Amended in Senate May 18, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1511


Introduced bybegin delete Committee on Insuranceend deletebegin insert Assembly Members Perea, Daly, and Salasend insert

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(Coauthors: Assembly Members Cooley, Cooper, Frazier, Gipson, and O’Donnell)

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March 5, 2015


begin deleteAn act to amend Sections 985.5, 1067.13, 1858.35, 11629.81 of, and to repeal Section 11759.2 of, the Insurance Code, relating to insurance. end deletebegin insertAn act to add Section 399.33 to, and to repeal and add Sections 381.2 and 740.2 of, the Public Utilities Code, relating to energy.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1511, as amended, begin deleteCommittee on Insuranceend delete begin insertPereaend insert. begin deleteInsurance: reports. end deletebegin insertEnergy.end insert

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(1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), by March 1, 2010, to establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock.

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Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires the PUC, in consultation with the Energy 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. Existing law requires the PUC, in consultation with the Energy 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 the PUC, by March 1, 2010, to investigate the ability of electrical corporations and gas corporations to provide various energy efficiency financing options to their customers for the purposes of implementing the comprehensive program developed by the Energy Commission described above.

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This bill would require the PUC to authorize electrical corporations and gas corporations to recover in rates the reasonable costs of a program that provides financial incentives or rebates to customers of the utility to increase energy efficiency in existing buildings based on all estimated energy savings and energy usage reductions, taking into consideration overall reduction in normalized metered energy consumption as a measure of energy savings. The bill would require the program to include energy usage reductions resulting from the installation of a measure or equipment required for modifications to existing buildings to bring them into conformity with, or exceed, existing energy efficiency building standards.

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(2) The California Renewables Portfolio Standard Program requires the PUC to implement annual procurement targets for the procurement of eligible renewable energy resources for all retail sellers to achieve the targets and goals of the program. Existing law requires each electrical corporation to submit to the PUC a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources.

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This bill would authorize a retail seller of electricity or a local publicly owned electric utility to include electricity generated by, or saved as a result of the use of, distributed resources in meeting its renewables portfolio standard procurement obligations.

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(3) Existing law requires the PUC, in consultation with the Energy Commission, the State Air Resources Board, electrical corporations, and the motor vehicle industry, to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of plug-in hybrid and electric vehicles and, by July 1, 2011, to adopt rules that address specified matters.

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This bill would delete the requirement that the PUC evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of plug-in hybrid and electric vehicles and, by July 1, 2011, to adopt rules that address specified matters. The bill would require the PUC to require each electrical corporation to file an electric vehicle infrastructure plan to develop, own, and operate electric vehicle charging stations and service equipment to support the widespread deployment and use of plug-in hybrid and electric vehicles. The bill would require that the plans encourage and support the widespread deployment of electric vehicles, protect competitive markets for electric vehicle charging equipment, and support consumer choice in electric vehicle charging equipment. The bill would require the PUC, by March 1, 2016, after notice and an opportunity to comment, to approve, or modify and approve, the electric vehicle infrastructure plan filed by each electrical corporation and the rate changes to implement the plan, if the PUC determines that the plan reasonably assists in achieving the state’s electric vehicle deployment goals necessary to reduce emissions of greenhouse gases and reduce the use of petroleum.

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(4) The Public Utilities Act makes any public utility that violates the act, or that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the PUC, guilty of a crime.

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Because the provisions of this bill are within the act and require action by the PUC to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.

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(5) 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 a specified reason.

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Existing law requires the Insurance Commissioner to submit specified reports, including reports on the insolvency of admitted insurers and the number of complaints by persons aggrieved by a rate charged, to the Governor and the Legislature. Existing law requires the California Life and Health Insurance Guarantee Association to submit a financial report on its activities to the Governor and the Legislature.

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This bill would require those reports to be submitted to the Senate Committee on Insurance and the Assembly Committee on Insurance instead of to the Legislature.

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Existing law requires the California Automobile Assigned Risk Plan to submit a report regarding the status of the low-cost automobile insurance program administered by the plan to the commissioner annually and as the plan deems prudent.

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This bill would require the plan to submit the report to the Senate Committee on Insurance and the Assembly Committee on Insurance, in addition to the commissioner.

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Existing law requires a licensed rating organization designated as the commissioner’s statistical agent to prepare a report on the potential underreporting of workers’ compensation exposure in the taxicab industry, and to submit that report to the commissioner by April 1, 2003, and to the Governor and the Legislature by May 1, 2003.

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This bill would repeal that provision.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P4    1begin insert

begin insertSECTION 1.end insert  

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The Legislature finds and declares all of the
2following:

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3(a) In January of 2013, Governor Brown issued a zero-emission
4vehicle action plan calling for one and one-half million
5zero-emission vehicles in California by 2025 and the infrastructure
6to support one million zero-emission vehicles by 2020.

