BILL NUMBER: SB 806	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wiggins

                        FEBRUARY 27, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 806, as introduced, Wiggins. Electrical corporation energy
efficiency programs.
   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 limit the administrative
costs, as defined, of energy efficiency programs to not more than 5
percent of the funds expended.
   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.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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 limit the administrative
costs to not more than 5 percent of the funds expended. For the
purposes of this subdivision, "administrative costs" means personnel
and overhead costs associated with the implementation of each measure
and program, but does not include costs associated with the
marketing or evaluation of a measure or a program. 
  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.