A NET BENEFIT FOR BOTH PARTIES BECAUSE IT MAKES THE COST OF THAT CHEAPER FOR EVERYBODY. AND IT MAKES IT HELPS CUSTOMERS LIKE US WHO MAY HAVE LIMITED OTHER OPTIONS TO BE ABLE TO REACH OUR GOALS, STILL CONTRIBUTE TO HELPING SUCH A PROJECT GET OFF THE GROUND AND BE ABLE TO MEET OUR GOALS. THE DOWNSIDE IS, YOU KNOW, UNLESS YOU FIND A REGIONAL OR LOCAL PROJECT THAT HAS MEANINGFUL ECONOMIC DEVELOPMENT AND ENVIRONMENTAL IMPACTS FOR YOUR COMMUNITY, IT DOESN'T REALLY MAKE SENSE TO FOR US TO, YOU KNOW, JUST BUY AGAIN CLEAN ENERGY CREDITS FROM FLORIDA OR CALIFORNIA OR SOMEWHERE FAR AWAY. SO PROVIDED THAT WE CAN FIND REGIONAL OPTIONS, IT CAN BE A GOOD WAY TO DO IT. AND OF COURSE, IT'S NOT THE IDEAL WAY TO DO IT BECAUSE IT'S NOT CONSIDERED AS SUBSTANTIAL OF AN INVESTMENT IN CLEAN ENERGY. 
          HOWEVER, WE THINK THAT IT IS ALWAYS GOING TO BE A PART OF THE OVERALL SOLUTION AND COULD BE USED TO KIND OF FILL THE GAP. ONCE WE MAXIMIZE A LOT OF OTHER OPTIONS THAT ARE OUT THERE. SO WITH THAT, I WILL PASS IT ON TO ZACH TO TALK ABOUT SOME OF OUR ONGOING PROGRESS. THANK YOU. SO I'M ZACH TYLER, I WORK AS THE ENERGY MANAGER FOR LOUISVILLE METRO GOVERNMENT. I JOINED IN 2021 TO CREATE AND IMPLEMENT AN ENERGY MANAGEMENT PROGRAM TO ESSENTIALLY FOCUS ON OUR EFFICIENCY, OUR BUILDING, CONSERVATION AND OPTIMIZATION EFFORTS, AND HAVE ALSO WORKED REALLY CLOSELY WITH SAMATA ON THE CLEAN ENERGY PROCUREMENT SIDE OF THIS AS WELL, TO MEET OUR LONG TERM GOALS. SO AS SAMATA INTRODUCED THE EFFICIENCY AND CONSERVATION ELEMENT OF THIS PROGRAM, IT ALWAYS IS THE FIRST STEP OF ANY TYPE OF SUSTAINABILITY OR ENERGY TARGET. 
          AND THE REASON IT'S A FIRST STEP. THERE'S SEVERAL REALLY GOOD REASONS. IT'S A IT'S A PRIMARY FIRST STEP FOR ANY SUSTAINABILITY GOAL, WHICH IS IT IS THE MAIN MECHANISM THROUGH WHICH YOU CAN IMMEDIATELY SAVE MONEY AND HAVE THAT IMMEDIATE IMPACT ON YOUR EMISSIONS. I'VE BEEN EXCITED TO REPORT THAT SINCE 2021, WE'VE REALIZED ABOUT $4 MILLION IN UTILITY COST AVOIDANCE THROUGH THESE MEASURES, AND THAT DOES REPRESENT ABOUT A 16% REDUCTION IN OUR ANNUAL ENERGY USE SINCE OUR 2019 BASELINE. AND IT CREATED THANK YOU. THIS THIS EMISSIONS REDUCTION IS EQUIVALENT TO 24,000 METRIC TONS OF CO2, WHICH IS THE SAME AS ABOUT 26 MILLION POUNDS OF COAL NOT BURNED, OR THE ELECTRICITY USAGE OF ABOUT 5000 HOMES ON AVERAGE. SO IT HAS AN IMMEDIATE IMPACT. BUT THERE'S OTHER OPPORTUNITIES AND REASONS WHY YOU START THERE. AND ONE OF THOSE IS WITH THOSE IMMEDIATE FUNDS ON COST AVOIDANCE, THERE'S AN OPPORTUNITY TO LEVERAGE THOSE FUNDS AND REINVEST THEM INTO BUILDINGS AND EFFICIENCY TO KIND OF ACCELERATE THAT MOMENTUM. SO THANKS TO COUNCIL RESOLUTION, WE'VE BEEN ABLE TO CREATE THE ENERGY INNOVATION FUND AND ALLOCATE A GOOD PORTION OF THESE ENERGY SAVINGS BACK INTO ENERGY PROJECTS, WHICH I'LL TALK ABOUT MORE IN A MOMENT. BUT FINALLY, THE OTHER BIG REASON IS WE FOCUS ON EFFICIENCY IS BECAUSE THE COST OF ENERGY AND ENERGY SERVICE IS ALWAYS INCREASING. 
          SINCE 2020, WE'VE SEEN OUR UTILITY COSTS OR OUR UTILITY RATES GO UP BY ABOUT 17%. AND SO WHEN YOU'RE LOOKING AT PROCUREMENT, YOU DEFINITELY WANT TO LOWER THE AMOUNT OF CLEAN ENERGY THAT YOU HAVE TO PROCURE MOVING FORWARD. IT MAKES THAT PROCUREMENT GOAL A LOT MORE ATTAINABLE AND COST EFFECTIVE AS WELL. SO ON THAT NOTE, AS FAR AS OUR ENERGY MANAGEMENT PROGRESS GOES, WE'VE REALLY ONLY SCRATCHED THE SURFACE ON THIS. I MEAN, 16% IS A PRETTY GOOD REDUCTION, BUT LOUISVILLE METRO HAS ALSO JOINED THE BETTER BUILDINGS CHALLENGE AND HAS MADE A ESTABLISHED A GOAL OF A 30% REDUCTION IN OUR BUILDING ENERGY USAGE BY 2030. SO THERE'S STILL A LONG WAY TO GO. IT'S VERY ATTAINABLE. AND YOU'LL SEE AS WE KIND OF DRILL INTO WHAT THESE DIFFERENT PATHWAYS LOOK FOR METRO, THAT WE WILL CONTINUE TO PROJECT A REDUCED AMOUNT OF CLEAN ENERGY THAT WE NEED TO PROCURE OVER TIME, BECAUSE WE INTEND TO PUT THIS FIRST AND FOREMOST AS A AS AN IMMEDIATE COST LOWERING MECHANISM. SO JUST A QUICK RECAP ON OUR ENERGY FUND. WE'VE WE'VE FINANCED OVER 32 ENERGY PROJECTS SO FAR THROUGH THIS FUND THAT WAS ESTABLISHED INITIALLY, WE REALLY FOCUSED ON PRIORITIZING LED LIGHTING CONVERSIONS. IT'S NOT THE MOST EXCITING TYPE OF PROJECT, BUT THESE REALLY COME FIRST BECAUSE THEY HAVE VERY AGGRESSIVE ROI. YOU CAN OFTEN SEE A FULL RETURN OF YOUR INVESTMENT WITHIN 3 OR 4 YEARS. 
          AND BACK WHEN I JOINED IN 2021, WE REALLY DIDN'T HAVE ANY BUILDINGS THAT WERE FULLY LED. 
