BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1393


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          (Without Reference to File)





          SENATE THIRD READING


          SB  
          1393 (De León)


          As Amended  August 31, 2016


          Majority vote


          SENATE VOTE:  27-8


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Utilities &     |10-4 |Gatto, Burke, Eggman,  |Patterson, Chávez,   |
          |Commerce        |     |                       |Dahle, Obernolte     |
          |                |     |                       |                     |
          |                |     |Cristina Garcia,       |                     |
          |                |     |Eduardo Garcia, Roger  |                     |
          |                |     |Hernández, Quirk,      |                     |
          |                |     |Santiago, Ting,        |                     |
          |                |     |Williams               |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |14-6 |Gonzalez, Bloom,       |Bigelow, Chang,      |








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          |                |     |Bonilla, Bonta,        |Gallagher, Jones,    |
          |                |     |Calderon, Daly,        |Obernolte, Wagner    |
          |                |     |Eggman, Eduardo        |                     |
          |                |     |Garcia, Holden, Quirk, |                     |
          |                |     |Santiago, Weber, Wood, |                     |
          |                |     |Chau                   |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
           -------------------------------------------------------------------- 


          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)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 (Núńez), Chapter 488, Statutes of  
            2006, environmental justice advisory committee to the entities  
            from which the CEC and California Air Resources Board (CARB)  
            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.








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          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.


          6)Expands the requirement 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)Further qualifies the requirement that the CPUC 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).


          9)Removes the criteria Municipal Solid Waste (MSW) contracts  
            entered into prior to January 1, 2017. 


          10)Conforms the exemption applied to the Merced Irrigation  








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            District to the exemption currently applied to POUs with  
            similar hydroelectric generations.


          11)Strikes the notification requirements for POU procurement  
            plans.


          12)Clarifies language regarding cost allocation for  
            non-performance. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Increased annual CARB costs of approximately $80,000 (Cost of  
            Implementation).


          2)Increased absorbable annual CEC costs.


          3)Minor, absorbable CPUC 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% 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. 










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          Additional amendments clean up inconsistencies and ambiguities  
          in current law and remove some POU reporting requirements that  
          are no longer needed:


          a)Provides clarity for determining MSW generation's eligibility  
            for renewable energy credits.  Existing law regarding the  
            credit eligibility of MSW generation procured under a contract  
            established before January 1, 2017, makes existing law's  
            intent ambiguous.
          b)Conforms the current exemption applied to the Merced  
            Irrigation District to the exemption currently applied to POUs  
            with similar hydroelectric generations.
          c)Removes the requirement for POUs to post procurement plan  
            information to the POU Web site.
          d)Current language suggests that as a condition of CPUC approval  
            of a Community Choice Aggregator (CCA) proposal related to  
            renewable integration, the CPUC would have to find that in the  
            proposal "all costs resulting from nonperformance will be  
            borne by the electrical corporation or CCA responsible for  
            them."  From a technical perspective ensuring costs are borne  
            by the entity that causes them should be a responsibility of  
            the CPUC, and not necessarily a condition for approval of a  
            CCA proposal.




          Analysis Prepared by:                                             
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0005043
















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