BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 793


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          793 (Quirk)


          As Amended August 31, 2015


          Majority vote


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          |ASSEMBLY:  | 77-0 | (May 7, 2015) |SENATE: |38-0  | (September 2,   |
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          Original Committee Reference:  U. & C.


          SUMMARY:  This bill requires electrical corporations to develop  
          and implement educational plans and incentive programs for  
          customers to control their electricity use and acquire energy  
          management technology.  Specifically, this bill: 


          1)Requires the California Public Utilities Commission (CPUC) to  
            require electrical corporations to:  


             a)   Develop an incentive program by June 30, 2016, for  
               customers to acquire energy management technology for use  
               in their homes or businesses.  Incentives must be  
               established at a level necessary to encourage adoption of  
               technologies that allow a customer to achieve progressively  
               higher savings.  










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             b)   Develop and implement a plan by June 30, 2016, to  
               educate customers to better understand and control their  
               electricity use and notify them of the incentive program.


             c)   Annually report on actual customer savings resulting  
               from the education plan and incentive program.


          1)Requires the CPUC to require electrical and gas corporations  
            to include home energy management technology in weatherization  
            programs for low-income customers.


          2)Defines home energy management technology as a product,  
            service, or software that allows a customer to better  
            understand and manage energy use in the customer's home or  
            place of business, as appropriate.


          The Senate amendments: 


          1)Revises the definition of an energy management technology from  
            "is" to "may include" product, service, or software that  
            allows a customer to better understand and manage energy use  
            in the customer's home.


          2)Modifies language directing the CPUC to direct investor owned  
            utilities (IOUs) to implement a program to help customers  
            understand how to use energy management technologies and  
            instead direct the CPUC to direct an energy efficiency program  
            administrator to implement this program.


          3)Modifies the program start date from June 30, 2016, to January  
            1, 2017, and modifies the education program start date from  
            June 30, 2016, to September 30, 2017.


          4)Relocates the provisions of this bill related to the programs  








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            from Public Utilities Code Section 8365 to Public Utilities  
            Code Section 717.


          5)Make non-substantive editorial changes.


          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 Section 454.5 (b)(9)(C)


          2)Requires the CPUC to establish energy efficiency targets for  
            electrical and gas corporations.  (Public Utilities Code  
            Section 454.55 and 454.56)


          3)Requires electric and gas corporations to provide  
            weatherization assistance, and specifies that weatherization  
            means attic insulation, caulking, weather-stripping, a low  
            flow showerhead, water heater blanket, and door and building  
            envelope repairs to reduce air infiltration for low-income  
            customers.  (Public Utilities Code Section 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 Section  
            2790 (c))


          FISCAL EFFECT:  Minor, absorbable costs for the CPUC to oversee  
          electrical and gas corporation's energy efficiency rebates and  
          marketing/outreach programs, and analyze and evaluate new  
          weatherization measures.








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          COMMENTS:  


          1)Purpose.  According to the author, this bill 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. 


            The author states, "While millions of smart meters have been  
            installed throughout California, the deployment and use of  
            energy management technologies has not kept pace.  This bill  
            will incentivize the adoption of these technologies by  
            requiring the IOUs to implement an outreach plan to educate  
            their residential and small business customers." 


          2)Background.  Electrical corporations are IOUs regulated by the  
            CPUC.  Electrical corporations are required to meet unmet  
            resource needs by first employing all available energy  
            efficiency and demand reduction strategies that are  
            cost-effective, reliable and feasible.  The CPUC establishes  
            energy efficiency targets for electrical and gas corporations.
            SB 17 (Padilla), Chapter 327, Statutes of 2009, established  
            the smart grid policy of the state, and required the CPUC to  
            determine the requirements for a smart grid deployment plan  
            and each electrical corporation to develop and submit a smart  
            grid deployment plan to CPUC for approval by July 1, 2011.


            The term smart grid refers to a distribution system that  
            allows for the flow of information from a customer's meter in  
            two directions, and modernizes the electric distribution and  
            transmission grid.  In order for a customer to take full  
            advantage of their smart meter's capabilities, the customer  
            must acquire energy management technologies so they may  
            monitor their energy consumption in real time and respond to  
            local control signals.








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          3)Weatherization.  Electric and gas corporations are required to  
            provide weatherization assistance for low-income customers.   
            Weatherization typically means attic insulation, caulking,  
            weather-stripping, etc.  Weatherization also may include other  
            building conservation measures, energy-efficient appliances,  
            and energy education programs.  This bill expressly includes  
            home energy management technology as part of weatherization  
            incentive and assistance programs.


          4)Program administration.  The CPUC supervises the  
            administration of energy efficiency programs administered by  
            IOUs.  Recently the CPUC allowed community choice aggregators  
            and regional energy networks to also administer these  
            programs.  As with the IOU-administered programs, the CPUC is  
            evaluating the cost-effectiveness of administering programs  
            through community choice aggregators and regional energy  
            networks through ongoing evaluations.


          Analysis Prepared by:  Sue Kateley / U. & C. / (916) 319-2083     
            FN: 0002014