BILL ANALYSIS �
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THIRD READING
Bill No: AB 628
Author: Gorell (R) and Hall (D), et al.
Amended: 9/11/13 in Senate
Vote: 21
SENATE ENERGY, UTIL.& COMMUNIC. COMMITTEE : 8-0, 7/2/13
AYES: Padilla, Corbett, De Le�n, DeSaulnier, Hill, Knight,
Wolk, Wright
NO VOTE RECORDED: Fuller, Cannella, Pavley
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/30/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 77-0, 5/29/13 (Consent) - See last page for
vote
SUBJECT : Energy management plans for harbor and port
districts
SOURCE : Sempra Energy
DIGEST : This bill provides a framework for the development of
energy management plans between specified port and harbor
districts and investor-owned utilities (IOUs), publicly-owned
utilities (POUs) and Community Choice Aggregators (CCAs), as
defined, in order to reduce air emissions and promote economic
development of the district.
Senate Floor Amendments of 9/11/13 limit the CCAs authorization
to develop energy management plans with local port districts to
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those established on or before July 1, 2013.
ANALYSIS : Current decisions of the Public Utilities
Commission (PUC) require IOUs to administer energy efficiency
programs in multi-year portfolios designed to meet
pre-established energy savings goals which are funded by
ratepayer charges, currently at about $1 billion per year.
Existing law:
1. Requires California's electric utilities to first meet their
energy needs through cost effective energy efficiency
measures.
2. Directs the PUC to authorize IOUs to engage in economic
development programs and further permits the recovery of
associated costs from ratepayers.
3. Authorizes California Alternative Energy and Advanced
Transportation Financing Authority (CAETFA) to issue bonds
and fix fees, charges, and interest rates for loans in order
to promote the creation of manufacturing, jobs, reduction of
greenhouse gases, or reductions in air and water pollution or
energy consumption.
This bill:
1. Establishes a framework for the development of energy
management plans between specified port and harbor districts,
IOUs, POUs, and CCAs established on or before July 1, 2013,
as defined.
2. Requires the plans to include assessments of current energy
consumption, energy management issues, forecasts, domestic
and international shipping requirements related to energy
usage, measureable energy performance goals, recommendations
for implementation, short and long-term objectives and
authorizes utility ownership of alternative fuel vehicle
infrastructure facilities.
3. Mandates that the PUC approve elements of the energy
management plans that are jointly developed between specified
port or harbor districts, IOUs and CCAs including ownership
of alternative fuel vehicle infrastructure facilities. The
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PUC is also required to provide expedited review of jointly
developed energy management plans.
4. Defines "district" as the Humboldt Bay Harbor, Recreation,
and Conservation District, the Ports of Hueneme, Oakland,
Long Beach, Los Angeles, Redwood City, Richmond, San Diego,
San Francisco, Stockton, and West Sacramento, and any other
harbor, recreation, and conservation district that operates a
harbor or port in the state.
Background
Energy management plans . Energy management plans are negotiated
plans between utility customers, local authorities, and
servicing utilities that outline a comprehensive assessment of
energy usage. The plans consider energy consumption, energy
efficiency measures, and infrastructure in order to determine a
policy and set of actions to manage the demand for energy. The
Port of Los Angeles recently announced plans to cooperate with
the Los Angeles Department of Water and Power to develop an
Energy Management Action Plan. Energy management plans are not
currently defined in statute; they are not explicitly
authorized, nor are they prohibited.
The At-Berth Regulations . The Air Resources Board (ARB) has
developed regulations commonly referred to as the At-berth
Regulations for ships at California ports. The Regulations are
being implemented in stages and began in 2010. By 2014, the ARB
will require that 50% of visits by container and passenger ships
be powered by on-shore power, or that ship operators
alternatively reduce 50% of emissions associated with their
ships at-berth. Ultimately these percentages will be increased
to 80% by 2020. Previously, ships visiting ports would power
themselves with on-board diesel generators, which are a
significant cause of air pollutants in port and harbor
districts. The ARB regulations are intended to improve the air
quality of these ports, but in doing so will increase demand for
electricity power from the local electric utility.
The ARB identifies three types of incentives for compliance with
the at-berth regulations:
1. Emission credits that can be accumulated and used by fleets
complying with the equivalent emissions reduction option;
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2. Proposition 1B (2006) funding available to reduce emissions
from goods-movement activities; and
3. Carl Moyer funding available to reduce emissions of diesel
emissions.
PUC proceedings . The PUC currently requires IOUs to submit
energy efficiency plans every two to three years for approval.
The PUC approves the budgets and goals of the energy efficiency
plans, but does not review every element or specific project.
The IOUs develop energy efficiency goals, approved by the PUC,
along with outreach plans for every class of ratepayers and also
work with communities and large business sectors to develop
energy management plans as called for in this bill. The PUC may
authorize ratepayer funding of projects that pass benefits to
ratepayers including energy savings. Common energy efficiency
projects include retrofits on lighting, heating and air
conditioning systems, replacement windows, and insulation
installation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, annual costs
up to $50,000 from the Public Utilities Reimbursement Account
(special) to the PUC to incorporate information from the energy
management plans into broader PUC considerations.
SUPPORT : (Verified 9/6/13)
Sempra Energy (source)
California Asian Chamber of Commerce
California Chamber of Commerce
California Manufacturers and Technology
Central City Association
Chula Vista Chamber of Commerce
City of National City Mayor, Ron Morrison
Congress of California Seniors
Hornblower Cruises and Events
National City Chamber of Commerce
OPPOSITION : (Verified 9/6/13)
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Clean Energy
Marin Energy Authority
ASSEMBLY FLOOR : 77-0, 5/29/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva,
Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber,
Wieckowski, Wilk, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Holden, Linder, Vacancy
JG/RM:k 9/11/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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