BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING


          AB  
          1330 (Bloom)


          As Amended  June 2, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                  |Noes                |
          |                |      |                      |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Utilities       |9-5   |Rendon, Bonilla,      |Patterson,          |
          |                |      |Burke, Eggman,        |Achadjian, Dahle,   |
          |                |      |Cristina Garcia,      |Hadley, Jones       |
          |                |      |Quirk, Santiago,      |                    |
          |                |      |Ting, Williams        |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Appropriations  |12-5  |Gomez, Bonta,         |Bigelow, Chang,     |
          |                |      |Calderon, Daly,       |Gallagher, Jones,   |
          |                |      |Eggman, Eduardo       |Wagner              |
          |                |      |Garcia, Gordon,       |                    |
          |                |      |Holden, Quirk,        |                    |
          |                |      |Rendon, Weber, Wood   |                    |
          |                |      |                      |                    |
          |                |      |                      |                    |
           ------------------------------------------------------------------- 


          SUMMARY:  Establishes an annual energy efficiency resource  
          standard for every retail seller of electricity and every gas  
          utility, and requires the California Energy Commission (CEC) to  








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          convene a stakeholder process to determine how the energy savings  
          goals are measured and reported.  Specifically, this bill: 


          1)Requires the California Public Utilities Commission (CPUC), in  
            consultation with CEC, to supervise the implementation of this  
            bill by community choice aggregators, electrical service  
            providers, and electrical and gas corporations


          2)Requires the governing board of each local publicly owned gas  
            utility, in consultation with the CEC, to be responsible for the  
            implementation of this bill.


          3)Requires each electricity retail seller to annually increase the  
            amount of energy efficiency resources to achieve not less than  
            1.5% per year by 2020, and not less than 2% by 2025, as  
            specified.  Requires the CEC in consultation with the CPUC to  
            adopt a cost limitation for each retail seller to comply with  
            this requirement.


          4)Requires each gas utility to increase the amount of incremental  
            energy savings so that the total amount of incremental energy  
            savings achieved in any given year amounts to 0.75% of total  
            natural gas consumption by 2020 and not less than 1% by 2025, as  
            specified.


          5)Requires the energy savings of retail electricity sellers and  
            gas utilities to first come from disadvantaged communities.


          6)Requires all entities to annually file reports with the CEC, as  
            specified.


          FISCAL EFFECT:  According to the Assembly Appropriations  








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          Committee:


          1)Net increase of annual costs to the CPUC of $421,243 (special  
            fund) and four person years.


            This bill adds some oversight task to the CPUC, but also shifts  
            some existing tasks to the CEC. This figure represents the net  
            increase of the bill's requirements.


          2)Increased annual cost of approximately $300,000 (Energy  
            Resources Program Account) for CEC to set targets, collect data,  
            and calculate savings for 44 publicly owned utilities.


          COMMENTS:


          1)Purpose.  According to the author, establishing an energy  
            efficiency resource standard will be a critical component in  
            meeting Californian's energy needs while at the same time  
            meeting the Governor's goals of increasing building efficiency  
            by 50%, increasing our renewable portfolio to 50% by 2030, and  
            reducing our greenhouse gas emissions by 80% by 2050.


          2)Governor's 2015 Inaugural Address.  In the Governor's Inaugural  
            Address on January 5, 2015, he called on the following goals to  
            continue reducing greenhouse gas emissions beyond 2020 and by  
            2030:


             a)   Increase to 50% our electricity derived from renewable  
               sources (Renewable Portfolio Standard),
             b)   Reduce today's petroleum use in cars and trucks by up to  
               50%, and









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             c)   Double the efficiency of existing buildings and make  
               heating fuels cleaner.  


           1)Background.  The CPUC regulates ratepayer-funded energy  
            efficiency programs.  The CPUC works with the investor-owned  
            utilities, other program administrators and vendors to develop  
            programs and measures to transform technology markets within  
            California using ratepayer funds.  
            The program requires that the portfolio of activities be cost  
            effective.  The 2013-14 energy efficiency program budgets were  
            slightly more than $2 billion.  This does not include additional  
            funding to support low-income households, which includes a  
            billing discount and no-cost energy efficiency improvements and  
            appliances for qualified low-income households.


            Ratepayer-funded energy efficiency budgets are used to provide  
            incentives to encourage energy efficiency improvements over and  
            above current state energy efficiency regulations, conduct  
            research on areas where state efficiency standards can be  
            increased, measured and evaluated, marketing and outreach,  
            government partnerships, and financing programs.


            California's publicly owned utilities administer similar  
            programs, also funded by their ratepayers.




          Analysis Prepared by:                                               
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0000800












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