BILL NUMBER: SB 1414 INTRODUCED
BILL TEXT
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 electric
electrical distribution grid, it is the policy of this state
and the intent of the Legislature that the commission shall
continue to administer supervise the administration of
cost-effective energy efficiency programs authorized pursuant
to existing its statutory
authority. authority, 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 (commencin g with Section 2781)
of Part 2.
(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 provides proof
of permit closure and certifies that the improvement or
installation has complied with any applicable permitting requirements
and any specifications or requirements set forth in the
California Building Standards Code (Title 24 of the California Code
of Regulations), 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 existing 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.