BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1124
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1124 (Skinner)
          As Amended  January 13, 2012
          Majority vote 

           UTILITIES & COMMERCE           11-2                 
          APPROPRIATIONS      12-5        
           
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          |Ayes:|Bradford, Fletcher,       |Ayes:|Fuentes, Blumenfield,     |
          |     |Buchanan, Fong,           |     |Bradford, Charles         |
          |     |Achadjian, Roger          |     |Calderon, Campos,         |
          |     |Hernández, Huffman, Ma,   |     |Chesbro, Gatto, Hall,     |
          |     |Nestande, Skinner,        |     |Hill, Ammiano, Mitchell,  |
          |     |Valadao                   |     |Solorio                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Swanson           |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Public Utilities Commission (PUC) to 
          ensure compliance with specified principles related to the PUC's 
          investigation of financing options for energy efficiency 
          improvements in existing residential and commercial buildings.  
          Specifically,  this bill  directs the PUC to assess the extent to 
          which electric and gas corporations comply with the following 
          principles:


          1)Achieve maximum energy savings for all   customer classes by 
            adopting whole building, performance-based approaches.


          2)Maximize opportunities of leveraging private capital by 
            increasing and streamlining access to on-bill repayment 
            programs without increasing utility costs.


          3)Encourage job creation and training opportunities, with an 
            emphasis on skilled occupations necessary for installation of 
            highly efficient energy savings measures.










                                                                  AB 1124
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          4)Create a single point of contact to coordinate access to 
            energy efficiency programs for prospective customers using 
            streamlined and simple procedures for determining 
            property-level program enrollment and customer eligibility as 
            well as encouraging customer participation.


          5)Provide equivalent funding and comparable measures for all 
            eligible customers within the energy efficiency programs, 
            particularly those customers that are more difficult to reach 
            and have not yet been served by the programs, including small 
            businesses, renters, multifamily renters, persons with 
            disabilities, and those located in remote areas.


           EXISTING LAW  requires:

          1)The PUC, by March 1, 2010, to have opened a new proceeding or 
            amended an existing proceeding to investigate the ability of 
            electrical corporations and gas corporations to provide energy 
            efficiency financing options to their customers to implement 
            the comprehensive energy efficiency program for certain 
            residential and nonresidential buildings developed by the 
            State Energy Resources Conservation and Development Commission 
            pursuant to a specified provision of law. 

          2)The PUC to include an assessment of each electrical 
            corporation's and each gas corporation's implementation of 
            that program in a specified triennial report required under 
            existing law.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, the bill places the onus on the regulated utilities 
          to propose programs to finance energy efficiency improvements 
          that meet the principles outlined above.  The bill does not 
          appear, however, to limit program design just to the listed 
          principles or to require that the entirety of the programs meet 
          just these principles.  PUC workload would involve determining 
          whether utility submittals adequately conform to program 
          principles and determining what modifications are necessary to 
          achieve sufficient conformance.  This additional workload would 
          require up to one additional analyst position at an annual cost 
          of $100,000.  ÝPublic Utilities Reimbursement Account].









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           COMMENTS  :  According to the author, this bill will direct the 
          PUC to apply specific principles in reviewing the utilities' 
          energy efficiency program proposals, while maintaining 
          flexibility in program design.


           Analysis Prepared by  :    Sue Kateley / U. & C. / (916) 319-2083 


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