REGULAR MEETING AGENDA Thursday, August 5, 2021

REGULAR MEETING AGENDA Thursday, August 5, 2021 – 4:00 PM

City of Coachella Library Rooms 1 & 2 1500 Sixth Street Coachella, CA

MEETING CALLED TO ORDER AND ROLL CALL

City of Coachella Steven Hernandez, Mayor City of Indio Elaine Holmes, Mayor City of La Quinta Linda Evans, Mayor Cove Communities S.C. Ted Weill, Mayor, City of Rancho Mirage Tribal Nations County of Imperial County of Riverside At-Large - At-Large - Imperial Irrigation District James C. Hanks, Director Imperial Irrigation District JB Hamby, Director

NON-AGENDA PUBLIC COMMENTS

An opportunity for members of the public to address the Coachella Valley Energy Commission on issues that are not included on the agenda for a maximum of three (3) minutes per speaker. Comments are limited to 20 minutes total.

DISCUSSION/ACTION

INFORMATION

1. Welcome, Commission and Staff Introduction …………………………………. 1 #1 85 CVEC Agenda Memo .docx 2. Energy Department Overview ……………………………………………………… 2 Energy Department Overview.docx CVEC Energy Overview.pptx

3. IID Coachella Valley Energy Service Background ………………………………. 19 #3 85 CVEC Agenda Memo .docx All-American Canal and Hydroelectric Diagram.pdf IID Coachella Valley Territory Background Memo.pdf 1934 Agreement of Compromise.pdf All-American Canal Contracts Background from the Hoover Dam Documents.pdf 1943 Agreement of Sale and Purchase between California Electric and IID.pdf Water Code Sections 22115-22124, Irrigation District Electric Power.pdf Water Code Sections 23450-23465, Cooperation with County Water Districts.pdf Coachella Valley Landowners, All-American Canal Advertisement.pdf Coachella Valley Canal Debt, All-American Canal Advertisement.pdf Coachella Valley Farmers, All-American Canal Advertisement.pdf

4. Purpose of the Commission and AB 1021 Discussion ………………………….. 169 #4 85 CVEC Agenda Memo.docx CVEC Area Map.pdf IID Resolution 25-2021.pdf CVEC Formation News Release.pdf Resolution 25-2021 News Release.pdf AB 1021.pdf

5. Review of CVEC Bylaws …………………………………………………………… 187 #5 85 CVEC Agenda Memo.docx July 20, 2021 CVEC Bylaws.pdf City of Indio Letter.pdf Draft Monthly Meeting Location Rotation Calendar.docx

COMMISSIONER COMMENTS

FUTURE MEETING PLANNING

ADJOURNMENT IMPORTANT NOTICES

For accommodations for persons with disabilities, please call the CVEC Secretary at (760) 398- 5812. Notifications received 48 hours in advance of the meeting will enable reasonable accommodations be made.

Consistent with the requirements of the State of California and subject to any future health directives, the Coachella Valley Energy Commission will allow the public to attend this meeting in person provided attendees wear an appropriate face covering.

For those members of the public who choose to participate virtually, the meeting may be heard or viewed on the live audio or video stream at www.iid.com. To comment on items within the jurisdiction of the CVEC, the public may: (1) address the CVEC at the meeting site in person or (2) submit a public comment of 250 words or less to [email protected] by 10:00 AM the day of the meeting. If your comments are related to an agenda item, please identify the item number in your email subject line.

All public records relating to any agenda item are available for public inspection at the time the record is distributed to all or a majority of the Commissioners in the office of the Secretary to the CVEC located at 81-600 Avenue 58, La Quinta, CA, during regular business hours, 7:00 AM to 5:00 PM, Monday through Thursday, excluding holidays or by visiting CVEC’s web page (www.iid.com/CVEC). Regular meetings are livestreamed at www.iid.com/ livestream. August 5, 2021 AGENDA MEMORANDUM Information

ITEM NO. 1 SUBJECT Welcome, Commission and Staff Introductions CONTACT JB Hamby, Director ([email protected])

Background This is the organizational and first meeting of the Coachella Valley Energy Commission. Representatives from the cities of Coachella, Indio, La Quinta, Cove Communities Services Commission, Riverside County, Imperial County, and Tribal Nations will be present. Present also are IID Directors, management, and energy department staff.

Fiscal Analysis N/A

Recommendation Introductions of Commission members, IID staff, and other stakeholders.

Attachments None.

1 August 5, 2021 AGENDA MEMORANDUM Information

ITEM NO. 2 SUBJECT Energy Department Overview CONTACT Marilyn Gilbert, energy manager ([email protected])

Background This presentation is a high-level overview of IID’s Energy Department including, but not limited to: service area, customer demographics, operational oversite, renewable resources, comparative energy rates and compliance.

Fiscal Analysis None

Recommendation None

Attachments CVEC Energy Overview V03 MG.ppt

2 Energy Department Overview

Marilyn del Bosque Gilbert Energy Manager August 5, 2021

3 Agenda • About IID • Service Area • Balancing Authority • Benefits of a Publicly Owned Utility • IID Energy Department Budget • IID Customers • Operational Oversight • Power Restoration Process • Renewable Resources • Compliance Entities • Reliability Compliance • Summer Bill Comparison

2 4 About IID • 3rd largest public power provider in California • Manage more than 1,000 MWs of renewable resources • Over 150,000 electric customers • IID is a vertically integrated utility

3 5 Service Area • Spans more than 6,400 square miles including: . Most of Imperial County and sections of Riverside and San Diego counties . Interconnects to other balancing authorities for the import/export of energy

Eastern Imperial Coachella Valley Valley ( Miles) (Miles) Distribution 2,345 2,847 Overhead 974 2,452 Underground 1,371 395 Transmission 964 1,085 Total 3,309 3,931 4 6 Balancing Authority

• Balancing Authority (BA) . Responsible for maintaining the electricity balance within our service territory • Open Access Transmission Tariff (OATT) . Allows the use of IID-owned transmission facilities to deliver energy to other balancing authorities • Benefits . IID customers benefit from local control* and low rates.

* Most of the state is in CAISO but IID is not

Source: CAISO 5 7 Benefits of a Publicly Owned Utility A Comparison of Investor-owned Utilities and Publicly Owned Utilities

Investor-owned Utility Publicly Owned Utility (IOU) (POU) . For profit . Non-profit . Controlled by state regulators . Local control . Significantly higher rates . Low rates . Lower reliability in California . High reliability Independent control areas . Ex. IID, SMUD, LADWP . Ex. SCE, SDG&E, PG&E . Energy rates set locally . Energy rates set by CPUC . Allegiance to the customer . Allegiance to the shareholder

6 8 2021 IID Energy Department Budget

• 2021 IID Energy Department Budget . $521,884,000 • Total IID Employees 1,441 positions . Energy Department 486 positions . Water Department 476 Positions . Joint Services Employees (HR, Finance, Call Center, etc.) 479 positions

7 9 IID Customers

All Customers Residential Commercial Industrial Total Coachella Valley 85,133 11,313 660 97,106 Imperial Valley 51,705 10,024 164 61,893 Total 136,838 21,336 824 158,998

Residential Rate Assistance Customers Coachella Valley 4,720 (40%) Imperial Valley 7,080 (60%) Total 11,800

Data from June 2021 8 10 Operational Oversight

9 11 Power Restoration Process

• Outage is identified by either IID’s Phase 1: System Operations Center or by a Notification customer.

• Troubleshooter is dispatched to Phase 2: assess outage, estimate restoration Assessment time and identify additional resources.

