Amended in Senate June 26, 2013

Amended in Assembly May 8, 2013

Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1079

Introduced by Assembly Member Bradford

(Principal coauthor: Assembly Member Bocanegra)

(Coauthor: Assembly Member V. Manuel Pérez)

February 22, 2013

An act to add Sections 7083.1, 7083.2, and 63045.1 to the Government Code, relating to begin delete enterprise zones end delete begin insert economic development end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1079, as amended, Bradford. begin delete Enterprise zones: end delete begin insert Economic development: end insert energy management begin insert area and end insert plans.

The Enterprise Zone Act provides for the designation of zones according to specified criteria, pursuant to which certain entities within each zone may receive regulatory, tax, and other incentives for economic and employment development and private investment.

This bill would begin delete amend the Enterprise Zone Act to end delete authorize a city, county, or city and county to begin insert collaborate with an electrical or gas corporation, local publicly owned electric utility, or rural electric cooperative to designate an energy management area, as specified. The bill would authorize a city, county, or city and county to end insert propose one or more energy management plans, developed jointly with an electrical corporation, gas corporation, local publicly owned electric utility, or rural electric cooperative, serving an begin delete enterprise zone other than an area within a harbor or port district formed pursuant to specified law, end delete begin insert energy management area, end insert in order to reduce air emissions and to promote economic development, the addition of new business, and the retention of existing businesses in that begin delete enterprise zone end delete begin insert energy management area end insert . The bill would require the Public Utilities Commission, if the city, county, or city and county has developed jointly with an electrical or gas corporation one or more plan elements that involve special programs to be offered to the begin delete enterprise zone end delete begin insert energy management area end insert and administered by the electrical or gas corporation to facilitate economic development, to provide expedited review of the proposed jointly developed elements. The bill would require the commission to encourage electrical or gas corporations to participate jointly with local agencies in developing, implementing, and administering viable energy management plans for begin delete enterprise zones end delete begin insert energy management areas end insert , and would prohibit the commission from limiting the role of the electrical or gas corporation that was cooperatively developed in the energy management plan. begin delete This end delete begin insert The end insert bill would require the city, county, or city and county to report the progress of the plan implementation in its biannual report to the Department of Housing and Community Development, as provided.

Under the Bergeson-Peace Infrastructure and Economic Development Bank Act, the California Infrastructure and Economic Development Bank is established within state government for the purpose of funding specified types of infrastructure development projects.

begin delete

The

end delete

begin insert This end insert bill would make a project, to promote economic development in begin delete enterprise zones end delete begin insert energy management areas end insert developed pursuant to an energy management plan in accordance with the bill, eligible for funding through the bank. The bill would require the bank to consider acts it may take, at its discretion, that facilitate the financing of that project.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 7083.1 is added to the Government Code,
to read:

7083.1.  

The Legislature finds and declares all of the following:

(a) The state should encourage the development of new
businesses and the retention of existing businesses within begin delete enterprise
zones end delete begin insert economically distressed and high end insert begin insert -tech industrial and
commercial areas end insert .

(b) Energy utility customers can benefit from the addition of
new business and the retention of existing business through
increased energy cost certainty.

(c) Businesses in begin delete enterprise zones end delete begin insert economically distressed and
high- end insert begin insert tech industrial and commercial areas end insert could benefit through
greater stability and certainty in the cost of energy services.

(d) Investor-owned utilities and publicly owned utilities are in
an optimal position, and should be encouraged to engage in joint
projects with begin delete government administering enterprise zones, end delete begin insert local
governments end insert to provide and administer energy-related service
alternatives and programs that can promote economic development
and retention in begin delete enterprise zones end delete begin insert economically distressed and
high- end insert begin insert tech industrial and commercial areas end insert .

SEC. 2.  

Section 7083.2 is added to the Government Code, to
read:

begin delete

7083.2.  

