BILL NUMBER: AB 1186	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 22, 2012
	AMENDED IN ASSEMBLY  MARCH 25, 2011

INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 18, 2011

   An act to  amend Section 398.4 of the Public Utilities
Code, relating to electricity   add Section 38578 to the
Health and Safety Code, relating to greenhouse gases  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1186, as amended, Skinner.  Electrical generation:
source disclosures.   California Global Warming
Solutions Act of 2006: investor-owned utilities: school energy
efficiency.  
   (1) The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990, to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emissions
reductions. The act authorizes the state board to include the use of
market-based compliance mechanisms. The act authorizes the state
board to adopt a schedule of fees to be paid by the sources of
greenhouse gas emissions regulated pursuant to the act, and requires
the revenues collected pursuant to that fee schedule be deposited
into the Air Pollution Control Fund and be available, upon
appropriation by the Legislature, for the purposes of carrying out
the act.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law authorizes the
commission to fix just and reasonable rates and charges.  
   This bill would require an investor-owned utility that receives
proceeds from the monetization of greenhouse gas emissions allowances
that may be directly allocated to the investor-owned utility by the
state board pursuant to the act to submit to the commission an
expenditure plan for those proceeds. The bill would prohibit the
commission from approving that expenditure plan unless at least an
unspecified percentage of those proceeds is available for certain
cost-effective school energy efficiency improvements for schools in
the individual investor-owned utility's service area. 
   (2) Under existing law, a violation of the Public Utilities Act or
an order of the commission is a crime.  
   Because the provisions of this bill would require action by the
commission to implement its requirements, a violation of the
commission's orders 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.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Existing law establishes a program under which retail suppliers of
electricity disclose accurate, reliable, and simple to understand
information on the sources of energy that are used to provide
electric services.  
   This bill would require that usage of natural gas be separately
disclosed: (1) when it is used for conventional powerplant and peaker
plant generation, and (2) when it is used for combined heat and
power system generation. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


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

   SECTION 1.    (a) Over 70 percent of the state's
public school classrooms are over 25 years old.  
   (b) Schools account for approximately 12 percent of all commercial
energy consumption, representing not only a significant cost to the
state's public schools, but also demonstrating that schools have a
sizeable greenhouse gas emissions footprint.  
   (c) Many school districts and local governments know there are
opportunities to reduce both the economic cost and carbon footprints
of schools by having more energy efficient buildings, operations, and
maintenance. These financial savings could provide schools with the
flexibility to pay for other upgrades that enhance the learning
environment.  
   (d) It is in the best interest of the state to quickly reduce
energy consumption from schools in a cost-effective manner. 

   (e) The California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500) of the Health and Safety Code)
requires the state to reduce carbon emissions to 1990 levels by 2020.
As part of the regulations designed to achieve this goal, the State
Air Resources Board has developed a carbon auction and trading
system. Under the regulation, the state's investor-owned utilities
will be given allowances for nearly 500 million tons of greenhouse
gas emissions, all of which must be auctioned. Revenues of those
auctioned allowances become revenues for the investor-owned
utilities.  
   (f) The Public Utilities Commission, which oversees the
investor-owned utilities, has an obligation to oversee the use of
these revenues.  
   (g) By directing that some of the investor-owned utilities'
auction revenues be used to fund energy efficiency measures in public
schools located in the investor-owned utility's service area,
ratepayers of the investor-owned utility will benefit from increased
budgetary flexibility, while also reducing greenhouse gas emissions.

   SEC. 2.    Section 38578 is added to the  
Health and Safety Code   , to read:  
   38578.  (a) Any investor-owned utility that receives proceeds from
the monetization of greenhouse gas emissions allowances that may be
directly allocated to the investor-owned utility by the state board
pursuant to this part shall submit to the Public Utilities Commission
an expenditure plan for those proceeds.
   (b) The Public Utilities Commission shall not approve any
expenditure plan submitted pursuant to subdivision (a) unless at
least ___ percent of any proceeds received from the monetization of
those greenhouse gas emissions allowances that are directly allocated
to investor-owned utilities by the state board pursuant to this part
is available to fund cost-effective school energy efficiency
improvements, including, but not limited to, advanced lighting
controls, upgrades to heating, ventilation, and air-conditioning
systems, hot water, and kitchen appliances, for schools in the
individual investor-owned utility's service area. 
   SEC. 3.    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.    Section 398.4 of the Public
Utilities Code is amended to read:
   398.4.  (a) Every retail supplier that makes an offering to sell
electricity that is consumed in California shall disclose its
electricity sources for the previous calendar year.
   (b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional materials that are distributed to consumers by either
printed or electronic means, including the retail supplier's Internet
Web site, if one exists, except that advertisements and notices in
general circulation media shall not be subject to this requirement.
   (c) The disclosures required by this section shall be made
annually to end-use consumers of the offered electricity. The annual
disclosure shall be made by the end of the first complete billing
cycle for the third quarter of the year, and shall be consistent with
information provided to the Energy Commission pursuant to Section
398.5.
   (d) The disclosures required by this section shall be made
separately for each offering made by the retail supplier.
   (e) On or before January 1, 1998, the Energy Commission shall
specify guidelines for the format and means for disclosure required
by Section 398.3 and this section, based on the requirements of this
article and subject to public hearing.
   (f) The costs of making the disclosures required by this section
shall be considered to be generation related.
   (g) The disclosures required by this section shall comply with the
following:
   (1) A retail supplier's disclosure of its electricity sources
shall be expressed as a percentage of annual sales derived from each
of the following categories:
   (A) Unspecified sources of electricity.
   (B) Specific purchases.
   (2) A retail supplier's disclosure of its electricity sources
shall also separately identify total California system electricity,
which is the sum of all in-state generation and net electricity
imports by fuel type.
   (h) Each of the categories specified in subdivision (g) shall be
additionally identified as a percentage of annual sales that is
derived from the following fuels or sources of energy:
   (1) Coal.
   (2) Large hydroelectric (greater than 30 megawatts).
   (3) (A) Natural gas used for conventional powerplant and peaker
plant `generation.
   (B) Natural gas used for combined heat and power system
generation.
   (4) Nuclear.
   (5) Eligible renewable energy resources pursuant to the California
Renewables Portfolio Standard Program (Article 16 (commencing with
Section 399.11)), including any of the following:
   (A) Biomass and biowaste.
   (B) Geothermal.
   (C) Eligible hydroelectric.
   (D) Solar.
   (E) Wind.
   (6) Other categories as determined by the Energy Commission.
   (i) All electricity sources disclosed as specific purchases shall
meet the requirements of subdivision (c) of Section 398.2.
   (j) Specific purchases identified pursuant to this section shall
be from sources connected to the Western Electricity Coordinating
Council interconnected grid.
   (k) Compliance with this section by a local publicly owned
electric utility shall constitute compliance with paragraph (2) of
subdivision (b) of Section 387.
   (l) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.