Help Me With Sign Connecticut Banking Presentation

Help me with industry sign banking connecticut presentation computer

this conference will now be recorded all right uh good afternoon everyone uh this is brian garcia president and ceo of the connecticut green bank uh it is january 13 2021 and this is the budget operations and compensation committee meeting um john harrity uh hopefully will be joining us shortly he is not available at this moment but we have decided to proceed in his absence lonnie reed is present and eric brown is present so why don't we move through the meeting agenda there will be no votes on any agenda items until we have john join us which would give us a quorum so why don't we start off with any public comments from anybody on the line okay hearing none uh why don't we proceed uh to agenda item four we will skip the approval of the meeting minutes and i do believe we had two sets didn't we eric maybe junior yes there's the june 16th in the june 10th so great so we will come back to those uh if john uh joins us later uh so why don't we move to agenda item four uh which are the proposed revisions to the fy 2021 targets in budget and let me turn it to eric awesome so typically for the committee what we do at this point in the year is look at our progress to targets and try to hone where we think we're going to be for the year this year was a little bit different because we gave initially gave a range on our programs and so but we're still doing that um we've done that check-in to see how we're performing um and we are gonna use this opportunity to update the board and um propose some um revisions to these targets so on the incentive side where i'll start um the big the whale of our uh activity is ourself uh in we're leaving the arsenal number of projects about the same i know the board approved the rcb and that is the rcip extension that's currently um being used we are moving using that to um manage the volume and any overages we still ourself is still going on um we haven't closed that out yet um we have seen faster uptake uh in the program than we had initially believed um and we're seeking to while we're seeking to leave the number of projects flat for what we propose in the fall so we expect to fall in that range of 3177 to 4 700 probably to the higher end of that range we are looking to update the capital deployed and that will actually be higher than we had initially proposed the lower end of that range so we expect that to be between 100 and 153 million as opposed to between 92 and 153 million um i'm sorry between 96 and 143 um as opposed to what we had previously debated which was a little bit lower than that so 92 to 133 i believe was the previous r sub target and we're expecting to do 27 between 27 and 40 megawatts so that's reflective of the higher volumes that we're seeing in terms of our solar for all we've seen greater uptake that we've increased the upper end of that target and we're expect we expect that we'll hit the upper end of that target um position has been bringing in projects that way ahead of schedule in terms of our equitable modern grid which is our battery storage program that we had hoped would have launched by now this year that's um we're keeping that where it is but i mean we really are not expecting um i think we've cut the cut the high end of those targets and i don't think that we're going to see anything um of significance actually come to fruition this year um in terms of smarty we're seeing higher solar volumes than we initially expected and also higher um energy efficiency and so we're increasing that target uh the upper end of that um up to 740 projects from about 448 i believe um so we do expect to see continued growth there so ultimately for the um the incentive programs we're expecting between 3 47 projects and 50 581 projects for somewhere between 100 and 153 million dollars that will deliver us between 27.3 and 41.5 megawatts any questions eric this is brian maybe just an addition on the equitable modern grid just a quick update we're going to go into a more extensive update at the board meeting and sergio will provide it with regards to docket number 17 1203 reo3 which is the battery storage docket last tuesday pura came out with the straw proposal uh uh essentially supporting um up to 580 megawatt uh 580 megawatts of battery storage by 2030 um and uh is requesting public comments from uh stakeholders by january 26th um so we're working with our team uh and our contractor our consultant guide house uh to put together a formal response to pura straw proposal uh we're excited their straw proposal um takes a lot of what we had submitted in our solarize storage proposal uh into consideration so uh this is a part of a public comment period and we'll proceed through march and the program may begin january 1st of 2022 so just a quick update we would probably come back to the board uh in the fiscal year 2022 period with uh you know new targets uh targets that would be based on decisions in that docket okay eric all right so moving on to the financing programs um were we've tightened our target a little bit as you'll see um but we're much i'll walk through it one by one i think we've gotten to a point of greater assurance about what's going to actually come to fruition this year um in terms of c-pace we're leaving those targets flat that what we we seem to be on target to land in that range probably right in the middle of it and that's i think we we estimated what was in the pipeline pretty well when we put those targets together originally in terms of the ppa we are currently editing the or we're currently shoring up those targets to be reflective of what's actually going to um come from the state projects so we have um the number of projects is um i think we increased the higher end we have increased the installed capacity and the capital deployed on those as well and that is reflective of the ppas that are in the process of being signed so i think we have a strong degree of confidence around that small business energy advantage that's remaining where um where it was and that's just moving ahead with eversource there are no changes on any of