• Issue is repaired and power is restored Phase 3: by either troubleshooter, line crew or Repair/Restoration substation crew.

• Staff and customers are notified of the Phase 4: Closure restoration.

10 12 Renewable Resources • Abundant renewable energy resources • 1,100 MW of interconnected renewable resources: . small hydro, geothermal, biomass and solar • Abundant renewable resources in the region • Home to the Salton Sea Source: Getty Images Known Geothermal Resource Area

Source: Greenleaf-Power.com

11 13 Compliance Entities

. Energy Policy Act of 2005, NERC Reliability Standards became enforceable in June 2007 . Penalties as high as $1,291,894 per violation per day

12 14 Reliability Compliance

• Balancing authority within the Western Electricity Coordinating Council (WECC) region . The North American Electric Reliability Corporation (NERC) provides industry-wide oversite and delegates regional oversite to WECC . As an owner and operator of Bulk Electric System assets, IID must comply with applicable NERC Reliability Standards . Registered functions include Balancing Authority, Transmission Operator, and Transmission Owner

13 15 Summer Bill Comparison Residential Monthly Bill Summer 2,000 kWh Winter 800 kWh $900.00 $799 $800.00

$691 $700.00 $614 $600.00 $511 $500.00

$400.00 $383 $298 $314 $300.00 $257 $265 $248 $222 $200.00 $129 $108 $113 $100.00

$- IID APS SMUD SCE LADWP PG&E SDG&E Summer Winter 14 16 Questions?

15 17 August 5, 2021 AGENDA MEMORANDUM Information

ITEM NO. 3 SUBJECT IID Coachella Valley Energy Service Background CONTACT JB Hamby, Director ([email protected])

Background The Imperial Irrigation District was formed by a vote of the people of the Imperial Valley in 1911 with a popularly elected five-member Board of Directors in order to divert, deliver, and drain water from the Colorado River for use in Imperial Valley. IID has been the trustee of the single largest water right on the Colorado River for over a century intended for the sole benefit of the people and lands of the Imperial Valley and its Board of Directors who must reside within the IID water service area.

The 1928 Boulder Canyon Project Act authorized the construction of the Hoover Dam and the All-American Canal. The legislation anticipated that water delivered from a controlled Colorado River could be used to produce electric power sold to consumers that would finance the cost of constructing facilities including the All-American Canal. The Secretary of the Interior recognized that the All-American Canal could be built to serve the Imperial and Coachella Valleys with repayment and operational savings for both districts if they were merged under the auspices of IID, which already had significant experience in delivering irrigation water via canals, for a unified water and power project with hydro-electric drops planned along its length and branches, including a drop that was to be sited east of the City of Coachella.

Following the completion of the Seven Party Agreement (the agreement that established the priority rights and allocations of California’s Colorado River water diverting districts with IID and CVWD then sharing an equal priority), a draft contract was completed in 1931 for the repayment of All-American Canal construction costs to the United States.

An election was then held in which IID electors approved the draft All-American Canal repayment contract that called for the merger of IID and CVWD into one district, while retaining a borough form of government for each of the two merged districts. Under the draft contract, were CVWD not to accept annexation, the All-American Canal would not be extended to the Coachella Valley.

Despite the CVWD Board of Directors’ support of the contract, the contract required a majority of Coachella Valley landowners to petition for inclusion in order to become effective, which did not occur. Substantial opposition organized by Coachella Valley landowners to the contract and the CVWD board itself grew in the Coachella Valley out of demands for separate governance, fears that the cost of IID’s potential default on its

18 then substantial bonds would be incurred by Coachella Valley landowners, and objections to IID’s perfected rights claims to Colorado River water. The demand by Coachella Valley landowners for a separate contract and separate governance led to the successful recall and replacement of five members of the CVWD board in 1932.

At the end of 1932, IID executed an amended repayment contract with the Secretary of the Interior. The newly constituted CVWD Board of Directors opposed inclusion with IID and demanded a separate contract, however, Interior Department officials stated that before Interior would consider a separate contract for CVWD, questions of power and other matters would have to be resolved between the two districts and held that one district with one contract was preferable.

In 1933, IID obtained a superior court judgement validating the contract with the United States. The CVWD Board of Directors immediately opposed validation of the IID contract as leverage for a separate contract for their district by appealing the validation to the Supreme Court of California. By stipulation, IID and CVWD settled the validation litigation by entering into the 1934 Agreement of Compromise effectively dismissing the appeal.

The Agreement of Compromise provided that CVWD would execute an independent All- American Canal contract with the United States without being annexed by IID, that IID would have priority Colorado River water rights over CVWD, that IID could sell power in the CVWD service territory and that CVWD would not compete in power sales, for IID to control and develop all electric power opportunities along the All-American Canal and to pay CVWD eight-percent of the net proceeds annually, among other provisions to effectively settle water rights disputes and to combine and coordinate power rights as a unified project for the maximum benefit of both areas.

Per the agreement, CVWD leased and demised to IID for 99 years the exclusive and entire right to operate, manage, develop, and control power rights and the use, sale, and control of the power produced in relation to the All-American Canal. California Water Code sections 22115 through 22124 provide that irrigation districts may provide and sell electric power outside their boundaries. California Water Code sections 23450 through 23465 were enacted specifically to facilitate and authorize the Agreement of Compromise.

In 1943, IID purchased the assets of the California Electric Power Company in Imperial and portions of Riverside and San Diego Counties expressly with the intent to pay off IID’s and CVWD’s All-American Canal debts through the sale of hydro-electric power to customers in the Imperial and Coachella Valleys.

Fiscal Analysis N/A

19 Recommendation Discussion regarding the background and origins of IID’s energy service to portions of the greater Coachella Valley.

Attachments 1. All-American Canal and Hydroelectric Diagram 2. IID Coachella Territory Background Memo 3. 1934 Agreement of Compromise 4. All-American Canal Contracts Background from the Hoover Dam Documents 5. 1943 Agreement of Sale and Purchase between California Electric and IID 6. Water Code Sections 22115-22124, Irrigation District Electric Power 7. Water Code Sections 23450-23465, Cooperation with County Water Districts 8. Coachella Valley Landowners, All-American Canal Advertisement 9. Coachella Valley Canal Debt, All-American Canal Advertisement 10.Coachella Valley Farmers, All-American Canal Advertisement

20 IMPERIAL IRRIGATION DISTRICT WATER APPROPRIATION PERMIT LOCATIONS

Salton Sea

Calipatria CALIFORNIA ARIZONA

Coachella Canal Colorado River Westmorland

Brawley Imperial Dam IMPERIAL COUNTY Diversion Point for

East Canal Highline Permit #’s 7643, 7644, 7645, 7646, 7647, 7648 and 7649 Central Canal Main

Westside Main Canal

Imperial Holtville Pilot Knob Hydroelectric Plant All-American Canal El Centro Terminal Point for AAC Drop 4 AAC Drop 3 Permit #7644 Hydroelectric Plant Hydroelectric Plant AAC Drop 5 Terminal Point for Terminal Point for Hydroelectric Plant Permit #7647 Permit #7646 Brock Reservoir Terminal Point for Yuma Permit #7648 AAC Final Diversion Terminal Point for Permit #7643 AAC Drop 2 AAC Drop 1 Calexico Hydroelectric Plant Hydroelectric Plant Terminal Point for Terminal Point for mexico Permit #7645 Permit #7649

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Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites

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Up^ Add To My Favorites WATER CODE - WAT DIVISION 11. IRRIGATION DISTRICTS [20500 - 29978] ( Division 11 added by Stats. 1943, Ch. 372. ) PART 5. POWERS AND PURPOSES [22075 - 22982] ( Part 5 added by Stats. 1943, Ch. 372. ) CHAPTER 1. Powers and Purposes Generally [22075 - 22186] ( Chapter 1 added by Stats. 1943, Ch. 372. )

ARTICLE 3. Electric Power [22115 - 22124] ( Article 3 added by Stats. 1943, Ch. 372. )

22115. Any district heretofore or hereafter formed may purchase or lease electric power from any agency or entity, public or private, and may provide for the acquisition, operation, leasing, and control of plants for the generation, transmission, distribution, sale, and lease of electric power, including sale to municipalities, public utility districts, or persons.