          SO IT'S NOT NECESSARILY THE MOST FUN PLACE TO START, BUT IT REALLY IS LOW HANGING FRUIT THAT THAT HAS TO BE KICKED OFF TO ACCELERATE THOSE SAVINGS. IN THE LAST YEAR, WE'VE BEEN SHIFTING A 
          [00:40:01]
BIT MORE TO DEEPER MECHANICAL RETROFITS AND REPLACEMENTS OF AGED OUT HVAC SYSTEMS. THIS HAS BEEN WITH THE ASSISTANCE OF A ENGINEERING CONTRACT WITH CMTA, WHICH EXCELS IN NET ZERO BUILDING DESIGN. THEY'VE HELPED US GO TO BUILDINGS THAT HAVE AS OLD AS 50 YEAR OLD HVAC SYSTEMS THAT WERE THAT WERE REALLY KIND OF AGED OUT AND COMPLETELY REDESIGN HOW THOSE SYSTEMS WORK AND REPLACE THEM WITH THINGS LIKE HIGH EFFICIENCY HEAT PUMPS. AND WE'RE ALSO TAKING THIS OPPORTUNITY TO DO RETRO COMMISSIONING OF BUILDINGS, TAKE SYSTEMS THAT ARE NEAR THE END OF THEIR LIFE, BUT BREATHE A FEW MORE YEARS INTO THEM, INCREASE IMPROVING THEIR OPTIMIZATION UNTIL WE CAN GET LIKE A LONGER TERM CAPITAL PLAN IN PLACE. AND THEN WE'VE ALSO BEEN WORKING WITH THEM TO DO MUCH DEEPER BUILDING AUDITS TO HELP SCOPE OUT WHAT FUTURE CAPITAL REPLACEMENTS FOR THOSE BUILDINGS SHOULD LOOK LIKE AS WELL, AND MAKE SURE WE'RE MAKING STRATEGIC DECISIONS ON THE FRONT END. NEXT SLIDE. SO JUST A COUPLE EXAMPLES OF WHAT THESE TYPES OF PROJECTS LOOK LIKE. WE'VE GOT FULL LED LIGHTING REPLACEMENTS AT THE IROQUOIS LIBRARY IN THE TOP LEFT, THE LMPD FIRING RANGE IN THE BOTTOM LEFT, WE DID A REPLACEMENT OF A 50 YEAR OLD HVAC SYSTEM IN THE BOWMAN FIELD DMV WITH HEAT PUMPS, AND A VERY SIMILAR PROJECT THAT WAS ONLY JUST BEING COMPLETED NOW FOR THE DOWNTOWN LOUISVILLE METRO EMPLOYEE WELLNESS CENTER. THAT WAS ANOTHER JUST SHY OF 50 YEAR OLD HVAC SYSTEM THAT IS NOW A HEAT PUMP SYSTEM, AND WE'VE RECEIVED ONE UTILITY BILL SINCE THIS NEW SYSTEM WAS PUT IN OPERATION. AND THAT UTILITY BILL REFLECTED A 60% REDUCTION IN THAT BUILDING'S ENERGY USAGE COMPARED TO ALL PRIOR YEARS. SO IT'S PRETTY DRAMATIC. AND THEN IF YOU GO TO THE NEXT SLIDE, I'VE ALSO BEEN EXCITED TO HAVE THE OPPORTUNITY WITH THIS FUND TO TAKE A SMALL SUBSET OF THE FUND AND INVEST IT IN A MORE AGGRESSIVE, AMBITIOUS PROJECTS THAT WILL PUSH THAT ACTUAL CLEAN ENERGY ON SITE GENERATION. SO A SMALL PORTION OF THIS FUND IS RESERVED FOR THE OPPORTUNITY TO DO ROOFTOP SOLAR. AND WE'VE DONE THAT ON THREE BUILDINGS SO FAR FIRE ENGINE EIGHT, IROQUOIS LIBRARY AND SOUTHWICK COMMUNITY CENTER. AND ON THESE THREE BUILDINGS, THE SOLAR ARRAYS HAVE BEEN ABLE TO THEIR SIZE TO GENERATE ABOUT 50% OF THOSE BUILDING'S ENERGY CONSUMPTION. SO IT'S A PRETTY SIZABLE AMOUNT OF THEIR CONSUMPTION. AND THESE BUILDINGS WERE SELECTED BECAUSE THEY HAVE REALLY GOOD ROOFS. YOU TYPICALLY DON'T WANT TO PUT SOLAR ON AN OLD AGING ROOF, BUT THESE HAVE RELATIVELY NEW ROOFS. 
          THEY'RE GREAT BUILDINGS FOR SOLAR, AND THEY DO ACTUALLY HAVE AN ROI. SO EVEN THOUGH IT'S NOT AS AGGRESSIVE AS YOU MIGHT SEE ON A LIGHTING PROJECT WITH A 3 OR 4 YEAR RETURN, THE INVESTMENT IN THE SOLAR ARRAY WILL FULLY PAY ITSELF OFF AND THEN SOME OVER THE LIFE OF THE PROJECT. 
          AND SO WE DEFINITELY WANTED TO TAKE THE OPPORTUNITY WITH THIS FUND TO DO THOSE PROJECTS WHERE THEY MADE SENSE. NEXT SLIDE. SO NEXT I'M GOING TO RECAP A COUPLE OF THE STRATEGIES THAT SAMATA COVERED ON HOW WE PROCURE CLEAN ENERGY AND KIND OF PUT VISUALLY HOW THAT WOULD LOOK LIKE FOR METRO IF WE WERE TO PURSUE THEM. SO, AS SAMATA MENTIONED, THE FIRST THING THAT KIND OF POPS INTO EVERYONE'S HEAD WITH THE CLEAN ENERGY GOAL IS JUST ROOFTOP SOLAR ON ALL BUILDINGS OR, YOU KNOW, TAKING A PARCEL OF METRO LAND AND BUILDING UTILITY SCALE SOLAR ARRAY. AND WE DEFINITELY DO WANT TO TAKE THE OPPORTUNITY TO PUT SOLAR ON ANY NEW ROOF WHERE IT MAKES SENSE, WHERE WE'RE GOING TO HAVE AN ROI, AND WE HAVE GOOD GENERATION. BUT THE REASON THAT THIS IS NOT A STRATEGY THAT WE'RE RECOMMENDING IS THAT IF EVERY METRO ROOF WERE COVERED IN SOLAR, IT WOULD NOT GET US TOWARDS OUR GOAL. WE MAY, IN A BEST CASE SCENARIO, BE ABLE TO GET SOMEWHERE LIKE 20%. BUT THERE'S A LOT OF METRO BUILDINGS THAT DON'T MAKE A LOT OF SENSE DUE TO ROOF CHARACTERISTICS OR SUN EXPOSURE. AND SO WE REALLY WANT TO MAKE SURE THAT WHERE WE'RE DOING ROOFTOP SOLAR, IT'S PRIORITIZED ON THOSE HIGH IMPACT FACILITIES WHERE WE'RE GOING TO SEE A LOT OF GENERATION. AND THEN ON THE LKF SIDE, IF WE WERE TO TAKE LIKE A PARCEL OF LAND AND BUILD OUT LIKE A LARGE SCALE ARRAY, SAMATA INTRODUCED THIS DOES BASICALLY INTRODUCE ALL THE COMPLEXITIES OF OWNING AND OPERATING A UTILITY, OPERATE ELECTRIC UTILI, BUT WE WOULD NOT ACTUALLY BE ABLE TO CREDIT THAT ENERG TOWDS OUR ACCOUNTS. IT WOULDN'T REALLY BE A DIRECT PROCESS OF ETING TT 100% GL. AND TN WN TT GY IALL INJDNTE GR I COMATT HIGH UPFRONT COST, THE VERY LOW RATE OF COMPENSATION, AND ALL THE COMPLEXITIES OF ESSENTIALLY OPERATING A ELECTRIC UTILITY, THE REGIONAL, THE STATE REGULATORY REGULATORY ENVIRONMENT MAKES THAT LOOK LIKE VERY HIGH LIFT, NOT A GREAT OPTION. NEXT SLIDE. THE THIRD OPTION. OH SORRY. OH SORRY. SO THE NEXT PATHWAY THAT YOU WOULD 
          [00:45:06]
TYPICALLY MOVE TO FOR A LARGE SCALE UTILITY PROCUREMENT IS A POWER PURCHASE AGREEMENT. AND THIS THIS WOULD BE ESTIMATED MENTIONED LG DEVELOPING A UTILITY SCALE SOLAR ARRAY ON OUR BEHALF OR ON THE BEHALF OF MULTIPLE CUSTOMERS AND US AGREEING TO PURCHASE THROUGH THEM. BUT AS STATED, UNDER THE CURRENT APPROVED STATE TARIFFS, WE DO NOT QUALIFY TO ENTER INTO THIS TYPE OF CONTRACT. WE ARE NOT CONSIDERED A LARGE ENOUGH CUSTOMER AND ARE NOT ELIGIBLE FOR THIS YET. THIS COULD BECOME AN OPTION IN THE FUTURE AS THE TARIFFS AND QUALIFYING CUSTOMERS ARE UPDATED ON THE STATE LEVEL, BUT IT IS SOMETHING THAT IS LIKELY TO TAKE TIME, SO THE CLOSEST CONTRACT ARRANGEMENTS WE'VE SEEN TO THIS THAT WE COULD POTENTIALLY QUALIFY FOR, THEY IN THOSE CONVERSATIONS, THOSE OPTIONS AS WE'VE LOOKED AT THEM, TEND TO BE A LOT MORE LIMITED IN SIZE AND FAR LESS COST COMPETITIVE THAN YOU MIGHT SEE IN A CLASSIC PPA, WHICH IS WHY THEY'VE NOT LOOKED LIKE A IMMEDIATELY ACTIONABLE MECHANISM. BUT I DID WANT TO POINT OUT THAT IN EVEN IN A PPA SCENARIO, THERE IS STILL THAT BLUE LINE ON THE BOTTOM THAT YOU'LL SEE FOR ON SITE SOLAR GENERATION. AND THAT'S BECAUSE WE WANTED TO EMPHASIZE THAT EVEN IN THIS SCENARIO, WE DO PURCHASE UTILITY SCALE SOLAR FROM LG, AND ROOFTOP SOLAR IS STILL MORE COST EFFECTIVE THAN YOU TYPICALLY SEE IN THOSE CONTRACT TERMS ON THOSE BUILDINGS WHERE IT MAKES SENSE TO DO IT. SO EVEN IN A UTILITY SCALE PURCHASE, WE DON'T WANT TO LEAVE THAT OUT AS A STRATEGY, BECAUSE IT DOES MAKE SENSE FOR THAT SUBSET OF BUILDINGS. NEXT. THE NEXT OPTION IS THE RENEWABLE ENERGY CREDITS. AND JUST TO KIND OF ELABORATE ON WHAT WAS SAID EARLIER, THE RENEWABLE ATTRIBUTES, THE RIGHTS TO CLAIM RENEWABLE ENERGY OF A SOLAR PROJECT EVERY, EVERY KILOWATT HOUR THAT'S GENERATED FROM A CLEAN ENERGY PROJECT IS CLAIMED BY ONE ENTITY OR ONE PERSON. AND THE MECHANISM THROUGH WHICH THAT'S DONE IS ALWAYS THROUGH THE PURCHASE AND RETIREMENT OF RENEWABLE ENERGY CREDIT. SO RECS ARE THE MECHANISM. ALL CLEAN ENERGY IS CLEANED AND TRADED. IT IS POSSIBLE TO PURCHASE