AB 1079, as amended, Bradford. Economic development: energy management area and 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.
end deleteExisting law requires cities and counties to develop and update a general plan, which consists of various elements, including a land use element, a circulation element, a housing element, a conservation element, a noise element, and a safety element.
end insertThis bill would authorize a city, county, or
city and county to 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 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 energy management area, in order to reduce air emissions and to promote economic development, the addition of new business, and the retention of existing businesses in that energy management area.begin delete 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 energy management area and administered by the electrical or gas corporation to facilitate economic development, to provide expedited review of the proposed jointly developed elements.end delete The bill would require thebegin delete commissionend deletebegin insert Public Utilities Commissionend insert to encourage electrical or gas corporations to participate jointly with local agencies in developing, implementing, and administering viable energy management plans for energy management areas, and would prohibit the commission from limiting the role of the electrical or gas corporation that was cooperatively developed in the energy management plan. The bill would require the city, county, or city and county to report the progress ofbegin delete theend deletebegin insert
anyend insert plan implementation in itsbegin delete biannualend deletebegin insert biennialend insert 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.
This bill would make abegin delete project,end deletebegin insert projectend insert to promote economic development in energy management areas developed pursuant to an energy
management plan in accordance with thebegin delete bill,end deletebegin insert
billend insert 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 7083.1 is added to the Government Code,
2to read:
The Legislature finds and declares all of the following:
4(a) The state should encourage the development of new
5businesses and the retention of existing businesses within
6economically distressed and high-tech industrial and commercial
7areas.
8(b) Energy utility customers can benefit from the addition of
9new business and the retention of existing business
through
10increased energy cost certainty.
11(c) Businesses in economically distressed and high-tech
12industrial and commercial areas could benefit through greater
13stability and certainty in the cost of energy services.
14(d) Investor-owned utilities and publicly owned utilities are in
15an optimal position, and should be encouraged to engage in joint
16projects with
local governments to provide and administer
17energy-related service alternatives and programs that can promote
18economic development and retention in economically distressed
19and high-tech industrial and commercial areas.
Section 7083.2 is added to the Government Code, to
21read:
(a) A city, county, city and county, or other local
23government agency may collaborate with an electrical or gas
24corporation, local publicly owned electric utility, or rural electric
25cooperative to designate an energy management area for which an
26energy management plan would assist with either the stimulation
27of development to revive the local economy or local manufacturing
28of the final product of research and development efforts.
29(b) In designating an energy management area, a city, county,
30city and county, or other local government agency, in collaboration
31with the electrical or gas corporation, local publicly owned electric
32utility, or rural electric
cooperative, may consider one or more of
33the following elements:
34(1) Existing industry and commerce.
35(2) Potential for industrial and commercial growth.
36(3) Manufacturing presence and potential for manufacturing
37growth.
38(4) High frequency of businesses liquidating or moving out of
39the area, or both.
P4 1(5) Median household income equal to or less than 65 percent
2of the statewide median.
3(6) High level of crime as documented by the Automated
4Regional Justice Information System.
5(7) Existing high-tech and bioscience industry and the potential
6for growth in this area.
7(c) For purposes of this section, “energy management area”
8means a geographic area designated by a city, county, city and
9county, or other local government agency to implement an energy
10management plan pursuant to this section.
11(d) A city, county, or city and county may propose one or more
12energy management plans, developed jointly with an electrical
13corporation, gas corporation, or local publicly owned electric
14utility, as defined in the Public Utilities Code, or a rural electric
15cooperative,
in order to reduce air emissions and to promote
16economic development, the addition of new businesses, and the
17retention of existing businesses in that energy management area.
18(e) The energy management plan shall include, at a minimum,
19the following:
20(1) An assessment of current energy consumption within the
21
energy management area by energy source and type of users.
22Examples of users may include commercial, industrial,
23governmental, individual transport, and product transport.
