BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 724|
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THIRD READING
Bill No: AB 724
Author: Bradford (D)
Amended: 8/30/11 in Senate
Vote: 27
PRIOR VOTES NOT RELEVANT
SUBJECT : Clean Energy Jobs and Investment Act
SOURCE : Author
DIGEST : Senate Floor Amendments of 8/30/11 delete the
current contents of the bill and insert language to enact
the Clean Energy, Jobs and Investment Act. This bill now
requires the Public Utilities Commission (PUC) to require
the state's three largest electrical corporations to
collect the public goods charge until January 1, 2020;
requires the PUC, in coordination with the State Energy
Resources Conservation and Development Commission, to
develop and authorize fund mechanisms to finance
comprehensive energy efficiency programs for residential,
commercial, industrial, and public building sectors;
establishes criteria by which the PUC would evaluate the
state's energy efficiency investments; requires the PUC to
administer funds generated by the collection of the public
good charge that is allocated for energy efficiency; enacts
the Clean Energy Jobs and Investment Act; and establishes
the Clean Energy Investment Council consisting of specified
individuals to provide strategic policy guidance for the
implementation of the Act.
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ANALYSIS : Current law that sunsets January 1, 2012,
requires the PUC to require each investor owned utility
(IOU) to assess as a ratepayer surcharge, commonly known as
the Public Goods Charge (PGC), $228 million per year for
energy efficiency, $65.5 million for renewable energy, and
$62.5 million for public interest energy research,
development and demonstration with the amounts adjusted
annually for inflation.
This bill reauthorizes the PGC until 2020 and requires
collection of $250 million for energy efficiency, $75
million for renewable energy, and $75 million for clean
energy innovation.
This bill, for PGC funds for clean energy innovation
research:
1. Focuses on priority areas to rapidly expand clean
energy jobs, technologies and deployment.
2. Improves transparency of program funding, including
priority setting by an Advisory Council and annual
reporting to the Legislature.
3. Focuses investments in California.
This bill, for PGC funds for energy efficiency:
1. Directs $250 million to energy-saving, job-creating
energy efficiency retrofits in public, commercial, small
business, agriculture and food processing, and
residential buildings (single and multi-family) and to
other energy efficiency measures that achieve state
energy efficiency and carbon reduction goals.
2. Requires the PUC to adopt the most effective financial
investment tools to leverage private capital, including
property-secured financing, interest rate buy-downs,
on-bill financing and repayment, loan-loss reserves,
loan guarantees, grants or other targeted retrofit
financing mechanisms.
3. Improve transparency and verification of the
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expenditure of the funds.
This bill, for PGC funds for renewable energy:
1. Maximizes job creation and economic growth through the
deployment and commercialization of renewable energy,
grid integration and energy storage technologies.
2. Includes demonstration projects for renewable energy on
California state buildings or property and renewable
generation on farmland, energy storage, clean energy
manufacturing in California, biogas, biomass and other
clean energy technologies.
3. Includes targeted financial and technical assistance to
local and regional governments for planning, siting and
permitting of renewable energy.
4. Continues New Solar Home Partnership with guidelines
developed by the Energy Commission and funds
administered by the PUC.
5. Establishes an Advisory Committee to provide for
greater coordination and oversight.
This bill, separate from the IOU program, requires
increased reporting, public disclosure, and transparency of
publicly owned utilities' investments in energy efficiency
and energy research conducted with PGC funds from POU
ratepayers.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/31/11)
California Teamsters Public Affairs Council
ARGUMENTS IN SUPPORT : The California Teamsters Public
Affairs Council states, "The Public Goods Charge is a
surcharge on utility bills that funds approximately $400
million per year in energy efficiency, renewable energy,
and research and development. These funds are important to
our growing green economy, as they create good jobs and
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innovative businesses, all working to help consumers save
valuable dollars on their utility bills and help the
environment by improving energy efficiency."
RM:mw 8/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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