BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1060| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1060 Author: Fox (D) and V. Manual Perez (D) Amended: 9/6/13 in Senate Vote: 27 PRIOR VOTES NOT RELEVANT SENATE BUDGET & FISCAL REVIEW COMMITTEE : 12-0, 9/12/13 AYES: Leno, Emmerson, Anderson, Beall, Berryhill, Block, Hill, Jackson, Monning, Roth, Torres, Wright NO VOTE RECORDED: DeSaulnier, Hancock, Nielsen, Wyland SUBJECT : Energy Resources Conservation and Development Commission SOURCE : Author DIGEST : This bill reappropriates the remaining funding in the Budget Act of 2012 from the Renewable Resource Trust Fund for planning grants for renewable energy projects available to counties in the Desert Renewable Energy Conservation Plan (DRECP) Act. ANALYSIS : This bill helps ensure close coordination between local government planning efforts and the continued development of the Desert Renewable Energy Conservation Plan, as well as support renewable energy development in the California desert, San Joaquin Valley, and San Luis Obispo by reappropriating funds to the California Energy Commission (CEC) for renewable energy planning grants in key California counties. CONTINUED AB 1060 Page 2 Background AB 13 1X (V.M. Perez, Chapter 10, Statutes of 2011) authorized up to $7 million for CEC to issue grants to fifteen counties to help them develop policies and regulations to facilitate renewable energy development. Those counties are Fresno, Imperial, Inyo, Kern, Kings, Los Angeles, Madera, Merced, Riverside, San Bernardino, San Diego, San Joaquin, San Luis Obispo, Stanislaus and Tulare. The 2011-12 Budget Act appropriated the $7 million to CEC to provide the renewable energy grants to eligible counties that applied for them. By the encumbrance deadline on June 30, 2013, CEC received and approved applications from five counties - Imperial, Inyo, Los Angeles, San Bernardino, and San Luis Obispo - for planning grants totaling approximately $3.4 million. At the end of the encumbrance period, $3.6 in planning grant funds remained unencumbered. Several counties eligible for the renewable energy planning grants that did not apply for them have expressed interest in applying for the planning grants. This includes Kern County which submitted a letter expressing their immediate interest in applying for a renewable energy planning grant and support for reapproriation to CEC of the remaining $3.6 million in renewable energy planning grant money. Without renewable energy planning grants, renewable energy development in the San Joaquin Valley, San Luis Obispo County, and the counties in the Desert Renewable Energy Conservation Plan area will lack the close collaboration and consistency of shared planning efforts. Each of the five counties that received renewable energy planning grants from CEC began their projects in July 2013 and will complete their projects by March 30, 2015. As required by the grant program, each county in the DRECP that will enter into a grant agreement with CEC also has a Memorandum of Understanding (MOU) with CEC. The MOU is a significant milestone for the DRECP because the MOU formalizes the participation and engagement of each county in the development of the DRECP. Counties with an MOU and grant agreement in the DRECP include: Imperial, Inyo, Los Angeles, and San Bernardino. Additionally, CEC entered into a grant agreement with the County CONTINUED AB 1060 Page 3 of San Luis Obispo. Though outside of the DRECP, the agreement with the County of San Luis Obispo is significant and demonstrates a significant step toward investing state resources into local processes to meet California's long-term energy and conservation goals. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No SUPPORT : (Verified 9/12/13) Audubon California California Native Plant Society Clean Power Campaign County of Kern Defenders of Wildlife Gualco Group Natural Resources Defense Council Sierra Club The Nature Conservancy The Wilderness Society RM:nl 9/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED