BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1393|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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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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