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
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          |Author:    |De León                                              |
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          |Version:   |4/12/2016    As Amended                              |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Jay Dickenson                                        |
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          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  







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            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)










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          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  








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            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.








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          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. 
          
          

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