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, |
| | | | | |2015) |
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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