BILL ANALYSIS �
AB 628
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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
FN: 0002844