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7(b) In Decision 14-12-079 (December 18, 2014), Phase 1
8Decision Establishing Policy to Expand the Utilities’ Role in
9Development of Electric Vehicle Infrastructure, the Public Utilities
10 Commission set aside that part of Decision 11-07-029 that had
11required electrical corporations to demonstrate a “market failure”
12or “underserved market” as part of any request for authority to
13own plug-in electric vehicle charging infrastructure.

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14(c) In January of 2015, Governor Brown proposed a plan to
15reduce petroleum use in cars and trucks by 50 percent by 2030.

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16(d) A significant barrier still exists relative to the availability
17of electric vehicle charging stations and service equipment to
18support electric vehicle charging needed in public locations,
19multifamily dwellings, workplaces, and fleet locations to support
20California’s goals for reducing the use of petroleum.

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21(e) It is estimated that in order to support the need for electric
22vehicle charging stations and service equipment, at least one
P5    1electric vehicle charging station and related service equipment is
2needed for every four electric vehicles, compared to the current
3ratio of twenty to one.

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4(f) If California is to achieve its aggressive goals for reducing
5emissions of greenhouse gases, as well as its goals for reducing
6the use of petroleum, significant electric vehicle and service
7equipment infrastructure investments will need to be made by
8electrical corporations.

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9begin insert

begin insertSEC. 2.end insert  

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begin insertSection 381.2 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

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10

381.2.  

(a) By March 1, 2010, the commission, by opening a
11new proceeding or amending an existing proceeding, shall
12investigate the ability of electrical corporations and gas
13corporations to provide various energy efficiency financing options
14to their customers for the purposes of implementing the program
15developed pursuant to Section 25943 of the Public Resources Code.

16(b) In the report prepared pursuant to Section 384.2, the
17commission shall include an assessment of each electrical
18corporation’s and each gas corporation’s implementation of the
19program developed pursuant to Section 25943 of the Public
20Resources Code.

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21begin insert

begin insertSEC. 3.end insert  

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begin insertSection 381.2 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
22read:end insert

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23

begin insert381.2.end insert  

(a) (1) In coordination with the program approved
24pursuant to Section 25943 of the Public Resources Code to achieve
25greater energy savings in California’s existing residential and
26nonresidential building stock, the commission shall authorize
27electrical corporations and gas corporations to recover in their
28rates the reasonable costs of a program that provides financial
29incentives or rebates to customers of those corporations to increase
30energy efficiency in existing buildings based on all estimated
31energy savings and energy usage reductions, taking into
32consideration overall reduction in normalized metered energy
33consumption as a measure of energy savings.

34(2) The program shall include energy usage reductions resulting
35 from the installation of a measure or equipment required for
36modifications to existing buildings to bring them into conformity
37with, or exceed, the standards in Part 6 (commencing with Section
38100.0) of Title 24 of the California Code of Regulations.

39(3) The commission shall authorize electrical corporations and
40gas corporations to count all energy savings achieved toward
P6    1overall energy efficiency goals or targets established by the
2commission.

3(b) (1) By December 31, 2018, the commission shall, in
4compliance with Section 9795 of the Government Code, report to
5the Legislature summarizing the energy efficiency savings achieved
6pursuant to subdivision (a).

7(2) Pursuant to Section 10231.5 of the Government Code,
8paragraph (1) is inoperative on December 31, 2022.

9(c) It is the intent of the Legislature that, until January 1, 2020,
10the implementation of the program described in subdivision (a)
11would not result in an increase in rates for the support of the
12energy efficiency programs of electrical corporations or gas
13corporations.

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14begin insert

begin insertSEC. 4.end insert  

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begin insertSection 399.33 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
15to read:end insert

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16

begin insert399.33.end insert  

Notwithstanding any other provision of this article, a
17retail seller or a local publicly owned electric utility may include
18electricity generated by, or saved as a result of the use of,
19distributed resources, as defined in Section 769, in meeting its
20renewables portfolio standard procurement obligations.

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21begin insert

begin insertSEC. 5.end insert  

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begin insertSection 740.2 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

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22

740.2.  

The commission, in consultation with the Energy
23Commission, State Air Resources Board, electrical corporations,
24and the motor vehicle industry, shall evaluate policies to develop
25infrastructure sufficient to overcome any barriers to the widespread
26deployment and use of plug-in hybrid and electric vehicles. By
27July 1, 2011, the commission shall adopt rules to address all of the
28following:

29(a) The impacts upon electrical infrastructure, including
30infrastructure upgrades necessary for widespread use of plug-in
31hybrid and electric vehicles and the role and development of public
32charging infrastructure.

33(b) The impact of plug-in hybrid and electric vehicles on grid
34stability and the integration of renewable energy resources.

35(c) The technological advances that are needed to ensure the
36widespread use of plug-in hybrid and electric vehicles and what
37role the state should take to support the development of this
38technology.

