BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 724|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 724
Author: Bradford (D), et al.
Amended: 9/7/11 in Senate
Vote: 27
PRIOR VOTES NOT RELEVANT
SUBJECT : Clean Energy Jobs and Investment Act
SOURCE : Author
DIGEST : This bill enacts the Clean Energy, Jobs and
Investment Act. This bill requires the Public Utilities
Commission (PUC) to require the states three largest
electrical corporations to collect the public goods charge
until January 1, 2020; requires the PUC 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; and requires the PUC to administer
funds generated by the collection of the public good charge
that is allocated for energy efficiency. This bill also
establishes the Clean Energy Investment Program to support
achievement of the state's renewable energy goals,
including the growth of distributed generation, and seek
creative solutions to barriers to the development and
deployment of technologies to achieve those goals. This
bill becomes operative only if SB 870 (Padilla) is enacted
which requires the Energy Commission to establish the
CONTINUED
AB 724
Page
2
California Innovation Program.
ANALYSIS : Current law that sunsets January 1, 2012,
requires the PUC to require each investor owned utility 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 research,
development, and demonstration.
This bill, for PGC funds for clean energy 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
CONTINUED
AB 724
Page
3
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 requires increased reporting, public disclosure,
and transparency of the investor owned utilities'
investments in energy efficiency and energy research
conducted with PGC funds from ratepayers.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 9/7/11)
California Building Industry Association
Los Angeles Business Council
Pacific Gas & Electric Company
San Diego Gas & Electric Company
Silicon Valley Leadership Group
Southern California Gas Company
TechNet
ARGUMENTS IN SUPPORT : The California Teamsters Public
CONTINUED
AB 724
Page
4
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
innovative businesses, all working to help consumers save
valuable dollars on their utility bills and help the
environment by improving energy efficiency."
San Diego Gas & Electric Company and Southern California
Gas Company state: "We appreciate the authors' inclusion
of amendments in the PGC legislative package to address a
number of our concerns. In particular, we appreciate
amendments included in the PGC reauthorization package that
continue the California Public Utilities Commission's
flexibility and discretion to determine the most
appropriate implementation of electric energy efficiency
programs. We are also encouraged by the reforms in the
RD&D programs, including a tighter focus on achieving state
energy policy goals."
RM:mw 9/7/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED