AB 2017, as amended, Muratsuchi. Energy: financing: rental properties.
(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined. Existing law authorizes the Public Utilities Commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would authorize the commission to require an electrical or gas corporation with 250,000 or more service connections to develop and implement an on-bill repayment program providing financial assistance for energy efficiencybegin delete, renewable energy, distributed generation, energy storage, or demand responseend delete improvements for rental properties by allowing for the repayment
of the financial assistance to be included in the utility customer’s utility bill. Because a violation of any part of any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime, this bill would impose a state-mandated local program.
(2) 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 a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Chapter 8.1 (commencing with Section 2846) is
2added to Part 2 of Division 1 of the Public Utilities Code, to read:
3
For the purposes of this chapter, the following the terms
7have the following meanings:
8(a) “OBR improvement” means an eligible energybegin insert efficiencyend insert
9 improvement financed through an OBR obligation.
10(b) “OBR obligation” means an obligation to repay a financing
11provided to a utility customer by an OBR partner pursuant to an
12on-bill repayment program approved by the commission.
13(c) “OBR partner” means a
person or entity providing financing
14for eligible energybegin insert efficiencyend insert improvements pursuant to an on-bill
15repayment program. OBR partners include, but are not limited to,
16banks, savings and loan institutions, credit unions, or project
17developers. Financing may be provided in the form of a loan, lease,
18power purchase agreement, energy service agreement, or other
19financing structure approved by the commission.
20(d) “On-bill repayment program” or “OBR program” means a
21program, which may include one or more pilot test programs,
22approved by the commission that enables financing of eligible
23energybegin insert efficiencyend insert improvements for rental properties to be repaid
24through
OBR repayment charges to be associated with the same
25utility account or accounts where savings are anticipated to be
26realized as a result of the improvements.
27(e) “OBR repayment charge” means a charge, constituting
28repayment of all or a portion of any OBR obligation, that is
29included on a utility bill in accordance with a commission-approved
30utility tariff.
P3 1(f) “Utility” means an electrical corporation or gas corporation
2that develops, or is required to develop, an on-bill repayment
3program.
(a) The commission may require an electrical
5corporation or gas corporation with 250,000 or more service
6connections in the state to develop and implement one or more
7on-bill repayment programs for eligible energy efficiencybegin delete, improvements.
8renewable energy, distributed generation, energy storage, or
9demand responseend delete
10(b) A utility shall not implement the on-bill repayment program
11without the express approval of the commission.
12(c) The commission shall supervise on-bill
repayment programs
13to ensure that the programs are administered in compliance with
14the terms approved by the commission.
In approving an OBR program, the commission shall
16consider whether the program contains appropriate rules and
17criteria including all of the following:
18(a) (1) Eligibility criteria for the types of energybegin insert efficiencyend insert
19 improvementsbegin delete and technologiesend delete that would be financed by the
20OBR program.
21(2) The commission may include nonenergy reducing
22improvements as an eligible improvement for financing if it deems
23appropriate.
24(b) Rules prohibiting the unauthorized removal from the rental
25property of an OBR improvement.
26(c) Rules for project inspection and verification services to
27ensurebegin delete the cost-effectiveness of the OBR program.end deletebegin insert economic
28benefits for tenants of properties with an OBR improvement.end insert
29(d) Requirements regarding the investment quality and
30performance of the financing instruments for the OBR program.
31(e)
end delete
32begin insert(d)end insert Consumer protections forbegin delete low-income residentialend delete customers
33begin insert subject to an OBR repayment chargeend insert, including protections that
34prevent increases in the number of service terminations, a loan
35loss reserve, bill neutrality,begin delete prepayment options,end delete and other
36mechanisms deemed appropriate by the commission.
No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P4 1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.
O
98