BILL NUMBER: SB 1414	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 14, 2016
	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. Energy.
   Existing law requires the State Energy Resources Conservation and
Development Commission  (Energy 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  operating efficiency 
standards to be sold or offered for sale in the state unless it is
certified by the manufacturer to be in compliance with  the
  those  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.  
Commission, by January 1, 2019, to   approve a plan that
will promote the installation of central air conditioning and heat
pumps in compliance with specified regulations. The bill would
authorize the Energy Commission to adopt regulations to increase
compliance with permitting and inspection requirements for central
air conditioning and heat pumps and associated sales and
installations, consistent with that plan. 
   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 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
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.    Section 25402.12 is added to the 
 Public Resources Code   , to read:  
   25402.12.  (a) On or before January 1, 2019, the commission, in
consultation with the Contractors' State License Board, local
building officials, and other stakeholders, shall approve a plan that
will promote the installation of central air conditioning and heat
pumps in compliance with Part 6 of Title 24 of the California Code of
Regulations.
   (b) Prior to approving the plan described in subdivision (a), the
commission shall do all of the following:
   (1) Evaluate the best available technological and economic
information to ensure that data collection and its use is feasible
and achievable at a reasonable cost to government, industry, and
homeowners.
   (2) Consider the impact of the plan on all of the following:
   (A) Property owners.
   (B) The HVAC industry, including manufacturers, distributors, and
contractors.
   (C) Local governments.
   (D) Building officials.
   (E) The Contractors' State License Board.
   (3) Provide the public with the opportunity to review and comment
on the proposed plan.
   (c) The commission may adopt regulations to increase compliance
with permitting and inspection requirements for central air
conditioning and heat pumps and associated sales and installations,
consistent with the plan approved pursuant to subdivision (a). 
  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.