slice and dice in a more exquisite way and we have intellectual capital so we're trying to be leaders and integrate the state. we have a lot of utilities and different jurisdiction overlap in strange ways and we're really the only body that can unify and that's what we're trying to do. >> thank you. commissioner ahn. >> commissioner: thanks again for your presentation. there were repeated

presentations to disadvantaged communities and disproportionately burdened by environmental factors. there was controversy around the tool where maybe hunter's point wasn't included in the original tool. is the california commission continuing to track this and the hope is other communities aren't falling through. how is the energy commission grappling with this? >> we use a screen as one tool among many. we're trying to do it in a way that doesn't link us ball and chain to any one existing tool. the screen is helpful as far as it goes but it has those limitations as you mentioned. we did a low-income barriers

report and it's energy efficiency and renewable energy sb350 ordered us to do and came out with recommendations one of which was better information and data on the low-income aspects of the policy environment or program environment. but really i think it developed within the commission and across our sister agencies allowed us to have a more developed view of what it means to focus on low-income and disadvantaged communities. i think it's an iterative process for the tool. it's got value but not perfect. >> commissioner: that was interesting. thank you, commissioner, for that. as our remarks were in line with yours the challenge of getting off natural gas in the building

sector. for us in local government sometimes there's structural barriers in terms of regulatory definitions as well as barriers for using public good charge money. so there's historic challenges. some sit with you and your authority and some are with the california public utilities commission. i wonder if you can give us an insight as to how the state agencies talk to one another. talked a lot about the importance of listening to local government. it's a triangulation sometimes and i feel stuck sometimes in that triangle. i'm wondering if you can explain how the commission works on that and advice for local government in breaking through that triangle. >> in fact i was knit -- in the city all day and having a meeting with by counterpart at the public utilities commission and see where we can work together and not in alignment and get in alignment where we're

not. a lot of positive activity comes out of each of the meetings. we try to do them once a quarter or so. but they have a regulatory process that actually is quite rigid and things dont move fast. we have our own issues at the commission developing standards. we have statutory requirements of transparency and notice and comment periods and things move slowly. patience is the number one practice and having practiced in front of both commissions in a former life i understand what a process it is in a rule making. we have the luxury of working with them behind the scenes as a sister agency. i'd invite to you interact with them and the same at the energy

commission and actually, your staff does that routinely and our staff talks with barry and the counterparts there to see what the issues are and we're trying to get data from the utility to the city. so i have no doubt they'll be able to get that done. we do struggle a little bit. i think of it as a down sized a robust is they can be difficult to navigate but they produce a transparent result and that's not happening a lot in d.c. at the moment and a hold up off processes and the fact we engage with stakeholders and often agree with industry on a new regulation -- radical, that say function of the process. it's a trust-building process.

it takes sticktoitiveness but i'm willing to help in anyway. want to is an i really appreciate the commission's -- your commission's willingness to listen to local government and meet with us and work with us regularly. i feel there's more accessibility on that front and your willingness to acknowledge the importance of getting through the data barrier with the utilities. thank you for that. >> commissioner: commissioner stephenson. >> commissioner: that was great. thank you so much. appreciate it. the presentation both debbie's presentation and your presentation spoke to adapting to great alternative and the five things that have to happen spoke to that and when i go back twenty-plus years ago the opportunity to go green and do the right thing for the

environment came with a sticker price that was worse. it was a worse experience. and over time the private and public sector came together and now we get to talk about led lights and they're priced at a reasonable rate and if electric vehicles were a horrible experience nobody would be driving them no matter how great the opportunity is here. when you look at natural gas and how people interact in their homes it goes without saying if the experience wasn't good in absence of really regulation -- with a lot of teeth, or a fantastic alternative no one's going to adopt it. is there a role for the commission or are there conversations taking place between the private sector and innovation teams you talk about

here in silicon valley and elsewhere to create the opportunities? i saw a piece of the goal was things we hadn't thought about yet. new stuff. i how is that being driven and promoted by the commission, if at all, and if not are there place for people like to us step in and do something. >> it's a narrative of my job at the moment trying to engage with markets to help them figure out how to do what we want them to do to meet our policy goals. let's take heat pumps as an example. if we need to get rid of gas furnaces and move to heat pumps, there's challenges. there's less mature. in europe and japan they're everywhere and they do exist and off the shelf but there's market barrier in the state. city of palo alto did a project

