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

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                                      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