BILL ANALYSIS Ó
SB 1393
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1393
(De León) - As Amended April 12, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
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, Chapter 547, Statutes
of 2015). Specifically, this bill:
SB 1393
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1)Clarifies a cross reference of the meaning of "retail seller"
as specified.
2)Requires the California Energy Commission (CEC) to continue to
evaluate the energy efficiency savings from negative therm
interactive effects from 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 Air Resources
Board (ARB) must receive input when completing their studies
on barriers to low-income and disadvantaged communities, as
specified.
4)Specifies the types of air pollution, the reduction of which
is one of the unique benefits achieved by the Renewable
Portfolio Standard (RPS) through procurement of various
electricity products.
5)Modifies the existing statutory declaration of the necessity
of supplying renewable electricity to California end-use
customers to improve California's air quality and public
health to explicitly highlight that it is particularly
necessary in disadvantaged communities, as defined.
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6)Expands the requirement that the California Public Utilities
Commission (PUC) 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)Further qualifies the requirement that the PUC and CEC give
first priority to the manufacture and deployment of clean
energy and pollution reduction technologies that create
employment opportunities and increased investment in the
state. Requires the agencies to ensure activities are
consistent with state and federal law and specifies job
creation happens in the state.
8)Clarifies 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 (IOUs).
FISCAL EFFECT:
1)Increased annual ARB costs of approximately $80,000 (Cost of
Implementation).
2)Increased absorbable annual CEC costs.
SB 1393
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3)Minor, absorbable PUC costs.
COMMENTS:
Background and Purpose. In 2015, the Legislature passed the
Clean Energy and Pollution Reduction Act, also known as SB 350.
SB 350 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. According to the author, this bill provides several
noncontroversial technical and clarifying amendments to last
year's SB 350.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081