to promote heat pumps and they learned a ton. it's been difficult and they're restarting it to learn how to make it better. that's one example. we then have to deal with refrid refrid refridgerant refridgerantss -- and this is classic where there are applications and business model type stuff. where and we're using the thread of regulation often to say come to the table. i want to work with you and help you and fund some research. for example on health care, l.e.d.s can be transformational. i don't know how many of you

have been around someone and there's machines and cords and there's no natural light. can tune the overhead life to be a natural cycle and change the light and people have better outcomes and heal better and you can put amber light around the lower end along the base board to help people navigate without losing sleep. that's an example of a better technology that can thrive in a marketplace if someone has the foresight it make that connection. so there's any number of ways to show society will be better off besides just energy and caron from the technologies and we have to do a better job to make the case for the non-energy benefits because luckily they align with our goal in the energy front but as you say people need really good reasons

to adopt technology. energy, frankly, where the energy walks and i live and breathe this every day so i'm different. we're all thinking about it but your average person and shouldn't be -- the marketplace should be serving them. we shouldn't expect everybody to be an energy expert. we should say the better technology is out there and align with our policy goals. out today, my contractor was demolishing my house and it's now a slab and i'll be building hopefully zero energy or zero emissions house in davis. i'm trying to walk the walk and learn and that's going right to policy. and particularly contractor who have their finger on the pulse

of what people are buying and people are doing and asking them to do is worth its weight in gold. that's the reality check we need to make our policy calibrated to the reality on the ground. long way of answers, this not easy and there's no silver bullet but again, we're in california. there are so many creative people. there's so much intellectual capital and entrepreneurship and green capital. if anybody's going to do it it will be us. we'll go down swinging. >> commissioner: a question.

can you talk about the communications and how you work with the participating cities the cutting-edge cities to ensure your message and their messages are amplifying each other so information you get from research or from contractors is actually brought down to the level where people live and make she's decisions. energy commission does do that, don't they? >> we have an outreach team and anybody in the industry build home or has questions about the building code we have like a call center situation. i think the channels are

multiple and building departments are key counterparts. we've focussed on making sure the building departments get noticed when there's a change in the building code, bringing them along trying to get their pulse on updates to the building code. we're in the middle of the building code update taking effect january 1, 2019 and about to open the formal process with language and there's workshops with participants in the market place. getting to consumers is i would say more difficult. that's where it's not part of our natural skill set. we have 700 people so it's not insignificant but we don't do marketing we site power plants and have statutory obligations on the planning side.

part of the unique feature of this action plan -- this existing building and 350 action plan is that it's really trying to figure out how we look at the world beyond the world of the energy commission and beyond the world of the state to try to figure out how to stimulate markets to do a lot of this maybe without rebates. ideally we won't have to do rebates they'll just do the right thing but your question is well conceived. how do we get average people living their lives and have jobs and constraints on their time and resources, how do we get them to have plausible decision don't take hours and hours of research they can just make and not be traumatized by it and we're not there. >> commissioner: everybody sees the billboards of turning off

the lights and not using the washing machine when there's a crisis. i think people would love to have this information. i'm conscious of the time. i'm taking a lot of time as the first speaker. automation -- again, we have a lot of technology. everybody has advanced meters. there's a lot to be said about building functionalities into the structures and we're seeing evolution in the building space where lights adjust to daylight. the hvac is off in the office if they're not there and it knows how to dim the windows, when the sun is coming through and it's all automated and there's energy savings and it's a more comfortable more functional

building and the incremental costs were high and this will enable the adoption and we have to build a system to make it happen. we have regulatory authority that can push things in that direction but we have to meet the marketplace halfway. >> thank you. we'll now go to item 7b. >> >> the clerk: a presentation on the energy watch energy efficiency program the speaker is kathleen brian, senior energy specialist. >> thank you for having me. i'm going to focus on our local energy efficiency programs the

san francisco energy watch and the bayren program. for the longest running energy running program is called the san francisco energy watch since 2006. as the a local and governmental partnership and we're under pge to do implementation of the program. the 12-year partnership has allowed to us build a strong team in-house of dedicated energy professionals including engineers, environmental scientists and construction folks. the funding for this program, as for other energy programs, is the public goods charge on your build. they provide buydown of the equipment at every stage and san francisco energy watch is the