THE RECS INDEPENDENTLY OF YOUR ACTUAL ELECTRIC SUPPLIER. SO THE PRO OF THIS IS THAT YOU ARE. YOU HAVE A LOT MORE FLEXIBILITY. REC RECS ARE THE ONE WAYS THAT IT'S ONE OF THE WAYS THAT WE WOULD BE ABLE TO PURCHASE ELECTRICITY OR CLEAN ELECTRICITY THAT ISN'T DIRECTLY FROM LG, AND IT IS. THEY CAN BE EXTREMELY CHEAP. THOSE THOSE CONTRACTS FOR REC PURCHASES TEND TO BE A LOT MORE FLEXIBLE, WHERE YOU CAN ADJUST THE AMOUNT YOU PURCHASE OVER TIME, AS OPPOSED TO A 25 YEAR MINIMUM ENERGY PURCHASE THAT YOU WOULD COMMIT TO IN A IN A MORE CLASSIC PPA. BUT THE CONS THAT WERE MENTIONED IS THAT THAT INVESTMENT MAY NOT BRING THE IMPACT OF A CLEAN ENERGY PROJECT AND INVESTMENT LOCALLY. SO YOU MAY NOT REALIZE THOSE BENEFITS OF CLEANER AIR. THE ECONOMIC BENEFITS OF THE NEW PROJECT IN YOUR REGION. IF THOSE PPAS ARE LOWER QUALITY PPAS THAT COME COUNTRY, IT REALLY JUST DOESN'T REPRESENT BRINGING NEW CLEAN ENERGY INTO THE GRID MIX, WHICH IS WHAT THE SPIRIT OF THE RESOLUTION WAS REALLY LOOKING TOWARDS. SO THE SOLUTION FOR ANY TYPE OF REC STRATEGY, IF WE ADOPT IT, WOULD BE MAKING SURE THAT ANY REC PURCHASE IS VETTED AS A AS A HIGH QUALITY REC, BECAUSE YOU ARE ABLE TO RESTRICT REC PURCHASES TO A NEW PROJECT, ENSURING THAT THE PURCHASE OF THE RECS ARE A DRIVING MECHANISM OF WHAT BRINGS THAT CLEAN ENERGY PROJECT ONLINE, SO THAT YOU KNOW THAT THAT PURCHASE HAS AN ADDITIONALITY ASPECT. YOU'RE PUTTING MORE CLEAN ENERGY ONTO THE GRID FOR HAVING PURCHASED THE RIGHTS TO IT, AND THEN ALSO ENSURING THAT THOSE PROJECTS THAT YOU LOOK TO PURCHASE RECS FROM ARE LOCAL, SO THAT YOU'RE NOT GETTING SOMETHING PRODUCED IN CALIFORNIA FROM A PROJECT THAT'S ALREADY BEEN ONLINE FOR TEN YEARS, YOU WANT TO MAKE SURE THAT RECS ARE SOURCED FROM A NEW LOCAL PROJECT. NEXT SLIDE. SO THAT KIND OF BRINGS US TO WHAT THE RECOMMENDED PATHWAY MIGHT LOOK LIKE, WHICH IS AN ALL OF THE ABOVE APPROACH. AS OF RIGHT NOW, RECS DO LOOK LIKE ONE OF THE MOST IMMEDIATELY ACTIONABLE WAYS THAT WE COULD JUMP MAKE A HUGE STRIDE TOWARDS THAT 2030 GOAL, BUT WE ALSO WANT TO EMPHASIZE THAT THAT IS NOT NECESSARILY AN END ALL, BE ALL STRATEGY, BECAUSE PPA IS STILL DO REPRESENT A GREAT WAY TO LOCALLY PURCHASE LOCAL CLEAN ENERGY. BUT IN THIS RECOMMENDED PATHWAY, WHAT WE WOULD SHOW, WHAT WE WOULD PRIORITIZE IS THE SHORT TERM PURCHASE OF RECS THAT OVER TIME, WE COULD PHASE OUT IF AND WHEN AFFORDABLE, ACCESSIBLE 
          [00:50:08]
PPA OPTIONS BECOME AVAILABLE TO US THROUGH LGA AND STATE REGULATORY BARRIERS. SO WHILE THAT IS LIKELY TO HAPPEN, THERE ARE GOALS AND PLANS, EVEN ON ELGIN'S END, TO ADD MORE SOLAR ENERGY TO THEIR GRID MIX. THOSE OPTIONS ARE JUST NOT LIKELY TO MATERIALIZE AND BECOME AVAILABLE TO US FOR A LONGER TIME FRAME. IT MIGHT BE MORE LIKE A 5 TO 10 YEAR TIME FRAME BEFORE THOSE CHANGES ARE MADE, WHERE WE WOULD BE ABLE TO DIRECTLY PURCHASE AT THE SCALE AND PRICE THAT WE WOULD NEED. SO THIS IS BASICALLY REPRESENTING PHASING OUT THE PURCHASER RECS AS THOSE AFFORDABLE UTILITY SCALE OPTIONS DO BECOME AVAILABLE. AND THEN INCLUDING A THIRD MEASURE OF STILL BUILDING OUT ROOFTOP SOLAR ON THOSE BUILDINGS THAT MAKE THE MOST SENSE TO DO IT WHERE IT'S COST EFFECTIVE. SO YEAH. AND JUST TO ADD TO ZACH'S DESCRIPTION OF OUR POTENTIAL PATHWAYS AND TO MAKE SURE THAT, YOU KNOW, PEOPLE ARE UNDERSTANDING THE STRATEGY. SO THE, THE, THE STRAIGHT LINE THAT YOU SEE ON TOP AT ABOUT 110,000 MEGAWATT HOURS, THAT REPRESENTS THE AMOUNT OF ENERGY THAT WE WOULD BE USING HAD ZACH NOT BEEN HIRED. SO THAT'S BASICALLY OUR BASELINE OF WHERE WE'RE STARTING THE ORANGE THAT YOU SEE UP UNTIL 2025 IS REDUCTIONS THAT THEY'VE ALREADY BEEN ABLE TO ACHIEVE THROUGH ENERGY EFFICIENCY, DEMAND SIDE MEASURES. AND THE FEW SOLAR PROJECTS THAT WE TALKED ABOUT AND THEN AND THEN THE REST OF THEM, THE GRAY FOR RENEWABLE ENERGY CERTIFICATES, THE YELLOW FOR OFF SITE PPAS, AND THEN THE BLUE FOR SOLAR GENERATION ARE KIND OF OUR BEST ESTIMATES FOR WHAT IS FINANCIALLY AND TIMELINE WISE, FEASIBLE OVER THE NEXT SEVERAL YEARS. AND ONE OF THE REASONS WHY WE HAVE, YOU KNOW, ORIGINALLY WE WERE THINKING THAT RECS WOULD KIND OF BE THE LAST STRATEGY. THEY WOULD KIND OF BE THE GAP FILLER. ONCE WE'VE EXPLORED ROOFTOP SOLAR AND PPAS AND ALL THESE OTHER MORE LOCAL AND TANGIBLE OPPORTUNITIES. HOWEVER, THE REASON THAT THAT WE'RE OFFERING TO OR PROPOSING TO START WITH RECS AND THEN KIND OF TAPER THEM OFF OVER TIME IS BECAUSE AS OF VERY RECENTLY, AS OF BASICALLY THIS WEEK, WE HAVE WE HAVE FOUND A VERY PROMISING RENEWABLE ENERGY CREDIT OPPORTUNITY. AND IT IS A PROJECT THAT IS IN KENTUCKY. IT'S IN WESTERN KENTUCKY. IT HAS ALREADY RECEIVED ALL OF THE APPROVALS AND PERMITS THAT'S NEEDED TO START CONSTRUCTION. AND IT HAS JUST THE RIGHT AMOUNT OF SIZE FOR IT TO BE MEANINGFUL AND HELP US BASICALLY FILL THAT GAP AND ACHIEVE OUR GOAL WELL BEFORE 2030. IT'S ON RECLAIMED COAL MINE LAND, WHICH MEANS THAT IT'S NOT REPLACING FARMLAND OR OTHER TYPES OF, YOU KNOW, PRODUCTIVE USE. IT'S ON LAND THAT USED TO BE USED FOR ENERGY GENERATION AND IS NOW CONTINUING TO BE USED FOR CLEAN ENERGY GENERATION. IT HAS LOCAL ECONOMIC DEVELOPMENT AND JOB CREATION IMPACTS FOR THAT REGION. AND WE TALKED ABOUT, YOU KNOW, ADDITIONALITY AND HIGH QUALITY AND LOW QUALITY RECS BEFORE. AND IF WE'RE IF RECS ARE GOING TO HAVE TO BE PART OF OUR STRATEGY, IT REALLY IS NOT GOING TO GET MORE HIGH QUALITY THAN THIS. WE HAVE BEEN TRYING TO KEEP AN EYE OUT FOR REGIONAL RECS FOR A LONG TIME, AND THIS IS THE ONLY OPPORTUNITY THAT WE'VE SEEN THAT THAT IS A REALLY MEANINGFUL OPPORTUNITY TO SUPPORT A REGIONAL PROJECT. SO CURRENTLY SOME OF THE DETAILS LIKE COST ETC. ARE COVERED UNDER A NON-DISCLOSURE AGREEMENT. SO WE'RE NOT GOING TO BE ABLE TO DIRECTLY SHARE THAT AT THIS TIME. BUT WE DO WANT YOU ALL TO BE AWARE THAT THAT IS AN OPPORTUNITY THAT WE'RE GOING TO BE EXPLORING AND TALKING TO YOU MORE ABOUT OVER THE NEXT FEW WEEKS. AND THAT'S WHY THAT'S KIND OF PROPOSED AS AT THE FRONT END OF THIS STRATEGY. AND BUT THEN AGAIN, JUST TO EMPHASIZE IT'S SEEN MORE AS A FIRST STEP THAN AS THE ONLY SOLUTION TO REACHING OUR GOALS. SO I THINK WITH THAT THAT CONCLUDES OUR PRESENTATION. ALSO WANT TO GIVE A SHOUT OUT TO SPENCER RUGGLES, WHO IS SITTING BEHIND US. AND HIS CONTACT INFORMATION IS ON THE ON THE SLIDE. BUT HE'S OUR ENERGY ANALYST, WORKING CLOSELY WITH ZACH AND I ON THIS WORK AS WELL. SO WE'RE HAPPY TO TAKE ANY QUESTIONS YOU HAVE. THANK YOU SO MUCH, ZACH. I CAN THINK I CAN SPEAK FOR EVERYBODY HERE THAT WE APPRECIATE YOUR WORK AND YOUR EFFORTS IN, IN PUTTING THIS TOGETHER AND BRINGING THIS TO THE COUNCIL. I'M GOING TO START WITH A QUESTION FIRST, IF THAT'S OKAY WITH THE REC PROCESS, YOU KNOW, MAYBE HELP EDUCATE SOME OF THE MEMBERS THAT DON'T UNDERSTAND IT AND OR THE PEOPLE WATCHING. IF YOU'RE LOOKING AT A PROJECT IN IN WESTERN KENTUCKY, HOW DOES THAT ENERGY TRANSFER TO THE CITY OF LOUISVILLE? WHAT DOES THAT LOOK LIKE? WHAT IS THE FINANCIAL IMPACT STATEMENT ON 
          [00:55:05]
THAT? AND HOW DO WE WHAT ARE THE WHAT IS THE ROI, I GUESS THERE? YEAH, THAT'S A GREAT QUESTION. 
