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
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|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 | |
| | | | |
| | | | |
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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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