AB 3006: Energy: offshore wind generation.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-06-26
Current Status:
Failed
(2024-08-15: In committee: Held under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
This bill adds port facilities for offshore wind to the state’s definition of infrastructure and requires the Governor’s five-year infrastructure plan to address them. Beginning with the 2026–27 plan, the Governor must assess funding needs for those port upgrades and, after consulting finance and energy agencies, identify federal, state, local, bond, and private funding options to help build them.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified. Existing law requires the Energy Commission, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, as specified.
Existing law, the California Infrastructure Planning Act, requires the Governor to annually submit a 5-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
This bill would amend the definition of infrastructure described above to include port infrastructure for offshore wind energy development, and would require the 5-year infrastructure plan to include, beginning in the 202627 fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development. The bill would require the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified. Existing law requires the Energy Commission, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, as specified.
Existing law, the California Infrastructure Planning Act, requires the Governor to annually submit a 5-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
This bill would amend the definition of infrastructure described above to include port infrastructure for offshore wind energy development, and would require the 5-year infrastructure plan to include, beginning in an unspecified the 202627 fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development. The bill would require the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified. Existing law requires the Energy Commission, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, as specified, and requires the plan to include, among other things, recommendations for workforce standards for offshore wind energy facilities and associated infrastructure, including, but not limited to, prevailing wages, a skilled and trained workforce, apprenticeship, local hiring, and targeted hiring standards, that ensure sustained and equitable economic development benefits. specified.
Existing law, the California Infrastructure Planning Act, requires the Governor to annually submit a 5-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
This bill would amend the definition of infrastructure described above to include port infrastructure for offshore wind energy development, and would require the 5-year infrastructure plan to include, beginning in an unspecified fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development. The bill would require the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.
This bill would require the Energy Commission and the California Workforce Development Board to jointly determine the immediate and long-term workforce needs for growing offshore wind generation in this state. After the determination is made, the bill would require the Energy Commission and the board to develop targeted and equitable hiring standards, as specified, and, upon an appropriation by the Legislature, to fund training and education centers that will grow the offshore wind energy generation workforce.Existing law requires the State Energy Resources Conservation and Development Commission, Commission (Energy Commission), in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the commission Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified. Existing law requires the Energy Commission, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, as specified, and requires the plan to include, among other things, recommendations for workforce standards for offshore wind energy facilities and associated infrastructure, including, but not limited to, prevailing wages, a skilled and trained workforce, apprenticeship, local hiring, and targeted hiring standards, that ensure sustained and equitable economic development benefits.
This bill would declare the intent of the Legislature to enact legislation that would address the findings and recommendations from the strategic plan.Existing law, the California Infrastructure Planning Act, requires the Governor to annually submit a 5-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
This bill would amend the definition of infrastructure described above to include port infrastructure for offshore wind energy development, and would require the 5-year infrastructure plan to include, beginning in an unspecified fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development. The bill would require the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.
This bill would require the Energy Commission and the California Workforce Development Board to jointly determine the immediate and long-term workforce needs for growing offshore wind generation in this state. After the determination is made, the bill would require the Energy Commission and the board to develop targeted and equitable hiring standards, as specified, and, upon an appropriation by the Legislature, to fund training and education centers that will grow the offshore wind energy generation workforce.
Existing law requires the State Energy Resources Conservation and Development Commission, in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified.
This bill would declare the intent of the Legislature to enact legislation that would address the findings and recommendations from the strategic plan.
The Legislature finds and declares all of the following:
(a)Under the California Infrastructure Planning Act (Chapter 606 of the Statutes of 1999), the Governor is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Existing law states the intent of the Legislature that this plan be updated annually and identify state infrastructure needs and set out priorities for funding. Under existing law, the plan need not identify specific infrastructure projects to be funded, but it shall be sufficiently detailed to provide a clear understanding of the type and amount of infrastructure to be funded and the programmatic objectives to be achieved by this funding. Under existing law, the infrastructure plan is required to contain, among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(b)Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
(c)The infrastructure plan is required to contain specified information for the five years that it covers, including infrastructure requested by state agencies, aggregate funding for transportation, infrastructure needs for public schools and instructional support facility needs for public higher education institutions, as provided, the estimated cost of providing this infrastructure, and a proposal for funding the infrastructure.
(d)The 100 Percent Clean Energy Act of 2018 enacted by Senate Bill 100 (Chapter 312 of the Statutes of 2018) amended the California Renewables Portfolio Standard Program in order to attain targets for total retail sales generation, and required that eligible renewable energy resources and zero-carbon resources supply 60 percent of all retail sales of electricity to California end-use customers by December 31, 2030, and supply 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045.
(e)The publication 2021 SB 100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment, prepared by the State Energy Resources Conservation and Development Commission (Energy Commission), the Public Utilities Commission, and the State Air Resources Board, includes a review of the policy of supplying 100 percent of retail sales and state loads with renewable and zero-carbon resources in California by 2045, assesses various pathways to achieve the policy, and provides an initial assessment of costs and benefits.
(f)Californias offshore waters are a prime location for new floating offshore wind energy development projects that will help the state meet its bold renewable energy targets. Under existing law, the Energy Commission was required to develop a strategic plan by June 30, 2023, in preparation for advancing the development of offshore wind off the coast of California. In the Energy Commissions report titled, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, preliminary findings of the report set planning goals of 2,000 to 5,000 megawatts of offshore wind by 2030, and 25,000 megawatts by 2045.
(g)On January 19, 2024, the Energy Commission submitted the draft Assembly Bill 525 Offshore Wind Strategic Plan to the Natural Resources Agency and the Legislature. The draft strategic plan discusses various aspects of offshore wind energy potential in California, including economic and workforce development benefits, transmission technology, transmission planning and interconnection, offshore wind permitting, potential impacts from offshore wind projects, identification of port space and infrastructure, and port infrastructure needs. Under existing law, the strategic plan is required to include a detailed assessment of the necessary investments in California seaports to support offshore wind energy activities, including construction, assembly, operations, and maintenance. The assessment is required to consider the potential availability of land and water acreage at each port, including competing and current uses, infrastructure feasibility, deep water access, bridge height restrictions, and the potential impact to natural and cultural resources, including coastal resources, fisheries, and impacts on Native American and Indigenous people.
(h)The strategic plan is also required to strive for compatibility with other harbor tenants and ocean users to ensure that the local benefits related to offshore wind energy construction complement other local industries when considering port retrofits, and it is required to emphasize and prioritize actions that will improve port infrastructure to support land-based work for the local workforce.
(i)A key finding from the draft strategic plan focuses on the necessary upgrades for port and waterfront infrastructure to accommodate the offshore wind industry in California, which will require specialized seaport and waterfront facilities to build, assemble, and service the wind turbines needed to meet the Assembly Bill 525 offshore wind planning goals. Without a port site to assemble the turbine components, the industry will not be able to develop in California.
(j)The draft strategic plan also notes that no port site in California can serve all the needs of the offshore wind industry. Instead, a coordinated multiport strategy will be needed and could require more than 16 large and 10 small port sites, including staging, integration, operations, and maintenance sites, to support offshore wind development over the next decade or more. These sites are required to be developed as soon as possible, and have an estimated cost between $11 billion and of at least $12 billion.
(k)Without significant state, federal, and private investment, the state will risk not meeting the goal of building 5 gigawatts of offshore wind energy by 2030, and 25 gigawatts by 2045.
SEC. 2.Section 13101 of the Government Code is amended to read:13101.As used in this article, infrastructure means port infrastructure for offshore wind energy development and real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
SEC. 3.Section 13102 of the Government Code is amended to read:13102.(a)In conjunction with the Governors Budget submitted pursuant to Section 13337, the Governor shall submit annually a proposed five-year infrastructure plan to the Legislature. This plan shall cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governors Budget with which it is submitted.
(b)The infrastructure plan shall contain the following information for the five years that it covers:
(1)(A)Identification of new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies.
(B)Aggregate funding for transportation as identified in the four-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525.
(C)Infrastructure needs for Kindergarten through grade 12 public schools necessary to accommodate increased enrollment, class size reduction, and school modernization.
(D)The instructional and instructional support facilities needs for the University of California, the California State University, and the California Community Colleges.
(E)Construction, operation, and maintenance for facilities of the State Plan of Flood Control, support for infrastructure needs pursuant to Part 9 (commencing with Section 12980) of Division 6 of the Water Code, support for infrastructure needs pursuant to Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6 of the Water Code, and aggregate funding for the state share of nonfederal capital costs for flood control projects located outside of the Central Valley.
(F)(i)Beginning with the 202627 fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development.
(ii)The Governor shall, in consultation with the Department of Finance, the Office of Planning and Research, the Governors Office of Business and Economic Development, the State Energy Resources Conservation and Development Commission, the State Lands Commission, and the California Workforce Development Board, include in the assessment pursuant to clause (i) any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
(2)The estimated cost of providing the infrastructure identified in paragraph (1).
(3)A proposal for funding the infrastructure identified in paragraph (1) that includes all of the following:
(A)Criteria and priorities used to identify and select the infrastructure it proposes to fund, including criteria used to identify and select infrastructure that by January 1, 2005, shall be consistent with the state planning priorities specified pursuant to Section 65041.1 for infrastructure requested by state agencies pursuant to subparagraph (A) of paragraph (1).