          SO BASICALLY, UNLESS YOU'RE PUTTING SOLAR ON YOUR BUILDING AND IT'S BEHIND THE METER AND DIRECTLY CONNECTED TO YOUR ELECTRICAL PANEL, YOU'RE NOT ACTUALLY USING THOSE SAME ELECTRONS. SO IN ANY SITUATION WHERE IT'S BUILT ON THE GRID OF LGA OR A DIFFERENT KIND OF UTILITY SCALE PROJECT, IT ULTIMATELY JUST CONTRIBUTES CLEAN ENERGY TO THAT GRID. BUT IT'S NOT, YOU KNOW, ULTIMATELY IT'S ALL BLENDED. IT'S YOU CAN'T DIRECTLY SAY THAT THAT'S COMING TO YOU, BUT IT'S A WAY OF DOING ACCOUNTING AND SAYING THAT WE'RE CONTRIBUTING TO OFFSETTING OUR ENERGY COSTS. SO IN THIS SITUATION OF THE REC PROJECT THAT WE TALKED ABOUT, THAT'S ACTUALLY NOT GOING TO BE ON ELGIN'S GRID. SO IT'S GOING TO BE ON A DIFFERENT GRID. 
          ULTIMATELY, ALL THESE GRIDS ARE INTERCONNECTED, BUT IT IS A LEGITIMATE WAY TO BASICALLY CLAIM RENEWABLE ENERGY CERTIFICATES THROUGH THAT PROCESS. AND IN TERMS OF A FINANCIAL IMPACT, THAT IS GOING TO BE A NET COST. THERE WILL BE NO SAVINGS SEEN FROM THAT. BUT IT IS THE MOST COST EFFECTIVE APPROACH TO BEING ABLE TO GET PURCHASE RENEWABLE ENERGY AT THAT SCALE. AND WITH NO DISRESPECT, BUT WHAT YOU WHAT I THINK I JUST HEARD YOU SAY IS IT DOESN'T IT'S NOT ANY CHEAPER FOR US TO GO REC. IT'S JUST WE'RE GOING TO SPEND THE SAME AMOUNT OF MONEY TO JUST SAY WE'RE ENERGY EFFICIENT IN THAT CASE. IS THAT CORRECT? YEAH. SO IN THE CASE OF ENERGY EFFICIENCY AND SOLAR USUALLY AND ROOFTOP SOLAR, THERE'S USUALLY A PAYBACK OVER TIME AND COST SAVINGS. IN THE CASE OF RECS THERE WOULDN'T BE. HOWEVER, COMPARED TO THINGS LIKE POWER PURCHASE AGREEMENTS, IT IS SIGNIFICANTLY CHEAPER IN THAT SITUATION. WHAT? GO AHEAD IF I MIGHT ADD. SO BASICALLY, IN COMPARING THESE DIFFERENT OPTIONS, RECS ARE SUBSTANTIALLY CHEAPER, LIKE IN ORDER OF MAGNITUDE CHEAPER THAN ANY OTHER MECHANISM OF PURCHASING CLEAN ENERGY. AS SAMANTHA SAID, IT ISN'T AN ROI, BUT IT IS THE MECHANISM. THE COMMODITY FOR HOW CLEAN ENERGY IS PURCHASED IS PURCHASED AND TRADED. SO, AS STATED, THE GRID IS ALWAYS A BLEND OF ENERGY. EVEN WHEN WE PURCHASE FROM LGA, WE'RE NOT ABLE TO SAY IT'S COMING FROM THIS PLANT OR THAT PLANT. IT IS COMING GENERALLY FROM THE GRID. AND SO WHEN YOU'RE LOOKING AT ADDITIONALITY OF A CLEAN ENERGY PROJECT, IS IT HAVING THE ENVIRONMENTAL IMPACT, THE ECONOMIC IMPACT YOU'RE LOOKING TO SEE IS YOUR YOUR REGIONAL GRID MIX CHANGING? IS IT BRINGING MORE OF THAT GENERATION CAPACITY ONLINE? AND IN THE CASE OF A NEW PROJECT BEING PROPOSED IN KENTUCKY, THAT REC PURCHASE WOULD INCREASE THE AMOUNT OF SOLAR ENERGY SUPPLIED TO THE GRID AND WE WOULD BE RECEIVING WE WOULD BE THE ONES, THE SOLE ENTITY CLAIMING THAT CLEAN ENERGY. THANK YOU. WHAT'S THE CHANCES OF GOING WHAT IS WHAT ARE THE CHANCES OF PPA EVER HAPPENING? SO I MEAN, IT'S NOT IMPOSSIBLE. THE COST THAT WE'RE SEEING, LIKE ZACH SAID, IS AN ORDER OF MAGNITUDE HIGHER. SO THAT'S JUST SOMETHING THAT WE WOULD HAVE TO MAKE A DECISION BASED ON AVAILABILITY OF BUDGET AND THINGS LIKE THAT. BUT THERE ARE OPTIONS TO PURSUE AND WE ARE LOOKING AT THEM. IT'S JUST TO BE ABLE TO BUILD AT THIS SCALE, YOU KNOW, TO BE ABLE TO REACH 100% JUST THROUGH PPAS BY 2030 WOULD PROBABLY BE COST PROHIBITIVE. AND IF I MIGHT ADD TO ELGIN'S PARENT COMPANY, PPL, THEY DO HAVE A NET ZERO GOAL BY 2050. AND EVEN WITHIN RECENT PUBLIC SERVICE COMMISSION FILINGS, LGA DOES ANTICIPATE ADDING MORE SOLAR TO THEIR NATIVE LOAD. SO THAT IS SOMETHING THAT'S THAT'S PLANNED, BUT A BIG CONSTRAINT ON THAT IS THE STATE REGULATORY ENVIRONMENT. SO IF YOU LOOK AT ANY NEIGHBORING STATE LIKE INDIANA, OHIO, YOU'LL START SEEING GRID PENETRATION OF RENEWABLES IN THOSE STATES, LIKE 15, 20%. AND A LOT OF THAT IS BECAUSE SOME OF THESE OTHER STATES HAVE DEREGULATED MARKETS WHERE A CUSTOMER CAN GO TO ANY UTILITY AND SAY, I WANT TO PURCHASE FROM THIS UTILITY COMPANY OR THIS UTILITY COMPANY AND NEGOTIATE THE SPECIFIC PROJECT AND CONTRACT ARRANGEMENT IN KENTUCKY, SINCE IT'S A REGIONAL MONOPOLY. AND BECAUSE EVEN ELGIN'S BURDEN TO BRING NEW RENEWABLES ONLINE IS MUCH, MUCH HIGHER, OUR GRID PENETRATION IS CLOSER TO 1%. SO IT'S NOT REALLY A FACTOR OF HOW MUCH SUN IS AVAILABLE HERE OR WIND IS AVAILABLE HERE. IT'S THAT THE EVOLUTION IN THE APPROVED TARIFFS AND THE MECHANISMS TO BUY CLEAN ENERGY IS GOING TO MOVE SLOWER. IN KENTUCKY. IT WILL HAPPEN BECAUSE EVEN IN IN RECENT FILINGS, YOU'LL SEE SOLAR LISTED AS A LEAST COST ENERGY SOURCE. THAT ISN'T REALLY WHAT'S IN QUESTION, BUT ADDING IT TO OUR GRID MIX IS GOING TO BE SLOW. AND JUST SO WE'RE CLEAR, THIS IS ALL FROM METRO BUILDINGS, CORRECT? YES. AND 
          [01:00:03]
WHAT ARE THE MY LAST QUESTION. WHAT ARE THE CHANCES OR WHAT ARE THE CHANCES TO GET ALL OF THE METRO BUILDINGS DONE BY 2030? SO WITH THE RENEWABLE ENERGY CERTIFICATES, THAT'S A PRETTY SIMPLE TRANSACTION. YOU KNOW, GIVEN THAT IF WE WERE ABLE TO MAKE THAT BUDGETARY COMMITMENT, THAT WOULD KIND OF BE A PRETTY QUICK AND EASY ACHIEVEMENT. THE PPAS, BECAUSE OF THE NATURE OF THE CONTRACT AND BECAUSE OF SOME REGULATORY APPROVALS THAT NEED TO HAPPEN AND THE AND THE LEVEL OF COST AND FINANCING NEEDED, THAT COULD ADD SOME TIME. BUT IT IS FEASIBLE ALSO, OR AT LEAST A CERTAIN PERCENTAGE, LIKE IF YOU'LL SEE THIS GRAPH, WE HAVE A BUMP WHERE THERE'S A SMALLER PERCENTAGE THAT'S KIND OF MORE ACHIEVABLE IN THE SHORT TERM AND THEN KIND OF AN INCREASE ON THAT. SO WE THINK THAT A CERTAIN AMOUNT OF, OF A PPA PURCHASE COULD BE REASONABLE BY 2030. BUT YEAH, THE SCALE FOR THAT PPA OF THE GOAL OF 100% MEETING THAT SCALE BY 2030 IS EXTREMELY UNLIKELY. THERE HAS BEEN MULTIPLE EXAMPLES IN THE STATE OF EXECUTED CONTRACTS BEING SIGNED, PROJECTS GETTING THROUGH DESIGN DESIGN PHASES, BUT FAILING AT SOME POINT OF THE PERMITTING AND APPROVAL PROCESS. AND I'M GOING TO SEE YOU IN A SECOND, ANDREW. BUT YOU'VE SUBMITTED YOU'VE MENTIONED A FEW TIMES THE BUDGETARY COMMITMENT. WHAT IS THAT NUMBER LOOK LIKE, AND HOW MUCH MORE DOES THAT COST THE TAXPAYER? YEAH. SO UNFORTUNATELY, BOTH THE CONVERSATIONS WITH LGA AND THE RENEWABLE ENERGY CERTIFICATE PROVIDER, THE COSTS ARE BECAUSE THEY'RE STILL AN EARLY DISCUSSION STAGE. THEY ARE BOTH COVERED UNDER CONFIDENTIALITY FOR METRO. SO THAT'S NOT SOMETHING WE CAN PUBLICLY SHARE. BUT WE CAN FOLLOW UP WITH INDIVIDUAL COUNCIL MEMBERS. AND WHEN IT'S WHEN IT'S WHEN WE'RE LEGALLY ABLE TO SHARE THAT WE WILL DEFINITELY DO SO. YEAH. THANK YOU, COUNCILMAN OWEN. THANK YOU CHAIR. THANK YOU GUYS. 
          REALLY INFORMATIVE PRESENTATION. MY FIRST QUESTION IS A VERY, VERY SIMPLE, SIMPLE ONE. I HAVE HEARD AND I DON'T KNOW IF IT'S TRUE OR NOT, THAT METRO GOVERNMENT IS GUINEA'S LARGEST CUSTOMER. DO YOU KNOW IF THAT'S TRUE? I DON'T BELIEVE THAT'S TRUE. AND IF THAT'S NOT TRUE, WHERE DO WE FALL IN THAT? IN THAT PECKING ORDER? I DON'T I DON'T THINK THAT WE WOULD GET CLEAR LANGUAGE ON WHERE WE FALL IN THAT PECKING ORDER, BUT THE SIZE OF OUR PURCHASE IS NOT VERY LARGE IN COMPARISON TO SOME OF, LIKE THEIR INDUSTRIAL CUSTOMERS, OTHER VERY LARGE COMMERCIAL ENTITIES. WE DO PURCHASE A NOTABLE AMOUNT OF ENERGY, BUT THE COMPLEXITY FOR WHY WE DON'T QUALIFY UNDER CURRENT APPROVED TARIFFS IS THAT WE ARE KIND OF SEEN AS A COLLECTION OF VERY SMALL CUSTOMERS BECAUSE UNLIKE A INDUSTRIAL CUSTOMER, WHERE YOU HAVE ONE POINT OF SERVICE AND A VERY LARGE CONTRACT CAPACITY, WE HAVE 1400 UTILITY ACCOUNTS SPREAD ALL OVER THE CITY. AND MANY OF THOSE UTILITY ACCOUNTS ARE THE SCALE YOU MIGHT SEE LIKE OF A OF A HOUSEHOLD. AND SO THOSE, THOSE TARIFFS DON'T CURRENTLY HAVE A MECHANISM THROUGH WHICH YOU COULD ARRANGE LIKE A PPA. AND AGGREGATING THEM IS NOT WOULD NOT QUALIFY UNDER THE CURRENT TARIFFS EITHER. BUT IF THEY WERE ABLE, IF WE WERE ABLE TO AGGREGATE THEM, WOULD WE QUALIFY IN TERMS OF OUR TOTAL USAGE? IF YOU AGGREGATED ALL OF OUR USAGE, WE WOULD WE WOULD BE REACHING THAT THRESHOLD. WE WOULD QUALIFY. WE WOULD STILL NOT BE AS LARGE AS THEIR LARGEST INDUSTRIAL CUSTOMERS, BUT WE WOULD QUALIFY. SO IT'S A LITTLE BIT DISINGENUOUS TO BREAK US UP IN A WAY THAT MAKES US SEEM LIKE WE'RE NOT AS BIG A USER AS WE OTHERWISE ARE. LET'S SEE HERE I KEEP HEARING ABOUT CINCINNATI'S SOLAR FARM THAT THEY HAVE DONE, AND WHEN I LOOK BACK AT THE SLIDES, WE HIGHLIGHTED IN IN WHAT OPTIONS CAN LMG CONSIDER? THERE'S THE KIND OF THE ARROWS. WHAT WHERE DOES THAT SOMETHING LIKE THAT I MEAN I UNDERSTAND THAT IT'S AN OFF SITE POWER PURCHASE AGREEMENT. IS THAT THE WAY THE CINCINNATI ONE IS SET UP? YES. SO THAT IS ACTUALLY NOT AN OPTION THAT WE HAVE IN OUR CURRENT CURRENT REGULATORY ENVIRONMENT. BUT THAT'S WHAT ZACH WAS DESCRIBING EARLIER, WHERE SOME CUSTOMERS IN CITIES HAVE THE OPPORTUNITY TO DIRECTLY BID OUT A RENEWABLE ENERGY PROJECT AND GET THAT BUILT THROUGH THEIR UTILITY, AND IF THERE'S NOT A MONOPOLY ON THE UTILITY, THEN THOSE CONTRACTS ARE FACILITATED WITH GREATER EASE. BUT WE DON'T HAVE THE EXACT MECHANISM THAT CINCINNATI USED. BUT THEY ARE IN A DEREGULATED UTILITY MARKET ENVIRONMENT. YEAH. AND SO WHEN WE LOOK AT THIS CHART THAT YOU HAVE UP IN FRONT OF US HERE, AND 
          [01:05:01]
WE SEE THE BUMPS IN OFFSITE POWER PURCHASE AGREEMENTS, ONE OCCURS, IT LOOKS LIKE IN 2027 AND THE OTHER 1 IN 2034. WHAT SIGNIFICANCE ARE THOSE TWO DATES. SO THE SMALLER BUMP WHILE WHILE THAT'S NOT A SPECIFIC DATE, THAT'S JUST A TIME FRAME THAT WE THINK IT COULD BE POSSIBLE. THE SMALLER BUMP WOULD REFLECT A PROBABLY MORE LIKE A GREEN TARIFF. OPTION TWO IT'S NOT A TRUE CLASSIC PPA BECAUSE THAT IS WHAT WE CURRENTLY DON'T QUALIFY FOR A GREEN TARIFF. 
