BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1393 (De León) - Energy efficiency and pollution reduction ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 12, 2016 |Policy Vote: E., U., & C. 11 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 16, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- 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 ? 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 ? 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. -- END --