BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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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 León, DeSaulnier, Hill, Knight,  
            Wolk, Wright
          NO VOTE RECORDED:  Fuller, Cannella, Pavley
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/30/13
          AYES:  De León, 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, Chávez, 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 Hernández,  
            Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  
            V. Manuel Pérez, Quirk, Quirk-Silva, 
          Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber,  
            Wieckowski, Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Holden, Linder, Vacancy


          JG/RM:k  9/11/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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