The June deadline for State legislative bills to pass out of their house of origin has passed, with many key energy bills moving forward. Following are key items from the list of priority legislation related to energy and electric utilities.

• SB 64 (Wieckowski) Natural Gas Power Plant reporting. (Oppose) This bill would require the California Independent System Operator (CAISO), on a quarterly basis, to provide to the California Air Resources Board data associated with startups, shutdowns, and cycling of fossil-fueled electrical generating facilities. The bill would also require local air districts to consider emissions data in their permitting processes and allow local air districts to place operational limitations on plants for poor air-quality days.

Staff Comment: The City is opposed to this bill due to increased data-reporting requirements and additional staff workload.


• AB 3232 (Friedman) Zero-emissions buildings and sources of heat energy. (Watch) This bill would require the California Energy Commission to assess the potential for the state to reduce the emissions of greenhouse gases from the state's residential and commercial building stock by at least 40 percent below 1990 levels by 2030. Amendments have been removed from a previous proposal to adopt standards for a program of electrical load management for each electric utility.

Staff Comment: The City is watching this bill for any potential fuel-switching mandates that would eliminate the use of natural gas for heating and place those additional requirements on the electric-utility industry.


• SB 1440 (Hueso) Gas Pipeline; Biomethane. (Oppose) This bill would establish a requirement, that a (non-publicly owned) gas corporation procure biomethane and that they be allowed recovery in rates of the costs of investments for this program. The bill would also allow the California Air Resources Board to review and update the mandate requirement on a five-year basis, potentially allowing CARB to increase the mandate requirement in the future.

Staff Comment: The City is opposed to this bill because it would allow the investor-owned gas utilities to pass through to all customers the cost of interconnection associated with procuring the bill’s proposed biomethane resources; which would increase costs to our customers.


Ongoing Bill Update
The following five bills were reported at the last Law & Regulation Committee meeting. Two of those bills—AB 893 and SB 1110—had no action; while AB 2693 and AB 2208 have died. Action was taken on the following bill:


• AB 813 (Holden) Multistate Regional Transmission System (Oppose)
This bill seeks to allow the transition of the CAISO to a regional governance structure. The bill would also allow the California Energy Commission authority to approve a California transmission owner, retail seller, or local publicly owned electric utility that has joined an independent system operator that becomes a multistate regional transmission organization; to remain in the organization based upon meeting specific criteria. If approved, this proposal could begin the foundation for the creation of a multi-state regional transmission organization.

Staff Comment: Staff has proposed amendments that would address concerns over the lack of stakeholder participation and the potential for cost increases with a regional transmission organization. Since the amendments have not been received into the bill, the city has taken an opposed position to AB 813.

Federal Issues

• U.S. Department of Energy. The Multi-year Plan for Energy Sector Cybersecurity, calls for a strong public-private partnership in order to strengthen industry cyber risk management capabilities.

• Broadband Deployment Advisory Committee. The Northwest Public Power Association (NWPPA), a coalition comprised of over 150 consumer-owned utilities across nine states, has expressed concerns over a one-size-fits-all approach model developed by the Federal Communications Commission’s Broadband Deployment Advisory Committee. This model, which addresses the pole attachment issue, does not support NWPPA member’s goal of providing reliable, low-cost electric service to customers.

• The House Energy and Commerce Subcommittee on Energy held an oversight hearing on “Improving the Hydropower Licensing Process.” The goal of the hearing was to discuss ways to streamline the bureaucratic process.


Conclusion
Staff is continually working with its coalition partners to develop strategies to influence key legislation that could have impacts to the electric utility industry. Staff will continue to convey to the Law & Regulation committee legislation that could have impacts to the department.

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Dominick Casey, Acting City Manager