Amended in Senate April 13, 2015

Senate BillNo. 723


Introduced by Senators Pavley and Roth

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(Coauthors: Assembly Members Mullin and Williams)

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February 27, 2015


An act to add and repeal Section 454.57 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 723, as amended, Pavley. Energy efficiency:begin delete militaryend deletebegin insert United States Armed Forcesend insert bases and facilities.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined. The Public Utilities Act requires the Public Utilities Commission to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation’s proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development 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.

The act requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development 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.

This bill would require the Public Utilities Commission to encourage electrical corporations and gas corporations to expedite implementation of energy efficiency measures and enable the achievement of additional energy goals at United Statesbegin delete Department of Defense military bases and facilities and United States Coast Guardend deletebegin insert Armed Forces bases andend insert facilities.

This bill would require the Public Utilities Commission to approve financial incentives for energy efficiency upgrades atbegin delete militaryend deletebegin insert Armed Forcesend insert bases and facilitiesbegin delete and United States Coast Guard facilitiesend delete through existing energy efficiency programs administered by electrical corporations and gas corporations. Because a violation of an order or a direction of the commission is a crime, this bill would impose a state-mandated local program.

This bill would repeal the above requirements on January 1, 2020.

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:

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SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The United Statesbegin delete Department of Defense and the United
4States Coast Guard,end delete
begin insert Armed Forces,end insert as the nation’s largest energy
5users, are required to comply with laws enacted by Congress,
6executive orders, and goals established by military leaders,
7including requirements for 3 percent annual reductions in facility
8energy intensity, which is measured by energy used per gross
9square foot.

10(b) The United Statesbegin delete Department of Defense and the United
11States Coast Guardend delete
begin insert Armed Forcesend insert are reducing energy demand
12through conservation and efficiency. The United Statesbegin delete Department
P3    1of Defense and the United States Coast Guardend delete
begin insert Armed Forcesend insert are
2improving the efficiency of their existing buildings through
3retrofitting, including the use of advanced lighting, heating,
4ventilation, and air-conditioning technologies.

5(c) The United Statesbegin delete Department of Defense and United States
6Coast Guardend delete
begin insert Armed Forcesend insert facilities have leveraged the energy
7efficiency programs of electrical corporations and gas corporations
8and have used turnkey contracts to facilitate energy efficiency
9upgrades while bundling energy and water efficiency, demand
10response, and distributed generation.

11(d) Additional energy efficiency incentives to assist the United
12Statesbegin delete Department of Defense and the United States Coast Guardend delete
13begin insert Armed Forcesend insert to perform energy efficiency projects will help in
14meeting the state’s greenhouse gas reduction goals.

15

SEC. 2.  

Section 454.57 is added to the Public Utilities Code,
16to read:

17

454.57.  

(a) For the purposes of this section,begin delete the following
18terms have the following meanings:end delete
begin insert “Armed Forces bases and
19facilities” are those establishments under the jurisdiction of the
20United States Armed Forces that are classified in Code 928110 of
21the North American Industry System and paragraph (4) of
22subsection (a) of Section 101 of Title 10 of the United States Code.end insert

begin delete

23(1) “Military bases and facilities” are those establishments under
24the jurisdiction of the United States Department of Defense that
25are classified in Code 928110 of the North American Industry
26Classification System.

end delete
begin delete

27(2) “United States Coast Guard facilities” are those facilities
28under the jurisdiction of the United States Coast Guard that are
29classified in Code 926120 of the North American Industry
30Classification System.

end delete

31(b) begin deleteMilitary end deletebegin insertArmed Forces end insertbases and facilitiesbegin delete and United States
32Coast Guard facilitiesend delete
shall be eligible to calculate their energy
33efficiency savings by comparing the facilities’ existing energy
34usage, as a whole, with the facilities’ projected energy usage that
35would be achieved from the implementation of the energy
36efficiency measures.

37(c) Through an existing or new proceeding, the commission, in
38consultation with the Energybegin delete Commission, the United States
39Department of Defense,end delete
begin insert Commissionend insert and the United Statesbegin delete Coast
40Guard,end delete
begin insert Armed Forces,end insert shall encourage electrical corporations and
P4    1gas corporations, using existing military contracting procedures
2or new partnerships with the federal government, to expedite the
3implementation of energy efficiency measures and shall enable
4the achievement of additional energy goals, for example,
5microgrids, demand response, self-generation, and energy storage,
6atbegin delete militaryend deletebegin insert Armed Forcesend insert bases andbegin delete facilities and United States
7Coast Guardend delete
facilities.

8(d) The commission shall approve financial incentives for energy
9 efficiency upgrades atbegin delete militaryend deletebegin insert Armed Forcesend insert bases and facilities
10begin delete and United States Coast Guard facilitiesend delete through existing energy
11efficiency programs administered by electrical corporations and
12gas corporations.

13(e) To the extent that the commission finds that funds in addition
14to funds collected from ratepayers are needed to achieve energy
15efficiency saving goals inbegin delete military bases and facilities and United
16States Coast Guard facilities,end delete
begin insert Armed Forces bases and facilities,end insert
17 the commission, in consultation with the Energybegin delete Commission, the
18United States Department of Defense, and the United States Coast
19Guard,end delete
begin insert Commission and the United States Armed Forces,end insert shall
20identify other potential sources of funding to supplement funds
21collected from ratepayers to achieve those savings goals.

22(f)  This section shall remain in effect only until January 1,
232020, and as of that date is repealed, unless a later enacted statute,
24that is enacted before January 1, 2020, deletes or extends that date.

25

SEC. 3.  

No reimbursement is required by this act pursuant to
26Section 6 of Article XIII B of the California Constitution because
27the only costs that may be incurred by a local agency or school
28district will be incurred because this act creates a new crime or
29infraction, eliminates a crime or infraction, or changes the penalty
30for a crime or infraction, within the meaning of Section 17556 of
31the Government Code, or changes the definition of a crime within
32the meaning of Section 6 of Article XIII B of the California
33Constitution.



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