(Added by Stats. 1943, Ch. 372.)

22116. All provisions of the California Irrigation District Act, and of all acts amendatory thereof and supplemental thereto, applying to irrigation shall, as codified in this division, also be so construed and enforced as to apply to electric power.

(Amended by Stats. 1943, Ch. 687.)

22117. The officers, agents, and employees of districts have the same powers, duties, and liabilities respecting electric power and the acquisition, operation, and control relating to it as they have respecting irrigation or districts.

(Added by Stats. 1943, Ch. 372.)

22118. The board and the officers, agents, and employees of districts shall do all necessary and proper acts for the construction and operation of its electric power works.

(Added by Stats. 1943, Ch. 372.)

22119. A district may distribute power without regard to any assessments levied by it. (Added by Stats. 1943, Ch. 372.)

22120. A district may sell, dispose of, and distribute electric power for use outside of its boundaries.

(Amended by Stats. 1943, Ch. 687.)

22121. Subject to the conditions in this article a district may in the manner required by law make special appropriations of water for power purposes. (Added by Stats. 1943, Ch. 372.)

22122. Any use of water for generating electric power at any given time of the year which is in excess of the water appropriated and beneficially used for irrigation purposes by the district at that period of the year shall be

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subject to all prior existing appropriations by any municipal corporation which is proceeding in good faith in the expenditure of money and the construction of works designed to divert the water appropriated.

(Added by Stats. 1943, Ch. 372.)

22123. Any district providing electric power to areas outside its boundaries shall be subject to reasonable rules, regulations, and orders of the governing body of the city or county area being served, but, in no event, more restrictive than the rules, regulations, and orders of the Public Utilities Commission upon utilities providing electric power to cities or counties. No district may impose rates, rules, regulations, or orders in any such area outside its boundaries which are different from rates, rules, regulations, or orders imposed within the district, except with the consent of the governing body of the affected area. (Added by Stats. 1969, Ch. 1374.)

22124. Every district furnishing electrical power shall comply with Section 8029.5 of the Public Utilities Code.

(Added by Stats. 1982, Ch. 549, Sec. 5.)

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Up^ Add To My Favorites WATER CODE - WAT DIVISION 11. IRRIGATION DISTRICTS [20500 - 29978] ( Division 11 added by Stats. 1943, Ch. 372. ) PART 6. COOPERATION [23100 - 23465] ( Part 6 added by Stats. 1943, Ch. 372. ) CHAPTER 3. Cooperation With Other Districts [23375 - 23465] ( Chapter 3 added by Stats. 1943, Ch. 372. )

ARTICLE 2. Cooperation with County Water Districts [23450 - 23465] ( Article 2 added by Stats. 1943, Ch. 372. )

23450. As used in this article “districts” means one or more irrigation districts together with one or more county water districts. (Added by Stats. 1943, Ch. 372.)

23451. As used in this article “contract with the United States” means a contract made under the provisions of the Federal Reclamation Law for any or all of the following purposes: (a) Acquisition, extension, or operation of works for irrigation, drainage, flood control, or development of electric or other power. (b) A water supply. (c) Assumption as principal or guarantor of indebtedness to the United States.

(Added by Stats. 1943, Ch. 372.)

23452. As used in ths article “power rights” includes power possibilities, power resources, and power privileges.

(Added by Stats. 1943, Ch. 372.)

23453. Districts may contract with each other pursuant to this article only when both: (a) Each of the districts before or after contracting pursuant to this article makes a contract with the United States.

(b) All of the contracting districts propose to divert or carry water for use in the districts by means of a single main canal or system of works. (Added by Stats. 1943, Ch. 372.)

23454. Any contract between districts made before each of the districts has made a contract with the United States shall be effective when all of the districts have so contracted with the United States. (Added by Stats. 1943, Ch. 372.)

23455. In any contract between districts they may contract to compromise and settle any controversies existing between them as to the extent or priority of their respective rights and claims to the use of water and agree upon the limitation and definition of the areas within them respectively upon which such water shall be beneficially used.

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23456. Districts may also contract that applications theretofore filed by either of them with the State Water Rights Board or its predecessor shall be amended to conform to the provisions of the contract between them and that permits and licenses be issued accordingly. (Amended by Stats. 1957, Ch. 1932.)

23457. Districts may also contract to compromise and settle any controversies existing between them as to power rights upon the canal or other water system, and for these purposes any of the districts may demise to another of the districts all of the power rights which the demising district has or thereafter obtains. (Added by Stats. 1943, Ch. 372.)

23458. The lease may be made for any term not exceeding 99 years and may vest in the lessee the operation, management, development, and control of the power rights and the use, sale, and control of power produced therefrom. The lease may provide for the payment of rentals and any other matters relevant to the leasing of the power rights as the districts may in their discretion deem advisable not in conflict with the Constitution of this State nor with the express terms of the statutes under which the districts are respectively organized and exist. (Added by Stats. 1943, Ch. 372.)

23459. Districts may also contract that when the lease has been executed, the lessor may be required upon any terms agreed upon to procure for the lessee district contracts or applications for electric power signed by consumers in the lessor district and that the lessee district shall serve electric power in the lessor distict at rates and upon terms and conditions prescribed in the contract.

(Added by Stats. 1943, Ch. 372.)

23460. Districts may also contract that they shall cooperate to obtain permits and licenses to appropriate water for power purposes and to construct power facilities from the State Water Rights Board or any federal agency or both in the manner prescribed in the contract. (Amended by Stats. 1957, Ch. 1932.)

23461. Districts may also contract for any other matters authorized by law. (Added by Stats. 1943, Ch. 372.)

23462. Districts so contracting have full power to perform and observe the contracts in accordance with the tenor and spirit thereof. (Added by Stats. 1943, Ch. 372.)

23463. Contracts made pursuant to this article shall be liberally construed to effectuate them according to their true intent.

(Added by Stats. 1943, Ch. 372.)

23464. The execution of a contract between districts may be authorized by resolution of their respective boards.

(Added by Stats. 1943, Ch. 372.)

23465. Any and all such contracts executed prior to September 13, 1941, by and between such districts and all acts of boards of directors and other officers of such districts leading up to and including the execution of such contract or contracts, are hereby legalized, ratified, confirmed and declared valid to all intents and purposes, and the power of such districts to execute, carry out, perform and observe such contracts and every provision thereof is hereby ratified, confirmed and declared valid and such contracts are hereby declared to be in all respects the legal and binding obligations of, against and in favor of each of such contracting districts. (Added by Stats. 1943, Ch. 372.)

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ITEM NO. 4 SUBJECT Purpose of Commission and AB 1021 Discussion CONTACT JB Hamby, Director ([email protected])

Background IID serves the retail electric needs of a portion of the greater Coachella Valley under the Agreement of Compromise between IID and CVWD dated 1934. Population growth of the Coachella Valley has substantially outpaced that of the Imperial Valley. While the Coachella Valley represented only a small fraction of IID’s energy customers at the inception of IID energy service to portions of the Coachella Valley, today the Coachella Valley portion of the IID energy service area represents over 60% of the ratepaying population due to rapid growth not anticipated nearly 90 years ago. Calls for additional input by Coachella Valley IID ratepayers on local energy issues date back to at least the early 1970’s. Over the last 50 years, the IID Board has proposed multiple concepts to address said concerns without affecting IID’s Imperial Valley water rights and responsibilities.