(B)Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease revenue lease-revenue bonds, and installment purchases.
(C)An evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(D)(i)Recommended specific projects for funding or the recommended type and amount of infrastructure to be funded in order to meet programmatic objectives that shall be identified in the proposal.
(ii)Any capital outlay or local assistance appropriations intended to fund infrastructure included in the Governors Budget shall derive from, and be encompassed by, the funding proposal contained in the plan.
SEC. 4.Section 13103 of the Government Code is amended to read:13103.By January 1, 2005, if a state agency requests infrastructure pursuant to subparagraph (A) of paragraph (1) of subdivision (b) of Section 13102, that agency shall specify how that infrastructure is consistent with the state planning priorities specified pursuant to Section 65041.1. The Governor may also order any entity of state government to assist in preparation of the infrastructure plan.
SEC. 5.Section 65042 of the Government Code is amended to read:65042.Every officer, agency, department, or instrumentality of state government, including, but not limited to, all trustee agencies as defined in Section 21070 of the Public Resources Code, shall do all of the following:
(a)Cooperate in the preparation and maintenance of the State Environmental Goals and Policy Report.
(b)By January 1, 2005, ensure that their entitys functional plan is consistent with the state planning priorities specified pursuant to Section 65041.1 and annually demonstrate to the office, and to the Department of Finance when requesting infrastructure pursuant to paragraph (1) of subdivision (b) of Section 13102, how the plans are consistent with those priorities.
(c)Comply with any request for advice, assistance, information information, or other material.
The Legislature finds and declares all of the following:
(a)Under the California Infrastructure Planning Act (Chapter 606 of the Statutes of 1999), the Governor is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Existing law states the intent of the Legislature that this plan be updated annually and identify state infrastructure needs and set out priorities for funding. Under existing law, the plan need not identify specific infrastructure projects to be funded, but it shall be sufficiently detailed to provide a clear understanding of the type and amount of infrastructure to be funded and the programmatic objectives to be achieved by this funding. Under existing law, the infrastructure plan is required to contain, among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(b)Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
(c)The infrastructure plan is required to contain specified information for the five years that it covers, including infrastructure requested by state agencies, aggregate funding for transportation, infrastructure needs for public schools and instructional support facility needs for public higher education institutions, as provided, the estimated cost of providing this infrastructure, and a proposal for funding the infrastructure.
(d)The 100 Percent Clean Energy Act of 2018 enacted by Senate Bill 100 (Chapter 312 of the Statutes of 2018) amended the California Renewables Portfolio Standard Program in order to attain targets for total retail sales generation, and required that eligible renewable energy resources and zero-carbon resources supply 60 percent of all retail sales of electricity to California end-use customers by December 31, 2030, and supply 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045.
(e)The publication 2021 SB 100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment, prepared by the State Energy Resources Conservation and Development Commission (Energy Commission), the Public Utilities Commission, and the State Air Resources Board, includes a review of the policy of supplying 100 percent of retail sales and state loads with renewable and zero-carbon resources in California by 2045, assesses various pathways to achieve the policy, and provides an initial assessment of costs and benefits.
(f)Californias offshore waters are a prime location for new floating offshore wind energy development projects that will help the state meet its bold renewable energy targets. Under existing law, the Energy Commission was required to develop a strategic plan by June 30, 2023, in preparation for advancing the development of offshore wind off the coast of California. In the Energy Commissions report titled, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, preliminary findings of the report set planning goals of 2,000 to 5,000 megawatts of offshore wind by 2030, and 25,000 megawatts by 2045.
(g)On January 19, 2024, the Energy Commission submitted the draft Assembly Bill 525 Offshore Wind Strategic Plan to the Natural Resources Agency and the Legislature. The draft strategic plan discusses various aspects of offshore wind energy potential in California, including economic and workforce development benefits, transmission technology, transmission planning and interconnection, offshore wind permitting, potential impacts from offshore wind projects, identification of port space and infrastructure, and port infrastructure needs. Under existing law, the strategic plan is required to include a detailed assessment of the necessary investments in California seaports to support offshore wind energy activities, including construction, assembly, operations, and maintenance. The assessment is required to consider the potential availability of land and water acreage at each port, including competing and current uses, infrastructure feasibility, deep water access, bridge height restrictions, and the potential impact to natural and cultural resources, including coastal resources, fisheries, and impacts on Native American and Indigenous people.
(h)The strategic plan is also required to strive for compatibility with other harbor tenants and ocean users to ensure that the local benefits related to offshore wind energy construction complement other local industries when considering port retrofits, and it is required to emphasize and prioritize actions that will improve port infrastructure to support land-based work for the local workforce.
(i)A key finding from the draft strategic plan focuses on the necessary upgrades for port and waterfront infrastructure to accommodate the offshore wind industry in California, which will require specialized seaport and waterfront facilities to build, assemble, and service the wind turbines needed to meet the Assembly Bill 525 offshore wind planning goals. Without a port site to assemble the turbine components, the industry will not be able to develop in California.
(j)The draft strategic plan also notes that no port site in California can serve all the needs of the offshore wind industry. Instead, a coordinated multiport strategy will be needed and could require more than 16 large and 10 small port sites, including staging, integration, operations, and maintenance sites, to support offshore wind development over the next decade or more. These sites are required to be developed as soon as possible, and have an estimated cost between $11 billion and $12 billion.
(k)Without significant state, federal, and private investment, the state will risk not meeting the goal of building 5 gigawatts of offshore wind energy by 2030, and 25 gigawatts by 2045.
SEC. 2.Section 13101 of the Government Code is amended to read:13101.As used in this article, infrastructure means port infrastructure for offshore wind energy development and real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
SEC. 3.Section 13102 of the Government Code is amended to read:13102.(a)In conjunction with the Governors Budget submitted pursuant to Section 13337, the Governor shall submit annually a proposed five-year infrastructure plan to the Legislature. This plan shall cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governors Budget with which it is submitted.
(b)The infrastructure plan shall contain the following information for the five years that it covers:
(1)(A)Identification of new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies.
(B)Aggregate funding for transportation as identified in the four-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525.
(C)Infrastructure needs for Kindergarten through grade 12 public schools necessary to accommodate increased enrollment, class size reduction, and school modernization.
(D)The instructional and instructional support facilities needs for the University of California, the California State University, and the California Community Colleges.
(E)Construction, operation, and maintenance for facilities of the State Plan of Flood Control, support for infrastructure needs pursuant to Part 9 (commencing with Section 12980) of Division 6 of the Water Code, support for infrastructure needs pursuant to Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6 of the Water Code, and aggregate funding for the state share of nonfederal capital costs for flood control projects located outside of the Central Valley.
(F)(i)Beginning with fiscal year ____, the 202627 fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development.
(ii)The Governor shall, in consultation with the Department of Finance, the Office of Planning and Research, the Governors Office of Business and Economic Development, the State Energy Resources Conservation and Development Commission, the State Lands Commission, and the California Workforce Development Board, include in the assessment pursuant to clause (i) any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
(2)The estimated cost of providing the infrastructure identified in paragraph (1).
(3)A proposal for funding the infrastructure identified in paragraph (1) that includes all of the following:
(A)Criteria and priorities used to identify and select the infrastructure it proposes to fund, including criteria used to identify and select infrastructure that by January 1, 2005, shall be consistent with the state planning priorities specified pursuant to Section 65041.1 for infrastructure requested by state agencies pursuant to subparagraph (A) of paragraph (1).
(B)Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease revenue bonds, and installment purchases.
(C)An evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(D)(i)Recommended specific projects for funding or the recommended type and amount of infrastructure to be funded in order to meet programmatic objectives that shall be identified in the proposal.
(ii)Any capital outlay or local assistance appropriations intended to fund infrastructure included in the Governors Budget shall derive from, and be encompassed by, the funding proposal contained in the plan.
SEC. 4.Section 13103 of the Government Code is amended to read:13103.By January 1, 2005, if a state agency requests infrastructure pursuant to subparagraph (A) of paragraph (1) of subdivision (b) of Section 13102, that agency shall specify how that infrastructure is consistent with the state planning priorities specified pursuant to Section 65041.1. The Governor may also order any entity of state government to assist in preparation of the infrastructure plan.
SEC. 5.Section 65042 of the Government Code is amended to read:65042.Every officer, agency, department, or instrumentality of state government, including, but not limited to, all trustee agencies as defined in Section 21070 of the Public Resources Code, shall do all of the following:
(a)Cooperate in the preparation and maintenance of the State Environmental Goals and Policy Report.
(b)By January 1, 2005, ensure that their entitys functional plan is consistent with the state planning priorities specified pursuant to Section 65041.1 and annually demonstrate to the office, and to the Department of Finance when requesting infrastructure pursuant to paragraph (1) of subdivision (b) of Section 13102, how the plans are consistent with those priorities.
(c)Comply with any request for advice, assistance, information or other material.
