Agenda packet — Law & Regulation Committee, March 20, 2025

AGENDA
March 20, 2025

CITY COUNCIL

LAW & REGULATION COMMITTEE
9:00 A.M.

Council Chambers
311 Vernon Street
Roseville, California
www.roseville.ca.us

THE CITY OF ROSEVILLE WELCOMES YOUR PARTICIPATION
If an agenda item is open to public comment, such public comment shall be addressed to the chair of the meeting.

Public Comment
- Speakers have three minutes under Public Comment to speak on issues that
are not listed on the agenda and are within the City's jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda.

Consent Calendar
- If applicable, the Consent Calendar consists of routine items that may be approved by one motion. Any person can remove an item from the Consent Calendar to be discussed separately.

Agenda Items
- Speakers have five minutes to address items that are listed on the agenda.

Levine Act Provisions
-

The Levine Act requires a Party (or its agent (s)) to a Proceeding before the City of Roseville that involves any action or consideration to their contract, license, permit, or other entitlement for use, to disclose any campaign contribution made to City elected or appointed officers (including Councilmembers, Planning Commissioners, and members of other City boards and commissions) totaling more than $250 within the 12 months before the City decision.

Americans with Disabilities Act
- Notify the City Clerk or Secretary at least 72 hours in advance if special assistance is required to participate in a meeting including the need of auxiliary aids or services.

Audio/Visual Presentations
- If making a presentation regarding an agenda item, audio/visual materials must be submitted to the City Clerk or Secretary at least 72 hours in advance.

Roseville City Clerk 311 Vernon Street, Roseville, CA 916-774-5200 TDD 916-774-5220

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

4. PUBLIC COMMENTS

5. MINUTES

5.1. Minutes of Prior Meeting
Memo from City Clerk Technician Blair Hutchison and City Clerk Carmen Avalos recommending the City Council Law & Regulation Committee members approve the minutes of the September 26, 2024 Law & Regulation Committee meeting.

CC #:
3805
File #:
0103-32-01
CONTACT:

Blair Hutchison 916-774-5266 [email protected]

6. REPORTS/COMMENTS/COMMITTEE/STAFF

6.1. State & Federal Priority Legislation –
March 2025
Memo from Government Relations Manager Rob Baquera and Deputy City Manager Megan Scheid with an update on state and federal legislation. The 2025 California State Legislative Session has begun, introducing over 2,350 bills with key themes in budget impacts, wildfire prevention, housing, and technology regulations. This memo also outlines the City’s advocacy priorities and the upcoming federal advocacy trip, where Roseville representatives will engage with congressional leaders on critical issues affecting the City.

CC #:
3806
File #:
0103-32-02
CONTACT:

Rob Baquera
916-774-5179 [email protected]

6.2. Electric Department Priority Legislation - March 2025 Memo from Utility Government Relations Administrator Amber Blixt and Electric Utility Director Daniel Beans with an overview of energy-related legislation and other activities that staff has been monitoring.

CC #:
3807
File #:
0103-32-02
CONTACT:

Amber Blixt 916-774-5693 [email protected]

6.3. Environmental Utilities Priority Legislation - March 2025 Memo from Government Relations Representative Sarah Starr and Environmental Utilities Director Sean Bigley with an informational report on state activities that staff have been engaged in and legislation that staff has identified as potentially having a significant impact on City utility customers and the Environmental Utilities Department.

CC #:
3808
File #:
0103-32-02
CONTACT:

Sarah Starr 916-774-5767 [email protected]

7. ADJOURNMENT

CITY COUNCIL
Law & Regulation Committee
CC #:
3805
File #:
0103-32-01
Title:

Minutes of Prior Meeting
Contact:

Blair Hutchison 916-774-5266 [email protected]

Meeting Date: 3/20/2025
Item #: 5.1.

RECOMMENDATION TO COUNCIL
Approve the minutes of the September 26, 2024 Law & Regulation Committee meeting.

BACKGROUND
Not applicable.

FISCAL IMPACT
Not applicable.

ECONOMIC DEVELOPMENT / JOBS CREATED
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

Respectfully Submitted,
Blair Hutchison, City Clerk Technician
Carmen Avalos, City Clerk

_____________________________
Dominick Casey, City Manager
ATTACHMENTS:

Description
Minutes of September 26, 2024

MINUTES
September 26, 2024

VIDEO

CITY COUNCIL

LAW & REGULATION COMMITTEE
9:00 A.M.

Council Chambers
311 Vernon Street
Roseville, California
www.roseville.ca.us

1. CALL TO ORDER
Chair Tracy Mendonsa called the meeting to order at 9:00 a.m.

2. ROLL CALL

Present: Houdesheldt, Mendonsa

3. PLEDGE OF ALLEGIANCE
Assistant Environmental Utilities Director Sean Bigley

4. PUBLIC COMMENTS
No public comment received.

5. MINUTES

CC #:
3569
File #:
0103-32-01
CONTACT:

Blair Hutchison 916-774-5266 [email protected]

No public comment received.

Committee consensus to approve the minutes of the June 27, 2024 Law & Regulation Committee meeting.

6. REPORTS/COMMENTS/COMMITTEE/STAFF

6.1. State & Federal Priority Legislation –
September 2024
Memo from Government Relations Administrator Mark Wolinski and Deputy City Manager Megan Scheid with a report that includes an overview of actions taken by the Legislature during the final month of the 2024 legislative session on bills being tracked for City departments with areas of particular focus on public safety, building, housing, homelessness, broadband, divestment, ethics training, zoning, and at the federal level the appropriations process.

