BILL NUMBER: AB 2017	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Muratsuchi

                        FEBRUARY 20, 2014

   An act to add Chapter 8.1 (commencing with Section 2846) to Part 2
of Division 1 of the Public Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2017, as introduced, Muratsuchi. Energy: financing: rental
properties.
   (1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations and gas corporations, as defined. Existing law
authorizes the Public Utilities 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 authorize the commission to require an electrical
or gas corporation with 250,000 or more service connections to
develop and implement an on-bill repayment program providing
financial assistance for energy efficiency, renewable energy,
distributed generation, energy storage, or demand response
improvements for rental properties by allowing for the repayment of
the financial assistance to be included in the utility customer's
utility bill. Because a violation of any part of any order, decision,
rule, direction, demand, or requirement of the Public Utilities
Commission is a crime, this bill would impose a state-mandated local
program.
   (2) 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Chapter 8.1 (commencing with Section 2846) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:
      CHAPTER 8.1.  ENERGY IMPROVEMENTS FOR RENTAL PROPERTIES


   2846.  For the purposes of this chapter, the following the terms
have the following meanings:
   (a) "OBR improvement" means an eligible energy improvement
financed through an OBR obligation.
   (b) "OBR obligation" means an obligation to repay a financing
provided to a utility customer by an OBR partner pursuant to an
on-bill repayment program approved by the commission.
   (c) "OBR partner" means a person or entity providing financing for
eligible energy improvements pursuant to an on-bill repayment
program. OBR partners include, but are not limited to, banks, savings
and loan institutions, credit unions, or project developers.
Financing may be provided in the form of a loan, lease, power
purchase agreement, energy service agreement, or other financing
structure approved by the commission.
   (d) "On-bill repayment program" or "OBR program" means a program,
which may include one or more pilot test programs, approved by the
commission that enables financing of eligible energy improvements for
rental properties to be repaid through OBR repayment charges to be
associated with the same utility account or accounts where savings
are anticipated to be realized as a result of the improvements.
   (e) "OBR repayment charge" means a charge, constituting repayment
of all or a portion of any OBR obligation, that is included on a
utility bill in accordance with a commission-approved utility tariff.

   (f) "Utility" means an electrical corporation or gas corporation
that develops, or is required to develop, an on-bill repayment
program.
   2846.1.  (a) The commission may require an electrical corporation
or gas corporation with 250,000 or more service connections in the
state to develop and implement one or more on-bill repayment programs
for eligible energy efficiency, renewable energy, distributed
generation, energy storage, or demand response improvements.
   (b) A utility shall not implement the on-bill repayment program
without the express approval of the commission.
   (c) The commission shall supervise on-bill repayment programs to
ensure that the programs are administered in compliance with the
terms approved by the commission.
   2846.2.  In approving an OBR program, the commission shall
consider whether the program contains appropriate rules and criteria
including all of the following:
   (a) (1) Eligibility criteria for the types of energy improvements
and technologies that would be financed by the OBR program.
   (2) The commission may include nonenergy reducing improvements as
an eligible improvement for financing if it deems appropriate.
   (b) Rules prohibiting the unauthorized removal from the rental
property of an OBR improvement.
   (c) Rules for project inspection and verification services to
ensure the cost-effectiveness of the OBR program.
   (d) Requirements regarding the investment quality and performance
of the financing instruments for the OBR program.
   (e) Consumer protections for low-income residential customers,
including protections that prevent increases in the number of service
terminations, a loan loss reserve, bill neutrality, prepayment
options, and other mechanisms deemed appropriate by the commission.
  SEC. 2.  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.