The Legislature finds and declares all of the following:
(a)Under the California Infrastructure Planning Act (Chapter 606 of the Statutes of 1999), the Governor is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Existing law states the intent of the Legislature that this plan be updated annually and identify state infrastructure needs and set out priorities for funding. Under existing law, the plan need not identify specific infrastructure projects to be funded, but it shall be sufficiently detailed to provide a clear understanding of the type and amount of infrastructure to be funded and the programmatic objectives to be achieved by this funding. Under existing law, the infrastructure plan is required to contain, among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(b)Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
(c)The infrastructure plan is required to contain specified information for the five years that it covers, including infrastructure requested by state agencies, aggregate funding for transportation, infrastructure needs for public schools and instructional support facility needs for public higher education institutions, as provided, the estimated cost of providing this infrastructure, and a proposal for funding the infrastructure.
(d)The 100 Percent Clean Energy Act of 2018 enacted by Senate Bill 100 (Chapter 312 of the Statutes of 2018) amended the California Renewables Portfolio Standard Program in order to attain targets for total retail sales generation, and required that eligible renewable energy resources and zero-carbon resources supply 60 percent of all retail sales of electricity to California end-use customers by December 31, 2030, and supply 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045.
(e)The publication 2021 SB 100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment, prepared by the State Energy Resources Conservation and Development Commission (Energy Commission), the Public Utilities Commission, and the State Air Resources Board, includes a review of the policy of supplying 100 percent of retail sales and state loads with renewable and zero-carbon resources in California by 2045, assesses various pathways to achieve the policy, and provides an initial assessment of costs and benefits.
(f)Californias offshore waters are a prime location for new floating offshore wind energy development projects that will help the state meet its bold renewable energy targets. Under existing law, the Energy Commission was required to develop a strategic plan by June 30, 2023, in preparation for advancing the development of offshore wind off the coast of California. In the Energy Commissions report titled, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, preliminary findings of the report set planning goals of 2,000 to 5,000 megawatts of offshore wind by 2030, and 25,000 megawatts by 2045.
(g)On January 19, 2024, the Energy Commission submitted the draft Assembly Bill 525 Offshore Wind Strategic Plan to the Natural Resources Agency and the Legislature. The draft strategic plan discusses various aspects of offshore wind energy potential in California, including economic and workforce development benefits, transmission technology, transmission planning and interconnection, offshore wind permitting, potential impacts from offshore wind projects, identification of port space and infrastructure, and port infrastructure needs. Under existing law, the strategic plan is required to include a detailed assessment of the necessary investments in California seaports to support offshore wind energy activities, including construction, assembly, operations, and maintenance. The assessment is required to consider the potential availability of land and water acreage at each port, including competing and current uses, infrastructure feasibility, deep water access, bridge height restrictions, and the potential impact to natural and cultural resources, including coastal resources, fisheries, and impacts on Native American and Indigenous people.
(h)The strategic plan is also required to strive for compatibility with other harbor tenants and ocean users to ensure that the local benefits related to offshore wind energy construction complement other local industries when considering port retrofits, and it is required to emphasize and prioritize actions that will improve port infrastructure to support land-based work for the local workforce.
(i)A key finding from the draft strategic plan focuses on the necessary upgrades for port and waterfront infrastructure to accommodate the offshore wind industry in California, which will require specialized seaport and waterfront facilities to build, assemble, and service the wind turbines needed to meet the Assembly Bill 525 offshore wind planning goals. Without a port site to assemble the turbine components, the industry will not be able to develop in California.
(j)The draft strategic plan also notes that no port site in California can serve all the needs of the offshore wind industry. Instead, a coordinated multiport strategy will be needed and could require more than 16 large and 10 small port sites, including staging, integration, operations, and maintenance sites, to support offshore wind development over the next decade or more. These sites are required to be developed as soon as possible, and have an estimated cost between $11 billion and $12 billion.
(k)Without significant state, federal, and private investment, the state will risk not meeting the goal of building 5 gigawatts of offshore wind energy by 2030, and 25 gigawatts by 2045.
SEC. 2.Section 13101 of the Government Code is amended to read:13101.As used in this article, infrastructure means port infrastructure for offshore wind energy development and real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
SEC. 3.Section 13102 of the Government Code is amended to read:13102.(a)In conjunction with the Governors Budget submitted pursuant to Section 13337, the Governor shall submit annually a proposed five-year infrastructure plan to the Legislature. This plan shall cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governors Budget with which it is submitted.
(b)The infrastructure plan shall contain the following information for the five years that it covers:
(1)(A)Identification of new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies.
(B)Aggregate funding for transportation as identified in the four-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525.
(C)Infrastructure needs for Kindergarten through grade 12 public schools necessary to accommodate increased enrollment, class size reduction, and school modernization.
(D)The instructional and instructional support facilities needs for the University of California, the California State University, and the California Community Colleges.
(E)Construction, operation, and maintenance for facilities of the State Plan of Flood Control, support for infrastructure needs pursuant to Part 9 (commencing with Section 12980) of Division 6 of the Water Code, support for infrastructure needs pursuant to Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6 of the Water Code, and aggregate funding for the state share of nonfederal capital costs for flood control projects located outside of the Central Valley.
(F)(i)Beginning with fiscal year ____, an assessment of funding needs for port infrastructure for offshore wind energy development.
(ii)The Governor shall, in consultation with the Department of Finance, the Office of Planning and Research, the Governors Office of Business and Economic Development, the State Energy Resources Conservation and Development Commission, the State Lands Commission, and the California Workforce Development Board, include in the assessment pursuant to clause (i) any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
(2)The estimated cost of providing the infrastructure identified in paragraph (1).
(3)A proposal for funding the infrastructure identified in paragraph (1) that includes all of the following:
(A)Criteria and priorities used to identify and select the infrastructure it proposes to fund, including criteria used to identify and select infrastructure that by January 1, 2005, shall be consistent with the state planning priorities specified pursuant to Section 65041.1 for infrastructure requested by state agencies pursuant to subparagraph (A) of paragraph (1).
(B)Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease revenue bonds, and installment purchases.
(C)An evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(D)(i)Recommended specific projects for funding or the recommended type and amount of infrastructure to be funded in order to meet programmatic objectives that shall be identified in the proposal.
(ii)Any capital outlay or local assistance appropriations intended to fund infrastructure included in the Governors Budget shall derive from, and be encompassed by, the funding proposal contained in the plan.
SEC. 4.Chapter 14.5 (commencing with Section 25991.20) is added to Division 15 of the Public Resources Code, to read:14.5.Offshore Wind Generation Workforce Development25991.20.The commission and the California Workforce Development Board shall jointly determine the immediate and long-term workforce needs for growing offshore wind generation in this state. After that determination is made, the commission and the California Workforce Development Board shall do both of the following:(a)Develop targeted and equitable hiring standards. These standards shall do all of the following:(1)Understand and account for worker diversity gaps in the offshore wind generation industry.(2)Recruit entry-level and experienced workers.(3)Set local and tribal hiring standards.(4)Set equitable hiring standards.(5)Prioritize prevailing wage and unionized labor.(b)Upon an appropriation by the Legislature for this purpose, fund training and education centers that will grow the offshore wind generation workforce.SEC. 4.Section 13103 of the Government Code is amended to read:13103.By January 1, 2005, if a state agency requests infrastructure pursuant to subparagraph (A) of paragraph (1) of subdivision (a) (b) of Section 13102, that agency shall specify how that infrastructure is consistent with the state planning priorities specified pursuant to Section 65041.1. The Governor may also order any entity of state government to assist in preparation of the infrastructure plan.
SEC. 5.Section 65042 of the Government Code is amended to read:65042.Every officer, agency, department, or instrumentality of state government, including, but not limited to, all trustee agencies as defined in Section 21070 of the Public Resources Code, shall do all of the following:
(a)Cooperate in the preparation and maintenance of the State Environmental Goals and Policy Report.
(b)By January 1, 2005, ensure that their entitys functional plan is consistent with the state planning priorities specified pursuant to Section 65041.1 and annually demonstrate to the office, and to the Department of Finance when requesting infrastructure pursuant to paragraph (1) of subdivision (a) (b) of Section 13102, how the plans are consistent with those priorities.
(c)Comply with any request for advice, assistance, information or other material.
The Legislature finds and declares all of the following:
(a)Under the California Infrastructure Planning Act (Chapter 606 of the Statutes of 1999), the Governor is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governors Budget. Existing law states the intent of the Legislature that this plan be updated annually and identify state infrastructure needs and set out priorities for funding. Under existing law, the plan need not identify specific infrastructure projects to be funded, but it shall be sufficiently detailed to provide a clear understanding of the type and amount of infrastructure to be funded and the programmatic objectives to be achieved by this funding. Under existing law, the infrastructure plan is required to contain, among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(b)Under existing law, infrastructure means real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
(c)The infrastructure plan is required to contain specified information for the five years that it covers, including infrastructure requested by state agencies, aggregate funding for transportation, infrastructure needs for public schools and instructional support facility needs for public higher education institutions, as provided, the estimated cost of providing this infrastructure, and a proposal for funding the infrastructure.
(d)The 100 Percent Clean Energy Act of 2018 enacted by Senate Bill 100 (Chapter 312 of the Statutes of 2018) amended the California Renewables Portfolio Standard Program in order to attain targets for total retail sales generation, and required that eligible renewable energy resources and zero-carbon resources supply 60 percent of all retail sales of electricity to California end-use customers by December 31, 2030, and supply 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045.
