BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1409
                                                                  Page  1


          SENATE THIRD READING
          SB 1409 (Pavley)
          As Amended  June 28, 2012
          Majority vote

           SENATE VOTE  :38-0  
           
           UTILTIES & COMMERCE            14-0                 
          APPROPRIATIONS      17-0        
           
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          |Ayes:|Bradford, Fletcher,       |Ayes:|Fuentes, Harkey,          |
          |     |Buchanan, Fong, Fuentes,  |     |Blumenfield, Bradford,    |
          |     |Gorell, Roger Hern�ndez,  |     |Charles Calderon, Campos, |
          |     |Huffman, Knight, Ma,      |     |Davis, Donnelly, Gatto,   |
          |     |Nestande, Skinner,        |     |Hall, Hill, Lara,         |
          |     |Swanson, Valadao          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |     |                          |     |                          |
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           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.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, no additional cost.  The bill's provisions are 
          consistent with current activities conducted by OPR.

           COMMENTS  :   The author states that this bill 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.









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           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.  OPR formulates long-range state goals and 
          policies to address land use, climate change, population growth 
          and distribution, urban expansion, infrastructure development, 
          and resource protection.  OPR acts as the state's liaison to a 
          variety of entities including local government, planning 
          professionals, small business, and the military. 

          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 OPR but for all 
          intents and purposes is a standalone entity.

           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 DoD's energy 
          security and related military mission goals.  

          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 this bill 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 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 








                                                                  SB 1409
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          Public Utilities Commission (PUC), Air Resources Board, 
          Department of Water Resources, and the State Energy Resources 
          Conservation and Development Commission will be identified by 
          OPR to collaborate with DoD.  It is unknown if there are other 
          state agencies in U.S. that currently collaborate with DoD on 
          energy security and related military mission goals.


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


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