only one serving san francisco with what we call direct install from the beginning to end, audit to installation. we provide reduced cost installation to customers in san francisco, commercial and multifamily. these change over the court reporters over the years and they changed over the years and worked on t-12s and magnetic ballists and now recommend linear l.e.d. lamps. for lighting we focus on interior around exterior l.e.d. fixtures. our contractors work on installing coolers and freezer and replacing motors and installing motors on the units on the heating and cooling side our work is more limited.

we do variable speed drives as well as controllers for small a.c. units you may see in hotel rooms. so how does this all work. i'll walk you through the process. one of our customers. for the first step is the free energy assessment and it's a walk-through and depends on the customer's needs. it will at times focus on the area of the building, potentially the common areas or particular technology lighting in many cases. other times the customer will look at all the energy systems of the building. after we'll provide recommendations including the estimate the incentives and paybacks and if they want to move forward they can work with somebody they know or do the work with their own staff.

next step is installation. again, by our own energy watch vetted contractors or the customer's own choice. next, our staff goes back on site to do post-installation evaluation and make sure quality installation was provide and ensure they're happy with the work. last step is payment. the customers can direct incentive to the contractor the advantage they only have to pay the co-pay or can receive the incentive directly. these incentives typically cover 60% to 70% projects. there's not free projects anymore. we know affordable and accessible financing is a requirement. it currently offers on-bill financing with a minimum loan amount of $5,000, 0% interest, no fees, the project has to pay back within five years and the

barrier there is the minimum of $5,000 so what we've done is offered a micro-credit option with a lower barrier for application and a lower minimum so there's basically no minimum and a term of 18 months. so i want to show to you something we're starting to look at and that's how our activity has align with the potential across the city. you can see the work stands the city. it's not very visible to the audience. we represented that with the number of registered business. we used open data to look at open businesses by district and the text you see shows the percent of total incentives granted in each direct. if you look at districts 3 and 6 you see they're the darkest in

the color gradient and together represent 63% of the incentive we spent. so our achievements here i want to highlight how impactful the program has been and the $25 million is the most impressive to me. after 12 years word of mouth referrals are phenomenal. we have great brand recognition with property managers, building engineers and facilities managers and owners. we don't have to do a lot to keep the leads coming into us. it allowed us to push $25 million in incentives to 7900 projects and it saves nearly 52,000 metric tons of carbon emitted or the removal of 11,000 cars on the road. so i want to talk about just one of our pilot project. we have some strategic energy resources funding through our contract of pge.

and there's comprehensive maintenance in the food and beverage sector. through past campaigns street level and small businesses we identified a gap for customers with deferred maintenance. our core program is good on working on widget-based solutions but it struggles with the other systems badly maintained. these are challenges we face in the field, rust and ice build up. business owners tell us they don't have the time or money to keep up with the maintenance on these systems but the pre-existing conditions are a challenge because installers don't want to go in because they may be liable when someone breaks and if they were to replace the motor we wouldn't see the energy savings we're expecting. so what we're doing on the project now in its third year is testing several tools, energy

monitoring, maintenance, training, equipment tune-ups and buy and smartphone apps to empower these customers to actually track how their systems are performing. here's a great example of someone who participated in the pile popt it's a taste of vietnam. we trained the customer on maintenance and provided a free tu tune-up. we think the long-term relationships help the customer move on the energy efficiency journey. another site here this customer was concerned something outside of energy efficiency. she was worried the hot halogen lamps would damage the product and helped replace the lighting with l.e.d.s and had lighting energy savings and air-conditioning savings.

another customer thirsty bear. we worked with them to do a lighting retrofit and he came back to us in 2013 and retrofitted the entire space with lighting and refrigeration with us. [please stand by] [please stand by] .