CC #:
3570
File #:
0103-32-02
CONTACT:

Mark Wolinski 916-774-5179 [email protected]

Government Relations Administrator Mark Wolinski introduced Program Manager Rob Baquera.

Rob Baquera made the presentation to the Committee.

Public Safety and State Initiative
AB 3241 (Pacheco) Law enforcement: police canines (Support) Proposition 36 and Recent Legislative Developments

Fire and Building
Fire - AB 1168 (Bennett) Emergency Medical Services (EMS): Prehospital EMS (Support)
AB 2225 (Rodriguez) Discovery: prehospital emergency medical care person or personnel review committees (Support)

Government Relations Administrator Mark Wolinski continued the presentation.

Housing and Homelessness
SB 37 (Caballero, D) Older Adults and Adults with Disabilities Housing Stability Act. (Support)
SB 1037 (Wiener) Planning and Zoning: Housing Element: Enforcement (Oppose) AB 1782 (Ta) Redevelopment: Successor Agencies: Low and Moderate Income Housing Asset Fund (Support)
Governor Signs Housing/Homelessness Bill Package

Broadband and Divestment
AB 2708 (Patterson, Jim) Office of Broadband and Digital Literacy: Reports. (Support)
SB 252 (Gonzalez) Public Retirement Systems: Fossil Fuels: Divestment (Oppose)

Ethics, Campaign Contributions and Zoning
AB 2631 (M. Fong) Local Agencies: Ethics Training (Support) SB 1243 (Dodd) Campaign Contributions: Agency Officers (Support) AB 98 (Carrillo, Juan and Reyes): Planning and zoning: logistics use: truck routes (Oppose)

Federal - Appropriations Process and Earmarks

Federal Appropriations
House Republican leadership recently introduced a continuing resolution (CR) to keep the federal government funded until March 2025. The CR also included a policy rider that seeks to restrict undocumented immigrants from voting.

The House GOP leadership pulled their six-month stopgap funding plan hours before a scheduled floor vote due to staunch opposition to the measure from several Republican holdouts.

House Speaker Johnson said they will delay the vote as they work to overcome the current opposition and work to build a consensus that would overcome the concerns some members of the GOP caucus have with the current funding plan.

City Projects Included in Senators’ Earmarks Requests - Update Two General Fund departments submitted projects for consideration through the Community Project Funding and Congressionally Directed Spending (Earmark) Appropriations process. Unfortunately, neither bill was included in the final Appropriations bill that passed out of the senate appropriations process.

No public comment received.

For information only. No action taken.

6.2. Electric Department Priority Legislation - September 2024 Memo from Utility Government Relations Administrator Amber Blixt and Electric Utility Director Daniel Beans with an overview of energy-related legislation and other activities that staff has been monitoring.

CC #:
3571
File #:
0103-32-02
CONTACT:

Chris Romero 916-746-1660 [email protected]

Utility Government Relations Administrator Chris Romero made the presentation to the Committee.

Roseville Hosts UEC Tour with NCPA
Roseville hosts utility exploration center tour with NCPA Part of NCPA’s Annual Legislative Staff Tour
Visitors included key energy committee and other legislative staff Focus on the benefits that our one-of-a-kind UEC provides to our community and the value of community-owned utilities
Currently evaluating regulatory engagement to benefit the UEC in the future

DEBA Grant Update
August 14: California Energy Commission unanimously approves Roseville’s DEBA Grant Proposal
Roseville selected number 1 in applicant pool; $1.37M in grant funds Supports efficiency upgrades to the DWR units located at REP DEBA approval a step closer toward owning these units in the future Units originally sited in response to Governor’s 2021 Emergency Proclamation

State Legislation
AB 1465 (Wicks)
Nonvehicular Air Pollution: Civil penalties
Allows State Attorney General or local air district to triple penalties for Title V emissions violations
Roseville Energy Park is a Title V source that could be impacted Letter to the journal: clarifies enforcement discretion, variances & emergency declarations
Enrolled to the governor
AB 2037 (Papan)
Electric Vehicle Chargers – Weights and Measures
Authorizes County Sealer to verify accuracy of Municipal EV Chargers Charger must be repaired or corrected within 30 days
Authorizes County board of supervisors to charge annual registration fee POUs can conduct inspections under certain specifications Department is comfortable with County Sealers completing tasks AB 3179 (Carrillo)
Exempts emergency telecommunications vehicles from ACF regulations until 2030 Vehicles exempt are defined as a bucket truck or a cell on wheels unit Applies to vehicles owned or purchased by emergency telecommunications providers required to participate in the federal Emergency Alert System, to provide access to 911 emergency services, or to provide wireless connectivity during service outages
Highlights the need for exemptions for vehicles that are used to restore outages, like electric utility vehicles that restore power
Enrolled to the governor
AB 3264 (Petrie-Norris)
CPUC/CEC to develop a framework to assess, track total annual energy costs paid by residential households in California by 12/31/2026 Framework used to evaluate electric, gas corporations’ requests for new spending eligible for recovery or revenue requirement adjustments Requires agencies to submit a study to the legislature by 07/01/2025 identifying proposals to reduce the cost to ratepayers
Comes after an effort to address rising energy costs this year and is expected to continue in next year’s legislative session
Enrolled to the governor
SB 867 (Allen)
Places a bond on the November ballot providing funding for climate resilience projects
Funding includes:
$3.8B for safe drinking water, recycled wastewater, stored groundwater & flood control
$1.5B on wildfire protection
$850M for clean energy projects, including offshore wind and transmission infrastructure
$50M for large battery storage projects
Electric and EU both tracked SB 867
SB 867 was signed and will be on November 2024 ballot as Proposition 4 State constitution requires a bond act to be approved by a 2/3 vote of each house of the Legislature and a majority of the voters
SB 1003 (Dodd)
Existing law requires POUs to submit Wildfire Mitigation Plan (WMP) annually WMP must be submitted to the Wildfire Safety Advisory Board Would change from annually to at least once every four years, as determined by the board
Would apply after January 1, 2026
Annual changes to WMPs tend to be minimal, new timeline more workable Bill failed but it may resurface during next year’s legislative session