The 99-year lease provisions set forth in the Agreement of Compromise expire in 2033. Questions and concerns regarding continued energy service to the Coachella Valley after 2033, representation of and by Coachella Valley energy stakeholders, and the protection of IID’s Imperial Valley water rights necessitated the formation of the Commission in order to resolve said questions and concerns by providing a temporary transition toward locally developed permanent solutions for energy service and governance forged between Coachella Valley energy stakeholders and IID.

The Commission is formed for the purpose of providing direct, immediate, and diverse local representation by Coachella Valley energy stakeholders for the unique energy needs of the greater Coachella Valley portion of the IID energy service area and to develop a long-term strategic plan for continued energy service to the Coachella Valley following the 2033 expiration of the 99-year lease provision of the 1934 Agreement. The Commission will provide the link between existing service and governance as provided in the Agreement of Compromise and the permanent service and governance option formed collaboratively and cooperatively between the IID and Coachella Valley stakeholders represented through the Commission.

In the near term, the Commission will serve as the representative body on issues of interest and concern to IID energy stakeholders in the greater Coachella Valley that may include, but is not limited to, system reliability and resiliency, customer and community services, planning for growth, infrastructure financing, development of localized rate

169 and/or fee structures to enable elevated levels of service above the common base level of service provided by IID, obtaining favorable state and federal funding and policy. On a longer-term planning horizon, the Commission will study and develop a strategic plan for energy service and governance in the Coachella Valley at the expiration of the 99-year lease provision of the Agreement of Compromise. Any long-term study performed by the Commission will include for each proposed option an examination of the implications to the IID Balancing Authority, an analysis of issues regarding representation by and for ratepayers, an estimated cost to provide service under each option with special focus on the impact to residential and low-income ratepayers, and determination whether any option may require amendment to existing state law or the Agreement of Compromise.

The Commission will produce an Annual Progress Report summarizing the Commission’s activities for that year, by July 1, annually. By July 1, 2025, the Commission will publish a Coachella Valley Energy Service and Governance Plan outlining the recommended long-term option to be implemented after the expiration of the 99-year lease in 2033. The plan will be updated on an annual basis for years 2026 through 2032 and will be included in the Annual Progress Report. Professional independent facilitation knowledgeable in energy utility issues will be retained for the benefit of the Commission to guide, explain, and explore potential options and provide industry information and best practices in a neutral manner to the Commission to enable informed decision making.

The Commission is intended to serve as a more effective, proactive, and viable approach to meaningfully answer local concerns than any previous, current, or future legislation that would not adequately account for the complexity of the issues at hand or provide adequate local participation and representation by and for Coachella Valley stakeholders on immediate and long-term energy planning.

Fiscal Analysis N/A

Recommendation Discussion regarding the purpose of the Coachella Valley Energy Commission and the impacts of AB 1021 to IID ratepayers in the Coachella Valley.

Attachments 1. CVEC Area Map 2. IID Resolution 25-2021 3. CVEC Formation News Release 4. Resolution 25-2021 News Release 5. AB 1021

170 ¨¦§10

RANCHO MIRAGE PALM DESERT INDIO INDIAN WELLS COACHELLA 10 LA QUINTA ¨¦§

Mecca

North Shore TS86

Text

DESERT SHORES TS111 SALTON SEA BEACH BOMBAY BEACH

SALTON CITY

Legend TS86 IID Energy Service Area

CVWD Boundary TS78 Intersected Areas

WESTMORLAND

DISCLAIMER: IIDIID EnergyEnergy ServiceService AreaArea -- CVWDCVWD BoundaryBoundary MapMap This is not an official map. Imperial Irrigation District does not guarantee the accuracy of I data in this map. Any errors or omissions shall not be considered the responsibility of the CURRENT COORDINATE SYSTEM: NAD_1983_StatePlane_California_VI_FIPS_0406_Feet Imperial Irrigation District. Plotted by: ljcervantes CURRENT COORDINATE SYSTEM: NAD_1983_StatePlane_California_VI_FIPS_0406_Feet171 Date: 4/28/2021 172 173 174 175 176 177 178 IID Board approves formation of the Coachella Valley Energy Commission | News Releases | Imperial Irrigation District 7/28/21, 7:31 AM

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News Releases Current IID News IID Board approves formation of the Coachella Valley Energy Commission The Imperial Irrigation District Board of Directors, during the board’s regular meeting of July 13 held in the Coachella Valley, took action to approve bylaws for the formation of the Coachella Valley Energy Commission. Post Date: 07/13/2021

The Imperial Irrigation District Board of Directors, during the board’s regular meeting of July 13 held in the Coachella Valley, took action to approve bylaws for the formation of the Coachella Valley Energy Commission.

The Commission is tasked with providing immediate and diverse local representation by Coachella Valley stakeholders for the unique energy needs of the greater Coachella Valley portion of the Imperial Irrigation District energy service area. Its focus includes the development of a long-term strategic plan for continued energy service to the Coachella Valley following the 2033 expiration of the 99-year lease between the Coachella Valley Water District and IID.

“By forming the Coachella Valley Energy Commission today, the IID Board continues to move this local alternative to AB 1021 forward,” said IID Board President James Hanks. “This is a very important step as it allows Coachella Valley representatives to set the direction for the future of energy service in the Coachella Valley and, importantly, for IID to protect Imperial Valley’s water rights.”

The Commission will consist of 14 Commissioners, all with equal voting privileges, representing the IID Board, the cities of Coachella, Indio, La Quinta, the Cove Communities Services Commission, Coachella Valley Tribal Nations, at-large members, and both Riverside and Imperial counties. It is expected to meet monthly.

“Within the past several weeks IID has held individual stakeholder meetings across the Coachella Valley with each city, tribe, Riverside and Imperial counties, and a virtual Town Hall with eastern Coachella Valley stakeholders. The formation of the CVEC has been favorably received by all stakeholders that IID has met with,” noted IID Vice President J.B. Hamby. “The questions and concerns regarding continued energy service in the Coachella Valley after 2033, the representation of and by Coachella Valley energy stakeholders, and the protection of IID’s Imperial Valley water rights, necessitate the formation of this commission.”

He added, “IID has exceeded every single one of its pledges to answer the concerns of Assemblyman Mayes and Assemblyman Garcia. We’ve done our part and respectfully, and firmly, ask them to reciprocate by allowing Coachella Valley communities and the IID to form a local solution to these local issues at the local level — not through a state mandate.”

In June, the IID Board approved Resolution 25-2021 to protect Imperial Valley’s water rights from legislative attempts to alter the governance of the IID Board by establishing the Coachella Valley Energy Commission as a mutually beneficial and more effective alternative to Assembly Bill 1021.

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News Releases Current IID News IID Board Takes Action to Protect Water Rights and Address Coachella Valley Concerns On Tuesday, the Imperial Irrigation District Board of Directors adopted a resolution to better serve IID’s Coachella Valley energy customers and better protect Imperial Valley’s water rights. Post Date: 06/02/2021

On Tuesday, the Imperial Irrigation District Board of Directors adopted a resolution to better serve IID’s Coachella Valley energy customers and better protect Imperial Valley’s water rights.

The Board’s resolution seeks to provide a local alternative to AB 1021 by Assemblyman Chad Mayes (I-Yucca Valley) that would create a number of adverse consequences for the region, if passed into law, including giving Coachella Valley energy ratepayers a say over IID’s water rights and policy in Imperial Valley.

The Board’s resolution calls for the formation of a Coachella Valley Energy Commission composed of IID Directors and Coachella Valley representatives to address local energy issues and plan for continued energy service to the Coachella Valley after 2033 as a locally driven alternative to AB 1021.

The resolution also provides that in the event IID’s alternative fails to result in removal of the bill from the Legislature, IID management and staff are directed to immediately prepare a Coachella Valley Exit Plan and legal action as defensive measures to protect the district and Imperial Valley’s water rights if enacted as law.

“The board’s action is a breakthrough on a local challenge fifty years in the making,” said JB Hamby, Vice President of the IID Board. “It’s a milestone commitment by the IID to offer this local solution to this local issue that makes state-imposed action unnecessary — while leaving all options on the table to protect the IID and Imperial Valley’s water rights.”

The IID Board of Directors manages the single largest water right on the Colorado River for the benefit of IID’s Imperial Valley service area. During Tuesday’s presentation on the item, Hamby explained that the IID Board’s most critical role is its trustee responsibility over Imperial Valley’s water rights.

“Allowing a member installed from outside the water service area to play any kind of governing role over Imperial Valley’s water undermines the trust obligation of the IID Board and poses serious risks to IID’s water rights and our users’ right to service as affirmed multiple times by the United States Supreme Court.”

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Hamby continued, “That is why this local alternative is required. The Board’s action will ensure our Coachella Valley customers are better served and Imperial Valley’s water rights are better protected.”

The Coachella Valley Energy Commission would be composed of IID Directors and a diverse array of Coachella Valley representatives appointed from the city of Coachella, city of Indio, city of La Quinta, Cove Communities Services Commission, Salton Community Services District, a Coachella Valley tribal reservation, unincorporated Riverside County, and two at-large members.

The Commission would deliberate on and represent the needs and concerns of IID’s Coachella Valley customers on local energy issues in the near-term and develop a long-term strategic plan for continued energy service to IID’s Coachella Valley energy service area after the expiration of IID’s 99-year power lease in 2033. That plan would analyze issues of separate representation by and for ratepayers and determine costs and potential impacts to residential ratepayers and low-income households.

IID Board President James C. Hanks said of the Coachella Valley Energy Commission, “This is the preferred alternative for the IID and our Coachella Valley customers. We can’t wait until the 99-year power lease expires in 2033 to plan the future. We have to come together, sit down, and find common ground.” He continued, “In doing so, we’ll develop a win-win for both areas and the region’s ratepayers overall.”

At the Capitol in Sacramento, Assemblyman Eduardo Garcia (D-Coachella) spoke of the IID Board’s resolution passed just hours earlier. Speaking from the Assembly floor, Garcia said he was optimistic that parties will come together and come up with a reasonable and amicable solution. “Locally there are preferred pathways that both the Imperial Irrigation District and local stakeholders would rather take to solve this problem,” he said.

IID will develop a set of bylaws and MOU throughout the month of June in consultation with its Coachella Valley stakeholders. The Board will consider the draft bylaws and MOU as information at its July 6 Board meeting in El Centro and for action in the Coachella Valley at its July 13 La Quinta Board meeting.

“I’m looking forward to working with our Coachella Valley stakeholders on the Commission and with Assemblymen Mayes and Garcia to ensure that the bill is promptly pulled from the Legislature,” said Hamby.

Attached: IID Board Resolution No. 25-2021

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https://www.iid.com/Home/Components/News/News/907/30 Page 2 of 2 182 AMENDED IN SENATE JULY 1, 2021 AMENDED IN ASSEMBLY MAY 24, 2021 AMENDED IN ASSEMBLY APRIL 19, 2021 AMENDED IN ASSEMBLY MARCH 18, 2021 california legislature—2021–22 regular session

ASSEMBLY BILL No. 1021

Introduced by Assembly Member Mayes

February 18, 2021

An act to add Section 56378.2 to the Government Code, and to add Section 21562.6 to the Water Code, relating to irrigation districts. districts, and declaring the urgency thereof, to take effect immediately.

legislative counsel’s digest AB 1021, as amended, Mayes. Imperial Irrigation District. (1) The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the authority and procedure for the initiation, conduct, and completion of changes of organization, reorganization, and sphere of in¯uence changes for cities and districts, as speci®ed. Under the act, each local agency formation commission is required to initiate and make studies of existing governmental agencies, including, but not limited to, studies to determine each local agency's maximum service area and service capacities. This bill would require the local agency formation commissions for the County of Imperial and the County of Riverside to conduct and publish on their internet websites a joint study of voting rights in the Imperial Irrigation District, options for providing electricity in the Imperial Irrigation District, District and options for alternative

183 AB 1021 Ð 2 Ð governance structures that provide for proportional representation for the Imperial Irrigation District board of directors, as speci®ed. The bill would require the study to be published no later than July 1, 2023. 2022. By imposing new duties on the speci®ed local agency formation commissions, the bill would impose a state-mandated local program. (2) Existing law, the Irrigation District Law, with certain exceptions, requires a director on the board of an irrigation district that provides electricity for residents of the district to be a voter of the district and a resident of the division that the director represents. Existing law authorizes an irrigation district to sell, dispose of, and distribute electricity for use outside of the district's boundaries. This bill would require the membership of the board of directors of the Imperial Irrigation District to increase from 5 to 6 members, with the additional director being a nonvoting member with all of the other rights as the existing directors, and meeting certain quali®cations. The bill would require the nonvoting director to be appointed by the county supervisor who represents the largest amount of population in the electrical service area. The bill would require the nonvoting director to serve a term of 4 years. The bill would require the nonvoting director to represent the electrical service area and to live in the service area at the time of their appointment and throughout their tenure on the board, and if the nonvoting director relocates outside of the electrical service area, the director's membership on the board would terminate and a new member would be required to be appointed. The bill would require that, if the Imperial Irrigation District no longer serves electricity to the electrical service area, the nonvoting director's membership on the board terminate, and membership of the board of directors decrease from 6 to 5. By imposing new duties on local government relating to appointment of the nonvoting director, the bill would impose a state-mandated local program. (3) This bill would make legislative ®ndings and declarations as to the necessity of a special statute for the Imperial Irrigation District. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

184 Ð 3 Ð AB 1021

(5) This bill would declare that it is to take effect immediately as an urgency statute. 2 Vote: majority ⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

line 1 SECTION 1. Section 56378.2 is added to the Government line 2 Code, to read: line 3 56378.2. (a) Notwithstanding any other law, the commissions line 4 for the County of Imperial and the County of Riverside shall line 5 conduct and publish on their internet websites a joint study of all line 6 both of the following: line 7 (1) Voting rights in the Imperial Irrigation District. The joint line 8 study shall include a description of voting rights in the district and line 9 a determination of whether and how the district can extend voting line 10 rights to its residents. line 11 (2) line 12 (1) Options for providing electricity in the Imperial Irrigation line 13 District's jurisdiction and other affected service areas, in the line 14 circumstance that the district desires to no longer provide electrical line 15 service in its jurisdiction. line 16 (3) line 17 (2) Options for alternative governance structures that provide line 18 for proportional representation for the Imperial Irrigation District line 19 board of directors. line 20 (b) The joint study described in subdivision (a) shall be line 21 published no later than July 1, 2023. 2022. line 22 SEC. 2. Section 21562.6 is added to the Water Code, to read: line 23 21562.6. (a) This section applies to the Imperial Irrigation line 24 District. line 25 (b) Notwithstanding Sections 21100 and 21550 and Division 3 line 26 (commencing with Section 56000) of Title 5 of the Government line 27 Code, the membership of the board of directors shall increase from line 28 ®ve to six. line 29 (c) The director of the board added pursuant to subdivision (b) line 30 shall be a nonvoting director with all of the other rights as existing line 31 directors.

185 AB 1021 Ð 4 Ð

line 1 (d) The nonvoting director shall be appointed by the county line 2 supervisor who represents the largest amount of population in the line 3 electrical service area. line 4 (e) The nonvoting director shall represent the electrical service line 5 area and shall live in the service area at the time of their line 6 appointment and throughout their tenure on the board. If the line 7 nonvoting director relocates outside of the electrical service area, line 8 the director's membership on the board shall terminate and a new line 9 member shall be appointed. line 10 (f) The nonvoting director shall serve a term of four years. line 11 (g) If the Imperial Irrigation District no longer serves electricity line 12 to the electrical service area, the nonvoting director's membership line 13 on the board shall terminate, and membership of the board of line 14 directors shall decrease from six to ®ve. line 15 (h) The nonvoting director shall comply with Section 1126 of line 16 the Government Code. line 17 (i) For the purposes of this section, ªelectrical service areaº line 18 means the area where the district provides retail electrical service line 19 that is outside of the district's boundaries. line 20 SEC. 3. The Legislature ®nds and declares that a special statute line 21 is necessary and that a general statute cannot be made applicable line 22 within the meaning of Section 16 of Article IV of the California line 23 Constitution because of the conditions unique to the Counties of line 24 Imperial and Riverside and the Imperial Irrigation District. line 25 SEC. 4. If the Commission on State Mandates determines that line 26 this act contains costs mandated by the state, reimbursement to line 27 local agencies and school districts for those costs shall be made line 28 pursuant to Part 7 (commencing with Section 17500) of Division line 29 4 of Title 2 of the Government Code. line 30 SEC. 5. This act is an urgency statute necessary for the line 31 immediate preservation of the public peace, health, or safety within line 32 the meaning of Article IV of the California Constitution and shall line 33 go into immediate effect. The facts constituting the necessity are: line 34 Due to the extreme conditions the state is facing regarding water line 35 and energy, it is necessary for the Imperial Irrigation District to line 36 address these issues affecting customers within their service area line 37 as soon as possible.

186 August 5, 2021 AGENDA MEMORANDUM Information

ITEM NO. 5 SUBJECT Review of CVEC Bylaws CONTACT JB Hamby, Director ([email protected])

Background The Imperial Irrigation District Board of Directors took action on June 1, 2021 to form the Coachella Valley Energy Commission under Resolution 25-2021. The resolution described recommended certain purposes, objectives, membership, and other parameters for the Commission. The IID solicited public comment and participation in the formation of a draft set of bylaws.

Over the months of June and July, IID held individual stakeholder meetings with the cities of La Quinta, Indio, Coachella, Palm Desert, Rancho Mirage, Indian Wells, Riverside County Supervisor V. Manuel Perez (including a co-hosted virtual community meeting with eastern Coachella Valley residents), Imperial County Supervisor Ryan Kelley, Torres Martinez Desert Cahuilla Indians, Cabazon Band of Mission Indians, Augustine Band of Cahuilla Indians, Assemblyman Garcia and Assemblyman Mayes. Topics included IID’s energy service, AB 1021, formation of the Coachella Valley Energy Commission, and input on the formation of Commission bylaws.

The draft bylaws were placed on the information calendar of the July 6 IID board meeting for discussion and in order to solicit public comment from all interested stakeholders. At the board’s July 13 meeting held in La Quinta, the board adopted Commission bylaws incorporating several revisions suggested at the July 6 meeting. At the July 20 board meeting, additional revisions were adopted incorporating several suggestions received via verbal and written comment from community stakeholders as well as other clarifications. Attached is the updated and current version of the bylaws.

Fiscal Analysis The Commission may consider budgeting, expenses, and compensation (6.01, 6.04).

Recommendation Review of the Coachella Valley Energy Commission bylaws as currently written and comments from Commission members on potential revisions. Areas requiring action, potential clarification or revision include:  Composition of Commission membership.  Dates and times of regular meetings.  Request for formal Commissioner appointments from member entities.

187  Manner of selecting At-Large Commissioners.  Election of First and Second Vice Chairpersons.

Attachments 1. July 20, 2021 CVEC Bylaws 2. City of Indio Letter 3. Draft Monthly Meeting Location Rotation Calendar

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BYLAWS OF THE COACHELLA VALLEY ENERGY COMMISSION

ARTICLE 1 Name and Area Boundaries

1.01. NAME. The official name of the organization is the Coachella Valley Energy Commission.

1.02. AREA BOUNDARIES. The area boundaries for the Coachella Valley Energy Commission shall be as shown on Exhibit A attached hereto, more particularly described as those portions of the Coachella Valley Water District (CVWD) water service area overlapped by the Imperial Irrigation District (IID) energy service area.

ARTICLE 2 Purpose and Objectives

2.01. BACKGROUND. IID serves the retail electric needs of a portion of the greater Coachella Valley under the Agreement of Compromise between IID and CVWD dated 1934. The 99-year lease provisions set forth in the Agreement of Compromise expire in 2033. Questions and concerns regarding continued energy service to the Coachella Valley after 2033, representation of and by Coachella Valley energy stakeholders, and the protection of IID’s Imperial Valley water rights necessitated the formation of the Commission in order to resolve said questions and concerns by providing a temporary transition toward a locally developed permanent solution for energy service and governance forged between Coachella Valley energy stakeholders and IID.

2.02. PURPOSE. The Commission is formed for the purpose of providing direct, immediate, and diverse local representation by Coachella Valley energy stakeholders for the unique energy needs of the greater Coachella Valley portion of the IID energy service area and to develop a long-term strategic plan for continued energy service to the Coachella Valley following the 2033 expiration of the 99-year lease provision.

2.03. TRANSITIONARY BODY. The Commission will provide the link between existing service and governance as provided in the Agreement of Compromise and the permanent service and governance option formed collaboratively and cooperatively between the IID and Coachella Valley stakeholders represented through the Commission.

2.04. NEAR-TERM PRE-2033. In the near term, the Commission shall serve as the representative body on issues of interest and concern to IID energy stakeholders in the greater Coachella Valley that may include, but is not limited to, system reliability and resiliency, customer and community services, planning for growth, infrastructure financing, development of localized rate and/or fee structures to enable elevated levels of service above the common base level of service provided by IID, obtaining favorable state and federal funding and policy.

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2.05. LONG-TERM POST-2033. On a longer-term planning horizon, the Commission shall study and develop a strategic plan for energy service and governance in the Coachella Valley at the expiration of the 99-year lease provision of the Agreement of Compromise. Any long-term study performed by the Commission shall include for each proposed option an examination of the implications to the IID Balancing Authority, an analysis of issues regarding representation by and for ratepayers, an estimated cost to provide service under each option with special focus on the impact to residential and low- income ratepayers, and determination whether any option may require amendment to existing state law or the Agreement of Compromise.

2.06. POTENTIAL LONG-TERM OPTIONS. Potential long-term energy service and governance options for consideration for implementation after the expiration of the 99- year lease in 2033 may include, but are not limited to, expansion of the service area of an investor-owned utility, formation of a municipal utility district, formation of a rural electric cooperative, formation of one or more city or county-run municipal utilities, formation of a Joint Powers Authority for electric service, and any other options that may allow for a separate Coachella Valley energy entity to contract with IID for energy services as desired by that entity.

