BILL NUMBER: AB 1330 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2015
AMENDED IN ASSEMBLY JUNE 2, 2015
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 governing board of a community
choice aggregator that administers energy efficiency programs, as
specified, in consultation with the Public Utilities Commission,
would be responsible for implementation of the act by that entity.
The bill would require the State Energy Resources Conservation
and Development Commission, in a public stakeholder engagement
process, process and in consultation with the
Public Utilities Commission, to determine how the energy
savings goals of the act are measured and reported. The act would
require each retail seller of electricity
community choice aggregator that administers energy efficiency
programs, electrical utility, and gas utility, as defined,
to meeting specified energy delivered
thresholds, to establish an energy efficiency resource standard
that shall increase increases the
amount of energy efficiency resources
resources, as defined, of the community choice
aggregator, electrical or gas utility so that the minimum
amount of incremental energy savings achieved within its service
territory in any given year amounts to not less than specified
amounts. The bill would require the State Energy Resources
Conservation and Development Commission, in a public
stakeholder process and in consultation with the Public
Utilities Commission, to adopt a cost limitation, as necessary, for
each retail seller of electricity electrical
utility, gas utility, and community choice aggregator for
meeting the energy efficiency resource standard. The bill would
require the Public Utilities State Energy
Resources Conservation and Development Commission to establish
an annual percentage
percentages of peak demand reductions that shall
to be achieved through event-based demand
response and would require that annual percentage to be
achieved by retail sellers of electricity. in
consideration of specified matter. The bill would require the Public
Utilities Commission to require electrical corporations achieve these
annual percentages and would require the governing board of each
local publicly owned electric utility and community choice aggregator
subject to the bill's requirements to be responsible for achieving
these annual percentages. The bill would require that
the energy savings of a retail seller of electricity or gas utility
first come from benefits, including energy savings
achieved, within disadvantaged communities identified by the
California Environmental Protection Agency, as specified.
specified, be given the highest priority for energy
efficiency activities undertaken pursuant to the bill's requirements.
The bill would require each retail seller of
electricity electrical utility and gas utility
to annually file with the State Energy Resources Conservation and
Development Commission, a report that analyzes the energy savings
achieved by the utility within the utility's
service territory during the prior year, divided by the energy
retail sales in the immediately preceding year.
Under existing law, a violation of any order, decision, rule,
direction, demand, or requirement of the commission
Public Utilities Commission is a crime.
Because a violation of an order or decision of the
commission Public Utilities Commission
implementing the bill's requirements with respect to a
community choice aggregator, electric service provider,
an 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 community choice aggregators, as defined in
Section 331.1, electric service providers, electrical corporations,
electrical corpora tions and gas
corporations. The governing board of a community
choice aggregator, in consultation with the commission, shall be
responsible for implementation of this chapter if the community
choice aggregator administers energy efficiency programs for its
customers pursuant to Section 381.1.
(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 Commission, in
consultation with the 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) "Electrical utility" means an electrical corporation or local
publicly owned electric utility.
(b) "Energy efficiency resources" mean activities that reduce
demand for energy from supply-side resources.
(a)
(c) "Energy savings" means a reduction in electricity
use in kilowatthours or in fossil fuel use in thermal units.
(b)
(d) "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.
8402. (a) An electrical utility or community choice aggregator is
exempt from the energy efficiency resource standard requirements of
this chapter if its average annual retail sales of electricity in the
immediately preceding three years was less than or equal to 1,000
gigawatthours. If three years of data are not available, the best
data available shall be used to determine if sales exceed this
threshold.
(b) A gas utility is exempt from the energy efficiency resource
standard requirements of this chapter if its average annual retail
sales of natural gas in the immediately preceding three years was
less than or equal to 50 million therms. If three years of data are
not available, the best data available shall be used to determine if
sales exceed this threshold.
8405. (a) Each retail seller of electricity
electrical utility shall establish an energy efficiency
resource standard that shall increase the amount of energy efficiency
resources, resources in its service
territory, inclusive of all of its energy efficiency
activities, of the utility activities within its
service territory, funded by its customers, with the exception of
energy efficiency activities admistered by a community choice
aggregator within the community choice aggregator's service territory
pursuant to Section 381.1, so that the minimum amount of
incremental energy savings achieved in any given year amounts to not
less than 11/2 percent of its total retail sales of electricity by
2020, and not less than 2 percent of its total annual
retail sales of electricity by 2025. The total amount of incremental
energy savings shall be determined based upon the average retail
sales of electricity of in the
immediately preceding three years, measured in gigawatthours per year
based on annual comparison of the Energy Commission's
integrated energy policy reports made pursuant to Section 25302 of
the Public Resources Code. Code or a similar
public report, excluding the measured or reliably estimated sales of
electricity associated with electric vehicle charging and net,
round-trip electricity losses associated with electricity
consumer-sited energy storage.
