BILL NUMBER: SB 1414 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2016
PASSED THE ASSEMBLY AUGUST 23, 2016
AMENDED IN ASSEMBLY AUGUST 19, 2016
AMENDED IN ASSEMBLY AUGUST 3, 2016
AMENDED IN ASSEMBLY AUGUST 1, 2016
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, 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 Energy 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 those standards.
This bill would require the Energy Commission, by January 1, 2019,
to approve a plan that will promote compliance with specified
regulations in the installation of central air conditioning and heat
pumps. 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 limit the application of the above energy
efficiency rebate and incentive provisions to customer or contractor
recipients. The bill would require a customer or contractor to
certify that an energy efficiency improvement or installation
complies with any applicable specifications or requirements set forth
in the California Building Standards Code in order to receive a
rebate or incentive. The bill would require a customer or contractor
receiving a rebate or incentive offered by a public utility for
purchasing or installing central air conditioning or a heat pump, and
their related fans, to additionally provide a proof of permit
closure. The bill would also more specifically identify the Public
Utility Commission's statutory authority for supervising
cost-effective energy efficiency programs.
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. (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 compliance with Part 6 of Title 24 of the California
Code of Regulations in the installation of central air-conditioning
and heat pumps.
(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 heating, ventilation, and air-conditioning 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) If a customer or contractor is the recipient of a rebate
or incentive offered by a public utility for an energy efficiency
improvement or installation of energy efficient components,
equipment, or appliances in a building, the public utility shall
provide the rebate or incentive only if the customer or contractor
certifies that the improvement or installation has complied with any
applicable permitting requirements, including any applicable
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) In addition to the requirements of paragraph (1), if a
customer or contractor is the recipient of a rebate or incentive
offered by a public utility for the purchase or installation of
central air-conditioning or a heat pump, and their related fans, the
public utility shall provide the rebate or incentive only if the
customer or contractor provides proof of permit closure. The public
utility is not responsible for verifying the proof of permit closure
documentation provided by the customer or contractor.
(3) 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.
(4) Nothing in this subdivision shall limit the authority of the
commission to impose any additional requirements on a recipient of
any rebate or incentive.
(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.