39(d) The existing code and permit requirements that will impact
40the widespread use of plug-in hybrid and electric vehicles and any
P7    1recommended changes to existing legal impediments to the
2widespread use of plug-in hybrid and electric vehicles.

3(e) The role the state should take to ensure that technologies
4employed in plug-in hybrid and electric vehicles work in a
5harmonious manner and across service territories.

6(f) The impact of widespread use of plug-in hybrid and electric
7vehicles on achieving the state’s goals pursuant to the California
8Global Warming Solutions Act of 2006 and renewables portfolio
9standard program and what steps should be taken to address
10possibly shifting emissions reductions responsibilities from the
11transportation sector to the electrical industry.

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begin insertSEC. 6.end insert  

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begin insertSection 740.2 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
13read:end insert

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14

begin insert740.2.end insert  

(a) The commission shall require each electrical
15corporation to file an electric vehicle infrastructure plan to
16develop, own, and operate electric vehicle charging stations and
17service equipment to support the widespread deployment and use
18of plug-in hybrid and electric vehicles. The plan shall encourage
19and support the widespread deployment of electric vehicles, protect
20competitive markets for electric vehicle charging equipment, and
21support consumer choice in electric vehicle charging equipment.
22Applications filed by an electrical corporation prior to January
231, 2016, for approval of electric vehicle infrastructure investments
24shall be considered as having been filed pursuant to this section.

25(b) By March 1, 2016, after notice and an opportunity to
26comment, the commission shall approve, or modify and approve,
27the electric vehicle infrastructure plan filed by each electrical
28corporation and the rate changes to implement the plan, if the
29commission determines that the plan reasonably assists in
30achieving the state’s electric vehicle deployment goals necessary
31to reduce emissions of greenhouse gases and reduce the use of
32petroleum. The commission shall not require individual electrical
33corporation plans to be consistent, but shall encourage flexibility
34and innovation by each electrical corporation in seeking to achieve
35California’s overall electric vehicle deployment goals.

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36begin insert

begin insertSEC. 7.end insert  

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No reimbursement is required by this act pursuant to
37Section 6 of Article XIII B of the California Constitution because
38the only costs that may be incurred by a local agency or school
39district will be incurred because this act creates a new crime or
40infraction, eliminates a crime or infraction, or changes the penalty
P8    1for a crime or infraction, within the meaning of Section 17556 of
2the Government Code, or changes the definition of a crime within
3the meaning of Section 6 of Article XIII B of the California
4Constitution.

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5

SECTION 1.  

Section 985.5 of the Insurance Code is amended
6to read:

7

985.5.  

In the case of the insolvency of an admitted insurer, the
8commissioner shall prepare a report, which shall be a public record,
9with respect to the causes and factors which contributed to that
10insolvency. The report shall be submitted to the Governor, the
11Senate Committee on Insurance, and the Assembly Committee on
12Insurance no later than one year from the date of the insolvency.

13

SEC. 2.  

Section 1067.13 of the Insurance Code is amended to
14read:

15

1067.13.  

The association shall be subject to examination and
16regulation by the commissioner. The board of directors shall submit
17to the commissioner, the Governor, the Senate Committee on
18Insurance, and the Assembly Committee on Insurance each year,
19not later than 120 days after the association’s fiscal year, a financial
20report in a form approved by the commissioner and a report of its
21activities during the preceding fiscal year. Upon the request of a
22member insurer, the association shall provide the member insurer
23with a copy of the report.

24

SEC. 3.  

Section 1858.35 of the Insurance Code is amended to
25read:

26

1858.35.  

On or before May 1 of each year, the commissioner
27shall submit a report to the Senate Committee on Insurance, the
28Assembly Committee on Insurance, and the Governor stating the
29number and type of complaints received under this article and the
30status and disposition of these complaints. The commissioner may
31make any recommendations for improving the efficiency and
32effectiveness of complaint handling under this article.

33No information shall be provided under this section pertaining
34to a specified complaint against a specific insurer or rating
35organization. However, the commissioner may report that
36information in the aggregate.

37

SEC. 4.  

Section 11629.81 of the Insurance Code is amended
38to read:

39

11629.81.  

(a) The California Automobile Assigned Risk Plan
40shall report to the commissioner, the Senate Committee on
P9    1Insurance, and the Assembly Committee on Insurance on an annual
2basis, and at those additional times as it deems prudent, on the
3status of the program. The report shall include data regarding new
4policies, renewed policies, and policy cancellations or nonrenewals.

5(b) The department shall combine the report pursuant to
6subdivision (a) with the report required by Section 11629.85 and
7submit the combined report to the Legislature on or before March
815 of each year.

9(c) A report submitted pursuant to subdivision (b) shall be
10submitted in compliance with Section 9795 of the Government
11Code.

12

SEC. 5.  

Section 11759.2 of the Insurance Code is repealed.

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