BILL NUMBER: AB 628 CHAPTERED BILL TEXT CHAPTER 741 FILED WITH SECRETARY OF STATE OCTOBER 11, 2013 APPROVED BY GOVERNOR OCTOBER 11, 2013 PASSED THE SENATE SEPTEMBER 11, 2013 PASSED THE ASSEMBLY SEPTEMBER 12, 2013 AMENDED IN SENATE SEPTEMBER 11, 2013 AMENDED IN SENATE SEPTEMBER 4, 2013 AMENDED IN SENATE AUGUST 12, 2013 AMENDED IN SENATE JULY 10, 2013 AMENDED IN ASSEMBLY MAY 8, 2013 AMENDED IN ASSEMBLY APRIL 24, 2013 AMENDED IN ASSEMBLY APRIL 1, 2013 INTRODUCED BY Assembly Members Gorell and Hall (Coauthor: Assembly Member Brown and V. Manuel Pérez) FEBRUARY 20, 2013 An act to add Chapter 13 (commencing with Section 25990) to Division 15 of the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 628, Gorell. Energy management plans for harbor and port districts. Existing law requires the State Energy Resources Conservation and Development Commission to adopt energy conservation standards to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, and to implement various programs to provide financial assistance to specified entities for energy efficient improvements. This bill would authorize the Humboldt Bay Harbor, Recreation, and Conservation District and specified harbor and port districts, as defined, jointly with an electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or publicly owned electric or gas utility serving the district to prepare one or more energy management plans to reduce air emissions and promote economic development through the addition of new businesses and the retention of existing businesses in the district. The bill would require, if a district prepares an energy management plan pursuant to these provisions, that the plan include specified provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The state promotes the efficient use of low-cost, low-emissions energy sources in the operations of its ports and harbors. (b) There is an opportunity in port and harbor district operations, including the movement of commercial goods, to reduce vehicular emissions of greenhouse gases and criteria pollutants. (c) The state encourages the development of new businesses and the retention of existing businesses within port and harbor district boundaries. (d) Energy utility customers located within the state's port and harbor districts may benefit from the addition of new businesses and the retention of existing businesses through increased energy cost certainty. (e) Businesses located within the state's port and harbor districts may benefit through greater stability and certainty in the cost of energy services. (f) Investor-owned utilities, community choice aggregators, and publicly owned utilities are in an optimal position, and are encouraged to engage in joint projects with port and harbor districts to provide and administer energy-related service alternatives and programs that may promote economic development and retention in those districts. SEC. 2. Chapter 13 (commencing with Section 25990) is added to Division 15 of the Public Resources Code, to read: CHAPTER 13. ENERGY MANAGEMENT PLANS FOR HARBOR AND PORT DISTRICTS 25990. (a) For purposes of this chapter, the term "district" shall mean the Humboldt Bay Harbor, Recreation, and Conservation District, the Ports of Hueneme, Oakland, Long Beach, Los Angeles, Redwood City, Richmond, San Diego, San Francisco, Stockton, and West Sacramento, and any other harbor, recreation, and conservation district that operates a harbor or port in the state. A district may prepare one or more energy management plans, developed jointly with an electrical corporation, as defined in subdivision (a) of Section 218 of the Public Utilities Code, a gas corporation, as defined in Section 222 of the Public Utilities Code, a community choice aggregator established on or before July 1, 2013, or a public utility, as defined in subdivision (a) of Section 216 of the Public Utilities Code, that produces, generates, or supplies electricity to the public and that serves the district in order to reduce air emissions, promote economic development, and encourage the development of new businesses and retain existing businesses in that district. (b) If a district prepares an energy management plan pursuant to this chapter, it shall include, at a minimum, all of the following: (1) An assessment of current energy consumption within the district by energy source and type of users. Examples of users may include commercial, industrial, governmental, ships, individual transport, and product transport. (2) An assessment of other energy efficiency and management issues the district determines to evaluate in order to inform the development of specific goals and actions that reduce air emissions and promote economic development, including all of the following: (A) An electric or natural gas load forecast, developed in coordination with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility that reflects anticipated load growth within the district. (B) An assessment of the role that distributed generation, combined with accurately priced utility services, could play in providing greater rate stability and energy cost certainty to aid in economic development, and proposed actions with respect to that role. This assessment shall be developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility. (C) An assessment, in consultation with business and industry, that identifies current and emerging processes and technologies to reduce energy consumption and improve energy efficiency. (D) An assessment, in consultation with business and industry, that identifies domestic and international shipping requirements and operations related to energy use and consumption. (3) A set of measurable energy performance and management goals that reduce air emissions and promote economic development, and a prioritized list of infrastructure projects, public education initiatives, and other actions that the district will undertake to achieve those goals. (4) A list of recommendations, developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility for the enhanced use of cost-effective energy efficiency and demand-side management in existing buildings and the inclusion of energy efficiency measures as part of the development of new buildings. (5) A description of measures to be taken to reduce air emissions for vehicle use within district boundaries, including vehicles used for movement of commercial products. Proposed actions, developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric utility, may include replacement of vehicles with lower emitting alternatives and development of infrastructure, in appropriate areas, to aid in the refueling of alternative fuel vehicles. (6) A summary identifying governmental and nongovernmental impediments to implementation of the plan that includes recommendations on how these impediments may be overcome. (7) A description of one-year, 3-year, 5-year, 10-year, and 15-year objectives for implementation of the plan. These objectives shall be in sufficient detail to allow the district to undertake a meaningful annual review of the plan's progress. (8) Proposed methods to fund the activities included in the plan, including funding through utility ratepayer-funded programs. (9) Other related energy plans, mandates, and requirements, and, to the extent possible, leverage opportunities for achieving energy efficiency and sustainable energy production, while not overburdening impacted businesses. (c) A district that prepares a plan shall engage with small business technical assistance providers to assist in the identification of joint or collaborative energy efficiency project opportunities, public education activities, and financing opportunities that implement the actions and projects in the plan. (d) The Public Utilities Commission shall encourage electric or gas corporations to participate jointly with local agencies in developing, implementing, and administering viable energy management plans for districts. The governing boards of local publicly owned utilities, community choice aggregators established on or before July 1, 2013, and rural electric cooperatives shall encourage joint participation with local agencies and gas corporations in developing, implementing, and administering viable energy management plans for districts. (e) If an energy management plan is prepared pursuant to this chapter, it shall also address the development of projects that provide greater certainty of energy costs over a period of up to 15 years for businesses developing in the district. (f) The Public Utilities Commission may offer technical assistance in the preparation of the energy management plans developed and implemented pursuant to this chapter, including, but not limited to, identifying best practices, innovations in technology, and potential funding sources.