BILL ANALYSIS Ó
SB 765
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Date of Hearing: August 26, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 765
(Wolk) - As Amended August 18, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill requires the California Public Utilities Commission
(PUC) to contract with an independent entity, to be known as the
California Market Transformation Administrator (CalMTA), to
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coordinate the state's energy efficiency market transformation
activities.
FISCAL EFFECT:
1)Cost pressures, likely between $50 million and $100 million
(Public Utilities Reimbursement Account) to fund the program.
2)Increased annual PUC administrative costs of approximately
$500,000 to $1 million (Public Utilities Reimbursement
Account).
COMMENTS:
1)Purpose. According to the author, the CalMTA will be
responsible for planning, coordinating and managing the
execution of statewide energy efficiency market transformation
initiatives subject to PUC oversight. Its creation positions
California to unlock deeper, cost-effective energy savings
that are necessary to realize Governor Brown's goal to double
energy efficiency savings by 2030.
2)Background. The PUC authorizes the collection of ratepayer
funds at about $1 billion per year to support programs to
increase energy efficiency in California. Financial
incentives include loans and rebates for installing energy
efficient appliances, lighting, windows, heating, ventilation,
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and air conditioning (HVAC) systems, whole-house retrofits,
marketing and education programs, and specialized programs
aimed at benefiting a variety of sectors.
In 2007, the PUC adopted the Big Bold Energy Efficiency
Strategies (BBEES) to accelerate market transformation toward
greater adoption of energy efficiency. The goals of the
strategies include: (1) all new residential construction will
be Zero Net Energy (ZNE) by 2020, (2) all new commercial
construction will be ZNE by 2030, (3) the HVAC industry will
be re-shaped to deliver maximum system performance by 2020,
and (4) all eligible low-income customers will have an
opportunity to participate in the Energy Savings Assistance
Program and will be provided with cost effective energy
efficiency measures in their homes by 2020.
In 2008, the PUC adopted a California Energy Efficiency
Long-Term Strategic Plan to maximize cost effective energy
efficiency in California's electricity and natural gas
sectors. According to the PUC, the unifying objective of the
Strategic Plan was to compel sustained market transformation
to move California toward long-term, deeper savings achievable
only through high-impact programs.
The PUC 2010-2012 energy efficiency portfolio included several
new market transformation programs: Energy Upgrade
California, HVAC quality installation and maintenance,
Lighting Market Transformation, and Integrated Demand-side
Management, among others.
In the PUC decision authorizing the 2013-2014 energy
efficiency programs, the PUC directed the IOUs to establish a
new statewide lighting program and subsume the current
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statewide Lighting Market Transformation program as a
subprogram within it.
The PUC is likely able to contract with a third-party and
establish this program within its existing authority.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081