(a) A city, county, or city and county may propose

end delete

begin insert

begin insert 7083.2. end insert   

end insert

begin insert (a) end insert begin insert   end insert begin insert A city, county, city and county, or other local
government agency may collaborate with an electrical or gas
corporation, local publicly owned electric utility, or rural electric
cooperative to designate an energy management area for which
an energy management plan would assist with either the
stimulation of development to revive the local economy or local
manufacturing of the final product of research and development
efforts. end insert

begin insert

(b) In designating an energy management area, a city, county,
city and county, or other local government agency, in collaboration
with the electrical or gas corporation, local publicly owned electric
utility, or rural electric cooperative, may consider one or more of
the following elements:

end insert begin insert

(1) Existing industry and commerce.

end insert begin insert

(2) Potential for industrial and commercial growth.

end insert begin insert

(3) Manufacturing presence and potential for manufacturing
growth.

end insert begin insert

(4) High frequency of businesses liquidating or moving out of
the area, or both.

end insert begin insert

(5) Median household income equal to or less than 65 percent
of the statewide median.

end insert begin insert

(6) High level of crime as documented by the Automated
Regional Justice Information System.

end insert begin insert

(7) Existing high-tech and bioscience industry and the potential
for growth in this area.

end insert begin insert

(c) For purposes of this section, “energy management area”
means a geographic area designated by a city, county, city and
county, or other local government agency to implement an energy
management plan pursuant to this section.

end insert

begin insert (d) end insert begin insert   end insert begin insert A city, county, or city and county may propose end insert one or more
energy management plans, developed jointly with an electrical
corporation, gas corporation, or local publicly owned electric
utility, as defined in the Public Utilities Code, or a rural electric
cooperative, begin delete serving an enterprise zone other than an area within
a harbor or port district formed pursuant to Division 8
(commencing with Section 5800) of the Harbors and Navigation
Code, end delete in order to reduce air emissions and to promote economic
development, the addition of new businesses, and the retention of
existing businesses in that begin delete enterprise zone end delete begin insert energy management
area end insert .

begin delete

(b)

end delete

begin insert (e) end insert  The energy management plan shall include, at a minimum,
the following:

(1) An assessment of current energy consumption within the
begin delete zone end delete begin insert energy management area end insert by energy source and type of users.
Examples of users may include commercial, industrial,
governmental, individual transport, and product transport.

(2) In addition to other energy efficiency and management issues
that the city, county, or city and county, decides to assess in order
to inform the development of specific goals and actions that reduce
air emissions and promote economic development, all of the
following:

(A) An electric or natural gas load forecast, developed in
coordination with the serving electrical corporation, gas
corporation, or local publicly owned electric utility, or rural electric
cooperative, that reflects anticipated load growth within the
begin delete enterprise zone end delete begin insert energy management area end insert .

(B) Consideration of the role that distributed generation,
combined with accurately priced utility services, could play in
providing greater rate stability and energy cost certainty to aid in
economic development, and proposed actions with respect to that
role. This assessment shall be developed jointly with the serving
electrical corporation, gas corporation, local publicly owned electric
utility, or rural electric cooperative.

(C) An assessment, in consultation with business and industry,
to identify current and emerging processes and technologies that
reduce energy consumption and improve energy efficiency.

(3) A set of measurable energy performance and management
goals that reduce air pollution and promote economic development,
and a prioritized list of infrastructure projects, public education
initiatives, and other actions that the city, county, or city and county
will undertake to achieve those goals. In addition to these projects
and actions, the plan shall include:

(A) Proposed actions, developed jointly with the serving
electrical corporation, gas corporation, local publicly owned electric
utility, or rural electric cooperative, for the enhanced use of
cost-effective energy efficiency and demand-side management in
existing buildings and the inclusion of energy efficiency measures
as part of the development of new buildings.