          OPTION TWO IS SOMETHING WE COULD QUALIFY FOR, BUT THAT'S WHERE IT FALLS WITHIN THAT CON OF IT NOT QUITE BEING THE CAPACITY WE WOULD NEED TO MEET OUR GOAL, AND GENERALLY BEING LESS COST EFFECTIVE THAN A PPA WOULD BE. AND IF I COULD ADD TO THAT, I THINK PART OF THE CONSTRAINT, AND CORRECT ME IF I'M WRONG, IS THAT WITH GREEN TARIFF OPTION TWO, YOU ARE LIMITED BY JUST BEING ABLE TO MEET YOUR DAYTIME PEAK DEMAND, WHICH IS THE MAXIMUM THAT YOU WOULD USE AT ANY GIVEN TIME VERSUS YOUR TRUE NET ZERO, WHICH IS YOUR ABSOLUTE MAXIMUM YOU'D REACH THROUGHOUT THE YEAR. SO THEY STRUCTURED THAT BECAUSE OF HOW NET METERING WORKS AND HOW THE TARIFFS WORK IN THAT SITUATION. SO IT REALLY WOULD NOT MAKE FINANCIAL SENSE TO OVER BUY IN THAT SITUATION AND TO JUST BUY WHAT THE PEAK DEMAND IS. SO THAT KIND OF REPRESENTS THAT MODELING THERE. 
          AND THEN THE NEXT SPIKE AGAIN IS THE GREEN TARIFF OPTION THREE, WHICH WOULD BE NOT SOMETHING WE'RE ELIGIBLE FOR RIGHT NOW, BUT POTENTIALLY IN THE FUTURE IF REGULATION ALLOWS IT. AND I JUST ONE MORE QUICK ONE AND THEN I'LL JUMP BACK IN THE QUEUE. BUT AS FAR AS LIKE THE REAL LOW HANGING FRUIT, LIKE THE LED LIGHTS AND THAT SORT OF THING, HOW FAR THROUGH THAT PROCESS ARE WE? HOW MUCH MORE LOW HANGING FRUIT DO WE HAVE TO KIND OF GET SOME EASY WINS? I WOULD SAY THAT THERE'S AN EXTENSIVE AMOUNT OF WORK AHEAD OF US ON THAT FRONT. THERE'S FIVE BUILDINGS WE'RE CURRENTLY SCOPING FOR LED CONVERSIONS. THERE'S PROBABLY. 60 MORE THAT WE COULD IDENTIFY. 
          A LOT OF THEM ARE ARE SMALLER FACILITIES WHERE WE'RE LOOKING AT SOME LARGER, MORE AMBITIOUS PROJECTS THIS THIS YEAR. BUT THAT'S THAT'S JUST ON LIGHTING ALONE. THERE'S STILL A GOOD NUMBER OF HVAC SYSTEMS, WELL PAST LIFE EXPECTANCY, THAT ARE ALREADY KIND OF ON DEFERRED MAINTENANCE LISTS. AND AS THOSE COME UP FOR REPLACEMENT, THAT'S WHERE WE WANT TO MAKE SURE THAT WE DON'T JUST COME IN WITH A LIKE FOR LIKE IF IT'S AN OLDER, OUTDATED TYPE OF TECHNOLOGY. BUT WE ENHANCE THAT, TAKE THE OPPORTUNITY TO MOVE TO A HEAT PUMP, MAYBE GEOTHERMAL, ANYTHING THAT DOES HAVE A GOOD ROI AND MAKES SENSE FOR THE FACILITY. AND, AND I THINK THIS GRAPH IS KIND OF A GOOD INDICATOR OF LIKE WHEN YOU SEE THAT LINE TAPER DOWN, THAT'S BETWEEN 25 AND 2040. THAT'S KIND OF LIKE A REALISTIC ESTIMATE OF WHAT WE THINK IS ACHIEVABLE THROUGH ENERGY EFFICIENCY. SO THAT'LL BE AN ONGOING PROCESS THROUGH THE WHOLE TIME FRAME. YES, EXACTLY. 
          THANK YOU. I'VE GOT COUNCILMAN LINENGER IN THE QUEUE RIGHT NOW. FIRST. THANK YOU. CHAIR. MY FIRST QUESTION. YOU KNOW, I UNDERSTAND THAT YOU CANNOT TALK ABOUT THE SPECIFICS OF THE NEGOTIATION FOR THE RENEWABLE ENERGY CREDIT FOR THIS PROJECT. CAN YOU TALK IN GENERAL TERMS ABOUT WHAT THE AVERAGE COST OF HIGH QUALITY RECS ARE PER, YOU KNOW, TO, TO REACH, SAY, 80,000 KILOWATT HOURS AS PER THE CHART? WELL, I THINK TO BE ON THE SAFER SIDE BECAUSE OF THE OF THE NDA, IT'S PROBABLY BEST FOR US NOT TO THROW OUT A RANGE OR A NUMBER JUST BECAUSE I DON'T MEAN ABOUT THIS PROJECT. I MEAN WHEN BECAUSE THIS, AS YOU MENTIONED, IT, IS A COMMODITY. IT IS TRADED. SO AT THE CURRENT MARKET, WHAT IS AN AVERAGE, YOU KNOW, A BALLPARK FIGURE OF WHAT, 80,000 KILOWATT HOURS OF REC WOULD REPRESENT FINANCIAL INVESTMENT. SO I THINK PER UNIT DEPENDING ON THERE'S A RANGE OF LOW QUALITY TO HIGH QUALITY CREDITS. SO I THINK WE'VE HEARD ANYTHING FROM TWO AND A HALF TO $20. IT'S I KNOW IT'S A PRETTY WIDE RANGE, BUT AGAIN, THE DIFFERENCE IS, YOU KNOW, IF YOU HAVE THOSE OLDER CREDITS THAT THAT HAVE BEEN ONLINE FOR TEN YEARS AND THEY'RE JUST TRYING TO CONTINUE TO SELL, SELL RECS VERSUS IT'S A NEW PROJECT, IT'S COMING ONLINE AND YOU'RE GETTING IN EARLY. IT CAN INCREASE THE COST. AND THOSE THOSE FIGURES WOULD BE PER MEGAWATT HOUR. YEAH. THE REASON THAT THERE'S SUCH A LARGE RANGE, AND IT'S DIFFICULT TO ANSWER THAT IS BECAUSE THE COST IS VERY HIGHLY VARIABLE, DEPENDING UPON WHAT PART OF THE COUNTRY YOU'RE IN AND WHERE THE PROJECT IS COMING ONLINE. SO IN STATE OPPORTUNITIES, OF WHICH WE'VE SEEN EXTREMELY FEW, THERE IS THERE'S A VERY LARGE MARKET FOR RECS, BUT SO FAR NO OPPORTUNITIES TO PURCHASE THEM IN STATE SHORT OF SHORT OF THIS ONE. YEAH. MY UNDERSTANDING OF THAT LIKE, YOU KNOW, KIND OF CLASSIC SUPPLY DEMAND GRAPH 
          [01:10:03]
WOULD BE WOULD THEN PLACE THAT ON THE HIGH END, WHICH AGAIN THIS IS FOR NOT YOU KNOW, THIS IS FOR A CREDIT. THIS IS AN ACCOUNTING MEASURE TALKING ABOUT, YOU KNOW, KILOWATT HOURS OF CLEAN ENERGY PRODUCED IN THE GRID NATIONWIDE. HOWEVER, YOU KNOW, CLOSE OR LOCALLY SOURCED JOB CREATING WHATEVER SORT OF, YOU KNOW, POLITICAL APPLICATION THAT WE WANT TO PUT TO THAT. AND SO AND THEN WE WOULD THEREFORE BE IN COMPETITION, SAY, WITH LEXINGTON OR ANY OTHER MUNICIPAL GROUP THAT IS PROBABLY ALSO LOOKING FOR THE SAME SORT OF RETURNS ON CLEAN ENERGY, I GUESS. THEN MY NEXT QUESTION WOULD BE, YOU KNOW, LOOKING AT THIS GRAPH AND WE'RE TALKING ABOUT, YOU KNOW, 2030, WE HAVE A GOAL FOR METRO GOVERNMENT AND 2035, WE HAVE ANOTHER GOAL FOR METRO GOVERNMENT THAT IS A HIGHER STANDARD. WE ARE HERE TRYING TO REALLY SQUEEZE TO GET TO OUR 20, 30 AND 35 GOALS THROUGH THESE MECHANISMS. I DON'T SEE 2040 POSSIBLE ON THIS GRAPH. OUR GOALS FOR 2040. AM I CORRECT IN SAYING THAT? WELL, I WOULDN'T SAY THEY'RE IMPOSSIBLE JUST BECAUSE I'M NOT TRYING TO LIKE, HAVE SOME SORT OF LIKE, YOU KNOW, DOOM OR PESSIMISM ABOUT, YOU KNOW, CLIMATE CHANGE AND EVERYTHING I AM TRYING TO SAY, AS OUTLINED WITH THESE STRATEGIES, WE THIS IS THIS IS THE CITY OF LOUISVILLE ABSOLUTELY STRAINING INCLUDING AND I APPRECIATE THE HONESTY SAYING THIS IS NOT WHAT A LOT OF PEOPLE WOULD THINK OF IN TERMS OF WE'RE MEETING OUR CLEAN ENERGY, YOU KNOW, NOT EVEN REQUIREMENTS OF THE RESOLUTION, BUT RATHER LIKE, YOU KNOW, ACTUAL MATERIAL NEED AND DEMAND BECAUSE, YOU KNOW, WE'RE ALL GOING TO DIE. SO. HOW DO WE GET TO 2040 ON THIS STRATEGY? I, I DON'T SEE IT. SO THIS STRATEGY IS SPECIFIC TO WHAT WE AS A CUSTOMER AND A MUNICIPALITY WOULD DO WHEN IT COMES TO COMMUNITY WIDE CLEAN ENERGY. THAT WOULD REQUIRE LG AND COMPLETELY TRANSFORMING THEIR GRID, AND IT WOULD REQUIRE A LOT OF DEMAND SIDE STRATEGIES ON INDIVIDUAL HOMES AND BUSINESSES AS WELL AS SUPPLY SIDE STRATEGIES. SO A LOT OF THAT WE SEE RIGHT NOW POSSIBLE THROUGH ADVOCACY, MAINLY BECAUSE WE DON'T HAVE DIRECT CONTROL OVER LG GENERATION SOURCES. AND, YOU KNOW, WE OFFER PROGRAMS THROUGH INCENTIVES LIKE SOLARIZE LOUISVILLE AND OTHER, YOU KNOW, ENERGY EFFICIENCY INCENTIVES. SO THAT'S OTHER MECHANISMS THAT WE AS METRO GOVERNMENT HAVE TO USE MARKET TOOLS TO BASICALLY INCENTIVIZE THAT SHIFT. BUT IT IS GOING TO BE A LOT OF ADVOCACY AND INCENTIVES TO MAKE THAT TRANSITION. RIGHT. BUT I ASSUME THAT, YOU KNOW, OUTSIDE OF A FEW CUSTOMERS THAT DO, YOU KNOW, OUTRANK US NO MATTER HOW YOU AGGREGATE US OR DON'T, THE MAJORITY OF LG CUSTOMERS WOULD BE FACING THE SAME CONSTRAINTS WE DO, EXCEPT FOR THE MAJORITY OF THE MANY, MANY TIMES WORSE IN TERMS OF SCALE, AFFORDABILITY. WELL, MY WHAT I'M TRYING TO GET TO IS, IS THERE A PATHWAY TO MEET THE 2040 DEMAND BEYOND MUNICIPALIZATION, IF I MIGHT ADD, PARTIAL OR OTHERWISE? ONE ONE CHALLENGE WITH US IN THIS PARTICULAR GOAL IS WE'RE KIND OF IN THAT MIDDLE SIZE RANGE OR AN AGGREGATE OF MANY SMALL CUSTOMERS. WELL, IT'S NOT EASY FOR ANYONE TO MEET THIS GOAL OVERNIGHT. LGA DOES ACTUALLY HAVE MORE PROGRAMS THAT ARE AVAILABLE TO BOTH SMALLER CUSTOMERS AND LARGER CUSTOMERS. WE ARE KIND OF IN A IN AN AWKWARD IN-BETWEEN THAT MAKES IT MORE CHALLENGING. SO THERE ARE THERE ARE OPTIONS. THERE'S OTHER PROGRAMS. BUT I WOULD ALSO JUST REMIND THAT PPL DOES STILL HAVE A PRETTY AGGRESSIVE, AGGRESSIVE NET ZERO GOAL BY 2050. THAT IS STILL LG PARENT COMPANY. AND WHILE THINGS IN KENTUCKY MAY MAY MOVE SLOWER, WE ALREADY ARE SEEING GRID PENETRATION OF RENEWABLES ACCELERATE IN OTHER STATES. AND THAT CAN'T IS SOMETHING I WOULD STILL EXPECT TO SEE HERE, JUST MAYBE ON A LONGER TIME FRAME. RIGHT. PEOPLE HOWEVER, IS NOT LG AND THAT'S THE THAT'S THE PARENT COMPANY. 
          AND NOW WE'RE BACK TO THE SAME CONVERSATION ABOUT WHAT IS THE ADVANCEMENT GOALS OF LOUISVILLE METRO AND THE POPULATION THAT IS BEING SERVED. YOU KNOW, IF PEOPLE, YOU KNOW, A PUBLICLY TRADED COMPANY CAN OPERATE, YOU KNOW, IN ANTARCTICA IF THEY WANT TO AND, YOU KNOW, REALLY TAKE 
          [01:15:02]
ADVANTAGE OF SOME, YOU KNOW, LOCAL ADVANTAGES IN SOLAR PRODUCTION SIX MONTHS OF THE YEAR, IF THEY PRODUCE A BUNCH OF CLEAN ENERGY THERE, BUT THEY'RE STILL BURNING COAL HERE. THAT'S THAT'S NOT A BENEFIT TO THE PEOPLE WHO LIVE HERE. AND AGAIN, THAT'S STILL NOT MEETING WHAT PEOPLE IN THE CITY OF LOUISVILLE WHEN THEY SAY, WE WANT CLEAN ENERGY HERE IN LOUISVILLE, THAT THAT'S NOT THAT'S NOT HITTING THE MARK FOR THOSE PEOPLE, IF WE'RE BEING HONEST. I THINK THAT I THINK THAT IT'S IMPORTANT THAT WE ARE HONEST ABOUT ALL OF THESE DIFFERENT STRATEGIES, SORT OF MUNICIPALIZATION. WE ARE STILL BEHOLDEN TO A COMPANY THAT IS PLANNING TO BURN COAL FOR THE REST OF OUR LIVES, AND IT'S GOING TO AFFECT THE PEOPLE WHO LIVE HERE. IT DOES AFFECT US. 
          AND THAT MUNICIPAL REMOVING CONSIDERATION OF MUNICIPALIZATION AND I'M GOING TO BE HONEST, I REALLY DON'T UNDERSTAND SITING SOLELY COST FOR REMOVING MUNICIPALIZATION FROM CONSIDERATION WHEN THERE IS, YOU KNOW, LAID OUT IN THE KRS EMINENT DOMAIN, ESPECIALLY WHEN YOU'RE NOT TALKING ABOUT JUST MUNICIPAL LIGHTING FOR LMG, BUT RATHER FOR THE ENTIRE COMMUNITY THAT THOSE THERE'S MAYBE POLITICAL COSTS THERE. AND I'M SURE THAT LG HAS REPRESENTATIVES IN THE ROOM ARE NOT THRILLED WITH ME AT THE MOMENT. AND THERE'S A POLITICAL COST THERE. BUT THE FACT REMAINS THAT THIS IS AN OPTION, AND I THINK IT'S IMPORTANT WHEN WE TALK ABOUT MEETING A 2040 GOAL, TO UNDERSTAND THAT THIS WILL NEVER GET US TO 2040. AND I THINK IT'S IMPORTANT THAT WE'RE HONEST ABOUT THAT. THANK YOU. YEAH. AND JUST TO ADD TO THAT, THE SCOPE OF OUR STUDY WAS JUST THE, YOU KNOW, METRO BUILDINGS AND WE CAN'T SHARE THE PRICING ON THAT. BUT THAT WAS THE ESTIMATE OF THAT WAS $30 MILLION A YEAR. AND THAT WOULD BE COST PROHIBITIVE. BUT IT'S ALSO BECAUSE THERE'S NO ECONOMIES OF SCALE COMPARED TO IF YOU WERE DOING FULL MUNICIPALIZATION. SO THAT'S ONE OF THE REASONS THAT PARTIAL MUNICIPALIZATION PROBABLY DOES NOT MAKE SENSE. BUT I KNOW THERE HAVE BEEN PAST EFFORTS FOR FULL MUNICIPALIZATION, AND THERE'S BEEN OTHER CHALLENGES WHY THAT DID NOT MATERIALIZE. BUT YEAH, YEAH, JUST A QUICK BECAUSE THERE WAS A RESPONSE. I JUST WANT TO SAY THAT YES, THERE'S THE DIFFERENCE IN SCALE, BUT AND TALKING ABOUT THE THINGS THAT WOULD BE AVAILABLE TO US IN STATE LAW FOR FULL MUNICIPALIZATION, THERE IS ALSO A DIFFERENCE BETWEEN FULL MUNICIPALIZATION AND THE METRO GOVERNMENT ONLY IN TERMS OF THE BONDS WHICH ARE LAID OUT BY STATE LAW. SO I JUST WANTED TO MAKE SURE THAT EVERYONE UNDERSTOOD THAT PART TOO. THANK YOU. THANK YOU COUNCILMEMBER. I APPRECIATE EVERYBODY'S COMMENTS. THIS COULD GO ON PROBABLY FOR ANOTHER HOUR. WE ARE OVER TIME AND I OH, COUNCILWOMAN RAYMOND BASS AND RUI QUESTIONS. IF YOU ALL CAN JUST KIND OF DIRECT THEM TO THE OFFICE OF SUSTAINABILITY, AS WE KIND OF WRAP UP TODAY, IF THAT'S OKAY. WE HAVE OTHER MEETINGS. I HAVE SOMEWHERE TO BE AT 430. WELL, I'M THE CHAIR. I CAN I CAN SUBMIT IT TO. LIKE IF WE CAN GO LIKE FIVE MINUTES OR LESS. OKAY. CAN WE GO FIVE MINUTES OR LESS? OKAY. COUNCILWOMAN. BEST. HE KIND OF ADDRESSED WHAT I WAS KIND OF GOING AFTER, BUT THEY