the multi-family products in those targets are ev offsets again that's an emissions only target and that is still unscheduled to occur and then in terms of the strategic investments and the items that bert's working on um that remains the same so the overall number of projects has come down um i'm sorry i said that we increased the upper end of the projects we actually increased the state number of projects we cut some of the other projects in the solar ppa so we've come down from about 1 300 projects down to 1273 for the sector or for the segment and then we expect to deploy between 46 and 69 million dollars worth of capital and we expect that to deliver us between um 11 and 20.7 megawatts any questions in terms of revisions to targets that we've done in the past these have been pretty straightforward so and pretty pretty minor so um if there are no questions why don't we move on to our operating budget changes so in terms of revenues we are um proposing about 1.1 million dollars of an increase in terms of revenue and that's just reflective of the activity that we're aware of um that's destroying our budget up to reality that we've had higher than expected receipts in terms of the benefit assessment we've had higher than expected regi clearing that reggie auction proceeds and higher than expected rec sales so that's all coming in in our favor in terms of expenses um i'll tell you how we want to spend that extra yep just back on that since you highlighted uh it is one of the main areas i guess for revenue increases which is great um what uh what what were we budgeting and what did we get to in terms of reggie dollars roughly um we had expected 4.9 million for the year okay or i'm sorry 4.2 and we got 4.9 so if you translate that into uh the clearance auctions i'd have to go back and look uh jane i don't know do you have that handy if not eric i can follow up with you after this thanks um i do have that information sorry i was on mute the clearing prices are the thing that are driving it uh the um actual allowances that have gone up at each of the auctions is is pretty much what we have on budget it's just uh the clearing prices seem to keep increasing and i had actually forecasted them to decrease i would suspect that this 665 that we've recognized here if we see the same trend it's probably going to increase maybe another couple 300 000 for the last two auctions of the year as well okay great thank you so in terms of expenses um not a whole load more that were looking it's totally new that we're looking to do here but um i'll walk through each of these in terms of the increases that we're seeking so i'll start with the the incentive programs um it's easier for me to walk through this the way that we did in the mailing in program administration we're looking for a handful of increases um 35 000 to to match the volume of projects that we're seeing we're looking to increase the inspections similarly with smarty we're looking to increase inspections by about ten thousand dollars um that we have more projects we're going to need to inspect more of them and then we're looking to reduce technical support by about a hundred thousand dollars um just due to our capacity to um spend the original budget that we're pretty confident that we're not going to spend 200 000 on development for the front end for our asset management system here um this year i'm sure we'll spend it um next year but just not right now um in terms of yeah the incentive programs in emmv we're looking to increase spending by a hundred thousand dollars to cover the some of the consulting related to the regulatory work that we've been doing with pura um and the smooth and orderly transition of the rcip to the tariff um this has been done um and i forget the um the docket name but we've been working with guidehouse and this is to cover some of the work that we have ongoing with them um and then in the final item in the incentive programs is around consulting and professional fees we're proposing about a hundred thousand dollar increase which is um totally cost recoverable 20 000 of this is contingency uh related to our third party engineer that we have to hire as part of the the next bond issuance and this is we kind of learned our lesson last time and we want a little bit of a buffer we're hoping not to need it but in case we do um it's the type of thing that we need to have quick turnaround and we don't want to be searching for cash under the proverbial seat cushions if we need to get dnv out and reinspecting systems so that we can make our timeline with that bond issuance and then the rest of this is 87 000 which covers the cost of some former interns in consultant that we have who are working with us and clearing the backlog of closeouts on our projects that we have a bunch of projects that just need we need to make sure all the paperwork's in order so that we can market completed and move on and that stuff that we need to do anyway and we don't want it to keep uh further backing up so we're tackling that through former interns and a consultant and the final piece of this is um from celia who i think you all are aware will be transitioning away from us and we're has kindly agreed to stay on as a consultant with us after she leaves in february any questions on that before i move to the financing programs in terms of financing programs were there's going to be an increase of 1167 um which is a little misleading it's 1167 that flows through to this year's um p l but is actually an expense an increased expense of 14 000 um which has to do with the build out and wiring at our new office that um when we did the original budget we didn't budget for um all the wiring to be done in how we needed it to and so we're adding that expense and being that that's a leasehold improvement that gets amortized and um that amounts to an additional expense this year that hits this year's p l of eleven hundred sixty seven dollars um we are moving a couple other items around in the budget that is on a level below this in terms of the build out i think we're spending thirty thousand dollars less on furniture but we're spending thirty thousand dollars more on the build-out