SB 1251 (Stern)
Mosquito abatement inspections of electrical vaults
Establishes formal vector management agreement if voluntary cooperation fails Focus on locations of vaults with standing water
Supervised access for inspections/treatment
Utility infrastructure data remains confidential
Historically Roseville not receiving inspection requests in the past

CEC (California Energy Committee) ERPA Surcharge Increase Increase to Energy Resources Programs Account (ERPA) surcharge Surcharge would impact behind the meter (BTM) solar customers Requirements would create challenges for existing billing system Working with trade associations on workable language/proposal New language likely to surface again in 2025
No public comment received.

For information only. No action taken.

6.3. Environmental Utilities Priority Legislation - September 2024 Memo from Utility Government Relations Administrator Noelle Mattock and Environmental Utilities Director Richard Plecker with an informational report on state activities that staff have been engaged in and legislation that staff has identified as potentially having a significant impact on City utility customers and the Environmental Utilities Department.

CC #:
3572
File #:
0103-32-02
CONTACT:

Noelle Mattock 916-774-5504 [email protected]

Utility Government Relations Administrator Noelle Mattock made the presentation to the Committee.

Bills On The Governor’s Desk
SB 366 (Caballero) The California Water Plan: Long-term Supply Targets (Support)
SB 707 (Newman) Responsible Textile Recovery Act of 2024 (Support) SB 937 (Weiner) Development projects: permits and other entitlements: fees and charges (Oppose)

Bill That Failed Passage
SB 1255 (Durazo) Public Water Systems: Needs Analysis: Water Rate Assistance Program (Oppose Unless Amended)

Environmental Utilities in the Community
ACWA Regions 3 and 4 Joint Program and Tour - Guardians of the Source:

Strengthening Watershed Resilience for Future Generations Water Conservation Staff Presentation to Sun City Roseville Garden Club – Making Conservation A California Way of Life
Water Forum Tour - Habitat Project at River Bend

No public comment received.

For information only. No action taken.

7. ADJOURNMENT
Chair Mendonsa adjourned the meeting at 9:56 a.m.

CITY COUNCIL
Law & Regulation Committee
CC #:
3806
File #:
0103-32-02
Title:

State & Federal Priority Legislation –
March 2025
Contact:

Rob Baquera
916-774-5179 [email protected]

Meeting Date: 3/20/2025
Item #: 6.1.

RECOMMENDATION TO COUNCIL
This staff report provides updates to the Law and Regulation Committee on priorities outlined in the City of Roseville’s Legislative Platform. This includes state and federal legislative, regulatory, and other relevant activities being tracked.

BACKGROUND
City of Roseville Law and Regulation Committee Report

Introduction
This report provides a comprehensive overview of the 2025 California State Legislative Session, outlining key legislative themes, and providing updates on the City's government relations efforts.

As this is the first Law and Regulation Committee meeting of the year and the start of a new two- year legislative cycle, the report details the initial legislative landscape, critical deadlines, and the City of Roseville’s advocacy priorities at both the state and federal levels. With significant changes in legislative trends, state budget concerns, and ongoing policy shifts, this report aims to inform the Committee about relevant legislative issues that may impact the City of Roseville in the coming year.

2025 California Legislative Session Overview
The 2025 California State Legislative Session has begun with a significant number of new bill introductions. This year marks the first of a two-year cycle, during which legislators are seeking to advance their priority issues while navigating a reduced bill cap per legislator. The following provides a high-level snapshot of legislative activity:

Total Bills Introduced:
2,350 (an increase from 2,124 last year)
Assembly Bills:
1,500
Senate Bills:
850
Placeholder Bills:
871 (390 spot bills and 481 intent bills), accounting for 37% of total introductions
Bill Introduction Limits:

Assembly: Reduced from 50 to 35 bills per legislator
Senate: Reduced from 40 to 35 bills per legislator
Committee Hearings:

Under California law, newly introduced bills must be
in print for at
least 30 days
before they can be heard in committee. This requirement allows for public review and comment before legislative committees begin formal discussions. Given the February 21 bill introduction deadline, March 21 marks the approximate point at which committee hearings will increase. During this phase, lawmakers will evaluate proposed legislation, hear testimony from stakeholders, and consider amendments. This period is critical, as many placeholder bills introduced without substantive language will be revised and given clearer legislative intent. As a result, the committee hearing stage significantly shapes the final form of bills before they advance through the legislative process.

The
reduction in bill limits
is expected to make legislators more strategic in their legislative proposals, focusing on high-priority policy changes. As the session progresses, many placeholder bills will be amended to include substantive language, making close monitoring of legislation essential.

