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 ----------------------------------------------------------------- |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 allcustomer 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 Page 2 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]. AB 1124 Page 3 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 FN: 0003055