(b) Each community choice aggregator that elects to administer
energy efficiency programs for its customers pursuant to Section
381.1 shall establish an energy efficiency resource standard that
shall increase the amount of energy efficiency resources in its
service territory, inclusive of all of its energy efficiency
activities, so that the minimum amount of incremental energy savings
achieved in any given year amounts to not less than 11/2 percent of
its total retail sales of electricity by 2020, and not less than 2
percent of its total annual retail sales of electricity by 2025. The
total amount of incremental energy savings shall be determined based
upon the community choice aggregator's average retail sales of
electricity of the immediately preceding three years, measured in
gigawatthours per year based on comparison of the Energy Commission's
integrated energy policy reports made pursuant to Section 25302 of
the Public Resources Code or a similar public report, including
electricity sales by electric service providers and excluding the
measured or reliably estimated sales of electricity associated with
electric vehicle charging and net, round-trip electricity losses
associated with electricity consumer-sited energy storage. If a
community choice aggregator has fewer than three years of retail
sales of electricity, the total amount of incremental energy savings
shall be determined based on the total annual retail sales of
electricity of the immediately preceding year or two.
(b)
(c) The Energy Commission, in consultation with the
commission, in a public stakeholder engagement process,
shall adopt a cost limitation, as necessary, for each retail
seller of electricity, electric utility and community
choice aggregator subject to this chapter for meeting the
requirements of this section.
8406. (a) The commission shall establish an annual
percentage By July 31, 2017, the Energy Commission, in
consultation with the commission, shall establish annual percentages
of peak demand reductions that shall be achieved by each
electrical utility and community choice aggregator through
event-based demand response. response with
consideration of the role of electricity consumer-sited
energy storage, electric vehicle charging, and distributed generation
resources, with a timetable for achieving those peak demand
reductions.
(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 utility, and community choice
aggregator that elects to administer energy efficiency programs for
its customers pursuant to Section 381.1, shall be
responsible for achieving the annual percentage established in
subdivision (a).
8410. (a) Each gas utility shall establish
an energy efficiency resource standard that shall increase the amount
of energy efficiency resources, inclusive of all of its energy
efficiency activities, of the utility so that the minimum amount of
incremental energy savings achieved within its service territory
in any given year amounts to not less than three-fourths of 1
percent of its total annual system natural gas retail
sales by 2020, and not less than 1 percent of its system annual
natural gas retail sales by 2025. The total amount of
incremental energy savings shall be determined based upon the average
retail sales of natural gas of within its
service territory in the immediately preceding three years,
measured in millions of therms per year based on an annual
comparison of the Energy Commission's integrated energy policy
reports made pursuant to Section 25302 of the Public Resources
Code. Code or a similar public report,
excluding the measured or reliably estimated sales of
natural gas associated with natural gas vehicle fueling
during the preceding three years.
(b) The Energy Commission, in consultation with the commission, in
a public stakeholder engagement process, shall adopt a cost
limitation, as necessary for each gas utility subject to this chapter
for meeting the requirements of this section.
8415. (a) The energy savings of a retail seller of
electricity or gas utility shall first come from disadvantaged
communities Benefits, including energy savings
achieved, within disadvantaged communities, as identified by
the California Environmental Protection Agency pursuant to Section
39711 of the Health and Safety Code. Code,
shall be given the highest priority for energy efficiency activities
undertaken by electrical utilities, gas utilities, and
community choice aggregators pursuant to this chapter.
(b) The Legislature recognizes that the Energy Savings Assistance
Program (ESAP), formerly known as the Low Income Energy Efficiency
Program, for low-income households carried out pursuant to Section
2790 provides not only energy benefits, but also non-energy benefits
such as health, comfort, and safety benefits, which helps reduce the
hardships facing low-income households. The Legislature recognizes
the importance of those non-energy benefits. Therefore, nothing in
this chapter results in a reduction in energy related services that
provide non-energy benefits to low-income households pursuant to
ESAP.
(b)
(c) Each retail seller of electricity
electrical utility and gas utility shall
annually file with the Energy Commission, a report that analyzes the
energy savings achieved by the utility within
the utility's service territory during the prior year, divided
by the energy retail sales in the immediately preceding year.
An electrical utility is not required to report energy
savings achieved by community choice aggregators within its service
territory.
(d) Each community choice aggregator subject to an energy
efficiency resource standard pursuant to this chapter shall annually
file with the Energy Commission a report that analyzes the energy
savings achieved by the community choice aggregator within its
service territory during the prior year, divided by its energy 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.