BILL NUMBER: SB 998	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator De León
   (Coauthor: Senator Correa)

                        FEBRUARY 6, 2012

   An act to add Chapter 7.6 (commencing with Section 2833) to Part 2
of Division 1 of the Public Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 998, as introduced, De León. Energy efficiency and renewable
energy on-bill repayment programs.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law authorizes the commission to fix the rates
and charges for every public utility, and requires that those rates
and charges be just and reasonable.
   This bill would require the commission to require an electrical
corporation to develop and implement an on-bill repayment program, as
defined, for eligible energy efficiency and renewable energy
investments, as defined, on terms that the commission determines are
just and reasonable. The bill would require the commission ensure
that any on-bill repayment program approved by the commission include
certain elements. The bill would require the electrical corporation
to treat any resulting shortfall in payment for electrical or gas
service consistent with the rules established by the commission for a
customer's failure to pay for electrical or gas service.
   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.  Chapter 7.6 (commencing with Section 2833) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:
      CHAPTER 7.6.  ENERGY EFFICIENCY AND RENEWABLE ENERGY ON-BILL
REPAYMENT PROGRAMS


   2833.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Eligible energy efficiency investment" means an expenditure
for energy efficiency retrofits or improvements that would be
expected to result in an annual reduction in electricity and gas
billings that equals or exceeds the sum of the annual payments for
the investment and meet the requirements as established by the
commission in consultation with the energy commission.
   (b) "Eligible renewable energy or distributed generation
investment" means an expenditure for an eligible renewable energy
resource or distributed generation system that meet the requirements
as established by the commission in consultation with the energy
commission. For these purposes, "eligible renewable energy resource"
means an eligible renewable energy resource pursuant to the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1), a solar
water heating system, or a solar heating collector as defined in
Section 2861.
   (c) "Fixed" includes, but is not limited to, systems attached to a
residential, commercial, industrial, agricultural, or other real
property pursuant to a power purchase agreement or lease between the
owner of the improvement and the owner of the real property if the
power purchase agreement or lease contains all of the following:
   (1) The term of the power purchase agreement or lease is at least
the same as the term of the on-bill repayment program.
   (2) The owner of the attached improvement agrees to install,
maintain, and monitor the improvement for the entire term of the
power purchase agreement or lease.
   (3) The owner of the attached improvement is not permitted to
remove the system prior to completion of the term of the on-bill
repayment program provided the payment obligations of the homeowner
are met.
   (4) The right to receive electricity from the system, through a
power purchase agreement or lease or the right to the system itself,
is tied to the ownership of the real property and is required to be
automatically transferred with the title to the real property whether
the title is transferred by voluntary sale, judicial or nonjudicial
foreclosure, or by any other means.
   (5) To ensure the property owner is guaranteed the electric power
from the system for the length of the on-bill repayment program, the
improvement cannot be removed if the owner of the real property or
the utility is performing its obligations under the contract.
   (d) "On-bill repayment program" means a system approved by the
commission that enables building owners or occupants to pay the costs
for financing eligible energy efficiency, renewable energy, or
distributed generation investments through their regular utility
billings for electric service, with the financing provided by third
parties, including banks, credit unions, solar service providers, or
other entities as approved by the commission.
   2834.  (a) The commission shall require an electrical corporation
to develop and implement on-bill repayment programs for eligible
energy efficiency and renewable energy investments on terms that the
commission determines are just and reasonable. An electrical
corporation may include marketing, contractor qualification, and
project inspection services in conjunction with an on-bill repayment
program, to be performed either by itself or third parties designated
by the electrical corporation and approved by the commission. The
commission, in consultation with the Energy Commission, may establish
marketing, contractor qualification, project inspection, or other
program requirements for on-bill repayment programs.
   (b) The commission shall ensure that any on-bill repayment program
approved by the commission includes all the following program
elements:
   (1) Repayment shall be pursuant to an agreed-upon schedule or
formula that is acceptable to the electrical corporation or its
agent, as approved by the commission, that provides the billing and
transfer services, the customer of the electrical corporation, and
the third party that provides financing for the eligible energy
efficiency and renewable energy investment. The payment shall be
listed as a separate line item on the electrical corporation's
billings. While it is the expectation that the finance charge
included in the electrical corporations's billings will be less than
the monetary savings that results from the eligible energy efficiency
and renewable energy investment, so that customers can knowingly
weigh the benefits of investments against anticipated savings, this
is not an absolute requirement and customers shall have the option to
pay more than the amount of savings, if offered by the third party,
and the customer determines that paying off the investment over a
shorter period of time is in the customer's best interest. The
payment schedule may be varied by season to correspond with the
anticipated seasonal savings.
   (2) The obligation to pay the costs of financing the energy
efficiency and renewable energy investments eligible for on-bill
repayment shall run with the real property upon which the improvement
is fixed and shall be part of the tariff rate for the property. The
commission shall require an electrical corporation or its agent, as
approved by the commission, to provide notice to the new customer, of
the estimated savings, the amount that remains owed, and the amount
of the charge included in the monthly or other periodic billing,
whenever a request is made to change the holder of the account to a
new customer. A realtor or real estate agent shall disclose the
amount that remains owed and the amount of the charge included in the
monthly or other periodic billing the buyer of a transaction
involving the property.
   (3) An electrical corporation or its agent, as approved by the
commission, may require that it be provided with a copy of loan
documents as a condition for providing on-bill repayment services.
   (4) Amounts collected by the electrical corporation or its agent,
as approved by the commission, on behalf of a third party that
provides financing for an eligible energy efficiency and renewable
energy investment shall be promptly remitted to the third party. If
the amount paid by the customer is less than the amount the customer
was billed, the amount paid by the customer shall be prorated in
proportion to the respective charges of the electrical corporation
and third-party billing schedule and the portion owed to the third
party shall be promptly remitted to the third party. The electrical
corporation may treat any shortfall in payment by the customer as a
failure to pay for electric service, consistent with the rules
established by the commission for a customer's failure to pay for
electrical service.
   (5) If a dispute arises between the customer and the third party
over the customer's obligation to pay the third party, the electrical
corporation may hold the moneys collected on behalf of the third
party in an interest bearing account, if instructed to do so by a
court having jurisdiction over the dispute, or by an arbitrator
appointed to resolve the dispute.
   (c) The electrical corporation shall treat any resulting shortfall
in payment for electrical or gas service consistent with the rules
established by the commission for a customer's failure to pay for
electrical or gas service.