Amended in Senate June 9, 2015

Amended in Assembly April 16, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 793

Introduced by Assembly Member Quirk

February 25, 2015

An act to amend Section 2790 of, and to add Section 8365 to, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 793, as amended, Quirk. Energy efficiency.

(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined. Existing law requires the commission to require an electrical or gas corporation to perform home weatherization services for low-income customers if the commission determines that a significant need for those services exists in the corporation’s service territory. For these purposes, existing law authorizes weatherization, where feasible, to include certain measures for a dwelling unit. Existing law also authorizes weatherization, for these purposes, to include other measures determined by the commission to be feasible, taking into consideration the cost-effectiveness of the measures as a whole and the policy of reducing energy-related hardships facing low-income households.

This bill would require weatherization, for the above-specified purposes, to include energy management technology, as defined, determined by the commission to be feasible, taking into consideration the above-described factors.

(2) Existing law requires the commission, by July 1, 2010, and in consultation with the State Energy Resources Conservation and Development Commission, the Independent System Operator, and other key stakeholders, to determine the requirements for a smart grid deployment plan consistent with specified policies and federal law. Existing law requires each electrical corporation, by July 1, 2011, to develop and submit a smart grid deployment plan to the commission for approval.

This bill would require the commission to require begin delete each electrical corporation end delete begin insert an energy efficiency program administrator end insert to develop and implement a plan to educate begin delete its end delete residential and business customers to better understand and control their use of electricity begin insert or gas, as provided end insert . The bill would require the commission to require begin delete each electrical corporation end delete begin insert an energy efficiency program administrator end insert to develop an incentive program to provide incentives to a residential or begin insert small or medium end insert business customer who acquires energy management technology for use in the customer’s home or place of business. The bill would require the commission to require begin delete each electrical corporation end delete begin insert the energy efficiency program administrator end insert to annually report to the commission on actual customer savings resulting from the education plan and the incentive program.

begin insert

The bill would require the commission to authorize an energy efficiency program administrator to count all energy savings achieved pursuant to the education plan and incentive program described above toward overall energy efficiency goals or targets established by the commission. The bill would require the commission, every 3 years, to evaluate the effectiveness of the education plan and the incentive program to determine whether they should continue.

end insert

(3) 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.

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.  

Section 2790 of the Public Utilities Code is
amended to read:

2790.  

(a) The commission shall require an electrical or gas
corporation to perform home weatherization services for
low-income customers, as determined by the commission under
Section 739, if the commission determines that a significant need
for those services exists in the corporation’s service territory, taking
into consideration both the cost-effectiveness of the services and
the policy of reducing the hardships facing low-income households.

(b) (1) For purposes of this section, “weatherization” may
include, where feasible, any of the following measures for any
dwelling unit:

(A) Attic insulation.

(B) Caulking.

(C) Weatherstripping.

(D) Low flow showerhead.

(E) Waterheater blanket.

(F) Door and building envelope repairs that reduce air
infiltration.

(2) The commission shall direct any electrical or gas corporation
to provide as many of these measures as are feasible for each
eligible low-income dwelling unit.

(c) “Weatherization” may also include other building
conservation measures, energy management technology,
energy-efficient appliances, and energy education programs
determined by the commission to be feasible, taking into
consideration for all measures both the cost-effectiveness of the
measures as a whole and the policy of reducing energy-related
hardships facing low-income households.

(d) Weatherization programs shall use the needs assessment
pursuant to Section 382.1 to maximize efficiency of delivery.

(e) For purposes of this section, “energy management
technology” begin delete is end delete begin insert may include end insert a product, service, or begin delete software, end delete begin insert software end insert
that allows a customer to better understand and manage energy
use in the customer’s home.

SEC. 2.  

Section 8365 is added to the Public Utilities Code, to
read:

8365.  

(a) The commission shall require begin delete each electrical
corporation to do end delete begin insert an energy efficiency program administrator, as
part of an existing statewide education and outreach program, to
do end insert the following:

(1) Develop and implement a plan by June 30, 2016, to educate
begin delete its end delete residential customers and business customers to better
understand and control their use of electricity begin insert or gas end insert . The plan
shall include begin insert , where applicable, end insert notification of the incentive
program developed pursuant to paragraph (2). begin insert The plan shall
identify the role of energy efficiency program administrators and
the statewide marketing administrator, demonstrate how efforts
will be coordinated, demonstrate how duplicative costs and
redundancies will be avoided, and consider existing educational
and outreach efforts. The statewide marketing administrator shall
be responsible for coordinating these efforts. end insert

(2) Develop a program no later than begin delete June 30, 2016 end delete begin insert January 1,
2017, within the energy efficiency program administrators
demand-side management programs authorized by the commission end insert ,
to provide incentives to a residential or begin insert small or medium end insert business
customer who acquires energy management technology for use in
the customer’s home or place of business. The begin delete electrical
corporation end delete begin insert energy efficiency program administrator end insert shall allow
third parties or local governments to apply for incentives on behalf
of customers. The begin delete electrical corporation end delete begin insert energy efficiency program
administrator end insert shall work with third parties, local governments,
and other interested parties in developing the program. begin delete The
electrical corporation shall establish incentive amounts at a level
necessary to encourage adoption of energy management
technologies that allow a customer to achieve progressively higher
savings. end delete begin insert The energy efficiency program administrator shall
establish incentive amounts based on all estimated or, where
available, actual energy savings and energy usage reductions from
installation or implementation of energy management technologies,
taking into consideration the overall reduction in normalized
metered energy consumption as a measure of energy savings. end insert

(3) Annually report to the commission on actual customer
savings resulting from the education plan and the incentive program
established pursuant to this section. begin insert The commission shall authorize
an energy efficiency program administrator to count all energy
savings achieved pursuant to the education plan and incentive
program toward overall energy efficiency goals or targets
established by the commission. Every three years, the commission
shall evaluate the effectiveness of the education plan and the
incentive program to determine whether they should continue. end insert

(b) For purposes of this section, “energy management
technology” begin delete is end delete begin insert may include end insert a product, service, or software that
allows a customer to better understand and manage electricity use
in the customer’s home or place of business.

SEC. 3.  

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.