BILL NUMBER: SB 343 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 10, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator De León
FEBRUARY 15, 2011
An act to add Section 25744.5 to the Public Resources Code, to
amend Section 382 of, and add Section 385.1 to, the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 343, as amended, De León. Energy: efficiency.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations and gas corporations, as defined. The Public Utilities
Act requires the PUC to review and adopt a procurement plan for each
electrical corporation in accordance with specified elements,
incentive mechanisms, and objectives. The act requires that an
electrical corporation's proposed procurement plan include certain
elements, including a showing that the electrical corporation will
first meet its unmet needs through all available energy efficiency
and demand reduction resources that are cost effective, reliable, and
feasible. Existing law requires the PUC, in consultation with the
State Energy Resources Conservation and Development Commission
(Energy Commission), to identify all potentially achievable
cost-effective electricity efficiency savings and to establish
efficiency targets for electrical corporations to achieve pursuant to
their procurement plan. Existing law requires the PUC, in
consultation with the Energy Commission, to identify all potentially
achievable cost-effective natural gas efficiency savings and to
establish efficiency targets for a gas corporation to achieve.
This bill would require the PUC to open a new proceeding or expand
the scope of an existing proceeding to consider establishment of a
program by electrical corporations and gas corporations to provide
on-bill financing for energy efficiency retrofits.
Existing law requires the PUC Public
Utilities Commission (PUC) to require the state's 3 largest
electrical corporations to identify a separate electrical rate
component to fund programs that enhance system reliability and
provide in-state benefits. This rate component is a nonbypassable
element of local distribution and collected on the basis of usage.
Existing PUC resolutions refer to the nonbypassable rate component as
a "public goods charge." The public goods charge moneys are
collected to support cost-effective energy efficiency and
conservation activities, public interest research and development not
adequately provided by competitive and regulated markets, and
renewable energy resources. Moneys collected through the public goods
charge for cost-effective energy efficiency and conservation
activities are utilized by electrical corporations for programs
subject to supervision by the PUC. Moneys collected through the
public goods charge for renewable energy resources are deposited in
the Renewable Resources Trust Fund, administered by the State
Energy Resources Conservation and Development
Commission (Energy Commission) . Existing law requires
that 79% of the moneys collected pursuant to the renewable energy
public goods charge, as defined, be deposited into the Emerging
Renewable Resources Account within the fund to be used for a
multiyear, consumer-based program to foster the development of
emerging renewable technologies in distributed generation
applications.
This bill would require that an unspecified amount of the moneys
collected through the renewable energy public goods charge and
deposited into the Emerging Renewable Resources Account be used by
the Energy Commission for a program for energy efficiency retrofits
for commercial buildings.
This bill would require electrical corporations to dedicate a
portion of the moneys collected pursuant to the public goods charge
for energy efficiency programs for low-income electricity customers
to a program of grants to be made available on a competitive basis to
community-based organizations for purposes of energy efficiency
retrofits.
Existing law requires each local publicly owned electric utility,
as defined, to establish a nonbypassable, usage based charge on local
distribution service to fund cost-effective demand-side management
services to promote energy efficiency and energy conservation, new
investment in renewable energy resources and technologies, research,
development, and demonstration programs for the public interest, and
services provided for low-income electricity customers.
This bill would require each local publicly owned electric utility
to dedicate a portion of the that
moneys collected for cost-effective demand-side management
services to promote energy efficiency and energy conservation
to a program for energy efficiency retrofits of commercial
buildings.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25744.5 is added to the Public Resources Code,
to read:
25744.5. Notwithstanding Section 25744, the commission shall,
upon appropriation by the Legislature, expend ____ dollars
($____) of the funding allocated to the Emerging Renewable Resources
Account to a program for energy efficiency retrofits for commercial
buildings.
SEC. 2. Section 382 of the Public Utilities Code is amended to
read:
382. (a) Programs provided to low-income electricity customers,
including, but not limited to, targeted energy-efficiency services
and the California Alternate Rates for Energy program shall be funded
at not less than 1996 authorized levels based on an assessment of
customer need.
(b) In order to meet legitimate needs of electric and gas
customers who are unable to pay their electric and gas bills and who
satisfy eligibility criteria for assistance, recognizing that
electricity is a basic necessity, and that all residents of the state
should be able to afford essential electricity and gas supplies, the
commission shall ensure that low-income ratepayers are not
jeopardized or overburdened by monthly energy expenditures. Energy
expenditure may be reduced through the establishment of different
rates for low-income ratepayers, different levels of rate assistance,
and energy efficiency programs.
(c) Nothing in this section shall be construed to prohibit
electric and gas providers from offering any special rate or program
for low-income ratepayers that is not specifically required in this
section.
(d) Beginning in 2002, an assessment of the needs of low-income
electricity and gas ratepayers shall be conducted periodically by the
commission with the assistance of the Low-Income Oversight Board.
The assessment shall evaluate low-income program implementation and
the effectiveness of weatherization services and energy efficiency
measures in low-income households. The assessment shall consider
whether existing programs adequately address low-income electricity
and gas customers' energy expenditures, hardship, language needs, and
economic burdens.
(e) The commission shall, by not later than December 31, 2020,
ensure that all eligible low-income electricity and gas customers are
given the opportunity to participate in low-income energy efficiency
programs, including customers occupying apartments or similar
multiunit residential structures. The commission and electrical
corporations and gas corporations shall make all reasonable efforts
to coordinate ratepayer-funded programs with other energy
conservation and efficiency programs and to obtain additional federal
funding to support actions undertaken pursuant to this subdivision.
These programs shall be designed to provide long-term reductions
in energy consumption at the dwelling unit based on an audit or
assessment of the dwelling unit, and may include improved insulation,
energy efficient appliances, measures that utilize solar energy, and
other improvements to the physical structure.
(f) Each electrical corporation shall dedicate a portion of the
moneys collected for purposes of meeting the requirements of this
section to a program of grants to be made available on a competitive
basis to community-based organizations for purposes of energy
efficiency retrofits.
(g) The commission shall allocate funds necessary to meet the
low-income objectives in this section.
SEC. 3. Section 385.1 is added to the Public Utilities Code, to
read:
385.1. Each local publicly owned electric utility shall dedicate
a portion of the moneys collected for cost-effective
demand-side management services to promote energy efficiency and
energy conservation pursuant to Section 385 to a
program for energy efficiency retrofits of commercial buildings.
SEC. 4. The Public Utilities Commission shall
open a new proceeding or expand the scope of an existing proceeding
to consider establishment of a program by electrical corporations and
gas corporations to provide on-bill financing for energy efficiency
retrofits.