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 --