BILL NUMBER: AB 1330 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 27, 2015
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 by
community choice aggregators, electric service providers,
electrical corporations 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 retail seller of
electricity 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
minimum amount of incremental energy savings
achieved in any given year amounts to not less than specified
amounts. 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. 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. 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. The bill would
require that not less than 25% of the energy
savings of an electric utility a retail
seller of electricity or gas utility first come from
disadvantaged communities identified by the California Environmental
Protection Agency, as specified. The bill would require each
electric utility retail seller of electricity
and gas utility to annually file with the State Energy
Resources Conservation and Development Commission, a report that
analyses analyzes the energy savings
achieved by the utility during the prior year, divided by the energy
consumption retail sales 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
a community choice aggregator, electric service
provider, electrical corporation
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 community
choice aggregators, as defined in Section 331.1, electric service
providers, 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.
(a) "Energy savings" means a reduction in electricity use in
kilowatthours or in fossil fuel use in thermal units.
(b) "Gas utility" means a gas corporation or local publicly owned
gas utility serving retail end-use customers in California.
(c) "Retail seller" has the same meaning as that term is defined
in Section 399.12, except that retail seller includes local publicly
owned electric utilities.
8405. Each electric utility (a)
Each retail seller of electricity shall
establish an energy efficiency resource standard that shall increase
the amount of energy efficiency resources
resources, inclusive of all of its energy efficiency activities,
of the utility so that the total
minimum amount of incremental energy savings achieved in any
given year amounts to not less than 11/2 percent of its
total system electricity consumption retail
sales of electricity by 2020, and not less than 2 percent of
its total electricity consumption
retail sales of electricity by 2025. The total
amount of incremental energy savings shall be determined based upon
the average retail sales of 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.
(b) The Energy Commission, in consultation with the commission,
shall adopt a cost limitation, as necessary, for each retail seller
of electricity, for meeting the requirements of this section.
8406. (a) 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. establish an annual percentage of
peak demand that shall be achieved through event-based demand
response.
(b) The commission shall require that community choice
aggregators, electric service providers, and electrical corporations
achieve the annual percentage established in subdivision (a).
(c) The governing board of each local publicly owned electric
utility shall be responsible for achieving the annual percentage
established in subdivision (a).
8410. Each gas utility shall establish an energy efficiency
resource standard that shall increase the amount of energy efficiency
resources resources, inclusive of all of its
energy efficiency activities, of the utility so that the
total minimum amount of incremental
energy savings achieved in any given year amounts to not less than
three-fourths of 1 percent of its total system natural gas
consumption retail sales by 2020, and
not less than 1 percent of its system natural gas
consumption retail sales by 2025. The total
amount of incremental energy savings shall be determined based upon
the average retail sales of 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
The energy savings of an electric utility
a retail seller of electricity or gas utility shall
first 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 retail seller of
electricity and gas utility shall annually file with the
Energy Commission, a report that analyses
analyzes the energy savings achieved by the utility during the
prior year, divided by the energy consumption
retail sales 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.