Council won’t back state bills

CITY HALL — The City Council on Tuesday denounced two proposed state bills that would force its utility to produce a third of its energy from renewable sources by 2020, arguing the laws would significantly increase utility rates.

The regulations would also fail to count renewable resources obtained from outside the state, council members said.

The two bills — Assembly Bill 64 and Senate Bill 14 — would regulate renewable energy into the state and bring it in line with cities such as Burbank and Glendale, both of which have pledged to increase the size of their renewable energy portfolios to 33% by 2020.

Written by Assemblyman Paul Krekorian and State Sen. Joe Simitian, the bills would potentially negate the utility’s progress thus far by counting only those renewable resources generated within California.

The council, after limited discussion, agreed to sign letters of contention to both bills unless they are amended.

Burbank, which is on track to receive 20% of its energy from renewable sources within two years, currently culls 9% of its renewable energy from a blend of wind, solar and hydrologic projects in states such as Utah, Oregon and Washington. An additional 2% is generated in-state.

“I think it’s very important that the council support the recommendation of staff here,” said Councilman David Gordon. “I think we need to really stay on track. We really do need to look out for the best interest of the city and the best interest of our rate payers.”

Burbank’s commitments include a 16-year power purchase contract with PPM Energy Inc. to provide 5 megawatts of wind power from a facility in southwest Wyoming and a 20-year contract for wind energy from a new facility being built in central Utah. The city has also entered into an 18-year contract for wind power in northern Oregon, as well as from a small hydro-project in south-central Washington, said Ron Davis, general manager of Burbank Water and Power.

Davis last week joined Glenn Steiger, general manager of Glendale Water & Power, in opposing the measures.

Both general managers referred to the benchmarks on the way to 33% as arbitrary, arguing that contractors would be well of aware of deadlines and use them as an excuse to drive up costs. AB 64 calls for 20% renewable energy by 2010, and SB 14 requires 20% by 2012.

“Simply put, it’s a waste of public funds, and that is something I cannot support,” Davis said, adding that the bills could end up adding 10% on top of the extra 30% it would cost to reach the 33% benchmark.

Representatives from Krekorian’s office said the sweeping legislation enjoys bipartisan support and would create countless green jobs across the state for years to come.

But months of working with the bill’s authors do not appear to be yielding a resolution, said Lianne McGinley, legislative analyst for Burbank Water and Power.

Another sticky subject is transmission, which could create hundreds of jobs, but is tricky politically, Davis said. Building transmission lines is an unpopular and expensive undertaking, he said.

 CHRISTOPHER CADELAGO covers City Hall and the courts. He may be reached at (818) 637-3242 or by e-mail at christopher.cadelago@ latimes.com.