24(2) In addition to other energy efficiency and management issues
25that the city, county, or city and county, decides to assess in order
26to inform the development of specific goals and actions that reduce
27air emissions and promote economic development, all of the
28following:
29(A) An electric or natural gas load forecast, developed in
30coordination with the serving electrical corporation, gas
31corporation, or local publicly owned electric utility, or rural electric
32cooperative, that reflects anticipated load growth within the
energy
33management area.
34(B) Consideration of the role that distributed generation,
35combined with accurately priced utility services, could play in
36providing greater rate stability and energy cost certainty to aid in
37economic development, and proposed actions with respect to that
38role. This assessment shall be developed jointly with the serving
39electrical corporation, gas corporation, local publicly owned electric
40utility, or rural electric cooperative.
P5 1(C) An assessment, in consultation with business and industry,
2to identify current and emerging processes and technologies that
3reduce energy consumption and improve energy efficiency.
4(3) A set of measurable energy performance and management
5goals that
reduce air pollution and promote economic development,
6
and a prioritized list of infrastructure projects, public education
7initiatives, and other actions that the city, county, or city and county
8will undertake to achieve those goals. In addition to these projects
9and actions, the plan shall include:
10(A) Proposed actions, developed jointly with the serving
11electrical corporation, gas corporation, local publicly owned electric
12utility, or rural electric cooperative, for the enhanced use of
13cost-effective energy efficiency and demand-side management in
14existing buildings and the inclusion of energy efficiency measures
15as part of the development of new buildings.
16(B) Proposed actions, developed jointly with the serving
17electrical corporation, natural gas corporation, local publicly owned
18electric utility, or rural electric
cooperative, for the development
19of infrastructure, in appropriate areas, to aid in the refueling of
20alternative fuel vehicles, including utility ownership or operation
21of those facilities to provide services to the community.
22(C) Other actions and associated utility services to implement
23the jointly developed energy management plan.
24(4) An identification of government and nongovernment
25impediments to implementing the plan and recommendations on
26how these impediments may be overcome.
27(5) One-year,
three-year, five-year, 10-year, and 15-year
28objectives for implementing the plan. These objectives shall be in
29sufficient detail to allow the district to undertake a meaningful
30annual review of the plan’s progress.
31(6) (A) Proposed methods to fund the activities included in the
32plan, including funding through utility ratepayer-funded programs
33and financing through the California Infrastructure and Economic
34Development Bank established pursuant to Division 1
35(commencing with Section 63000) of Title 6.7, the California
36Alternative Energy and Advanced Transportation Financing
37Authority established pursuant to Section 26004 of the Public
38Resources Code, or other appropriate sources.
39(B) A city, county, or city and county shall engage with energy
40management
area residents, businesses, as well as small
business
P6 1technical assistance providers to assist in the identification of joint
2or collaborative energy efficiency project opportunities, public
3education activities, and financing opportunities that implement
4the actions and projects in the plan.
5(7) The consideration of other related energy plans, mandates,
6and requirements, and, to the extent possible, means for leveraging
7opportunities for achieving energy efficiency and sustainable
8energy production while also not overburdening impacted
9businesses.
10(f) (1) If the city, county, or city and county has developed
11jointly with an electrical or gas corporation one or more plan
12elements that involve special programs to be offered in the energy
13management area and administered by the electrical or gas
14corporation to facilitate economic development, including, but not
15limited to, energy efficiency, the use of biogas for direct injection
16into common carrier pipelines, economic development rates,
17distributed generation, energy storage, and alternative fuel vehicle
18infrastructure, the
Public Utilities Commission shall provide
19expedited review of the proposed jointly developed elements.
20(2) The Public Utilities Commission shall encourage electrical
21or gas corporations to participate jointly with local agencies in
22developing, implementing, and administering viable energy
23management plans for energy management areas, and shall not
24limit the role of the electrical or gas corporation that was
25cooperatively developed in the energy management plan. The
26governing boards of local publicly owned utilities and rural electric
27cooperatives shall encourage joint participation with local agencies
28and gas corporations in developing, implementing, and
29
administering viable energy management plans for energy
30management areas.
