BILL ANALYSIS Ó AB 628 Page 1 Date of Hearing: May 24, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 628 (Gorell) - As Amended: May 8, 2013 Policy Committee: Utilities and Commerce Vote: 14-0 Jobs, Economic Development, Economy 9-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes harbor and port districts, in collaboration with an electrical corporation or publicly owned utility to prepare energy management plans to reduce air emissions and promote economic development. This bill also authorizes financing for harbor and port improvements through the California Infrastructure and Economic Development Bank. FISCAL EFFECT Negligible state fiscal impact. The I-bank already has broad authority to finance public agencies and other eligible entities. The PUC will not require additional resources for the purposes of the bill. COMMENTS 1)Rationale. According to the author, California ports are an essential contributor to the state's economy. Port activities employ more than half-a-million people in California and generate an estimated $7 billion in state and local tax revenue annually. But increasing competition along the North American coast and Mexican Ports are threatening to attract business away from California. The trend will increase after the expansion of the Panama Canal in 2014. In order to maintain California's competitive edge, this bill is intended to help stabilize energy supply and costs for all ports statewide. AB 628 Page 2 2)Energy Management Plans . Energy management plans are comprehensive strategies for monitoring, controlling, and conserving energy. This is primarily accomplished through a systemic analysis of current energy consumption in order to identify areas of suboptimal energy usage. The resulting data is used to identify baseline energy usage metrics and opportunities for cost-effective energy savings measures through upgrades to high-efficiency equipment and systems, and promoting efficient behaviors by workers. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081