BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1393|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 1393
          Author:   De León (D) 
          Amended:  4/12/16  
          Vote:     21 

           SENATE ENERGY, U. & C. COMMITTEE:  11-0, 4/19/16
           AYES:  Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,  
            Leyva, McGuire, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  6-1, 5/23/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza
           NOES:  Nielsen

           SUBJECT:   Energy efficiency and pollution reduction


          SOURCE:    Author

          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 (SB 350, De León,  
          Chapter 547, Statutes of 2015).

          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  








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             provided in Public Utilities Code Section 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 (a) barriers to, and opportunities  
             for, solar photovoltaic energy generation as well as barriers  
             to, and opportunities for, access to other renewable energy  
             by low-income customers, and (b) 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))







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           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 directs the California Public  
             Utilities Commission (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)

           10)Directs the 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  
             CPUC 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 statute created by SB 350. Specifically,  
          this bill:







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           1) Specifies the subsection - subsection (j) - of Public  
             Utilities Code Section 399.12 to which the meaning of "retail  
             seller" is cross-referenced in Health and Safety Code Section  
             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) Adds, explicitly, 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 Section 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 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 Section  
             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) Qualifies further 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  







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             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.  The bill 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.  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.


          Prior/Related Legislation
          
          SB 350 (De León, 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.:YesLocal:   No

          According to the Senate Appropriations Committee:

           $77,000 annually (Cost of Implementation Fund) to the ARB.
           $10,000 (General Fund) annually to the CEC.
           Minor costs to the CPUC.


          SUPPORT:   (Verified5/23/16)


          Sierra Club California







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          OPPOSITION:   (Verified5/23/16)


          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.


           


          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
          5/25/16 13:50:30


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