Key Dates for 2025 Legislative Session
January 1:

Statutes take effect
January 10:

Governor submits state budget proposal
January 24:

Last day to submit bill requests to Legislative Counsel February 21:

Bill introduction deadline
April 10–21:

Spring Recess
September 12:

Final adjournment of the session

These dates set critical milestones for legislative activity, particularly the bill introduction deadline, after which lawmakers will begin refining their legislative priorities through committee hearings and amendments.

Bill Analysis and Review

City departments have received an initial bill list for review. The Citywide Government Relations
Team
is actively analyzing legislation relevant to their respective subject areas to assess potential impacts on Roseville’s municipal operations. This process ensures that the City can proactively engage in legislative advocacy, whether by supporting beneficial bills or opposing those that could negatively impact City services and funding.

Legislative Themes for 2025
Several key policy areas have emerged as major legislative themes for the 2025 session. These topics will shape legislative discussions and influence advocacy efforts at the state level.

State Budget
Legislative analysts continue to project increasing budget deficits, raising concerns about long-term fiscal stability.

Uncertainty surrounding federal funding allocations, particularly with the change in the presidential administration, adds to the complexity of state budget planning.

Major funding areas such as transportation, public safety, and housing may face cuts, requiring strong advocacy to ensure Roseville’s needs are met.

Wildfire Prevention and Mitigation
Approximately 90 bills related to wildfire response and mitigation have been introduced, reflecting continued legislative focus on disaster preparedness and climate resilience.

Many of these bills aim to improve funding mechanisms for fire prevention programs and enhance building regulations in high-risk areas.

Several proposed bills are reintroductions from previous years, signaling continued challenges in passing long-term wildfire legislation.

The state is in the process of refining its mapping of
Fire Hazard Severity Zones
, which
could impact local zoning laws, insurance rates, and emergency response planning. These updates aim to provide more accurate risk assessments and improve fire mitigation strategies for high-risk areas.

Housing Affordability
Legislative priorities focus on lowering the cost of living for working Californians, increasing the affordable housing supply, reducing energy costs, and improving public infrastructure.

The Legislature is expected to consider zoning reform, affordable housing incentives, and funding mechanisms for new housing developments.

Technology Regulations
California remains a leader in tech regulation, particularly concerning artificial intelligence, data privacy, and autonomous vehicles.

Expect discussions on AI governance, including regulations for AI-generated content and consumer protections against fraudulent AI-assisted impersonation.

Significant Legislation

The following bills have been identified as having potential impacts on the City. Each addresses key issues related to local governance, including short-term rental regulations, homelessness coordination with Caltrans, and property tax relief for disaster victims. The City has taken a watch position on these bills to assess their potential effects on local operations, financial implications, and alignment with existing policies. Further evaluation will help determine whether advocacy or policy adjustments are necessary.

SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator (Watch)
Existing law allows local authorities to regulate short-term occupancy in accommodations such as hotels and motels for periods of less than 30 days. This bill would permit local agencies, such as cities or counties, to require short-term rental facilitators to report details like the assessor parcel number of each rental property. This must be done in a format specified by the local agency, and additional identifying information may be required. The bill also enables local agencies to impose fines for non-compliance or initiate audits of short-term rental facilitators. Additionally, if an ordinance is in place, facilitators must include the local license number and transient occupancy tax certification in rental listings. The bill also clarifies that local agencies can implement ordinances
regulating short-term rentals or taxes that differ from the bill's provisions.

Staff comments: The City is
watching this bill to assess its impact on our transient occupancy tax (TOT) collection and enforcement. While it provides more authority to regulate short-term rentals, we need to evaluate administrative burdens, enforcement challenges, and potential industry pushback.

SB 569 (Blakespear) Department of Transportation: homeless encampments (Watch) The Department of Transportation has authority over the state's highway system and can require the removal of encroachments, such as homeless encampments, on its property. Existing law allows the department to create highway cleanup programs. This new bill mandates that the department work with local governments to address homeless encampments on its property, establishing a liaison office for coordination. It requires creating a joint action plan in each district with local governments and allocating funds, as appropriated by the Legislature, to support these efforts. Additionally, the bill mandates the formation of an advisory committee in each district to guide implementation and requires the department to submit an annual report to the Legislature with information and recommendations on the issue.

Staff comments: The City supports
coordination with Caltrans on encampments but is watching this bill to assess funding availability, administrative impacts, and potential overlap with local efforts. Ensuring adequate state support and avoiding duplicate requirements are key considerations.

SB 603 (Niello) Property taxation: transfer of base year value: disaster relief (Watch) Under current law, California allows property owners to transfer the tax base year value to a
comparable replacement property within the same county if the original property is significantly
damaged or destroyed by a disaster declared by the Governor.

This transfer must happen within five
years of the disaster. The proposed bill would
permit county boards of supervisors to extend this
transfer period by up to three
additional years for disasters declared on or after January 1, 2025.

Furthermore, while
current law requires the state to reimburse local agencies for certain lost property tax
revenues, this bill specifies that no reimbursements will be provided for revenue losses incurred due
to this extension. The bill is set to take effect immediately as a tax levy.

Staff comments: The City is
monitoring this bill due to potential revenue impacts. While extending property tax relief helps affected residents, the lack of state reimbursements could reduce local funding for essential services. The City needs to evaluate the financial implications before taking a position.