(e)The publication 2021 SB 100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment, prepared by the State Energy Resources Conservation and Development Commission (Energy Commission), the Public Utilities Commission, and the State Air Resources Board, includes a review of the policy of supplying 100 percent of retail sales and state loads with renewable and zero-carbon resources in California by 2045, assesses various pathways to achieve the policy, and provides an initial assessment of costs and benefits.
(f)Californias offshore waters are a prime location for new floating offshore wind energy development projects that will help the state meet its bold renewable energy targets. Under existing law, the Energy Commission was required to develop a strategic plan by June 30, 2023, in preparation for advancing the development of offshore wind off the coast of California. In the Energy Commissions report titled, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, preliminary findings of the report set planning goals of 2,000 to 5,000 megawatts of offshore wind by 2030, and 25,000 megawatts by 2045.
(g)On January 19, 2024, the Energy Commission submitted the draft Assembly Bill 525 Offshore Wind Strategic Plan to the Natural Resources Agency and the Legislature. The draft strategic plan discusses various aspects of offshore wind energy potential in California, including economic and workforce development benefits, transmission technology, transmission planning and interconnection, offshore wind permitting, potential impacts from offshore wind projects, identification of port space and infrastructure, and port infrastructure needs. Under existing law, the strategic plan is required to include a detailed assessment of the necessary investments in California seaports to support offshore wind energy activities, including construction, assembly, operations, and maintenance. The assessment is required to consider the potential availability of land and water acreage at each port, including competing and current uses, infrastructure feasibility, deep water access, bridge height restrictions, and the potential impact to natural and cultural resources, including coastal resources, fisheries, and impacts on Native American and Indigenous people.
(h)The strategic plan is also required to strive for compatibility with other harbor tenants and ocean users to ensure that the local benefits related to offshore wind energy construction complement other local industries when considering port retrofits, and it is required to emphasize and prioritize actions that will improve port infrastructure to support land-based work for the local workforce.
(i)A key finding from the draft strategic plan focuses on the necessary upgrades for port and waterfront infrastructure to accommodate the offshore wind industry in California, which will require specialized seaport and waterfront facilities to build, assemble, and service the wind turbines needed to meet the Assembly Bill 525 offshore wind planning goals. Without a port site to assemble the turbine components, the industry will not be able to develop in California.
(j)The draft strategic plan also notes that no port site in California can serve all the needs of the offshore wind industry. Instead, a coordinated multiport strategy will be needed and could require more than 16 large and 10 small port sites, including staging, integration, operations, and maintenance sites, to support offshore wind development over the next decade or more. These sites are required to be developed as soon as possible, and have an estimated cost between $11 billion and $12 billion.
(k)Without significant state, federal, and private investment, the state will risk not meeting the goal of building 5 gigawatts of offshore wind energy by 2030, and 25 gigawatts by 2045.
SEC. 2.Section 13101 of the Government Code is amended to read:13101.As used in this article, infrastructure means port infrastructure for offshore wind energy development and real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way rights-of-way, and other forms of interest in property, roadways, and water conveyances.
SEC. 3.Section 13102 of the Government Code is amended to read:13102.(a)In conjunction with the Governors Budget submitted pursuant to Section 13337, the Governor shall submit annually a proposed five-year infrastructure plan to the Legislature. This plan shall cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governors Budget with which it is submitted.
The(b)The infrastructure plan shall contain the following information for the five years that it covers:
(a)( 1)(1)(A)Identification of new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies.
(2)(B)Aggregate funding for transportation as identified in the four-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525.
(3)(C)Infrastructure needs for Kindergarten through grade 12 public schools necessary to accommodate increased enrollment, class size reduction, and school modernization.
(4)(D)The instructional and instructional support facilities needs for the University of California, the California State University, and the California Community Colleges.
(5)(E)Construction, operation, and maintenance for facilities of the State Plan of Flood Control, support for infrastructure needs pursuant to Part 9 (commencing with Section 12980) of Division 6 of the Water Code, support for infrastructure needs pursuant to Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6 of the Water Code, and aggregate funding for the state share of nonfederal capital costs for flood control projects located outside of the Central Valley.
(F)(i)Beginning with fiscal year ____, an assessment of funding needs for port infrastructure for offshore wind energy development.
(ii)The Governor shall, in consultation with the Department of Finance, the Office of Planning and Research, the Governors Office of Business and Economic Development, the State Energy Resources Conservation and Development Commission, the State Lands Commission, and the California Workforce Development Board, include in the assessment pursuant to clause (i) any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
(b)(2)The estimated cost of providing the infrastructure identified in subdivision (a). paragraph (1).
(c)(3)A proposal for funding the infrastructure identified in subdivision (a), paragraph (1) that includes all of the following:
(1)(A)Criteria and priorities used to identify and select the infrastructure it does propose proposes to fund, including criteria used to identify and select infrastructure that by January 1, 2005, shall be consistent with the state planning priorities specified pursuant to Section 65041.1 for infrastructure requested by state agencies pursuant to subparagraph (A) of paragraph (1) of subdivision (a). (1).
(2)(B)Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease revenue bonds, and installment purchases.
(3)(C)An evaluation of the impact of the new state debt on the states existing overall debt position if the plan proposes the issuance of new state debt.
(4)( A)(D)(i)Recommended specific projects for funding or the recommended type and amount of infrastructure to be funded in order to meet programmatic objectives that shall be identified in the proposal.
(B)(ii)Any capital outlay or local assistance appropriations intended to fund infrastructure included in the Governors Budget shall derive from, and be encompassed by, the funding proposal contained in the plan.
SEC. 4.Chapter 14.5 (commencing with Section 25991.20) is added to Division 15 of the Public Resources Code, to read:14.5.Offshore Wind Generation Workforce Development25991.20.The commission and the California Workforce Development Board shall jointly determine the immediate and long-term workforce needs for growing offshore wind generation in this state. After that determination is made, the commission and the California Workforce Development Board shall do both of the following:
(a)Develop targeted and equitable hiring standards. These standards shall do all of the following:
(1)Understand and account for worker diversity gaps in the offshore wind generation industry.
(2)Recruit entry-level and experienced workers.
(3)Set local and tribal hiring standards.
(4)Set equitable hiring standards.
(5)Prioritize prevailing wage and unionized labor.
(b)Upon an appropriation by the Legislature for this purpose, fund training and education centers that will grow the offshore wind generation workforce.
SECTION 1.It is the intent of the Legislature to enact legislation that would address the findings and recommendations from the strategic plan for offshore wind energy developments developed pursuant to Section 25991 of the Public Resources Code.It is the intent of the Legislature to enact legislation that would address the findings and recommendations from the strategic plan for offshore wind energy developments developed pursuant to Section 25991 of the Public Resources Code.
|
Date
|
Status
|
|---|---|
| Aug 15, 2024 | In committee: Held under submission. |
| Aug 5, 2024 | In committee: Referred to APPR suspense file. |
| Jun 26, 2024 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 25, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (June 25). |
| Jun 18, 2024 | From committee: Do pass and re-refer to Com. on G.O. (Ayes 15. Noes 2.) (June 18). Re-referred to Com. on G.O. |
| Jun 5, 2024 | Referred to Coms. on E., U. & C. and G.O. |
| May 23, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 22, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 5521.) |
| May 20, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Do pass. (Ayes 15. Noes 0.) (May 16). |
| May 1, 2024 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 9, 2024 | Re-referred to Com. on APPR. |
| Apr 8, 2024 | Read second time and amended. |
| Apr 4, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (April 3). |
| Apr 2, 2024 | Re-referred to Com. on U. & E. |
| Apr 1, 2024 | Re-referred to Com. on U. & E. |
| Apr 1, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Mar 21, 2024 | Referred to Coms. on U. & E. and L. & E. |
| Mar 21, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Feb 17, 2024 | From printer. May be heard in committee March 18. |
| Feb 16, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 5, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2024 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
Passed |
|
| Jun 18, 2024 | Do pass, but first be re-referred to the Committee on [Governmental Organization] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
|
| May 22, 2024 | AB 3006 Zbur Assembly Third Reading | Assembly Floor |
Passed |
|
| May 16, 2024 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 3, 2024 | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Utilities and Energy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Clean Power California | * Support | Jun 18, 2024 |
| California Association Of Port Authorities | ** Support | |
| California Coalition of Utility Employees | * Support | Jun 18, 2024 |
| California Wind Energy Association | * Support | Jun 18, 2024 |
| Clean Power Campaign | * Support | Jun 18, 2024 |
| Offshore Wind California | * Support | Jun 25, 2024 |
| Pacific Merchant Shipping Association | * Support | Jun 25, 2024 |
| Port of Long Beach | * Support | Jun 25, 2024 |
| State Building Trades | * Support | Jun 25, 2024 |
SENATE COMMITTEE ON
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
AB 3006 (Zbur) - Energy: offshore wind generation
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would amend the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for offshore wind (OSW) energy development, and would require the Governor, in consultation with specified entities, to assess related federal, state, and local funding opportunities.
Fiscal Impact:
- The California Energy Commission (CEC) estimates ongoing costs of $225,000 (Energy Resources Program Account) for one position to support consultation efforts.
