BILL ANALYSIS Ó
AB 1330
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ASSEMBLY THIRD READING
AB
1330 (Bloom)
As Amended June 2, 2015
Majority vote
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|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 | |
| | | | |
| | | | |
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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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