City of Roseville Federal Advocacy Trip (April 7–11, 2025)

City representatives will travel to Washington, D.C., to engage with federal lawmakers, agencies, and trade associations on key issues affecting Roseville. Advocacy topics include the following, along with an overview of how mandated cuts to the federal workforce are anticipated to affect the City of Roseville’s utility and cybersecurity operations, among other areas:

Information Technology
Advocating for enhanced cybersecurity policies to protect municipal infrastructure from cyber threats.

Engaging in discussions on AI governance and federal telecommunications and broadband policies that may impact local government operations.

Housing
Protecting the City's 800 Housing Choice Vouchers from potential funding cuts by HUD.

Advocating for continued federal support for affordable housing initiatives, particularly in light of rising housing costs.

Public Works & Transportation
Seeking federal appropriations for transportation infrastructure improvements.

Ensuring that Roseville has access to critical funding streams to support transit and roadway projects.

Electric Utility
Opposing workforce reductions in the Federal Power Program (Western Area Power Administration - WAPA), as it is a critical operation for the City’s power grid, is self-funded and does not rely on taxpayer dollars.

Supporting S. 448, which extends the Advanced Manufacturing Production Credit (45X) for U.S. companies producing distribution transformers.

Environmental Utilities
Advocating for funding for the Joint Roseville/Placer County Water Agency (PCWA)

Raw
Water Conveyance Project to secure additional surface water access.

Supporting federal policy changes related to Lead and Copper Rule Improvements, PFAS CERCLA Indemnity, PFAS Risk Assessment, and Low-Income Rate Assistance Programs Conclusion
As the legislative session advances, the Government Relations Team will continue to actively monitoring proposed legislation and engaging in advocacy to ensure the City’s interests are well represented at both the state and federal levels.

Regular updates will be provided to the Law and Regulation Committee throughout the session, ensuring that the Committee remains informed and prepared to engage in legislative discussions as necessary.

FISCAL IMPACT
The costs of monitoring and assessing legislative and regulatory activities is contained within the City’s current operating budget.

ECONOMIC DEVELOPMENT / JOBS CREATED
The activities contained in this report will not result in job development or creation.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The action of reviewing legislation meets the above criteria and is not subject to CEQA. No additional environmental review is required.

Respectfully Submitted,
Rob Baquera, Government Relations Manager
Megan Scheid, Deputy City Manager

_____________________________
Dominick Casey, City Manager

CITY COUNCIL
Law & Regulation Committee
CC #:
3807
File #:
0103-32-02
Title:

Electric Department Priority Legislation - March 2025
Contact:

Amber Blixt 916-774-5693 [email protected]

Meeting Date: 3/20/2025
Item #: 6.2.

RECOMMENDATION TO COUNCIL
Discuss and provide input on any state or federal legislation presented to the committee.

BACKGROUND
Staff has been reviewing key energy legislation introduced in 2025 to determine potential impacts to the Electric Department. The bill introduction deadline was February 21. Below is a list of key bills along with state and federal energy items that staff has been monitoring:

State Legislative Advocacy:

Capitol Day
Every year, the California Municipal Utilities Association (CMUA) and the Northern California Power Agency (NCPA) host an annual legislative advocacy day or “capitol day” where publicly owned utilities in the water and energy sector collectively come together for a one-day event to meet with our representatives in the State legislature. This is an opportunity for our legislators to hear from our city’s electric and environmental utilities departments, as well as from members of our City Council, regarding our priority issues for the year. The Electric and Environmental Utilities Departments collaborate to coordinate meetings, issue papers, and talking points for this event.

Staff comments: This event is always a great opportunity to meet with our legislators at the outset of a new legislative year and share upcoming issues facing our utilities. The Electric Department focused our talking points on our support for reliability related programs, the need for flexibility and collaboration to meet the State’s energy goals and relayed an emphasis on affordability for our customers. Our participation in events like this allow our utility the opportunity to proactively support the best interests of our community while raising awareness of critical industry issues. We look forward to continued engagement with our legislators throughout the year as new legislation is introduced.

State Legislation:

AB 222 (Bauer-Kahan) Data centers: energy usage reporting and modeling. (Watch) -
This bill would require data center operators to report their annual energy consumption and efficiency metrics to the California Energy Commission (CEC), including details such as total electricity usage, renewable energy contributions, and energy used specifically for AI development. These reports will allow the CEC to monitor energy trends and evaluate the impact on California’s electrical grid.

Staff comments: The department is encouraged with this
legislation that provides consumers and policymakers with transparency of the energy footprint associated with AI technologies. This bill makes certain that developers, data centers, and electric utility providers work cooperatively to reduce energy costs for Californians who do not directly benefit from these energy-intensive technologies.

Preventing energy costs from being unfairly passed on to customers aligns with Roseville Electric’s legislative platform goals.

AB 303 (Addis) Battery energy storage facilities. (Oppose Unless Amended) -
This bill
would impose several limitations on where a battery energy storage system capable of storing 200-megawatt hours or more of energy could be authorized. Some of these restrictions include building in the coastal zone, within 3,200 feet of a sensitive receptor site, and in earthquake, wildfire risk, or flood zones. The bill would require the CEC to deny applications for a battery energy storage system that are pending as of the effective date of this bill. AB 303 would also remove battery storage facilities from the existing AB 205 state permit streamlining program. As an urgency statute, this bill would take effect immediately.

Staff comments: This bill was
introduced in reaction to a recent fire that broke out at a battery storage facility located in the bill author’s district. This bill will dramatically restrict both POUs and energy developers from building new battery storage facilities in California. Given the investment that some POUs have already made into developing and building these facilities, including projects that are currently in the pipeline and could be in jeopardy if this bill were to pass, staff is recommending an oppose unless amended position on this bill. The department is working with its trade associations to seek amendments to this bill that would exempt projects that are currently in the works and make the bill apply prospectively.

AB 305 (Arambula) Energy: nuclear facilities. (Watch)

-
Existing state law prohibits the
California Energy Commission (CEC) from certifying a nuclear fission thermal powerplant and provides that a nuclear fission thermal powerplant is not a permitted land use in California unless certain conditions are met regarding the existence of technology for the construction and operation of nuclear fuel rod processing plants and of demonstrated technology or means for the disposal of high-level nuclear waste. AB 305 would exempt small modular reactors from those provisions.

This bill would also require the California Public Utilities Commission (CPUC) to, on or before January 1, 2028, adopt a plan to increase the procurement of electricity generated from nuclear facilities and to phase out the procurement of electricity generated from natural gas facilities.

Staff comments: AB 305 does not create any new procurement requirements for POUs; however, to the extent that POUs are interested in nuclear power or procuring nuclear energy, this bill may make it easier to do so in California. The department may be open to more nuclear energy in California if it can help lower energy costs and increase reliability to the State grid.

Federal Legislation:

S. 448 (Moran, Cortez Masto) Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act. (Support)

-
Senator Jerry Moran (Kansas) and Catherine
Cortez Masto (Nevada) have introduced a bipartisan bill that would extend the Advanced Manufacturing Production Credit (45X) to U.S. companies that produce distribution transformers.

The purpose of this bipartisan legislation is to address the shortage of distribution transformers, bolster the domestic energy economy and speed up disaster recoveries. Distribution transformers are an essential element to having a reliable electrical grid which supports our nation’s critical infrastructure.

Staff comments: Electric department and City leaders have continued to carry the message of supply chain challenges and solutions during meetings with members of Congress and federal energy agencies. Expanding the manufacturing credit to include distribution transformers will help give domestic manufacturers needed certainty as they work to ensure a resilient national supply chain. Roseville remains supportive of supply chains solutions that promote domestic electric grid component manufacturing, improve grid reliability as well as funding for such efforts.

H.R. 1255 (Kustoff, Yakym, Moore, Panetta) the Investing Our Communities Act of 2025, Tax-Exempt Bonds. (Support)
-
Roseville and its trade association, APPA support the
introduction of H.R. 1255, legislation to reinstate the ability to issue tax-exempt advance refunding bonds. “This legislation will reduce costs and increase flexibility in financing the investments that keep the lights on in our communities,” said APPA President & CEO Scott Corwin. “This is an important improvement to an already potent tool: the tax-exempt municipal bond. Bonds finance more than three-quarters of the nation’s core infrastructure. They reduce costs for borrowers and are an incredibly valuable investment for millions of Americans, many of whom are fixed-income seniors.” This bipartisan legislation will restore tax-exempt advance refunding for municipal bonds so state and local governments can more efficiently invest in projects throughout their communities.

Staff Comments: The ability to refinance existing debt through tax-exempt advance refunding is an important cost-saving tool for both state and local governments. Advanced refunding would allow our city to reduce borrowing costs and free up resources. This legislation would also help cities manage financial obligations more efficiently and save taxpayer dollars.

Low Income Home Energy Assistance Program (LIHEAP) Open Letter to Senate and House Committees on Appropriations. (Support)
-
The City of Roseville has signed onto a
joint letter to support funding for the Low-Income Home Energy Assistance Program (LIHEAP).

This letter is being led by the National Energy and Utility Affordability Coalition (NEUAC) and supported by APPA and its members. The letter urges Congress to provide sufficient funding for LIHEAP in Federal Fiscal Year 2026. For more than 40 years, LIHEAP has been effective assisting families relieve the energy burden for those most vulnerable. LIHEAP prevents disconnection of service, contributes to housing stability, and protects health and safety. Roseville supports NEUAC, APPA and its national coalition, along with the stakeholder organizations across the country that have signed this letter, urging Congress to fully support LIHEAP and maximize funding. NEUAC is expected to send the letter in April or May.

APPA Resolution:

American Public Power Association (APPA) Resolution #25-09, Increased Federal Efforts to Address the Growing Threats of Wildfires. (Support)
-
Roseville is a co-sponsor of the
American Public Power Association (APPA) resolution to support increased Federal efforts to address the growing threats of wildfires. Wildfires pose numerous risks to electric utilities, particularly electric grid reliability and impacts to the financial stability of utilities. Congress is concerned about the growing threats of wildfires and multiple bills have been introduced to help mitigate and suppress wildfires. APPA urges Congress to increase appropriations for wildfire mitigation, suppression, and research at various federal agencies. APPA believes Congress should adopt policies that help electric utilities mitigate for wildfire and respond quickly in emergencies by expediting agency approvals for routine vegetation management and other related hazards. APPA and its members also support legislation that will provide liability protections to electric utilities from wildfires.

Staff comments: The APPA Legislative and
Resolutions Committee adopts policy resolutions at the Legislative Rally held in late February in Washington D.C., with all members voting on the resolutions later in the year. Electric Department staff attended the Legislative Rally in Washington D.C. as a co-sponsor of this resolution (with NCPA as the lead sponsor). In addition, the department will continue to carry the message to assist electric utilities mitigate for wildfire and respond quickly in emergencies by expediting agency approvals for routine vegetation management and other related hazards. Resolutions give APPA the guiding principles needed to advocate on behalf of their members in Washington D.C.

