BILL ANALYSIS Ó
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: SB 1393 Hearing Date: 4/19/2016
-----------------------------------------------------------------
|Author: |De León |
|-----------+-----------------------------------------------------|
|Version: |4/12/2016 As Amended |
-----------------------------------------------------------------
------------------------------------------------------------------
|Urgency: |No |Fiscal: |Yes |
------------------------------------------------------------------
-----------------------------------------------------------------
|Consultant:|Jay Dickenson |
| | |
-----------------------------------------------------------------
SUBJECT: Energy efficiency and pollution reduction
DIGEST: This bill makes several technical, clarifying and
substantive changes to the existing statute created by the Clean
Energy and Pollution Reduction Act of 2015 (aka SB 350).
ANALYSIS:
Existing law:
1)Defines a "retail seller" as any entity engaged in retail sale
of electricity to end-use customers in the state. (Public
Utilities Code §399.12(j))
2)Provides that "retail seller" as used for purposes of the
Charge Ahead California Initiative has the same meaning as
provided in Public Utilities Code §399.12. (Health and Safety
Code §44258.5)
3)Requires the California Energy Commission (CEC), as part of
the 2019 edition of the integrated energy policy report
(IEPR), to evaluate the actual energy efficiency savings from
negative therm interactive effects generated as a result of
electricity efficiency improvements. (Public Resources Code
§25302.2)
4)Requires the CEC, on or before January 1, 2017, with input
from relevant state agencies and the public, to conduct and
complete a study on both (1) barriers to, and opportunities
for, solar photovoltaic energy generation as well as barriers
to, and opportunities for, access to other renewable energy by
SB 1393 (De León) Page 2 of ?
low-income customers, and (2) barriers to contracting
opportunities for local small businesses in disadvantaged
communities. (Public Resources Code §25327(b))
5)Requires the CEC, on or before January 1, 2017, with input
from relevant state agencies and the public, to develop and
publish a study on barriers for low-income customers to energy
efficiency and weatherization investments, including those in
disadvantaged communities, as well as recommendations on how
to increase access to energy efficiency and weatherization
investments to low-income customers. (Public Resources Code
§25327(c))
6)Requires the California Air Resources Board (ARB), on or
before January 1, 2017, in consultation with the CEC and with
input from relevant state agencies and the public, to develop
and publish a study on barriers for low-income customers to
zero-emission and near-zero-emission transportation options,
including those in disadvantaged communities, as well as
recommendations on how to increase access to zero-emission and
near-zero-emission transportation options to low-income
customers, including those in disadvantaged communities.
(Public Resources Code §25327(d))
7)Lists reducing air pollution in the state as one of the unique
benefits provided by achieving the renewable portfolio
standard (RPS) through procurement of various electricity
products, each of which independently justifies the RPS
program. (Public Utilities Code §399.11(b)(3))
8)Declares the necessity of supplying electricity to California
end-use customers that is generated by eligible renewable
energy resources to improve California's air quality and
public health, and the commission directs the CPUC to ensure
rates are just and reasonable, and are not significantly
affected by the procurement requirements of this article.
(Public Utilities Code §399.11(e)(1))
9)Directs the California Environmental Protection Agency,
according to specified criteria, to identify disadvantaged
communities for investment opportunities related to the
Greenhouse Gas Reduction Fund Investment Plan and Communities
Revitalization Act. (Health and Safety Code §39711)
SB 1393 (De León) Page 3 of ?
10)Direct the California Public Utilities Commission (CPUC) and
CEC, in furtherance of meeting the state's clean energy and
pollution reduction objectives, to (a) Review technology
incentive, research, development, deployment, and market
facilitation programs overseen by the commission and the CEC
and make recommendations to advance state clean energy and
pollution reduction objectives and provide benefits to
disadvantaged communities as identified pursuant to Section
39711 of the Health and Safety Code and (b), to the extent
feasible, give first priority to the manufacture and
deployment of clean energy and pollution reduction
technologies that create employment opportunities, including
high wage, highly skilled employment opportunities, and
increased investment in the state. (Public Utilities Code
§400(d) and (e))
11) Requires the governing board of a local publicly owned
electric utility (POU) to adopt an integrated resource plan
(IRP) and a process for updating that plan to ensure the plan
achieves several goals, including (a) procurement of at least
50 percent eligible renewable energy resources by 2030 and (b)
the energy and environmental goals specified in subparagraphs
(C) to (H), of paragraph (1) of subdivision (a) of Section
454.52 of the Public Utilities Code. (Public Utilities Code
§9621(b)(2) and (3))
This bill makes several technical, clarifying and substantive
changes to the existing stature created by SB 350:
1)Specifies the subsection - subsection (j) - of Public
Utilities Code §399.12 to which the meaning of "retail seller"
is cross-referenced in Health and Safety Code §44258.5.
2)Requires the CEC to continue to evaluate the actual energy
efficiency savings from negative therm interactive effects
generated as a result of electricity efficiency improvements
in each update of the IEPR after the 2019 edition.
3)Explicitly add the AB 32 environmental justice advisory
committee to the entities from which the CEC and ARB must
receive input when completing their studies on barriers to
low-income and disadvantaged communities, as required by
Public Resources Code §25327 subsections (b), (c) and (d).
4)Specifies the types of air pollution, the reduction of which
SB 1393 (De León) Page 4 of ?
is one of the unique benefits provided by achieving the RPS
through procurement of various electricity products.
5)Modifies the existing statutory declaration of the necessity
of supplying electricity to California end-use customers that
is generated by eligible renewable energy resources to improve
California's air quality and public health to explicitly
highlight that the necessity is particularly necessary in
disadvantaged communities as defined in 39711 of the Health
and Safety Code.
6) Expands the requirement in existing law that the CPUC and CEC
review technology incentive, research, development,
deployment, and market facilitation programs to additionally
require those agencies to review programs overseen by academia
and private and nonprofit sectors.
7)Further qualifies the requirement in existing law that the
CPUC and CEC give first priority to the manufacture and
deployment of clean energy and pollution reduction
technologies that create employment opportunities, including
high wage, highly skilled employment opportunities, and
increased investment in the state. The agencies would need to
additionally do so to the extent consistent with state and
federal law and specifies that job creation is to happen in
the state.
8)Clarifies that the goals that must be achieved by a POU's IRP
are only those that are applicable to POUs and that the
requirement that the IRP achieve those goals does not, in
itself, subject a POU to the requirements otherwise imposed on
IOUs.
Background
In 2015, the Legislature passed significant new energy and
environmental legislation - The Clean Energy and Pollution
Reduction Act, also known as SB 350. That bill establishes
targets to increase retail sales of renewable electricity to 50
percent by 2030 and double the energy efficiency savings in
electricity and natural gas end uses by 2030. This bill makes
several technical, clarifying and substantive changes to the
existing statute created by the Clean Energy and Pollution
Reduction Act. There is no opposition to this bill.
SB 1393 (De León) Page 5 of ?
Prior/Related Legislation
SB 350 (De Leon, Chapter 547, Statutes of 2015) established
targets to increase retail sales of renewable electricity to 50
percent by 2030 and double the energy efficiency savings in
electricity and natural gas end uses by 2030.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
None received
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the author's office, there
are several noncontroversial technical and clarifying amendments
needed to the statutory changes made by last year's SB 350.
-- END --