(B) Proposed actions, developed jointly with the serving
electrical corporation, natural gas corporation, local publicly owned
electric utility, or rural electric cooperative, for the development
of infrastructure, in appropriate areas, to aid in the refueling of
alternative fuel vehicles, including utility ownership or operation
of those facilities to provide services to the community.

(C) Other actions and associated utility services to implement
the jointly developed energy management plan.

(4) An identification of government and nongovernment
impediments to implementing the plan and recommendations on
how these impediments may be overcome.

(5) One-year, three-year, five-year, 10-year, and 15-year
objectives for implementing the plan. These objectives shall be in
sufficient detail to allow the district to undertake a meaningful
annual review of the plan’s progress.

(6) (A) Proposed methods to fund the activities included in the
plan, including funding through utility ratepayer-funded programs
and financing through the California Infrastructure and Economic
Development Bank established pursuant to Division 1
(commencing with Section 63000) of Title 6.7, the California
Alternative Energy and Advanced Transportation Financing
Authority established pursuant to Section 26004 of the Public
Resources Code, or other appropriate sources.

(B) A city, county, or city and county shall engage with begin delete zone end delete
begin insert energy management area end insert residents, businesses, as well as small
business technical assistance providers to assist in the identification
of joint or collaborative energy efficiency project opportunities,
public education activities, and financing opportunities that
implement the actions and projects in the plan.

(7) The consideration of other related energy plans, mandates,
and requirements, and, to the extent possible, means for leveraging
opportunities for achieving energy efficiency and sustainable
energy production while also not overburdening impacted
businesses.

begin delete

(c)

end delete

begin insert (f) end insert  (1) If the city, county, or city and county has developed
jointly with an electrical or gas corporation one or more plan
elements that begin delete involves end delete begin insert involve end insert special programs to be offered in
the begin delete enterprise zone end delete begin insert energy management area end insert and administered by
the electrical or gas corporation to facilitate economic development,
including, but not limited to, energy efficiency, the use of biogas
for direct injection into common carrier pipelines, economic
development rates, distributed generation, energy storage, and
alternative fuel vehicle infrastructure, the Public Utilities
Commission shall provide expedited review of the proposed jointly
developed elements.

(2) The Public Utilities Commission shall encourage electrical
or gas corporations to participate jointly with local agencies in
developing, implementing, and administering viable energy
management plans for begin delete enterprise zones, end delete begin insert energy management areas, end insert
and shall not limit the role of the electrical or gas corporation that
was cooperatively developed in the energy management plan. The
governing boards of local publicly owned utilities and rural electric
cooperatives shall encourage joint participation with local agencies
and gas corporations in developing, implementing, and
administering viable energy management plans for begin delete enterprise zones end delete
begin insert energy management areas end insert .

begin delete

(d)

end delete

begin insert (g) end insert  The energy management plan shall consider the development
of projects that provide greater certainty of energy costs over a
period of up to 15 years for businesses developing in the begin delete enterprise
zone end delete begin insert energy management areas end insert and shall consider applying to the
California Infrastructure and Economic Development Bank for
financial support of those projects under Section 63045.1.

begin delete

(e)

end delete

begin insert (h) end insert  In approving the plan, the city, county, or city and county
shall make a finding that there is an equitable distribution of costs
and benefits of projects and actions proposed in the plan.

begin delete

(f)

end delete

begin insert (i) end insert  The city, county, or city and county shall report the progress
of the plan implementation in its biannual report to the Department
of Housing and Community Development pursuant to Section
7085.1 of the Government Code.

begin insert

(j) The act adding this subdivision, establishes state policy on
energy management plans and, shall not change any prior
regulation or regulatory decision.

end insert

SEC. 3.  

Section 63045.1 is added to the Government Code, to
read:

63045.1.  

A project to promote economic development in
begin delete enterprise zones end delete begin insert energy management areas end insert developed pursuant to
an energy management plan in accordance with Section 7083.2
shall be eligible for funding under this division. The bank shall
consider acts it may take, at its discretion, that facilitate the
financing of that project.