BILL ANALYSIS �
AB 1079
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Date of Hearing: May 24, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1079 (Bradford) - As Amended: May 8, 2013
Policy Committee: JEDE Vote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes a city, county, or a city and county, to
prepare one or more energy management plans to reduce air
emissions and promote economic development. Further, the bill
authorizes the financing for enterprise zone energy-related
improvements through the issuance of conduit revenue bonds by
the state. Specifically, this bill:
1)Specifies that if a city, county, or city and county chooses
to prepare an energy management plan it must contained
specified elements.
2)Requires expedited review of jointly developed elements of an
energy management plan by the California Public Utilities
Commission (PUC), as specified.
FISCAL EFFECT
Minor and absorbable.
COMMENTS
1)Purpose. According to the author, businesses are finding it
more and more difficult to locate and expand in California, in
part because the supply and cost of energy has caused a
significant amount of uncertainty, impeding business growth
and the creation of new jobs. In economically distressed
areas, these energy costs result in an even bleaker picture
for business development and retention. The author contends,
enterprise zones lack the ability to develop energy management
plans, making it difficult to achieve enterprise zone
objectives.
AB 1079
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The author argues AB 1079 recognizes the importance of
reducing energy costs in economically disadvantaged areas by
authorizing a city, county or city and county, to develop
energy management plans jointly with the electric or gas
utilities (including publicly owned utilities). In doing so,
the author contends, this bill will promote economic
development, the addition of new business, and the retention
of existing businesses, as well as reduce air emissions in
that enterprise zone.
2)Background . Forty-two enterprise zones have been designated
based on a statutory list of criteria related to poverty and
economic dislocation. This program is based on the principle
that targeting significant incentives to lower income
communities allows these communities to more effectively
compete for new businesses and retain existing businesses,
resulting in increased tax revenues, decreased reliance on
social services, and lower public safety costs. Residents and
businesses also directly benefit from these more sustainable
economic conditions through improved neighborhoods, business
expansion, and job creation.
3)Energy Management Plans . Energy management plans are
comprehensive strategies for monitoring, controlling, and
conserving energy. This is primarily accomplished through a
systemic analysis of current energy consumption in order to
identify areas of suboptimal energy usage. The resulting data
is used to identify baseline energy usage metrics and
opportunities for cost-effective energy savings measures
through upgrades to high-efficiency equipment and systems, and
promoting efficient behaviors by workers.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081