Background:
SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100 percent of retail sales and electricity procured in the state by 2045. This policy was recently updated under SB 1020 (Laird, Chapter 361, Statutes of 2022) which accelerated the requirement on state agencies to 100 percent by 2035, and established interim targets to meet the 100 percent goal.
As of 2019, almost six GW of installed wind capacity was generating in the state, the fifth largest amount of wind capacity in the United States, with all of it generated from land-based systems. Although California has no commercial OSW generation, the National Renewable Energy Laboratory has identified 112 GW of OSW technical potential for California.
AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 MW of OSW energy capacity by 2030, and 25,000 MW by 2045. In January 2024, the CEC released a long-awaited Draft Strategic Plan for Offshore Wind Development in three volumes, and is currently taking public comment on this plan. Among its contents, the strategic plan discusses the impacts and strategies to address those impacts in California’s underserved communities.
Some of the suggestions for addressing impacts in the AB 525 Report include conducting meaningful consultation with tribal representatives, supporting the establishment of strong, legally binding tribal community benefits agreements, continuing to study impacts on tribes including exploring public safety measures to reduce violent crime and sexual and gender-based violence against California tribes and other vulnerable populations, and collaborating with tribes on avoidance, mitigation, and co-management opportunities.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support OSW development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources.
Proposed Law:
This bill would amend the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for OSW energy development, and would require the Governor to assess related funding opportunities.
Related Legislation:
AB 3 (Zbur, Chapter 314, Statutes of 2023) required, among its provisions, the CEC to develop a second-phase plan and strategy for seaport readiness, by December 31, 2026, that builds upon the recommendations and alternatives in the strategic plan for OSW energy developments that is due to the Legislature by June 30, 2023 (but has not been issued).
AB 525 (Chiu, Chapter 231, Statutes of 2022) required the CEC to establish, by June 1, 2022, planning goals, as specified, for the years 2030 and 2045 from electricity generated by OSW. The bill also requires the CEC, in coordination with specified agencies, to develop a strategic plan, as specified, for OSW developments and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.
AB 1473 (Hertzberg, Chapter 606, Statutes of 1999) required the Governor to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget. The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process.
-- END --
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2023 - 2024 Regular
Bill No: AB Hearing Date: 6/25/2024
Author: | Zbur | ||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill requires the Governor’s annual Five-Year Infrastructure Plan to include an assessment of funding needs for port infrastructure for offshore wind energy development, as specified, and expands the definition of “infrastructure” to include port infrastructure for offshore wind energy development, as specified.
ANALYSIS:
Existing law:
- Requires the State Energy Resources Conservation and Development Commission (Energy Commission), in coordination with specified agencies, to develop a strategic plan for offshore wind energy developments installed off California’s coast in federal waters, as specified.
- Requires the Energy Commission, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating offshore wind energy development activities, as specified.
- The California Infrastructure Planning Act requires the Governor to annually submit a Five-Year Infrastructure Plan to the Legislature in conjunction with the Governor’s Budget.
- Defines “infrastructure” to mean real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances.
This bill:
- Requires, beginning with the 2026-27 fiscal year (FY), the Governor’s annually proposed Five-Year Infrastructure Plan to include an assessment of funding needs for port infrastructure for offshore wind energy development.
- Requires the Governor, in consultation with the Department of Finance (DOF), the Office of Planning and Research (OPR), the Governor’s Office of Business and Economic Development (GO-Biz), the Energy Commission, the State Lands Commission (SLC), and the California Workforce Development Board (CWDB), to include in the assessment any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
- Expands the definition of “infrastructure” to include port infrastructure for offshore wind energy development.
- Includes related legislative findings and declarations.
Background
Author Statement. According to the author’s office, “AB 3006 requires the Governor to include an assessment of funding for offshore wind port infrastructure in the Five-Year Infrastructure Plan to ensure the state meets its ambitious clean energy goals and the California Energy Commission’s AB 525 seaport plan. Offshore wind brings many economic and environmental opportunities. However, the development of the industry faces unique challenges that require thorough planning and timeline accountability. Given the immense scale of offshore wind energy and prevailing budgetary constraints, a comprehensive, long-term analysis and financial planning are crucial to be able to meet our offshore wind development and clean energy goals.”
California’s Ambitious Clean Energy Goals. SB 100 (De León, Chapter 312, Statutes of 2018) set California’s bold policy for clean energy by mandating that 100 percent of retail electricity sales and all electricity procured in the state be from renewable and zero-carbon resources by 2045. This goal was updated by SB 1020 (Laird, Chapter 361, Statutes of 2022), which accelerated the target for state agencies to achieve 100 percent renewable energy by 2035, and established interim targets to meet the statewide goal.
In March 2021, the Energy Commission, the California Public Utilities Commission (CPUC), and the California Air Resources Board (CARB) released the first SB 100 mandated report, and offshore wind energy was modelled to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing offshore wind energy online given the current California Independent System Operator (CAISO) interconnection queue and resource development needs of offshore wind energy. The report notes, “[t]he preliminary findings are intended to inform state planning and are not intended as a comprehensive nor prescriptive roadmap to 2045… future work will delve deeper into critical topics such as system reliability and land use and further address energy equity and workforce needs.” The next report is scheduled for release in 2025, with subsequent reports every four years.
Offshore Wind Energy Technologies. Offshore wind technologies are categorized into fixed and floating designs. Fixed turbines are anchored to the seabed using structures like monopoles, tripods, or jackets, which limit their movement due to wave or wind pressures. These are effective up to depths of 160-200 feet. Beyond this depth, floating platforms become necessary. Floating turbines are moored with cables and anchored substructures, allowing them to operate in depths greater than 200 feet, making them suitable for California’s deep-water sites.
Although California currently lacks offshore wind generation, the National Renewable Energy Laboratory has identified a technical potential of 112 GW for offshore wind in the state. Notably, about 96 percent of this potential is situated in waters deeper than 200 feet, where the established fixed-bottom turbine technology is not viable. California’s steep continental shelf and high wind speeds make floating turbines the most feasible option. These turbines use mooring cables and an anchored substructure underwater to stabilize the platform that holds the wind turbine above water. Depending on the type of floating structure, some assembly of these turbines might need to occur offshore, requiring naval cranes, vessels for stabilization, and specific port infrastructure and water depths.
California Infrastructure Planning Act. The Governor is required to submit a Five-Year Infrastructure Plan to the Legislature annually, in conjunction with the Governor’s Budget. This plan is designed to complement the existing state budget process for allocating funds to infrastructure projects, providing a detailed guideline for the types of projects to be funded. The Five-Year Infrastructure Plan includes, among other things, information on support for infrastructure needs and an assessment of the impact of new state debt on the state’s overall debt position if new state debt is proposed.
The 2022-23 budget submission included historic investments, with California expected to receive approximately $14 billion in additional funding from the federal Infrastructure Investment Act. The Administration also proposed clean energy project investments in the 2022-23 budget to enhance the state’s resilience to climate change. This included $45 million from the General Fund, approved by the Legislature, allowing the Energy Commission to support activities advancing the development of offshore wind energy in federal waters off California.
Offshore Wind Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) mandates that the Energy Commission, in collaboration with federal, state, and local agencies, California Native American tribes, and various stakeholders, develop a strategic plan for offshore wind energy development in federal waters off the California coast. In August 2022, the Energy Commission established a planning goal to achieve two to five GW of offshore wind energy capacity by 2030, and 25 GW by 2045.
In January 2024, the Energy Commission published a Draft Strategic Plan for Offshore Wind Development, consisting of three volumes, and is currently soliciting public comments on this plan. Chapter six of Volume II includes an evaluation of the necessary investments at California’s ports to facilitate the development of offshore wind energy.
Infrastructure for Offshore Wind Energy Development. This bill requires the Governor, in consultation with the DOF, OPR, GO-Biz, Energy Commission, SLC, and CWDB, to include an assessment of funding needs for port infrastructure for offshore wind energy development beginning with the 2026-27 FY. The assessment will include any federal, state, and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
Additionally, this bill expands the definition of “infrastructure” to include port infrastructure for offshore wind energy development.
Senate Energy, Utilities & Communications Committee Amendments. The Senate Energy, Utilities and Communications Committee recommended, and the author agreed to, technical amendments during that committee’s hearing. However, due to timing constraints, those amendments will be accepted in this committee. The amendments are as follows:
Amendment #1: Section 1. (j) The draft strategic plan also notes that no port site in California can serve all the needs of the offshore wind industry. Instead, a coordinated multiport strategy will be needed and could require more than 16 large and 10 small port sites, including staging, integration, operations, and maintenance sites, to support offshore wind development over the next decade or more. These sites are required to be developed as soon as possible, and have an estimated cost between $11 billion and of at least $12 billion.
Amendment #2: Section 3. 13102.(b)(3)(B) Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease revenue lease-revenue bonds, and installment purchases.
Amendment #3: Section 5. 65042.(c) Comply with any request for advice, assistance, information information, or other material.
