BILL ANALYSIS Ó
AB 793
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Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
AB 793
(Quirk) - As Introduced February 25, 2015
SUBJECT: Energy efficiency
SUMMARY: AB 793 would require that weatherization programs for
low-income customers, administered by electrical and gas
corporations, include home energy management technology and
education programs on how to use advanced meters. Specifically,
this bill:
a)Modifies the existing statutory definition of weatherization
to include "home energy management technology."
b)Defines "home energy management technology" and "home energy
monitor."
c)Requires the California Public Utilities Commission (CPUC) to
require that electrical corporations develop and implement a
plan to educate customers on how to use advanced meters to
understand and control electricity use.
d)Specifies that rebates become available no later than June 30,
2016, and specifies that the amount of the rebate be equal to
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an unspecified percent of the retail value of the product or
service.
EXISTING LAW:
1)Requires electrical corporations to first meet its unmet
resource needs through all available energy efficiency and
demand reduction resources that are cost effective, reliable,
and feasible. (Public Utilities Code 454.5 (b)(9)(C)
2)Requires the PUC to establish energy efficiency targets for
electrical and gas corporations. (Public Utilities Code
454.55 and 454.56)
3)Requires electric and gas corporations to provide
weatherization assistance and specifies that weatherization
means attic insulation, caulking, weatherstripping, a low flow
showerhead, water heater blanket, and door and building
envelope repairs to reduce air infiltration for low-income
customers. (Public Utilities Code 2790 (a), (b))
4)Specifies that weatherization may also include other building
conservation measures, energy-efficient appliances, and energy
education programs determined by the commission to be feasible
and considering the cost effectiveness of the measures as a
whole and the policy of reducing energy-related hardships
facing low-income households. (Public Utilities Code 2790 (c))
FISCAL EFFECT: Unknown.
COMMENTS:
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1)Author's Statement. AB 793 will help to increase the
deployment of energy management technologies, which will
provide customers with a better understanding of their energy
usage so that they may make informed decisions about how to
optimize their energy consumption and reduce their energy
bills.
As part of each IOUs smart grid deployment plan, the CPUC has
authorized the installation of advanced metering
infrastructure (AMI or smart meters) as a key component in
transforming California's distribution grid into an
intelligent, integrated network enabled by modern information
and control system technologies. However, in order to take
full advantage of their smart meter's capabilities, the
customer must acquire energy management technologies, such as
an energy monitoring device. These devices allow the customer
to access their smart meter's Home Area Network (HAN) function
so that they may monitor, in near real-time, their energy
consumption measured continuously by the smart meter, and in
the future, receive and respond to load control signals (also
referred to as demand response events).
Unfortunately, while millions of smart meters have been
installed throughout California, the deployment and use of
energy management technologies has not kept pace. AB 793
would incentivize the adoption of these technologies by
requiring the IOUs to implement an outreach plan to educate
their residential and small business customers about these
technologies.
2)Realizing the benefits of Smart Grids. According to the
CPUC's most recent annual Smart Grid report (published in
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January 2010),<1> the primary driver of Smart Grid development
continues to be providing customers with tools to better
understand and manage their energy use. Customers are
provided with access to their energy usage data, as well as a
variety of web-based tools to understand how they can use
energy more efficiently and at a lower cost. The IOUs have
been pursuing both pilot activities and full deployment of HAN
technologies. HAN, integrated with the smart meters, allows
connected customer devices (primarily In Home Displays and
thermostats) to provide information and control. Although the
smart meters installed by the utilities provide HAN
capabilities, the utilities are also developing support for
third-party, Internet-based solutions for energy management.
In the same report, the CPUC states that "HAN customer uptake
has been slow. PG&E is still in the pilot phase with its HAN
offerings. San Diego Gas and Electric has deployed HAN
devices (programmable communicating thermostats or PCTs) as
part of its air conditioner cycling program. Southern
California Edison is primarily working with third parties on
Wi-Fi-connected solutions that don't necessarily involve the
use of the smart meter HAN."
3)CPUC decision limits use of HANs. In the recent PUC decision
reauthorizing energy efficiency budgets, the PUC limited
consideration of HANs and similar behavioral programs. First
by not directing that the technical, economic, and market
potential of behavior based programs be evaluated in the
CPUC's studies to assess the market potential of energy
efficiency measures. Second, by maintaining a fixed, five
percent participation rate for behavior initiatives in utility
2015 energy efficiency programs.
