BILL ANALYSIS Ó
SB 1393
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Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Mike Gatto, Chair
SB
1393 (De León) - As Amended April 12, 2016
SENATE VOTE: 27-8
SUBJECT: Energy efficiency and pollution reduction
SUMMARY: 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). Specifically, this bill:
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 California Energy Commission (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)Adds, explicitly, the AB 32 (Núñez), Chapter 488, Statutes of
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2006, environmental justice advisory committee to the entities
from which the CEC and California Air Resources Board (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
renewable portfolio standard (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 Health and Safety Code
Section 39711.
6)Expands the requirement in existing law that the California
Public Utilities Commission (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
publicly-owned utility's (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
investor-owned utilities.
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 Section 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 Section 399.12. (Health and
Safety Code Section 44258.5)
3)Requires the CEC, as part of the 2019 edition of the IEPR, to
evaluate the actual energy efficiency savings from negative
therm interactive effects generated as a result of electricity
efficiency improvements. (Public Resources Code Section
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
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communities. (Public Resources Code Section 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
Section 25327(c))
6)Requires the 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
Section 25327(d))
7)Lists reducing air pollution in the state as one of the unique
benefits provided by achieving the RPS through procurement of
various electricity products, each of which independently
justifies the RPS program. (Public Utilities Code Section
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 Section 399.11(e)(1))
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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 Section 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 Health and Safety Code Section 39711; 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
Section 400(d) and (e))
11)Requires the governing board of a local POU to adopt an IRP
and a process for updating that plan to ensure the plan
achieves several goals, including: a) procurement of at least
50% 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 Section
9621(b)(2) and (3))
FISCAL EFFECT: Unknown.
COMMENTS:
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1)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% 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.
The author may wish to consider an additional clarifying
amendment related to costs related to renewable integration to
ensure that . Current law implies costs resulting from
nonperformance will be borne by the electrical corporation.
However, this statute applies to other entities, such as
community choice aggregators (CCAs). The amendment would
clarify that the costs are borne by the entity responsible for
those costs.
2) Proposed Amendment:
454.51. The commission shall do all of the following:
(a) Identify a diverse and balanced portfolio of resources
needed to ensure a reliable electricity supply that provides
optimal integration of renewable energy in a cost-effective
manner. The portfolio shall rely upon zero carbon-emitting
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resources to the maximum extent reasonable and be designed to
achieve any statewide greenhouse gas emissions limit
established pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500) of the Health and Safety Code) or any successor
legislation.
(b) Direct each electrical corporation to include, as part of
its proposed procurement plan, a strategy for procuring
best-fit and least-cost resources to satisfy the portfolio
needs identified by the commission pursuant to subdivision
(a).
(c) Ensure that the net costs of any incremental renewable
energy integration resources procured by an electrical
corporation to satisfy the need identified in subdivision (a)
are allocated on a fully nonbypassable basis consistent with
the treatment of costs identified in paragraph (2) of
subdivision (c) of Section 365.1.
(d) Permit community choice aggregators to submit proposals
for satisfying their portion of the renewable integration need
identified in subdivision (a). If the commission finds this
need is best met through long-term procurement commitments for
resources, community choice aggregators shall also be required
to make long-term commitments for resources. The commission
shall approve proposals pursuant to this subdivision if it
finds all of the following:
(1) The resources proposed by a community choice aggregator
will provide equivalent integration of renewable energy.
(2) The resources proposed by a community choice aggregator
will promote the efficient achievement of state energy policy
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objectives, including reductions in greenhouse gas emissions.
(3) Bundled customers of an electrical corporation will be
indifferent from the approval of the community choice
aggregator proposals.
(4) All costs resulting from nonperformance be borne by the
electrical corporation or community choice aggregator
responsible for them .
(e) Ensure all costs resulting from nonperformance to satisfy
the need in subdivision (a) or (d), as applicable will be
borne by the electrical corporation or community choice
aggregator that failed to perform.
2)Related Legislation:
SB 350 (De León), Chapter 547, Statutes of 2015: Establishes
targets to increase retail sales of renewable electricity to
50% by 2030 and double the energy efficiency savings in
electricity and natural gas end uses by 2030.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
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Opposition
None on file.
Analysis Prepared by:Sue Kateley / U. & C. / (916)
319-2083