BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2145| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2145 Author: Bradford (D) Amended: 8/19/14 in Senate Vote: 21 SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 6-3, 6/23/14 AYES: Padilla, Fuller, Cannella, De León, DeSaulnier, Hill NOES: Corbett, Knight, Wolk NO VOTE RECORDED: Block, Pavley SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14 AYES: De León, Hill, Lara, Padilla, Steinberg NO VOTE RECORDED: Walters, Gaines ASSEMBLY FLOOR : 51-15, 5/28/14 - See last page for vote SUBJECT : Electricity: community choice aggregation SOURCE : Coalition of California Utility Employees DIGEST : This bill places new requirements and restrictions on the establishment of, and activities by, community choice aggregators (CCAs). ANALYSIS : Existing law: 1.Allows cities and/or counties to implement a CCA program under which the municipality purchases electricity for constituents CONTINUED AB 2145 Page 2 within their political boundaries. A municipality may also join any other existing CCA by adoption of a resolution, without regard to geography. Two or more municipalities may also form a joint powers agency to act as a CCA with the adoption of an ordinance by each participating municipality. 2.Requires an investor-owned utility (IOU) to cooperate fully with a CCA in its pursuit and implementation of operation, and to provide billing and data services, metering, collection, and customer service to all CCA retail customers. CCAs may file complaints with the Public Utilities Commission (PUC) against an IOU in an expedited complaint procedure if the IOU is allegedly violating its obligations to a CCA. 3.Does not direct the PUC to regulate CCA's program except to the extent that its program elements may affect utility operations and the rate and services for IOU customers. This bill: 1.Restricts the expansion of a CCA to a geographic area of three contiguous counties, unless the CCA had already exceeded three counties prior to January 1, 2015. 2.Requires CCA customer solicitations and consumer communications to include the electric supply rates for that customer if he/she remains with the IOU and joins the CCA. 3.Allows complaints under an expedited complaint procedure to be submitted to the PUC regarding a CCA's alleged violations of its statutory obligations. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee, annual costs of $200,000 from the PUC Utilities Reimbursement Account (special) for new PUC responsibilities regarding CCAs. SUPPORT : (Verified 8/18/14) Coalition of California Utility Employees (source) California Labor Federation Encinitas Chamber of Commerce CONTINUED AB 2145 Page 3 International Brotherhood of Electrical Workers Local 100 Laguna Niguel Chamber of Commerce Orange County Taxpayers Association Pacific Gas and Electric Company San Diego Gas & Electric Company San Diego Regional Chamber of Commerce State Building and Construction Trades Council, AFL-CIO OPPOSITION : (Verified 8/18/14) 350 Bay Area Alameda County Board of Supervisors Alameda County Green Party Alliance for Retail Energy Markets Asian Pacific Environmental Network Association of Bay Area Governments Bay Area Air Quality Management District Bay Localize Beach Cities Democratic Club Berkeley Climate Action Coalition Berkeley Community Choice Energy Working Group BoDean Company Brad Wagenknecht, Napa County Supervisor, District 1 Bruce Gibson, San Luis Obispo Board of Supervisors, District 2 California Air Pollution Control Officers Association California Center for Sustainable Energy California Climate and Agriculture Network California Environmental Justice Alliance California Interfaith Power & Light California Manufacturers & Technology Association California Municipal Utilities Association California State Association of Counties Carbon Free Mountain View Center for Biological Diversity Center for Community Action and Environmental Justice Center for Race, Poverty and the Environment Center for Sustainable Energy Charles M. Schulz Creative Associates LLC Cities Association of Santa Clara County Cities of Belvedere, Benicia, Berkeley, Beverly Hills, Chula Vista, Cotati, Davis, El Cerrito, Goleta, Hermosa Beach, Hayward, Lancaster, Manhattan Beach, Mill Valley, Oakland, Plymouth, Richmond, San Carlos, San Diego, CONTINUED AB 2145 Page 4 San Jose, San Leandro, San Luis Obispo, San Pablo, San Rafael, Santa Cruz, Santa Monica, Santa Rosa, Sausalito and Sunnyvale City of Richmond Department of Employment and Training Clean Coalition Clean Energy & Jobs Oakland Campaign Clean Water Action Climate Protection Campaign Coalition for Sustainable Transportation Communities for a Better Environment Community Choice Energy Working Group Community Environmental Council Counties of Marin, Santa Barbara, Santa Cruz and Sonoma Electric Auto Association Energy 2001, Inc. Energy Solidarity Cooperative Environment California Environmental Health Coalition Everybody Solar Friends of