aea implements the programme, but in san francisco, we draw on that same team of energy experts to actually do in-house implementation. we're the only government in the bay area that does so. so what does it offer? it's intended to remove every barrier to participation for these multifamily building owners. typical barriers in this hard-to-reach, hard-to-serve sector include lack of capacity to act, lack of capital, and lack of financing. this project has specific tools to address each of these concerns. the programme covers a much broader range of measures than energy watch does. so it's actually a calculated approach to encompass all kinds of energy-saving measures

including natural gas. and it focuses also on combustion safety, comfort and reliability for the residents. for a similar graphic here, the multifamily team, this actually represents both our energy watch and bay run work in the multifamily sector. we've done a similar exercise to understand how our efforts align with the potential. this map shows all the activity and the colour gradient this time represents the number of multifamily buildings. so you see a higher percentage in district 2 and 3 in the centre of the city, and as expected there, you see the greatest amount of work by energy watch. and bayren. so bayren's results, as we said, bayren is a regional effort, but each county actually has annual goals for a number of units upgraded. when one county falls short, another county will step in. and san francisco has done this every year since 2013. the san francisco represents just 25% of the eligible multifamily buildings. the family delivered 40% of the

regional goal in 2015, 33% in 2016, and 27% in 2017. so in 2017, we saw a big uptick in participation by alameda, contra costa and santa clara counties. and that's because of pent-up demand. there weren't any multifamily programmes in existence before the bayren programme. so they actually were big contributors last year. so our results, you can see since 2014, we visited 338 buildings throughout the city. this is a team of basically two fte who were doing all these site visits, covering 22,500 units. and most impressive is that 31% were converted. we don't see numbers like that in any programme we've run before. so that amounts to 7,000 completed units over 85 buildings. and we're starting out really strong for 2018 after a very successful 2017. we already have 1200 units in

construction. and across all the buildings, these sites are saving 18% sitewide, and that's really impressive, very difficult to do when you're just working on this deemed model of light bulbs, replacing things one at a time. it's a comprehensive look at the building's energy efficiency. so that's all i have for you. and i'd love to answer any questions and appreciate the opportunity to talk on behalf of my team. >> thank you. we're going to go to -- we have five -- we have five items under this number 7. >> yes. >> so i think we're going to go to the next commissioner from the california energy commission, and then we'll do questions after that. >> okay. >> is that correct? thank you. >> all right. the next item is item 7c, presentation on california's renewable energy and zero-emission vehicle mandates and achievements to date. the speaker is member of the california energy commission.

>> bearing gifts. thank you. >> good evening. and good to be with you all. and let me just first begin by extending our condolences to all of you for the loss of mayor ed lee. he was 5'6", but i think he was the tallest man in san francisco when it comes to the environment, and he really stood strong, and he was relentless, and it was a real passion for him. and i worked with him for 20 years, and it's a big, big loss. and i think what he would want us to do is to continue. and my main message to you today is keep being bold. i am a san francisco native. i worked for several mayors here in san francisco, you know, mark renault and others. we did some really big solar programs, residential and municipal, and i watched that affect the state and get the state to raise its game, and

i've watched and worked on spreading those policies to other states and other countries. and right now what's happening, california has sort of become a country, essentially. and i visited nine other countries. i just got back from israel and the palestinian territories last week. and what we're doing is having a global impact, and california can't be a leader without cities like san francisco. and you guys are at the tip of the spear. so keep pushing. so i'm going to walk through some of the good things that are happening. it's been a rough year this last year. but there's actually some great developments as well. and i want to share those, and i'm happy to open it up for questions. so the good news is for the last two years in the united states, actually the majority of new generation being added to the grid, about 65%, is coming from renewable energy sources. so we're winning not just in california but at the national level. and this is a function of cost reduction because we've seen technology like solar and wind

that get incubated and cultivated at the local and state level reach maturity and then compete very effectively. and on the other side, you look at the retirement, so these are the power plants coming offline, 92% fossil, mostly coal. so we're exiting the coal era and entering the clean energy era. and actually, that's something that donald trump can't stop. this is pure economics. and you look at the bets that the heavyweight investors and power companies are making long term, nobody's going into coal, right? no matter what the red earth may be, renewables are the future. so by the way, one point to remember, our ability to advance clean energy markets is much better than our ability to predict the advance of clean energy market. it's a little hard to see, but the bottom line is the prediction of the growth of solar and the black line is what actually happens. so we've basically been off by

