BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 730
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 730 (Wiggins) - As Amended:  August 2, 2010

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            15-0

          Urgency:     No                   State Mandated Local Program:   
          No     Reimbursable:              

           SUMMARY  

          This bill requires local participation in the development of  
          electrical utility energy efficiency programs.  Specifically,  
          this bill:

          1)Specifically refers, by code reference, to the Sonoma County  
            Regional Climate Protection Authority (SCRCPA) as a regional  
            interest with whom the Public Utilities Commission (PUC) must  
            ensure is incorporated into energy efficiency program design.

          2)Requires the PUC to seek participation from local governments,  
            community-based organizations, and energy efficiency service  
            providers in the design, revision, and implementation of  
            energy efficiency programs. (Current law only requires the PUC  
            to ensure that these entities are encouraged to participate in  
            program implementation.)

          3)Requires investor-owned electrical utilities (IOUs), when  
            developing or revising energy efficiency programs, to  
            collaborate with county climate protection authorities and  
            related public agencies.

           FISCAL EFFECT  


          The PUC would incur ongoing special fund costs of around  
          $225,000 for the equivalent of two positions, including  
          significant travel expenses, to (a) conduct increased outreach  
          efforts with local governments, community based organizations,  
          and energy efficiency service providers for program design,  
          revision, and implementation and (2) coordinate between these  








                                                                  SB 730
                                                                  Page  2

          entities and the IOUs across the broad range of utility energy  
          efficiency programs. [Public Utilities Reimbursement Account]


           COMMENTS  

           1)Background  . The California Air Resources Board's (ARB's)  
            Scoping Plan, prepared and adopted in response to the Global  
            Warming Solutions Act (AB 32 of 2006) states that "Local  
            governments are essential partners in achieving California's  
            goals to reduce GHG emissions." The ARB is encouraging local  
            governments to adopt a GHG reduction goal for municipal  
            operations emissions and move toward establishing similar  
            goals for community emissions that parallel the state  
            commitment to reduce GHG emissions by approximately 15% from  
            current levels by 2020.

            Sonoma County, all nine cities within the county, and the  
            county water agency, transportation authority and agricultural  
            preservation and open space district have all adopted the most  
            aggressive emission reduction targets in the United States,  
            which is 25% below 1990 levels by 2015. To meet this ambitious  
            goal, the community sponsored legislation (AB 881 Huffman/  
            Chapter 375 of 2009) creating the nation's first regional  
            climate protection authority.

           2)Purpose  . According to the author, this bill is intended to  
            maximize Sonoma County's efforts to reduce greenhouse gas  
            emissions and achieve energy efficiency by requiring utility  
            companies, such as Pacific Gas & Electric (PG&E), to plan and  
            coordinate their energy efficiency efforts with the SCRCPA.  
            The author believes local energy efficiency and climate change  
            initiatives approved and supported by local communities need  
            to be harmonized and coordinated with PUC efforts on energy  
            efficiency and funded by the ratepayer funded  
            energy-efficiency programs, when appropriate.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081