BILL ANALYSIS Ó
SB 350
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SENATE THIRD READING
SB
350 (De León and Leno)
As Amended July 16, 2015
Majority vote
SENATE VOTE: 24-14
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |9-5 |Rendon, Bonilla, |Patterson, |
| | |Burke, Eggman, |Achadjian, Hadley, |
| | |Cristina Garcia, |Roger Hernández, |
| | |Quirk, Santiago, |Obernolte |
| | |Ting, Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Natural |6-2 |Williams, Cristina |Hadley, Harper |
|Resources | |Garcia, McCarty, | |
| | |Rendon, Mark Stone, | |
| | |Wood | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |12-5 |Gomez, Bloom, Bonta, |Bigelow, Chang, |
| | |Calderon, Nazarian, |Gallagher, Jones, |
| | |Eggman, Eduardo |Wagner |
| | |Garcia, Holden, | |
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| | |Quirk, Rendon, Weber, | |
| | |Wood | |
| | | | |
| | | | |
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SUMMARY: Establishes the Clean Energy and Pollution Reduction
Act of 2015 to direct a 50% reduction in motor vehicle petroleum
use, a 50% increase sales of renewable electricity, and a
doubling of the energy efficiency in buildings, all to be
achieved by 2030.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)Ongoing annual costs of $5.6 million for staffing and one-time
costs of $3.5 million in contracts (General Fund and special
fund) for the California Energy Commission (CEC) to implement
the requirements of the bill.
2)Ongoing annual costs of $1.65 million for personnel services
and $2.3 million in operating expenses (special fund) for the
California Public Utilities Commission (CPUC) to fulfill the
requirements of the bill.
3)Ongoing annual costs of up to $1.25 million (various special
funds) for the Air Resources Board (ARB) to implement the
petroleum reduction goal.
4)Ongoing annual costs of up to $275,000 (various special funds)
for ARB to develop policies to remove regulatory disincentives
and facilitate green house gas reductions through
transportation electrification.
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5)Unknown costs pressures to current programs from various
special funds to achieve a 50% petroleum reduction.
6)Unknown ratepayer costs to the General Fund and various
special funds to the state, as an electricity user and
ratepayer, to the extent electricity prices are affected by
increasing the Renewable Portfolio Standard (RPS).
7)Unknown costs pressures (special fund) for the CPUC and CEC to
review renewable integration needs and consider grid
integration in RPS implementation proceedings.
COMMENTS:
1)Purpose. According to the author, this bill enacts energy
policies that build on California's economic growth. The
Golden State Standards are as follows:
a) 50% less petroleum use;
b) 50% of electricity coming from renewable sources; and
c) 50% better efficiency in our buildings.
The author contends these standards will send a strong signal
to California's businesses and drive innovation and investment
resulting in more jobs and state revenue.
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This bill codifies goals announced by the Governor in January
in his inaugural address.
2)Background. Current law requires the ARB to adopt and
implement motor vehicle emission standards, in-use performance
standards, and motor vehicle fuel specifications for the
control of air contaminants and sources of air pollution.
The CEC is required to develop and implement a comprehensive
program to achieve greater energy savings in California's
existing residential and nonresidential building stock and
administers the energy efficiency regulations for new
buildings and appliances. The CPUC oversees utility energy
efficiency programs.
All retail sellers of electricity - investor-owned utilities
(IOU), community choice aggregators, energy service providers,
and publicly-owned utilities (POU) - are required to increase
purchases of renewable energy such that at least 33% of retail
sales are procured from renewable energy resources by December
31, 2020. This is known as the RPS. The CPUC is explicitly
authorized to require retail sellers of electricity to procure
renewable energy resources in excess of the 33% RPS
requirement. The CPUC oversees RPS compliance with IOUs while
the CEC oversees POUs.
Existing law also establishes the Electric Program Investment
Charge Fund to fund projects that benefit electricity
ratepayers and lead to technological advancement and
breakthroughs to overcome the barriers that prevent the
achievement of the state's statutory energy goals.
3)Stakeholder Discussions Continue. The author's office
continues to regularly meet with the numerous stakeholder
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groups on the detailed provisions of this bill. Topics under
discussion include, but are not limited to: a) addressing RPS
concerns of small publicly-owned utilities; b) revisions to
transportation electrification provisions; c) revisions to the
existing RPS framework; d) ensuring the fair treatment of all
retail sellers in RPS enforcement; e) revising provisions
within the existing RPS regarding banking and short- and
long-term contracts; f) adjustments to the energy efficiency
provisions; and g) adjustments to the petroleum reduction
provisions.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
FN: 0001680