BILL ANALYSIS �
AB 1763
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Date of Hearing: April 28, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 1763 (Perea) - As Amended: March 28, 2014
SUBJECT : State energy plan for 2030 and 2050
SUMMARY : Requires the California Energy Commission (CEC) to
prepare a "state energy plan" for 2030 and 2050 according to
specified criteria.
EXISTING LAW requires CEC to assess electricity infrastructure
trends and issues facing California and develop and recommend
energy policies for the state to address and resolve such issues
as part of its biennial Integrated Energy Policy Report (IEPR).
[SB 1389 (Bowen), Chapter 568, Statutes of 2002]. The IEPR
must contain an overview of major energy trends and issues
facing the state, including, but not limited to, supply, demand,
pricing, reliability, efficiency, and impacts on public health
and safety, the economy, resources, and the environment.
THIS BILL :
1)Requires the CEC, on or before January 1, 2016, and in
consultation with the Independent System Operator, other
relevant state and local agencies, and interested
stakeholders, in an open and public process, to develop and
submit to the Governor and the Legislature a report containing
a state energy plan for 2030 and 2050 that promotes economic
growth, ensures reliable and affordable energy supplies, and
positions the state as a leader in the United States and world
energy markets.
2)Defines "energy" as electricity, natural gas, and
transportation fuels that are used for powering homes,
businesses, motor vehicles, and aircraft in the state.
3)Requires the CEC, in developing the plan, to consider all of
the following:
a) Energy forecasts based upon California's current and
future energy supply mix forecast to 2030 and 2050.
b) An analysis of California's energy infrastructure
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needs, including a review of current infrastructure and
new infrastructure needed for an evolving supply mix
forecast to 2030 and 2050.
c) Recommendations on ensuring long-term energy supply
reliability and affordability through 2030 and 2050.
4)Provides that the report is intended to assist in establishing
state policy and does not independently change any statute,
regulation, or regulatory decision.
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's statement :
California has implemented some of the most progressive
environmental programs in the world such as the Renewable
Portfolio Standard, Cap-and-Trade and the Low Carbon Fuel
Standard. They have all greatly benefitted our
environmental portfolio; however, there isn't a
comprehensive report or plan out there to inform
policymakers of the cumulative costs and benefits of these
existing policies and regulations. In addition, there is
no existing energy strategy to ensure that current policies
are not working at cross-purposes to the detriment of the
California consumer. The purpose of this bill is to create
a plan that looks at the implications of existing policies,
the infrastructure currently in place and infrastructure
needed to ensure adequate supply, and energy supply
forecasts based upon our current and future supply mix to
help guide us in a direction where we can ensure energy is
affordable and reliable moving forward.
2)Bill seems to invite a supply plan without considering the
full range of factors . This bill asks the CEC to analyze
energy supply and infrastructure needs, which is an
appropriate assignment for the CEC. However, to reflect a
more complete energy plan, the bill should also require the
CEC to consider how California can meet its long-term energy
needs by reducing consumption, improving efficiency and
reducing dependence on unsustainable resources. Specific
consideration should also be given to developing an energy
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plan that is complementary to long-term air quality and
climate change goals. The author and the committee may wish
to consider revising and adding to the considerations in the
bill to provide a more comprehensive direction to the CEC.
3)Is a separate reporting process necessary ? The IEPR was
enacted in 2002 as part of an effort to restore the CEC's
planning functions in the wake of the energy crisis that
followed electric industry restructuring. One of the IEPR's
objectives to was to update and consolidate the dozens of
statutory reports that had accumulated over the preceding 25
years of the CEC's existence. In the 10 years since the IEPR
was enacted, the Legislature has enacted additional reporting
requirements, but each time a report subject fits within the
broad scope of the IEPR, the Legislature has made the subject
part of the IEPR. It's not clear why the report called for by
this bill should be an exception. The author and the
committee may wish to consider directing the CEC to prepare
the plan called for by this bill as a feature of the next
IEPR, rather than through a separate process.
REGISTERED SUPPORT / OPPOSITION :
Support
California Manufacturers and Technology Association
California League of Food Processors
California Retailers Association
Los Angeles County Business Federation
National Federation of Independent Business
Western States Petroleum Association
Opposition
AB 1763
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California Wind Energy Association (unless amended)
Sierra Club California
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092