31(g) The energy management plan shall consider the development
32of projects that provide greater certainty of energy costs over a
33period of up to 15 years for businesses developing in the
energy
34management areas and shall consider applying to the California
35Infrastructure and Economic Development Bank for financial
36support of those projects under Section 63045.1.
37(h) In approving the plan, the city, county, or city and county
38shall make a finding that there is an equitable distribution of costs
39and benefits of projects and actions proposed in the plan.
P7 1(i) The city, county, or city and county shall report the progress
2of the plan implementation in its biannual report to the Department
3of Housing and Community Development pursuant to Section
47085.1 of the Government Code.
5(j) The act adding this subdivision, establishes state policy on
6energy management plans and, shall not change any prior
7regulation
or regulatory decision.
The Legislature finds and declares all of the
9following:
10(a) The state should encourage the development of new
11businesses and the retention of existing businesses within
12economically distressed and high-tech industrial and commercial
13areas.
14(b) Energy utility customers can benefit from the addition of
15new business and the retention of existing business through
16increased energy cost certainty.
17(c) Businesses in economically distressed and high-tech
18industrial and commercial areas could benefit through greater
19stability and certainty in the cost of energy services.
20(d) Investor-owned utilities and publicly owned utilities are in
21an optimal position, and should be encouraged, to engage in joint
22projects with local governments to provide and administer
23energy-related service
alternatives and programs that can promote
24economic development and retention in economically distressed
25and high-tech industrial and commercial areas.
Section 63045.1 is added to the Government Code, to
28read:
A project to promote economic development in energy
30management areas developed pursuant to an energy management
31plan in accordance with Sectionbegin delete 7083.2end deletebegin insert 65150 end insert shall be eligible
32for funding under this division. The bank shall consider acts it may
33take, at its discretion, that facilitate the financing of that project.
Article 2 (commencing with Section 65150) is added
35to Chapter 3 of Division 1 of Title 7 of the Government Code, to
36read:
(a) A city, county, city and county, or other local
4government agency may collaborate with an electrical or gas
5corporation, local publicly owned electric utility, or rural electric
6cooperative to designate an energy management area for which
7an energy management plan would assist with either the
8stimulation of development to revive the local economy or local
9manufacturing of the final product of research and development
10efforts.
11(b) In designating an energy management area, a city, county,
12city and county, or other local government agency, in collaboration
13with the electrical or gas corporation, local publicly owned electric
14utility, or rural electric cooperative, may consider one or more of
15the following elements:
16(1) Existing industry and commerce.
17(2) Potential for industrial and commercial growth.
18(3) Manufacturing presence and potential for manufacturing
19growth.
20(4) High frequency of businesses liquidating or moving out of
21the area, or both.
22(5) Median household income equal to or less than 65 percent
23of the statewide median.
24(6) High level of crime as documented by the Automated
25Regional Justice Information System.
26(7) Existing high-tech and bioscience industry and the potential
27for growth in this area.
28(c) For purposes of this section, “energy management area”
29means a geographic area designated by a city, county, city and
30county, or other local government agency to implement an energy
31management plan pursuant to this section.
32(d) A city, county, or city and county may propose one or more
33energy management plans, developed jointly with an
electrical
34corporation, gas corporation, or local publicly owned electric
35utility, as defined in the Public Utilities Code, or a rural electric
36cooperative, in order to reduce air emissions and to promote
37economic development, the addition of new businesses, and the
38retention of existing businesses in that energy management area.
39(e) The energy management plan shall include, at a minimum,
40the following:
P9 1(1) An assessment of current energy consumption within the
2energy management area by energy source and type of users.
3Examples of users may include commercial, industrial,
4governmental, individual transport, and product transport.