an order of magnitude, all the federal department of energy projections. and it's important to keep that in mind because we need to have an expansive sense of possibility about this transition. we're going to get to 100% renewable energy and electrification of almost everything. and that may seem outlandish, but i think it's exactly where we're headed and where we need to go. one point to keep in mind, there's functionally three differences between how we subsidize at the federal level, renewable energy sources like wind and solar and geothermal and others, and how we subsidize fossil fuels. so fossil fuel subsidies have been around much longer. it started in 1926. fossil fuel subsidies are much more numerous. but most importantly, they don't expire. the oil industry is a fully mature industry. it does not need subsidies. we continue to subsidize it. meanwhile, the solar and wind tax credits are only implemented

much more recently and had a series of stops and starts. and that's a really difficult to way to grow an industry. of course both tax rates are going to be expiring in the next few years. and so what we're seeing is states like california, new york and hawaii and others that are stepping up are really just trying to level the playing field from the imbalance that we've had in federal subsidies for so many years. as you know, we have a law now mandating 50% renewables by 2030. this is building on the first renewable portfolio standard which was passed about 15 years ago that required 20% renewable energy by 2013. that got raised, first law actually governor brown signed when he came into office in 2011 was to raise it to 33% renewable energy. i happened to be in the legislature that day. there's a legislator who will go unknown, but he took the bill and he threw it up in the air, and there's papers, you know, flying like snowflakes. and he said this is impossible. this will never happen!

no other state is doing this! and we're at 30% today, okay? so -- and we're actually -- if you include large hydro, we're actually at 40% renewables today in california. and we're actually on track not just to hit the 50% target by 2030, but to blow by it. so we've installed more renewable energy in the state of california than any other state in the country. and it's important to go back and ask, well, you know, what do the critics say at the time we started? well, there are basically three myths that were propagated about the disasters that would bee fall california if we were to build big on renewables. that it was going to crash our economy, raise our unemployment and the lights were going to go out. and these guys are still saying the same things in other states and countries. so what happened -- sorry, let me go back. so what happened, basically the california economy since 2000 has grown our gdp by 40%. the other 49 states have grown by 28%.

so our economy's growing faster than the national average. we've cut unemployment in half in the state in the last five years. and we've had no statewide rolling blackouts since these policies began. the blackouts we've had from the energy crisis, of course, have nothing to do with renewables. that was market manipulation from enron. but we have to continue to dispel this mythology because it's still out there in the public dialogue. the good news is that when you look ahead of the cost trends, basically all of what i call the foundational technologies of the clean energy future, the cost trends are heading in the right direction, downward. so wind, residential pv, utility fuel pv, battery costs, et cetera, l.e.d.s, step back and think about it, over the long haul as fossil fuel supplies diminish the price will eventually go up. with technology, it's the opposite. it's just like refrigerators and cell phones and flat-screen tvs as you scale, the costs come

down. so we're on the right side of this cost curve. and it's this reason for optimism. in california, we're moving very quickly. in 2008, we only had 12% renewable energy. as i mentioned, actually, now we're at 30% renewables as of last month. and we don't count hydro with over 30 megawatts as a renewable resource. if you add that, we're at 40% today. so i'm going to take you guys on a little california clean energy tour. this is my favorite chinese proverb. the people say it can't be done should get out of the way of the people who are doing it. we're going to do a little tour together. some of the projects that are creating this clean electricity we're using. so this is the world's largest thin film solar pv project. it's just north of our border with mexico. it's 550 megawatts, about half the peak demand of a city like san francisco. and the interesting thing about this project, i dedicated this a couple years ago, even over the course of construction of this one project, there was all of this innovation. this whole site was graded.

so they had bulldozers come in and grade it. that's 15% of the cost. there's environmental damage associated with that. they learned how to avoid that altogether. so now these projects are typically not graded. half of this solar field, the southern half, there's aluminum frames around the panel. they actually learned how to avoid having to put those on altogether. so the second half doesn't have that. the efficiency of the solar panels was not high enough at the time they constructed this project to justify the average cost of being on a single tractor. you get about 25% more power when you're on a tracker but you have to have a high enough efficiency. during the course of construction they reached that high efficiency. so going forward, this is the first solar project, all the projects are on trackers. so just an example, innovation just over the course of construction of one project. we're also home in california to the world's largest solar thermal tower. this is the project about 400 megawatts in size. what you're looking at there is three 550-foot towers with a

