BILL NUMBER: AB 51	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Blakeslee

                        DECEMBER 1, 2008

    An act relating to the Public Utilities Commission.
  An act to amend Section 399.4 of the Public Utilities
Code, relating to energy. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 51, as amended, Blakeslee.  Public Utilities
Commission: demand-side management programs.  
Electrical corporation energy efficiency programs.  
   (1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law restructuring the electrical
service industry states that it is the policy of the state and the
intent of the Legislature that the commission continue to administer
cost-effective energy efficiency programs. Pursuant to decisions and
orders of the commission, the commission supervises energy efficiency
programs administered by electrical corporations.  
   This bill would require the commission to require that at least
90% of energy efficiency program funds expended are used for direct
implementation of energy efficiency programs and would define direct
implementation to include incentives and rebates and to exclude
administrative, marketing, and outreach costs.  
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.  
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.  
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   Existing law requires the Public Utilities Commission, in
consultation with the State Energy Resources Conservation and
Development Commission, to adopt energy conservation demand-side
management and other initiatives in order to reduce the demand for
electricity and reduce load during peak demand periods. 

   This bill would express the intent of the Legislature to enact
legislation that would require the Public Utilities Commission to
integrate the demand-side management programs within its jurisdiction
in order to enable offerings of integrated packages that will
maximize savings and efficiencies of utility program overhead.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 399.4 of the   Public
Utilities Code   is amended to read: 
   399.4.  (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
   (2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
   (b) The commission, in evaluating energy efficiency investments
under its existing statutory authority, shall also ensure that local
and regional interests, multifamily dwellings, and energy service
industry capabilities are incorporated into program portfolio design
and that local governments, community-based organizations, and energy
efficiency service providers are encouraged to participate in
program implementation where appropriate. 
   (c) In order to ensure that energy efficiency programs achieve the
maximum benefits for each dollar of ratepayer funding collected to
support those programs, the commission shall require that at least 90
percent of energy efficiency program funds expended are used for
direct implementation of the energy efficiency programs. "Direct
implementation" as used in this subdivision includes incentives and
rebates, but does not include administrative, marketing, and outreach
costs. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would require the Public Utilities
Commission to integrate the demand-side management programs within
its jurisdiction in order to enable offerings of integrated packages
that will maximize savings and efficiencies of utility program
overhead.