BILL NUMBER: AB 758	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Members Skinner and Bass
   (Coauthor: Assembly Member Torrico)

                        FEBRUARY 26, 2009

   An act to add Section 25943 to the Public Resources Code, and to
add Sections 381.2 and 385.2 to the Public Utilities Code, relating
to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 758, as amended, Skinner. Energy: energy audit.
   (1) Existing law requires the State Energy Resources Conservation
and Development Commission (Energy Commission), in its biennial
energy conservation report, to report on the progress made to
implement a statewide home energy rating program.
   This bill would require the Energy Commission, by March 1, 2010,
to establish a regulatory proceeding to develop a comprehensive
program to achieve greater energy savings in the state's existing
residential and commercial building stock. In developing the
requirements, the Energy Commission would be required to coordinate
with specified entities and to consider certain  specified
 factors. Before adopting the requirements, the Energy
Commission would be required to consult with specified entities and
to hold at least 3 public hearings. The Energy Commission would be
required to periodically update the comprehensive program to improve
or refine the program requirements. The Energy Commission would be
required to report on the status of the program in the integrated
energy policy report.
   (2) Existing law requires the Public Utilities Commission (PUC) to
order certain electrical corporations to collect and spend certain
funds for public benefit programs, including cost-effective energy
efficiency and conservation programs.
   The bill would require the PUC, by March 1, 2010, to open a
proceeding to investigate the ability of electrical corporations to
provide energy efficiency financing options to their customers to
implement the comprehensive program  that would be 
developed by the Energy Commission pursuant to this act. The PUC, by
January 1, 2011, after consultation with the Energy Commission, would
be required to authorize an electrical corporation to provide a
targeted number of low- or no-cost energy efficiency audits each
calendar year. The electrical corporation would be required to
recommend to a building owner cost-effective energy efficiency
improvements after the completion of the energy audit. The PUC would
be required to report annually to the Legislature and the Energy
Commission on specified information.
   This bill would require a local publicly owned utility, by a
specified date, to be responsible for implementing an energy
efficiency program that recognizes the Legislature's intent to
encourage energy savings and greenhouse gas emission reductions in
existing residential and commercial buildings. A local publicly owned
utility would be required annually to report to its customers and
the Energy Commission on the implementation of the program. Because a
local publicly owned utility would be responsible for the
implementation of an energy efficiency program and  to
provide   the provision of  an annual report to its
customers and the Energy Commission on the implementation of the
program, this bill would increase the level of service provided by a
local agency, thereby imposing a state-mandated local program.
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature recognizes both of the following:
   (1) The significant energy savings and greenhouse gas emission
reductions inherent in the state's existing residential and
commercial building stock.
   (2) The need to establish a comprehensive energy efficiency
program to capture these reductions.
   (b) The Legislature further recognizes that a comprehensive energy
efficiency program should include components necessary to ensure
meaningful and reliable energy audits, cost-effective energy
efficiency improvements, public and private sector energy efficiency
financing options, public outreach and education, and green workforce
training.
  SEC. 2.  Section 25943 is added to the Public Resources Code, to
read:
   25943.  (a) (1) By March 1, 2010, the commission shall establish a
regulatory proceeding to develop and implement a comprehensive
program to achieve greater energy savings in California's existing
residential and commercial building stock. This program shall
comprise a complementary portfolio of techniques, applications, and
practices that will achieve greater energy efficiency in existing
residential and commercial structures that fall significantly below
the current standards in Title 24 of the California Code of
Regulations, as determined by the commission.
   (2) The comprehensive program may include, but need not be limited
to, a broad range of energy audits, building benchmarking, energy
rating, cost-effective energy efficiency improvements, public and
private sector energy efficiency financing options, public outreach
and education efforts, expanded utility energy efficiency programs,
and green workforce training.
   (b) To develop and implement the program specified in subdivision
(a), the commission shall do both of the following:
   (1) Coordinate with the Public Utilities Commission and consult
with representatives from the Department of Real Estate, the
Department of Housing and Community Development, investor-owned and
publicly owned utilities, local governments, real estate licensees,
commercial and home builders, commercial property owners, small
businesses, mortgage lenders, financial institutions, home
appraisers, inspectors, energy rating organizations, consumer groups,
environmental and environmental justice groups, and other entities
the commission deems appropriate.
   (2) Hold at least three public hearings in geographically diverse
locations throughout the state.
   (c) In developing the requirements for the program specified in
subdivision (a), the commission shall consider all of the following:
   (1) The amount of annual and peak energy savings, greenhouse gas
emission reductions, and projected customer utility bill savings that
will accrue from the program.
   (2) The most cost-effective means and reasonable timeframes to
increase the number of annual energy audits conducted on existing
residential and commercial buildings, pursuant to subdivision (a), to
meet the statewide reduction targets and goals in subdivision (b) of
Section 381.2 of the Public Utilities Code.
   (3) The various climatic zones within the state.
   (4) An appropriate method to inform and educate the public about
the need for, benefits of, and environmental impacts of  , 
the comprehensive energy efficiency program.
   (5) The most effective way to report the audit results and the
corresponding energy efficiency improvements to the owner of the
residential or commercial building, including, among other things,
the following:
   (A) Prioritizing the identified energy efficiency improvements.
   (B) The payback period of each improvement identified.
   (C) The various incentives, loans, grants, and rebates offered to
finance the improvements.
   (D) Available financing options including all of the following:
   (i) Mortgages or sales agreement components.
   (ii) On-bill financing.
   (iii) Contractual property tax assessments.
   (iv) Home warranties.
   (6) Existing statutory and regulatory requirements to achieve
energy efficiency savings and greenhouse gas emission reductions.
   (7) Any other considerations deemed appropriate by the commission.

