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 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 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 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 community choice aggregator that administers energy efficiency programs, electrical utility, and gas utility, as defined, meeting specified energy delivered thresholds, to establish an energy efficiency resource standard that increases the amount of energy efficiency resources, as defined, of the community choice aggregator, electricalbegin insert utility,end insert 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 electrical utility, gas utility, and community choice aggregator for meeting the energy efficiency resource standard. The bill would require the State Energy Resources Conservation and Development Commission to establishbegin insert anend insert annualbegin delete percentages of peak demand reductions
to be achieved through event-based demand response in consideration of specified matter.end deletebegin insert demand response procurement goal, as specified.end insert The bill would require the Public Utilities Commission to require electrical corporations achievebegin delete theseend deletebegin insert theend insert annualbegin delete percentagesend deletebegin insert procurement goalend insert 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 achievingbegin delete theseend deletebegin insert
theend insert annualbegin delete percentages.end deletebegin insert procurement goal.end insert The bill would require that benefits, including energy savings achieved, within disadvantaged communities identified by the California Environmental Protection Agency, as specified, be given the highest priority for energy efficiency activities undertaken pursuant to the bill’s requirements. The bill would require each 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 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 Public Utilities Commission is a crime.
Because a violation of an order or decision of the Public Utilities 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:
Chapter 7 (commencing with Section 8400) is
2added to Division 4.1 of the Public Utilities Code, to read:
3
(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 by electrical corporations and gas
11corporations. The governing board of a community choice
12aggregator, in consultation with the commission, shall be
13responsible for implementation of this chapter if the community
14choice aggregator administers energy efficiency programs for its
15customers pursuant to Section 381.1.
16(c) The governing board of each local publicly owned electric
17utility
and local publicly owned gas utility, in consultation with
18the Energy Commission, shall be responsible for the
19implementation of this chapter by the utility.
P5 1(d) The Energy Commission, in consultation with the
2commission, shall, in a public stakeholder engagement process,
3determine how the energy savings goals of this chapter are
4measured and reported.
For purposes of this chapter, the following terms have
6the following meanings:
7(a) “Electrical utility” means an electrical corporation or local
8publicly owned electric utility.
9(b) “Energy efficiency resources” mean activities that reduce
10demand for energy from supply-side resources.
11(c) “Energy savings” means a reduction in electricity use in
12kilowatthours or in fossil fuel use in thermal units.
13(d) “Gas utility” means a gas corporation or local publicly owned
14gas utility serving retail end-use customers in
California.
(a) An electrical utility or community choice aggregator
16is exempt from the energy efficiency resource standard
17requirements of this chapter if its average annual retail sales of
18electricity in the immediately preceding three years was less than
19or equal to 1,000 gigawatthours. If three years of data are not
20available, the best data available shall be used to determine if sales
21exceed this threshold.
22(b) A gas utility is exempt from the energy efficiency resource
23standard requirements of this chapter if its average annual retail
24sales of natural gas in the immediately preceding three years was
25less than or equal to 50 million therms. If three years of data are
26not
available, the best data available shall be used to determine if
27sales exceed this threshold.
(a) Each electrical utility shall establish an energy
29efficiency resource standard that shall increase the amount of
30energy efficiency resources in its service territory, inclusive of all
31of its energy efficiency
activities within its service territory, funded
32by its customers, with the exception of energy efficiency activities
33admistered by a community choice aggregator within the
34community choice aggregator’s service territory pursuant to Section
35381.1, so that the minimum amount of incremental energy savings
36achieved in any given year amounts to not less than 11⁄2 percent
37of its total retail sales of electricity by 2020, and not less than 2
38percent of its total annual retail sales of electricity by 2025. The
39total amount of incremental energy savings shall be determined
40based upon the average retail sales of electricity in the immediately
P6 1preceding three years, measured in gigawatthours per year based
2on annual comparison of the Energy Commission’s integrated
3energy policy reports made pursuant to Section
25302 of the Public
4Resources Code or a similar public report, excluding the measured
5or reliably estimated sales of electricity associated with electric
6vehicle charging and net, round-trip electricity losses associated
7with electricity consumer-sited energy storage.
8(b) Each community choice aggregator that elects to administer
9energy efficiency programs for its customers pursuant to Section
10381.1 shall establish an energy efficiency resource standard that
11shall increase the amount of energy efficiency resources in its
12service territory, inclusive of all of its energy efficiency activities,
13so that the minimum amount of incremental energy savings
14achieved in any given year amounts to not less than 11⁄2 percent
15of its total retail sales of electricity
by 2020, and not less than 2
16percent of its total annual retail sales of electricity by 2025. The
17total amount of incremental energy savings shall be determined
18based upon the community choice aggregator’s average retail sales
19of electricity of the immediately preceding three years, measured
20in gigawatthours per year based on comparison of the Energy
21Commission’s integrated energy policy reports made pursuant to
22Section 25302 of the Public Resources Code or a
similar public
23report, including electricity sales by electric service providers and
24excluding the measured or reliably estimated sales of electricity
25associated with electric vehicle charging and net, round-trip
26electricity losses associated with electricity consumer-sited energy
27storage. If a community choice aggregator has fewer than three
28years of retail sales of electricity, the total amount of incremental
29energy savings shall be determined based on the total annual retail
30sales of electricity of the immediately preceding year or two.
31(c) The Energy Commission, in consultation with the
32commission, in a public stakeholder engagement process, shall
33adopt a cost limitation, as necessary, for each electric utility and
34community choice aggregator subject to this chapter for meeting
35the requirements of this
section.
(a) By July 31, 2017, the Energy Commission, in
37consultation with the commission, shall establishbegin delete annual begin insert an annual procurement
38percentages of peak demand reductionsend delete
39goal for demand responseend insert that shall be achieved by each electrical
40utility and community choicebegin delete aggregator throughend deletebegin insert aggregator, as
P7 1appropriate. The demand response procurement goals shall support
2renewable energy integration, greenhouse gas reductions, and
3grid
reliability through supply-sideend insert event-based demand response
4with consideration of the role ofbegin insert clean technologies,end insert electricity
5consumer-sited energy storage, electric vehicle charging, and
6distributed generationbegin delete resources, with a timetable for achieving begin insert
resources.end insert
7those peak demand reductions.end delete
8(b) The commission shall require that
electrical corporations
9achieve the annualbegin delete percentageend deletebegin insert procurement goalend insert established in
10subdivision (a).
11(c) The governing board of each local publicly owned electric
12utility, and community choice aggregator that elects to administer
13energy efficiency programs for its customers pursuant to Section
14381.1, shall be responsible for achieving the annualbegin delete percentageend delete
15begin insert procurement goalend insert established in subdivision (a).
(a) Each gas utility shall establish an energy efficiency
17resource standard that shall increase the amount of energy
18efficiency resources, inclusive of all of its energy efficiency
19activities, of the utility so that the minimum amount of incremental
20energy savings achieved within its service territory in any given
21year amounts to not less than three-fourths of 1 percent of its total
22
annual system natural gas retail sales by 2020, and not less than 1
23percent of its system annual natural gas retail sales by 2025. The
24total amount of incremental energy savings shall be determined
25based upon the average retail sales of natural gas within its service
26territory in the immediately preceding three years, measured in
27millions of therms per year based on an annual comparison of the
28Energy Commission’s integrated energy policy reports made
29pursuant to Section 25302 of the Public Resources Code or a
30similar public report, excluding the measured or reliably estimated
31sales of natural gas associated with natural gas vehicle fueling
32during the preceding three years.
33(b) The Energy Commission, in consultation with the
34commission, in a public stakeholder engagement process, shall
35adopt a cost limitation, as
necessary for each gas utility subject to
36this chapter for meeting the requirements of this section.
(a) Benefits, including energy savings achieved, within
38disadvantaged communities, as identified by the California
39Environmental Protection Agency pursuant to Section 39711 of
40the Health and Safety Code, shall be given the highest priority for
P8 1energy efficiency activities undertaken by electrical utilities, gas
2utilities, and community choice aggregators pursuant to this
3chapter.
4(b) The Legislature recognizes that the Energy Savings
5Assistance Program (ESAP), formerly known as the Low Income
6Energy Efficiency Program, for low-income households carried
7out pursuant to Section 2790 provides not only energy benefits,
8but also non-energy benefits such as health,
comfort, and safety
9benefits, which helps reduce the hardships facing low-income
10households. The Legislature recognizes the importance of those
11non-energy benefits. Therefore, nothing in this chapter results in
12a reduction in energy related services that provide non-energy
13benefits to low-income households pursuant to ESAP.
14(c) Each electrical utility and gas utility shall annually file with
15the Energy Commission, a report that analyzes the energy savings
16achieved within the utility’s service territory during the prior year,
17divided by the energy retail sales in the immediately preceding
18year. An electrical utility is not required to report energy savings
19achieved by community choice aggregators within its service
20territory.
21(d) Each community choice aggregator subject to an
energy
22efficiency resource standard pursuant to this chapter shall annually
23file with the Energy Commission a report that analyzes the energy
24savings achieved by the community choice aggregator within its
25service territory during the prior year, divided by its energy retail
26sales in the immediately preceding year.
No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29a local agency or school district has the authority to levy service
30charges, fees, or assessments sufficient to pay for the program or
31level of service mandated by this act or because costs that may be
32incurred by a local agency or school district will be incurred
33because this act creates a new crime or infraction, eliminates a
34crime or infraction, or changes the penalty for a crime or infraction,
35within the meaning of Section 17556 of the Government Code, or
36changes the definition of a crime within the meaning of Section 6
37of Article XIII B of the California Constitution.
O
95