BILL ANALYSIS
AB 2132
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Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2132 (Carter) - As Amended: April 13, 2010
SUBJECT : Energy: renewable energy resources and energy
improvements.
SUMMARY : Establishes that the portion of the Renewable
Resources Trust Fund (RRTF), generated from the Public Goods
Charge, and administered by the California Energy Commission
(CEC) may be used for energy improvements in existing buildings
built prior to July 1, 1978, in addition to the development of
emerging renewable energy technologies.
EXISTING LAW :
1)Establishes the renewable energy public goods charge (PGC)
which is administered by the PUC and is collected on the basis
of electrical usage from California investor-owned utilities
(IOUs).
2)Appropriates a portion of the PGC for deposit into the RRTF
which was established in 1997 to promote development and
expansion of in-state renewable electricity generation. The
RRTF is administered by the CEC.
3)Designates 79 percent of the RRTF to foster the development of
emerging renewable technologies, 20 percent for existing
renewable technologies, and approximately 1 percent for
program administration and for renewable energy programs for
electrical customers that are otherwise underrepresented in
the market.
THIS BILL :
1)Authorizes the use of the RRTF for energy improvements in
existing buildings built prior to July 1, 1978.
2)Authorizes the CEC to provide monetary rebates, buy downs, or
equivalent incentives, as defined, to purchasers, lessees,
lessors, or sellers of eligible energy efficiency measures in
order to reduce their purchase cost.
AB 2132
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FISCAL EFFECT : Unknown
COMMENTS :
This bill permits the CEC to use the RRTF to support energy
efficiency investments will to reduce energy consumption in
residential and commercial buildings built prior to July 1, 1978
when Title 24 building efficiency standards went into effect.
It is estimated that California's building efficiency standards
(along with those for energy efficient appliances) have saved
over $56 billion in electricity and natural gas costs since the
implementation of Title 24 standards. It is estimated that the
majority of existing buildings in California were built before
1978, many of which are currently not up to Title 24 standards.
Energy efficiency is a historical priority for California. In
2005, SB 1037 (Kehoe), Chapter 366, Statutes of 2005,
legislation codified the state's energy "loading order," or
prioritized energy procurement list, emphasizing the
Legislature's commitment to energy efficiency, as well as
establishing energy efficiency as a top priority for both IOUs
and publicly owned utilities (POUs). All utilities were
required to acquire all available energy efficiency and demand
reduction resources that are cost effective, reliable, and
feasible. Since energy efficiency was considered to be the most
cost-effective method of accommodating the growing electric load
needs in California, all utilities would be responsible for
exhausting all possible efficiency solutions before acquiring
new energy sources whether they were renewable or fossil fuel
resources, and before the construction of new transmission
lines.
The RRTF was established in 1997 to promote development and
expansion of in-state renewable electricity generation. Revenues
to the RRTF are provided through surcharges levied on ratepayers
by utilities, and are used to support various renewable energy
programs administered by the CEC. Seventy nine percent of the
RRTF proceeds are dedicated to the emerging renewable energy
program, which provides financial incentives to encourage the
installation of new energy technologies (primarily solar panels)
in new residential construction. This program has been
undersubscribed during recent years due to the lack of new
construction projects, and currently has a large uncommitted
balance of about $170 million. SB 77 (Pavley), proposes to
withdraw $50 million from this fund for deposit into the
AB 2132
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California Alternative Energy and Advanced Transportation
Financing Authority (CAEATFA) for use in Property Assessed Clean
Energy (PACE) programs. The $50 million transferred would be
utilized for energy improvements for new and existing homes in
California. This bill makes the remaining $120 million surplus
available for a wider range of building energy improvements. SB
77 has been enrolled and is currently waiting for the Governor's
signature. The RRTF will still be available for emerging
renewable technology development.
Related Legislation: AB 758 (Skinner), Chapter 470, Statutes of
2009, requires the CEC to develop and implement a comprehensive
program to achieve greater energy savings in existing
residential and nonresidential building stock, including energy
assessments, cost-effective energy efficiency improvements,
financing options, public outreach, and education efforts.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916)
319-2092