BILL ANALYSIS Ó 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE ALEX PADILLA, CHAIR SB 1409 - Pavley Hearing Date: April 24, 2012 S As Amended: April 9, 2012 FISCAL B 1 4 0 9 DESCRIPTION Existing law establishes the Governor's Office of Planning and Research (OPR) for the purpose of developing state land use policies, coordinating planning of all state agencies, and assisting and monitoring local and regional planning. This bill states findings and declarations concerning the threat posed to national security as a result of climate change and oil dependence. This bill requires the OPR, in consultation with the California Energy Commission, and other appropriate state agencies, to consult and coordinate with the United States Armed Forces on specified complementary energy environmental and procurement policies and provide assistance in resolving conflicts with the deployment of with the research, development, and deployment of clean energy in California by the armed forces. BACKGROUND The OPR, created by statute in 1970, is part of the Office of the Governor. OPR serves the Governor and his cabinet as staff for long-range planning and research, and constitutes the comprehensive state planning agency. The United States military plays an important role in California. It is steward to approximately ten percent of California's land, its operations and personnel contribute billions of dollars to the state's economy and its military bases provide critical training for national defense. In recognition of the military's impact on the state, Executive Order S-16-06 established the Governor's Advisor for Military Affairs within OPR. Under this executive order, OPR coordinates state policies that affect the military, including land use planning, regulatory activities by state agencies, and state legislation. OPR works to improve communication and encourage collaboration between local governments and the United States Military on land use planning and development issues in California. The Governor's Advisor for Military Affairs works closely with all branches of the military on areas of mutual concern and priority. Areas of focus include: Land Use: OPR works with active military installations in California and local communities to reduce potential land use conflicts; Energy: OPR and other state agencies actively partner with the military to advance shared energy goals, including the expansion of energy efficiency and renewable energy; and Regulatory Activities: OPR and the military work cooperatively to ensure that active military installations are able to comply with state regulations. COMMENTS 1. Author's Purpose . The author advises that state law does not assign a designee to work with the Department of Defense (DOD) to collaboratively advance energy security objectives where these objectives align with state and DOD priorities. As a result, the state faces both a challenge and an opportunity to address critical energy security questions in implementing state energy policies (e.g. "balancing renewable fuel and carbon reduction goals with energy security and other policy objectives." California Energy Commission, 2011 Integrated Energy Policy Report, p. 152). Also, because of the size of the DOD's economic impact on the state of California, and the major investments the DOD is planning to make in future years in clean energy, California can do more than is currently being done to attract new jobs and economic activity in the state by coordinating more closely with DOD in the clean energy sector. 2. Clarification Needed . The author has provided the following language to further specify the work that she finds needs to be done. Additionally, the bill places the direction to OPR in the Public Resources Code but its proper placement is in the Government Code where the OPR was originally created (Government Code Sections 65025 et. seq.). a) The Office of Planning and Research shall do all of the following: 1) Coordinate with the United States Armed Forces, where appropriate and feasible, and to the extent permitted by federal law, on the implementation of complementary energy, environmental, and procurement policies, to promote the commercialization of clean energy technologies in California and the deployment of clean energy projects in California, including, local clean energy generation and storage, energy efficiency and demand response, alternative and renewable fuels, advanced vehicles, and related infrastructures. 2) Provide assistance to public or private entities in California that are receiving, or have a reasonable opportunity to qualify for, federal grants, loans, or other assistance for clean energy research, development, demonstration, deployment, or procurement of clean energy products or services in California. Such funding must: A) Advance national security or military objectives through clean energy-related measures, including energy efficiency, the reduction of water and petroleum consumption, the development and deployment of alternative and renewable fuels, advanced transportation technology and related infrastructure, distribution generation, energy storage, or mobile recharging technology. B) Advance state sustainability, renewable energy, conservation, energy storage or greenhouse gas reduction goals. C) For projects involving transportation fuels, on a full life-cycle assessment basis, not adversely impact air quality, water quality or the sustainability of natural resources, especially state and federal lands. 3) Provide assistance in resolving conflicts associated with the research, development, and deployment of clean energy in California by the United States Armed Forces or a branch of the armed forces, including facilities owned or operated by private entities under contract with the United States Armed Forces or a branch of the United States Armed Forces. For conflicts that involve a clean energy-related permit or development project, such conflicts may be resolved in accordance with processes developed by the Governor pursuant to Section 65404 of the Government Code. b) Nothing in this section is intended to interfere with or prevent the existing authority of an agency or department to carry out its programs, projects, or responsibilities, and nothing in this section shall be considered as a limitation on compliance with requirements under any other provision of law. 1. Necessity ? The necessity of this measure is somewhat curious since the OPR already maintains a liaison with the military to specifically work with the branches on land use and energy policy. The author responds that this position was established by executive order, has a more narrow role than what is called for in this measure, and its priority necessitates protection in statute. 2. Goals Not Aligned . Some or all branches of the services have adopted goals that may not be consistent with California's goals. For instance the Department of the Navy's renewable energy goals are that at least 50% of its "shore-based energy" requirements come from alternative sources by 2020 while California's RPS goals are 33%. Additionally, what the Armed Services considers clean or renewable may not be the same as the definitions for California. The bill could be interpreted as in some way obligating the state to commit its resources to achieving more aggressive goals than the state has thought appropriate and affordable. The committee may wish to consider limiting the work of the OPR to that which is assisting the state in meeting its goals or to expressly state that OPR's role is limited to programs where the state and federal goals are aligned. 3. Double Referral . Should this bill be approved by the committee, it should be re-referred to the Senate Committee on Rules for its consideration. POSITIONS Sponsor: Truman National Security Project Support: None on file Oppose: None on file Kellie Smith SB 1409 Analysis Hearing Date: April 24, 2012