BILL ANALYSIS Ó SB 1393 Page 1 (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, | SB 1393 Page 2 | | |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. SB 1393 Page 3 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 SB 1393 Page 4 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. SB 1393 Page 5 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 SB 1393 Page 6