2.07. COMMISSION DELIVERABLES. The Commission shall produce an Annual Progress Report summarizing the Commission’s activities for that year, by July 1 annually. By July 1, 2025, the Commission shall publish a Coachella Valley Energy Service and Governance Plan outlining the recommended long-term option to be implemented after the expiration of the 99-year lease in 2033. The plan shall be updated on an annual basis for years 2026 through 2032 and shall be included in the Annual Progress Report.

2.08. INDEPENDENT FACILITATION. Professional independent facilitation knowledgeable in energy utility issues shall be retained for the benefit of the Commission to guide, explain, and explore potential options and provide industry information and best practices in a neutral manner to the Commission to enable informed decision making.

ARTICLE 3 Membership

3.01. MEMBERS. The Commission shall consist of eleven (11) Commissioners, all of whom shall have equal voting privileges. The Commission shall be comprised of two (2) IID Directors and one Commissioner each from the City of Coachella, City of Indio, City of La Quinta, Cove Communities Services Commission, Coachella Valley Tribal Nations, Riverside County, Imperial County, and two at-large Commissioners.

3.02. MANNER OF APPOINTMENT. The cities of Coachella, Indio, La Quinta, and the Cove Communities Services Commission shall appoint one Commissioner each in the manner of their choosing. Tribal nations within the Coachella Valley shall appoint a Commissioner by consensus or majority appointment. The fourth district Riverside County Supervisor and the fourth district Imperial County Supervisor shall each appoint one

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Commissioner residing in the unincorporated area of each respective county identified in Section 1.02. The Commission shall determine the criteria and manner of appointment for two at-large Commissioners.

3.03. RESIDENCY. All Commissioners, other than IID Directors, must reside in the greater Coachella Valley energy service area identified in Section 1.02 for the duration of their term of service.

3.04. TERMS. The Commissioners, other than IID Directors, shall be appointed to serve for one-year terms. Appointments or re-appointments of Commissioners, shall occur on or before the second Tuesday of January. Commissioners may serve without term limit.

3.05. VACANCIES. A vacancy shall exist upon receipt of a resignation in writing from a Commissioner or upon notice from one of the appointing entities identified in Section 3.01. The vacancy shall be filled by appointment in the manner set forth in Section 3.02.

3.06. ATTENDANCE. Every Commissioner shall attend all regular and special meetings of the Commission, unless there is good cause for an absence.

3.07. EDUCATIONAL REQUIREMENTS. As a condition of serving on the Commission, all Commissioners shall attend a mandatory introductory orientation, ongoing training, and tours of IID energy facilities from time to time to familiarize themselves with the legal and political history of the IID, current state and federal regulatory compliance requirements, and IID’s energy generation, transmission, and distribution operations, services, and policies.

3.08. GOVERNANCE STYLE. The Commission will operate with an emphasis on outward vision, encouragement of diversity in viewpoints, strategic leadership, collective rather than individual decisions, common rather than individual interests, future rather than past or present issues, and use of outreach mechanisms to ensure that the Commission hears the viewpoints and values of customers, the community, and other interested stakeholders.

3.09. PERFORMANCE MONITORING. The Commission will monitor and evaluate the Commission’s process, performance, and progress toward its purpose and objectives.

ARTICLE 4 Meetings

4.01. MEETING PLACE. Meetings of the Commission shall be held at locations within the Commission area defined in Section 1.02. Meetings may be held at the IID Boardroom at its La Quinta Headquarters or rotating from time to time at facilities in the cities of Coachella, Indio, La Quinta, Palm Desert, Indian Wells, Rancho Mirage, facilities in any of the tribal nations, or facilities in the unincorporated areas of Imperial and Riverside counties. Virtual meetings may also be held as consistent with the provisions of California law at the direction of a majority of the Commission.

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4.02. REGULAR MEETINGS. Regular meetings shall be held on the second Thursday of each month, at a time specified by the Commission, unless such day falls on a legal or district holiday, in which event the regular meeting for that month may be held at the same hour and place on the following week provided a quorum will be present.

4.03. SPECIAL MEETINGS. Special meetings of the Commission may be called by the Chairperson or, in his or her absence, the First Vice-Chairperson, or by a majority of the Commissioners. Special meetings shall be held virtually or at a location designated by a majority of the Commission.

4.04. AGENDA NOTICING. Notices of an agenda for regular and special meetings of the Commission shall be electronically mailed to each Commissioner no later than the Friday immediately preceding each regular meeting and no later than 72 hours preceding each special meeting. Minutes of any preceding meeting will be included in the agenda packet if available at the time of mailing.

4.05. QUORUM. A quorum shall consist of six Commissioners. In the absence of a quorum, a meeting of the Commission may be adjourned by vote of a majority of the Commissioners present, and no other business shall be transacted, however, the meeting may continue only for informational purposes.

4.06. VOTING. Each Commissioner is entitled to one vote. Voting shall be by voice vote, unless a Commissioner requests a roll call vote, in which event the Secretary shall call the roll and duly record the votes of each Commissioner. There shall be no voting by mail or proxy voting. A majority vote of the total membership of the Commission shall constitute an affirmative vote.

4.07. BROWN ACT COMPLIANCE. All regular and special meetings shall be held in compliance with the requirements of the Ralph M. Brown Act (Chapter 9, Division 2, Title 5 of the Government Code) and shall be open to the public, unless otherwise authorized by law, or herein. All standing committees created by the Commission and any committee comprised of three or more members of the IID Board of Directors shall comply with the requirements of the Ralph M. Brown Act.

4.08. PUBLIC MEETINGS. All regular and special Commission meetings shall be open to the public and allow for public comment with a limitation of three (3) minutes per speaker.

4.09. NON-PUBLIC MEETINGS. Any attempt to develop a collective concurrence of Commissioners as to action to be taken on any item by Commissioners, either by direct or indirect communication, by personal intermediaries, by serial meetings, or by technological devices, is prohibited, other than at a properly noticed public meeting.

4.10. DISRUPTIONS. In the event that any Commission meeting is willfully interrupted by a person or group of persons, so as to make the orderly conduct of the meeting infeasible, the Commission may first request removal of the individual or individuals. If

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that is unsuccessful, then the Chairperson may order the meeting room cleared and continue in session on scheduled items without an audience, except those representatives of the media shall be allowed to remain. The Commission may also readmit an individual or individuals who were not responsible for the disruption.

4.11. RULES OF ORDER. Meetings shall be governed by the IID Board of Directors Governance Manual, Policy Number G-8, Rules of Order for Board, insofar as such Rules are not inconsistent with or in conflict with these Bylaws.

4.12. AGENDA ITEM REQUESTS. In order to have an item placed on the agenda, a Commissioner shall submit a request to the Coordinator with sufficient time before the publication deadlines for regular meetings and special meetings to allow the Secretary to include them in the published agenda notice. Untimely requests shall be included in the next meeting of the Commission.

ARTICLE 5 Officers

5.01. DESIGNATIONS. The Commission shall have a Chairperson, First Vice Chairperson, and Second Vice Chairperson.

5.02. APPOINTMENTS AND TERM OF OFFICE. The Chairperson shall be a member of the IID Board of Directors as appointed by the IID Board of Directors. The First and Second Vice Chairpersons shall be one elected by the city Commissioners (City of Coachella, City of Indio, City of La Quinta, Cove Communities Services Commission) and one by the non-city Commissioners (Coachella Valley Tribal Nation, Imperial and Riverside counties Commissioners). The at-large Commissioners are not eligible to serve as officers. Each officer shall serve a term of one year, without limit, and shall be elected at the first meeting of the year. The role of First Vice President shall be filled by a city Commissioner in even-numbered years and a non-city Commissioner in odd-numbered years. The role of Second Vice President shall be filled by a non-city Commissioner in even-numbered years and a city Commissioner in odd-numbered years.