boiler on top surrounded by 173,000 heliostat mirrors. the sun hits the mirror, the mirror focuses light. and we also are home to the world's largest solar thermal power plant. this is not new, by the way. this is over 30 years old and a real testimony to the durability of renewables. and we're just an hour and a half north of us here in san francisco is the world's largest geothermal power plant, the geysers, about a gig ga watt in size. and we're home also in california to the world's largest wind project. we also have a wind energy center which is in the county. this is the second largest taxpayer in kern county. so really almost every clean energy technology category we have the largest project in the world. we just installed -- it was the largest battery storage project in the world until that got beat by one in australia. this is a race we like to lose. we want other countries stepping up. so this was put in in san diego last year.

and we're leading the nation as well in biomass energy. one of the other trends we're seeing in renewables which is positive is powers in wind. so the early version of the wind turbines had very, very high rpm. about 45 rpm. and what they're doing now is removing these -- as an example, this is called vasco about an hour east of here. they had 432 of those older turbines that were on a lattice structure, which is a perching opportunity for birds, okay? they removed all of those. and replaced them with just 34 of the new turbines, which are solid steel column. they're bigger, about 12 rpm. and actually, they cut the mortality by 70%, and they tripled the energy generation. and they, of course, freed up a lot more land. so this is what's happening in wind around the state, and it's a good thing. because every farm of energy generation has an impact, has an

environmental impact. and we're finding ways even with renewables to reduce that. we're looking ahead. all right, what's next? one of the resources i'm really excited about and optimistic about is offshore wind. so last year in the united states, we installed the very first offshore wind project, which i visited. this is a picture i took from the 30-megawatt project. and the big difference between offshore wind in the east coast and the west coast is the east coast has a shallow shelf. so the foundation turbine sits right into the sea bed. here we have a deepwater shelf. but there's a new technology that allows you to do essentially a floating turbine. as you would like an oil rig. it's floating and it's tethered to the sea bed with three high-tension cables. and the advantages that actually the wind resource is significantly better offshore. about 50% more. and when you put these, you can site them at 15 miles.

what happens at 15 miles? you can't see them. they're out of sight. and you think about actually where this could go. 80% of electric demand in the united states is in coastal states, if you include the great lakes. and, of course, within coastal states like ours, our load is at the coast. san diego, l.a., san francisco, san jose, oakland. so -- and with these turbines, you get much, much bigger size. so typically on land in california, we see only about 2 1/2 megawatts. they're up to 8 megawatts today offshore, and there's a line of sight to even getting to 12 and 15-megawatt turbines offshore. by the way, very complimentary generation profile to solar. offshore wind is way up in the morning, goes down during the day and then comes up during the afternoon and evening. and that's a picture of some of the different technologies. our largest manufacturing plant in the state of california today is an electric car factory. tesla is spending most of tomorrow there. 33,000 employees at tesla now.

and with 362,000 electric vehicles on the road in california today. about half the u.s. market. and i just got my first electric car, the chevy volt. 10 people including two state legislators to get this car. i have a very bright future as an electric car salesman. i'm looking out who's next on my list. by the way, ev can play and already play an important role in helping integrate renewables. because what we want is actually to have sort of an electric vehicle happy hour where they are charging during the time we have surplus solar and wind generation coming on the grid. just as an example to keep in mind the sense of possibility, it took general motors and ford, both of those companies, over a century to become a $48 billion company. tesla is now more valuable than both those companies. and they just started in 2003. this is a slide -- i love this. this is from 1900 in new york

city. all these are horse-drawn carriages. and that's the first car. and then 1915, there's the last horse. you can see how quickly it changed. so one benefit of all the policies that california and san francisco and other cities have adopted to promote this clean energy future is the job creation. we have 100,000 employees in the solar industry in california today. all of our states utilities combined, 56,000. so it's an incredible story. it will be set back by yesterday's decision which was an egregious self-inflicted wound that the trump administration adding this 30% tariff in my view is a big step back. and i think it's very arbitrary. obviously there's no cell phone manufacturers anywhere in the country. we're not talking about slapping tariffs on cell phones. this is -- and the vast majority of the solar jobs, more than

