BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 904
                                                                  Page  1

          Date of Hearing:  January 19, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 904 (Skinner) - As Amended:  January 11, 2012 

          Policy Committee:                              Utilities and 
          Commerce     Vote:                            14-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC), as 
          part of a specified existing proceeding, to evaluate reasonable 
          alternatives for financing residential retrofits, including 
          heating, ventilation, and air conditioning.

           FISCAL EFFECT  

          One-time special fund costs of up to $100,000 to undertake and 
          incorporate the evaluation within the scope of an existing PUC 
          proceeding. The bill does not mandate implementation of any 
          recommendations that results from the evaluation. �Public 
          Utilities Reimbursement Account]

           COMMENTS  

           Background and Purpose . Each of California's utilities 
          administers energy efficiency programs designed specifically for 
          their customers' needs. The utilities oversee a set of programs 
          to decrease energy use in lighting and appliances, heating, 
          ventilation, air conditioning (HVAC) systems and motors. The 
          utilities also administer programs that target customers when 
          investment decisions are made during retrofits and renovations 
          and during the new construction on buildings and homes. The 
          retrofits and renovations programs are designed to: 1) increase 
          energy efficient investments at the time of retrofit, 
          renovation, or sale of a home; 2) link interested customers with 
          providers of energy retrofit services; and 3) increase the 
          training of professionals who perform energy efficient 
          retrofits. In September 2009, the PUC approved $3.1 billion in 
          funding for the 2010-2012 IOU energy efficiency program cycle. 








                                                                  AB 904
                                                                  Page  2

          This amount is 42% higher than the prior three-year cycle.

          The author is seeking, through this bill, to have the PUC 
          conduct a study to examine the feasibility of alternatives to 
          the current approach of financing these utility-administered 
          programs through ratepayer surcharges.

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