BILL NUMBER: SB 488 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 5, 2009
AMENDED IN SENATE APRIL 14, 2009
INTRODUCED BY Senator Pavley
FEBRUARY 26, 2009
An act to add Chapter 10.9 (commencing with Section 25945) to
Division 15 of the Public Resources Code, and to amend Section 739
of, and to add Section 9505 to, the Public Utilities Code, relating
to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 488, as amended, Pavley. Energy: energy usage information.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations and gas corporations, as defined. The existing Public
Utilities Act requires each electrical corporation and each gas
corporation to disclose on the residential customer's billing
statement specified information on usage and cost, and contact
information for the commission's Consumer Affairs Branch, and to make
available online to residential customers specified information on
usage and energy conservation measures. The act authorizes the
commission to modify, adjust, or add to these requirements as the
individual circumstances of each electrical corporation or gas
corporation merit, or for master-meter customers, as individual
circumstances merit. The act requires the commission, as part of the
general rate case of an electrical corporation or gas corporation, to
assess opportunities to improve the quality of information contained
in the utility's periodic billings.
This bill would require the commission, on or before July 1, 2010,
to require each electrical corporation and each gas corporation to
periodically disclose adopt a pilot program
to disclose, not less frequently than quarterly, on the billing
statement of a residential subscriber, information documenting the
amount of energy used by the metered residence compared to similar
residences in the subscriber's geographical area. The bill would
require the commission to require each electrical corporation and
each gas corporation to identify those residences that used
significantly more energy during the period than was used by similar
residences with comparable household s quare footage
in the subscriber's geographical area and to ensure that
information is provided to those subscribers on energy saving
strategies and programs available to assist in financing energy
efficiency improvements. The bill would require each electrical
corporation and each gas corporation, on or before July 1, 2011, and
each July 1 thereafter, to submit to the commission a report on the
energy savings resulting from the pilot program adopted by the
utility.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill are within the act and require
action by the commission to implement its requirements, a violation
of these provisions would impose a state-mandated local program by
creating a new crime.
(2) Existing law defines weatherization and requires each publicly
owned electric and gas utility that provides the energy for space
heating for low-income customers to provide home weatherization
services for those customers if a significant need for those services
exists in the utility's service territory, taking into consideration
both the cost-effectiveness of the services and the public policy of
reducing financial hardships facing low-income households. Existing
law requires each publicly owned electric and gas utility to submit a
biennial report to the State Energy Resources Conservation and
Development Commission (Energy Commission) describing the status of
their its low-income weatherization
programs.
This bill would require each local publicly owned electric utility
and each local publicly owned gas utility, on or before July 1,
2010, to adopt a pilot program to periodically
disclose , not less frequently than quarterly ,
on the billing statement of a residential subscriber, information
documenting the amount of energy used by the metered residence
compared to similar residences in the subscriber's geographical area.
The bill would require each local publicly owned electric utility
and each local publicly owned gas utility to identify those
residences that used significantly more energy during the period than
was used by similar residences with comparable household square
footage in the subscriber's geographical area and to
ensure that information is provided to those subscribers on
energy saving strategies and programs available to assist in
financing energy efficiency improvements. The bill would require each
local publicly owned electric utility and each local publicly owned
gas utility, on or before July 1, 2011, and by July 1 each year
thereafter, to report to the Energy Commission on the energy savings
resulting from the pilot program adopted by the utility
pursuant to these requirements. By placing additional requirements
upon local publicly owned electric and gas utilities, the bill would
impose 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 specified reasons.
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. Chapter 10.9 (commencing with Section 25945) is added
to Division 15 of the Public Resources Code, to read:
CHAPTER 10.9. ENERGY EFFICIENCY FINANCING PROGRAM
25945. The Legislature finds and declares all of the following:
(a) The California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500) of the Health and Safety Code)
requires the State Air Resources Board to design emissions reduction
measures in a manner that minimizes costs and maximizes benefits for
California's economy, maximizes additional environmental and economic
cobenefits for California, and complements the state's efforts to
improve air quality.