it's negligible um i'm just giving you guys the heads up that we're proposing that reallocation as well any questions or concerns so eric this is brian at a high level it appears that we have a positive variance on the revenue side with the receipts of more than budget for the clean energy fund the reggie and rec sales of about 1.15 million more than budgeted originally budgeted and then on the operating expense side we are proposing we have a negative variance proposal or about 150 000 of expenditures uh for a bottom-line um net income increase of a million dollars given higher revenues than expenses you nailed it bg so um while we still didn't have a quorum to vote on a recommendation um we will present this at the board and we can speak to it at that point great any other i had one other comment uh since we've got you eric brown on the line just a more um clarification on the battery storage incentive program um one of the things that we included in our proposal solarize storage was to also have our joint committee playing a governance function to support you know specifically our working together collaboratively with the cl m uh the utilities in the human being and it appears that the straw proposal that pura put out there uh would invite both the green bank and the utilities to work together on implementing the program so i think in in our comments we're going to continue to pursue the support of the joint committee to to serve as a you know a governance structure that holds us together uh you might remember back in i think october we talked a little bit about this proposal um so i'd like to keep that structure there uh to keep us all working in the same direction that's terrific glad to hear that piro was you know knowingly or unknowingly open to that uh kind of concept that's terrific okay so why don't we there are no other questions or comments on the budget proposed revisions and the target proposed revisions uh we will uh prepare materials for the board meeting we've got a mailing this friday for the board meeting the following friday and uh we'll work through a similar presentation with the board uh encouraging their uh feedback on this uh we we won't work through a resolution because we don't have a quorum um any any other comments eric brown eric trago orlani i think we're good yeah so when we go to the board we um i guess we can just say reviewed this um but i don't know it all looks like good news to me so um i wish we could forward them i recommend i don't know can we do anything by by electronic vote i mean if john were amenable to it even though he wasn't here for the review to yeah we we can't yeah we can't but that but that's okay eric i think what we can do is in the resolution we will speak to the budget operations and compensation committee having reviewed the recommendations by the staff and we'll just kind of leave it there just so the board knows in the resolution and then you know feel free during the board conversation to raise any areas of concern or areas of support all right okay we'll do it thanks cool this is uh lonnie um and wasn't matt rinelli interested in getting you know sort of having more detailed look at all of these budget elements i don't not to my recollection but i i'm i have no problem walking these through with them but yeah i think you know during our last uh full board meeting i think he said something about that sort of wanting to write her a little bit more he personally was saying it i mean he was he wasn't being critical but he just sort of wanted to have this is what i'm remembering and so i you know at least eric just ask him you know um actually he wants to take a look and and maybe lonnie so eric let's do that before now and next friday maybe lonnie what you might be referring to is kevin walsh's suggestion after the board meeting when he sent an email i believe to you and i on um the assets of the organization and whether or not we can present um what the status is of our loans in terms of how they're performing defaults repayments interest income coming back to the organization um and what we had planned to do is um at next week's next friday board meeting is have eric present some of our initial structure around asset management and how we're beginning to develop systems um that track the performance of our various you know loans leases projects products programs um that might be the detail you're after but we will we will check with matt rinelli between now and then either way and and work through with him yeah okay good that's maybe maybe that a good man but for some reason i thought matt had you know and i think it was in passing but my ear caught it and um i think it's always good to keep him on board he it's cool okay we'll do that okay so so just kind of moving along um to the final agenda item uh which really gets to the comprehensive plan um so we will propose with these revised targets that we edit the comprehensive plan but we wanted to make some further recommendations to the comprehensive plan um so so just i love this photo um you know so our comprehensive plan for fy 2020 uh and beyond is called green bonds us uh green the environment bonds us it unites us or brings us together so we were very intentional about calling it green bonds us from that unification perspective as well as a green bonds perspective from what we're working on to access capital to help finance projects so we're kind of being crafty with our language um so green bonds us is implied in a lot of our strategic direction uh including specifically our current vision statement which is a world empowered by the renewable energy of community a current goal we have to strengthen connecticut's communities by making the benefits of the green economy inclusive and accessible to all individuals families and businesses and i emphasize inclusive and all uh the creation of inclusive prosperity capital you know the non-profit to maintain uh and build on our commitment to underserved communities that we nearly lost in terms of our mission from the sweeps and then lastly the citizen green bonds what we call then mini green bonds but what we now call our green liberty bonds so