BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 628
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 628 (Gorell and Hall)
          As Amended  September 11, 2013
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 29, 2013)  |SENATE: |33-0 |(September 12, |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    U. & C.  

           SUMMARY  :  Authorizes specified harbor or port districts jointly  
          with an investor owned utility (IOU), publicly owned electric  
          utility (POU), or community choice aggregator serving the  
          district, to prepare one or more energy management plans (Plan).  
           Specifically,  this bill  :  

          1)Specifies the Plan should include recommendations to reduce  
            air emissions and promote economic development through the  
            addition of new businesses and the retention of existing  
            businesses in the district, and other specified provisions.

          2)States the California Public Utilities Commission (PUC) shall  
            encourage electric or gas corporations to participate jointly  
            with local agencies in developing, implementing, and  
            administering viable energy management plans for districts.

          3)States the Plan should address the development of projects  
            that provide greater certainty of energy costs over a period  
            of up to 15 years for business developing in the district.

          4)Requires the Plan propose methods to fund identified  
            activities, including ratepayer-funded programs.  

           The Senate amendments  :  

           1)Authorize community choice aggregators, established on or  
            before July 1, 2013, to engage in joint projects with port and  
            harbor districts to provide and administer energy-related  
            service alternatives and programs that may promote economic  
            development and retention in those districts.
           
           2)Authorize Humboldt Bay Harbor, Recreation ports and  
            Conservation District jointly with a utility or independent  








                                                                  AB 628
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            energy provider to prepare an energy management plan.
           
           3)Remove specified program funding sources.
           
           4)Make technical and non-substantive changes.  
           
           FISCAL EFFECT  :  According to 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. 





           COMMENTS  :

           California's ports  :  California's ports are a key component in  
          the state's economy.  There are
          11 publicly-owned commercial ports throughout California.   
          International trade is a major force in California's economy,  
          currently accounting for nearly 25% of the state's economy.   
          With major port facilities in the San Francisco and Los Angeles  
          areas, California is a major gateway for products entering and  
          leaving the United States.  According to the California Marine  
          and Intermodal Transportation System Advisory Council  
          (CalMITSAC), in 2007, more than 40% of the total containerized  
          cargo entering the United States, arrived at California ports;  
          and almost 30% of the nation's exports flowed through ports in  
          the Golden State.  California's ports also provide non-cargo  
          related services and facilities, such as passenger cruise line  
          services, restaurant and hotel accommodations, entertainment,  
          and tourist attractions.  

          In addition to the vast economic benefits driven by a robust  
          port industry, there are environmental implications associated  
          with the port services.  The ports have long been a focus as a  
          source of air emissions and California has implemented a number  
          of plans to address port air emissions.  At the same time,  
          rising energy costs represents an important fact in the  
          competitive operation of the ports and port businesses.

           Need for an energy management plan  :  The bill recognizes the  
          nexus between supply and cost








                                                                  AB 628
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          of energy, business development, and environmental management in  
          port and harbor districts.  In light of this issue, this bill  
          authorizes a port or harbor district to develop and implement a  
          Plan jointly with the serving electric or gas utilities, or  
          community choice aggregators in order to reduce energy use,  
          reduce unhealthy air emissions, promote economic development and  
          the addition of new businesses, and the retention of existing  
          businesses in that district. 

          The desired outcome of such a Plan would involve a harbor or  
          port district and the serving utility to identify programs  
          administered by the utility to facilitate economic development  
          and energy efficiency, among other things.  

          The bill authorizes the PUC to encourage electric and gas  
          corporations to participate jointly with local agencies in  
          developing, implementing, and administering viable energy  
          management plans for districts.

          The governing boards of local publicly owned utilities,  
          community choice aggregators and other specified entities should  
          encourage joint participation with local agencies and gas  
          corporations in developing and administering viable energy  
          management plans. 

           
          Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 


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