(b) To achieve the goals of the California Global Warming
Solutions Act of 2006, every sector must explore opportunities to
reduce energy consumption and related greenhouse gas emissions.
(c) There exist significant opportunities for cost-effective
energy efficiency improvements in all types of existing structures,
including residential, commercial, industrial, and municipal.
(d) California needs a systematic approach to providing every
utility-using structure in the state with an energy audit and
the opportunity to increase energy efficiency by 2020, to meet
the goals of the California Global Warming Solutions Act of 2006.
SEC. 2. Section 739 of the Public Utilities Code is amended to
read:
739. (a) As used in this section:
(1) "Baseline quantity" means a quantity of electricity or gas
allocated by the commission for residential customers based on from
50 to 60 percent of average residential consumption of these
commodities, except that, for residential gas customers and for
all-electric residential customers, the baseline quantity shall be
established at from 60 to 70 percent of average residential
consumption during the winter heating season. In establishing the
baseline quantities, the commission shall take into account climatic
and seasonal variations in consumption and the availability of gas
service. The commission shall review and revise baseline quantities
as average consumption patterns change in order to maintain these
ratios.
(2) "Residential customer" means those customers receiving
electrical or gas service pursuant to a domestic rate schedule and
excludes industrial, commercial, and every other category of
customer.
(b) The commission shall designate a baseline quantity of gas and
electricity which is necessary to supply a significant portion of the
reasonable energy needs of the average residential customer. In
estimating those quantities, the commission shall take into account
differentials in energy needs between customers whose residential
energy needs are currently supplied by electricity alone or by both
electricity and gas. The commission shall develop a separate baseline
quantity for all-electric residential customers. For these purposes,
"all-electric residential customers" are residential customers
having electrical service only or whose space heating is provided by
electricity, or both. The commission shall also take into account
differentials in energy use by climatic zone and season.
(c) (1) The commission shall establish a standard limited
allowance which shall be in addition to the baseline quantity of gas
and electricity for residential customers dependent on life-support
equipment, including, but not limited to, emphysema and pulmonary
patients. A residential customer dependent on life-support equipment
shall be allocated a higher energy allocation than the average
residential customer.
(2) "Life-support equipment" means that equipment which utilizes
mechanical or artificial means to sustain, restore, or supplant a
vital function, or mechanical equipment which is relied upon for
mobility both within and outside of buildings. "Life-support
equipment," as used in this subdivision, includes all of the
following: all types of respirators, iron lungs, hemodialysis
machines, suction machines, electric nerve stimulators, pressure pads
and pumps, aerosol tents, electrostatic and ultrasonic nebulizers,
compressors, IPPB machines, and motorized wheelchairs.
(3) The limited allowance specified in this subdivision shall also
be made available to paraplegic and quadriplegic persons in
consideration of the increased heating and cooling needs of those
persons.
(4) The limited allowance specified in this subdivision shall also
be made available to multiple sclerosis patients in consideration of
the increased heating and cooling needs of those persons.
(5) The limited allowance specified in this subdivision shall also
be made available to scleroderma patients in consideration of the
increased heating needs of those persons.
(6) The limited allowance specified in this subdivision shall also
be made available to persons who are being treated for a
life-threatening illness or have a compromised immune system, if a
licensed physician and surgeon or a person licensed pursuant to the
Osteopathic Initiative Act certifies in writing to the utility that
the additional heating or cooling allowance, or both, is medically
necessary to sustain the life of the person or prevent deterioration
of the person's medical condition.
(d) (1) The commission shall require that every electrical and gas
corporation file a schedule of rates and charges providing baseline
rates. The baseline rates shall apply to the first or lowest block of
an increasing block rate structure which shall be the baseline
quantity. In establishing these rates, the commission shall avoid
excessive rate increases for residential customers, and shall
establish an appropriate gradual differential between the rates for
the respective blocks of usage.
