San Diego Environment Committee Meeting - October 30, 2023

Note: The meeting transcript references the date as October 12, 2023, but the provided metadata specifies October 30, 2023. This summary uses the metadata date.

The Environment Committee of the San Diego City Council met on Thursday, October 30, 2023, chaired by Councilmember Joe LaCava. The meeting covered a consent item, a presentation from the California State Auditor on utility rates, a resolution calling for CPUC reforms, updates on San Diego Community Power, Senate Bill 1383 organic waste implementation, and the Pure Water program. Public testimony was heard on all items.

Consent Calendar

• Item 1: First Amendment to agreement with AON Risk Insurance Services West Inc. for the Pure Water Owner Controlled Insurance Program. Approved 3-0 (Councilmember Campillo absent).

Public Comments & Testimony

• Numerous speakers addressed non-agenda items: a resident complained about a ceramics kiln in a residential zone; Kelly Linden (Building Electrification Coalition) requested full CAP funding; speakers raised concerns about tobacco environmental pollution, marijuana cultivation impacts, utility surveillance contracts, housing crisis, and smoke-free multi-unit housing.
• On the State Auditor report (Item 3), multiple speakers from Public Power San Diego, Climate Action Campaign, and others urged the committee to act on findings that SDGE exceeded its authorized rate of return in 9 of the last 10 years. Speakers criticized SDGE profits, lack of CPUC oversight, and called for public power or municipalization.
• On the resolution (Item 2), speakers supported the resolution but also urged stronger action, including financial penalties, return of overcharges, and investigation into SDGE’s political spending.
• On the San Diego Community Power update (Item 6), speakers praised progress but noted confusion among ratepayers about charges and requested clearer communication. Some advocated for public ownership of infrastructure.
• On SB 1383 implementation (Item 4), speakers praised the rollout and education efforts, but raised concerns about compliance by large generators like the San Diego Zoo and SDGE, and about visual pollution from billboards.
• On the Pure Water update (Item 5), a speaker asked about the program's net energy goals and integration with community power. Others expressed skepticism about the cost and necessity, with one speaker calling the project a “scam.”

Discussion Items

• Item 3: State Auditor Report on Electricity and Natural Gas Rates – Laura Kearney and Chris Patel from the California State Auditor’s Office presented findings from Report 2022-115. Key conclusions: SDGE’s electricity rates nearly doubled from 2016 to 2023; SDGE exceeded its authorized rate of return in 9 of the last 10 years; operating expenses increased 5% for electricity and 27% for natural gas; wildfire mitigation costs and reduced sales due to solar contributed; CPUC and Cal Advocates lack effective monitoring of balancing accounts and ratepayer transparency. The committee discussed the need for CPUC to require utilities to justify cost overruns and for Cal Advocates to increase audit coverage. Chair LaCava and Vice Chair von Wilpert expressed strong concern. The IBA and mayor's office offered brief updates.
• Item 2: Resolution Calling on CPUC and Public Advocates Office – Vice Chair von Wilpert introduced a resolution requesting the City Attorney draft a council resolution urging the CPUC and Cal Advocates to implement the state auditor’s recommendations. The resolution highlights SDGE’s consistently higher-than-authorised returns and lack of safeguards. Approved 3-0.
• Item 6: San Diego Community Power Update – COO Jack Clark reported that SDCP now serves nearly one million meters across six cities and unincorporated county areas. It offers Power On (54% renewable) and Power 100 (100% renewable). Rates are 1–2% lower than SDGE overall. About 96% customer retention. Programs include a Community Power Plan, energy efficiency grants, workforce development, and a local infill plan targeting 15% local renewables. A community solar project will serve disadvantaged communities with 35–45% rate reductions. The committee praised progress and discussed geothermal opportunities and window replacement programs.
• Item 4: SB 1383 Implementation Update – Matthew Cleary (Assistant Director, Environmental Services) and Andrea De Leon presented. The city has rolled out organic waste collection to all residents and businesses, completing distribution of 213,000 new green bins and 281,000 kitchen pails. Organic waste collected reached 53,000 tons since January, a 45% increase in commercial participation. Education campaign generated 88 million impressions. Edible food recovery topped 8 million pounds. The city is building an Organics Processing Facility and has received praise from CalRecycle. Committee members lauded the department’s work, especially the outreach and low contamination rates. Vice Chair von Wilpert shared personal tips for reducing waste.
• Item 5: Pure Water Program Update – Amy Dorman (Assistant Director, Public Utilities) reported that Phase 1 is 40% complete with $1.1 billion in construction awarded. Key milestones include completion of three out of five treatment buildings, centrifuge installations, and pipeline tunneling. The Marina Pump Station faced a year-long delay due to dewatering issues, leading to a partial flow commissioning strategy to start northern sections earlier. Regulatory permits submitted. Phase 2 demonstration facility under construction. The committee noted challenges but praised transparency. Member Campbell advocated integrating stormwater capture into the program.

Key Outcomes

• Consent Item 1 approved (3-0).
• Resolution (Item 2) approved (3-0) to draft and submit a council resolution to CPUC and Cal Advocates.
• Informational reports (Items 3, 4, 5, 6) received without action.
• The next Environment Committee meeting is scheduled for November 9, 2023 at 1 p.m.