Prior/Related Legislation
AB 2208 (Zbur, 2024) would have enacted the California Ports Development and Offshore Wind Infrastructure Bond Act of 2024, to authorize $1 billion in general obligation bonds for offshore wind energy. (Never heard in the Assembly Natural Resources Committee)
SB 1020 (Laird, Chapter 361, Statutes of 2022) establishes interim targets to the statewide 100 percent clean energy policy, as specified, and requires state agencies to accelerate their 100 percent clean energy policy goals by 10 years.
AB 525 (Chapter 231, Statutes of 2021) requires the Energy Commission to establish 2030 and 2045 planning goals, as specified, for electricity generated by offshore wind. Additionally, requires the Energy Commission, in coordination with specified agencies, to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.
SB 100 (De León, Chapter 312, Statutes of 2017) establishes the 100 Percent Clean Energy Act of 2017 which increases the Renewable Portfolio Standard (RPS) requirements from 50 percent by 2030 to 60 percent, and creates the policy of planning to meet all of the state’s retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 1, 2045, for a total of 100 percent clean energy.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
Offshore Wind California (Source)
American Clean Power – California
California Association of Port Authorities
California Wind Energy Association
Climate Reality Project San Fernando Valley Chapter
Climate Reality Project, Los Angeles Chapter
Pacific Merchant Shipping Association
Port of Long Beach
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: In support of the bill, Offshore Wind California writes that, “the state does not currently have the port capacity needed to support multiple commercial-scale offshore wind farms. As noted in the draft AB 525 Strategic Plan, ‘the state will need to strategically develop a port network that can efficiently, cost effectively, and reliable support staging and integration, manufacturing and fabrication, and operation and maintenance activities along the California Coast. The Port Plan suggests that the state’s collaborative port development strategy outline a funding plan to subsidize the various port upgrades needed, along with identification of funding sources at the state, federal, and local level.’ To that end, significant port upgrades and funding are needed to meet the state’s offshore wind planning goal with an estimated cost of at least $12 billion dedicated for port infrastructure upgrades to support a multi-port strategy.”
Further, “[w]hile private sector funding will be essential, the state should prepare a long-term strategy of how to fund the necessary upgrades and should consider the use of multiple general obligation bonds at different stages throughout the years. AB 3006 is designed to complement these efforts by requiring the Governor, in consultation with key state agencies, to include an assessment of funding needs for offshore wind port infrastructure and integrating the resource into the state’s existing Five-Year Infrastructure Planning Process. The bill also includes offshore wind within the definition of ‘infrastructure’ for the purposes of implementing the Five-Year Infrastructure Planning Process.”
DUAL REFERRAL: Senate Energy, Utilities & Communications Committee (15-2) & Senate Governmental Organization Committee
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Steven Bradford, Chair
2023 - 2024 Regular
Bill No: Hearing Date: 6/18/2024
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill amends the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for offshore wind (OSW) energy development.
ANALYSIS:
Existing law:
- Requires the State Energy Resources Conservation and Development Commission (California Energy Commission (CEC)), in coordination with specified agencies, to develop a strategic plan for OSW energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023, as specified. (Public Resources Code §25991)
- Requires the CEC, in coordination with relevant state and local agencies, to develop a plan to improve waterfront facilities that could support a range of floating OSW energy development activities, as specified. (Public Resources Code §25991.3)
- Requires the Governor, the California Infrastructure Planning Act, to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget. (Government Code §13102)
- Defines “infrastructure” to mean real property, including land and improvements to the land, structures and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances. (Government Code §13101)
This bill:
- Amends the definition of “infrastructure” described above to include port infrastructure for OSW energy development, and would require the five-year infrastructure plan to include, beginning in the 2026–27 fiscal year, an assessment of funding needs for port infrastructure for OSW energy development.
- Requires the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for OSW energy development.
Background
California’s clean energy goals. SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100 percent of retail sales and electricity procured in the state by 2045. This policy was recently updated under SB 1020 (Laird, Chapter 361, Statutes of 2022) which accelerated the requirement on state agencies to 100 percent by 2035, and established interim targets to meet the 100 percent goal.
SB 100’s Joint Agency Report. SB 100 established a target for renewable and zero-carbon resources to supply 100 percent of retail electricity sales by 2045 and includes a requirement for a Joint Agency Report as a first step to evaluate the challenges and opportunities in implementing SB 100. OSW was included as part of the core scenario in the 2021 SB 100 Joint Agency report. The OSW system availability was limited to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing OSW online, given the current California Independent System Operator interconnection queue and resource development needs of OSW, with costs for the different zones estimated between $69 and $82 per megawatt hour (MWh) for 2030. Given these input assumptions, nearly all 10 GW of OSW was selected when made available in the model, but this selection only occurred after 2035, regardless of the scenario, and the full 10 GW was selected only in 2045. OSW energy generation is projected to be an important component of the state’s efforts to decarbonize energy generation and to achieve carbon neutrality by 2045, particularly as OSW can be a more stable and complementary resource to help integrate with variable renewable energy resources. The report notes “The preliminary findings [in the report] are intended to inform state planning and are not intended as a comprehensive nor prescriptive roadmap to 2045… future work will delve deeper into critical topics such as system reliability and land use and further address energy equity and workforce needs.” The next joint report will be released in 2025, and one every four years later.
OSW potential. As of 2019, almost six GW of installed wind capacity was generating in the state, the fifth largest amount of wind capacity in the United States, with all of it generated from land-based systems. Although California has no commercial OSW generation, the National Renewable Energy Laboratory has identified 112 GW of OSW technical potential for California. However, approximately 96 percent of this potential is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology is not technically feasible. Wind turbines are composed of: rotating turbine blades, the wind turbine tower or mast, and the nacelle (the ‘head’ of the wind turbine mounted on top of the support tower). Floating turbines employ mooring (cabling) and an anchored substructure underwater which steadies a platform holding the wind turbine above water. The use of cabling to anchor the turbine allows floating platforms to operate at depths between 60 and 1,300 meters.
Off the coast of California, a steep continental shelf and increased wind speeds combine to make floating turbines the primary technically feasible option. Depending on the type of floating structure, some assembly of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths. In contrast, most of the development of OSW globally has occurred via fixed turbine technologies where the turbines are anchored to the seabed through a solid foundation. Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.
California Infrastructure Planning Act. The Governor of California is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget, pursuant to Government Code §13102. The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process. This infrastructure plan contains among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the state’s existing overall debt position if the plan proposes the issuance of new state debt.
2022 Five-Year Infrastructure Plan. The plan submitted as part of the 2022-2023 budget witnessed historic investments. California was expected to receive about $14 billion of additional funding from the federal Infrastructure Investment Act. The Administration also proposed investments for clean energy projects in the 2022-23 budget that would make the state more resilient to climate change. This included $45 million from the General Fund that was ultimately approved by the Legislature which allows the CEC to fund activities that advance the development of OSW energy in federal waters off California. The CEC has yet to disburse this funding.
OSW Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 MW of OSW energy capacity by 2030, and 25,000 MW by 2045. In January 2024, the CEC released a long-awaited Draft Strategic Plan for Offshore Wind Development in three volumes, and is currently taking public comment on this plan. The draft plan includes, in Chapter 6 of Volume II, an assessment of the investments necessary at California’s ports to enable the development of OSW energy.
Comments
Need for this bill. According to the author, “AB 3006 requires the Governor to include an assessment of funding for offshore wind port infrastructure in the Five-Year Infrastructure Plan to ensure the state meets its ambitious clean energy goals and the California Energy Commission’s AB 525 seaport plan. Offshore wind brings many economic and environmental opportunities. However, the development of the industry faces unique challenges that require thorough planning and timeline accountability. Given the immense scale of offshore wind energy and prevailing budgetary constraints, a comprehensive, long-term analysis and financial planning are crucial to be able to meet our offshore wind development and clean energy goals.”
OSW planning in California. The CEC has set a target of building up to five GW of OSW energy capacity by 2030 as part of California’s plan to meet its clean energy and climate goals. Meeting this goal will require long-term strategic planning and investments. Given the current state budget deficit, it is important for the California to create opportunities to leverage federal and private funding for OSW port infrastructure. Such efforts can complement the state’s efforts and all may be well-suited to be included within the required five-year infrastructure plan required of the Governor.
Dual Referral. Should this bill be approved by this committee, it will be re-referred to the Senate Committee on Governmental Organization.
Prior/Related Legislation
AB 3 (Zbur, Chapter 314, Statutes of 2023) required, among its provisions, the CEC to develop a second-phase plan and strategy for seaport readiness, by December 31, 2026, that builds upon the recommendations and alternatives in the strategic plan for OSW energy developments that is due to the Legislature by June 30, 2023 (but has not been issued).
AB 525 (Chiu, Chapter 231, Statutes of 2022) required the CEC to establish, by June 1, 2022, planning goals, as specified, for the years 2030 and 2045 from electricity generated by OSW. The bill also requires the CEC, in coordination with specified agencies, to develop a strategic plan, as specified, for OSW developments and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.
