CITY OF HUNTINGTON BEACH
Memorandum to City Council
TO: City Council
FROM: Shannon Levin, Council Policy Analyst
CC: Eric G. Parra, Interim City Manager
Travis Hopkins, Assistant City Manager
DATE: March 14, 2024
SUBJECT: Supplemental Communication for Item 13 (Pending Legislation) on the 9/19/24 City Council Agenda
This memo is to clarify that Recommended Action B should replace the text AB 1174 with AB 1774.
3/19/2024
13 (24-180)
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Shannon Levin, Council Policy Analyst
Subject:
..title
Consider position on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC) ..body
Statement of Issue:
On February 21, 2024, the Intergovernmental Relations Committee (IRC) comprised of Mayor Gracey Van Der Mark and Mayor Pro Tem Pat Burns (with Council Member Tony Strickland absent), discussed legislative items with relevance to Huntington Beach.
Following discussion, the IRC chose to take positions on various State bills, which are presented to the City Council for consideration.
Financial Impact:
Not applicable
Recommended Action:
..recommendation
A) SUPPORT AB 1999 (Irwin) Electricity: fixed charges, and send a letter of support.
B) Receive and file letters of support for AB 1773 (Dixon) e-bikes and AB 1774 (Dixon) e-bikes.
..end
Alternative Action(s):
Do not approve recommend action and direct staff accordingly.
Analysis:
AB 1999 (Irwin) Electricity: fixed charges
This measure would overturn a provision of a state law passed in 2022 (AB 205) requiring the CPUC to authorize a fixed charge for default residential rates of the State’s largest utility providers and requires these fixed charges to be established on an in come- graduated basis so that low-income ratepayers have lower average monthly bills without making any changes in usage. The bill would also cap the fixed charge that CPUC may authorize utility providers to charge customers for grid maintenance.
The income graduated fixed rates may perpetuate inequity and does not include proper accountability for energy providers. The income graduated charges may even disincentivize solar and energy conservation by other residential customers , impact overall system costs and efficiency, and likely increase costs for middle- and high-income customers. Costs associated with the fixed rates include climate driven costs such as burying power lines to reduce wildfire risks and building out infrastructure for electrification and reduction of carbon-based electricity generation.
AB 1999 would repeal the provisions described in Public Utilities Code Section 739.9.
The bill would instead permit the Commission to authorize fixed charges that do not exceed $5 per residential customer account per month for low-income customers enrolled in the California Alternate Rates for Energy (CARE) program and that do not exceed $10 per residential customer account per month for customers not enrolled in the CARE program. AB 1999 would authorize these maximum allowable fixed charges to be adjusted by no more than the annual percentage increase in the Consumer Price Index for the prior calendar year, beginning January 1, 2016.
Also, consistent with the 2024 Legislative Platform , two letters of support were issued regarding public safety: Support legislation that clarifies the public safety strategy for e - bikes and e-bike riders.
AB 1773 (Dixon) Vehicles: electric bicycles
Existing law prohibits the use of a motorized bicycle on a bicycle path or trail, bikeway, bicycle lane, equestrian trial, or hiking or recreational trail, unless the governing body permits the operation. Existing law also authorizes a local public agency to prohibit the use of an electric bicycle on an equestrian trial, hiking , or recreational trail. AB 1773 clarifies that a boardwalk is included in the definition of recreational trail. Additionally, the bill would impose a fine, not to exceed $35, agains t a person convicted of an infraction for a violation of an ordinance prohibiting or regulating electric bicycles on recreational trails.
AB 1774 (Dixon) Vehicles: electric bicycles
AB 1774 would prohibit the sale of any device that can modify the speed capability of an e-bike.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. AB 1999- Draft Letter of Support
2. AB 1773 and AB 1774- Letters of Support