90%, are not in manufacturing. so making solar more expensive will definitely this next year unfortunately result in some solar industry job losses. the other piece of the puzzle that's important is storage. this is a picture of the tesla battery factory, which is in sparks, nevada. it's connected by rail to the tesla car factory. we have a storage mandate in the state of california, 1.3 gigawatts by 2020. you know, this is how you get cost -- we think about how does cost come down for efficiency, l.e.d.s, electric vehicles, solar, wind, it's the same thing. it's three things. it's innovation, automation, and scale. and it's mostly scale. and so this is the second largest building in the world that's being built to build these factories. i mentioned the electrification of almost everything. just a quick tour of some of the highlights, we funded all these technologies. this is a new electric bus manufacturing company that just opened operations and is

manufacturing electric buses in california today. they just did run a test track to see how far that the new vehicle could go. empty bus, 15 miles an hour, 1,100 miles on one charge, okay? we're at a new era in terms of the range of these cars. we've also funded through research and development program a company called zero motorcycles. that's the tesla model 3. and that's the electric bike i got. i'm the slowest biker you'll ever meet. and so i got this electric bike. i put my 12-year-old daughter, you know one of those half bikes was attached. i was going up a hill with my daughter on the back, and i passed this guy who is wearing the matching outfit. like he's racing. i passed him going uphill. he had no idea i was on an electric bike, and it felt great. i highly, highly recommend it. we put in also about 14,000 electric vehicle charging stations throughout the state and many, many more on the way. thursday of this week, governor brown's going to be giving his state of the state speech.

and we'll be talking as well about our goals advancing on this issue. some great commitments from the private sector as well. companies like google, apple, facebook, general motors and walmart have already committed to get to 100% renewable energy. and that's nice. you don't need to get through a vote. you don't need to get through congress. incredible leadership, and i'm really proud so many of these are headquartered in california. and, of course, in the divestment movement, incredible progress. and i know we have a vote coming up on that. we're at already $5 trillion of institutional commitments to divest from fossil fuels. i think it's hugely exciting and meaningful movement. obviously it will change the course of history in south africa. and it's just great to see the momentum on this. we're also doing high-speed rail, as you know, we spent about $3 billion already on the infrastructure for that. the commitment has been made for

high-speed rail service to be powered with 100% renewable energy and every single station on the high-speed rail network will be a 0 net energy building. so let me just close with this. i think the analogy to where we are with fossil fuels is very similar to the story of smoking in the united states. okay? so during world war ii, we gave a pack of cigarettes per day to every soldier as part of daily rations. a generation of american men come home smoking. doctors did ads for cigarettes. fred flintstone smoked, johnny carson, president kennedy smoked, marilyn monroe smoked. some people say they smoked together. [ laughter ] and then the truth came out that hey, smoking causes cancer and secondhand smoke causes cancer. the response to the tobacco industry was to spend $100 million to junk science to distort that basic truth. but martin luther king said no lie lives forever. and eventually that science got accepted and it led to this

cascade of policies to reduce smoking from warnings on packages, banning cigarette advertisements on television, increasing cigarette tax, banning smoking on airplanes, selling to minors and restaurants. and today we've cut smoking down to 15%. and it's projected to fall 12% by 2020. one of the biggest public health success stories in our country's history. and i think the world has a smoking problem. and we're dealing with this exact same junk science dynamic with the fossil fuel industry that i think this is the trajectory that we're going to follow. and with that, i'll stop. thanks. [ applause ] >> commissioner ching ting wan: thank you so much for your presentation. it's very exciting, and thank you for the advice to continue to be bold in san francisco. and all over. commissioners' questions. we're going to take questions and then i think we'll also have questions after we have questions for commissioner

huckshield. that would be commissioner ahn? >> commissioner ahn: just a question or a general comment for the commissioner. it's great to see you back in san francisco, of course. your local city and county community, i remember your commitment to go solar as well as your closeness with dr. jackson who unfortunately passed a short while ago. it's great to see you play on the state and global stage at this point. i think your presentation's really exciting in the context of our next item, item 8 on divestment resolution. and i wanted to unpackage a comment you made. hopefully that will inform the commissioners because the retirement board has actually issued an 87-page staff memo extolling the virtues of oil. i was wondering if you could talk a little bit more about your comment that oil as a fully mature industry and what that means for oil growth being capped or what's the time line for renewables to transition from oil economy as well?