AB 1473 (Hertzberg, Chapter 606, Statutes of 1999) required the Governor to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget. The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
Offshore Wind California, Sponsor
American Clean Power - California
California Association of Port Authorities
California Wind Energy Association
Pacific Merchant Shipping Association
Port of Long Beach
The Climate Reality Project, Los Angeles Chapter
The Climate Reality Project, San Fernando Valley Chapter
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: The sponsors of this bill, Offshore Wind California, state:
Unfortunately, the state does not currently have the port capacity needed to support multiple commercial-scale offshore wind farms. As noted in the draft AB 525 Strategic Plan, “the state will need to strategically develop a port network that can efficiently, cost effectively, and reliably support staging and integration, manufacturing and fabrication, and operation and maintenance activities along the California Coast. The 1[st] SB 100 Joint Agency Report – Charting a Path to 100% Clean Energy Future, March 2021 2 Port Plan suggests that the state’s collaborative port development strategy outline a funding plan to subsidize the various port upgrades needed, along with identification of funding sources at the state, federal, and local level.” …While private sector funding will be essential, the state should prepare a long-term strategy of how to fund the necessary upgrades and should consider the use of multiple general obligation bonds at different stages throughout the years. AB 3006 is designed to complement these efforts by requiring the Governor, in consultation with key state agencies, to include an assessment of funding needs for offshore wind port infrastructure and integrating the resource into the state’s existing Five-Year Infrastructure Planning Process. The bill also includes offshore wind within the definition of “infrastructure” for the purposes of implementing the Five-Year Infrastructure Planning Process.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 3006
Author:(Zbur)
As Amended Ver:April 8, 2024
Majority vote
SUMMARY
Requires the Governor's annual five-year infrastructure plan include an assessment of funding needs for port infrastructure for offshore wind energy development.
Major Provisions
- Directs the Governor, in consultation with the Department of Finance, the Office of Planning and Research (OPR), the Governor's Office of Business and Economic Development (GO-Biz), the State Energy Resources Conservation and Development Commission (California Energy Commission), the State Lands Commission and the California Workforce Development Board, include in the infrastructure assessment any federal, state and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
- Modifies an existing statutory definition of "infrastructure" to include port infrastructure for offshore wind energy development.
COMMENTS
SB 100's Joint Agency Report. SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100% of retail sales and electricity procured in the state by 2045. In March 2021, the California Energy Commission (CEC), California Public Utilities Commission (CPUC), and California Air Resources Board (CARB) released the first SB 100 report, and offshore wind energy was modelled to 10 gigawatts (GW). The model was given an input assumption of 2030 as the first available year for bringing offshore wind energy online.
California Infrastructure Planning Act. The Governor of California is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor's Budget. The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process.
2022 Five-Year Infrastructure Plan. The plan submitted as part of the 2022-2023 budget witnessed historic investments. California was expected to receive about $14 billion of additional funding from the federal Infrastructure Investment Act. The Administration also proposed investments for clean energy projects in the 2022-23 budget that would make the state more resilient to climate change. This included $45 million from the General Fund to fund activities that advance the development of offshore wind energy in federal waters off California. The CEC has yet to disburse this funding.
Offshore Wind Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for offshore wind energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2-5 GWs of offshore wind energy capacity by 2030, and 25 GWs by 2045. In January 2024, the CEC released a Draft Strategic Plan for Offshore Wind Development in three volumes, and has taken public comment on this plan. The draft plan includes an assessment of the investments necessary at California's ports to enable the development of offshore wind energy.
According to the Author
According to the author, "AB 3006 requires the Governor to include an assessment of funding for offshore wind port infrastructure in the Five-Year Infrastructure Plan to ensure the state meets its ambitious clean energy goals and the California Energy Commission's AB 525 seaport plan. Offshore wind brings many economic and environmental opportunities. However, the development of the industry faces unique challenges that require thorough planning and timeline accountability.
Given the immense scale of offshore wind energy and prevailing budgetary constraints, a comprehensive, long-term analysis and financial planning are crucial to be able to meet our offshore wind development and clean energy goals."
Arguments in Support
This bill is supported by Offshore Wind California, among others, which assert, "We firmly believe offshore wind can help California achieve its 100% renewable and zero-carbon energy goals, as well as the electrification of other sectors, as noted in the 2021 SB 100 Joint Agency Report1. At the same time, we recognize there are ongoing concerns about the state's grid reliability and energy affordability challenges. Notwithstanding the challenges of building needed transmission lines, we must act early and move expeditiously to address the offshore wind port infrastructure constraints that currently exist if we are going to make this resource a reality in California."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee, the annual costs of the assessment of funding needs for port infrastructure will range from the high hundreds of thousands of dollars to approximately $10 million.
VOTES
ASM UTILITIES AND ENERGY: 16-0-0
YES: Petrie-Norris, Jim Patterson, Bauer-Kahan, Calderon, Chen, Connolly, Friedman, Holden, Joe Patterson, Reyes, Santiago, Schiavo, Ting, Wallis, Wood, Zbur
ASM APPROPRIATIONS: 15-0-0
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua
UPDATED
VERSION: April 8, 2024
CONSULTANT: Lina V. Malova / U. & E. / (916) 319-2083 FN: 0003257
Date of Hearing: May 1, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 3006
Author:(Zbur) – As Amended Ver:April 8, 2024
Policy Committee: | Utilities and Energy | Vote: | 16 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the Governor’s annual five-year infrastructure plan include an assessment of funding needs for port infrastructure for offshore wind energy development.
Specifically, this bill requires the five-year infrastructure plan, which statute requires the Governor submit in conjunction with the annual Governor’s Budget proposal, include an assessment of funding needs for port infrastructure for offshore wind energy development. The bill directs the Governor, in consultation with the Department of Finance, the Office of Planning and Research (OPR), the Governor’s Office of Business and Economic Development (GO-Biz), the State Energy Resources Conservation and Development Commission (Energy Commission), the State Lands Commission and the California Workforce Development Board, include in the infrastructure assessment any federal, state and local funding opportunities, including general obligation bonds and funding opportunities from the private sector, that can help build port infrastructure for offshore wind energy development.
The bill also modifies an existing statutory definition of “infrastructure” to include port infrastructure for offshore wind energy development.
FISCAL EFFECT:
Annual costs to include an assessment of funding needs for port infrastructure for offshore wind development will range from the high hundreds of thousands of dollars to approximately $10 million.
The Department of Finance provided the following estimate of annual costs for various state agencies likely to be involved in development of the assessment:
- Governor’s Office of Business and Economic Development (Go-Biz)—$9 million (General Fund).
- Energy Commission—$225,000 (Energy Resources Programs Account (ERPA).
- State Lands Commission—$50,000 (General Fund).
- Workforce Development Board—Minor costs.
- Department of Finance—minor costs.
The Department of Finance stated Go-Biz’s costs assume Go-Biz leads the assessment.
According to the Legislative Analyst’s Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years.
Similarly, according to the Legislative Analyst’s Office, ERPA is in a structural deficit, with its ongoing revenues failing to keep pace with its increasing expenditures, and the Governor’s administration estimates these ERPA balances will be exhausted by fiscal year 2027‑28.
COMMENTS:
- Purpose. The author intends this bill to foster the state’s planning for use of offshore wind resources to produce electricity. According to the author:
Offshore wind brings many economic and environmental opportunities. However, the development of the industry faces unique challenges that require thorough planning and timeline accountability. Given the immense scale of offshore wind energy and prevailing budgetary constraints, a comprehensive, long-term analysis and financial planning are crucial to be able to meet our offshore wind development and clean energy goals.”
- Background.
California Clean Energy Goals and Offshore Wind. Achievement of the state’s clean energy goals will require significant investment in and development of resources that generate electricity from wind, as well as the infrastructure that supports those resources. California has abundant offshore wind resources, though there is no electricity generated from offshore wind resources in California today. Nonetheless, there is reason to believe the state’s future energy mix may include off-shore wind resources.
The 100 Percent Clean Energy Act of 2018 (SB 100 (De León), Chapter 312, Statutes of 2018) established a target for renewable and zero-carbon resources to supply 100% of retail sales of electricity by 2045. Pursuant to the act, the state’s energy agencies released the “2021 Senate Bill 100 Joint Agency Report,” which the agencies describe as a “first step in an iterative and ongoing effort to assess barriers and opportunities to implementing the 100 percent clean electricity policy” to “provide directional insights into what a 2045 portfolio of renewable and zero-carbon resources may look like, as well as the associated costs.” The report noted the abundant wind energy resources available in the deep waters off the California coast. The modeling behind the report included a scenario that added 145 megawatts of new resources to California’s energy mix, including 10 megawatts of offshore wind.
The Governor’s Five-year Infrastructure Plan. State law requires the Governor to submit a five-year infrastructure plan along with the annual Governor’s budget proposal. The plan is to include, among other items:
- Identification of new, rehabilitated, modernized, improved or renovated infrastructure requested by state agencies.
- Aggregate funding for transportation as identified in the four-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525.
- Infrastructure needs for Kindergarten through grade 12 public schools necessary to accommodate increased enrollment, class size reduction and school modernization.
- The instructional and instructional support facilities needs for the University of California, the California State University and the California Community Colleges.
- Construction, operation and maintenance for facilities of the State Plan of Flood Control, support for infrastructure needs and aggregate funding for the state share of nonfederal capital costs for flood control projects located outside of the Central Valley.
- The estimated cost of providing the infrastructure described above.