(2) In establishing residential electric and gas rates, including
baseline rates, the commission shall assure that the rates are
sufficient to enable the electrical corporation or gas corporation to
recover a just and reasonable amount of revenue from residential
customers as a class, while observing the principle that electricity
and gas services are necessities, for which a low affordable rate is
desirable and while observing the principle that conservation is
desirable in order to maintain an affordable bill.
(3) At least until December 31, 2003, the commission shall require
that all charges for residential electric customers are volumetric,
and shall prohibit any electrical corporation from imposing any
charges on residential consumption that are independent of
consumption, unless those charges are in place prior to April 12,
2001.
(e) (1) Each electrical corporation and each gas corporation
shall, in a timeframe consistent with each electrical and gas
corporation's next general rate case, disclose on the billing
statement of a residential customer all of the following:
(A) Cost per kilowatthour or gas therm per tier.
(B) Allocation of kilowatthour or gas therm per tier.
(C) Visual representation of usage and cost per tier.
(D) Usage comparison with prior periods.
(E) Itemized cost components in the bill to identify state and
local taxes.
(F) Identification of delivery, generation, public purpose, and
other charges.
(G) Contact information for the commission's Consumer Affairs
Branch.
(2) An electrical corporation and a gas corporation shall make
available online to residential customers both of the following:
(A) Examples of how conservation measures, including changing
thermostat settings and turning off unused lights, could reduce
energy usage and costs.
(B) Examples of how energy-saving devices and weatherization
measures could reduce energy usage and costs.
(3) The commission may modify, adjust, or add to the requirements
of this subdivision as the individual circumstances of each
electrical corporation or gas corporation merits, or for master-meter
customers, as individual circumstances merit.
(4) The commission shall, as part of the general rate case of an
electrical corporation or gas corporation, assess opportunities to
improve the quality of information contained in the utility's
periodic billings.
(f) (1) On or before July 1, 2010, the commission shall require
each electrical corporation and each gas corporation to
periodically disclose adopt a pilot program to
disclose, not less frequently than quarterly , on the billing
statement of a residential subscriber, information documenting the
amount of energy used by the metered residence compared to similar
residences in the subscriber's geographical area.
(2) The commission shall require each electrical corporation and
each gas corporation to identify those residences that used
significantly more energy during the period than was used by similar
residences with comparable household square footage in the
subscriber's geographical area and ensure that information is
provided to those subscribers , on energy saving
strategies and programs available to assist in financing energy
efficiency improvements.
(g) On or before July 1, 2011, and each July 1 thereafter, each
electrical corporation and each gas corporation shall submit to the
commission a report on the energy savings resulting from the pilot
program adopted by the utility pursuant to subdivision (f).
(g)
(h) Wholesale electrical or gas purchases,
and the rates charged therefor, are exempt from this section.
(h)
(i) Nothing contained in this section shall
be construed to prohibit experimentation with alternative gas or
electrical rate schedules for the purpose of achieving energy
conservation.
SEC. 3. Section 9505 is added to the Public Utilities Code, to
read:
9505. (a) On or before July 1, 2010, each local publicly owned
electric utility and each local publicly owned gas utility shall
adopt a program to periodically disclose
pilot program to disclose, not less frequently than quarterly ,
on the billing statement of a residential subscriber, information
documenting the amount of energy used by the metered residence
compared to similar residences in the subscriber's geographical area.
(b) Each local publicly owned electric utility and each local
publicly owned gas utility shall identify those residences that used
significantly more energy during the period than was used by similar
residences with comparable household square footage in the
subscriber's geographical area and ensure that information is
provided to those subscribers on energy saving strategies and
programs available to assist in financing energy efficiency
improvements.
(c) On or before July 1, 2011, and each July 1 thereafter, each
local publicly owned electric utility and each local publicly owned
gas utility shall report to the Energy Commission on the energy
savings resulting from the pilot program adopted by the
utility pursuant to this section subdivision
(a) .
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
With respect to certain other costs, 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.