BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1409
                                                                  Page  1

          Date of Hearing:   June 25, 2012

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
             SB 1409 (Pavley) - As Proposed To Be Amended:  June 25, 2012

           SENATE VOTE  :   38-0
           
          SUBJECT  :   Office of Planning and Research: clean energy 
          technologies and
          projects.

           SUMMARY  :   Enhances the duties of the State Office of Planning 
          and Research (OPR).  Specifically,  this bill  :   

          1)Requires OPR to identify which state agencies must consider 
            energy security and military mission goals.

          2)Requires OPR to serve as a liaison to coordinate effective 
            inclusion of Department of Defense (DoD) in the development 
            and implementation of state energy and environmental policy.

          3)States the bill does not intend to authorize or require DoD to 
            operate differently from other self-generating ratepayers, or 
            alter any existing rate structures.

           EXISTING LAW  :   Establishes the Governor's Office of Planning 
          and Research (OPR) for the purpose of developing state land use 
          policies, coordinating planning of all state agencies, and       
              assisting and monitoring local and regional planning.

           FISCAL EFFECT  : Unknown.   

           COMMENTS  :   The author states that SB 1407 is not intended to 
          affect ratepayers or customers at all, as it merely requires 
          state agencies, at the direction of OPR, to consider DoD's 
          energy security and related military mission goals in addressing 
          state energy and environmental policy matters.

           1)Background  :  The Office of Planning and Research (OPR), 
            created by statute in 1970, is part
          of the Office of the Governor.  OPR assists the Governor and the 
          Administration in planning, research, policy development, and 
          legislative analysis. The OPR formulates long-range state goals 
          and policies to address land use, climate change, population 








                                                                  SB 1409
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          growth and distribution, urban expansion, infrastructure 
          development, and resource protection.  The OPR acts as the 
          state's liaison to a variety of entities including local 
          government, planning professionals, small business, and the 
          military. 

          The OPR houses the Advisor on Military Affairs and supports the 
          Strategic Growth Council.  The mission of CaliforniaVolunteers 
          is to increase the number and impact of Californians involved 
          with service and volunteering throughout the state.  
          CaliforniaVolunteers is administered through the OPR but for all 
          intents and purposes is a standalone entity.

           2)Collaboration needed between state and the military  :  This 
            bill would require OPR to identify
          which state agencies must consider DoD's energy security and 
          related military mission goals in developing or implementing 
          state energy and environmental policy.  California law does not 
          require state agencies involved with the implementation of 
          energy and environmental policy to consider the DoD's energy 
          security and related military mission goals.  

          The DoD's activities in California include ongoing development 
          and deployment of renewable power generation and 
          interconnection, demand response, alternative fuel production, 
          and advanced vehicle deployment.  All of which could potentially 
          impact state agencies rules and regulations, including land use, 
          air permitting, grid interconnection and reliability planning.

          The author believes SB 1409 is necessary as it could potentially 
          circumvent conflicts between state law and the military energy 
          security objectives within the state.  It may also ensure that 
          the DoD has the regulatory climate necessary to allow it to 
          aggressively pursue its mission to displace the use of petroleum 
          through conservation and alternative means of energy production.

          The bill does not suggest which state agencies may be identified 
          by OPR.  Though it is likely that agencies such the California 
          Public Utilities Commission (PUC), Air Resources Board, 
          Department of Water Resources, and the State Energy Resources 
          Conservation and Development Commission are will be identified 
          by OPR to collaborate with DoD.  It is unknown if there are 
          other state agencies in the U.S. that currently collaborate with 
          DoD on energy security and related military mission goals.









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          3)Related legislation  :  SB 1462 Kuehl (Chapter 906, Statutes of 
            2004) added Government
          Code Section 65404 which designated OPR as the lead state 
          designee for military readiness activities related to special 
          use airspace.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Operation Free
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916) 
          319-2083