this is actually a picture of walton jr um i don't remember his name but he was adorable back in june of 2019 we celebrated with the walton family at the roosevelt house which is their new home here uh uh with the hartford area habitat for humanity they were celebrating their 30th anniversary we're at this event with eversource our partner on the project home energy technologies and posigen uh and what they were doing was they were unveiling this zero energy ready home uh with the us department of energy so um between the uh significant energy efficiency home improvements done there uh and then the solar pv on the roof uh their energy consumption is you know almost entirely offset so so they're in a really good spot as a household in terms of investing in energy and having no energy spend um you know as as the events of the past week have shown us you know our country is in a very difficult time uh we're having to reckon with the structural racism that exists in our society and you know we as a connecticut green bank need to be a part of the solution to realizing the promise of our democracy and ensuring that our system of capitalism works for everybody especially the most vulnerable you know we are widely recognized when it comes to solar with justice ensuring that low to moderate income families and communities of color are demanding solar proportionately more than non-lmi families in white communities we now need to be more explicit about our intention so with that the staff proposes the following changes to our comprehensive plan really built around the first part uh is built around equity uh objectives uh i like to use this term jedi uh justice uh environmental justice ensuring that we are deploying clean energy to ensure that vulnerable communities are benefiting from the technologies obviously equity that they have access to and investment is being made in diversity ensuring that the clean energy economy is benefiting everybody i think we saw from our job study that we were uh behind and we need to do more work in terms of ensuring more diversity in our workforce and then obviously inclusion uh we we not only need people to be aware but they need to be included in the economy the green economy that we're trying to build so as a framework um what we wanted to propose was that we consider changing our vision statement uh i i often talk about uh you know a world empowered by the renewable energy of community that is our current vision statement but sometimes depending upon the audience i'll follow it up with what it actually means to me uh which is a planet protected by the love of humanity you know this is what we are doing here our care and concern about confronting climate change and environmental protection is not going to happen unless we care about each other more um so it is uh really about that picture with with walton jr right loving humanity more and and we will look at things differently and we will confront the climate crisis so propose changing the vision statement to that uh definitionally vulnerable communities we would add throughout the document which you see in red line this is interesting because public act 2005 uh that passed in the special session in the fall the take back our grid act actually defines vulnerable communities uh we worked with deep uh and others on that definition and focused our comments on the community reinvestment act elements of that definition cra is a policy passed in the national government back in 1977 that encourages fdic insured financial institutions credit unions local state federal regulated banks to ensure that they are investing in less than 80 percent area median income communities so this fits very well with our using limited amounts of public to encourage more private so that is now in a vulnerable community's definition at the state level so we'd like to build that in to our comprehensive plan as we talk about uh lmi communities communities of color um goal number two uh in our comprehensive plan uh we wanted to include and kind of pull out especially vulnerable communities in that second goal which speaks to the benefits of the green economy and then number four and number five is okay we recognize the importance of equity as an objective you know we have we focused a lot on driving investment which leads to economic development benefits environmental benefits energy benefits but now let's get to our fourth our e4 structure which is an equity benefit um so we're actually proposing a target which is uh by 2025 no less than 40 percent of the investment in benefits uh would come to vulnerable communities we took a look initially at the data and it's in the memo in terms of investment and we're about 25 to 30 percent of our investment you know public and private over the last three to five years is in less than eighty percent uh area median income census tracts so that leaves us room to improve thirty to forty percent um so that we can continue to mobilize more uh investment in populations uh that really need it the most um so those are kind of the jedi if you will recommendations for um inclusions into the comprehensive plan and then there are other things that are just kind of simple cleanups on the incentive program side uh obviously adjusting the progress to targets that eric just mentioned same thing with the financing programs any adjustments we'd include there uh the narrative around the covet 19 impacts on the sustained orderly development that led to our conversation and board approval of the rcip extension so we included some language there and then an update a brief update on solarize storage you know where the green bank was in terms of submitting its uh proposed design into the pure docket and where that stands uh including some language around green liberty bonds they they were called mini green bonds before now we've given them uh a name uh and then various other cleanups uh patron patronicity in there for sustainable connecticut uh replacement of iob uh including e4 evaluation framework where equity becomes our fourth uh metric that we're building out and updating the report linkages from our comp plan for the 2020 comprehensive