BILL NUMBER: AB 1330 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 1, 2015
AMENDED IN SENATE AUGUST 18, 2015
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. Demand response.
Under existing law, the Public Utilities Commission (PUC)
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 State Energy Commission,
Resources Conservat ion and Development Commission
(Energy Commission), on or before November 1, 2007, and every 3
years thereafter, in consultation with the Public Utilities
Commission PUC 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, electrical utility, 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 establish an annual demand response procurement goal,
as specified. The bill would require the Public Utilities Commission
to require electrical corporations achieve the annual procurement
goal 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 the annual
procurement goal. 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.
This bill would require the PUC, in consultation with the Energy
Commission, electrical corporations, local publicly owned electric
utilities, and community choice aggregators, to establish an annual
procurement goal for demand response designed to lower peak demand,
with a timetable for achieving that percentage. The bill would
require the PUC to require electrical corporations to achieve the
annual procurement goal. The bill would specify that the governing
boards of local publicly owned electric utilities and certain
community choice aggregators are responsible for achieving the annual
procurement goal.
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:
SECTION 1. Chapter 7 (commencing with Section
8400) is added to Division 4.1 of the Public Utilities
Code , to read:
CHAPTER 7. DEMAND RESPONSE
8400. (a) By November 1, 2017, the commission, in consultation
with the Energy Commission, electrical corporations, local publicly
owned electric utilities, and community choice aggregators, in a
public process that allows input from other stakeholders, shall
establish an annual procurement goal for demand response designed to
lower peak demand, with a timetable for achieving that goal, that
shall support renewable energy resources integration, greenhouse gas
reductions, and grid reliability and that shall be achieved by each
electrical utility through supply-side demand response and types of
load-modifying demand response, including nonevent-based demand
response. In doing so, the commission shall consider the role of
clean technologies, such as consumer-sited energy storage, electric
vehicle charging, and distributed generation resources.
(b) The commission shall require electrical corporations to
achieve the procurement goal established pursuant to subdivision (a).
(c) The governing board of each local publicly owned electric
utility and each community choice aggregator that elects to
administer energy efficiency programs for its customers pursuant to
Section 381.1 shall be responsible for achieving the procurement goal
established pursuant to subdivision (a).
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.
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. 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, 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.
(c) "Energy savings" means a reduction in electricity use in
kilowatthours or in fossil fuel use in thermal units.
(d) "Gas utility" means a gas corporation or local publicly owned
gas utility serving retail end-use customers in California.
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 electrical utility 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 within its service territory, funded
by its customers, with the exception of energy efficiency activities
administered 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 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
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.
(c) The Energy Commission, in consultation with the commission, in
a public stakeholder engagement process, shall adopt a cost
limitation, as necessary, for each electric utility and community
choice aggregator subject to this chapter for meeting the
requirements of this section.
8406. (a) By July 31, 2017, the Energy Commission, in
consultation with the commission, shall establish an annual
procurement goal for demand response that shall be achieved by each
electrical utility and community choice aggregator, as appropriate.
The demand response procurement goals shall support renewable energy
integration, greenhouse gas reductions, and grid reliability through
supply-side event-based demand response with consideration of the
role of clean technologies, electricity consumer-sited energy
storage, electric vehicle charging, and distributed generation
resources.
(b) The commission shall require that electrical corporations
achieve the annual procurement goal established in subdivision (a).
(c) The governing board of each local publicly owned electric
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 procurement goal
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 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 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) 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, 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.
(c) Each electrical utility and gas utility shall annually file
with the Energy 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. 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.