BILL NUMBER: AB 628INTRODUCED BILL TEXT INTRODUCED BY Assembly Members Gorell and Hall FEBRUARY 20, 2013 An act to add Section 63045.1 to the Government Code, and to amend Section 21180 of, and 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, as introduced, Gorell. Energy management plans for harbor and port districts. (1) Existing law requires the California Infrastructure Development Bank, following consultation with appropriate state and local agencies, to establish criteria, priorities, and guidelines for the selection of projects to receive assistance from the bank, including those based on, among other things, the State Environmental Goals and Policy Report, or its successor, relating to implementation of state environmental goals and policies. Existing law further requires that projects that receive assistance from the bank, among other things, facilitate effective and efficient use of existing and future public resources so as to promote both economic development and conservation of natural resources. This bill would require the bank to fund projects to finance projects to promote economic development in harbor and port districts that are developed pursuant to energy management plan. (2) 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 require a harbor or port district, as defined, in collaboration with an electrical corporation, gas corporation, or publicly owned electric utility, as defined, serving the district, to prepare an energy management plan for the district that is intended to reduce air emissions and promote economic development through the addition of new businesses and the retention of existing businesses in the district, in accordance with specified requirements. (3) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA establishes procedures for creating the administrative record judicial review procedure for any action or proceeding brought to challenge the lead agency's decision to certify the EIR or to grant project approvals. Existing law, the Jobs and Economic Improvement Through Environmental Leadership Act of 2011, until January 1, 2015, establishes specified judicial review procedures for the judicial review of the EIR and approvals granted for a leadership project related to the development of a residential, retail, commercial, sports, cultural, entertainment or recreational use project, or clean renewable energy or clean energy manufacturing project. The act authorizes the Governor to certify a leadership project for streamlining pursuant to the act if certain conditions are met. This bill would include a project to develop or implement an energy management plan developed pursuant to provisions of the bill among those types of projects covered by the Jobs and Economic Improvement Through Environmental Leadership Act of 2011. Because the lead agency would be required to use alternative procedures for creating the administrative record for projects to implement an energy management plan, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 63045.1 is added to the Government Code, to read: 63045.1. Projects to promote economic development in harbor and port districts implemented pursuant to an energy management plan developed in accordance with Chapter 13 (commencing with Section 25990) of Division 15 of the Public Resources Code shall be eligible for funding under this article. The bank shall consider appropriate action to remove unnecessary barriers for the financing of those projects. SEC. 2. Section 21180 of the Public Resources Code is amended to read: 21180. For the purposes of this chapter, the following terms shall have the following meanings: (a) "Applicant" means a public or private entity or its affiliates, or a person or entity that undertakes a public works project, that proposes a project and its successors, heirs, and assignees. (b) "Environmental leadership development project," "leadership project," or "project" means a project as described in Section 21065 that is one the following: (1) A residential, retail, commercial, sports, cultural, entertainment, or recreational use project that is certified as LEED silver or better by the United States Green Building Council and, where applicable, that achieves a 10-percent greater standard for transportation efficiency than for comparable projects. These projects must be located on an infill site. For a project that is within a metropolitan planning organization for which a sustainable communities strategy or alternative planning strategy is in effect, the infill project shall be consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board, pursuant to subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code, has accepted a metropolitan planning organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets. (2) A clean renewable energy project that generates electricity exclusively through wind or solar, but not including waste incineration or conversion. (3) A clean energy manufacturing project that manufactures products, equipment, or components used for renewable energy generation, energy efficiency, or for the production of clean alternative fuel vehicles. (4) A project to develop or implement an energy management plan developed pursuant to Chapter 13 (commencing with Section 25990) of Division 15. (c) "Transportation efficiency" means the number of vehicle trips by employees, visitors, or customers of the residential, retail, commercial, sports, cultural, entertainment, or recreational use project divided by the total number of employees, visitors, and customers. SEC. 3. 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. The Legislature finds and declares all of the following: (a) The state should promote 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 should encourage 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 can 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 could benefit through greater stability and certainty in the cost of energy services. (f) Investor-owned and publicly owned utilities are in an optimal position, and should be encouraged to engage in joint projects with port and harbor districts to provide and administer energy-related service alternatives and programs that can promote economic development and retention in those districts. 25991. (a) For purposes of this chapter, the term "district" shall mean a harbor or port district formed pursuant to Division 8 (commencing with Section 5000) of the Harbors and Navigation Code. A district may prepare one or more energy management plans, developed jointly with an electric 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, 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 electric or natural gas load forecast, developed in coordination with the serving electrical corporation, gas corporation, or local publicly owned electric utility, and that reflects anticipated load growth within the district. (2) 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, or local publicly owned electric utility. (3) A list of recommendations, developed jointly with the serving electrical corporation, gas corporation, or local publicly owned electric 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. (4) A plan 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, 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, and may provide for utility ownership or operation of those facilities to provide services within the district. (5) Other proposed actions and associated utility services that may be implemented in connection with the jointly developed energy management plan. (6) Proposed methods to fund the activities included in the plan, including funding through utility ratepayer-funded programs and financing through the California Infrastructure and Economic Developmental Bank established pursuant to Chapter 3 (commencing with Section 63050) of Division 1 of Title 6.7 of the Government Code, the California Alternative Energy and Advanced Transportation Financing Authority Act (Division 16 (commencing with Section 26000)), or other appropriate sources. (c) If a district has jointly developed with an electric or gas corporation one or more plan elements under a plan prepared pursuant to subdivision (b) that involves special programs to be offered in the district and administered by the electric or gas corporation to facilitate emissions reductions, increase energy efficiency, or promote economic development, including, but not limited to, the use of biogas for direct injection into common carrier pipelines, economic development rates, distributed generation, energy storage, and alternative fuel vehicle infrastructure, the Public Utilities Commission shall provide expedited review of the proposed jointly developed elements of the plan. 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, and shall not limit the role of the electric or gas corporation that was cooperatively developed in the energy management plan. The governing boards of local publicly owned utilities 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. (d) 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 and shall consider applying to the California Infrastructure and Economic Development Bank for financial support of these projects. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.