BILL NUMBER: AB 1330 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bloom
FEBRUARY 27, 2015
An act to add Chapter 7 (commencing with Section 8400) to Division
4.1 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1330, as introduced, Bloom. Energy Efficiency Resource Standard
Act.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations, as defined, while local publicly owned electric
utilities, as defined, and local publicly owned gas utilities are
under the direction of their governing boards. The Public Utilities
Act requires the Public Utilities Commission to review and accept,
modify, or reject a procurement plan for each electrical corporation
in accordance with specified elements, incentive mechanisms, and
objectives, including a showing that the electrical corporation will
first meet its unmet needs through all available energy efficiency
and demand reduction resources that are cost effective, reliable, and
feasible. The act requires the Public Utilities Commission, in
consultation with the State Energy Resources Conservation and
Development Commission, to identify all potentially achievable
cost-effective electricity efficiency savings and to establish
efficiency targets for electrical corporations to achieve pursuant to
their procurement plan. The act requires the Public Utilities
Commission, in consultation with the State Energy Resources
Conservation and Development Commission, to identify all potentially
achievable cost-effective natural gas efficiency savings and to
establish efficiency targets for gas corporations to achieve and
requires that a gas corporation first meet its unmet resource needs
through all available gas efficiency and demand reduction resources
that are cost effective, reliable, and feasible.
Existing law requires each local publicly owned electric utility,
in procuring energy, to first acquire all available energy efficiency
and demand reduction resources that are cost effective, reliable,
and feasible. Existing law additionally requires each local publicly
owned electric utility to report annually to its customers and to the
State Energy Resources Conservation and Development Commission, its
investment in energy efficiency and demand reduction programs, which
report is to include a description of programs, expenditures, and
expected and actual energy savings results. Existing law requires a
local publicly owned electric utility to be responsible for
implementing an energy efficiency program that recognizes the
Legislature's intent to encourage energy savings and greenhouse gas
emission reductions in existing residential and nonresidential
buildings, and to include in the above-described report, its status
in implementing the program.
The existing Warren-Alquist State Energy Resources Conservation
and Development Act establishes the State Energy Resources
Conservation and Development Commission. Existing law requires the
Energy Commission, on or before November 1, 2007, and every 3 years
thereafter, in consultation with the Public Utilities Commission and
local publicly owned electric utilities, in a public process that
allows input from other stakeholders, to develop a statewide estimate
of all potentially achievable cost-effective electricity and natural
gas efficiency savings and establish statewide annual targets for
energy efficiency savings and demand reduction over 10 years.
This bill would enact the Energy Efficiency Resource Standard Act.
The Public Utilities Commission, in consultation with the State
Energy Resources Conservation and Development Commission, would be
responsible for supervising the implementation of the act by
electrical corporations and gas corporations. The governing board of
each local publicly owned electric utility and local publicly owned
gas utility, in consultation with the State Energy Resources
Conservation and Development Commission, would be responsible for the
implementation of the act by the utility. The bill would require the
State Energy Resources Conservation and Development Commission, in a
public stakeholder engagement process, to determine how the energy
savings goals of the act are measured and reported. The act would
require each electric utility and gas utility, as defined, to
establish an energy efficiency resource standard that shall increase
the amount of energy efficiency resources of the utility so that the
total amount of incremental energy savings achieved in any given year
amounts to not less than specified amounts. The bill would require
the Public Utilities Commission to require that Pacific Gas and
Electric Company, Southern California Edison Company, and San Diego
Gas and Electric Company jointly achieve a reduction in nonemergency,
event-based demand response of 7% by 2020 and 10% by 2025, as
measured by the sum of their peak demands. The bill would require
that not less than 25% of the energy savings of an electric utility
or gas utility come from disadvantaged communities identified by the
California Environmental Protection Agency, as specified. The bill
would require each electric utility and gas utility to annually file
with the State Energy Resources Conservation and Development
Commission, a report that analyses the energy savings achieved by the
utility during the prior year, divided by the energy consumption in
the immediately preceding year.
Under existing law, a violation of any order, decision, rule,
direction, demand, or requirement of the commission is a crime.
Because a violation of an order or decision of the commission
implementing the bill's requirements with respect to an electrical
corporation or gas corporation would be a crime, the bill would
impose a state-mandated local program by creating a new crime. By
placing additional requirements upon local publicly owned electric
and gas utilities, the 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 specified reasons.
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 7 (commencing with Section 8400) is added to
Division 4.1 of the Public Utilities Code, to read:
CHAPTER 7. ENERGY EFFICIENCY
8400. (a) This chapter shall be known, and may be cited, as the
Energy Efficiency Resource Standard Act.
(b) The commission, in consultation with the Energy Commission,
shall be responsible for supervising the implementation of this
chapter by electrical corporations and gas corporations.
(c) The governing board of each local publicly owned electric
utility and local publicly owned gas utility, in consultation with
the Energy Commission, shall be responsible for the implementation of
this chapter by the utility.
(d) The Energy Commission shall, in a public stakeholder
engagement process, determine how the energy savings goals of this
chapter are measured and reported.
8401. For purposes of this chapter, the following terms have the
following meanings:
(a) "Electric utility" means an electrical corporation or local
publicly owned electric utility serving retail end-use customers in
California.
(b) "Gas utility" means a gas corporation or local publicly owned
gas utility serving retail end-use customers in California.
8405. Each electric utility shall establish an energy efficiency
resource standard that shall increase the amount of energy efficiency
resources of the utility so that the total amount of incremental
energy savings achieved in any given year amounts to not less than
11/2 percent of total system electricity consumption by 2020, and not
less than 2 percent of total electricity consumption by 2025. The
total amount of incremental energy savings shall be determined based
upon the average electricity consumption of the immediately preceding
three years, measured in gigawatthours per year based on comparison
of the Energy Commission's integrated energy policy reports and
energy policy reviews made pursuant to Section 25302 of the Public
Resources Code.
8406. The commission shall require that Pacific Gas and Electric
Company, Southern California Edison Company, and San Diego Gas and
Electric Company jointly achieve a reduction in nonemergency,
event-based demand response of 7 percent by 2020 and 10 percent by
2025, as measured by the sum of their peak demands.
8410. Each gas utility shall establish an energy efficiency
resource standard that shall increase the amount of energy efficiency
resources of the utility so that the total amount of incremental
energy savings achieved in any given year amounts to not less than
three-fourths of 1 percent of total system natural gas consumption by
2020, and not less than 1 percent of system natural gas consumption
by 2025. The total amount of incremental energy savings shall be
determined based upon the average natural gas consumption of the
immediately preceding three years, measured in millions of therms per
year based on comparison of the Energy Commission's integrated
energy policy reports and energy policy reviews made pursuant to
Section 25302 of the Public Resources Code.
8415. (a) Not less than 25 percent of the energy savings of an
electric utility or gas utility shall come from disadvantaged
communities identified by the California Environmental Protection
Agency pursuant to Section 39711 of the Health and Safety Code.
(b) Each electric utility and gas utility shall annually file with
the Energy Commission, a report that analyses the energy savings
achieved by the utility during the prior year, divided by the energy
consumption in the immediately preceding year.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because 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.