HomeMy WebLinkAbout8 CMUA AGENDA ITEM #8
Public Utility District m
MEETING DATE: June 7, 2023
TO: Board of Directors
FROM: Steven Poncelet, Public Information Officer
SUBJECT: California Municipal Utilities Association Legislative & Regulatory
Update
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Receive this presentation.
BACKGROUND:
The District has a long history of advocating in Sacramento and across California for
the interests of District rate payers and our community. As a small utility, the District
has engaged with sister electric and water utilities across California in this effort through
participation in the California Municipal Utilities Association (CMUA), Northern
California Power Agency (NCPA), and Association of California Water Agencies
(ACWA). Each of these agencies has formal Legislative & Regulatory (L&R)
committees and District staff are active with all three L&R and related working
groups. Participation in these joint-action groups has enabled the District to engage in
a meaningful way and maximize the District's access and influence on energy, water,
and other policy areas in California.
ANALYSIS AND BODY:
For 2023, the L&R activity in Sacramento has been very dynamic with many potential
opportunities and threats in play. On the legislative side, hundreds of potential bills are
in play and working their way through the committee and political process. Of particular
note for the District is AB 1594 (E. Garcia) which is a CMUA/NCPA/SCPPA sponsored
bill - targeted at serious concerns for the District and almost all California electric and
water utilities - regarding the recently adopted California Air Resources Board
Advanced Clean Fleets (ACF) Rule. The ACF mandates the conversion of medium and
heavy duty fleets to Zero Emmission Vehicles (ZEV's) starting with 50% of purchases
starting in January 2024 and 100% of purchases starting in January 2027. The District
has been very engaged with the development of the rule given the serious concerns
about the commercial availability of specialty ZEV's that do work in the field, and the
potential negative impacts on the District's ability to provide essential services, maintain
critical infrastructure, and support emergency response. It should be noted that the
District was successful in requesting changes to the low-population county exemption in
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the ACF, which has delayed compliance till 2027. However, even with this delay, the
ACF is highly flawed and in need of change.
Other legislative activities in 2023 focus on accelerating environmental mandates,
CEQA and other permitting reforms (especially regarding renewable energy and
transmission projects), wildfire, water rights, and a slew of other issues. CMUA, NCPA,
and ACWA are on-site in Sacramento and active across California identifying potential
legislation that could positively or negatively impact their members, and engaging in a
productive way to either support, oppose, or modify potential legislation.
On the regulatory front, as indicated above in the legislative section, the District has
finished a two+ year effort to work with CARB staff and Board to produce a workable
ACF. The District and our partners were successful in securing many improvements,
but the adopted regulation fell well short of meeting the needs of electric and water
utilities. District staff and our partners will continue to work with CARB staff during
implementation but the focus has shifted to AB 1594 and a legislative fix. District staff
and our partners continue to work with CARB on the Cap and Trade (AB 32) program
and the Low Carbon Fuel Standard (LCFS) program implementation, along with
continued engagement on wildfire mitigation with the Wildfire Advisory Safety Board
(WASB). On the water side, there is significant regulatory activity at the State Water
Resources Control Board (SWRCB) and the Department of Water Resources (DWR)
regarding water supply, conservation, and quality.
In the background of all of the above is California's projected $32 billion defecit and the
Governor's budget trailer proposals released in mid-May, which include proposed cuts
to many funding programs being targeted by electric and water utilities for potential
funding. This may impact, for example, the California Public Utilities Commission
(CPUC) Local Agency Technical Assistance (LATH) grant program as a potential
funding source for the District's Community-Wide Broadband initiative feasibility
study/business plan. CMUA's senior staff from both the energy and water, regulatory
and legislative departments will present a 2023 L&R update and will be available to field
questions and receive input from the District's Board and the public.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
FISCAL IMPACT:
There is no direct fiscal impact associated with the workshop item.
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ATTACHMENTS:
None
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