01-23-2017 BPU RPT 09 - Laserfiche WebLink

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L1+ H i E k E N E u i Y I. ! h I 69& P U B L I C U T I L I T I E S RIVERSIDE PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES Board Memorandum SUBJECT: 2016 STATE LEGISLATIVE UPDATE ISSUE: Receive and file a State legislative update. RECOMMENDATION: DATE: JANUARY 23, 2017 ITEM NO: 9 That the Board of Public Utilities receive and file a legislative update covering state legislative matters. BACKGROUND: Riverside Public Utilities (RPU) engages in state and federal legislative policy discussions and advocacy to advance the best interests of the City of Riverside and its ratepayers. RPU collaborates with the City's legislative team, Southern California Public Power Authority (SCPPA), and various trade associations including but not limited to the California Municipal Utilities Association (CMUA) and the Association of California Water Agencies (ACWA). RPU's legislative engagement is consistent with, and is designed to advance, the City's approved legislative platform. DISCUSSION: This report covers California energy and water legislation that was chaptered in 2016. 2016 California Energy Legislation SB 859: Senate Bill (SB) 859, is a budget trailer bill that features an expenditure plan for unallocated cap - and -trade proceeds. The expenditure plan is designed to reduce greenhouse gas emissions through programs that benefit disadvantaged communities, support clean transportation, reduce short-lived climate pollutants and protect natural ecosystems. Within SB 859 is a mandate for local publically-owned utilities serving more than 100K customers to procure its' peak demand share of 125MW from facilities that generate energy from wood harvested from high fire hazard zones and from projects that began operations prior to June 1, 2013 and produce electricity using specified minimum percentages of certain types of forest feedstock, for at least 5 years. RPU's Power Resources group is currently monitoring the compliance element of this new law. Compliance with the biomass procurement mandate is projected to result in a net revenue loss of at least $3 million to RPU's budget over the next five years.