CAN GO AHEAD, COUNCILWOMAN RUBY. OKAY, OKAY. THANK YOU VERY MUCH. SO HE WAS TALKING SOMETHING ABOUT MUNICIPALIZATION. CAN YOU SPEAK VERY BRIEFLY AS TO WHAT YOUR STUDY SHOWED? MUNICIPALIZATION WOULD COST? YES. AND I THINK WE MIGHT HAVE A. WELL, ACTUALLY, NO, SORRY, I THOUGHT I HAD A BACKUP SLIDE ON THAT. I'M HAPPY TO SHARE THAT STUDY LATER, BUT ESSENTIALLY IT INVOLVED BUILDING OUT A GRID OVER THE EXISTING GRID BECAUSE WE WOULD NOT BE REPLACING, WE WOULD BE BUILDING AN ADDITIONAL UTILITY, AND IT WOULD INVOLVE CONNECTING KEY LOADS OF METRO GOVERNMENT, WHICH ANOTHER CHALLENGE IS BECAUSE BUILDINGS ARE SPREAD OUT AND IT'S NOT ALL IN ONE PLACE. THE TRANSMISSION AND DISTRIBUTION INFRASTRUCTURE WOULD BE QUITE EXPENSIVE. IN THAT STUDY, WE ALSO ADDED THE WATER COMPANY'S LOAD JUST TO SEE WHAT, YOU KNOW, EXPANDING THAT LOAD WOULD DO TO COSTS. AND THE SUMMARY OF THE STUDY WAS THAT IF WE BASICALLY COMBINED ALL OF LOUISVILLE METRO'S LOADS AND ALL OF LOUISVILLE WATER COMPANY'S LOADS AND BUILT OUT THE INFRASTRUCTURE TO SUPPORT JUST THOSE TWO, AND I THINK THE PLAN WAS TO CONNECT THE GRID ACROSS THE RIVER TO DUKE ENERGY IN INDIANA, WHICH IS CONNECTED TO A LARGER REGIONAL 
          [01:20:01]
TRANSMISSION ORGANIZATION CALLED MYSO, WHERE YOU CAN BUY CLEAN ENERGY OFF THE GRID THERE. THAT THAT WOULD COST ABOUT $30 MILLION A YEAR THROUGH FUNDED THROUGH BONDS TO BE ABLE TO ACHIEVE THAT. AND BASICALLY YOU WOULD HAVE TO TRIPLE THAT LOAD IN ORDER TO MAKE IT COST PARITY FOR ELECTRIC BILLS THAT WE'RE CURRENTLY PAYING. SO THAT WAS THE RESULT OF THAT ANALYSIS OKAY. SO YOU'D HAVE TO CONSTRUCT AN ENTIRELY NEW POWER GRID. YES. OKAY. I CAN TOTALLY UNDERSTAND THAT. SO I WANT CHANGE THE ANGLE A LITTLE BIT. AS I WAS LISTENING TO DIFFERENT DISCUSSIONS AROUND SEPARATE UTILITY SUPPLIES IN THE EVENT OF A INDUSTRY COMING IN THAT WANTS TO USE AN AWFUL LOT OF ENERGY, WOULD THEY BE? IT SOUNDS LIKE WHAT I'M HEARING, THEY WOULD NOT BE PERMITTED TO BRING THEIR OWN ENERGY SUPPLY AND SOURCE IN, IN A SENSE OF SOLAR, THAT THEY WOULD BE REQUIRED TO HAVE THEIR OWN SUPPLY. CAN YOU GO INTO THAT A LITTLE MORE? I THINK YOU KNO&-P. SO IN CASE OF LARGE CUSTOMERS OR LARGE LOAD DEMANDS THAT WANTED CLEAN ENERGY, THEY WOULD HAVE THE OPTION TO EITHER, AGAIN, DO IT KIND OF SIMILAR LIST OF OPTIONS AS US. THEY WOULD EITHER BE ABLE TO BUILD IT ON THEIR OWN FACILITY, OR THEY WOULD HAVE TO BUY IT THROUGH ONE OF THE OPTIONS THAT LG OFFERS TO THEM. OKAY, AND ONE LAST QUESTION. YOU REFERENCED THE LIMIT OF 45KW FOR THE SIZE OF A SYSTEM FOR A NET METERING. SO HOW BIG IS HOW MUCH POWER IS 45KW FOR A POINT OF REFERENCE FOR PEOPLE, A POINT OF REFERENCE FOR THAT. OUR SYSTEMS AT IROQUOIS LIBRARY, FIRE ENGINE EIGHT AND SOUTHWICK WERE PRETTY CLOSE TO THAT LIMIT. AND THEY DID GENERATE ABOUT THEY SHOULD GENERATE ABOUT HALF OF THOSE BUILDINGS ENERGY. SO THAT SYSTEM SIZE LIMIT WOULD STILL APPLY TO MUCH LARGER BUILDINGS. AND OF COURSE IT WOULD BE A MUCH SMALLER PERCENTAGE. IN THOSE CASES, YOU CAN BUILD LARGER SOLAR ARRAYS, BUT YOU WOULD NOT BE QUALIFYING FOR NET METERING. 
          YOU WOULD BE DOING UNDER A DIFFERENT TYPE OF TARIFF, WHICH HAS ITS OWN FINANCIAL DISADVANTAGES. OKAY. THE SO THAT'S KIND OF A NEW ONE FOR ME. SO YOU'RE FORCED FOR YOUR FIRST 45KW COULD APPLY FOR NET METERING, BUT THAT BEYOND THAT WOULD NOT ESSENTIALLY. YEAH. 
          OKAY. THANK YOU VERY MUCH. THANK YOU. COUNCILWOMAN RAYMOND, WE HAVE TWO MINUTES. OKAY. SO I WANT TO COME OUT OF THE WEEDS AND ASK, AM I CORRECT THAT THERE'S NOT, LIKE, A PUBLIC FACING TRACKER TO SHOW OUR RESIDENTS THE PROGRESS TO GOAL? NO, NOT EXCLUDING THE ONE THAT WE JUST SHOWED YOU, WHICH WE DEVELOPED RECENTLY TOWARDS OUR 2030 GOALS. IS THIS ONLINE? NOT YET. NO, BUT THE INTENTION IS TO GET IT ONLINE. AND I'M I'VE BEEN LOOKING AT THIS FOR HALF AN HOUR, AND I THINK OUR AVERAGE NEIGHBOR WOULD REALLY APPRECIATE. AND I UNDERSTAND THE COMPLEXITY AND THE NUANCE HERE. BUT OUR AVERAGE NEIGHBOR WOULD APPRECIATE A THERMOMETER. RIGHT. 
          AND HOW ARE WE DOING? AND WHEN YOU TALK ABOUT HOW IMPORTANT ADVOCACY IS, WE HAVE TO TELL PEOPLE WHERE WE'RE AT, RIGHT? SO THEY KNOW WHEN THEY NEED TO TURN UP THE ADVOCACY AND WHAT THEY'RE EVEN ADVOCATING FOR. RIGHT. SO I'D LOVE TO WORK WITH YOU GUYS TO LOOK AT EXAMPLES, MAYBE THAT OTHER CITIES OR STATES HAVE PULLED TOGETHER WAYS THAT WE CAN TELL PEOPLE, LOOK, WE'RE DOING IT OR WE'RE NOT DOING IT, AND HERE'S WHY OR WE'RE NOT DOING IT, AND IT'S IMPOSSIBLE UNTIL THIS AND THAT HAPPENS, OR TO MAKE IT POSSIBLE, IT'S GOING TO COST X PEOPLE TO ADVOCATE FOR THE FOLKS WHO ARE HERE TODAY. THANK YOU FOR BEING HERE. THEY'RE HOLDING UP SIGNS SAYING CLEAN ENERGY BY 2040. THEY'RE NOT HOLDING UP A SIGN THAT SAYS 30 MILLION PER YEAR FOR THE NEXT THREE YEARS IN THE BUDGET. RIGHT. BECAUSE WE DON'T HAVE THE TOOLS TO KNOW THAT THAT'S WHAT WE NEED TO BE ADVOCATING FOR. ALSO, WHEN IT COMES TO LOW HANGING FRUIT, WOULD LOVE TO WORK WITH YOU ALL AND FOR YOU ALL TO FEEL FREE TO COME TO US AND OTHER COUNCIL PEOPLE AND SAY, DID YOU KNOW THAT THE LOUISVILLE TENNIS CENTER AND JOE CREASON PARK IS NOT USING LEDS RIGHT NOW? AND IT COULD, AND THAT YOUR OFFICE COULD FUND THAT? AND I'D SAY, LET'S DO THAT. RIGHT. SO WHEN IT COMES TO THE LOW HANGING FRUIT, I HOPE THAT WE CAN BREAK DOWN SOME OF THE BARRIERS AND JUST MEET ONE ON ONE AND START MAKING PROGRESS AT THE DISTRICT LEVEL. WE APPRECIATE THAT. THANK YOU. AND ALSO THANK YOU FOR YOUR PATIENCE WITH THE ACRONYMS AND THE TECHNICALITIES THAT WE'RE ALWAYS, YOU KNOW, OPEN TO FEEDBACK ABOUT HOW WE CAN BETTER COMMUNICATE. YEAH. THANK YOU ALL. HAVE A GREAT DAY. THANK YOU. 
          THANK. YOU. THANKS.
* This transcript was compiled from uncorrected Closed Captioning.