Amended in Senate June 15, 2016

Amended in Senate September 4, 2015

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

California Legislature—2015–16 Regular Session

Assembly BillNo. 1330


Introduced by Assembly Member Bloom

February 27, 2015


begin delete An act to add Chapter 7 (commencing with Section 8400) to Division 4.1 of the Public Utilities Code, relating to energy. end deletebegin insertAn act to amend Sections 454.55 and 454.56 of the Public Utilities Code, relating to energy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1330, as amended, Bloom. begin deleteDemand response. end deletebegin insertEnergy efficiency.end insert

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Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical and gas corporations. Existing law requires the State Energy Resources Conservation and Development Commission, on or before November 1, 2017, and every third year thereafter, in collaboration with the PUC and local publicly owned electric utilities, to establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030. Existing law requires the PUC to identify all potentially achievable cost-effective electricity and natural gas efficiency savings and to establish efficiency targets for electrical and gas corporations to achieve.

end insert
begin insert

This bill would require the PUC to ensure that there are sufficient moneys available for electrical and gas corporations to meet those efficiency targets, and, if the PUC finds that additional moneys are necessary to meet those targets, to increase available moneys up to 20% per year until the moneys available for energy efficiency savings and demand reduction doubles from the amount authorized on January 1, 2016.

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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, are under the direction of their governing boards.

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The existing Warren-Alquist State Energy Resources Conservation and Development Act requires the State Energy Resources Conservation and Development Commission (Energy Commission), on or before November 1, 2007, and every 3 years thereafter, in consultation with the 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.

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This bill would require the PUC, in consultation with the Energy Commission, electrical corporations, local publicly owned electric utilities, and community choice aggregators, by June 30, 2018, to establish an annual goal for demand response, with a timetable for achieving that percentage. The bill would require the PUC to require electrical corporations to achieve the annual 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 goal.

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Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.

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Because a violation of an order or decision of the Public Utilities Commission implementing the bill’s requirements with respect to an electrical 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 utilities, the bill would impose a state-mandated local program.

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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.

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This bill would provide that no reimbursement is required by this act for specified reasons.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 454.55 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
2amended to read:end insert

3

454.55.  

(a) The commission, in consultation with the Energy
4Commission, shall identify all potentially achievable cost-effective
5electricity efficiency savings and establish efficiency targets for
6an electrical corporation to achieve, pursuant to Section 454.5,
7consistent with the targets established pursuant to subdivision (c)
8of Section 25310 of the Public Resources Code.

9(1) By July 1, 2018, and every four years thereafter, each
10electrical corporation shall report on its progress toward achieving
11the targets established pursuant to subdivision (a).

12(2) By July 1, 2019, and every four years thereafter, the
13commission shall, pursuant to Section 9795 of the Government
14Code, report to the Legislature on the progress toward achieving
15the targets established pursuant to subdivision (a). The commission
16shall include specific strategies for, and an update on, progress
17toward maximizing the contribution of electricity efficiency savings
18in disadvantaged communities identified pursuant to Section 39711
19of the Health and Safety Code.

20(b) (1) By December 31, 2023, the commission shall, in a new
21or existing proceeding, undertake a comprehensive review of the
22feasibility, costs, barriers, and benefits of achieving a cumulative
23doubling of energy efficiency savings and demand reduction by
242030 pursuant to subdivision (c) of Section 25310 of the Public
25Resources Code.

P4    1(2) Notwithstanding subdivision (c) of Section 25310 of the
2Public Resources Code, if the commission concludes the targets
3established for electrical corporations to achieve pursuant to
4subdivision (a) are not cost effective, feasible, or pose potential
5adverse impacts to public health and safety, the commission shall
6revise the targets to the level that optimizes the amount of energy
7efficiency savings and demand reduction and shall modify, revise,
8or update its policies as needed to address barriers preventing
9achievement of those targets.

begin insert

10
(c) The commission shall ensure that there are sufficient moneys
11available to electrical corporations to meet the efficiency targets
12established pursuant to subdivision (a). If the commission finds
13that additional moneys are necessary to meet those targets, the
14commission shall increase available moneys up to 20 percent per
15year until the moneys available for energy efficiency savings and
16demand reduction doubles from the amount authorized on January
171, 2016. This subdivision shall not be construed to authorize the
18commission to impose or increase any tax.

end insert
19begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 454.56 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
20to read:end insert

21

454.56.  

