BILL ANALYSIS Ó
AB 1330
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
1330 (Bloom)
As Amended August 9, 2016
Majority vote
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|ASSEMBLY: | |(June 4, 2015) |SENATE: |26-12 |(August 24, |
| | | | | |2016) |
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(vote not relevant)
Original Committee Reference: U. & C.
SUMMARY: Requires the California Public Utilities Commission
(CPUC) to ensure that sufficient monies are available for
electrical and gas corporations to meet efficiency targets.
The Senate amendments:
1)Delete the contents of the bill which would have created an
energy efficiency resource standard.
2)Require the CPUC to ensure that sufficient monies are
available for electrical and gas corporations to meet
efficiency targets.
AB 1330
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EXISTING LAW:
1)Establishes a charge on electricity and natural gas
consumption to fund cost-effective energy efficiency and
conservation activities. (Public Utilities Code Sections 381
and 890)
2)Requires the CPUC to establish policies and procedures by
which an entity, including a community choice aggregator
(CCA), may apply to become administrators for cost-effective
energy efficiency and conservation programs. (Public
Utilities Code Section 381.1)
3)Requires electric corporation procurement plans to first meet
unmet resource needs through all available energy efficiency
and demand reduction resources that are cost effective,
reliable, and feasible. (Public Utilities Code Section 454.5)
4)Requires each local publicly-owned electric utility, in
procuring energy to serve the load of its retail end-use
customers, to first acquire all available energy efficiency
and demand reduction resources that are cost effective,
reliable, and feasible. (Public Utilities Code Section 961.5)
5)Requires the California Energy Commission (CEC), every two
years, to adopt an integrated energy policy report containing
an overview of major energy trends and issues facing the
state, including, but not limited to, supply, demand, pricing,
reliability, efficiency, and impacts on public health and
safety, the economy, resources, and the environment. (Public
Resources Code Section 25302)
6)Requires the CEC to develop a statewide estimate of all
potentially achievable cost-effective electricity and natural
AB 1330
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gas savings, and establish targets for statewide annual energy
efficiency savings and demand.
FISCAL EFFECT: According to Senate Appropriations Committee,
annual costs in the range of $700,000 for two years to Public
Utilities Reimbursement Account (special Fund) for the CPUC to
develop the procurement goal.
COMMENTS:
1)Energy loading order: Following the 2001 energy crisis, the
Legislature codified a "loading order" of preferred energy
resources, requiring the investor-owned utilities (IOU)
electricity procurement plans to first meet unmet resources
needs through all cost-effective, reliable, and feasible
energy efficiency and demand response.
2)Energy efficiency funded programs: Consistent with the
loading order, statute requires both electrical and gas IOU to
meet unmet resource needs with all available energy efficiency
and demand reduction that is cost-effective, reliable, and
feasible. The CPUC uses these criteria to establish energy
efficiency targets for the IOUs. To achieve these targets,
the IOUs (and, in some cases, coalitions of local governments
and CCAs) administer energy efficiency programs with ratepayer
funds approved by the CPUC. Currently funded at about $1
billion per year, the programs include a portfolio of
financial incentives, loans, and rebates for installing energy
efficient appliances, lighting, windows, heating, ventilation,
and air conditioning systems, whole-house retrofits, and
sector-specific efforts.
3)Doubling energy efficiency savings: SB 350 (De León), Chapter
547, Statutes of 2015, enacted the Clean Energy and Pollution
Reduction Act of 2015, which established targets to increase
retail sales of renewable electricity to 50% by 2030 and
double energy efficiency savings in electricity and natural
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gas uses by 2030. Under the statute, the CEC, in consultation
with the CPUC and local publicly owned utilities, must
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 by January 1, 2030. The targets must be
established through a public process. In furtherance of that
effort, the targets must be established by November 1, 2017.
4)Current process: Currently, the CPUC approves a 10-year
authorization of funding for IOU energy efficiency and demand
reduction investments, known as a rolling portfolio. Rolling
portfolios represent a 10-year authorization for activities,
with annual reviews of progress and effectiveness, and annual
updates/true ups needed for specific aspects of the portfolio
(savings estimates, goals, evaluation results) through a
formal filing with the CPUC via a public and stakeholder
process. The rolling portfolio mechanism was adopted to
smooth out the start-stop nature of a three-year
authorization, revision, re-adoption by the CPUC. The CPUC is
currently in its first year of implementing rolling portfolios
and learning how to improve the effort.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
FN: 0004851