California Legislative Priorities CMUA Annual Conference March 29, 2017

By the Numbers: Election Outcome

By the Numbers: Election Outcome But: Moderate Democrats (10-15) tend to move Assembly to Middle

The Challenge

California an Island Again

In the Company of Islands

2017 Leadership

Top Priorities are Shared Priorities

Top Priorities are Shared Priorities

Cap and Trade How Did We Get Here? Where Are We Now? AB 32 (2006) SB 32 (2016) and AB 197 (2016) Where Are We Now? 2030 Scoping Plan Update Legal Challenges to Cap-and-Trade Post 2020 Cap-and-Trade Rulemaking Emergence of Environmental Justice Where Are We Going? Governor desires Cap-and-Trade to continue Two Assembly bills introduced AB 378 (Garcia, Garcia & Holden) & AB 151 (Burke & Cooper) High Speed Rail Environmental Justice

SB 350

SB 350 How Did We Get Here? Where Are We Now? Where Are We Going? 50% RPS by 2030 Double Energy Efficiency in Existing Buildings by 2030 Reduce Petroleum Use in Cars and Trucks by 50% by 2030 IOUs, CCAs, POUs must adopt Integrated Resource Plans (IRP) Where Are We Now? CPUC /CEC on Parallel Tracks on Implements RPS CEC Developing Methodology to Set Statewide EE Targets CPUC, CEC, and ARB are coordinating on IRP Where Are We Going? Focus on the 50% by 2026 100% RPS Clean Energy Standard via Integrated Resource Plans

Procurement Mandates

Procurement Mandates How Did We Get Here? Where Are We Now? Expanding Mandates for Specific Technologies Steadily Expanding NEM – SB 656 (1995)  AB 327 (2013) Energy Storage – SB 2514 (2010) Biomass – SB 859 (2016) Where Are We Now? CPUC Adopts NEM “Successor” Tariff Several POUs have hit Cap and adopted own programs CPUC Adopted Aggressive Storage Mandates POUs Evaluating Best Path forward on Storage Where Are We Going? California Energy Storage Initiative - SB 700 (Wiener) Clean Peak Energy Storage – AB 1405 (Mullin) Net-Load Peak Energy – SB 338 (Skinner)

Grid Safety

Grid Safety How Did We Get Here? Where Are We Now? Where Are We Going? 2007/2008 Power-Line Ignited Wildfires 2015 Butte Fire 2013 PG&E Metcalf Substation Attack Where Are We Now? 9-Year Long CPUC Proceeding on Fire Maps Fire Mitigation Plans - SB 1038 (2016) CPUC Rulemaking on Physical Security Discussions on Cyber Security Where Are We Going? Bond and C&T Revenues Codify EO B-35-15 – AB 1306 (Obernolte) Assembly Privacy & Consumer Protection Committee Bills Cybersecurity Integration Center (EO B-35-15)