BILL ANALYSIS
AB 2132
Page 1
ASSEMBLY THIRD READING
AB 2132 (Carter)
As Amended May 28, 2010
2/3 vote
NATURAL RESOURCES 5-0 UTILITIES & COMMERCE
13-0
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|Ayes:|Chesbro, Gilmore, |Ayes:|Knight, Buchanan, Carter, |
| |Brownley, | |Fletcher, Fong, Fuentes, |
| |De Leon, Logue | |Fuller, Furutani, |
| | | |Huffman, Ma, Swanson, |
| | | |Villines, Bradford |
| | | | |
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APPROPRIATIONS 11-5
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|Ayes:|Fuentes, Ammiano, | | |
| |Bradford, | | |
| |Charles Calderon, Coto, | | |
| |Davis, Monning, Ruskin, | | |
| |Solorio, Torlakson, | | |
| |Torrico | | |
| | | | |
|-----+---------------------------+---+--------------------------|
|Nays:|Conway, Harkey, Miller, | | |
| |Nielsen, Norby | | |
| | | | |
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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. Specifically, this bill
authorizes:
1)Until January 1, 2012, the use of the RRTF for energy
improvements in existing buildings built prior to July 1,
1978.
2)The CEC to provide monetary rebates, buy downs, or equivalent
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incentives, as defined, to purchasers, lessees, lessors, or
sellers of eligible energy efficiency measures in order to
reduce their purchase cost until January 1, 2012.
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% of the RRTF to foster the development of
emerging renewable technologies, 20% for existing renewable
technologies, and approximately 1% for program administration
and for renewable energy programs for electrical customers
that are otherwise underrepresented in the market.
FISCAL EFFECT : According to the Assembly Appropriations
Committee: 1) authorizes grants from the approximately $134
million balance in the Emerging Renewable Resources Account of
the RRTF for uses not presently permitted. According to the
Governor's 2010-11 Budget, there is a projected balance of about
$170 million in the RRTF, which presumes a repayment of a loan
to the GF of $35 million; and 2) negligible costs to CEC to
administer grants.
COMMENTS : This bill permits the CEC to use the RRTF to support
energy efficiency investments will to reduce energy consumption
in residential and nonresidential 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
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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) Chapter 15,
Statutes of 2010, proposes to withdraw $50 million from this
fund for deposit into the 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. The RRTF will still be available for
emerging renewable technology development.
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.
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Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916)
319-2092 FN:
0004709