4)Are HANs helpful to energy efficiency? Various studies see
---------------------------
<1>
http://www.cpuc.ca.gov/NR/rdonlyres/BCDBFE10-E89E-4933-8457-EA6B6
E3D5D52/0/SmartGridAnnualReport2014Final011215.pdf
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benefits from zero to as a high as eight percent reduction in
energy consumption. Additionally, studies see benefits in
reducing demand during peak demand periods. While the limited
data on these devices shows varying degrees of benefits, all
studies show some benefit.
5)Real time energy data? When it comes to making a purchase,
almost nothing is more opaque than electricity and natural gas
purchases from a utility. When someone purchases gasoline
they see a real time measurement of how much gasoline is
delivered to the vehicle and how much it costs. Same thing
with bananas at the grocery store - weigh the bananas and
multiply them by the cents per pound. Electric and gas
customers don't get real time information. Usage and charges
are delivered monthly, weeks or days after the end of the
billing period. The billing information cannot provide help
to customers who would like to modify their usage, if they
can, to reduce their energy bill. Yet, this information is
critical to knowing when usage is being charged at a higher
rate under the inclining block rate structure that is used in
California.
HANs provide a way for customers who are interested in knowing
how much energy they have used in real time and give those
customers an opportunity to slow down on their consumption, if
they choose to and can.
6)What about non-HAN technologies? Other technologies are
available or soon to be available that will deliver similar or
the same information in real time without using Smart Meter
data. AB 793 does not exclude consideration of those other
technologies. However, the current definition in the bill
could be interpreted to limit use of those other technologies.
The author may wish to consider clarifying amendments to
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ensure inclusion of other energy management techniques and
services.
7)Rebates and incentives. The current version of AB 793 leaves
blanks for specifying incentive levels for energy management
technologies.
The author may wish to strike the section that would specify
an amount for a rebate and replace it with language that will
allow the CPUC to develop an appropriate incentive program.
8)Support and Opposition.
The Office of Ratepayer Advocates supports AB 793 if amended
to require an integrated approach to promote in-home energy
management solutions using the CPUC's existing statewide
education and outreach program.
9)Suggested amendments.
Specifically, these proposed amendments are:
2790. (c)"Weatherization" may also include other building
conservation measures, home 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
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the measures as a whole and the policy of reducing
energy-related hardships facing low-income households.
(e) For purposes of this section, the following terms have the
following meanings:
(1) " Home energy Energy management technology" is a product ,
or service, or software that allows a customer to better
understand and manage energy use in the customer's home or
business. and may include, but is not limited to, a home
energy monitor.
(2) "Home energy monitor" is a device that is able to provide
household electricity consumption in real-time by connecting
to an advanced meter equipped with home area network
functionality.
SEC. 2. Section 8365 is added to the Public Utilities Code,
to read:
8365. (a) The commission shall require each electrical
corporation to do the following:
(1) Develop and implement a plan by June 30, 2016, to educate
its residential customers and small business customers whose
homes or places of business are equipped with an advanced
meter about how they can use data from the advanced meter to
better understand and control their use of electricity. The
plan shall include notification of the rebate incentive
program developed pursuant to paragraph (2).
(2) Develop a rebate program no later than June 30, 2016, to
reimburse a residential customer or small business customer
who purchases energy management technology for use in the
customer's home or place of business. The rebate shall be an
amount equal to ___ percent of the retail value of the product
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or service, not to exceed ___. Develop a program no later than
June 30, 2016 to provide incentives to a residential or
business customer who acquires an energy management technology
for use in the customer's home or place of business. For
energy management technology programs administered by
electrical corporations, or third-parties or local governments
under contract with electric corporations to administer energy
efficiency programs, such programs shall allow third parties
or local governments to apply for incentives on behalf of
customers. Electric corporations shall work with third
parties, local governments, and other interested parties in
developing such programs.
(3) Electric corporations shall establish incentive amounts at
a level necessary to encourage adoption of energy management
technologies that demonstrate the ability to achieve
progressively higher savings.
(4) Electric corporations shall annually report to the
commission on actual customer savings resulting from the
education and incentive program established pursuant to this
section.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Energy management technology" is a product , or service ,
or software that allows a customer to better understand and
manage electricity use in the customer's home or place of
business . and may include, but is not limited to, an energy
monitor.
(2) "Energy monitor" is a device that is able to provide
electricity consumption in real-time or near real-time by
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connecting to an advanced meter equipped with home area
network functionality.
REGISTERED SUPPORT / OPPOSITION:
Support
Environmental Defense Fund
Mission Data (if amended)
Office of Ratepayer Advocates (if amended)
Opposition
None on file
Analysis Prepared by:Sue Kateley / U. & C. / (916) 319-2083
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