>> well, i think the choice for cities like san francisco, you know, we get to pick what kind of future we want to build. you know, do we want to build our city and our state on the polluting fuels of the pastor the clean energy technologies of the future? and this transition i've described is going to happen. i absolutely believe it's going to happen in this century. how quickly we get there matters a lot. there is a climate clock at work. you know, and you look at, you know, the numerous subsidies that fossil fuels, not just coal -- not just oil, but also coal and natural gas, gas is exempted from the safe drinking water act and all kinds of other favors that are not done for other industries. that has hugely tilted the playing field in their favor. and i think you look at what we can do to help rebalance that, i do think divestment is a very

timely and important tool. and it matters. and we have seen just in the last few years, i've seen specific projects, coal projects that were not able to get funded because the divestment movement basically enough banks, you know, got cold feet, and they couldn't raise the money, and it killed the projects. and so i am absolutely personally a supporter of that as an instrument. and, you know, i look at -- i'm very hopeful about where we're going with electric vehicles and getting off of oil long term. but these things dictate very clearly whether we do that quickly or slowly. >> commissioner ching ting wan: commissioner, all yours. >> thank you so much, commissioner. i have a question and then i have some food for thought. i'll start with the food for thought. so first of all, thank you for such a powerful presentation.

in these times that you referred to mittically, the obvious, like, intersection between social movements and the ability to influence government positively is really essential. and so i was just curious, and you don't have to comment on it, i just noted that you said you're going to tesla tomorrow. so as someone who has a long background in the labor movement, i know there's been many, you know, filings against them on harassment and the right to organize. so i know there's a lot of social movement particularly on the climate movement. you know, pushing for a fair resolution of that. so i just wanted to offer that up to you. and then my question for you is about sb100. so i know we didn't get there last year. it's now to your bill. it's so exciting that around the country, we're having all these cities commit to 100% clean energy and of course the state of hawaii as well. so i'm just wondering pathways, says thoughts, ideas you have and roles we could play in helping get that over the finish

line. >> sure. well, your points are well taken. and on sb100, the bill has been reintroduced. it is moving forward. and obviously, at the energy commission, we do what we're directed to do from the legislature. that is in her hands. but it's based on the model that was pioneered in hawaii. so representative chris lee authored successfully that bill, first state in the country to mandate 100% renewable energy by 2045. [ please stand by ] also where w

with renewable generation. it's the new frontier but we'll see what happens this year in the legislature. it's top priority for senator leone and we'll see where it stands. >> commissioner stephenson.

and i like your analogy. we're just asking people to keep their cigarette and keep what they want and do what they're doing but it took an extraordinary amount of social marketing, not social media, but social marketing to move the needle and move public opinion in the face of the bad science. it's not really a question mark comments. i go back to commissioner walt's comment where there's a need to tell the story over and over again that don't sit in the room and don't think about these things they'll time. i don't know how much outreach opportunity we have but i do think there's an opportunity at the state level to do a little bit more of that story telling in a way that may help things

move faster. >> it's a great point. my observation -- my mother a sociologist at berkeley wrote a book on why some people are the way that are and i went to louisiana and everybody i met with had a different political orientation but when we talk about renewable energy they support it. i think this is mom and apple pie. it's just good for our country. it's domestic, it's clean, it's healthy. there's a huge opportunity for growth and jobs. i am hopeful we can find a way to depoliticize this which is what needs to happen. i think we have to get back to the basic this is good for our country no matter who you vote for for president this is sm

smug -- something you want to support. communications half of what we should be doing. we're making a lot of headway on policy. i've been travelling to other countries. i've been to nine other countries in this job and that's been great but we need to do more domestically as well. you're point's well taken. >> commissioner: thank you. do we have question for kathleen bryan and well get back on track? our last presenter. >> i have one. >> commissioner stephenson. >> i got to see the great work you guys are doing and i know that small businesses are being well served in the family multifamily units are being served. is there a way for them to get

the same kind of access will >> is there some place at the state level or county regional they can go to for that? where would they go? >> straight to us. >> can you give an url? >> the best is to direct you to someone on our team. >> >> commissioner: thank you. anthony the