5.03. CHAIRPERSON. The Chairperson shall preside at all meetings of the Commission and shall, as required, serve ex-officio as a member of all standing committees of the Commission.

5.04. ABSENCE OF CHAIRPERSON. In the absence of the Chairperson, or in the event of their inability or refusal to act, the First Vice Chairperson shall perform all duties of the Chairperson, and when so acting shall have all powers of and be subject to all restrictions on the Chairperson. In the absence of the Chairperson and the First Vice Chairperson, the Second Vice Chairperson shall perform all duties of the Chairperson, and when so acting shall have the powers of and be subject to all restrictions of the Chairperson.

5.05. SECRETARY. A recording secretary appointed by the IID shall be responsible for recording the proceedings of meetings and submitting minutes to the Commission for approval. The recording secretary shall also be responsible for maintaining the Bylaws as

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well as amendments or any other alterations together with the book of minutes of all meetings of the Commission. The minutes of the meetings shall include the time and place of the meetings whether it be a regular or special meeting and of the proceedings conducted at said meetings.

5.06. COORDINATOR. IID shall appoint, in collaboration with the Coachella Valley Association of Governments, a Coordinator for the Commission and its members. The Coordinator shall be responsible for carrying out and overseeing the activities, actions, and affairs of the Commission as required by its Bylaws and as desired by the Commission. The Coordinator need not be an employee of IID nor a full time position.

5.07. NOTICING. The Secretary and Coordinator shall be responsible for the giving of all notices in accordance with the provisions of these Bylaws, or as required by law, and meeting material distribution.

5.08. AGENDA PLANNING. As a general practice, the Chairperson, First Vice Chairperson, Second Vice Chairperson, Secretary, and Coordinator shall coordinate concerning the creation of the agenda for each regular meeting of the Commission.

ARTICLE 6 Miscellaneous Provisions

6.01. BUDGET AND FUNDING. The Commission will submit to the IID General Manager an itemized yearly budget for proposed expenditures for the Commission to carry out its intents and purposes as reasonable and appropriate.

6.02. COMMITTEES. The Commission, from time to time, may designate two or more Commissioners to investigate and report on such matters as the Commission deems appropriate. Commission appointees shall constitute either ad hoc committees (appointed to investigate and report on a specific, non-recurring matter) or standing committees (appointed with continuing responsibilities on specific, recurring matters).

6.03 PRESENTATION FORMAT. Items submitted to the Commission shall be in executive summary format which includes: (1) a clear statement of the problem or definition of the work, (2) all alternatives for completing the work or solving the problem, (3) a cost-benefit analysis for each alternative, and (4) a recommendation, which shall include all reasoning and assumptions.

6.04. COMPENSATION AND EXPENSES. Commissioners shall receive no compensation, salary, or other stipend for their service. Expenses incurred by Commissioners, if any, in connection with their service, shall not be reimbursed unless pre-approved by the IID and in accordance with IID policy. Expenses may include mileage reimbursement to and from Commission meetings and/or tours (reimbursed at the maximum allowed by the Internal Revenue Service at the time of travel) or expenses incurred while attending energy conferences. In the event the duties and responsibilities of the Commission may require unanticipated and elevated commitments of time, the

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Commission may recommend a reasonable monthly stipend payable to all Commissioners, excluding members of the IID Board of Directors.

6.05. OFFICIAL POSITION. The official position and opinion of the Coachella Valley Energy Commission shall not be established or determined by any organization other than the Commission, nor by any individual Commissioner other than one authorized to do so by the Commission.

ARTICLE 7 Bylaws

7.01. REVIEW AND INTENT. The Bylaws shall be reviewed annually and may be amended at any time. The Bylaws are intended to evolve as the needs and desires of the Commission evolve in satisfying the purposes of its creation.

7.02. GOVERNANCE. To the extent any provision in these Bylaws contradicts or is otherwise at odds with the IID Board of Directors Governance Manual, the provision(s) of the IID Board of Directors Governance Manual then in effect shall be the controlling document. The Board of Directors fully intends to amend its Governance Manual to best effectuate the needs of the Commission as necessary.

ARTICLE 8 Dissolution

8.01. DISSOLUTION BY COMMISSION. As the Commission is to serve as a transitionary body to provide the link between existing service and governance as provided in the Agreement of Compromise and the permanent service and governance option formed collaboratively and cooperatively between the IID and Coachella Valley stakeholders represented through the Commission as outlined in Section 2.03, the Commission shall be dissolved by resolution of the Commission when the purpose and objectives outlined for the Commission have been completed and the permanent service and governance option is to be implemented.

8.02. FINANCES AT DISSOLUTION. At the dissolution of the Commission, any funds remaining will be deposited into the IID general fund account after closing debts and expenses have been paid.

8.03. DISSOLUTION BY STATE LEGISLATION. As the Commission is intended to serve as a mutually beneficial and more effective alternative to address local issues concerning continued energy service, representation, and water rights protection at the local level, the IID Board of Directors reserves the right to dissolve the Commission in the event that the State of California enacts legislation which would impose requirements upon the IID which are contrary to or interfere with the ability of the Commission to pursue local collaborative solutions as outlined in Section 2.02 and conflict with the purposes for which the IID was organized and exists. Such legislation may include, but is not limited to, alteration of the composition of the IID Board of Directors, attempted modification to

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the water service area boundaries of the IID, or other provisions that would unavoidably threaten the water rights held by the IID. Before exercising the right to dissolve the Commission, the IID shall first cause the Commission to meet to discuss the threat posed by the legislation.

ADOPTED on the 13th day of July, 2021.

REVISED this 20th day of July, 2021.

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EXHIBIT A – COACHELLA VALLEY ENERGY COMMISSION BOUNDARY MAP

¨¦§10

RANCHO MIRAGE PALM DESERT INDIO INDIAN WELLS COACHELLA ¨¦§10 LA QUINTA

Mecca

North Shore TS86

Text

DESERT SHORES TS111 SALTON SEA BEACH BOMBAY BEACH

SALTON CITY

Legend TS86 IID Energy Service Area 78 CVWD Boundary TS Intersected Areas

WESTMORLAND

Miles Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/AirbusEnergy Department DS, Administration 00.75 1.5 3 4.5 6 1561 W. Main Street, Bldg. 11-B USDA, USGS, AeroGRID, IGN, and the GIS User Community El Centro, CA 92243 Unit IID Energy Service Area - CVWD Boundary Map DISCLAIMER: IID Energy Service Area - CVWD Boundary Map This is not an official map. Imperial Irrigation District does not guarantee the accuracy of I data in this map. Any errors or omissions shall not be considered the responsibility of the Plotted by: ljcervantes CURRENTCURRENT COORDINATECOORDINATE SYSTEM:SYSTEM: NAD_1983_StatePlane_California_VI_FIPS_0406_FeetNAD_1983_StatePlane_California_VI_FIPS_0406_Feet Imperial Irrigation District. Date: 4/28/2021

9 197 198 MONTHLY MEETING LOCATION ROTATION CALENDAR

LOCATION MONTH Coachella August Cove Communities September Riverside County October Indio November Tribal Nations December La Quinta January Coachella February Imperial County March Riverside County April Indio May Tribal Nations June La Quinta July

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