BILL ANALYSIS Ó SENATE COMMITTEE ON SENATE BUDGET AND FISCAL REVIEW Senator Mark Leno, Chair 2015 - 2016 Regular Bill No: AB 1612 Hearing Date: June 27, 2016 ----------------------------------------------------------------- |Author: |Committee on Budget | |----------+------------------------------------------------------| |Version: |June 23, 2016 Amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |Yes |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Catherine Freeman | |: | | ----------------------------------------------------------------- Subject: Public resources: energy Summary: This bill makes various changes to implement the resources and energy budget actions adopted as part of the 2016-17 Budget package. Proposed Law: This bill includes the following key changes. Oil Definition. Defines "oil," as currently specified for under the Elder California Pipeline Safety Act of 1981, to mean petroleum, petroleum products, anhydrous ammonia, and ethanol. Pipeline Reporting. Requires the State Fire Marshall to provide to the Legislature an annual report containing specified information regarding the inspection of intrastate pipelines that transport hazardous materials. Fund Transfer Repeal. Repeals the requirement that $1 million be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund. Oil, Gas, and Geothermal Administrative Fund (OGGAF) Uses. Authorizes the use of OGGAF for the State Air Resources Control Board and Office of Environmental Health Hazard Assessment for their activities related to oil and gas operations that may affect air quality, public health and public safety. AB 1612 (Committee on Budget) Page 2 of ? California Public Utilities Commission (CPUC) Reporting. Requires the CPUC to report to the Legislature on options to locate operations and staff outside the commission's San Francisco headquarters. Green Tariff Sunset. Repeals the sunset that would have ended the requirement that investor-owned utilities offer the Green Tariff Shared Renewable Program to customers. The program will now end when the 600 megawatt cap of the program is reached. Biomethane Injection Study. Requests a study from the California Council on Science and Technology on technical aspects of biomethane related to its delivery in common carrier pipelines and impacts on end uses of biomethane. Search Warrants for Smart Readers. Clarifies that a search warrant is not necessary for the collection of data related to smart meters. New Solar Homes Partnership Program. Requires that, should the California Public Utilities Commission order a continuation of the New Solar Homes Partnership Program and determines that the California Energy Commission be the third party administrator, funds should be made available for this purpose. Bioenergy Project Interconnections (BioMAT). Expedites transmission interconnections for specified bioenergy or biomass projects in order to give them first priority to commence operations over other renewable energy resources. Self-Generation Incentive Program (SGIP). Doubles, from $80 million to $160 million annually, the amount of ratepayer subsidy paid to customers who install certain energy storage systems. These subsidies are intended to increase investments in energy storage and to provide both customers and energy storage manufacturers with incentives to purchase and install the systems. Net Energy Metering For Fuel Cells (NEM FC). Extends the sunset from January 1, 2017 to January 1, 2022, for the NEM FC program; increases the overall megawatt cap on the program; and increases the amount of megawatts eligible for ratepayer subsidy. AB 1612 (Committee on Budget) Page 3 of ? Energy Service Companies (ESCOs). Authorizes the Department of General Services or any other state agency to enter into sole source, no bid contracts for up to 35 years with qualified energy service companies to install energy retrofit projects at state buildings provided the agency has a project labor agreement and meets other conditions. Fiscal Effect: Provides for an appropriation of $275,000 to the California Energy Commission for appliance efficiency standards compliance assistance and enforcement. Support: None received. Opposed: None received. -- END --