The conclusion this legislative session marked a significant year for key legislation impacting the electric utility industry. The following are some of the key areas and their respective bills that staff monitored throughout the year.  Staff has also prepared a list of bills that have been signed or vetoed by the Governor or have become two year bills.

The following key energy bills have been signed by the Governor and into law.

Cap and Trade

• AB 398 (E. Garcia) Cap-and-Trade program extension. (WATCH) This bill requires the California Air Resources Board, no later than January 1, 2018, to update the scoping plan, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions. The bill also requires all greenhouse gas rules and regulations adopted by the state board to be consistent with the scoping plan. This bill extends the cap-and-trade program through January 1, 2031. Comment: The City took a watch position on this bill due to the fact that staff was uncertain the direction the bill was going to take as well as the high speed at which this bill moved through the legislature. Electric utilities have been promised allowances to help minimize potential costs. There still remains however several detailed questions related to the program.




• AB 617 (C. Garcia) Non-vehicular Air Pollution: Criteria Air Pollutants (WATCH). This bill requires the California Air Resources Board to develop a uniform statewide system of annual reporting of emissions of criteria air pollutants and toxic air contaminants for use by certain categories of stationary sources. The bill requires those stationary sources to report their annual emissions of criteria air pollutants and toxic air contaminants. The bill also establishes a comprehensive, statewide program to address air pollution in neighborhoods with high pollutants. Comment: The City was neutral on this bill due to the fact that there may be little impact to our community, as not being considered a “high pollutant” region.

• ACA 1 (Mayes) Greenhouse Gas Reduction Reserve Fund (WATCH). This measure creates the Greenhouse Gas Reduction Reserve Fund (GGRRF).  All monies collected by the California Air Resources Board (in the GGRRF) after January 1, 2024 shall be available upon appropriation by the Legislature by a two-thirds vote of the membership of each house.  Comment: The City was neutral on this bill as there is no certainty to the impact to our community.

Other key bills signed by the Governor:

• AB 1070 (Gonzalez-Fletcher). Solar energy systems: contracts; disclosures (SUPPORT).  This bill requires the Contractor’s state license board and the Public Utilities Commission, to develop and make available on its Internet Web site a disclosure document that provides a consumer with accurate, clear, and concise information regarding the installation of a solar energy system. The bill requires this disclosure document to be provided by the solar energy systems company to the consumer prior to completion of a sale, financing, or lease of a solar energy system. Comment: The City was very supportive of this bill due to the requirements to inform our customers with more information prior to making an investment in a solar energy system.

• SB 338 (Skinner) Integrated resource plan. (OPPOSE). This bill requires local publicly owned electric utilities to consider, as a part of the integrated resource plan process, the role of distributed energy resources and other specified energy and efficiency related tools, in helping to meet energy needs and reliability needs while achieving state energy goals. Comment: The city was opposed to this bill as it is an attempt by state regulatory agencies to increase their authority over publicly owned electric utilities (reducing local control) via the integrated resource plan process.




The following key bills were vetoed by the Governor:

• AB 79 (Levine) Electrical Generation: Hourly Greenhouse Gas Emissions. (WATCH). This bill would have required the air resources board to work together with the California balancing authorities, to update its methodology for the calculation of emissions of greenhouse gases associated with electricity from unspecified sources. The bill would also have authorized the state to not update methodologies for the calculating greenhouse gas emissions from unspecified sources if it would have caused an administrative burden to regulate these types of emissions. Comment: With the bulk of power procured by the department secured from long-term power purchase agreements, most of the greenhouse gas emissions is responsibly accounted for. An attempt to identify exact emissions from unspecified resources would place an undue administrative burden on the electric utility industry. The city had maintained a watch position on this bill.

• SB 513 (Bradford) Assault and Battery of a Public Utility Worker. (SUPPORT). This bill would have increased the fines for assault and battery of a utility worker who is engaged in the performance of his or her duties, and the person committing the offense knew or reasonably should have known that the victim is a utility worker engaged in the performance of his or her duties. The assault and battery is also punishable by imprisonment in a county jail. Comment: There has been an increase in assault and battery cases the past few years reported against public workers in the electric utility industry. The city continues to support legislation that increases the safety for its utility workers and deters violence at work.

• AB 1091 (Quirk) Balloons: Electrically Conductive Material. (WATCH). Existing law makes it a crime to release outdoors, balloons made of electrically conductive material and filled with a gas lighter than air, as part of a promotional activity, public or civic event. This bill would have required that the balloon be released willfully, and would delete the requirement that the balloon be released as part of a promotional activity, public or civic event.  Comment: The City had a watch on this bill. Although we are aware that balloons made of electrically conductive material increase the chance of power outages, the city prefers public education and outreach over criminal penalties.


There are a number of key bills from the priority list that have now become two-year bills. The department will continue to watch these bills closely to determine the route they take during the beginning of the 2018 session. These bills could potentially impact the electric utility industry in such key areas as regionalization, clean power and increased renewable portfolio standards.


Federal Issues
• Tax-Exempt Financing
• Privatization of Transmission Assets
• Hydropower Re-licensing
• Environmental Protection Agency Power Plant Emissions


Conclusion
Although the 2017 legislative session has officially ended, there remains several unanswered questions as to the direction other key energy issues will move during 2018. Staff will continue to remain engaged with its coalition partners, state and federal agencies and its legislative representatives to ensure local input to key energy issues impacting our constituents.

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Rob Jensen, City Manager