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
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          |Author:   |Committee on Budget                                   |
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          |Version:  |June 23, 2016    Amended                              |
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          |Urgency:  |Yes                    |Fiscal:    |Yes              |
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          |Consultant|Catherine Freeman                                     |
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                         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.







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          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.









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          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.
          
          
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