BILL ANALYSIS �
AB 270
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CONCURRENCE IN SENATE AMENDMENTS
AB 270 (Bradford)
As Amended August 22, 2013
Majority vote
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|ASSEMBLY: |70-0 |(May 16, 2013) |SENATE: |37-0 |(September 3, |
| | | | | |2013) |
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Original Committee Reference: U. & C.
SUMMARY : Requires public information on ratepayer-funded energy
efficiency expenditures. Specifically, this bill requires the
California Public Utilities Commission (PUC) to:
a)Order Investor-Owned Utilities (IOUs) to establish, by June 1,
2014, a publicly available Internet Web site containing
specified information regarding ratepayer-funded energy
efficiency programs while maintaining customer
confidentiality.
b)Include in its annual report to the Legislature on its effort
to identify and eliminate ratepayer-funded energy efficiency
programs that duplicate programs administered by other
specified state agencies.
The Senate amendments make technical amendments to prevent
redundancy and the potential for inadvertent modification of
existing law related to personal information protections.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
1)Author's statement . "The state currently lacks a
comprehensive framework that fully coordinates these
activities to help ensure that the state's goals are being
achieved. California's energy efficiency programs need
collaboration, accountability, and transparency to make sure
we are on track to achieve energy and climate goals for energy
efficiency. We need to know if California has adequate
monitoring of programs and results. We need to know if state
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agencies and departments are coordinating and collaborating
successfully to make sure our energy efficiency goals will be
met. Ratepayers deserve to have confidence that their money is
being used in the right way."
2)The loading order . California statute requires IOUs to "first
meet its unmet resource needs through all available energy
efficiency and demand reduction resources that are cost
effective, reliable, and feasible." This is referred to as
"the loading order," meaning that new energy resources are
procured in the following order: a) energy efficiency and
demand response; b) renewable energy resources; and c) clean
and efficient fossil generation. As a result of this
prioritization, many programs have been funded toward
achieving greater levels of energy efficiency.
3)Ratepayers have paid $15 billion (so far) on energy
efficiency . In response to a directive in the 2012-13 Budget
Package, the Legislative Analyst's Office (LAO) released a
report in December 2012 titled "Energy Efficiency and
Alternative Energy Programs." The report explored over a
dozen major programs that are intended to support the
development of energy efficiency and alternative energy in the
state. It found that over the past 10 to 15 years, the state
has spent a combined total of approximately $15 billion on
such efforts, the majority of which has been funded by utility
ratepayers.
In November 2012, PUC adopted 2013-14 budgets for
ratepayer-funded energy efficiency programs at $1 billion per
year over the two year program.
4)Where did the money go ? There is no public database showing
where energy efficiency improvements are occurring, how much
was spent to acquire the improvements, or the results of those
improvements. Lack of public information prevents assessment
of which programs are working well, need improvement, should
be discontinued, or are duplicative with other programs. Lack
of information constrains program evaluation to PUC, the
consultants working for PUC, or the utilities and causes
delays in assessing programs until well after the program
funds have been spent.
5)PUC proposed expenditure for an Energy Data Center . PUC
currently has a rulemaking underway to consider whether
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establishing an Energy Data Center is in the public interest.
The goal of the research center would be to encourage
"independent research and analysis of current state,
Commission and utility programs using customer-specific data
but publishing results of that data in an aggregated and
anonymized form that protects customers' privacy."
In PUC's proceeding, PUC is seeking comments from intervenors
on whether the Energy Data Center should be funded by
cap-and-trade auction revenue administrative funds, electric
program investment charge funds, energy efficiency evaluation,
measurement, and verification funds, a new source from utility
customers.
PUC's proposed 2013-14 Energy Efficiency Budget allocates $1.4
million to energy efficiency program data management.
In a recent Assembly Utilities and Commerce Committee hearing,
held on March 6, 2013, the Committee found that ratepayers may
have funded at least three comprehensive energy efficiency
databases already.
6)Public accountability . A recent Department of Finance (Office
of State Audits and Evaluations) audit of PUC which found
"significant weaknesses within PUC's budget operations which
compromise its ability to prepare and present reliable and
accurate budget information." It would be useful to have
public accountability as to the use and status of the
ratepayer funds allocated to energy efficiency programs.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0002327