- A proposal for funding the infrastructure.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: April 3, 2024
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Cottie Petrie-Norris, Chair
ABPCA Bill Id:AB 3006 (
Author:Zbur) – As Amended Ver:April 1, 2024
SUBJECT: Energy: offshore wind generation
SUMMARY: Amends the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for offshore wind energy development.
Specifically, this bill:
- Requires the annual California infrastructure plan to include, beginning in an unspecified fiscal year, and an assessment of funding needs for port infrastructure for offshore wind energy development.
- Requires the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.
EXISTING LAW:
- Establishes the policy that all of the state's retail electricity be supplied with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100 percent clean energy. Requires the CPUC, in consultation with the CEC, CARB, and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100 percent clean energy policy, and every four years thereafter. (Public Utilities Code § 454.53)
- Defines “infrastructure" real property, including land and improvements to the land, structures, and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances. (Government Code § 13101)
- Requires the Governor to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget. The plan is intended to complement the existing state budget process by providing a comprehensive guideline for the types of projects to be funded through that process. (Government Code § 13102)
- Requires the infrastructure plan to contain, among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the state’s existing overall debt position if the plan proposes the issuance of new state debt. (Government Code § 13102 (c) (2))
FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Committee on Appropriations for its review.
BACKGROUND:
California’s Ambitious Goals & SB 100’s Joint Agency Report. SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100% of retail sales and electricity procured in the state by 2045.[1] This policy was recently updated under SB 1020 (Laird, Chapter 361, Statutes of 2022) which accelerated the requirement on state agencies to 100% by 2035, and established interim targets to meet the economy-wide 100% goal.
In March 2021, the California Energy Commission (CEC), California Public Utilities Commission (CPUC), and California Air Resources Board (CARB) released the first SB 100 report, and offshore wind energy was modelled to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing offshore wind energy online given the current California Independent System Operator (CAISO) interconnection queue and resource development needs of OWE.[2] The report notes “The preliminary findings [in the report] are intended to inform state planning and are not intended as a comprehensive nor prescriptive roadmap to 2045… future work will delve deeper into critical topics such as system reliability and land use and further address energy equity and workforce needs.”[3] The next joint report will be released in 2025, and one every four years later.
Offshore Wind Technologies. Offshore wind technology designs fall into two main categories: fixed and floating. Most fixed turbines are anchored to the seabed through a solid monopile, tripod, or jacket.[4] These designs prevent machines from moving significantly in response to wave or wind pressures. Fixed foundations typically have a maximum usable water depth of 50 meters to 60 meters; beyond this depth, fixed wind designs are not economically or technically feasible. Floating platforms unlock offshore wind access in ocean waters with depths greater than 60 meters.[5]
Offshore Wind in California. Although California has no offshore wind generation currently, the National Renewable Energy Laboratory has identified 112 GW[6] of offshore wind technical potential[7] for California. However, approximately 96 percent of this potential is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology is not technically feasible.[8] Off the coast of California, a steep continental shelf and increased wind speeds combine to make floating turbines the primary technically feasible option. Floating turbines employ mooring (cabling) and an anchored substructure underwater which steadies a platform holding the wind turbine above water. The use of cabling to anchor the turbine allows floating platforms to operate at depths between 60 and 1,300 meters.[9] Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.
California Infrastructure Planning Act. The Governor of California is required to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget.[10] The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process. This infrastructure plan contains among other things, information on support for infrastructure needs and an evaluation of the impact of the new state debt on the state’s existing overall debt position if the plan proposes the issuance of new state debt.[11]
2022 Five-Year Infrastructure Plan. The plan submitted as part of the 2022-2023 budget witnessed historic investments. California was expected to receive about $14 billion of additional funding from the federal Infrastructure Investment Act. The Administration also proposed investments for clean energy projects in the 2022-23 budget that would make the state more resilient to climate change. This included $45 million from the General Fund that was ultimately approved by the Legislature which allows the California Energy Commission (CEC) to fund activities that advance the development of offshore wind energy in federal waters off California. The CEC has yet to disburse this funding.
Offshore wind Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for offshore wind energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 megawatts of offshore wind energy capacity by 2030, and 25,000 megawatts by 2045.[12] In January 2024, the CEC released a Draft Strategic Plan for Offshore Wind Development in three volumes, and is currently taking public comment on this plan.[13] The draft plan includes, in Chapter 6 of Volume II, an assessment of the investments necessary at California’s ports to enable the development of offshore wind energy.
COMMENTS:
- Author’s statement. According to the author, “AB 3006 requires the Governor to include an assessment of funding for offshore wind port infrastructure in the Five-Year Infrastructure Plan to ensure the state meets its ambitious clean energy goals and the California Energy Commission’s AB 525 seaport plan. Offshore wind brings many economic and environmental opportunities. However, the development of the industry faces unique challenges that require thorough planning and timeline accountability. Given the immense scale of offshore wind energy and prevailing budgetary constraints, a comprehensive, long-term analysis and financial planning are crucial to be able to meet our offshore wind development and clean energy goals.”
- Offshore wind planning in California. The CEC has set a target of building up to 5 GW of offshore wind energy capacity by 2030 as part of California’s plan to meet its clean energy and climate goals. Meeting this goal will require long-term strategic planning and investments. Given the current budget deficit, it is important for the State to create opportunities to leverage federal funding for offshore wind port infrastructure.
- When to begin? This bill would amend the definition of “infrastructure” to include port infrastructure for offshore wind energy development and would require the 5-year infrastructure plan to include, beginning in an unspecified fiscal year, an assessment of funding needs for port infrastructure for offshore wind energy development. However, this bill does not currently specify the year by which the definition of infrastructure be included in the 5-year infrastructure plan. As such, the author and committee may wish to specify that beginning with the 2026-2027 fiscal year, port infrastructure shall be included in the 5-year infrastructure plan submitted in conjunction with the Governor’s annual budget proposal.
- Prior Legislation.
AB 3 (Zbur) requires the CEC to prepare a report that identifies potential alternatives, analyzes, and makes recommendations regarding procurement mechanisms and procurement strategies for offshore wind energy projects to be financed, entitled, constructed, and operated within the timeframes necessary for meeting the state’s carbon neutrality goals. Status: Chapter 314, Statutes of 2023.
SB 1020 (Laird) establishes interim targets for the statewide 100% clean energy policy. Additionally requires state agencies to accelerate their 100% clean energy policy goal by 10 years. Status: Chapter 361, Statutes of 2022.
SB 1253 (Melendez) additionally requires the infrastructure plan to set out infrastructure priorities relating to specified flood prevention and maintenance. Status: Chapter 195, Statutes of 2022.
AB 525 (Chiu) requires the CEC to establish 2030 and 2045 planning goals, as specified, for electricity generated by offshore wind. Additionally requires the CEC, in coordination with specified agencies, to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency the Legislature by June 30, 2023. Status: Chapter 231, Statutes of 2021
SB 100 (De León) established the 100% Clean Energy Act of 2017 which increases the Renewables Portfolio Standards (RPS) requirement from 50% by 2030 to 60% and creates the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100% clean energy. Status: Chapter 312, Statutes of 2018.
AB 1473 (Hertzberg) Requires the Governor to annually submit a five-year infrastructure plan to the Legislature in conjunction with the Governor’s Budget. The plan is intended to complement the existing state budget process for appropriating funds for infrastructure by providing a comprehensive guideline for the types of projects to be funded through that process. Status: Chapter 606, Statutes of 1999.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Port Authorities
California Wind Energy Association
Offshore Wind California
Opposition
None on file.
Analysis Prepared by: Lina V. Malova / U. & E. / (916) 319-2083
Public Utilities Code §454.53 ↑
Pg. 41; Inputs & Assumptions: CEC SB 100 Joint Agency Report; June 2020. ↑
Pg. 1, CEC, CPUC, & CARB; 2021 SB 100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment;” March 2021. ↑
Solid monopile foundations are piles driven into the subsurface for stability. Jacket and tripod platforms involve three to four connection points with the subsurface. ↑
Pg. 11; “CEC, “Research and Development Opportunities for Offshore Wind Energy in California.” CEC-500-2020-053; August 2020 ↑
Pg. 1; Ibid ↑
“Technical potential” is defined as the amount of offshore wind capacity that could be developed while taking into account exclusion factors related to water depth, mean wind speed, industry uses, and environmental conflicts. ↑
Pg. 7 CEC Research and Development Opportunities for Offshore Wind Energy in California; CEC-500-2020-053; August 2020. ↑
Pg. viii; Optis, et al. 2020 Offshore Wind Resource Assessment for the California Pacific Outer Countinental Shelf, National Renewable Energy Laboratory; NREL/TP-5000-77642 BOEM 2020-043; October 2020 ↑
Government Code § 13102 ↑
Government Code § 13102 (c) (2)) ↑
Pg. 61, CEC, “Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045,” CEC-800-2022-001-REV, August 2022. ↑
See Draft Strategic Plan for Offshore Wind Development, issued in CEC Docket 17-MISC-01, January 19, 2024. ↑
Discussed in Hearing
1MIN
Senate Standing Committee on Appropriations
4MIN
Senate Standing Committee on Governmental Organization
5MIN
Senate Standing Committee on Energy, Utilities and Communications
2MIN
Assembly Floor
Bill Author
Bill Co-Author(s):