BILL ANALYSIS Ó AB 628 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 628 (Gorell and Hall) As Amended September 11, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(May 29, 2013) |SENATE: |33-0 |(September 12, | | | | | | |2013) | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 FN: 0002844