Conclusion:

Staff will continue to keep the committee apprised of these important legislative and regulatory proposals and request any direction as needed.

FISCAL IMPACT
The costs of these activities are contained within the City’s current budget.

ECONOMIC DEVELOPMENT / JOBS CREATED
The activities detailed in this report will not result in job development or creation.

The action of reviewing legislation meets the above criteria and is not subject to CEQA. No additional environmental review is required.

Respectfully Submitted,
Amber Blixt, Legislative and Regulatory Manager
Daniel Beans, Electric Utility Director

_____________________________
Dominick Casey, City Manager

CITY COUNCIL
Law & Regulation Committee
CC #:
3808
File #:
0103-32-02
Title:

Environmental Utilities Priority Legislation - March 2025 Contact:

Sarah Starr 916-774-5767 [email protected]

Meeting Date: 3/20/2025
Item #: 6.3.

BACKGROUND
State Legislation
AB 514 (Petrie-Norris) Water: emergency water supplies (Support) This bill would declare that it is a state policy to encourage, but not mandate, the development of emergency water supplies by local water suppliers, and to support their use during times of drought, unplanned service or supply disruptions. Emergency water supplies would include water supplies that a local water supplier has identified in its water shortage contingency plan that have been developed to increase water supply reliability and that are in addition to the baseline water supplies that water suppliers draw on to meet water demands.

Staff Comments: This bill is being sponsored by Irvine Ranch Water District (IRWD) and is a re-introduction of Senator Newman’s SB 1218 (2024) which died on the Assembly Appropriations Suspense file. IRWD has indicated that this bill was reintroduced as a continuation of last year’s discussions. Water suppliers need multiple tools to address California’s unpredictable climate cycles to ensure we have a reliable water supply. Roseville supported SB 1218 last year and is supporting AB 514, as staff believes this could be beneficial for our Aquifer Storage and Recovery (ASR) program and the future Sacramento Regional Water Bank.

AB 532 (Ransom) Water rate assistance program (Support) Upon appropriation, this bill would establish the California Low Income Household Water Assistance (LIRA) Program, which will be administered by the Department of Community Services and Development, to provide water rate assistance to residential ratepayers of community water systems with under 3,000 connections, or water systems serving predominantly disadvantaged communities. This bill would allow an urban retail water supplier to provide water rate assistance to eligible ratepayers in a manner that best meets its community’s needs. The criteria regarding eligible participants, funding, and program administration are to be determined by the water supplier who is initiating the program.

Staff Comments: This bill is being sponsored by the California Municipal Utilities Association and the language has been crafted by water agencies to provide express authority for agencies to create a low-income water rate assistance program that is flexible, meets the needs of their community, and is transparent without violating Proposition 218. Senator Durazo has introduced a new bill, SB 350, that seeks to provide water rate assistance to income eligible Californians by creating a statewide LIRA program.

SB 31 (McNerny) Water quality: recycled water. (Support) This bill proposes updates to the California Water Code as it relates to the use of recycled water.

Updates include:

Clarifies that recycled water is not an “unauthorized discharge” once it completes the required treatment process and enters a storage tank, pipeline, or canal for conveyance or distribution.

Precludes recycled water discharged from a decorative body of water during storm events, from being considered an unauthorized discharge if the recycled water was used to restore water levels due to evaporation.

Allows parks and open spaces to be irrigated with disinfected tertiary recycled water even if incremental amounts of spray, mist, or runoff would enter outdoor picnic areas.

Clarifies that recycled water can be used to irrigate the outdoor landscape of common areas operated by a homeowners’ association if it does not enter the boundaries of a residence and is not to be considered a part of the same premises as an individual residence and shall not be considered a dual plumbed system.

Would add food handling and processing facilities to the list of structures that are allowed to use recycled water for toilet and urinal flushing.

Staff Comments: This bill is being sponsored by WateReuse California to modernize non- potable recycled water regulations in the California Water Code, which have not been updated since 2000. As California looks to expand the use of recycled water as a tool to address climate impacts, recycled water regulations need to be updated to reflect the current science and technologies. Roseville is supporting this measure to provide clarity and expand the appropriate uses of recycled water based on sound science.

SB 45 (Padilla) Recycling: beverage containers: tethered plastic caps. (Support) Beginning January 1, 2027, this bill would require a
plastic beverage container cap to stay
attached to the container after opening
. Beverage containers will be provided a 1-year extension from compliance if they meet a 70% recycling rate in 2022 and 2023. Additionally, beverage containers with a capacity of three liters or more are exempt.

Staff Comments: SB 45 is mirroring a 2019 European Union regulation that instituted a tethered cap requirement for single-use plastics in an effort to reduce the impact of plastic caps entering into the environment and to align with global best practices. SB 45, defines beverage containers to be a separate bottle, can, jar, carton, or other receptable that is less than three liters of beverage and that is constructed in plastic. EU’s Waste Services division has indicated that compliance with this measure does not pose a significant concern on collection operations or post-collections processing. Roseville is supporting this measure through the California Product Stewardship Association, of which we are a member.