the Earth G2 Energy LLC GenPower, LLC Global Exchange Global Green USA Green Ideals Green Party of California GreenTown Los Altos Greywater Action Institute for Local Self-Reliance International Longshore & Warehouse Union Local 6 Ironworkers Local 155 Joint Venture Monterey Bay Joint Venture Silicon Valley Kehilla Community Synagogue KyotoUSA League of California Cities Lean Energy US Local Clean Energy Alliance of San Francisco Local Government Commission Los Angeles County Board of Supervisors Lynette McElhaney, Oakland City Councilmember Mainstreet Moms Marin Clean Energy Marin Conservation League CONTINUED AB 2145 Page 5 Marin County Board of Supervisors Marin County Council of Mayors and Councilmembers Monterey Bay Community Power Movement Generation Justice and Ecology Project New Voices Are Rising Novato City Councilmember, Denise Athas Oakland City Council Office of Ratepayer Advocates Organizing for Action Members OurEvolution Energy and Engineering Pacific Cookie Company Pacific Energy Advisors, Inc. Palos Verdes Democrats People Organizing to Demand Environmental and Economic Rights People United for a Better Life in Oakland Planting Justice Prime Mover Technology Récolte Energy Renewable 100 Policy Institute Renovate America Resilient Neighborhoods Retail Energy Supply Association Re-volv Richmond Progressive Alliance Rose Foundation for Communities & the Environment Salinas Valley Solid Waste Authority San Diego County Board of Supervisors, Chairwoman, District 2, Dianne Jacob San Diego County Board of Supervisors, District 3, Dave Roberts San Diego Energy District Foundation San Francisco Green Party San Lorenzo Valley Water District San Luis Obispo Clean Energy San Rafael Airport LLC SanDiego350 School Project for Utility Rate Reduction SeaWave Battery, Inc. Shell Energy North America Shute, Mihaly and Weinberger, LLP Sierra Club California Sierra Club, San Francisco Bay Chapter SightWorks Architecture + Interior Design Solana Energy Solar Energy Industries Association CONTINUED AB 2145 Page 6 SolarCity SolEd Benefit Corporation Sonoma Clean Power Authority Sonoma County Democratic Center Committee Sonoma County Water Agency South Bay 350 Climate Action Group StopWaste Sun Light & Power Sunspeed Enterprises Sustainable Economies Law Center Sustainable Marin Tar Sands Action Southern California The Action Hub, Richmond The Greenlining Institute The Utility Reform Network Torrance Democratic Club Tosdal Law Firm Town of Ross Town of Tiburon Transition United States USGBC California Victory Garden Foundation Vote Solar Wellstone Democratic Renewal Club West Los Angeles Democratic Club West Oakland Environmental Indicators Project Western Power Trading Forum Wild Heritage Planners World Team Now World Wildlife Fund Xandex Inc. ARGUMENTS IN SUPPORT : Orange County Taxpayers Association "believes that ratepayers have a right to choose their electricity provider, including community choice aggregation, and deserve as much transparency and information as possible when making that decision. AB 2145 will require CCA implementation plans include rate comparison information and greenhouse gas emission rates using protocols established by the California Air Resources Board. AB 2145 would give a customer the choice to opt-in by electing to participate in the program and provides consistency with many other customer choice programs. Ratepayers should have the opportunity to consider the costs and benefits of their choice prior to applying for a CONTINUED AB 2145 Page 7 new service. ARGUMENTS IN OPPOSITION : Récolte Energy states, "Our own position is that cities and counties across the state are so highly variable in the logistics of how they might need to implement or participate in any desired Community Choice program that it is likely not possible to implement such geographic restrictions without greatly hampering many efforts toward successful Community Choice programs. "Nevertheless, such parameters are now being defined for the bill. We must insist that sufficient time be taken to comprehensively discuss, fully identify implications of, and very carefully work out any such language that will be included in AB 2145, with all affected parties represented equitably at the table of discussion." ASSEMBLY FLOOR : 51-15, 5/28/14 AYES: Achadjian, Allen, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Garcia, Gatto, Gomez, Gonzalez, Gray, Grove, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Maienschein, Medina, Melendez, Muratsuchi, Nazarian, Nestande, Pan, Patterson, Perea, John A. Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Wagner, Waldron, Wilk, Williams, Atkins NOES: Ammiano, Bloom, Chesbro, Donnelly, Fox, Gordon, Gorell, Levine, Logue, Mansoor, V. Manuel Pérez, Skinner, Stone, Ting, Yamada NO VOTE RECORDED: Alejo, Bigelow, Eggman, Fong, Frazier, Beth Gaines, Hagman, Linder, Lowenthal, Mullin, Olsen, Weber, Wieckowski, Vacancy JG:e 8/19/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED