BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1393 (De León) - Energy efficiency and pollution reduction
          
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          |Version: April 12, 2016         |Policy Vote: E., U., & C. 11 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 16, 2016      |Consultant: Narisha Bonakdar    |
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          This bill does not meet the criteria for referral to the  
          Suspense File.

          Bill  
          Summary:  SB 1393 makes several technical, clarifying and  
          substantive changes to the existing statute created by the Clean  
          Energy and Pollution Reduction Act of 2015 (SB 350).

          Fiscal  
          Impact:  
           $77,000 annually (Cost of Implementation Fund) to the Air  
            Resources Board (ARB).
           $10,000 (General Fund) annually to the CEC.
           Minor costs to the CPUC.
          
          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  








          SB 1393 (De León)                                      Page 1 of  
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          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.  
          
          Proposed Law:  
            This bill makes several technical, clarifying and substantive  
          changes to the existing statute created by SB 350:

          1)Specifies that subsection (j) is the subsection 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 integrated energy policy report (IEPR),   
            after the 2019 edition.

          3)Explicitly adds 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  
            is one of the unique benefits provided by achieving the  
            Renewable Portfolio Standards (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.








          SB 1393 (De León)                                      Page 2 of  
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          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  
            Integrated resource Plan (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.
          
          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.
          


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