SB 72 (Caballero) The California Water Plan: long-term supply targets. (Support and Amend)
The California Water Plan (Water Plan) requires the Department of Water Resources (DWR) to develop a comprehensive, strategic plan for the sustainable and equitable management and stewardship of California’s water resources. This bill would propose to modernize the Water Plan by setting an interim water supply planning target of achieving 9,000,000 acre-feet of water capacity by 2040. This target would be included in the 2028 Water Plan update. Additionally, the 2033 Water Plan update would include updated supply planning targets with a 50-year planning horizon to ensure that the state’s future water needs are met. Other updates to the Water Plan include expanding access to the advisory committee by adding tribes, building and construction labor, and environmental justice representatives. This bill also seeks to expand water management strategies to aid in achieving the water supply targets and would include groundwater recharge, conveyance, stormwater capture, and demand management activities.

Staff Comments: In 2023, Senator Caballero introduced nearly identical legislation (SB 366), but it was vetoed by the Governor due to ongoing costs to DWR, the State Water Board and other agencies. To address these concerns, SB 72 has an accompanying budget request to ensure that funding is set aside and available. The California Municipal Utilities Association is sponsoring SB 72. Roseville is taking a support and amend position, as staff are seeking clarification in the language from SB 366, to make it clear that the state should not rely solely on conservation to meet the water supply planning targets.

SB 317 (Hurtado) Wastewater surveillance. (Watch)
This bill would require a county to establish and maintain at least one wastewater surveillance site to monitor for pathogens and public health indicators. Additionally, this bill would expand the California Surveillance of Wastewaters network (Cal-SuWers) to include all counties and to prioritize underserved and high-risk areas. The wastewater surveillance data would then be shared with health care providers to enable early intervention for emerging health threats.

Staff Comments: The Cal-SuWers network is currently comprised of partners who have volunteered to collect and analyze wastewater samples and generate data that is included in the State Department of Public Health’s California Wastewater Surveillance Dashboard.

This
bill would make that program mandatory for all counties to select one wastewater surveillance site.

Both the Pleasant Grove and Dry Creek Wastewater Treatment Plants currently participate in the Cal-SuWers network through Placer County and samples are conducted to monitor for COVID-19, Influenza, and other pathogens. As currently written, this measure does not impact our current participation in this program. Staff will monitor this bill and evaluate future amendments to ensure that they do not place new unfunded mandates upon our treatment plants.

SB 350 (Durazo) Water Rate Assistance Program (Oppose Unless Amended) This bill would establish the Water Rate Assistance Fund in the State Treasury to provide water affordability assistance, for drinking water and wastewater services, to low-income residential ratepayers and would be contingent on an appropriation by the Legislature. Beginning 365 days after the bill’s effective date, the funds to administer this program shall not exceed 10% of the average annual deposits into the fund. Additionally, beginning 450 days after the bill’s effective date, a minimum of 80% of total expenditures from the fund shall be directly applied to residential ratepayer accounts. Guidelines for the implementation of the program shall be adopted within 270 days of the bill’s effective date. The State Water Resources Control Board would be required to submit a report online that identifies how the Water Rate Assistance Fund has performed.

Staff Comments: This bill is a re-introduction of SB 222 (Dodd, 2022). Roseville previously held an oppose unless amended position on SB 222 due to concerns that the bill would have enacted an inefficient low-income assistance program that would waste program funding on unnecessary administrative costs. Senator Durazo seems to be committed to ongoing conversations with the water industry. Roseville staff will continue to work through our statewide trade associations. Additionally, the California Municipal Utilities Association is sponsoring AB 532 (Ransom), which Roseville staff have helped to craft, to provide explicit authority and flexibility for water agencies to create a low-income water rate assistance program that meets the unique needs of their community. AB 532 also creates a similar statewide program for smaller agencies that would not be able to stand up a local LIRA program. Staff is hopeful that through negotiations both measures could work hand-in-hand with one another.

Federal Legislation
H.J. Res 18 Constitutional Review Act (CRA) on Lead and Copper Rule Improvements (Support)
This legislation would utilize the Congressional Review Act (CRA) to repeal the U.S.

Environmental Protection Agency’s (USEPA) 2024 Lead and Copper Rule Improvements (LCRI) final rule.

Staff Comments: The LCRI was issued on October 8, 2024 and requires water providers to identify and replace lead service lines within 10 years. It also lowered the threshold for the lead action level from 15 micrograms per liter to 10 micrograms per liter. When the Lead and Copper Rule Revisions (LCRR) were adopted in 2021, agencies were required to inventory all customer owned service lines and report them to the state and make the inventory publicly available on their agency website. When the LCRI was adopted, water agencies were again required to conduct a second investigation and statistical analysis to demonstrate that there were no lead service lines. These continued investigations come at a significant cost to ratepayers with no-direct result. If the LCRI were to be repealed, the USEPA could re-write the rule and include an option for water agencies to have an offramp if they have had no lead service lines detected in their system. This would ensure that agencies are not having to continually re-test and reach the same result. Roseville is supporting this measure and if passed, would work with the USEPA to ensure that proper offramps are in place for agencies who are in compliance of the Lead and Copper Rule testing.

FISCAL IMPACT
The costs of monitoring and assessing legislative and regulatory activities is contained within the City’s current operating budget.

The fiscal impact of proposed legislative or regulatory action to the City is often unknown until later in the process.

However, staff will endeavor to estimate the
magnitude of any impacts as soon in the process as possible and communicate accordingly.

ECONOMIC DEVELOPMENT / JOBS CREATED
The activities contained in this report will not result in job development or creation.

Respectfully Submitted,
Sarah Starr, Government Relations Representative
Sean Bigley, Environmental Utilities Director

_____________________________
Dominick Casey, City Manager

Law & Regulation CommitteeMarch 20, 2025

Law & Regulation Committee
March 20, 2025