(a) The commission, in consultation with the Energy
22Commission, shall identify all potentially achievable cost-effective
23natural gas efficiency savings and establish efficiency targets for
24the gas corporation to achieve, consistent with the targets
25established pursuant to subdivision (c) of Section 25310 of the
26Public Resources Code.

27(b) A gas corporation shall first meet its unmet resource needs
28through all available natural gas efficiency and demand reduction
29resources that are cost effective, reliable, and feasible.

30(c) By July 1, 2018, and every four years thereafter, each gas
31corporation shall report on its progress toward achieving the targets
32established pursuant to subdivision (a).

33(d) By July 1, 2019, and every four years thereafter, the
34commission shall, pursuant to Section 9795 of the Government
35Code, report to the Legislature on the progress toward achieving
36the targets establish pursuant to subdivision (a). The commission
37shall include specific strategies for, and an update on, progress
38toward maximizing the contribution of energy efficiency savings
39in disadvantaged communities identified pursuant to Section 39711
40of the Health and Safety Code.

P5    1(e) Notwithstanding subdivision (c) of Section 25310 of the
2Public Resources Code, if the commission concludes in its review
3pursuant to paragraph (1) of subdivision (b) of Section 454.55 that
4the targets established for gas corporations to achieve pursuant to
5subdivision (a) are not cost effective, feasible, or pose potential
6adverse impacts to public health and safety, the commission shall
7revise the targets to the level that maximizes the amount of energy
8efficiency savings and demand reduction and shall modify, revise,
9or update its policies as needed to address barriers preventing
10achievement of those targets.

begin insert

11
(f) The commission shall ensure that there are sufficient moneys
12available to gas corporations to meet the efficiency targets
13established pursuant to subdivision (a). If the commission finds
14that additional moneys are necessary to meet those targets, the
15commission shall increase available moneys up to 20 percent per
16year until the moneys available for energy efficiency savings and
17demand reduction doubles from the amount authorized on January
181, 2016. This subdivision shall not be construed to authorize the
19commission to impose or increase any tax.

end insert
begin delete
20

SECTION 1.  

Chapter 7 (commencing with Section 8400) is
21added to Division 4.1 of the Public Utilities Code, to read:

22 

23Chapter  7. Demand Response
24

 

25

8400.  

(a) By June 30, 2018, the commission, in consultation
26with the Energy Commission, electrical corporations, local publicly
27owned electric utilities, and community choice aggregators, in a
28public process that allows input from other stakeholders, shall
29establish an annual goal for demand response, with a timetable for
30achieving that goal, that advances renewable energy resources
31integration, greenhouse gas reductions, and grid reliability and
32that shall be achieved by each electrical utility through supply-side
33demand response and types of load-modifying demand response.
34In doing so, the commission shall consider the role of clean
35technologies, such as consumer-sited energy storage, electric
36vehicle charging, and distributed generation resources.

37(b) The commission shall require electrical corporations to
38achieve the goal established pursuant to subdivision (a).

39(c) The governing board of each local publicly owned electric
40utility and each community choice aggregator that elects to
P6    1administer energy efficiency programs for its customers pursuant
2to Section 381.1 shall be responsible for achieving the goal
3established pursuant to subdivision (a).

4

SEC. 2.  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6a local agency or school district has the authority to levy service
7charges, fees, or assessments sufficient to pay for the program or
8level of service mandated by this act or because costs that may be
9incurred by a local agency or school district will be incurred
10because this act creates a new crime or infraction, eliminates a
11crime or infraction, or changes the penalty for a crime or infraction,
12within the meaning of Section 17556 of the Government Code, or
13changes the definition of a crime within the meaning of Section 6
14of Article XIII B of the California Constitution.

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