Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2141

Introduced by Assembly Member Ting

February 17, 2016

An act to add Section 748 to the Public Utilities Code, relating to begin delete electricity. end delete begin insert energy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2141, as amended, Ting. begin delete Energy-efficient refrigeration program: low-income communities. end delete begin insert Energy assistance: Corner stores. end insert

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation and gas corporation to develop and implement a program of rate assistance to eligible food banks at a fixed percentage to be determined by the commission and subject to direction and supervision by the commission. Existing law requires all public utilities to develop programs, in cooperation with local school districts, to reduce their electricity and gas bills through conservation and improvements in efficiency. Pursuant to existing law, the commission supervises various energy efficiency and low-income targeted energy efficiency programs administered by electrical corporations, gas corporations, and third-party administrators.

This bill would require begin delete an end delete begin insert each end insert electrical corporation begin insert and gas corporation end insert to develop a program, subject to direction and supervision by the commission, that begin delete promotes the placement of free or low-cost energy-efficient refrigeration in corner grocery stores in low-income communities in order to provide convenient fresh food options in those communities. end delete begin insert provides incentives and assistance to owners, operators, or lessees of corner stores, as defined, to reduce their electricity and gas bills through conservation and energy efficiency improvements, including the placement or replacement of free or low-cost energy-efficient refrigeration in order to improve a community’s access to healthy and fresh food options. The bill would require that the program give priority to low-income or lower income, as defined, areas and communities, areas and communities with limited access to healthy food, including those areas and communities that are considered to be food deserts, as defined, and communities with higher rates of diet-related diseases, as defined. The bill would require each electrical and gas corporation to submit its proposal for the program to the commission by January 1, 2018, and would require the commission to end insert begin insert authorize or deny implementation of the program by July 1, 2018. end insert

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

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.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

begin delete

SECTION 1.  

Section 748 is added to the Public Utilities Code,
to read:

748.  

Subject to direction and supervision by the commission,
each electrical corporation shall develop a program that promotes
the placement of free or low-cost energy-efficient refrigeration in
corner grocery stores in low-income communities in order to
provide convenient fresh food options in those communities.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 748 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 748. end insert   

(a) For purposes of this section, the following terms have
the following meanings:

(1) “Corner store” means a small-scale store or grocery store,
either an independent store or a chain store, that sells a limited
selection of foods and other products, in rural, urban, and
suburban settings. “Corner store” includes stores that are not
located on a corner and stores commonly referred to as
convenience stores or neighborhood stores.

(2) “Diet-related diseases” includes, but is not limited to,
obesity, diabetes, cancer, and cardiovascular diseases.

(3) “Food desert” means an area or community that lacks or
is absent of grocery stores or supermarkets that sell fresh produce
and healthy food options.

(4) “Low-income or lower income” means households with
annual incomes that are no greater than 400 percent of the federal
poverty level.

(b) (1) Subject to the direction and approval of the commission,
each electrical corporation and gas corporation shall develop and
implement a program to provide incentives and assistance to
owners, operators, or lessees of corner stores to reduce their
electricity and gas bills through conservation and energy efficiency
improvements, including, but not limited to, the placement or
replacement of free or low-cost energy-efficient refrigeration in
order to improve a community’s access to healthy and fresh food
options.

(2)  The program shall require participating corner stores to
agree to sell fresh produce and other healthy foods for a minimum
of three years. The commission may impose other conditions to
ensure the integrity of the program and to protect ratepayers. The
three year requirement shall not be enforceable if the individual
or entity, or its successor, owning, operating, or leasing the corner
store ceases all of its retail food sales operations.

(3) The program shall give priority to, but is not limited to, the
following:

(A) Low-income or lower income areas and communities.

(B) Areas and communities with limited access to healthy food,
including those that are considered to be food deserts.

(C) Communities with higher rates of diet-related diseases.

(4) The program shall encourage and include outreach to corner
stores to promote participation.

(c) (1) Each electrical corporation and gas corporation shall
submit its proposal for the program to the commission by January
1, 2018.

(2) The commission may approve the proposal, modify and
approve the proposal, or direct the utility to file a new proposal
with elements specified by the commission by a date certain.

(3) The commission shall authorize or deny implementation of
the program by July 1, 2018.

(d) The commission shall implement an equitable means to fund
the program, which may include, but is not limited to,
overcollections pursuant to the California Alternate Rates for
Energy (CARE) program, the Energy Savings Assistance Program
established pursuant to Section 382, and other energy efficiency
funds or programs subject to the commission’s oversight.

end insert

SEC. 2.  

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