Amended in Assembly April 27, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1330


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 amended, 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 bybegin insert community choice aggregators, electric service providers,end insert electricalbegin delete corporationsend deletebegin insert corporations,end insert 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 eachbegin delete electric utilityend deletebegin insert retail seller of electricityend insert 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 thebegin delete totalend deletebegin insert minimumend insert amount of incremental energy savings achieved in any given year amounts to not less than specified amounts.begin insert The bill would require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities Commission, to adopt a cost limitation, as necessary, for each retail seller of electricity for meeting the energy efficiency resource standard.end insert The bill would require the Public Utilities Commission tobegin delete 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.end deletebegin insert establish an annual percentage of peak demand that shall be achieved through event-based demand response and would require that annual percentage to be achieved by retail sellers of electricity.end insert The bill would require thatbegin delete not less than 25% ofend delete the energy savings ofbegin delete an electric utilityend deletebegin insert a retail seller of electricityend insert or gas utilitybegin insert firstend insert come from disadvantaged communities identified by the California Environmental Protection Agency, as specified. The bill would require eachbegin delete electric utilityend deletebegin insert retail seller of electricityend insert and gas utility to annually file with the State Energy Resources Conservation and Development Commission, a report thatbegin delete analysesend deletebegin insert analyzesend insert the energy savings achieved by the utility during the prior year, divided by the energybegin delete consumptionend deletebegin insert retail salesend insert 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 tobegin delete anend deletebegin insert a community choice aggregator, electric service provider,end insert electricalbegin delete corporationend deletebegin insert corporation,end insert 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:

P4    1

SECTION 1.  

Chapter 7 (commencing with Section 8400) is
2added to Division 4.1 of the Public Utilities Code, to read:

3 

4Chapter  7. Energy Efficiency
5

 

6

8400.  

(a) This chapter shall be known, and may be cited, as
7the Energy Efficiency Resource Standard Act.

8(b) The commission, in consultation with the Energy
9Commission, shall be responsible for supervising the
10implementation of this chapter bybegin delete electrical corporationsend delete
11begin insert community choice aggregators, as defined in Section 331.1, electric
12service providers, electrical corporations,end insert
and gas corporations.

13(c) The governing board of each local publicly owned electric
14utility and local publicly owned gas utility, in consultation with
15the Energy Commission, shall be responsible for the
16implementation of this chapter by the utility.

17(d) The Energy Commission shall, in a public stakeholder
18engagement process, determine how the energy savings goals of
19this chapter are measured and reported.

20

8401.  

For purposes of this chapter, the following terms have
21the following meanings:

begin delete

22(a) “Electric utility” means an electrical corporation or local
23publicly owned electric utility serving retail end-use customers in
24California.

end delete
begin insert

25(a) “Energy savings” means a reduction in electricity use in
26kilowatthours or in fossil fuel use in thermal units.

end insert

27(b) “Gas utility” means a gas corporation or local publicly owned
28gas utility serving retail end-use customers in California.

begin insert

29(c) “Retail seller” has the same meaning as that term is defined
30in Section 399.12, except that retail seller includes local publicly
31owned electric utilities.

end insert
32

8405.  

begin deleteEach electric utility end deletebegin insert(a)end insertbegin insertend insertbegin insertEach retail seller of electricity end insert
33shall establish an energy efficiency resource standard that shall
P5    1increase the amount of energy efficiencybegin delete resourcesend deletebegin insert resources,
2inclusive of all of its energy efficiency activities,end insert
of the utility so
3that thebegin delete totalend deletebegin insert minimumend insert amount of incremental energy savings
4achieved in any given year amounts to not less than 112 percent
5ofbegin insert itsend insert totalbegin delete system electricity consumptionend deletebegin insert retail sales of electricityend insert
6 by 2020, and not less than 2 percent ofbegin insert itsend insert totalbegin delete electricity
7consumptionend delete
begin insert retail sales of electricityend insert by 2025. The total amount
8of incremental energy savings shall be determined based upon the
9averagebegin insert retail sales ofend insert electricitybegin delete consumptionend delete of the immediately
10preceding three years, measured in gigawatthours per year based
11on comparison of the Energy Commission’s integrated energy
12policy reportsbegin delete and energy policy reviewsend delete made pursuant to Section
1325302 of the Public Resources Code.

begin insert

14(b) The Energy Commission, in consultation with the
15commission, shall adopt a cost limitation, as necessary, for each
16retail seller of electricity, for meeting the requirements of this
17section.

end insert
18

8406.  

begin insert(a)end insertbegin insertend insertThe commission shallbegin delete require that Pacific Gas and
19Electric Company, Southern California Edison Company, and San
20Diego Gas and Electric Company jointly achieve a reduction in
21nonemergency, event-based demand response of 7 percent by 2020
22and 10 percent by 2025, as measured by the sum of their peak
23demands.end delete
begin insert establish an annual percentage of peak demand that
24shall be achieved through event-based demand response.end insert

begin insert

25(b) The commission shall require that community choice
26aggregators, electric service providers, and electrical corporations
27achieve the annual percentage established in subdivision (a).

end insert
begin insert

28(c) The governing board of each local publicly owned electric
29utility shall be responsible for achieving the annual percentage
30established in subdivision (a).

end insert
31

8410.  

Each gas utility shall establish an energy efficiency
32resource standard that shall increase the amount of energy
33efficiencybegin delete resourcesend deletebegin insert resources, inclusive of all of its energy
34efficiency activities,end insert
of the utility so that thebegin delete totalend deletebegin insert minimumend insert amount
35of incremental energy savings achieved in any given year amounts
36to not less than three-fourths of 1 percent ofbegin insert itsend insert total system natural
37gasbegin delete consumptionend deletebegin insert retail salesend insert by 2020, and not less than 1 percent
38ofbegin insert itsend insert system natural gasbegin delete consumptionend deletebegin insert retail salesend insert by 2025. The
39total amount of incremental energy savings shall be determined
40based upon the averagebegin insert retail sales ofend insert natural gasbegin delete consumptionend delete of
P6    1the immediately preceding three years, measured in millions of
2therms per year based on comparison of the Energy Commission’s
3integrated energy policy reportsbegin delete and energy policy reviewsend delete made
4pursuant to Section 25302 of the Public Resources Code.

5

8415.  

(a) begin deleteNot less than 25 percent of the end deletebegin insertThe end insertenergy savings
6ofbegin delete an electric utilityend deletebegin insert a retail seller of electricityend insert or gas utility shall
7begin insert firstend insert come from disadvantaged communities identified by the
8California Environmental Protection Agency pursuant to Section
939711 of the Health and Safety Code.

10(b) Eachbegin delete electric utilityend deletebegin insert retail seller of electricityend insert and gas utility
11shall annually file with the Energy Commission, a report that
12begin delete analysesend deletebegin insert analyzesend insert the energy savings achieved by the utility during
13the prior year, divided by the energybegin delete consumptionend deletebegin insert retail salesend insert in
14the immediately preceding year.

15

SEC. 2.  

No reimbursement is required by this act pursuant to
16Section 6 of Article XIII B of the California Constitution because
17a local agency or school district has the authority to levy service
18charges, fees, or assessments sufficient to pay for the program or
19level of service mandated by this act or because costs that may be
20incurred by a local agency or school district will be incurred
21because this act creates a new crime or infraction, eliminates a
22crime or infraction, or changes the penalty for a crime or infraction,
23within the meaning of Section 17556 of the Government Code, or
24changes the definition of a crime within the meaning of Section 6
25of Article XIII B of the California Constitution.



O

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