Senate Bill No. 1414

Introduced by Senator Wolk

(Principal coauthor: Assembly Member Williams)

February 19, 2016

An act to amend Section 399.4 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 1414, as introduced, Wolk. Public Utilities Commission: energy efficiency programs.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. The Reliable Electric Service Investments Act states the intent of the Legislature that the commission continue to administer cost-effective energy efficiency programs that produce cost-effective energy savings, reduce customer demand, and contribute to the safe and reliable operation of the electrical distribution grid. Under the act, in order to receive a rebate or incentive offered by a public utility for an energy efficiency improvement or for the installation of energy efficient components, equipment, or appliances in buildings, the recipient is required to certify that the improvement or installation complied with any applicable permitting requirements and, if a contractor performed the installation or improvement, that the contractor holds the appropriate license for the work performed.

This bill would additionally require the recipient of an energy efficiency rebate or incentive to provide proof of permit closure and certify that the improvement or installation complied with any specifications or requirements set forth in the California Building Standards Code. The bill would also more specifically identify the commission’s statutory authority for supervising cost-effective energy efficiency programs.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 399.4 of the Public Utilities Code is
amended to read:

399.4.  

(a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the
safe and reliable operation of the begin delete electric end delete begin insert electrical end insert distribution
grid, it is the policy of this state and the intent of the Legislature
that the commission shall begin delete continue to administer end delete begin insert supervise the
administration of end insert cost-effective energy efficiency programs
authorized pursuant to begin delete existing end delete begin insert its end insert statutory begin delete authority. end delete begin insert authority, end insert
begin insert including Sections 381, 381.1, 381.2, 381.5, 382, 384.5, 400, 454.5,
454.55, 454.56, 589, 701.1, 749, and 769, Article 10 (commencing
with Section 890) of Chapter 4, and Chapter 6 (commencing with
Section 2781) of Part 2. end insert

(2) As used in this section, the term “energy efficiency” includes,
but is not limited to, cost-effective activities to achieve peak load
reduction that improve end-use efficiency, lower customers’ bills,
and reduce system needs.

(b) (1) Any rebates or incentives offered by a public utility for
an energy efficiency improvement or installation of energy efficient
components, equipment, or appliances in buildings shall be
provided only if the recipient of the rebate or incentive begin insert provides
proof of permit closure and end insert certifies that the improvement or
installation has complied with any applicable permitting
requirements begin insert and any specifications or requirements set forth in
the California Building Standards Code (Title 24 of the California
Code of Regulations), end insert and, if a contractor performed the installation
or improvement, that the contractor holds the appropriate license
for the work performed.

(2) This subdivision does not imply or create authority or
responsibility, or expand existing authority or responsibility, of a
public utility for the enforcement of the building energy and water
efficiency standards adopted pursuant to subdivision (a) or (b) of
Section 25402 of the Public Resources Code, or appliance
efficiency standards and certification requirements adopted
pursuant to subdivision (c) of Section 25402 of the Public
Resources Code.

(c) The commission, in evaluating energy efficiency investments
under its begin delete existing end delete statutory authority, shall also ensure that local
and regional interests, multifamily dwellings, and energy service
industry capabilities are incorporated into program portfolio design
and that local governments, community-based organizations, and
energy efficiency service providers are encouraged to participate
in program implementation where appropriate.

(d) The commission, in a new or existing proceeding, shall
review and update its policies governing energy efficiency
programs funded by utility customers to facilitate achieving the
targets established pursuant to subdivision (c) of Section 25310
of the Public Resources Code. In updating its policies, the
commission shall, at a minimum, do all of the following:

(1) Authorize market transformation programs with appropriate
levels of funding to achieve deeper energy efficiency savings.

(2) Authorize pay for performance programs that link incentives
directly to measured energy savings. As part of pay for performance
programs authorized by the commission, customers should be
reasonably compensated for developing and implementing an
energy efficiency plan, with a portion of their incentive reserved
pending post project measurement results.

(3) Authorize programs to achieve deeper savings through
operational, behavioral, and retrocommissioning activities.

(4) Ensure that customers have certainty in the values and
methodology used to determine energy efficiency incentives by
basing the amount of any incentives provided by gas and electrical
corporations on the values and methodology contained in the
executed customer agreement. Incentive payments shall be based
on measured results.