annual financial report in the annual report so there would be links to those documents so the other proposed revisions are really kind of cleanups and updates uh the jedi proposals are to bring us up to committing and being very intentional with enabling more investment in vulnerable communities as we build connecticut's work work hard to build connecticut's green economy so i think that that was that was it there's a resolution but but happy to just hang out here for a little bit and and get your thoughts and guidance this is lonnie um i'm sort of i was listening and i'm reading um and and i'm just thinking to pull into it uh racism is a public health crisis i mean that's what we're living right now and when you think about you know where it's coming from it's energy pollution and transportation pollution kind of thing it feels like that opens up you know a whole bunch of folks who kind of might embrace our goals who kind of don't really get energy on its own um you know kind of just develop that potential revenue stream great so also on that lonnie maybe so what i'm hearing is maybe i'll go back to the memo in a red line and include some narrative around how kovid has disproportionately impacted uh black and hispanic communities as a result of you know yes pre-existing conditions but also air pollution that is exacerbate you know from energy and transportation that's exacerbating the problem is that what i hear yeah i think that's good and i mean it's you know it's it's clearly i mean when you think about the the children the low end common poor children and children of color who get asthma at very early ages and how that impacts their whole you know i mean there are all these um elements running through how folks are growing up and living that impacts all of us you know and and it just feels that um that folks can be mobilized around those issues as well and bring them into our energy arena plus federal money i mean it's so clear that that was part of the biden campaign that we all worked on some of his work to help make sure that they shaped really um productive energy policy and and the idea that we're really going to deal with those communities and we want federal funding to kind of help with some of our goals i think it'd be good to really state it to lay it out great yeah the um as we worked on those activities and and you know not knowing where congress is heading in the context of the biden-harris policy priorities one could presume that uh you know the modernization and decarbonization of the infrastructure of america's infrastructure is going to be priority uh and with that is jobs and uh environmental justice 40 i mean those are those were clear uh from the campaign and i can tell you from the transition team's perspective those were front line everything every conversation was focused on on that jobs and vulnerable communities or environmental justice in this context great um okay any anything else uh you know feel free to send me a note or any ideas i'm happy to change the presentation up a bit um if this worked great just send me a note i'll do it again um but uh you know really being intentional about ensuring uh vulnerable communities are a priority and we're measuring progress to delivering investment in benefits over time uh will be the the foundation brian it might be helpful if um between now and then you could circulate or maybe it's in the materials you're saying i don't know i'm just looking at the overheads but um that that definition that you reference for vulnerable communities just so we all know what we're talking about when we use that term cool yeah it's in the memo um eric um and uh yeah um you know what why don't i pull uh why don't i just have a slide on vulnerable communities because i think we'll probably you know the board may want to just hang out there for a while you know deep was a big advocate of that we're a big supporter obviously an implementer of that uh but maybe we can call that out in a slide specifically because it i really think it frames a lot of our metrics you know literally we we used it to start our conversation again with the department of banking commissioner around community reinvestment act uh to work with them on some metrics so it really formed it's really foundational so why don't i do that i have a slide on it and do you think that that term uh encapsulates or includes the concerns of the racial concerns that have been expressed in other words i don't know i don't know if uh you know let's say folks that live in bridgeport within a half a mile of i-95 um you know i don't i don't know if you know white kids are any more or less likely to get asthma than kids of color or not um so you know vulnerable communities is focused on sort of income which it sounds like you know 80 percent the percent number uh yeah so this one yeah yeah go ahead no so i'm taking a look at the definition quickly on my little board effect um so lmi communities environmental justice community pursuant to that section of the statute um you know maybe we could even pull up that and provide the board that background on that environmental justice bill which i don't think is too long communities eligible for cra pursuant to the cra act as amended from time to time so that was our inclusion to bring in private investment populations with increased risk and limited means to adapt to the effects of climate change or as further defined by deep in consultation with community representatives so i don't see things in there specifically around race i feel like i've seen recently um maybe it was in the irp i don't know juliana if you're if you can speak to this um i feel like i've seen it recently in terms of having the conservation and load management plan look at equity metrics beyond income so that may you know be other things i don't know what those other things are to me beyond beyond income to me is going to be race um but uh i will i will write on that okay thank you all right i think that's it so if there if there's nothing else um uh is there a motion to adjourn so moved i'll second all right all right eric lonnie thank you very much thank you thank you thanks everybody okay