BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 343|
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THIRD READING
Bill No: SB 343
Author: De León (D)
Amended: 5/31/11
Vote: 21
SENATE ENERGY, UTIL. & COMM. COMMITTEE : 8-2, 5/3/11
AYES: Padilla, Berryhill, Corbett, De León, DeSaulnier,
Pavley, Rubio, Wright
NOES: Fuller, Strickland
NO VOTE RECORDED: Simitian
SENATE APPROPRIATIONS COMMITTEE : 6-3, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
SUBJECT : Energy: efficiency
SOURCE : Author
DIGEST : This bill requires each locally owned electric
utility to dedicate a portion of the moneys collected to a
program from energy efficiency retrofits of commercial
buildings.
ANALYSIS :
Existing law
1.Sets targets for the state's utilities, in procuring
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energy, to first meet their resource needs through
cost-effective energy efficiency and demand reduction
resources before renewable and conventional generation.
2.Requires the California Public Utilities Commission
(CPUC) to require each investor owned utility (IOU) to
assess as a ratepayer surcharge, commonly known as the
Public Goods Charge (PGC), $228 million per year for
energy efficiency and conservation activities, $65.5
million for renewable energy, and $62.5 million per year
for research, development and demonstration. This law
sunsets January 1, 2012
3.Requires the $65.5 million of the PGC for renewable
energy to be deposited into the Renewable Resources Trust
Fund for renewable energy resources programs administered
by the California Energy Resources Conservation and
Development Commission (CEC).
4.Requires publicly owned utilities to collect a PGC and
gives them discretion to use it to fund programs for any
or all of energy efficiency, renewable energy, energy
research, and rate discounts and other services for
low-income customers.
5.Requires the CPUC, by December 31, 2020, to ensure that
low-income customers eligible for reduced rates are given
the opportunity to participate in low-income energy
efficiency programs, including customers occupying
apartments or similar multiunit residential structures,
and requires IOUs to make all reasonable efforts to
coordinate ratepayer-funded programs with other energy
efficiency programs.
This bill requires each locally owned electric utility to
dedicate a portion of the moneys collected to a program
from energy efficiency retrofits of commercial buildings.
Background
Commercial Buildings
Commercial buildings consume more electricity than any
other end-use in California and provide a major opportunity
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for achieving energy savings, especially old buildings that
do not meet the state's Title 24 energy efficiency
standards first adopted in 1982. AB 758 (Skinner, 2011)
required the CEC, by March 1, 2010, to open a proceeding to
develop a comprehensive program to achieve greater energy
savings in the state's residential and nonresidential
building stock. To date, the CEC has authorized pilot
programs, including commercial building retrofits, to
determine how best to achieve cost-effective savings.
Information from CEC states that its plan will incorporate
the commercial building energy use disclosure requirements
mandated by AB 1103 (Saldana, 2007), for which implementing
regulations are pending, as well as a system of energy
assessments and ratings for commercial buildings that are
being developed. In September 2009, the CPUC opened a
proceeding to investigate the ability of utilities to
provide energy efficiency financing options to implement
the CEC's AB 758 program, as required by that legislation
(D.09-09-047). The CPUC expects a comprehensive energy
efficiency financing report to be released by the end of
June.
PGC for Energy Efficiency
The $228 million in PGC funds for energy efficiency is
retained by the IOUs and is the base of the budgets for
their energy efficiency programs approved in three-year
cycles by the CPUC and supplemented with funding from
rates. The IOUs' total annual energy efficiency program
cost is about $1 billion. According to the CPUC, about 29
percent of IOU energy efficiency budgets for the 2010-2012
program cycle are for commercial buildings with a variety
of offerings for whole-building retrofits.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in
thousands)
Major Provisions 2011-12 2012-13 2013-14
Fund
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Energy efficiency Unknown costs, likely in the millions
General *
projects
* Renewable Resources Trust Fund.
SUPPORT : (Verified 5/26/11)
- - - -
OPPOSITION : (Verified 5/26/11)
California Municipal Utilities Association
ARGUMENTS IN SUPPORT : According to the author's office,
the intent of this bill is to require that a portion of all
funding for energy efficiency under existing programs be
dedicated to energy efficiency retrofits for commercial
buildings.
RM:rm 5/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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