1. Future of Climate and Clean Energy Policy A Legislative Perspective Kip Lipper Office of the Senate Pro Tem Power Assn of Northern CA December 16, 2014

2. Legislative Staff Disclaimer “The views presented are those of the speaker only and do not necessarily reflect the opinions of the Senate Pro Tem, any other Senator, or the Senate as an institution.”

3. Key Points to Cover:  Election Impacts on Clean Energy/Climate Policy  Preview of 2015-2016 Legislative Session  Status of Key Climate and Clean Energy Laws/Regulations  Next Steps for 2015—Policy and Politics

4. 2014 General Election  National Vote Major Legislative Setback for Clean Energy and Climate (House/Senate—Climate “Deniers”)  As Usual California Bucked the National Trend (No statewide office to Republicans)  Governor Reelected handily—Leading Climate Champion  Pro Environment Majorities Elected in Both Leg Houses  Legislative Leadership Strongly pro Clean Energy/Climate

5. 2014 Legislative Elections  “Top Two” Election Rule Generally Favored Moderates  Few Surprises—Bocanegra (LA), Allen (San Fernando Valley), Thurmond (East Bay)  New Assembly Energy and Environmental Chairs Already Announced (Rendon, Williams)  Senate Chairs Still Pending

6. Governor Second Term Clean Energy/Climate Agenda  Strong new statements on clean energy and climate policy (“announcements in 60 days”)  Appoint two new CPUC Commissioners (including President)  January Budget (cap and trade, clean energy expenditures)  Governor typically makes broad pronouncements, lets leg do details

7. Senate Clean Energy and Climate Agenda 2015  Extend climate targets past 2020 to 2030 and 2050  New “Deep Dive” on De-carbonizing Grid, Transportation  Review Cap and Trade Expenditures and Re-Optimize Where Appropriate  Coal Divestiture—CALPERS, UC)  Climate Adaptation—Wildland fires, coastal sea rise  CPUC Reform (need functioning agency for RPS and EE)

8. Some Variables To Consider  International Actions—Lima and Paris  Presidential and Congressional Actions  Bringing Transportation Fuels Under Cap (public reaction)  Legislative Vote Threshold for Climate Bills  New Legislative Leaders in both houses in 2015  Gov Second Term Turnover (Peevey first of several)

9. Some Bottom Lines  California will continue to lead the world on climate policy and clean energy.  Key Element of Brown Second Term Legacy  Details Matter—HOW we meet our climate targets more important than the targets themselves  New and ever-changing cast of character bring new thinking to key issues

10. Thank You. Questions?