BILL NUMBER: SB 1414	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 12, 2016

INTRODUCED BY   Senator Wolk
   (Principal coauthor: Assembly Member Williams)

                        FEBRUARY 19, 2016

   An act to  add Section 25402.12 to the Public Resources Code,
and to  amend Section 399.4 of the Public Utilities Code,
relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1414, as amended, Wolk.  Public Utilities Commission:
energy efficiency programs.   Energy.  
   Existing law requires the State Energy Resources Conservation and
Development Commission to prescribe, by regulation, building design
and construction standards and energy and water conservation design
standards for new residential and nonresidential buildings. Existing
law requires the State Energy Resources Conservation and Development
Commission to prescribe, by regulation, standards for minimum levels
of operating efficiency to promote the use of energy-efficient and
water-efficient appliances whose use requires a significant amount of
energy or water on a statewide basis. Existing law requires that the
minimum levels of operating efficiency be based on feasible and
attainable efficiencies or feasible improved efficiencies that will
reduce the energy or water consumption growth rates. Existing law
prohibits a new appliance manufactured on or after the effective date
of the standards to be sold or offered for sale in the state unless
it is certified by the manufacturer to be in compliance with the
standards.  
   This bill would require the State Energy Resources Conservation
and Development Commission to develop a system to track central
heating and air cooling equipment sales and installations in the
state to verify compliance with permitting, inspection, and equipment
testing requirements. 
   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   Public
Utilities 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   Public Utility 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 25402.12 is added to the 
 Public Resources Code   , to read:  
   25402.12.  The commission, in consultation with the Contractors'
State License Board, local building officials, and other
stakeholders, shall develop a system to track central heating and air
cooling equipment sales and installations in the state to verify
compliance with permitting, inspection, and equipment testing
requirements. Any system developed by the commission shall be adopted
by regulation following one or more public hearings. 
   SECTION 1.   SEC. 2.   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 electrical distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall supervise the administration of cost-effective
energy efficiency programs authorized pursuant to its statutory
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 (commencing
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 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.