5(2) In addition to other energy efficiency and management issues
6that the city, county, or city and county, decides to assess in order
7to inform the development of specific goals and actions that reduce
8air emissions and promote economic development, all of the
9following:
10(A) An electric or natural gas load forecast, developed in
11coordination with the serving electrical corporation, gas
12corporation, or local publicly owned electric utility, or rural
13electric cooperative, that reflects anticipated load growth within
14the energy management area.
15(B) Consideration of the role that distributed generation,
16combined with accurately priced utility services, could play in
17providing greater rate stability and energy cost certainty to aid in
18economic development, and proposed actions with respect to that
19role. This assessment shall be developed jointly with the serving
20electrical corporation, gas corporation, local publicly owned
21electric utility, or rural electric cooperative.
22(C) An assessment, in consultation with business and industry,
23to identify current and emerging processes and technologies that
24reduce energy consumption and improve energy efficiency.
25(3) A set of measurable energy
performance and management
26goals to reduce air emissions and promote economic development,
27and a prioritized list of infrastructure projects, public education
28initiatives, and other actions that the city, county, or city and
29county will undertake to achieve those goals. In addition to these
30projects and actions, the plan shall include:
31(A) Proposed actions, developed jointly with the serving
32electrical corporation, gas corporation, local publicly owned
33electric utility, or rural electric cooperative, for the enhanced use
34of cost-effective energy efficiency and demand-side management
35in existing buildings and the inclusion of energy efficiency
36measures as part of the development of new buildings.
37(B) Proposed actions, developed jointly with the serving
38electrical corporation, natural gas corporation, local publicly
39owned electric utility, or rural electric cooperative, for the
P10 1development of infrastructure, in appropriate areas, to aid in the
2refueling
of alternative fuel vehicles.
3(4) An identification of government and nongovernment
4impediments to implementing the plan and recommendations on
5how these impediments may be overcome.
6(5) One-year, three-year, five-year, 10-year, and 15-year
7objectives for implementing the plan. These objectives shall be in
8sufficient detail to allow the district to undertake a meaningful
9annual review of the plan’s progress.
10(6) (A) Proposed methods to fund the activities included in the
11plan, including funding through utility ratepayer-funded programs
12and financing through the California Infrastructure and Economic
13Development Bank established pursuant to Division 1 (commencing
14with Section 63000) of Title 6.7, the California Alternative Energy
15and Advanced Transportation Financing Authority established
16pursuant to Section 26004 of the Public Resources Code, or other
17appropriate sources.
18(B) A city, county, or city and county shall engage with energy
19management area residents, businesses, as well as small business
20technical assistance providers to assist in the identification of joint
21or collaborative energy efficiency project opportunities, public
22education activities, and financing opportunities that implement
23the actions and projects in the plan.
24(7) The consideration of other related energy plans, mandates,
25and requirements, and, to the extent possible, means for leveraging
26opportunities for achieving energy efficiency and sustainable
27energy production while also not overburdening impacted
28businesses.
29(f) The Public Utilities Commission shall encourage electrical
30or gas corporations to participate jointly with local agencies in
31developing, implementing, and administering viable energy
32management plans for energy management areas. The governing
33boards of local publicly owned utilities and rural electric
34cooperatives
shall encourage joint participation with local
35agencies and gas corporations in developing, implementing, and
36administering viable energy management plans for energy
37management areas.
38(g) The energy management plan shall consider the development
39of projects that provide greater certainty of energy costs over a
40period of up to 15 years for businesses developing in the energy
P11 1management areas and shall consider applying to the California
2Infrastructure and Economic Development Bank for financial
3support of those projects under Section 63045.1.
4(h) In approving the plan, the city, county, or city and county
5shall make a finding that there is an equitable distribution of costs
6and benefits of projects and actions proposed in the plan.
7(i) If a city, county, or city and county adopts an energy
8management plan, that city, county, or city and county shall report
9the progress of the plan implementation in its biennial report to
10the
Department of Housing and Community Development pursuant
11to Section 7085.1 of the Government Code.
12(j) The act adding this section establishes state policy on energy
13management plans and shall not change any prior regulation or
14regulatory decision.
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