   (d) The program developed pursuant to this section shall do all of
the following:
   (1) Minimize the overall costs of establishing the comprehensive
energy efficiency program requirements.
   (2) Ensure, for residential buildings, that the energy efficiency
audits or improvements  are not required as a condition of
sale and  do not unreasonably or unnecessarily affect the
home purchasing process or the ability of individuals to rent
housing. A transfer of property subject to the program
implemented pursuant to this section shall not be invalidated solely
because of the failure of a person to comply with a provision of the
program. 
   (3) Ensure, for nonresidential buildings, that the energy
improvements do not have an undue economic impact on California
businesses.
   (4) Determine, for residential buildings, the appropriateness of
the Home Energy Rating System (HERS) program to accomplish the goals
of this section and whether there are a sufficient number of
HERS-certified raters available to meet the program requirements.
   (5) Determine, for nonresidential structures, the availability of
an appropriate cost-effective energy efficiency auditing system and
whether there are a sufficient number of certified raters or auditors
available to meet the program requirements.
   (6) Coordinate with the California Workforce Investment Board, the
Employment Training Panel, the California Community Colleges, and
other entities to ensure a qualified, well-trained workforce is
available to implement the program requirements.
   (e) A home energy rating or audit service does not meet the
requirements of this section unless the service has been certified by
the commission to be in compliance with the program criteria
developed pursuant to this section and is in conformity with other
applicable elements of the program.
   (f) The commission shall periodically update the criteria and
adopt any revision that, in its judgment, is necessary to improve or
refine program requirements after receiving public input.
   (g) Before implementing an element of the program developed
pursuant to subdivision (a) that requires the expansion of statutory
authority of the commission or the Public Utilities Commission, the
commission and the Public Utilities Commission shall obtain
legislative approval for the expansion of their authorities.
   (h) The commission shall report on the status of the program in
the integrated energy policy report pursuant to Section 25302.
  SEC. 3.  Section 381.2 is added to the Public Utilities Code, to
read:
   381.2.  (a) By March 1, 2010, the commission shall open a
proceeding to investigate the ability of electrical corporations to
provide various energy efficiency financing options to their
customers for the purposes of implementing the program developed
pursuant to Section 25943 of the Public Resources Code.
   (b) By January 1, 2011, after consultation with the Energy
Commission, the commission shall authorize each electrical
corporation to provide a targeted number of low- or no-cost energy
efficiency audits to be completed in an expedited and cost-effective
manner each calendar year. Upon the completion of the energy audit,
the electrical corporation shall recommend to the building owner
cost-effective energy efficiency improvements based on the criteria
established by the Energy Commission pursuant to Section 25943 of the
Public Resources Code.
   (c) The commission shall identify and attribute the energy
efficiency savings within each electrical corporation service
territory to the electrical corporation serving that territory.
   (d) The commission shall provide an annual report to the
Legislature and the Energy Commission that details the number of
buildings audited, the amount of actual energy savings resulting from
the energy efficiency improvements, the types of financing options
used to implement the improvements, and the backlog of unfulfilled
energy efficiency audit requests.
  SEC. 4.  Section 385.2 is added to the Public Utilities Code, to
read:
   385.2.  (a) Upon implementation of subdivision (b) of Section
381.2, and the completion and promulgation of regulations pursuant to
subdivision (a) of Section 25943 of the Public Resources Code, each
governing body of a local publicly owned electric utility, as defined
in Section 9604, shall be responsible for implementing an energy
efficiency program that recognizes the intent of the Legislature to
encourage energy savings and greenhouse gas emission reductions in
existing residential and commercial buildings, while taking into
consideration the effect of the program on rates, reliability, and
financial resources.
   (b) A local publicly owned electric utility shall report annually
to its customers and the Energy Commission, all of the following:
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
   (2) The amount of money that was designated for energy efficiency
audits on an annual basis and the amount remaining in the fund.
   (3) The number of buildings that were audited.
   (4) The backlog, if any, of requests for an energy efficiency
audit.
   (5) The types of energy efficiency financing options offered by
the utility and the number of customers who have taken advantage of
these financing options.
   (6) The net energy savings from energy efficiency improvements
installed after an audit pursuant to this section.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.